If you are thinking about selling your home, then you want to make sure that you get as much money for your home as possible. Therefore, there is a solid chance that you are thinking about all of the places that you watched your kids grow up, the numerous parties that you hosted, and the countless holidays that you celebrated. To you, those memories are priceless.

Therefore, you should put these factors aside when you are selling your home. You aren’t selling your memories. Instead, you are trying to sell a home. If you want your home to sell quickly, there are a few tips that you should follow.

Do Not Price Your Home High Immediately

You probably think that your house is wonderful. After all, that is why you decided to move in all those years ago. The problem is that if you price your home too high at the beginning, then it might sit on the market for a long time. The longer a home sits on the market, the harder it is going to be to sell. Therefore, do not miss that window of opportunity. Instead, try to price your home to sell. Generate plenty of interest in your home so that you receive multiple offers. That is how you can get the most money possible for your home while still selling it quickly.

Don’t Assume Recent Renovations Are Going To Provide You With A Higher Price

If you have watched a lot of TV shows, then you might assume that renovations are going to drive up the listing price. This is not necessarily the case. You need to assess the market value of the renovations that you completed in the context of your home. That way, you can make sure that you recoup as much money as possible.

Price Your Home To Sell

These are just a few of the most important tips that you need to keep in mind if you want to make sure that you price your home to sell. If you want your home to sell quickly, then you need to ensure that you get plenty of interest in it. Pricing your home to sell will help to make this happen.

When people are looking for a home, this is an exciting process. There is always something fun about looking at potential homes and envisioning a future there. This is a big decision. At the same time, it is just as important for people to think about how much of their money they should be spending on their mortgage. There are a few rules of thumb that people should keep in mind. 

The 28 Percent Rule

One of the most common rules that financial advisors and lenders are going to talk about is going to be the 28 percent rule. This rule states that people should not be spending any more than 28 percent of their pre-tax income on their monthly housing payments. This includes not only the mortgage but also any potential homeowners association fees, real estate taxes, and home insurance payments. Once people figure out how much they can afford on their monthly mortgage payment, they can work backward to see how large of a house they can afford. 

The 36 Percent Rule

The other rule that homebuyers are going to hear is the 36 percent rule. This is a rule that pertains to all debt. Therefore, this rule includes not only the monthly mortgage payments but also any car payments, credit card payments, utilities, and student loans. In general, no more than 36 percent of someone’s pre-tax income should be going toward debt. This is very important for taking out a home loan because it is going to impact someone’s debt to income ratio. If the debt to income ratio is too high, then potential homeowners are going to have a hard time getting a great deal on a mortgage. Furthermore, they could even be denied completely. 

Find The Right House

For those who are looking for a home, this is an exciting time. At the same time, it can also be hard to find the right home when people don’t know exactly what they’re looking for. When potential homeowners understand what their budget is, this process gets much easier. Therefore, everyone needs to think about how big of a monthly mortgage payment they can afford. This will help them make the right decision.

 

Last week’s economic reporting included readings on housing market conditions, sales of previously owned homes, and housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims were also released.

NAHB: Homebuilder Confidence Hits Record High in November

The National Association of Home Builders reported a fourth consecutive record high for builder confidence as November’s index reading of 90 exceeded October’s reading of 80. Any reading over 50 indicates that most home builders are confident about housing markets.

Component readings for the Housing Market Index also rose. Builder confidence in current market conditions rose six points to 96. Builder confidence in housing market conditions within the next six months rose one point to 89 and builder confidence in buyer traffic in new housing developments increased by three points to an index reading of 77. Readings of 50 or more for buyer traffic were rare until recent months. Factors driving builder confidence include high demand for homes and record low mortgage rates. High demand for single-family homes is rising due to relocation to suburbs and increased demand for larger homes.

Housing Starts Increase as Building Permits Issued Hold Steady

Commerce Department readings for October show that housing starts rose to 1.530 million starts on a seasonally-adjusted annual basis. Analysts expected a pace of 1.490 million housing starts based on 1.459 million starts reported in September. 1.545 million building permits were issued in October, which matched September’s reading.

Mortgage Rates Hit Another Record Low; Jobless Claims Data Mixed

Freddie Mac reported new record low mortgage rates for the fourth consecutive week. Rates for 30-year fixed-rate mortgages averaged 12 basis points lower at 2.72 percent; rates for 15-year fixed-rate mortgages averaged 2.28  percent and were six basis points lower. Rates for 5/1 adjustable rate mortgages dropped by 26 basis points to 2.85 percent on average. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.30 percent.

First-time jobless claims rose to 742,000 claims filed; analysts expected 710,000 claims filed based on the prior week’s reading of 711,000 initial jobless claims filed. Ongoing jobless claims fell to 6.37 million claims filed as compared to 680,000 continuing jobless claims filed in the prior week.

October sales of previously-owned homes rose to 6.85 million sales on a seasonally-adjusted annual basis as compared to September’s reading of 6.80 million sales of previously-owned homes.

What’s Ahead

This week’s scheduled economic reporting includes readings from Case-Shiller Indices on home prices; new home sales will also be released along with the University of Michigan’s report on consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.

Are you about to buy a house or condo for the first time? Congratulations! Owning your own piece of real estate is a liberating experience and one that will provide you with the foundation to build your personal wealth and equity. Once you own your own home you’ll be responsible for a variety of new costs, including property taxes which are assessed by your local government to pay for municipal services. In this blog post we’ll share how property taxes work and what you can expect to pay when you buy your new home.

It All Begins with a Local Property Tax Assessment

As mentioned above, local governments assess property taxes as a means for paying for police officers, fire fighting services, road maintenance and the other various costs that come with running a town or city. Whether you’re buying a house, a townhouse or a condo, the property that your home sits on is inside of an area known as an “assessment area”. When the local government determines what your local tax levy or tax rate will be, they will assess your home based on the real estate market value of similar homes in the area. You can multiply your tax rate by the assessed value of your home to determine how much you’ll owe in property tax.

Property Taxes as Part of Your Closing Costs

When you close on your new home you’ll have to pay property taxes, and your real estate agent will help you to understand how much these taxes will be and how they will be paid. In most cities and counties you’ll pay a pro-rated amount of property tax that covers the time span from the date you purchase the home until the end of the year, after which time you’ll be paying your full assessed rate.

Don’t Forget Your Overall Tax Picture

Finally, don’t forget that property taxes can be factored in to the rest of your overall tax picture. Check with your accountant or another financial professional to determine whether or not you can write your property taxes off against your income tax to save some additional money. There are numerous tax benefits to owning a home, so it’s best to start using them from day one.

As with all other taxes, property taxes are a fact of life that every homeowner faces. When you’re ready to buy a new home and to learn more about how property taxes will affect your purchase, contact your local real estate agent today.

Buying a new home is an exciting experience.  At the same time, it is also important for everyone to think about a few important topics that have to be discussed before they place an offer on a home. That way, everyone can rest easy, knowing they have done their due diligence when it comes to purchasing a new home.

Do Not Neglect The Noise Level Of The Neighborhood

One of the most commonly overlooked topics when it comes to buying a house is the noise level of the neighborhood. Some noise from the outside world is to be expected, particularly for those who move into a busy neighborhood. During a tour of the potential home, it is a good idea to ask realtors to lower the level of background noise. That way, people can get a good feel for what the potential neighborhood noise level might be like. 

Always Ask About The Age Of The Roof

One of the easiest facets of a house to overlook is the roof. At the same time, the roof is also one of the biggest parts of the home. Therefore, it is a good idea for everyone to make sure they do a thorough inspection of the roof. They should look for damages both from the outside as well as inside. Ask about the age of the roof as well. Be sure to check for damaged shingles.

Ask About The Age Of The HVAC System

Another topic that has to be discussed is the HVAC system. In general, people should expect to get between 15 and 20 years of life out of their HVAC system. If the HVAC system in the home is getting close to the point of replacement, then it might be a good idea to ask for a price reduction because the new homeowner is going to have to replace the HVAC system in the near future.

Perform Due Diligence Before Buying A Home

These are a few of the most important points that people have to follow when they are buying a new home. Asking about these issues ahead of time can prevent homeowners from being surprised down the road.

 

Last week’s economic reporting included readings on inflation and consumer sentiment along with weekly readings on mortgage rates and jobless claims. Federal Reserve Chair Jerome Powell and Federal Reserve Board members addressed economic expectations resulting from the COVID-19.

Chair Powell said that there would be no quick fix for the economy and that the economy would suffer for four to six months until the pandemic slows. He also said that a COVID-19 vaccine would not be a panacea for the virus and said that “ the next few months could be challenging” as the virus spreads at a faster pace.

Inflation Stalls as Pandemic Progresses

The Commerce Department reported no growth in the Consumer Price Index and Core Consumer Price Index in October. The readings for both indices were identical with 0.00 percent growth, 0.10 percent growth expected, and September’s month-to-month growth of 0.20 percent. Medical experts predicted  that COVID-19 cases would surge as cooler weather arrived.

The cost of living rose from June to October, but this was a recovery from deep dips in consumer prices as the pandemic took hold. The year-over-year inflation rate slowed to 1.20 percent in October from September’s reading of  1.40 percent. Annual inflation was growing by 2.30 percent before the pandemic.

Mortgage Rates Rise, Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages increased by six basis points to 2.84 percent. The average rate for 15-year fixed-rate mortgages rose by two basis points to 2.34 percent and rates for 5/1 adjustable rate mortgages jumped by 22 basis points to 3.11 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.40 percent.

First-time jobless claims fell last week to 709,000 filings. Analysts expected 731,000 new jobless claims based on the prior week’s reading of 751,000 initial jobless claims filed. Ongoing jobless claims were also lower last week with 6.79 million continuing claims filed. as compared to the prior week’s reading of 7.22 million ongoing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index posted a lower reading of 77.0 in November as compared to October’s index reading of 81.6 percent and the expected reading of 82.3. The dip in the Consumer Sentiment Index reflected increased consumer concern as covid-19 cases rose,

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders Housing Market Index, Commerce Department reporting on housing starts, and building permits issued. Data on sales of previously-owned homes will also be reported.

If you’ve been thinking about investing in a real estate project you may have considered buying a distressed house or two at a steep discount in order to fix them up and sell them at a higher price. This is known as “flipping”, and in today’s post we’ll share a quick guide to flipping homes and how to get started with this type of real estate investing.

Assessing Your Budget and Tolerance for Risk

We’ll start by stating the obvious: when you buy real estate with the intent of flipping it, losing money is a very real possibility. You’ll need to assess your own tolerance for risk and decide how much you want to invest in your real estate venture.

If you’re new to buying homes it’s a great idea to start small – an inexpensive “fixer upper” house or a condo – and work your way up from there. Spend some time crafting a budget to assess how much you’ll be spending to acquire the home and in repairs or renovations, and what you expect to receive when you sell.

Shopping for Suitable Houses and Condos

Once you’ve got your budget prepared and your finances are in order you’ll need to start looking for a suitable home. The ideal listing is one that is priced at a discount to all of the other homes in the neighborhood as the home is in some state of disrepair or has certain issues that need to be fixed up. Spend some time browsing through local property listings which are sorted by price and note which options are the least expensive. This is where you’ll want to start.

Scale Things Up by Finding a Partner

After you’ve bought, repaired and sold a home or two you’re likely going to want to scale things up. Consider bringing on a partner who can help shoulder some of the workload or one that may want to invest capital so that you can buy homes in a higher quantity. Remember, this is business; if you work with someone else you’ll want to formalize your arrangement with a written contract.

As with any business venture, there’s a bit of a learning curve that you’ll need to overcome when you begin flipping houses. As long as you’re patient and ready to move when you find the perfect home, you’ll soon find success with your real estate investments. 

As the temperature continues to drop outside, many people are worried about what is going to happen to their heating bills. Given the challenging economic year, nobody wants to pay more than they have to. On the other hand, there are ways that people can keep their heating bills as low as possible as long as they take steps to winter-proof their homes now. 

Prevent Drafts Under The Doors And Windows

One of the most common reasons why people end up using more heat than they should is that they are losing heat to the external environment. Often, this heat flows through gaps between windows and doors. Therefore, everyone has to make sure their windows and doors are closed when they are not using them. Then, consider adding stopgaps between doors and windows to prevent heat from exiting the home. If the windows are unlikely to be opened during the winter, then it might be a smart idea to seal them. 

Add Insulation To Hot Water Pipes And Tanks

Many people do not realize just how much heat they use keeping their water hot in their homes. It is a great idea for homeowners to add insulation to hot water tanks and pipes. By adding some simple insulation, the hot water heater is not going to have to work as hard to get hot water up to the right temperature. This can save homeowners a significant amount of money on their heating bills. 

Use A Smart Thermostat

Many homeowners run their heater when they do not have to. For example, they might run their heater when they are at work or asleep. This is unnecessary. By using a smart thermostat, everyone can set up a schedule for their heater. That way, their heater will shut off when the home does not have to be warmed to a specific temperature. At the same time, remember to warm the house to at least 55 degrees Fahrenheit at all times to prevent water from freezing in the pipes. 

Save Money On Heating Bills This Winter

These are a few of the top ways that homeowners can save money on their heating bills this winter without having to sacrifice their comfort.