buying a home

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

November 18, 2021 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.

Great Reasons Buying A Home Is Better Than Renting

November 17, 2021 By Deborah Ward

The common wisdom is that buying a home is better than renting. Common wisdom exists for a reason, buying is better than renting and here’s why.

The first reason is cost

If you rent a home it costs you more in 5 years than buying one does. Here’s how. If you rent a home for $1,500.00 per month for 5 years will cost you $90,000.00. Buying a home with a mortgage payment (principal and interest only) of $1,500.00 is $90,000.00… BUT a homeowner gets a tax deduction for the interest paid on their mortgage. Let’s say that deduction is a total of $3,000.00 or $250.00 a month. Over 5 years that’s $15,000.00. Deduct that from your 5 year amount paid out and you actually only paid $75,000.00! That doesn’t even take into account a First Time Home Buyer tax credit that you may qualify for if you’re a first time owner.

Finite vs infinite

Those monthly payments are finite with a purchased home, but infinite when you rent. Your mortgage has a beginning payment and end payment and once you pay that last payment, you get to live in your home with no monthly payment to stay there (beyond your real estate taxes). When you rent, you pay a monthly payment to live in the home with no end unless you leave. If you rent a home and walk away from it when the lease is over you leave with nothing but the possessions you came with. When you sell a home, you get back the equity, or value, that you put into the home. As you pay your mortgage, you gain equity from the amount of principal paid. You also gain equity when the value of your home rises. For instance, if you purchased your home for $150,000.00 and sell it ten years later for $250,000.00, you gained $100,000.00 in equity.

Repairs and updates

That rise in equity can come from changes in the market, but also in the value of repairs and updates you make to the home. Those repairs and updates can be made when you want and no one else gets a say. If you rent and want to update even the paint in a room, you need the permission of the landlord and if they say no, you’re stuck.

So yes, it pays to buy!

If you are thinking of buying a home in the Tampa Bay area, give The Deb Ward Team a call! 727-410-0336

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

November 17, 2021 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.

Buying A Home? Make Sure You Stop Watching HGTV

November 17, 2021 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.

Mortgages Are Harder To Get Now: 5 Things To Know Before You Buy

November 11, 2021 By Deborah Ward

The days of easy to get mortgages have been over for awhile. That’s a good thing, but it can make buying a home a bit more difficult. There are some things you can do before you buy to get the best rate and mortgage for your new home.

Your credit score

These days your credit score is more important than most everything else in determining if you get a mortgage and what your interest rate will be. Take a few minutes and get your score. You can pull it once a year free from the big three credit rating companies: Equifax, Experian, and TransUnion. You don’t need to use one of those “free credit score” companies. But do get all three and know your numbers and average.

Don’t assume. A low credit score and credit fraud can stop a mortgage application dead in its tracks. Most mortgagors require a minimum credit score of 680 for conventional mortgages and 620 for FHA mortgages. If there are problems on your report, such as erroneous information fix it now before you apply.

Save, save, save

These days getting a mortgage with no down payment or a very low down payment is nearly impossible. How much depends on many things, but know that you’ll need at least a 3.5% down payment. More is better. You’ll also need money for closing costs and living expenses after the purchase.

Don’t change jobs

Don’t change employment. If you need to change jobs, wait until after you close on the home. Any changes in your employment or income can delay the mortgage process or stop it all together. If you change jobs your lender will need to re-evaluate if you still qualify for the mortgage or not.

Pay down your debt

If you have debt, pay it down and don’t take out new loans. High income to debt ratios can put the kibosh on your mortgage hopes. Lower income to debt ratios can get you a better interest rate on your mortgage. Also don’t go on a buying spree for new things for the house until after you close. New loans will show up when the lender does that last minute credit check. That includes co-signing loans for others.

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

October 27, 2021 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.