Author: Shannon

5 things to look for when buying a new built-in dishwasher

Dishwashers. We never really understand what a time- and effort-saving device it is until it goes on the blink.

And if yours has, you no doubt understand how much they’ve gone up in price over the past few years. Although you can purchase a basic model for less than $400, the models with the useful bells and whistles can cost up to a few thousand dollars.

“On average, a new dishwasher costs about $970,” suggests Paige Bennett at Angi.com.

Whether you’re looking for a no-frills dishwasher or a top-of-the-line brand, knowing exactly which features you need and will use and the right time to shop for it is the key to saving money.

So, what is the right time of year to shop for a dishwasher?

“Model year clearance time” is a phrase we often hear in commercials and see in print ads. That time is the month of May. This is because manufacturers put out their new models in June, so sales are abundant to get the old stock moved out.

“Federal holidays [New Year’s Day, Memorial Day, Labor Day, etc.) are also a great time to find huge savings on dishwashers,” claims Debbie Wolfe and Lexie Pelchen at Forbes.com.

Don’t forget Black Friday. You may find some real bargains on offer.

Finally, if you don’t mind a slightly marred appliance, you can check out the “scratch and dent” inventories at appliance stores and big box retailers any time of the year.

How to start your dishwasher shopping journey

The first step toward buying a dishwasher that meets your needs is much like the first step toward buying a home. Figure out what you need when it comes to features.

“Wi-Fi capability, touch screen controls and programmable wash cycles are nice, but they come at premium prices. Decide if you really need all the bells and whistles and if the extra cost is worth it to you,” warns Wolfe and Pelchen.

Take some time to get to know the various features that manufacturers are offering. Items such as stainless-steel tubs are quite popular with consumers, replacing the old interior surface that is easily stained. Other popular features, according to the folks at ApplianceConnection.com, include:

  • ENERGY STAR® Certification to help save money.
  • A dishwasher that boasts a quieter cycle.
  • Water softener if you live in an area with hard water that causes spotting on your dishes.
  • Hard food disposal

Which brands do consumers like the best?

“KitchenAid … ranks highest in customer satisfaction among dishwashers. Samsung … ranks second, while Bosch … and LG … rank third in a tie,” according to research by JD Powers and Associates.

Which finish is best for you?

Many shoppers choose to match the finish of their other appliances when shopping for a new dishwasher. Other than that, there are a few things to consider when choosing a finish.

If you despise fingerprints on your appliance, choose a brushed stainless steel finish. Black and traditional stainless-steel finishes attract dust, grime and fingerprints.

Tub material

We mentioned earlier the popularity of the stainless-steel tub. Your other choice is plastic. As the dishwasher ages, plastic tubs tend to become stained and may hold odors.

Not so with a stainless-steel tub. It dries quicker and is tougher. Yes, dishwashers with stainless-steel tubs are more expensive.

Does the noise bug you?

If it has been some time since you’ve shopped for a dishwasher you will notice that the noise level, listed by decibel level, is now typically a standard part of the in-store description.

“A rating of 45 decibels or lower is a virtually silent dishwasher. Decibel levels between 45 and 50 have the equivalent sound level to steady rainfall. A 50 or higher decibel level is equivalent to the level of a normal conversation.,” according to Wolfe and Pelchen.

They go on to warn readers that “The lower the decibel rating, the more expensive the dishwasher will be.”

Have you heard about the filters?

Have you ever wondered what keeps the food debris on your plates from floating around while the dishes wash and possibly ends up back on the clean dishes?

It’s the filter that stops that mess and you’ll need to choose from a manual and a self-cleaning filter. The latter “… filters feature a grinder that pulverizes the debris and flushes it down the drain. Manual filters need to be removed and cleaned often to keep them free of debris,” suggests Debbie Wolfe and Samantha Allen at Forbes.com.

Some additional features you might want to shop for

Wolfe and Allen suggest looking at these additional dishwasher features:

  • Soil sensors.
  • Adjustable racks.
  • A third rack.
  • “Smart home technology and Wi-Fi connectivity …” so you can program the machine to start washing even if you aren’t around via your desktop, laptop or smartphone.

Who knew there was so much to learn about something we use every day? Hopefully, these tips will help you make a choice from the many dishwasher models available on the market.

Things to consider when you want to buy a house with a pool

Some homebuyers wouldn’t think of buying a home that didn’t offer a swimming pool. You’ll typically find these folks in the warmer parts of the country. Then, there are those who didn’t have a pool on their wish list but fell in love with a home that offers one.

Whichever group you belong to, there are a few things to consider about swimming pools and the homes that wrap around them.

 

Get as much information on the pool as possible

Boat owners are familiar with the old saying that “A boat is a hole in the water you throw money into.”

The same can be said about a pool, which is a hole in the ground you throw money into.

Naturally, you’ll want to have the pool inspected and find out:

  • How old it is as well as the age of the equipment
  • The size
  • How often it’s used
  • The history of any maintenance and/or repair issues
  • Does the pool meet local and state safety requirements?

The answers to most of these questions may help you figure out how much it will cost to maintain the pool.

Maintenance of a pool isn’t quick or cheap

The goal of pool maintenance isn’t just to make it Instagram-ready. You’ll need to keep it sanitized, free of algae, and pH balanced.

If you think you’d like to save money by doing it yourself, you may, but don’t forget the time you’ll spend on the job.

Stacey Freed at AARP.org crunched some numbers and found that if you DIY  your pool’s maintenance, plan on spending “… about five to 10 hours of your spare time,” each week on it.

Nicole Shein at BobVila.com lists the bare minimum when it comes to pool maintenance tasks:

  • Cleaning out debris, such as hair, garden litter, bugs, etc. This is known as “skimming” the pool.
  • Clean out the pool’s strainer basket. This task helps “… protect the pump from any damaging materials settling in the pool and its plumbing,” claim the experts at Evoqua Water Technologies.
  • Scrub down the pool’s floor and walls to help prevent algae buildup.
  • Vacuum the pool. The pool filter doesn’t catch everything, unfortunately.
  • Refill the pool if needed.
  • Test the water to determine if it needs additional chemicals.

“It’s a good idea to skim, check the baskets, and make sure the filter is functioning as it should on a daily basis,” Shein suggests.

“Vacuuming and tending to the pool water’s chemical makeup is usually a weekly chore,” she concludes.

Then, there is the cost of the equipment and the chemicals you’ll need to purchase to do it yourself.

You can always hire a professional to maintain the pool. The average monthly cost, nationwide, for this service ranges “… between $110 and $351 per year, with an average cost of $229.” (HomeAdvisor.com)

Take all of this into account when considering a home with a pool.

Maintenance isn’t the only way a pool grabs your cash

Before you sign on the dotted line, contact your homeowner’s insurance agent (you’ve chosen one, right?).

You’ll want to get this insurance nailed down so there are no financial surprises when it comes time to close escrow. But you’ll also want to know how much coverage for the pool will run you.

“… homeowners insurance with a pool is generally priced a bit higher than the typical cost of home insurance,” suggests Christy Bieber, insurance expert for Fool.com.

Shein suggests that some insurers consider an in-ground pool as part of the home, or, it could be classified as an “other structure.”

“Liability” is the name of the insurance game when it comes to swimming pools. Perform your due diligence by having your real estate agent obtain the answers to the questions we suggested above, in the third paragraph.

The most important of these questions is the one about meeting safety requirements. These might include a fence around the pool with a secured gate and/or an alarm.

 

Does a pool add value to the home?

Good for you to consider a home’s future value before buying it.

When determining whether or not a pool adds value to a home, consider the climate in the region. For Minneapolis or Fargo residents, for instance, a pool isn’t as high on the list of wanted amenities as it is for a buyer in Las Vegas or Phoenix, where it’s likely the pool will get used year-round.

“But if you live in a typical community where some houses have pools but most do not, having a pool built will probably not have any impact on the value of your home,” Robert Taylor, a real estate investor in Sacramento, California, tells Bankrate.com.

If you have additional questions, please let us know. Advice is always free and helping you find the right house for you and your budget is always our goal.

 

Don’t call the exterminator until you try these three easy DIY tricks

Bugs, creepy crawlies, pests — whatever you choose to call them, they actually have a season; a time when they are busiest.

“Spring marks the real beginning of insect season because … with rising temperatures and spring showers, insects become more active,” suggest the pros at Petri Pest Control in Boynton Beach, Florida.

For the most part, bugs are tolerable when they are outdoors. When they intrude inside the home, it’s time to take action. And, if the pest that’s bugging you is among those that can cause damage to the property (such as roaches), act quickly.

1. Perimeters aren’t just for crime scenes

Consider applying a perimeter spray.

There are a number of brands on the market and we’ve heard positive reviews on many of them from our homeowner clients. Many formulas are pet and people-safe if used as instructed and once they dry, including:

  • Ortho Home Defense® Crawling Bug Killer® with Essential Oils
  • EcoLogic Ready-to-Use Home Insect Control

Follow all safety precautions and the use instructions listed on the label. Wear protective clothing, gloves, and a mask, and wash thoroughly after using the product.

2. Push back on bugs

A good first step if you don’t want to use the perimeter spray is to push bugs as far from the home as possible. Ways to do this include:

  • Removing outdoor food sources that attract pests.
  • Eliminating outdoor water leaks, such as a faucet that constantly drips.
  • Declutter your yard to keep them from taking up residence in the clutter.
  • Stack your firewood 10 or more feet from the home.
  • Mow the lawn as short as possible.
  • Trim tree branches growing close to the home.

3. Then, seal up the home

Take a tour of the interior of the home, looking for:

  • Holes in floorboards (attractive to termites).
  • Piles of paper and cardboard boxes in the garage (the rats and mice thank you for the free bedding!).
  • Exterior cracks and holes that pests can use to gain access to the home.
  • The entomologists at the SC Johnson Center for Insect Science and Family Health™ recommend that you use caulk to fill the holes and cracks which will deny pests access to the home’s interior.
  • Cracks around doorways and windows.
  • Torn and bent screens on doors and windows (get them repaired).

Bonus Tip

Cleanliness is next to pestlessness

The ickies come into our homes searching for one of three things:

  • Food
  • Water
  • Shelter

Deny them these needs and they will most likely go elsewhere. The best way to accomplish this is to keep the home clean.

  • Keep up after crumbs, both in the kitchen and in the kids’ rooms.
  • Take the trash/garbage out to a secured bin every day.
  • Pick up pet droppings in the yard.
  • Ensure your pantry items are stored in sealed containers.
  • Avoid leaving dishes in the sink.
  • Fix leaky faucets.

If pests can’t find food, water, or shelter in your home, they will leave.

And that, after all, is the goal.

How to find the right real estate agent for your needs

“Are the online real estate agent reviews, such as those at the big real estate portals, reliable?” It’s a question we often hear.

A representative of one of these companies once said “We do have published rules and guidelines around our reviews. In addition, our general Terms of Use is also applicable. Having said this, we are certainly very aware of and keep a close eye on techniques used for submitting fake reviews . . . We take this very seriously. . .”

We think they are reliable, but they should not be the sole source of information on real estate agents you are thinking of working with.

The search for representation in a real estate transaction is something that shouldn’t be entered into lightly. Understand that whomever you hire will be the person/people responsible for steering your transaction to a smooth and lucrative closing. Choose the wrong agent and you open yourself to stress, aggravation and, possibly, loss of money.

So, how do you find the right real estate agent for your needs? 

Starting online, looking for social proof is a good place to start. So, yes, read the agents’ reviews on the various aggregator websites, but don’t stop there. Check out the agents’ websites, looking for evidence of their expertise and integrity.

It’s also a good idea that, when you narrow your choices to at least three agents to interview, that you ask each one for references from past clients.

Insist that you be given phone numbers so that you can call each one and ask the tough questions about the service they received.

Ask the right questions

Determine what type of agent you want to work with – what attributes are important to you. We’ve found that most of our clients were looking for someone who was responsive – who actually returned their calls, emails and texts within a reasonable amount of time.

They also complained about other agents who didn’t listen to them.

While asking the right questions of the agent is important, listening to the types of questions the agents ask you is equally crucial.

If you are a homebuyer, did he or she inquire, during the interview, about your loan pre-approval status and explain its importance? If you are selling your home, did the agents ask you about your preferred timeline?

Pertinent questions, specific to your transaction, are important signs that you’re interviewing a good agent.

It takes money to make money

I don’t know who first said that “it takes money to make money,” but he or she nailed it. And the advice is even more important when it comes to selling a home.

Naturally you’ll want to learn all you can about each agent’s marketing plan but it’s even more important to ask about their marketing budgets. A new or part-time agent may be operating on a shoestring. If so, you may receive the bare bones in marketing services.

To properly market a home requires pulling out all the stops, it often requires a balance of both innovative and tried-and-true tactics.

Since first impressions are critical, the referral to a professional photographer and stager are a must. Marketing to multiple platforms is also crucial.

Finding the right real estate agent to sell or buy a home may seem like looking for the needle in the proverbial haystack, but it doesn’t have to be.

Choose an agent with good reviews on Yelp.com. social media and at the big real estate portals and then ask for further proof in the form of testimonials from former and current clients.

During the interviews, sellers should ask the tough questions about marketing and marketing budgets and remember to pay attention to each agent’s listening skills and the questions they ask you.

Questions? Feel free to reach out anytime.

 

There’s a reason it’s called a ‘starter home’

Quick! Imagine for a moment what your life looked like a decade ago compared to today. Big difference, right? Maybe you were in another line of work or perhaps a different job, kids were born or moved out of the house. The neighborhood may have changed as well.

Remember, as you shop for your first home, your life today may look completely different ten years from now. Therefore, if you’re on a tight budget like so many first-time homebuyers, it’s important to understand that this first home is just a starter home and the dream, forever home will happen down the line.

When you approach hunting for your first home from this perspective, it becomes far less stressful.

What is a starter home?

  • A starter home typically offers two bedrooms. Sometimes you’ll find a three-bedroom starter, with a small square footage.
  • They are often located in older neighborhoods or, perhaps less-desirable parts of town.
  • They may be lacking in the amenities offered by larger homes.

 Benefits of a starter home

Let’s take a look at just some of the benefits of purchasing a starter home:

  • If your goal is to buy a starter home, you’ll spend less time saving for the down payment, allowing you to buy a home sooner.
  • You’ll build equity faster in a starter home
  • When you go to sell the home, you will find that starter homes are in greater demand, typically than larger homes.
  • Small starter homes are cheaper to maintain.
  • Starter homes are cheaper to heat and cool (provided they’re efficient).
  • Your property tax bill will be lower for a starter home.

Yes, there are disadvantages

  • Starter homes may feel a wee bit tight for couples just starting or adding to a family.
  • While renovating is always a possibility (if you have enough property), because it’s a starter home you may not live there long enough to recoup the construction costs.

Additional considerations

If you shop for this first home as an investor would, by looking for the cheapest home in the best neighborhood you can afford and, hopefully, near quality schools, you’ll be shopping wisely. Then, when it comes time to sell, this starter home will help pay for the forever, dream home.

After working with homebuyers for as long as I have, I think that it’s only natural for the first-timer to have delusions of grandeur. Going from tenant to homeowner brings lofty ideas, aside from the normal “I get to paint the walls whatever color I want,” and “We can finally get the kids a dog.”

Most first-time buyers initially assume they’ll get far more home for the money they have to spend, skipping from the starter home step right on into the forever home. Once you get used to the idea that you’ll need to work your way up to that larger, grander home you can relax into the house-hunting process.

You may even want to consider purchasing a fixer-upper. These homes typically offer the buyer the opportunity to get closer to their dream home quicker by not only allowing you to customize the home to your tastes but also with a more rapid build-up of equity.

FHA offers a loan program (FHA 203k) that rolls the cost of the rehab of the home into the mortgage so you’ll have only one payment every month. Let us know if you’d like to know more about this program and we’ll put you in touch with a lender who can explain its benefits in detail.

 

2 critical home price influences

Pricing your home is one of the most angst-filled parts of the selling process. Yes, we will help you determine a solid list price for your home, but that figure is passed on to you as a suggestion. The final list price will be your choice.

Depending on where the housing market stands at any given time, prices may be in flux, making it even more challenging for you to pinpoint that just-right price. Of course, this is something we do in our practice of business every day. But, again, the final list price is up to you

Keep in mind that when we find a buyer for your home his or her lender’s appraiser will determine your home’s market value by analyzing several factors. Some of these include:

  • Location
  • Condition
  • Age
  • Size
  • Quality of construction
  • Design

Price Influencers You Can Control

While some of these factors are out of your control, there are two critical price influencers homeowners most certainly can control:

  • Presentation
  • Your real estate agent

Since so much about the home buying process is based on emotion, how the home is presented to potential buyers is a powerful price influencer. Creating the right ambiance helps a home sell faster and for the most amount of money, the market will bear. It is, therefore, the foundation of a successful home sale.

The Role of Your Real Estate Agent

Your agent is the best person to consult about your home’s presentation.

All the effort, time, and money that goes into creating the home’s presentation is wasted, however, if the home isn’t marketed appropriately. And, marketing a home for sale is the listing agent’s primary job. This includes determining your home’s “wow factor,” which in turn helps us understand who the likely buyer will be.

For example, if your home is in close proximity to a popular elementary school, we can safely assume that your most-likely buyer will be a family with young children.

This knowledge allows us to maximize the appeal of your home to this particular buyer pool and helps us develop a targeted marketing plan. Using our example of the young family, we may want to stage the backyard and play up interior features that families find appealing.

Marketing Your Home

 

Marketing is an art and getting the news out about a home requires a healthy marketing budget—something many real estate agents lack. From hiring professional photographers to employing a videographer to creating 3-D video tours of your home, there are many ways to bring eyes to your listing, if needed.

We’re happy to discuss your expectations of us when it comes to listing and marketing your home. Feel free to reach out at any time.

Wait! Don’t leave for vacation until you follow these tips to secure your home

Now is about the time folks earnestly start planning their annual vacation. In fact, “More than 90% of Americans plan to travel in 2023,” according to the editors at ipx1031.com

Are you among them? Whether you plan to travel domestically or go abroad, you will be leaving behind your most prized possessions, including your home.

We’ve searched for home safety and security experts’ suggestions for you on how to ensure that you come home to a home in the same condition as when you left it.

Security should be top-of-mind

If you own smart home features, securing your home while you’ll be away will be much easier for you than for those homeowners who don’t. If you don’t own these features, consider installing some to:

  • Turn on and off the lights to give anyone watching the home the appearance you are there.
  • Use a smart plug to turn on the TV or radio for those crooks brazen enough to get close to the home.
  • Security systems, smart or otherwise, can alert neighbors or law enforcement that someone has broken in. Many feature DIY installations so you won’t have to break your vacation piggy bank to get them up and running.

Although we hear about rising crime rates from the media, the truth is that “The current burglary rate, including cases of forced entry, is 75% less than it was in the 1980s, according to Crime Data Explorer,” (Forbes.com)

The chances are good that you’ll come home to an unviolated home, but why tempt fate?

Turn your cooling system off or leave it on?

“… turn the thermostat up while away, not off,” suggests the pros at Central Heating and Air Conditioning in Northeast Ohio. They go on to recommend that you should set it seven to 10 degrees higher than you typically do.

Why?

Heat and humidity can help promote mold in the unit while it’s off. An overly hot home is also brutal on electronics and even your appliances, such as the refrigerator.

If you have a smart thermostat, it most likely has an “away” or “vacation” function you can use to ensure it is set properly.

Turn off the main water line to the home

If you’ll be away longer than a week or two, consider turning your water off. The reason for this suggestion is simply to protect the home in the event of a water leak when there is nobody around to stop it.

After turning it off at the main, turn on all the faucets to let the excess water out of the pipes.

Prevent coming home to a smelly house

If you plan on being gone for more than two weeks, you may want to consider wrapping the toilet bowls with cling wrap.

This will “… keep water from evaporating,” according to Geri Koeppel with the East Valley Tribune.

He goes on to explain that “If the toilets dry up, sewer odors may seep in and bugs may crawl up the pipes. It can also dry out the seal between the toilet and floor, which will make your toilets leak around the base.”

Speaking of stinky sewer gases, avoid coming home to a smelly refrigerator by throwing away anything that will perish before your return. Then, take out the garbage the day you are leaving.

Take these simple steps so that you can vacation with peace of mind, knowing that your home will be fine upon your return.

3 Ways to buy a home with little cash out of pocket

Millions of would-be homeowners struggle under the misconception that they can’t buy a house without having a huge down payment to give the lender. In reality, there are several ways to realize the dream of homeownership with little cash out of your pocket.

1. No down payment loans

If you are a current or former member of the United States military or the spouse of a deceased member, you may qualify for what is one of the best loan programs in the country, offered by the United States Department of Veterans Affairs.

The VA doesn’t grant the loan, a conventional lender will do that. Instead, the VA offers a guarantee making the lender far more likely to trust borrowers with less-than-perfect credit and no down payment.

If you qualify, you also won’t have private mortgage insurance (PMI) tacked onto the loan, saving you a significant chunk of money every month. There is a one-time VA funding fee (waived for some borrowers) that you’ll need to pay and that amount varies, according to certain conditions.

There is also no mortgage insurance requirement, which saves you money on your monthly payment.

The U.S. Department of Veterans Affairs has published an online guide to help you learn all there is to know about their home loan program.

The U.S. Department of Agriculture (USDA) also provides home loan programs, one that is similar to the VA loan in that it offers a guaranty to the lender and another that is a direct loan from the USDA.

Both loans have no down payment requirement. The catch is that you must buy a home in an area that the USDA considers “rural” and the home must be “modest,” meaning it contains no extra bells and whistles.

Check all eligibility requirements online at USDA.gov.

2. Low down payment loans

Most homebuyers are familiar with the home loan program offered by the Federal Housing Administration, or FHA for short. Although conventional loans make up the bulk of mortgages nationwide, the FHA-backed mortgage is the most widely used loan program by first-time homebuyers.

Down payment requirements range from 3.5 percent to 10 percent, depending on how your finances look and the lender’s requirements. You will be required to purchase PMI and, unlike a conventional loan, you must continue paying the insurance premium for the life of the loan.

If your credit score is at least 620, you agree to take homeowner classes, completely document your assets, income and debt and you can pay for PMI, you may qualify for a Fannie Mae or Freddy Mac home loan. These have a 3 percent down payment requirement

3. Down payment assistance programs

Local, state and federal agencies offer an array of down payment assistance programs. Here’s a list of just a few:

Grants – Would-be homebuyers love grants and it’s easy to see why: unlike mortgage loans, grants don’t need to be repaid. Think of them as gifts with some requirements attached. You still need to meet the program’s eligibility requirements or fulfill certain conditions to receive them.

Low-Interest Loans – For many homebuyers, a low mortgage payment can significantly improve their monthly budget. Low-interest loans are exactly what they sound like home loans with lower-than-average interest rates that deliver the benefit of a low monthly payment.

Zero-Interest, Forgivable Loans – If you plan to live in your home for a while, a forgivable loan could be a great fit. After a set number of years–usually 5, but up to 20, lenders will forgive these loans entirely. But if you move out before the forgiveness period ends, you may need to pay back some or all of the loan. Visit Security National Mortgage Company’s website for details.

If you are interested in learning more about any of these programs, give us a call. Although we aren’t mortgage professionals, we are happy to refer you to several lenders who will gladly explain the terms of these home loan programs.

 

The number one reason you should take more interest in your condo’s HOA

One of the most popular blog topics on our website is when we write about bargains, or how to save money in the local real estate market. So, today I searched the MLS and, sure enough, I found some somewhat low-priced condos for sale.

I looked first at how long they’ve been on the market and all of them have been sitting for quite some time. In fact, the lowest-priced condo has been on the market for almost a year.

Now why, I thought to myself, is that?

So, I sleuthed

I then looked at the photos of each condo for sale to see if there was anything there that might explain why these low-cost condos aren’t flying off the market. Aside from one with a very dated kitchen and another with a missing refrigerator I didn’t see any obvious flaws.

Then, I saw it – $270 a month in HOA fees. Now, that may not seem like a lot to some, but for someone on a tight budget who needs a starter home and a price tag that fits their budget, the HOA fees could be a deal breaker.

FHA certification is important

But, there’s another reason these condos may not be selling. When the price of single-family homes skyrocket, buyers on tight budgets often turn to condos as an alternative. Many use loans backed by FHA.

The problem here is that FHA has stringent qualifications when it comes to condos. The community must be FHA-certified for anyone to get FHA’s backing for a loan and many across the country aren’t.

In fact, “… there are more than 150,000 condominium projects in the country, but only 6.5% of them qualify for FHA financing,” according to Kim Porter, citing FHA statistics, at Credible.com.

Back to our condo with a $270-a-month fee. It just so happens that this particular community is not FHA-certified so between the high monthly HOA fees and the fact that it’s not approved for an FHA loan, the poor homeowner is having a rough time selling.

Pay attention to what your HOA is planning and doing

You may not be thinking of selling right now, but eventually you most likely will.

Most homeowners that live in managed communities (those with a homeowner association) receive a monthly or quarterly newsletter or bulletin from the HOA. Many don’t bother to read it.

If you own a condo or are planning on buying one, it’s important to be active in your Homeowners Association. Even if all you do is read the newsletter or attend the meetings, it pays to know what is going on.

For instance, if the ratio of rentals to owner-occupied units happens to increase to more than half of all units, your community will lose its FHA approval. Other FHA approval violations include:

  • Commercial use of the property is limited to 35%.
  • The association has to keep at least 10% of the budget in cash reserve, according to Porter.
  • The association must not allow fewer than 85% of the homeowners to become delinquent on their HOA dues.

Since FHA demands that recertification takes place every three years, it’s important that you ensure they’re following the rules.

The biggest problem that occurs is the first one I mentioned – too many tenants. The wise homeowner will be vigilant in monitoring the enforcement of FHA’s cap.

Yes, that’s easier said than done. But it’s important to pay attention to the future resale value of your property and the longer a home remains on the market, the less you’ll make on it. If you can’t sell it at all, it’s worthless, right?

If you want to check if a particular condo community is FHA certified, check HUD’s website.

3 things you must know about buying a newly-constructed home

Home builders are back at work! In fact, according to the Census Bureau, permits for single-family homes increased 7.6% in February over January.

This is not surprising when we take into account the demand for homes of any age and the statistics that show 60% of homebuyers “…prefer a new construction home over an existing home.”

If this includes you, we’d like to share several aspects of new-home shopping and purchasing that you may not know.

1. The new-home mortgage

Just as when you purchase a pre-owned home, you’ll need to visit a lender for mortgage pre-approval consideration. This way you’ll not only know for certain that you can get a home loan, but also the amount you’ll be receiving, which helps you avoid looking at homes that are out of your price range.

Most new-home builders have established relationships with their own  “preferred lenders.” Depending on the builder you speak with, you may feel pressured to use that particular lender.

“The builder may make it seem like you have to use their preferred lender, but you always have the option to finance your home with someone else,” according to the experts at Better Mortgage.

“It’s often in the builder’s best interest for you to partner with their preferred lender, but it may not be in yours,” they conclude.

You may, on the other hand, get a better deal with the builder’s preferred mortgage company. That’s why it pays to shop around before settling on one.

2. Get your own real estate agent

The first person you’ll meet when you visit a new-home community will most likely be the builder’s real estate agent. Even though he or she may be a very nice person and knowledgeable about the homes and the community, resist any pressure to allow the agent to represent you in your purchase.

The builder’s agent represents the seller, the builder in this case. It’s important for you to have your own representation as well.

Since a buyer’s agent costs you nothing (the builder pays the buyer’s agent commission) you have nothing to lose and lots of protection to gain by working with your own agent who is looking out for your best interests.

3. How will you deal with deciding between standard options and upgrades?

The interior of the home will come with what are known as “standard” options. You will also be offered a choice of upgrades for most of these options.

If you fell in love with the model homes, you’ll pay a pretty penny to recreate them because they’re all furnished with upgrades.

Examples of standard vs. upgrade include:

  • Standard vs. high-end cabinets
  • Neutral paint colors vs. specialty paint colors
  • Carpet vs. wood floors

Keep in mind that upgrades are going to increase the sticker price on your home. Sometime significantly so.

This is where your buyer’s agent will be extra helpful. As you tour the design center and come across an upgrade you like, ask your agent if the upgrade is worth the investment and whether you’re likely to see a return when you sell the house.

You might also consider reaching out to vendors directly because you may get these upgrades after closing for much less than what the builder would charge. It’ll be even cheaper if you’re handy and can install the updates yourself.

This said, upgrading a kitchen (or bathroom) is not an especially easy project and — let’s be honest — do you really want to move into a brand-new home and already feel like your kitchen needs renovating? In some cases, it may be worth the splurge to get the materials and appliances you really want from the outset.

To help you make up your mind, visit this blog post at Realtor.com.

We can help you navigate the new construction waters and bring you to a successful close on your brand-new home. Feel free to reach out to us.