Posts for Syndication

The biggest hindrance to home-ownership for most young couples is the dreaded downpayment. In fact, may couples believe that between living expenses and school loans, they’ll never be able to save up enough for a downpayment on a house or even a condominium. If making the move from renting to owning is a priority for you, you’ll need to become aggressive in your savings and spending-cuts.

Since the median price for a home is around $275,000, you’ll need around $55,000 for the downpayment with a conventional loan. Here are some ideas to get you started:

• Create a separate savings or money market account for your downpayment monies. Having your money in a separate account helps you avoid infringement into your nest egg when emergencies crop up. In fact, you should set aside about $1000 for emergencies outside of your downpayment savings to cover pesky things like blown tires, unexpected fines or other unforeseen drains on your money.
• Make a big lifestyle change. If your extended family is on board with your home purchase, see if you can move in with them for a while. A year with the in-laws might be uncomfortable, but in the end you could save an extra $12,000 to $20,000 from rent.
• Take an extra job. If you can pick up some hours in the evenings and weekends and earmark ALL of the income for your downpayment account you can boost your account considerably. On the other hand, avoid trying to make side money with a hobby unless you already own the equipment (cameras, tripods, etc., if you’re a photographer or saws, power tools and other equipment if you’re into woodworking), because you may end up spending more than you make.
• Make extreme decisions such as selling an expensive vehicle and driving a less expensive one or ridesharing for a specific period. During this time determine to socialize on a more limited basis … instead of eating out, host a potluck or BYOM barbecue.
• Evaluate memberships and subscriptions (gym membership, Netflix, cable, coffee of the month) and consider suspending them for 12 to 15 months and redirecting that money into your savings. Or, substitute Netflix for cable and movie night if you’re the type that goes out a lot.
• Make your savings fun. Create games and competition to see who can save the most. If you’re saving alone, find a friend in a similar situation and create a savings race with them.

Don’t forget to set aside a little fun money along the way. Too much austerity can cause stress and friction when you’re used to more extravagant spending habits. So, when you reach a milestone, have a dinner out, or go see a movie. Just don’t slip into retail therapy without specific limits or you’ll just be frustrated when you don’t reach your goals as soon as you planned.

If you need more suggestions on ways to save up for a downpayment, or options for loans that require a lower downpayment, your real estate professional can help.

Compliments of Virtual Results

We all have our own idea of the perfect place to raise a family. We want our kids to grow up with all the opportunities available to them. That might mean a large backyard or nearby parks, great schools, sports facilities, museums or libraries. You might think a low crime rate or access to shopping should be in the mix too. But the best place for someone else may not be the best place for you.

Some factors that might make more of a difference for you could be the ones you forget to take into account:

If you check out the cities that rank highest in various surveys, they may be right around the corner from you, or halfway across the country. Before heading off to the suburbs, a new city or a new state, think about what’s really important to you. Moving to the ‘burbs might mean a bigger home with a yard, and great schools. But, you’ll be moving away from all of your friends, so make certain the advantages outweigh what you’re giving up.

Here are some of the criteria researchers look for when determining an area’s “family friendliness“:

• Median household income
• Cost of living index
• Housing affordability
• The percentage of homeownership
• Commuter times and delays
• Crime rates
• School rankings

In each category, cities go up and down over the years, so check the data across several years to see if the location you’re looking at fills the bill. You also need to determine which of those criteria mean the most to you. If your kids are just a gleam in your eye, you’ll want to checkout if there’s a child learning center, maternity ward, child care and daycare center, and toddler-friendly playgrounds. If your kids are of school age, however, you’ll want to be looking for a school that offers both excellence in academics and the sorts of extra-curricular activities you child enjoys.

Of course, you can read all sorts of lists, surveys and rankings, but if you don’t have an income source there, it might not be the best opportunity for you. In fact, if your children have lots of afterschool activities you may opt for a city lower in the rankings but nearer to work so that your commute is shorter and you can make it to your kid’s play or pick them up after football practice. Some people believe a commute longer than 25 to 30 minutes can significantly lower your quality of life.

Sometimes, the best place for you to move and raise a family is the place you know best … and sometimes it’s a place you don’t know anything about. In either case, tapping into the expertise of a local real estate professional can help you find the perfect place for your brood to grow.

If you’re looking to move or just want to find the best place for your family near to where you already live, we can help. We know the neighborhoods, the schools, the commute and all the other things you need to know to find the best place for you.

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Okay, it’s one of the biggest decisions of your life, so when do you know if you’re ready?

Homeownership readiness can come at any age … there are young twenty-somethings that took the plunge, and there are empty-nesters that buy after the kids are gone. The right time for you could be now, or anywhere in-between now and retirement.

Homeownership isn’t just about affordability (although that’s helpful). It’s about responsibility. When you own your home, you are responsible for the mortgage, the taxes, the insurance, the repairs, maintenance and upgrades. If the toilet overflows, it’s up to you do call the plumber or learn to fix it yourself. When the leaves fall … you get to rake them up. No more calling the landlord, property manager or maintenance staff. Just because you CAN buy a home is not the strongest indicator that you should.

Here are some things to think about before you jump in:

• Do you still have school debt? If you have debt from education loans, or personal loans and credit card debt from a misspent youth, you may need to work on getting your “financial house” in order before you take on a mortgage too. In fact, debt can be a symptom of not having enough available money. If you tie up all the rest of your cash into a mortgage payment and then your car breaks down … you’ll be out of both your ride and your home.
• What does your credit score look like? If you don’t already know, get your free credit report and make certain everything on there is correct. Then, get your credit score or sign up for a free monitoring service like CreditKarma or credit.com. Use their online tools to discover ways to improve your score. If your score increases month over month, you’re probably on the right track.
• Have you saved up enough for a downpayment? An FHA loan on a $200,000 house requires just 3.5% or $7000, so it seems like a no-brainer, right? But in addition to that downpayment, you’ll have closing costs, insurance, taxes and of course, you’ll need money for new furniture, paint and a few other upgrades. Consider saving up at least double what’s required for the home you want.
• Consider the monthly costs. Your payment is just the beginning … if you’re moving from an apartment to a home, you’ll have sewer, water and trash bills, taxes, homeowners insurance, association dues and a little money to set aside each month for future repairs. In fact, your little repairs kitty should equal at least as much as the deductible on your insurance. Don’t fall into the trap of relying on online mortgage affordability calculators to determine if you can afford it.
• Do you plan to stay in this location for a while? If there is a chance that you’ll be moving in a year or two, or even three or four, you might want to reconsider purchasing. You really need to be in your home for five or six years for its value to increase enough to cover those hefty closing costs you just dished out.

Well … are you ready?

If you’ve addressed each of these issues and know you have them covered, you may well be ready to buy. If you’re ready—we can help! If you’re close to ready, we can give you some pointers.

Give us a call and let one of our real estate professionals get your started.

Compliments of Virtual Results

You know you love house hunting, and shopping for the perfect home is a fun pastime, but to move from being an open house and model home butterfly requires that big initial financial outlay … the dreaded downpayment. In fact, sticker shock sometimes deters potential homeowners from making the decision to buy at all.

To get from where you are to where you want to be, you don’t need a windfall (although that would be awesome), you need to create a budget allows you to live today AND save for that downpayment—and don’t forget those closing costs. Then, once you’ve created a budget … you need to protect it from the temptation to dip in now and again along your way to homeownership.

Here are some savings tips AND some budget-busters to navigate around:

Strategies for saving:

• Open a savings account. This might seem like a no-brainer, but many people don’t have one savings account, let alone more than one. If you already have one, open another one specifically for your downpayment. Having an account earmarked explicitly for your downpayment might make you think twice about raiding it for other expenses that crop up.
• Use a separate bank. There are two main options for options for your savings account: use the same institution you use for your checking account OR use a different institution. Some people advocate opening up the savings account at the same bank as your checking account for the convenience of transferring money. BUT, if you’re already having trouble saving up that downpayment, you want to make it a bit harder to get at, so consider opening up a credit union account or a savings account in a different bank.
• Use direct deposit. If your employer’s payroll system allows it, have the savings portion of your paycheck sent directly to your savings account. That way, you’ll have less immediate access to it, won’t see it in your checking account and may be less likely to spend it.

Establish a budget:

Once you have a mechanism for saving in place, establish a budget around your remaining income. You can find many online programs to help you create and keep track of your budget. Many are free to use, but some offer the opportunity to consult with a financial planner for a fee. Here are is a short list to get your started:

• Mint.®
• Budget Simple.®
• Every Dollar.®
• LearnVe$t.®

Budget busters:

Many people resist living on a budget because it seems so restrictive. That idea, that a budget ties you down like a parent looking over your shoulder, keeps many young people from reaching even simple financial goals. The challenge is that many of us see spending money as a reward, but money is really just a tool to help get you what you truly want. If you REALLY want to own a home, watch out for these budget-busters that will keep you from getting there:

• Overpriced vacations. Whether it’s the dog days of summer, or wanting to escape the winter blues, the lure of travel is everywhere in every season. Cheap flights with hotel, rental car and tour or show ticket add-ons seem like the perfect solution, but before you pull out that credit/debit card, think about what you really want: a new home or a temporary break. That doesn’t mean you don’t take vacations, just that you think twice (or three times) before paying too much and being sorry later.
• Overpriced coffee. Well … not just coffee, but if your coffee/tea/cola/energy drink habit adds up to more than $10 a day you’re probably busting your budget. If you saved just half of that ten dollars a day, you’d have $1825 in your savings account by the end of the year. If two or more members of your household curb their caffeine habit, by year’s end you could have $3600 to $4500 saved up.
• Dining out. Much like your caffeine fix, dining out can break a budget real fast. According to The Simple Dollar, the average American spends $232 each month eating out. You don’t have to give up eating out, but like your caffeine fix, if you just cut that in half, you’ll have an extra $116 a month—a whopping $1392 a year—to add to your savings.
• Expensive clothes. These days, many offices allow casual dress, but if you work in a highly professional environment that requires a more put-together look, you still don’t need to break the budget. Purchase just the key pieces you need—those that can do double duty—and change up with accessories.

Added together, these savings of about $5800 (or more) can be enough to qualify you for the downpayment on a $100k home using an FHA loan. If you add to that all, or even part of any extra money you get through out the year (birthdays, holidays, bonuses, rebates) your downpayment account can grow significantly in just one year.

Compliments of Virtual Results

The biggest challenge to solar energy is the inability to both capture it and store it in any meaningful way. In fact, while efficiency in capturing solar power has increased from about 15 percent of most solar panel models to 35 percent efficiency in the higher ends, even when captured the energy grid is unable to store and regulate its flow throughout the day. The solarchat is an information website that discusses everything about solar power, so check out their online site. If you decide to install a solar panel system in your home, you may look for a reputable solar installer and inquire about their rates and services.

Enter the Tesla Powerwall

Elon Musk, CEO of electric carmaker Tesla Motors, announced earlier this year that Tesla’s new Powerwall for the home and Powerpack for commercial use already garnered 38,000 preorders. The Tesla Powerwall offers 92 percent efficiency in DC round-trip power.

Here are the basics:

The Powerwall home battery charges via electricity generated by solar panels. As solar energy wanes throughout the evening or on a cloudy day, the solar battery storage equipment supplies energy back to your home instead of pushing it into the public power grid. The Powerwall also offers energy during a power outage, so homeowners in storm-prone areas or country homes with unreliable utility service can access emergency power, you can get in contact with a professional from electricianinperth.com.au to fully understand how the process works.

The Powerwall utilizes a lithium ion battery with technology similar to that in Tesla automobiles and installs on the wall of your garage, basement or even outdoors. For larger homes, or those with higher power consumption requirements, multiple batteries can be installed together with up to 90 kWh total available power. Each battery in its weather resistant enclosure is just 51.2 inches by 33.9 inches and only 7.1 inches deep. To learn more on how solar panels work, visit https://getsolarpowered.net/how-do-home-solar-panels-work/.

The system uses rooftop solar panels connected to the Powerwall and an inverter that directs current from both the solar panels and the Powerwall battery into your home’s alternating current power system. Interested to learn about how solar panels work? You can check out this useful reference.

For an example of how much energy your home uses in the day, consider that your refrigerator consumption is commonly 4.8 kWh/day (kilowatt hour per day) while your washer and dryer together equal about 5.6 kWh/day. Add to that your lights, laptop, flat screen television or stereo and you’re looking at about 2.5 kWh/day additional consumption, and for the installation of your TV, from simple TV mounting service to more complex jobs requiring multiple TVs, GTA TV Wall Mount installer have the experience and expertise to get the job done right.

Of course, the first question that comes to mind for a cutting –edge home technology like this is the cost. According to Tesla Motors specifications, the home-sized batteries cost just $3000 for the 7-kWh model and $3500 for the 10-kWh version. Each comes with a 10-year warranty.

New Jersey Solar Initiative offers a few different programs that offer free solar panels to residents of New Jersey, get it from here. If you’re looking for an energy efficient home that conforms to the requirements for solar panels, let your real estate professional know. We can optimize your search so that you find the home that is just right for you and your power needs.

Compliments of Virtual Results

Whether you’re preparing your home to sell, or your packing up to move to your new home … clutter can be your worst enemy.

But, getting chaos under control isn’t always easy.

The problem isn’t that you lack resources.

In fact, a whole industry sprang up to help folks tackle the problem of clutter: from simple lists and organizational house cleaning tools to a number of commercial cleaning service companies.

The abundance of resources might just seem like more clutter. For some people, even the thought of trying to de-clutter can seem overwhelming. And looking at pictures of the perfectly organized closets, cupboards and garages of organization gurus makes them feel like failures.

If clutter is messing with your home sale or move, don’t try to become the perfectly organized maven right now. Just get the basics down so that you can move on:

• Take small bites: Remember the old adage, ” How do you eat an elephant? One bite at a time!” Don’t try to tackle the whole house at once. If you have children, consider starting with their toys. Look for ones they’ve outgrown and no longer play with. You don’t need to get rid of them just yet; try putting them in a clearly marked box out of sight. If your biggest challenge is your closet, pull out the clothes from the season farthest away (winter if it’s spring or summer if it’s fall) and put them in clear storage bins. That way, you can see them, but they aren’t taking up the space that your current wardrobe needs.
• Time yourself: give yourself just one hour (or less) at a time to declutter one space. Tackle the junk drawer in the kitchen (yes, we all have one) and get rid of the odd paperclips, rubber bands, loose screws and broken pencils. Once you’re done with that one task, just get on with life … don’t think you have to do it all in one day.
• Use the doubling rule: if you think it’s going to take one day to organize—plan for two. If you think you can do it in two weeks, plan for four. That way, if you get done in less time you’ll be energized rather than being disappointed that it took longer.
• Use simple strategies: When organizing a room, use one box for KEEP, one for GIVE, one for DISCARD and one for SAVE. The KEEP box is for items that need to go back into that room, so it is a temporary resting place while you sort. The GIVE box is for anything you plan to give to friends, family or charity. Use the SAVE box for items that belong in a different location or that need to be in long-term storage. As you move from room to room, you’ll resort this box and return items to their proper room. The final box—DISCARD—may be the hardest one of all. Use it for anything broken, torn, damaged or otherwise unusable: just get rid of it. One caveat: if you plan to have a garage sale, add one more box called SELL for those items. If you don’t sell the items at your garage sale, move them to the GIVE box. If you have accumulated a lot of items to be discarded, you may need to contact roll off container services that can provide roll off dumpsters to collect the items and other waste.

If you need to know which items to declutter for your home sale, talk to your real estate professionals. They know what types can turn off a buyer or make your home sale take longer … so tackle those items first.

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The short answer is “yes,” but know what you’re signing up for.

In a seller’s market it seems like most homes should sell — given enough time and exposure on the market. But there are some situations where a home MUST sell: the owners need to move for work or because of a job loss; or, the home was left in a will and proceeds need to be split among the inheritors; the sellers are experiencing divorce, or any number of other reasons a home needs to sell quickly.

With a quick sale required, sellers may be temped to go for an agent’s offer that sounds too good to be true: The agent will “buy your home if it doesn’t sell!”

According to Angie’s List, such offers are not scams. They are, in fact, marketing tactics that might work for you in your situation — a win-win — or, might be a really bad deal. Before signing on the bottom line, make certain you know what you’re agreeing to.

Home sale guarantees

Real estate professionals from https://www.williampitt.com/search/real-estate-sales/fairfield-ct/ may offer a variety of types of guarantees. Each has its own value to both the agent and the seller:

• “If I don’t sell your home, I’ll buy it” — Often, this type of guarantee offer comes from agents that work with investors. An investor wants to buy a home either to rent or to sell at a profit. In this scenario, you should plan to part with a chunk of your equity. This program may work for you if you need to sell quickly but don’t need top dollar from your home, if you need to sell to settle an estate, or if you’ve found a new home at a substantial discount and just can’t afford the two mortgages at once. Just know that you will see less return on this type of sale. If your agent only sells under this program and not to the general public, you’ll end up with less in your pocket.
• “If I don’t sell your home in X months, I’ll buy it” — When a program has time stipulations, it usually also has price stipulations. You’ll most likely be agreeing to a schedule of markdowns (monthly, bi-weekly or weekly) so that by the “I’ll buy it” date it reaches the price the agent will pay for it.
• “We guarantee you X% of the value” — In this approach, the agent offers a specific discounted price if your home doesn’t sell. Often, this is about 90% of its fair market value, plus fees and commissions.

The bottom line

Before you agree to any home sale guarantee plan, know that if the agent does not sell your home outright and the plan goes into effect you’ll be accepting far less for your home than on the open market. While this seems like a lose-lose for the typical home seller, it can be a win-win if the sale is urgent or the sellers have extenuating circumstances.

The best scenario

When selling your home, the best scenario is to work with a real estate professional that knows the home’s market, can advise you on the best way to prepare your home and create curb appeal, and offers all marketing resources (online, offline, print, local, signage, MLS, etc.).

Compliments of Virtual Results

You’ve found the perfect home at the perfect price and made an offer that the sellers accepted. But, the appraisal came back lower than your offer.

BUMMER!

What do you do now?

Any home financed through a bank or mortgage lender requires an appraisal to protect them against originating a loan is upside-down (the loan is greater than the collateral).

There are many reasons that an appraisal comes back lower than the home price. The comparable houses used in the appraisal may not actually apply to the property you’re hoping to buy. For example, if the home you’ve put an offer on is semi-rural or rural, the comparable homes may not have as much land, or may have land but not as much house, or fewer outbuildings. In residential neighborhoods, the home you wish to buy may have upgrades that none of its neighbors currently have. Often, there are no other recent sales in the same neighborhood to compare to, so the comparables are from other neighborhoods that may not have the same quality of life or amenities as the neighborhood you’re hoping to buy into. Sometimes, the home is subject to a bidding war that drives the price higher than its actual market or appraised value.

Traditional banks and mortgage lenders offer mortgages for a percentage of the appraised value, not the sales price or the offer you’ve made. If the appraisal is less than the agreed upon offer you may need to come up with more cash, but sometimes there are other options:

Get a second appraisal. Yes, you can ask for a second appraisal from another qualified appraiser. Of course, you’ll have to pay for it, but it’s a small price to pay for getting the house of your dreams. Just know that the lender doesn’t have to accept the second appraisal … it’s value may be in appealing the first appraisal.

Appeal the appraisal. On the other hand, you can appeal the appraisal with the original appraiser. Review the appraisal carefully. Sometimes things get missed. Sometimes the comparables don’t really compare. Sometimes the appraiser doesn’t have all the information. Give as much information to the appraiser as you can. In recent markets, short sales and foreclosures of similar properties might skew the comparable data too.

Review the appraisal contingency clause. A contingency clause means that if the appraisal comes in lower than expected, you can renegotiate with the seller. Of course, they are not obligated to use the appraised value, but they may be willing to cover closing costs or other expenses so that you make the purchase. Sometimes the real estate agent(s) will take a lower commission to compensate for the difference.

You can agree to pay the difference, but you are betting on the price of real estate increasing, so you really wouldn’t want to do this unless this is your absolute dream home.

The best way not to have a disappointing appraisal is to work with a real estate professional that knows the market well and can advise you of fair market values ahead of your making an offer.

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Celebrate your new home with a backyard barbecue!

Nothing speaks independence like owning your own home. If you’ve rented for most of your adult life, the freedom to paint walls, barbecue on the patio or hang party lights in trees is a special feeling. As July 4 rolls around, here are some ideas to celebrate you new home:

BYOM cookout

If you’ve just bought your home, you may be a little cash poor. That doesn’t mean you can’t celebrate with your friends and family. Just invite all guests to a potluck and have them bring their own meat (BYOM) to barbecue and a side dish or dessert to share. Everyone loves to share a favorite recipe and no one will mind helping foot the bill. Just make sure you have hot coals or a big enough gas grill for everyone to cook on.

Plan a few extras that won’t break the bank like watermelon wedges and iced drinks.

Decorate the yard

Get your kids in on the action too! Let them decorate with hanging lanterns, flags or pendants or red, white and blue streamers. Create table centerpieces from citronella candles (to keep those pesky mosquitos away), small buckets with flowers or patriotic wreaths, hang bunting swags on the fence or porch rails

If you haven’t done your landscaping yet, choose red, white and blue flowers to put in pots, hanging baskets or your flowerbeds for the big day. Add garden décor such as pinwheels and flags, and stars and stripes of any sort.

If your area allows fireworks, plan sparklers for the kids (under supervision, or course) and fireworks for the whole family.

Most of all, celebrate your freedom

Owning your own home is special and it’s part of the American Dream, so celebrate that you’ve stepped into what President Obama called “the most tangible cornerstone that lies at the heart of the American Dream, at the heart of middle-class life.”

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Okay, there’s really not a simple way to relocate … after all, you’re uprooting yourself, moving away from friends or family or both, leaving your comfort zone and launching out into the world. But, there are some things you can do to make it less stressful for yourself and your family. Each year, nearly 20 percent of the American population makes a move, so there is lots of tried and true advice for relieving some of the anxiety about your move.

Moving

The best advice you can receive when relocating is to be as organized as possible. Organizing may seem like a hassle when you’re in a rush to move, but arriving at the other end and starting a new job, new schools for the kids and setting up a home can be extra stressful when you can’t find your shoes or belt, don’t know which box has the coffee-maker or where your kids’ backpacks are. Lots of online sites are devoted to various organizational methods—some more complex than others—but finding one that works for your style should be one of the first things you do.

Create a checklist so that you don’t forget to move your satellite service, turn of the utilities or forget to pick up your kids’ school records. Utilize your smart phone or tablet to document which boxes contain which items. Number them or color-code them so that movers can deposit them in the correct rooms as they unload your belongings on the other end.

Selling

If you own a home and need to sell it before you can relocate, you’ll need to consider the best way to sell quickly. Managing a home sale from out of the area is possible, but can add lots of stress to your new situation … and having a home three states away that isn’t selling can cause tremendous financial burdens as well. Regardless of how quickly you need to make the move, in order to sell your home quickly and relieve you of having to think about it while you’re preparing to move, you must price your home correctly for the market. Your real estate professional knows the area, knows the market and can help you set the right price.

If you need to move soon, follow your agent’s advice on the most important upgrades, fixes or staging your home needs to be most appealing to buyers. This is not the time to consider major remodels, but you do want everything fresh and sparkling clean, with attractive and well trimmed landscaping.

If your home doesn’t sell

If your home doesn’t sell before you need to move, you have a few options available to you. Your agent could sell the home for you in your absence. Or, you can let your home become a rental. Before you think about becoming a landlord, however, let your real estate agent introduce you to a property manager. In fact, many real estate agencies and brokerages have property management services ono their team. You want someone handling the paperwork, marketing your home to potential renters, receiving payments of deposits and rent, and taking care of repairs and other requests from your renters.

Buying

You may already know the area of town you want to live in your new city, so by all means, work with your real estate agent to find the perfect property for you … but if you just aren’t sure, take the time to lease in the area you think you might like to live. Leasing temporary housing for three to six months while you test the waters in an area can save you from making a purchase you may be sorry for later. Look for the best house to lease at amh.com. It also gives your real estate professional more time to find just what meets your needs. Often, your real estate agent can help you find a place to lease so that you can get settled while you look for the perfect home.

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