3 Things To Consider Before Home Buying

When someone tries to sell their home, they do not always tell the whole truth. Unfortunately, hiring a professional inspector can get expensive if you are viewing multiple homes. Therefore, here are some things that are obvious even to a novice which can tell you not to buy the home.

First and foremost, check the neighborhood. Very few things are more important than this. Find out whether the community is going through growth, or whether it is declining. If you notice many homes are being foreclosed and local businesses are closing, then the community is declining. Make sure you visit the area on two different occasions. This will also give you an idea of what traffic is like at different points. Don’t forget to schedule one evening visit, to see whether there is nuisance on the streets at night. Additionally, make sure the police provide you with a crime report on the area.

You should now look at the property itself and how it was treated. You should be able to tell whether it was maintained regularly. A home that is run down on the outside will probably be in a similar state on the inside. Make sure to inspect the wiring. Only a qualified electrician can identify real problems, but you can have a general look. For instance, flickering lights and hot or warm outlets are signs of a bigger problem. Similarly, if you notice that there is a single wall, or just a few walls that have been painted very recently, where others haven’t, the owners may be hiding something. Next, look closely at the windows. Windows that have mold or condensation or that open with difficulty may be signs of very expensive problems.It goes without saying that if there are any rooms that the sellers don’t want you to see, you should avoid the property completely. If there have been any structural changes to the original property, you need to check whether these were done in accordance with various building regulations.

The reality is that you are the only one who can decide whether or not to buy a property. Additionally, if you find that there are certain problems, you could use this as a negotiating point to drive the price down. On the other hand, if you then have to pay even more money to fix it up, or if you can never sell it again, then it was a waste of money. A home is a place where someone, either you or a tenant, will have to live and this means it does have to be an enjoyable property to seem extent. It goes without saying that checking the condition of the property itself is very important, but the area it is in must be focused on as well. To check on the actual property, all you really need to do is hire the services of a property inspector. This is different than a neighborhood inspection, which really requires a personal opinion and feel, something that only you can do and decide upon.

Fundamental Specifics Of Finding Selling a Property

Required Points To Consider When Finding Selling a Property

Plenty of people are investing in real estate because they need to earn more income in the future. If you could buy a house now for a certain price, it is going to be more costly in the next Five years if the real estate market will stay stable. However, you must also think about how difficult it is to sell a property. You may see tons of articles stating that they could actually sell a house easily or there are advertisements that could tell you that they could sell it in a few weeks or months. You could bring the price down, but this is not the right thing to do.

In the real estate market right now, the supply fully outstrips the demand, but you will find various methods to sell your property. We are going to give you a few simple guidelines on how to do this.

Think About the Curb Appeal of Your Home

First impression lasts so your house should give the customers a great impression as soon as they see its exterior. You have to put yourself in the shoes of the buyer and find out if the curb appeal of the house can attract the buyers. You must determine if the house can offer an excellent impression to potential customers or it needs some maintenance.

The potential customers will first see the exterior of the house. You should know that they always take note of curb appeal. You must prepare everything in the house and fix everything.

Make Improvements to Your house

You need to make the renovations needed for the outside and inside of your home to make certain that you will probably be able to attract the customers. They always look for a complete package when they buy a house so you need to make repairs. If you are the seller, you must make certain that you may fix everything. Nevertheless, you must not over enhance the house as there are some enhancements that will not really make a big difference to the asking price of the house. Enhancements can enhance the price of your house and its chances to be sold, but you cannot make any upgrades that will not benefit you in any way. You must do your research and put money in the things that can offer the best ROI.

Get Rid of Clutter in Your House

A few of you might claim that adding a little more design to your house will make it more desirable, but the reality is that any personal items, collectibles and art works that you have in your property won’t help you sell your home.

The best thing that one could actually do is to remove all of them and only leave the essential furniture to help make the rooms a bit bigger. The aim here is to allow the customers to picture themselves living in the house that you are selling.

They will begin pointing at every part of your home while visualizing what they really want to put there if they will buy the house so you must make certain that unneeded and personal items will be removed.

Put a Competitive Price

If you plan to sell a home in Jefferson and Shelby counties, you must put a great price for the property. If you’ll put a low price, it’ll be the same as leaving money on the table and if you priced the house too high, it’ll be unappealing to customers. If you are referring to home buying, the customers will always search for houses which are similar to yours and compare the prices. If your house is too costly, the buyer will check out other houses and ignore you. Most of these buyers are only relying on home financing so they can’t afford houses that are too costly. Although you can sell the house for a lower price if you’d like, you won’t be able to get back your investments.

Look For A Real Estate Agent

You are surely making a mistake if you actually believe that you can sell your property on your own. You do not have the experience and knowledge that a professional real estate agent have so it won’t be a good suggestion to sell the house by yourself.

If you’ll do it on your own, it is feasible that you won’t be able to sell your house or you won’t obtain a good deal. You could actually get lucky and find a great deal for your house, buy you can’t always depend on luck with regards to this because we’re speaking about a lot of money.

It’s best to employ an agent and allow them to manage everything. You’ll have to pay them, but it’s always better than acquiring a bad deal for the house.

Prior to selling your house, you should make sure that you will follow these simple tips. They might be very basic, but you can assume that all these will help you sell your house quickly.

Need to Get a Preapproval Letter? What You’ll Need to Have Before You Head Over to the Lender’s Office

When you apply for a loan, there are many documents that you will need to provide to a lender. The purpose of each of these documents, is that they all determine your ability, or inability, to pay back a loan. The banks will use these documents to decide if you are a viable candidate for a mortgage loanloan-servicing

Social security number for anyone who is on the mortgage loan. This information can be verified through a Social Security card or tax documents. The lender needs this to verify your identity, and also be able to pull your credit history.

Proof of employment. Your mortgage lender will request a list of employers for the last two years, minimum. This document will ask you to submit each employer’s name, mailing address and phone number. This information is critical to the lender, as it will give them an idea as to whether or not you are a risk. 

Proof of income. These mortgage documents are used to validate your income. It can come in several forms. This will be your two most recent pay stubs. It’s your average annual income the lender wants to know about. The lender will also use tax records to verify your earnings.

Tax documents. This is a standard document for mortgage pre-approval. Most lenders want to see your W-2 statements and tax returns for the last two years. These W-2 statements will also show how much income you accrued over previous years as well.

Place of Residence. This one is self-explanatory. The lender wants to know where you’ve lived for the last couple of years, and maybe longer. The longer you’ve lived at a residence, the stronger candidate for a loan you become. Banks like to see stability, rather than a person who has moved many times.

Bank account information. When you apply for mortgage pre-approval, the lender will want to know how much money you have in the bank. They need to ensure you have sufficient funds for your closing costs, and down payment. So they will probably ask you for account statements and balances for any checking, savings, or money market accounts. 

Credit information. This information is required, as the lender needs to know how many other outstanding loans you have, if any, as well as your payment history on them. These loans may include a car loan, a loan on another current property, or student loans.

Gift letters. Gift letters must be provided if you have someone helping you with a down payment, such as a family member. The lender needs to make sure that the money is a genuine gift, and that they do not expect any form of repayment from you. 

Monthly expenses. Many mortgage companies will ask for an itemized list of your monthly payments. This can include things such as credit card bills, student loans, rent, or utilities. If, however, you find that you are unable to get a conventional loan, check out FHA Loan Requirements for an alternative. Also, be sure to monitor your Credit Report frequently.

Does Selling Your House Affect Your Taxes? Here’s What You Need to Know For April


Getting ready to sell a home is a busy yet exciting time. Many sellers worry about how the sale of the house with affect their yearly tax return. This is a normal concern. Here are some myths about how selling your home will affect your taxes, come April.  

A person who has sold a home can claim up to $250,000 of the gain from the sale if he or she has owned and lived in the home for two to five years prior to the sale. If you are married, you will be able to claim up to $500,000 in taxes. In terms of age, there actually is not an age-related requirement for capital gains exemptions on the sale of a home. People may buy, sell and earn capital gains as often as they want. See: Tax Planning for Selling Your Home.

There is also not an IRS requirement that home sellers must roll over real estate profits from the sale of one home into the purchase of another. Sellers may do whatever they wish with the money of any real estate sale. Only the sale of a person’s principal residence applies to capital gains exemptions. The exemption does not apply to vacation or investment properties. 

Gains do not have to be offset by losses on another real estate transaction or any other investment.

A gain is a gain, and a loss is a loss in the eyes of the IRS. There is a longstanding myth that owners can claim a loss. Losing money on a real estate sale hurts but does not affect your tax returns. You should be aware that home improvements are not deductible. The cost of painting and repairs to prepare a home for sale comes out of the owner’s pocket and is not tax-deductible. 

The government does not tax every home sale. This is, however, true for homeowners above a specific income threshold. The costs of moving are not tax-deductible unless they’re work-related. There are strict requirements on what qualifies as work-related moving expenses. If they are not related to work, do not expect to be reimbursed for the costs of moving.

Wanting to Renovate Your Home? Check Out These Pointers For Finding an Excellent Contractor

The first thing you should know about contractors (if you don’t already), is that they can’t make their living off of just one project. They need to be juggling multiple projects at once in order to make a decent living. Remember, thBuild-To-Suitey have subcontractors on their payroll. All of the money you give them doesn’t just go to them. It goes toward your materials, and to pay his subcontractors. Whatever is left over is for him.

Knowing this, you should try to be a little more respectful than most homeowners are to your contractor. You can avoid a lot of frustration by asking them how often they’ll have time to be at your project. Come up with an agreement of how many times per week, and for how many hours, that they should be at your house. You can even write it in the contract if you want to make it more final. If after speaking with them you feel that they won’t be able to dedicate enough time to your job, try to find a different contractor. 

But know, that you’ll be pressed to find any contractor that will be able to be at your house 5 days a week from 8-5. This field just doesn’t work that way. Above all, make sure that the contractor is licensed. It also must be up-to-date. It doesn’t cost a lot of money to run a check on the contractor’s license; this is something you should do. At most, it will cost a few hundred dollars. See: How to Spot a Dishonest Contractor.

When it comes to renovating, you get what you pay for. As all things in life. Don’t go with the lowest bid, but don’t go with the highest either. Usually the median bid is the most honest contractor.  

Try your best to find an honest, ethical contractor. Meet them in person. Don’t ever hire one on the phone. You want to see what you two communicate like together, as communication is key in a home renovation project. Feel free to ask around to find out if anyone has anything either good or bad to say about him. See: 7 Ways to Spot a Potentially Bad Contractor.

Always come up with a budget. However, know that issues arise in projects like these that are not always the contractors fault. Therefore, you should always add about 15% extra to your budget in case problems arise.

Buying And Selling a Home Simultaneously? It’s a Challenge, But It Can Be Done

If you’ve got to purchase a new home before you sell your old, the first thing you need to do is know the market. Before you start seriously searching for a new home, or put your current home on the market, make sure you have a solid understanding of the housing market in your area. Is the market weighted toward buyers or sellers? For-sale-sign-with-house-shutterstock_136157789-620x350

Only then will you be able to fully strategize. The best plan of action may differ depending on exactly who has the power. Similarly, make sure to hire an appraiser and price your old home fairly. Now isn’t the time to get delusional. If you can get your home sold faster by lowering it a few thousand dollars, do so. It’s cheaper in the long run than paying two mortgages for two months. 

So, should you buy, then sell? Or should you sell, then buy? Both have their own advantages, and both have their own pitfalls. Selling your home first makes getting a mortgage tons easier. However, you’ll also have to find somewhere to live during that time. If you buy first, it’ll surely be easier to move, but your DTI (debt to income ratio) is going to suffer. This means you’ll have a harder time getting a mortgage. Plus, you’re going to be paying for two mortgages.

Whichever option you choose, make sure you’re prepared to accept the consequences: having to store your stuff and rent temporarily, or undergoing the financial impact of double mortgages.  

When buying and selling a home at the same time,  there are so many external circumstances. Remember: You’re not the only party in this equation. For every seller there’s a buyer, for every buyer a seller. While things might appear to be working smoothly when viewing your grand plan from above, that doesn’t take into account the variabilities of other people. Your buyers might have difficulty securing their mortgage; or, your house inspector may bring up issues that need to be fixed before you can even move in. 

So even if you’ve planned to sell your home first and are prepared to rent while buying, know that even the best plans can go South, and you still might end up having to pay two mortgages. Even if it seems extremely unlikely, and your plan seems fool-proof, you should still prepare for the worst.  If you are going to be purchasing first, talk to your real estate agent about ways to go about minimizing your financial burden and risk. Watch: How to Declutter When Selling Your House.

Buyers can request that their new home purchase be dependent on the successful sale of their old home. If you’re looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved—assuming you can convince them that your home will sell quickly.

If you’ve found the perfect home, and the timing is right, that’s wonderful. But don’t feel like you have to compromise on things that are important to you just because you need to find a home. All the same, be sure that you do not accept a low bid just because your finances are being drained by 2 mortgages. Rent a temporary apartment so that you’re not as likely to cave.

Selling and buying a house at the same time can absolutely drive you insane. But, as long as you prepare for the worst, and are armed with plans to enact for possible scenarios, you’ll relieve some of the stress. Further reading: What Deductions Can I Claim on My Taxes for Selling My House