4 Tips to Selling an Inherited Property

Selling an inherited house can be draining. Coldwell Banker gives 4 tips on how to successfully prepare, organize and sell your inherited house.

One difficult topic real estate agents routinely have to discuss is about selling an inherited home from a parent when they pass away. It is a situation that is an overwhelming experience, one filled with emotions and many questions. While talking about it is difficult, it is smart to be prepared. This includes having conversations as a family to determine who will be included in the will to inherit the home, where the deed to the home is kept and where other paperwork is located.

After the estate has been settled and the home received as an inheritance, deciding to sell, rent or keep the home is the first step which will help determine what to do next. For those who decide to sell the home, it is a good idea to work with a team of professionals including a lawyer and a real estate agents who can offer advice and guidance throughout the process.

Although each situation is unique, the professionals at Coldwell Banker have provided the following four tips to help prepare to sell an inherited home:

Assemble a strong team of professionals. Working with a real estate agent, lawyer and potentially a tax specialist can help make the process of selling an inherited property go more smoothly. A team of professionals can give the guidance necessary to prepare the home for sale and get all of the affairs in order. A real estate agent can offer crucial, local market information that is especially helpful if the heir does not live nearby. Lawyers and tax specialists can help put all of the processes in order to ensure that selling the home is as easy on you and your family as possible.

Do a home walk through and get organized. Going from room to room and looking at everything from the condition of the floors to how fresh the paint looks can help determine what may need to be done to the home to help it sell more quickly. If the inherited property is older, a home inspection is important before making any decisions as there may be certain systems that need renovations. Equally important is to gather all of the necessary paperwork such as the deed to the home as well as researching whether there are any mortgages on the inherited property that need to be paid. Even if the original mortgage was paid off, a reverse mortgage may have been negotiated to help cover expenses. Also looking into local property taxes and when they were last paid is important.

Have the home appraised and price it correctly. Property received as an inheritance is not considered to be income by the beneficiary. The adjusted basis of a home is its fair market value at the time it was inherited, so it is important to get an accurate appraisal of the home. A real estate agent can also provide counsel on an appropriate listing price to match market value. Out-of-town beneficiaries can also find it difficult to select competent appraisers, inspectors and other professionals to assist in the home selling process, all of which a real estate agent can assist with.

Consider staging or other cosmetic improvements. Although not necessary in all markets or price ranges, home staging can be the difference in getting a home sold in a price-competitive market. An inherited property may not be furnished in the style of other local homes on the market selling at a similar price. A real estate agent can help determine whether or not home staging is a good fit for a specific situation. They may also suggest making home design improvements such as repainting rooms and/or landscaping the yard or other parts of the property. Make sure the lawn and landscaping look good and that the exterior of the house is in good condition. Low curb appeal can keep potential buyers from researching a home they may otherwise love. Perhaps most importantly, having an experienced real estate agent to answer questions quickly and accurately frees up time to devote to other activities and events.

Find more information on selling your home on the Coldwell Banker Blue Matter blog.

Source: Coldwell Banker Blue Matter blog

Posted on August 8, 2017 at 9:45 am
Kappel Gateway Realty | Category: appraisal, Bidding, buying, Charity, closing, closing costs, curb appeal, distressed properties, Homeowners, investor, market trends, mortgage, open houses, real estate, Sellers Market, selling, Uncategorized | Tagged , , , , , , , , , , , , ,

How To Win A Bidding War Without Overspending

Winning a bidding war requires tactful strategy. What’s your next move?

Right now we are in a Seller’s Market here in Solano County. Oftentimes that means multiple offers over list price. It can be a frustrating and exhausting process. Read on for strategic tips!

It’s possible to win a bidding war without paying a cent more than you budgeted for.

 How To Win A Bidding War With Multiple Offers On a House

  1.  Know what you can really afford

    As far as emotional purchases go, buying a home ranks right up there with choosing a wedding dress — only the financial stakes are much higher. Unless you know ahead of time exactly how much house you can afford, you could easily be sucked into spending too much. Your lender or financial adviser can help you determine that number. Then it’s time to play ball.

    “Submit your best and final offer early,” says Skyler Irvine, senior partner at Myriad Real Estate Group in Phoenix, AZ. “If $1,000 keeps you from pulling into the driveway of your dream home just because you wanted to play hardball, then you might regret this more than you can imagine.” But the flip side is also true. “If you get outbid because someone offered more than you were comfortable with spending, then you didn’t lose anything and made a smart financial decision.”

    Here’s a real-life strategy from a client of Naples, FL, agent Gordon Campbell on how to submit the best offer in a “best and final” situation without going too high: “They simply added a clause stating that they would pay $1,000 more than the next ‘best and final’ capped at the original price as seen in the MLS.” The outcome? “They got the property for slightly more than the other bidder.”

  2.  Talk with the listing agent

    You can put in an offer, but unless your agent makes the effort to speak with the listing agent, your offer, in a multiple offer scenario, will probably not stand out. Gary Hughes, a Virginia real estate agent, recently received 13 offers for a property he listed. “Twelve were just emailed, and the buyers’ agents did not speak to me,” he says. But one agent called and had the lender follow up. “The lender and the buyer’s agent were able to address a concern in a way that assured me it would get to settlement. It wasn’t the highest offer, but it was close. Those conversations made all the difference.”

  3.  Propose a shorter closing

    It’s always beneficial to find the seller’s motivation for selling (if you can). Let’s say they just accepted a new job in another part of the country. This seller is probably highly motivated to sell quickly. “If you can close the deal in two or three weeks, you may win over the higher offer that comes with a six-week closing period,” says Eric Bowlin, a real estate investor.

    But just how do you go about closing faster? Here’s one way: “Tighten up your inspection time frame so sellers know that they can get through to a closing date quicker,” says William Golightly, a Florida agent.
    Buyers can also be preapproved, or even better, get a conditional approval, from their lender. Going through the mortgage process first allows you to close just as fast as all-cash buyers do.

  4.  Rent the house back to the sellers

    Some sellers aren’t interested in a short closing at all. In fact, the opposite could be true. Sellers who don’t have to sell quickly but who are just making a change, such as downsizing or upsizing, might want a long closing or some sort of flexible deal to give them time to find their new home. “Being able to rent back the property to the seller for a few months while they solidify their next purchase can go a long way into not needing to overbid on the property,” says Aaron Norris, a California real estate investor with The Norris Group.

  5.  Submit an as is offer

    The fewer conditions you put on negotiating the house price, the more attractive you look to sellers. Consider offering to buy the house as-is. Miami Beach, FL, agent Jill Hertzberg says, “You can opt out of conducting inspections.” But since this is an extremely risky proposition, Hertzberg suggests instead of waiving the inspection altogether, decrease the inspection period to two days maximum. Lilia Biberman, a Boca Raton, FL, agent says to only waive the inspection “if you have a firm grasp of all the possible defects a property may possess and the costs associated with remedying those defects.” Also, if you’ll be paying in cash, you don’t need a financing contingency, which protects buyers who don’t secure financing in time.

    Source: Trulia Blog

 

Posted on July 21, 2017 at 12:28 pm
Kappel Gateway Realty | Category: bid, Bidding, Bidding War, Multiple offers, real estate, Sellers Market, Uncategorized | Tagged , , , , , , , , , ,

7 Things To Know Before Becoming A Landlord

Thinking about investing in a rental property?  Here are some great tips that will get you started!

First-time homebuyers are a declining group. Historically, 40% of homebuyers have been first-time buyers, but that percentage continues to shrink, even as millennials continue to show more interest in becoming buyers (eventually). If you’re already a homeowner, your wheels might be spinning right about now — if people aren’t buying starter homes, then the rental market has to be booming, right? It is in many areas, particularly where unemployment is low, the population is high, and homes are not overpriced. But before you start searching for a home for sale in Austin, TX to rent, you should think about the responsibility that comes with being a landlord — and learning by trial and error is not the best way to go about gathering intel (or a steady income).

Before you take the plunge, study up on how to become a landlord with these seven tips.

  1.  Ideally, you want to live near your rental property

    Living close to your property allows you to check on it periodically (after giving your tenants proper notice), take care of repairs yourself, and show the property when it’s time to list it for rent again. Research the best investment areas — but even if you don’t live in a prime rental region, you can still invest in one by hiring a property manager to take care of day-to-day details.

  2.  Know landlord-tenant law

    Most states have specific landlord-tenant provisions that cover issues such as security deposits, level of access to the property, and how much notice you need to give your tenants when you want them to leave. There also are federal laws you need to know, such as habitability and anti-discrimination laws. “Many landlords gloss over housing discrimination laws because they assume that as long as they’re not racist or sexist, they needn’t worry about fair-housing violations,” says Ron Leshnower, real estate attorney and author of Fair Housing Helper for Apartment ProfessionalsBut fair-housing liability traps can arise in many ways, so it’s important that you fully understand the law and ensure that you aren’t breaking it.

  3.  Make sure you can enforce that the rent is paid on time

    This seems like a no-brainer, but believe me, if you get too friendly with your tenants, you might just let them slide a couple of weeks beyond the first of the month, or allow a partial payment when they’re between jobs. Before you know it, your tenants are six months behind and you’re struggling to make the mortgage payments. But being firm doesn’t mean you shouldn’t treat tenants with respect. Cultivating a good relationship with your tenants often goes a long way to ensure rent will be paid on time and that repair requests will be easier to deal with.

  4.  Screen potential tenants

    It’s worth the time to do a background and credit check on all potential tenants: online tenant-screening services are convenient, and you should be sure to check potential tenants’ credit scores. A credit score alone shouldn’t be the sole reason to accept or deny an applicant, but it is a useful screening tool: For instance, if your renter is fresh out of college with a solid job offer, they may not have enough credit history to warrant a good score—but could be a great rental candidate.

    You should also conduct an interview to make sure you’re comfortable interacting with them, and check references, especially from employers or past landlords. But be advised, it’s hard to find the perfect tenant. According to Casey Fleming, author of The Loan Guide: How to Get the Best Possible Mortgage, it’s important to have a thick skin, and advises people not to buy rental property if tenant shenanigans will “drive you crazy.” Case in point: Fleming once had an evicted tenant break into the house, change the locks, and move back in!

  5.  Customize the lease

    If you don’t hire an attorney or a property manager, you can use a standard lease form from Nolo, for example, but you should tweak it to fit your situation. For example, if you allow pets, specify how many, what kind, and any rules that apply. Your lease could state that tenants should leash their dogs when outside the fenced-in yard and stipulate that pets should not become a nuisance to neighbors.

  6.  Inspect the property regularly

    “Have language regarding inspections clearly written in your lease documents,” says Timmi Ryerson, CEO of Smart Property Systems. She suggests taking pictures to establish a baseline (and document the move-in condition) and conducting an inspection at three months. If you find problems, Ryerson recommends that landlords “issue a notice to comply and set another inspection in one week.”

  7.  Understand this is not a get-rich-quick scheme

    Being a landlord is not just sitting around collecting a big wad of cash each month. You’ll need to spend some money to ready the property for tenants, buy landlord insurance, and pay property taxes. If you’re taking out a mortgage, be prepared to fork over at least a 20% down payment. Think of being a landlord as part of your overall investment strategy and be realistic about your goals — most landlords aim for about a 5% return on their investments.

    Source: Trulia Blog

 

Posted on July 20, 2017 at 8:06 pm
Kappel Gateway Realty | Category: buying, first time buyers, investing, investor, Landlord, real estate, rental, rentals, tenants, Uncategorized | Tagged , , , , , , , , , , ,

What to Consider Before Buying a Home on the Golf Course

Traditionally considered the ultimate location, here is what you need to know before you purchase a home on the golf course!

Is there anything on par with living on a golf course?

Before you buy that home on the fairway, there are a few things to consider. From maintenance to memberships, privacy to views, life on the golf course comes with a few questions. To settle the score, we turned to our golf pro, Cara Ameer with Coldwell Banker Vanguard Realty, Inc. to learn her tips for what to consider before buying a home of the golf course. In the segment below, which first aired on NBC Open House, Cara explains how to tee your home search up for success and avoid any bunkers along the way.

To find a home on the green, visit Kappelgateway.com. You can find golf properties around the world using the lifestyle search found in the top navigation of the site.

Source:  CB Blue Matter

Posted on July 20, 2017 at 7:46 pm
Kappel Gateway Realty | Category: buying, Golf, Golf Course, real estate, Resale Value, selling, Uncategorized | Tagged , , , , , , , , , , , ,

Five Tips to Identify Fixer-Upper Homes Worth Investing In

You may know someone who did very well during the market crash in 2008 purchasing fixers. Its a complex issue that you need to study up on before you even consider taking that plunge!

When shopping for a fixer-upper home, some properties have potential beyond their appearance. Keep the following tips in mind as you look for that home.

When shopping for a new home, be aware of properties that have potential beyond their current appearance. Home buyers often overlook a great property because they are too focused on the cosmetic appeal, which can be easily altered. Keep the following tips in mind as you search for your perfect home:

  1. Finding the Best Neighborhood for You
    Location is one of the most crucial factors to consider as you look for possible homes. Unlike the style and even structure, no amount of time, effort, or money can change a home’s location. To find the best neighborhood for you, it can help to visit the area multiple times at various hours. This will help reveal the local culture and activity to be expected from neighbors.
  2. Identify a Cost-Efficient Fixer-Upper Home
    Look for a home with sound fundamentals and an appealing floor plan. Cosmetic improvements like new paint, lighting fixtures, and flooring are relatively cheap and easy to change, while work on plumbing, electrical systems, structural walls, or cabinets are more difficult and expensive. Typically, the most expensive change involves altering a home’s structure.
  3.  Hire a Contractor Before Buying a Home
    You may want to hire a contractor in your search if you know you want to make changes to a home you plan to purchase. A contractor can help you better understand what kind of commitment a given home will require. Many remodelers will visit a potential purchase at no charge to give an estimate of how much the work would cost. This is valuable information when comparing different homes with one another.
  4. Know What to Check Before Buying an Old Home
    Examining a home can be a complex process, and looking for one with unused potential can make it more difficult. Keep in mind that homes older than 50 years are likely to have similarly aged plumbing, electrical, heating, and other systems. The home may also be worn out or too outdated to remodel.
  5. Real Estate Agents Can Help
    Real estate agents are valuable resources. They can help you understand a home in the context of its neighborhood and area, and may be able to offer advice on how to increase the value of the property after purchase.

Source:  CB Blue Matter

 

Posted on July 20, 2017 at 7:40 pm
Kappel Gateway Realty | Category: buying, distressed properties, Fixer Uppers, Fixers, Foreclosures, investor, real estate, Uncategorized | Tagged , , , , , , , , , , ,

How to Keep a Small Kitchen Organized

Everyone LOVES a big kitchen. Lots of room to whip up your culinary delights! The truth is that anyone can adjust and create beautiful meals in a small kitchen. Its all in the organization!

It can be tricky keeping a compact cooking space tidy, but these ideas can help keep a small kitchen organized.

Contrary to what you might think, you don’t need acres of counter space or dozens of drawers and cupboards to have an organized kitchen that’s a joy to cook in. If anything, a smaller kitchen can encourage you to streamline your stuff and live more simply. Who wants cabinets chock-full of unloved pasta machines and dusty bread makers anyway? Check out these easy ways to restore order to your less-than-enormous kitchen.

1. Start with a utensil rack. Not only will it give you a place to hang slotted spoons and ladles for easy access while cooking, it will also free up precious drawer space.

Even in the tiniest kitchen, you can usually find somewhere to squeeze one in — under a cupboard or shelf or above the stove. Stainless steel models work in most styles of rooms and are easy to wipe down.

Photo by WILLIAMS RIDOUT 

2. Get a knife holder. A knife block or magnetic rack is one of those simple items that really do make a difference in how functional your kitchen is. After all, rummaging around in a drawer for a piece of kitchen gear you use frequently is time-consuming and dispiriting.

A wall-mounted rack like this one keeps things orderly without swallowing too much space. Buy decent knives if you can afford it, as they should last a lifetime. One advantage of a magnetic rack is that you can slowly build up your collection of knives, buying one at a time, rather than having to invest in one large block complete with knives, which can be pricey. If you’re starting from scratch, a bread knife, paring knife and chef’s knife are essential.

3. Assign dedicated storage areas. Kitchen clutter can easily accrue, so it makes sense to assign different cupboards a specific purpose and stick to it. And dedicate a few minutes every couple of weeks to returning stray plastic lids or pot covers to their homes and sweeping out spilled spices and coffee grounds — it really will make a difference in how pleasurable (and easy) your kitchen is to use day to day.

Photo by Domus Nova 

4. Reduce your numbers. If your kitchen is really mini, or even if it isn’t, think about doing a good edit of your paraphernalia. Be honest: Do you really need more than a handful of plates, mugs or glasses if there are only one or two of you?

Having less stuff can be immensely freeing — and will significantly reduce the amount of time you spend washing up, which is a big bonus.

Photo by Cream & Black Interior Design

5. Gather and display. This cute kitchen demonstrates how you can be organized and chic at the same time. A charming crock to hold wooden spoons, a wall-mounted crate or two to provide a home for vintage-style scales and jugs, a small wall-mounted spice rack — they all add a pretty touch as well as having a practical function.

Photo by Moon Design + Build 

6. Be clever with your cabinets. Use every spare inch in a small kitchen by building recessed shelves where feasible. Here, they surround an integrated refrigerator. With this design solution, wall space that’s too skinny or awkwardly shaped for extra cabinets can still be used to hold frequently used items. In this kitchen, it also helps open up the room and leads the eye to an appealing feature.

The other clever feature in this kitchen is the cookbook niche above the door — another neat storage trick that doesn’t take up too much room. Ask a builder if one can be carved out from an existing wall.

Photo by Ardesia Design 

7. Go minimal. Are you in the process of picking new cabinets for your compact kitchen? Consider this look. Ultra-plain, handleless cabinets in a nude hue are soothing to look at and give a sense of visual order. Pick a seamless backsplash such as this slab of marble, since tiles with grout can look busy.

Photo by Glenvale Kitchens 

8. Get in a tight corner. When space is tight, an ingenious trio of pullout corner drawers is a lifesaver, helping to solve the problem of lost space in those awkward-to-access base cabinets.

If you’re remodeling, think about how you’d use such drawers — for cutlery, towels, pans, dishes? Here, a slimmer top drawer is complemented by the two deeper ones, so all the bases are covered.

Photo by marco joe fazio photography 

9. Put the pans away. Similarly a pullout pan rack can be a gift in a small kitchen, creating an organized home for frying pans and saucepans and keeping you from tearing your hair out as you hunt around in the backs of cupboards. Also try using racks for items such as steamers or large, unwieldy casserole dishes.

Photo by Vanillawood

10. Organize inside. It may sound like a no-brainer, but often what makes a kitchen, big or small, organized is how we arrange the insides of our cupboards. Shelf and drawer dividers, hooks, racks and other storage devices are key to keeping order. Consider what works for you and go custom if you can. Are you a Mason jar and Tupperware kind of person? Do you prefer mugs on hooks, shelves or in drawers? Storage is often about personal preference. Here, the slim slots for chopping boards and placemats are a brilliant idea, as is the slim pullout spice rack.

Source: CB Blue Matter / Houzz

 

Posted on July 20, 2017 at 7:32 pm
Kappel Gateway Realty | Category: appliances, cabinets, kitchens, living small, organization, real estate, small space, Uncategorized | Tagged , , , , , , , , ,

Home Safety: How to Protect Your Family at Every Stage of Life

Safety…ALWAYS a concern. Here are some really practical tips throughout a lifetime of staying safe. Good to know!

We all want to keep our families as safe as possible, but home safety requirements change as your family grows and evolves. From newborns to pets, a variety of different strategies can ensure your home is as safe and accommodating as possible for your family. Here are some simple tips to help keep your family safe through every stage of life.

Getting Your Home Ready for a New Baby
Babyproofing a home is largely about protecting them from their own curiosity. Once a baby learns to crawl, anything in reach is fair game to be grabbed, touched, or chewed on.

1. Install baby gates to keep certain rooms off-limits. This is especially important near stairs.

2. Fill unused electrical outlets with plastic plugs. Outlets are like magnets for babies.

3. Store breakable items out of reach.

4. Keep small items out of reach, as well. Small objects that could be put into mouths are a major choking hazard. A good rule of thumb is if it can fit in an empty toilet paper roll, it is small enough for a baby to choke on.

Home Safety for Toddlers and Elementary-Age Children
Toddler-proofing is a little different from babyproofing in that a toddler is usually more resourceful about getting into things they shouldn’t be. Toddlers will climb, open doors and drawers, and generally get themselves into trouble.

1. Move anything small or breakable up higher now that your child is walking and climbing. You’d be surprised at what they can reach.

2. If you have a pool, build a fence around it. You’ll want a barrier at least a few feet high to make it harder for your toddler to climb over.

3. Secure drawers and cabinets with childproof latches.

4. Place safety locks on windows and doors to prevent them from being opened.

5. If you don’t have a home security system, install one for added safety. Choosing a system with the right features, like motion sensors and security cameras, can help you know if your curious toddler runs out the door or it can help you keep tabs on things while the babysitter is over.

Safety During the Teenage Years
As your child grows into their teens, the focus moves further from physical safety and more towards online safety and general home security. Online safety is extremely important with teenagers in the house.

1. Set clear boundaries and expectations with your teen regarding potentially dangerous situations. These could involve simple subjects like safe driving or complex topics like drinking and drugs.

2. Keep alcohol, firearms, and any prescription or over-the-counter drugs locked up in a safe place.

3. Educate your teen about safe internet usage. This includes avoiding malware, being smart on social media, and using privacy settings.

Pet-Proofing Your Home
Pets make great additions to the family, but they come with their own safety needs. In many ways, pet-proofing is similar to babyproofing. Pet-proofing involves keeping harmful items out of their reach and making sure that they can’t escape the house or yard and run off.

1. Keep cleaning products, chemicals, and medications in high places or locked where pets can’t stumble upon them.

2. If your pet likes to chew on (or eat!) household items, make sure that you don’t leave anything lying around. It can be helpful to do a quick walkthrough of your home a couple times a day, such as when you leave and return from work.

3. If you have a home security system, make sure the motion sensors are capable of detecting and ignoring your pets.

4. If you have a fenced yard, check it for weaknesses or small gaps that a pet could squeeze through.

Getting Your Home Ready for Your Parents to Move In
As our parents get older, it’s not uncommon for them to move in with us. This can help ensure their safety and prevent the loneliness that often comes with old age. It can also present some unique challenges when it comes to home safety.

Depending on your parent’s age and their physical and mental well-being, you may need to make small home improvements for their convenience or physical safety. In general, you’ll want to try to minimize the potential for falls and make sure that help is always within reach.

1. Install grab bars in the bathrooms near the toilet and shower. These bars can help support a person as they move in and out of the shower or tub, both making this task easier and helping prevent falls. Make sure they can support the weight of the person who’ll be using them.

2. Walk through your home and check for objects that might make tripping hazards. Throw rugs, children’s toys, and pet toys can all be dangerous for people lacking the eyesight or reflexes to maneuver around them easily.

3. Set up a medical alert system. This is a wearable device that essentially functions as a panic button—if a person falls or has a medical emergency, they can push the button to get instant access to help.

4. Learn which foods are hazardous for senior health. As your parents age, their immune system weakens, making them more susceptible to food poisoning and health risks. Prepare meals at home that won’t threaten the health of your aging parents.

Your family grows and changes as time goes by, and so should your home safety plans. If you want to keep up with each of your family members, continually assess their needs. These tips should give you a great starting point towards building a safer home for your family.

Source: RisMedia

Posted on July 20, 2017 at 7:10 pm
Kappel Gateway Realty | Category: babies, family, pets, real estate, safety, Uncategorized | Tagged , , , , , , , ,

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

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.

 

Posted on July 8, 2017 at 2:00 pm
Kappel Gateway Realty | Category: buying, community, family, Location, neighborhood, parent, real estate, Resale Value, schools, Uncategorized | Tagged , , , , , , , , , , ,

5 Mistakes Buyers Make In A Hot Housing Market

 

The home-buying process moves quickly in a seller’s market. Be sure to keep positive as you search for your dream home.

 

We are in a hot Real Estate market right now with little inventory. These tips could make the difference in the success of your next purchase!

Buying in a hot house market is sometimes inevitable, but you can save money by avoiding these mistakes.

It’s the never-ending saga of homebuyers everywhere: just when you start looking for homes for sale in Fairfield, CA or Walnut Creek, CA, prices seem to be booming and you’re stuck trying to buy in a seller’s market. House-hunting is hard to time perfectly, and sometimes it’s impossible to avoid buying in a hot market.

But don’t let the fear of tough competition send you into a panic. Avoid falling into one of these traps when shopping in a hot real estate market, and you’ll likely save yourself some money (and a few gray hairs).

5 mistakes that will cost you in a hot housing market:

  1. Acting out of desperation

    It’s hard not to be let down when attractive homes are taken from “new” to “pending” before you even have the chance to look at them, but remember: Desperation has no place in a home-buying transaction.

    Once desperation sets in, you risk making an impulsive and otherwise unwise decision, such as talking yourself into a home that isn’t quite what you really want or paying more than you can afford. Even if you can’t or don’t want to make an offer, every home you research and visit will give you a better insight into the home-buying process and the market and allow you to refine exactly what amenities you want in your future house.

    Once you know exactly what you want, let others know too. Give your contact information to the listing agents at open houses and ask them to drop you a note if they get similar listings.

 

2. Hesitating (This is a biggie!)

What’s worse than seeing great properties come and go before you can get out to view them? Seeing them placed under contract before you make an offer.

Before you walk into an open house, make sure your paperwork is up to date and your loan approval hasn’t expired so you’re in position to make an offer that day. If you haven’t already gotten a loan approval, it’s time to start the loan approval process, stat.

 

3. Ignoring the market entirely

It’s nearly impossible to time the market and make your real estate decisions based on current trends. A better plan is to make your buying decisions based on what’s currently happening in your family, your career, and your life (and what you envision will happen in the next five to 10 years). That said, when it comes time to execute your decision to buy, it’s foolhardy not to pay attention to the market.

You need to be able to play both sides and avoid the panic-inducing fluctuations of the market while staying informed. Ask your real estate agent to help you pay attention to neighborhood-specific information, such as which types of properties move quickly, how many days they generally stay on the market, whether multiple offers are a reality you will face, and how much over asking price homes like the one you want are selling for.

Then use this information to make strategic decisions, covering everything from which properties and areas you’ll focus on to how quickly you’ll need to get out to see listings to — most importantly — what price range you should focus your search on.

 

4. Misunderstanding your budget

Don’t run the numbers in your head. Don’t ballpark your income, loan payments, and bills, stick your finger in the wind, and guess at how much you can spend on a home. Financially speaking, home buying is the big leagues, so you need to be sparkling, crystal clear on precisely what you can afford.

In a hot market, you may be faced with decisions about whether to increase your price range or your offer price on relatively short notice. If you need help, don’t hesitate to bring your tax adviser or financial planner into the home-budget discussion — especially if you’re a new homebuyer. They can help you understand tax breaks for new homeowners, which can free up some extra money for your mortgage, property taxes, insurance, and HOA dues or private mortgage insurance, if applicable.

Also, make sure you include line items for your savings, retirement investing, gifts, school tuition, travel, and recreation — the sort of things that lenders will not account for when they tell you what their guidelines say you can afford.

 

5. Overpaying

Hot markets mean multiple offers on the same home, which often result in a bidding war. And once you’ve had one too many homes pulled out from under you after a bidding war, it can be tempting to pay more than you budgeted for.

To avoid overpaying for a home just because it’s in a bidding war, be sure to go through comparable homes with your agent before you even look at the house.

Bonus: If your agent includes active and pending sales in their pull of the comparable data set, you may find out useful information such as whether other competitive properties have just hit the market, or that all of the competition is now under contract — things that might also inform your motivation levels or price strategy.

Source: Trulia Blog

 

 

Posted on July 8, 2017 at 1:53 pm
Kappel Gateway Realty | Category: Buyers, buying, hot market, mistakes, overpaying, real estate, research, Sellers Market | Tagged , , , , , , , , , , , ,

What Is Equity and Why Is It Important?

This is information, that you, as a homeowner or buyer, really need to know. Read on for the ins and outs of equity!

Have you heard that owning a home helps ‘build equity’ but still not sure what that means? Get the information from the experts at Coldwell Banker.

You’ve probably heard people throw around the word “equity” when they’re talking about homeownership. You might have heard someone say that owning a home helps you “build equity” or perhaps you heard someone talk about “borrowing against equity.”

But what exactly is equity? And why does it matter?

What Is Equity?
Equity is what you own, minus what you owe. It’s the percentage of your home value that belongs to you free and clear.

If your home is worth $250,000 and your outstanding mortgage balance is $200,000, then you have $50,000 of equity in your home.

How Does Equity Grow?
There are three common ways in which your home’s equity can grow: market appreciation, forced appreciation, and debt reduction.

Market appreciation takes place when the value of your home rises due to factors caused by the overall local, state or national economy. If your home is located in a neighborhood that is experiencing a sudden burst of new jobs and population growth – and if that population growth is outpacing new housing starts – then there’s a likelihood that the value of your home may rise due to market appreciation.

Let’s return to the previous example. Your home is worth $250,000 and your mortgage balance is $200,000, meaning that you hold $50,000 in equity. Let’s assume that home values in your area start climbing steeply. Your home is now worth $300,000. Guess how much equity you hold? You now have $100,000 in equity. As the homeowner, you benefit from all market gains.

Forced appreciation is another common way that homeowners build equity. While market appreciation is based on factors outside of your individual control, forced appreciation is the direct result of your actions.

When you hear about people making upgrades for the sake of boosting resale value, they’re referring to forced appreciation. Imagine that you carefully plan and execute a kitchen remodel. You replace the 30-year-old cabinets with a new set; you replace the laminate countertops with builder-grade-granite; you replace the linoleum flooring with hardwood, bamboo or tile.

Assuming that you managed this remodel in a cost-efficient manner and made upgrade choices that are consistent with your neighborhood, the value of your home may exceed the cost of the renovation.

For example, if you spend $8,000 on the renovation, which results in a home that’s now worth $15,000 more, this means you increased your equity through forced appreciation.

Finally, you can boost equity through debt reduction, which means that you reduce the principal balance of your mortgage. Mortgages are amortized, meaning that a larger percentage of your payments apply to interest at the beginning of the term, while more of your payments apply to principal near the end. If you want to accelerate equity growth at the start of your term, you can make extra principal payments. This boosts your equity while also lowering the total interest you’ll pay over the life of the loan.

A combination of these factors can accelerate your equity growth. Since equity is the difference between “what you own” and “what you owe,” the 1-2 combination of boosting home value while also reducing the mortgage balance can be an effective way to rapidly build equity.

Why Does Equity Matter?
There are many advantages of holding equity.

First and foremost, equity boosts your net worth. The higher your equity, the higher your overall net worth. Your net worth can give you feedback on your overall financial health, and can help you make crucial financial planning decisions.

Secondly, you can borrow against your equity and, if you choose, invest this money. Some homeowners borrow against their equity to start businesses; others borrow to remodel their homes or to purchase investment properties.

The home equity loan, home equity line of credit, and cash-out refinancing are several options that homeowners can choose from if they want to borrow against their equity.

Finally, homeowners who decide to move can use the equity from the sale of their home to make a down payment on another home. This allows homeowners to “trade up” without needing to save cash for a down payment.

Furthermore, homeowners who downsize (meaning sell their current home and move into a smaller and less-expensive home) may cash out their equity – using some of their equity to purchase their less-expensive home and receiving the rest as cash.

What Should I Do?
Equity can be a form of ‘forced savings.’ Once this equity is locked into your home, you’ll have the advantages and opportunities that come from holding a high-equity position, without the same temptation to spend this money that you might have if it were liquid cash.

Assuming that you’re not planning any major projects that require a large cash outlay – such as starting a business, buying an investment property, launching a renovation or paying for college – you may want to focus on boosting your equity by accelerating your mortgage payoff, making strategic value-boosting upgrades, or both.

Source: CB Blue Matter

Posted on July 8, 2017 at 1:28 pm
Kappel Gateway Realty | Category: Buyers, equity, first time buyers, Homeowners, real estate, Uncategorized | Tagged , , , , , , , , ,