Your first home purchase is exciting, but it can also be stressful. Here are some tips to limit the trauma and help you find the home of your dreams the first time around.
The most important step in selecting a home is knowing how much you can spend. If you already use an electronic budgeting system, you’re ahead of the game. If not, track your expenses for the past several months to a year. Try to quantify the “gray areas” of cash withdrawals that disappear on small purchases. Now add up your current rent and other related expenses. If you’ve been saving money toward your down payment, note that, as well. Finally, ask yourself where you can tighten your belt with your existing discretionary purchases. This is the maximum amount you could pay per month. Now ask yourself if this is reasonable, given your current savings and possible expenses. Only you know the answer to that. When you’ve arrived at a comfortable number, write it down, and save your calculations. You’ll take this to the bank when you apply for loan preapproval. For now, you have an estimated payment you can use while shopping online. Continue reading →
If you put less than 15% down on a recent purchase, there’s a good chance that you owe more than your property’s current value. It’s a tough spot to be in—and tougher if you want to sell. But despite the risks, there are legitimate reasons to consider negative-equity sales. If you’re considering selling in the red, here are three simple rules to follow to keep as much money as possible in your pocket.
Rule 1: Consider Renting
Before you sell, think about renting. Relocating to a new home while renting your current home isn’t for everyone, but it might work for you. To determine whether it might, evaluate three key factors: Continue reading →
Representing yourself can be a lonely, expensive road.
It’s 2012. You can find nearly anything and anyone on the Internet. Do you really still need a to put an agent in the middle of your real estate transaction? What’s to stop you from finding a home online, going straight to the source, and saving yourself a few percent on the commission?
Nothing at all. But before you decide to buy or sell a house without an agent, take this to heart: You’ll probably lose money on the deal. A lot of it. We’ll repeat that for emphasis. Even if you save on commission, you’ll probably lose money in the end. Why? For the same reason you don’t represent yourself in court, or fix your own transmission. You’re not an expert.
There’s nothing shameful about that. No one can be an expert in everything. You should certainly educate yourself as much as possible about your market (it’s your house, after all), but you don’t spend all day, every day working in the field. You may have researched comparable homes in your area, but you don’t know what other buyers and sellers are thinking. You don’t know what’s hot, what’s not, and what other opportunities might be steering prices up or down. Continue reading →
Fires, floods, and other disasters can strike at any time. Are you sure your insurance covers everything?
A house is not just your biggest investment–it’s your home. Homes provide safety, security, and continuity, and no one wants to think about the worst that can happen to them. But fires, floods, theft, and other dangers are real, and protecting your home is more than a legal responsibility. It’s the smartest move you can make.
Here are 7 tips for getting the most out of your homeowners insurance for the smallest premium.
1. Research Early and Often
Shop around. Too many homebuyers treat insurance as an afterthought and go with the first policy they find. They might get lucky, but chances are, they’re paying too much or covering too little. Insurance is critical to your long-term happiness, and it can be a substantial part of your monthly home-related expenses. The more research you do, the greater the odds that you’ll find a policy that fits your needs and your wallet. Continue reading →
Even with solid research, long-distance homebuying will probably require multiple trips.
With intense variation in properties values across the country and an explosion in entails, the prospect of buying a home far from your current address are looking up. Any home purchase can be stressful, but trying to manage the selection and processing from afar can bring even the most experienced real estate pro to tears. Here are some tips to help you find your home away from home without losing your mind or your money.
1. Perform background research
What works for most may not work for you. Austin is fantastic–if you’re OK with muggy summers. Portland is amazing–unless you hate the rain. If you’re looking for a potential residence, a little research will help you narrow down your lost of dream cities. Start with some research on climate, crime, and demographics. Quiz sites like findyourspot.com are unscientific but fun, and can help you locate areas you wouldn’t have considered. Once you’ve made a short list, investigate average home prices to ensure that you’re not pricing yourself out of the market before you begin. Continue reading →
Lead levels in chipping paint are more dangerous than previously thought.
On January 4, the Center for Disease Control’s Advisory on Childhood Lead Poisoning Committee recommended lowering the standard for diagnosing lead poisoning in children. The recommendation was based on newer research linking what were previously acceptable levels of lead in the bloodstream with permanent developmental disorders and other health problems.
All this attention to lead is certainly good news for Americans and public health, but how does it affect homebuyers and sellers? According to the CDC, nearly all homes built before 1978 will contain some form of lead-based paint. If the home you’re looking to buy, rent, or sell was built after that date, you’re probably in the clear. If the home is older than that, you should take special care to understand the home’s condition and address any issues you find. Continue reading →
A bit of investigation can save you a lot of trouble in the long run.
Whether you have an old home that won’t sell, can’t afford to buy in your current neighborhood, or just want to earn a passive income, there are plenty of reasons to enter the rental property market. Choosing the right property and pricing it appropriately are critical, but many first-time landlords overlook what may be the most important task of all: finding the right tenants.
A good tenant can provide you with years of uninterrupted income and actually work to keep the property well-maintained. A bad tenant can be a nightmare, damaging property, leaving bills unpaid, and moving out unexpectedly. There’s no foolproof way to separate good from bad tenants, but there are a few basic rules that can dramatically increase your odds.
Homeowners can recoup 30% of the costs of solar-powered water heaters in a 2012 tax credit.
If winter has your home feeling a bit cold or drafty, you might want to take advantage of federal tax credits and consider some home improvements.
While the 2011 tax year’s insulation tax credit has disappeared, there are still plenty of ways to make your home more energy efficient while receiving a tax break. The federal government is offering a 30 percent tax credit–with no upper limit–on green technologies like geothermal heat pumps, residential wind turbines, and solar water heaters. This tax credit applies to new construction and existing homes, and covers principal residences and second homes. Continue reading →
Major structural renovations can increase livability, but generally aren't good short-term investments
Remodeling can be a fantastic way to breathe life into an older home, but be careful about the type of work you choose to do.
According to Remodeling Magazine’s Cost versus Value report, the only midrange or high-end remodeling project that will recoup its costs is a steel front door replacement, which increases an average the average selling price of a home by a paltry $25. Everything else is a money-losing proposition, so if you’re hoping to dramatically increase your home’s value, look elsewhere. Remodeling is not a way to make a quick buck.
So why should you remodel? There are two very good reasons: to build the home of your dreams and to help your home stand out in a crowded market. The trick is understanding which is more important, because they don’t play well together.
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Your first home purchase is exciting, but it can also be stressful. Here are some tips to limit the trauma and help you find the home of your dreams the first time around.
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