buying a home

Financial Considerations For Move Up Home Buyers

June 12, 2018 By Deborah Ward

It feels like your home is bursting at the seams and figure it’s time to move up. Here are some tips to help make the move up easier.

The biggest thing that should be considered when you decide it’s time to move up is can you afford it. Needing space and being able to afford it are two completely different things. To get to a decision on affordability you need to do a few things.

First, find out what they payoff is on your current mortgage. Not the balance, the payoff figure.

Now you need to talk to a Realtor about what your home is actually worth. Obviously, if you’re upside down on your mortgage, meaning the mortgage payoff is more than the value of the home, moving up shouldn’t be on your list of things to do. If it is worth more than the payoff figure, your Realtor will help you determine by how much.

That should be your next determining factor. Are the net proceeds
enough to be a decent down payment on your next home?

So let’s say that your home will sell and give you a good down payment and all your closing costs for both the sale and purchase. Next you need to contact your lender, or a new one, and get yourself qualified for a new mortgage. To do that you’ll need to know what your price range for the new home should be. You can determine it the same way you did when you purchased your last home. You need to keep in mind that a bigger house will mean bigger bills.

Your mortgage, homeowner’s insurance, real estate taxes, heating and cooling costs and other bills will cost you more. You need to realistically sit and set up a budget.

Don’t move up if it means that you will be house poor. Be smart. Move up when you can afford it, and if that’s now, get moving!

If you are in the Tampa Bay area, now may be a time to move up. Home prices have risen and may have created equity in your home that can cover the cost of moving up. Give us a call today to find out if moving up makes sense for you! 727-216-9247

How To Make A Strong Offer When You Find The Home of Your Dreams!

July 18, 2017 By Deborah Ward

You’re ready to move on up and out, but aren’t sure how successful you will be finding the home of your dreams. Relax! It can be done! Just put a few things in place or in motion before you start the hunt and you’ll be golden.

Here’s how to make a strong offer a home seller will find hard to refuse.

First, be preapproved for your mortgage. I can’t say it enough that a buyer coming in with financing in place is much more attractive to a seller. It says to them that you are serious about buying, you’re financially ready to pull the trigger and will have a much shorter time between offer and closing than a buyer who isn’t pre-approved.

If you have a home to sell, put it on the market now. Having your home under contract and ready to settle, or even sold, will mean that you don’t have the need for a “I need to sell my home” contingency. That seller knows how that can go, and you having to sell your home first will not be as attractive to them as a buyer without that encumbrance.

If you are renting, let your landlord know you are home shopping and when you expect to move. Giving your notice will mean less problems in getting back a needed security deposit or delay settlement because you can’t afford rent and a mortgage payment.

Agree to shorten up inspection times. This doesn’t mean give up the right to inspections, but have a company ready to go for your home inspection, water testing, termite inspections, etc. Lining them up early means you don’t have to delay and you’ll know the answers to questions about them should a renegotiation be needed due to inspection issues.

Lastly, if the area you are looking is a seller’s market, make your offer over asking. Even if it’s over by just a few hundred dollars, it will make your offer irresistible to a seller.

What Are The Most Important Factors (To You) When Buying A Home?

May 2, 2017 By Deborah Ward

There are a lot of things to think about when buying a home, but before you even start looking the most important question is what are the most important factors to you when you are looking for a home to buy? It will help make your home search more specific to you and your wants and needs.

So how do you start?

Look at your current living space and start a list. Write down what you like about it and what you don’t. Is the space too small? Find out the square footage of living space and then you know you your starting point for bigger. Are there enough bedrooms? If not, how many more or less do you need?

If your current home or apartment has a great functioning kitchen, write down what you use the most. If not, go to a home center and look at kitchen options to see what would work for you and what won’t. Just because it’s the “in” thing doesn’t mean it will be something you like or would use.

Think about what is surrounding your current home

Is there a big lot or no lot at all? What about how close you are to the water? Is waterfront property important or do you mind a short walk, bike ride or car ride? Is there shopping close by? What about fitness centers? Schools?

All of these things are key factors for someone, but are they for you? Your answers to these will determine neighborhoods to visit and find a home or neighborhoods to avoid.

HOA’s

Also keep things in mind like home owner’s associations! If they are important to you to keep the integrity and value of your home, look for homes in one. If they are too much of a restriction for your lifestyle, or too much more of a fee to add to your budget, look for homes that don’t have a home owner’s association.

Know what you want so you can set expectations and narrow your home search.

Buying A Home? 4 Things That Could Affect Your Resale Value

October 18, 2016 By Deborah Ward

If you’re buying a home there are four things that affect the resale value of the home. If you’re selling those four things can greatly affect what that buyer uses to decide to offer or even if they offer at all. So what are they?

Location

First, it’s the old adage “location, location, location” at work. Yes, location matters… a lot. The neighborhood matters. Whether the Realtor showing the home or
representing the buyer can say so, people know a “good” neighborhood or a “bad” neighborhood.

Crime stats are easily available, as are neighborhood demographics. As a buyer, you want to know that the home you are buying is in a safe place. As a seller, you want that as well since price depends on it. There isn’t a lot you can do about location, but giving your home an added level of security, if necessary, can help.

Schools

Next up, school districts. If you have a home that would be attractive to a family, good schools are very important. If you don’t, they don’t matter. It’s pretty simple. So if your home is in a great school district and your home is a good starter or move up family home, play up the schools! If the public schools aren’t so wonderful, be sure to mention proximity to parochial or private schools with great reputations.

HOA’s etc.

House in a subdivision? Homeowner’s association rules, whether strict or lax, can make or break a sale. If your neighborhood has strict rules that could be good because it keeps the integrity of the neighborhood intact. That means that everything from landscaping to home colors to what you can or can’t park in your driveway are regulated. If the buyer thinks that maintaining home values is worth following restrictive covenants, they will pay the price for it.

Pools

Lastly, pool or not? In Florida, a pool is an asset, but it can be a detracting factor for a family with small children. If you have a pool and want to keep that family as an interested buyer, be sure you have all of the pool safety features they would be looking for. Gates, alarms, automatic covers should be in place.

Buying A Home? Make Sure You Stop Watching HGTV

September 20, 2016 By Deborah Ward

Buying a home? Great but should you get your ideas for what you want in a home from those home improvement TV shows? Shows on HGTV and DIY Network like Property Brothers, Flip or Flop or Fixer Upper are great entertainment and seem like a great way to get ideas about what you want and don’t want, find a style and so on. Yes, but no.

Are these TV shows reasonable?

You want to buy a home but you’re not sure what you want. You decide to flip on the TV and see what the Property Brothers are up to. As usual, they are showing homes that need a tweak to make them ready for a buyer. By a tweak, they mean practically tearing down the house and making it the best on the block.

They use the best materials, the latest style and top of the line appliances. Next, you check out Flip or Flop and what over the top, over their head flip they are doing. Chip and Joanna Gaines are a bit more reasonable, but again, tearing it all out and starting over.

Unrealistic expectations

Those shows are great but they tend to give you unrealistic expectations about a lot of things. First, the homes they fix up are in different markets. These markets may be very high ones, like you see on Flip or Flop (Southern California) or Property Brothers.

Fixer Upper is in a lower price market, Texas, which may or may not be in sync with your own. Prices for the same size and kind of home can vary greatly from market to market. What you see on television may not be what you can expect in the area you are looking.

What you need vs what you want

They are also not so great because they go above and beyond what most people really need to live. For instance, a gourmet kitchen is a great luxury, but you really only need a stove, refrigerator and sink to live. Granite and marble counters are fantastic, but laminate is just fine.

These shows can show you great things, but not necessarily what is absolutely necessary, especially if you are a first time buyer. A newlywed couple may want 4 or 5 bedrooms, but 1 or 2 are fine for a first home.

Call a Realtor

So turn off the television and call a Realtor. Let them help you with what is available for your budget in your market and what you really need in that home. If it looks like something from HGTV, great, but don’t set your expectations so high. Be realistic, and call a Realtor.

The Top Two Reasons People Gave For Not Buying A Home Right Now

July 6, 2016 By Deborah Ward

Now would seem like the time to buy a home, but there are some people that aren’t. They are giving two reasons for not buying a home at the moment, most of them younger or first time buyers. The biggest reason was student debt. The second biggest was inability to sell their current home. Both are big hurdles and for some a complete wall around home ownership.

Survey

The Top Two Reasons People Gave For Not Buying A Home Right Now A survey done by the National Association of Realtors and American Student Assistance, SALTTM found that millennials fell into this category. They polled student debt holders who were current in their payments and had varying amounts of debt from college, either public or private. The survey found some interesting things.

Student debt

First, 71% of those polled that were non-homeowners, in other words prospective first time home buyers, felt that their student debt was a key factor in them not buying a home. 31% of those polled who were homeowners currently said that their home buying hurdle is their inability to sell their current home.

Delay home ownership

Of those polled who either haven’t purchased a home yet, or currently owned a home, 52% said that either reason; student debt or inability to sell; would put their plans to buy a home, or sell and buy another home, off for at least 5 years, if not more. 1 in 5 expected those reasons to delay their new purchase at least 3-5 years.

You know who that also impacts?

Their parents. Almost half of the respondents, 46%, lived with mom and/or dad. Some paid rent to their parents, some didn’t. 42% said that their student debt was the reason they moved back in after college and delayed getting their own place since then.

There are ways to work around those two reasons

For those currently in a home they own, trying a different pricing or updating could be the answer. For those first time buyers, there are programs out there that can help with procuring a home loan, despite student debt. There are also programs to help restructure student debt and lower payments.

Talk to your Realtor today about how to get yourself in a home.