First-Time Homebuyer Regrets

Only one out of every five first-time homeowners report misgivings after closing, so the odds are in your favor that you’ll look back on the experience (and your new home) with nothing but satisfaction. Just in case, though, let’s take a moment to look at the regrets of the first time homebuyer to make sure you don’t make the same mistakes.

Lower Property Taxes

The most likely case for lower property taxes is that you bought your house at a time when the economy was doing much better. At that time, you would have paid more for your home than it would be valued at now. Because of the higher price tag, you naturally paid more in taxes. Lowering your property taxes isn’t a particularly difficult process, but it is a process nonetheless. And with upfront expenses like a potential assessment of your property, it may be a case of “you need money to save money.” But if the market was more inflated at the time of your home purchase than it is now, lowering your property tax will be beneficial in the long run!

Possible Tax Benefits for Homeowners

While everyone’s situation is different, many homeowners find that they’re able to reap the benefits of homeownership, which often include:

Mortgage interest. For most people, the majority of a monthly mortgage payment goes toward paying off interest. Often, that interest is deductible (unless your loan is over $1 million, in which case the amount you can deduct is limited).

Points. If you paid points to get a better rate on a mortgage, you could claim them on your tax return as a deduction. However, it’s a good idea to talk to a tax expert about when you can claim your points.

Property taxes. Because some of your monthly loan payment likely goes toward property taxes, where it sits in escrow until they’re due, you can typically deduct them each year for as long as you own the home.

Profits. If you’ve made a profit on the sale of one home as you moved into another, you might be able to deduct some of the profits you made. However, these instances are limited to meeting certain requirements or if you’ve sold under certain circumstances.

Whether you’re actively house hunting this winter or are “just curious,” here are a few home buying tips to make your search more productive. Forward this on to family and friends who may be on the hunt for a new home, and please contact me if you’d like more information about buying or selling your home!

Thinking of Selling? Why Now is the Time

It is common knowledge that a large number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year. The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring, as compared to the rest of the year? 

The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2016. Here is a graphic showing the results:

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,820,000.That number spiked to 2,140,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for a home right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition for a buyer.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today. 

Home Improvement Projects to Avoid

If you know you're going to stay in your home until you retire, you can pretty much improve to your heart's content. But the average home owner moves once every seven years. Many make the mistake of undertaking expensive improvements they can't recoup when it comes time to sell. In terms of market value, you will benefit more from having a home that is comparable in price or slightly below the other homes in your neighborhood. This leaves room for appreciation to strengthen your investment over time and you won't be dropping money into pricey renovations that buyers will ignore when it comes time for you to sell. This is especially true if the value of homes in your neighborhood is dropping.

Winter Tips for Your Home

Have You Saved Enough for Closing Costs?

There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan). If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs. Freddie Mac defines closing costs as: 

“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”

• We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment. Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:Government recording costs
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services (insurance, search fees)
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting fees

Is there any way to avoid paying closing costs?

Work with your lender and real estate agent to see if there are any ways to decrease or defer your closing costs. There are no-closing mortgages available, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs). Home buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘seller’s concession.’

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to. 

Tips for Preparing Your House For Sale

When listing your house for sale your top goal will be to get the home sold for the best price possible! There are many small projects that you can do to ensure this happens! I will have a list of specific suggestions for getting your house ready for market and will help you with finding local contractors who can help! 

8 Things Not To Do In Your Quest To Buy A House

Got pre-approved to buy a home? Already have your dream home under contract? Got extra cash from your 2016 tax returns for a down-payment? Make sure your home buying process goes smoothly.

Moving With Kids

What is an Earnest Money Deposit? (Due Diligence)

Earnest money is a deposit made to a seller showing the buyer's good faith in a transaction. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and buyer in a trust or escrow account.

5 Myths About Real Estate Reality TV Explained

Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there… watching entire seasons of “Love it or List it,” “Fixer Upper,” “House Hunters,” “Property Brothers,” and so many more, just in one sitting. When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on TV must be how it works in real life, but you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and make a decision to purchase one of them.

Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average homebuyer tours 10 homes as a part of their search.

Myth #2: The houses the buyers are touring are still for sale.

Truth: The reality is being staged for TV. Many of the homes being shown are already sold and are off the market.

Myth #3: The buyers haven’t made a purchase decision yet.

Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.

Myth #4: If you list your home for sale, it will ALWAYS sell at the Open House.

Truth: Of course this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but are only a PIECE of the overall marketing of your home. Just realize that many homes are sold during regular listing appointments as well.

Myth #5: Homeowners make a decision about selling their home after a 5-minute conversation.

Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.

Bottom Line

Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality!

Pros & Cons of Tankless Water Heaters

Is a tankless hot water heater the best choice for your home? Get the info you need to make the right decision.

Atlanta City Design

Join us at the Atlanta Central Library on February 2nd at 6:00pm for an Atlanta City Design discussion focused on "Our Future City".

Why You Should Never Skip A Home Inspection

Before you buy a home, one of the things you should do is to have the home checked out by a professional home inspector. When you are purchasing a home, you want to know every strength and weakness your new home has. Having this information before you close is paramount for negotiations as well as maintaining your new home for the long term. Comprehensive residential inspections cover moisture, mold, attic, termite, structural, roofing, insulation, plumbing systems, heating and cooling systems, electrical wiring and electrical systems inspections. Never skip a home inspection.

Fireplaces...

Are you having fireplace envy yet?

You Need a Professional on Your Team When Buying a Home

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to do it on their own. In today's market: you need an experienced professional!

You Need an Expert Guide if You Are Traveling a Dangerous Path

The field of real estate is loaded with land mines; you need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and is ready for you to move into can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your "dream home." A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today's market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way - from the original offer to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal - you need someone who can keep the deal together until it closes. Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family's head; the salary that puts food on their family's table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money...not cost you money.

15 year vs. 30 year mortgage. Interesting comparison!

5 Musts For Home Sellers - Low Cost, BIG Impact!

5 Tips for Sellers

If you’re thinking about selling your home, anyone can tell you how much it’s worth. Contact us to find out how to make it worth more!

First-Time Homeowner Checklist

First-Time Homeowner Checklist: What You Need to Do Before Moving In http://timgrissett.com 

The Complicated Relationship of Credit Score & Real Estate

Does your credit score look good enough to score a good house? Here's the skinny on bringing these 2 things together. #creditscore #mortgage

Save by Making An Extra Mortgage Payment

Save by making an extra mortgage payment. Divide your payment by 12 and add that amount to each monthly payment. You'll make one extra payment each year, saving you thousands of dollars and shaving four years off your mortgage.