5 Benefits of Using A Real Estate Agent When Buying Or Selling A Home

March 10, 2020 by

5 Benefits of Using A Real Estate Agent When Buying Or Selling A HomeIt may come as a surprise for some people to learn that not everyone uses a real estate agent when buying or selling a home. Whenever someone is looking to move, it is critical to rely on the experience of a real estate agent. There are a few benefits that everyone should keep in mind.

Tips For Price Guidance

The price is one of the most challenging aspects of either buying or selling a home. A trained real estate agent spends his or her days looking at the prices of homes that are bought and sold in the local area. 

Therefore, real estate agents can help someone sell a home both quickly and at the right price. If homes are left on the market for too long, prospective buyers might think that something is wrong with the house. This may make the home harder to sell.

Networking In The Real Estate Industry

Next, hiring professional real estate agent is important for accessing the professional network. Real estate agents typically have access to appraisers and inspectors who will be able to do a quick, easy, and cost-effective evaluation of the home. This will help the homeowner determine whether or not any repairs are necessary to get the house ready to sell.

Appropriate Financing Options

A real estate agent can also guide a prospective buyer through the financing options. There are lots of options when it comes to purchasing a home. A real estate agent can help someone review his or her options, helping a client find the right financing option for them.

Exposure For A Home Sale

One of the major benefits of working with a real estate agent is access to something called the Multiple Listing Service. This is a service where the vast majority of real estate agents list homes that are for sale. This will help any house being sold gain more exposure. The more exposure, the more potential offers, helping a house sell for a higher price.

Handling The Paperwork

One of the most often overlooked benefits of working with a real estate agent is help with the paperwork. The paperwork required to buy or sell a home can be significant. A real estate agent knows how to get through this paperwork quickly, efficiently, and accurately.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

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Coping With Relationships During The Moving Process

March 6, 2020 by

Coping With Relationships During The Moving ProcessHeading to a new place can be an exciting time; however, this is going to have an impact on someone’s relationships with family members and friends. The idea of relocation can be stressful for these emotional attachments. This can cause some hesitation as individuals and families adjust to living in a new place.

These are a few tips that everyone should keep in mind.

Keep In Touch

Of course, one of the most important tips for coping with the move is to keep in touch. This doesn’t mean that these relationships need to die. Simply arrange ways to talk with each other.

This starts with phone calls, video chats, and emails. This is a great way to stay involved in the lives of close friends and family members. Once the move has settled, invite them out to take a look at the new place. It is exciting to move to a new city and this is an opportunity to share some hospitality with loved ones.

Memories Of Loved Ones Are Important

Be sure to take souvenirs, mementos, and reminders of the old home. Pictures are the easiest way to do this. Be sure to display these photos in conspicuous places in the new home. This will ensure that these relationships aren’t forgotten.

In addition to pictures, paperweights, trinkets, postcards, and other items make great mementos and can serve as decorations in the new home. Display these on a shelf or ledge where they can be seen. This will help someone adjust to living in a new place.

Explore The New City

It is important to move forward. In order for someone to truly be happy in a new place, they need to give this location a chance. Get out of the house and explore everything the new city has to offer. Check out the bars, shops, restaurants, community spaces, and people. This is extremely important. Try to make new friends and create a solid support structure in a new place.

While it is important to maintain old relationships with family members and friends, they will want you to be happy in your new home as well. Therefore, branch out and explore. This will make coping with the move easier. 

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

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5 Essential Questions Real Estate Investors Should Ask Before Making An Offer

March 4, 2020 by

5 Essential Questions Real Estate Investors Should Ask Before Making An OfferReal estate investing is not only a great way to diversify assets but can also be used to generate both income and capital appreciation. While this is a fantastic opportunity, it is also important to choose investment projects carefully. It is critical to ask the right questions before making an offer on an investment property.

Why Is The Building On The Market?

There is a reason why the property is on the market. It is important to know the answer to this question. Sometimes, the house is on the market purely because the owner is moving for job or family purposes.

On the other hand, there might be an issue with the integrity of the structure. Be sure to figure out the true nature of the building before making an offer.

What Are The Other Offers?

It is important to know the competition when purchasing an investment property. Those who are trying to get the best deal possible need to know what they are up against. Asking about whether a cash offer will sweeten the deal is a great way to garner some additional insights.

What Is The Recent Maintenance?

One of the most common hidden costs in the world of real estate comes in the form of deferred maintenance. If nothing has been done on the property recently, these maintenance costs are going to be passed on to the buyer, hurting any potential ROI. Be sure to ask about any recent repairs or replacements. It’s not unusual for someone to spend a third of the building’s value on repairs.

What Is The Seller Interested In?

Be straightforward and ask what is important to the seller. Some sellers want a quick close. Other sellers want to rent the property back. There are even some sellers who want to leave the furniture behind as well. Ask what the seller needs to offload the investment property.

How Long Has It Been On The Market?

Always check and see how long the building as been on the market. If the building has been on the market for a while, figure out why it hasn’t sold. On the other hand, if the building just landed on the market, there might be more room to negotiate.

If you are in the market for a real estate investment property, a trusted home mortgage professional can be one of your best assets. Be sure to make contact as soon as you are ready to start looking!

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How To Keep Records For Your Real Estate Business

March 3, 2020 by

How To Keep Records For Your Real Estate BusinessAnyone who is looking to build a successful real estate business needs to keep meticulous records. When buying and selling property, there are a lot of tax and legal responsibilities. While some people may not want to think about this issue, the IRS may audit a real estate business. In this case, it is critical to have documentation that demonstrates proof of income as well as any credits or deductions that might have been claimed.

Some of the most common deductions that are claimed in the real estate business include depreciation, mortgage interest, repairs, insurance premiums, administrative costs, and property taxes. In order to keep records for a real estate business, there are a few categories to consider.

Improvements That Have Been Made To Properties

There are two ways that someone can deduct the costs of improvements or repairs made to properties. First, someone can deduct the entire cost of the expense during the year that it was incurred. This means the cost of materials, labor, storage, and more. 

The other way that someone can claim this deduction is to depreciate its cost over a predetermined period of time. This time period is going to depend on the nature of the repair. In this case, the depreciation period would begin on the date the repair or improvement is made.

The Cost Of Cars, Mileage, And Parking

Another key category is mileage and parking. There are plenty of people who use a car to get from place to place. If this car is used for work purposes, it can be claimed as a deduction. In order to keep proper records of mileage and parking, it is important to keep either a digital or paper log for the purposes of each trip. 

Then, with the number of miles driven in hand, this can be multiplied by the suggested mileage rate provided by the IRS. The grand total can be deducted from someone’s gross taxable income that year. The alternative way to calculate this is to forgo the standard rate issued by the IRS and deduct the cost of gas, maintenance, and depreciation of the vehicle. Some people like to calculate the deduction both ways and use the larger total. Just be sure to have records to support this claim.

Remember that partenering with a trusted home mortgage professional can be a great asset for your clients and generate referral leads for your business.

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Home Improvements That May Improve Resale Value

February 14, 2020 by

Home Improvements That May Improve Resale ValueDid you know that some home improvements lower the resale value of a home and decrease the number of potential buyers? If you are going to repaint the exterior of your home bright, traffic-cone orange and try to sell it for a high price, think again! Maybe, if the artist Pablo Picasso once lived there that might work, but probably not under any other circumstances.

Some things are counter-intuitive. A swimming pool is an example. Swimming pools are great and highly desirable for many people. However, others do not necessarily think so and only see them as adding unnecessary expenses for maintenance and upkeep.

There are general guidelines to follow, which give you a better chance to increase the resale value of a home by making certain improvements. If possible, work with your REALTOR® who understands the local real estate market conditions before making decisions about investing in renovations to increase a home’s resale value.

Be aware that the industry averages show a percentage of recoupment of the investment and no renovations make back what they cost, in terms of increased resale value. This means you should only consider renovations that you like for other reasons as well as the potential financial impact on the home’s value. The only way to profit from renovations is to do some work yourself.

Renovations — Partial Recoupment In Resale Value

Here are the top ten things to consider with their average installation cost, average increased resale amount, and the average recoupment percentage as ranked by Remodeling in the 2020 Cost vs. Value Report:

1. Manufactured Stone Veneer (applied to the front of the home)

Installation Cost $9,357 — Increased Resale Amount $8,943 — Recoupment 96%

2. Garage Door Replacement

Installation Cost $3,695 — Increased Resale Amount $3,491 — Recoupment 94%

3. Fiber Cement Siding (applied to the exterior of the home)

Installation Cost $17,008 — Increased Resale Amount $13,195 — Recoupment 78%

4. Vinyl Siding (applied to the exterior of the home)

Installation Cost $14,359 — Increased Resale Amount $10,731 — Recoupment 75%

5. Vinyl Windows (double-pane)

Installation Cost $17,461 — Increased Resale Amount $12,761 — Recoupment 72%

6. Wooden Deck

Installation Cost $14,360 — Increased Resale Amount $10,355 — Recoupment 72%

7. Wood Windows (double-pane)

Installation Cost $21,495 — Increased Resale Amount $14,804 — Recoupment 69%

8. Steel Entry Door

Installation Cost $1,881 — Increased Resale Amount $1,294 — Recoupment 69%

9. Composite Deck

Installation Cost $19,856 — Increased Resale Amount $13,257 — Recoupment 67%

10. Asphalt-Shingled Roof

Installation Cost $24,700 — Increased Resale Amount $16,287 — Recoupment 66%

The runner-ups, with their recoupment percentages, are remodeling the bathroom (62%), metal roofing (61%), a kitchen remodel (59%), a bedroom addition (59%), and a bathroom addition (55%).

Summary

Notice that the top ten items that make the most positive impact on the resale price are all exterior projects and most of them are visible from the front of the home. The wise adage of “curb appeal sells” seems to be true when it comes to renovations that generally improve resale value.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

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Common Problems Faced By New Homeowners

February 13, 2020 by

Common Problems Faced By New HomeownersBuying a new home is a big step for individuals and families. This is a time for celebration as the new furniture gets moved in, everyone gets adjusted, and the honeymoon phase starts with the new home. On the other hand, buying a home also means that all of the responsibilities rest with the owners.

Here are a few common problems that new homeowners face.

Taking Care Of The Outside

Many homeowners are quick to realize that there is a tremendous amount of maintenance on the outside of the home. Now, the exterior is their responsibility and doesn’t fall on a landlord. Sure, it can be helpful to hire someone; however, this can be expensive.

Some of the common questions that homeowners have include how frequently they should water the lawn. There might also be questions regarding which type of fertilizer and when they should use this. Also, the issues caused by weeds can be substantial. When in doubt about these issues, simply reach out to a professional and ask for help. Someone is always willing to lend a helping hand.

Plumbing Issues Are Common

It is important to do a home inspection before buying a home. This will let the potential buyer know about any repairs they might be inheriting. Some of the common issues have to do with the plumbing system.

One of the most common issues has to do with clogs. Sometimes, the clog takes place in the sink when someone tries to force food down the drain. In other situations, toilets might get clogged if something other than toilet paper gets flushed down the toilet. While a basic plunger is a great place to start, it is also prudent to invest in some drain cleaner and a snake.

The Lights Go Out

Sometimes, people are shocked to see the power go out during a storm. In some cases, the power company may need to come out and handle the repairs. In other situations, it might be a tripped circuit breaker. When the power goes out, head to the circuit breaker and take a look at any fuses that might be turned off. Unplug some of the appliances and then turn the circuit breaker back on! This might do the trick, but if it goes out again, call an electrician.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

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The Impact Of The New Housing Construction Boom

February 12, 2020 by

The Impact Of The New Housing Construction BoomNew housing construction starts reached a record high in December 2019 going up 16.9%. This represents a seasonally-adjusted annual rate of 1.608 million homes last December, which beat the record set in December 2006, 13 years ago, according to CNBC.

This was surprising news, as predictions made before the end of the year were that housing starts in December would reach only 1.375 million homes.

Experts say the current housing construction boom in the United States gets its support from the easy mortgage financing available and positive consumer expectations about the economy.

What Does The New Housing Boom Mean To Buyers And Sellers?

It is a wonderful time to be a home builder, except that builders are experiencing a shortage of construction labor and less availability of low-priced building lots. Nevertheless, there are plenty of interested buyers, especially for modestly-priced starter homes that very desirable for first-time homebuyers.

If you are one of these interested buyers, then, make sure you stand out from the crowd. Be sure to get your credit history in order so that any mistakes are corrected. Get pre-approved for a loan commitment in writing to be the most attractive buyer to a home builder. You may also have to be patient while waiting for your new home to be built. Put your deposit down and then allow extra time for the process to complete. Builders are extremely busy right now.

Consider Renovating For Resale Value

If you are thinking of selling your home, consider making renovations to bring it up to high-quality standards in a “like new” condition. Many buyers who are paying a premium for a newly constructed home will also consider a newly renovated one. Work closely with your REALTOR® to make sure your renovations have the best chance to add value and increase the resale price.

The Boom Areas

Housing starts were up about 40.8% in December when considered on a year-on-year basis. Single-family homes are the largest portion of the housing market. Those new housing starts increased in the Midwest and the South while decreasing in the Northeast and the West. The Midwest and South are seeing revitalized interest in residential home investments after being stagnant for the previous six quarters.

Summary

As we go forward in 2020, homebuilders’ confidence is slowing slightly but still remains close to levels last experienced in the middle of 1999. The housing market, which represents about 3.1% of the total U.S. economy, is doing its part to support the longest economic expansion on record.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

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How To Find Places To Buy Rental Investment Properties

February 7, 2020 by

How To Find Places To Buy Rental Investment PropertiesReal estate, which is a rental property, has the unique characteristic under the tax code of being able to depreciate it and pretend the asset is going down in value, while, if you are a clever investor, you will acquire property that actually increases in value. Additionally, there are other tax advantages for owning a rental property that can help shelter income.

Positive Cash Flow

The key to success with a real estate investment portfolio of rental properties is to build value while it is self-sustainable. Have the goal of creating positive cash flow from every owned property. Making $100 per month positive cash flow from a single property may not sound like much until you multiply that by 25 properties. A portfolio with those characteristics makes a nice passive income of $2,500 per month or $30,000 per year.

Leverage

Using leverage increases the return on investment (ROI) as long as you choose properties that are cash-positive enough to cover their carrying costs and do not lose value over time. The lower the amount of your money that you invest, the greater the leverage you have and the higher your ROI will be.

Finding Rental Income Property

Commercial rental income property is more challenging so it is best to focus on residential rental properties, especially when starting to build up a real estate portfolio. The things you want to look for when hunting for residential rental properties are a manageable median price for the area, an area that is showing steady annual appreciation in home values, and an area that is stable with no severe negative challenges now or in the foreseeable future.

City Opportunities

It is possible to find properties that are excellent investments in many parts of the United States. Here are some examples of cities that currently have investment opportunities so you can consider them and compare them to your location.

Here are the top ten residential rental markets as ranked by TurboTenant for 2020:

1. Reading, PA

Median Sales Price $140,000 — Annual Increase 11.1% — Average Rent $957

2. District Heights, MD

Median Sales Price $252,000 — Annual Increase 0.4% — Average Rent $1,408

3. Allentown, PA

Median Sales Price $145,000 — Annual Increase 19.0% — Average Rent $1,063

4. East Orange, NJ

Median Sales Price $273,000 — Annual Increase 10.0% — Average Rent $1,534

5. Nashua, NH

Median Sales Price $283,000 — Annual Increase 4.5% — Average Rent $1,524

6. Cincinnati, OH

Median Sales Price $163,000 — Annual Increase 3.1% — Average Rent $1,048

7. Paterson, N.J

Median Sales Price $268,000 — Annual Increase 11.9% — Average Rent $1,614

8. New Castle, DE

Median Sales Price $188,000 — Annual Increase 8% — Average Rent $1,884

9. Rochester, NY

Median Sales Price $136,000 — Annual Increase 5.6% — Average Rent $1,126

10. Hyattsville, MD

Median Sales Price $279,000 — Annual Increase 0.4% — Average Rent $1,982

Summary

It is possible to find cash-flow positive properties in all of these markets, so they are all excellent examples of what to look for when you are hunting for a residential rental property to acquire. Be sure to work with a qualified local REALTOR® who knows the market well that you are considering as well as your trusted home mortgage professional.

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Eight Signs You’re Ready To Stop Renting And Buy A Home

January 28, 2020 by

Eight Signs You're Ready To Stop Renting And Buy A HomeFor many people, owning a home is seen as a rite of passage. At the same time, purchasing a home is expensive. As a result, many people end up renting for an extended period of time.

Here are a few signs that someone is ready to stop renting and purchase a home.

1. Rental Prices Keep Going Up

Year after year, rental prices are going to keep going up. While the rental company is going to claim that these increases are consistent with the industry, they tend to be exorbitant. As a result, those who are tired of their rent being increased should think about buying property instead.

2. The Credit Score Has Gone Up

Someone’s credit score is going to play a major role in the mortgage approval process. Anyone whose credit score has gone up recently should think about buying property.

3. Debt Management Is Second Nature

Before taking out a mortgage, someone is going to have to be good at managing debt. A mortgage is simply another form of debt. It needs to be managed properly.

4. There Is A Liquidity Fund In Place

The cost of owning a home extends far beyond the mortgage. Anyone who is thinking about owning property is going to have to have money set aside to cover additional costs. These include repairs, maintenance, and homeowners’ insurance.

5. There Is Money For A Down Payment

There is going to be a large check due upfront. A down payment is essential when it comes to buying a home. In addition, be sure to set aside money for closing costs as well.

6. You’re Going To Settle Down

When someone is thinking about buying a home, they need to stay in the same place for an extended period of time. When someone buys and sells homes quickly, they are likely to lose money to closing costs.

7. A Major Life Change Is Happening

Many people elect to buy a home after a major life change. This might come in the form of marriage. This might also come on the back of having kids. These major life changes can trigger someone to settle down and buy a home.

8. Your Vision Of The Future Is Clear

Those who know where their life is headed in the near future are in a great position to buy a home. If the future is clear, you are ready for the responsibilities of homeownership.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss financing options.

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The Secrets Of Selling Real Estate

January 24, 2020 by

The Secrets Of Selling Real EstateWhen it comes to selling a home, there is a lot to think about. While most people know that the best time to list a home is in the Spring (due to the fervor of the summer), the real estate market keeps rumbling along no matter what time of year it is.

With this in mind, it is important to have a firm strategy in place. This comes in the form of a real estate professional. In addition to trusting the professionals, there are a few other important points to keep in mind.

Don’t Trust The Online Estimates

The internet has impacted almost every area of the economy. This includes real estate. Many homeowners love visiting sites to get an estimate of how much the home is worth. Unfortunately, these online estimates are often inaccurate.

There is not a real estate professional employed by these sites who is driving around taking estimates on homes. There is no way these sites can know what renovations have been done or what improvements have been made. These make a large difference in the overall value of a home.

Hiring A Trained Professional

Those who are looking to get the most out of their home need to hire a professional real estate agent. These agents have the training and expertise necessary to make sure a house sells for as much as possible. These agents also have access to additional selling tools that are not available to the general public.

Furthermore, a real estate agent is going to earn a commission on the sale of a house. For this reason, real estate agents have a lot of incentive to sell a home for as much as possible. It is important to trust the professionals for help.

Letting A House Sit On The Market

It is also important for people to know when to list their home and when to remove it. The longer a home sits on the market, the harder it is going to be to sell that home for what it is worth. As a home sits on the market, the excitement surrounding it is going to fade. Your agent is qualified to guide you through the process.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss financing options.

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