Real Estate Information Archive

You may or may not have small children living in your home but even if you don’t you might have a family member or a friend who does, so tips on childproofing your home may be advantageous to you.  There are several ways in which you can make your home child friendly so that you don’t have to worry about any little ones getting hurt or any of your stuff destroyed. 

• The first and most important tip to make your home childproof is to cover your electrical outlets.  For some reason electrical outlets are very interesting to little hands and fingers.  The best way to keep the kids from exploring your electrical outlets is to buy covers for them.  Make sure to get the electrical outlets that are not that hard for you to pull out so that you don’t constantly have to try so hard to remove them when you want to use an outlet. 
• This may sound silly but get on your hands and knees and travel around your home looking for things that might be dangerous.  You may find that you see much more clearly by getting down to a child’s level when it comes to childproofing your home.  Fix any issues you deem to be hazardous to kids while you are in this position.
• Put glass items and valuables up high out of reach of children.  This will not only help keep children safe in your home but it will also keep your valuables from getting broken.
• If you have anything sharp such as a fireplace with edges made from stone or brick you may want to buy covers for those edges to use when you will have small children around.  If you have little ones who live in your home you may want to keep these areas covered at all times. 
• If you have a swimming pool, always make sure that someone is outside watching the children if they want to play in the back yard.  Even if you have the pool surrounded by a fence you need to make sure the kids are looked after if they are anywhere near a pool. 

Hopefully some of these ideas for childproofing your home will be helpful to you and will prevent an accident from happening.  Once you feel as if your home is childproof then you will no longer have to worry about little ones getting hurt and you can enjoy your new or existing home. 

Courtesy of Montgomery AL Real Estate Experts Sandra Nickel Hat Team.

Now is a perfect time to de-clutter your home if you are planning on putting it on the market this spring. Getting rid of unwanted or unnecessary items will be a great help to you when you begin having your house shown.  Here are 4 savvy hacks to de-cluttering your home.   

1. A great way to get rid of things in your home  that you no longer use or want is to invite your friends and family over to look through it.  Your sister for instance may have had her eye on your collection of vases for a very long time and by letting her have them you may be creating a stronger bond with her all the while cleaning your house of items you no longer need. 
2. Having a yard sale to de-clutter your home is always a good idea especially when it starts getting warm outside.  Folks love to attend yard sales and many folks attend them on a regular basis.  One suggestion, if you decide to de-clutter via yard sale,do not put prices on your items.  Putting prices on your yard sale items is basically a waste of time.  You can easily talk about a reasonable price with a customer once they have shown interest in an item.  If you have the items priced many times the potential customer will not even let you know they are interested in purchasing the item because they think you have it priced too high.
3. Donating your household items to charity is a great way to not only get a tax benefit but to help people in need.  If you want to go a step further in this process you can ask if you can hand out items for free to those who come in for help.  You may be surprised at just how good it feels to help those less fortunate than yourself. 
4. If you have some time on your hands and you don’t have to worry about getting your house on the market quickly, you can always sell your items on EBay.  You may get more money this way but it can take a bit longer than the other ideas. 

Hopefully this list of savvy tips for getting rid of your unwanted household items will help you on your way to a more streamlined home.  Again, whether you are planning to stay in your home for a few more years or you are planning to put it on the market, cleaning things out is always a great feeling!

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.

Did you give the gift of real estate this holiday? If so, you need to be sure to abide by the tax rules that are associated with giving such a large gift. 

• It may be a good idea to give the cash for your loved one to purchase a house instead of purchasing a house for them.  You may think you know your relative or friend better than anyone but you may not know all their secret hopes and dreams because they may not tell you every little detail about themselves.  If you give cash to your loved one to buy a home you need to keep the amount at $14,000 or less.  The gift tax limit for a yearly gift called the annual exclusion allows you to give $14,000 cash or less to as many folks as you would like each year tax free.
• Another great way to give the gift of real estate without disobeying any tax rules is to give the gift of a cash down payment. You will want to make sure that the loan officer knows that this is a gift and not a loan.  You will need to fill out the appropriate paperwork so that the fact that the down payment monies is a gift will be well clarified, otherwise you risk your friend or loved one losing out on getting their mortgage. 
• If you would like to sell your children’s childhood home to them you may do so but be sure that you are careful how you do it.  Seller financing your home to your children is a great way to avoid being taxed to the max.  In this type of sale you basically will be given a small down payment and you will hold the note on the property.  This type of real estate gifting is great as long as you can trust your loved one to pay down the mortgage. 
• Selling your home to your loved one at a low ball price is another way to give the gift of real estate all the while abiding by tax rules.  Of course the IRS may think you are crazy but once they see you are selling to a family member they will understand. 

Remember if you do decide to give the gift of real estate to abide by the tax rules and regulations and you will be sure to have some excited recipients! 

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel!

The crisp air has arrived as winter is approaching quickly, which means we are all going to be looking for ways to keep warm.  There are ways to stay warm and cozy inside of your home that won’t cost you a mint this winter if you follow a few energy conserving tips such as the ones below. 

• Insulation can do wonders for your home this winter.  You may think that your home is already properly insulated but it may be that a few areas are not insulated as well as they should be.  Check for cracks in door frames, window panes and other areas where warm air may escape and cold air may be able to come inside.  You may want to add some more insulation to pipes that are already insulated if the current insulation has become worn out or is thin. 
• Clean your heat filters so that your system runs as efficiently as possible.  This will help to cut down on your heating bill. 
• You may not be aware that you can hire professionals to come to your home to check it for energy efficiency.  This is what is known as an energy audit.  The professionals check your home for energy loss and areas in which your energy efficiency can be improved.  Many times this service is free of charge. 
• Don’t wait for the middle of the winter to stock up on items such as ice, shovels, blowers and the like.  These items will go up in price during the winter months, so be sure to purchase them on the off season or as soon as they are available for purchase in your local store. 
• If you can stand to lower your thermostat a bit you stand to save a good deal on your electric bill.  Wrap up in blankets and or snuggle with your loved ones during the coldest part of the winter. This will not only save you some money but it may also help you and your family to grow closer together and have a time of bonding. 

Stay warm this winter and save on your electric bills at the same time by putting all or a few of these energy saving tips to good use.  There is no reason why you can’t stay warm all the while saving a bit of cash.  Who knows, you may end up with so much savings that you have extra money to spend this Christmas! 

Courtesy of Montgomery AL Realtors Sandra Nickel Hat Team!

Homeowners have a variety of reasons for refinancing their homes. Before you make a decision about refinancing your home, you might consider the following questions. Below is a summary of an article in RISMedia by Michele Lerner, a writer for Bankrate.com.

1. What are my financial goals? Are trying to lower your monthly payment? Check out an online mortgage calculator to estimate your new payment. Other homeowners are choosing to refinance for a shorter term to pay of their mortgage faster and save interest.

Before you make the decision to refinance, the professionals advise making sure you contribute to retirement savings and college savings, pay off high-interest debt, and save 6-12 months of expenses, because reducing your mortgage payment period will increase your monthly payment.

2. Do I have equity in my home?

You need at least 20% equity in your home to qualify for a new conventional loan without payment private mortgage insurance. The alternative might be applying for an FHA loan that requires much less equity.

3. Do I have good enough credit?

4. Credit scores are critical under the new federal lending guidelines. Below a score of 620, you will have trouble qualifying for a new loan at all. It takes a score of 720 or better to obtain the best interest rates.

5. How long do I plan to stay in this home?

Mortgage professionals general tell borrowers to expect to pay 3% to 6% of the loan amount for a refinance. If you divide that loan cost by the annual savings you expect by a reduced mortgage payment, you can find how many years it will take to break-even. Do you expect to stay in your home long enough to break even?

6. What are the terms of my current loans?

Make sure you know the terms of your current loan. Especially, make sure your existing mortgage does not have a prepayment penalty.

7. Do I have a second mortgage or a line credit?

If you do, there is added complexity to refinancing. You will have to either pay off the second loan or combine the two into one mortgage when you refinance.

Lenders have tightened up the approval process. Be sure to get professional advice from a lender about what levels of income, credit score, and equity you will need to refinance in your specific situation.

Courtesy of Montgomery AL Realtors Sandra Nickel Hat Team!

Many young people are debating whether they should renew their lease or sign a contract to purchase their first home. If you’re one of these people who’s on the fence about renting or buying, check out our FREE Fall 2015 Buyers Guide, Things to Consider When Buying a Home! You’ll learn why now is a good time to buy, what you need to know about the mortgage process, where home prices and interest rates are headed and so much more. No obligation, of course! Download your FREE Buyers Guide then contact us to get started in the purchase of your dream home.

Information courtesy of Montgomery AL Realtors Sandra Nickel Hat Team!

In Part 1 of ‘Top Kitchen Remodeling Trends’ we looked at five trends from a recently published survey by Houzz, the popular design and remodeling website. Here are more of the hottest kitchen design elements to consider for your kitchen…

• Stainless Steel: A majority of survey respondents, 65% favored stainless steel appliances. Only 12% favored white or color appliances.
   
• Islands: Islands are popular but not a must have. The main reason is limited floor space availability. A successful kitchen layout requires the ability to move around the kitchen between workstations. The ideal layout forms a triangle between sink, refrigerator, and stove. Counter prep areas occur in between the primary stations. If an island fits into that pattern and allows plenty of movement it will be a success. If the island is too big for the floor space and interferes with the movement of your workflow you will end up unhappy.

The National Kitchen & Bath Association also conducted a survey recently and highlighted three additional trends in kitchen design…

• Transitional style: This style is a blend of traditional and contemporary and has grown in popularity in recent years. It is a style that harkens back to tried and true traditional elements with modern convenience touches.
   
• White cabinets: A surprising 73% of respondents favored white and off-white color schemes for their kitchens. This seems to have been a response to most people wanting their kitchens to be light and bright and clean looking.
   
• Gray color schemes: Gray color schemes have been steadily gaining in popularity over the last three years, and are still trending that way.

If you’re thinking about remodeling your kitchen there are a lot things to think about. Your kitchen is an important workspace and gathering space in your home. Therefore, it should function well and reflect your lifestyle.

Mike Close, president of Spinnaker Development in Newport Beach, CA, offered good advice: “Always try to keep in mind you’re doing the work for yourself, but at some point, somebody else will be in the house. Don’t do something so radical…that in five years you’ll look at each other and say, ‘What were we thinking?’”

If you’re thinking about remodeling your kitchen, your decisions may be influenced by how long you intend to stay in your home. Keeping up with trends can be very interesting and fun. They also are, well, trendy. If you’re going to stay in your home less than five years, here are some hot trends to consider implementing.

The popular design and remodeling website, Houzz, recently published the results of a survey of 7,812 new homeowners who were remodeling their kitchens within three months of buying. Of that group, nearly half were remodeling their kitchens. Here are their hottest items to consider…

1. Chef’s stoves: 32 percent considered professional-grade ranges as their dream appliance. Options such as a flat griddle or a cooktop to accommodate a searing pan or wok topped the list.

2. Eco-friendly features: Nearly half said, “Using eco-friendly appliances and materials in their kitchens are important.” However, Houzz contributors also observed that changes in our habits, rather than just buying the right appliances are important. They cited the use of cloth rather than paper towels, replacing plastic containers with glass, and using non-toxic cleaners are very important.

3. Granite and quartz countertops: 94% of the survey respondents said they were changing their counter-tops. Granite topped the list, followed by quartz. Granite is hard and provides a clean look. Granite also requires sealing and taking care not to put certain items on the surface. Quartz is gaining popularity because it is also very hard and durable and looks clean. Quartz tops are resistant to scratches and stains and do not need to be sealed. Click here for more detail.

4. Tile backsplashes: Tile was the top choice for backsplash accents. Houzz editor, Sheila Schmitz, observed, “A lot of people are using the backsplash as sort of the jewelry of the kitchen. That’s where they’ll put that splash of color.” Some respondents actually found the choice of backsplash design to be the toughest decision they had to make.

5. Floors: Hardwood floors topped the list of the most popular materials, with tile making a strong second showing. Wood floors are easier on the feet than tile and have a warmer look to them. There is no need to worry about wood floors getting wet with the many finishes and sealers available on the market.

Watch for Top Kitchen Remodeling Trends – Part 2 coming soon.

Courtesy of Montgomery AL Realtors Sandra Nickel Hat Team!

If you have an adult child that has just graduated from college you may want to know how you can help them afford to purchase their very first home.  Hopefully your child already has a job lined up so that they can afford to pay for their new home once you have helped them to achieve the goal of home ownership, if not you may want to postpone this plan until they do. 

• Many kids just out of college have a huge student debt that has accumulated over the last four years but that doesn’t have to stop them from owning their own home.  Parents can help their children be able to purchase their own home and to come up with the down payment by gifting the down payment to them.   Make sure that you do not loan them the money because that can work against them in the long run, rather give them the down payment as a gift.  This type of gift is much better than any house warming gift you could ever give them and it’s the gift that will keep on giving.  You will need to write a “gift letter” so that the lender realizes that the money is in fact a gift and not a loan.
   
• If you simply cannot afford to gift the money for the down payment to your child then you can give them a loan but the lender will have guidelines that you must follow.  The lender will consider the loan a second mortgage on the house and you may also be prepared to have interest in the loan as well.  The interest rate will most likely be the current market rate. 
   
• You can apply for a mortgage jointly with your child if you want to help out in that way.  You will be considered a non-occupant co-borrower.  If however your child fails to pay the mortgage, guess who will be responsible for it?  Yes, you.  This type of help towards a home purchase should only be done as a last resort.
   
• You may want to choose to let your recent graduate move back home with you until he or she can afford to take on a home mortgage without having to have help from you.  By letting them move back in you are allowing them to be able to save money towards a home purchase and that in itself is a huge help in the right direction. 

Hopefully this gives you a few ideas on how to help your child afford to purchase a home of their own.

That statement reflects Trulia’s Rent vs. Buy Report. “Although the gap between renting and buying is narrowing across the U.S., homeownership is still 38% cheaper than renting.”

When evaluating buying a home vs. renting you need to understand the local math. Although the national average is 38% cheaper for buying vs. renting, the range across the country is from 5% cheaper to 66% cheaper.

The Trulia report concludes that there is nowhere in the US that buying a home is not cheaper than renting. However, the percentage of difference does vary widely. That is because there are variables that depend on local circumstances such as:

• Local home values
• Local rents
• Mortgage interest rates
• Rates of value appreciation

If you really want to understand the detailed numbers go to the full report.

You can also go to Trulia’s Rent vs. Buy Calculator that allows you to plug in your local variables.

Borrower’s credit score is another factor you need to take into account when evaluating your situation. Mortgage interest rates are perhaps the most important variable in the buy vs. rent calculation. One of the factors that affects interest rates the most is the borrower’s credit score. The lower your credit score the higher the interest rate you will pay.

The monthly payment on a $200,000 loan for 30 years increases by $60.27 for every 0.5% added to the interest rate. That means the decision about whether to borrower using a variable interest rate (such as an ARM) or a fixed interest rate over the life of the loan is very important.

The Trulia report also evaluates the “tipping point” for interest rates that will cause renting to be cheaper than buying. For the national average that leads to the 38% figure the mortgage interest rate would have to rise to over 10%. However, you should look at local factors involved for a home using the Rent vs. Buy Calculator.

You can follow this link for the current Forbes.com interest rate forecast. You can also find current mortgage interest rates at bankrate.com.

Current indicators are that both home prices and interest rates are going to rise steadily over the next five years. That is good news for potential buyers, and means now is a good time to buy. However, if you’re hoping to become a homeowner anytime soon use these tools to do some research.