Real Estate Information Archive

You are ready to purchase your first house.  Your credit score is great.  You know you can afford a monthly mortgage payment based on your budget.  You are sure you will be approved for a mortgage loan.  But that down payment!  How the heck are you supposed to come up with 20%?  Don’t despair, because the truth is, you don’t need a 20% down payment to purchase a house!

Saving for a down payment on a house can seem overwhelming for many people.  Keep in mind that it can come from various sources.  Funds can come from bank accounts, stocks or mutual funds, an inheritance, or a gift from a family member.  Some people will even use assets from their retirement portfolio.  Requirements regarding where the money comes from for your down payment depend on the loan type.  Also, purchasing a primary residence usually requires a lower down payment than if you are purchasing a second home or buying an investment property. The Different Types of Mortgage Loans in 2018, Explained

The myth about down payments is that 20% is the norm. While that may have been true in the past, it’s not anymore.  The fact is that per the National Association of Realtors, a majority of homebuyers purchased their home with a down payment of 6 percent or less. Unfortunately, a lot of people don’t even consider buying a home because they still think they need 20% down.  The NAR'S Aspiring Home Buyers Profile 2018 found that 36% of non-owners believed that saving for a down payment would be very difficult. Chances are they still believe in the 20% down myth and it is just not the case anymore!

So, now that you know you don’t have to have 20%, perhaps buying a home seems more within reach.  But there are still some things you should be aware of before taking that first step toward homeownership.  Various factors are at play in determining if you should take on a mortgage with lower down payment.  For example, the less you put down, the larger your mortgage payment will be each month.  That is because you will have a larger loan amount, possibly a higher mortgage interest rate, and the added cost of Mortgage Insurance.  So, while you don’t have to come up with more cash, your monthly costs go up.

Once you have educated yourself about the requirements, you can make informed decisions about your budget and how much you can afford.  Don’t let the 20% down payment myth stop you from pursuing your dream of home ownership! 

If you are in the market to sell or buy 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!

First impressions are crucial to successfully selling your home.  The first thing potential buyers notice when they drive past your house is your lawn and landscaping.  If you’re putting your house on the market this Fall, here are some tips for sprucing up your yard to make a fantastic first impression!

• Rake, rake, rake.  Fall foliage is beautiful and can serve to make your property more attractive to buyers, but a lawn covered in leaves looks sloppy.  Keep up with raking so people notice the beautiful leaves ON the trees, not the dying leaves on the ground.
• Plant Fall flowers.  A fall garden filled with vibrant color is a great way to add beauty to your yard. Planning a Fall Garden
• Create a lush lawn by aerating so that water and nutrients can reach the roots. Importance of Fall Lawn Fertilization and Aeration
• When you do your last mow of the season, make sure to trim grass short.  Shorter grass helps prevent disease.  In addition, fall leaves will blow across your lawn if they have nothing to cling to.
• Trim ugly limbs.  There is nothing pretty about cracked, diseased or dead limbs. 
• Get rid of annuals that have lost their luster.  Trim tired perennial foliage down to the ground.  This will prepare them for their next season and will tidy up your flower beds for a neater look.
• Lay fresh mulch for cooler weather curb appeal.  Choose mulch that is aesthetically pleasing while also providing the benefits that keep your flower beds looking their best.

With summer winding down and fall just around the corner, it’s a good time to start planning for creating beautiful curb appeal that will have potential buyers lining up to see your home!

If you are in the market to sell or buy 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: pinterest.com

Closing on a home is the final step to the home selling/buying process.  It can feel stressful and overwhelming, especially to first-timers.  Here are some things that most often go wrong with home closings, and how to avoid them!

     WALK THROUGH - A walk through of the home is done before closing to confirm that everything is as it was when you signed the purchase agreement.  It’s also the time to make sure any repairs that you requested were completed.  If you get to your walk through and discover that the owner took the washer and dryer they had agreed to leave or there were agreed upon repairs not done, your closing will definitely be put on hold.  Money will be placed in escrow to cover the costs and deadlines will be extended.

     FEES - You will want to look at a copy of your HUD-1 Settlement Statement before going to your closing so that you can look over all the fees and ask questions should you have any. Fees on the statement will include those from your lender, closing attorney, city, insurance, surveys, and transaction fees among other things.  You don’t want to get all the way to your closing and find out there are fees you weren’t aware of which may delay proceedings.

     TITLE SEARCH - Make sure the title search is completed with plenty of time to deal with any issues that may arise.  A professional title examiner should be utilized by your closing attorney to be sure there are no defects on the title that would prevent the property from being sold.   If the title search is done at the last minute and there are problems, it might take a long time to fix thus holding up the closing.

     WIRE TRANSFER - The wire transfer of funds needs to arrive within a specific window of time for closing.  An issue with the wire can hold up closing.  It’s vital to check with your lender and closing attorney to be sure that all parties have the correct wire information and timelines.

     CLOSING PACKAGE - A common problem that delays closings is the Closing Package not being ready.  At the end of the loan process, there are a lot of loose ends that must be tied up and they can sometimes cause delays. Timing is everything.  You may be scheduled to close at 11:00 AM, but if your package isn’t ready until 2:00 PM and your lender and attorney has other closings scheduled, your closing may be postponed to the next day.

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

Photo Credit: realtor.com

Historic homes are beautiful, and to keep them that way, it’s important to take steps to maintain their old-world charm.  Here are steps you can take to keep your old home properly protected and preserved:

KEEP UP WITH REGULAR MAINTENANCE - Routine maintenance like cleaning and painting (especially the exterior) are vital to minimizing issues that might mean costly repairs. It’s a good idea to develop a maintenance schedule and follow it as best you can.

LIMIT CHANGES - When repairs must be made, try to keep original details intact. For example, if some trim needs to replaced due to rot or infestation, only replace the parts that are damaged. This will save wood and money and help preserve the historic fabric of the house.  If you do have to replace something completely, take photos prior to removing anything so that it can be duplicated to retain the character of the home.

KEEP HISTORIC WINDOWS - If you have early twentieth century (or earlier) windows, you are going to want to keep them. They were made to be repaired, not replaced.  It is possible to make old windows more energy efficient.  Save Big Bucks by Restoring Your Old Windows & Making Them Energy Efficient

TAKE SPECIAL CARE WITH MASONRY -  While brick and masonry are long-lasting components, they will need maintenance and eventually, repairs.  Educate yourself about proper ways to care for and repair them.  Restoration Guide: Masonry and Brick Exteriors

EMBRACE THE QUIRKS - You don’t have to “fix” everything. You can repair and stabilize structural damage while keeping elements that show how your home has aged over the generations.

KEEP HISTORIC INTERIOR FEATURES - While you will surely want to update some aspects of your home, try to hang on to the charming features that make it unique. Things like transoms, paneled doors, moldings and such are features that make your home special.

KEEP PLASTER WALLS - Plaster is a remarkable material that is superior to modern day drywall.  In recent years, preservation contractors have discovered the Benefits of Preserving Plaster Walls. Damaged plaster walls can be repaired, and if necessary, only replace the damaged portions.

CHERISH THOSE OLD HARDWOOD FLOORS - Retaining the old floors in a historic house requires special care.  Be careful not to over-sand them, destroying the antique character in the process. Old floors were hand-planed, and hand-sanding is the best way to maintain their character.  Taking Care of Your Wood Floors

The most important step you can take to maintain your historic home is to educate yourself. Lots of information can be found online and there are Old House Specialists that can help you! Also be sure to check out these regulations for historic homes in Montgomery AL: Historic Designation and the Architectural Review Process

If you are interested in purchasing a historic home in Montgomery, AL let Sandra Nickel and her Hat Team of Professionals assist you with your search.  Call them today at 334-834-1500!

While summer is considered by many to be the hottest time for selling a house (both literally and figuratively), sometimes circumstances require you to sell during a different time of the year.  This fall might be exactly the right time to sell.  Homes are still in demand and there is a good chance you will find a buyer before the end of the year.   Here are some perks to selling in the fall:

- Buyers are seriously looking in the Fall. They want to get settled into a new house before the holiday season begins.  The pressure is on for them to find their new home quickly and this puts you (the seller) in the driver’s seat when it comes to negotiations.

- There is less competition in the fall. Many sellers need to close and move before school starts, so fewer houses are for sale.  With less to choose from, buyers can’t afford to be quite as picky.

- You will be dealing with different types of buyers.  Families often move in the summer to accommodate school schedules. Empty Nesters and Millennial Home Buyers are more likely to be looking in the fall. In addition, employers who need to relocate their workers often wait for fall to avoid the hot market during spring and summer.  A speedy closing is the goal of most of these buyers, which means you are more likely to get the best price possible for your house.

- Fall is pretty.  The weather is cooler; the leaves are changing colors and fall décor can make homes look and feel warm and cozy.  This is a great time of year to dress up your house to entice buyers.

So, if you have been thinking about putting your house on the market, don’t wait until spring.

Contact Sandra Nickel and her Hat Team of Professional Realtors at 334-834-1500 and get your house listed and sold this Fall!

With kids heading back to school, it can be challenging to transition from a summer schedule to a more demanding school year schedule.  Establishing a morning routine will help keep everyone organized.  Here are some tips for creating an effective routine for your family:

     Set a time for waking up on school mornings and stick to it.  Consistency is key.  By waking up at the same time every day you will develop a pattern of wakefulness and sleepiness each day.  It’s equally important to go to bed the same time every night, especially for young children who need 10 to 11 hours of sleep. Once you have determined what time your kids need to get up to get ready for school, you can then easily determine what time they need to go to bed. Child Sleep - Recommended Hours for Every Age

     Prepare for each day the evening before.  Make sure that school bags are packed up and placed in a designated spot to be picked up the next morning.  Have your children choose their outfits the night before as well. Plan for lunches if your children will be bringing them from home. Have them ready to grab and go. Get the day off to a good start by having everything organized and ready to go.

     Create a “to do” list for your children that includes everything they need to do before leaving for school. Brushing teeth, getting dressed, putting on shoes, eating breakfast etc.  You can find Free Printable Charts or you can have your children make their own.  Place it where you know they will see it first thing every day.

     Make sure you leave enough time for a healthy breakfast. Any breakfast is better than none, but try to avoid having sugary sweets for breakfast every day.  Your kids need fuel for their bodies and minds to be successful at school.  Ten Best Breakfasts to Feed Your Kids

     Leave the house with plenty of time to get to the bus stop (or school, if you are driving).  Arriving to school calmly and with time to spare sets a positive tone for the day.

Setting a consistent routine will make mornings more pleasant and the school day more successful!

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

Photo Credit: thebabysleepsite.com

With more and more Baby Boomers reaching retirement age, they will be asking themselves if they should sell their homes. This is a time in their lives to finally enjoy the fruits of their labor and the last thing many want is to have to take care of a large home or be tied down to a big mortgage. Today’s housing market has low inventory of starter and trade-up properties, meaning there are a lot of buyers out there competing for homes.  So, the question retirees need to ask themselves is, “should we sell now?”.  Consider these questions to find your answer:

1. Will you be able to afford your home once you have retired?  It’s important to think long term about the monthly costs of staying in your home.  Even if you have paid off your mortgage, you will still be responsible for Property Taxes, insurance, HOA fees, and utilities.  Then there are home repair costs.  If you are living on a limited monthly income, an unexpected, costly home repair can be devastating. 
2. How much Equity  do you have in your current home?  If you have a lot of equity built up in your current home, you can use that to purchase a retirement home and have little or no mortgage, freeing up your monthly income for other things. 
3. Can you keep up with home maintenance? Maybe you are someone who enjoys yard work and other home maintenance tasks, but depending on your age and health, these chores can become more challenging with time.  A condo with an HOA fee might be the way to go so that you can enjoy your golden years with the peace of mind in knowing that you don’t have to do maintenance work yourself.
4. Do you feel secure in your home?  Criminals prey on the elderly.  It’s a sad, but true fact.  Elderly homeowners are often targets for scams and break-ins.  Home security systems are helpful, but living somewhere that has 24-hour security, such as a manned gate-house and resident only access can provide you the security you need to be able to relax and enjoy retirement.
5. Is your current home set up property for limited mobility?  As people age, getting around can get more challenging.  People are living longer, more active lives these days, but that doesn’t mean that you will always want to climb the stairs to your bedroom. And what if you must use a wheel chair at some point?  Are your doorways and hallways wide enough? Will you have easy access to a bathroom and shower?  Homes in retirement communities are built with these things in mind and often offer the best of both worlds…activities to keep you busy and entertained and accommodations for any physical needs you might have in the future.
6. Is your current home in a convenient location?  There are many things to consider about location.  Are you close to a hospital and drug store?  Can you easily get to shopping and entertainment venues?  Are your grandchildren close by?  Maybe you are living in a fantastic school district, which was great when your kids were growing up, but doesn’t really serve you now.  If that’s the case, take advantage of the resale value that will give you and sell so that you can find a home that is more conveniently located for you.

If you are considering selling so that you can find your perfect forever home, contact Sandra Nickel, a Seniors Real Estate Specialist (SRES), and her Hat Team of professional Realtors and let them help you get your house on the market and sold for the best possible price. Call them today at 334-834-1500!

Photo Credit: forbes.com

When preparing to put your home on the market, there are a lot of things you need to think about: deciding if you should make home repairs and improvements, staging your home to impress potential buyers, keeping your lawn and house in prime condition for viewings and prepping to move.  But one of the most important decisions you must make is how much you should ask for your house. Determining the asking price for your home cannot be taken lightly. There needs to be some psychology and strategy used to decide the price that will sell your home in a timely manner and for the most profit.  You and your Realtor should identify and agree upon the approximate value of your property. You can use Comparable Sales of similar properties sold in your neighborhood to help you make this decision.

Next, you need to understand the price range for your list price.  Depending on market conditions, competing properties, time of year or inventory, the price range can fluctuate.  For example, a house with the asking price of $500 K can have a price range of $480 K to $520 K.  Once you have determined your home’s value and have a price range in mind, it’s time to conclude what your asking price will be.  This is where pricing strategies come into play.

- Appeal to multiple buyers - It may be tempting to ask for the highest price you think you can possibly get for your home.  But if you price your property on the lower end of the value range, you will likely appeal to more than one buyer and you might even have a bidding war amongst buyers who want your home.  Chances are you will get more than your asking price if this happens.

- Utilize psychology when choosing your asking price - Be careful of too many zeros.  For example, it is easier for a buyer to process $250 thousand than it is $250,000 - and $250,000.00 is even worse on the eyes. Buyers feel like they are being asked to pay more when there are more zeroes included in the price. It doesn’t change the actual price, but the perception of the price changes.

- Make sure it’s visible in real estate searches - If buyers are looking for three-bedroom homes under $400 K and you have your property priced at $405 K, an automated buyer search for properties under $400 K will exclude your home, meaning you will miss out on a lot of potential buyers. Experienced Realtors  will set up search parameters for buyers that include properties listed a little bit more above their price ceiling.  Keeping in mind that home prices are flexible, buyers could find the perfect match on a home above their limit, but with the possibility that it is in within a reasonable range of price or that it will be reduced.

- Have a price contingency plan before listing your home - You may have very high expectations regarding the worth and appeal of your home. If you insist on asking top dollar for it, you may get lucky (depending on the current market) and get it, or you may not get any full price offers at all. In that case, it’s important to have a contingency plan lined up before you list your home. That way, if you must lower your asking price, you will already be prepared for it and it won’t catch you off guard.

- Be flexible -  Setting an initial asking price is just the beginning of your home selling process.  A lot of different factors may come into play when selling your house, and you won’t be able to anticipate all of them.  Being flexible will allow you to react quickly to changing Market Conditions or new information and you will be more likely to get the best price for your home.

If you are planning to sell your house, contact Sandra Nickel and her Hat Team of professional Realtors and let them assist you in pricing it right for the current market.  Call them today at 334-834-1500.