Category Archives: Selling Your Home

Achieving The American Dream

Achieving The American Dream

The American Dream. Having a loving family, attaining a stable job, and most importantly possessing your own home, even if it’s not in Santa Maria, California or somewhere near the Central Coast. All of these accomplishments can be challenging at times, especially taking the next step of  having your own home. With financial planning and legalities, it all starts with a bit of knowledge of the industry and some research.

Purchasing a Home in the United States

The United States Real Estate market is tremendous, especially the Santa Maria Real Estate area since it is continuing to grow. One thing to keep in mind is that each state has their own unique set of policies, set of laws, and not to mention taxes. So don’t be surprised when you notice different tax rates in various cities and states. Also Keep in mind that their are many incentives for individuals such as veterans who have served our country. Veterans qualify for loans known as VA Loans and many lenders out there offer these kinds of incentives that better help them achieve the home of their dreams.

Property Taxes

As mentioned above, taxes vary by state. So when you are asking yourself how much house can I afford, do not forget to include property taxes as the tend to add up. They are used to fund public projects such as schools, parks, and things such as law enforcement. Knowing ahead of time what kind of taxes you will be paying will give you a better picture of the cost of living in your new home, especially if you are planning on moving out of state; do some research.

Educate Yourself On the Real Estate Market

One should also know what exactly drives house prices in the market, especially in the Central Coast Real Estate area because it has gained popularity in past years. Instability in house prices vary from state to state and from region to region. For example, a home in the Arroyo Grande, California will not have the same price as a beach from property in the Pismo Beach, California area even though their proximity is not to far apart. Same applies to locations such as Los Angeles, California and New York (especially within the city). We at Greater Mortgage Solutions and Valley Hills Realty want to teach you about the macro and micro trends that influence the real estate market. That way you can make a better decision when making a mortgage deal that is being offered to you.

So when you, a family member, or a close friend of yours is ready to achieve The American Dream, consider allowing one of our team of experts at Greater Mortgage Solutions and Valley Hills Realty help you attain the precise mortgage and the home you have always wanted. We are filled with team members that are ready to help you every step of the way.

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What You Need To Know About Home Appraisals

1) Examination of the Property

The physical examination of a property is performed by an appraiser. These types of visits are usually brief if the house is in good condition. Other factors that contribute to the lengthiness of the appraisal are the Gross Living Area (GLA) and the design of the home. A home with a large living area will take longer than those examinations for smaller homes. Also homes that are designed a bit more complex will lead to longer examinations. A typical home appraisal takes about 30 minutes to complete and are required by the lender who is completing the loan.

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2) Selecting Comparables

This part of an appraisal is when the appraiser chooses a nearby house that closely resembles your home and has closed within the last 6 months. Most appraisals require at least 3 closed comparables, 2 of which have closed within 6 months and another that has closed within 12. No comparables will be taken into consideration if it has closed 12 or more months prior to the appraisal. Some lenders are now requiring comparables that are pending or still active to be included. The comparable is usually within a 1 mile radius of the location of your home but the proximity of the comparable differs between suburban and rural neighborhoods. Suburban homes tend to require a comparable that is no more than 1 mile away while homes located in a rural type of neighborhood can be as far apart as 5 miles. The appraiser will choose the most appropriate one and include it in the Appraisal Report.

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3) Completing the Appraisal Report

After the examination of the property and choosing the best comparable sales available, the appraiser can now begin to compile the Appraisal Report. The appraiser evaluates all information that is entered into the report so that they can determine an accurate Market Value of your home. This report is usually handed back to the client after seven to ten business days of the appraisal.

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These three main categories are what complete an appraisal report when trying to sell your home. Though they may vary somewhat throughout real estate, this is typically how an appraisal is performed. Next time you are looking to sell your home keep these topics in mind so that you are aware of what the appraiser is looking for.

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The Benefits of Renovating Your Home

Having thoughts on whether or not to remodel your home? Well it is time to put those thoughts into action. Home renovation can have many benefits, both financially and aesthetically. Here are 3 innovation ideas that will certainly add value to your home.

1. Increasing the space

Expanding the space within a home will make the house seem bigger, allowing you to do your things more freely. Giving your home some breathing room will provide you the benefit of having guests over in a comfortable manner.

2. Comfort

As mentioned above, comfort is one of the many benefits of renovating your home. It can make your house seem safer and increase the likeliness of a buyer to commit.

3. Energy Efficiency

Going green is the new trend going on in the real estate industry. More home buyers are searching for houses that are energy friendly. Start thinking about energy and environmental pleasant renovations that will certainly attract more buyers and save you money on monthly bills.

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The Benefits Of Owning A Home

How does owning a home save you money? There are tax benefits, financial firmness, and in the long run owning a home is less expensive than renting a house. So if you are on the fence on whether or not to purchase your new home, take into consideration these 4 benefits of owning your own home.

1. Owning a Home Builds Wealth in the Long-run

Buying home that you can afford now can drastically increase your wealth in the future. It is something that we have been taught by family members in the past but do to the uncertainty of today’s market, many people have moved away from home ownership.

2. Build Equity Every Month

By owning a home, you will be making mortgage payments every month. By making those mortgage payments you are essentially reducing the amount that you owe on your home every month. It is that reduction of your mortgage that increases your equity.

3. A Mortgage Is Like a Obligatory Savings Plan

Paying off that mortgage payment every month and reducing the amount that you owe is like a forced savings plan because each month you are building up more valuable equity in your home

4. In The Long Term, Buying Is Cheaper than Renting

The first few years renting can seem cheaper, or more affordable when compared to buying a new home, but over the years as the interest portion of your mortgage decreases it will be lower than what your actual rent payment is now. So instead of throwing away all of your money every month by giving it to your landlord, invest it in your own home so that you build equity for the future.

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When To Lower Price On Home

 

There was a time when a price reduction tainted a listing. That was several years ago when listings in many areas sold quickly. At that time, it was assumed that something was wrong with a listing if it needed a price reduction.

In today’s market, price reductions are common. Sometimes, sellers aren’t content with listing unless they try a price that’s higher than what the comparable sales data indicate. Or, a price reduction could be necessary simply because it’s difficult to price homes in a changing market, particularly if the local housing stock is varied in size, condition, age and style.

It’s easier to establish current market value in housing developments where the homes are similar to one another, particularly if there are a number of recent comparable sales. It’s hard to price right for the market in any neighborhood if few or no homes have sold recently.

It’s best to list your home at a price that buyers will perceive as a good value. Overpriced listings sit on the market. Real estate agents and buyers forget about them.

The home-sale market slowed in some areas this summer. Today’s buyers are cautious about buying. Some are back on the fence waiting for a clear sign that the market has hit bottom and that prices won’t drop further.

 

Although some markets appear to have stabilized, there is no guarantee that prices won’t slip. Buyers who realize that they can’t time the market and who want to take advantage of low interest rates are moving ahead with their home search. They are very selective, are buying for the long term, will wait for the right home, and won’t pay over market value.

HOUSE HUNTING TIP: As difficult as it may be for sellers to consider a price reduction after only a couple of weeks on the market, this is often the best strategy. Buyers and their agents focus on the new listings. If you bring your home on the market priced too high, but it’s otherwise a nice house in good condition and in a good location, a price reduction early in the marketing period is likely to attract the attention of agents and buyers who still have the listing fresh in their minds.

Make sure that your agent gives your listing a renewed marketing effort to generate enthusiasm about the property. More than 85 percent of today’s home buyers use the Internet to search for a home. Some sign up for services that notify buyers when a new listing is submitted to the multiple listing service (MLS) and when there is a price reduction or pending sale.

Your agent should schedule an open house for brokers as soon as possible after a price reduction to alert real estate agents who may have missed the price reduction when they ran an MLS update. MLS updates list price changes.

It’s a good idea to have a Sunday open house for the public as soon as possible after the price is reduced. The open house ads for the open house should showcase the price reduction.

Depending on your local market, you may need to lower the price more than once, particularly if you waited months to make a price adjustment. If market values have moved down since you listed, you could find yourself out of sync with the market again. Don’t rely on what your neighbors are asking for their homes. If they aren’t selling, they are probably overpriced for the market. Rely on sales of comparable properties that closed after you put your home on the market.

THE CLOSING: Ideally, you want to reduce the price before your competition does.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author.

 

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