Real Estate Information Archive

Many Montgomery renters are finding that they get more ‘bang for their’ buck if they buy a home rather than rent one. With affordable prices, low interest rates and tax incentives, Montgomery home ownership makes more sense than ever.

6 Reasons to Buy Rather Than Rent Montgomery Home

1. Buying doesn’t always cost more.
The Associated Press reports the gap between buying and renting has decreased $550 in the last three years.

2. Affordability is at an all-time high.
Nationwide, prices have declined by nearly 20-40%.

3. Tax benefits for home ownership saves money.
The biggest tax break is the mortgage interest deduction. Most of your mortgage payment goes to interest which is tax deductible. Property taxes and mortgage insurance are also tax deductible.

4. Many loans require no down payment.
Veterans Administration (VA) loans and many first-time home owner loans don’t require a down payment.

5. Mortgage rates are at all-time lows.
Mortgage interest rates are the lowest we have seen in 30 years.

6. You own it.

There is nothing like pride of ownership…and you can do anything you want to do. You can paint it any color you want, make improvements, and landscape to your own taste..

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Interested in conserving the environment? Intrigued with the idea of providing a haven for neighborhood wildlife AND reducing the amount of work, water, and chemicals needed to keep your landscaping alive, well, and attractive? Read on…

Winter is the perfect time to plan a backyard wildlife habitat for your Montgomery home and design a garden that provides essential kinds of wildlife, such as birds, butterflies, amphibians, and small mammals. Because natural environments are quickly disappearing due to rapid development, greener gardening techniques which are mindful of the ecosystems and needs of native creatures have become essential.

There are many online sites which provide detailed instructions for turning your property into a mini-sanctuary for wildlife, but the initial steps are relatively simple and include providing food, water, cover, and space.

Provide Food for Wildlife

Everyone needs to eat! Planting native herbs, grasses, shrubs, and trees is the easiest way to provide the foliage, nectar, pollen, berries, seeds and nuts that many species of wildlife require to survive and thrive. You can also incorporate supplemental feeders and food sources.

Supply Water for Wildlife

Wildlife need clean water sources for many purposes, including drinking, bathing and reproduction. Water sources may include natural features such as ponds, lakes, rivers, and wetlands; or human-made features such as bird baths (change water 2 to 3 times per week), puddling areas for butterflies, installed ponds, or rain gardens.

Create Cover for Wildlife

Wildlife require places to hide in order to feel safe from people, predators, and inclement weather. Use things like native flowers, leaves, shrubs, thickets, brush piles or even dead trees. Remember to utilize both the horizontal and vertical spaces in your yard.

Give Wildlife a Place to Raise Their Young

Wildlife need a sheltered place to raise their offspring. Many places for cover can double as locations where wildlife can raise young, from wildflower meadows and bushes where many butterflies and moths lay their eggs to caves where bats roost and form colonies.

Green gardening for your Virginia Beach home targets a reduction in water and chemical use, a decrease in the size of the area covered with turf grass, and generous use of mulch. How you maintain your garden or landscape (either formal or casual) can have important positive or negative effects on the health of the soil, air, water and vegetation that we all use! Here are some sustainable gardening techniques that you will help you conserve and protect our natural resources.

Mulching

Mulch helps keep water in the soil and available to the plant, rather than evaporating into the air. This can help reduce water consumption. As mulch breaks down, it provides nutrients to the soil, which can help reduce or eliminate the need for additional fertilizers. Be sure to use mulches that are from sustainable forestry practices (not Cypress tree mulch) and are free from pests and diseases. Your cooperative extension office can help you find sources of mulch in your local community.

Reducing Lawn Areas

Grass lawns often require chemicals and frequent maintenance. Gas-powered lawnmowers produce high amounts of greenhouse gases, which contribute to the air pollution that causes global warming. Since lawns are often made of only a few types of plants that most animals do not consume, they do not provide a lot of value for wildlife. Replacing grass lawns with native wildflowers, bushes, and trees provides the food, shelter, and cover that help to maintain healthy, natural ecosystems and reduces your time and labor working on the lawn!

Xeriscaping

Xeriscaping is an approach to landscaping that minimizes outdoor water use while maintaining soil integrity through the use of native, drought-tolerant plants. This is a common practice in drier areas, where water supplies and water quality are in very short supply.

Removing Invasives and Restoring Native Plant Communities

Native plants are better for the environment than exotic plants, generally requiring less fertilizer and other additives, less water, and less effort in pest control. They are especially important to native wildlife, such as pollinators, that may have coevolved with a particular species. Pollinators often rely on a certain type of flower as a source of food, while the flower depends on the pollinator to transport its pollen to other flowers for reproduction. When non-native or exotic plants are used, they often upset the delicate balance of a local ecosystem and sometimes even out-compete native species (hence the term invasive) to the point of extinction. Wildlife benefit more when native plant communities remain intact or are restored to their natural habitats, thus providing the best source of food for wildlife.

How to get started? Inventory what is presently in the backyard of your Montgomery home and consider what can stay, what should go, and what is needed. Locate a list of plants and trees that are native to your area. Contact your local nurseries or agriculture extension office or search for assistance on line. Two informative sites are National Wildlife Federation and Wildlife Habitat. Also, give yourself a pat on the back for helping to restore natural habitats--and look forward to spring!

HAFA or Home Affordable Foreclosure Alternatives, is a program initiated by President Obama on November 30, 2009. HAFA helps families in distress who are having difficulty selling their homes. HAFA along with HAMP, the Home Affordable Modification Program, to revitalize the real estate market.

HAFA provides incentives to families to take advantage of selling their Montgomery home by means of a short sale (the home is sold for less than the value of the loan), or a deed-in-lieu of foreclosure (the home owner voluntarily gives the deed to the lender.

HAFA helps families quickly sell their Montgomery homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. HAFA also allows investors and servicers to receive financial assistance for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules. HAFA officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012.

Here you can watch ‘An Animated HAFA Story’, an informative video explaining HAFA…

I am a Certified Distressed Property Expert (CDPE), trained in helping families in distress avoid foreclosure. Are you or someone you know behind on mortgage payments? You do have options! A short sale may be what is needed to save your, your family and your credit. Please contact me anytime for a private consultation.

Something to consider when selling your home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your Montgomery home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains.

Calculating Capital Gains

(+) PURCHASE PRICE - Price paid for property

(+) COST OF PURCHASE - Transfer fees, attorney fees, inspections

(+) COST OF SALE - Repairs, commissions, attorney fees, inspections

(+) COST OF IMPROVEMENT - Room additions, deck, for example, though not replacing existing

(=) ADJUSTED COST BASIS OF YOUR HOME

(-) AMOUNT YOU SELL YOUR HOME

(=) CAPITAL GAIN

A Special Real Estate Exemption for Capital Gains

Even though the above calculation may indicate you owe Capital Gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Montgomery home is exempt from taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.

• You have not sold or exchanged another home during the two years preceding the sale.

NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency.

Learn more about selling your Montgomery home by visiting HatTeam.com.

What's your Montgomery home worth?

Always consult a tax attorney regarding current tax laws.

The most important piece of a person’s financial life is their credit score. Whether buying a new Montgomery home, applying for a job, refinancing your Montgomery home, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Avoid these credit score myths when preparing for the purchase of your next Montgomery home.

Myth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Myth: Age, sex, and income are factors that affect your score.
None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.   

Myth: A credit score can be destroyed by shopping for a loan.
When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.

Myth: Your score can be hurt by credit card offers.
When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.

Myth: Credit scores of married couples are shared.
A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.

Myth: Closing unused accounts improves credit scores.
Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.

Myth: Paying off bills is a quick way to boost credit.
Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.

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In today’s rapidly changing economy, many Montgomery home owners wonder or worry about selling their home for the best price, and terms in the shortest period of time. 

Here are 9 helpful hints if you are considering selling your Montgomery home:

• Be realistic, and price your home right by using market comparisons.
• Know your true bottom line for both price and time.
• As the market shifts, be prepared to evaluate your price.
• Advertise your property with yard signs, local MLS and newspapers.
• Get rid of the clutter! It makes your house appear smaller.
• Clean your walls, floors, baseboards, stove and refrigerator. Buyers will know your house is well cared for.
• Clean up outdoors! Remove tools, toys and be sure lawn and shrubs are neatly trimmed.
• Have the carpets cleaned to eliminate odors, smoke, and pet smells.
• Make minor repairs such as leaky faucets, sticky doors, etc.
• Be sure to ask for a Market Analysis before listing your property.

Learn more about selling your Montgomery home by visiting HatTeam.com. 

What’s your Montgomery home worth? 

April 30^th seems like a long way off, but for prospective Montgomery home buyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know:

Tax Credit for First-Time Home buyers
First-time home buyers may be eligible for the tax credit. The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What Are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the time lines available.

What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time home buyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a Montgomery home with a maximum sales price of $800,000.

It's also important to note another upcoming deadline as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program, which the Fed once again emphasized in its January 27, 2010 Rate and Policy Statement will end on March 31, 2010. As the Fed's program winds down and ends, rates could rise over time since MBS will have less support from the Fed.

If you have any questions regarding the tax credit, pick up the phone and call me. I'm here to help you take advantage of one of the greatest opportunities Montgomery home buyers may ever have.

We are proud to announce Sandra Nickel Hat Team REALTORS, Montgomery real estate specialists, have developed a marketing strategy and website that is focused on assisting distressed homeowners find information and investigate options to avoid the foreclosure process.

A short sale is a real estate transaction option that banks will consider instead of foreclosure with specific guidelines. As a Certified Distressed Property Expert (CDPE) we are determined to provide essential knowledge to homeowners in Montgomery facing this unfortunate circumstance. 

Visitors to AvoidForeclosureMontgomeryAL.com will find information regarding the process of foreclosure, what effects foreclosure has on a homeowner, and ways to prevent the foreclosure process from continuing. The website features easy-to-understand informational tools such as a list of frequently asked questions, a glossary of terms and free reports as well as resources that allow the homeowner to get their questions addressed in a confidential manner. In addition, the website offers the homeowner information regarding short sales, often a viable solution to foreclosure that can save a distressed homeowner from the damaging effects foreclosure has on their credit. 

It is important in today’s economic conditions for homeowners to know that they have options other than the foreclosure route. Statistics show that 50% of homeowners facing this stressful situation often ignore the issue and that doesn’t have to be. There are options such as a short sale, especially if the homeowner works with an experienced REALTOR® to provide them assistance in showing the lender the hardship situation and other real estate documentation.” 

Our new website provides visitors with a description of how the short sale process works, how it compares to a foreclosure, and how a homeowner may be able to qualify for a short sale. 

For more information about foreclosures and short sales in Montgomery, please feel free to visit the website at AvoidForeclosureMontgomeryAL.com, or to contact us directly at 334-834-1500 and by emailing [email protected].

Low listing prices, reasonable interest rates, and an abundant variety of homes to choose from are among a few of the reasons now is the perfect time for buyers to make a move in today’s real estate market. Current market trends and other factors have made conditions even more favorable for first-time homebuyers. Though becoming a homeowner comes with huge responsibilities and financial commitments, first-time home buyers should take advantage of the market over flowing with opportunities. The following tips will help ease the mind when considering the smart purchase of your first Montgomery home. 

1. Become familiar with the new first-time homebuyer federal tax credit.  

People who are considering the purchase of their first home, or have not been home owners for at least the past three years can gain great benefits from the first-time homebuyer tax credit. According to FederalHousingTaxCredit.com, qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before May 1, 2010 will receive a tax credit of up to $8,000. Unlike past tax credits from 2008, the money received does not have to be repaid, unless the homebuyer sells the property with in three years. 

2. Determine what is reasonably affordable.  

Prior to beginning the hunt for the perfect home, it is important to find an affordable price range. Many factors such as money available for a down payment, eligibility for a loan, and monthly mortgage payments, all play a role in determining what the buyer can comfortably afford. Total monthly mortgage payments should be, on average, approximately 30 percent of one’s gross monthly income. Affordability or loan calculators found on the internet can give a good idea of what is affordable. Before seriously inquiring the purchase of your first Montgomery home it is important to have a consultation with a knowledgeable financial advisor.

3. Deciding where and what  

Once an affordable price range is determined, it is time to decide where you want to live and what you are looking for in a home. Whether staying with in the same general area, or looking for a new location, it is crucial to do a fair amount of research on the area and its demographics. For example crime rates, school districts, shopping, medical facilities, and travel, are all important factors have to be considered since they could affect your everyday life. It is also essential to know what you are looking for in a home. Separate lists of essential needs and wants should be carefully thought out towards the beginning of the home search. The list of basic needs should include things such as minimum square footage, number of bedrooms and bathrooms, location, and price. The want list should be compiled of things that would be nice to have, such as pools, big yards, and gated communities.  

4. Find a knowledgeable Real Estate professional 

Finding and purchasing a home is a complicated, overwhelming experience, which should be nothing but exciting. Working with an experienced real estate agent can make the process run smoothly and be more successful. The chances of finding the perfect Montgomery home are significantly increased when put in to the hands of the right real estate professional. 

Learn more about how we can help you purchase a Montgomery home by visiting HatTeam.com or give us a call for more personal service.

Selling your Montgomery home should be a smooth profitable transaction. But it could end up being an unsuccessful, draining experience, especially if the appropriate precautions and preparations are not observed. A majority of the time, the chance for success lies within the hands of the hired real estate expert. In order to guarantee optimal results, the sellers must be willing to cooperate and consider the professional advice of their real estate agent. Agonizing over a listing price, making the property presentable, rushing for last minute showings, answering inconvenient calls, and frazzling thoughts of not being able to sell are all stressful components of selling your home. If you and your home are not properly prepared there is a great risk of losing thousands of dollars in an unsuccessful transaction. Included in the following section are five of the most common, costly mistakes homeowners can easily avoid when selling their Montgomery home. 

1. Do not believe all real estate professionals are the same, choose wisely
   The process of selling your home involves many tedious details and critical decisions. Real estate professionals are experts in handling these situations and offering knowledgeable guidance to sellers. It is crucial to research several professionals in order to find a suitable match with experience selling homes similar to yours. Real estate agents use different methods to sell their listings. Innovative professionals who promote listings with newer techniques to attract buyers are always more successful than professionals relying on traditional strategies. 24-7 advertising, excessive exposure and lead generation are important services agents offer to aid in selling your home. Hiring and utilizing the right real estate professional can significantly maximize the chances for a smooth, profitable transaction. 
2. Effects of ignoring cosmetic upkeep
   The potential buyer’s first impression of your Montgomery home is crucial. Dirty dishes piled in the sink, unkempt lawns, cluttered rooms, stained carpets, scattered soiled laundry, and disgusting odors may seem like little things, but they are big turn-offs to prospective buyers. Ignoring cosmetic upkeep leads to loosing home sales. It also never hurts to hire a staging company to assist in making the home more appealing to buyers.
3. Refusing to make repairs
   Another major cause in loosing home sales is the seller’s refusal to make necessary repairs. In the long run, it is not beneficial to sell “as is”. Instead, making needed repairs or improvements will increase the home’s value. A real estate agent can decide what repairs will boost the home’s value.
4. Picking a price that is not too high or too low
   When properties get priced too high they tend to sit on the market and eventually develop a label of a problem property. When priced too low a home could fly off the market, allowing the buyer to get a great deal and the seller with lost potential profits. Listing the home at the appropriate price could make or break a successful sale. Real estate professionals use their market knowledge and special tactics to appropriately price the property and ensure a timely and profitable sale.
5. Making things convenient for prospective buyers
   Providing easy access to the property for showings is the key to finding the right buyer. Appointment-only showings take away from the buyer’s convenience because a specific time has to be set to fit the schedules of multiple people. Using a lock box is the best way to provide easy access for showings. You are less likely to miss out on a sale when buyers are never denied a chance to view the property. 

Learn more about how to successfully sell your Montgomery home by visiting HatTeam.com. 

What’s your Montgomery home worth?