real estate • value • June 4, 2018

What’s in a Home Value?

by Kappel Gateway Realty

moving • April 23, 2018

Top 10 Damaged Items When Moving & How to Protect Them

by Kappel Gateway Realty

Nearly 40 million of us move in the summer and begin to plan in April. If you are moving this season, we want to help you protect your precious belongings and make your move a smooth one!

Before you start to pack, make a game plan. Which of your items are fragile? What will you need to pack them? We’ve seen some folks pack themselves so, unfortunately, we know which household items are most likely to break and typically aren’t packed properly. We have compiled a list of the top 10 items damaged when moving. It’s surprising what items make the list. Not only have we complied the most breakable list, we’ve included tips on how to protect them properly so you can “break” this pattern.

1. Drinking Glasses

It is no surprise glasses are the #1 breakable. But, with simple steps you can ensure they arrive in one piece.

Protect: One of the key factors to keeping your glasses and wine glasses from breaking or getting crushed is using the proper box. Use a “dishpack” box that has double thick walls for extra protection. Place a glass on packing paper horizontally. Grab a corner of the packing paper and roll the glass into the paper. Make sure to tuck the sides of the paper in, like you would do wrapping a burrito. Repeat 3-5 times (depending on thickness of glass) with more sheets of packing paper. Make sure to label your glass burrito: “Wine Glass” so it won’t get tossed aside with the packing paper during the unpacking process. Cushion the bottom of box with crumpled packing paper. Place the wrapped glasses vertically (yes, you read that correctly: VERTICALLY) in one layer in the box. They are much more secure vertically. After completing the first layer, place packing paper on top. Repeat these layers until the box is full. Fill all remaining space with crumpled packing paper.

2. Plates

The biggest moving crime — plates are often placed in boxes without enough packing paper. You don’t want to hear the dishes rattle in the box!

Protect: To keep plates from breaking, first wrap each plate in packing paper. Repeat 3-5 times with more sheets of packing paper until the plate is properly secured & cushioned. Label your little plate package: “Plate.” Again, use a secure dishpack box. Always, use plenty of tape on the bottom and tops of every moving box, just don’t use one strip of tape, use multiple strips and run the tape both directions to make sure that box is secure. Before placing any of the wrapped plates in the box, cushion the bottom of box with crippled packing paper. Then place the wrapped plates VERTICALLY in one layer in the box. After completing one layer, place packing paper on top. Repeat these layers until the box is full. Once the box is full, fill any remaining space with crumpled packing paper.

3. Artwork

Glass artwork often breaks because there is not enough cushioning in the moving box and the top of the box is left with a gap. The top of the box then collapses and the piece of art breaks.

Protect: To protect artwork from breaking use a picture box. Line the bottom of the box with crumpled paper. Place the glass art in the box, then stuff front, back and along the top with paper and or eco-bubble wrap. You want to be sure the box is completed packed with paper (top, bottom and sides) with no air gaps.

4. Lamp Shades

Lamp shades are an awkward shape and large, making it difficult to pack. If not packed properly, they can easily be dented or torn.

Protect: Wrap the lamp shade in eco-bubble wrap, covering every inch. Then fill the interior cavity of the lamp shade with packing paper (do not use newspaper as the print may rub off onto your lamp shade). Fill the box with enough packing paper to keep the shade from shifting around inside. Do not place anything on top of the shade, not even soft items such as linens. Use only packing paper to secure the lamp shade from shifting.

5. Liquid Cleaning Supplies

Many times homeowners pack bottles of liquid cleaning supplies without sealing them properly. This causes leaks and damages things inside and outside of the box. Do not pack or move flammable supplies!

Protect: First, remove the cap from each bottle and place a small piece of plastic wrap over the opening. Then tightly screw the cap back on. Use tape again to secure the cap to the bottle. Begin placing the cleaning products in a small book size box and check the weight as you go. You don’t want to pack the box too heavy. When the box is full and not too heavy, place packing paper all around the bottles to keep them from shifting. And, this is important, remember on every box be sure to use more than one strip of tape on the bottom and top of the box and run the tape in multiple directions. When a box is not taped properly, boxes can open at the bottom and spill on the floor. Always, label every box with its contents, room in the new home where the box should go and directional arrows pointing up. Repeat the label on each and every side of the box. You will hate us for this tip while you’re writing and rewriting the same thing over and over again and love us later when you have stacks of boxes and don’t have to turn boxes around to find out what’s what.

6. Wine & Liquor Bottles:

Again these bottles can easily leak or break, and damage items in and outside of the box.

Protect: Use a divided/cell box you can get free from a specialty wine shop or liquor store, or purchase a cell kit from a moving store. Use smaller boxes so they are easy to lift and carry. Again, be sure you double and even triple tape the bottom of the box. If you’re packing opened bottles, ensure they are properly sealed by tightening the caps. Tape the caps on to the bottles. Roll each bottle in packing paper with 3-4 layers of paper. Secure the wrapping with tape and make sure there are no loose ends. Label the bottle: “Bordeaux.” Finally, place the bottle into the box. If there’s any space or gaps between the bottle and the divider, fill it with paper. Make sure the box is not too heavy.

7. Mirrors

The big mistake with mirrors is that people pack them in picture boxes without any eco-bubble around the mirror. If the front of the mirror faces the wall of the box without protection, it will break.

Protect: Use a flat box or have your movers pack the mirrors in a custom wood crate to provide extra protection. If you’re doing the packing, line the flat box with crushed packing paper to create a padded bed for the mirror. Wrap the mirror completely in multiple sheets of paper or eco-bubble. Tape the wrapping tightly around the mirror and place the mirror in the box. Fill any gaps with more crumpled paper. Only pack one mirror to a box.

8. Glass Pictures

Glass picture frames are easily broken if not packed in the right box. We want to keep those precious memories in one piece!

Protect: Use a picture box. Line the bottom of box with crumpled packing paper. Wrap each picture frame in packing paper or eco-bubble and pack each frame in the box vertically. Stuff packing paper in between each picture and on top, making sure nothing will shift.

9. Stereo & Audio Equipment:

The reason stereo and audio equipment gets damaged is folks stack a few components in the same box and they do not put any layers of padding in-between the pieces of equipment.

Protect: If possible, pack your stereo equipment in their original cartons. If you did not keep their original boxes, use a dishpak box. Remember, dishpaks are specially designed boxes to handle and protect fragile items. If you can’t find dishpaks, use double corrugated boxes. After double taping the bottom of the box in the both directions, pack the bottom of each box with crumbled packing paper for padding. Wrap each electronic component separately in eco-bubble. Pull the wrap over and tape it all together. Make sure the item is completely covered. Place it up right, vertically in the box. Repeat this process for the next big item then place it vertically in the box next to the first item. Do not stack! Stuff packing paper in open spaces and on top for extra cushion.

10. Books:

This one is a surprising one, but if books are packed improperly they can actually get damaged. When books are placed too tight together the edges get folded and covers get damaged. Also, if books are packed with too many air pockets/gaps inside the box they can shift during transportation and get damaged (smashed corners, wrinkled covers, etc).

Protect: Use a book box. Place books flat, horizontally and stack them with the heaviest books on the bottom and the paperback books on top. Be sure not to make the box too heavy. Pack paper on top and sides if there are any air gaps.

With these steps your move will be unbreakable! Remember, you can always do some of the packing yourself and leave the rest to the professionals.

buying • community • family • Location • neighborhood • parent • real estate • Resale Value • schools • Uncategorized • July 8, 2017

No Kids? Here’s Why You Should Still Buy in a Good School District

by Kappel Gateway Realty

Even if you don’t have kids, buying in a good school district is always a good decision — if you can afford it.

Ever hear the old adage “Location, Location, Location”? Well, here’s more proof!

Learn why buying in a top-notch school district can benefit you — even if you don’t have kids.

Living in a good school district doesn’t just bring better teachers, better books, and better test scores — it also can help preserve home values and ensure faster resale rates.

It’s a smart move to consider the quality of school districts in your home-buying decision — although there are pros and cons to buying in top-notch school regions. Parents hoping to land a good home deal and give their kids access to a high-quality education have several costs to weigh. If you do the math, you’ll find that pricier homes in a strong public school district may actually be better bargains than affordable homes in districts where many children attend private schools.

Seeking good public schools

Many buyers search for real estate by school district, and say school districts are among the key factors in their home-buying decision. In a recent Trulia survey, 19% of Americans indicated that their dream home is located in a great school district. But among parents of children under 18, the percentage of Americans who want to live in a great school district jumps to 35%.

How can you tell if your potential new home is in a district that makes the grade? Consider the age of the schools, the condition of their facilities, the student-to-teacher ratios, and, of course, standardized test scores.

The bigger picture

It’s not as simple as it may seem to draw conclusions between school districts and real estate, though. A poorly ranked public school district doesn’t necessarily mean that the overall quality of local education there is poor.

And there are private schools to consider as well. Parents looking for homes in lower-rated districts but who still want quality education may need to factor in the cost of a private education, which runs well into the thousands per year. Tuition rates vary widely, but the average tuition cost is $10,940, which is the same as $912 per month in mortgage payments, according to a 2014 Trulia analysis.

Put it this way: A homeowner with a $1,326 mortgage payment on a $300,000 house who is also paying the $912-per-month average tuition could, in effect, afford a $520,000 house with public school education in a better-quality school district. Because home prices and school tuitions vary so widely, buyers will have to calculate these differences on their own (and obviously there are more factors than just local school districts and housing prices that drive real estate decision making).

Considering the future

When it comes to resale value, though, even for buyers without children, investing in a home in a good-quality school district can pay off. Homes in good school districts tend to sell faster than homes in lower-quality school districts. And during tougher economic times that trigger declines in home values, homes in better school districts usually hold their value more than homes in lower-quality school districts.

On the downside, these homes in better school districts also tend to be more expensive. Buyers here will pay higher property taxes, and much of that money will be allotted right back to the schools. For childless buyers, that’s no bargain. But in general, buying in a good school district does matter and, with more stability in home prices and more savings from costly private school education, it usually works in favor of the buyer.

Source: Trulia Blog

buying • investing • investor • Location • real estate • rental • tenants • Uncategorized • July 8, 2017

The Basics of Buying Investment Properties

by Kappel Gateway Realty

With this terrific checklist, you, too, can be on your way to being a savvy investor!

Everyone wants a magic and immediate path to wealth. The bad news? The path doesn’t exist. Wealth is attainable through more conventional means. If you come to understand the real estate industry and if you deepen your own firsthand experience as you buy and sell investment properties, you’ll be on the road to success.

Along the road, there are six core principles that will make or break each real estate investment deal. They are the most important concepts you will learn. I call them the Big Six. With each successive deal I negotiated, I grew to recognize the common elements. The Big Six are part of a sequenced step-by-step formula that enables you to identify and purchase the right income property at the right price.

The elements of the Big Six Formula that will guide you into the basics of buying income properties are the following:

Location
Location is the single most important component of any real estate deal. It is crucial in determining your investment success. Look for properties that are situated in an “A” location. Such locations include the socioeconomic levels of the people who live or work in a particular neighborhood, its proximity to shopping centers, public transportation, crime levels, the nearness of prestigious universities and medical facilities, traffic congestion, zoning restrictions, the quality of schools, fire and police protection, and even the reputation of the local government and its officials.

Building Quality and Design Efficiency
Design efficiency interfaces with building quality. When you find an investment property you’d like to buy, you will need to scrutinize both elements. Look for properties that far exceed minimum construction requirements and that have useful and innovative design elements. This will not only make the property attractive to tenants but will add value to the property in the future. Design features on apartment complexes that stand the test of time include walk-in closets, large kitchens with windows, and his-and-her bathrooms. In an office building, a common area factor of 15 percent is desirable as well as a ratio of four parking spaces for every 1,000 square feet of rentable space.

Tenant Profile
Tenants can represent either an asset or a liability in an investment. When you invest, your mission is to make sure your tenant profile is the former and not the latter. Just as you want a well-constructed and well-designed property, you’ll want stable tenants who are a good match for your property and have appropriate lease agreements. Find out how much rent is generated and whether it is at market rate or under market. You want to focus on finding an income property that offers the opportunity to increase rental income and, by doing so, multiply the value of the property so that you can resell it at a substantial profit.

Upside
This fourth element refers to the cash flow growth possibilities offered by a particular property along with the likelihood that the property will increase in value. A property may cost $1,500,000 to construct, but if it brings in only the income of a $900,000 property, then it is worth only $900,000. The key to increasing value lies in buying a solid Class B property in an “A” location where the rents are under the market, the leases are short term, and there are no options to renew the leases.

Financing
In the musical Cabaret, there is a song with the lyrics “Money makes the world go around.” It could just as easily be used to describe real estate’s role in the economic landscape. The free flow of money and access to credit is what adds vibrancy to property investment. Before you get started, you’ll need to get a number of finance-related items in order. The first thing you should do before applying for a mortgage loan is to review your credit reports and your credit scores. Also, learn the terms, understand the components of a mortgage and how they interact, and be open to the full range of financing options available. Banks and other financial institutions make money from mortgages. They are willing to negotiate. Be creative—you may be surprised at the terms you’re able to obtain from a bank or insurance companies, especially in today’s low interest rate environment.

Price
The successful evaluation of a property’s price has to do with how much information you can gather about a seller and the property than it does about the price tag on the real estate deal. You must look at the value of the property, which is not the same thing as its price. The crucial concern is not just how much the property costs, but what kind of income it can generate for you. A property may be architecturally perfect and engineeringly sound, but if you’re locked into long-term, under-market lease rates, the value will be eroded.

If you master these principles, wealth will be within reach. However, it’s not enough to just understand and utilize the Big Six. You must execute them in order. That’s because they all fit together snugly to form your customized real estate formula.

Source: RisMedia

buying • Dogs • first time buyers • Homeowners • insurance • Pools • real estate • security • Uncategorized • May 30, 2017

First-Time Homeowners: Everything You Need to Know About Homeowners Insurance

by Kappel Gateway Realty

Oh my…this is a MUST READ for First Time Home buyers! Don’t leave home without it!

What exactly is home insurance and do I really need it?

Ready to buy your first home? Before you dot the I’s and cross the T’s on your mortgage, it is important to understand the ins and outs of homeowners insurance.

Without homeowners insurance, a property buyer is unlikely to secure a house. Homeowners insurance protects a residence and the items stored in a residence against disasters. Therefore, if your home is suddenly destroyed in a hurricane, tornado or other natural disaster, homeowners insurance guarantees you are fully protected.

Homeowners insurance should be simple, but there are many factors to consider as you evaluate all of the coverage options at your disposal.

Now, let’s take a look at five common questions about homeowners insurance.

Why Do I Need It?

There are two reasons why homebuyers must purchase homeowners insurance:

It enables you to protect your assets. Homeowners insurance safeguards the structure of your home and your personal property. It also protects you against liability for injuries to others or their property while they are on your property.
Your mortgage lender probably requires you to have it. Most lenders will require you to maintain homeowners insurance for the duration of your mortgage. A lender usually will require you to list the company as a mortgagee on your homeowners policy. Moreover, if you let your homeowners coverage lapse, your mortgage lender likely will have your home insured at a much higher premium and with less coverage that what you had in the past.

Homeowners insurance is a must-have for homeowners, without exception. If you allocate the time and resources to find the right homeowners coverage, you should have no trouble protecting your house and personal belongings for years to come.

How Does It Work?

Generally, homeowners insurance is considered a package policy because it includes a combination of coverages. The package policy focuses on the following areas:

Dwelling: Covers the costs associated with damage to your home and structures attached to it, including any damage to electrical wiring, heating systems or plumbing.
Other Structures: Ensures you’re protected against damage to fences, garages and other structures that are on your property but not attached to your house.
Personal Property: Guarantees you’re covered for the value of possessions like appliances, clothing and electronics if they are lost or damaged. This coverage applies even when your personal property is stored off-site, like in a storage unit or college dorm room.
Loss of Use: Provides financial assistance to help you cover some of your living expenses if you need to temporarily vacate your house while it is being repaired.
Personal Liability: Offers protection against financial loss if you are sued and found legally responsible for injuries or damages to someone else.
Medical Payments: Covers the medical expenses for people who were hurt on your property or by your pets.

Clearly, there’s a lot to consider as you evaluate a homeowners policy. Review your coverage options closely, and you may be better equipped than other homeowners to secure your house and personal belongings effectively.

Are There Homeowners Coverage Limits?

You should get homeowners insurance that covers the full replacement cost of your home, not just the market value of your residence.

The replacement cost and market value of a residence may seem identical at first. But upon closer examination, it becomes easy to understand why you’ll want to purchase a homeowners policy that offers protection for the full replacement cost of your house.

For homeowners, the replacement cost refers to the total amount it would cost to rebuild or replace your home if it was completely destroyed. This cost may vary based on your home insurance provider and usually accounts for the plans and permits, fees and taxes and labor and materials that you would need to replace your house. However, the replacement cost does not account for the value of the land associated with your home.

On the other hand, the market value reflects what your home is worth today. It fluctuates based on the current condition of your house, the real estate market and various economic factors.

The market value of your home commonly proves to be great indicator of what your house may be worth if you intend to sell it in the near future. Conversely, when it comes to homeowners insurance, it is always better to err on the side of caution. If you calculate the full replacement cost of your home, you can insure your residence appropriately.

Are There Optional Homeowners Insurance Coverages?

Believe it or not, a standard homeowners policy won’t cover everything. As such, you may want to consider adding some of the following optional coverages to supplement your homeowners policy:

Flood Insurance: Floods rank among the top natural disasters in the United States, and even an inch of water can cause severe property damage in a short period of time. The National Flood Insurance Program (NFIP) offers flood insurance coverage that will protect your home for up to $250,000 and your personal property for up to $100,000. Keep in mind that there often is a 30-day waiting period before a flood insurance policy goes into effect. This means if you want to buy flood insurance in the days leading up to a hurricane, you may be out of luck.
Earthquake Insurance: Many Western states are prone to earthquakes. In California, Oregon and Washington, earthquake coverage is available from multiple insurance providers. Or, if you live outside these states and still want to purchase earthquake coverage, your state’s Department of Insurance can help you find licensed earthquake insurers.
Daycare Coverage: If you take care of a friend’s children and are unpaid, your homeowners insurance offers limited liability coverage. Comparatively, if you provide daycare in your house, you will need to purchase insurance to cover the related liability.
Additional Liability: You can purchase additional liability coverage any time you choose. These add-ons may require a nominal premium but sometimes makes a world of difference for homeowners.

Of course, if you’re unsure about which coverages you need, it always helps to consult with an insurance agent. This insurance professional will be able to respond to your homeowners insurance concerns and queries and help you get the coverages you need, any time you need them.

How Much Will It Cost?

There are several factors that will affect your homeowners insurance premium, including:

Attractive Nuisances: If you have an attractive nuisance like a swimming pool or trampoline, you may have to pay more for homeowners insurance than other property owners.
Coverage Options: Adding flood insurance, earthquake insurance and other coverages may cause your homeowners insurance premium to rise.
Home Protection System: If you have a home burglar alarm, security devices for windows or deadbolts on doors, you may be able to lower your insurance premium.
Pets: Some insurance providers won’t offer homeowners coverage if you own certain types of pets.
The Home Itself: Your house’s age, condition, construction and distance from a fire department and water source may impact your homeowners insurance premium.

Homeowners insurance premiums will vary from person to person. But those who take an informed, diligent approach to homeowners insurance can boost their chances of getting the best homeowners policy at the lowest rate.

Homeowners Insurance Tips

Let’s face it, homeowners insurance can be confusing, particularly for those who are searching for coverage for the first time. Lucky for you, we’re here to help you discover the right homeowners policy.

Here are five tips to help you secure homeowners insurance that meets or exceeds your expectations:

Shop around. Meet with various homeowners insurance providers and learn about different types of coverages so you can make an informed homeowners insurance decision.
Bundle your homeowners and car insurance policies. In some instances, you may be able to save between 5 and 15 percent if you purchase your homeowners and car insurance from the same insurance company.
Minimize risk across your house. Homeowners insurance offers immense protection, but you also can install storm shutters, enhance your heating system and perform assorted home upgrades to reduce risk across your home.
Look at your credit score. With a good credit score, you may be able to lower your homeowners insurance premium. If you don’t know your credit score, you can request a free copy of your credit report annually from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Keep in mind that only some carriers use credit scoring.
Stay with an insurer. If you find an insurance company that you like, stay with this company for several years, and you may be able to reduce your homeowners insurance premium over time.

There is no need to settle for inferior homeowners coverage. If you use the aforementioned tips, you can purchase homeowners insurance that guarantees your home and personal belongings are fully protected both now and in the future.

Source: CB Blue Matter

appraisal • buying • first time buyers • Homeowners • market trends • neighborhood • neighbors • Offers • real estate • research • Uncategorized • value • May 30, 2017

Does It Really Matter What Your Neighbor’s Home Sold For?

by Kappel Gateway Realty

Interesting food for thought. Depending on the dynamics of the other homes in the neighborhood, fair market values can vary.

Whether you’re buying or selling, remember that your neighbor’s sale price is just one piece of the puzzle. Whether you’re buying or selling, make sure you look beyond the data to get the big picture on home values.

After researching the sale prices of his neighbors recent home sales, Steve Rennie thought he knew exactly what his Kansas City, MO, house was worth. But when the Rennies decided to sell and started interviewing real estate professionals, they discovered they needed more and more relevant information. While the sale price of homes on your street can provide important insight into the price of a home you’re selling or buying, here are some of the other factors you should consider to make your best deal.

Unique or unusual home? Comparable sales may not exist

The Rennies quickly realized that recent sales near them wouldn’t be the perfect way to gauge their home’s value. We had interviewed several agents, and most came back with prices for homes that were not truly comparable to ours, because we had a unique older home in an area of newer ones, recalls Rennie. Eventually, the couple called real estate agent Dan Vick, vice president of RE/MAX Results in Kansas City, who offered a different perspective.

Since I didn’t have comps in their exact neighborhood, I went a half-mile away to find homes of similar age and style, says Vick. They’d said they wouldn’t list their home for one penny under $180,000, but based on my comps, I asked: Would you mind if I listed it for more? The house sold the first day it was on the market for $189,500. The Rennies were thrilled.

While comps give sellers a point of reference and an understanding of how strong the real estate market is, Vick suggests calling a professional familiar with your neighborhood to interpret comps properly and gauge what your home is worth. In newer subdivisions, especially if one or two builders have built the majority of the homes there, you can look at similar floor plans. But in older areas, that rule doesn’t apply, because you don’t have the same house four doors down the street.

Stick to the facts and expert advice when pricing a home

Even when you’ve studied comps and have noted relevant details about recent nearby home sales, it’s often easy for sellers to overlook important information when setting a price, says Michael Kelczewski, a real estate agent with Sotheby’s International Realty in Centerville, DE. I continuously encounter sellers who value their home above fair market price, he says. Cosmetically upgrading a kitchen or bathroom won’t usually generate a 100% ROI, so I’m tactful when explaining the reality of property valuations or asset depreciation.

Pricing your property appropriately, regardless of what your neighbor sold for, is key in today’s market, adds Matt Laricy, managing partner with Americorp Real Estate in Chicago, IL. A couple of years back, people would price a home high, get lowball offers, and be willing to negotiate, he says. Nowadays, with low inventory, many sellers are too aggressive: Their neighbor’s house sold in one day, so they think, I’ll overprice my place because I know I’m the only one on the block. But buyers are smart; they may not even look at it until the price comes down.

Bottom line? Don’t be greedy, Laricy says. If you price your home realistically, you’ll likely get more than one offer and net more money in the long run.

Understanding how agents set prices can help buyers score the perfect home

Buyers can benefit tremendously from checking what homes in their chosen neighborhood have sold for, says Laricy. In Chicago, we don’t do price per square foot, so knowing what a neighbors house sells for is huge, he says. If it sold really low, that’s good news for you as a buyer.

However, buyers sometimes overlook other crucial details in their quest to zero in on the best price, he adds. That can lead to a harder sale or lower profit in the future. In big markets like New York, Chicago, Miami, and LA, where people are coming and going all the time, you’re buying an investment, he explains. Buyers usually don’t think about value: why certain buildings trade at different rates now, which ones will trade higher than others in the future, and which neighborhoods are worth more. These are things you need an expert eye for.

He notes that younger buyers tend to neglect that all-important real estate factor: location. They chase kitchens and bathrooms, he says. They’ll buy in a less desirable location to get a nicer kitchen. You can always change a kitchen, but you can’t pick up a property and move it.

Yet even as buyers and their agents leverage comps to make a good buy, sometimes the heart wants what it wants, says Vick. I think you can get too caught up in the comparable data. If your buyers have looked at 15 homes, and this is the one they’ve fallen in love with, it really doesn’t matter what the comps are; you’d better go after it with a strong offer, he suggests. A note of caution to buyers: be careful not to overestimate a home’s appraisal value, since an offer that’s much higher than appraisal value could put your purchase at risk.

Buyers should bring their best offers from the start!

Especially in red-hot real estate markets, Laricy advises buyers to bid smart the first time or risk losing out to another buyer. Usually, buyers who lowball are the ones who end up missing out on two or three properties before actually getting something, says Laricy. Be realistic by putting in a strong offer upfront.

First-time homebuyer Corinne Hangacsi followed that advice before purchasing her two-bedroom townhouse in Wilmington, DE, this spring. We did our research through Trulia. Our real estate agent definitely clued us in to what was happening in the area, but we also looked at other comparable properties ourselves, she says. That in-person research helped Hangacsi feel comfortable making a strong initial offer. My biggest piece of advice for first-time homebuyers is to be patient and do your homework. Go with your gut; when you find the right place, you’ll know.

Source: Trulia Blog