Tag: real estate

Neighborhood Red Flags to Be Aware of When Buying a Home

When a home buying budget is tight, there’s always the temptation to buy a fantastic, big house in a less costly area. However, buying a home in an undesirable neighborhood might be a huge mistake, especially when it’s time to resell in the future. Occasionally, there are some qualities you can’t discover about a neighborhood until after you’ve moved in. But there are ways to scout out red flags ahead of time.

When you see homes that are rundown throughout the community, it could be a sign that the residents have given up and the neighborhood is in rapid decline. A street that is full of homes with broken/cracked windows, overgrown, unkempt yards, home vacancies, gutters filled with leaves and vines, sagging rooflines, pooling water in yards, homes with obvious chipping paint & broken fences should sound off an alarm. It’s a clue that the neighbors don’t take pride in their homes and with no upkeep, they can end up decreasing the property values for the entire street.

Are there too many houses that are for sale in the neighborhood? When driving through notice if there is an abundance of “for sale” or “for rent” signs. It everyone is trying to sell, it’s probably not a coincidence. There are plenty of reasons this could be going on, but it’s important to have your Realtor dig in and find out the details. Also, check with the local police department and find out about the crime – a real reason people would be making a mass exodus from the neighborhood.

How is the local school system? Are there fewer students enrolling? A sure sign of a healthy community is a blossoming school. Another reason to have a good, knowledgable Realtor with you – he/she should know all these details or at least where you can find the information about the schools.

Most streets have some cracks and bumps but are you noticing big potholes in the neighborhood? This could mean that this is an area of neglect in the city. Is the local park a mess? If you can see that there is no organization to take care of the streets, the parks and any public spaces in the neighborhood it is a sure sign that the property values are headed down.

Drive through the neighborhood on a beautiful day. Do you see people out and about? Kids playing ball in yards? Bike riding? Anyone sitting on front porches? A big red flag if you don’t see people. This could signal that residents stay inside and don’t allow their children to play outdoors because they don’t feel safe outside. Again, check with the local police department.

The Bottom Line: Attention to the surroundings of any neighborhood is important. Often, the focus is on the home and how perfect it is for you, but a huge part of the way you live is where you live. You’re purchasing a home AND the neighborhood. A good Realtor will remind you that the overall area the home is in can/will impact the resale value of the home. Buying a home in an area that is decreasing will create problems in the future.

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The Essential Guide to Your Search For an Accessible Home

Key, Castle, Heart, Keychain, Close To, Door Key, Close

If you’re about to embark on the search for an accessible home, you may be worried about your chances of finding a property that suits your needs. It’s normal to feel nervous, but with a strategic approach, you’ll have no trouble putting down an offer on a home you can easily modify! These simple steps will provide you with a road map to buying an accessible home.


Considerations for First-Time Buyers

If you’re buying your first home, you’ll have quite a few important tasks on your to-do list! For instance, you’ll need to look up your credit score and start creating a house-hunting budget. Additionally, you’ll have to start looking up local real estate agents, preparing necessary paperwork for your lender, and identifying organizations that may be able to help you cover your down payments or the cost of home modifications. In the early stages of house hunting, you may want to create a checklist outlining these items so you don’t overlook anything important!


Financing Your Home Purchase

As a homebuyer with a disability, you might be eligible for financial assistance through the Housing Choice Voucher program or Habitat for Humanity, but while you may qualify for certain forms of assistance, there’s a good chance that you will still have to take out a mortgage to buy a home. If this is the case, Money Under 30 notes that FHA loans can be a great option.

First-time homebuyers with short credit histories and who can only afford small down payments can qualify for FHA loans. However, it’s always important to research all of your loan options when applying for a mortgage.


Choose a Great Realtor


In your search for an accessible home, working with a reliable realtor will be essential. You’ll undoubtedly have some unique concerns and questions, and your realtor can help you find the perfect home without compromising on your needs. With the help of a group like Title First Agency, you can connect with a realtor who will look out for your best interests during the house-hunting process and support you all the way through closing day.


Touring Properties


Once you’ve connected with a realtor, you’ll be ready to start visiting a few properties in person! This is where it’s important to be selective. While older, historic homes may be beautiful, they will also be harder to modify. Therefore, it’s crucial to check out homes that were built recently. Chances are, you’ll also prefer to tour single-story homes – while you could add a stair lift or elevator to a two-story home, those projects could prove to be quite expensive.


Find Reputable Movers


As soon as you close on a home that you love, it will be time to start packing and searching for a moving company. It’s best to start saving for moving costs well before closing day so that you’re not caught off guard! To find a trustworthy moving service, compare online reviews for a few different companies so you can make an informed choice.


Modifications


You may need to make certain modifications before and after you move in. Depending on your specific needs, 101Mobility recommends replacing entrance stairs with ramps, installing a safety frame around your toilet, and adding handrails along the walls where necessary. In order to move forward with these projects, you’ll need to bring a few contractors on board. Popular Mechanics states that you should make sure any contractor you hire is insured and officially licensed to work in your area.

When you’re on the lookout for an accessible home, it can be difficult to peruse local listings and identify properties that will fit your personal requirements. That’s why it’s important to work with a great realtor, seek out available assistance, and plan for modifications. If you’re proactive about this process, you’ll be surprised by how quickly you find a comfortable, accessible home.


Photo via Pixabay

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Buyer’s Market Vs. Seller’s Market

What is a Buyer’s Market?

A buyer’s market occurs when the availability of homes (supply) exceeds the number of buyers looking for a home (demand). Anyone looking for their next home to buy, a buyer’s market is the ideal time to make the move. The ability to but a fabulous home for a lower cost is greater.

Homes may remain longer on the market if trying to sell during a buyer’s market. There are so many homes available thus securing a buyer is tougher and lowering the price might need to happen.

What is a Seller’s Market?

A seller’s market occurs when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.

In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices.

Due to the shortage of housing, these conditions often lead to bidding wars. During bidding wars, buyers will make competing offers and drive up the price, typically above what the seller initially asked for.

Determining if it’s a Seller’s Market or a Buyer’s Market

You can use supply to determine if the market favors buyers or sellers. As a general rule, a neutral market will have 6 months of housing supply. This means that if there’s less than 6 months worth of inventory, it’s a seller’s market, and if there’s more than 6 months’ worth of inventory, it’s a buyers market. When determining if it’s a buyer’s or seller’s market, you must look at housing supply on a local level, usually by neighborhood or zip code, as it’s not uncommon for areas in the same city to be in different markets. 

How well a home is bought or sold is dependent upon the market the home is currently in. Just because the news says the nation is in one market doesn’t mean it is the same everywhere. Meet with a Realtor for the best information. Any strategy used to buy or sell a home is also dependent on the market it is in and the Realtor. Choose an agent wisely, stick to the strategies and homes can be bought and sold in any market.

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Pre-Inspection

A pre-inspection gives the seller of a home a heads-up if there are any problems that a potential buyer will probably want to have repaired. Once you know what is wrong, you can have the issues fixed before you even put your home on the market. Too often, a home inspection is where the deal falls apart because buyers will make their offer contingent on approval of the results. Hidden defects or problems can turn any negotiating into the buyer’s favor. Even if you offer to fix a problem that arises on the buyer’s inspection report, skittish buyers may be hesitant to close the deal. Knowing before you list your home gives you the opportunity to fix the problem or price accordingly.

Most Realtors will tell you to make major repairs before you list your home. The buyer’s inspection will uncover significant defects, and you will be expected to repair them if you want to get the full price for your home. The problem is that you will only have until closing to get the repairs done after the buyer’s inspection.

The limited time frame leaves sellers scrambling to get everything fixed in time. With a pre-listing inspection, you set your own schedule for repairs. There is no rush to list the property until you have made sure the home is in good shape.

You’ll be putting your home on the market with the confidence you’ve corrected any large problems.

Sellers can justify listing price through a pre-inspection. You can feel confident in the price you are asking with the results available to buyers. In a hot market, some buyers will make an offer on a home without the home inspection contingency.

According to Forbes: …”pre-inspection is a goodwill gesture. It demonstrates a willingness to go beyond what’s expected, and that sets you apart from other sellers. You’re sending a signal that your house is an ‘open book,’ and that you’re being upfront about the property. All of this can give potential buyers peace of mind and confidence.”

Once you have the pre-inspection report in your hand you can’t ignore any issues that came up. You’ll be required to disclose that information as a known defect or fix it before anyone makes an offer.  There may be some issues that you aren’t able to take on and it will be reflected in the price. You and your Realtor will be able to establish the right sale price including what you can or can not fix before putting your house on the market.

The bottom line: As a seller, getting a home inspection before listing your home gives you more time to make the repairs that you can and to shop around and control the costs for the work.  Be sure to hire an experienced Realtor that will know how to interpret inspection reports, and to let you know which issues are vital to address before listing your home.

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Pricing Your Home Right The First Time

No matter what anyone tells you, the very first thing that buyers look at in their home search is the price. Does not matter how perfect your home is, if the price isn’t in the budget, they won’t even consider it. In order to sell your home for the most money possible, you must price it right. So, when it is time to sell your home, find the best Realtor that will price your home properly – in fact, this might be the most important thing a skilled Realtor can do. Too many Realtors will tell sellers what they want to hear instead of what they need to hear to sell their home.

Realtors see this every day. Homeowners have a price in their mind that they want even though it doesn’t align with the market. Pricing a home is a skill that takes training, understanding of the market and the comparable sales (comps). When a home is listed too high, buyers pass on even looking at it. It will end up being on the market for a long period of time and the price will eventually be forced to be lowered to be competitive. But, by that time buyers assume there must be something wrong with the home and it will gain a bad reputation and continue to be bypassed. Even the buyers who do look at it will lowball the new price and the home will end up being sold for less than what it would have had you priced it correctly to being with. Homes sell for the most money when they are on the market for less than 30 days in almost all markets.

You don’t want your home priced lower than it is worth, but you want it low enough to create excitement among buyers and possibly even multiple offers coming in. This is an excellent option if you want to sell a home fast.

A good Realtor will make sure that the seller’s home shows up in online searches. To make sure this happens, a proper price is paramount. If the neighborhood comps are lower, the house may not show up if it’s even slightly higher! For instance, if the comps top out at $300,000, and the buyer wants a 4 bedroom home in that neighborhood under $300,000, the house listed at $325,000 won’t even show up in the search.

Pricing a home to sell properly is a skill that the best Realtors have. It is the most critical piece to selling your home. The right price is 75% of the marketing for any home on the market. It’s what will attract buyers. So, when you are interviewing Realtors to sell your home, ask the question “what’s my home worth” and know they can’t tell you what it will sell for but expect comparable sales, pending sales, and active sales. Finally, ask to see a track record of their previous listings – the original price and the final sale number. And, don’t be afraid to ask for a personal guarantee from them.

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Use Social Media to Sell Your Home

Whether you’re working with an agent or selling your home on your own, how the listing is marketed is crucial. Especially now, during the COVID pandemic. MLS will get you the most exposure for your home because it reaches other websites and most people online. Ask friends and family why they know, and look online for the busy Realtors using all the social media platforms and then interview her to see how she will take advantage of all the opportunities to get your home in front of people.  It is now more important than ever that the person hired to sell any home utilizes the internet and social media for promotion. Most American adults are online. More than 1 billion people in the entire world log in to Facebook on any given day. The potential to reach a huge number of people is exceptional.

Photographs:  The very best Realtor should help stage and prepare the home for professional pictures. All rooms should be clear of any clutter. The pictures MLS displays are usually grainy and poor quality. Homebuyers more times than not, begin the search for their new home online. Take advantage of this. Stand in the doorway to rooms and snap the photo shooting into the room.  There are never too many photos!

Facebook:  Now those beautiful photos need to be posted and announced, showcased and marketed. A good Realtor might even host open houses via Facebook LIVE and interact with people that are watching. Another option is to make a targeted ad and pinpoint people by location, interests, behaviors, age and more.

Instagram:  The worlds largest photo sharing platform is the perfect place to showcase the photos taken of the home.  A good Realtor should know how to use hashtags because that is how Instagram helps users find relevant content. Spread the pictures throughout the day.

The Bottom Line: Everyone wants a Realtor that can be trusted and will do everything she can to get the most money for a home in the least amount of time. The Realtor is the homeowner’s advocate. The marketing of the home should be exceptional.  Beyond using the MLS (Multiple Listing Service) there should be professional pictures to use on websites and every social media platform available.

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Short Sale

If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale—even if you don’t think you can or haven’t been able to sell your home.

What is a short sale?

A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all or a portion of your mortgage balance with the money you sell it. Depending on your situation, you may be required to make a financial contribution to receive a short sale.

  • You are ineligible to refinance or modify your mortgage
  • You are facing a long-term hardship
  • You are behind on your mortgage payments
  • You owe more on your home than it’s worth
  • You have not been able to sell your home at a price that covers what you still owe on your mortgage
  • You can no longer afford your home and are ready or need to leave

When is a short sale a benefit?

  • Eliminate or reduce your mortgage debt
  • Avoid the negative impact of a foreclosure
  • Start repairing your credit sooner than if you went through a foreclosure
  • May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)

What is the process for a short sale?

If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with a real estate agent to market and sell your home. However, your mortgage company will also be working with you and your real estate agent every step of the way to:

  • set the sale price based on the market value at the time
  • collect financial information and negotiate with other lien holders
  • review acceptable offers,
  • agree to the terms of the sale once a buyer is in place

A short sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. If you are unable to sell your home, you may be able to transfer the ownership of your property to the owner of your mortgage.

The Bottom Line: Your mortgage company wants to help you avoid foreclosure and, in most cases, will be willing to work with you. The biggest mistake you can make is to wait any longer to take action. Contact your mortgage company today to determine if you are eligible for a Short Sale.

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Buying a Foreclosed Home

Buying a foreclosed home has its benefits; most importantly because it’s often cheaper than buying a home the conventional way. In a foreclosure, you’re buying from the previous owner’s mortgage lender because the owner has defaulted on their loan. The reason a foreclosure is more affordable is that while a homeowner wants to make as much profit as possible, the bank mainly wants to recoup the remainder of the mortgage and any holding costs. Buyers need to be careful: Purchasing a home that is in foreclosure can lead to big problems.

Banks are in the business of lending money, not maintaining homes. That means when a bank owns a home, it will not make any repairs to the property, regardless of any damage.

Still, as the buyer, get an inspection, even though you shouldn’t expect to receive any money from the bank to make repairs or any repairs to be made for you. In some cases, you can use the inspection report as a way to negotiate a lower sales price, but only if there aren’t multiple offers willing to pay more for the property.

Make sure that you get the home inspection from a licensed inspector before closing on the property. One way to do this is to make the offer to purchase contingent on the home inspection. The home inspector will reveal to you items in need of repair, such as a leaky roof as well as items that are not up to safety code, like a water heater that’s not strapped up. Then, you can decide whether or not you are willing to purchase the property based on the new knowledge that the inspection report showed you.

Not every bank-owned property needs repairs, but many do. So, take into account the cost of all the necessary repairs when buying a foreclosure. Some may be major, such as roof repair, while some are likely to be purely aesthetic like painting the walls or pulling out carpet.

Can you do the work yourself? How much time will it take you and what is the cost of materials? If you’ve never done repairs on a home before, get a professional estimate, preferably a free one from a local contractor or a home improvement store.

The Bottom Line: Buying a foreclosed home can turn out to be the best deal, but you should be able to handle the risk. Make sure you get your home inspected and figure out how much other homes in the area are going. That way you don’t end up paying more than you should.

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10 Easy Ways to Find More Space in Your Home

Many believe that to lead a more organized and inspired life, the clutter around you must be cleared. It’s simple: if your home is organized, your mindset will be too.


A clean and balanced home is actually a launching pad for many other goals and resolutions. So if you’re already starting to fail at some of your other 2019 resolutions, try this home resolution instead: find more space in your
home by clearing out the clutter! Follow these ten tips and I promise you it
will inspire you to complete your other resolutions and lead you to a more
organized and happier year!


Pantries
Create room by removing the large and awkward food packaging. Purchase clear, air-tight containers, take the box of your food item, and cut out the product name, nutritional facts and expiration date. Tape them to the inside of your clear container and then seal the food.

Pantries Shelves
Arrange the food on your shelves to help keep your resolutions. Make “first choice” shelves for the food that you want to stay on that diet. Make shelves that are for the kids snacks or foods that you’re just not going to have on a regular basis anymore… You get the idea –some shelves are just for the once a week treat. Some are for every day.


Pantry Storage
If you like to buy in bulk, put the bulk of your paper goods in another location, perhaps a closet or the garage, and place only what you need in your pantry— restock as needed.


In the Kitchen
When storing pots, pans and other durable items, stack them on their sides
like files. This simple step not only creates more room, it also allows you to see exactly what you need. Caddies or sorters from a shelf or container store are great tools for vertical organizing. Have all this in mind in your next kitchen remodeling as well.


Dressers
Place clothing in drawers vertically (not the traditional horizontal piles) because it not only maximizes space, it allows you to find items more quickly. You can purchase wooden planks or plastic planks to use as dividers. This way you can see all of your clothes at once when you open the drawer.


Closets
If your shoes don’t have a place they end up in a pile taking up valuable
space. Place shoes and accessories in clear plastic containers so you can see
everything and tape their photo to the inside of their container with photo facing out. This little step gives you triple duty: more space, you can find it easily and better still you can put it away in the exact same spot for next time that hot date rolls around…

Organize by Color
Organize your closet and drawers dark to light. It can be great way to find out that you really have way too many black blouses… and you can keep your resolution of being a kinder gentler you by donating the extras!


Kids’ Rooms
Purchase bed raisers for under-the-bed storage. You can store everything from shoes, laundry basket, books and any bulky items that might otherwise clutter their room. 


A Baby’s Closet
Is there room to add another bar? Take advantage of the fact that baby clothing is smaller and if you can, add an additional bar to hang the clothing to maximize space. You can purchase pre-made closet organizers that you can customize to make the most out of baby’s closet.


The best trick to more space in your home, less is more! So if you find you have extra things laying around, throw a reverse housewarming party! You’ll be starting a new party trend. Set aside your unwanted items and instead of having your friends bring a housewarming gift, they are to pick one of your items and take it home with them. This is a great way to reunite with friends, find your unwanted things a good home, and de-clutter all at the same time! 


Originally posted on porch.com

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Making a Small Home Appear Larger

Are you putting your smaller home on the market to sell and want it to feel and look bigger inside so that it will appeal to more buyers? Or, did you just buy a house that was empty but now that you have moved your belongings in the home is tighter than you thought? There are plenty of ways to make each room look and feel bigger than it is. You don’t need to renovate or knock down walls to make a small room feel bigger—just incorporate these smart design moves to visually expand your space.

Declutter the room relentlessly. Really important and the first thing you can do to make any room look or feel larger. Get rid of things you don’t use or need. Unnecessary clutter can make a room feel small and cramped and make it harder to navigate around.

Use very light colors or very dark colors to give a room depth. Medium shades can make a room appear smaller, but when you use bright whites and deep dark paint colors, you create contrast, which creates depth and the illusion of a larger space. Lighter colors reflect light, making a room feel brighter and larger, while darker colors absorb light and make a room feel smaller and closed in.

Scale it down. Furniture in smaller rooms is all about proportions. To create a sense of roominess, always leave a little air in between the sides of your furniture and the walls. Avoid heavy, big pieces that take up a lot of usable area in the room. A sleek sofa or chair will give you as much sitting room as an overstuffed couch but will take up much less of your room. 

Rearrange furniture. By simply rearranging the furniture in a room and creating a different layout, you might end up with more space, open the room up, and make it easier to navigate. If there’s a piece of furniture in your room that doesn’t get much use, consider removing it to free up some space.

Reflections. Mirrors can make any room look bigger. Consider having at least one huge mirror in the room. Mirrors reflect light, therefore, make the room brighter. The reflection creates an optical illusion of a continuous space which is perfect for a small room.

Let the light in. If you have large windows in your room, don’t cover them up with dark, heavy curtains or blinds. Open them up and let all that natural light in. Hang your curtains higher and wider to make the windows look larger. It really draws the eyes upwards, making the room appear larger and taller. Or you could even forego window treatments altogether for a really open, fresh look.

Find the perfect rug. An area rug that is too small for a room can make the room feel much smaller. The best idea is to find a rug large enough that you can place the front feet of the furniture on it, such as couches or chairs. A nicely sized area rug allows the eyes to go from end to end of the entire room, which makes the room feel much larger.

Lighting and artwork. Fun and interesting light fixtures will draw your attention upward, creating an illusion of height. Hang paintings or artwork to add a focal point. One large painting works better than a group of several small pieces of art.

The Bottom Line: There really is an ‘art’ to living in a small home without feeling cluttered and/or cramped. If you are selling your home, ask your Realtor for advice. Don’t take offense if they think you should get “rid” of things, simply place them in storage. When you are pressed for room, every little decorating tip can help.

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