Provided By Yahoo! Real Estate
With the economy more precarious and housing starts and sales somewhat sluggish, homeowners are wise to consider hot trends to differentiate their home from others on the block.
But gone are the days when homeowners were eager to have the largest house on the block. Many also are less interested in gaining a spa bathroom when they have less leisure time to soak; ditto for chef-worthy kitchens.
The last survey from the National Association of Home Builders reported that more homeowners are looking foremost for value rather than splash in building or buying a new house, says Stephen Melman, the NAHB's director of economic services, economics and housing policy. "More than 40 percent of new homebuyers are first-time purchases, so money is an issue. Affordability is driving every decision," he says.
The same goal of getting as much for their money holds true for remodelers, according to Kermit Baker , chief economist at the American Institute of Architects. "Many are remodeling homes in infill areas, since there's less demand for large suburban subdivisions," he says. Houses with close proximity to public transit, employment centers, retail, entertainment options, access to open recreational space and multigenerational options are among the most popular, Baker says. In contrast, homes with specialized media and workout rooms are less sought after, he says.
While the goal should be to build or remodel so improvements meet an owner's lifestyle and budget, it's smart to know what's desirable. Here's what's currently hot in the home:
Walk-in master-bedroom closets
More closet space, with ample room to move about, contributes to efficiency - especially for homeowners trying to get dressed and out the door in a hurry each morning.
Home offices
With more working from home on a full- or part-time basis, or picking up freelance work, a home office or devoted work area holds allure, Baker says.
Popular porches
Whether at the front of the house or back and whether open air or screened, the iconic porch has become more of a must-have.
Smaller dining rooms
Not yet dead and gone, the dining room is shrinking in many houses or becoming a corner of a living or great room. "It can be located against a wall to designate where it's located," says Melman.
Indoor kitchens only
The outdoor kitchen - one of the housing boom's hallmarks of opulence - has seemed to lost its favor, as it can be expensive to outfit, and, after all, the indoor kitchen may be just steps away. It maintains some value in warmer climates, however, due to its role in enhancing casual living.
Flexible arrangements
With more adults downsizing but wanting to have room for family, rooms that lend themselves to flexible arrangements are key. Fairfield, N.J.-based designer Judi Schwarz suggests pushing a sofa away from a wall so there's space for storage behind or having a banquette by a table to accommodate more at meals.
Energy efficiency
At the top of lists are modern-day standards like good insulation and LED lights with dimmers, plus sustainable features like tankless water heaters, Melman says.
Main-floor masters
The trend continues as baby boomers age and purchase, perhaps, their last new home.
Smaller garages
With folks eschewing massive gas-guzzling SUVs, the demand for the big garage with three bays and storage space is dwindling.
High ceilings
Despite a trend toward smaller homes, ceilings are rising a bit, though not necessarily to former two-story volumes, says Gary Drake, CEO of Drake Construction in Los Angeles.
Striking flooring
Among the hottest choices are pre-finished antique ebony oak, Jerusalem Gold classic limestone, Crema Marfil 18-square stone tiles and natural fiber flooring made from eco-friendly sources such as bamboo, Drake says.
Are you looking for fabulous ways to make your home stand out from other listings? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Showing posts with label home selling. Show all posts
Showing posts with label home selling. Show all posts
Wednesday, April 6, 2011
Friday, March 4, 2011
6 Things That Turn Home Buyers Off (and What Sellers Can Do To Prevent It)!
Provided By Trulia
We've talked about surprising home features buyers LOVE, and about why buyers aren't biting on today's market, despite it being highly affordable. But we haven't talked much about the characteristics of sellers, listings and homes that turn buyers all the way off. Well, not until now!
Here are 6 big-time homebuyer turn-offs that make buyers cringe at the thought of your home, and action steps you can take to prevent your home from being an offender:
1. Stalker-ish sellers. I know you think you’re being helpful, walking the buyer through your home and pointing out the wagon-wheel light fixture you made with your own two hands, the custom mural of a stingray you paid top dollar to have painted across your living room wall and the way the sounds of happy schoolchildren running across the front yard of your corner lot to get to the school in the next block lifts your spirits. However, the buyers might be trying really hard to ignore, minimize or figure out how to undo the very features of your home you hold dear. They also may want or need to have personal space and conversations with their mate or their agent while they’re viewing your home - you being there, especially walking right alongside them while they’re in your home, prevents them from being comfortable about doing this, or discussing all the things they would change if the home were theirs. In my experience, the more nitpicky a buyer gets about a house and the more detailed their list of things they would change, the more serious they are about considering making an offer on this place.
What’s a Seller to do? Back off. Let your home be shown vacant, or leave the house when people come to see it. If you need to be there, at least walk outside or go sit at the coffee shop down the way while prospective buyers view your home. If the buyers have questions, their people will contact your people.
2. Shabby, dirty, crowded and/or smelly houses. You already know this one. Yet, buyers constantly marvel. The buyers who come to see your home are making the decision whether to choose your home for the biggest purchase they’ve ever made during the worst economic conditions most of them have ever experienced. Your job is to get your home noticed – favorably – above the sea of other homes on the market, many of which are priced very, very low.
What’s a Seller to do? Other than listing your home at a competitive price, the only tool within your control for differentiating your home from all the foreclosures and short sales is to show it in tip-top shape. Pre-pack your place up, getting rid of as many of your personal effects as possible. Do not show it without it being completely cleaned up: no laundry or dishes piled up, countertops freshly washed, smelly dogs (I have a couple who smell on occasion – no judgment – but don’t show your house with pet odors) or litter boxes cleaned and/or out of the house.
3. Irrational seller expectations (i.e., overpricing). Buying a house on today’s market is hard work! On top of all the research and analysis about the market and situating their own lives to be sure they’ll be able to afford the place for 5, 7, 10 years - or longer, buyers have to work overtime to separate the real estate wheat from the chaff, get educated about short sales and foreclosures and often put in many, many offers before they get even a single one accepted. The last thing they want to add to their task lists is trying to argue a seller out of unreasonable expectations or pricing. And, in fact, there are so many other homes on the market, buyers don’t have to do this. When they see a home whose seller is clearly clueless about their home’s value and has priced it sky-high, most often they won’t bother even looking at it. If they love it, they’ll wait for it to sit on the market for awhile, hoping the market will “educate you” into desperation, priming the pump for a later, lowball offer.
What’s a Seller to do? Get real. Get out there and look at the other properties that are for sale in your area and price range. Get multiple agents’ take on what your home should be listed at, and don’t take it personally if their recommendation is low. If your home has much less curb appeal or space or is much less upgraded than the house across the way, don’t list it at the same price and expect it to sell. If you owe more than your home is realistically worth, you may need to reexamine whether you really want or need to sell, or consider a short sale, if you simply have to sell. Don’t be tempted into testing your market with an obviously too-high price, unless you’re prepared to have your home lag on the market and get lowball offers.
4. Feeling misled. Here’s the deal. You will never trick someone into buying your home. If the listing pics are photo-edited within an inch of their lives, or your home is described as an “approved” short sale when, in fact, the bank approved another offer, now withdrawn, but will require a new offer to go through any sort of approval process (even a truncated one), buyers will learn this information at some point. If your neighborhood is described as funky and vibrant, as code for the fact that your house is under the train tracks and you live in between a wrecking yard and a biker bar, prospects will figure this out. If the detailed information about your home, neighborhood or even transactional position (e.g., short sale status, seller financing, etc.) is misrepresented, the sheer misrepresentation will turn otherwise interested buyers off. If you authorize your agent to “verbally approve” the buyer’s offer, don’t go back the next day demanding an extra $5,000. In cases where the buyer feels misled, whether or not that was your intention, running through the buyer’s mind is this question: If they can’t trust you to be honest about this, how can they trust you to be honest about everything else?
What’s a Seller to do? Buyers rely on sellers to be upfront and honest – so be both. If your home has features or aspects that are often perceived negatively, your home’s listing probably shouldn’t lead with them (like the ad I recently saw with the intro line: “this place is a mess!”), but neither should you go out of your way to slant or skew or spin the facts which will be obvious to anyone who visits your home. Make sure you know what the listing of your home reads like, before it’s published to the web, and that a prospective buyer will not feel misled by it.
5. New, ugly home improvements. Many a buyer has walked into a house that has clearly been remodeled and upgraded in anticipation of the sale, only to have their heart sink with the further realization that the brand-spanking-new kitchen features a countertop made, not of Carerra marble, but brand-new, pink tiles with a kitty cat in the middle of each one (I saw this once, people – no joke). Or the pristine, just-installed floors feature carpet in a creamy shade of blue – the buyer’s least favorite color. New home improvements that run totally counter to a buyer’s aesthetics are a big turn-off, because in today’s era of Conspicuous Frugality, buyers just can’t cotton to ripping out expensive, brand new, perfectly functioning things just on the basis of style – especially since they’ll feel like they paid for these things in the price of the home.
What’s a Seller to do? Check in with a local broker or agent before you make a big investment in a pre-sale remodel. They can give you a reality check about the likely return on your investment, and help you prioritize about which projects to do (or not). Instead of spending $40,000 on a new, less-than-attractive kitchen, they might encourage you to update appliances, have the cabinets painted and spend a few grand on your curb appeal. Many times, they will also help you do the work of selecting neutral finishes that will work for the largest possible range of buyer tastes.
6. CRAZY listing photos (or no photos at all). Here at Trulia, we’ve seen listing photos that have dumpsters parked in front of the house, piles of laundry all over the “hardwood” floors touted in the listing description, and once, even the family dog doing his or her business in the lovely green front yard. Listing pictures that have put your home in anything but its best, accurate light are a very quick way to ensure that you turn off a huge number of buyers from even coming to see your house! The only bigger buyer turn-off than these bizarre listing pics are listings that have no photos at all; most buyers on today’s market see a listing with no pictures and click right on past it, without giving the place a second glance.
If you are ready to sell your home give us a call at 972-772-7000 or email us at rockwall@kw.com.
We've talked about surprising home features buyers LOVE, and about why buyers aren't biting on today's market, despite it being highly affordable. But we haven't talked much about the characteristics of sellers, listings and homes that turn buyers all the way off. Well, not until now!
Here are 6 big-time homebuyer turn-offs that make buyers cringe at the thought of your home, and action steps you can take to prevent your home from being an offender:
1. Stalker-ish sellers. I know you think you’re being helpful, walking the buyer through your home and pointing out the wagon-wheel light fixture you made with your own two hands, the custom mural of a stingray you paid top dollar to have painted across your living room wall and the way the sounds of happy schoolchildren running across the front yard of your corner lot to get to the school in the next block lifts your spirits. However, the buyers might be trying really hard to ignore, minimize or figure out how to undo the very features of your home you hold dear. They also may want or need to have personal space and conversations with their mate or their agent while they’re viewing your home - you being there, especially walking right alongside them while they’re in your home, prevents them from being comfortable about doing this, or discussing all the things they would change if the home were theirs. In my experience, the more nitpicky a buyer gets about a house and the more detailed their list of things they would change, the more serious they are about considering making an offer on this place.
What’s a Seller to do? Back off. Let your home be shown vacant, or leave the house when people come to see it. If you need to be there, at least walk outside or go sit at the coffee shop down the way while prospective buyers view your home. If the buyers have questions, their people will contact your people.
2. Shabby, dirty, crowded and/or smelly houses. You already know this one. Yet, buyers constantly marvel. The buyers who come to see your home are making the decision whether to choose your home for the biggest purchase they’ve ever made during the worst economic conditions most of them have ever experienced. Your job is to get your home noticed – favorably – above the sea of other homes on the market, many of which are priced very, very low.
What’s a Seller to do? Other than listing your home at a competitive price, the only tool within your control for differentiating your home from all the foreclosures and short sales is to show it in tip-top shape. Pre-pack your place up, getting rid of as many of your personal effects as possible. Do not show it without it being completely cleaned up: no laundry or dishes piled up, countertops freshly washed, smelly dogs (I have a couple who smell on occasion – no judgment – but don’t show your house with pet odors) or litter boxes cleaned and/or out of the house.
3. Irrational seller expectations (i.e., overpricing). Buying a house on today’s market is hard work! On top of all the research and analysis about the market and situating their own lives to be sure they’ll be able to afford the place for 5, 7, 10 years - or longer, buyers have to work overtime to separate the real estate wheat from the chaff, get educated about short sales and foreclosures and often put in many, many offers before they get even a single one accepted. The last thing they want to add to their task lists is trying to argue a seller out of unreasonable expectations or pricing. And, in fact, there are so many other homes on the market, buyers don’t have to do this. When they see a home whose seller is clearly clueless about their home’s value and has priced it sky-high, most often they won’t bother even looking at it. If they love it, they’ll wait for it to sit on the market for awhile, hoping the market will “educate you” into desperation, priming the pump for a later, lowball offer.
What’s a Seller to do? Get real. Get out there and look at the other properties that are for sale in your area and price range. Get multiple agents’ take on what your home should be listed at, and don’t take it personally if their recommendation is low. If your home has much less curb appeal or space or is much less upgraded than the house across the way, don’t list it at the same price and expect it to sell. If you owe more than your home is realistically worth, you may need to reexamine whether you really want or need to sell, or consider a short sale, if you simply have to sell. Don’t be tempted into testing your market with an obviously too-high price, unless you’re prepared to have your home lag on the market and get lowball offers.
4. Feeling misled. Here’s the deal. You will never trick someone into buying your home. If the listing pics are photo-edited within an inch of their lives, or your home is described as an “approved” short sale when, in fact, the bank approved another offer, now withdrawn, but will require a new offer to go through any sort of approval process (even a truncated one), buyers will learn this information at some point. If your neighborhood is described as funky and vibrant, as code for the fact that your house is under the train tracks and you live in between a wrecking yard and a biker bar, prospects will figure this out. If the detailed information about your home, neighborhood or even transactional position (e.g., short sale status, seller financing, etc.) is misrepresented, the sheer misrepresentation will turn otherwise interested buyers off. If you authorize your agent to “verbally approve” the buyer’s offer, don’t go back the next day demanding an extra $5,000. In cases where the buyer feels misled, whether or not that was your intention, running through the buyer’s mind is this question: If they can’t trust you to be honest about this, how can they trust you to be honest about everything else?
What’s a Seller to do? Buyers rely on sellers to be upfront and honest – so be both. If your home has features or aspects that are often perceived negatively, your home’s listing probably shouldn’t lead with them (like the ad I recently saw with the intro line: “this place is a mess!”), but neither should you go out of your way to slant or skew or spin the facts which will be obvious to anyone who visits your home. Make sure you know what the listing of your home reads like, before it’s published to the web, and that a prospective buyer will not feel misled by it.
5. New, ugly home improvements. Many a buyer has walked into a house that has clearly been remodeled and upgraded in anticipation of the sale, only to have their heart sink with the further realization that the brand-spanking-new kitchen features a countertop made, not of Carerra marble, but brand-new, pink tiles with a kitty cat in the middle of each one (I saw this once, people – no joke). Or the pristine, just-installed floors feature carpet in a creamy shade of blue – the buyer’s least favorite color. New home improvements that run totally counter to a buyer’s aesthetics are a big turn-off, because in today’s era of Conspicuous Frugality, buyers just can’t cotton to ripping out expensive, brand new, perfectly functioning things just on the basis of style – especially since they’ll feel like they paid for these things in the price of the home.
What’s a Seller to do? Check in with a local broker or agent before you make a big investment in a pre-sale remodel. They can give you a reality check about the likely return on your investment, and help you prioritize about which projects to do (or not). Instead of spending $40,000 on a new, less-than-attractive kitchen, they might encourage you to update appliances, have the cabinets painted and spend a few grand on your curb appeal. Many times, they will also help you do the work of selecting neutral finishes that will work for the largest possible range of buyer tastes.
6. CRAZY listing photos (or no photos at all). Here at Trulia, we’ve seen listing photos that have dumpsters parked in front of the house, piles of laundry all over the “hardwood” floors touted in the listing description, and once, even the family dog doing his or her business in the lovely green front yard. Listing pictures that have put your home in anything but its best, accurate light are a very quick way to ensure that you turn off a huge number of buyers from even coming to see your house! The only bigger buyer turn-off than these bizarre listing pics are listings that have no photos at all; most buyers on today’s market see a listing with no pictures and click right on past it, without giving the place a second glance.
If you are ready to sell your home give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, February 4, 2011
Home Refinancing Basics
In recent years, millions of homeowners have taken advantage of low rates and refinanced their mortgages. This article describes the advantages and possible pitfalls associated with a "refi."
Provided By Yahoo! Finance
Before You Start:
•Remember that refinancing to reduce debt can be a smart move, but refinancing in order to borrow more for consumer purchases (car, vacation, etc.) could set you back significantly.
•Read the fine print on your current mortgage to learn whether you'll be assessed penalties or fees for "getting out" of that loan early.
•Make sure you know whether you have a fixed or variable interest rate and what the terms are.
Home Refinancing Basics
In recent years, Americans seeking to take advantage of low interest rates have lined up to refinance their mortgages. In fact, refinancing hit an all-time high in 2003, and remained high in both 2004 and 2005, according to the Mortgage Bankers Association of America.
But while it's true that refinancing has the potential to help you reduce the costs associated with borrowing money to own a home, it is not necessarily a strategy that makes sense for every individual in every situation. So before you make a commitment to refinance your mortgage, it's important to do your homework and determine whether such a move is the right one for you.
To Refinance or Not
The old and arbitrary rule of thumb said that a refi only makes sense if you can lower your interest rate by at least two percentage points for example, from 9 percent to 7 percent. But what really matters is how long it will take you to break even and whether you plan to stay in your home that long. In other words, make sure you understand - and are comfortable with - the amount of time it will take for your overall savings to compensate for the cost of the refinancing.
Consider this: If you had a $200,000 30-year mortgage with an 8 percent interest rate, your monthly payment would be $1,468. If you refinanced at 6 percent, your new monthly payment would be $1,199, a savings of $269 per month. Assuming that your new closing costs amounted to $2,000, it would take eight months to break even. ($269 x 8 = $2,152). If you planned to stay in your home for at least eight more months, then a refi would be appropriate under these conditions. If you planned to sell the house before then, you might not want to bother refinancing. (See below for additional examples.)
Remember: All Mortgages Are Not Created Equal
Don't make the mistake of choosing a mortgage based only on its stated annual percentage rate (APR), because there are a variety of other important variables to consider, such as:
The term of the mortgage - This describes the amount of time it will take you to pay off the loan's principal and interest. Although short-term mortgages typically offer lower interest rates than long-term mortgages, they usually involve higher monthly payments. On the other hand, they can result in significantly reduced interest costs over time.
The variability of the interest rate - There are two basic types of mortgages: those with "fixed" (i.e., unchanging) interest rates and those with variable rates, which can change after a predetermined amount of time has passed, such as one year or five years. While an adjustable-rate mortgage (ARM) usually offers a lower introductory rate than a fixed-rate mortgage with a comparable term, the ARM's rate could jump in the future if interest rates rise. If you plan to stay in your home for a long time, it may make sense to opt for the predictability and security of a fixed rate, whereas an ARM might make sense if you plan to sell before its rate is allowed to go up. Also keep in mind that interest rates hovered near historical lows in recent years and are more likely to increase than decrease over time.
Points - Points (also known as "origination fees" or "discount fees") are fees that you pay to a lender or broker when you close the deal. While a "no-cost" or "zero points" mortgage does not carry this up-front cost, it could prove to be more expensive if the lender charges a higher interest rate instead. So you'll need to determine whether the savings from a lower rate justify the added costs of paying points. (One point is equal to one percent of the loan's value.)
How Much Would You Save?
A homeowner with a 30-year, $200,000 mortgage charging 8% interest would pay $1,468 each month.
A Closer Look at Mortgage Fees
Using data collected during 2003, researchers at Bankrate.com determined the average fees charged to consumers who borrow money to buy a home. Based on a loan of $180,000, the fees broke down as follows:
Average Lender/Broker Fees
Administration fee: $336
Application fee: $205
Commitment fee: $498
Document preparation: $194
Funding fee: $228
Mortgage broker fee: $839
Processing: $320
Tax service: $73
Underwriting: $269
Wire transfer: $31
Third-Party Fees
Appraisal: $327
Attorney or settlement fees: $445
Credit report: $29
Flood certification: $17
Pest & other inspection: $68
Postage/courier: $45
Survey: $174
Title insurance: $605
Title work: $200
Government Fees
Recording fee: $76
Various taxes: $1,339
Stick With What You Know
Finally, keep in mind that your current lender may make it easier and cheaper to refinance than another lender would. That's because your current lender is likely to have all of your important financial information on hand already, which reduces the time and resources necessary to process your application. But don't let that be your only consideration. To make a well-informed, confident decision you'll need to shop around, crunch the numbers, and ask plenty of questions.
Summary:
•The decision to refinance should only be made if the long-term savings outweigh the initial expenses. To calculate your break-even point, divide the cost of the refi by your monthly savings. The resulting figure represents the number of months you will need to stay in the home to make the strategy work.
•Don't select a new mortgage based only on its annual percentage rate.
•Also evaluate the term of the loan, whether the interest rate is fixed or variable, and the relative merits of paying up-front fees in exchange for a lower rate.
•Your current lender already knows you and has your financial information on file, so you may be able to get a better deal that way, instead of going to a new lender.
•To get the best possible refinancing deal, you'll need to shop around, crunch some numbers, and ask a lot of questions.
Checklist:
•Shop around and conduct a detailed cost assessment (with a financial professional, if necessary) to identify which mortgage offers the greatest financial benefits.
•Read the entire contract before signing. Don't let anyone pressure you or rush you to make a hasty decision.
•If refinancing results in lower monthly payments, use those savings to pursue other important goals, such as preparing for retirement and college costs.
If you are stuck between making the decision to refinance or sell your home, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Yahoo! Finance
Before You Start:
•Remember that refinancing to reduce debt can be a smart move, but refinancing in order to borrow more for consumer purchases (car, vacation, etc.) could set you back significantly.
•Read the fine print on your current mortgage to learn whether you'll be assessed penalties or fees for "getting out" of that loan early.
•Make sure you know whether you have a fixed or variable interest rate and what the terms are.
Home Refinancing Basics
In recent years, Americans seeking to take advantage of low interest rates have lined up to refinance their mortgages. In fact, refinancing hit an all-time high in 2003, and remained high in both 2004 and 2005, according to the Mortgage Bankers Association of America.
But while it's true that refinancing has the potential to help you reduce the costs associated with borrowing money to own a home, it is not necessarily a strategy that makes sense for every individual in every situation. So before you make a commitment to refinance your mortgage, it's important to do your homework and determine whether such a move is the right one for you.
To Refinance or Not
The old and arbitrary rule of thumb said that a refi only makes sense if you can lower your interest rate by at least two percentage points for example, from 9 percent to 7 percent. But what really matters is how long it will take you to break even and whether you plan to stay in your home that long. In other words, make sure you understand - and are comfortable with - the amount of time it will take for your overall savings to compensate for the cost of the refinancing.
Consider this: If you had a $200,000 30-year mortgage with an 8 percent interest rate, your monthly payment would be $1,468. If you refinanced at 6 percent, your new monthly payment would be $1,199, a savings of $269 per month. Assuming that your new closing costs amounted to $2,000, it would take eight months to break even. ($269 x 8 = $2,152). If you planned to stay in your home for at least eight more months, then a refi would be appropriate under these conditions. If you planned to sell the house before then, you might not want to bother refinancing. (See below for additional examples.)
Remember: All Mortgages Are Not Created Equal
Don't make the mistake of choosing a mortgage based only on its stated annual percentage rate (APR), because there are a variety of other important variables to consider, such as:
The term of the mortgage - This describes the amount of time it will take you to pay off the loan's principal and interest. Although short-term mortgages typically offer lower interest rates than long-term mortgages, they usually involve higher monthly payments. On the other hand, they can result in significantly reduced interest costs over time.
The variability of the interest rate - There are two basic types of mortgages: those with "fixed" (i.e., unchanging) interest rates and those with variable rates, which can change after a predetermined amount of time has passed, such as one year or five years. While an adjustable-rate mortgage (ARM) usually offers a lower introductory rate than a fixed-rate mortgage with a comparable term, the ARM's rate could jump in the future if interest rates rise. If you plan to stay in your home for a long time, it may make sense to opt for the predictability and security of a fixed rate, whereas an ARM might make sense if you plan to sell before its rate is allowed to go up. Also keep in mind that interest rates hovered near historical lows in recent years and are more likely to increase than decrease over time.
Points - Points (also known as "origination fees" or "discount fees") are fees that you pay to a lender or broker when you close the deal. While a "no-cost" or "zero points" mortgage does not carry this up-front cost, it could prove to be more expensive if the lender charges a higher interest rate instead. So you'll need to determine whether the savings from a lower rate justify the added costs of paying points. (One point is equal to one percent of the loan's value.)
How Much Would You Save?
A homeowner with a 30-year, $200,000 mortgage charging 8% interest would pay $1,468 each month.
A Closer Look at Mortgage Fees
Using data collected during 2003, researchers at Bankrate.com determined the average fees charged to consumers who borrow money to buy a home. Based on a loan of $180,000, the fees broke down as follows:
Average Lender/Broker Fees
Administration fee: $336
Application fee: $205
Commitment fee: $498
Document preparation: $194
Funding fee: $228
Mortgage broker fee: $839
Processing: $320
Tax service: $73
Underwriting: $269
Wire transfer: $31
Third-Party Fees
Appraisal: $327
Attorney or settlement fees: $445
Credit report: $29
Flood certification: $17
Pest & other inspection: $68
Postage/courier: $45
Survey: $174
Title insurance: $605
Title work: $200
Government Fees
Recording fee: $76
Various taxes: $1,339
Stick With What You Know
Finally, keep in mind that your current lender may make it easier and cheaper to refinance than another lender would. That's because your current lender is likely to have all of your important financial information on hand already, which reduces the time and resources necessary to process your application. But don't let that be your only consideration. To make a well-informed, confident decision you'll need to shop around, crunch the numbers, and ask plenty of questions.
Summary:
•The decision to refinance should only be made if the long-term savings outweigh the initial expenses. To calculate your break-even point, divide the cost of the refi by your monthly savings. The resulting figure represents the number of months you will need to stay in the home to make the strategy work.
•Don't select a new mortgage based only on its annual percentage rate.
•Also evaluate the term of the loan, whether the interest rate is fixed or variable, and the relative merits of paying up-front fees in exchange for a lower rate.
•Your current lender already knows you and has your financial information on file, so you may be able to get a better deal that way, instead of going to a new lender.
•To get the best possible refinancing deal, you'll need to shop around, crunch some numbers, and ask a lot of questions.
Checklist:
•Shop around and conduct a detailed cost assessment (with a financial professional, if necessary) to identify which mortgage offers the greatest financial benefits.
•Read the entire contract before signing. Don't let anyone pressure you or rush you to make a hasty decision.
•If refinancing results in lower monthly payments, use those savings to pursue other important goals, such as preparing for retirement and college costs.
If you are stuck between making the decision to refinance or sell your home, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, January 31, 2011
Your Home and Your Retirement
Provided By Yahoo! Finance
Many retirees are planning to access home equity, hoping it may make the difference between a comfortable retirement and just getting by. This article considers some of the strategies for tapping home equity, such as moving to a more affordable residence or obtaining a reverse mortgage.
Before You Start:
•Talk with your spouse or partner about using your home to help finance retirement. Are you in agreement?
•Consider whether your plans are realistic. For example, ask yourself whether you could really downsize to a smaller home.
•Begin looking into the cost-of-living implications that would be associated with moving to a different part of the country.
•Check your most recent retirement account statement to determine whether you're already contributing the maximum amount.
Your Home and Your Retirement
Unlike earlier generations of retirees, who paid off first mortgages and retired at the family homestead, today's Baby Boomers are looking to capitalize on home equity to enhance their retirement savings. Popular strategies for tapping home equity include downsizing to a smaller house or condominium, relocating to an area where the cost of living is more affordable, and taking out a reverse mortgage.
Regardless of which strategy you choose, it's important to be realistic about what your house may be worth when you retire. Although housing prices have escalated considerably during the past few years, a variety of factors may cause them to level off or decline at some point in the future. Home equity may add value to a diversified portfolio, but relying too much on your house to fund your retirement could work against you if the real estate market in your area cools considerably.
Making a Move
Selling your existing home and relocating to a more affordable house or condominium may be a reasonable option if you have considerable home equity and the shift won't negatively affect your lifestyle. As part of your research, remember to investigate the overall housing costs in your desired area. For example, real estate values and property taxes typically vary considerably by locale, sometimes even within the same state. Additionally, before relocating to a new area, you might want to spend significant time there to make sure it is compatible with your lifestyle and interests.
When calculating your home's sale price as part of the retirement income equation, be sure to use realistic assumptions. Real estate prices have risen at above-average rates in recent years (see table on average annual rise in home prices, below), and there is always the potential that they may level off or even decline in the future. When planning your retirement income, remember the importance of diversification -- owning a portfolio of stocks, bonds, and cash investments in addition to home equity -- to help guard against market swings in any one area, including real estate. Of course, there are no guarantees that a diversified portfolio will protect against overall financial losses, but a diversified portfolio can position you to potentially take advantage of gains in several financial sectors.
Finally, when selling your home, consider that the first $250,000 in capital gains ($500,000 if you sell jointly with a spouse) is not subject to federal taxation if you lived in the house for two years or more.
A Reverse Mortgage: A Tool for Staying Put
Tapping home equity doesn't necessarily require relocating. A reverse mortgage may be a solution if you have significant home equity and a desire to stay in your existing home. With a reverse mortgage, you receive a source of income by borrowing against your home's equity. Payouts are tax free and may be taken as a lump sum, a line of credit, or an annuity-like payment schedule.
To qualify, you and other owners (such as a spouse or partner) must be at least 62 years of age. You must own your home outright or be able to retire an existing mortgage with the money you receive from the reverse mortgage. As long as the reverse mortgage is in effect, you are responsible for maintaining your home, and for paying taxes and insurance. The loan plus accrued interest is due when you die or sell the house.
When evaluating a reverse mortgage, be sure to consider the fees, which may be substantial. You may have to pay a loan origination fee of between 6% and 8% of the value of your home, in addition to servicing fees assessed over the term of the mortgage. Because of the relatively high fees, many experts recommend a reverse mortgage only if you plan to remain in your home for the long term. Also keep in mind that the amount you owe tends to grow over time, as interest (which is usually based on a variable, rather than fixed, rate) accrues on amounts that are gradually paid out. Over time, a reverse mortgage can completely exhaust the value of your home, leaving little if any assets left over for your heirs.
Payout Alternatives
Study payout options associated with a reverse mortgage carefully to determine whether one may work for you.
Payout Option Advantages Drawbacks
Lump sum You receive a considerable sum. Interest accrues on the entire amount.
Line of credit You have the flexibility to draw only as much as you need. Fees may outweigh the benefit if you draw only a small amount.
Annuity-like schedule You may receive a source of income for as long as you remain in your home. Payments are not indexed to inflation.
The recent boom in the national housing market may have lulled many Baby Boomers into believing their home equity will be enough to see them through a comfortable retirement. If you're among those who intend to rely on a home's value -- either through downsizing, relocating, or obtaining a reverse mortgage -- make sure that your plans include realistic projections. And remember that maintaining a diversified portfolio of other types of investments can potentially help balance out your overall pool of financial assets.
Summary:
•Strategies for accessing home equity may include selling your house and moving to a smaller residence, relocating to a community where the cost of living is more affordable, or obtaining a reverse mortgage.
•Because real estate values may potentially level off or even decline, it's important not to rely too much on the value of your home to finance your later years. Consider using home equity to supplement a diversified portfolio that includes stocks, bonds, and cash investments.
•Accessing home equity by selling your house may have the greatest appeal if you are able to find alternate housing without significantly compromising your lifestyle.
•A reverse mortgage may work for homeowners who have considerable home equity and want to remain in their current residence. Payout options typically include a lump sum, a line of credit, or an annuity-type schedule of payments.
•When evaluating reverse mortgages, review the fees and overall cost of borrowing (total interest paid over time), which may be considerable.
Checklist:
•Read the fine print before signing any type of reverse mortgage, paying particular attention to details about fees and expenses.
•Reinvigorate your traditional retirement saving initiatives by maximizing contributions to your workplace plans and/or IRAs.
•If a reverse mortgage will make it impossible for you to pass along the full value of your home to an heir or heirs, consider revising your estate plan accordingly.
•Don't base long-term financial plans on the assumption that your home will maintain or surpass its current value.
Do you have more questions about your home and retirement? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Many retirees are planning to access home equity, hoping it may make the difference between a comfortable retirement and just getting by. This article considers some of the strategies for tapping home equity, such as moving to a more affordable residence or obtaining a reverse mortgage.
Before You Start:
•Talk with your spouse or partner about using your home to help finance retirement. Are you in agreement?
•Consider whether your plans are realistic. For example, ask yourself whether you could really downsize to a smaller home.
•Begin looking into the cost-of-living implications that would be associated with moving to a different part of the country.
•Check your most recent retirement account statement to determine whether you're already contributing the maximum amount.
Your Home and Your Retirement
Unlike earlier generations of retirees, who paid off first mortgages and retired at the family homestead, today's Baby Boomers are looking to capitalize on home equity to enhance their retirement savings. Popular strategies for tapping home equity include downsizing to a smaller house or condominium, relocating to an area where the cost of living is more affordable, and taking out a reverse mortgage.
Regardless of which strategy you choose, it's important to be realistic about what your house may be worth when you retire. Although housing prices have escalated considerably during the past few years, a variety of factors may cause them to level off or decline at some point in the future. Home equity may add value to a diversified portfolio, but relying too much on your house to fund your retirement could work against you if the real estate market in your area cools considerably.
Making a Move
Selling your existing home and relocating to a more affordable house or condominium may be a reasonable option if you have considerable home equity and the shift won't negatively affect your lifestyle. As part of your research, remember to investigate the overall housing costs in your desired area. For example, real estate values and property taxes typically vary considerably by locale, sometimes even within the same state. Additionally, before relocating to a new area, you might want to spend significant time there to make sure it is compatible with your lifestyle and interests.
When calculating your home's sale price as part of the retirement income equation, be sure to use realistic assumptions. Real estate prices have risen at above-average rates in recent years (see table on average annual rise in home prices, below), and there is always the potential that they may level off or even decline in the future. When planning your retirement income, remember the importance of diversification -- owning a portfolio of stocks, bonds, and cash investments in addition to home equity -- to help guard against market swings in any one area, including real estate. Of course, there are no guarantees that a diversified portfolio will protect against overall financial losses, but a diversified portfolio can position you to potentially take advantage of gains in several financial sectors.
Finally, when selling your home, consider that the first $250,000 in capital gains ($500,000 if you sell jointly with a spouse) is not subject to federal taxation if you lived in the house for two years or more.
A Reverse Mortgage: A Tool for Staying Put
Tapping home equity doesn't necessarily require relocating. A reverse mortgage may be a solution if you have significant home equity and a desire to stay in your existing home. With a reverse mortgage, you receive a source of income by borrowing against your home's equity. Payouts are tax free and may be taken as a lump sum, a line of credit, or an annuity-like payment schedule.
To qualify, you and other owners (such as a spouse or partner) must be at least 62 years of age. You must own your home outright or be able to retire an existing mortgage with the money you receive from the reverse mortgage. As long as the reverse mortgage is in effect, you are responsible for maintaining your home, and for paying taxes and insurance. The loan plus accrued interest is due when you die or sell the house.
When evaluating a reverse mortgage, be sure to consider the fees, which may be substantial. You may have to pay a loan origination fee of between 6% and 8% of the value of your home, in addition to servicing fees assessed over the term of the mortgage. Because of the relatively high fees, many experts recommend a reverse mortgage only if you plan to remain in your home for the long term. Also keep in mind that the amount you owe tends to grow over time, as interest (which is usually based on a variable, rather than fixed, rate) accrues on amounts that are gradually paid out. Over time, a reverse mortgage can completely exhaust the value of your home, leaving little if any assets left over for your heirs.
Payout Alternatives
Study payout options associated with a reverse mortgage carefully to determine whether one may work for you.
Payout Option Advantages Drawbacks
Lump sum You receive a considerable sum. Interest accrues on the entire amount.
Line of credit You have the flexibility to draw only as much as you need. Fees may outweigh the benefit if you draw only a small amount.
Annuity-like schedule You may receive a source of income for as long as you remain in your home. Payments are not indexed to inflation.
The recent boom in the national housing market may have lulled many Baby Boomers into believing their home equity will be enough to see them through a comfortable retirement. If you're among those who intend to rely on a home's value -- either through downsizing, relocating, or obtaining a reverse mortgage -- make sure that your plans include realistic projections. And remember that maintaining a diversified portfolio of other types of investments can potentially help balance out your overall pool of financial assets.
Summary:
•Strategies for accessing home equity may include selling your house and moving to a smaller residence, relocating to a community where the cost of living is more affordable, or obtaining a reverse mortgage.
•Because real estate values may potentially level off or even decline, it's important not to rely too much on the value of your home to finance your later years. Consider using home equity to supplement a diversified portfolio that includes stocks, bonds, and cash investments.
•Accessing home equity by selling your house may have the greatest appeal if you are able to find alternate housing without significantly compromising your lifestyle.
•A reverse mortgage may work for homeowners who have considerable home equity and want to remain in their current residence. Payout options typically include a lump sum, a line of credit, or an annuity-type schedule of payments.
•When evaluating reverse mortgages, review the fees and overall cost of borrowing (total interest paid over time), which may be considerable.
Checklist:
•Read the fine print before signing any type of reverse mortgage, paying particular attention to details about fees and expenses.
•Reinvigorate your traditional retirement saving initiatives by maximizing contributions to your workplace plans and/or IRAs.
•If a reverse mortgage will make it impossible for you to pass along the full value of your home to an heir or heirs, consider revising your estate plan accordingly.
•Don't base long-term financial plans on the assumption that your home will maintain or surpass its current value.
Do you have more questions about your home and retirement? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, January 19, 2011
Tips for Appraisals
Provided By Realty Times
Appraisals allow for homeowners and buyers to establish what is fair market value of a property. In addition, an appraisal allows a lender to know how much they can safely lend.
According to The Appraisal Institute, a global membership association of professional real estate appraisers, "Appraisals are especially important because they are an objective and unbiased source of information. Unlike others involved in real estate transactions, the appraiser is an independent professional who performs a service for a fee rather than for a commission."
This process, however, can be trying and even frustrating. Recent declines in the housing markets have spawned scapegoats across the industry, including appraisers. And increased caution from lenders has slowed the buying process.
"Too many consumers in this struggling real estate market face problems with appraisals when attempting to buy or sell a home," said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. "But rather than passively endure delays in closing a sale, homeowners and buyers can take proactive steps to avoid pitfalls."
To reduce your stress during this time, consider these simple tips from the AI®.
•Understand the role of appraisals. It is neither in your interest nor the interest of your lender for you to purchase a property that is over-priced for its value.
•Make sure the lender hires a qualified appraiser (such as a designated SRA, SRPA or MAI member of the Appraisal Institute). The lowest priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.
•Accompany the appraiser during the inspection of the property if possible. The more active of a participant you are in the process, the more you will understand it, and be able to catch any errors.
•Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days.
•Examine the appraisal report and ask questions. Be sure to examine the report for errors. According to "Appraising the Appraisal: The Art of Appraisal Review," 2nd edition, common errors in appraisals include: misuse of adjustments to comparables, disregarding special financing and concessions, or miscalculation of gross living area.
•Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to contact them!
•Ask the lender to order a second appraisal by a qualified and designated appraiser.
•File legitimate complaints with appropriate state board or professional appraisal organizations.
If you are selling your home and need advice call the experts at 972-772-7000 or email us at rockwall@kw.com.
Appraisals allow for homeowners and buyers to establish what is fair market value of a property. In addition, an appraisal allows a lender to know how much they can safely lend.
According to The Appraisal Institute, a global membership association of professional real estate appraisers, "Appraisals are especially important because they are an objective and unbiased source of information. Unlike others involved in real estate transactions, the appraiser is an independent professional who performs a service for a fee rather than for a commission."
This process, however, can be trying and even frustrating. Recent declines in the housing markets have spawned scapegoats across the industry, including appraisers. And increased caution from lenders has slowed the buying process.
"Too many consumers in this struggling real estate market face problems with appraisals when attempting to buy or sell a home," said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. "But rather than passively endure delays in closing a sale, homeowners and buyers can take proactive steps to avoid pitfalls."
To reduce your stress during this time, consider these simple tips from the AI®.
•Understand the role of appraisals. It is neither in your interest nor the interest of your lender for you to purchase a property that is over-priced for its value.
•Make sure the lender hires a qualified appraiser (such as a designated SRA, SRPA or MAI member of the Appraisal Institute). The lowest priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.
•Accompany the appraiser during the inspection of the property if possible. The more active of a participant you are in the process, the more you will understand it, and be able to catch any errors.
•Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days.
•Examine the appraisal report and ask questions. Be sure to examine the report for errors. According to "Appraising the Appraisal: The Art of Appraisal Review," 2nd edition, common errors in appraisals include: misuse of adjustments to comparables, disregarding special financing and concessions, or miscalculation of gross living area.
•Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to contact them!
•Ask the lender to order a second appraisal by a qualified and designated appraiser.
•File legitimate complaints with appropriate state board or professional appraisal organizations.
If you are selling your home and need advice call the experts at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, January 12, 2011
The Closing Process
Provided By The Lending Tree
Closing consists of all the necessary final steps involved in sealing the deal on a home purchase. It includes:
The offer to purchase
There's no foolproof way to make an offer that's guaranteed to be accepted by the seller. But once you find your perfect house, it's wise to move fast. A good rule of thumb is to make an offer that's eight to 10 percent below the asking price, though that might not work in some areas based on trends in the market. This gives you some room to negotiate, but don't top what you've predetermined to be the highest price you can afford.
The deposit
Also known as earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. It is usually 1 percent of the home's purchase price and is included in an offer to purchase. Either the real estate agent or the seller's lawyer holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Contingencies
These are certain requirements specified in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. But in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Home inspection
In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is that a trained home inspector will be able to catch potential problems that a buyer might not detect.
The contract
This follows the acceptance of an offer by the seller, and it is a legal and binding obligation, on the part of the buyer, to purchase the property if any contingencies are met. It outlines the details of the transaction, including: a description of the property, the selling price, the date of closing, the possession date and any applicable contingencies.
Settlement sheet
Also called a "closing statement" or a "settlement statement," this is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides an enumerated list of the funds that were paid at closing. Items on the statement include real estate commissions and initial escrow amounts (money or securities deposited with a neutral third party - the escrow agent - to be delivered upon fulfillment of certain conditions). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Closing documentation
Before you can close on a house, some paperwork must be completed. This includes a title search to make sure the title is clear, title insurance to protect the buyer and the lender from an oversight regarding a claim on some aspect of the property and an application for homeowner's insurance (necessary for securing a mortgage).
Closing cost
The total amount of closing costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Your lender is required to give you prior notice of fees associated with your loan.
Final arrangements
Before the deal is closed and you take possession, you must make some practical arrangements regarding utility service and first mortgage payment.
Settlement
Settlement describes the payment of the balance of the purchase price the buyer owes on the property, and the transfer of the title. It takes place on the possession date specified in the agreement.
Are you ready to sell your home? Give the experts a call at 972-772-7000 or email us at rockwall@kw.com.
Closing consists of all the necessary final steps involved in sealing the deal on a home purchase. It includes:
The offer to purchase
There's no foolproof way to make an offer that's guaranteed to be accepted by the seller. But once you find your perfect house, it's wise to move fast. A good rule of thumb is to make an offer that's eight to 10 percent below the asking price, though that might not work in some areas based on trends in the market. This gives you some room to negotiate, but don't top what you've predetermined to be the highest price you can afford.
The deposit
Also known as earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. It is usually 1 percent of the home's purchase price and is included in an offer to purchase. Either the real estate agent or the seller's lawyer holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Contingencies
These are certain requirements specified in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. But in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Home inspection
In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is that a trained home inspector will be able to catch potential problems that a buyer might not detect.
The contract
This follows the acceptance of an offer by the seller, and it is a legal and binding obligation, on the part of the buyer, to purchase the property if any contingencies are met. It outlines the details of the transaction, including: a description of the property, the selling price, the date of closing, the possession date and any applicable contingencies.
Settlement sheet
Also called a "closing statement" or a "settlement statement," this is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides an enumerated list of the funds that were paid at closing. Items on the statement include real estate commissions and initial escrow amounts (money or securities deposited with a neutral third party - the escrow agent - to be delivered upon fulfillment of certain conditions). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Closing documentation
Before you can close on a house, some paperwork must be completed. This includes a title search to make sure the title is clear, title insurance to protect the buyer and the lender from an oversight regarding a claim on some aspect of the property and an application for homeowner's insurance (necessary for securing a mortgage).
Closing cost
The total amount of closing costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Your lender is required to give you prior notice of fees associated with your loan.
Final arrangements
Before the deal is closed and you take possession, you must make some practical arrangements regarding utility service and first mortgage payment.
Settlement
Settlement describes the payment of the balance of the purchase price the buyer owes on the property, and the transfer of the title. It takes place on the possession date specified in the agreement.
Are you ready to sell your home? Give the experts a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, December 31, 2010
Deciding to Sell
Provided By Realty Times
Deciding whether or not to sell your house can be a trying time. Many questions pervade your mind. "Is now the best time to make a move?" "Will I make money from this sale?" Will a move disrupt my family's routine?" There are numerous factors that come into play when making this decision. Let's look at just a few to consider.
First and foremost, can you afford to make a move? In many areas of the country, home values fell dramatically during the recession. Homeowners across the nation now find themselves owing more than their home is worth. If you find yourself in this predicament, it is probably not the best time for you to move. If you are able to afford your payments and have no fear of defaulting, then it will be best to stick it out for a while longer, waiting for your home to regain some of its lost value.
Along those same lines is the topic of job stability. Do you have money saved for downpayments and closing costs, as well as an 8 month emergency fund should you get laid off?
Next, consider the impact the move will have on your family. Do you have children? Moving during the middle of a semester can be difficult for children. Will you be able to move and stay in the same school district? If not, they will be coming into a new school in the middle of activities, after bonds and friendships have been established. Timing is everything when it comes to moving with children.
Additionally, research has shown that having strong social relationships can lengthen your lifespan. Consider this strongly before you move away from family and friends. Or consider it as motivation for moving closer if you live far away!
What if you need to move for your health. Warmer climates, less humidity, and even a change of settings can be a boost to some people's health. Some seniors find cold winters too hard on their older bodies. A move for health is always a good decision, since without our health we have nothing.
The bottom line is this. Moving means changing routines, hobbies, and even friends. Be sure to evaluate your decision carefully, weighing all of your options, before jumping into a life changing decision.
Do you have questions about selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Deciding whether or not to sell your house can be a trying time. Many questions pervade your mind. "Is now the best time to make a move?" "Will I make money from this sale?" Will a move disrupt my family's routine?" There are numerous factors that come into play when making this decision. Let's look at just a few to consider.
First and foremost, can you afford to make a move? In many areas of the country, home values fell dramatically during the recession. Homeowners across the nation now find themselves owing more than their home is worth. If you find yourself in this predicament, it is probably not the best time for you to move. If you are able to afford your payments and have no fear of defaulting, then it will be best to stick it out for a while longer, waiting for your home to regain some of its lost value.
Along those same lines is the topic of job stability. Do you have money saved for downpayments and closing costs, as well as an 8 month emergency fund should you get laid off?
Next, consider the impact the move will have on your family. Do you have children? Moving during the middle of a semester can be difficult for children. Will you be able to move and stay in the same school district? If not, they will be coming into a new school in the middle of activities, after bonds and friendships have been established. Timing is everything when it comes to moving with children.
Additionally, research has shown that having strong social relationships can lengthen your lifespan. Consider this strongly before you move away from family and friends. Or consider it as motivation for moving closer if you live far away!
What if you need to move for your health. Warmer climates, less humidity, and even a change of settings can be a boost to some people's health. Some seniors find cold winters too hard on their older bodies. A move for health is always a good decision, since without our health we have nothing.
The bottom line is this. Moving means changing routines, hobbies, and even friends. Be sure to evaluate your decision carefully, weighing all of your options, before jumping into a life changing decision.
Do you have questions about selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, December 6, 2010
2011 Dallas Real Estate Market Recovery
Provided By Old Republic
Source Buy and Sell Dallas
The Dallas real estate market is showing positive signs with many reports hinting toward a recovery in 2011. Dallas home inventory has decreased to a more balanced level, pending home sales are increasing, and home sale prices are steadily on the rise. These are just a few of the variables needed to bring a wounded real estate market back on its’ feet. The Dallas real estate market is on the right track with consumer confidence increasing and home sales reports showing positive signs of stability. 1st time home buyers, repeat buyers, and investors are jumping off the fence to take advantage of the buyer’s market before interest rates rise and inventory decreases.
Dallas Morning News recently reported Dallas pre owned home sales increased 12.38% in August compared to 2009. Many of the areas surrounding Dallas also experienced an increase in existing homes sales over previous year transactions including Fort Worth at 14.9%, Irving at 20.32%, and Garland at 20.77%.Although home sales are up and confidence has increased, but home sellers are still weary of placing their home on the market. High foreclosure and short sale inventory is still plaguing the entire U.S. market including the DFW area. Home sellers are still unable to compete with low dollar per square foot selling prices on bank foreclosures including FHA, VA and REO short sales and auctions. Sellers are waiting for home values to rise and foreclosure inventory to fall to avoid selling their most valuable investment at a loss.
The Dallas Fort Worth real estate market is on the road to recovery, but there is still a long way to go with many obstacles to overcome. One thing for sure is, the U.S. real estate market is improving, consumer confidence is increasing, and Dallas is one of the top markets leading the way!
Are you looking to buy a home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source Buy and Sell Dallas
The Dallas real estate market is showing positive signs with many reports hinting toward a recovery in 2011. Dallas home inventory has decreased to a more balanced level, pending home sales are increasing, and home sale prices are steadily on the rise. These are just a few of the variables needed to bring a wounded real estate market back on its’ feet. The Dallas real estate market is on the right track with consumer confidence increasing and home sales reports showing positive signs of stability. 1st time home buyers, repeat buyers, and investors are jumping off the fence to take advantage of the buyer’s market before interest rates rise and inventory decreases.
Dallas Morning News recently reported Dallas pre owned home sales increased 12.38% in August compared to 2009. Many of the areas surrounding Dallas also experienced an increase in existing homes sales over previous year transactions including Fort Worth at 14.9%, Irving at 20.32%, and Garland at 20.77%.Although home sales are up and confidence has increased, but home sellers are still weary of placing their home on the market. High foreclosure and short sale inventory is still plaguing the entire U.S. market including the DFW area. Home sellers are still unable to compete with low dollar per square foot selling prices on bank foreclosures including FHA, VA and REO short sales and auctions. Sellers are waiting for home values to rise and foreclosure inventory to fall to avoid selling their most valuable investment at a loss.
The Dallas Fort Worth real estate market is on the road to recovery, but there is still a long way to go with many obstacles to overcome. One thing for sure is, the U.S. real estate market is improving, consumer confidence is increasing, and Dallas is one of the top markets leading the way!
Are you looking to buy a home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 29, 2010
10 Reasons to Sell a Home for the Holidays
Provided By Michelle Little of Republic Title
Source Realtor.org
Are you interested in selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 15, 2010
Sellers: Don't Let Emotions Rule
Provided By Realty Times
Written By Carla Hill
It can be easy for the selling experience to become clouded by emotion. A homeowner may have years of memories stored within the walls of a home. They look at a room, and instead of resale potential, they see a baby's first steps and early Christmas mornings. When the time comes to sell, however, the time has also come to sever emotional ties with a house.
Emotions can cloud your reasoning. And they can misguide you during a very expensive and important business transaction. Sellers sometimes overvalue their homes, adding in sentimental value on top of property value. They refuse offers that, while reasonable, don't add up to the value of their memories. Or they turn down a potential buyer, because they don't garden and won't "leave the rose bushes," or aren't the "type" of person they'd like living in their home.
For a smooth transition, hire an experienced real estate agent. Once you've turned yourself over to their guidance, you can then turn your focus onto the new phase of your life. And agent can help you establish a fair, and unbiased, asking price. They find the sellers. They show the house. And they help you sign on the dotted line. The middle man is extremely beneficial in separating from your emotions.
Your emotions may surface as soon as you list the house for sale, since many agents will suggest you remove many of your personal items from the house for staging. This is neither a personal attack on your decorating nor your memories. Staging is a wonderful way for homeowners to see the house as their future home, instead of seeing your house and your home.
Don't fret over lost memories; take pictures of your home and make a scrapbook. Channel your emotions into the joy of moving. And have fun imagining the new memories you'll make in your new place. This is not a time for mourning, instead it's a time for celebrating!
Are you ready to sell your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written By Carla Hill
It can be easy for the selling experience to become clouded by emotion. A homeowner may have years of memories stored within the walls of a home. They look at a room, and instead of resale potential, they see a baby's first steps and early Christmas mornings. When the time comes to sell, however, the time has also come to sever emotional ties with a house.
Emotions can cloud your reasoning. And they can misguide you during a very expensive and important business transaction. Sellers sometimes overvalue their homes, adding in sentimental value on top of property value. They refuse offers that, while reasonable, don't add up to the value of their memories. Or they turn down a potential buyer, because they don't garden and won't "leave the rose bushes," or aren't the "type" of person they'd like living in their home.
For a smooth transition, hire an experienced real estate agent. Once you've turned yourself over to their guidance, you can then turn your focus onto the new phase of your life. And agent can help you establish a fair, and unbiased, asking price. They find the sellers. They show the house. And they help you sign on the dotted line. The middle man is extremely beneficial in separating from your emotions.
Your emotions may surface as soon as you list the house for sale, since many agents will suggest you remove many of your personal items from the house for staging. This is neither a personal attack on your decorating nor your memories. Staging is a wonderful way for homeowners to see the house as their future home, instead of seeing your house and your home.
Don't fret over lost memories; take pictures of your home and make a scrapbook. Channel your emotions into the joy of moving. And have fun imagining the new memories you'll make in your new place. This is not a time for mourning, instead it's a time for celebrating!
Are you ready to sell your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, October 13, 2010
Increasing Seller's Property Value
Provided By Yahoo!
Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:
1.Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
2.Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
3.Cosmetics are important.
•Fresh paint will always add more value than it costs.
•Clean or new carpet/flooring adds more value than it costs.
•Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
•If you can, add some colorful flowers and new sod.
4.Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
5.Condition affects value. Do a seller's home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
6.If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
7.Strategic renovations impact value and your bottom line. Don't spend more money to renovate the place than you can recapture in value on the sales price.
Have questions about the process of selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:
1.Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
2.Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
3.Cosmetics are important.
•Fresh paint will always add more value than it costs.
•Clean or new carpet/flooring adds more value than it costs.
•Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
•If you can, add some colorful flowers and new sod.
4.Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
5.Condition affects value. Do a seller's home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
6.If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
7.Strategic renovations impact value and your bottom line. Don't spend more money to renovate the place than you can recapture in value on the sales price.
Have questions about the process of selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, August 27, 2010
Don't Let Termites Eat Away the Sale Of Your Home
Written By Phoebe Chongchua
Provided By Realty Times
You're selling your home and it comes time to get that dreaded termite inspection. It's the Wood Destroying Organism (WDO) inspection that homeowners fear can eat away at the price of a home or ruin the entire deal--but it doesn't have to.
There are a few signs that may indicate there might be an infestation. Some states are more likely to have heavy termite activity such as those in a "hot zone" such as California, Texas, Mississippi, Alabama, Louisiana, Georgia, South Carolina, Florida, and Hawaii. While these areas have the highest level of activity, termites can be found nearly anywhere and the varieties of the insects differ depending on the area and climate.
According to TermiteInstitute.com, "When conditions like cracks in the foundation or plumbing leaks are present; the possibility of a hidden wood-destroying infestation exists. Buyers should pay particular attention to these potentially hazardous conditions outlined in the WDO inspection report."
Many homeowners don't think about the possibility of having termites until they're getting ready to sell their home. Unfortunately, a history of termite issues can eat away at the sales price. Being prepared and understanding what to expect from an inspection is not only helpful but could help ensure a better price and smoother home sale.
TermiteInstitute.com has a lot of information that helps clarify the type of termites found in various locations. The site also helps inform and educate people about termite warning signs, treatment, and even the biology and lifecycle of these pests. I found the site's top questions and answers about termites to be very interesting. Here's what you should know about termites.
If my neighbor's home is infested; will mine be attacked next? TermiteInstitute.com says not necessarily. However, the risk is, of course, high. Preventive treatment is recommended.
How are homes treated for termites? The methods vary depending on the severity and the professional company that you choose but here's a look at some modern treatments.
Termite bait systems can be set up, however, this requires termites to find the bait stations, eat the poisonous feed, and then transfer it to the colony. It can take up to a year to be fully effective.
The site says that liquid termite treatment is known as the new "undetectable" or "non-repellent" technology. "It works well with subterranean termites, which comprise about 90 percent of the infestations in American households." This method is done by a professional applying the undetectable liquid to the soil and around the home as well as critical points in the structure where termites are likely to invade.
Since termites can't detect the liquid material, they pass through the treated soil causing termite mortality. "However, before termites die, they can have an opportunity to return to the colony and transfer the material to others in the nest," according to TermiteInstitute.com.
Will my homeowners' insurance pay for treatment? It's not likely. Although, in some areas of Louisiana some insurance companies have covered termite treatments for those structures that suffered hurricane damage.
While termites are annoying and can certainly eat away at your sale price, if you don't take care of the infestation and damage, they're not harmful to humans. In other words they feed on wood, not people. But they can severely damage a home so it's best to know right away whether you have an infestation and what your options are to resolve the problem. It could save you money and frustration when it comes time to close the sale on your house.
Are you a first time home seller? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Realty Times
You're selling your home and it comes time to get that dreaded termite inspection. It's the Wood Destroying Organism (WDO) inspection that homeowners fear can eat away at the price of a home or ruin the entire deal--but it doesn't have to.
There are a few signs that may indicate there might be an infestation. Some states are more likely to have heavy termite activity such as those in a "hot zone" such as California, Texas, Mississippi, Alabama, Louisiana, Georgia, South Carolina, Florida, and Hawaii. While these areas have the highest level of activity, termites can be found nearly anywhere and the varieties of the insects differ depending on the area and climate.
According to TermiteInstitute.com, "When conditions like cracks in the foundation or plumbing leaks are present; the possibility of a hidden wood-destroying infestation exists. Buyers should pay particular attention to these potentially hazardous conditions outlined in the WDO inspection report."
Many homeowners don't think about the possibility of having termites until they're getting ready to sell their home. Unfortunately, a history of termite issues can eat away at the sales price. Being prepared and understanding what to expect from an inspection is not only helpful but could help ensure a better price and smoother home sale.
TermiteInstitute.com has a lot of information that helps clarify the type of termites found in various locations. The site also helps inform and educate people about termite warning signs, treatment, and even the biology and lifecycle of these pests. I found the site's top questions and answers about termites to be very interesting. Here's what you should know about termites.
If my neighbor's home is infested; will mine be attacked next? TermiteInstitute.com says not necessarily. However, the risk is, of course, high. Preventive treatment is recommended.
How are homes treated for termites? The methods vary depending on the severity and the professional company that you choose but here's a look at some modern treatments.
Termite bait systems can be set up, however, this requires termites to find the bait stations, eat the poisonous feed, and then transfer it to the colony. It can take up to a year to be fully effective.
The site says that liquid termite treatment is known as the new "undetectable" or "non-repellent" technology. "It works well with subterranean termites, which comprise about 90 percent of the infestations in American households." This method is done by a professional applying the undetectable liquid to the soil and around the home as well as critical points in the structure where termites are likely to invade.
Since termites can't detect the liquid material, they pass through the treated soil causing termite mortality. "However, before termites die, they can have an opportunity to return to the colony and transfer the material to others in the nest," according to TermiteInstitute.com.
Will my homeowners' insurance pay for treatment? It's not likely. Although, in some areas of Louisiana some insurance companies have covered termite treatments for those structures that suffered hurricane damage.
While termites are annoying and can certainly eat away at your sale price, if you don't take care of the infestation and damage, they're not harmful to humans. In other words they feed on wood, not people. But they can severely damage a home so it's best to know right away whether you have an infestation and what your options are to resolve the problem. It could save you money and frustration when it comes time to close the sale on your house.
Are you a first time home seller? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, August 25, 2010
Top 10 Do It Yourself Home Improvement Mistakes
Provided By About.com
Every home improvement project or fixer rehab has its ups and downs, and there are plenty of mistakes to go around. Nobody is immune. But avoiding costly mistakes involves more than memorizing catchy-but-important phrases such as "Measure Twice, Cut Once," or "Lefty-Loosey, Righty-Tighty."
One crucial trick: You may learn from your own mistakes, but it’s better to learn from the mistakes of others.
1) Buying Too High or the Wrong Location
Sometimes, do-it-yourselfers (DIYers) get stung before they ever get moving on a remodel. It happens primarily for two reasons. Because they paid too much or they bought a house in the wrong neighborhood -- slammed up against the freeway, next to railroad tracks or that lone single-family nestled in a row of commercial.
You can avoid both these problems by looking at comparable sales for the neighborhood before you buy and asking about the drawbacks of the location. If you don't want to live under a flight path, the chances are a new buyer won't either. Remember, the best time to think about selling is when you buy. Because the most beautiful remodel isn't going to pay back in spades if your property backs up to the city dump.
2) Not Researching Code and Obtaining a Permit
Many DIYers shy away from obtaining permits because they worry about the expense or think they don't need a permit. Some cities issue permits based on political reasons, and some may appear unnecessary, but get a permit anyway, because it's against the law if you refuse to comply and it's required.
Here are more reasons:
•Inspectors will help to ensure the job is done correctly and to code.
•Many buyers don't want to buy a home that has had work done without a permit.
•If your neighbor reports you to the city and an inspector discovers you have completed work without a permit, you might be required to tear it apart and start over.
3) Failure to Prepare a Written Work Plan
Overly zealous DIYers often think it will take less time to complete a job than is necessary. Prepare a calendar, day-by-day, outlining each portion of your rehab and how many hours it will take to complete. This will keep you on a tight schedule and give you a realistic time frame from start to finish.
For example, a tiling job cannot be completed in one day.
•First, the mastic is applied, tiles are cut and laid. The area needs to cure and dry at least 24 hours.
•After the tiles are set, you will grout.
•You still need to wait another day to walk on it.
4) Under Budgeting
The adage is figure your cost and triple it. But that's not really necessary. Itemize every scrap of material in your estimates, including mundane items such as the cost of nails, staples, fiberglass tape or joint compound. They all add up. Then account for at least a 15% overage of materials for waste. Throw in another 30% for price increases, especially if you're not buying all your materials at once.
5) Tackling Jobs for Which You are Unqualified
If you're afraid of heights or unsteady in high places, don't install a roof. Life is short and then you die. Hire somebody else to do it. Before you tackle a job, think about the job from its inception all the way through to its completion. You don't want to reach the halfway mark and discover you can't finish.
Some projects require more than one person. It's hard to hang drywall on a ceiling by yourself, even with a deadman prop. Pay attention to the weight you lift; it may wreak havoc on your back or throw you off balance.
6) Not Planning for the Unexpected
You have no idea when you tear open a wall what you will find. For example, you could find termites or beetles. A pest infestation will require eradication and / or structural repair. You may discover wiring that needs to be replaced, pipes that need to be rerouted or moisture problems that have rotted away joists or sill plates. Pad your budget and allow yourself a bit of flexibility in your work schedule to accommodate these not-so-nice surprises.
7) Waiving a Home Inspection
Always, always, always get a home inspection when you buy. And hire a qualified and accredited individual to perform the inspection -- not your Uncle Joe or your buddy contractor, get a real inspector. Be there for the inspection and ask questions. Pay close attention to safety issues. Be an informed buyer.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue. There is a difference.
8) Using the Wrong Tools
When it comes to tools, you can't go wrong by buying professional tools that are made to perform specific functions. While you can get by using a drywall gun to screw deck boards to a joist, you can't use a hacksaw to make precise miter cuts with any accuracy or a 9-volt cordless drill to drive six-inch screws through a beam.
Practice safety.
•Wear goggles when using a power saw.
•Don't stand on the top rung of a ladder.
•Hit the main breaker when working with electricity.
9) Buying Cheap Material
Don't skimp. You can buy ceramic tile for 50 cents a square foot, but it will probably crack. Buyers will notice if you install quarter-inch granite on counters or buy plastic baseboards. You want the quality of your work to shine throughout the house.
If you shop carefully and negotiate prices, you can purchase brand-name merchandise for less. Then you can advertise those manufacturer names in your marketing materials, and buyers will never know how much you paid. Better yet, they won't be calling you after escrow closes to complain that your new dishwasher just dumped water all over the floor.
10) Under Estimating the Resale Value
DIYers like to use a rule of thumb that says they can sell a house for two to three times more than the cost of its improvements, plus its acquisition price. That formula doesn't work all the time. It's far wiser to check the comparable sales for similar homes in the neighborhood to determine if your improvements are in line with other homes in that area. You don't want to over-improve.
Are you selling your home and need great advice? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Every home improvement project or fixer rehab has its ups and downs, and there are plenty of mistakes to go around. Nobody is immune. But avoiding costly mistakes involves more than memorizing catchy-but-important phrases such as "Measure Twice, Cut Once," or "Lefty-Loosey, Righty-Tighty."
One crucial trick: You may learn from your own mistakes, but it’s better to learn from the mistakes of others.
1) Buying Too High or the Wrong Location
Sometimes, do-it-yourselfers (DIYers) get stung before they ever get moving on a remodel. It happens primarily for two reasons. Because they paid too much or they bought a house in the wrong neighborhood -- slammed up against the freeway, next to railroad tracks or that lone single-family nestled in a row of commercial.
You can avoid both these problems by looking at comparable sales for the neighborhood before you buy and asking about the drawbacks of the location. If you don't want to live under a flight path, the chances are a new buyer won't either. Remember, the best time to think about selling is when you buy. Because the most beautiful remodel isn't going to pay back in spades if your property backs up to the city dump.
2) Not Researching Code and Obtaining a Permit
Many DIYers shy away from obtaining permits because they worry about the expense or think they don't need a permit. Some cities issue permits based on political reasons, and some may appear unnecessary, but get a permit anyway, because it's against the law if you refuse to comply and it's required.
Here are more reasons:
•Inspectors will help to ensure the job is done correctly and to code.
•Many buyers don't want to buy a home that has had work done without a permit.
•If your neighbor reports you to the city and an inspector discovers you have completed work without a permit, you might be required to tear it apart and start over.
3) Failure to Prepare a Written Work Plan
Overly zealous DIYers often think it will take less time to complete a job than is necessary. Prepare a calendar, day-by-day, outlining each portion of your rehab and how many hours it will take to complete. This will keep you on a tight schedule and give you a realistic time frame from start to finish.
For example, a tiling job cannot be completed in one day.
•First, the mastic is applied, tiles are cut and laid. The area needs to cure and dry at least 24 hours.
•After the tiles are set, you will grout.
•You still need to wait another day to walk on it.
4) Under Budgeting
The adage is figure your cost and triple it. But that's not really necessary. Itemize every scrap of material in your estimates, including mundane items such as the cost of nails, staples, fiberglass tape or joint compound. They all add up. Then account for at least a 15% overage of materials for waste. Throw in another 30% for price increases, especially if you're not buying all your materials at once.
5) Tackling Jobs for Which You are Unqualified
If you're afraid of heights or unsteady in high places, don't install a roof. Life is short and then you die. Hire somebody else to do it. Before you tackle a job, think about the job from its inception all the way through to its completion. You don't want to reach the halfway mark and discover you can't finish.
Some projects require more than one person. It's hard to hang drywall on a ceiling by yourself, even with a deadman prop. Pay attention to the weight you lift; it may wreak havoc on your back or throw you off balance.
6) Not Planning for the Unexpected
You have no idea when you tear open a wall what you will find. For example, you could find termites or beetles. A pest infestation will require eradication and / or structural repair. You may discover wiring that needs to be replaced, pipes that need to be rerouted or moisture problems that have rotted away joists or sill plates. Pad your budget and allow yourself a bit of flexibility in your work schedule to accommodate these not-so-nice surprises.
7) Waiving a Home Inspection
Always, always, always get a home inspection when you buy. And hire a qualified and accredited individual to perform the inspection -- not your Uncle Joe or your buddy contractor, get a real inspector. Be there for the inspection and ask questions. Pay close attention to safety issues. Be an informed buyer.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue. There is a difference.
8) Using the Wrong Tools
When it comes to tools, you can't go wrong by buying professional tools that are made to perform specific functions. While you can get by using a drywall gun to screw deck boards to a joist, you can't use a hacksaw to make precise miter cuts with any accuracy or a 9-volt cordless drill to drive six-inch screws through a beam.
Practice safety.
•Wear goggles when using a power saw.
•Don't stand on the top rung of a ladder.
•Hit the main breaker when working with electricity.
9) Buying Cheap Material
Don't skimp. You can buy ceramic tile for 50 cents a square foot, but it will probably crack. Buyers will notice if you install quarter-inch granite on counters or buy plastic baseboards. You want the quality of your work to shine throughout the house.
If you shop carefully and negotiate prices, you can purchase brand-name merchandise for less. Then you can advertise those manufacturer names in your marketing materials, and buyers will never know how much you paid. Better yet, they won't be calling you after escrow closes to complain that your new dishwasher just dumped water all over the floor.
10) Under Estimating the Resale Value
DIYers like to use a rule of thumb that says they can sell a house for two to three times more than the cost of its improvements, plus its acquisition price. That formula doesn't work all the time. It's far wiser to check the comparable sales for similar homes in the neighborhood to determine if your improvements are in line with other homes in that area. You don't want to over-improve.
Are you selling your home and need great advice? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
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