Better Homes and Gardens Real Estate Life

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  • Investing in Rental Properties

    Real estate has always been considered a profitable long-term investment. Although the market will fluctuate wildly at times, compared to many other types of investments, real estate is more likely to eventually appreciate in value, making it a sound long-term investment. If you are considering the purchase of an investment property, you might be drawn towards the idea of earning additional income in the short-term  with a rental property. Some of the important considerations when purchasing investment property include:

    • Location, location, location – you have likely heard the expression many times “location, location, location.” When it comes to selecting rental properties location really is everything. When you bought your own personal residence, you likely thought about location in terms of appreciation and possibly school districts or other personal considerations. When it comes to picking an investment property, appreciation is still a consideration; however, so are the tenants you will attract. If you want to secure potential tenants with little chance of a vacancy, look for a property in a location with a long history of a healthy real estate market or an area with few foreclosures. Real estate that is within or nearby a prominent college or university, for instance, might be a good place to invest. If you want high income tenants, on the other hand, you will need to purchase a property in a higher price range. Study the area and consider who would want to rent there before you select a location.
    • Financing – financing for rental properties is harder to secure than financing for an owner-occupied property. Be sure to check with a lender prior to starting your search to ensure that you will qualify for a loan if one is needed. Additionally, mortgage insurance is typically not available for investment properties. For this reason, investment property loans will likely require you to pay a larger down payment and higher interest rates.
    • Ongoing costs – when you own rental properties, you are responsible for the costs of fixing anything that goes wrong in most cases. If the air conditioning stops working, you must have it fixed and in a timely manner. Be sure to factor not just the actual costs of repairs and maintenance into your calculations but also the time commitment. Hiring a property management company to handle emergencies and day to day management of the property is one option that solves the time problem; however, that is an additional cost as well.
    • Taxes – remember that not only must you pay property taxes on an investment property, but you must also declare all of the rental income on your personal income tax return. However, there are ways in which a landlord can reduce some of the costs of taxes (e.g. deduct mortgage interest payments, deduct the cost of repairs, etc.)
    • Long range plans – most real estate investments do not break even for at least three to five years after the costs involved in purchasing the property are taken into account. Be sure that you plan to keep the property for the long run. If you are unsure of your long term plans or how much spare time you will have in the future to manage your rental property, you can look into a property management company that you are confident in before you decide to purchase rental properties.

    Rental properties can be an excellent addition to an investment portfolio because they provide short-term income and the potential for a substantial long-term payoff. Just make sure that you consider all of the factors mentioned above before you commit to entering the landlord business.

  • A Checklist of Steps Leading to the Purchase of a Home

    Having a checklist when purchasing a home can assist you with any concerns you may have about the process and ensure that it goes as smoothly as possible. While it is impossible to guarantee that everything associated with your house purchase will be easy and go smoothly, you can reduce your risk. Here are some important things to consider when creating your home-buying checklist:

    Know What You Want and Can Afford

    The more houses you view, the more you will know what you want. It is important to establish a budget from the start and stay within its criteria. Knowing your criteria of “likes” and “dislikes” before you start the process will help you to avoid wasting time. Narrow down your criteria but do not be afraid to expand your search if you come across the unexpected.

    Be Prepared – and Pre-Approved

    If you want to be taken seriously by the seller and your real estate agent, be prepared. Conduct due diligence on reputable lenders to work with you on purchasing your home. It is important that you get a pre-approval letter from a lender before making an offer. It makes the seller aware that you have the means to buy the house and are a good candidate for the seller.

    Understand the Negotiation Process

    Negotiation is an important component of the process of buying a home and starts after an offer is presented. The seller may counter your offer with a different offer, in that case, it is advised that you work with your real estate agent to reach an agreement. You will still be expected to have a home inspection that may lead you to renegotiate the contract.

    Embrace the Home Inspection

    Embrace the home inspection as a way of discovering any problems the house may need to have addressed. Whether you ask the seller to fix, those problems will be up to you. Many buyers are eager to have problems fixed prior to moving in, providing an opportunity for additional negotiations with the seller.

    Additional Steps Leading Up to the Closing

    Once you are satisfied with the inspection, there are additional steps you will need to add to your home checklist.

    • The Appraisal: An assessment of the market value of the home.
    • Title Company: You will need to work directly with a lender to answer questions and provide documentation requested by the title company.
    • Approval of Mortgage: You will need to get fully approved for your mortgage.
    • The Closing: The closing is the time when the deed is passed on from the seller to the buyer. Most closings take 30 to 45 days from the time you agree on a contract until it is fully closed. When you close is the time to rejoice as it names you the official owner of your home.

    The more you know about the process of buying a home, the more comfortable you will be with that process. The home buying checklist above will help you see where you are throughout the process, and reduce your level of stress.

  • Quick Tips for Unpacking

    After you have finished the exhausting process of packing your belongings and transporting them from your previous home to your new home, now comes the daunting task of unpacking. It may seem like an overwhelming project, especially as you are reasonably exhausted from the move. Unpacking immediately after the move will help you feel settled into your new residence more quickly. Here are a few tips that will have you unpacked and feeling “at home” in no time.

     

    Unpacking the Essentials

    You will want to unpack your “essentials bag” immediately, assuming that you packed one for your new home. The essentials bag should include enough clothes and toiletries to enable you to get by until the rest of your boxes are unloaded and unpacked. The clothes and toiletries that you have available from this bag should be put away in your bedroom and bathroom.

     

    Set up Your Kitchen

    The first room you will want to start unpacking is the kitchen. Begin with the boxes labeled for the kitchen. To protect your dishes, install the protective cabinet and drawer liner down to place your dishes on before you unpack them. Make sure to have a ruler handy to measure the sizes of your draws and cabinets.  You may want to wash your utensils or dishes before placing them back as they may have become dirty or full of dust in the packing and transporting process. Also, be sure to plug in and set up any small kitchen appliances that you plan to use right away, such as your coffee maker or toaster.

     

    Make the Beds

    Next, it is time to ensure that everyone in your new household has a comfy place to sleep on their first night. You may want to enlist help when setting up beds and their frames as they tend to be difficult to re-assemble. Unless you have packed your bedding and linens in an airtight bag, you will want to want to wash these too before you make the bed.

     

    Delegating Tasks

    If there are multiple people in your household, delegate tasks to each member, to speed up the process of unpacking the boxes. For instance, if your kids are old enough, allow them to unpack the boxes for their bedrooms. Ask others to help you unpack boxes in more challenging areas such as the garage and basement.

     

    Have Patience

    Finally, accept the reality that you are most likely not going to complete all of your unpacking on the first day of your move. In fact, it may take days or even weeks until you are completely settled in. Do not stress yourself about the pace of your move. Give yourself walking or TV breaks between unpacking rooms or between unpacking individual boxes. Consider leaving the home with the entire family to take a break and to have a mini celebration such as by going for ice cream. Pacing the process of unpacking guarantees a much more enjoyable move-in process and a happy new home.

     

     

  • Coastal Living in Los Angeles

    One of the most coveted benefits of living in Los Angeles is its access to the Pacific Coast. You’ll find plenty of Los Angeles beach houses to choose from during your house hunt – with some of the most desirable properties tucked away in cities such as Venice, Santa Monica, Malibu and Manhattan Beach. Each of these highly sought-after locations has a distinct sensibility and offers a variety of attractions.

    To get the most authentic SoCal beach experience, check out Santa Monica and its popular hot spots that offer a plethora of activities all year round. The Santa Monica Pier, for instance, boasts popular restaurants, an iconic Ferris wheel, and an outdoor concert series, making it a popular place for families to enjoy themselves. Great for fitness enthusiasts, the area is also home to the Santa Monica Muscle Beach, which features outdoor workout equipment for the public to enjoy. Allowing for activities such as swimming, sunbathing, surfing, fishing, and more, you’ll never run out of things to do here. The median list price for Santa Monica homes is reported to be just over a million dollars. However, some of the more desirable beachfront properties are listed for between $2,500,000 and $5,000,000. Many of these properties are luxury condos that feature 3-4 bedrooms, high-end amenities, and stunning ocean views.

    Located just south of Santa Monica is Venice Beach. Known for its lively boardwalk, which features a diverse array of street performers and crowds, this area makes for an excellent location for people watching. Venice is also home to everything from white sand beaches to a variety of art galleries that line its eclectic streets. The median list price for homes in Venice is at just over a million dollars as well. However, many high-end oceanfront homes and condos are in the multi-million dollar ranges.

    Manhattan Beach is another beach community that features some of the most luxurious estates in the nation. With a beautiful pier and a great surfing atmosphere, residents can also enjoy a more placid lifestyle. The area is also home to some of Southern California’s most highly rated restaurants, including, but not limited to, dining options such as MB Post and Second Story. The median list price for these homes in Manhattan Beach is at approximately $1.8 million, but the more desirable homes can range anywhere from $5,000,000 to $12,000,000. Los Angeles beach houses in this price range can afford you about five and seven bedrooms, breathtaking views of the water as well as extravagant features and finishes.

    The most upscale of all four areas might just be Malibu. Malibu is one of the most exclusive communities in the U.S. Home to the rich and famous, Malibu is known for offering its residents a high level of privacy. The area houses several wineries, stunning views and quiet stretches of public and private beaches. The median home list price is currently at approximately $2.5 million. However, the prices for luxury oceanfront homes in this area can climb up to about $50,000,000. Many of these Los Angeles beach houses sit on sprawling lots of land and display majestic views of the Pacific Coast.

    Whether you’re looking for complete privacy, upscale entertainment, or a neighborhood that offers family-friendly fun, the beach houses among the Los Angeles property listings are sure to provide something to suit your taste.

  • Frequently Asked Questions About Closing

    The closing of a house is an important milestone for anyone, whether it is buying one’s first home or investing in a dream home for retirement. Here are a few of the frequently asked questions and answers about the closing of a home.

    What Happens Prior to the Closing of a Home?

    There are several steps that need to take place in any real estate transaction prior to a closing appointment. Only after the following steps are completed will the closing take place:

    • A purchase agreement needs to be finalized.
    • A home inspection needs to be approved.
    • An appraisal of your home needs to be completed.
    • The mortgage application is completed and approved.

    Which Party handles Title and Closing Costs?

    The responsibility for title and closing costs is negotiated as part of the real estate transaction. The responsibility will vary based on the individual sale. In most cases, the buyers and sellers will split the costs associated with the title and closing costs.

    What Do I Need to Bring to the Closing?

    • Identification will be needed at the closing: A government-issued identification card such as a driver’s license or a passport. In some cases, two different forms of identification are required.
    • Additional paperwork may be required at the closing, such as proof of homeowners insurance, the results of a home inspection and other legal documents needed for the transaction.
    • Your spouse should accompany you if you are married. A form of identification from your spouse will be needed.
    • A cashier’s check should be brought to the closing in the total amount of the down payment and closing costs. Your mortgage lender will provide you the final amount prior to the closing, allowing you to prepare the check from the bank.

    What Can I Expect at the Closing?

    Expect the closing to last for about an hour. The length of time the appointment will take may vary based on the complexity of the transaction and the availability of funds. Both parties will be required to sign off on several different documents during the appointment.

    The closing agent will be available to explain the details of all the documents you are signing and answer any questions.

    What Documents Are Signed at the Closing?

    You will be signing many different documents on the day of your closing, including:

    • Title Transfer: This document transfers the ownership of the home from the previous owners to you.
    • Truth-in-Lending Statement: This document details the fine print of your mortgage loan, and your mortgage company by law is required to provide you with it at the closing.
    • Title Insurance: Title insurance protects you as well as your lender from any issues regarding the title of your home.
    • Mortgage Loan Documents: These documents will finalize the approval of your loan and will give you the necessary financing to purchase it.

  • Home Sellers Checklist for Closing on a Home

    Selling your home can be a long and complicated process. If you have entered into an agreement for the sale of your home, you are almost to the finish line! The last step in the process should be closing on a home. This is where title to the home is legally transferred from the seller to the buyer. Although there will be some variance from one state to the next with regard to who is present at a closing and how the closing proceeds, there are some commonalities as well. As a rule, home sellers, home buyers, as well as their respective agents, must be present at the closing. In addition, a closing agent who works for the title company or lender is usually present along with a representative from the lender and the title company. Either or both side may also bring an attorney on the day of closing. In order to ensure that you are prepared for the big day, home sellers may wish to use the following checklist as a guide.

    • Request a payoff statement for each lien or encumbrance that currently exists on the property. If you have a mortgage on the property, contact your lender for the payoff statement. Other liens or encumbrances may turn up when the title search is conducted. These must be addressed prior to, or at, the closing. Your Better Homes and Gardens® Real Estate agent can assist you if you are uncertain how to request the necessary information.
    • Make any repairs that were agreed upon pursuant to the sales agreement. This should be completed prior to the final walk through by the home sellers.
    • Attend the walk-through before the closing. Most states allow/require a final walk-through within 24 hours prior to the closing. Although this is intended to be for the benefit of the buyer, you can take this opportunity to pass on any quirks or insider information regarding the home to the buyers. You will also want to be present in case any issues arise at the last minute with regard to the condition of the home or any repairs that have been completed.
    • Contact utility companies ahead of time to arrange for shut-off of services. If you have received a final bill prior to closing, bring that with you to show that you have turned off or transferred the services. On the day of closing, you should go through the house and physically shut-off valves.
    • Assemble warranties and manuals to pass on to the buyers. If the sale includes appliances or anything else that comes with a manual or warranty you should put those together to give to the new owners.
    • Bring your copies of all important documents to the closing. Although copies may be provided for you at the closing, it is best to come prepared. While there may be additional documents required at your specific closing, some common documents that you should have with you include: sales contract, title search, appraisal, inspection report, and disclosures.
    Because each closing is as unique as the property being sold, be sure to consult with your Better Homes and Gardens Real Estate agent to be certain that you are fully prepared for your closing when the day finally arrives.

  • When to Refinance Your Home

    Refinancing a home loan can be a creative way to access additional money easily. Refinancing allows you to convert an existing mortgage into a fully paid off one, and thus obtain a new loan. In many cases it is considered a favorable option for consumers, especially if they have good credit. Now is a favorable time to consider refinancing as interest rates are at their lowest rates in years. Compare the scenarios below to consider whether it is worth your time and to refinance.

    When to Refinance: There are times when refinancing your existing mortgage loan can prove to be ideal.

    • Lower Interest Rates: If you secure a new interest rate, at least one percent lower than what you have now, refinancing for the same length of loan term will save you money. You will build equity faster as you will have a lower monthly payment too.
    • Shorten the Term: Cutting your loan term from 30 years to 15 years will mean a higher monthly payment, but a much lower overall cost of buying your home.
    • Get a Fixed Rate Loan: A fixed rate loan is a good idea if you currently have an adjustable rate mortgage (ARM) and are seeking to avoid the risk of paying more at a later time.
    • Consolidate Other Debt: Consolidating other debts through a refinanced mortgage loan can be beneficial, but only if you able to overcome the risk of defaulting.

    When Not to Refinance: Loan refinancing can be less beneficial in several situations such as:

    • Term Extended: If you refinance your loan to get a lower monthly payment, but you extend the terms; you will likely spend more money in the long term to purchase your home.
    • High Monthly Payments: If you refinance your home to pay off high-interest credit card debt or other types of unsecured debt, this can lead to high monthly payments. If it results in defaulting on your payments as they are too high, you could lose your home.
    • Not Making Credit Card Payments: On the other hand, not making payments on those credit cards, while financially devastating, will not lead to your home being confiscated. It also indicates you do not have money to pay payments.
    • Interest Rates Less than One Percent: If you refinance your loan at an interest rate that is less than one percent of a difference, you will likely lose any benefit due to high closing costs.

    For those who need a lower payment, lower interest rate or help with other debts, it can be beneficial if you refinance. Your lender can provide you with advice regarding all aspects of refinancing terms and to determine if it makes sense to move forward with your financial situation.

  • Tips for Moving out of State with a Pet

    Even if you’re confident about moving and you know all the best relocation tips, you may not know what it takes to move a pet into a different state. Relocating a pet can provide special challenges because you are transporting a living animal and different states have different rules and regulations surrounding pet ownership. The following steps can help you avoid violations of state laws and help make your move as simple as possible.

    Learn Your New State Laws
    If you’ve only owned pets in your current state you may not be aware of what the regulations are in another state. You could suddenly be faced with the requirement of obtaining a license for your cat, or you may need to show proof of an up-to-date rabies vaccination for your dog. Find out exactly what you need in order to transport your pet across state lines. Keep these records within reach, as authorities may ask to view them.

    Make Your Pet Easily Identifiable
    Plenty of things can go wrong when you’re moving across state lines, including losing your pet during the rush of packing, driving, and unpacking all your stuff.  You and your pet will be doing a lot of traveling, especially if you are driving. It can be devastating if your pet runs off while traveling through unfamiliar places and ends up unable to find your new home, so prepare for the worst in advance by making your sure your dog or cat is provided with a collar that clearly states your contact information. If your pet doesn’t have a microchip – which is an identifying chip placed under the animal’s skin – consider getting one before you move.

    Visit the Vet
    Even if your animal has recently had a veterinary check-up, it’s wise to schedule a vet appointment close to your move date to ensure that your pet receives the proper vaccinations and treatments before you leave. Your vet can help you determine exactly what treatments your pet needs and what methods of travel he or she recommends. Your vet may also be able to offer relocation tips if your pet has special traveling considerations. For example, if your cat becomes extremely anxious during long trips in a car, some vets may prescribe a light sedative to calm him or her down.

    Determine How Your Pet Will Travel
    While you may be able to book a ticket on a plane, if your dog is over a certain size, he or she won’t necessarily be able to come with you. Similarly, if you’re moving to a new state and you’re planning on taking a long road trip to get there, your cat may be miserable during a long drive. If this is your first time moving with a pet then you need to start preparing in advance so you can keep your animal safe and happy and make any alternate arrangements if necessary. You may also want to look into pet relocation services, which will take care of the logistics of your pet’s move while making sure he or she is completely comfortable.

    Moving with a pet doesn’t have to be complicated or frustrating. If you take the time to prepare in advance, the move can be a relatively stress-free experience for you and your animal.

  • Checking Your Credit Before Buying a Home

    The American dream has always been to own your own home and your Better Homes and Gardens® Real Estate agent is there to help you achieve that goal. A key component is to understand what finance companies look for when considering an application. This knowledge can go a long way towards helping you finally purchase your new home. Finance companies typically look at two very important factors when deciding whether or not to approve a loan application. The first factor is your income to debt ratio and the second is your credit score. If home buying is in your future, checking your credit score now is an essential first step.

    If you are like most people, you most likely have not given your credit score much thought. Now that you are in the home buying market, knowing your credit score is very important. Although there are numerous companies that will provide you with your score for a fee, the federal government has mandated that each consumer is entitled to one free report each year, which includes the three major credit reporting bureaus. Your free report can be accessed at annualcreditreport.com once a year. The report will provide you with your score from Experian, TransUnion and Equifax. Once you have reviewed your report for accuracy, you can challenge any inaccuracies by following the procedures outlined by each of the individual credit reporting agencies. You may also choose to subscribe to one of the many services that offer assistance to keep an eye on your credit score for you to be certain your score remains in the acceptable range as you get closer to the actual home buying process.

    Your credit score will have a direct and significant impact on what type of financing you qualify for, as well as the interest rate you are offered if approved. Individual finance companies set their own guidelines for what is considered an acceptable score; however, an average score of over 600-650 is usually required in order to qualify for conventional financing. The higher your score, the lower your interest rate will be as well. In general, finance companies look for scores over 720-750 to qualify for the lowest interest rates offered by the lender at the time of application.

    Lenders also look at your debt to income ratio. In essence, this means how much debt do you have compared to the income you earn. If you earn $5,000 a month, but your debt is $2500 a month, you have a debt to income ratio of 50 percent which is too high for conventional financing. Check with your potential lenders what debt to income ratio they typically look for.

    If your credit score is not where is should be, you can take some additional time to try and pay off debts and raise your score, or you can look to non-conventional financing. If your scores are in the acceptable range, check with your lender to see if you can get pre-approved which will give you an idea of how much home you can afford and what your monthly payments will be. Be sure you are actually getting pre-approved, not pre-qualified. “Pre-qualified” simply means the lender gives you an idea of what you will qualify for based on information you supply, whereas getting “pre-approved” typically requires you to fill out an official application, pay a fee, and submit to a credit check.  This will ultimately provide a more accurate estimate of what you will be approved for when you decide you purchase your dream home.

  • Family Friendly Neighborhoods in South Florida

    Although Florida has been a favored retirement location for many decades, south Florida has only truly started burgeoning in the last couple of decades. Many cities in south Florida, in fact, are not known as retirement destinations but as family friendly places to raise children. Fort Lauderdale, for example, offers numerous big city advantages while still maintaining the characteristics of a “family-friendly” city.

     

    Demographically, almost half of all households in Fort Lauderdale are made up of families with children under the age of 18 living there. Although the city does have some retirees, they account for only about 25 percent of all households. Residents of Fort Lauderdale represent both blue and white collar workers who have an above average education and typically earn an upper middle class income. The Broward School District services students in Fort Lauderdale public education. For parents who wish to send their children to private or parochial schools, the city offers numerous options.
    Located about 30 miles north of Miami, Fort Lauderdale has become a suburb of Miami given the urban sprawl that has taken place over the last two decades in south Florida. Fort Lauderdale officially encompasses 36 square miles along the Atlantic Coast of Florida and has a year around population of just over 165,000 residents. Because it is a popular tourist destination, the city also hosts an average of 10 million visitors each year. Although geographically close to Miami, Fort Lauderdale offers an urban oasis to families who want to be near the excitement of Miami but do not wish to raise their children there. If you are looking for family friendly neighborhoods in South Florida, Fort Lauderdale is a nice suburb to consider. Known as the “Venice of America” because of the miles of waterways that can be found there, Fort Lauderdale offers homebuyers the rare ability to purchase a waterfront home on an average family budget.
    South Florida real estate has historically been among some of the highest priced real estate in the country and Fort Lauderdale is no exception. However, with 60 official neighborhoods and an additional 30 unofficial neighborhoods, homebuyers have a good chance of finding an affordable home in Fort Lauderdale among south Florida’s homes for sale. In the south Florida real estate market, Fort Lauderdale is unique in that it offers a wide range of options, which include affordable homes as well as high-end real estate options from which a home buyer can choose.
    For anyone who is looking for south Florida homes for sale, Fort Lauderdale should be on the list of cities to visit. With its family friendly atmosphere, yet proximity to the shopping and entertainment Miami has to offer, Fort Lauderdale may be the perfect match for you.  For additional information about South Florida, you can always find professional real estate advice with an experienced Florida real estate agent who is familiar with the area.