The inspector works for the homebuyer, looking for every problem beyond reasonable wear. The appraiser works for the lending institution to create a home value to commensurate against the mortgage risk of the lending institution. The homeowner has to disclose the true condition of the home with a gauntlet of questions that leaves no stone unturned. An expert realtor knows the market. They know what it will cost them to market your home and how long it will take to sell. You should interview several agents and vet them online to determine how they will represent you in the market. Often times there’s an unrealistic sale price the homeowner has in mind that is too high for the neighborhood and will generate little interest for homebuyers; a good agent can help escort the homebuyer to a reasonable opening sales price that will generate activity and sell your home. Unfortunately for the seller, if the home is priced too high, a number of buyers will not be seeing it. And, statistically, the longer the house is on the market, the more the home decreases in value. Ideally, a home should sell within 30 to 45 days, and if not, price reductions   Read more…

Before you spend one dollar on home improvements, engage a reputable real estate agent who knows what cosmetic changes, maintenance or renovations give you the best return for your money. While you’re going through the vetting process of hiring a real estate agent, do what you can do; de-clutter. Give unneeded furniture, appliances and clothing to family, friends and charities. If they don’t want your stuff, try holding a garage sale or selling it on Craigslist, as rooms stuffed to capacity look small and unappealing. By creating room in your closets and garages, you are selling “spaciousness,” and thus allowing potential buyers to imagine how they would fill the space. Don’t scrimp on paint. A neutral color of paint provides the best bang for the buck and enhances your home’s overall look. You can clean your home yourself, but a better idea is to have a cleaning crew come through your home and do a thorough job. It’s a time saver for you, and the professional cleaners generally do a better job. Additionally, one of the most cost-effective cosmetic items you can do, just short of putting in new flooring, is to hire professional cleaners for carpeting, tile and hard   Read more…

Buying a home for the right price is an art form and not a do-it-yourself activity. You want to engage a top real estate professional who knows the market, the true value of the home, the potential of the neighborhood and, in the end, is a proven negotiator. To start the process, you should first choose a lender and get pre-approved, rather than pre-qualified. The difference is your lender has gone beyond opinion, based on your oral interview, and has fleshed out your financial situation in order to “pre-approve” you. This makes a world of difference. With a pre-approval rather than a “pre-qual” your real estate professional will inform the seller and their agent you’re approved, and then ask them if there house is. That’s right, not only does the buyer get approved, but the seller’s home must get approved via inspections and appraisal. Which leads to the three basic items you much collect and assess: the appraisal, the home inspection and the comps. In addition, if you don’t have the cash, you’ll want to pre-qualify for a mortgage. Your credit score and down payment will factor heavily into the interest rate you’ll pay. Your mortgage payment is comprised of   Read more…

Assuming that most Americans can’t afford to purchase their home with cash, a mortgage is a necessity. Whatever type of mortgage you have, you’re paying interest, and because you own real estate, you’re paying property taxes. Both mortgage interest and property taxes are deductible. The higher your effective tax bracket, the more these deductions matter. But if you’re income crosses over a certain threshold the tax deduction begins to phase and ultimately could be eliminated. There are also tax deductions on certain closing costs that can also mitigate the front-end cost of buying a home. Home ownership also means you’ll be paying for home maintenance. However, you can purchase a home with a home warrantee to alleviate some of the maintenance costs. Some capital improvements around the house can increase your cost basis. That being said, not everyone can benefit from it. After the housing debacle in 2008, home appreciation has picked up again. But, banking on residential appreciation is no longer a given. This is where the argument comes into play. If you’re a senior and buying your last home, residential appreciation is an issue for your heirs, but not necessarily for you. If you’re a first time buyer   Read more…