Friday, October 18, 2013

5 Questions You Should Ask Before Buying A Home


            


Five Questions You Should Ask Before Buying a Home
Published July 24, 2012
FOXBusiness
The housing crash has changed the rules for home buying.
The 2008 financial crisis that caused the housing bubble to burst still has markets reeling and slowly digging their way out of depressed home values, foreclosures and shadow inventory. But other markets have been able to bounce back more quick and bidding wars are breaking out.
When it comes to trying to time the housing markets, experts wish you luck. “The rear-view mirror is the only place to see peaks and valleys,” says Larry Foster, senior vice president and regional manager at Long & Foster. “Real estate is a hyper local thing—some places are suffering and may not have hit bottom.”
In some markets houses are cheap and rents are high because residents are more interested in renting than owning and there’s a shortage of inventory. If you’re trying to determine if you should rent or buy in the current economic climate, experts suggest evaluating your financial situation and your long-term goals and career plans.  
Record-low interest rates are attracting homebuyers, with Freddie Mac reporting a 30-year fixed mortgage rate sitting at 3.53% as of July 19, 2012.
Beyond evaluating your finances and long-term goals, experts say why you want to buy a home is also important. Don’t just buy a home because you expect it to appreciate, warns Daren Blomquist, vice president at RealtyTrac, buy because you want to put money you would have spent on rent into a home. “We’re reverting back to old-fashioned sensitivities on why you should buy a home. You need more money, and it’s not a get-rich-quick venture that we saw in the bubble years.”
Before purchasing a new home, experts recommend considering these five questions before making the leap.
Question No.1: Do you have at least 20% saved for a down payment?
Experts agree that buyers should put 20% down on a home purchase. “The new rules for the new market—these are the old rules we used to follow in the 70s and 80s,” says Michael Corbett, Trulia's real estate expert. “You put 20% down, you hold the property longer term, and you don’t overspend.”
Your down payment will determine the size of your mortgage and the amount of your monthly payment. “You really want to put down enough [money] to manage a payment,” says Michael Goodman, certified public accountant and president at Wealthstream Advisors, Inc.
Question No.2: How long am I planning to live in this house?
Don’t buy unless you’re planning to stay in the property for five to seven years, says Corbett. “Really, we don’t have a lot of concrete stability yet. You want to give yourself a little bit of a safety net.”
The longer you live in your house, the more likely its value will increase. Foreclosure prices are still trending downward in some markets, says Blomquist. It’s a good sign when foreclosure prices increase since other home prices will be trending higher as well. “We’re getting close to a bottom in many markets, but [we’re] not quite there yet on a national level. We’re not going to see sustainable home price appreciation for another couple of years.”
Home price appreciation will help you recoup your initial investment when you sell. Since buying has a lot of upfront costs, to include a 7% commission to the real estate agents, in order to break even, your house value would have to increase at least 7% by the time you sell, says Corbett.
Question No. 3: What are the true monthly costs for owning a home?
The cost of owning a home extends far beyond the monthly mortgage payments. “Add in about 30% more to cover the full price—taxes, insurance, hazard insurance depending on where you live, HOA fees for condos and general maintenance that you wouldn’t have when you’re a renter,” says Corbett.
Other expenses to consider are whether you’ll have increased commuting costs and, if you have children, whether they’ll attend private or public schools, adds Goodman.
How much you spend on your mortgage payment depends on what else you want to achieve in life, such as long term savings goals like retirement and discretionary savings goals like vacations.
Depending on your salary and goals, Goodman suggests keeping housing payments between 25% and 50% of your income, with a higher percentage of income for when your only goal is your house. When you have a larger monthly payment, find places to make cuts in your budget, he says. Even though you may want to spend more of your income on your mortgage, you still need to qualify with a lender for that payment.
There are benefits to owning that will affect your tax liability and, ultimately, your budget. “The tax impact is huge,” says Goodman. Look at your tax incentive to buy and, if you have difficulty reviewing these on your own, consider seeing an accountant to understand how your tax liability will change.



Question No. 4: Do you have an emergency fund on top of what you’ve saved for a down payment?
Goodman suggests having about six months of expenses saved before buying a home. If you have a steady income, a slightly smaller reserve would probably be sufficient with a larger reserve of more than six months of expenses being more suitable for people with unpredictable incomes.
“Your emergency reserve shouldn’t change if you buy or rent but should match expenses,” says Goodman. “You have new expenses that come up when you buy, and you have to factor all those into your budget.” As well as having a down payment and emergency fund, Goodman suggests having additional cash for renovations, projects, and moving costs.
Question No. 5: Do you have job security?
Experts suggest renting if you don’t have job stability. “The nice thing is that we’re in a safer buying environment with much more stringent lending practices,” says Corbett. “Banks have to qualify someone for worst case scenarios.”
Even though buying may be attractive at the moment, renting does have some incentives. “If you have a [rental] deal that’s so good, stay in your rental but take the difference and save it so if your deal goes away, you have savings,” says Goodman.
Buying a home is a big decision. “There are a lot of markets where it’s cheaper to buy versus rent assuming you have the capacity to qualify,” says Blomquist. “Homeownership isn’t the American Dream for everybody, and it’s okay to rent.”


Wednesday, October 16, 2013

Fall Decorating Ideas

 Happy Fall! Today it actually feels like fall! As we enter the season of falling leaves, pumpkins, apple cider and holidays, are you feeling that your home needs some new decorations? See below for some fall decor that I have come across and fell in love with... Happy Decorating!

Fall Foliage Arrangement: Beautiful collection of reds, oranges, greens and browns. 
Lined Steps: Etch the pumpkins or gourds with a message or your address!
Painted Pumpkins: Metallic paint will spice up any room for the fall!



The Photos Featured Above are from: www.southernliving.com

Tuesday, October 8, 2013

Get the Most Bang for Your Buck on Home Improvements

Get the Most Bang for Your Buck on Home Improvements



 by Ed Condran
Conventional wisdom says renovating your kitchen always improves your home’s value, but what if your budget is more like $1,000 rather than 27,000, which is the national average kitchen renovation cost.
Don’t despair! These modestly-priced changes can transform your house from out-of-date to fresh-faced.

Repaint in neutrals. “I would repaint at least two rooms, especially if you’re thinking about selling your house,” Boston-based Prudential Unlimited Realtor Melony Swasey said. “It’s a wild market here in Boston. Many people looking here are shopping by photos and you need to have 'clickability'. Adding a fresh coat of paint can help your house pop and look crisp. Put up a nice gray palette and all of a sudden it’s a different place.” According to Bankrate.com, a gallon of paint ($25) is worth $500 in terms of what it does for a space. The key to saving here? DIY.
Insulate your home. Keep the heat inside and the dollars in your pocket by insulating your home. “A lot of people forget about or ignore insulation,” Atlanta-based contractor Tom Semelsberger said. “It’s an inexpensive way to save a lot of money that you’ll see early and it’s something that will pay in the long term. Buy some weather stripping and get to work.” 
You also can reduce future energy bills by 40 percent with proper insulation.
Go contemporary. “Replace the vanity or the medicine cabinet by going to a reasonably priced reliable store,” San Francisco-based realtor Ilonka Edwards at McGuire Real Estate said. “It’s a good idea to go the contemporary route even if you live in a traditional, older home. Spruce it up by visiting IKEA. I recently sold a million dollar house, which was full of IKEA furniture. You can get a lot for $1,000 at IKEA and any house will benefit from it.”
Choose knobs, not appliances. “Don’t put an expensive new stove in a kitchen,” Chicago-based contractor Ken Baker said. “Put on new knobs on cabinets and drawers. If you change all of those and spend some money on say a kitchen backsplash, you’ll spice up your house and spend little money. You just have to spend wisely. If you buy knobs, they’re only about $7 each. Just buy enough for every cabinet because sometimes styles are discontinued.”

Call me about all your Real Estate needs!!


Debbie Mignogna
(267)-640-1120
damignogna@comcast.net
pa-dreamhomes.net

Monday, October 7, 2013

What to Expect From A Real Estate Agent..

What should you expect from a Real Estate Agent? Read below for some of my thoughts on agents' duties and qualities critical in the housing market today.
Your Buying Agent Should:
  • Discuss with you particular home features you are looking for, to learn which ones are musts and which ones you would be willing to compromise on
  • Share with you knowledge of the neighborhoods you are interested in
  • Be actively looking for houses and send all new listings you might be interested in
  • Not waste your time showing houses that do not meet your stated criteria
  • Arrange tours of homes for you and accompany you on them
  • Analyze the comparative markets for price advice
  • Organize and create offers to buy a house
  • Negotiate with the seller's agent
  • Schedule inspections and all other appointments if needed
  • Accompany you during the close of the sale

Your Selling Agent Should:
  • Have regular conversations with you on the progress and activity of the sale of the home
  • Be responsive and available to help with your needs
  • Be honest and trustworthy
  • Provide summaries of marketing efforts and who's interested in the home
  • Offer advice on how to differentiate your house from the rest on the market
  • Create flyers and advertisements detailing the great qualities of your home
  • Upload details of your home to real estate websites and social media portals
  • Provide great quality photos to accompany your home's listing online and all marketing vehicles
  • Hold broker's open houses as well as public open houses
  • Discuss with wide ranged network including realtors about prospective buyers for the property
  • Evaluate agents and prospective buyers'  feedback for features of the house might be lacking
  • Be a counselor to you during situations of staging, reducing the price or other needed improvements
Looking to begin your journey through the housing market? Allow me to guide you along the way. I can help you find your dream home!


Debbie Mignogna
(267)-640-1120
damignogna@comcast.net
pa-dreamhomes.net

Wednesday, October 2, 2013

Ambler Oktoberfest - Main Street - October 5th

Happy October Everyone! 

Looking for a great fall activity for you and the family? What better way to spend the first weekend in October than on Main Street in Ambler! 

This Saturday, October 5, Ambler is having their 22nd Annual Oktoberfest from 10AM to 5PM.

The day will be filled with great music and activities for all ages. Restaurants will be offering samplings of their finest foods and artists will be showcasing their artwork or hand crafted items. There will even be rides for the kids! And for all those beer connoisseur's out there, make your way to the beer garden! You will be able to taste a large variety ales, IPAs, Lagers etc.

I am hearing that this year will be the biggest festival Ambler has seen yet! I don't know about you but, great food, music and shopping sounds like a great day to me!