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buying a home

General

How To Negotiate The Cost Of Repairs After A Home Inspection

There’s nothing like it. “It” being the feeling that you have when after finding the perfect house, making an offer that the seller agrees to and in your mind believing that you’re just weeks away from moving into your new home.

Except there’s a (potential) catch. Before you are able to officially declare the house as your own, a professional home inspection must take place. Although that takes a bit more time, honestly, that works in your favor because if the repair list amendment cites that the house has things like plumbing and electrical issues, that the roof needs to be replaced or that there is a problem with the heat and air unit, this means that you need to go back to the drawing board with the seller to renegotiate a new price.

If you’re curious about how to go about doing just that, we have provided a few things that you should keep in mind as it relates to the seller and also to you as the potential buyer:

May 31, 2013

General

How To Estimate The True Market Value Of Your Property

Let’s say someone knocks on your door ready to write a check to purchase your property. You are ready to sell and they’re ready to buy, but how much do you tell them your home is worth? The true market value or true cash value of your home is different if you were going to sell it in foreclosure or in some other type of forced sale. The true market value is what you would get if someone did happen to show up at your home with their checkbook, but how do you give them more information if you don’t have it? Here is how to estimate the true market value of your property.

One way to determine the true cash value of your home is by looking over your property tax bills. Usually an assessor will come up with an abstract number based on the fluctuations of the economy and the housing market. Once you find the assessor’s value, you usually want to double it to get an accurate price for your property. If you were going to sell it privately, you could add a percentage point or two to your final estimate to get the best price, but you never want to gouge.

May 24, 2013

Money Saving Tips

Study Shows Energy Star Homes Less Likely To Default

If you live in an Energy Star home or you’re in the market for one, there are definitely some benefits that come with owning one. They have great insulation. Their windows come with protective coatings that block ultraviolet sun rays. Their energy-efficient central air systems are quieter while reducing the levels of humidity within the home. They also come with appliances that are Energy Star certified; many of which use 50-60 percent less electricity than other standard models. Plus, there’s the added bonus of the fact that all of these things combined can save homeowners an average of $200-400 in utility bills annually.

Perhaps that’s a big part of the reason why a study that was recently released by the University of North Carolina – Center for Community Capital reveals that another benefit of having an Energy Star home is that it is much less likely to default than other ones. How much less likely? A whopping 32 percent, to be exact.

This data was released after approximately 71,000 Energy Star single-family homes were compared to similar homes that do not have that certification. What was discovered was that no matter where the homes were located, the value of the house or the loaner’s credit history (among other criteria), consistently, across the board, Energy Star homes did not go into default nearly as much. Another interesting fact that was also published in the study is that the more energy efficient an Energy Star house proved to be, the lower the risk of default became.

March 22, 2013

General

How To Buy A Home With Good Resale Value

When most people approach the prospect of buying a home, the ultimate resale value probably isn’t the first priority. In many cases they are seeking a property that meets certain needs, whether it has enough rooms to support their current family (or account for future growth), a yard for kids to play in, and a modern, gourmet kitchen, or it provides a good school district, a safe neighborhood, and proximity to a job, just for example. In addition, the majority of prospective buyers are working with a budget, which can limit options. So when it comes to considering the potential for resale value down the road, you simply might not be thinking that far ahead. However, you have to consider that buying a home for personal use also entails purchasing a financial asset, and an expensive one at that. You need to know that the money you’re putting in is going to pay off at some point with a return on investment. So here are just a few things you may want to think about before you buy.

The first thing to consider is the age and condition of the home itself. If you’re purchasing a property that’s older than you, you’re likely to encounter all kinds of issues. For example, roof leaks, plumbing problems, inadequate electrical systems, and outdated decor are all things that you might find in an older home (as well as hazards like popcorn ceilings that contain asbestos). What this means for you should you purchase the home is sinking in a lot more money if you want to turn your fixer-upper into an attractive property for another buyer during your tenure in residence. Of course, in many cases such upgrades can significantly add to the value of your home, so it’s certainly something to think about if you happen to be a handy sort.

March 2, 2013

Money Saving Tips

Saving Up For Your First Home

There will come a time when you wish to say goodbye to rental properties and purchase a home of your own. Indeed, often a mortgage works out cheaper than renting anyway.

The Largest Purchase You Will Ever Make

Saving money for a house is unlike saving for most other things. The amount will usually be larger than for any other goal you have ever tackled, and so the time frame will be much longer. The amount required is notoriously difficult to calculate and the sum of money you need will be much less intimidating if you think of it as a monthly amount rather than a lump sum. The larger the deposit you save, the more flexible the mortgage and the more competitive the interest rates. It is wise to create a graphical tool to motivate your saving, for example, a money thermometer. In the run-up to your purchase, you could free up money by avoiding or at least reducing the cost of renting by moving in with your parents or in-laws or sharing a house with friends.

November 15, 2012

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