Category Archives: Home Buying

Home Buying, Housing, Interesting Facts, Real Estate, Real Estate Investing, Realtor

7 Reasons to Own Your Home

February 6, 2015 Philip Ford

Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Source: National Association of REALTORS®

Home Buying, Housing, Interesting Facts, Real Estate, Realtor

Your Property Wish List

January 29, 2015 Philip Ford

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

Public transportation
Airport
Expressway
Neighborhood shopping
Schools
Other

Home Style

What architectural style(s) of homes do you prefer?
Do you want to buy a home, condominium, or townhome?
Would you like a one-story or two-story home?
How many bedrooms must your new home have?
How many bathrooms must your new home have?

Home Condition

Do you prefer a new home or an existing home?
If you’re looking for an existing home, how old of a home would you consider?
How much repair or renovation would you be willing to do?
Do you have special needs that your home must meet?

Home Features

Please circle one of the choices: Must Have, Would Like, Willing to Compromise, Not Important

Front Yard	Must Have	Would Like	Willing to Compromise	Not Important
Back yard	Must Have	Would Like	Willing to Compromise	Not Important
Garage ( __ cars)	Must Have	Would Like	Willing to Compromise	Not Important
Patio/Deck	Must Have	Would Like	Willing to Compromise	Not Important
Pool	Must Have	Would Like	Willing to Compromise	Not Important
Family room	Must Have	Would Like	Willing to Compromise	Not Important
Formal living room	Must Have	Would Like	Willing to Compromise	Not Important
Formal dining room	Must Have	Would Like	Willing to Compromise	Not Important
Eat-in kitchen	Must Have	Would Like	Willing to Compromise	Not Important
Laundry room	Must Have	Would Like	Willing to Compromise	Not Important
Finished basement	Must Have	Would Like	Willing to Compromise	Not Important
Attic	Must Have	Would Like	Willing to Compromise	Not Important
Fireplace	Must Have	Would Like	Willing to Compromise	Not Important
Spa in bath	Must Have	Would Like	Willing to Compromise	Not Important
Air conditioning	Must Have	Would Like	Willing to Compromise	Not Important
Wall-to-wall carpet	Must Have	Would Like	Willing to Compromise	Not Important
Wood floors	Must Have	Would Like	Willing to Compromise	Not Important
Great view	Must Have	Would Like	Willing to Compromise	Not Important

Other notes:

Source: National Association of REALTOR®

Home Buying, Housing, Interesting Facts, Real Estate, Seller

What’s a Home Warranty?

January 26, 2015 Philip Ford

What’s a Home Warranty?

A home warranty is a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

Check your home warranty policy to see which of the following items are covered. Also find out if the policy covers the full replacement cost of an item.

Plumbing
Electrical systems
Furnace
Water heater
Heating ducts
Water pump
Dishwasher
Garbage disposal
Stove/cooktop/ovens
Microwave
Refrigerator
Washer/dryer
Swimming pool (may be optional)

Source: American Home Shield, www.ahswarranty.com, REALTOR® Benefits Partner

Home Buying, Housing, Interesting Facts, Real Estate, Realtor

10 Ways to Prepare for Homeownership

January 22, 2015 Philip Ford

Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
Develop your home wish list. Then, prioritize the features on your list.
Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Source: National Association of REALTORS®

Home Buying, Housing, Interesting Facts, Real Estate, Real Estate Market, Realtor, Seller

8 Reasons Why You Should Work With a REALTOR®

January 20, 2015 Philip Ford

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here’s why it pays to work with a REALTOR®.

Navigate a complicated process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

Information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

Help finding the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

Negotiating skills. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

Someone who speaks the language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

Experience. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

Objective voice. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, homebuying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll every make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

Source: National Association of REALTORS®

Financing, Home Buying, Housing, Interesting Facts, Mortgages, Real Estate Investing, Real Estate Market, Realtor

Buying More Affordable Than Renting

January 16, 2015 Philip Ford

In the majority of U.S. housing markets, buying is more affordable than renting. While housing values have been on the decline in recent years, rents have been on the rise as the demand for rental properties have increased.

If your currently renting, now might be the best time to purchase financially. Housing values are at all time lows along with interest rates. These conditions are not expected to continue indefinitely. In fact; housing values are already showing signs of rising along with interest rates.

You might be asking yourself; how much house can I buy, and will I actually be better off purchasing a home versus renting? Your best resource to get answers to these questions would be either a mortgage broker or your banking institution. They will be in a position to tell you how much house you would qualify for, how much cash you will need to close and what your projected monthly payment would be. Once you have this information, you’ll be able to make an informed decision.

If you’ve decided that now is a good time to buy a home, then the next step is to contact a REALTOR® who will assist you with the house hunting process through the closing on your new home.

Act today; don’t keep putting your future plans on hold.

Home Buying, Housing, Interesting Facts, Real Estate, Real Estate Market, Seller