Is This a “Normal” Real Estate Market Yet?

The events of the last few years disrupted almost every facet of our lives and the real estate market was no exception. Buyers and sellers across the country have experienced a market more volatile and unpredictable and are wondering if we will ever return to normal? Will the tougher economic times ahead help balance the real estate market?

As interest rates rise to slow the economy, the housing market is feeling the shift. Gone are the cheap loans and quick home sales. Today’s buyers have the luxury of being choosier and sellers must again offer their homes at a reasonable price in good condition. While this “feels” like a normal market condition, is it?

The essence of a “normal” real estate market would be predictability and confidence, but we are not seeing this yet. True, the slowing economy and rising interest rates have moved us away from the frantic pace of the past few years, but experts question whether this means a traditional “buyers’ market.”

The pandemic changed the way we work, and where, also. People around the world are moving. With remote working a normal occurrence, people can live anywhere they want. Cities are emptying out and some states are seeing an influx of new residents anxious to avoid high-tax states.

With all these added elements, the real estate market may not return to the “normal”, more predictable patterns we’re accustomed to for years, maybe never. For consumers, the most important thing is to make the right decision for their families. There are opportunities in every market, even if it doesn’t feel “normal.”

3 TIPS... What Not to Say When Someone Asks Why You’re Selling

The minute you list your home, everyone will want to know why. You will hear from your neighbors, family members, and friends. Of course, there is no harm in speaking freely with family and friends but be careful what you tell your neighbors and especially the buyers and their agents who visit your listing.

First, it’s no one’s business but your own. You are not obligated to share personal information with anyone, and you must be especially careful when speaking with potential buyers. If they sense desperation, this will affect the kind of offer they write.

A simple, “we are ready for a change,” is a great response to anyone who doesn’t need to know. How you answer is less important than avoiding the wrong answers. ·

“I got a new job” – Job offers or transfers are a common reason for a move. These moves often come with deadlines which alerts buyers that you need a quick sale, and may be willing to compromise on price to get one.

· “We need a bigger house” – It’s perfectly understandable that a growing family needs more space. Telling a buyer this, however, may cause them to question the size of the home and if it’s too small for them also.

· “We want to lower our costs” – This may just be a simple downsizing after the kids have left, but talking about affordability is a red flag to buyers. Is the home too expensive? Is the price too high? Energy bills too high? Upkeep too much?

Successfully selling a home is more than just marketing. The best course of action is to limit divulging too much personal information about your situation, but if you do, be mindful of how much you say. Be pleasant, but do not overshare, it may cost you in the end.

Tips for Touring Listings with Children

Searching for a new home can be an exciting adventure, but it can also be a stressful experience, especially when you have young children in tow. It can be difficult to keep them entertained and engaged while you're trying to focus on evaluating potential properties. However, with a bit of planning and preparation, it is possible to make touring properties with children a more enjoyable and successful experience.

In this blog post, we'll share some tips and tricks to help you navigate the process and find your dream home while keeping your little ones entertained and happy.

Simple Tips for Touring Listings with Children

· Be Safe – First and foremost, it’s important to keep your children safe. Do not assume that the home is child-proof, in fact, assume the opposite. Kids love to poke around. Be aware that there could be dangerous chemicals and products within their reach. Medicine cabinets could have potent drugs and cleaning supplies may be under the sink.

· Be Respectful – Often family homes have toys and other children’s items within easy reach but it’s important to keep your own kids from playing with these toys. It may be a tempting way to avoid boredom, but be respectful of the home.

· Plan Ahead – Remember that your children may be bored or hungry. Plan ahead; keep food and drink in the car to snack on between showings or consider taking turns with a spouse to allow the children to stay in the car with toys or videos. Finally, if you can, limit the amount of time you are out looking at homes.

Touring properties with children can be a challenge, but with the right approach, it can also be a fun and rewarding experience for the whole family. By keeping your children engaged and entertained, you can focus on evaluating potential properties and finding your dream home. Remember to plan ahead, bring snacks and toys, and involve your children in the process. With these tips and tricks, you'll be well on your way to finding the perfect home for you and your family.

FICO Shock? Your Lender Can Help with a Rapid Rescore

If you’re ready to buy a new home, you know that a good FICO score is critical to the process. Your FICO affects not just your ability to buy a new home, but the interest rate and fees you’ll pay for the new loan. Often, buyers are shocked to realize their credit score is not as high as they thought. Even borrowers who always pay their bills on time can be surprised by a lower FICO score when they apply for a loan. Fortunately, your lender can help with a rapid rescore process.

A rapid rescore is initiated by your lender to boost your FICO in days. Most lenders offer this service and will start by reviewing your credit report with you. Lenders use what’s known as the “middle score,” in determining risk. There are three credit bureaus – Transunion, Equifax, and Experian – and they each calculate your score a little differently. The middle score is used for most home loans as your FICO.

Your lender has a program which can estimate your rescore based on removing false reporting or lowering the balance on a credit card. Even paying off one card can raise your score by 20+ points, enough to make a huge difference in your mortgage interest rate. Once the steps are determined and taken, they then request the credit bureaus to verify the report. This takes a few days. Then the new score will be available to the lender to use for your loan.

If you are considering a new home loan, it’s important to know your credit score ahead of time, when you can still correct mistakes. But, if you are already in the process, your lender may be able to use the rapid rescore process to quickly increase your score and offer you a better loan.

10 Things to Remove from Your Home When Listing for Sale

One of the most common questions from home sellers is, “do I really need to put my family pictures away”? The short answer is “yes,” but maybe not for the reasons you assume. The general principle is that buyers need to be able to visualize their own lives in the home in order to buy the house. There is nothing new about this, but in this complicated age of security challenges, there are also safety reasons to remove your items before showings.

10 Things to Remove

1. Excess Furniture – Consider removing extra chairs, ottomans, side tables, etc., anything unnecessary.

2. Family Photos – You do not know who is coming through your home; protect your family by removing any identifiable pictures, awards, certificates, etc.

3. Religious Art/Collectables – Some people may be offended by these kinds of items. Better to avoid issues.

4. Laptops and Cell Phones – Anything easily picked up and removed should be safely stowed.

5. Jewelry – Again, anything of value should be secured out of sight.

6. Important Files and Papers – Hide any papers that may have banking or social security numbers that can be used for fraudulent purposes.

7. Firearms – Protect yourself and others by securing any firearms.

8. Clutter – Nothing new here, keep the home clean.

2023 Market Predictions

The real estate industry is in for a wild ride over the next year, according to the Realtor.com's 2023 Housing Market Predications Report. This forecast predicts an overall positive outlook with ongoing growth, but it also acknowledges that several regional markets are more volatile than others and may not experience consistent gains.

The report notes that there are some headwinds to sustained growth, particularly in regions affected by the pandemic and its economic fallout. Tightening credit conditions, an already low inventory of homes for sale, and historically high lumber costs may all put pressure on affordability and slow the housing market's progress.

The good news is that many markets have been resilient and there are signs of optimism as the economy recovers. Realtor.com expects that home prices and sales activity will continue to rise in most markets, albeit at a slower pace. Affordability is projected to remain a challenge for some buyers, however, as potential buyers may have difficulty securing financing.

The report also predicts an increase in rental activity over the next year as renters take advantage of more affordable housing options and the flexibility that comes with not having to commit to a longer-term mortgage agreement. This could spell good news for investors looking to capitalize on these shifting trends.

Overall, the 2023 National Housing Forecast predicts a continued rise in housing prices, though certain regional markets may be more volatile than others. It also forecasts an increase in rental activity as renters take advantage of the flexibility that comes with renting. All of this suggests a vibrant and dynamic real estate market going into 2023, so it’s important to stay informed and up-to-date with the latest trends.

No matter where you are in your real estate journey, it’s important to stay abreast of the fluctuating market conditions. By doing so, you can ensure that you’re making informed decisions and leveraging the best opportunities available to you. With a comprehensive understanding of the current market conditions and the changing trends, you can make sure that you’re making the most of your investments and positioning yourself for success.

6 Factors That Could Damage Your Credit Score

Having good credit is essential for a number of aspects of your life, ranging from the interest rate on a car loan or credit card to background checks for employment. Poor credit can be incredibly expensive, costing you thousands of dollars in higher interest rates over the course of a home loan. Fortunately, with proper care and attention paid to your finances, it is possible to maintain a good credit rating.

Here are six factors that could damage your credit score:

1. Not paying your bills on time - Bills not paid within 30 days can be reported to the credit bureaus.

2. Utilizing all of your available credit on credit cards - It is important to not max out your credit cards without a plan to pay them off.

3. Not having a diverse mix of credit - Having different types of credit, such as car loans and revolving credit, could help improve your score.

4. Applying for too much credit - Multiple applications for credit cards in a short period of time can be a bad sign.

5. Not using credit at all - You must show that you can responsibly use and manage credit in order to maintain a good score. 6. Closing credit cards - Keeping long-term accounts open is important, as closing them removes the positive history from your report.

Good credit is especially essential when searching for a new home or home loan. Having a good credit score can make the difference between having your loan accepted and being declined. Poor credit is preventable if you pay attention to the above mentioned criteria, so be sure to stay on top of your finances to ensure success.

Ceiling Design Ideas that Add Impact

For most people, the only effort they place into the ceiling design is removing the old popcorn treatment. While this is certainly an important first step, there are many ways to use the ceiling to add interest and impact to any room.

Considered the “fifth wall” by designers, ceiling design changes can be either subtle or dramatic. Browse through any home décor magazine and notice the ceiling treatments. Often, they feature bold colors or textures that go somewhat unnoticed by the viewer. Bedrooms, living rooms, and even bathrooms are prime targets for a makeover. Here are 5 great options to try out in your home.

1. Bold Color – Contrary to popular opinion, a dark or strong color on the ceiling does not make the room look smaller. In fact, the use of a color on the ceiling invites the eye to move around the room and creates another interesting space.

2. Brighten Monotone Rooms – If you are planning to keep the room monotone, with soft whites or beiges, add more white tone to the ceiling to add some depth to the room.

3. Molding – Add an interesting molding to the ceiling. You can create an elegant surrounding with a chandelier, for example.

4. Add Some Shine – Contrast a matte wall with a high-gloss ceiling in bold color. Perfect to brighten any room.

5. Metallic Options – You’ve seen the pressed metal ceilings in old bars or restaurants, but there are also more subtle modern treatments that bring an element of industrial design to a space. There are so many ways to create a more interesting design story by using the ceiling.

There is no reason not to try something dramatic that can give any room a fresh look.

Seller Concession Limits

The real estate market is shifting. In some areas of the country, it has flipped to a strong buyer’s market. Sellers challenged by this change are looking for creative ways to attract buyers. In addition, buyers suddenly in the driver’s seat are asking for more concessions from sellers than ever before.

Seller concessions are a useful tool in real estate. Used correctly, it can benefit both buyer and seller. For example, concessions can be offered in lieu of seller repairs or upgrades, saving out of pocket cash in an uncertain market. Buyers can also benefit from “financing” some of their own out-of-pocket costs for specified fees and charges.

However, there are limits to what the lender will accept for seller concessions and understanding this ahead of time can save time and frustration. Here is a snapshot of the most common loan types and concessions possibly allowed (always check with your lender).

Conventional (Fannie Mae/Freddie Mac):

· 25% down payment – 9% concessions

· 10-25% down payment – 6% concessions

· <10% down payment – 3% concessions

FHA : 6% maximum concession

VA: 4% closing costs concession

USDA: USDA allows the seller to pay all the closing costs and prepaid for the buyer with no percentage limit. Other restrictions and considerations apply, so speak with your lender.

Seller concessions are a great way to save cash on both sides. Used properly, it can be a great tool to put real estate transactions together in a challenging market.

It’s Still a Great Time to Sell

Sellers all over the country are confused and worried they may have missed the best time to sell their home. Prices are dropping, mortgage rates are rising, and the pace has slowed but the impact on any individual seller is unclear.

While the days of any home selling for any price are behind us, the current housing market is still strong. The biggest hurdle for sellers is to avoid the feeling that they missed their chance to get top dollar. Yet, many times the seller intends to buy again also; so while they may sell their home a little lower, they will also buy the new home a little lower as well. ABCs of Success The

ABCs to a successful sale are not complicated. They are the basics of home selling, but if followed, it will ensure a timely and profitable home sale.

A) Appreciation – When sellers hear this term, they normally think of the value of the home. During a challenging market, this kind of appreciation is to appreciate every buyer who wants to come by and every offer you receive; take them seriously.

B) Give in, Don’t Dig in – Along with appreciation for offers, view all the terms in the light of where you can give in or compromise. Be easy to work with and be reasonable.

C) Stop Comparing the House Next Door – Try not to be discouraged or angry if other homes are selling faster. You don’t really know the reason; try to stay patient.

Buyers are excited about the slower market. This means that buyers are still buying. Sellers who get back to the basic ABCs can be successful and achieve their selling goals.

How to Use Comps to Price Your Home Correctly

The most important aspect of listing your home for sales is the asking price. Unlike many other items we purchase, home prices are based on what a willing and able buyer would pay for the property. Sounds complicated, right? This is why real estate agents bring comps ( short for comparable properties) information with them to the discussion. Yet are you using the right comps to successfully sell your home? The idea is to gather information about comparable properties that have sold recently that are similar to your own. The goal is to compare apples to apples. In other words, the properties should be as close to the subject home as possible. This includes things like:

· Location – how far is the property from yours.

· Size – square footage is an important aspect of value.

· Number of bedrooms/bathrooms – even if the square footage is close, the number of bedrooms and bathrooms can have a large effect on price.

· Style, view, street, yard – even the exact same floorplan can have vastly different value based on the street it’s on or the view. Size of the yard and privacy are also critical components of value.

· Amenities – private or community pools and other amenities can affect value as well.

Your agent will bring recent sales for homes that compare to yours. As you look through these listings, you can add or subtract values based on the differences. This is the same process an appraiser will use to approve the loan. While this is more of an art than a science, the right comps can help you properly price your home for a smooth sale.

Overall Market Update – 5 Realities for Sellers Now

Over the past few years, most of the US has been in a strong seller’s market. Historically low interest rates coupled with rising incomes resulted in buyers who were ready and able to buy a new home. It was a crazy time when sellers needed to do little more than put a sign in the yard to attract multiple offers.

However, the post-Covid housing market is quite different. The uncertainty in the economy has slowed the pace and rising interest rates have caused buyers to reconsider their purchase, and the amount they are willing to pay. As a result, sellers must go back to the tried-and-true methods of selling a home, debunking the myths of the past few years. 5 “New” Realities for Sellers

1. Price the Home Realistically –Now sellers must be more careful and price the home realistically to avoid losing the precious early days of a listing when buyer’s interest is highest.

2. Make Repairs – Buyers have more choices now and they will be more careful about buying a home that needs a lot of work.

3. Consider Making Concessions – Buyers often ask for reasonable concessions; sellers should weigh the offer before rejecting.

4. Staging is Back – Make sure the home is show-ready and sellers may consider some simple staging to make the home more appealing to buyers.

5. Be Prepared to Wait – The pace has slowed. In a “normal” market, most homes take 30-45 days to enter escrow.

Finally, sellers should pay attention to their local market and determine the right time to list. Balance has returned to the housing market.

Is My House Up to Code?

Building codes change over time and for people who have owned their homes for a long time, they may not know if their home is out of code and if so, does it matter.

Building codes and violations from jurisdiction to jurisdiction and focus on issues that can affect the safety of the dwelling and its occupants. A home that’s “up to code” may answer the questions:

· Does the home have fire escapes and exits?

· Are plumbing lines intact and functional?

· Are construction materials in good condition and free from asbestos and other hazardous chemicals? ·

Is the home well-lit and free from tripping hazards?

· Is the HVAC system working efficiently?

Avoid Code Violations

There are things to look for in both an existing house and a potential home.

· Check for any permits on the home and always ensure any work done on the home includes permits.

· Test for hazardous materials such as asbestos or lead. These materials are common in older homes. If found, these need to be removed by professionals to avoid health issues from contamination.

· Poor bathroom ventilation is a big code violation. The humidity can lead to rot and mold which is expensive to remove and dangerous to the occupants’ health.

· Shoddy electrical work is also common in older homes. Lack of grounded wires, spliced wires, and DIY repairs duct-taped together can be very dangerous.

Understanding code violations can help the homeowner to avoid issues. All this information is readily available through local jurisdictions and home inspectors can provide more explanations to help mitigate any problems.

Should I Move For My Job?

The question of moving for a new job is not uncommon. In the past few years, more and more companies are moving their entire operations out of high-tax states to those more business-friendly. Possible work-from-home options further complicate the decision to move with your company. So, should you move when your company does?

Things to Consider Before You Move for Your Company

· Career Growth – One of the biggest reasons to stay with your job through a move is career growth and advancement. Speak with your manager or HR professional about what kind of career path is available before you decide. · Better Location – Companies moving out-of-state often move to a more desirable location. If the new area appeals to you, then using a corporate relocation package can be a cost-effective way to move to a better location.

· Personal Relationships – Moving away from family and friends may be too high a price to pay to stay with your company. Aging parents or the school your children enjoy may encourage you to stay put.

· Remote Working Option – If you do not want to move, ask if a work-from-home situation is available. If so, understand the impact it may have on your career. One big advantage a move like this has is you already know the company, the employees, and the corporate culture.

Consider all the options available and you’ll be able to make the best decision for you and your family

Can My HOA Make Me Get Rid of My Dog?

Most homebuyers know to review the HOA (Homeowner’s Association) documents provided by the seller during disclosures to ensure the rules will not interfere with their lifestyle. Yet, once they become homeowners, often these same people do not pay attention to bylaw changes over the years. So, when they find themselves in violation of a bylaw, they are caught off guard. When this affects a beloved pet, this can be very upsetting. But can an HOA force a homeowner to get rid of their pet? Often, they can.

An HOA has a duty to create and enforce restrictions to ensure the well-being and safety of the homeowners in the association. If they operate within the guidelines of federal anti-discrimination laws, HOAs have broad latitude to create their bylaws, including the complete restriction on having animals in one’s home or on HOA property.

This is an extreme rule, however. Typically, restrictions include the requirement to keep pets on a leash, to remove pet waste, and to keep pets off association grass or landscaping. Considered “reasonable restrictions,” an HOA may prohibit a specific type of pet, such as a pig or bird. It may also limit the size or breed of a dog.

One exception to any restriction is the ability of an owner to have a service animal. Another situation that may allow a pet in contradiction to a bylaw is a member who has already had a specific animal when the rules changed. In most cases, these animals are allowed to remain.

Most HOA communities welcome pets, but an HOA does have significant power to influence the standard of living within the community. Careful understanding of the HOA and climate of a community will avoid painful issues and ensure a pleasant homeowning experience.

6 DIY Home Projects That Could Kill Your Home Value

Weekend TV lineups are filled with Do-It-Yourself home improvement programs. One home inspector used to call the results “six-pack projects.” While not all DIY projects end in disaster, some projects can harm home sales because buyers see these “improvements” as changes they will need to make once they buy the house. If you are planning to sell soon, it’s important to realize that potential buyers may not be as impressed with your handiwork as you are.

6 DIY Projects that Can Kill Your Home Value

1. Garage Conversion – Homebuyers love extra square footage, but they don’t want it in the garage. Most buyers will plan to “unconvert” a game room back to space for their cars or storage.

2. New Doors – New doors can add beauty to a room, but if they are not mounted properly, they land on a new buyer’s list of things to fix.

3. Uneven Hardware – If you are trying to update cabinets with new hardware, make sure they are level and line up evenly.

4. Crown Molding – Seems like an easy upgrade but adding elegant crown molding is very difficult and ends up looking sloppy.

5. Painting to Hide Problems – Cracks, gaps, and surface defects only look worse when covered with fresh paint.

6. Kitchen Cabinets – Old, worn cabinets should be replaced if possible. As with the walls, a fresh coat of paint only accentuates the dated look.

Every seller knows they need to freshen their home and add curb appeal to list their home. Before launching into a frenzied weekend of DIY projects, speak to a professional agent or stager and make sure you don’t make things worse in the eyes of your potential buyers

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.

1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.

8. What if I change my mind? – Your agent will work with you to build in contingencies for conditions, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? – Trust the experts and ask lots of questions. Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs.

Property Liens That Can Stop The Sale

One of the most common reasons for a home sale to fall through is the presence of property liens. Often the sellers are not even aware they have a lien on their home and the delay caused by having them removed can cause a qualified buyer to look elsewhere.

Along with other pre-listing tasks, such as repairs and curb appeal projects, sellers should order a title search to determine if any liens are on the property. Some liens are expected, such as the mortgage lien which ensures any home loan is paid off at the time of close, but others might come as a surprise. Here are a few liens which can derail your closing.

· Mechanics Lien – A contractor may place a mechanics lien on your home to make sure they are paid after a home project.

· Divorce Lien – Even if you and your spouse have agreed on the sale of the home, the court may need to approve the sale before the lien can be removed.

· Homeowner’s Association – Past due HOA payments and assessments can lead to a lien on the home.

· IRS and Property Taxes - A government legal claim against your property when you neglect or fail to pay a tax debt.

· Judgment Liens - Is a court ruling that gives a creditor the right to take possession of a debtor's real or personal property if the debtor fails to fulfill his or her contractual obligations.

· Credit Card Liens – If you default on a credit card and the issuers get a judgment, they can attach a lien to your property. Liens must be dealt with before a home can change title. Often the lienholder will negotiate the payment, but others will want full payment before releasing the hold. Either way, dealing with liens can take time and money. It’s always best to remove liens before listing your home for sale.

Should I Use My 401k to Buy a Home?

Buying a home can be a financial stretch. With soaring home values and rising interest rates, many potential first time home buyers find saving for a down payment increasingly difficult. For many people, the main source of savings is in the form of a 401k and tapping into this resource for a home purchase is one way to find the down payment necessary to finance a new home; but should you use your 401k to buy a home? Experts are conflicted.

A 401k is a retirement savings plan offered by employers which takes pre-tax earnings and deposits it into an investment account for use in retirement. The money in a 401k account can be accessed by either taking out a loan against the balance or by a straight withdrawal. A withdrawal before the age of 59.5 is also subject to a 10% penalty.

Taking out a loan from a 401k account may be a viable option for potential home buyers. For one thing, a loan from your 401k should not count against your borrowing power. You also don’t need to qualify because you are borrowing from yourself. The amount you can borrow is limited, for example 50% of the balance, and typically must be repaid within 5 years. The other option is a simple withdrawal; the 10% penalty is incurred, but the value is not usually limited.

Saving for a down payment can be challenging. Using your 401k to help may be a great option. Speak with your financial advisor and see if this is the right financial move for you.

Short-Term vs Long-Term Rentals

Over the past few years, there has been a lot of excitement about owning a short-term rental as part of an investment portfolio. This marks a dramatic change from the traditional long-term rental model. As more travelers utilize vacation rentals instead of hotel chains for their trips, you may be wondering if owning a short-term rental may be the right situation for your needs.

Short-term rentals have caused a stir in many communities. Many full-time homeowners do not like having these properties in their neighborhood. Unruly vacationers often bring a party atmosphere to their quiet streets and some cities have banned them completely. In other areas, they are severely restricted in their use.

Another consideration is the amount of time a short-term rental will take to manage. Unlike their long-term counterparts, short-term rentals often require more repairs and maintenance as the tenants do not treat these properties as their homes, as long-term tenants do. Short-term rentals also require someone to be available 24/7 to address any needs of the guests. Of course, you can hire a property management company to handle these issues, but that will cut into profits and average 20%-30% of rents.

Short-term rentals can have a larger return on investment than long-term rentals, but they come with more work. They also have significantly higher vacancy rates, advertising costs, cleaning, and maintenance costs. On the other hand, having a vacation property you can enjoy yourself may tip the scale. There is no one-size-fits-all approach to real estate investing. Consider what works for you and make the best choice for your goals.