How Buying Power Is Determined
The biggest area of your life that you need to understand before you buy a house is your own finances. Before you know what kind of house you can buy, you’ll need to understand your own buying power. While things like square footage, how many bedrooms you need, and finding the right neighborhood are important, you can’t go very far without some type of financing. While understanding how much you can spend on a property is one of the more serious parts of buying a home, it’s something that you’ll want to do. Knowing what you can spend on a home is a step to helping you land a home you love. If you understand your own numbers, you’ll know the chances that you have of an offer being accepted on a place you love.
The Elements Of Your Buying Power
Your Credit Score
This little three digit number has a lot of meaning behind it. This is the most basic piece of information that lenders use to determine your loan worthiness. The factors that influence your credit score include:
- Payment history
- How much you owe
- Length of your credit history
- Mix of credit accounts
- How much new credit you have opened
A low credit score is somewhere under 620. Having a score this low doesn’t necessarily mean that you’ll be denied for a loan, but the type and amount of the loan you’re offered can be impacted. You’ll also face higher interest rates because of a low credit score. This means your mortgage could be considerably more expensive than if you had a higher credit score.
Down Payment
The 20 percent down as a rule of thumb actually offers many benefits to your buying power. This means that you’ll need 20% down of the purchase price of the home in cash. If you put this amount of money (or even more) down on a home, it eliminates the need for you to have to buy PMI (Private Mortgage Insurance). You’ll even be able to negotiate a lower interest rate. A large down payment may be especially helpful in competitive markets where there is a lot of buyer competition.
How Your Financial Picture Appears
Your assets and your debt-to-income ratio are also important factors in your financial picture that you present to the lender. Basically, all of these numbers let both the lender and the seller see how committed you are to buying a home. It is one of the biggest financial undertakings of your entire life. If you can’t show financial responsibility, then it may be a bit difficult for lenders to see that you’ll actually pay your loan back in a timely manner.
The better all of your financial numbers are, the more buying power that you’ll have. If your numbers are good, you’ll be able to afford more house. While it may not be the most exciting thing to look over all of your financial numbers, it’s a vital step in the process of your journey to home ownership. Call or text 508-648-0013 for home evaluation.
Don’t Make These Sellers Mistakes
Mistakes Sellers Make
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Home Selling Tips
Home Selling Tips
Aroma is the first thing prospective buyers notice when they step inside a home. To eliminate odors, steam clean your carpet and wash walls and floors with household cleaners and disinfectants. Keep your home smelling fresh by burning candles or potpourri, boiling a pot of cinnamon sticks or putting a dab of vanilla on cold light bulbs before turning them on. Nothing makes a home look newer faster than painting. Painting your walls and removing outdated wallpaper may be the best interior improvements you can make. For broader appeal, paint in neutral colors such as beige, white, off-white, or gray. These colors suggest newness and cleanliness and can brighten a dull or outdated room. If your carpet is badly worn, outdated or stained, consider replacing it. If your carpet is heavily soiled, you may want to have it professionally cleaned. Brighten the interior of your home by cleaning your windows and opening your curtains to let light in. Clean hanging light fixtures and add the highest-wattage bulbs allowed. Below are 20 suggestions to help you sell your home.
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Moving Tips
Moving Tips
Six weeks before you leave your present address
Four weeks before you leave your present address
Three weeks before you leave your present address
Two weeks before you leave your present address
One week before you leave your present address
Two to three days before you leave your present address
Moving day
At destination
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Adding Value To Your Home With A Fireplace
Fireplaces are often seen as a necessity for homebuyers. It adds charm and decorative as well as physical warmth to a home. More than half of new homes have a fireplace. If your home doesn’t have a fireplace, you may wonder if installing and maintaining a fireplace is worth it. Will it add value to your home? There are a few things you need to consider before you decide to take on this project.
Value
Keep in mind that fireplaces are not directly accounted for during a home appraisal. Yet, they add value to a home. Home buyers will pay more for homes that have fireplaces. Depending on the location of your home, a fireplace can increase the value of the property by a significant amount- up to thousands of dollars.
Location
The location of a home really has a direct effect on how much value it adds it a home. When added to other amenities in your home, a fireplace can compound to make the home appear more luxurious. A fireplace is a must in a higher end home.
On the flip side, more modest homes may not need fireplaces. If a home needs many other improvements, a fireplace may not add much to the property. The amount of value a fireplace adds is very much dependent on the type of property it’s being added to.
Cost
It’s possible to add a fireplace to just about any home. The cost will vary by a large amount ranging anywhere from a few hundred dollars to tens of thousands of dollars. Specific requirements may exist within your city dictating how fireplaces must be installed. Keep in mind that everything from the type of fireplace that’s being installed to the height of the chimney must be considered. Look into things like:
- Emission limits
- Chimney height
- Construction requirements
- Permits
- Type of installation
Each requirement will add a bit more cost to the project, so it’s best to do some research beforehand.
Getting The Maximum Value
If you decide that adding a fireplace is the right decision for your property, there are a few ways to get the maximum return on your investment. First, you should build the fireplace in the room of your home that’s most used. This space would most likely be the living room or family room in most cases. Keep in mind that adding a fireplace can drastically change the look of a room.
Whether you’re adding a fireplace or putting in an initial one, you can be sure that it will add value to your home in the form of attraction and home price.
Things To Look for in Your First Home
The concept of a starter home is an American tradition that has existed for decades. Buying a starter home makes it possible to achieve homeownership, financial independence, and to build equity and credit while you transition to a larger home.
However, your first home doesn’t need to be a tiny, one-bedroom house with none of the amenities that you want.
In today’s post, we’re going to look at some of the things that are desirable in a first home or starter home, so that you can make the best financial decision now that will help you save more in the long run.
Top things to look for in your first home
1. Resale value
Perhaps the most important thing to think about when buying your first home is the day that you eventually decide to sell it and upgrade. There’s a lot that goes into the purchase value of a home. But, if you maintain the home or even make some upgrades, there’s a good chance you’ll be able to sell it for more than you paid.
Other factors that affect resale value are the location and real estate market trends. While you may not be able to change the economy, you can choose to buy a home that is in a location others will find desirable in the coming years.
2. Size
The cost of your first home will be determined by its location, as mentioned before, but another huge factor will be the size or square-footage of the home and yard.
If you don’t plan on having children in the next few years and don’t currently have kids at home, having several bedrooms and a large backyard probably aren’t huge priorities. This means you’ll be able to save by buying a small home on a small property.
Similarly, if it’s just you and a significant other living in the home, you may be comfortable with just one bathroom for the next few years. These omissions can save you a ton of money on your first starter home.
3. Transportation and proximity
Typically, when people buy their first home they are just getting settled into their career and may still change jobs a few times. Most workers in today’s economy change jobs between 10 and 15 times throughout their career and do so more often toward the beginning.
This means it will make sense for you to buy your first home within commuting distances to companies in your industry.
4. DIY and fixer-uppers
Homes that are in need of repairs or renovations can be a great way to save money and see a return on your investment when you decide to sell. Of course, there are limits to how many repairs are reasonable while still getting your money’s worth from a home.
You’ll know from your home inspection or by doing a walk-through with professional contractors how much work is required to bring the home up to standards. Use those resources to ensure that you’re making a sound financial decision for your first home. Call or text us at 508-648-0013. We will be happy to assist.
Thinking about Renting out a Property? Things to Consider. Copy
Many property owners at some point consider renting out their house. Whether it’s a property they inherited, a summer home they rarely use, or they’re just trying their hand at property management.
It’s a common misconception that renting out a house is passive income. You’ll have to do a lot of work if you plan on keeping your tenants around and paying their rent.
In this article, we’ll discuss some of the things you should consider if you’re planning on renting out a house or property you own.
The rental process
Some landlords take shortcuts during the rental process to save time or money. However, doing so could cost you big time in the long run. If you don’t utilize a real estate agent, draw up the proper contracts and agreements, or fail to do due diligence with walkthroughs, you could easily end up losing money on your investment.
The safest approach to finding reliable tenants and renting your property securely is to use a property manager who knows the practical and legal aspects of renting so you don’t have to worry about making any beginner mistakes.
DIY property management
If you decide you want to save money and manage the property yourself, there are a few things you should keep in mind when looking for tenants.
First, use background checks and credit checks to ensure your future tenants are in good financial standing.
Next, ask for references on your application, preferably from former landlords. Most landlords will happily let you know if their tenants were good about making on-time payments or were difficult in other ways.
When it comes to your lease, don’t try to write it from scratch. There are several templates available online. Try to find one that covers most applicable laws in your area, then hire a lawyer to read over your lease and make any pertinent changes.
Finally, be sure to collect a security deposit or first and last month’s rent. This will give you some protection if your tenant stops paying or causes costly damages in the building.
Know your legal limits
If you’ve ever rented before, odds are there were a few things you wish your landlord did differently. Before beginning this endeavor of becoming a landlord, make sure you’re doing it by the book.
Find the laws for your state and city regarding landlord/tenant requirements. Know when you can enter the apartment and how long of an advanced notice is required to do any work in the apartment.
Before sending any complaints or notices to your tenant, make sure you are in the right, legally speaking and can back up your claims with evidence. To do so, you’ll need to practice rigorous bookkeeping. Document and keep copies of each payment you receive and all of the money you spend on repairs and maintenance. These records can help you should you ever need to prove yourself in a court of law.
Finally, be respectful and courteous with your tenants. Going out of your way to be helpful will often save you headaches in the long run. However, know when your leniency is being taken advantage of by tenants who are avoiding paying rent or abusing your property. Call Team Stevens & Manley with any questions. We are here to help!
Want a Beautiful Yard But Don’t Like Yard Work? Here’s How to Make It Happen?
Photo by Manfred Richter via Pixabay
If you’re like many homeowners who are busy with work and family obligations, you love the thought of your outdoor living space serving as a personal sanctuary during the occasional moments when you manage to get some downtime. However, it may also be true that the time you spend in your yard and garden area is more about chores than anything else, with very little room for relaxing with a book and a beverage, enjoying a cookout with family and friends, or simply sitting quietly on a garden bench while listening to the birds sing. Following are several suggestions for how you can exchange some of that outdoor task time for outdoor leisure time.
Rethink Your Lawn
You can save yourself hours of mowing, weeding, feeding, and other lawn chores every week by seriously downsizing your lawn. If you’ve got active children in the home and want them to have a soft surface to play on, consider creating a play space with playground mulch instead of lawn. Leave a small patch of lawn so that you can still enjoy the occasional gratification of bare feet on velvety green grass.
Go Native
Ask your local garden retailer for recommendations on flowers, shrubs, and trees that are native to your geographical area. These plants thrive in local soils and climate conditions, and they’ve developed natural resistance to regional pests and pathogens. You won’t have to spend time babying them along with special fertilizers and pesticides — at most, they’ll need an extra drink of water during drought conditions and routine clipping and mulching.
Use Plenty of Mulch
Which brings us to mulch. Mulch provides multiple benefits in the yard and garden area. Organic mulch slowly releases nutrients into the soil, and any type of mulch acts as an insulator for plant roots, protecting them from temperature extremes on both ends of the scale. It also acts as a deterrent for the germination of weed seeds, as well as, helps provide your outdoor living space with a pulled-together appearance.
Build a Rock Garden
Rock gardens provide an almost maintenance-free way to maximize the aesthetics of your outdoor living space. Most rock garden plants don’t require extra water and fertilizer once established. Rock gardens are also ideal for placing on slopes because they significantly decrease soil erosion from precipitation runoff.
Install a Smart Irrigation System
Smart irrigation systems save homeowners money as well as time. They’re equipped with sensors that determine the amount of moisture in the soil, for instance, and the water won’t come on unless the soil is dry, and they can also be set to shut off if it begins to rain. Call Team Stevens & Manley 508-648-0013 for all your real estate questions. We are here to help!
Thinking About Renting Out a Property? Here Are Some Things to Consider Copy
Many property owners at some point consider renting out their house. Whether it’s a property they inherited, a summer home they rarely use, or they’re just trying their hand at property management.
It’s a common misconception that renting out a house is passive income. You’ll have to do a lot of work if you plan on keeping your tenants around and paying their rent.
In this article, we’ll discuss some of the things you should consider if you’re planning on renting out a house or property you own.
The rental process
Some landlords take shortcuts during the rental process to save time or money. However, doing so could cost you big time in the long run. If you don’t utilize a real estate agent, draw up the proper contracts and agreements, or fail to do due diligence with walkthroughs, you could easily end up losing money on your investment.
The safest approach to finding reliable tenants and renting your property securely is to use a property manager who knows the practical and legal aspects of renting so you don’t have to worry about making any beginner mistakes.
DIY property management
If you decide you want to save money and manage the property yourself, there are a few things you should keep in mind when looking for tenants.
First, use background checks and credit checks to ensure your future tenants are in good financial standing.
Next, ask for references on your application, preferably from former landlords. Most landlords will happily let you know if their tenants were good about making on-time payments or were difficult in other ways.
When it comes to your lease, don’t try to write it from scratch. There are several templates available online. Try to find one that covers most applicable laws in your area, then hire a lawyer to read over your lease and make any pertinent changes.
Finally, be sure to collect a security deposit or first and last month’s rent. This will give you some protection if your tenant stops paying or causes costly damages in the building.
Know your legal limits
If you’ve ever rented before, odds are there were a few things you wish your landlord did differently. Before beginning this endeavor of becoming a landlord, make sure you’re doing it by the book.
Find the laws for your state and city regarding landlord/tenant requirements. Know when you can enter the apartment and how long of an advanced notice is required to do any work in the apartment.
Before sending any complaints or notices to your tenant, make sure you are in the right, legally speaking and can back up your claims with evidence. To do so, you’ll need to practice rigorous bookkeeping. Document and keep copies of each payment you receive and all of the money you spend on repairs and maintenance. These records can help you should you ever need to prove yourself in a court of law.
Finally, be respectful and courteous with your tenants. Going out of your way to be helpful will often save you headaches in the long run. However, know when your leniency is being taken advantage of by tenants who are avoiding paying rent or abusing your property. Call us to discuss your options at 508-648-0013 or email us at info@stevensmanleyre.com
Best Practices for Pricing Your House
Before you list your house, you’ll need to establish a competitive price for it. That way, you can increase the likelihood of stirring up plenty of interest in your house as soon as it becomes available.
Now, let’s take a look at three best practices for pricing your home.
1. Evaluate the Real Estate Market
The current real estate market’s conditions can impact your ability to sell your residence. However, if you study the real estate market closely, you can differentiate between a buyer’s and seller’s market and plan accordingly.
In a buyer’s market, the number of home sellers exceeds the number of homebuyers. As such, you likely will need to establish an aggressive price right away to separate your house from the competition.
On the other hand, a seller’s market favors home sellers over homebuyers. If you’re operating in a seller’s market, you may be better equipped than ever before to earn a significant profit.
To differentiate between a buyer’s and seller’s market, examine the prices of recently sold homes and available homes in your area. This housing market data can provide deep insights into the current state of the housing market. Plus, this data can help you understand how your residence stacks up against the competition.
2. Conduct a Home Appraisal
Ultimately, a home appraisal can make a world of difference for any home seller, at any time.
During a home appraisal, a professional appraiser will examine your house both inside and out. Then, this appraiser will offer a valuation of your property based on his or her findings.
A home appraisal involves an evaluation of the current condition of your home, your house’s age and your neighborhood. Therefore, if you complete a home appraisal, you should have no trouble using the appraisal results to help establish a fair price for your residence.
3. Collaborate with a Real Estate Agent
When it comes to selling a house, there is no need to work alone. Fortunately, if you collaborate with a real estate agent, you can receive expert insights into all aspects of the home selling cycle.
A real estate agent is happy to meet with you and learn about your home selling goals. Next, this housing market professional will offer home pricing recommendations, ensuring you can make an informed decision about how to price your house.
In addition, a real estate agent will go above and beyond the call of duty to ensure you can enjoy a seamless home selling experience. This housing market professional will promote your residence to large groups of homebuyers, set up home showings and open houses and put together an engaging and informative home listing. Also, a real estate agent will always keep you up to date about any offers on your home.
Looking to list your home in the near future? Use the aforementioned best practices, and you can establish a competitive price for your residence and boost your chances of a fast, profitable home sale. Call Team Stevens & Manley at 508.648.0013.