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June Real Estate Market!

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The June real estate market is expected to be a bit slower than the previous month, but still strong overall. There are a few factors that are contributing to this, including rising mortgage rates and inflation.

Mortgage rates have been rising steadily in recent months, and this is making it more expensive for buyers to afford a home. Inflation is also on the rise, which is reducing the amount of disposable income that buyers have available to spend on housing.

Despite these challenges, the June real estate market is still expected to be strong. There is still a lot of demand for homes, and inventory levels are still low. This means that buyers will still be able to find homes, but they may have to make some concessions, such as waiving contingencies or paying over asking price.

Here are some tips for buyers and sellers in the June real estate market:

For Buyers:

  • Get pre-approved for a mortgage. This will show sellers that you’re serious about buying and that you have the financial means to do so.
  • Have a good understanding of the market. Know what homes are selling for in your area and what kind of features are in demand.
  • Be prepared to negotiate. Don’t be afraid to negotiate on the price or terms of the sale.
  • Be patient. The June real estate market may be a bit slower than previous months, so be patient and don’t be afraid to walk away from a deal if it’s not right for you.

For Sellers:

  • Get your home ready to sell. Before you list your home, make sure it’s in good condition and staged to show its best features.
  • Price your home competitively. The right price is essential for a quick sale.
  • Market your home aggressively. Use a variety of marketing channels to reach as many potential buyers as possible.
  • Be prepared to make some concessions. Buyers may ask for repairs or concessions, so be prepared to negotiate.

By following these tips, you can increase your chances of success in the June real estate market.

Contact us today! Your dream home is waiting for you.

12 Tips for an Easier Move

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While moving into a new house is exciting, few people enjoy the actual day of moving. Moving is stressful, whether you’re moving across town or the country. Here are a few helpful tips from moving experts to make your big day more manageable.

1. Plan your move in advance. Don’t wait to the last minute before scheduling your move. Moving companies are booked weeks in advance. Be sure to let them know in advance if there are any large or heavy objects you need moved. You don’t want the movers showing up without enough staff or a truck too small to safely move your items.

2. Consider having the moving company package your belongings. It may be worth it to hire packers if it is within your budget. Packers are generally very efficient, and they take the time to carefully wrap fragile items. Packing is usually done the day before the move. This means that you won’t need to worry about packing away items you might need on the moving day.

3. Schedule services. Don’t forget to have services transferred or started at your new home. You may need: internet, tv, phone, gas, lawn, pool service, and security system monitoring

4. Your new home should be professionally cleaned. You can arrange for the cleaning of your new home to be done by a professional if you are not receiving any prior notice from the seller.

5. Pack a moving box. You should pack a moving supply box with items that you will need to unpack and settle in at your new house, including:

Toilet paper, paper towels, sponge, all purpose cleaner, glass cleaner, furniture, moving pads, scissors, cordless screwdriver, picture hanging kit, bottled water, snacks, pet food, paper plates, cups, disposable utensils, hand and dish soap. Make Your Bed. Once your mattress and bed frames are off the truck and have been assembled by the movers, you can make up the beds. Pack all your blankets, pillows, and sheets in a box that is clearly marked so you can easily find them. You’ll appreciate that the beds will be ready for you to sink into when you are tired at the end.

7. Do the same with your bath towels and soap. You can also pack your soap and towels with your bedsheets so that you don’t have to look for them when you go into the shower.

8. Plan for your pets. You don’t want your pet to be stressed out on moving day, or even worse, escape in an unknown neighborhood. Plan for your pets day to be spent with family, friends, a sitter, or boarding facility until you feel ready to bring them into their new home.

9. Accept helpers. It can be difficult to accept help from friends or family if you don’t know what they are capable of. You can delegate the following tasks:

Lay shelf liner in the kitchen and bathroom cabinets and drawers Unpack and put away your kitchen items (you can rearrange later!) Babysit or keep your children occupied Make up your beds, place towels in the bathrooms Wipe down cabinets and counters Break down packing boxes Hang clothes in closets Organize tools and equipment in the garage Pick up lunch or dinner

10.  Hire a Sitter. If you have little ones, they will be very excited about their new home, new rooms, and yard. They will want to be with you, but they will not be interested in unpacking boxes! Make plans for someone to be available just for them, so you can concentrate. A family member, friend or hired sitter can help them explore their new surroundings, build a box fort, or organize their toys in their new rooms without you worrying about where they are.

11. Hire someone to hang art. If you don’t like to do it yourself, consider hiring a handyman to install your window treatments and wall art. You can save a lot of time by having a handyman come in and hang your wall art. A decorator is a good choice if you need assistance deciding how to hang portraits or art. They can assist you in deciding on the placement of items and either hang them themselves or instruct a handyman to do so.

12. Leave the old home. You should have filled out a form at the post office to change your address before closing. Remember to leave any keys, garage door openers or gate openers. Also make sure that the movers do not pack loose items like ceiling fan remotes or other items that remain with the home. Do not forget to clean the attic, sheds in your backyard, crawlspaces or other hidden spaces where you may have stored things. It’s always nice to have the home professionally cleaned for the new owners, and, if you feel inclined, leave a list of recommended local vendors for household services.

Does a swimming pool add value to your home?

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Swimming pools can be a great source of fun, exercise and relaxation. But does it increase the value of your house?

Recent research shows that an in-ground swimming pool can increase the value of your house by 7 percent. The cost of installation and maintenance may be greater than the value gain.

It’s more complicated than any other home improvement project. Let’s examine the pros and cons of installing a swimming pool.

The Key Takeaways

    • A pool in the ground can increase the value of your house or make it easier to sell.
    • The initial cost of installing a pool, as well as the ongoing costs for maintenance and insurance could be more than offset by any increases in value.
    • There are several ways to finance your pool, such as using your credit card, home equity or personal loan.

      When does a swimming pool increase your property value?

      Let’s first define some terms. We mean in-ground pools, the kind of pool that is permanent and requires you to dig a hole in your backyard. Not the type above ground that looks like a tank. “In many markets in-ground swimming pools are the preferred choice, and above-ground ones do not add value to a house,” Melissa Zavala says, who is a realtor with Broadpoint Properties, San Diego.

      Experts say that a pool in good condition can increase your home’s resale price. If you look at real estate listings, it is likely that you’ll see homes with pools in the backyard.

       Here are some instances where a pool might increase your home’s value or make it more marketable when you sell.

      • Your neighborhood is likely to have pools.
      • The climate allows the pool to be used all year round, regardless of the season.
      • The pool blends in with the yard but leaves room for space
      • The target homebuyers tend to be affluent and either without children or older children (not the starter-home type).

      In regions that can use them all year round, pools are highly sought after. Tom Casey is the vice president of Anthony & Sylvan Pools, Doylestown. He says that if you are in a warm climate, like Florida or Texas it will increase your property’s value, and it may make your house more attractive to buyers. Owners of swimming pools in coastal or resort communities that rent vacation homes can command higher rates for their properties than those without. Higher-end communities are more receptive to pool installations that can increase the resale price of a house.

      If you live in a neighborhood where most houses have pools, but not all, your house’s value could be affected if it is put on the market. Robert Taylor of The Real Estate Solutions Guy in Sacramento, Calif., says that a pool will not affect the value of a home if most of your neighbors have them.

      How much value does a pool add to a home?

      Adding an in-ground pool can increase your home’s value as much 7 percent — that’s the number that’s often cited by residential real estate authorities like HouseLogic, Today’s Homeowner and HomeAdvisor. But the actual amount of value it brings can vary by market.

      For instance, in a warm-weather market like Los Angeles, homes with pools sell for about $95,000 more than comparable ones without, per a recent report by real estate brokerage Berkshire Hathaway HomeServices California Properties. Given that the median LA home price is around $909,000, that’s a 10 percent increase. But in other parts of the state, the report notes, the pool offers less of a bump — anywhere from $20,000 to $45,000 more — which worlds out to a more modest 3 to 7 percent increase, even with the lower home prices in those areas.

      Location, location, and location make a huge difference in real estate. DiBugnara says that in towns where there are fewer pools than average, the value of a home with a swimming pool can increase significantly. “Also neighborhoods with a high concentration of school-age kids will see a greater need for pools.”

      But be warned: the mere presence of a swimming pool won’t increase your chances of getting a higher resale price. The condition of the pool is also important. DiBugnara warns that a poorly maintained pool, in need of repairs or maintenance, could lower the value of your home and discourage buyers.

      Other considerations for adding a swimming pool to your home

      It is important to understand the value that a swimming pool can bring, as adding and maintaining one is not cheap. The cost of pool repair, maintenance and insurance can be high, which could put off some potential buyers. They’re important to think about if you ever plan to sell your house.

      Pool installation costs

      HomeAdvisor estimates that the cost of building an in-ground swimming pool, including labor and materials ranges between $45,000 and $85,000 for a pool made of fiberglass and $55,000 and $100,000 for a pool made from concrete or gunite.

      Maintenance of swimming pools

      Repairing and maintaining your pool is not cheap. HomeAdvisor says that basic pool maintenance costs between $500 and $4,000. Add in utilities like water or fuel if you have a heater and your total annual cost can reach up to $10,000.

      The pool will need to be vacuumed regularly and cleaned during the swimming season. You may also want to purchase accessories such as telescoping poles, attachable brushes, and leaf skimmers.

      You may also want to think about larger repair and upgrade projects if you plan on staying in your house for a long time. HomeAdvisor says that concrete pools will eventually need to have their surfaces resurfaced, and this can cost anywhere between $2,250 to $15,000

      This is one of the reasons that pools have historically been a less attractive option. Casey suggests that homeowners can reduce their costs significantly by performing some maintenance themselves rather than hiring a pool company.

      Recent tech innovations also helped. Casey says that investing in a pool with saltwater rather than chlorine can reduce costs.

      Increased Homeowners Insurance

      Your homeowners insurance rates will be higher if you have a swimming pool. Your homeowners insurance will increase. If you decide to sell your house in the future, it is likely that your buyer will pay higher rates.

      Lev Barinskiy is the co-founder and CEO at SmartFinancial Insurance, based in Costa Mesa, Calif. Most policies cover 10 percent or less of external structures and fixtures, such as a swimming pool. They also cover a majority of accidents that occur around a swimming pool.

      Barinskiy says that even though your homeowners’ insurance will cover pool accidents in the event of injury or death, you could still be held legally responsible if you did not provide a safe environment for guests when you let them use your pool.

      If your insurer considers your pool to be an external structure, then you should list it on your insurance policy. Barinskiy also notes that local laws and most policies require you to install a fence around your pool, as well as remove any diving boards.

      You may want to consider a personal umbrella insurance policy, which will provide liability coverage beyond your homeowners’ policy.

      How to finance a swimming pool

      Want to build a swimming pool? You may have to borrow money in order to make that purchase. There are several pool finance options.

      Cash-out refinance

      Cash-Out Refinance involves taking out extra cash at closing to put towards the pool. Cash-out refinances are a good option if the interest rates are lower. However, it is not always the best decision in high-rate environments.

      Home equity loan

      You can borrow money against the equity in your home when you apply for a loan. This lump-sum loan is similar to a second mortgage. You’ll generally need to have 15-20% equity in your house to qualify.

      Home equity Line of Credit (HELOC).

      A Home Equity Line of Credit offers you a lump sum that can be accessed when required, up to an approved limit. The variable rate of interest is only charged on the amount you borrow. Your home acts as collateral, similar to a home-equity loan.

      Personal Loan

      Personal loans are unsecured loans that don’t require collateral and do not tap into the equity in your home. However, they may have a higher rate of interest than a HELOC or home equity loan.

      Credit Card

      If you do not qualify for the other options, credit cards are a good alternative. But only if you can obtain or have a large enough credit limit. You would like to be approved for an introductory card with a low or zero rate that you could pay off before it expires. It could be a card that rewards you if you make a large purchase in the first couple of months.

      The final word on how pools can add value to your home

      Before you commit to a pool, make sure you know what it is that your swimming pool will do for you. It can be a great investment but it is not a sure thing. It can be expensive to maintain, repair and insure a pool. It’s not guaranteed that the pool will increase the value of your home or that you spent to install it.

      When it comes time to sell your pool, you should also consider how to prepare and market it. Casey recommends that you repair and clean the pool, and stage your outdoor retreat. You also need to market your home well and cater to the correct buyer. He says that the most likely buyers are those who are looking for a higher-end home, and families with children or teenagers.

      If you have it, show it off. Casey advises that if you live in a cooler climate you should sell your home when the weather is good and you can use your pool. Open your pool early if you are planning to sell in spring. A newly opened pool will have a great curb-appeal.

      Original Blog: https://www.bankrate.com/homeownership/pool-add-value-to-home/

 

What to Look For on Your Final Walk-Through

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The final walkthrough of your new home can be a very exciting experience. You have completed all the necessary steps, including negotiations, inspections and financing approval. Now you are ready to sign your closing papers. Most buyers have already thought about paint colors and furniture placement before the final walk-through. The walk-through is more than just ensuring that your favorite chair fits by the fireplace. Do your due diligence and make sure that there are no issues you need to resolve before the closing table. The final walk-through will ensure that the home is in the same condition as when you purchased it.

Check for the following:

1) Check that there is no damage to the house that the sellers should be responsible for. The weather or careless movers may cause damage. Old and forgotten damage can be discovered when the sellers’ possessions are removed.

2) Make sure that all appliances are in good working order and that no new electrical or plumbing issues have appeared. You don’t need to do a full home inspection but you can check visually for obvious issues that should be fixed before you move in.

3) Verify that all items conveyed by contract are present. If the sellers agreed that certain furniture, decor or equipment would be left, make sure it hasn’t been removed.

4) Verify that the sellers have removed their belongings. You don’t need to arrive at the property with your moving truck to discover that the sellers have left behind a variety of unwanted furniture and trash. The sellers are responsible for clearing out anything that does not go with the sale.

What is a Real Estate Agent’s Role in Helping Sellers?

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You want to find a realtor that will make the process as easy as possible for you while maximizing your profit when trying to sell your home.

You may be a new agent, and wonder what sellers expect from you. They want you to represent them above all else. They want you to be transparent, to trust you and to minimize any headaches that they may experience.

The following are some of the skills that a great agent for sellers should possess.

Pricing

One of the best things a seller’s agent can do for you is to price your home properly. Many people describe pricing a home as both an art and science.

Agents use recent comparable sales to make their decisions. Knowing the local market and having experience are key to being able to use intuition.

A good agent will find the right price balance to keep sellers competitive while ensuring they get what their house is worth.

A real estate agent will conduct a comparative analysis of nearby homes that are currently on the market, have pending sales, or may have just sold. Your agent may have sold these comps, or at least seen them personally.

You might also wonder how an agent can be better than an online model of valuation. These tools have a high error rate. Zillow’s online calculator, for example, estimates the value of a home at around 20% of its actual value in 87.6% cases. This leaves a large margin of error. These tools cannot account for the nuances or variables that an agent experienced in pricing homes can.

Sellers’ agents should be present at inspections and appraisals in order to prevent any spin from the buyer agent. If an inspector states that a home will require a new air conditioner in five years, then the agent representing the buyer may spin the information by saying that the unit is defective. This can be prevented by a seller’s representative.

Get Your Home Ready

Cleaning a house is not enough to get it ready for the market. Listing agents are experts at maximizing the value of your home.

Listing agents can find out what improvements you should make and recommend who to contact to help.

Your agent will discuss the potential return on investment before you decide to make any improvements.

The agent will also stage the property if necessary. The agent can stage the property by removing clutter, furniture and other items that are not necessary. The agent knows how to help buyers imagine themselves and their belongings in the space.

Your agent can then hire a professional photographer to take photos of your home once it is in picture-perfect condition.

Marketing Expertise

Marketing is a key skill for a seller’s agent. They will know what buyers want and how to make your house appealing.

Your agent will showcase your home in the MLS as well as on social media. They do traditional marketing, such as open houses and flyers.

Buyers screening

It is stressful and time-consuming to try to sell your home. You don’t want to have to deal with unqualified buyers. Your agent will ensure that no one wastes your time. Even a buyer that is truly interested in buying your house might not be able to get financing.

The agents earn money by way of a commission. It is in both your and their best interests to eliminate and screen out unqualified buyers.

Your agent will only work with buyers who are pre-approved and have gone through financial verification.

A good seller’s representative can provide you with a great deal of value. Many of the things that they do, you cannot or may not want to do yourself. 

 

Original Blog: https://realtytimes.com/archives/item/1044820-what-does-a-real-estate-agent-do-for-sellers?rtmpage=

Using a Cash-Out Refinance for a Second Home

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You can use the equity in your home in a number of ways. You can use it to purchase a second house.

If you are considering a cash-out refinance to purchase a second house, there are a few things to consider.

What is a Cash-Out Refinance?

Cash-out refinances are a way of refinancing your mortgage by converting your equity into cash. You get a mortgage that is higher than your old balance and the difference in cash.

One of the most common reasons for refinancing is to get better terms than what they had with their previous loan. You might refinance, for example, to lower your monthly payment or take advantage a lower rate of interest. Cash-out refinances are a great way to tap into your home’s equity and get cash.

In a cash-out loan, your home is used as collateral. You’ll get a new mortgage that is larger than the amount you currently owe.

How to Buy a Home with a Cash-Out Refinance 

Cash-out refinancing is only possible if your home’s current value is higher than the balance of your mortgage.

A lender will allow you to withdraw up 80% of the value of your house, minus any remaining balance.

You can use the money you receive to put down your next property.

As with a conventional refinance loan, you still need to qualify.

In most cases, lenders will require at least a credit score above 620 and a debt to income ratio of 50%, but preferably lower.

If you plan to use the cash-out refinance proceeds to purchase an investment property, expect to put down anywhere between 15 and 25%.

If you are buying a primary home, a lower down payment is accepted.

Lenders do not have any guidelines that prohibit you from using the proceeds of a cash-out refinance to pay for the down payment on another property.

Considerations to Keep in Mind

You can choose between a fixed rate or variable rate loan when applying for a refinance cash-out. If you receive a variable-rate mortgage, your payments may increase depending on the interest rates.

If you refinance with cash out, the interest rate of your new loan could be higher than that of your original loan. This means you may end up paying more over the life of your loan.

You need to decide if you can afford the extra interest you would pay if you bought another property. This can also extend the repayment period of your current debt, so it’s not always a good choice.

Closing costs can range from 2 to 5% of your new refinance loan. These will be deducted from your cash payout. You can’t add them to the mortgage.

A home equity loan is another option. Home equity loans do not have closing costs. This is a major advantage. This could be cheaper than a cash out refinance, if you have a mortgage with a lower rate than what is required.

The biggest disadvantage of a cash-out refinance, is that you will have to use your primary residence as collateral, even if it’s to purchase another home. Your lender can prevent foreclosure on your primary residence if you default.

 

Original Blog: https://realtytimes.com/archives/item/1045164-using-a-cash-out-refinance-for-a-second-home?rtmpage=

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