Buying a Home in a Fire Risk Area: Here's What You Need to Know

Outside of the significant financial responsibility of delving into home ownership, there can also be a lot of other risks involved that you may not have thought about before investing in a home. You'll need to protect your home against theft or burglary, and homeowner's insurance to protect your home and belongings. But there are other less common occurrences you may not have thought about. If you happen to be living in an area that's at high risk of fire, here are some things to consider beforehand.

Defining "High Risk"

It's easy to be swept away by a beautiful home and forget about what the natural landscape around it consists of. Many homes across the United States are built in areas close to trees and shrubs, which can be dangerous in times of high temperatures, so it's important to do your research. While hot spots can occur in many different areas, California and the southwest region are particularly vulnerable in times of drought.

What It Means For Your Mortgage

Nearly all homes can be adversely affected by a fire so it's important to realize that buying in a high-risk area will not impact your ability to get a mortgage. It can, however, impact some of the costs associated with investing in your home. While homeowner's insurance is a requirement of buying a home and it will generally cover you in the incidence of a fire, it can be a bit pricier. Fortunately, you may be able to guard against some of the additional costs by purchasing a home with materials that are more fire resistant.

In The Event Of Fire

If the worst happens and your home incurs damage from a fire, you'll want to assess the extent of the damage before making a decision on how to proceed. For a home that is minimally impacted, you may want to use insurance to repair the property. However, if the property is significantly or completely destroyed, a payout may be required in order to pay off the mortgage. Before purchasing a home in a fire-prone area it's best to be aware of all aspects of your insurance policy so you can be prepared.

It's a more significant risk to buy a home in a fire-prone area, but you can be prepared for the worst by knowing your options. If you're currently considering purchasing a new home, contact your local real estate professional for more information.

Buying a Home for the First Time? Five Real Estate Terms You'll Need to Know

The terminology involved in the real estate market can be vexing for the newcomer, but if you're getting prepared to buy a home, there are a few choice words you should take some time to learn. While it's hard to learn the ins and outs in one article, here's a place to begin with five terms you may be hearing a lot of in the future.

Amortization Period

It may sound like a very fancy term, but the amortization period or mortgage term is simply the length of time it will take you to pay off your mortgage loan by monthly mortgage payments. While 25 years is the standard amortization period, it varies from lender to lender.

Fixed Rate Mortgage

A fixed rate mortgage is one of the interest rate options you'll have which involves a stable interest rate that remains unchanged. While this means your monthly payment will stay the same each month, it can also mean a higher amount paid overall since your fixed rate may be higher than the market rate over time.

Adjustable Rate Mortgage

Another option when it comes to mortgage interest rates is an adjustable rate, which means that your monthly payment will fluctuate along with the prime market rate. While this can provide a sense of insecurity since your mortgage payment will shift each month, it can end up being more economical than a fixed rate.

Closing Costs

Buying a home can cost enough with the loan, the down payment, and the interest, but closing costs will also be a part of the housing costs. Closing costs generally range anywhere from 2-5%, they include items like loan administration costs and title insurance costs that come part and parcel with the mortgage.

There are many terms in the world of real estate, but by making yourself aware of a few and doing your research, you can begin to understand what they mean for you. If you're ready to invest in a home, contact your local real estate professional for more information.

Common Details Buyers Overlook When Viewing A Home

When you are looking at a potential home to buy, it's important to pay attention to the details so that you can ensure that you are making the right choice. However, many home buyers will get so caught up in the excitement that they will miss certain important things that they need to know about the property.

If you are buying a home, make sure that you don't miss any of these commonly overlooked details:

Do The Appliances Work?

Take the time to test the major appliances in the home to make sure that they are functioning properly. This is a very likely flaw that is often overlooked in a home inspection.

It is a good idea to ask your home inspector to run every appliance through its full cycle to make sure that there are no problems.

What Are The Neighbors Like?

Many home buyers forget to figure out who the people are who live next door and what they are like, which can really backfire later on.

Perhaps your quiet neighborhood is disturbed by the sounds of partying late into the night, or your neighbor will let their free-range cats destroy your garden. Ask around the neighborhood to learn more about the people living next to you and what they are like.

How Many Outlets Does The House Have?

When you do a walkthrough of a house, you probably don't notice the number of electrical outlets in each room. However, this is important because many older homes will have fewer outlets and these days the average family has many more electronics.

If your home doesn't have enough outlets for your television, computer and other gadgets, an electrician will need to come and add more – costing you a lot of money.

Are There Are Water Spots?

It's easy to miss water spots, because they will often blend in with the color of the walls or ceiling. However, these spots will indicate that there has been a leak that has not been properly repaired, which will lead to many more problems including more leaks and mold. When you are looking at your potential home, always inspect carefully for water spots in kitchens, bathrooms, attics and basements.

These are just a few of the common details that home buyers will overlook when they are looking at a potential home to buy. For more info and tips about buying a home, contact me, your trusted real estate professional, today.

BUSTED 4 Myths About Buying Your Home That Just Aren't True

It can be pretty intimidating to dip your toes into the realm of home ownership, especially if you're a first-time homebuyer. To make things worse, there are a number of myths floating around out there surrounding the home buying process.

Such misconceptions have many kept many would-be homeowners from realizing the personal and financial rewards of owning a property. To clear things up, here are 4 myths about buying your first home that simply aren't true.

Myth #1 - "It's Cheaper To Rent Instead Of Own"

If you buy a property that is within your budget and your mortgage terms allow you to make comfortable monthly payments, the cost of rent can often be higher than mortgage payments.

Sure, there are other expenses associated with owning a property that you wouldn't be responsible for if you were renting, but one thing that many people forget is the fact that renting does not allow you to build equity.

The ability to build equity into a property that you own is like paying into a savings account - if you buy a home for $200,000, and pay down your mortgage to $175,000 in 5 years, you'll have $25,000 in home equity that can be tapped into later if you need a lump sum of cash to pay for other large expenses. If you sell your property down the line, any equity that the property has accumulated will provide you with more profit from the sale of the home.

Myth #2 - "Whatever Shows Up On The Inspection Report Is The Seller's Responsibility"

Most offers on a home usually come with a home inspection condition that makes the offer contingent on the acceptance of a home inspection report by the buyer. Many buyers, however, are under the impression that sellers are responsible for any issues that show up on the inspection report.

Although the seller is required to make certain major repairs as stipulated by the lender, everything is still negotiable. A buyer may ask the seller to fix a minor crack in the basement wall or repair any scuff marks on the hardwood flooring, but the seller can essentially refuse, leaving the buyer with the decision of whether or not to continue with the offer anyway.

Myth #3 - "The Perfect Home Is Out There - I Just Have To Wait For It"

Buyers have a tendency to focus too much on all the little things that may be wrong about a house rather than on the majority of the things that are right. Homes are much like people - they aren't perfect. Even brand new homes might have a few minor flaws.

The goal of a house hunt is to find the perfectly acceptable home - one that may have a couple of quirks that you can either live with or fix, but is otherwise ideal. An experienced buyer’s agent can help you identify issues that are deal-breakers, and help keep some perspective by separating irritating details from the big picture.

Myth #4 - "I Don't Need A Real Estate Agent To Buy A House"

Without the proper team behind you - especially if you're a first-time homebuyer - you could potentially find yourself in a compromised position. Many buyers don't take the time necessary to shop for an agent who can best represent them in their purchase.

Think about it this way – would you perform surgery on yourself? Do you feel comfortable filing your own income taxes, or do you opt to use the services of an accountant? Being represented by a licensed real estate agent will give you the benefit of professional skills and knowledge, including the ability to find financing and close the deal with your best interests put first.

It’s always in your best interests to have an experienced, knowledgeable agent representing you in a home purchase. With such a major investment on the line, you want to have someone who can help you complete a purchase leaving no stone unturned, and ultimately saving you money - and a lot of headaches.

A professional real estate agent will be able to sort the myths from the reality and make your first home-buying experience a positive one. Contact us today for more information on how you can become the proud owner of your first home!

The Unexpected In Buying Real Estate

When buying real estate, you may find some unexpected problems. Generally, these issues revolve around plumbing, wiring or sticking doors and windows. Although they aren't as expensive to fix as other issues, there's always a possibility that they indicate bigger problems. 

Sticking Doors/Windows

Spotting wear and tear on doors and windows is fairly easy. Check the hinges and locks.  Squeaking hinges or locks that stick indicate wear on seals and metal. 

Although sticking doors and windows aren't a big deal in and of themselves, these issues can be indications of moderate to severe foundation problems. If you find these issues in real estate, make your way to the basement and look for cracks or dips in the floors and walls. 

Pay attention to how the floors of the house feel when you walk. If you're at all uneasy, have an inspector look at the house before you buy.

Plumbing Problems

Sometimes, plumbing problems aren't so easy to find. Sellers have been known to use temporary fixes, which does a good job of hiding the issues. However, there are places to look that make the problems easier to find.

• Look up in the corners where the walls connect to the ceiling. Spackled ceilings make issues especially easy to spot, as they pick up water stains or crack and flake. 

• Another place to check is the bathroom, along the bottom of the wall. 

• Tile grout has a tendency to crack or flake, become discolored or loosen with continuous proximity to water. 

• Finally, check the closets. 

People who use temporary fixes will generally work hard to cover up the problems in lived-in rooms, while forgetting to fix walls and ceilings in closets.

Faulty Wiring

Spotting faulty or old wiring depends on the size of the issue and where it's located. For instance, a bad socket can be found by looking for darkened spots around the holes. However, it's impossible to look through the walls to find faulty or old wiring behind them. An electrician will be able to give you a better idea of the wiring in the real estate.

Remember, nothing takes the place of getting real estate you're thinking of buying inspected by a professional. 

Are you considering purchasing a new home? Let me help you get your dream home at the lowest price. Call your trusted real estate professional.

What To Consider When Buying A Fixer-Upper

In your imagination it seems like a great idea - you purchase an older run-down property and you have the chance to fix it up and turn it into the home of your dreams.

To Renovate, Or Not To Renovate

However, the renovation project that is simply a quick montage in your imagination will actually take several months or years and thousands of dollars in real life.

The concept of renovating a "fixer-upper" property is exciting, but the reality is a lot of work and investment. How can you make sure that you are making the right choice for you?

One of the main advantages of buying a fixer-upper property is that you will usually be able to get the property for a much cheaper price. But is it worth it for the amount of time and money you will need to invest in the property?

Here Are Some Questions You Should Be Asking Yourself When Making Your Decision:

• Do you (or your friends and family members) have the skills to be able to perform most of the renovations yourself? If you do the labour yourself, you will be able to save thousands of dollars that you would have spent hiring contractors, which will make the renovation a much more profitable project.
• Are you comfortable with the idea of living in a construction zone, perhaps for several months or more? There will be dust and noise everywhere and you might have to cope without a kitchen or a shower for a while.
• Make sure that you have a thorough inspection of the home performed so that you can see whether the home has a sturdy foundation, good wiring and plumbing, etc. If your inspection reveals any structural issues or water damage, you might be in for more than you bargained for. You need to start with a house that has "good bones".
• If the home has serious structural, plumbing or wiring problems you should stay away – these repairs are very expensive but "invisible", so you are unlikely to recoup your costs when you sell the home.
• Add up the estimated costs for renovating the property along with the cost of the home – does it still work out to be a better deal or would you be better off buying a new property.
• What is your strategy for financing the renovations? If your only option is putting it on the credit card, you might want to think twice because this is a very high interest option.

Buying a fixer-upper property can be a great investment and can give you the opportunity to transform a run-down old house into the property of your dreams. However, make sure you that you consider the choice carefully before making your decision.

For more information about about buying or selling a fixer-upper or any questions regarding real estate, contact your trusted real estate professional. 

The Three R's Of Fixing Historic Homes For Sale

If you enjoy history and fixing things, then it may be hard to drive by historic homes for sale without feeling the urge to buy one and fix it up. 

Before you do, you need learn the three R's of fixing up historic homes and the differences between them.

The three R's of fixing up historic homes are restoration, renovation and repair.  Some of the differences are minor, but they can make all the difference in cost, time and problems.

Restoration

"Restoration" literally means returning something to its original state. 

Restoring historic homes for sale involve city and state programs. It's essential that you check to see if the home is listed on the National Register of Historic Places (NRHP) or if it's located in a historic district. 

If either of these is the case, there is a specific set of rules that you must follow while renovating. 

Cost: Restoration is not a cheap endeavor. For a home to keep its historic value, the materials used need to match the original materials, including furnishings. These can be very expensive due to their antique value.

Renovation

Renovating is less complicated than restoring, at least when talking about what you can and can't do. However, with a renovation, you're generally turning the home into a more modern living place, which lowers its historic value. Make sure it isn't listed in the NRHP or located in a historic district.

Cost: Depending on the amount of renovations, i.e., modernizing, gutting or remodeling, this can also be expensive. However, it's much easier to find deals on modern appliances than it is on antiques.

Repair

Repairs differ because they generally aren't as in depth as the others. For restoration repairs, it's important to use materials that fit the house, such as plaster walls and wooden floors. For renovation, original materials aren't as important. 

Cost: Again, the cost depends on the number of repairs, as well as, whether you're keeping the historic value. 

Whether restoring, renovating or repairing historic homes for sale, the key is cost. Don't get so caught up in the possible that you miss the probable. Thinking of buying or selling an historic home? I can help! Call your trusted real estate professional today.

How To Get The Full Asking Price When Selling Your Home

Selling your home is a complex process and there are a lot of factors that you will need to consider. Your goal will be to sell your home in a timely manner, while getting the highest price you can.

However, many properties sell at a discount because the buyer is able to negotiate a lower price on the property.

Although it is impossible to guarantee that you will receive your full asking price when you sell your home, there are things that you can do to increase the likelihood of this happening. You will need to have a strategy that attracts highly motivated buyers and improves competition.

Here Are Some Tips To Keep In Mind That Will Help You To Get The Full Asking Price When You Are Selling Your Home:

• First of all, make sure that you have a reasonable asking price to start with. Research your local real estate market and find out what other buyers paid for homes comparable to yours.

• Hire a home inspector to perform a full inspection of your home, so that you can fix any problems. If you can show the buyer the repair receipts and inspection report, you will be in a better position to ask for full price.

• First impressions are very important and can improve a buyer’s perception of your home’s value. Make sure that your property has plenty of curb appeal and feels welcoming.

• De-clutter and clean your home – this makes it appear more spacious and luxurious and will make a buyer willing to pay more.

• Ask your real estate agent to create a flyer that compares your home’s price to other similar listings in the area – showing that your home is a great deal. This will convince buyers that your asking price is already discounted.

• Schedule your property tours as close together as possible. This can mean that you get multiple offers at around the same time, which will encourage the buyer who is eager to seal the deal to pay full price.

• If you have any rooms with bright colours that might not appeal to the average buyer, give them a quick makeover with neutral tones. These are safe colours that will increase the odds that your home will sell.

• If you have the budget to renovate one of the rooms in your home, it should be the kitchen or the bathroom. Studies have shown that renovations and upgrades in those two rooms have the most impact on the potential selling price of the home.

With these tips, you should be more likely to achieve the full asking price when you are selling your home. For more tips, contact your trusted real estate professional.

Sell A Home, While Managing Your Stress

When we are going through a difficult and stressful time, our bodies naturally react to the situation. This "fight or flight" reaction to stress makes us more alert and ready to avoid danger, so it is helpful in the moment.

However, if you are in a constant state of stress on an ongoing basis, this can be very damaging to your health and can increase the risk of diseases such as heart disease, depression and other problems.

Chronic stress can also result in insomnia, headaches, upset stomach, elevated blood pressure, chest pain and much more – as well as emotional issues such as panic attacks, anxiety and worry.

This is why learning to manage your stress is crucial to your health. Many people try to manage their stress by overindulging in unhealthy substances, such as tobacco, drugs and alcohol.

However, by managing stress in this way you are actually making the problem worse because you are contributing to the stress on your body.

So what are some of the healthy ways that you can manage stress?

Express Your Feelings

A lot of stress comes from being angry or upset about a situation, but keeping your thoughts and feelings inside. You can relieve that stress by sharing your feelings and expressing how you feel.

Take Time To Relax

No matter how busy and chaotic things might be, take time for yourself to recharge and relax. Even if it's only 20-30 minutes per day, having a bath, reading a book or going for a walk – it will really help to keep you calm.

Get Some Exercise

The act of exercising is a great stress reliever because it encourages your brain to produce feel-good chemicals such as endorphins. Also, your body will be better able to fight stress when it is in good shape.

Make Sure You Get Sleep

When there are a lot of demands on you, it can be tempting to want to skip sleep so that you can get more things done. However, when you are sleep deprived you will actually be much less effective and you won't be able to handle stressful situations as well. Make sure that you go to bed at a reasonable time and get the sleep you need.

Speak To A Friend

Having a close friend who you can discuss your issues with can be a huge help when you are feeling stressed. Even if they can't solve anything, it is simply helpful to have someone who listens, cares about how you are feeling and offers some encouraging words.

Managing your stress is crucial to your health, so make sure that you keep these tips in mind when things start to get overwhelming.

Ready To Buy Your First Home, Here Is Your Quick Checklist

Buying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent's house.

When you buy a property, you are making a long-term investment decision in your future and potentially taking the first step toward your future financial security.

However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.

It is important to assess where you are in life, so that you know whether or not it's the right time to buy a house.

Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are ready?

You Have All Of  Your Finances In Order

Is your credit score looking healthy? Have you paid off your credit card debt, student loans or personal loans?

If not, it is important to clean up your finances and pay down your debts before you start looking for a home, or you will be adding a mortgage on top of the debt before you are able to handle everything.

You Have Enough Savings For A Down Payment

Just because you can buy a home for as little as 3.5% down payment, doesn't mean that you should. You will have your dream home, but your mortgage payments will be so high that you won't have any money left over for repairs or improvements.

Also, you will end up paying thousands of dollars more in interest over the length of the loan. The bigger down payment you can save, creating equity in your home, the better.

You Are Earning Enough To Comfortably Afford The Mortgage Payment

Financial experts recommend that you never take a monthly payment that is more than 25% percent of your take home pay – including taxes and insurance.

Stretching yourself thinner will leave you little room for error and if your income drops for any reason – you will quickly find yourself in hot water.

You Are Happy To Settle In One Place

Could you see yourself settling in this location for the long term, or are you still considering moving elsewhere in the country or living abroad?

Buying a home is a long-term investment, so if you think that you might possibly move somewhere else in the next five years, you might want to think twice about buying a home and rent instead.

These are just a few of the signs that you are ready to purchase your first property. For more information, contact your trusted real estate professional.

Buying A Home That's Not For Sale

You’re ready to purchase a home, but you’ve looked at everything on the market and can’t find the perfect place. You’ve researched the school districts, neighborhoods and nearby amenities, and you know exactly in which area you want to live.

However, anything that comes on the market in that part of town gets snapped up immediately.

It’s time to get creative when it comes to buying a home. Start looking at places that are not currently for sale. You might have driven past your dream home, but you never thought of going the unconventional buying route.

Well, take a look at the tips below to see how you can close on a home without any other buyers knowing.

Look At Previously Listed Homes

Search homes that were on the market, but the owners took them off. Many homeowners let their listing expire and are waiting until the market improves. This is fortunate for you, because you know they are already interested in selling.

Research Online County Records

If you see your perfect home, but you don’t want to just walk up to the door and demand they sell their house, you can find their contact information online. Property records include the owners’ name, address, and, sometimes, their contact information. This will allow you to go through the proper channels of proposing an offer.

Consider A Real Estate Agent

A seller is more likely to take you seriously if a real estate agent brings the offer to them. Agents deal with sellers all the time and will be able to gage if the homeowners are interested.

They’ll also be able to tell you the right price to offer and how you should go about it. You’ll also have piece of mind that all the paperwork that comes with buying a home is completed correctly.

Write A Personal Letter

While all the guidelines say to keep personal feelings out of the home selling process, it’s practically impossible. A home is the place where you raise your children and make memories.

So write the homeowners a heartfelt letter about how you’d like to build a life in their current house. If they think you’ll care for their place as much as they do, they might entertain an offer.

Offer A Fair Price

Many homeowners are ready to upgrade, but hate the idea of getting their current residence ready to sell. They’d have to clean, clear clutter, stage and keep everything looking spotless until they close the deal — which can be quite a hassle.

So, make it convenient. Offer a price that won’t offend and will have them thinking how this could be a stress-free transition.