Home Inspection And Title Fees: Budget For Closing Costs added 11-4-2016
It can be a euphoric time in life to buy your first home. As the escrow starts your euphoria can quickly accelerate to frustration and pretty soon those costs can begin to accumulate and you’re going to be very stressed.
Home Inspection And Title Fees: Budget For Closing Costs
Closing costs are the fees that are associated with the escrow process. These are the costs that are done during the process of the real estate transaction. While it’s an exciting time, you’ll have to have a lot of cash at the ready to pay these costs as they come in. A lot of people think that they only need their down payment, this couldn’t be further from the truth, you’re still going to have to pay all of the closing costs.
You’ll have to pay for an inspection on your home so that you can find out if there are any issues that you might have missed. Such things as dry rot, water leaks, termites and other issues may make or break your deal. This is a fee that isn’t included in your down payment so you’re going to have to pay for this. It can be several hundred dollars depending on the size of the property that you’re looking at. You’ll have to have this money on hand. It could even end up in the thousands.
Title insurance is another must have when you buy a home. You’ll want to make sure that you have this to protect you and your lender. Title insurance is exactly what it says, insurance on the title. The title company does a research on the title and guarantees that the title is acceptable. Another thing that the title company does is to ensure that there aren’t any liens against the home or judgments. These could slow the process and mess up the entire purchase of the home. Title insurance could be as few as several hundred upwards to several thousand depending on a lot of variables. Ask your real estate agent how it works for your specific home.
title insurance and home inspections can really rack up the cost so you’ll want to ensure that you’ve budgeted this into your final dollar amount for the home that you’re planning to purchase. for help finding Real Estate in prosper Texas please contact us at http://realtybytiffany.com
Ideas To Help Your Home Sell Faster added 10-10-2016
If you are thinking about putting your home on the market, you want to maximize your profit and invest as little as possible. Your house has to be appealing to a wide variety of buyers in order to generate enough interest to make the sale. This can be done easily with little or no money. If you use the tips in this article, you will be able to make the sale relatively quickly.
One of the easiest things you can do is clean and reduce the amount of clutter in your home. Clutter makes your home seem smaller. If you have too, rent a small storage unit to put some furniture in while your home is on the market. While you may love having bookcases filled with Furbies and Beanie Babies, bookcases, ottomans, end tables, and other furniture, all make your home seem smaller.
Clean up the entry to your home. Because you enter your home on a daily basis, you may not notice how dirty it is. Clean it up and make the entrance to your home inviting and welcoming.
If the window treatments in your home are dated, get new ones or just remove them altogether. This will let more light into the home and make it appear bigger. You may love the way they look, but your potential buyers may not like your decor style.
The floors are something that potential buyers always notice. If your carpet is showing wear or your wood floors are scuffed, get them cleaned or refinished. Although it is inexpensive to have this done, many buyers will think that they have to have the flooring replaced instead of just cleaned. This is an additional expense in the buyers mind and could sway them away from a purchase.
When you are having an open house, make sure that you turn on all of the lights and use candles to make the home smell nice. The lighting will make the home appear larger and brighter. Although it might not seem like a big deal, candles will welcome potential buyers and make the property feel like a home. Both of these things will invite potential buyers in and make them feel comfortable.
In a buyers market, you have to do anything that you can to make your home more appealing to a wide variety of buyers. Do not even think about putting your home on the market without preparing it for the sale first
About Real Estate Capital Gains. added 9-7-2016
Few people stop to consider the ramifications of tax law when they purchase a home for the first time or even the second or third. It’s not just an eventual dynamic that prioritizes itself high in the minds of buyers. Too much attention is put on the here-and-now. The costs for inspections, an earnest money deposit, a down payment, paying points up-front, moving costs, and countless little expenses along the way.
Those expenses are real and felt in a big way when the dust settles. After move-in day and the first couple of weeks of being excited and busy with making little changes, pockets are generally empty and then life becomes a bit more normal. The last thing during and after the initial home buying honeymoon is selling the house, which is now their very-own home.
Of course, after some time goes by, things change. Career opportunities present themselves, requiring relocation. An illness makes an unpleasant surprise. Space for a growing family dwindles as the walls seem to close-in. Now, selling is very real and reality sinks-in heavily.
What Real Estate Capital Gains Are
Capital gains are a type of tax on the “gains” or “profits” made from the sale of an asset. These can arise from selling stocks or real estate. The rates for these have been historically lower than for earned income but nevertheless, are inescapable. Sell your property and you’ll be subject to paying capital gains in some way or form.
Sell Your Primary Residence
Okay, so the least expensive escape hatch is called the 2 out of 5 rule. That is, owning and living in a primary residence for the last two out of five years for exemptions of $250,000 for individuals and $500,000 for couples filing jointly. Of course, there are more caveats and exceptions, but that’s not unusual with the tax code.
Keep Receipts of Everything
If the above circumstances do not apply, then it’s time to look at alternatives. Among the remaining options are writing off expenses. This means keeping receipts for practically every expense, such as doctor visits or rebuilding costs after a natural disaster. For those who live and own a home less than two years, it’s highly advisable to keep those financial records.
Take Partial Deductions Where Possible
The Internal Revenue Service has some options available for those homeowners not living in their primary residence for two years or more. However, this is where a professional tax advisor will be necessary. Do not make the mistake of believing the transaction, and its amounts, can be hidden, because it will be public record and mortgage lenders are required to report on these sales.
Real Estate investing can be very lucrative.
It can also mean financial ruin. Like any other venture, it pays to be prepared and have a well thought-out game plan before jumping into the real property market. To be sure, there are substantial sums of money going into real estate investments but the return on investment can be increased simply having realistic expectations.
About Real Estate Investments Real property whether single family homes, rentals, multifamily or commercial can bring sizable returns. However, it’s important to know which will best suit your personality and be the most cost feasible. Too many real estate investors purchase a property only to find the adage, you bought it, you own it is inescapable.
Knowing current market conditions is helpful but learning previous trends can be advantageous as well. Making Money in Real Estate Investments Money can be made in real property investments. But the most successful investors are those who understand the fundamentals and seek out advice from those in-the-know. A trustworthy broker or agent should be the first place you start. Get recommendations and references, then interview a few brokers or agents.
Here are some more useful real estate investment tips:
Know When to Say When A good portion of first time investors make the huge mistake of not knowing when to say when. In other words, purchasing a property then going all-out to make it marketable. Some even begin personalizing the space without being aware they are doing so. Stay object. New appliances might look bright and shiny but gently used appliances with a bit of elbow grease will do the same trick.
Location, Location, Location The cliche is true. Real estate investing is about location, location, location and always will be. Don’t just look at the property, look at the entire neighborhood. Is it near schools? Is a grocery store nearby? Is it next to an industrial area? Carve Out Your Niche Rent-to-own. Buying and flipping. Renting. All will make money. The question is which best fits you? If you rent, be prepared to pay “carry costs” during vacancy periods.
Rent-to-own properties provide a long-term income but can also cost thousands of dollars should the buyer default. Flipping only works if you put less into it than you sell it for–keep costs to a minimum. Build Relationships with Service Providers No matter your strategy, you’ll need appliances repaired or replaced. Paint, roofing, plumbing, electrical and other work. Establish relationships with providers that meet your expectations. For help investing in Prosper Texas Real Estate please contact us.
The Importance of Home Warranty Insurance:added 7-8-2016
The real estate market is a little tricky these days. In some places, it is a buyers market, as property prices are being slashed in order to make a sale. These adjustments make it hard for the seller to turn a profit, and as a result, they need to start considering how best to draw buyers in to their property. If you are trying to sell a piece of real estate, think about getting home warranty insurance. This is an extra benefit that is very appealing to buyers. It gives them some assurance that they will continue to live at the property for some time without any issues.
Sellers typically do not want their property to linger on the market for very long. However, with more and more houses on the market, it can be difficult to get a buyer interested in a given property. Home warranty insurance takes care of maintenance and repairs at a property for a certain time period. Generally, the insurance will cover anything in the house at the time of the sale. For example, appliances, electrical systems and even furniture are protected as a result of the insurance policy.
For a buyer, having a home insurance policy is very desirable. Purchasing a property is a big decision. It is the largest investment you will ever make. Therefore, protect that investment with a insurance policy; you then know that if anything goes wrong, you will not have to come up with the money to fix the issue. The insurance policy will take care of it. Generally, these policies last for a period of twelve months. Buyers usually have the option to extend the warranty by paying a certain amount of money. During the time that the warranty is in effect, the insurance company will either repair or replace anything that gets broken in the home. However, this does not apply in instances of fire or theft. In addition, if the item was damaged as a result of your own negligence, insurance will not cover it.
There are a number of reasons why a property that comes with home warranty insurance is more desirable than one that does not have the insurance. For starters, sellers appear more honest as a result of offering such a policy. Buyers know that they do not have to worry about the house falling down around them after they buy it. It is a win win situation for everyone involved.
Home insurance policies that last for longer than one year have a smaller annual fee. Therefore, if you purchase a policy for two years instead of one, you will not have to pay as much money per year as you would have otherwise. In addition, you get the benefit of being covered for a longer period of time. As you can probably tell, a home warranty policy is a great idea for anyone that is either buying or selling a home. Think about it this way; if you would buy a warranty for a television or a refrigerator, why wouldn’t you buy a warranty for your home? You can rest easy at night knowing that your home is protected. For help finding North Dallas Real Estate including the areas of Prosper and Mckinney please contact us.
Importance Of Conducting Home Inspections Before Buying added 6-3
If you have been searching for the perfect house, you will feel lucky finding it at the right price. From the outside, it might look extremely good but always remember that the seller might dress it up to minimize the flaws. Therefore, before you make a payment for the house or even an offer you should insist on conducting an inspection, preferably alongside a professional home inspector.
There are lots of sellers who bring inspectors around for the purpose of the sale and are aware that buyers need to conduct their own inspection as well. As a buyer, you might be enticed by the granite countertops or the buffed floors. However, before making any sort of payment or signing a contract, you need to make sure that everything else is in a good working condition.
There are lots of problem areas that you need to assess. For instance, you need to make sure that the air conditioning system is working properly, the foundation isn’t cracking and the roof isn’t leaking. If you hire a professional inspector and arrange an inspection before the sale goes through, any problem identified should be handled by the seller. However, if you refuse to conduct an inspection and pay for the house, any issue thereafter becomes yours.
Over the past few years, the number of inspections conducted has gone through the roof. It’s important to understand that most homeowners are lazy and don’t take good care of their houses. For instance, a homeowner might take months to fix a leaky faucet, replace clunky furnaces or the air conditioner filters. If this is the current situation with homeowners living in their own houses, imagine what you are likely to find in a foreclosed house.
If the water isn’t turned off, you are likely to find mold and the same can be expected if the house has been boarded up without ventilation. Since the importance of a home inspection can’t be downplayed any purchase should be contingent on the report provided by the home inspector. Therefore, any offer on the house should clearly indicate your conditions clearly.
If the inspection turns out alright, you can purchase your house confidently. However, if the report is negative you can either choose to let go of the house or make a lesser offer to force the seller to pay for the repairs. You should also be careful about the inspector you choose to make sure he/she is not in collusion with the seller. For help finding Prosper Tx Real Estate, please contact me
Staging Your Texas Home For A Fast Sale added 5-4-2016
If you are getting ready to sell your home, it is important to do everything you can to make it as appealing as possible to buyers. Hiring a professional real estate agent to help you list your home can improve your chances of quickly finding a qualified buyer.
There is a lot more that goes into selling a home than simply sticking a “For Sale” sign out in the front yard. Instead, it is a complex process that involves careful thought and consideration in order to get the most money possible out of your home.
Pricing The Home
One of the key factors that goes into determining the value of a particular property is its location. Unfortunately, it isn’t possible to move your home to another area to boost its resale value. Instead, your only option is to stage it for a fast, profitable sale.
The best way to determine an asking price is by evaluating comparable sales in your neighborhood over the past six months.
Tips For Staging Your Home
Finding a buyer in today’s competitive real estate market can be tough. To improve your chances, it is important to make your home as attractive as possible for buyers. Typically this is best accomplished through home staging. The following tips will help you stage your home like a pro.
* Clean every nook and cranny of your home so that it sparkles both inside and out. Don’t forget about curb appeal, either, since this is one of the primary factors that draws in potential buyers. Consider renting a pressure washer to clean up the outside of your home. Indoors, drag out the mop and vacuum and get to work cleaning every visible area of the space.
* Make your home as bright and airy as possible. People shy away from homes that feel dark and oppressive. Ideally, you want to introduce as much natural light as possible to the space. You can accomplish this by opening the blinds and curtains to let in light.
* Draw attention to any unique or interesting features that your home has. Any kitchen or bathroom renovations that you have done should be spotlighted. Other popular features that most home buyers enjoy such as swimming pools or outdoor kitchens should also be highlighted. For example, you could leave the back door open to encourage buyers to visit the outdoor space to see what it has to offer.
* Remove as much of your personality and belongings from the space as possible. Buyers want to be able to envision themselves living in the space. If you have any family photos or other personal items inside the home, it can make it harder for them to see it as their own. Removing these types of items to depersonalize the space can result in a faster sale.
* Make any necessary repairs. Go through your house with a fine-tooth comb and find any areas that are damaged or broken. Take whatever steps are necessary to get everything in your home back in good working order again.
Finally, choose neutral paint colors for the walls so that people aren’t put off by bright colors that don’t match with their personal tastes. Finish up by placing some potted flowers outdoors to create a welcoming entrance. For help with Prosper Texas Real Estate for Sale please contact us.
Buying Texas Investment Property: Rules to Follow
When you buy investment property, you purchase real estate, well, as an investment. That means you are planning to get a positive return, a big return, on your investment. However, there are several mistakes which new and novice property investors make, but, don’t realize it until it is too late. If you are considering buying investment property, there are rules to follow which can be a great help. Buying Investment Property: Rules to Follow You’ve seen the cable television shows and are probably aware there’s a lot that’s left on the editing room floor. While these sagas include dramatic plot points, the real world of property investing doesn’t resolve issues in a single episode.
Therefore, when buying investment property, there are rules to follow:
● Your investment return is made at the buy. In real estate, the general rule of thumb is that the money is made at the buy. Another way of putting it is: if you don’t get a good deal upfront, it’s more difficult to get a worthwhile return on the money you invest on the purchase and over the course of time you own the property.
● Always include a realistic contingency fund. Getting back to the drama that is reality realty, there’s always something that pops up unexpectedly. It’s just how these endeavors go and you should always include a contingency fund between 10 percent and 20 percent. This can be used as a stop-gap measure when, not if, problems appear.
● Understand the full implications of landlording. Even if you plan on hiring a property management company, you’ll still be the owner, which means it will always be a concern. If you are planning to be the landlord, be prepared for all the responsibilities which come with it. Learn what to expect so you aren’t caught off guard.
● The cheaper the home, the more “hassle factor.” Another rule of thumb in buying investment real estate is the less expensive a home is, the more “hassle factor,” it will deliver. Simply put, the cheaper the home, the more you’re likely to have to deal with regularly.
● Do not buy just a home, buy into a neighborhood. Piggybacking off the above point, you should buy into a neighborhood, not just a home. If you find a great home in a mediocre or stagnating neighborhood, that’s what you’ll get if you buy it. Another rule to follow for investment property is: always be fully prepared to walk away. Even if you’ve stumbled onto a great deal, there are more to be found without the problems you’re rationalizing and willing to ignore. For help with Prosper Texas Real Estate for Sale please contact us.