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Home-Buying Power is Back!

Volatility in the economy and housing market is filled with mixed signals. Momentum has shifted over the last six months. Last spring we were helping buyers understand escalation clauses as multiple offers and rising home prices fueled the Bloomington housing market. Today, we’re seeing home values easing and inventory rising. That’s encouraging news for homebuyers.


The latest interest rate hike has some homebuyers fretting. Despite recent increases, 30-year mortgage rates are still below their historical average of nearly 8%.1  At the same time, rents have been inching upward steadily for years. If you’re renting in Bloomington, you should consider buying a home in today’s more favorable climate for buyers.

1 Source:

Sterling Real Estate suggests are a variety of ways that homebuyers can navigate today’s market.

  • Improve your credit score: Borrowers with good credit and strong finances often qualify for mortgage rates that are below the industry average. Do this by:
    • Paying down credit card debt
    • Pay all recurring debts, including utilities and car payments, on time to maintain your score
    • Refrain from making large purchases, e.g., cars, boats
  • Shop mortgage rates: Ask your Realtor for trusted lender referrals

  • Consider an adjustable / variable rate loan: This may be an ideal solution, especially if you don’t plan on staying in the same home for more than 5 years
    • The difference between a fixed rate and an adjustable rate mortgage is that the interest for fixed-rate mortgages doesn’t change throughout the terms of your loan. With an adjustable rate mortgage, the interest rate may go up or down.2
  • Buy down a percentage point:
    • As part of the negotiating process, ask the seller for credit in lieu of closing costs, or a seller credit to buy down a percentage point of your mortgage loan rate.
  • Get Smart
    • Meet with a lender to find out how much home you can afford, and get pre-approved before you start your home search.

2 Source: Consumer Financial Protection Board

In a buyer’s market, sellers must try harder to sell their homes because there is more supply than demand. There are many things you can do to make your home more attractive to buyers without spending much. Reach out if you’d like to discuss listing your home.


509 E. Hillside Drive #101  │  Bloomington, Indiana 47401  │  │  (812) 333-1966

Our TOP 10 Favorite Things To Do In (and around) BLOOMINGTON This SUMMER

We got together to share our favorite things to do and summer traditions. We hope you can escape the rat race this summer and enjoy all that Bloomington has to offer. You’ll find links to all our favorites below. For more ideas, check out VisitBloomington. Have a safe and happy summer!

Get wet!

Walk on the wild side!

Dine on the patio!

Carve Indiana limestone!

  • Celebrating its 26th year, the annual Indiana Limestone Symposium takes place in Ellettsville on the grounds of the Bybee Stone Company the Bybee, June 5th through June 25th, 2022. Don’t miss it! Carve or watch others carve our state’s most spectacular natural resource. And watch for other limestone carving events at Karst Farm Park

Do Brunch!

Visit Brown County!

  • Hard Truth Distillery, nestled on 325 acres of wooded hills in scenic Brown County, Indiana. Enjoy tours, tastings, mixology classes, on-site dining, live music, special events and festivals
  • Don’t miss TC Steele Park


Park on!

Entertainment all summer long Concerts, Movies, and Plays sponsored by Bloomington Parks & Rec

Celebrate Independence Day!

  • 9 a.m. Bloomington Community Band on the Courthouse Square
  • 10 a.m. Fourth of July Parade
  • For July celebrations across Monroe County, visit Fireworks Festivities!

End your summer with ART!

  • Enjoy the annual 4th Street Festival September 3-4,on 4th Street, between Grant Street and Indiana Avenue


Systematize maintenance for a healthy home

By Sally Baird

Like a regular health check-up, a home maintenance schedule is important for every house’s upkeep. Our homes are one of our most valuable assets. Maintaining a safe and healthy home is essential to protecting your home’s value and will help keep little problems from turning into bigger ones later.

Here in Southern Indiana, we deal with a lot of seasonal challenges—from frozen pipes and clogged gutters to flooding and mold—that need constant oversight.

Let technology be your friend

There is an abundance of digital tools and apps to make home maintenance tasks less onerous. Each can customize your schedule and send you reminders when it’s time to take action—whether you do the work yourself or hire it out.

  • Wired magazine calls BrightNest the “LifeHacker for your home.” It helps you customize task lists, set up alerts and much more, including DIY instructions for various home maintenance tasks:
  • The free HomeZada app is more than adequate for most homeowners’ needs. Easily track your maintenance calendar and manage small repairs and large home projects:
  • The Centriq app offers a lot of unique features that streamline home maintenance for homeowners:

You may prefer a paper calendar, an Excel spreadsheet or a Google doc; no matter what system you use to create a maintenance schedule, it will help you stay on top of home maintenance and avoid the costly repairs that might occur as a result neglect.

Do you have a favorite home maintenance organizer you’d like to share?

The ins and outs of escalation clauses

Home buyers are struggling in today’s extremely competitive housing market that is experiencing a historically low supply of homes on the market. To make their offers more appealing to sellers, buyers are getting creative—making all-cash offers, submitting offers above asking price, or forgoing contingencies. They are also using escalation clauses in multiple offer situations.

What is an escalation clause?

An escalation clause is a valuable home-buyer’s tool. It stipulates that you will automatically increase your offer on a property by a certain amount. If a competing offer is received, the clause lets you increase your offer up to a predetermined limit. They can be extremely helpful, but there also are risks to consider.

The challenges

For buyers: The biggest downside of an escalation clause is that it forces you to lay your cards on the table right from the beginning. That could hurt your chances of negotiating a better deal. Another drawback is that top offers can exceed the home’s appraised value—you may not be able to get financing at the higher price. Waiving an inspection can be risky, but there are situations where it makes sense.

4.4 offers   A June 2021 Confidence Survey by the National Association of Realtors shows that sellers received an average of 4.4 offers per home sold

For sellers: You risk selling at a lower price by simply waiting for other offers or asking for a buyer’s best and final offer. Unfortunately, some sellers/agents use the escalation clause to drive up the price—even if they don’t receive an escalating offer.

The solution

At Sterling Real Estate, Inc., we capitalize on a variety of strategies to protect both our home-buying and -selling clients. In all cases, integrity is paramount. We also rely heavily on the relationships we’ve fostered over years with our colleagues. Before recommending an escalation clause, we gather as much information as we can about the property and the seller’s ideal terms. Maybe price isn’t as important as keeping possession after closing for a few days, or delaying a closing. We consider what number might sway a seller’s decision to take a chance on a buyer with a loan versus a cash buyer. If all other terms and contingencies are favorable to the seller, a buyer with a loan may have a chance competing with a cash offer and a strong escalation.

As Realtors® we hold ourselves to the highest standard as professional fiduciaries, guided by principles, responsibilities, and rules of conduct. Properly represented, you can expect to sell for more, buy for less, and avoid intensely consequential mistakes. We would be honored to accompany you on your first or next real estate journey.

The growing appeal of THE HOME OFFICE

Life and work in the COVID-19 era

The trend of working from home was already in motion even before the pandemic forced many organizations to impose work-from-home policies. This new reality got us thinking about our working arrangements.

Buyers increasingly list home office among their must-haves

For some people, working from home is a regular practice. But for many, it’s a new way of working — and presents new challenges. The year 2020 will be remembered as a watershed moment for telecommuters. But home offices aren’t just for those who work from home. Technology has made all of us more mobile and younger buyers, in particular, have more options than ever to work from  home.

Invest in the things that matter suggests you need a comfortable chair; a desk you can spread out at; and the technology that will help you do the best job possible. Storage is also a must for a well-designed home office. You’re going to be spending a lot of time in this space, so it’s important that it is as functional as possible.

Should sellers stage an extra bedroom as a home office?

Ten years ago, home offices were more of a luxury home feature than a necessity. But as more careers are compatible with telecommuting, things have changed. Here are a few office-staging ideas to consider:

  • Choose an appropriate location in your home that makes sense; buyers want a dedicated space with quick access to the front door.
  • Remove all the clutter and keep only the essentials: desk, chair, lamp, bookshelf, and potentially an area rug.
  • Choose practical design features, e.g., calming paint colors, stylish organizers, appropriate furniture.

Reach out if you’re in the market for a new place to call home or have questions about making your home office more appealing.


House hunting or selling? We’re adjusting to life in the coronavirus era

The coronavirus pandemic has changed life and work across the U.S. and beyond.  Since March, home has a new meaning; it’s our office; our children’s classrooms and playground; our gym; and restaurant. Sterling Real Estate is open for business but the safety of our associates and our clients is priority #1. To that end, we’ve established a few guidelines for home buyers and sellers:

For Buyers

  • We are happy to show you available properties in the greater Bloomington area. In addition to video tours on our website, we offer pre-recorded and real-time video walk-throughs.
  • If sellers permit showings, we will meet you at the property wearing our masks and practicing social distancing . We’ll open the door, provide booties and masks, and remain outside while you tour the house. In-person tours are limited to no more than two people at a time.

The silver lining for buyers

    • Historically low interest rates increase your buying power
    • Fewer people in the market means less competition when making offers
    • Sellers may be more flexible on pricing and timing

For Sellers

Springtime, traditionally, is the best time to sell a home. Despite the current environment, we are helping motivated sellers move forward. Because of COVID-19, we are adapting our services to the changing real estate environment.

  • Sterling Real Estate is happy to meet with you, following safety measures to discuss the listing process. We’ll prepare a Comparative Market Analysis to help you understand the current market dynamics.
  • We’ll do a walk-through of your home; take measurements; discuss the improvements you’ve made; and professionally photograph your home. Then we’ll be prepared to suggest a price range to market your home, as well as the cost associated with selling your home.
  • We’ll take advantage of the latest technology to show your home through 3D and virtual tours as well as live or prerecorded video walk-throughs. With your approval, we will monitor and limit all physical showings to no more than two people at a time, practicing social distancing with masks and booties.

As always, feel free to reach out if you have any questions at (812) 333-1966!

5 Small (and cheap) Fixes to Update Your Home’s Appeal

Even if you’re not thinking about selling, these tips make for a healthier, happier home

Here’s the dirt. Sometimes we have to be brutally honest with homeowners: please clean your house. We understand that life gets busy and chores can slip away from you. But seriously? Nobody wants to smell your precious pets or see a dirty kitty litter box. Channel your inner Marie Kondo and get rid of the clutter; vacuum, mop, dust, and scrub every surface in your home routinely. If you’re not up to it, hire a professional.

Enter your home through the front entrance. Most of us exit and enter our homes through the garage, rarely using the front door. Change it up. Pretend you’re a guest coming to your house. What do you see? A bird’s nest in the front porch light fixture? A grimy door handle? It doesn’t take much to trim borders, clear pathways and cutback overgrown bushes. Spruce up the entrance with a fresh welcome mat and new house numbers. Check out Pinterest or Etsy for inspiration.

Does your kitchen feel DATED? You don’t need to spend thousands of dollars to update your kitchen. Here a couple quick fixes:

  • Freshen up the hardware. Nothing says dated more than tired hardware. Simply changing out the cabinet pulls and knobs can bring them forward a couple of decades. Find something modern and go for it.
  • Tone down that honey oak. Changing the paint in your kitchen can help. Honey oak cabinets will look the best when paired with warm tones of creams. To lighten the oak, use liming wax (as shown in these before/after photos). Or, apply a small amount of Minwax® Express Color™ Wiping Stain & Finish directly onto the wood surface. For a deeper color and sheen, wait one hour, and then apply second coat. Wait overnight before subjecting the wood to normal use.

Good lighting changes everything. Whether indoors or out, good lighting can make all the difference. Lighting a space can change the feel of the room, can help set a mood, and even affect the way the paint colors appear. Start by replacing all those burned out bulbs. Then check out Amazon, Target and Lowe’s for budget-friendly ways to make your home shine.

Just fix it. Look around the house and make a list of all those minor repairs that are both annoying and can lead to serious second thoughts for buyers. That leaky faucet; the melted knob on your gas range; the loose light fixture; the rust stain the guest bath. These are easy fixes—and won’t cost anything but your time.

Okay Millennial: You CAN buy a home

Five real estate myths about millennials

We hear it all the time.  Myth #1: I can’t afford to buy a house in the Bloomington area. If you’re renting in Monroe county, you’re likely paying upwards of $1500 for a two-bedroom house or apartment.  If you bought a home in the county, you could be paying about half that amount.  Of course it depends on what you’re willing to pay and give up in terms of location, configuration and condition. But think what you could do with all the money you’d be saving!

Do the math – you can afford to buy a house.

Here’s the math: as of mid-January, the median home cost in Monroe County for a 2 bedroom is $196,400[i]; assuming a 30-year mortgage for $185,000 at 3.92%[ii], you’d pay about $1,089, which includes taxes and insurance.  On there are 295 homes on the market in Monroe County under $200,000.

Myth#2: I’ll never have enough for a down payment.  First-time home-buyers rarely put down 10% or more on their home purchase. Did you know you can put down as little as 3% for a conventional loan? There are many financing options available. You may qualify for one of these first-time home buyer loans and programs.

Do yourself a favor – talk to a lender and get the facts

Myth#3: The market’s too crazy right now. The market may be crazy, but interest rates are even crazier.  Consider that the 30-year fixed-rate mortgage averaged 3.73% for the week ending Dec. 19, 2019[iii]; a year ago at this time it averaged 4.55%, according to National Mortgage News.  The parents of the oldest millennials, say someone born July 8, 1981, would have had n interest rate of 20.50% – which would have increased monthly payments for our hypothetical home to $3,168.  Now that’s crazy.

Try this rent-vs-own calculator.  Interest rates are historically low now, but they WILL rise again. 

Myth #4: My student debt is too high; I’ll never qualify for a loan. Actually, research shows that higher education has a positive effect on homeownership. Student loans by themselves cannot prevent you from getting a mortgage. The effect of student loans on your debt-to-income (DTI) ratio is the key deciding factor. Your DTI ratio describes the percentage of your monthly income that goes toward debt. Learn more here.

See our recent blog, Navigating the Mortgage Maze, for more insights.

Myth #5: Buying a home is too scary; what if I buy a money pit? Despite all the horror you’ve seen on HGTV, in our experience, most houses aren’t money pits. Even if there are potential issues, like an old roof or a leaking pipe, there is plenty you can do to protect yourself. Before the sale, we’ll make sure you hire a good home inspector who can see signs of trouble. The inspector can also advise you about the potential costs to repair those issues.  That can provide leverage when you go back to the sellers and lower the price you’re willing to pay. Finally, as part of the purchase price negotiation, you can ask the seller to purchase a home warranty to protect your .

Talk to a Sterling Real Estate Millennial (or Boomer) about buying your first home!





Winter came early to Bloomington!

We put our heads together to come up with our list of:  8 season-changing reminders

  1. Heading out of town? If you hate surprises, don’t turn your heat off!  We also recommend that you leave cabinet doors below and above sinks open a bit so warmer air can circulate.  Let cold water drip from a faucet served by exposed pipes –even at a trickle –to prevent pipes from freezing.
  2. Your Gutters: We can’t stress this one enough – all year ‘round, but especially during the winter months.  Keeping your gutters clean will prevent icicles and ice dams from forming and finding their way underneath your shingles or leaking into your living space below.
  3. UNPLUG your hoses and cover your outdoor faucet: One of us actually warned neighbors recently, but forgot her own until it was almost too late. Outdoor pipes and faucets are vulnerable to freezing during winter months due to increased water pressure, resulting in expensive water damage and repair costs.
  4. If your crawl space is vented: Now would be a good time to close the vent if you haven’t already.
  5. Own a vacant property? Don’t forget to winterize it, too. Start by emptying all the water from your pipes   
  6. Drafty? Sometimes older doors and windows are to blame for losing precious heat. Draft guards for doors and window insulation kits are inexpensive but worthwhile. Check with your local hardware store.
  7. Change your filters: Have you had your furnace serviced? Now would be a good time for that – and you can change your filters at the same time if you haven’t done so already.
  8. Clean out your dryer vent: Clothes dryers cause 2,900 fires a year, with many fires happening in the fall and winter, according to the United States Fire Administration. Lint is a major culprit, so have your dryer vent inspected and cleaned annually by an HVAC specialist who specializes in ductwork or dryer vents.

Contact us if you need a handyman or contractor to help you winterize your home.

During this season of gratitude, we’re very thankful for all of you.

Trish, Heather, Sally, Kelly and Neville

It’s all about the light

By Trish Sterling

I love my office space. It’s everything I had hoped it would be – it’s professional and practical, bright and fresh.  So many clients, friends and associates have complimented me on the space that I thought I’d share a little background about the design.

Just like the TV design shows, I started with an inspiration: an industrial light fixture my dad gave me that hung in his shop. He was a commercial electrical contractor in our hometown of Phoenix, AZ. He’s been gone for 30 years, but I think of him as my muse.

We moved in to 509 E. Hillside Drive #101 five years ago.  After consulting with an interior designer, I felt confident enough to move ahead with what I’d envisioned.  I was on a tight budget and had to be creative.

The color scheme was easy – I chose variations of the green from the thistle in my logo (another nod to my dad and our Scottish heritage), and bright white. I have lived long enough to know that my personal aesthetic (a word I learned on “Project Runway”) is anchored in all things modern.  The industrial theme was carried throughout the space, including the exposed ceilings and grey metal garage lockers and cabinets we transformed into a kitchenette.

I chose carpet tiles, knowing that they were durable and easy to install maintain. I bought local when I could, and bought everything else for my office online: carpet, desks, conference table, chairs, light fixtures. I returned a lot of things, too. Oops.

We more than doubled the space in late 2018 in anticipation of the company’s expansion.  I knew I could easily continue the same look and feel in the adjacent space.  I worked with the contractor, Chad Casey, owner of Casey Construction Group.  We created a large opening to adjacent space and he tracked down glass sliding doors (barn doors) that would keep the space open and let the light in.

About the Art

I love and need to be surrounded by art.  I wanted the space to feel more like a gallery than a typical office. Most of the original art in our office was created by talented clients, family and friends or purchased from the Stone Belt Art Studio – including a large multi-media piece in our reception area.

Next time you’re in the neighborhood, stop in and say hi.