Better Homes and Gardens Real Estate Life

Category: Buying and Selling

  • Ask a Pro Q&A: Buying an Older Home

    Welcome to another installment of Ask a Pro! Today we are talking to Karlton Utter, Director of Learning at Better Homes and Gardens® Real Estate, about how to determine the price of older or historic homes.

    Ask a Pro: How to determine the price of old houses

    Q: We are looking to buy a property built in 1925 that needs extensive work it’s in an area of newer homes how can I get a price comparable so we don’t put in more than we could get out if having to sell later on? It’s a cute Florida cottage on a lake with some history but it is a not like anything surrounding it.

    -Kimberly D.

     

    A: I would highly recommend hiring a licensed appraiser to do a pre purchase appraisal.  If there is a lack of comps available based on location, age, and style the appraiser will be able  to make adjustments from current and relevant comps to develop a suggested value.  If you are trying to come up with a price based off of available comps through your real estate professional, I would look at only comparable homes within a 1-2 mile radius and only homes that are under contract or have sold in the past 6 months.  If there are no comps available, then it honestly becomes a judgment call. Please keep in mind that a home is worth what a buyer is willing to pay for it so although there may be comps and an appraisal, it is still up to you to determine its value.

    -Karlton U.

  • Houston Offers Diverse Real Estate Options

    If you’re considering a new home purchase in Houston, you will discover a metropolis teeming with all the culture, energy and excitement befitting the nation’s fourth largest city. Houston TX real estate reflects architectural styles as diverse as the city itself, from stately mansions to newly renovated row houses.

    Regardless of the type of house you desire, Houston is an exciting and flourishing city to call home. With a population of about 2.1 million residents, Houston boasts all the entertainment, recreation and urban amenities hoped for from a city this size. The region is home to over 500 performing, visual and cultural arts organizations, and a theater district rivaled only by that of the Big Apple.

    If you’re looking for a city that is ethnically and culturally diverse, Houston does not disappoint. The city is a cultural melting pot with over 100 languages spoken within the metropolitan region, making it the most ethnically diverse major metropolitan area in the nation.

    Food lovers will also take delight in the cuisine of the area. Proud of its position as culinary capital of Texas, the city offers more than 7,500 restaurants and eateries, serving up over 60 types of cuisine and laying claim to several award-winning chefs.  With options like that, it’s no wonder Houston’s residents eat out more than any other city’s residents.

    Mild winters enable residents to enjoy Houston’s beautiful outdoors year-round, including two of the nation’s 10 largest urban parks. For cyclists, the City of Houston Bikeway Program offers a 345-mile interconnected network of on-street and off-road bicycle paths.

    The city is also home to Major League Baseball’s Astros and the National Football League’s Texans. Known as a pivotal hub for the nation’s space program, Space Center Houston is NASA’s official visitor center for human spaceflight.

    Seeking out real estate in Houston TX opens you to a plethora of options in a range of prices and architectural styles, from contemporary downtown lofts or spacious mansions, to traditional single-family dwellings. Like many cities this size, Houston is defined by the neighborhoods and communities that comprise it.

    Homes in the popular Heights neighborhood exhibit a variety of architectural styles, including Craftsman, Colonial Revival and Victorian. On the east end of the city lies Eastwood, a historic neighborhood that features the city’s largest selection of preserved Arts & Crafts, Craftsman and Mission-style architecture.

    West University Place offers real estate inside the loop, close to downtown and the Museum District, though finding once-abundant original mid-century homes can be a challenge. Southwest side neighborhoods offer a number of choices for modest family homes, like cozy Linkwood, which features mostly one-story brick homes built on large lots in the 1950s.

    Hunters Creek Village, part of several townships on the west side known collectively as the Memorial Villages, is home to some of the largest estates Houston TX real estate has to offer, with half acre minimum lot sizes and a country club atmosphere.

    Recent years have also seen resurgence in downtown residential real estate, with new or remodeled high-rise condominiums and apartments.

    To learn more about Houston TX real estate, contact us today to find the perfect home and neighborhood to fit your unique needs.

     

  • How to Search Homes for Sale

    Searching for a new home can be an exciting endeavor and a great place to start is online. The online real estate search engine, provided by Better Homes and Gardens® Real Estate come with special features that are designed to help you select properties with the specifications you require and homes for sale that fall within your budget.  As you go through listings, imagine yourself settling into any one of the homes for sale listed in the site’s comprehensive database and find the home that is a perfect fit for you.
     
    Preparing to Search Homes for Sale Online
    Write a checklist of your requirements before you search for homes through an online website. Decide on the minimum number of bedrooms and bathrooms acceptable for your needs. Although prices are negotiable, you should still have an idea of the price range for your property search. A list of must-haves may also be helpful. Examples could include a pool, large backyard, finished basement or two-car garage.

    Knowing the Terminology for Your Real Estate Search
    If you’ve never conducted a search for properties online before, you’ll need to familiarize yourself with the terms and abbreviations used often in real estate ads.  For instance, here are some common abbreviations that you may come across: bedroom (BR), bathroom (BA), kitchen (KIT), dining room (DR) and living room (LR). Financing terms like “short sale” may also be found in real estate listings online, so it would be good to know that a “short sale” occurs in lieu of foreclosure and means the sale price will fall short of the liens owed against the property.

    Narrowing Down Your Real Estate Search Results
    On the landing page of Better Homes and Gardens Real Estate’s website, you’ll see a toolbar used to search available homes nationwide. You can first search for apartments and houses by putting in the zip code, neighborhood or town name in the search field of the online real estate listing site. If your initial search for homes is in an area where a Better Homes and Gardens Real Estate office is located, you will be taken directly to that local website.  That website will not only contain listings that you searched for but also relevant local information to your home finding needs.  You can do this by specifying the number of beds and bathrooms you require; additionally, enter a price range, the property type and the desired amount of square footage for your new home.

    You are also able to search for homes using the MLS listing number. Real estate agents assign each property with a unique identifying number in order to easily advertise homes for sale on various media platforms. The ID number not only helps you quickly locate a particular property, but will also help you find out the name of the agent who is listing the home for sale.

    When you search homes for sale through Better Homes and Gardens Real Estate, you’ll be able to view more than simply the basic details about the property. Enhanced features include information about neighborhood housing trends, school district data and price comparisons of nearby properties. Photographs and maps are also attached to each entry to help you determine your level of interest in the property. Once you have selected houses you’re interested in, you may work with your Better Homes and Gardens Real Estate agent to set up a walk-through or attend an open house.

     

  • Home Selling Tips – Get the Maximum Home Resale Value in a Buyer’s Market

    Simply put, a “buyer’s market” is a term commonly used to describe a market condition where the supply surpasses the demand. The real estate market after the housing bubble burst back in 2007 is a prime example of a buyer’s market. The nation as a whole had suffered through a fairly significant recession over the past several years when home values along with the demand for real estate plummeted. With lower home values and an increase in inventory of homes for sale, a buyer’s market was created. Understanding how to sell your home during these situations is the key to selling a home quickly and at a reasonable price.

    With that said, maximizing your home’s resale value when the market favors the buyer typically involves a multi-pronged approach. The following tips on “how to maximize your home resale value in a buyer’s market” can help ensure that your home sells for every penny despite the disadvantages of a buyer’s market.

    Choose the Right Home Improvement/Remodeling Projects
    Taking on expensive, complicated home improvement projects right before you decide to sell your home is usually not a good idea. First, it is highly likely that you will not be able to recoup all the financial costs of a major home improvement project at the time of sale. On average, a seller can only expect to get 50-75 percent of his or her investment back on a major remodeling project. While there are some projects that have a higher rate of return on investment, it is usually a gamble not worth taking. Moreover, you may deter buyers who don’t like the addition or improvement or who would have preferred to do it themselves in their own style after purchasing the property. Although expensive remodeling is usually not advisable, that is not to say that you should never invest in significant home improvement project. For instance, if there are any structural issues with your home, you should definitely make the necessary repairs before listing it for sale. Also, you should make sure that all major systems in your home (electrical, plumbing, heating and cooling) are in working order.

    Stage Your Home to Sell
    A fresh coat of paint throughout the home and a professional cleaning of all floors/carpeting are also good ideas. Likewise, trimming bushes and trees and planting flowers outside to give the home curb appeal is advisable. Finally, de-clutter each room to give the home the appearance of having more space and to give the potential buyer a chance to envision themselves living there.

    Get the Maximum Appraisal Value for Your Home
    Even before homebuyers arrive at your doorstep, you want to make sure that your home is presentable for the appraiser (a state licensed professional who will provide his or her expert opinion about the market value of your home). It is important for sellers to get the maximum value for their home during the appraisal process because this is what your homebuyer’s mortgage lender will likely use to determine how much they will lend.
    A way to improve the chances of getting the maximum appraisal value would be to gather as much information about your home as possible. Compile a record of all the past home improvements that you invested in, which may have increased the value of your home (E.g. master bathroom was completely remodeled, countertops have been replaced, etc.), and present this information to your home appraiser for his or her consideration. You can also conduct your own comparative market analysis. You may have information regarding your own neighborhood that your appraiser may not be aware of. For instance, if your neighbor sold his home at a price that is significantly lower than the property’s fair market value only because he had to relocate for a new job, then your appraiser should be made aware of that information.

    Reach Out to a Real Estate Professional
    The process of selling your home will be a challenge and getting an offer with a price you are happy with is even more difficult – especially in a buyer’s market, and one of the trickiest part of selling a home is the negotiation process as there are many legal terms as well as costs involved. Not only will you be negotiating the sales price for your property, but you will also be negotiating other terms of the agreement, such as who will be paying what closing costs. Working with a seasoned real estate agent gives you a competitive advantage when it comes time to negotiate.

    In addition, consulting with a real estate agent will give you a more realistic idea of what your home is actually worth. In a buyer’s market, sellers should expect to get low offers. Many buyers will come with very low offers if they understand that they are operating in a buyer’s market; however, that does not necessarily mean they are unwilling to negotiate. A real estate agent can help you draft a counter-offer and work towards negotiating a higher price for your home.

  • Listing Your Home for Sale

    Once you have made the decision to sell your home, you must prepare to list it on the market for sale.
    Listing your home for sale involves a number of steps, but before you even begin the process of cleaning and repairing your home to sell, you should develop a detailed home selling plan. Think about the reasons why you are selling your home. Consider when and why you will need to sell your home because these factors play a role in determining your listing price. Also, the market has a significant impact on both the length of time it takes to sell a home as well as the selling price, so it is a good idea to plan ahead when listing your home. Even though a seller cannot control the market, there are other facets of the selling process that can be controlled.

    Other than those who are highly experienced with the process of listing real estate, most home owners turn to a listing agent to sell their homes as quickly as possible. This is because qualified real estate agents are well-practiced in employing strong marketing tactics for their clients. One of the most important influential factors for selling a home is the listing’s level of exposure. It should be well-advertised and visible to potential buyers. Better Homes and Gardens® Real Estate agents specialize in listing homes for sale and are able to streamline the entire process while increasing your chances of closing a deal on your home.

    Simply put, the more exposure a property listing has, the higher the chances of attracting willing and able buyers. For this reason, utilizing the right resources can help you go a long way. A Multiple Listing Service (MLS), for instance, provides a comprehensive record of properties that are currently listed on the market for sale. Better Homes and Gardens Real Estate agents use MLS to help sell your home. A Multiple Listing Service is essentially a database that listing agents use to effectively gather information regarding homes for sale. As soon as your home is entered into the MLS system, thousands of potential buyers’ agents will immediately have access to the listing, which will include important data regarding your home. Without access to the MLS system, a seller must rely on advertising tactics such as yard signs or advertisements in local newspapers, neither of which will provide the amount of exposure that the MLS system does.

    Most of the avenues for advertising your home (e.g. newspaper ads, home listing magazines, etc.) offer a limited amount of space within which you can describe your home. The MLS system, on the other hand, can provide everything a potential buyer may want to know. The listing price, age of the home, square footage of each room, school system, and much more can all be ascertained from a MLS listing. When listing your home for sale with Better Homes and Gardens Real Estate, your real estate agent will utilize a Multiple Listing Service in addition to a variety of other advertising mediums such as home listing magazines, internet listings websites and local newspaper advertisements.

    Trying to sell a home without access to the MLS system is like trying to sell your vehicle with only a “For Sale” sign on the rear window. Few people will see the sign and even fewer will take the time to write down the number. Using a Better Homes and Gardens Real Estate agent who have access to a MLS system will give your home the best chance of selling in a reasonable time frame and at a price that you will be satisfied with.

  • First-time home buyer incentives: Tax Benefits

    Many first-time homebuyers are mostly concerned with getting the best price for a home and the lowest interest rate on their mortgage. However, there’s an array of other factors that are involved in a home purchase. For one, you may be able to receive tax benefits for your new home purchase when it comes time to pay your income taxes. Here are some important first time home buyer information regarding your tax advantages:

    Tax advantages that homebuyers may receive:

    What is a first time home buyer credit and who can qualify? If you’re a first time homebuyer, it is important to know what tax advantages are out there because certain benefits are only available for your first home purchase. You want to keep an eye out for first time home buyer incentives offered by your local, state, and federal government. For one, you may be able to qualify for what is called a “first time homebuyer credit” when you file your tax returns. For a limited time, homebuyers who are eligible for this incentive can claim an interest-free credit of up to $7,500 by attaching a completed Form 5405 to the Form 1040 of their tax return.

    What are itemized deductions? All homeowners have the ability to deduct certain expenses that come along with owning a home.  There are a number of costs associated with buying and owning a home that qualify as itemized deductions in Schedule A of your Form 1040. As a homeowner, you will be able to deduct expenses like the interest you paid every month on your mortgage. Other expenses that can be itemized may include mortgage points purchased at the time of closing, real property taxes, as well as Private Mortgage Insurance (PMI) premiums for those who put less than 20% down on their home.

    What are home energy tax credits? As a homeowner, you can make as many improvements to your home as you want, and some of those remodels are tax deductible. Improvements made to reduce the amount of energy consumed within your home can be deducted from your federal taxes. If you are interested in making energy saving updates to your home, you want to save all of your receipts because you can receive credit for 30 percent of all the costs of qualifying improvements and products. By using a Form 5695 to claim the Residential Energy Property credit and the Residential Energy-Efficient Property credit, you can receive interest-free credit for home improvements like adding insulation, installing energy efficient exterior windows, and more.

    Other tax considerations for first-time homebuyers

    Keep in mind that you will not receive your tax benefits on the day of your home purchase. If you are buying a home in 2014, you will not be able to take advantage of your tax benefits until you file your tax return in 2015. With that said, the potential savings that you can gain will accumulate over the year before you file.

  • Buying a Fixer Upper

    Buying a fixer upper comes with some unique advantages. For one, the price point for a fixer upper will be lower than a comparable home that is in excellent shape. By paying less for a home, you can have more of an opportunity to customize and tailor it to fit your unique taste and personality. Indeed, many fixer uppers are great investments for people willing to put in the time and effort to transform a house into a home. On the flip side, some fixer upper homes might turn out to be more of a cash pit than a profitable purchase. Before you start your search for a fixer upper, here are a few questions to ask to ensure that you will get the right fixer upper for your budget, abilities, and future goals.

    Has a professional home inspector done a report on the house? 
    Some problems in a fixer upper are obvious, while others might be hidden beneath the floorboards, walls, or surfaces. Having a professional home inspector check out the house before you buy will give you a realistic idea of what kind of condition the home is in and what repairs it needs.

    How many repairs can you do on your own?
    Minor aesthetic repairs, such as removing popcorn ceilings, painting the walls, or adding a backsplash to the kitchen can often be done on your own. Expensive repair bills come when there is damage to the structural integrity of the home. These types of repairs will likely require outside help to fix. For example, if the foundation of the home is warped or severely cracked, or if there is extensive termite damage, or the roof of the house needs to be replaced, you must hire an outside contractor. Without pricing these major repairs before buying the home, you could have a higher repair bill than you anticipate.

    How much will each repair cost? 
    Once you have your list of repairs, it’s time to dig in and start researching the price of each item to fix. For aesthetic repairs, visit your local home improvement store and speak with a sales associate about how much the supplies will cost. For any repair that requires an outside contractor, request bids from local shops. You want to get a realistic idea of what your home repairs will cost to make sure that you will not go over your budget.

    • How much value can you add to the home?
    Ultimately, the goal of buying a fixer upper is to create a cozy place to live and to ensure that you will make a financially sound investment. If you find a fixer upper that you are interested in, talk to a reliable real estate agent or home appraiser about each major repair you’re planning to make so you can get a reasonable estimate of how much value you can actually add to the home. You can also take a look at other homes in the area that do not need repair to see what they’re selling for.

    Fixer upper homes require you to do your due diligence before signing on the dotted line, and revamping a home can be an exciting experience under the right circumstances. With these tips, you can start your search for a home that is right for you.

  • Tips for first-time home buyers

    For many first-time home buyers, buying a new home may result in a dream come true.  As a first-time home buyer, you probably have numerous questions and concerns. This is completely normal! While each first-time home buyer has a unique experience, there are some steps that are commonly used during most home buying experiences.

     

    Step One–Budgeting. Before you can start looking for a home, you need to figure out how much you can afford to pay each month for the home loan. Sit down and make a list of all your monthly expenses. Be sure to give yourself a buffer for emergencies and include a figure for savings. Although there are other programs available that do not have the same debt to income ratio requirement, it is a good idea not to plan on a monthly house payment that is more than one-third of your income. Keep in mind that your house payment will also include taxes and insurance as well as the principal and interest on the loan.

     

    Step Two-Down Payment. How much down payment is required will depend on various factors such as your credit history, the type of loan you qualify for, and the state you live in. It is a good idea to plan for a down payment of five percent or more; however, many states offer programs for first-time home buyers that will assist with the down payment. Some programs even pay the entire down payment for you.

     

    Step Three–Credit History. Obtain a copy of your credit history from all three major reporting bureaus. Make sure everything on the report is accurate and contest any inaccuracies. If you have any unpaid debt it may show up on your credit report. Try to pay off any current debt, close unnecessary lines of credit such as store cards, and bringing delinquencies current.

     

    Step Four–Financing. Sit down with a Better Homes and Gardens® real estate agent who specializes in helping first-time home buyers get pre-approved for financing. Note that “pre-qualified” and “pre-approved” are not the same thing. “Pre-qualified” simply means that based on information you provided a lender they think you are qualified for a loan in the amount indicated. The pre-approval process actually requires you to fill out a formal application and supply documents and proof of income and debts. If you are pre-approved then you are much closer to buying your first home.

     

    Step Five–Wish List. Before you set out to look at homes, make a needs list and a wish list. Your needs list includes things that are essential in your new home while your wish list includes things that would be great, but are not essential. Things you may wish to consider for your needs/wish lists include location, school systems, garage, number of bedrooms and bathrooms, and whether you want new construction or a fixer-upper. When you make these lists, think about how long you plan to stay in the home, how much time you have to take care of maintenance and yard work, how much time and money you have to remodel, and how important each item on the list is to you so that your Better Homes and Gardens®real estate agent will have a better idea as to what you are looking for when you start the home buying process.

    Above all else, don’t rush into the home buying process. Being a first-time home buyer should be an enjoyable and positive experience, but not one to be taken lightly. Purchasing a home is a huge commitment–likely the biggest financial commitment you will make during your lifetime. By following these simple steps, you should be able to find the home of your dreams!