Tips to Save For A Downpayment

Tips to Save for a Down payment

Are you thinking about buying a new home? Gone are the days of 100% financing with zero down payment. So if you are not sitting on a pile of cash, the idea of finding the money to pay the down payment might feel daunting. But there are simple ways to raise the cash needed to get into a new home.

• Assess Your Current Assets - The first step is to determine what cash you might have available right now. Do you have a savings account or perhaps a 401k*? Are you nursing a pet project, like a vintage car or motorcycle, which could be sold for additional cash?

• Explore Loan Options - Not all home loans require the typical 20% down payment. FHA and VA loans are available for qualified buyers which allow a very low/no down payment.

• Ask For Help - Some loans allow you to use gift funds from relatives for the down payment. There are also local and state programs which offer down payment assistance and second loans.

• Employment Incentives – Some cities and counties offer help with buying a home for teachers and first responders. If you fall into one of these categories, speak with your lender about options for down payment assistance.

• Government Programs- If you qualify, there are grants at the county level in our area which can be applied to your purchase of a home. There are many restrictions so reach out and we can discuss if you would be a suitable candidate!

Buying a new home is a great way to add to your financial security. Building equity with a property is one way to build wealth while providing for you and your family. Finding the down payment might be easier than you think. If you are ready to explore home ownership, meet with a lender and discuss your unique situation.

Ask for my Home Buyer’s Guide which offers local lenders recommended by previous clients

Should Sellers Offer A Home Warranty?

Should Sellers Offer Home Warranties?

If you are selling your home, one of the most common requests with the buyer’s offer is to pay for a home warranty. As a seller, you might be wondering if it’s something that’s worth the expense. Some agents suggest that the seller purchase a listing warranty as well as part of the sales process. Understanding the benefits of a home warranty is the first step in deciding if it’s worth the cost to you, the seller.

A home warranty is a policy which covers the cost of repairs to a number of critical systems in the home. While coverage varies, most cover electrical, plumbing, heating, air conditioning and appliances. Some optional coverage could include pool and spa, roofing and code protection among others. In the event that a home buyer has a problem with any of the covered systems, the warranty would send a service person out to make the repairs for only the policy deductible – usually between $65-100 per problem.

The home warranty provides peace-of-mind to the buyer that if an undetected problem shows up after the close; their out-of-pocket cost is limited to the small deductible. While this does not negate the need for a professional home inspection, it can push a transaction to close with buyers who are nervous about unexpected problems. As an additional bonus, most warranty companies offer a free listing warranty which covers unexpected issues during the listing; often saving the home owner hundreds of dollars in repairs arising from the inspection.

Offering a home warranty in the listing is one way to demonstrate to potential buyers that the condition of the home is important to the seller as well. You take maintenance seriously and they can rest assured that they are making a good investment.

Is Flipping Houses Right For You?

Is Flipping Houses for You?

There are a wide variety of ways to invest in real estate; To be successful in real estate investing, it’s critical that you identify what skills you have and your tolerance for risk. Flipping homes is one of these ways, but not every investor is prepared for what house flipping involves. Understanding the model can help you determine if this is the right investment strategy for you.

Investors can make great profits by flipping properties. First question is what kind of income are you seeking, active or passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort. Rental properties on the other hand offer passive long-term income which accumulates over time.

The second consideration is risk. Flipping is really speculation. When buying a flipper, one must gauge the cost of refurbishment, remodeling and the cost of the holding time into the price valuation, then carefully market the home and realize the profit. Any number of variances can occur which could cause the value to drop and profits to reduce or even disappear, such as a delay in remodeling or a slow real estate market. Having ready cash to cover the unexpected is critical to success.

Flipping houses is one way to invest in real estate. For those who are able to plan for the unexpected, this quick turn-around model might be a great tool for wealth building.

Understanding your market, resources and risk tolerance is the first step in deciding if flipping is right for you.

Call to discuss further whether you should become a house flipper.

Latest Backsplash Kitchen Trends

Latest Kitchen Backsplash Trends

This year, kitchen design shows are filled with new materials, patterns and colors as enthusiasts look for the latest trends and styles.

As we leave the dark granite countertops behind, kitchens are getting lighter, brighter and more streamlined looks. These new backsplashes are design statement pieces in their own right, creating a uniquely modern feel to the space. With a focus on sleek surfaces and natural elements, here are the latest trends for kitchen backsplashes.

• Mixed materials – layers of stone mix with sleek metal trims or soft wood to create layer upon layer of design.

• Higher Profiles – the backsplash is no longer a 6” continuation of the countertop. Taller profiles and accent-wall styling are new trends.

• Bold Patterns – geometric tone-on-tone designs create visual interest.

• Subway Tiles – after so many of us removed the old white tile of our kitchens, designers are bringing them back in interesting shapes and patterns.

• Veins – larger granite, quartz or natural stone pieces are used as focal points, adding drama and depth.

• Backsplash Shelves – one of the latest design trends is to create a ledge or shelf along the top of a high-profile backsplash.

• Solid Wall – this last trend is eliminating a backsplash entirely and adding a stone “wall” in the kitchen, removing any visual distinction and creating a sleek, clean line.

2020 design trends are contemporary and exciting. After years of cozy kitchens and dark woods, these kitchens are light and bright; mixing soft natural stone and wood with hard, urban features for a modern, functional kitchen that suits any home style.

Tips For Selling in Summer

Tips for Selling in Summer

Summer has traditionally been the best time to sell a home. Not only do many families take advantage of moving when the kids are out of school, but in climates where winter weather is unpredictable or severe, the warmer months make it easier to be away for showings. With more homes on the market, how can you maximize your potential for a great offer among the options? Fortunately, you can take a few steps to ensure your home stands out from the crowd.

Tips for Selling in Summer

• Control the Climate – The first thing a buyer will notice when they walk into a home is the temperature. If the weather is warm and humid, it’s critical you keep the home cool. A larger air conditioning bill is a small price to pay for a top dollar offer.

• Let in the Sun – It might be tempting to close the blinds to save money on air conditioning, but bright, sunny rooms are always more appealing; leave enough open to showcase natural light.

• Extend Outdoors – Today’s lifestyle includes the outdoor areas and more and more homes feature outdoor living and dining areas. Regardless of your home’s features, maximize the impact of your yard with furniture, BBQs and manicured landscaping.

• Spring Clean – A fresh, decluttered home with a lighter, seasonal color scheme will be visually appealing to your buyers. Replace dark pillows, linen and accents with softer colors which make the rooms seem larger.

The summer selling season is here. Make sure your home is dressed for success. Welcoming outdoor spaces and bright sunny rooms combined with inviting an air conditioned rooms will ensure you get the best possible offer.

Top 3 Inexpensive Hardwoods

Top 3 Inexpensive Hardwoods

 Most people have thought about installing hardwood floors at one time or another. The natural beauty of wood brings a soft, elegance to any home. Today, hardwoods are not just for floors. Modern homes feature hardwoods for counters, back splashes and even entire walls.

Traditionally an expensive material to work with, there are inexpensive hardwoods that will bring that ambiance you crave with a price tag that won’t shock your wallet.

Top 3 Inexpensive Hardwoods

1.     Bamboo – Our first inexpensive hardwood isn’t really wood at all. Bamboo is actually a grass yet it’s harder than most hardwoods. Bamboo comes in only two shades – light and dark (boiled) – yet because of the variety in the plant itself, there are many color options available.

2.     Hickory – Hickory is most often used in rustic or country style homes. A very strong wood, it’s perfect for homes with high traffic and provides great durability and value for the price. With proper stain, hickory can take on a light, pine, tone or a darker, richer look.

3.     Lyptus – Never heard of lyptus? You’re not alone. Lyptus is commonly mistaken for mahogany. Beautiful and durable, lyptus costs a fraction of the cost of actual mahogany and provides the same lustrous look.

Hardwoods come in a large variety of tones, hardness and finishes. With so many to choose from and nice options starting at prices comparable to quality carpet, many homeowners and designers are incorporating hardwoods in their homes than ever before.

Vacation Rental Ownership – Is It For You?

Vacation Rental Ownership – Is It For You?

Investment properties used to be homes and multi-family properties used for full time rentals. Over the past decade, we’ve seen a new crop of investment properties emerge, the short term rentals. But what’s involved in owning a vacation rental? Is it worth the work?

A short term rental is a great investment for a number of reasons. In addition to creating annual income for the investor, the property could also appreciate in value during the time of ownership. Although the short term rental is still a rental property, it often pencils out to much higher income than a traditional long term lease does.

Vacation Rentals might seem like a great deal of work, and they can be. The first choice a vacation rental owner will need to make is whether they would like to self-manage or hire a property management company. Many short term rentals are managed by a professional property manager that specializes in the short term market. These managers have people on call to help with arrival, departure, cleaning, repairs and rent collections. While they do charge for their services, a professionally managed vacation rental can provide a nice income stream by building positive reviews.

Of course there are downsides to owning this kind of investment. It’s important to choose the right location to ensure a steady stream of renters. Additionally, one must budget for unexpected repairs or damage. With the deposit being made with a credit card, it can be difficult to collect for damage done to the home.

The Internet has been instrumental in the new vacation economy as peer-to-peer platforms like Airbnb, VRBO and HomeAway offer visitors the ability to interact directly with the owner. By reducing the advertising costs, investor-owners, can negotiate directly with potential renters and screen them to prevent possible problems.

Ask me for a vetted real estate agent recommendation no matter where in the world you would like to buy a property as I am only licensed to do business in Pennsylvania at this time.

Helping Families with Food Insecurity

Everyone in our area has faced challenges over the past few months as we deal with changes caused by Coronavirus. Food insecurity should not be one of them. I volunteer with the Jenkintown Food Cupboard which distributes food for residents throughout Montgomery County, PA. You can check out their website www.jenkintownfoodcupboard.net to sign up to pick up food on Saturdays.

Now, there is another program offering food pick up on Thursdays 11-1pm with locations throughout Montgomery County. Please share with friends and family so that this message can reach anyone who may find it helpful. More information on the MontCo Anti-Hunger Network can be found on their website: www.montcoantihunger.org and below.

If you would like assistance with any of this, please reach out to me directly.

Distribution Sites and Dates (Thursdays)
Willow Grove Mall (Nordstrom Rack Lot)  May 28th
Norristown Area site approval pending     June 4th
Pottstown Area site approval pending       June 11th

Willow Grove Mall (Nordstrom Rack Lot)  June 18th
Norristown Area site approval pending     June 25th
Pottstown Area site approval pending       July 2nd

Time: 11am -1pm

Should You Get An Appraisal Before Listing Your Home For Sale?

Should You Get An Appraisal Before Listing Your Home For Sale?

The most important thing on every seller’s mind is the listing price. No one wants to leave money on the table by pricing a home too low. At the same time, pricing the home too high will also likely result in lost dollars either from wasting valuable time on the market or once stale, selling for below market value in desperation.

Getting a professional appraisal ahead of time might seem like the solution, but is it?

An appraisal can be defined as an opinion of value at a given moment in time. If you are in an ascending market where listings are selling quickly, the appraiser can only use closed sales as a reference in the appraisal, so you might be tempted to list too low for the market, but not accounting for the increase in sales activity and prices. Contrarily if the market is slow and prices are declining, an appraisal received in May could be too high for the erosion of prices seen over the summer, and your listing will be overpriced for the reality of the neighborhood.

More than just these scenarios, a pre-listing appraisal means nothing to the buyer or their lender. They will still use market data to write their offer and their lender will order a new appraisal regardless. While you can reference your appraisal in negotiations, the buyers will still only offer what the property is worth to them and you might miss out on a great deal by trying to stick to your price.

In the end, a pre-listing appraisal is probably a waste of time and money. Your agent has access to the latest market data and can show you the same comparable properties the appraiser would use. Find a good local agent you trust and work with them to price your home correctly.

Tips to Pay Off Your Loan Faster

Tips to Pay off Your Loan Faster

For generations, homeowners would buy a home for life. Working over the years to make the payments and celebrating the end of the 30 year mortgage were great milestones in the family. Today, few home buyers expect to be in their home for longer than 7 years on average. Paying off a 30 year mortgage seems like an impossible task. Fortunately, there are great ways to pay off your loan which do not involve time. Here are a few tips for paying off your mortgage loan faster.

·      Biweekly Payments – Work with your lender to determine how they handle biweekly payments. If processed immediately, you can save 8 years of payments on a 30 year loan.

·      Extra Payments – By making just one extra payment each year, you can pay off your loan 7- 11 years earlier.

·      Refinance to 15 years – There are great interest rates available for mortgage loans. Consider a 15 year mortgage.

·      Principal Reduction – Watch for ways to add to your monthly payment a little at a time. When possible, increase the principal payment you make.

Paying off your mortgage builds wealth. Consider your life goals, including retirement. A 30 year loan taken out at 37 years old will not be complete until 67 – retirement age. The loan needs to be part of the overall financial plan from the beginning and making payoff a priority with a few simple steps can add up to huge savings in interest which can then be used for better investments.