Sue Graves' Blog
If you want to acquire the best house at the lowest price, it pays to conduct an in-depth home search. In fact, there are many reasons why you should perform a comprehensive house search, and these include:
1. You can define your dream house.
For those who enter the housing market without a clear-cut definition of a "dream home," there is no need to worry. If you perform an extensive house search, you'll be better equipped than ever before to differentiate home must-haves from wants.
Ultimately, the definition of a dream home varies from buyer to buyer. As you map out your homebuying journey, it helps to put together a list of house must-haves and wants so you can tailor your home search accordingly.
Once you determine what you want to find in your dream house, you can assess the housing market and search for your ideal home. Then, when you locate your ideal residence, you should have no trouble submitting a competitive offer and moving one step closer to buying your dream house.
2. You can avoid the dangers associated with paying too much for a home.
Oftentimes, it is easy to attend a home showing and submit an offer on a home. But if you do so without performing housing market research, you risk overspending to purchase your ideal residence.
When it comes to determining the best price for a house, it helps to look closely at real estate market data. This information can help you differentiate a buyer's market from a seller's market, analyze the prices of houses in your city and town and much more. Perhaps most important, reviewing housing market data may enable you to avoid the temptation to spend too much to acquire your dream home.
3. You can reduce the risk of purchasing a home that fails to meet your expectations.
An in-depth home search reduces the risk that you'll be forced to "settle" for a home that fails to meet your expectations. Instead, you can allocate plenty of time and resources to search far and wide for your ideal residence. And if you find your dream home, you can rest assured that you'll be able to purchase this residence and enjoy it for years to come.
Clearly, there is a lot to think about if you intend to buy a house in the foreseeable future. But if you collaborate with a real estate agent, you can receive expert support at each stage of the homebuying journey.
A real estate agent will learn about you and your homebuying goals. Next, this housing market professional will keep you informed about available houses in your preferred cities and towns and set up home showings. A real estate agent will even help you submit offers on houses and ensure you can get the best price on any residence, at any time.
Take the guesswork out of buying a house – consult with a real estate agent today, and you can get the help you need to make your homeownership dream come true.
For years home ownership has been the American dream, but, according to the Pew Research Center, a higher percentage of us are renters than at any other time in the last 50 years. Is that a bad thing? Not necessarily. For many people renting may be the right choice. Every individual and family needs to consider all the factors and make the decision that’s right for them.
The Financial Consideration
There’s a rule of thumb called the price to rent ratio. You get it by dividing the price of a house by the annual rent. For example, if you can buy a house for $300,000 or rent it for $1500 per month, the ratio is 300,000 / (12 * 1500), or 16.7. When the number is 15 or less, buying is the better choice, when it’s 16 to 20, renting becomes more favorable and when it’s over 20 renting is significantly better. However, this fails to take in factors like down payment amount, financing terms, taxes, insurance and other costs, which can vary widely. A more accurate number, telling you how long it will take to cover the up-front costs of ownership and pull even financially with renting, can be found using one of many calculators available.
The Other Considerations
While this sort of calculation is valuable, there are other questions, both financial and lifestyle-related, that the potential renter or buyer must ask.
What can I spend upfront for down payment and closing costs?
Can I afford a major repair such as replacing a furnace or air conditioner? There are insurance-like plans to defray some of that cost, but those make up another annual expense.
How long do I plan to stay? Selling a home and buying a new one is costly and time-consuming.
Which is more important to me, stability or flexibility?
Advantages of Home Ownership
As the inheritor of the American dream, the homeowner has some opportunities and privileges that the renter can’t enjoy.
Appreciation and equity. As home value rises and morgage balance drops, homeowners gain equity, which for many is their most valuable asset.
Freedom to remodel. There’s no landlord telling you what you can and can’t do with your property.
Stable monthly payments. Taxes and insurance can increase, but principal and interest payment remains the same. If you stay there long enough, eventually you’ll have no principal/interest to pay at all.
Tax advantage. For most people, it isn’t what it was before the 2017 tax changes, but interest and taxes may still be deductible.
Stability. You can become a member of your neighborhood and your children can stay in the same school system. No landlord can decide to sell and give you notice.
Advantages of Renting
No large upfront expenses.
Your landlord is responsible for major repairs.
Still some opportunity to build credit by paying rent promptly.
You have less at risk. You won’t be affected if property values fall.
Flexibility. If you choose to move you can easily give notice and do so.
Here’s one last question: which feels better, the satisfaction of owning your own castle or the freedom to change your life quickly? The answer may go a long way toward pointing you in the right direction.
As the workforce changes and a growing number of companies seek out contractors and freelancers, many Americans find themselves in a gray area when it comes to their income. They may put in full-time hours, but on their taxes they work for themselves.
Mortgage lenders are cautious about who they lend to. They want to make sure you are a low-risk investment who has reliable, predictable income to ensure that they’ll earn money off of your loan.
This can sometimes make it difficult for freelancers, contract workers, or the self-employed. Not only might your taxes be unconventional, but your income could vary depending on the time of the year and the amount of business you receive.
It’s easy to see why many people would be anxious about applying for a mortgage under these circumstances. However, if you’re self-employed, there’s no need to worry. You can still get approved for a mortgage at a fair interest rate--you just need to do a bit of work to provide the right documents to your lender.
In this article, we’ll show you what documents and proof of income you’ll likely need and how to present it to a lender to make the process run as smoothly as possible to get you approved for your mortgage. Here’s what you need to do.
Organize your records
Before applying for a mortgage, it’s a good idea to take a look at your record-keeping process. As a self-employed worker, you’re probably already used to tracking your own income. However, this will help the lender analyze your income easier and move the process along more quickly.
Having a master spreadsheet of your dated invoices, paid amounts, and the names of your clients is a good place to start. You’ll also want detailed, easy to read information for your previous employers, landlords, references, and any other information you think will be pertinent.
Next, gather your tax documents for the last three to five years. As a self-employed worker, you likely file a Schedule C (Form 1040) and a Schedule SE. Make sure you have copies of these forms.
Dealing with deductions
Many self-employed workers write off business expenses in their tax returns. Travel expenses, internet, and other costs associated with doing business are all ways to save by reducing your taxable income. Doing so can save you money, but it can also reduce your net income which is what lenders will see when you provide them with your information.
If you’re hoping to get approved for a bigger loan, one solution is to plan your taxes in the year prior to applying for a mortgage. Make fewer deductions than you normally would to increase your net income.
Be ready to clarify
When a mortgage lender is reviewing your information, make sure you are open and available to provide any information that can be helpful to them in considering your application. Being prompt and accurate with your responses will signal to your lender that you are willing to work with them.
Everyone defines the term "quality of life" differently, but if you asked 100 people, you'd probably hear a lot of similar answers.
According to a Gallup study entitled "The State of American Well-Being," the basis for a good quality of life includes having a sense of purpose, feeling good about what you do every day, having supportive relationships, being motivated to achieve your goals, being able to effectively manage your finances, having the energy and health to pursue your interests, and sharing a sense of community pride. Feeling safe and liking where you live were also key ingredients in the formula for a high quality of life .
The Gallup/Sharecare report focuses on several aspects of community life, such as the role local governments play in offering amenities and resources to citizens. The study concluded that "communities that invest in active living, including bike paths, parks, walkability and public transit, have residents with better health and well-being outcomes."
While factors such as the quality of school districts and low crime rates are often foremost in the minds of house hunters, there's also a lot to be said for communities that offer public recreational facilities, educational programs, cultural events, and services that promote health, safety, and a clean environment.
Advantages that can help make one community more desirable and family friendly than another can range from free outdoor concerts and public tennis courts to the availability of farmers' markets and clean, updated playgrounds. Other features which can positively impact the quality of life in a community include well-maintained roads and bridges, the availability of dog parks, community parades, and programs to encourage the proper disposal of drugs, electronics, household chemicals, and recyclable products.
At the neighborhood level, quality of life is often measured by factors like noise, the condition of nearby properties, the overall safety and security of the area, and the amount of street traffic. Clean air, mature trees, and friendly neighbors can also contribute to a wholesome living environment that can be enjoyed for generations.
While there are many advantages to designing your own home or buying new construction, one might need to make short-term sacrifices when it comes to things like noise, neighborhood aesthetics, and other temporary inconveniences. Your real estate agent or home builder can probably fill you in on things like construction timetables and project completion dates.
If you're in the market for a new home, it's always a good idea to clarify in your own mind what you and your family needs to feel comfortable, happy, and secure. Creating a priority list of needs, desires, and preferences not only helps you stay focused in your real estate search, but also increases the probability that you'll be satisfied with your new home on a long-term basis.
Buying a condo may seem like an uphill climb, particularly for those who are browsing the real estate market for the first time. Lucky for you, we're here to help you take the guesswork out of finding the right condo.
What does it take to locate a high-quality condo at an affordable price? Here are three tips that every first-time condo buyer needs to know.
1. Explore a Wide Range of Condos
The real estate market is filled with many first-rate condos, and the sheer volume of properties that are available may feel overwhelming at times. Therefore, you should allocate the necessary time and resources to find a condo that suits you perfectly.
Don't be afraid to check out several condos over the course of a few days or weeks. By doing so, you can better understand what you'd like to find in the ideal condo.
Of course, if you fall in love with a condo, you should be ready to submit an offer. That way, you can avoid the risk of missing out on a great condo that matches or exceeds your expectations.
2. Determine How You'll Pay for a Condo
Many property buyers get pre-approved for a mortgage, and for good reason. With a mortgage in hand, you'll know exactly what you can afford as you review the real estate market.
Meet with a variety of banks and credit unions. These lenders will be able to provide you with multiple mortgage options and respond to your financing concerns and queries.
Also, keep in mind that the price of a condo may extend beyond your monthly mortgage payments.
In many instances, condo communities have homeowners' associations (HOAs) in place that will charge monthly fees. Learn about any HOA fees in advance, and you'll know exactly what you'll need to pay each month to live in a particular condo community.
3. Work with a Real Estate Agent
No one should be forced to evaluate condos on their own. Fortunately, you can hire a real estate agent to streamline the process of finding a terrific condo.
A real estate agent with condo experience understands the hurdles that may arise during a condo search. As such, he or she will do whatever it takes to ensure you can get the best results possible as you look for the perfect condo.
For instance, a real estate agent will set up condo showings and keep you up to date about open houses. This real estate professional will even negotiate with a condo seller on your behalf, which means you won't have to worry about breaking your budget to purchase a stellar condo.
Employing a real estate agent enables you to get expert advice at each stage of the condo buying process too. Thus, you can receive instant responses to your condo buying questions at any time.
Simplify the process of buying your first condo – use the aforementioned tips, and you can boost your chances of acquiring a superb condo at a budget-friendly price.