Real Estate Information Archive

Blog

Displaying blog entries 201-210 of 279

On the fence about renting or buying??? Free info here!

Tuesday, October 20, 2015
by The Hat Team

buying a home

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!

Add Comment

Remodeling? Check Out These Kitchen Trends Part II

Friday, October 2, 2015
by The 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…

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?’”

Add Comment

Remodeling? Check Out These Kitchen Trends

Friday, September 25, 2015
by The Hat Team

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.

kitchen

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!

Add Comment

How to Help Your Child with Their First Home Purchase

Thursday, September 10, 2015
by The 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. 

home buyer

  • 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.

Add Comment

Buying Is 38% Cheaper Than Renting

Thursday, September 3, 2015
by The Hat Team

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.”

rent vs buy

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.

Add Comment

Checking for Water Leaks

Wednesday, September 2, 2015
by The Hat Team

An unexpected, larger-than-normal water bill could lead a person to think that they might have a leak. Before incurring the cost of a plumber, it is fairly easy to run your own test.

water meter-250.jpg

Locate your water meter. They’re usually in the front of the house, near the street. In some cases, you might need a meter key to open it; they can be purchased at Lowe’s, Home Depot or other hardware stores.

Step One - Write down the numbers on the meters to get a current reading. Don’t use any water for thirty minutes. If the meter shows water usage during the test period, proceed to step two.

Step Two - Shut off the valves to all of the toilets. If you have a pool with an automatic filler, it has a similar device. Repeat the test again for the same thirty minute period. If the numbers haven’t changed this time, it indicates that the toilets probably need servicing.

If the numbers have changed during step two, it is an indication there may be a leak and it will need to be tracked down. This could be the time to call a plumber or plumbing leak specialist. Your water department may have a consumer help line that can offer suggestions also.

Information courtesy of Montgomery AL Realtors Sandra Nickel Hat Team.

Add Comment

What Every Homebuyer Should Know About FHA Loans

Saturday, August 22, 2015
by The Hat Team

The Federal Housing Administration (FHA) is a government agency within the U.S. Department of Housing and Urban Development (HUD). FHA is not a lender. It provides an insurance fund that protects lenders against borrower loan defaults. Therefore, to obtain an FHA loan, a homebuyer must get their loan through an FHA-approved lender. The actual loan and mortgage for your home is actually with a commercial lender.

home buyerNot all FHA-approved lenders offer the same interest rates and costs, even for the same loan. Therefore, borrowers need to shop around with multiple lenders for the best total package for an FHA loan.

Here’s some good news…

  • Perfect credit is not a requirement of FHA. The FHA does not dictate a minimum credit score. However, lenders can overlay their own requirements on top of what FHA requires. FHA provides leeway in underwriting for the lender by insuring the loan, but the final decision about the loan is in the lenders hands.

    The lenders’ underwriting of a loan is targeted at ensuring that the homebuyer “has the willingness and capability to repay the loan, but we do have flexibility beyond pure credit score to look at the borrower’s financial situation,” according to Vicki Bott, HUD deputy assistant secretary.
     
  • The minimum down payment is 3.5% of the purchase price of the home. Borrowers can use their own savings for the down payment. But, they can also use other sources such as a gift from a family member.
  • Closing costs may also be covered. FHA allows home sellers, builders, and lenders to pay some of the borrower’s closing costs. However, lenders often charge a higher interest rate if they agree to pay closing costs.

Here are some cautions…

  • Homebuyers should get a Good Faith Estimate (GFE) of closing costs from the lender when shopping for their loan.
  • Mortgage Insurance is a must. Two premiums are required on all FHA loans: first, an upfront premium of 2.25%, charged when the homebuyer gets the loan (but may be financed in the loan); and second, an annual premium of 0.55% paid monthly with the mortgage payment.

Many homebuyers feel this all sounds expensive. However, the alternative is potentially not qualifying for a loan at all. The borrower must compare total costs of the purchase with the equity that potentially is possible in the long haul…along with careful shopping for the loan. Click here for more details.

Information courtesy of Montgomery AL Realtors Sandra Nickel Hat Team.

 

Add Comment

Get Ready for College

Thursday, August 20, 2015
by The Hat Team

One of the important things as a parent is to plan for their children’s education. Let’s look at two different approaches: a savings account or investing in rental real estate.

for rentAssuming your child is five years old and you start putting $250 a month in a savings account earning 2%, in 13 years you’d have $44,497.41 to pay for their college. Anticipating that isn’t going to be enough, you’d have to save $500 a month to end up with $88,995.

Another way would be to make a lump sum contribution of $20,000 today in a mutual fund earning 5% that would be worth $37,713 in 13 years. You’d have to make a $47,196 initial contribution to end up with the same $88,995.

An alternative to savings would be to invest in a $100,000 home in a good area. Assuming a three percent appreciation and rent of $1,000 a month, an initial investment of $23,500 could have a future wealth position of $83,838 at the end of 13 years.

Obviously, this is just an example of why rental homes are the IDEAL investment providing Income, Depreciation, Equity build-up, Appreciation and Leverage. While rentals certainly have more risk and management than a savings account, they do provide an opportunity for a higher rate of return.

If you’re concerned about paying for college tuition in the future, it is certainly worth investigating the possibility of investing in rental homes today.

Add Comment

Do I Really Need a Home Warranty?

Wednesday, August 12, 2015
by The Hat Team

This blog is not about selling home warranties! It’s about providing information, some of which you may not have considered before.

home warranty

Both buyers and sellers benefit from home warranties! That is especially true when the sale/purchase involves an older home. RISMedia.com recently interviewed Mark Barry, with American Home Shield. He said, “New homeowners want to be confident that they made a smart purchase and to know that they’re prepared for the unexpected” after they purchase.

But, what about sellers? Consider what a home warranty provides for both sides of a transaction, starting with defining “home warranty.” A home warranty policy is a little like an insurance policy, but different. Insurance typically pays out a predetermined amount of money if something goes wrong. Examples include an auto accident, a fire covered by homeowners insurance, and life insurance.

A home warranty covers breakdowns of home systems, such as heating and air conditioning components, and major appliances. It does not just pay out for a loss. It either repairs the component that failed or replaces it.

Home warranty companies have contracts with local repair companies. When something goes wrong with your home, a local contractor is sent to repair it. If it can’t be repaired, it will be replaced. The warranty policy defines deductibles and restrictions…so read the fine print!

Benefits to sellers are often overlooked. A seller can buy a home warranty policy in advance of putting their home on the market. Some benefits to doing that are…

  • Protection against the cost of breakdowns during the selling process
  • Prevention of a buyer opening downward price negotiations while under contract
  • The marketability of the property is enhanced with the added protection
  • The policy can be transferred to a buyer, making the property more attractive

Homebuyers, especially first time buyers, are looking for assurances. A home warranty gives them confidence that they’re not buying unforeseen problems due to their inexperience.

  • The home warranty can be transferred to the new owner
  • The buyer is protected against breakdowns for up to a year
  • The annual policy is renewable at the new owner’s option

In short, there is potential peace of mind for both buyers and sellers in your home sale/purchase. Do some research and make sure both parties have clear expectations. Make sure you understand what the policy does, and does not protect. And then rest easy that you are protected.

Add Comment

Looking To Add Value To Your Home? Consider an Outdoor Space

Tuesday, July 21, 2015
by The Hat Team

There are many reasons to consider adding an outdoor living area to your home! The benefits are many and personal. But, one added benefit is the value it can add.

outdoor spaceA recent article in RISMedia, a real estate information leader, highlighted 5 reasons to invest in outdoor spaces. According to IBISWorld, a market research firm, “investing in outdoor living provides a good return on investment for most people, making it an ideal home improvement project.”

Here are some benefits to consider:

  1. Personal enjoyment. Why spend money on home improvements unless they provide personal enjoyment for your family? This can range from providing a space to relax and unwind, to providing a place to simply enjoy each other and have fun, to providing fun for the kids.
     
  2. Save money by having an enjoyable place for your recreation right in your own backyard. Having outdoor spaces at your home means that it is custom made to your desires and you don’t have to get in your car to go somewhere else. The money saved in gas or fees to join a club can be better spent on your own space.
     
  3. Entertaining opportunities abound with your own private outdoor space. Imagine your indoor entertaining space flowing to the outdoors with a place for a fireplace or outdoor barbecue kitchen. It creates more opportunities for adults to have a space to talk and for the kids to have their own recreation opportunities.
     
  4. Benefits of nature. Lot’s of research demonstrates the benefits of spending time outdoors, including stress reduction and improved mental clarity and concentration. Stepping out of your indoor environment into a relationship with nature in any form transforms our ability to relax.
     
  5. Resale value of your home will be enhanced almost immeasurably by creating outdoor spaces. You shouldn’t necessarily count on recuperating 100% of the cost, but HGTV claims that homeowners recoup 65%-90% of their investment just by adding a deck! Meantime you and your family enjoy the added benefits of the outdoor living, and when you decide to sell there is an intangible added attraction for potential buyers.

Bob Dallas, CEO of UltraOutdoors.com, explains “not only is it good for the value of your home, but it’s a solid investment for…giving your family a relaxing area where they can re-charge their batteries.”

Research the many options including outdoor fireplaces, kitchens, water features, decks, sitting areas, and landscaping. The possibilities literally range from the extravagant to the very modest. Consider seeking the help of a design professional. The key is finding just the right combination of possibilities for the enjoyment of your family.

Information courtesy of Montgomery Realtors Sandra Nickel Hat Team.

Add Comment

Displaying blog entries 201-210 of 279

Syndication

Categories

Archives

   cdpe    crsHat Lady on Zillow