Buyers all across the nation are making their dreams come true. They’re signing on the dotted line and grabbing hold of the keys to a family home.
Despite record low interest rates and enticing pricing, many potential buyers are delaying the decision to buy.
What’s keeping you on the sidelines?
Let’s take a look at the top reasons to own a home.
Building equity. Writing a check to the landlord is equivalent to lining their pocket with your potential equity. It is money you never get back. You’re paying for a finite amount of time -- one month, one year, etc. Owning your own home means building equity. Each and every mortgage payment is going towards paying down a principal. The worth of your home, however, should continue to gain. The difference between what you owe and the value of your home is equity.
Predictability. Gas and grocery prices may rise, especially in the midst of this Summer’s tremendous drought in the American heartland, but a fixed rate mortgage is as predictable as they come. Your mortgage payment will be X amount for the life of the loan.
Tax Breaks. Uncle Sam likes homeowners! Did you know that you can deduct the interest you pay each year on your home loan? You can deduct the cost of your property taxes. Even making energy-efficient upgrades can be tax deductible.
Appreciation. Home prices are once again on the rise, up nearly 10 percent over 2011 prices. This means a home bought for $100,000 in 2011 could now be worth around $110,000! Over the years (real estate is a long-term investment) your home should gain value. If you decide to sell, you would be looking at a healthy profit! According to the National Association of Realtors (NAR), "The number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing."
Social Benefits. We’ve talked about the financial benefits of owning a home, but did you know that homeowners generally rate themselves as happier and healthier than their renting counterparts. Part of this is thanks to the stability that homeownership brings. Neighbors are more permanent fixtures in your life, meaning friendships that last for years to come. Children of homeowners are more likely to graduate high school and less likely to experience teen pregnancy. It’s all about creating a stable environment for the whole family.Homeownership can be a great way to secure future financial security and freedom. So, what’s stopping you from getting into the market? This big purchase comes with lots of perks and there’s never been a better time to buy.
Written by Carla Hill
October 31, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Neighborhoods are as diverse and unique as the people who live in them. From close-knit communities to private and mature tree-lined streets -- there's a fit for every buyer.
Many young families seek communities brimming with amenities, such as pools and parks. Others place top priority on schools within a prestigious district. Still other buyers are more interested in neighborhoods within walking distance of restaurants, theaters, and other fun times!
It can be a tough map to navigate. Here are some tips for finding your perfect neighborhood!
School Districts: If you currently have, or plan on having children, it's important to research what local school district you wish your children to attend. This becomes even more critical if you are moving and wish for your children to remain in their current school!
Noise Factor: You may love the house, but will you love the road noise from the adjacent highway? Visit your potential neighborhood during different times of the day and varied days of the week. Some otherwise quiet streets become raucous hubs during the wee hours of weekend nights. Also check for train tracks, subways, roads, and airports!
Walk/Driveability: How close will you be to restaurants, grocery stores, doctors' offices, parks, and other recreational establishments? Many families want to be close to the action -- so close that they can walk!
Favorite Activities: Do you love golf, boating, or spending your time at the gym? Research local amenities before deciding on which neighborhoods to search. It's no fun driving for hours to make it to your favorite activity.
Safety: Ask your real estate agent or local enforcement about the crime rate for a particular area. Some have higher levels of thefts and even violent crimes. A beautiful house can't make up for feeling unsafe.
Resale: Discuss the resale potential of a certain neighborhood with your real estate agent. If you aren't planning on staying in your home indefinitely, then it's important to consider the long-term. Will you be able to sell a home in this neighborhood in 10, 15, or 20 years? Is it up-and-coming or has it come and went?The neighborhood you choose will have an impact on your day-to-day life, so it's important to make the right choice for your family. Be sure to consider these tips when you're next in the market to buy!
Written by Carla Hill
October 25, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
It seems there's more good news in the housing market. Economists reported that new home purchases rose in September to what is "probably" the highest level in more than two years. At the time of this writing, the full statement from The Federal Open Market Committee has not been released but it is expected to show signs of a stronger housing market.
Bloomberg.com reports its survey of economists indicates that housing sales increased 3.2 percent to equal 385,000 annual pace, based on tabulations when contracts are signed. The market hasn't seen numbers like that since April 2010 when buyers flocked to take advantage of a government tax credit.
The housing market is climbing out of its huge slump but mortgage credit is still strict, unemployment is high, and people's incomes aren't increasing much. Couple all that with the forecast for more foreclosures and the picture, while improving, isn't completely rosy.
If you've been waiting and wondering if now is the ideal home-buying opportunity, this may be a good reason to explore your housing options, take advantage of very low interest rates, current inventory, and market conditions.
Get started. If you've been one of those buyers who has been trying to time the housing recovery and make sure that you buy at the very bottom, be careful. In some areas, you may have already missed the bottom. All buyers want great value but waiting too long can leave you in a position where you'll have to pay more to get what you want. On the other hand, carefully studying the market and meeting with experienced agents who can tell you the history of an area you're interested in will help you evaluate if now is the time to buy.
Check out the area. Some buyers have a dream of owning a home but then they don't put a lot of research into it. Instead they rely on the newspapers and media to tell them when the market is truly improving. If the media reports bad news, they become afraid and decide to put off looking for homes. But even if you're not planning to buy right at the moment, you can learn a lot from repeatedly visiting and checking out neighborhoods of interest. Seeing these areas will offer some telling signs.
If you're interested in a particular neighborhood, keep visiting it and watch the changes. This will keep you in the loop about new sales and developments in the area. You may notice fewer for sale signs or more starter homes are being sold. This is a good indication of housing improvement. You also might see more sellers moving up rather than downsizing, another sign of better times. Spending time in the neighborhood lets you get more familiar with it and the people who live there. You can visit the real estate agencies and notice if they're recruiting more agents. If so, it likely indicates the housing market is on the mend.
Ultimately, improving housing signs can mean that the housing market is beginning to bounce back, but trying to time the market for it's lowest point so that you can get the rockbottom price is practically impossible.
There are so many factors to consider. If you're staying connected to the area and you're continually searching, researching and, of course, ready to act when you find the right house at the right price, then you are effectively creating the most ideal home-buying opportunity.
Written by Phoebe Chongchua
October 26, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Are you gearing up to buy a home? Now is a great time to make a move in the real estate market. Interest rates are at historic lows. Compare today's 30-year fixed-rate average of between 3 and 4 percent to the 13 to 18 percent rates of the 1980's and you'll see why everyone is buzzing about the great deals to be had!
Additionally, homes are now at their most affordable on record. This is because home values have dropped across much of the nation. There is also a huge supply of distressed properties on the market which sell for steep discounts.
With all these great deals it's easy to get carried away, but the lesson learned by millions of foreclosed homeowners is to buy within your means. Just because you're approved for X amount doesn't mean you should spend that much.
So, how much home can you really afford? Consider the following.
What is your monthly income?If you have a salaried job, this can as simple to calculate as looking at your paystubs, but if you work on commission and tips, it's important you consider both high income and low income months.
What is your monthly debt load?Consider the monthly cost of child support, alimony, student loans, credit cards payments, car loans, and other debts that must be paid each month.
Is your job stable?Today's job market is still a little shaky. While the unemployment rate has improved, many still struggle to find jobs. What would happen if you were to lose your job? Would you still be able to pay your mortgage?
What are your monthly expenses?This is different than your monthly debt load. These are extra expenses including: cable, internet, cell phone, gas, food, entertainment, clothes, travel, etc.
How long will you be staying put?Homes just aren't appreciating at the rate they used to. You will probably need to stay put for at least five years before you would break even on a sale.
How much do you have saved?Lenders expect for today's buyers to have at least 20 percent to put down in addition to closing costs. A $200,000 house will require a $40,000 down payment. Do you have this money in addition to an emergency fund? If not, you might want to consider a less expensive house or waiting to buy.
Written by Carla Hill
October 23, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Selling your home in a buyers market comes with its own unique set of challenges. Not only are sellers competing against a market saturated by distressed properties (26 percent of all sales) selling at steep discount, they are also coming face-to-face with a unique breed of buyers.
Buyers today are well aware that home rates are at or near the most affordable in history. Though reports say inventory levels are limited, most buyers know that another home is around the corner if yours is not the best deal.
Buyers are playing hard ball. This doesn't lessen a seller's need, however, for garnering top dollar on a sale. Sellers have one tool, though, that can set them apart from the competition. This tool can also help sellers reach that top dollar goal.
It's all about staging! Staging is about showcasing your home in the best light; it means creating an ambiance that sets a mood. It makes buyers ask, "Is this the sort of lifestyle I can see myself living?"
The first step it a no-brainer. You must clean your house thoroughly from top to bottom. Deep clean every surface: walls, cabinets, floors, and windows. Rent or hire a carpet cleaner.
Make any necessary repairs and consider doing some inexpensive updates. A new front door and mat, fresh mulch, and even new countertops can go a long ways in the staging game. Larger projects, such as roof repairs, faulty plumbing, or outdated kitchen and baths, may need attention before you list. Ignoring these repairs could mean limiting your buyer pool to only project-willing buyers.
Next, decide on the ambiance you want to create. Is yours a family home with great bones for cozy spaces? Consider a fresh coat of paint in a contemporary color. Assiduously choose only a few decorative accessories, boxing away any overtly personal items such as trophies, souvenirs, and trinkets.
Can't decide where to start? Home magazines are a great place to find design inspiration. You can even pick an inspiration room to mimic as closely as possible.
If the budget allows, you may wish to hire a professional stager or opt for storing away your own belongings so that you can stage with a fresh set of rented furniture.
Once you've arranged your room, it's a great idea to step away and look at it with fresh eyes. Try to see this room anew, as if you're a potential buyer. Have friends and family, along with your real estate agent, do the same and give your suggestions. Simply rearranging furniture or removing one or two extraneous items can make all the difference.
It's about making a great first impression - and this includes your online meet and greet with potential buyers. A vast majority of buyers start their home search online. If you've been in the market to buy in the last decade, you'll understand the appeal of searching through the MLS, taking virtual tours, and perusing pages of photos.
Understanding how a camera will see your room is imperative. The camera sees rooms differently than our eye. Every out of place item will seem awkward. This awkwardness can distract your potential buyer from the real focus -- your home.
Be sure that whoever takes the photos or video of your home uses a high resolution camera and either beautiful natural light or professional lights. You can only make a first impression once!
Written by Carla Hill
October 10, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
It's a scary step going from renter to first-time homeowner. Where does one start on the search for the perfect home? How much home can you really afford? Are you ready to sign on that dotted line.
Homeownership is a good long-term investment. The keyword, though, is long-term. There are many extra costs associated with owning a home, including such things as repairs, maintenance, insurance, and cosmetic upgrades. Additionally, homes across the nation are still experiencing declines in value. This means you'll need to stay in a home longer before you'll build equity, likely in excess of five years.
The most logical place to start then is with how much you can really afford.
- What can you afford? This is a tricky question. Of course, there is the number your lender gives you. "You qualify for X amount." It's up to you, however, to decide if that amount is reasonable for your lifestyle. Just because you qualify for X amount doesn't mean you should buy a home priced at that. You may find a cheaper home services all of your needs, while leaving you plenty of extra monthly cash for traveling, entertainment, and other of life's pleasures.
- Long-term use: Think long-term in terms of the size of the home and its location. You may be a single person or a young couple now, but kids can be a game changer. A once perfectly sized home can seem cramped. With homeowners needing to stay put longer in order not to sell at a loss it's even more important for first-time buyers to think long-term.
- Fixer or move-in ready? Some buyers love to buy a fixer-upper home in a prestigious neighborhood. It's a foot in the door, literally. With a few upgrades and cosmetic fixes you can bring an outdated home into the new decade. Other buyers abhor projects. They want a home that needs nothing. They love the kitchen, baths, and even paint colors. Which type of buyer are you?
- Attached or Detached living? A condo can be maintenance free, but it will also come with HOA fees. A townhouse may give you more outdoor space, but you'll still be sharing walls with a neighbor. Are you wanting lots of privacy? Are you looking forward to the autonomy that a detached home affords you? Be sure to discuss all of your options with your real estate agent.
- Hiring an agent: If you are like most first-time buyers you'll start your search online. That's a great place to start, but to traverse the roads of real estate competently and safety you should enlist the help of a real estate agent. They will not only show you the newest listings and the best fitting homes, but will also guide you through all the carefully worded contracts coming your way.
- Be ready to pull the trigger: While it is currently a buyers market in most areas of the nation, you still need to be ready to buy when a good deal presents itself. Some first-time buyers can become trigger shy when the time finally comes to make an offer. It's no wonder. Seeing your name next to all those zeros can be quite a pill to swallow. So, mentally prepare ahead of time for the act of signing on the dotted line.
- Lender Pre-qualification: Sellers want pre-qualified buyers viewing their homes. This shows that you are serious about buying. It will also show you how much you can spend and even if you can qualify for a mortgage. Lending is tight and if you have blighted credit you may have a hard time procuring a loan.
- Downpayment: How much of a downpayment do you have saved? Are there family members who might be willing to help out? Most lenders are now requiring 20 percent down on any home purchase. This means for a $100,000 home you'll need $20,000 in cash to put down.
- Resale: If you are planning on staying put for the long haul then resale might not be a real concern, but if this is going to be a starter house you should be sure to consider how easy a home will be to resell later down the road.
- Finally, be sure to consider the "what ifs" of life. What if you or your spouse lose your job? Will you still be able to afford your mortgage payments? What if you become ill? Will you still want to climb those three flights of stairs? What if you have children? Will you quickly outgrow your home? All of these scenarios should be given careful consideration.
Homeownership can be a genuine joy. It can bring stability and a sense of pride to any household. Take the time to think over these ten tips and you'll be sure to make a great decision for your first purchase!
Written by Carla Hill
October 19, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Attractive interest rates and bottomed-out home prices have many homeowners wondering if now is the time to make a move. Is the climate right for purchasing that dream home? It all depends on your personal needs, finances, and of course, the state of your local housing market. Find out if now's the time to make a move by taking this quick quiz.
How much do you owe on your home? Many homeowners today find themselves owing more than their homes are worth. These owners should think long and hard before selling homes at a loss.
What are your housing needs in the decade to come? Are you a new couple expecting to expand your family? Today's market presents great deals that can facilitate you moving up to a bigger home.
Are you nearing retirement age? While it may be appealing to buy the dream McMansion you've had your eye on, it's important to remember that bigger homes require bigger maintenance, something many seniors look to avoid.Still other families are moving up to bigger homes that have the room for multiple generations.
Are you willing to take on a larger mortgage? Even though interest rates are low, a larger home will not only cost more in taxes and utilities, but you could also find yourself with a steep mortgage payment.
Do you have an 8-month emergency fund? There is still much uncertainty in the job market. Every household should be sure to saved back at least 8 months worth of cash for an emergency fund.
How are your retirement savings? The same line of thought applies to number five. Housing isn't turning out to be quite the booming investment it once was and while home prices are starting to rebound, a home is never a substitute for a solid retirement plan that is in full swing.
Why are you buying? Is it for more space, a better school district, or to take advantage of today's screaming deals? These can all be admirable pursuits. Are you instead buying for the status and prestige of a neighborhood? Homeownership is still a hefty responsibility, even with low interest rates and high levels of affordability. It should never be entered into lightly.
How quickly are homes selling? Most households cannot afford to carry two mortgages, so be sure that you are able to sell your home first before buying that dream home. Talk to your local real estate agent about the current market conditions, such as how long a home is taking to sell, sale prices, etc.
What do you need? This last question is more philosophical and may take some extra time and thought. After the 2009 recession, many consumers are asking themselves, “What do I really need?” Wants versus needs are sometimes a hard pill to swallow in a consumer-driven society, but many families are finding that they are happier with smaller homes and more family time.There are great deals to be had in today's market. If your family is ready, financially and emotionally, for a move up, then be sure to contact your local real estate agent for more details on the condition of your local market and for some of today's hottest listings.
Written by Carla Hill
October 12, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
