Of all the reality TV shows that have come and gone since the fad started, very few have caused people to sit up and say, “hey, I can do that, and I can make a mint!” like the house-flipping shows that seem to be everywhere on cable these days. But is what you see on TV accurate? Can the process really be that easy? Let’s take a closer look.
The first step is analysing your finances to see if you can afford to take on a second home and remodel it. You should have an idea as to how much your total budget is going to be for the project, and make sure to factor in closing costs on the project home, contractor overruns because things are bound to take longer than you thought, and then money for incidentals and accidentals, as well.
Once you’ve got an iron clad budget, the next step is to find a home that you think is flappable. Most people go into these projects with a property already in mind, but for some, searching for a saveable house that is within their budget and at the same time will be sellable can be extremely difficult. There are many people out there looking to flip houses, so finding one for yourself can be a real chore.
Once you’ve picked your property, you have to go through the buying process. Expect delays and make sure you have the property appraised by an independent appraiser. Also, be aware that closing costs can fluctuate dramatically.
So, the house is all yours. Now what? The best thing to do is to bring in an expert to help you see everything that needs to be done. From electrical to plumbing to interior design, flipping a house right is a huge job, and you have to be prepared to spend the money.
Once renovations have started, be prepared to dedicate as much time as needed to the project. The things that you can do yourself will save you money, but don’t be afraid to call in an expert for the big jobs.
Once the property looks like it should, have it reappraised, and once you’re ready to sell, don’t be afraid to embrace non-traditional methods of selling it, like the Internet or out-of-town newspapers. You need as many eyes on your flipped house so you can unload it as quickly as possible and stop making payments on it. The longer the property sits there, the less successful your house flip will be.
House-flipping has become one of the most fashionable ways to make money for hard working people. But be prepared to go into your investment with your eyes, and your wallet, wide open.
2. Gated Communities – Are they for you?
There is something uniquely American about gated communities. Usually tucked away in the suburbs, they are given majestic titles, such as YosemiteRivers or Acadia Meadows. They feature narrow, winding streets that also have cutsey names like Bubbling Brook Circle. If you can stand the naming, you have the actual houses. While many of them tend to be large 3-bedrooms or bigger, they do tend to all look the same. Most of them feature manicured lawns that look better than the local municipal golf course. But for some people, this is a snapshot of the American Dream. Should you buy a home in a gated community? Let’s take a look at some of the plusses and minuses.
A big plus for most potential homeowners is that houses in gated communities keep their value. Since maintenance rules for most gated communities are so strict and there is very little through-traffic, the values of homes in most gated communities tends to stay high. Reselling your home if you have to move away is also easier.
A minus for many is the evil homeowners association. The scope of what a homeowners association asks of its homeowners has become the stuff of legend. The ridiculous standards to which a home and lawn must be kept can drive a person crazy. Everything from the color you’re allowed to paint your home, to how you decorate it, to what you’re allowed to keep on your lawn are all up to the local homeowners association, not you. This is more than most people can stomach after paying a few hundred grand for a house. But some find the conformity comforting.
A plus if you have kids is the safety of a gated community. Of course, the community is much safer if your gate is guarded and the gate mechanism deters people from following the car in front into the community. But there is little doubt that little Johnny and Sarah will be safer riding their bikes on streets with very little traffic and excruciatingly slow speed limits found in most gated communities.
Just like the guard at the gate can work in your favour to keep riff raff out as well as drunk drivers targeting your kids, the gate guard can work against you, too. Every time you order a pizza, or if you need an emergency visit from the plumber, you have to let the gate guard know and have them buzzed in. This can be a hassle, and more times than not, you’ll probably forget and this will leave your visitor stranded.
Buying a house is a stressful enough decision in life but when you factor in the pros and cons of living in a gated community, the process can seem overwhelming. The best piece of advice of all is to talk to those that already live in a gated community and see what it’s really like before you take the plunge.
3. Knowing When Your Ready To Buy
All across the United States, there are millions of people looking to a buy home - either now or in the future. Over the last few years, lower interest rates have come along, making it more affordable than ever to buy a home. When most people stop and give it some thought - buying a home makes a lot more sense than renting a home or an apartment.
In order to buy a house, you’ll need to start saving your money and have enough for the closing costs and a down payment. Your down payment will normally need to be around 15% of the price or the value of the property - whichever is lower. To be on the safe side, you should always try to have 20% to put down. If you aren’t able to put 20% down, you’ll need to buy some private mortgage insurance, which will cost you more in terms of your monthly payment.
In most cases, the closing costs will run you around 5% of the property price. Before you purchase the home, you should always get an estimate. An estimate won’t be the exact price, although it will be really close. You should always plan to save up a bit more money than you need, just to be on the safe side. It’s always best to have more than enough than not enough.
You’ll know your ready to buy a home when you know exactly how much you can afford, and you’re willing to stick with your plan. When you buy a home and get your monthly mortgage payment, it shouldn’t be any more than 25% of your total monthly income. Although there are lenders out there who will say that you can afford to pay more, you should never let them talk you into doing so - but stick to your budget instead.
Keep in mind that there is always more money involved with a home other than the mortgage payment. You also have to pay for utilities, homeowners insurance, property taxes, and maintenance. Owning and caring for a home requires a lot of responsibility. If you’ve never owned a home before, it can take a bit of time to get used to.
Before you fill out any applications, you should always look over your credit report and check for any errors. Although you may think you don’t, you can easily get an error on your credit report and not even realize it. If you have an error on your credit report, it can cost you a lot of money in interest rates. An error will decrease your credit score, which will put you in a higher interest bracket and ultimately cost you a lot more money in the end. Therefore, you should always know your credit before you approach a lender.
If you check your credit report early enough, you may leave yourself enough time to fix any problems and get your credit back on track. Rebuilding credit can take time though, sometimes even years. You should always plan ahead - and give yourself plenty of time to fix your credit.
Buying a home will require a bit of commitment on your behalf. You should always strive to get the best possible deals, which means knowing your credit and where you stand. This way, you can get the best interest rates. You don’t want to buy a home with bad credit, simply because you’ll pay a lot more money for the home. If you take the time to fix any credit problems and save up some money - you’ll be able to get a much better home for your money.
4. Things To Know Before Buying A Home
If you are taking the next step in life and purchasing a home, chances are that you are feeling the pressure and the anxiety that goes along with this difficult decision. Those who buy homes are very anxious, eager to get any information they can about real estate. Before you buy a home, it always helps to learn all that you can.
The first thing you’ll need to do when buying a home is to find out just how much you can qualify for or afford to borrow. You should also make it a point to check your credit and know where you stand. If you have any problems, you should strive to correct them for you attempt to borrow money for a home. The higher credit rating you have, the lower your interest rates will be.
If you can, you should always attempt to get pre approved by a mortgage broker or lender, as this will show your commitment to the mortgage. Also make sure to look for any payment or prepayment options that can help you take a few years away from your mortgage. Once you have been pre approved for a mortgage and know where you stand with your monthly payments, you can start shopping for property.
When you shop for a home, you should only buy real estate that is perfect for you. Before you start looking, you should always make a list of everything you want your home to have, based on what you want and what you actually need. You should also make sure that you mark out any areas that you are willing to come to a compromise on, just in case you have to.
To assist you with finding the perfect home, you should enlist the services of a reputable real estate agent. When you meet with your agent, you will go over how much you are willing to spend, and what type of home you are looking for. You’re agent will know where ideal properties are, and help you find the home that is best for you.
Your agent will supply you with a list of potential properties that meet your budget and your features. Once you get the list, you should drive by the homes and check out both the home and the neighborhood. You should consider the appearance and location of the home, safety, access to the freeway, schools nearby, commute time to work, local shopping, and even recreational activities.
If you don’t find something that interests you the first time, you should keep looking until you find the home that is best for you. Your agent can help with tours of homes and such, even tell you information about neighborhoods that you aren’t familiar with. If you have chosen a good real estate agent, he will care about helping you find a home and go out of his way to ensure that you get exactly what you want.
To get the most from buying a home, you should always hire a real estate agent that you can trust. Your agent will go a long way in helping you buy a home, from finding properties to giving you pointers and tips along the way. Good real estate agents will care about your satisfaction, and will do all that they can to help you find the home of your dreams. You can always buy a home without a real estate agent, although it will take you longer and you won’t get the help and other amenities that a real estate agent will bring to the table.
5. Home Shopping The Smart Way
When shopping for a home, there are quite a few things that can snatch your attention. When you look at a home, it’s very easy to fall immediately in love with it. New homes are clean, decorated perfectly, and many are what you pictured in your dreams. If you don’t shop the smart way though, you’ll end up like many other home owners and find faults shortly after you move in.
When you look at your potentially new home, you’ll want to check and see if you can fit your furniture in the way you want. A lot of homes these days are configured so that the furniture will only fit in one position. Often times, this leaves a television or other device in a weird location, sometimes making your furniture nearly impossible to fit through the doors. This is surely something to bear in mind, as you certainly don’t want to have to buy entirely new furniture.
You’ll also want to be sure that you get the right home for yourself and your family. Even though you may be a young couple now, you may want to get a house with enough room in case you decide to have kids later on down the road. If you don’t get a big enough house and end up having to move, you’ll find that moving with kids is a hard task indeed. If you have babies when you move, you’ll find moving to be even more difficult.
Once your children start to leave home, you may want to look into getting a smaller house. The choice is entirely up to you, and what will work the best for your needs. Anytime you purchase a house though, you’ll want to think about the size of your new home and consider the future needs of your family as well. This way, you’ll have everything covered for years to come and won’t have to look into getting a new home.
You may also want to look at any extras as well. Things like a pool and a hot tub may be a great thing to have, although you should look into the money that regular maintenance will cost you as well. There are a lot of things that may be great to have along with your home, although you should always look at long term costs before you purchase.
Location is also something you’ll need to consider as well. Some prefer to live out in the country, while others prefer the city life. Some prefer to be close to stores and such, while others prefer to be miles and miles away. The location of a home is very important, and in most cases will have a big impact on the price. Living in the city will cost quite a bit of money, although a home out in the country can cost just as much if there is a lot of land included with the property.
Whenever you decide to buy a house, there is a lot of things that you’ll need to consider. Buying a home is no easy feat, with a lot of things you’ll need to decide on. If you give yourself enough time and plan out your budget and the type of home you want, you’ll have plenty of time to make that very important decision. You never want to rush the process, as you could end up with a home that is less than perfect. If you take your time and look at several different houses, you’ll end up in your dream home before you know it.
6. Tips For Selling Your Home
Unlike other things that you may own, you can never take selling your home lightly. A house is a big commodity, one that is worth a lot of money. Before you even think about selling your home, you should put a lot of thought and consideration into it. Although you may want to sell your home - you should make sure that you do it the right way.
The first thing you should do when you are thinking of selling your home is to hire yourself a qualified real estate agent who knows the neighborhood. An agent who knows your neighborhood will known the ideal price for your home, and help you sell it at the ideal price. If your home is priced right for the neighborhood, chances are it will sell. If it is priced too high, you might not get any offers or anyone interested in buying the home.
Once you have a real estate agent, you and your agent will need to develop a strategy. You’ll need to decide on the price and how long you will leave it on the market before you think about a reduction. You’ll also need to discuss his commission as well, which will help to avoid any misunderstandings in the future. If you talk about these types of things when you first start out selling your home, you’ll find the entire process to go much smoother.
In some cases, you may run out of time before you are able to sell your home. In this situation, you may want to rent out your home. When you rent out your home, you may also be able to strike a deal with renters that your home is available for showing. To make the house accessible to potential buyers, you may want to offer your renters a lower price. This way, they will be more inclined to make the house available for potential buyers.
Keep in mind that selling your home will take you some time. You can also sell it yourself if you prefer, without a real estate agent. This can save you quite a bit of money as well, as you won’t have to pay a real estate agent. If you are planning to go this route, you should make sure that you know the value of your home and you know the neighborhood. You can put a “for sale by owner” sign in the yard, and list your home in local newspapers, and on the Internet as well. This way, you’ll get your home out to the market of potential buyers. Homes that are for sale by the owner are always great for buyers - as they can deal with the owner directly and not have to worry about dealing with any real estate agents.
7. Reasons To Stage Your Home For Sale
If you’ve been thinking of selling your investment house or your home, you should make sure that you take full advantage of home staging trends. There are several advantages to home staging trends, which we will take a look at below.
One of the best things about staged homes is that they sell in less time. This is great news for sellers, as these types of homes will sell really fast. In most cases, you won’t have to worry about your home staying on the market for a long period of time. Research has shown that staged homes sell nearly 40% faster than other homes on the market.
Staged homes also sell for more money. Homes that have sat on the market for a long period of time will normally get lower offers due to the fact that home buyers will begin to think there is something wrong with the home. Staged homes on the other hand, don’t sit on the market for long at all. Once they are listed, they pretty much draw attention to themselves - resulting in a fast sale.
A staged exterior will also draw viewers. When home buyers first arrive at a home that is up for sale, they instantly make up their mind whether they should get out and look around, or drive off. If the yard is staged with flowers and the yard is manicured and properly taken care of, chances are that buyers will want to see more. If you entice your buyers by showing them how nice the home is outside, they will surely want to know what the home is like on the inside as well.
Once a buyer has stepped inside of the home, he will know within a matter of seconds whether or not he likes the home. To get the buyer’s attention, you’ll need to stage your home to the buyer’s liking. You don’t want the buyer to feel rushed or get the wrong impression, which is why you should always set the stage and entice the buyer to take his time and get a good look at the home.
Staging the living rooms and kitchens will also help to sell the home. Buyers love living rooms, which is why you should always make sure that the living room is the center piece of your home, and decorate it accordingly. Kitchens on the other hand, is where you should really go all out, decorating with fruit and such. You should always make sure that everything is in place as well. Buyers love to see homes that are ready to move into - and not ready to be worked on.
Staged homes will also attract more real estate agents and get more advertising as well. If a real estate agent loves your home, he will want to show it off. If you stage your home, chances are that real estate agents will eat it up. When they do, they will advertise your home more than others, just to get you some deserved attention. This way, you can benefit from a lot of exposure at absolutely no extra cost.
There’s no other way to look at it, other than staged homes sell. They attract more buyers, more real estate agents, and they give people the feeling of home. When you go out of your way to make the buyer feel that your home is his dream home, he will know it. Homes that aren’t staged may sell, although staged homes sell much faster and for more money. If you’ve been looking to sell your home, you should look into staging it and get the ball rolling in the right direction.
8. Termite Damage And Real Estate
Termite damage, no matter how small it may be, is never good for a home. During a real estate inspection, if any termite damage is found, it will affect the outcome of the home. In most cases, the buyer is told that the seller will fix the problem. Although this may sound good to some buyers that the seller will treat for termites, other buyers often wonder.
Of course it’s nice that the seller will pay to have the termite problem treated, which will normally cost around $1,000 or so. Even though the termites will be gone, you have to wonder about the damage to the structure. In the more severe cases, damage to the structure can cost up to 50 times the cost of the treatment. The last thing you want is to move into a home that you know has been treated for termites, only to find the structure to be in very bad shape.
If any type of damage was done to the wooden structure of the home, you may need to get immediate repairs. While some damage may be visible, there are other types of damage that may seem invisible to the naked eye. To find out just how bad the damage is, carpets and rugs will need to be lifted, furniture and appliances moved, walls and ceilings will need to be opened, and even some types of excavation may be needed. This is the only way to tell the extent of the damages, especially in cases of termites. If you don’t inspect every area of the home, you could be moving into a home that has severe structural damage - which can cost you thousands to repair.
There could also be latent damage present as well. To determine this, you’ll need to have invasive and destructive testing performed on your home, which will performed by qualified contractors and specialists. This will help to determine the extent of the damage and the cost of any needed repairs. This can be very costly however, although it’s the only way to find and repair any latent damage.
Destructive and invasive testing can cost you an arm and a leg, although you’ll need to have it done if you suspect termites or know for a fact that the home was treated for them. To protect yourself, you should always get a treatment and repair history before you purchase the home. If you are renting the home, you’ll need get written documentation from the specialist that details the damage to the home and cost of repairs.
Before you buy a home, you should always have it checked for termites. There are a lot of termite inspection companies out there, many of which go above and beyond to check the home for any type of termite damage. You don’t want to buy a home only to find out that it has been infested with termites. If you have the proper inspections performed before you make the purchase, you’ll know for a fact that you don’t have to worry about termites or termite damage.
If the inspector or contractor doesn’t find any termite damage, you should always have it documented. This way, if termite damage does exist, you’ll have the documentation to back you up. Termites can be very destructive to your home, especially if you are looking towards a log home. Termites can destroy wood in little to no time at all, which is why you should always do what you can to have your home treated as soon as you suspect any type of damage. If you know a home has been infested with termites before - you should really make sure that the structure isn’t damaged and the termites are gone before you commit to buying.
9. Is it a Good Idea to Sell Your Home Yourself?
Are you thinking about selling your home? Have you been thinking of selling it by yourself instead of hiring a real estate agent? There are several advantages of selling your home yourself, but there are disadvantages as well. To make it easier for you to make a decision find the most important pros and cons below.
The most important PRO for selling your home yourself is MONEY. Selling your home without the help of an agent means more Money in your pocket! By selling it yourself you save the commissions and fees. - We are not talking about pennys, we are talking about THOUSANDS of dollars which you would have to pay an agent.
Another advantage is that you are able to decide the times for open houses and showings. It is also completely up to you where and when you want to advertise. Unlike a real estate agent who is selling many houses, you can focus on YOUR house, because you are only selling your own house. It is obvious that you will have more interest in the sale than an agent..
But as mentioned above there are also disadvantages selling your house yourself. Real estate agents are paid a lot of money for a reason. Selling a home takes a lot of energy and time. Dealing with potential buyers, open houses, closing sales and of course dealing with legal issues. Real estate agents are familiar with all the above and their experience can impact the sale.
Be realistic when making a decision! Will you drop everything to make a showing? Do you think you are indeed a good negotatior and ask for an offer? Are you 100% sure you are able to close a deal? Selling a home is a big project! It is not everyone who can take on such a big project and can stay calm and professional when dealing with buyers.
Selling your home is not impossible, but it is a challenge. If this challenge excites you and if you are willing to learn then it is not impossible managing selling your home without the help of an agent. With some know-how and a lot of energy you can sell your house without the help of a real estate agent and save thousands. So how to start? Sit down and start evaluating your house. Finding the right price is the first and most important step when selling your home yourself.
10. Selling a Mobile or Manufactured Home
A mobile home selling takes just as much work as any home selling. But you’ll be happy to know that the price of mobile home has increased in the last year. A mobile home with two bedrooms can be worth as much as $2.7 million! It’s an especially staggering number because even in that price, the homebuyers don’t own the land of the home. Because of this, buyers still need to pay rent to the land owner, and faces fewer options in getting a mortgage. But fear not, mobile home owners – people chose to pay the price should have a picture of what they’re paying.
Mobile home selling is actually not that different from any other home selling. There are some legal requirements you have to finish, though. The seller must be sure that all property taxes have been paid. You must also transfer the title to the new owner, applying a document stating that all personal property taxes have been paid. Most importantly, don’t forget to report to authorizing offices that you have transferred the title, otherwise the office will still charge the tax to you. Some areas would also require anyone engaged in the business of selling mobile homes to obtain a mobile home retailer's license.
Marketing a mobile home is the one that’s relatively similar to others. You can get the help of a realtor to make it even easier. Talk to your agent and put out advertisements – it’s always an essential process in mobile home selling. Expect people to call and come over to observe your house. During home showings, you might want to explain the ownership status of your mobile home (do you own the land? Whom should you pay the rent to?). The age of a mobile house is more important than other houses, so expect a lot of questions about this.
When you’ve accepted an offer by a buyer, take time in considering the price offered. Selling a home usually means buying another shortly after – whether you’re willing to invest in another mobile home or move to other types of homes, think about the overall cost and how it will be covered.
Mobile home selling requires a little bit of extra work in legal needs. But with the high price, this should not stop the sellers. There will always be people with different needs, one of which is for a mobile home, and the mobile home market will never run out of potential buyers. Remember that you can always hire a mobile home selling agent to help you get through the process!
11. Tips For A Quick Home Sale
Often wonder why some houses can have a number of showings after its first week on the market, and similar ones seems to be left with no attention? A quick sell of a house is common enough to be expected by home sellers, but rare enough to remain a phenomenon in the market. It’s really a question of readiness – the houses being sold quickly are more well prepared to accept a new resident. Surely price and location is the major reason a house can appeal to home buyers, but there’s also more than meets the buyer’s eye. Here are some quick sell tips to make sure your house reaches that contract as soon as possible.
(a) Get a top-quality, state-of-the-art real estate agent. Sounds obvious, but the better qualified your agent is, the more experienced they are and the more guarantee that your house can be a quick sell
(b) Play the role of a buyer. Observe your house in the eye of a potential customer. Is there anything you see that makes you think “This is good, but it looks like they’re still working on that...”? Ask your friends or neighbours to do the same if necessary.
(c) There’s one sure-fire tip to get your house quickly noticed, and that’s putting out the heaviest advertising campaign you can manage. So many houses are being sold daily, how do you make sure the buyers would even see your home? Quick selling houses are results of excellent marketing skills.
(d) Offer incentives. When it’s time to take any means necessary, start negotiating extra perks to your buyers to lure them even more. A closing-cost help, for example, would motivate the buyers to speed up the decision to buying your house.
(e) When all else fails, and you’re starting to get really desperate, you might want to try renting your house. Afraid of never getting it off your back? Discuss with the renters that your initial need is to sell the house. A rented house with an option to buy is also a good idea
Some would tell you that quick sells are by means of luck. Though this is inevitably true, waiting for luck will do nothing to speed up the process. Preparation, preparation, and preparation are the three things you most need to ensure a quick sell.
home selling contract
When it’s time to finally seal the deal on your home selling, it’s time to take out the contract. Since it’s the document that will supposedly ends the process, it’s very important for home owners to understand the components of a real estate contract (even more if you’re selling the house on your own). Remember that even the contents in a contract is negotiable, so getting to know home selling contracts would put you in a better position for further discussion. You would also have less risk of being scammed by random contracts offered.
Although not all home selling contracts follow the same standard, most of them should answer the following questions:
· What’s being sold? A description of the property on hand
· How much is it?
· How is the contingency of mortgage? An amount or a mortgage rate is needed.
· How much will the deposit be and whom will it be given to?
· When and where is the closing?
· What is the exact scope of the selling? A home selling contract, in its essence, should give a firm limit of what’s being sold and what’s not.
· Will the seller be able to do further home inspections?
· What kind of inspections (wellness, hygiene, termite inspection) will be done?
· Is there any insurance covering the house?
Once again, remember that familiarizing yourself with these points will prove useful for those suspicious clauses. Pay extra attention to the contingencies, as this is usually the most essential part of a home selling contract. The home buyers would want to make sure that if something occurs in the house before closing, they would have a way to back out without penalty. Make sure that you as the seller is equally unharmed by this.
The tough job is, even after you understand the main elements of a home selling contracts, you might experience difficulty in designing one for your transaction. Once again, it’s good to let your agent deal on these things, but if you’re selling your home on your own, do some research.
Some websites could give you a format of a contract that you could use for self-selling that will not lead to detrimental effects. It’s very important to hire an attorney to help you get through the legal terms in contracts, especially when you chose not to hire a real estate agent.
