Real Estate Information Archive

With all the fees and expenses involved in purchasing a home, it may be tempting to skip the  home inspection to avoid spending the money.  But in the long run, it may cost you more to skip it. Home inspections sometimes reveal things that ultimately could have cost you way more than the fee involved.

While you might believe that sellers are being honest about the condition of the home, it’s important not to take their word for it. Truthfully, they probably are being honest. But they don’t necessarily see what could be “wrong” with the house any more than you do. That’s why you need an expert to come in and do the inspection. They can find things that never would be noticed otherwise because they know what to look for. Home inspectors can also give you advice and things to look out for in the future. With that information, you can have an idea of how to prepare for potential costs down the road.

A home inspection can be a deal breaker as well.

For example, if sellers offer a discounted price or cash back for skipping the inspection, walk away from the deal. This is a huge red flag!  A home inspection only takes a few hours and is paid for by buyers, so there is no reason sellers should protest unless there are critical issues in the home they know about and are trying to hide.

When hiring a home inspector, you want someone with many years of experience and proper certifications and licenses. You also want someone who will be thorough…willing to go through the basement, attic and up on the roof to check out every nook and cranny of the home.  It’s important to gather as much information about the house as possible so that you know what you are getting into.

It is not mandatory for you to be present for the inspection, but it’s a good idea to be there.  Some inspectors are happy to have you walk along with them and ask questions as you go.  Others will want to do the inspection on their own and then have you do a walk through with them after they are done. Either way, be sure to look carefully through the report they give you and ask as many questions as you want. Remember that you are paying for their time, so don’t hesitate to have them go over the report with you so that you have a clear understanding of it.

Even if your inspection comes up clean, the fee you pay is worth the price to have peace of mind. Include it in your home-buying budget and don’t think of it as an “extra” expense. It is a crucial element of your decision in purchasing the home and paying a $450 fee and finding nothing wrong is better than skipping it and ending up having to spend thousands to repair something! 

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information.

Spring is approaching and with it, prime time for real estate transactions. Many people will be looking to purchase homes meaning home buying will become a “competitive sport”. This means that you will need to stand out to sellers if you want to “win” the house of your dreams. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search. In fact, regardless of how competitive the market is, getting a mortgage pre-approval will give you the security of knowing what your true budget is, allowing you to know if a desired home is within your reach.

One of the many advantages of working with a local Realtor is that many have relationships with lenders who will be able to help you with this process. Once you have chosen a lender, you will need to fill out their loan application and provide them with vital information regarding your credit, debt, work history, down payment, and residential history.

There are “5 Cs” that aid in determining the amount you will be qualified to borrow:

1. Capacity: Your current and future ability to make payments.
2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash.
3. Collateral: The home or type of home that you want to purchase.
4. Character: Your history of paying bills and other debts on time.
5. Conditions: Current interest rates and amount of principal influence the lender’s likelihood of financing the borrower.

Getting pre-approved not only shows sellers you are serious, but also speeds up the process of completing the purchase once your offer has been accepted.

Even before you contact a mortgage lender, it’s a good idea to look at your credit score to see where you stand.

Here are some steps you can take to improve your credit score:

• Check your report for errors. If you find errors, dispute them with the credit bureaus. Having errors removed can improve your score.
• If possible, pay down balances on credit cards.
• Resolve collection accounts. If you have any accounts past due, it will have a negative effect on your credit report.
• Open a secured credit card. If your score is low, this can be an effective way to raise it.

Purchasing a new home is exciting but can also be stressful. Getting pre-approved for a mortgage will help alleviate some of that stress. So, if you are in the market to buy a house this spring, contact mortgage lenders now and get the process started!

If you are in the market to buy or sell a home  (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: fortunebuilders.com, divorcelendingassociation.com, realtor.com

The thought of buying a house sight unseen may give you hives, but it is more common than you might think. A 2018 poll, conducted by Redfin, revealed 20% of home buyers made an offer on a home sight unseen.

In a 2017 survey, 45% of Millenial homebuyers said they had made an offer on a home without stepping foot in the home, followed by 30% of Gen Xers and 12% of Baby Boomers. These statistics were long before the Covid-19 pandemic turned our lives upside down. Can you image what current statistics would show?

Buying a home sight unseen can be done safely and intelligently if you are willing to do your homework and put a team of consummate professionals in place. Here are 5 hacks to help you do just that…

1. Become Friends with Real Estate Websites

You will want to spend lots of time on your computer researching not only individual homes, but neighborhoods, schools, crime statistics, transportation, and amenities nearby.

Visiting Open Houses in your current community will help you get a feel for the size home you want and zero in on features you want in a home.

2. Find a Realtor You Trust

Buying a home sight unseen is not possible without finding a Realtor you trust implicitly! Do online research on Realtors working in your new community and then interview a few of your top picks by phone. Be sure to ask for references from previous clients that you may talk to.

3. Take a Video Tour

Many homes listed for sale on the internet include a virtual tour. These tours can give you a feel for the property, but also do a walking tour with your agent. Being able to talk with your agent as he or she walks through the house allows you to ask questions about details a photo can’t discern. Is the floor wood or laminate? Are the countertops granite or quartz? This tour can also reveal problem areas the photographer may have overlooked.

4. Hire a Well Qualified Home Inspector

Having a top notch home inspection is even more important when you are buying a home sight unseen. Having all the major systems checked out and having a report itemizing any problem areas along with recommendations how to how they can be corrected in invaluable.

5. Don’t Sweat the Small Stuff

No home is perfect. This is true whether you are buying a home you choose in person or one you are buying sight unseen. No matter how well qualified your team of experts is, minor discrepancies will occur. Maybe a wobbly ceiling fan will be missed but this is just part of buying a home.

There will be some surprises. Doing your homework and putting an expert team in place will help you eliminate big surprises and handle the smaller ones.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

The decision to move is a big one. Chances are a lot of time, thought and energy went into making it. But now that you have decided, it’s time to start thinking about getting ready for the move. You’ve already answered the “should I stay or should I go” question, now it’s time to ask yourself “what should I bring with me and what should I get rid of”?  Whether you have kept a lot of things because of sentimental value, or you are just a tad lazy and have let things accumulate over the years, it’s time to decide what to keep and what to let go. Here are some things you should definitely “let go” of before you move:

1. Clothes you don’t wear anymore - You know…that dress that you don’t like, but keep just in case you need a dress for something, or that suit that fit a few years ago and might fit again if you can just lose a little weight? Yep. Time to go. Same with any clothes you simply don’t wear anymore, whether because of style or fit. There is no reason to drag them to your next home. If they are in good condition, place them in a donation bag and drop them off. And if they are trash, well…you get the idea.
    
2. Gag gifts and free promotional items - Been to a golf tournament recently? If so, you likely came home with a “swag bag” of sorts. If you consider chip clips, notepads, pens and plastic cups “swag”, then by all means, hang onto it. But if the bag has been sitting on the kitchen counter for weeks, it’s time to say goodbye. Same with any other similar items. Gag gifts are fun to open, but they just end up cluttering your junk drawer. Don’t take junk with you when you move. Trust me…you won’t miss it.
    
3. Kitchen appliances you rarely (if ever) use -  Who even uses a “Fry Daddy” anymore? All that grease and fat? Yuck. Just because it was a wedding gift 25 years ago, doesn’t mean you should bring it along with every move. Any appliance that you haven’t used in over a year needs to go. Why take up space in your moving boxes with something you likely won’t use again? Bye, bye!
    
4. Cheap art - Maybe you were on a tight budget when you were decorating your current home, so you bought some inexpensive posters and art for your walls. If you’ve outgrown them, don’t take them with you. 
    
5. Most things you have more than one of - I bet you’ve replaced a lap top or cell phone during the years you have lived in your current home. And how many new pairs of eye glasses have you gotten during that time? I also bet that when you replaced those items, you didn’t get rid of the original items you were replacing. Am I right? Well, now is the time my friend. Outdated technology doesn’t have to end up in a landfill, nor does it need to stay with you forever. Take it to be recycled!  And you can donate all those old eye glasses to Lion's Club International where they will distribute them to people in need. Electronics: Recycling and Donating
    
6. All the fancy bath products you got as gifts - Seriously. If you haven’t use them yet, you probably never will. If you have a stash of bath bombs and such that you’ve been waiting for the perfect time to use, either use them before you move or get rid of them. 
    
7. Stuff you borrowed from friends - As you’re cleaning out cupboards and closets you may come across items you borrowed long ago. Or items friends left at your house after a party of cook-out. GIVE THEM BACK.  You might be a little embarrassed if a lot of time has passed, but your friends will appreciate it and it will be one (or two, or three) less things you have to pack and move.
    
8. Anything you forgot you had to begin with - If you come across something that you have genuinely been missing and thought was lost forever, yay! That’s awesome. But if you come across something that you are surprised you ever had to begin with? It goes.
    
9. Stuffed animals - Sigh. Even as a grown-up this one can be tough. They are so cute and cuddly. But depending on how many there are, they can take up a lot of space. Pick a few favorites if you must, and keep your childhood favorite. But if you have a huge collection (whether they are yours or your children’s) I recommend you weed out as many as possible. 

The bottom line is, the less you have to pack, the less overwhelmed you will feel about your move. Less truly is more…more time, more energy, more peace of mind.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: geauxmovers.com

Buying a home in the midst of the holiday season might sound like a crazy idea, but the truth is this time of year can be a great time to buy!  Here are 5 good reasons to purchase a home during the holidays:

1. Less Real Estate Market Activity:  Because fewer people are looking for houses this time of year, there is less competition for buyers. And with less competition, buyers have more leverage when negotiating purchases. People selling homes during the holidays must often lower asking prices or make other concessions to sell. So, if you buy this time of year, you might get a bargain! Montgomery AL Real Estate Market
    
2. Highly Motivated Sellers:  If someone is selling their house at the end of the year, it’s because they need to. Usually sellers avoid the end of the year due to shorter days and cold weather, so if they are selling this time of year they are likely under pressure and motivated to make a deal.
    
3. Lower Interest Rates: Because of limited demand during the holiday season, there is greater competition among lenders so there is a general trend of lower rates. Current Mortgage Interest Rates
    
4. Tax Perks: Buy a house before the end of the year and you can deduct any points you paid upon closing.  You can also deduct property taxes and mortgage interest. Learn about the tax benefits of buying a home and find out if it is to your advantage to buy before year’s end. While your decision to buy a home shouldn’t be made solely for tax reasons, you certainly want to take advantage of the perks that exist!
    
5. Faster Closings: Everybody involved in the home buying/selling process has incentive to complete transactions before the end of the year.  Lenders want to close their books, Realtors want to receive their commissions before the new year and sellers are anxious to move on.  Since everyone is so motivated, and there is less real estate activity, closings should happen quickly and efficiently.

So, if you’ve been thinking about buying a home, but thought you should wait until the new year, think again! NOW just may be the right time for you to find a new home for the holidays!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: irishtimes.com

Buying a house is a HUGE decision, but once you have made it, it is easy to get caught up in the excitement of choosing your new home. Do not let that excitement overshadow common sense. Do your homework and be sure you know what you are doing so that you can avoid costly mistakes. Also, take advantage of the expertise of an experienced Realtor like Sandra Nickel and allow her to guide you through the process.  Here are some common home buying mistakes that you will want to avoid:

• Falling in love with a photo. Don’t do it. Pictures are worth a thousand words, but they do not tell you everything! Keep in mind that online real estate tools are great and keep improving. And home sellers work hard to show their home in the best possible way to impress potential buyers. So, if you see what you think is your dream house online, don’t get attached until you see it in person!
   
• Starting your home search before getting pre-approved for a mortgage loan. You will be so disappointed if you find the perfect home but lose out on it because another buyer with a pre-approval was more enticing to the seller. Sellers want a sure thing and know that someone who is pre-approved, and knows how much they can afford, will likely have no problems obtaining a mortgage loan. Five Things You Need to Be Pre-Approved for a Mortgage
   
• Neglecting to budget for home maintenance. If you are going to be a first-time homeowner, you might not realize how expensive a house can be. With furnishing, decorating, landscaping and maintenance you can spend a big chunk of change. That doesn’t even take into account repairs you may need to make. So, keep that in mind when creating a budget to determine how much house you can afford.
   
• Going over budget. Being house poor is no fun. You will feel trapped in your home if you have to use too much of your income to pay for it. Be sure to set a budget for yourself that will allow you to maintain an enjoyable lifestyle…then stick to it!
   
• Failing to negotiate. This is one area where having a Professional Realtor on your side will pay off. They are expert negotiators and understand the nuances of real estate transactions. 
   
• Assuming a listing agent is your agent too. A listing agent will certainly assist you in purchasing a home they have listed, but remember, they represent the seller’s interest, not yours. Listing Agents and Selling Agents - What's the Difference?
   
• Skipping the inspection. Big mistake! It is imperative that you hire an insured, professional inspector. They might discover a flaw in the home that could cost you a bundle down the road.
   
• Buying the “biggest and best” house in the neighborhood. If you fall in love with a neighborhood, consider purchasing a smaller or more modest home because it will be more challenging to sell and get a good return on investment on the biggest, fanciest home.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: nerdwallet.com

Negotiation is important in the world of real estate because the truth of the matter is, if you do not ask…you do not get. While sellers want the highest price and buyers want a bargain, they must meet somewhere in the middle for the deal to close. Negotiating is a vital part of selling or buying a home because it is the largest asset people own and there is a lot of money at stake. Here are some guidelines for what sellers and buyers might ask for in real estate negotiations:

• Price

Negotiating the best price means different things for sellers and buyers.  The seller wants the highest price and the buyer wants to pay as little as possible.  For a successful transaction, they must compromise and come up with a price that is acceptable to both.

• Closing Costs

Prepaid closing costs are paid by buyers for their mortgage. These are funds that the mortgage lender holds in escrow for expenses like taxes and insurance.  A buyer may ask a seller to cover some or all their closing costs either with a flat dollar amount or up to a percentage of what is an allowable contribution for a lender. If a buyer asks the seller to do this, they are likely going to pay a higher asking price. Escrow:  What is it and How Does it Work?

• Closing Date

Sometimes sellers want to get out of a home quickly because they need the capital from that house they are selling to put toward a new real estate purchase. The closing date will also affect the buyer’s monthly cash-flow because when a buyer closes on a house, they skip the next month’s mortgage payment. Therefore they may want to negotiate to close at the beginning of a month.

• Financing Contingencies

When there is a financing contingency in place for a real estate transaction, it can tie up a seller’s property for a required 30 to 60 days.  For this reason, many sellers prefer buyers coming to the table with cash offers. If you are competing with cash buyers, you may want to figure out if you can drop the financial contingency, which will shorten the closing time line. You can do this by getting pre-approved for a home loan prior to making an offer.  Mortgage preapproval shows that your finances are in order and you can afford the home. 5 Things You Need to be Pre-approved for a Mortgage

• Home Warranty

As a buyer, you can request a home warranty. As a seller, you can offer one. This home protection plan covers things like appliances and systems such as the hot water heater or air conditioning, in the event they need repair or replacement.

• Leaseback

The moving process is stressful and labor intensive.  Sometimes a seller will need extra time to get into their new home. When this happens, buyers can offer a zero-cost rent-back for 30 to 90 days to persuade the seller to accept their offer over others. 

• Home Repairs

With a home that needs a lot of updating there comes ample opportunity for negotiation. Buyers need to consider the cost of bringing the home up to current standards and use the estimate of that cost to request a lower asking price. The seller, on the other hand, can specify that the house is being sold “as is” and not offer any repairs.

• Appraisal Contingency

A seller can push for a buyer to waive the appraisal contingency,  however, if for some reason the appraisal falls short of the expected amount, they need to be prepared for the amount of cash they might have to pay should the bank only be willing to lend them money based on the appraised value. Understanding the Appraisal Contingency

• Furniture

Personal property such as patio furniture, window treatments and chandeliers is all up for grabs. The buyer can ask for these things to be included in the contract. Sellers need to determine what they are willing to leave behind. And any exclusions need to be specifically listed in the contract as well.

• Appliances

Depending on the market, sellers don’t always leave every appliance for the buyer.  They may include the dishwasher, stove and built in microwave in the contract but not the refrigerator, washer and dryer. Sometimes they don’t want to give everything away up front so that they can use these as items for negotiation.

• Condo/Co-op Assessments

These are fees that are used to maintain common areas in a community. If there is an open assessment, it can become a negotiation between the buyer and seller as to who will pay for it.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: grenadabroadcast.com

When you make an offer on a home and it gets accepted, you have every reason to be excited. Becoming a homeowner is making an investment in your own future; likely the largest financial investment you will make. However, it is prudent to be aware that there are other costs involved in purchasing a home other than your down payment and monthly mortgage payments.

Closing costs are an expense you may not be aware of if you are a first-time homebuyer. These costs must be paid prior to closing on the home. They include property taxes, homeowner’s insurance, title search fees, and appraisal fees. In addition, the closing costs provide the funds that pay the people who have performed services throughout the loan process, like the appraiser and your real estate agent.

Your closing costs will be itemized for you and provided at your closing. But it is important that you look over them closely and take the time to ask any questions you may have before you sign any documents. If there is something you do not understand, your mortgage banker or Realtor can explain it to you.

The homebuyer can negotiate with the seller to determine who will cover the closing costs, but every loan has different guidelines about how much a seller can pay.  Your mortgage banker can provide you with your options. How to Negotiate Your Mortgage Closing Costs

Whether you end up paying for all or just some of your closing costs, it is crucial for you to include the amount you will have to pay into your budget. You can estimate the cost by calculating 2% to 6% of your purchase price. For example, if your loan is $200,000, your closing costs will range anywhere from $4,000 to $12,000. You will also receive a document from your mortgage banker after you apply for your loan that will list the anticipated closing costs. They may change a little during the process, but it will give you a good idea of what to expect.

So, while saving for a down payment is an obvious necessity, you may want to also set aside some cash each month to go toward other expenses associated with buying a new home. 5 Expenses That Shock First-Time Home Buyers

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: foxbusiness.com

So, you’ve decided to buy a house. Chances are you have a good idea of what you want, and an even better idea of what you don’t want.  With all these ideas in your mind, looking at houses can become overwhelming.  While there are a lot of things that can be deal breakers for buying a home, there are some things that are not as bad as they seem. If you have found a home that is otherwise right for you, here are some things to look past when making your decision to buy:

• FUNKY WALLPAPER AND UGLY PAINT - A house that is move-in ready is great, but sometimes the perfect house just needs a little TLC.  Wallpaper can be removed and a new coat of paint can do wonders to improve the look of a home that has good bones.  These small cosmetic changes do not have to break the bank. So, try to ignore the weird wallpaper and unfortunate paint jobs and keep in mind that this is a DIY project you can handle! How to Remove Wallpaper
   
• HOW A ROOM IS USED - The people currently living in the home might be using rooms in ways that you do not care for.  For example, maybe they have converted their formal dining room into a playroom for their children. Or perhaps they needed and office more than a guest bedroom.  Just because they have the home arranged that way, does not mean that you must keep it that way.  Try to overlook the way they have the rooms set up and picture the way you would use them.  It might be challenging for you to “see” it, but if this is your dream house, you don’t want to let something this minor stop you from buying it. 25 Smart, Inspiring Ways to Use a Spare Bedroom
   
• DIRTY CARPET -  Ugh…there is nothing worse than nasty, worn out carpeting in a house. But if you love everything else about a home, do not let dirty carpet be a deal breaker for you.  Like wallpaper and paint, it is easily replaced.  Often, you can even negotiate for new carpet (or the cost of it) in your offer.  If the owner is anxious to sell, they just might be willing to replace the carpet for you.
   
• THE OWNERS’ BELONGINGS - While many Realtors recommend that sellers remove as many personal items as possible before showing their home, not all sellers comply. A lot of “stuff” can be very distracting and make it difficult to really see the house as your own. But if the house is everything you are looking for - right location, right size, right style etc., do not let all that stuff ruin it for you. Look past all their clutter and try to picture the space with your furniture and belongings. 

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: thehouseshop.com

A couple does not have to be joined in matrimony to buy a home together, but it is important to understand that you are still making a huge commitment.  And being unmarried does present some challenges for home buyers.  So, before you begin your home search, here are some important things for you to consider:

SHARING FINANCIAL INFORMATION

If you’re going to buy a home together, then you need to be transparent with each other regarding your finances.  You do not want to meet with a lender only to be blindsided by something that your partner did not share with you.  So, it is vital that you review all of your financial history with your partner, including your Credit Score, income, and any debts that are tied to your name.  By doing this, you will not only be able to determine if you both have good credit, but you will also get an idea of how much house you can afford together.

HOW YOU ARE GOING TO SPLIT EXPENSES

You might already be living together, in which case you may have a system in place for who pays what living expenses.  But things can be more complicated with a mortgage in the picture.  You need to discuss this before you start the home buying process. The first thing you need to figure out is how you are going to split the down payment and closing costs when you buy a home together.  And if you will be living together for the first time, it would be smart to discuss how you will split the monthly bills including your mortgage, utilities, and home maintenance. What if there is need for a costly, emergency repair? You may want to consider opening a joint bank account that exists only to cover home expenses.  It is also a good idea to meet with a real estate attorney so you can get everything in writing and have a legally binding contract just in case things do not work out down the road. Unmarried Couples and Property: Basics

EDUCATE YOURSELF ABOUT OWNERSHIP OPTIONS

You are buying a home together and splitting the expenses, but whose name is going to be on the title?  This is something that requires serious thought because it can have a significant impact on your future. There are three options to choose from:

• Joint Tendency - Property is owned equally and if something happens to one owner, the second owner automatically inherits the other’s stake and becomes sole owner of the property.
• Tendency in Common - Each partner owns a pre-determined percentage of the property. Should something happen to one or the other, the ownership interest would go to whomever is specified in a living will, will, or trust. If none of those are in place, the interest in the property would go to the next of kin and not to the significant other. Living Will vs Living Trust
• Sole Owner - For some couples it might make more sense for one person to have full ownership of the home even though you are splitting expenses. For example, if one person has poor credit and will not qualify for a mortgage loan, then the person getting the loan would be the sole owner of the home.

Determining ownership should not be taken lightly.  It is probably the most important decision you will make when buying a home with someone you are not married to.  Keep in mind that if you are splitting the costs of the home, but you are not on the title, you probably won’t be able to enjoy the tax perks of being a home owner.

LOOK FORWARD

Whether you are married or not, everyone should think about where you see yourself in 3 to 5 years.  There is a lot to consider.  Do you have job stability?  Is it possible you will need to move soon?  Do you want to start a family?  These are just a few questions to ask yourself before taking on the commitment of home ownership.  It is crucial that you have a heart-to-heart talk with your partner about your future before you start your home search!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: thebalance.com