Tuesday, June 26, 2018

5 Roadblocks on the Path to Your New Home

When you are purchasing a home, you want to have the smoothest transaction possible. There are five roadblocks that can prevent that smooth transaction from happening. 

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Whenever you purchase a home, there are five major things that can happen that can stop our sales. Today I am going to share those five roadblocks, so you can know what to avoid if you are buying a new home.

1. Damage. Damages can occur when the seller moves out, or from a contractor who has caused additional damage. To remedy this, you must always do a walk-through inspection. This can help you avoid discovering that things are missing, such as light bulbs, fixtures, or—even worse—appliances and cabinetry.

2. Due diligence.  During the home inspection, ensure that all the repairs requested by the inspection are completed. Also, make sure that your insurance is active the day that you close—accidents happen, and you do not want to accidentally cause a fire. If your insurance is not set up at closing, it could cause a delay.

3. Survey. Survey the land to find out where proper property lines are. This is something a lot of agents push to the side, but do not let them. Surveys are very important.

I personally purchased a duplex as an investment property and noticed something was strange about the lines. I had a survey completed and found that the neighbor had encroached 15 feet into the property that I was purchasing. I ended up giving him notice and putting up a fence. Now I have an entire parking spot for my tenant.

I completed a survey of a property that I had purchased, only to discover that the neighbor had encroached nearly 15 feet into my new property.

4. Major purchases. Refrain from big dollar purchases. Buying a car will affect your credit score, which may affect your mortgage rate and eventually affect your ability to even purchase the home.

5. Loan approval. If a person unknowingly does something to impact their credit, they may be unable to secure a loan. Leaving a job or making an expensive purchase are just two of the ways someone may accidentally damage their score

A loan company verifies your employment the day before closing. If you quit or lose your job the day before, you may end up unqualified for the loan because of lack of income.

Having the money in the location it needs to be is also crucial. If you are receiving the money as a gift, it needs to be wired to your account before closing to verify that you have the sufficient funds. Very few people will let you have the keys to your new place if they are waiting for money to be approved for one reason or another—make sure that the funds are ready.

If you have any questions about this or are interested in buying or selling, please feel free to contact me. I look forward to speaking to you soon.

Thursday, June 21, 2018

5 Questions That Will Determine Which Home Upgrades to Make

To know which upgrades you should make to your home, there are five questions you need to ask yourself.

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Here are the five questions you need to ask yourself to know which home upgrades will give you the biggest bang for your buck: 1. Does it make sense? Does it make sense for you to invest money into your property? If your home is in an area you don’t want to live in anymore and you’re ready to move, it probably doesn’t make sense to invest any money into it other than what can be put toward getting it ready for sale. 2. Does it make sense economically? Do you have the cash on-hand to put into your property in order for the renovation to be a successful investment? Sometimes in this situation, homeowners take out a home equity line of credit at a typically low interest rate. If you do something like this, the goal is to pay off debt immediately. I don’t love second mortgages, so my advice is to not use one unless you don’t have the cash on-hand, you know you’ll be in the house long-term, and you know you’ll see a return on your investment.

Asking these questions can help you build wealth through real estate.

3. Will you see a return on your investment (ROI)? To know if a renovation makes sense, you need to understand the market you’re in and the type of property you have. Do you really need marble floors installed into your $300,000 home or would hardwood or laminate floors make more sense? 4. Will your upgrade(s) be sellable? Sometimes we want to make an amazing upgrade, but it just doesn’t make sense to do so. I’ve seen people make adjustments to their home where their space was so unique that it made it difficult for anyone else to move into that space 5. Will your upgrade(s) make sense long-term? Anytime you put money into a property, it has to make sense in terms of the general market. You might want to take out three bedrooms and two bathrooms on your main level and turn them into one master bedroom and one master bathroom, but your neighborhood might not be conducive to those upgrades. That neighborhood, for instance, might be in a price point more appropriate for first-time homebuyers or those looking for a move-up property. You don’t want to make upgrades to your home that will hurt its value. One of the goals I want to help you with is to build wealth through real estate, and asking these kinds of questions can accomplish this goal. If you have any questions about this or any other real estate topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

Tuesday, June 5, 2018

How Affordability Is Affected by Increased Prices

What do our current increased prices mean to you? If you are an owner, it means that you have more money without even doing anything.

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Today I want to talk to you about how the increase in pricing, interest rates, and affordability can affect you and your home. Many people have been asking about what the market is going to do and where are we going. Here are the facts. The market is growing. The prices are rising. And, interest rates are going up. These factors create an issue where someone that could previously afford a home for $1500/mo. is now looking at paying $1,700 to $1,800 per month. This is not just because the rates went up but also because the value of the home increased. People are running into the issue of how it affects them and their homes. Compared to last year, we are finding a couple of differences. One is that we have even fewer homes on the market, but we have more sales occurring in the market. This creates a supply and demand issue which pushes up prices.

Increased prices affect your home personally because your home is now growing in equity.

This affects your home personally because your home is now growing in equity. With that new equity, you can take it and sell your home, and buy a larger home. Also, if you are planning on upsizing, you have the amount you have paid off for your current mortgage which you can transfer to a new property. Or, you can use that new equity to get a home equity line of credit for updates. If you have the cash, I do suggest you use it. However, using this will allow you to make your home a better place for you and your family. Finally, you can keep the equity where it is and continue to own this same property. You can either continue to live there yourself, or you could also turn it into an investment property. If you can make it an investment property with a higher lease than your mortgage payment, this will create an amazing source of income. It also creates a part of a portfolio for future growth. So, just consider that when there are changes in the market and issues with affordability, it unfortunately creates a situation where some people who want to buy are pushed out of the market. They instead continue to rent. While the real estate market does go up and down over time, rents will continue to increase. Hopefully you can consider this as an opportunity to get in our growing market. In the event that it does slow, you wouldn't have an issue like you would with renting because you will already be locked in with a great rate. If you have any further questions or would like to speak to me about buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you soon.