Better Homes and Gardens Real Estate Life

Category: Tips for Buyers & Sellers

  • Unlock the Full Potential of Your Home Sale with the MLS

    At Better Homes and Gardens Real Estate, we know that selling your home is a big deal, and making the right choices can make all the difference, including the decision to list your home on the Multiple Listing Service (MLS). Recent research highlights why the MLS is still the go-to tool for home sellers. Here’s why you should consider it: 

    Maximum Exposure to Potential Buyers 

    Think of the MLS as the ultimate spotlight for your home. By listing on the MLS, your property gets seen by most real estate agents in your area. This means more eyes on your home and a higher chance of finding the perfect buyer quickly. 

    Access to Popular Home Search Sites 

    When you list on the MLS, your home may automatically appear on popular real estate sites. This means your property can be showcased to an even wider audience of potential buyers. More visibility usually means more offers! 

    Transparency and Trust 

    The U.S.’s MLS is the gold standard for real estate. It provides a secure and accurate database of homes for sale, which helps maintain transparency. Buyers and Sellers can trust the up-to-date information about their markets. 

    Competitive Advantage 

    Homes listed on the MLS help further a competitive and open market. Research shows that homes marketed on the MLS tend to sell for more money compared to those sold off-MLS. This competitive edge can help you get a higher sale price for your home.

    Source: Clear Cooperation: The Consumer Weights In by 1000WATT Membership 

    Professional Guidance 

    Real estate agents using the MLS have access to a treasure-trove of data and insights to help ensure you have support for all stages of a transaction including pricing and negotiating offers. 

    Reaching the Most Buyers 

    A recent consumer survey found that 73% of homeowners preferred listing their home on the MLS but this preference skyrocketed to 92% when consumers learned that off-MLS homes typically sell for less.

    Source: Clear Cooperation: The Consumer Weights In by 1000WATT Membership 

    Enhanced Marketing Opportunities 

    The MLS allows your home to be marketed through various channels, including direct distribution to other agents and public home search sites. This multi-channel approach ensures your property is seen by a diverse audience, increasing the likelihood of finding the right buyer. 

    Better for Sellers 

    Nearly all respondents in the survey (96%) believed that the American MLS system is better for sellers compared to systems without an MLS.  Listing your home on the MLS offers numerous benefits that can help you achieve a successful sale – however a seller measures success whether by a quick closing, maximum sale price or other critical terms.  At Better Homes and Gardens Real Estate, we are committed to helping you navigate the buying and selling process confidently and easily. Visit BHGRE.com to learn more about how we can assist you in your real estate journey.   

    Source: Clear Cooperation: The Consumer Weights In by 1000WATT Membership 

  • Renting vs. Buying a Home + Pros and Cons for Each

    Buying a home has long been part of the American dream, but homeownership isn’t for everyone. Sometimes, renting makes more sense and offers greater freedom.

    Have you been wondering about renting vs. buying? Choosing whether to invest in a home or pay rent is a big decision that depends on your finances, lifestyle, and personal goals.

    One isn’t inherently better than the other. Both require an income to afford housing payments unless you have enough money on hand for an all-cash purchase, but even then, you need to consider your overall financial picture. Renting and buying come with various degrees of maintenance responsibility and commitment.

    Whether renting or buying is right for you depends on your current situation and an honest look at where you think you’ll be years later.

    So, use our guide to renting vs. buying and consider the pros and cons for each. Then, remember that we can’t make a perfect choice, but we should be wise enough to carefully weigh all our options.

    Renting a Home 

    Renting a home offers flexibility. There’ll typically be someone else to tend to maintenance issues. You’ll probably have predictable monthly expenses, so you can likely count on extra cash in your budget. However, many rentals require you to adhere to a list of community and individual unit rules (e.g., your landlord might not be flexible if you want to paint your bedroom bright pink).

    When you rent, you’re not necessarily throwing money away (you have to pay to live somewhere, even if you buy), but you’re not building wealth either. Here are some pros and cons for renting a home.

    Pros 

    Many people find immense benefits to renting. The following are reasons why you might want to rent your next house.

    • Flexibility. You can probably move quickly if you need to (as long as you’re not in a lease or are willing to pay to break your lease)

    • Predictable housing payment. Your housing costs (including utilities) may be consistent each month since you won’t have to factor in repairs and other expenses.

    • Low maintenance. You’ll likely have a landlord or property manager who will handle major maintenance tasks (but be prepared to change your own lightbulbs or fix minor problems).

    • No property taxes. The owner of your rental is responsible for paying taxes on the property.

    • Less strict financial standards. Getting approved for a rental unit is often much easier than qualifying for a home mortgage.

    Cons 

    Renting can seem like the best option if you don’t want to deal with surprise expenses or repairs, but there are some drawbacks.

    • Rent increases. Landlords can raise your rent after your lease expires, especially in areas with high housing demand.

    • Possibility of a property sale. The owner of your rental may decide to sell the property, especially during times of rising home values, leaving you looking for a new place to live.

    • No tax benefits. You won’t get to claim homeowner deductions on your taxes.

    • Limited personalization. When you rent, you usually can’t do what you want with the home (no building your dream kitchen or entertainer’s backyard, in most cases).

    Owning a Home 

    When you own your home, you get to make decisions about what to do with almost all aspects of your property (condos, townhouses, and other properties with homeowners associations may significantly limite your freedom). But you’re the one responsible when something goes wrong too. Purchasing your next house can provide pride of ownership—a place to truly call your own. However, picking up and leaving may be diifficult if you change your mind, have a job transfer, or experience an emergency that uproots you.

    Pros 

    Is owning a home right for you? There are benefits to purchasing, including the following.

    • Sense of stability and community. Owning can offer more assurance that you’ll enjoy the fruits of a neighborhood for an extended period.

    • Builds equity. Most real estate increases in value over time.

    • It’s yours to improve. Decorate, renovate, and add on as your heart desires.

    • Tax benefits. Homeowners can claim a mortgage interest deduction on their taxes.

    Cons 

    Wondering what might not be in your best interest when it comes to owning a home? Here are some reasons you might want to give homeownership a second thought.

    • Responsible for maintenance. As a homeowner, you’ll have to tend to all repairs (or hire someone) and bear the cost of all maintenance.

    • Requires a sizeable financial commitment. You’ll have long-term expenses like property taxes and homeowners insurance, along with a hefty initial investment (including a down payment and loan closing costs).

    • Property value may decrease. While most real estate increases in value, you might lose your equity in the property.

    • Difficult to change your mind. It’s not easy to pick up and move if you change your mind about where you want to live or if life’s circumstances call you elsewhere.

    Still not sure if you should rent or buy? Ask yourself the following questions to help make the decision easier.

    • How long do I plan to live in the area?

    • What are my finances like?

    • What is the state of the housing market?

    • How does my job factor into this choice?

    • What are the costs of renting vs. owning this particular property?

    Are you looking to sell or buy a new home? Let Better Homes & Gardens Real Estate® walk you through the process.

  • How to Decide Where to Live: 10 Questions to Ask Before You Move

    Choosing a new city or town to live in is a big decision that involves many factors. Whether you’re looking for a home to rent or buy, you’ll be placing your money on the line when you move, investing in what will hopefully be a happy future.

    In addition to monetary concerns, convenience and peace of mind will come into play when moving. So, before you jump into a new neighborhood, take time to see if it meets your expectations in terms of the kind of life you’re looking for.

    Here are 10 questions to ask before you make your next move.

    1. Is the area close enough to important people and places in my life?

    Consider the people you want to see most often. Is your potential new home close enough where you can grab coffee or lunch together, or meet for other gatherings? What about your doctor’s office or kids’ school? Work and place of worship? The people and places we spend most of our time at should be near enough that we don’t need to disrupt our day and life when frequenting them.

    2. Is the city or town too close to what I want to avoid?

    Do you despise traffic, loud noises, paid street parking, and miles and miles of concrete? The situations, scenarios, and scenery you want to avoid should ideally be far from your home. So, as you decide where to move, consider the proximity of everything. Make a note of fire stations, late-night pubs, busy roads, commerce centers, and transit stops. If these kinds of things excite you, take up residence nearby. If not, choose another location.

    3. Will this place make it easy for me to work?

    If you’re looking for a new job in your new city, research the job there market first. Are positions available for what you currently do? If you’re starting a new business, is there demand for your product or service – and are taxes and policies business-friendly? Keeping your current job? What will the commute be like? These are all important questions to ask when deciding where to live.

    4. How much will it cost to live there?

    In addition to researching home prices in an area you’re considering moving to, check out the cost of living. What types of charges will you typically incur in your potential new city? There could be parking fees, road tolls, or business fees. You might find that some cities generally have higher gas and groceries costs and higher prices at restaurants and service-oriented businesses. Remember to factor in how much you’ll spend getting to work or going places you enjoy.

    5. How much control will I have over what I can do to my property?

    If you’re looking for a home you can almost entirely make your own, you probably don’t want to choose a house with a homeowners association (HOA). HOAs typically have strict rules on what you can and can’t do to your property. But, if you’re happy with a generally well-kept home with communal benefits, this situation might be perfect for you.

    6. How walkable is the area?

    Do you like to minimize the time you spend in your car? If so, look for a walkable city close to grocery stores, cafes, entertainment, and public services like schools and parks. Are space and privacy important to you? If you answer yes, you might not care so much about a city’s walkability but instead place value on remoteness.

    7. Is there green space and nature close by?

    Studies show that exposing yourself to green spaces and nature has many health benefits. So, if you want to be healthy, ensure you can access open green spaces and natural surroundings within an easy walk or commute. If you have a dog, enjoy hiking, or like spending time outdoors, don’t overlook the importance of parks and wilderness in your potential new city.

    In addition to these questions to ask yourself when deciding where to move, consider the following.

    8. What kind of climate can I expect?

    Do you love four seasons or enjoy a more temperate climate?

    9. Does the city or town meet my safety and security needs?

    Your safety and security needs will revolve around whether you have children or pets or live alone.

    10. How important is it that I feel a sense of community?

    What community centers or groups are close by? Does the city hold seasonal events or fun gatherings?

    Are you looking to sell or buy a new home? Let Better Homes & Gardens Real Estate® walk you through every step in the process.

  • How to Refresh Your Home for a Quick Sell

    Are you planning to sell your home but unsure what repairs or updates to make before you list? While it’s wise to tend to fixes and upgrades prior to putting your home on the market, you need to think carefully about what to makeover if you want to attract buyers and get the most money from your sale.

    Experts agree that checking comparative properties and considering your return on investment is an excellent initial step in deciding how to refresh your home for a quick sell. Since every home seller has different circumstances, we’ve compiled a list of general guidelines to help you figure out what you might want to renovate.

    Here are some of the fastest and most affordable ways to update your home for a quick sell in the new year.

    Freshen Up Paint

    Real estate agents frequently advise clients to paint their homes before they sell. Scratches, scuffs, chips, and peeling areas accumulate over the years, and while the homeowner may not notice them, buyers typically do. Additionally, many homes’ paint colors are faded, outdated, and unattractive to modern buyers. You don’t have to have a huge renovation budget to invest in a new coat of interior or exterior paint. If money is tight, find a good and affordable one-coat paint and then choose a neutral color to create a blank canvas for buyers. Freshly painted properties often sell quicker and command top dollar.

    Declutter

    Cluttered homes tend to look disorganized and unkept, and they can prevent a buyer from seeing a property’s full potential. Decluttering, therefore, is one of the most effective refreshes you can make before you sell and it’s one of the cheapest. To declutter your home and turn it into a space that buyers can envision as their own, go from room to room, eliminating anything unnecessary. Store, give, or throw away knickknacks, furniture, and other personal belongings that you don’t use or that don’t add to the picture you want to paint for a future buyer. Think about model homes you’ve been in or staged rooms you’ve seen in magazines. This is the image you need to present to buyers if you want to sell your home fast. Don’t forget to declutter drawers, cupboards, and closets and organize what’s left.

    Maximize Curb Appeal

    Maximize your home’s curb appeal if you want to sell quickly. You can get a realistic look at how your property’s exterior appears to potential buyers by walking the route leading from the street to your front door. Stand from a distance and inspect your house numbers, mailbox, garage door, gutters, walkway or entry steps, porch or deck, and front door. Pay close attention to landscaping, exterior lighting, railings, and fixtures like door knobs and doorbells. Does anything need to be fixed or refreshed? How can you make your home stand out from the crowd, either in cleanliness or design?

    Update Window Treatments

    New window treatments make a massive difference in how a home presents to potential buyers. Old, antiquated, and torn or broken blinds, curtains, and shades can make an otherwise acceptable property look outdated and even like a fixer-upper. For a small investment, you can update your window treatments to modern versions that help brighten a room and delight buyers. When choosing new window coverings, consider options that allow privacy while letting natural light in. Also, take note of the new smart designs with high-tech and hands-off controls for ease and efficiency.

    Remodel Your Kitchen

    Remodeling a kitchen returns 98.5% of a homeowner’s investment and promotes a quick sell. Even if you don’t want to or can’t do an extensive kitchen makeover, consider a minor refresh with a new backsplash, coat of cabinet paint, hardware set, major appliance, or statement light fixture. New kitchen tile can make the difference between a dated space and a modern room that’s ready for a new buyer.

    Focus on Fixtures

    Great lighting makes a massive impact and produces a ‘wow’ factor that can convince buyers your home is what they’re looking for. Today’s lighting trends include textured and subtle pendant lights, hidden lights, and mixed-metal fixtures. When refreshing the lighting in your home, remember to ensure all bulbs match. Additionally, for a fast sell, focus on refreshing door knobs, electrical outlets, cabinet hardware, and faucets. Replace any that are dented, scratched, not working, or past their prime in appearance in any way.

    Ready to start prepping your home for a quick sale this year? Let Better Homes & Gardens Real Estate® help.

  • Budget-Friendly New Year’s Renovations to Boost Your Home’s Value

    Whether you’ve moved into a new home and want to make it your own in the new year or are readying your property for sale, you can make some budget-friendly renovations to boost value instantly.

    Turning a recently purchased property into a dream home or getting more money from the one you’re leaving starts with making wise decisions about makeovers and upgrades.

    The key to choosing what to remodel first, or at all, is often a personal preference but can lie largely on what future buyers want. It should also depend, however, on careful consideration of the return you’ll get on your remodeling investment. And, since renovations always come with a cost, a detailed look at the money you have available is important when deciding what home improvement job to tackle.

    If you’re a homeowner who needs to be budget-conscious when taking on renovations, look to the following for inexpensive projects to start the new year.

    Add Exterior Lighting

    Landscape or exterior lighting might seem like a costly renovation, but there are many low-voltage lighting systems that homeowners can install themselves to forgo electron costs. Consider the abundance of DIY solar and smart lighting kits on the market. Or the easy-to-install and affordable deck lights or exterior wall sconces. Outdoor lighting adds a level of safety to a home and enhances its architectural features when thoughtfully planned, boosting value.

    Paint Inside and Out

    A fresh coat of paint is one of the best ways to quickly spike your home’s value. Paint instantly transforms and updates a property’s interior and exterior. Considering the average cost of a gallon of one-coat paint is roughly $38, you can see a tremendous visual gain for a relatively small investment. Neutral paint colors are on trend year after year as they provide a blank canvas for homeowners to create the look they envision within nearly any design style.

    Replace Your Entry Door

    Adding a new steel or fiberglass door bolsters home security and adds to a property’s resale value. It can provide homeowners with greater privacy, makes an excellent first impression, and is likely to recoup 85% of its cost upon the sale of a home.

    Upgrade the Garage Door

    Replacing a garage door is a fantastic way to improve a home’s curb appeal. For roughly $4,302 (the average price of a new garage door), you can increase your home’s resale value by $4,418 with this budget-friendly renovation. A garage door replacement is one of the few home improvement projects that typically lets you get your money back and then some when it’s time to sell.

    Add Siding or a Stone Veneer

    Depending on its use, stone veneer can impart a classic or modern vibe. Whatever your design style, you’ll probably find that improving your home’s exterior with a stone veneer – even on just part of it – can make the difference between boring and beautiful. Likewise, new siding can instantly boost a home’s visual appeal, and appraisers often look at the structural benefit of siding when determining a home’s value.

    Install Smart Home Technology

    Installing smart home technology quickly modernizes a home for little cost. It’s a great way to get more enjoyment from a property and make it more efficient and safe. The best smart home devices to boost value include connected lights, sprinkler systems, water leak detectors, appliances, window treatments, and security cameras.

    Make Small Fixes

    Sometimes, the littlest things make the biggest impact. Don’t overlook the value of new doorknobs, electrical outlets and covers, faucets, screens, and cabinet hardware on your home. For a minor cost, you can significantly upgrade your property’s exterior and interior and boost its worth.

    Add Low-Cost Landscaping

    Low-cost landscaping, such as colorful shrubs and trees and water-wise plants and gardens, are easy on the average homeowner’s budget while adding anywhere from 5% to 12% to a home’s value (depending on property location). Nearly every landscaping expert advises planting trees, which can add up to $9,000 in value. Drought-friendly and sustainable yards are cheap to design and save homeowners money in the long run by reducing energy costs.

    Lay New Floors

    Homes with old rugs and torn linoleum quickly get a value upgrade with a flooring replacement. Laminate floors that look like hardwood are popular among homeowners because they’re budget-friendly and beautiful. Cork, carpet, and ceramic tiles are great options to instantly bring style and appeal to an outdated property.

    Are you looking to buy and renovate a new home in the near year or update yours and sell it? Let Better Homes & Gardens Real Estate® help you when you’re ready.

  • Market to Market

    Here’s what Better Homes and Gardens Real Estate agents across the country are seeing in local markets.

    Based on the article “Owning It” in Better Homes & Gardens magazine, October 2023 issue.

    Will Palmer
    THOMASVILLE, GA
    “Homeowners should ask themselves: Are we doing the home improvement project for ourselves or are we doing it for resale? These are two vastly different things. If the seller is doing projects to sell the home—smaller projects like painting or freshened entries or porches—the reward will be almost immediate. Seller need to pick materials and projects that appeal to everyone and keep in mind they are doing it for return on investment, not for themselves.”

    Dot Frank
    BISMARCK, N D
    “Although house hunters should invest plenty of time ensuring a home’s foundation, appliances, shingles, and windows are in working order, it’s easier to get excited about pretty fixtures, contemporary paint colors, and modern flooring. If your home’s structure and systems are solid, turn your attention to the lowcost items that turn heads and offer a high return on investment, like fixtures, paint, and flooring. Projects that result in the lowest return are often those that are personal and involve continued maintenance, such as sunrooms or pools. Busy wallpaper and trendy tile also can cause buyers to bemoan the work they envision to remove and replace it.”

    Carol M. Buchanan
    WARWICK, N Y
    “My general rule is this: Put as little money as possible into getting your home ready to go on the market. If you replace all the carpet in the house, costing you several thousand dollars, realize the buyer may pull everything out and install wood floors. Your cabinet choice in the kitchen may not be a buyer’s taste either, so you don’t want to go to that expense.”

    Sunday Nguyen
    BERKELEY, CA
    “What excites buyers right now are turnkey homes with wood finishes, grand living rooms, office space for working from home, and walk-in closets. Beyond that, replacing fixtures (such as faucets, interior door handles and hinges, and wall/ ceiling LED lights) and improving curb appeal through landscaping can increase a home’s value and attractiveness to potential buyers.”

    Crystal Ledbetter
    CARY, N C
    “Most garage doors are front facing and can add or diminish curb appeal. Invest in a beautiful one. When you’re ready to sell, a deep professional cleaning is advised. I wouldn’t remodel right before selling; leave that for the new owners.”

    Randy Kennedy
    CELEBRATION, FL
    “A homeowner should look at their neighborhood before beginning a huge remodel. You don’t want to have the fanciest house in the neighborhood. Insurance companies in Florida now look at the age of the water heater and will make you replace that sooner than later. They will not insure a roof over 15 years old either. Many times, these items become financial concessions at closing. Also very few of my buyers like carpet, and most are suspicious of HVAC systems over 10 years old.”

     

     

     

     

     

     

     

     

    Remodel for yourself, not to sell your house. If you take on a project in order to sell, you’ll rarely get your money out of it. Making improvements benefits the buyer, not the seller.
    —CLAIRE WARREN, BHG real estate agent in Houston

    Sal Rondinelli
    CHARLOTTE, NC
    “The best returns on curb appeal come from professionally designed landscaping, as the average homeowner may be tempted to overcrowd small spaces or not create enough visual impact with large spaces. Beyond that, affordability excites buyers now. Great values reign supreme. Updated kitchens and bathrooms, energy-efficient appliances, and smart home technologies are attractive to buyers. Before remodeling a basement, make sure you understand the moisture levels in your house. You may need a professional to seal the area and install systems to keep the moisture down before you ever begin putting up walls.”

  • Homebuying 101: Mortgage Approval

    Getting mortgage approval is inevitable for most homebuyers unless you pay cash. A mortgage pre-approval letter is a powerful way to get an edge in a bidding war. Plus, mortgage pre-qualification lets buyers know how much house they can afford. Discover how to get through a successful mortgage approval, one of the most crucial steps in the homebuying process.

    Consult with a Mortgage Lender First

    Eager homebuyers may feel tempted to attend open houses before obtaining a mortgage. However, most sellers expect qualified buyers to receive a lender pre-approval letter. Therefore, the first step to housing success is meeting with a mortgage lender. Your real estate agent can often refer you to reliable resources based on your unique circumstances. Always be honest, so you have the groundwork for turning your situation into approval.

    Pre-Qualification vs. Pre-Approval

    Often buyers use online loan calculators to see how much money can borrow. While these are helpful tools, they are meant to provide information rather than approval. Usually, a soft credit check is required for pre-qualification, while a hard credit check is necessary for pre-approval. Many factors, such as your current credit score and time at employment, play a role in the approval process. Only a formal letter from your lender stating the mortgage approval amount proves you’re a qualified buyer.

    Time to Shop Around

    Once you understand the differences between pre-qualification and pre-approval, it’s time to shop around for the best lender. Some lenders may offer better rates and terms than others, depending on your creditworthiness and resources. If you don’t get immediate approval or the rates are high, work with your real estate agent and financial advisor to find a viable lender who works with buyers in your circumstances. Additionally, some borrowers get pre-approval with conditions that must be met before qualifying for a mortgage loan.

    Start With a Budget

    While mortgage qualification and approval indicate how much house you can afford, budgeting is crucial to maintaining this asset. A home is often the most significant investment of a lifetime. Though you may qualify to buy a house up to a specific amount, consider expenses such as taxes, homeowners’ insurance, mortgage insurance, and home maintenance. Then think about your monthly budget and how much you want to pay for a monthly mortgage. Some buyers decide to get a lower-priced home to ensure they can afford it. Ideally, your housing payment should be about 25 percent of your monthly income.

    What Should I Expect for Mortgage Pre-Approval?

    A mortgage pre-approval requires a hard credit check, and borrowers often must provide documentation to prove certain financial information. For example, lenders typically look at your credit history, income, employment history, and FICO score. Also, lenders consider your debt-to-income (DTI) ratio and the loan-to-value (LTV) ratio on a potential home for sale. As a result, an appraisal is ordered on the house you want to buy to ensure you don’t pay more for the home than it is worth. Finally, the lender also considers the home’s condition and works with a title company to confirm ownership of the house and verify there are no claims or liens against it before issuing a formal mortgage pre-approval letter.

    How Do I Get Mortgage Pre-Approval?

    Lenders will look at your finances and expect the documentation to prove the numbers, such as:

    • Employment verification
    • Personal identification
    • Proof of income, including child support, disability, and other payments
    • Credit history, often a score of 600 or higher is required, with some exceptions
    • Proof of assets, including bank accounts, property, and vehicle
    • Debt-to-income ratio (DTI) to show you have the income to cover all financial obligations
    • Bank statements for the past sixty days
    • Recent pay stubs
    • W-2 statements
    • Social security number
    • Tax returns and Schedule K-1 (Form 1065) for the previous two years, especially for those who are self-employed, who may also need to supply a profit and loss statement
    • Divorce papers, if applicable
    • Death certificate, if applicable, such as a widowed spouse applying for a VA mortgage
    • A gift letter, if all or part of the downpayment is a gift

    Once you submit this evidence to the lender, it takes up to three business days to get your loan estimate and determine whether you are pre-approved for a mortgage. Depending on the mortgage loan, the downpayment may be between zero and twenty percent of the property price. Usually, a pre-approval lasts for one to six months, which gives you enough time to find your dream home. Always check the expiration date to avoid going through this process again.

    What if I Don’t Get Pre-Approval?

    Some borrowers may be declined by several lenders. Instead of getting frustrated, use the process to determine if financial areas need improvement. For example, paying down debt and saving for a larger down payment could mean the difference between mortgage approval and denial. Determined buyers often change their circumstances within months or a year to get into the right situation to purchase a house.

    What is the Difference Between Pre-Approval and Final Mortgage Approval?

    A pre-approval letter proves to sellers you are a qualified buyer. A pre-approval can put you ahead of other buyers making an offer in a hectic housing market. Once you make an offer on a home, the formal mortgage approval process begins. First, a home inspection is scheduled to ensure the house is in the proper condition to qualify for a mortgage loan. An appraisal is also done to verify that the house is worth your price. Then the underwriting process begins when your lender verifies your income, debts, and assets to qualify for a loan. If the lender contacts you for more information or documents, respond quickly to ensure you close the deal. Once the formal mortgage approval is issued, you’re ready to schedule a closing.

    The homebuying process starts with a dream and mortgage approval. Knowing how much house you can afford makes it easier to shop around and make an offer. With some financial planning, you’ll soon enjoy the advantages of homeownership!

  • Seven Ways to Eliminate Stress During a Move

    Relocating is an exciting and busy time, filled with important things to remember. However, even the best-managed homes require attention to detail during a relocation. Discover seven ways to eliminate stress during a move to enjoy your new place.

    Embrace the Changes

    Trying to keep everything as regular and routine as possible during a move is tempting. However, change is inevitable when you leave a familiar place to live in a new one. Embracing the changes helps make moving easier. For example, list the things you want to do when you relocate. Thinking about the fun stuff ahead helps you stay motivated during the tiring moving days. Also, create a small area where you can unwind and relax at the end of the day. Even if the rest of the house is in chaos, you’ll have a sanctuary to escape the stress for a while.

    Remember Self Care

    Often self-care is forgotten for weeks or months during a hectic relocation because people feel guilty taking time out when there’s so much to accomplish. However, all work and no downtime is a sure recipe for stress. Take time to exercise, which releases stress-relieving endorphins and helps you stay limber for the lifting ahead. If you can’t fit exercise into the day, take a few minutes for meditation, stretching, and deep breathing. Allow yourself an hour or two to appreciate your favorite leisure activities, such as reading, fishing, or painting. Taking a break also gives you more energy when you return to your moving responsibilities. Finally, always remember to get enough sleep every night to be rested and ready for action.

    It Takes a Village

    Relocation requires the assistance of several professionals to get through the process successfully. Always ask for help every step of the way, so you can continue to move forward. Also, have a power relocation team on-call to assist you, including an attorney, real estate agent, accountant, cleaning service, handyperson, and moving company. If you rent a moving truck, recruit your friends and family to help you – there’s always more work than you anticipate! Also, keep plenty of water and snacks handy to recharge as everyone works.

    Keep Important Documents Handy and Safe

    Relocating requires documentation to close old accounts and open new ones. Your identification and other crucial paperwork will likely be necessary countless times during relocation. Keep essential documents handy and safe so you have instant access as needed. Consider renting a safety deposit box or creating a quiet corner at home to remain organized throughout the changes.

    Make Sure Time is On Your Side

    When it comes to relocating, keeping track of time helps eliminate stress. Also, most tasks require more time than you might think before getting started. Plus, you need to account for interruptions, struggles, and other unexpected happenings. Always set aside extra time to complete moving projects so you don’t feel rushed or overwhelmed. If the work takes less time, you’ll gain a few much-needed moments to rejuvenate.

    Plan to Say Goodbye

    Saying goodbye is often difficult, but planning will eliminate stress. Make plans to see friends, family, and neighbors before your moving date. Trying to see everyone in a day or two becomes impossible, especially with countless moving tasks to tackle. Plus, making plans reduces the number of people who stop by unexpectedly and causes a break in your moving routine.

    Be Ready to Say Hello

    Moving into a new home is exciting but can also be stressful. Try to visit your community before relocating to familiarize yourself with the surroundings. Use sites such as Google Maps, Yelp, and Facebook social groups to get a feel for the area and find places you want to check out. While moving in is also hectic, slow down to introduce yourself and say hello to your new neighbors. A smile and friendly face go a long way as you assimilate into your new location.

    Relocating can be the start of a wonderful new life in another location. Knowing how to eliminate stress makes the transition easier and gives you enough energy to enjoy your new home!

  • Tips to Keep Your Life and Financial House in Order During a Relocation and Move

    Keeping up with bills and daily chores is challenging when already settled in one place. In addition, staying ahead of everything during relocation and moving can become increasingly difficult. Learn clever tips to keep your life and financial house in order as your transition to a new home.

    Life is a Switch

    Relocation is a significant life change, and you must be well-prepared for it. For example, taking care of business at your old home prepares you to move to the new one.

    Make a List and Check It Twice

    Create a moving checklist of to-do items and keep it handy throughout the move. If you maintain the list digitally, have a paper copy around if you can’t access the Internet while moving. Include everything you need to accomplish for a successful transition, including packing, transferring licenses, and paying bills at the old and new locations.

    Get Organized

    Don’t wait until the last minute to clean out and get organized. Visit the local liquor stores and grocers to get free boxes to gather items together. Organize items by room and colored labels. For example, pack kitchen items in containers with orange labels to show where they belong in your new location.

    Keep Important Documents and Items Safe

    Searching for documentation is time-consuming and frustrating during the confusion of moving. Plus, you will likely need paperwork to make a seamless transition. Keep all necessary documents and items, such as precious jewelry, in a safe place. Consider investing in a safe or locked file cabinet. Another option is to rent a safety deposit box at the bank monthly. If you rent a safety deposit box, find out the hours of access to ensure you can get what you need when you need it.

    man talking on the phone and looking at a computer screen

    Make Moving Plans

    Are you hiring a moving company or renting a truck to do it yourself? Decide how you want to move and schedule the movers and van ahead of time. If you have friends or family helping, budget for soda and snacks to keep them going through the move. Also, remember how you will move vehicles and boats, so you can schedule drivers if necessary.

    Clean Up Last

    Trying to clean as you go is often a waste of time, as everything gets messy during a move. Instead, sweep up the debris and continue packing until the rooms are cleared. It is easier to clean your old house when it’s empty. Also, an unoccupied home is typically less expensive to clean if you hire a professional cleaning service to give you a break.

    Check the Other Side

    Is your new house ready for you? Take time to check out the new place before leaving your old one. Usually, a home is delivered broom-clean and empty so that you can move your stuff in right away. If you cannot visit the new house, ask your real estate agent to check the situation to ensure everything is ready to go.

    Financial House Before Your New Home

    Getting your financial house in order before moving to a new home is crucial to your future success. Know where your money is going so you feel comfortable in your next location.

    Maintain a Financial Planner

    Financing planning is critical to a successful relocation. Work with a team of professionals to get your finances in order, including an accountant, attorney, and mortgage banker. Your real estate agent can often recommend a helpful team if you don’t currently have representation. Make sure you are pre-approved for a mortgage before shopping for your new house. Also, have your financial planning journal to stay on top of money matters. Finally, consider using an app such as Mint.com to track your finances.

    Know Current and Future Expenses

    Remember that your current expenses might not be the same as your future ones. Research the cost of essentials such as insurance, utilities, licenses, and memberships in your new neighborhood, so you are ready to pay them.

    Clear Up Unpaid Bills

    Start paying off outstanding bills a few weeks before moving. Remember there will be utilities and other expenses to cover at the new home. Try clearing up unpaid bills before you leave to avoid paying double costs once you relocate.

    Know Your Credit Score

    After relocation, you may want to apply for memberships and credit in your new neighborhood. Keep track of your credit score to ensure all bills are paid during the hectic moving days and maintain good credit for when you move. Also, it is free to request your credit reports through an app such as CreditKarma.com that can help with credit building, if necessary.

    Keep Track of Installment and Recurring Payments

    From car payments and movie services to gym memberships, most people have several installment and recurring payments to track. Be aware of the dates payments come out of your accounts to ensure you always have enough to cover expenses during the move.

    Save Money

    While saving money during a move might seem impossible, unexpected costs always arise during the journey. Therefore, save as much as possible the months before moving to have a reserve fund for emergencies.

    Job and Professional License Transfers

    Some people relocate for a job, while others must find employment in a new location. Prepare to make job transitions several weeks before moving. If you have professional licenses, find out the rules for establishing your profession in the following place and take the necessary steps, so you have no lapses in employment.

    Research the Cost of Living

    Finally, living costs in one location may not be the same as in another. Always research the general cost of living in your new house to ensure you are well-prepared to cover expenses such as insurance, utilities, and groceries. Also, use a service such as Google Maps to determine the location of important places such as banks, shopping centers, and hospitals.

    Starting Your New Life

    Once you relocate, it’s time to start your new life in another place. A few simple activities can help you feel at home in a new location.

    woman taking things out of a box

    Unpack and Donate

    Schedule time to unpack and set up the new house before returning to work. As you unpack, put aside items that no longer fit into your new life. Use a service such as Craiglist.com to sell unwanted things of value. Show you’re a community-minded person by donating the rest, including moving boxes and packing tape. Consider a site such as FreeCycle.com, where you can post free items and meet people in your new community.

    Register for School, Library, and Community Venues

    Before settling in, register for essential services such as school, library, houses of worship, and other community values. Do you work out at the gym or belong to a professional organization? Find out where to do these activities in your new neighborhood so that you can continue uninterrupted.

    Update Licenses and Insurance

    If you move out of state, you will need a new driver and professional licenses. Also, insurance policies and rates differ based on your location. Contact the insurance companies or your insurance agent to make necessary updates.

    Connect with New Services

    One of the best ways to assimilate into a new location is by connecting with service providers. Research landscapers, cleaning services, contractors, and other essential service providers to maintain your comfortable lifestyle.

    Find Local Medical Providers

    If you take medications, verify your medical records and prescriptions are transferred to a pharmacy and doctor in your new neighborhood. Also, confirm your new medical providers accept your health insurance and are taking new patients. Often it helps to visit the doctors’ offices or call them to make an educated decision. Another option is using a site such as HealthGrades.com to learn more about local medical providers.

    Dive Into Your New Community

    Moving is busy, and you can get caught up in the fast pace of relocating. Take time to breathe, meditate, stretch, and appreciate your new surroundings. Join local social media groups and visit popular gathering sites in the neighborhood, so you’re ready to be part of the action!

    A relocation and move are one of your life’s most exciting and important times. Use these tips to keep your life and financial house in order as you prepare to move into your new dream home!

  • How to Deal with Contract Contingencies

    Nearly every real estate contract contains contingencies. How you deal with a real estate contract contingency might make or break the sale of your home. Some contingencies are easier to deal with than others, of course. Generally speaking, the faster you can fix the issues or make the accommodations stipulated in your real estate contract, the sooner your home can be sold.

    What is a Real Estate Contract Contingency?

    A real estate contract contingency is any condition outlined in the contract that must be met prior to the sale of a home. These stipulations exist to protect both buyers and sellers. If any of these conditions are not met, the contract would be void and the sale might not be able to move forward.

     Common real estate contingencies include mortgage contingencies, which state that a mortgage loan must exist for the contract to move forward, and a home inspection contingency, which protects the buyer by requiring the house to be checked by a certified home inspector before the sale can move forward. In the case of a mortgage contingency, the stipulation is removed from the contract as soon as the loan is obtained. If a buyer cannot obtain a loan, they are usually able to gracefully exit the pending contract without penalty.

    For a contingency like the home inspection requirement, once documentation of the check is obtained, the contract can proceed. If the home inspection finds faulty wiring, pests, structural damage, or other major problems with the property, the buyer can exit the contract without penalty. In this instance, the buyer would also receive any deposits or earnest money back. Alternatively, the buyer can request that repairs be made at the expense of the seller. If the seller does not wish to proceed and make the repairs, they can choose to void the contract. This again necessitates a return of all of the buyer’s deposits.

    Another contingency that is often placed in a real estate contract involves the sale of the buyer’s current home. This stipulates that the buyer has a certain amount of time to sell their current home before purchasing a new one. If the home does not sell during that set period of time, the contract is voided. This protects the buyer from a scenario wherein they have to purchase a home they’re under contract for while they still have a mortgage on or equity in an old property. In a cash-poor situation like this, many buyers would not be able to obtain a mortgage or pay all-cash for a home, regardless.

    Dealing with Contract Contingencies

    As the seller, it’s important to have a real estate agent and attorney you can trust. These parties may review your contract with you and point out any contingencies that could prove problematic to you. If you know, for instance, that the home you are selling needs a new roof, chances are good you’d have to disclose it anyway.

    However, under those circumstances, it’s important that a contingency for home inspection be worded properly and allow for the buyer to take possession of the home and then make their own repairs, in exchange for a lowered purchase price. This sort of phrasing can be critical if you’re a seller with a timeline for leaving your current property. You may not be able to wait to vet roofers and make the repairs yourself.

    Similarly, if you are willing to accept an all-cash offer for a home so that you can move on more quickly, you should verify with your real estate agent that the contract is not contingent on the buyer having a mortgage loan in hand. There are unique issues that arise in all-cash deals, but if you are comfortable with that sort of arrangement, your contract will need to reflect it.

    Most real estate contracts are fairly standard, but it’s always possible you are dealing with an inexperienced or even unscrupulous buyer and buyer’s agent. For this reason, and to protect your best interests in general, you should carefully review any contract you are considering signing. After all, it’s much easier to walk away before you have signed something than to have to find a way out of an executed contract later.