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Renovating Your Home? Check Out Our FAQ’s!

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How do I choose a contractor?

Ideally, you should build a relationship with your contractor that is similar to the one you have with your real estate agent. It should be based on trust and make you want to return to them for future needs. Your contractor should be very good at listening and communicating. You want your contractor to “get” what you want for your home and to keep in touch with you every step of the process. Do your research by checking out the reputation of contractors, speaking with other clients and looking at their previous work before making your choice.

How much will my project be?

The answer will depend on the scope of the project. However, to ensure that your contractor is able to provide you with the best estimate, it’s important to write down all the details of your plan. Renovations often take longer and cost more than expected. This is because homeowners make changes or additions along the way or don’t realize they may need to reroute outlets and electricity if they move a wall. You have to consider each item individually.

How long will it take to finish the renovations?

This depends on how much work is done and how many changes you make along the way. The more planning you do before you start, the better estimate you can get from your contractor.

How do I prioritize my projects?

You may want to plan your project in phases if you live in your home while renovations are taking place. This will allow you to live in some rooms and work in others. You may need to phase projects depending on the cost and available funds.

Where do I start?

Start by doing a lot of online research. Start a look book for your home. You can do this in a notebook, or online. Collect pictures of the finishes and looks you like. Visit kitchen, bathroom, flooring, appliance and flooring showrooms, and talk to different contractors to get ideas and pricing.

Do I need permits?

Your contractor will be able to tell you which projects require permits. Be sure to follow all permitting regulations. Failure to do so can lead to further work being required.

How much will renovating my home increase its value?

Homeowners often believe that improvements will increase the value of their home. However, sometimes, what they consider improvements can be liabilities for future buyers. Don’t spend so much on your house that it is more expensive than other houses in the neighborhood. Be careful not to add style preferences that are difficult to change, such as ornamental fixtures, radical architectural features, or unusual landscaping.

How do I pay for renovations

If you can afford to pay cash for your renovations then that is a great option. If you don’t have the cash, you could consider a home-equity loan with a manageable payment or a revolving credit line that you can use to pay for renovations and any emergencies that may come up later.

June Real Estate Market!

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The June real estate market is expected to be a bit slower than the previous month, but still strong overall. There are a few factors that are contributing to this, including rising mortgage rates and inflation.

Mortgage rates have been rising steadily in recent months, and this is making it more expensive for buyers to afford a home. Inflation is also on the rise, which is reducing the amount of disposable income that buyers have available to spend on housing.

Despite these challenges, the June real estate market is still expected to be strong. There is still a lot of demand for homes, and inventory levels are still low. This means that buyers will still be able to find homes, but they may have to make some concessions, such as waiving contingencies or paying over asking price.

Here are some tips for buyers and sellers in the June real estate market:

For Buyers:

  • Get pre-approved for a mortgage. This will show sellers that you’re serious about buying and that you have the financial means to do so.
  • Have a good understanding of the market. Know what homes are selling for in your area and what kind of features are in demand.
  • Be prepared to negotiate. Don’t be afraid to negotiate on the price or terms of the sale.
  • Be patient. The June real estate market may be a bit slower than previous months, so be patient and don’t be afraid to walk away from a deal if it’s not right for you.

For Sellers:

  • Get your home ready to sell. Before you list your home, make sure it’s in good condition and staged to show its best features.
  • Price your home competitively. The right price is essential for a quick sale.
  • Market your home aggressively. Use a variety of marketing channels to reach as many potential buyers as possible.
  • Be prepared to make some concessions. Buyers may ask for repairs or concessions, so be prepared to negotiate.

By following these tips, you can increase your chances of success in the June real estate market.

Contact us today! Your dream home is waiting for you.

Is it Smart to Refinance?

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A mortgage refinance is a smart way to manage your investments if you use it in the right circumstances. Here are some things to consider about refinancing your mortgage.

When you refinance, you take out a new mortgage to pay off your old mortgage. The first question you should ask yourself is whether there is a better option than the one you started with.

Refinancing lets you borrow against the equity in your home to get cash that you can use for other debts, home improvements or retirement investments. Let’s say, for example, that you have $70,000 in equity, but still owe the $175,000 mortgage. You can take out a $200,000 mortgage to pay off your first mortgage. Then, you will receive $25,000 cash. You may have enough equity if you have been paying your mortgage regularly for at least five consecutive years.

Refinancing can also be done to reduce monthly payments, giving you more flexibility with your budget. You are basically starting all over again on your 30-year mortgage commitment when you refinance. However, if you do not take cash out, the new mortgage amount is lower and your payments will decrease.

If you took out a mortgage for 15 years, switching to a 30 year term will reduce your monthly payment.

You can also do the opposite, and switch from a 30 year loan to a term of 15 years. You will probably have to pay more in monthly payments, but your loan will be paid off sooner and you will pay less interest.

Refinancing is also done to switch from an adjustable rate mortgage (ARM) into a fixed rate. This will eliminate fluctuations in your mortgage payment and allow you to take advantage of lower rates.

Do your homework before you decide to refinance. You should do an audit of your budget, evaluate your short- and long-term goals, check your score, monitor interest rate fluctuations and consider the costs associated with refinancing.

What is a Real Estate Agent’s Role in Helping Sellers?

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You want to find a realtor that will make the process as easy as possible for you while maximizing your profit when trying to sell your home.

You may be a new agent, and wonder what sellers expect from you. They want you to represent them above all else. They want you to be transparent, to trust you and to minimize any headaches that they may experience.

The following are some of the skills that a great agent for sellers should possess.

Pricing

One of the best things a seller’s agent can do for you is to price your home properly. Many people describe pricing a home as both an art and science.

Agents use recent comparable sales to make their decisions. Knowing the local market and having experience are key to being able to use intuition.

A good agent will find the right price balance to keep sellers competitive while ensuring they get what their house is worth.

A real estate agent will conduct a comparative analysis of nearby homes that are currently on the market, have pending sales, or may have just sold. Your agent may have sold these comps, or at least seen them personally.

You might also wonder how an agent can be better than an online model of valuation. These tools have a high error rate. Zillow’s online calculator, for example, estimates the value of a home at around 20% of its actual value in 87.6% cases. This leaves a large margin of error. These tools cannot account for the nuances or variables that an agent experienced in pricing homes can.

Sellers’ agents should be present at inspections and appraisals in order to prevent any spin from the buyer agent. If an inspector states that a home will require a new air conditioner in five years, then the agent representing the buyer may spin the information by saying that the unit is defective. This can be prevented by a seller’s representative.

Get Your Home Ready

Cleaning a house is not enough to get it ready for the market. Listing agents are experts at maximizing the value of your home.

Listing agents can find out what improvements you should make and recommend who to contact to help.

Your agent will discuss the potential return on investment before you decide to make any improvements.

The agent will also stage the property if necessary. The agent can stage the property by removing clutter, furniture and other items that are not necessary. The agent knows how to help buyers imagine themselves and their belongings in the space.

Your agent can then hire a professional photographer to take photos of your home once it is in picture-perfect condition.

Marketing Expertise

Marketing is a key skill for a seller’s agent. They will know what buyers want and how to make your house appealing.

Your agent will showcase your home in the MLS as well as on social media. They do traditional marketing, such as open houses and flyers.

Buyers screening

It is stressful and time-consuming to try to sell your home. You don’t want to have to deal with unqualified buyers. Your agent will ensure that no one wastes your time. Even a buyer that is truly interested in buying your house might not be able to get financing.

The agents earn money by way of a commission. It is in both your and their best interests to eliminate and screen out unqualified buyers.

Your agent will only work with buyers who are pre-approved and have gone through financial verification.

A good seller’s representative can provide you with a great deal of value. Many of the things that they do, you cannot or may not want to do yourself. 

 

Original Blog: https://realtytimes.com/archives/item/1044820-what-does-a-real-estate-agent-do-for-sellers?rtmpage=

10 Maintenance Tips for New Homeowners

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As you learn how to care for your new home, you’ll likely make some mistakes. This basic checklist will help you to get started.

  1. Make sure to check gutters frequently. To make sure they’re clear of sticks and that they are properly attached. Verify that the water flowing from your gutters does not damage your home’s foundation.
  2. Test smoke and carbon dioxide detectors every month. Experts recommend that you also change the batteries of these devices as part your routine at the time when the clocks are changed in the spring and fall.
  3. Replace HVAC filters at home. According to the manufacturer’s recommendations, especially if allergies or pets are a problem. A dirty filter is a sign of an inefficient system.
  4. Check the trees on your property. Tree-service companies can provide you with advice on how to take care of your trees, and help identify weak branches that need to be cut.
  5. Check for running toilets or dripping faucets. The small inconveniences can lead to large water waste. You can fix most toilets and faucets yourself.
  6. Make sure you check the supply hose of your washing machine. It can leak and cause costly damage.
  7. Clean your dryer vent regularly. The dryer vent should not be confused with the lint-trap (which is also cleaned frequently). The dryer vent pushes air out of the house through a duct. However, it can become filled with lint which could cause a fire.
  8. Clean around your refrigerator. Keep the coils and vents under and behind your fridge free from dust to maximize its efficiency.
  9. Be aware of the gaps. Are there gaps or cracks where wires and pipes enter your structure, around windows or doors? Caulk and replace weather stripping if it’s damaged or missing. You will be able to keep your house insulated, and also keep out bugs and other small creatures.
  10. Have a pest-control expert inspect your home. Even if you don’t suspect signs of infestation.

You can see that maintaining your home is a big job. These tips are just the beginning. Ask your Realtor about other resources to help you maintain a safe, efficient and well-maintained home.

Original Blog: https://www.texasrealestate.com/members/posts/10-maintenance-tips-for-first-time-homeowners/?utm_medium=email&_hsmi=257660844&_hsenc=p2ANqtz-_lup9ragiZm-lx4eq-Mj_0TcndsbsjMvk536ktKaUvIcQoBeklgoE6qqMljG453ymwNC–urzcFA5kCenRp7Az7F37jQ&utm_content=257660844&utm_source=hs_email

Using a Cash-Out Refinance for a Second Home

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You can use the equity in your home in a number of ways. You can use it to purchase a second house.

If you are considering a cash-out refinance to purchase a second house, there are a few things to consider.

What is a Cash-Out Refinance?

Cash-out refinances are a way of refinancing your mortgage by converting your equity into cash. You get a mortgage that is higher than your old balance and the difference in cash.

One of the most common reasons for refinancing is to get better terms than what they had with their previous loan. You might refinance, for example, to lower your monthly payment or take advantage a lower rate of interest. Cash-out refinances are a great way to tap into your home’s equity and get cash.

In a cash-out loan, your home is used as collateral. You’ll get a new mortgage that is larger than the amount you currently owe.

How to Buy a Home with a Cash-Out Refinance 

Cash-out refinancing is only possible if your home’s current value is higher than the balance of your mortgage.

A lender will allow you to withdraw up 80% of the value of your house, minus any remaining balance.

You can use the money you receive to put down your next property.

As with a conventional refinance loan, you still need to qualify.

In most cases, lenders will require at least a credit score above 620 and a debt to income ratio of 50%, but preferably lower.

If you plan to use the cash-out refinance proceeds to purchase an investment property, expect to put down anywhere between 15 and 25%.

If you are buying a primary home, a lower down payment is accepted.

Lenders do not have any guidelines that prohibit you from using the proceeds of a cash-out refinance to pay for the down payment on another property.

Considerations to Keep in Mind

You can choose between a fixed rate or variable rate loan when applying for a refinance cash-out. If you receive a variable-rate mortgage, your payments may increase depending on the interest rates.

If you refinance with cash out, the interest rate of your new loan could be higher than that of your original loan. This means you may end up paying more over the life of your loan.

You need to decide if you can afford the extra interest you would pay if you bought another property. This can also extend the repayment period of your current debt, so it’s not always a good choice.

Closing costs can range from 2 to 5% of your new refinance loan. These will be deducted from your cash payout. You can’t add them to the mortgage.

A home equity loan is another option. Home equity loans do not have closing costs. This is a major advantage. This could be cheaper than a cash out refinance, if you have a mortgage with a lower rate than what is required.

The biggest disadvantage of a cash-out refinance, is that you will have to use your primary residence as collateral, even if it’s to purchase another home. Your lender can prevent foreclosure on your primary residence if you default.

 

Original Blog: https://realtytimes.com/archives/item/1045164-using-a-cash-out-refinance-for-a-second-home?rtmpage=

Preferred Properties of Texas

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