Want to buy a luxury home but the down payment is daunting? Here are 10 things that will help.

It used to be that buying a home meant coming up with at least 20% of the purchase price, a sizable amount. But purchasing a luxury or high-end home was even more cash cumbersome, with some lenders requiring a 30% down payment. If you were purchasing your dream home for $1,000,000, $750,000, or even $500,000, the down payment can easily add up to an intimidating sum.

Likewise, even an average home purchase can require a sizable down payment in high-cost areas (hello, California!), often preventing first time home buyers from getting their first keys. Studies show that renters in the nation’s 20 largest metro areas say that coming up with a down payment is the #1 obstacle to buying a home. And in areas like San Jose and Los Angeles with super high-cost real estate, a 20% down payment adds up to 180% of median income for one year! 

Thankfully, there are better options for home buyers these days when it comes to down payments. In fact, last year, the average down payment on a single-family home purchase was only 14.8%. And according to Freddie Mac, about 40% of all homebuyers put down less than 10% on the overall value of their homes. 

Of course, you’ll want to contact a great mortgage broker to discover all of your loan options, but here are 10 great ways luxury home buyers can make that down payment more affordable:

1. A jumbo loan may offer less than 20% down.

When purchasing a luxury home, you’ll likely want to explore a jumbo mortgage loan. A jumbo loan is just a non-conventional loan for a purchase price/loan amount higher than Fannie Mae and Freddie Mac’s loan limits. Currently, those limits sit at $636,150 in high-price areas (much of California), or $424,100 for the other 93% of the U.S. While a jumbo loan will give you the funds necessary to close on your dream home, it does come with additional scrutiny and requirements from the lender. 

Some jumbo loans traditionally even required 30% down payment, but the good news is that these days, certain jumbo loans will allow you to put only 5 or 10% of the purchase price down, making a luxury home purchase imminently more realistic.

2. Ask the seller to finance a piece of the mortgage.

While this practice has become far less prevalent, having the seller offer some form of secondary-financing is a great option for luxury home buyers who don’t want to (or can’t) part with a sizable down payment. Quite simply, the seller will back up your mortgage financing with a small second personal loan, maybe for 5, 10 or even 20% of the purchase price, closing the gap on what you need to put down. 

Why would a seller do this? Luxury homes are often harder to sell, with fewer buyers to choose from and bigger price drops in a soft market. So seller-financing is a great win-win for the seller, too, if it means the difference between finalizing a sale at the price you want.

3. Borrow from retirement funds.

One legitimate option for luxury home buyers to come up with the necessary down payment is to borrow or withdraw from retirement funds. Of course, you'll want to consult your financial planner and tax adviser to work out a strategy that makes sense. But some 401(k) plans allowed you to take out 50% of their vested balance up to $50,000 as a tax-free loan, although the loan has to be repaid after a specific period (usually five years). 

You can also withdraw funds from a traditional IRA or up to $10,000 without getting hit the 10% penalty, although you might have to pay taxes on the amount.

Again, check with your financial planner well ahead of time and also ask your mortgage broker about doing this within loan guidelines, but many luxury home buyers find a little down payment help from their retirement accounts.

4. Borrow from family.

Today’s home buyers are having such a challenging time coming up with the necessary down payment that about 25% of them are turning to family and friends for gifted funds to help them buy. There’s no reason why you can’t formulate a similar arrangement to come up with the funds for a luxury home downpayment.

5. Consider an FHA loan.

FHA’s loan limits are based on a percentage of the national conforming loan limit. So in high-cost areas (like most of California!), the FHA loans may go all the way up to $636,150. AN FHA loan may also be attractive because it usually allows a much lower down payment, sometimes as low as 3.5% for qualified borrowers. While you may have to Private Mortgage Insurance and there are other restrictions with FHA loans, it's worth looking into for a higher-end house purchase.

6. Work with a mortgage broker who specializes in luxury real estate. 

You’ll have a lot of options when searching the right mortgage broker or lender to handle your purchase loan, but you may be well served interviewing a lender that commonly works with luxury real estate. Their experience, product and industry knowledge, and relationships with banks and lenders could prove helpful! 

7. Keep a great credit score.

One of the best ways to ensure that you get the best rates, terms, and loan options available – including a minimal down payment – is to keep a great credit score. Typically, lenders consider home buyers with super-prime credit scores (760 and above, but an 800+ score doesn't hurt!) as low-risk borrowers, so they'll offer the best possible pricing and conditions. Consult your mortgage broker, but you'll also want to check your credit well before your home purchase and make sure your score is tip-top.

8. Check with your bank.

You’ll have plenty of options when it comes to applying for a mortgage loan, but it may be worth your time to check with the bank that has your accounts, too. If you have significant funds, investments, or retirement accounts with one bank branch, they may have some leeway in offering great low down-payment options for your luxury home purchase.

9. Take out a second loan.

In years past, it was common for home buyers to take out an 80% first loan and then back that up with a 20% second loan, eliminating the need for any down payment at all – and also avoiding Private Mortgage Insurance. While those subordinate loans aren't as popular these days, you may still be able to find second position financing to ease the burden of coming up with a big down payment out of pocket. 

10. Find funds from other sources.

When necessity requires, homebuyers often become resourceful and find funds from other sources to soften the down payment blow. That may include tapping into an equity line or cash-out refinance from another property, personal loan, or business loan. 

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Contact us if you have more questions about down payments or buying your dream home! 

The state of the luxury real estate market: 2017-2018 and beyond

You've probably seen articles, news features, and social media posts about our red-hot real estate market lately. But rarely do they talk about the luxury market specifically, leaving buyers and sellers of high-end, million dollar, and luxury homes in the dark. So we thought we'd present you the most complete, accurate, and up-to-date data on the luxury real estate market. 

Sales of luxury homes have skyrocketed in 2017, with Q2 sales up 7.5 percent from just one year ago, with the average luxury home selling for $1.79 million across the U.S.

This also marks the first time since 2014 or before (that’s the year they started tracking this specific data) that luxury home sale appreciation has outperformed the appreciation for all home sales.

Basically, the top 5 percent of most expensive homes are selling more robustly than the bottom 95 percent!

According to industry data, which defines a luxury home as one in the top 5 percent of most expensive homes in each city, the luxury home market has experienced a transformative shift, from a lagging and stagnant sector of the housing market to the forefront of activity.

But it seems to be the low-end of the luxury market (so to speak) that’s thriving the most. Sales of homes with a price tag of $1 million or more are up 22.2 percent from last year, while sales of homes priced at or above $5 million are up 19.6 percent.

Despite these price increases, sales volume is down. In fact, the number of listings priced $1 million or higher have dropped 9.4 percent compared to one year ago, and those in the $5 million and up price range have fallen about the same percentage.

That indicates an inventory shortage in the luxury market (mirroring the overall real estate trend), reversing a glut of double-digit inventory growth for five consecutive quarters prior.

Experts point to several factors that have contributed to this state of luxury home sales.

For one, there is a historical precedent that when the stock market is booming, the luxury home market does exceedingly well. But the biggest reason for the luxury market’s renewed vigor may be a change in the mindset of sellers. Analysts point to the theory that owners of million dollar-and-up luxury homes were flat out setting listing prices that the market wouldn’t bear.

Looking to cash in on the greater market’s steady climb, luxury listings were priced higher than buyers were willing to spend. Collectively, that resulted in fewer luxury home sales, greater Days on Market, and general price depreciation. But almost en masse with the start of 2017, sellers have gotten more realistic, reducing prices to levels more attractive to luxury home buyers.

Once luxury listings began to close, that created a supply shortage that further invigorated the market.

The result? The floodgates are open on high-end, million dollar plus, and luxury listings like we haven’t seen since perhaps before the real estate crash and recession.

While luxury listings may be selling like hot cakes, it's still a market dictated by buyers – and what they're willing to pay. Consider that only 1 in 50 luxury homes sold above list price in the Q2 of 2017 (compared to at least 1 in 4 homes that sold for above asking price in the bottom 95 percent).

How about the luxury market in California?

During the January to March first quarter of 2017, 10,562 homes sold for $1 million or more in California. That represents an 11.7 percent year over year increase and also the highest number on record for a first quarter.

During that same time span, 2,523 homes sold for $2 million or more, which is an 11.8 percent increase from the same period last year and also a record.

Irvine, California led the entire nation for year-to-year price appreciation in the luxury real estate market, with an astounding 37.4 percent increase over this time last year, to an average sale price of $3.5 million.

Long Beach, California and nearby Reno, Nevada saw price increases of over 25 percent for luxury homes, too.

The five zip codes with the highest number of million dollar or greater home sales last quarter were 92620 (Irvine); 92130 (San Diego, including Carmel Valley); 95125 (San Jose); 92037 (La Jolla, San Diego); and 92651 (Laguna Beach).

About 78 percent of the $1 million and up home sales were existing (not new) homes; only about 11 percent were condominiums, and 31 percent of all $1 million and up sales were cash purchases.

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Do you have questions about buying or selling a luxury home or would like more information? Contact us any time.

$1,000,000,000; All about the world's billionaires

Recently, Forbes magazine released their list of the richest billionaires in the world. Since there’s never been a trillionaire yet (although billionaire Mark Cuban predicts there will be one soon), this list also encompasses the wealthiest people on the globe. 

Here are some interesting facts, figures, and anecdotes about billionaires:

First off, we want to clear up how much a billion dollars is. A billion dollars is a thousand million, or one followed by nine zeros (1,000,000,000).

However, that wasn’t always the case. Interestingly, the old English definition of a billion was actually a million million (not a thousand million). So their version of a billion was 1,000,000,000,000!

Forbes released a record 1,826 names on their most recent Billionaires List.

Together, they have an aggregate net worth of $7.05 trillion.

Remarkably, that aggregate net worth is up from $6.4 trillion last year – a huge leap in wealth.

 The newest list of the world’s billionaires includes 290 newcomers.

A record 46 members are under the age of 40.

That’s contrary to the usual demographic of billionaires, with an average age of 60.4 years for the top 100 richest people in the world.

But thanks to this influx of new, younger members to the list, the average age has dropped by five years in the last year alone.

The youngest billionaire in the world is 24-year old Evan Spiegel, who is the co-founder of Snapchat and is worth an astounding $19 billion.

Many people assumed that Facebook founder Mark Zuckerberg was the youngest billionaire. However, he never held that title even before Spiegel, as his college roommate, and Facebook co-contributor, Dustin Moskovitz, made more than a billion dollars but is eight days younger than Zuckerberg.

Women are also represented in the billionaire club like never before. In fact, we’ve seen a 50% increase in the number of female billionaires over the last 20 years.

Still, women only represent 12 out of the 100 top billionaires on the Forbes list.

Elizabeth Holmes, at only 31 years old, made the list as the youngest self-made billionaire woman.

One woman that is guaranteed to make the billionaire’s list is actress Julia Louis-Dreyfus (Elaine from Seinfeld). Dreyfus’ father is a billionaire, and she will automatically become one of the wealthiest people in American once she inherits his fortune.

Another interesting statistic is that 88% of billionaires are married, compared to only 49% for the U.S. average.

Sure enough, billionaires seem to be family men and women, with an average of 4 children among the world’s richest billionaires.

So are billionaires all graduates of Yale, Harvard, and MIT? Not at all, as 25% of all billionaires are college dropouts!

The United States is represented by 515 billionaires on the Forbes list.

While the U.S. led the world in people with ten-figure net worths as recently as last year, China became the top billionaire nation in the world this year.

In fact, China added 242 new billionaires in one year alone, bringing the total to 596.

Inheritance and family wealth doesn’t seem to play a huge role in creating billionaires, as only 230 inherited all of their wealth to make the list. (Although many inherited some funds and worked to increase their net worth exponentially.)

In fact, 1,191 members of the Forbes billionaire list self-made their fortunes.

A professor at Stanford University gets credit as being a self-made billionaire…sort of. In fact, he amassed all of his wealth by investing in the ideas and inventions of his genius students.

The top countries for billionaires including China, the United States, Russia, Germany, and Brazil.

Moscow has more billionaires than any other city in the world, with New York City and London next.

But 740 Park Avenue in Manhattan is home to the highest number of billionaires of any one address in the world.

The first billionaire in the world was John D Rockefeller, who was worth an estimated $1.4 billion when he died in 1937. In today’s dollars, that’s almost $70 billion!

Henry Ford wasn’t far behind, becoming a billionaire in 1920. Ford’s fortune would be worth an estimated $194 billion today, making him the 7th richest person in the history of the world!

J. K. Rowling, the author of the Harry Potter series of books, became the first person in history to amass her billion-dollar fortune by writing. At one point, Rowling was actually wealthier than the Queen of England! But when she started giving away most of her money to charity, she dropped her off the Forbes list as is now "merely" worth a few hundred million dollars.

Philanthropy and giving away vast sums of money characterize many billionaires. In fact, almost one hundred billionaires have signed “The Giving Pledge,” an agreement to voluntarily give at least half of their wealth to charitable causes within their lifetime.

Likewise, former billionaire Chuck Feeney (co-founder of Duty Free Shoppers Group) has given away 99% his $6.3 billion fortune anonymously, helping underprivileged kids go to college. He’s now not only fallen from the billionaire’s list, but has a net worth of “only” $2 million.

Not all billionaires are so generous, even with their own families. Notoriously frugal billionaire J. Paul Getty even refused to pay a $17 million ransom when his 16-year-old grandson was kidnapped by Italian gangsters. Only when the boy’s ear showed up in the mail three months later did Getty negotiate, agreeing to pay $3 million, but only if his son paid back $800,000 of that with 4% interest!

One Kuwait billionaire owns a portfolio of valuable URLs and domain names worth an estimated $3 billion, such as party.com, research.com, and jackass.com, but he refuses to sell or do anything with them.

Perhaps the wealthiest person in modern history was Pablo Escobar, a Colombian drug lord that made so much money in the cocaine trade that it’s hard to even quantify (or count, as he certainly never kept it all in banks).

Reportedly, Escobar lost about 10% of his profits every year – about $2.1 billion wasted - due to rats chewing up his hidden stores of cash, moisture decomposing it, or just burying it for safe keeping but then losing it.

He once burned $2 million in crisp new bills just to keep his family warm when they were on the run.

In his prime earning days, Escobar spent $2,500 a month just on rubber bands used bundle all of his endless stacks of cash!

The Lake: Your 2017 Lake Tahoe Real Estate Report

How is the real estate market in Lake Tahoe? That question defies a simple answer probably more than any area of the country, thanks to many contributing factors such as South Shore or North Shore, California or Nevada, condo or single family home, lakeshore or non-lakeshore, etc.

Luckily, we have plenty of data about the various micro-markets in Lake Tahoe, from which we can extrapolate an accurate picture of home sales in one of the nicest places on earth.  

What stands out? Which homes are selling fastest? Should you buy a condo or a home? What’s the real value to buying lakefront? Is the luxury market softening in and around Lake Tahoe? In what areas have prices dropped so we’re seeing great investment opportunities?

You’ll find all of the answers here, but you can contact us if you’d like a summary or our interpretation.

This data is based on the most recent findings of Sotheby’s International real estate report and encapsulates 2016 through Q3, as well as comparisons to the same conditions one year ago.

If you have any questions about buying or selling in Lake Tahoe – or would like to see more data on other micro-markets like Reno, Incline Village, Tahoe Keys, etc., please contact us anytime.

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Why luxury real estate is booming in Sacramento!

As Sacramento real estate prices remain as hot as the summer temperatures, a certain segment of the market stands out more than any other: luxury homes. In fact, luxury real estate is booming in Sacramento, Placer, and El Dorado counties, with skyrocketing sales volume and price appreciation numbers that would be considered solid for a year, yet alone a couple of months.

Far from the overinflated high-end prices during the real estate bubble a decade ago, strong financials and market causation serve as a strong foundation for luxury homes in the region. 

We’ll share plenty of data that show how the luxury home market is booming, but first, let’s examine some of the underlying reasons for the strong showing: 

The Sacramento area is exhibiting favorable financials, with steady job growth and a noticeable boost of energy from downtown revitalization and the new arena. Interest rates still near historical lows, with buyer demand remaining high, exerting upward pressure on prices. However, there are far more homebuyers than sellers – and that’s even more pronounced in the luxury market, where it’s estimated there are four buyers to every one home for sale! 

But there are two more interesting factors that are driving the top of the price range in the area. Bay Area residents are jumping into the Sacramento, Placer, and El Dorado markets like never before, scooping up luxury homes at a high rate. 

Sacramento also has more move-up buyers, as steady equity gains over the last five years have allowed more people to sell their homes and springboard to a more expensive or luxury homes.

Here are 25 more data points that show how luxury real estate is booming in Sacramento:

1. While the definition of a luxury home may waver based on the area of the country we’re looking at and the home prices in that area, a luxury home in the Sacramento region (Sacramento, El Dorado, and Placer County) is typically classified as $900,000 or more. 

2. If we examine all luxury homes sold in the second quarter (Q2) of 2016, the average sale price was a generous $1.219 million.

3. Trendgraphix Inc. tracked the 177 luxury homes that sold in the greater Sacramento area during Q2 of 2016. 

4. They found that 177 luxury home sales was an increase of 5% from the same Q2 of 2015, and up a whopping 74% from Q1 of 2016.

5. In the same four-county Sacramento region, 101 luxury homes sold in from January to March of this year (Q1), which represents a 65 percent increase in volume from Q1 of 2015. 

6. During Q1 of 2016 there were 52 single-family luxury home sales that closed this year, compared to only 32 luxury transactions in Q1 of 2015.

7. 34 single family homes sold for between $1 million and $2,499,999 in Q1 of 2016, which was a significantly 80% increase in sales volume compared to Q1 of 2015 when only 19 sold.

8. In the same period this year there were 12 luxury homes that sold for $2.5 million to $4,999,999, close to double the number from the 7 sold in Q1 of 2015.

9. Luxury homes are hitting the market like never before. The current average list price of luxury homes in the Sacramento region during Q1 was a sizable $1,507,000. 

10. Closed sales for luxury homes in that same period averaged $1,212,000, which is well above the $900,000 entry point we set to be considered a luxury home.

11. But that price range dominates the luxury market, with 87% of all luxury homes sales in Q1 sold for $900,000 to $1.5 million. 

12. The uptick in luxury home sales actually started during Q4 of 2015, with a huge spike in high-end real estate transactions at a time of year when home sales are typically very slow.

13. If we set Sacramento County aside for a moment and just look at El Dorado and Placer Counties, what does the luxury home market look like? 

14. El Dorado County saw 344 escrows closed in June, which was a 10.6% increase from June of 2015. The median sale price in El Dorado was $425,000 in June, which was a healthy 11.3% increase from the previous year.

15. In Placer County, 798 real estate sales closed in June, which was almost identical to the number in June 2015, though the median price went up 5.9% to $423,000.

16. Sacramento County reported 2,090 closed escrows in June, a modest 3.1% increase from June of 2015. But home prices saw a big boost, jumping 10.7% year over year to a median price of $310,000.

17. Breaking down the market by zip code, here are the areas that registered a median price increase in the past year of:

More than 25%:

95650

95838

95822

+15% to +25%:

95663

95677

95746

95662

95673

95821

95824

95742

18. In many ways, the data on home sales in the luxury market mirrors trends in home prices in among all homes in Sacramento. For example, current median resale prices in Sacramento County hit an average of $310,000 in June. That’s a change of +$5,000 from only a month earlier in May and a jump of +$30,000 from June of 2015. 

19. Sales volume rose 3% during that same period to 2,090 single-family resale homes closing, which was the highest volume in eight years.

20. The $310,000 benchmark the highest level in almost nine years, since August of 2007 when prices hit $314,000.

21. (For reference, the highest point for Sacramento home prices was $374,000 in August of 2005.)

22. Like we mentioned, rising home prices in the Bay Area are starting to significantly influence luxury home sales in the Sacramento region. With a median sale price of $643,200 as of March of 2016, an inexplicable 5.5% jump from only one month earlier, affordability is beyond reach for many people. And that door is completely closed for a good portion of people in San Francisco where the median sale price in March was $1.13 million, up 5.7 percent from a year earlier.

23. With home prices like that, it makes perfect sense for some Bay Area residents to start buying in Sacramento, whether as an investment, in semi-retirement, or to make the reverse commute. Data shows that the high home prices in the Bay does create “spillover” into the luxury real estate market in Sacramento, Placer, and El Dorado.

24. Not surprisingly, the high-end home sale numbers from North Lake Tahoe/Truckee often represent the top range of home prices in El Dorado and Placer County. 

25. In fact, single-family luxury homes sold at a 62% higher volume in Q1 2016 than a year earlier. Home prices typically go over a million dollars in that region, and the most expensive home sold in the whole region was a $7.18 million six-bedroom home with more than 6,000 square feet!

The Pros and Cons of 7 Common Kitchen Countertops

When you walk into someone’s kitchen what’s the first thing you notice? It’s probably not their cabinets, flooring, or even the quality of their appliances, but the countertops that jump out at you. In fact, the right countertops can make – or break – the aesthetic of a kitchen, and there are subtle differences in look, durability, installation, upkeep, and yes, price, for each of the many options you have available when planning your countertop.

In this blog, we’ll cover the pros, cons, and cost of the seven most common countertop materials, and look for part two where we cover nontraditional, modern, and luxury countertop materials.

1. Granite

Each slab of granite is uniquely “mottled,” adding a natural personality of colors and patterns to your kitchen counters.

Pros:

Granite is incredibly durable, resistant to heat, cuts, and scratches. It also won’t stain from liquids or items spilled on it as long as its sealed periodically, and you can cut with the sharpest knife right on granite without harming it.

Cons:

Like we mentioned, granite can stain if it’s not regularly sealed, and the edges can nick or crack over time or if not installed correctly. Since it’s so heavy, DIY granite countertops might not be a good idea, and it should only sit on heavyweight supportive cabinets. Since each piece is unique, it also can be impossible to find a perfectly matching replacement slab down the road.

Cost: $50 to $100 per square foot installed

2. Solid Surfacing

If you’re wondering what solid surfacing is, you’re not alone, as most people know it by one of its brand names, Corian, though all solid surfacing is made from acrylic and polyester composites.

Pros:

Solid surfacing may look like solid stone but it’s nonporous, which means you’ll never need to seal it and no special cleaning or maintenance is required. Since it’s an engineered material, you can choose from almost endless color and pattern options, and installation is seamless with no grout lines or cracks.

Cons:

Hot items like cooking pots or pans can burn solid surfacing, and sharp knives will damage it. The good news is that those imperfections can be sanded out for simple repairs.

Cost: $35 to $100 per square foot, installed

3. Quartz

Also called engineered quartz or engineered stone, modern quartz is one of the hottest new countertop materials, a mix of quartz chips, mineral and resin that’s tinted in aesthetically stunning color variations.

While it may look like a natural stone, quartz is engineered, which means it’s available in many different colors and patterns, but still is incredibly durable, as hot pots, serrated knives, abrasive pads, and most stains won’t affect quartz.

Cons: Since it’s manufactured, quartz tends to look uniform (unlike granite or natural stone), and can get pretty pricey, though it’s worth it.

Cost: $40 to $100 per square foot, installed

4. Marble

Marble is one of the most high-end countertops you can find, and traditionally used in many luxury homes, though it does come at a premium.

Pros:

Marble looks and feels glamorous, almost glowing with luminescence in the right light with unique veining. It’s generally durable and resistant to heat, and bakers and pastry chefs love the fact that it always stays cool.

Cons:

Marble is prone to nicks and scratches, though some see that as patina that adds character. Still, those imperfections can be polished out. Marble also needs to be resealed regularly, as it’s relatively porous so susceptible to stains. .

Cost: $40 to $100 per square foot, installed

5. Tile

This was the most popular economical countertop material from the 1960s through the 1990s, and still today, many people opt for tile countertops.

Pros:

Ceramic and porcelain tiles come in many colors, surfaces, and styles, from small and shiny rounded modern glass-like tiles to large and flat natural Italian stone tiles.  Tiles are one of the most inexpensive countertops options, and easy to add as a “modular” design, allowing homeowners to mix and match. Most tiles are also durable, resistant to scratching, staining and heat. If they are damaged, it’s easy to replace one tile.

Cons: Tiles are usually labor intensive to install, and some people don’t care to have a grid of grout lines on their kitchen counter, which can hold dirt, stains, bacteria, and other substances, as well as presenting an uneven cutting surface.

Cost: $10 to $80 per square foot, installed

6. Laminate

Laminate has been a kitchen counter stalwart for many decades, and sometimes is perceived as cheap, though today’s laminate countertops are equally modern, diverse, and practical.

Pros:

Sometimes called Formica after the brand name, laminate counters are made of paper blended with resins and fused to particleboard, and therefore one of your least expensive countertop options. These days, they also come in a wide spectrum of colors, faux patterns, and styles, and can be laser measured and cut to fit any counter surface seamlessly. Laminate materials are far more stain and heat resistant than their predecessors. It’s also lightweight, and because of the combination of these options (and especially the low cost), laminate is a favorite in rental properties.

Cons:

Laminate countertops are still easily damaged by sharp knives or cuts, and abrasives like steel wool can also do damage. Laminate is also difficult to repair without replacing a whole section (and leaving a seam) or the whole counter top. Over time, layers can peel if left wet, and you also can’t use laminate with undermount sinks.

Cost: $10 to $40 per square foot, installed

7. Soapstone

While not nearly common as granite, soapstone offers similar natural beauty and some characteristics in common but with a softer surface.

Pros:

It resists heat well, and also repels stains, chemicals and bacteria, making it a durable countertop surface for high-use kitchens (they often use soapstone in chemical laboratories.) Soapstone also ages well, growing richer in color and texture.

Cons:

Soapstone does ding, scratch and nick fairly easily, but those can be sanded out with super fine paper and then recoated with mineral oil for simple repairs. While it does resist some stains, it has been known to absorb others, so spills should be cleaned quickly, and it should be finished with oil periodically.

Cost: $70 to $100 per square foot, installed