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Buying a Home for the First Time? Five Real Estate Terms You’ll Need to Know

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Buying a Home for the First Time? Five Real Estate Terms You'll Need to KnowThe terminology involved in the real estate market can be vexing for the newcomer, but if you’re getting prepared to buy a home, there are a few choice words you should take some time to learn. While it’s hard to learn the ins and outs in one article, here’s a place to begin with five terms you may be hearing a lot of in the future.

Amortization Period

It may sound like a very fancy term, but the amortization period or mortgage term is simply the length of time it will take you to pay off your mortgage loan by monthly mortgage payments. While 25 years is the standard amortization period, it varies from lender to lender.

Fixed Rate Mortgage

A fixed rate mortgage is one of the interest rate options you’ll have which involves a stable interest rate that remains unchanged. While this means your monthly payment will stay the same each month, it can also mean a higher amount paid overall since your fixed rate may be higher than the market rate over time.

Adjustable Rate Mortgage

Another option when it comes to mortgage interest rates is an adjustable rate, which means that your monthly payment will fluctuate along with the prime market rate. While this can provide a sense of insecurity since your mortgage payment will shift each month, it can end up being more economical than a fixed rate.

Closing Costs

Buying a home can cost enough with the loan, the down payment, and the interest, but closing costs will also be a part of the housing costs. Closing costs generally range anywhere from 2-5%, they include items like loan administration costs and title insurance costs that come part and parcel with the mortgage.

There are many terms in the world of real estate, but by making yourself aware of a few and doing your research, you can begin to understand what they mean for you. If you’re ready to invest in a home, contact your local real estate professional for more information.

Understanding Why the Highest Offer Isn’t Always the Best One When Selling Your Home

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Understanding Why the Highest Offer Isn't Always the Best One When Selling Your HomeWhen it comes to the real estate market, nothing is better than putting your home up for sale and finding a potential homebuyer who offers you the price you’re looking for. However, while the right offer is ideal, there are a lot of things that may come along with a high offer that may be less than perfect. If you’re wondering what kinds of things can hamper a good offer, you may want to watch out for the following.

What’s The Timeline?

If you’re almost packed and you’re prepared to go, there won’t necessarily be any inconvenience in dealing with a 30-day closing period. However, if you’re not quite ready to move, having to close quickly can add a lot of pressure to a stressful situation. While it may be do-able to make the arrangements to move in a short amount of time, if it’s not the way you want to leave your old house and move on, you may want to go with a more flexible offer.

The Details On Cash

The right price is indeed a good offer, but when it comes to homebuyers who can pay with cash, there’s a lot less to worry about on the back end. As a result, cash can easily trump many other offers for the convenience of not having to deal with lenders or many other factors involved in closing the purchase. While it might not seem like most people have the available cash on hand, cash purchases on real estate are becoming more common, and with less complication, they can be more enticing.

Are There Contingencies?

If you’re experiencing a bidding war with your home, it’s important to look at all the details of the offers and ascertain which one can best be relied upon. That’s why it’s important to look at any contingencies on the home sale that may have to do with the financing, appraisal or inspection. An offer may be more than a little striking at the start, but if there are a lot of strings attached, there may be a bidder with a lower offer who’s less likely to back out.

It’s easy to get snared by the highest offer when selling your home, but it’s important to be aware of your timeline and any contingencies before accepting an offer. If you’re currently preparing to put your home on the market, contact your local real estate professional for more information.

Facing a Scorching Hot Housing Market? 3 Reasons You’ll Want a Great Real Estate Agent

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Facing a Scorching Hot Housing Market? 3 Reasons You'll Want a Great Real Estate AgentFor many homeowners who are selling in today’s real estate market, pinching every penny can be important. They may be considering opting out of using a real estate agent and going with the DIY approach. However, there are many things an agent can do for you in a hot market that is worth the money. If you’re wondering how a real estate agent can help you, here are some things to consider.

Understanding The Neighborhood

It’s possible that you know your neighborhood quite well and are aware of the selling prices of many homes in the area. However, an experienced agent will have a good grasp on the history of your neighborhood and has probably sold a house in your area before. While research is great, prior knowledge can give them a leg up in determining exactly how you can price your house for maximum success. Instead of having to guess at what will work, they will have the know-how to make a sound judgment.

Marketing Know-How

Most real estate agents have dealt with the ups and downs of the market, and this generally means that they’ve learned how to succeed even when the chips are down. When it comes to marketing, the right agent will have the contacts and the savvy to determine the best approach for selling your home. Whether it involves posts on social media sites like Facebook and Twitter, an online website or an Open House, an agent will know how to appeal to your ideal buyer and garner you the best offer around.

Closing The Deal

With so much money involved for both the seller and the buyer, the likelihood of getting your asking price right off the bat is not high. In situations like this, it’s more than a little helpful to have a real estate agent around who understands the negotiating process and how to close the deal. Not only will they be able to advise you on what your home is worth and what it can garner, they can also advise you on when you should consider a lower offer.

It may be tempting to go it alone when it comes to selling your house, but the right agent can be instrumental in marketing your home and getting you the price you’re asking for. If you’re currently preparing to put your home up for sale, contact your local real estate professional for more information.

What Costs Can You Expect When Selling Your Home? Let’s Take a Look

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What Costs Can You Expect When Selling Your Home? Let's Take a LookFor many people, putting their home up for sale is an exciting time to determine what kind of financial boon they’ll reap. With real estate on the rise, there are plenty of opportunities to see financial gains. Unfortunately, even if you’re selling your home, there are still going to be costs involved before ownership is transferred. If you want to be prepared for what to expect, here are some costs to watch out for.

Real Estate Agent Fees

As with buying a home, there will be costs involved in selling your home with an agent who will take a percentage out of the total sale of your home. Fortunately, while this will cost money, utilizing a real estate agent will probably garner you more money than you would have been able to get by putting your home on the market yourself. If you do want a better deal, it may be worth talking to your agent and seeing if they’re willing to negotiate on their percentage.

Agreed-Upon Closing Costs

It’s not uncommon nowadays for homebuyers to request their closing costs be paid by the seller in order to secure a deal, but it’s worth understanding what these fees may consist of. While there may be fees for the home appraisal, property transfer, and title insurance, there may also be maintenance costs you’ll have to take on following the home inspection. As a result, it can be important to do any home touch-ups before you’ve set a date for the open house as these can lower the offers on your home.

Moving Costs

Even if you have a big truck and a lot of heavy lifters in your family, there’s a good chance that you’re still going to require a moving company to take care of many of your items. You may be able to minimize these costs by moving in pieces and leaving the heavier items for the movers, but if your home sale is closing quickly, this work might best be left to the professionals. It will be worth getting quotes from a handful of trusted local movers to see who comes recommended at a reasonable price.

It’s easy to get caught up in the concept of selling your home, but even along with selling come many costs you’ll want to be aware of. If you’re preparing to put your home on the market, contact your local real estate professional for more information.

Family Matters: The Pros and Cons of Selling Your Home to a Family Member

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Family Matters: The Pros and Cons of Selling Your Home to a Family MemberIt can be a stressful experience to put your home on the market and wait for offers in the hope that you’ve priced it right. However, for those who are considering selling to family members, the sale of a home can be fraught with just as much stress before and after sealing the deal. If you’re wondering if it’s a good idea to sell to a family member, here are some things to consider beforehand.

Providing A Discount

Whether you’re selling to a sibling or a child, you may be considering offering the home at a discount to help them out. Fortunately, since the discounted value will be different than the market value of the price, this may mean a taxable gain when it comes time for them to sell the property after a few years of residing in it. On the other hand, if your financial health is not the best, selling at a lower price to a family member can create an undue financial burden for you.

An Owner-Financed Sale

If you’re trying to help your child get on their feet, the option exists for an owner-financed sale where your child will be making monthly payments to you. This provides the benefit of not having to worry about a lender and avoiding interest rates on top of the payment. While this can be a great feeling as a parent to be able to help your child, it’s important to weigh the decision carefully to determine that your child will not default on the loan and it won’t be tiresome for you to act as the lender.

Keeping It In The Family

For most people, the home they live in has sentimental value, whether they’ve lived there for a few years or it’s been in the family for generations. That’s why it can be a great comfort for many to sell to a family member who will understand the house’s history and the family traditions. If the deal is going to put a strain on relationships, though, it may not be worth the well-being of the family to keep the home among the relatives.

It can be a comfort to sell a home to a family member and secure their well-being, but there can be financial hurdles involved that can have an adverse impact on the relationship. If you’re currently considering selling to a family member, contact your local real estate professional for more information.

Location, Location, Location: How to Ensure You’re Buying a Home in the Right Community

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Location, Location, Location: How to Ensure You're Buying a Home in the Right CommunityWhen investing in a home, one of the most important things is buying a place that you and your family can feel comfortable in. However, while a place you can envision yourself in is important, it’s not worth neglecting the neighborhood you’ll be moving into for the perfect home. If you’re wondering what you should be looking for in the neighborhood you choose, here are a few things to consider before making an offer on a home.

Is It Safe?

It may be common to feel bowled over by a home and want to invest immediately, but the right home in the wrong neighborhood may not be the best choice for many reasons. Part of feeling comfortable in your home is being safe among its streets, so ensure you research the neighborhood and its history, and check in on the crime rate. You may even want to consult with your agent or some local neighbors to see what information they can provide about the area’s history.

Are There Local Amenities?

If you’re used to getting in the car to run errands, it might not be a big deal to not have a grocery store or pharmacy nearby. However, if there are no amenities you use frequently close by, it can start to be a bit of a drain on your lifestyle. While you don’t necessarily need to have the trendiest restaurants or best shopping, it’s important to have a few choice places in case you run out of something and need to make a quick run to the store.

What’s Your Neighborhood Style?

It might seem like a strange thing to ask yourself, but the neighborhood you live in is going to become a big part of your life and that means you’ll have to see yourself in it. If you want neighbors you can trust and community-mindedness, you’ll want to seek out an area with these qualities. On the flip side, if you happen to prefer a busier urban atmosphere that offers more independence, this may be the way to go.

There are a lot of things that go into finding the right home, but it’s important not to forget about the neighborhood you’re living in and what it will mean for your lifestyle. If you’re currently looking into homes and are trying to determine an area that will work for you, contact your local real estate professionals for more information.