Get 12% back on Sam’s Club with no limit (these work the same as Walmart gift cards)
Get 10% instant discount on Instacart, plus the regular 3% back; this deal is valid 10/27 – 10/30 and is limited to $200 in purchases ($20 discount)
Get 15% back on Wayfair with no limit
Get 15% back on Puma with no limit
Get 20% back on Fanatics with no limit
Get 20% back on Abercrombie with no limit
Get 20% back on Bed Bath & Beyond with no limit
The standard Pepper points will be instantly available and the bonus Pepper points will be awarded on 11/10/24. You can see these deals in your messages tab or notifications tab; also, be sure that you should see the bonus reflected on the checkout screen. These deals end today and often sell out early.
The Pepper points system is confusing, so let’s give an example: Let’s say, for example, that Pepper is offering 10x on Amazon. If you buy $100 in Amazon gift cards, you’ll get 8,000 points instantly (4x) which is worth $4 toward your next purchase; that’s 4% back. In a few weeks, you’ll get an additional 12,000 points which is worth $6 and is the same as 6% back. Altogether, you’ll end up with 10x back will is the same as 10% back. It’s easier to just avoid thinking about the points totals and focus on the ‘x’ back since that is the same number as the % back you’ll be getting (1x = 1% back; 10x = 10% back).
You’ll see a tab in the app called ‘Points History’ which will clearly show which points have posted and which points are pending. (Update your app if you don’t see it.)
Our Verdict
Keep in mind that for most of these deals the bonus points won’t be available for a few weeks, and it’s not worth buying unless you can manage the risk of something going wrong with the bonus points posting a few weeks down the line. There have been times when people have had issues logging in; therefore, I’d recommend screenshotting and copying the gift card info immediately. I’d also recommend using up the Pepper points as soon as possible just in case something goes wrong with the company.
These deals stack well with the AmEx Offer for $15 off $50. Reports are that Amex Business Gold to earn 4x if it’s one of your top two categories as part of the Computer Software category. And it counts as Computer Software category for BofA Customized Cash Rewards cards for 3%/5.25% and for 1.5x on the Business Platinum card. And reports are that it counts as Online Shopping for BofA cards and Blue Cash card and ShopYourWay card and the legacy Citi AT&T card.
Note: While there is no limit to most of these deals, you might be limited in overall quantities that can be purchased from Pepper in a day. So you might only get $2,000 or some other number until the app stops you. It’s sometimes possible to increase limits by calling in and verifying. And you might be able to buy again the next day as your limits reset.
My thanks if you enter my signup code 584255 during the initial signup process. Those who signup with a referral code get double Pepper points on all purchases for 15 days. (If you do a bonus offer during the referral period, some people report there being a stack of the two deals with double points on the base and single points on the bonus. Others report only the base gets doubled.) Please no referral sharing in the comments below.
Creating a coffee bar at home is a great way to elevate your daily coffee experience and add a personal touch to your kitchen or living space, even in a rental. Whether you’re renting a home in Portland, OR, buying a home in Burlington, VT, or searching for an apartment in New York City, NY, having a dedicated space for your coffee essentials can transform your morning routine into a more enjoyable and relaxing ritual. From the smell of freshly brewed coffee to the convenience of having all your favorite beans, mugs, and brewing equipment within reach, a home coffee station is a perfect blend of function and style.
Designing a coffee bar at home that suits your taste involves considering things like space, equipment, and aesthetics. With a little planning, you can create a coffee corner that reflects your personal style while ensuring you have everything you need to craft the perfect cup. With tips from experts in the coffee and home design fields, we’ll show you step-by-step how to create an at-home coffee bar that caters to your unique needs and enhances your home coffee experience.
1. Figure out your space
When planning a coffee bar at home, the first step is determining the best spot for it. “Creating a space that suits how you want to make coffee and is enjoyable to use is the best way to grow your love of creating the perfect-tasting coffee at home,” shares Toby, the coffee expert behind Coffee with Conscience.
The good news is that you don’t need a large area to create a functional and stylish coffee setup. Whether you have an entire countertop to dedicate or just a small corner to spare, the key is to work with what you have.
Counter top vs coffee cart
“Creating the perfect home coffee station is all about thoughtful organization and quality essentials,” advises Brigette Romanek, interior designer and blogger at HomeDecorFull. “Start with a dedicated counter space near an outlet, using a small shelf or cart if space is limited.”
Whether you’re passionate about having a variety of brewing equipment on display or just tight on counter space, “Consider using a rolling cart for a flexible coffee station that can move around your space,” recommends blogger Gina Dickson of Intentional Hospitality, a blog providing tips and advice on hosting at home.
Stick to the essentials
Once you’ve identified the perfect spot for your home coffee bar, consider the flow of your daily routine and the accessibility of your coffee essentials. “Keep your most-used items within easy reach, arranging them by workflow (like grinder, filter, brewer, then cups),” recommends Romanek from HomeDecorFull.
No matter the size of the space, the goal is to make your at-home coffee bar an organized, inviting spot that streamlines your coffee-making process. “Avoid cluttering your coffee space with unnecessary gadgets,” shares Matthew Barry, roaster and owner of Ember Coffee Co. in Big Lake, MN. “Ensure that at least half of your setup has open space for cup placement; keeping it clean and minimal makes it easy to stay organized while showing off your beautiful setup.”
Image by Bruvi
Compact is key
A minimalist setup not only saves space but also keeps your area looking tidy and visually open.
“When space is at a premium, I like to opt for compact brewers that don’t require much counter space,” suggests Jon Clark from the Nomad Coffee Club, a premium coffee bean subscription service.
“Even space-challenged coffee lovers can set up a coffee bar,” agrees Diane Kuyoomjian at Bruvi, one of the freshest and most versatile pod coffee brewers on the scene. “Whether you use a kitchen counter or a free standing cart, a versatile single-serve brewer that makes both coffee and espresso will provide all the barista vibes in a small footprint.”
Maximize a small space
In small spaces, every inch counts, so keep your coffee bar clutter-free by sticking to the essentials and storing extras out of sight. “Maximize vertical storage with stackable storage canisters for beans and accessories, while a small tray beneath your equipment protects surfaces and keeps everything tidy,” says Robert Gomez from Kaffe Products, a company where you can find all the essentials for coffee at home.
Even the smallest corner, windowsill, or unused wall can be transformed into a functional coffee station with the right organization. “A wall-mounted shelf or a pegboard and stackable storage containers can add an aesthetic backdrop for your coffee bar while also providing storage for beans, reusable filters and coffee scoops,” recommends the team at Nomad Coffee Club.
2. Choose home brewing equipment for your coffee bar at home
After you figure out your space, the next step to creating your coffee bar at home is in choosing the right equipment to get the job done. The type of coffee brewer you should choose for your home coffee setup largely depends on what kind of coffee you like to drink, the amount of space you have, and of course, personal preference.
“It may sound simple, but there’s no point in spending hundreds of dollars on a shiny espresso machine if it just collects dust once the novelty wears off,” shares Toby of Coffee With Conscience. “Good coffee is about the taste as much as the art of creation.”
“As a passionate home brewer, it’s easy to get caught up in buying every new device,” confides Syeh Naveed, the face behind the blog The Need for Coffee. “While fancy equipment can be tempting, if your brewing space isn’t clean and organized, it detracts from the experience. And worst of all, having too many brewers can lead to decision fatigue.”
Naveed suggests simplifying your home coffee setup by sticking to one or two devices, helping to keep things simple while still maintaining your options. Your home coffee bar might have multiple coffee contraptions, but make sure they are each serving a distinct purpose, focusing on the following brewing methods.
Pour-over
Pour-over coffee is a hands-on brewing method that gives you more control over how your coffee turns out, letting you really bring out the unique flavors of the beans. You simply pour hot water slowly and evenly over ground coffee in a filter, which results in a clean, smooth cup with lots of depth. Since you can tweak things like the water temperature, grind size, and how you pour, it’s perfect for anyone who loves experimenting to create their ideal brew. Plus, it’s simple and has a nice, relaxing ritual to it, which makes it a go-to for many coffee lovers.
“You don’t need a ton of fancy gear to brew amazing coffee at home – just stick to what makes you happy,” suggests Alejo Galindo, one half of the duo at friendly coffee resource The Coffee Nerds. “A glass flask style brewer is a solid choice for manual pour-overs and easy to store when not in use. Just make sure to have a decent grinder and a water kettle for best results.”
Handheld presses, plungers, and stovetop espresso
Handheld tools, like portable espresso makers, manual presses, or stovetop brewers, are a great option for coffee lovers who want to enjoy stronger coffee on the go, in small spaces, or on a budget. These compact devices use manual pressure to brew rich, concentrated coffee without needing a bulky machine. While they require a bit more effort compared to automatic machines, they offer tasty results and the flexibility to brew anywhere, whether you’re at home, traveling, or camping.
“If you love espresso and are short on space, a manual coffee press will take your love for coffee out of this world. Easy to use and easy to clean this brewer provides a fantastic concentrated coffee with a unique design and consistent results,” shares Matt Milletto, owner of classic Portland, OR roaster, Water Avenue Coffee.
“Handheld espresso makers are perfect for espresso-based drinks without taking up any counter space,” Galindo agrees.
Another recommendation comes from the experts at Pawling Coffee Roasters in Pawling, NY. “A plunger-style coffee device is ideal because it brews high-quality coffee without taking up much space. Once you gauge how much coffee you use per batch, you can eyeball it going forward. As long as your setup is organized, it looks great and lets you focus on what really matters: the delicious taste and aroma of freshly brewed coffee.”
Jim D’Andrea from Maker’s Coffee Company adds, “Brewers like these fit any kitchen and produce amazing results. An electric kettle adds a simple way of heating water to ideal brewing temperatures which makes a huge difference in taste.”
Automatic machines
Home coffee machines are a great investment for coffee lovers who want to enjoy cafe-quality brews right from their kitchen. These machines come in various types, ranging from manual and semi-automatic to fully automatic and super-automatic models, each offering different levels of control over the brewing process.
“When creating your home coffee station, there are many options,” agrees Home Coffee Tips author Ben Farrer, a trusted source for many types of brewing equipment. “For something modern, easy to use and space-saving, I would recommend a pod machine for convenient espresso. If you want to take it to the next level, I advise a home espresso machine and an electric burr grinder.” To complement your espresso-making setup, Ferrer adds, “You can buy plenty of coffee brewing accessories to match your kitchen aesthetic, like wooden tampers and coffee mats.”
Drip coffee makers are another automated classic that give you an easy and consistent brew every morning. “My favorite drip coffee maker is my go-to for the best drip coffee every morning,” says Milletto from Water Avenue Coffee. “It’s compact, precise, and delivers 8 perfectly brewed cups, bringing the local coffee shop into your kitchen.”
“Treat yourself to a good espresso machine, steam pitcher, tamping mat, and knock box to elevate your coffee space,” adds Carol from decaf coffee provider based in Springdale, AR, Talking Crow Coffee Roasters.
“Finish off your coffee brewing setup with a scale,” Carol continues. A scale can be used for multiple different brewing methods to help find consistency by measuring the amount of coffee and water used in your brewing process, ensuring a more predictable cup every time.
As the professionals at Seattle-based Langskip Coffee suggest, experimenting with different brewing methods to find your ideal cup of coffee is one of the key steps to creating the perfect coffee bar at home.
3. Invest in a burr grinder
If you’re looking for the quickest way to elevate your home coffee experience, burr grinders are essential if you value consistency and control over the grind size of your coffee beans. Mindful consumption blogger Laura Yoder at Black Coffee Beautiful nods her head to the importance of a grinder, sharing, “A grinder gives renters an opportunity for high-end flavors, even if space is limited and the budget is tight.”
Unlike blade grinders, burr grinders use two abrasive surfaces (burrs) to crush coffee beans evenly, resulting in a more uniform grind that enhances the flavor and quality of the brew. “The biggest difference between average and great coffee is the quality of the grind, and a burr grinder delivers consistent results,” confirms Berry of Ember Coffee Co.
“Don’t skimp on your grinder while you splurge on your brewer – flip that around,” seconds Matt Boshart, owner and head roaster of Reboot Roasting located in Omaha, NE. “A high-quality burr grinder should be the focus of your home setup.”
4. Use good quality coffee beans
Whether you’re using a simple drip machine or an elaborate espresso setup, starting with quality coffee beans ensures that your brewing efforts result in the best possible taste, making every cup more tasty. “You don’t need a complicated setup for delicious coffee at home,” confides owner of Florida-based Coast to Coast Coffee, Matthew. “The two most effective tips to achieve coffee nirvana are to first, get your hands on freshly roasted beans. Second, grind them right before brewing.”
Keep your beans fresh
The freshness of the beans you’re using is important—treat coffee like an item with an expiration date, and don’t grind the beans until right before brewing for more flavor. To keep your beans staying fresh, Michelle Kaliher from the spooky themed roaster Sinister Coffee and Creamery in Portland, OR recommends storing your beans in an airtight container, away from light and heat. “Whether you prefer the bold richness of plunger coffee or the clean, smooth taste of a pour-over, this keeps the beans fresh and full of flavor,” Kaliher advises.
Try a coffee bean subscription
Coffee bean subscriptions are another way to ensure a steady supply of fresh, high-quality coffee delivered right to your door. Francesca from the Lux Cafe Club, a service that provides customers with high quality coffees, reminds that the key to a great home coffee experience is freshly roasted beans. A subscription service allows for delivery of premium coffee at intervals that suit your coffee habits, with a range of options allowing you to select your preferred roast level, grind size (or whole beans), and even specific flavor profiles.
Sample different flavor profiles
If you’re looking for a fan favorite, “Try a medium roast, which offers a bright and balanced flavor that everyone can enjoy,” says Claudia at Haymaker Coffee. By using high quality coffee beans in your daily coffee ritual, you can tailor your coffee experience to your taste preferences. Whether you enjoy light, fruity notes or deep, rich flavors, investing in quality coffee beans is essential for unlocking the full potential of your home coffee bar.
5. Keep your at-home coffee bar organized
As you develop your coffee bar at home, staying organized is crucial for both efficiency and aesthetics, ensuring that your space is easy to use and visually appealing. “If you want to create the perfect home coffee space, the best one is the one you’ll use,” advises Toby of Coffee with Conscience.
“Focus on keeping things simple with quality brewing equipment and smart storage solutions for your beans,” says Katie, author of motherhood and coffee blog KT Likes Coffee. “A clutter-free setup makes your morning coffee ritual smoother and more enjoyable.”
Tips and tools for an organized coffee bar
“Home coffee setups can take up quite a bit of counter space, especially if you dive deeper into the hobby,” confides Andrew Richter, founder and head roaster at New York-based Gotham Coffee Roasters. “My most recent coffee bar additions have been a mountable power strip to free up outlet clutter, and a dedicated paint brush to clean my messy grinder. Keeping a work area neat helps free up space whether you’re at home or in a professional shop.”
“Use space-saving organizers like hooks to hang your cups and dosing vials for your favorite specialty coffees,” adds Ember Coffee Co’s owner. “Efficiency is everything—plus, storing your beans in neat little vials helps you keep the space tidy and stylish.”
The professionals at Haymaker Coffee suggest keeping organized by using clear containers for your coffee and tools, making everything you need for making coffee at home easy to find. Clear, labeled jars not only help you quickly find what you need but also add a clean, decorative touch to your coffee bar.
By maintaining an organized home coffee station, you create a space that’s both functional and beautiful, making your coffee routine smoother and more enjoyable.
6. Let your coffee station be an expression of your style
As you develop your coffee bar at home, personal touches are what make a coffee station feel like it belongs in your space. Styling your coffee corner is an opportunity to have fun and express your creativity while making your coffee routine more enjoyable. “A plant or two, a jar of cinnamon sticks, and a cozy mug make the space feel warm and inviting,” affirms Lauren Dryer from the Scandi-inspired Langskip Coffee.
However, there are many ways to help your home coffee bar feel more personalized.
Image by Pottery with Eleni
Display unique mugs and drinkware
“The perfect home coffee station combines style and functionality, creating a cozy corner to elevate your daily ritual,” emphasizes Eleni, the potter behind Pottery by Eleni. “Start by adding a special touch with a handmade mug, offering both beauty and comfort with each sip. Complete the look with a cream and sugar set, a charming countertop accent that keeps essentials within easy reach while adding an artisanal flair to your space.”
Double-walled glass mugs also offer a stylish touch to your space while keeping your coffee at the perfect drinking temperature, and come recommended from the experts at Kaffe Products.
“Set out a coordinated set of mugs for a cohesive look,” agrees Diane from the pod machine company Bruvi. “Showcase your style with sugar and spoons in attractive containers like neutral ceramics or baskets on a small tray.”
Use decorative organization
“Our mantra is to minimize clutter but maximize style,” continues the coffee experts at Bruvi. “Clear glass or acrylic canisters don’t take up visual space but are a great way to display coffee pods.”
For easy clean-up and mess-free brewing, Nomad Coffee Club recommends adding a stylish coffee tray to minimize messy grinds or coffee stains on your countertops.
“Use a small, dedicated corner with floating shelves for easy access to mugs and coffee beans,” adds Gunnar Monson, the face behind Sasquatch Coffee in Oregon. “Keep your home coffee bar organized with labeled jars for beans and tools, making your morning brew as seamless as it is enjoyable.”
Add art and other personal touches
“Don’t be afraid to showcase your personality through quirky signs, vintage finds, or color schemes that speak to you,” advises Stephanie LeBlanc, author of the home styling blog Celebrated Nest. “Remember, your coffee bar should reflect your taste while still being practical – it’s all about making your daily brew feel special.”
“I love tying in personal touches,” agrees Maggie, the creator behind Coffee With Maggie and the early bird newsletter. “My coffee corner has a few plants, and features a custom painting my best friend, By Annie B., did of the cups from all my favorite coffee shops which ties the whole space together.”
Customize your space with renter-friendly style options
When creating a rental-friendly home coffee bar, it’s important to focus on styling options that won’t require permanent changes or damage to the space. “For personalization, go for renter-friendly options like peel-and-stick wallpaper or removable hooks to hang mugs or decor without damaging walls,” recommends hosting expert Gina Dickson of Intentional Hospitality.
You can also focus on the aesthetics of your brewing equipment to bring more style to your at-home coffee bar with practically no effort. “Your morning coffee sets the tone for the rest of your day, so regardless of your favorite brew method be sure to choose one or two products that are unique, expressive of your personality, and elevate your daily routine,” says Aby Henry, the owner of Portland’s Bridgetown Sparrow Ceramics. Artfully crafted, matching pour over and mug sets are one of Henry’s favorite ways to add flair to any home coffee bar.
Finish off your renter-friendly coffee space with colorful trays, baskets, or countertop organizers for an easy and aesthetic corner of your home.
Image by Bridgetown Sparrow Ceramics
Change up your home coffee bar to match the seasons
If you love to change things up in your home for each season, your home coffee bar is the perfect place to start celebrating. “Provide a functional and pretty space for your guests to enjoy a cup of coffee, starting with styling the space with seasonal decor items,” says country living blogger Lynn Langford with At Home in the Wildwood. “Risers and tier trays are perfect for decorating the area for the holidays or seasons. I also like to keep tea and hot cocoa supplies in the same area for those who might not be coffee lovers, but want a hot beverage.”
“Refreshing your coffee bar for each season is my favorite way to infuse personal style into our vintage farmhouse kitchen,” adds the author of Celebrated Nest. “I love expressing my style by swapping out mugs on a tiered tray or hanging seasonal wreaths – easily adaptable ideas for any space. The key is to keep your essentials in place and decorate around them with easily changeable pieces, allowing you to transform your coffee station from summer refresh to fall cozy without any permanent changes.”
Choose a color theme
Using color in your home coffee station is a fun way to add personality and vibrancy to the space while enhancing its overall aesthetic. Incorporate pops of color throughout for a more balanced look, or use color to highlight your coffee bar as a focal point in your home.
“I get the most compliments on our very pink to-go cup station. It includes matching cup sleeves adorned with our family monogram that I’ve designed and hand stamped, plus pink straws and hot coffee lids to match my iced/hot latte mood accordingly for the full custom cafe moment,” reveals lifestyle and home blogger Elle Wagner. “Our guests always get a huge kick out of how extra it is,” she laughs.
The key to personalizing your home coffee bar is to balance style and practicality, ensuring that your decorative elements don’t overwhelm the space but instead contribute to creating an organized, beautiful area that enhances your coffee-making experience.
7. Focus on technique for perfect coffee at home
The final step in elevating your at-home coffee bar is to make sure the coffee you’re making tastes great. If you’re getting the perfect flavor every time, you’ll be more inspired to use your home coffee station regularly.
Women-lead roasters Coroco Coffee Roaster Collective, based in Sycamore, IL, and Tostado Coffee Roasters in Portland, OR are powerful workhouses in the coffee space, and were happy to share the secrets to making coffee at home that mimic the professional cafe experience.
Image by Coroco Coffee Roasters Collective
Use filtered or distilled water
Water plays a crucial role in brewing coffee at home, as it makes up about 98% of your final cup and acts as the primary solvent to extract flavors from the coffee grounds. The quality of the water you use directly affects the taste and balance of your coffee.
“Use filtered water and keep your equipment clean to ensure each cup tastes fresh,” emphasizes Adriana Lopez, the woman behind Tostado Coffee Roasters. Filtered water can remove impurities like chlorine, which can give your coffee an off-flavor.
“Consider using distilled water combined with a mineral enhancer to create the ideal mineral profile for brewing,” shares Karen Weckerly, roaster and owner of Coroco. Too-soft or distilled water can result in a flat or dull taste, but certain minerals in water are needed to bring out the coffee’s full flavor profile.
Get your water temperature right
The temperature of your water also matters, with ideal brewing temperatures for any manual coffee being just off boiling, around 202°F, continues Weckerly. Water that’s too hot (above 205°F) can over-extract the coffee, leading to a bitter taste, while water that’s too cool (below 195°F) might under-extract, resulting in weak or sour flavors.
Use one part coffee to a higher amount of water
“Experiment with water-to-coffee ratios and brewing methods to find your ideal strength,” recommends Lopez.
“The golden ratio for coffee is 1:15 to 1:18 which means one part coffee to 15-18 parts water,” explains Weckerly. “This is perfect for a lot of brewing methods, including pour-overs, drip, and plungers.”
You can use a scale at first to get the hang of what this looks like, then as you get more comfortable, eyeball the amount of coffee and water you use each day for a truly seamless (and delicious) home coffee experience.
Pay attention to your grind size
Grind size is one of the most important factors in making great coffee at home, as it directly influences the overall flavor of your brew. The size of your coffee grounds determines how quickly water passes through them and extracts the flavors.
“A good double shot requires 17-20 grams of very finely ground coffee – think flour like consistency,” advises Weckerly.
A medium grind, with a texture resembling sand, works well for drip coffee makers and pour-over methods, balancing extraction time and flavor. For brewing methods like French press or cold brew, a coarse grind is ideal, as the slower brewing process requires larger grounds to prevent over-extraction and bitterness.
Lopez encourages home coffee enthusiasts to experiment with grind size and brewing methods to highlight the unique flavors of your favorite beans, giving you the best experience in your new home coffee bar.
Go forth and create your perfect coffee bar at home
“For some, at-home coffee bars are a simple budgeting hack—but for me, it’s truly a daily luxury that I miss when I’m traveling,” admits lifestyle and home blogger Elle Wagner. “The key to an iconic coffee bar is how custom you’re willing to make yours. Investing in the right coffee makers, stocking and importing my favorite beans, pods, syrups, and milks, and even matching everything to my favorite color just for fun has made all the difference to using my setup on the daily.”
As you start creating your own coffee bar at home, remember that it’s all about making the space your own. Whether you invest in high-end equipment or start with the essentials, make sure you craft a setup that enhances both your coffee experience and your living space. With a bit of inspiration and planning, your at-home coffee bar can become the perfect spot to fuel your day and indulge in your love for coffee.
Vice President Kamala Harris is pledging to increase the housing supply and make it more affordable, especially for first-time home buyers.
She’s preaching to the choir of voters who rank housing affordability as a top-three issue in the election — about 25%, according to the results of a survey by Ipsos and Redfin, released on Oct. 15. Unsurprisingly, more renters (31.6%) rank housing affordability as a priority issue compared to already existing homeowners (17.1%).
The current housing affordability crisis is the result of the construction industry’s sluggish return to form following the 2007-2008 housing collapse and the basic laws of supply and demand. As is, there isn’t enough housing available for the number of buyers: The housing deficit grew to 4.5 million in 2022 up from 4.3 million in 2021, according to Zillow, a real estate website.
Housing shortages push up prices and keep them high. When a lack of available housing is combined with years of persistently elevated mortgage rates, it becomes even harder for would-be first-time homebuyers to break into the market.
Then, as fewer people trade renting for home ownership, it puts pressure on the rental market, keeping those prices high, too. As a result, shelter, which includes both home buying and renting, has remained the greatest factor in core inflation growth for years.
The only way to effectively combat a lack of affordable homes is by building more housing. Harris’ housing plans are ambitious — and possibly unrealistic, experts say.
Build new housing
Harris has outlined policies aimed at creating 3 million new housing units over the next four years — a 50% increase over the current rate of home building, according to the nonprofit Urban Institute.
In an Aug. 21 Washington Post editorial, Mark Zandi, chief economist of Moody’s Analytics, and Jim Parrott, a housing expert at the Urban Institute, called her plans “the most aggressive supply-side push since the national investment in housing that followed World War II.”
To achieve her end goal, Harris wants to provide several tax incentives to kickstart construction:
A new Neighborhood Homes Tax Credit to construct or rehabilitate 400,000 homes in lower income communities. The homes must be owner-occupied. The incentive would operate similarly to the Low Income Housing Tax Credit (LIHTC) in that states would receive an allocation of credits for specific projects based on local need.
A tax cut for builders that construct affordable starter homes.
A $40 billion innovation fund to incentivize state and local governments, as well as private developers and homebuilders, to find new strategies to expand the housing supply, primarily through regulatory reform and cutting red tape.
Open up certain federal lands for new housing developments. Her campaign has not specified which federal lands.
An analysis of Harris’ proposal by the Urban Institute says Harris’ plans to increase new housing are not out of line with historic standards. But 50% growth is still a daunting task, and would rely on a number of factors outside a president’s direct control. “What she’s proposed will probably only go sort of halfway or part of the way in achieving that, because achieving a 50% increase in housing production is gigantic,” says Yonah Freemark, a principal research associate in the Metropolitan Housing and Communities Policy Center at the Urban Institute and the research director of the Land Use Lab at Urban.
Other observers see the 50% target as unrealistic. “For anyone who has any knowledge of commercial real estate and the housing industry, that seems like an unachievable number,” says Brian Connolly, assistant professor of business law at the University of Michigan. “But good for her for trying to get there.”
“What she’s proposed will probably only go sort of halfway or part of the way in achieving that, because achieving a 50% increase in housing production is gigantic.”
Yonah Freemark, research associate, Urban Institute
However, her proposals could help spur more construction even if they don’t reach the target, says Connolly. He adds that if the government supports homebuilding through new tax incentives that make it more profitable to build new housing and attract skilled labor, then it could make a meaningful impact on the housing supply.
Harris would need Congress to enact much of what she pledges to do. Of the innovation fund, for example, Connolly says, “She couldn’t just sort of pluck $40 billion out of thin air to deliver to the local government; that would be something that would presumably require congressional authorization.”
What there is bipartisan appetite in Congress for, says Freemark, is reducing regulatory restraints on construction. He says there may also be support for expanding the Low Income Housing Tax Credit, which goes toward acquiring, rehabilitating or constructing rental housing for lower-income households. The Democratic National Committee includes expanding LIHTC in its platform.
Make home buying more affordable
A cornerstone of Harris’ housing plans aims to make home ownership — the most traditional vehicle for wealth-building in America — more accessible to first-time buyers. She pledges to provide up to $25,000 in down payment assistance for first-time home buyers and an unspecified, greater amount of assistance for first-generation homebuyers.
Starter-home buyers could use the help since those homes are much more expensive than they were before the pandemic — 51.1% higher than August 2019, according to a Redfin report released on Sept. 30. But there is one recent positive sign for buyers: Starter homes are less expensive now than a year ago for the first time since August 2020. Homebuyers currently need to earn $76,995 annually to afford a home at the median price of $250,000.
There are already places in the U.S. that provide down payment assistance, so Harris’ proposal isn’t new per se, but its size and scope is, says Freemark. “I think that it has the potential to be quite impactful in terms of expanding access to home-purchasing for a large segment of the population that currently, simply, doesn’t have the ability to assemble enough funds,” he adds.
But when it comes to how assistance is delivered, the devil is in the details. “It will take a lot of thought and, potentially, some experimentation on the part of agencies and others that would be implementing this strategy,” Freemark adds. “Also, this is a potentially very expensive program, so I’m not sure I’ve heard broad enough support in Congress.”
It’s much easier to increase demand than it is to increase supply, says Ed Pinto, a senior fellow and co-director of the AEI Housing Center at the American Enterprise Institute, a conservative think tank, and Harris’ down payment assistance plan would serve to add buyers to what is now a strong seller’s market. “Unless that were to change, any efforts along the lines of demand increases would lead to substantial increases in prices,” says Pinto.
Connolly agrees. “If we’re not building those housing units and we’re providing people with $25,000 in credits to go out and buy within a stock of housing that is not sufficient, that’s going to result in bidding up housing prices,” he says.
Still, providing credits to first-time homebuyers could be something that both sides of the aisle support, says Connolly. “I tend to be a little more of an optimist about the bipartisan nature of this problem,” he says.
Make rent more affordable
About two-thirds of all homes are owned by the people who live in them, according to the U.S. Census Bureau. The other third are occupied by renters and Harris has plans to make their lives less expensive, too. The natural outcome to her plan to make home ownership more accessible would be freed-up rental housing. But she also wants to target corporate landlords in two ways:
End rental price-fixing practices by landlords of large multi-family units that raise rents based on algorithms. She is calling on Congress to pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act.
Remove tax benefits for large corporate landlords that own single-family rental homes. She is calling on Congress to pass the Stop Predatory Investing Act.
Freemark says that generally, there hasn’t been much support from Republicans in Congress to fund housing affordability policies for renters. If Democrats gained control in both houses, then there is some potential to expand funding for those purposes, he says.
But there has been some bipartisan interest in stopping large private investors from purchasing a large share of homes in communities throughout the country, says Freemark. “Getting that policy right is not obvious,” he says. “Just because you don’t like private investors doesn’t mean they’re not playing an important role in the overall housing market. And, you know, you’re playing with a very large industry when you start talking about sort of critiquing the ownership of large corporations. So I don’t know. I’m a little skeptical”
Meanwhile, Connolly isn’t so sure that focusing on price-fixing will be impactful in alleviating high rent prices. “I’m a bit skeptical that, you know, going after representing algorithms is really going to result in decreases in rent or slowed appreciation of rent,” he says. “But to the extent that there’s any impact on the rental market at the margins, that might be possible.”
Cut red tape
Experts agree that reducing regulatory burdens to building new housing is necessary and has bipartisan support. Both candidates have, at least, nodded to that need — Republicans in their party platform and Harris with her $40 billion innovation fund.
“Republicans tend to be more pro-business; they tend to provide tax breaks to businesses,” says Connolly. “And Democrats want to see more housing supply and housing affordability. So that looks like a good way to kind of, you know, marry those two sides of the aisle.”
Still, authority over housing regulations is concentrated at the local level, so there may be limits to what Congress can achieve on the issue.
Open up federal lands for housing
In the past former President Donald Trump has floated a vision of 10 “freedom cities” on undeveloped federal lands (his utopian vision for these cities also includes flying cars). Harris has also said she supports opening up federal lands to build housing, but hasn’t provided details.
The Federal Government is the largest landholder in the country (the Bureau of Land Management, or BLM, manages one in every 10 acres in the U.S.) so there’s an inventory of possible land available for development. But there’s a key difficulty with the proposal, says Freemark: “A lot of federal land is not land you would want to build housing on.”
Connolly agrees: “When you look at the map of U.S. federal lands, a lot of them are in very lightly populated areas across the western U.S. where there’s not going to be any demand for housing. There may be federal properties that are underutilized in larger cities that would be appropriate places to build housing … but at this point, I think that proposal, you know, from both sides of the aisle is really unclear in terms of its scope and where that would occur.”
The majority of government-owned land is in the West, and there is precedent for opening it to home building. In July, the Bureau of Land Management announced actions that it said would create thousands of affordable housing units on federal land in Nevada.
Pinto is optimistic about the possibilities. “In areas where there’s plenty of land, you could build an entirely new city,” he says. “Let’s take Utah … the federal government owns [the majority] of land in Utah. Half of that land we’ll call ‘Smokey the Bear’ — national parks, national forests, national monuments, things like that. The other half is just owned by the Bureau of Land Management.”
Trump’s deportation plans could stymie construction
Housing hasn’t been the focus of Trump’s campaign, but the cornerstone promise of his campaign — deportation of millions of undocumented immigrants — could have a direct impact on the housing market.
Trump has claimed that his deportation plans would free up housing, but experts say it would actually worsen the housing crisis since the construction workforce is largely reliant on immigrant labor.
Immigration has not been at the root of the U.S. housing crisis, says Connolly. “To the extent that you have migrants who are, generally speaking, low income or very low income people entering into the market … they’re facing much more dire circumstances than people who are trying to buy their first home or something like that,” he says.
But what Trump’s deportation plans could do is exacerbate a shortage of construction workers.
“I would suspect it is causing some concern for home builders and people in the building industry, because immigrant labor has long been a source of labor for the building industry and not just immigrants from Central and South America, but going back across really our entire history,” says Connolly. “Think of Italian bricklayers, Irish laborers in the 1800s and early 1900s. We have always relied on immigrant labor for work in our building industry. And yeah, the idea that we’re going to go deport a bunch of immigrants, you know, particularly in a time period when we need to be building housing is particularly bad policy.”
Freemark says, “Trump deporting millions of people would be horribly destructive for the housing market. It would make it very difficult to build homes throughout much of the country and it would increase the cost of homes.”
NerdWallet’s 2024 election deep dives
What would the Trump economy look like? Find out where former President Donald Trump stands on economic issues like battling inflation, medical debt, jobs, health care, housing, child care, small businesses and more.
How Trump and Harris aim to address your health care When it comes to health care, the candidates have been light on the details. Harris has focused on things like lowering prescription drug prices; expanding Medicare care coverage; and restoring federal abortion rights. Trump says he supports IVF coverage, but wants to leave abortion to the states. He also said that he has only a “concept” of a plan to replace the Affordable Care Act.
Smart Money’s 2024 Presidential Election Series
Hosts Sean Pyles and Anna Helhoski discuss the grand economic promises made by presidential candidates and the intricate realities of presidential influence on the economy to help you understand the real effects on your daily finances.
(Photo by Bruce Bennett/Getty Images News via Getty Images)
Maybe you’ve just moved into your new apartment and want to make it smell clean and fresh or you’ve been dealing with persistent pet odors due to a furry friend’s accidents. Whatever the reason, bad odors can really put a damper on your mood – and sometimes your health, too. Whether you’re renting an apartment in Scottsdale, AZ, settling into a home rental in Kansas City, or finally buying your dream home in Albuquerque, NM, nobody wants to live in a place that smells bad.
To get you started on your purifying journey, ApartmentGuide reached out to a wealth of experts to offer tips on how to banish bad odors for good. Read on to learn more and make your place smell fresh again.
1. Start with a deep clean
If you are looking for how to get rid of bad odors in your apartment, experts recommend starting with a thorough deep cleaning, but first get some fresh air in the place. “The first step to removing harsh odors is to open up the windows and doors and get as much fresh air in that area as possible,” says Rachel Seavey, professional organizer and coach with Collector Care.
Next, you’ll want to get into deep clean mode. “You must do a thorough deep clean before disinfecting or sanitizing with a disinfectant and odor eliminator – an air freshener probably won’t give you a lasting result,” recommends Hank Williamson, President of The Maids of the Triad, a cleaning company that services North Carolina. “Your carpets have likely retained odor so you will need to vacuum and clean them. If your walls have absorbed cigarette smoke or other odors you should wipe them down with a vinegar and water mixture – using a microfiber mop greatly assists. If your refrigerator has odor, dispose of dated food and thoroughly clean it; you may use baking soda or coffee grinds to absorb any remaining odor. Next, open the windows, turn on fans, and change air filters.”
Jonathan Herrera of Master Clean Bay Area, agrees that starting with a deep clean is the best way to get rid of odors before a more focused solution. “A deep clean focusing on floors, bathrooms, living areas, and the kitchen can significantly reduce harsh odors in an apartment,” says Jonathan. “By thoroughly cleaning these areas, we eliminate trapped dirt and lingering smells. Our go-to products are Simple Green and dish soap. Simple Green not only cleans but also helps disinfect, making it an effective solution for neutralizing odors while ensuring a hygienic environment. Regular deep cleaning of these high-traffic areas can help maintain a fresh-smelling space, especially when dealing with persistent smells from cooking, pets, or moisture.”
2. Clean your garbage cans
Aside from taking the trash and recycling out frequently to ensure that smells don’t linger, you need to be sure you’re properly cleaning your bins to get rid of bad odor that may be building. “I recommend garbage receptacles to be cleaned at least once every two weeks,” says Omar Arroyo of Blue Sea House Cleaning, a house cleaning company serving California and Monterey Peninsula. “Start by making a mix of about a half gallon of water, two teaspoons of liquid dish soap, and three teaspoons of baking soda. Pour the mix into the garbage receptacle and let it soak for about five minutes. After five minutes, scrub, rinse, and dry it with a towel or paper towel. Your garbage receptacle will be odor-free for about two weeks.”
3. Be smart about the scents you use
Instead of just masking the smell with candles and air fresheners, try using scents that do a great job of neutralizing odors. “Certain fragrance notes like citrus, lavender, and eucalyptus are excellent for freshening up spaces and neutralizing harsh odors,” adds the team at Be Layered, a fragrance company. “These notes work by not just masking smells but by refreshing the air with clean, natural scents. For a cozy and long-lasting effect, warm notes like vanilla, musk, and sandalwood can create a comforting atmosphere while also combating unpleasant smells.”
The team at Cleany, an NYC-based cleaning company, agrees, “Odor-absorbing candles with scents like lavender or eucalyptus can mask and refresh harsh smells, especially in small spaces like bathrooms or kitchens.”
4. Simmer a solution on the stove
Another classic trick to get rid of bad odor is to simmer a natural mixture on the stove. “We all love a home that smells wonderful. In fact, our sense of smell is the sense most closely tied to memory,” shares Alejandra Fortin, founder and CEO of This is Home, a cleaning, organizing, and interior design company based in Houston. “A great way to make your home smell amazing and give you that cozy feeling inside, especially during the holidays, is by warming water on the stove and adding cinnamon sticks, cloves, cardamom, an orange and a lemon into the hot pot. Leave it there simmering and it will quickly have your entire home smelling like the holidays and will put you and your family in the best mood!”
If you’re looking for another concoction to try, consider Edgar Villafranco’s remedy from We Leave Clean, a cleaning company with locations based all over the country. “For stubborn odors, especially from cooking or pets, try simmering a pot of water with slices of lemon, a few sprigs of rosemary, and a teaspoon of vanilla extract for 30 minutes,” says Edgar. “The steam from this natural mixture not only freshens the air but also neutralizes lingering smells, leaving your home smelling clean and inviting.”
5. Use a steam mop
Steam mops are a great chemical-free and eco-friendly way to get stains and smells out of your floors. “At NeatO, we find that one of the best defenses against harsh odors in our clients’ homes is by using a quality steam mop like the Shark Genius, along with a light spritz of diluted Pine-Sol on the mop pad,” says NeatO Cleaning, a Los Angeles-based cleaning company. “The heat and moisture from the steam helps lift dirt and stains, while simultaneously killing odor-causing bacteria. The spritz of Pine-Sol doubles down on eliminating bacteria while leaving a clean scent that lasts.”
6. Reduce laundry odor
If you’ve got smells baked into your clothes, try using some vinegar in your next load. “For laundry odors, use a quarter cup of white vinegar in the wash. White vinegar neutralizes laundry odors and surprisingly makes clothes smell fresh and clean,” says Beth McGee, author of Get Your House Clean Now: The Home Cleaning Method Anyone Can Master.
7. Get creative with dryer sheets and fabric softener
A lot can be done with simple household items to clean up your space. Take some tips from Greg Strine of Dream Cleaning, a top-rated home cleaning service in Chicago, and get your space spelling good with what you have on hand. “Start by taking dryer sheets and putting them in each vent. This will absorb odors in the ducts and create a clean scent from the duct work. Some furniture just needs to be thrown out, but try unzipping the cushions and putting a dryer sheet inside a couch cushion. Leave it there for three weeks and smell how this helps with your furniture,” says Greg.
“Lastly, take a small bowl with one cup of coarse salt, add two tablespoons of rubbing alcohol and mix. Then add four to six ounces of fabric softener and put it under the couch. This will help eliminate odor, keep insects away, and add a clean fragrance to your property.”
8. Tackle your garbage disposal
If a bad odor is wafting from your garbage disposal, it might be time to focus your cleaning efforts on this area. “To quickly combat a bad smell in your garbage disposal, pour a cup of baking soda down the drain, followed by a cup of white vinegar, which will create a fizzing reaction that helps break down odor-causing particles; then run cold water to rinse thoroughly,” recommends NYC house cleaner Sunnyside Clean.
9. Use a combination of white vinegar mixed with baking soda
A quick and natural cleaner can be made by combining white vinegar with baking soda. As an easy way to tackle pet-related harsh odors, listen to Sarina Ocal of MissionCat Cleaning, a cleaning company servicing both the New Jersey and New York area.
“To get rid of bad odors, especially pet-related ones, use a mixture of white vinegar and baking soda. Apply it directly to the stained area, let it sit for a few minutes, and then scrub gently,” recommends Sarina. “For persistent smells, you can also try an enzyme-based cleaner to break down odor-causing compounds.”
Luis Da Silva, CEO of My Cleaning Angel, a residential and commercial cleaning company based in Tampa, Florida, seconds this method of removing bad odor. “To remove harsh odors in your apartment, use a mixture of white vinegar and baking soda — vinegar neutralizes odors while baking soda absorbs them.”
10. Combine vinegar and water
For an easy cleaner, combine vinegar with water. This creates a quality cleaner that is non-toxic and friendly to most surfaces. “To neutralize lingering smells, we wipe down surfaces with a vinegar solution, which disinfects and freshens the space,” shares the team at Superb Maids NYC.
This solution can also be used on fabrics and carpets. “Use a mixture of equal parts water and white vinegar in a spray bottle to mist fabrics and carpets, allowing it to dry completely – vinegar neutralizes tough odors without leaving a lasting smell,” shares Lisa Shultz, owner of Anderson Carpet Cleaning Inc.
11. Use baking soda and vinegar on their own
Together, baking soda and vinegar are a force to be reckoned with, but they offer special benefits on their own. “Vinegar is a powerful odor neutralizer – fill a bowl with white vinegar and leave it in a smelly room overnight to absorb strong odors,” suggests the team at Cleany.
Baking soda is also powerful at absorbing odors on its own. “For general odor removal, we use baking soda on carpets and upholstery, allowing it to absorb odors before vacuuming,” says Superb Maids NYC.
If you combine all products – a water and vinegar solution with baking soda – you can do a lot of good. “For more stubborn smells, such as pet odor or lingering food aromas, sprinkle baking soda over the affected area and let it sit for 15-20 minutes to absorb the odor. Then, spray a 50/50 mix of water and white vinegar, let it fizz for a minute, and wipe clean. This method is natural, safe, and leaves surfaces odor-free!” advises Camden of ClothesLyne, a laundry service with locations along the East Coast.
Using organic products like baking soda and vinegar can be a great way to clean without using harsh chemicals. “We always use organic products that our professional cleaners prepare to leave the areas shiny, clean, and smelling clean,” says Heromaid, a house cleaning service in the Bay Area and Los Angeles. “For organic cleaning products, we recommended vinegar, baking soda, and sometimes hydrogen peroxide to remove harsh stains.”
12. Tips for cleaning with store-bought products
If you’re looking for something stronger that you can buy at the store, Cleaning Glow, an office, AirBnB, and house cleaning service, has got you covered with their recommendations to get rid of bad odor.
“1. To get rid of general odors throughout your room, use compact OZONE Spray. It can kill bacteria and viruses in seconds.
2. Use Arm & Hammer Extra Strength Carpet Odor Eliminator to get rid of odors stuck in carpets.
3. Mix 1 hydrogen peroxide with 2 parts water and a small dish soap; spray to remove pet odor stains.
4. Place activated charcoal bags in various rooms to absorb offensive smells without covering them.”
13. Clean up pet stains and leftover odor
We love our furry friends, but they can wreak havoc on the quality of our spaces. If you’ve got pets that struggle with accidents, give this section a read and try out some of these tips to get rid of bad odor and stains.
“For pet odors, sprinkle baking soda generously on the area and let it sit overnight to absorb smells before vacuuming it up; follow with a light mist of white vinegar for extra odor-neutralizing power,” suggests Lisa Shultz, owner of Anderson Carpet Cleaning Inc. “Treat urine stains by first blotting up as much liquid as possible, then apply an enzyme-based cleaner specifically designed to break down proteins that cause lingering smells.”
It may be tempting to just mask the urine smell if the job seems too mighty, but you need to be using a cleaner designed for pet stains. “For pet stains that are causing odors, use an enzymatic cleaner specifically designed for protein-based stains like animal waste. This way, the source of the odor is broken down and removed, not just masked,” says Beth McGee, author of Get Your House Clean Now: The Home Cleaning Method Anyone Can Master. “If the stain is on fabric like furniture or carpet. Test a hidden area first to be sure it won’t damage the fabric.”
Professional cleaners do have favorites when it comes to products of pet stains. “If you identify you have a pet odor problem due to naughty or incontinent pets, we always suggest using Naturals Miracle, which is all-natural and uses enzymes,” recommends Rachel Seavey, professional organizer and coach with Collector Care. “You spray a small amount on the area and let it go to work. It is all natural so it’s safe to use around your fur babies.”
Another favorite of professional cleaners is Arm and Hammer Pet Fresh Powder. “If you have a harsh odor coming from your carpets and don’t want to call your carpet cleaning company, start by buying Pet Fresh powder that you can find anywhere,” says Seattle Steamers, a carpet cleaning company in Seattle. “Next, spread it on the carpets. Agitate the carpets using a broom and let it set for an hour. Then vacuum the carpets and you’re done!”
Now, it does matter whether the stain is old or new – this will change the method by which you attack the stain. “Urine is one of the few things that will change on the pH scale from an acid (new urine stain) to an alkaline (old urine stain) over time,” shares Carpets by Chris, a carpet repair company based out of Mukilteo, Washington.
“For this reason, it is necessary to clean a new spot with a different product than you would with an old spot. Since a new spot is acidic, you want to use an alkaline like ammonia to break the chemical bond and remove the urine. Conversely, if the urine stain is old, then more than likely it has changed from an acid to an alkaline. This means we need to use an acid like white vinegar to break the alkaline, chemical bond. To do this, simply saturate the stain with the chemicals, apply a dry towel to the spot, and stand on it multiple times to soak up as much as possible. If there is a visible stain, use a 35% solution of hydrogen peroxide. Mist it on the stain and let sit. This is very effective in getting rid of the urine stain.”
14. Use an ozone generator
Sometimes odors stick around and don’t want to leave. If your place is like this, it might be worth it to look into a different type of solution. “In more persistent cases, we use activated charcoal to absorb odors or deploy an ozone generator,” says the team at Superb Maids NYC.
“Ozone generators are highly effective at eliminating tough odors, such as those from smoke, mold, or pets, by releasing ozone (O₃), which breaks down odor-causing molecules. This method reaches areas that standard cleaning cannot, making it ideal for deeply embedded smells. However, ozone generators must be used in unoccupied spaces, as ozone can be harmful to humans and pets during treatment. After use, we ventilate the area thoroughly before allowing re-entry, ensuring the space is fresh and odor-free.”
15. Get rid of smoke
Maybe you’ve just moved in and your apartment smells like cigarette smoke – not the best thing in the world to be around all the time. Well, an ozone generator is actually a great way of solving this issue. “To remove smoke odors, use an ozone machine to purify the air quickly, but follow the directions for use carefully,” says Beth McGee, author of Get Your House Clean Now: The Home Cleaning Method Anyone Can Master. “You can buy one for a reasonable price or many rental companies have them available.”
If purchasing or renting an ozone generator is out of the question, Beth has another tip for getting rid of smoke. “Wipe surfaces with vodka and distilled water to neutralize smells. The alcohol in vodka kills odor-causing bacteria. As it evaporates, it takes the smells with it,” says Beth. “Lightly spray vodka diluted with water onto fabric, carpet, or surfaces and let it air dry. It works great for smoke or musty odors and doesn’t leave a strong scent behind.”
The team at Cleany also has a tip for getting rid of smoke. “For persistent smells like smoke, placing bowls of activated charcoal around the room can help absorb unwanted scents,” they say. Lisa Shultz, owner of Anderson Carpet Cleaning Inc., seconds this idea and adds another tip. “For smoke or musty odors, place bowls of activated charcoal or coffee grounds in the room for 24 – 48 hours to absorb odors naturally,” says Lisa.
If you feel like your company’s growth has stagnated, it may be time to look at inorganic growth strategies. Inorganic growth involves expanding through mergers and acquisitions rather than increasing your company’s current activities. It’s generally considered faster than organic growth but requires a larger upfront investment and comes with some risk.
Read on for a closer look at inorganic growth, including its pros and cons, how it compares to organic growth, and strategies for achieving (and funding) inorganic growth.
Key Points
• Inorganic growth often involves acquiring or merging with other companies to expand market share, product offerings, or geographic reach.
• Inorganic growth allows businesses to grow more quickly compared to organic growth, bypassing slower internal processes.
• It enables entry into new markets or industries, providing immediate access to customers and distribution channels.
• Inorganic growth can be riskier than organic growth, involving significant capital investment and the challenge of integrating different company cultures.
• Inorganic growth can be funded by small business loans, equity fundraising, and invoice financing.
What Is Inorganic Growth?
Inorganic business growth is growth that is created using resources outside of the company. It typically involves mergers and acquisitions, joint ventures, or adding locations. This is in contrast to organic growth, which occurs through harnessing a company’s existing resources.
While organic growth tends to be slow and gradual, inorganic growth enables a company to expand rapidly by entering a new market that may be related to or different from its original business line. Inorganic growth typically involves a more dramatic shift in how a business operates. It also requires a larger upfront investment than organic growth. Owners will often use small business loans to fund inorganic growth.
Example of Inorganic Growth
An example of inorganic business growth is Facebook’s acquisition of Instagram in 2012. Rather than building a similar platform from scratch, Facebook purchased Instagram for $1 billion to expand its presence in the social media and photo-sharing space.
This acquisition allowed Facebook to tap into Instagram’s growing user base and capitalize on its unique features. The move provided immediate access to Instagram’s established brand and audience, fueling Facebook’s growth in new demographics.
This strategic inorganic growth decision helped Facebook maintain its dominance in the social media industry while reducing competition and diversifying its service offerings.
Recommended: IPO vs Acquisition: Advantages and Disadvantages
What Is Balanced Growth?
Balanced business growth refers to the strategy of achieving a steady and sustainable expansion by integrating both organic and inorganic methods. It involves growing through internal efforts, like improving sales, launching new products, and enhancing operational efficiency, while also leveraging external growth opportunities, such as mergers, acquisitions, or partnerships.
The goal is to balance short-term gains from inorganic growth with the long-term stability of organic development. This approach helps businesses minimize risks, maintain operational control, and ensure that growth is sustainable, scalable, and aligned with the company’s strategic objectives over time.
Inorganic Growth vs Organic Growth
Both inorganic and organic growth serve the same purpose — taking your business to the next level. But each takes a very different path to get there.
Inorganic Growth
Organic Growth
Seeks external sources for growth
Leverages internal sources for growth
Requires large up front investment
Investment is gradual
Growth is fast
Growth takes time
Inorganic growth involves using resources outside of the company, such as engaging in mergers and acquisitions. Organic growth, on the other hand, uses inside opportunities — such as cost-cutting measures, internal research and development, and operational improvements — to spur growth.
Another key difference is that inorganic growth typically requires a large initial investment, whereas organic growth generally involves gradually investing in marketing, human resources, and operations over time. As a result, inorganic growth usually requires taking out a business loan, whereas organic growth may or may not require financing.
Inorganic vs. organic growth also comes down to speed. Inorganic growth generally leads to a much faster increase in revenues and profits than organic growth.
Pros and Cons of Inorganic Growth
To help you decide if an inorganic growth strategy is the right fit for you, here’s a look at some of the benefits and drawbacks of inorganic growth.
Pros of Inorganic Growth
Cons of Inorganic Growth
Enables faster growth than you can achieve through organic growth
High upfront costs
Allows you to take over a proven business model rather than start from scratch
Merging workforces can lead to redundancies, as well as friction
Increasing your business size can make it easier to access additional capital for further growth
Investing in another business or location can be risky
Pros
Unlike organic growth, which can take time, inorganic growth results in rapid expansion, since the company you are acquiring or partnering with already has established systems, customers, and revenues.
Growing through mergers and acquisitions also gives your business access to valuable resources and assets, such as technology, intellectual property, equipment, and staff. In addition, it can expand your market share and reduce competition. Becoming a larger company can also make it easier to access capital through business loans when you need it.
Recommended: 10 Business Growth Strategies
Cons
Inorganic growth generally requires a large upfront investment, which may involve taking on debt. If your company is currently small, getting the financing you need might require collateral, which can put personal or business assets at risk.
Acquiring a new business or adding a new location can also result in management challenges. In the case of a merger or acquisition, you may end up with multiple people in the same roles and need to consolidate. Merging with another company can also lead to friction.
While inorganic growth can result in rapid growth, success is not guaranteed. Investing in another business or location can be risky.
5 Inorganic Growth Strategies
There are several inorganic growth business strategies to consider, depending on how your business is set up and how willing you are to give up your company’s independence.
1. Acquisition
Purchasing an already-established business is one way to instantly increase your business’s revenues and profits. An acquisition allows you to take over a proven business model with customers and systems already in place rather than having to build it from scratch.
Recommended: Top Business Acquisition Loans
2. Merger
In a merger, two firms agree to become partners in a larger business. To achieve inorganic growth through a merger, you might join forces with a competitor. This takes your competition out of the marketplace and allows you to absorb its market share. It also gives you access to its technology, products, and workforce.
3. New Location
Opening a new location for your existing business leverages the hard work you’ve already put into your brand. You won’t have to develop new management or marketing strategies, other than extending what you’re already doing at your original location. If you sell products, you may be able to negotiate a lower per-unit cost if you need to increase the size of your orders from suppliers to outfit a new location.
4. Strategic Alliance
When two brands see benefits in working together but don’t want to give up their individual independence by merging, you have a strategic alliance. Perhaps Company A has the audience that the other wants to reach, while Company B has technology that Company A can leverage.
5. Joint Venture
Similar to a strategic alliance, a joint venture involves two or more companies coming together to take on a particular business activity for a limited period of time. A joint venture creates a new business entity that is separate from the participating businesses. This allows the participating businesses to grow while maintaining their independence and individual brands.
Recommended: How to Grow a Business
Funding Inorganic Growth
Here’s a look at some ways your business may be able come up with the capital it needs to fund inorganic growth.
Business Loans
There are many different types of small business loans, including business acquisition loans. If you have good credit, you may qualify for a bank loan with low interest rates and favorable terms. If your business is new or you have fair credit, you may be able to get financing for inorganic growth through an online lender. These alternative lenders often have more flexible qualification criteria than banks, and also provide faster funding. However, loan amounts may be smaller and interest rates can be higher.
Equity Fundraising
Another option for funding inorganic growth is to bring on private equity investors. These individuals (or firms) can provide capital for you to acquire, merge with, or partner with another business, in exchange for equity in the company. Keep in mind, though, that investors may want a say in strategic decisions.
Invoice Financing
If you are looking for a smaller amount of financing to help fund a joint venture or strategic alliance, you might consider invoice financing. This allows you to leverage the value of unpaid invoices to get access to cash quickly. With invoice financing, lenders advance a percentage of your unpaid invoice amount (often as much as 90%). When your customer pays the invoice, you repay the lender the advance amount, plus fees.
Because invoice financing is backed by your invoices, it can be easier to qualify for compared to other types of business loans. However, invoice financing tends to cost more than other types of financing.
The Takeaway
Inorganic growth involves buying or joining forces with other businesses or opening new locations. It contrasts with organic growth, which is growth from within the company. Both inorganic and organic growth may involve outside financing. However, inorganic growth generally requires significantly more capital than organic growth.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What is the difference between organic growth and inorganic growth?
Organic growth happens over time and involves using internal resources to increase revenues and customers. Inorganic growth, on the other hand, happens quickly and typically involves acquiring, merging with, or partnering with another company.
What is a benefit of inorganic growth?
Inorganic growth enables your business to expand rapidly, since the company you acquire or partner with typically already has established systems, customers, and revenues.
What are the methods of inorganic growth?
Inorganic growth strategies include acquisitions, mergers, opening a new location, joint ventures, and strategic alliances.
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When buying a home, one of the most significant decisions is whether to purchase a newly constructed home or a resale property. Each option has unique advantages and challenges, and the choice ultimately depends on your priorities, lifestyle, and financial goals. Learn the pros and cons of new construction and resale homes to help you make an informed decision.
The Pros of New Construction Homes
Customization Options
One of the biggest benefits of buying a new construction home is the ability to customize it to your taste. Many builders offer options for floor plans, finishes, and fixtures, allowing you to create a space that suits your preferences from day one. You can choose everything from the kitchen countertops to the type of flooring, ensuring the home reflects your personal style.
Modern Features and Technology
New homes are typically equipped with the latest energy-efficient systems, smart home technology, and modern appliances. These innovations can lower utility bills and reduce carbon footprint, providing long-term savings. Features such as energy-efficient windows, modern insulation, and state-of-the-art HVAC systems are often standard in new builds.
Lower Maintenance Costs
Because everything in a new construction home is brand new, you’re less likely to face immediate repairs or replacements for major systems or appliances. Builders also often include warranties, covering many issues that might occur in the first few years of ownership.
Modern Features
New homes are built with the latest materials and construction standards that usually have features and amenities that older homes do not. Walk-in showers, heated floors, security systems, and smart lighting are just some of the features that you find in new builds.
Modern Design and Layouts
New construction homes tend to feature open floor plans, larger kitchens, walk-in closets, and modern designs that match contemporary living preferences. This can offer better flow for daily life, with spaces that are more suited to the needs of modern families.
The Cons of New Construction Homes
Higher Price Tag
New construction homes typically come at a premium compared to resale homes in the same area. The cost of modern materials, labor, and customization options can drive up the price. Additionally, upgrades to the base model of a new home can quickly add up, potentially pushing the final cost beyond your initial budget.
Limited Landscaping and Established Neighborhoods
With new construction, you might find yourself in a developing neighborhood where landscaping and community amenities are still being developed. Mature trees and fully grown greenery are usually missing from new developments, and the sense of community might take years to establish.
Potential Delays
Building a home from the ground up can take time, and unexpected delays due to weather, labor shortages, or supply chain issues are common in new construction projects. This can result in a longer waiting period before you can move in.
Location Limitations
New construction is often located in suburban areas or on the outskirts of cities where land is available. This means you may be further away from city centers, schools, and established infrastructure, which could lead to longer commutes or less access to in-demand amenities.
The Pros of Resale Homes
Established Neighborhoods
Resale homes are often located in well-established neighborhoods with mature landscaping, nearby amenities, and a sense of community that has developed over time. Many buyers appreciate the character and charm of older homes and the fact that these neighborhoods tend to have more history and personality.
More Affordable
On average, resale homes tend to be less expensive than newly built homes. You can often get more square footage or a larger lot for the same price as a smaller new construction home. Additionally, you may have more negotiating power with a resale home, especially if the seller is motivated. However, in high-demand areas the opposite is usually true. Resale homes are typically more expensive when compared to new builds if they are in a particularly desirable location.
Move-In Ready
If you’re on a tight timeline, a resale home may be the better option since you can move in as soon as the sale is finalized. You won’t have to wait for construction to be completed or deal with potential delays.
Layouts and Square Footage
Resale condos and houses tend to be bigger than new builds, offering more spacious layouts and living space. Square footage, when compared to new builds, is larger in older homes as they used to be built to account for larger families and a decreased demand for real estate.
The Cons of Resale Homes
Higher Maintenance and Repair Costs
While a resale home may be more affordable upfront, it could require ongoing maintenance and repairs. Older systems, such as plumbing, electrical, or roofing, may need to be updated or replaced. These unexpected expenses can add up quickly and increase the total cost of ownership.
Less Energy Efficiency
Older homes were often built before modern energy-efficient standards were in place. This can result in higher utility bills due to less efficient heating, cooling, and insulation. Retrofitting an older home with energy-efficient upgrades can be costly.
Outdated Layouts
Resale homes may have layouts that are less conducive to modern living. Older homes typically have closed-off rooms, small kitchens, and fewer bathrooms, which may not suit today’s lifestyle preferences. Renovations could be necessary to create an open-concept floor plan or add additional space.
Limited Customization
Unlike new construction, what you see is often what you get when it comes to layouts inresale homes. Major changes such as altering the floor plan, expanding the kitchen, or upgrading bathrooms require costly renovations. You’ll also need to work within the existing footprint and structure of the house.
Choosing between new construction and a resale home is a personal decision that depends on your priorities. If you value customization, modern features, and lower maintenance, a new construction home may be the best fit for you. On the other hand, if you’re looking for a home with character in an established neighborhood, or you want a more affordable option, a resale home could be the better choice.
Ultimately, it’s essential to weigh the pros and cons of each option and consider your long-term needs before making a decision. Both new construction and resale homes offer unique advantages, so take the time to explore both before committing to your dream home.
Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
Looking for your dream home?
Contact us today to talk to a Realtor in your area
Buying a home is exciting, but coughing up the down payment can be a downer. That’s where down payment assistance enters the picture. Government and nonprofit programs help unlock the door to homeownership for qualified buyers.
It makes sense to put down as much as you can comfortably afford on a down payment. The more you put down, the less you’ll be borrowing, which translates to lower monthly payments and less interest paid over the life of the loan. But many people put down less — in some cases far less — than 20% of the home’s purchase price, the amount often recommended to buyers.
In an April 2024 SoFi survey of 500 people intending to purchase a home, almost a third of respondents (30%) said they were planning to put down between 11% and 20%. Almost one in five (19%) said they would put down 6% to 10%. Ten percent of buyers were aiming for a 5% down payment or less, and fully 7% of people were exploring no-down-payment options. First-time buyers who finance their home are especially likely to have a lower down payment, according to data from the National Association of Realtors®.
Down Payment Defined
Depending on their financial situation, homebuyers may qualify for down payment assistance from the government or a private entity.
Down payment assistance programs come in several forms. Some offer homebuyers loans and grants that can be applied directly to down payments and, in some cases, help with closing costs, too.
The down payment — which covers the upfront “out of pocket” cost of getting a mortgage — is usually made at the mortgage closing and can be paid with a check, cashier’s check, or electronic payment.
The down payment covers a reasonable percentage of the total home purchase price, with the mortgage covering the remainder. Lenders typically won’t approve a mortgage loan unless the borrower pays upfront cash — anywhere from 3.5% to 20% in most cases — against the total price of the property.
💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Homebuyer Assistance Programs and Qualifications
If a first-time homebuyer can’t afford a down payment, that opens the possibility of financial assistance.
The programs that tend to provide the most financial assistance to homebuyers — state and federal governments and local, regional, and national nonprofits — will likely need an applicant to clear hurdles in order to qualify for down payment help.
These criteria usually lead that list:
• The three-year rule. The buyer must not have owned a home in the past three years. In most scenarios, government agencies and private charities deem anyone who hasn’t owned a home in the previous three years, even a repeat buyer, a “first-time home buyer.”
• Must be for a primary home. Homebuyers should be clear if the money is going to the purchase of a primary residence. If the home is an investment property designed to draw rent, financial assistance providers usually won’t issue a green light on funding.
• Income limits. First-time homebuyers may have to meet income limits. The buyer may also have to keep the home price below a specified limit.
• Funding caveats. Depending on the funder, the first-time homebuyer may have to take a homebuyer education course and may be asked to contribute some money to the down payment.
New homebuyers looking for financial help — and who qualify for that help — can get financial aid from a variety of sources, both public and private.
The help can be substantial.
According to a report from the Urban Institute, up to 51% of potential homebuyers residing in the report’s U.S. metropolitan areas studied would qualify for some form of home down payment assistance. Upon applying, those homebuyers would be in line to receive between $2,000 and $39,000.
Yet in SoFi’s recent survey, only 38% of potential homebuyers who said not having an adequate down payment was their biggest challenge had explored down payment assistance programs. Actively looking for down payment assistance could be a good move. When that search begins, the following funding sources may be a good place for homebuyers to start.
Recommended: First Time Homebuyer Guide for 2023
HUD, the Gatekeeper
A good source for state and nonprofit home down payment assistance is the Department of Housing and Urban Development, or HUD.
HUD is a federal gatekeeper, steering homebuyers to various state and nonprofit programs and offering home buying and down payment advice from HUD home assistance counselors.
Each state may have different rules and requirements, so it’s a good idea to talk to either the state agency directly or to a qualified advisor through the HUD housing counselor portal.
Federal, State, and Local Government Grants
Government grants might be the optimal form of down payment assistance, as it’s free money. Grants usually come from federal, state, or local governments and nonprofit groups.
Each government agency or charitable group has its own rules for down payment assistance grants, but in general, you have to pass an eligibility test (the common criteria are listed above) to qualify.
Again, HUD does not offer direct grants to individuals but works through local governments and nonprofit organizations to make financial assistance and counseling available. 💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.
Federal Government Loans
While technically not deemed direct down payment assistance, U.S. government-insured housing loans consist of low-interest loans to new homebuyers that enable them to make lower down payments, thus making it easier to afford both a home loan and a down payment.
Federal home loans usually come from three agencies:
The Federal Housing Administration. The FHA provides loans from private lenders to qualified homebuyers. The primary qualifier is a FICO® credit score of 580 or above. A borrower with a credit score of 500 to 579 who brings a 10% down payment to the table may also qualify for an FHA loan. In SoFi’s survey, only 49% of homebuyers had heard of FHA loans, yet these can be a great solution for buyers.
U.S. Department of Agriculture. The USDA offers direct home-buying assistance to rural homebuyers. Loans enable qualified homebuyers to purchase a home with no down payment. The home must be in a qualified rural area, and borrowers’ adjusted annual income cannot exceed 115% of the median income in the area, among other criteria. These loans, too, can fly under the radar with shoppers. In SoFi’s survey, only 4 in 10 buyers (41%) had heard of USDA loans.
There is no minimum credit requirement for a USDA loan, but applicants with a credit score below 640 are subject to more stringent guidelines to qualify.
Department of Veterans Affairs. The VA provides home purchasing assistance to current members of the armed forces, military veterans, and eligible spouses of deceased U.S. military members. Similar to a USDA home loan, a VA loan requires no down payment.
Applicants must meet the VA’s — and the lender’s — standards for credit and income, and be purchasing a primary home.
Forgivable Loans
These loans come from lenders, usually in two forms: deferred payments and forgivable loans.
Forgivable loans are basically second mortgages that borrowers don’t have to repay if they remain in the primary home for a specific time period (for example, 10 years).
Forgivable loans usually have a 0% interest rate, making it easier to afford a home down payment.
State Down Payment Assistance
Assistance programs vary by state. Still, some commonalities exist — especially the urgency to help economically struggling homebuyers afford a home down payment.
These states are examples of that:
Arizona. By and large, homebuyers in most Arizona counties can apply for home down payment assistance through the state’s Department of Housing Home Plus Program.
Homebuyers will need a FICO® credit score of 640 or higher and an annual income of $126,351 or less. Additionally, the purchase price of the home can’t be higher than $371,936.
Florida. The Sunshine State offers home down payment assistance programs via Florida Housing Finance Corp.
• HFA Preferred and HFA Advantage PLUS Second Mortgage. These down payment and closing cost programs offer 3%, 4%, or 5% of the total loan amount in a forgivable five-year second mortgage.
• Florida Assist. Eligible homebuyers receive up to $10,000 through an interest-free second mortgage. The money doesn’t have to be paid back unless the homeowner sells or refinances the property.
Recommended: Guide to Buying, Selling, and Updating Your Home
The Takeaway
Government and nonprofit funding are the primary vehicles for down payment assistance, but homebuyers may also seek down payment help from family and friends, retirement and investment funds, or even microlenders.
However a buyer approaches home down payment assistance, the keys are planning, research on available programs, and a disciplined approach to budgeting.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
With mortgage rates surging higher again, somewhat unexpectedly, a thought came to my mind if you’re currently home shopping.
A couple years ago, I threw out the idea to adjust your maximum purchase price lower when looking for a property.
That post was driven by the many home sales that were going way above asking at the time. In other words, a home may have been listed for $600,000, but eventually sold for $700,000 in a bidding war.
That was all to do with a very hot housing market, driven in large part by a combination of record low mortgage rates and very low for-sale supply.
Today, we still have relatively low inventory, but the cheap mortgage rates have come and gone.
And now that they’re so volatile, you may want to input a higher rate into your mortgage calculator to ensure you don’t get caught out.
Mortgage Rates Are Highly Volatile Right Now
At the moment, mortgage rates are super unpredictable. While they had enjoyed a very good 11 months, falling from as high as 8% to nearly 6% in early September, they’ve since reversed course.
The 30-year fixed was nearly back into the high 5% range before the Fed cut rates and a better-than-expected jobs report arrived.
Sprinkle in some doubting about the Fed’s pivot and the upcoming uncertainty regarding the election outcome and home buyers are now facing a rate nearly 1% higher.
Per MND, the 30-year fixed has risen from a low of 6.11% on September 17th to 6.92% as of October 23rd.
Talk about a rough month for mortgage rates, especially since many expected the Fed’s rate cutting campaign to be accompanied by even lower mortgage rates.
It’s a good reminder that the Fed doesn’t control mortgage rates, and that it’s better to track mortgage rates via the 10-year bond yield.
Also, those yields are driven by economic data, not what the Fed is doing. By the way, the Fed makes moves based on the economic data too. So follow the economic data for crying out loud!
Anyway, this recent move up serves a great reminder that mortgage rates don’t move in a straight line. And to expect the unexpected.
Err on the Side of Caution By Inputting a Higher Mortgage Rate
If you’re currently looking to purchase a home, it’s generally a good idea to get pre-qualified or pre-approved upfront.
That way you’ll know if you actually qualify for a mortgage, and at what price point, including necessary down payment.
The thing is, these calculations are only as good as the inputs. So if your loan officer or mortgage broker puts in overly favorable numbers, it could skew the affordability picture.
In other words, you almost want to ask them to put in a mortgage rate that is 1% higher than today’s market rates.
That way you can absorb a higher payment if rates happen to worsen during your property search, which can take months and months to complete.
If rates happen to fall during that time, wonderful, it’ll just be the icing on the cake. Your expected monthly PITI will be even better than expected.
But like those bidding wars that took place, which resulted in higher asking prices, unexpected spikes in rates should also be anticipated.
And if they are, you might look at properties that are more within your price range, as opposed to homes that only work if everything is just right.
Given that homeowners insurance and property taxes are also on the rise (with just about every other cost), it can pay off to be prudent with your proposed home buying budget.
Adjust the Mortgage Rate on the Property Listing Page
If you’re using a site like Redfin to browse listings, there’s a handy mortgage payment calculator on each listing page.
It provides default amounts based on typical down payments, mortgage rates, property taxes, and homeowner insurance.
Let’s say that interest rate is 6.77% today, which is pretty reasonable given current market rates.
If you click on the little pencil icon, you can change it to anything you want. You can also select a different loan type while you’re at it.
Once you do, it tends to save your inputs, so when you look at other properties, the rate you selected earlier should apply to other homes.
This can give you a faster, perhaps more realistic estimate of the monthly payment, instead of a rate that might turn out to be too good to be true.
So you could put in 7.75%, or maybe 7.50%. That way if rates go up, or you qualify for a higher rate thanks to some loan-level price adjustments, you won’t be caught off guard.
You’re basically playing it more conservatively in case pricing worsens, which is the prudent approach.
While you’re at it, you may want to review the other inputs to ensure they are reflective of your proposed loan.
Are you really going to put 20% down on the home purchase, or just 3% to 5%?
Overestimating these costs instead of potentially underestimating them can help you avoid being house poor. Or worse, missing out on your dream home entirely due to inaccurate estimates.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
When purchasing a home, one of the most critical steps in the process is obtaining a home appraisal. Whether you’re a first-time buyer or a seasoned homeowner, understanding the significance of a home appraisal can help ensure that you make an informed decision.
Appraisals provide an objective assessment of a property’s value, which plays a pivotal role in securing a mortgage, protecting your investment, and ensuring fairness in the transaction. Here’s why home appraisals are so important in the buying process.
Determining Fair Market Value
A home appraisal provides a clear understanding of a property’s fair market value. This is crucial not only for buyers, but also for sellers and lenders. The appraiser assesses the home based on various factors, such as the condition of the property, its location, comparable sales in the area, and other market trends. This evaluation helps ensure that the price you’re paying for the home aligns with its actual market worth, protecting you from overpaying.
Securing a Mortgage
Most lenders require a home appraisal before approving a mortgage. The reason is simple: lenders want to ensure that the property is worth the amount they are lending. If the home appraises for less than the agreed purchase price, the lender may refuse to finance the full amount, leaving the buyer with options such as renegotiating the price or paying the difference out of pocket. A fair appraisal, therefore, is essential to secure the loan and avoid financial surprises down the road.
Protecting Your Investment
For most people, buying a home is one of the largest financial investments they’ll make in their lifetime. A home appraisal ensures that you’re making a sound investment. It gives you a realistic picture of what the home is worth based on its condition, location, and recent sales in the area. This helps you avoid buying an overpriced property and ensures that your investment will hold its value in the future.
Negotiating Power
In cases where the appraisal comes in lower than the agreed purchase price, buyers can use this information to negotiate with the seller. Since the home is appraised for less than the asking price, the seller may agree to lower the price to match the appraisal. If the seller refuses, buyers can walk away from the deal or consider other financing options, but the appraisal gives them leverage in negotiations.
Protecting the Lender
While homebuyers benefit directly from appraisals, lenders are also protected. The appraisal acts as a safeguard for lenders by confirming that the property has sufficient value to cover the mortgage amount in the event of foreclosure. If the borrower defaults on the loan, the lender needs assurance that the home can be sold to recoup the outstanding loan balance.
Ensuring Transparency and Objectivity
The appraisal process introduces an element of objectivity to the home-buying process. The appraiser is an independent, licensed professional whose job is to provide an unbiased opinion of the home’s value. This impartiality ensures that neither the buyer nor the seller has an undue advantage, and the final decision is based on the property’s true value, not emotions or market pressure.
Home appraisals are a critical part of the home-buying process, ensuring that both buyers and lenders are protected from overpaying for a property. By providing an objective assessment of a property’s fair market value, appraisals help buyers secure financing, protect their investment, and ensure transparency throughout the transaction. Whether you’re purchasing your first home or adding another property to your portfolio, understanding the importance of appraisals can help you make more informed decisions and avoid costly mistakes.
Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
Looking for your dream home?
Contact us today to talk to a Realtor in your area
As a Midwestern hub with a long, rich history, there is so much that Detroit, MI, is known for. From automotive history, to legendary music, to popular sports, this resurging city has so much to offer all who come across it. Whether you’re looking for an apartment in Detroit, MI, planning to rent a house in the city, or buying a home in the area, this list of 16 unique things to do in Detroit is hand-picked by local experts to help you immerse yourself in the spirit of the Motor City.
1. Wander the beautiful Belle Isle Park
Audio-D Tours, a free mobile tour company highlighting unique things to do in Detroit, didn’t hesitate to recommend Belle Isle Park. Just a few minutes from downtown, the park includes numerous free attractions, rental kayaks, the Dossin Great Lakes Museum, peaceful picnic spots and new playscapes. Get more information about each of these spots in the park with their free audio tours.
2. Drift into Motor City heritage
Detroit is known as the origin of the American automotive industry. It is home to the 120-year-old Ford Piquette Avenue Plant, the birthplace of the iconic Model T, the car that put the world on wheels. Now a museum and U.S. National Historic Landmark, it offers visitors a glimpse into the origins of the Motor City through film, exhibits, original artifacts, and a collection of rare antique vehicles.
3. Savor fresh fish from the Great Lakes
Head over to the Marina District to experience the flavors of fresh fish indigenous to the Great Lakes. Dining at Sindbad’s Restaurant & Marina is a must on this list of unique things to do in Detroit. Their local meals feature fresh Perch and Walleye that celebrate the aquatic bounty and showcase the best of the Great Lakes.
4. Stop for a scoop at Sedo’s
Located in the picturesque and historic Villages, Sedo’s Ice Cream on Agnes St. offers a selection of sweet treats to indulge in. Try one of their 16 rotating ice cream flavors, or treat yourself to a sundae, milkshake, or malt to enjoy while you explore the neighborhoods of Detroit.
5. Jump into the sports culture
“If you’re getting to know Detroit, the first thing to know is that we are diehard sports fans, whether our team is good or not,” shares Matt, leader of local band Collision Six. “Make sure to check out a Tigers, Lions, Wings, or Pistons game. We think the best times to go are when there is live music at the home games or during big events like opening night.”
6. Experience the perfect fusion of Detroit energy
A visit to The Lager House in the Corktown neighborhood is a must. It’s the perfect spot to experience Detroit’s diverse music scene live while soaking in the area’s blend of old-school grit and new energy. Their hidden speakeasy downstairs offers a cozy, retro contrast to their lively outdoor courtyard, and the offerings of local craft beer and Detroit-style eats give you a true taste of what life in Detroit is like.
7. Take a walk on a self-guided statue tour
“One of the best things about Detroit is that we value public art,” shares Peter, co-owner of local Van Dyke Books. Here is his recommendation for a short walking tour of Detroit’s most iconic statues:
Start at Campus Martius to find two statues that contrast the new Detroit with the ancient Detroit: the 152-year-old Michigan Soldiers’ and Sailors’ Monument and the newer “Waiting” statue by modern artist KAWS.
Head south from Woodard Ave to Jefferson Ave to find “The Fist,” a giant black-bronze fist suspended by chains in the center median. This statue honors Joe Louis, legendary Detroit boxer and one of the first Black national heroes.
Continue south to land in Hart Plaza. This riverside plaza is dotted with numerous works of art, including a life-sized statue of the city’s founder, the International Monument to the Underground Railroad, a 63-foot-tall monument to the Detroit labor movement called “Transcending”, and many more.
8. Find connection and support in the community
BasBlue is an inclusive, safe, and diverse community of women and non-binary individuals. If you’re new to the area and searching for an authentic, empowering, and loving group to connect with, look no further. Equipped with a library and café filled with locally sourced coffee, craft cocktails, a curated wine list, and delightful culinary options, it’s the perfect place to soak up all that Detroit has to offer.
9. Explore the Motor City on two wheels
Wheelhouse Detroit, right on the Detroit Riverwalk, is a bicycle shop that offers retail, service, rentals, and even tours of the city. Whether you’re looking for your dream bike to take adventuring through your new neighborhood or you want to join your friends on an in-depth pedal with the inside scoop, this locally owned and women-led team is eager to help you with all of your cycling needs.
10. Grab a slice from local Belle Isle Pizza
Named after the beloved Belle Isle Park in the heat of the Detroit River, Belle Isle Pizza sits nestled between historic Indian Village and West Village. This pizzeria is a local staple, bringing people together with handcrafted pizzas made from fresh, local ingredients. It embodies the grit, warmth, and pride that define what it means to live in Detroit.
11. Get an i-cone-ic experience at MJ’s North End Ice Cream Parlor
If you’re looking for a great locally-owned spot to hang out and learn about more unique things to do in Detroit, make sure to visit MJ’s Ice Cream Parlor in the North End neighborhood. This area is immersed in music history, once home to some of Motown’s icons such as Aretha Franklin, Smokey Robinson, and Stevie Wonder to name a few. Be sure to ask the owners for the inside scoop on the little-known facts of the neighborhood.
12. Celebrate the culture and diversity of the city with Distinctively Detroit Tours
Step off the beaten path and dive into the vibrant culture and history of Motown like never before with Distinctively Detroit Tours. From the first and only hip-hop history tour led by a celebrity recording artist, to an insider’s look at the city’s thriving music industry, the hidden gems of Detroit’s art and history, or mouthwatering culinary destinations, there are so many great tour options for all ages and interests.
13. Cozy up with tea and treasures
If you’re looking for a comfy spot to shop, gather, or work, keep an eye out for CommodiTeas Tea Shop in the Fisher Building. Local owner, Katrina, really knows her tea, and will help you find the perfect cup to cozy up with—hot or iced. The lush surroundings make it easy to relax in, and the shop includes beautiful items perfect for a housewarming party gift – for a friend or for yourself.
14. Sip and pedal on a moving party
Experience Detroit in a whole new way with Detroit Roll House, the first and only pedal pub with a live DJ. This unique thing to do in Detroit takes you through the streets of Motor City with an expert blend of music, fun, and scenic views while you power the ride as the DJ pumps the vibes. Whether you’re celebrating or just exploring with friends, this is the ultimate way to enjoy the city’s striking views and profound culture.
15. Experience Detroit’s revitalized energy
“Detroit is experiencing an exciting resurgence, showcasing vibrant new and existing businesses, restaurants, and attractions,” shares Craig, owner of local Craig’s Coffee, a standout roaster known for their sustainably sourced beans and small-batch roasted coffee. “Must-see spots include the expanded Motown Museum and the beautifully restored Michigan Central Station in Corktown.” Stop by Criag’s for the perfect warm-up after a day filled with exploring.
16. A few highlights for a shorter trip
Not staying in Detroit long? The Albert Kahn Legacy Foundation, which honors the life and legacy of architect Albert Kahn, shares a few extra unique things to do in Detroit for a well-rounded introduction to the city:
Fisher Building: Designed by Albert Kahn, this is a must-see for Detroit’s history buffs, featuring stunning Art Deco architecture and intricate interior details.
Detroit Institute of Arts:A cultural landmark with a world-class collection, including Diego Rivera’s famous murals.
Eastern Market: Visit on a Saturday for a taste of Detroit, where the largest historic public market brims with local vendors, fresh produce, and artisan goods.
Detroit RiverWalk: An ideal spot for jogging or strolling, offering beautiful river views, public art, and nearby parks.
Detroit Jazz Festival: The annual festival showcases the city’s musical heritage, drawing top jazz musicians from around the globe and filling the city with soul-stirring sound.
Unique things to do in Detroit, MI: The Motor City is moving on up
Detroit stands as a testament to resilience and transformation with a rich history that shapes its ever-evolving identity. Whether you’ve lived in the city for a while and are looking for more connection, or you’re trying to decide if Detroit is a good place to live before making a big move, these unique things to do in Detroit chosen by local experts showcase everything the city is known for.