Steps to Take Towards Purchasing a Home in 2022

Steps to Take Towards Purchasing a Home in 2022

New Year’s is a great time for reflection and setting new goals and intentions for the upcoming year. Even if you don’t subscribe to making resolutions, it can still be a nice marker of time and a chance to reorient and regroup around your goals. If one of those goals happens to be buying a home this year, here are a few steps to take now to ensure you’re ready!

 

1. Start (or keep) saving

Buying a house is an expensive process. Not only is there a down payment to consider but there are other costs associated with it. You’ll need funds for closing costs, moving expenses, and any initial projects you might want to tackle. You’ll also have to consider HOA fees, homeowner’s insurance, and property taxes. So, if you’re already saving, great! Keep it up. If not, start that now while you get your other ducks in a row.

 

2. Keep an open mind

While we all have our dreams in mind when house-hunting, stay open to other possibilities. Stay flexible in your location, amenities and must haves. The current market is still a seller’s market, meaning there’s lower inventory and higher prices. So, staying a bit more flexible and open with your must-haves will broaden your options and lead you to a great place sooner. If you only look at turnkey properties, you might miss great homes in your price range with more square footage or bigger outdoor spaces. Or if you are set in stone about a single family detached home, you might miss that townhouse in your dream location.

 

3. Be firm in your budget

Once you know how much your maximum budget is for purchasing a home, stick with it. It’s tempting to want to win at all costs, especially if there are multiple offers on the table. But if you throw in extra cash attempting to win the bid, you might end up with more mortgage than you can comfortably handle. One pro tip is to look only at houses slightly below your maximum price point. Let’s say you can feasibly afford a $300,000 home. Perhaps only look for homes $250,000-$275,000. This way you won’t be as tempted to go over budget if you need a little extra to throw in for leverage during a bidding war situation.

 

4. Stick with it

In today’s market and real estate climate, you might not land your dream home on the first try. But don’t get discouraged. That’s completely normal in a seller’s market. Stick with it and be persistent to achieve your goal. And with a reliable and experienced real estate professional beside you every step of the way, you’ll be successful in the end. They can help you navigate composing an offer, negotiating the details of a contract and closing the deal.

 

If you hope to make this the year you invest in real estate and start growing your equity, give me a call and let’s get started.

4 TIPS FOR MOVING INTO A NEW HOME

4 TIPS FOR MOVING INTO A NEW HOME

 

Moving into a new home can be an exciting and overwhelming process. You’ll be eager to unpack, decorate, and invite loved ones over for a housewarming party. While you’re getting settled, keep these tips in mind.

 

1. Change The Locks

Even if you’re not worried about the previous owner, there’s no way to know who may have a copy of your house keys. As a safety precaution, I recommend changing our your locks and making new keys. Nothing beats the feeling of being safe at home and knowing no one out there has your keys except for you.

 

2. Make A Plan For What Goes Where

Moving is already a stressful process, so a good way to avoid further frustration is to determine where your belongings will go in your new home. Measure your furniture and use painters tape to map out items in your new space. This will help you know exactly where everything goes and save time once the movers have pulled away.

 

3. Make Repairs A Priority

Your home inspection should give you a general idea of what needs to be repaired in your home, but it’s a good idea to do your own walk-through and take photos. You probably won’t get to all the repairs right away, but you can prioritize the more important projects and keep a running list of items to complete over time.

 

4. Get To Know Your Neighbors

Meeting your neighbors is a lot less awkward when done soon after moving in. While you don’t need to knock on every door with a dozen cookies, be sure to say hello when you see your neighbors in passing. Who knows, you may make some great new friends!

 

While there’s so much to do when moving into a new home, prioritizing these items can help to make the process a little easier.

Why NOT to Skip the Home Appraisal and Inspection When Buying in NJ

Why NOT to Skip the Home Appraisal and Inspection When Buying in NJ

 

It’s tempting to cut corners in order to stand out in a crowded housing market. As a buyer in New Jersey, you want your offer to win out. You may think offering to waive the home appraisal or home inspection is a good way to propel you to the top of the list. However, this could cost you more later on. While it may be annoying to keep these steps, here are a few reasons to stick with them.

Skipping the appraisal could cause an appraisal gap.

The appraisal is a tool lenders use to fairly evaluate the value of the home before they lend you the money to purchase it. Appraisals are done by third parties and are unbiased. They let the bank know what is fair. However, because of bidding wars, which can drive up the sale price of a home, the home could end up selling for more than it was appraised for. This is called the appraisal gap.

This could cause you to pay more out of pocket.

When this gap happens, often sellers will require you to pay the extra that the bank won’t spring for out of your pocket. This could be hard for you to come up with last minute on top of a down payment. If you do the appraisal and find out ahead of time, it’ll save you from that situation.

Skipping the home inspection could lead you to miss defects and problems.

The home inspection is an evaluation of the home for problems and defects that you might not have been aware of at a showing. An independent, unbiased, third party also does this inspection. This is an important step because oftentimes the sellers’ themselves may not be aware of glaring issues. So it’s not necessarily that sellers are keeping information from you. But rather perhaps they didn’t realize how old the roof is or that the HVAC system is faulty. These are big and expensive problems to fix. Without the inspection, you might not know that these issues or others are going to fall into your hands sooner rather than later.

This could take away some of your negotiating power.

When you do take the time to do the home inspection, it can give you negotiating power with the sellers. Perhaps there is a red flag and the roof or foundation is not in the best shape. This knowledge allows you to push the price down in negotiations so you can save the extra to go towards repairs.

This could also lead to you paying more out of pocket down the road.

It makes sense, then, that if you forgo the inspection and don’t know about any problems, you might pay more later. Not knowing doesn’t mean there aren’t any issues. It just means if you pay full price and then the roof starts leaking three months in, you might be strapped for the cash to repair it.

These are just a few reasons NOT to skip the appraisal and inspection. And as always, I’m only a phone call away for any questions you may have while buying. Let’s make your real estate dreams a reality.

Remote, In Person, or Hybrid? Buying a Home For Your Work Needs.

Remote, In Person, or Hybrid?

Buying a Home For Your Work Needs.

 

The pandemic has changed a lot of things about our present world. Remote working, for instance, seems to be here to stay, at least in some cases. In other situations, people are doing a hybrid system where they go into a workplace part time and stay home to work part time. And of course, for many people, remote jobs aren’t an option. We are so grateful to all those who have been working in person this whole time to help our world keep turning.

But if you are working remotely part or full time, it’s worth it to consider how your home can better meet your work needs. Here are some questions to think about.

 

Will I be working from home for the foreseeable future?

 

The first question to ask is if this working from home situation is here to stay for you. At least, is it here to stay as far as you can tell? If this last year and a half has taught us anything it’s that nothing is certain. But if you do know that your job has given permission to work remotely for now, it’s good to start thinking about what set up will best suit you.

And even if your situation is hybrid and you’ll be staying home to work only part time, this still effects what kind of space you need at home.

 

What options do I have for a home office?

 

If the answer to the first question was yes, then it’s time to think about what set up you need. Many of us had to make do over the last year and a half as far as home office space goes. Perhaps you had to share working space with a spouse or partner. Or maybe you have kids who also were stuck home and the house became an all purpose office and classroom. Maybe you were fortunate to have a designated office space at home already, in a spare room or off to the side somewhere. But you also might have found yourself working from a noisy dining room table or shut up in your bedroom all day without a proper desk.

 

Should I move?

 

One option you may be considering is to move altogether. Some of us find that with working remotely, we have more options on where to live. Without needing to be so close to a workplace location, maybe you want to move farther to the suburbs or country. Perhaps you just want more square footage and can financially manage that now. Maybe you’re taking care of a family member in your home as well, or your spouse’s job has also gone remote. It’s ok to want a home with enough space so that you’re not all crammed on top of each other. We all can make things work for a short time. But now that you know how your job situation is shaking out, maybe a move is in your best interest. If you’re looking to move this fall, it’s a great time to consider a home with an office or at least office nook.

 

Can I make this home more versatile?

 

If moving isn’t a viable option for you at present, how can you make your current home work smarter for you and your needs? Is there a guest bedroom you could multipurpose to turn into a dual functioning office/spare room? Or maybe there’s a vanity or bulky dresser in your bedroom you could replace with a streamlined desk setup. What about a nook under the stairs or off to the side in a living space? Having a designated office area will help tremendously in your productivity and concentration. So even if it’s not a completely private room, do your best to create an intentional space for working.

 

Use this guide to start determining what kind of home office situation you want moving forward. If the answer is to move, I’m here to help with all your real estate needs.

The Secrets to Building Wealth Through Home Ownership

The Secrets to Building Wealth Through Home Ownership

Building wealth is part of the American Dream. And yes, that dream is constantly in flux and ever changing depending on who you are and the unique goals you bring to the table. However a stable piece of that dream seems to be building wealth and moving towards financial freedom. Part of that involves owning a home. It’s not just about security and having that piece of the dream to show for yourself. It’s bigger than that. Owning a home can help you build wealth and move into greater financial freedom, for yourself as well as future generations.

What is wealth exactly?

In succinct terms, wealth is all the assets one owns minus any and all debts you’ve incurred. That’s the more technical definition that goes along with the math and simplifies you to numbers on a page. However, wealth means greater freedom. Having more wealth means the ability to save for retirement, achieve financial freedom, have more security and mobility to make financial decisions, and the means to save for future generations. Wealth allows you to live more fully in sync with your other dreams and goals.

How does owning a home help build wealth?

There are more ways to build wealth than home ownership. Some people achieve this through stocks and bonds. Others save from their income and pay off debt over time. However, home ownership is one of the most effective ways to build up wealth over time. Here are a few reasons why:
  1. Provides a stable investment: While you are able to live in this house and make it a space to call home and your own, it’s also providing an investment. You make monthly mortgage payments and those also double as monthly investment payments. It’s like an automatic savings account because each payment actually builds your investment.
  2. Provides a stationary monthly payment: You won’t have to worry about rent increases each year. You know what your fixed mortgage payment will be each month and can budget around that without the worry of rising rent.
  3. Provides tax breaks: You may be eligible for a tax deduction when you buy, especially if you’re a first time homebuyers. Look into what tax incentives and breaks are available to you.
  4. Provides you with a generational asset: You can pass down the home itself or the equity you’ve built up through owning a home to your children and grandchildren.
  5. Provides greater financial freedom: As you own your home for longer and continue to pay the monthly payments, you’ll find greater freedom to invest in other areas. You know your budget and that stability allows you to invest in stocks, retirement or other ways to save and grow your wealth. Not to mention, if you pay off your mortgage, you can really build that wealth and retirement without those monthly payments. Or you can always sell one home and purchase the next one, perhaps at a greater cost, thus building your wealth further.
Consider all these aspects of home ownership to determine when it’s the right time for you to take that step. I’m here to help with any and all questions you have along the way. Contact me today to learn more!

10 Questions to Ask a Real Estate Agent

How to Interview an Agent:

Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don’t ask you questions and probe for your motivation. You wouldn’t work with just any agent off the street, and good agents are just as selective about their clients, too.
Caution: Don’t interview agents from the same company!

1. How Long Have You Been in the Business?

The standard joke is there’s nothing wrong with a new agent that a little experience won’t fix. But that’s not to say that freshly licensed agents aren’t valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.

2. What is Your Average List-Price-to-Sales-Price Ratio?

Knowing the agent’s average ratio speaks volumes. Excluding sizzling seller’s markets, a good buyer’s agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer’s agent ratios should fall below 99%.

3. What is Your Best Marketing Plan or Strategy for My Needs?

As a buyer, you will need to know:

  • How will you search for my new home?
  • How many homes will I likely see before I find a home I want to buy?
  • Will I be competing against other buyers?
  • How do you handle multiple offers?
  • Do you present offers yourself?

As a seller, you will need to know:

  • Specifically, how will you sell my home?
  • What is your direct mail campaign?
  • Where and how often do you advertise?
  • Will you show me a sample flyer?
  • How do you market online?
4. Will You Please Provide References?

Everybody has references. Even new agents have references from previous employers.

  • Ask to see references.
  • Ask if any of the individuals providing references are related to the agent.
  • Ask if you can call the references with additional questions.
5. What Are the Top Three Things That Separate You From Your Competition?

A good agent won’t hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:

  • Honest and trustworthy
  • Assertive
  • Excellent negotiators
  • Available by phone or e-mail
  • Good communicators
  • Friendly
  • Analytical
  • Able to maintain a good sense of humor under trying circumstances
6. May I Review Documents Beforehand That I Will Be Asked to Sign?

A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.
As a buyer, ask for copies of the following:

  • Buyer’s Broker Agreement (is it exclusive or non-exclusive?)
  • Agency Disclosures
  • Purchase Agreement
  • Buyer Disclosures

As a seller, ask to see:

  • Agency Disclosure
  • Listing Agreement
  • Seller Disclosures
7. How Will You Help Me Find Other Professionals?

Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term “affiliated” because it could mean that the agent and her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. How Much Do You Charge?

Don’t ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer’s agent, for a total of 7%.

9. What Kind of Guarantee Do You Offer?

If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company’s policy about canceled agreements? Has anybody ever canceled an agreement with her before?

10. What Haven’t I Asked You That I Need to Know?

Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take her time with you — to make sure you feel comfortable and secure with her knowledge and experience. She should know how to listen and how to counsel you, how to ask the right questions to find out what she needs to know to better serve you.

Right Answers to Your Agent Interview Questions

It’s not enough to know which questions to ask your agent. The answers to those questions are how you will figure out which agent to hire. Below are the best answers to each question.

1. How Long Have You Been in the Business?

While I am not suggesting that you hire some aging geezer with a cane, experience does count. It can mean the difference between knowing how to handle a difficult situation to ignoring it or not recognizing the signs of a potential problem before it develops into a crisis. Minimum of five years’ experience.

2. Average List-to-Sales-Price Ratio

When hiring a listing agent, expect to see list-to-sales ratio within 97% to 100% in a buyer’s market; in a seller’s market: 100% to 110% of list price.When hiring a buyer’s agent, expect to see list-to-sales ratios within 90 to 97% in a buyer’s market; in a seller’s market: 100% to 103%.

3. Best Marketing Plan / Strategy

As a buyer, you should expect to see 5 to 7 homes a day, for as long as it takes to find your home. All the homes should fit your parameters, and the agent should preview those homes for you. The agent should also agree to solely represent you and not represent other buyers who are competing for the same inventory.As a seller, you would like your agent to advertise weekly for you, do direct mail, send e-flyers, produce four-color brochures, and present you with a marketing campaign designed specifically for you.

4. References

You might find references on an agent’s Web site, but you should also ask to see letters of reference. Clients often send thank you notes or letters to the agent’s broker. Check a minimum of three references.

5. Top Three Things That Make the Agent Different

Examples can range from marketing to knowledge. Acceptable answers are:

  • Strong repeat record of satisfied customers
  • Extensive online marketing
  • Good negotiation skills
  • Assertive, doesn’t take no for an answer
  • Strong communicator.
6. Review of Documents

As a buyer, ask to see a sample purchase agreement and ask the agent to point out your cancellation rights in this document. If the agent hems and haws, or hesitates to explain the purchase agreement to you, hire another agent.As a seller, ask to see the listing agreement. Ask about reserving the right to sell the home yourself. If you see a fee you do not understand, question it.

7. Affiliation with Related Professionals

Ask the agent if the title company she recommends charges competitive fees. All agents build teams of professionals, from title companies to escrow officers to mortgage lenders, home inspectors and appraisers. Ask if the agent’s company is receiving compensation for the referral. If so, you might want to choose another professional. Payment of some referral fees are against the law.

8. Agent Fees

All fees are negotiable. If you are a buyer, ask the agent if the fee stated in the buyer’s broker agreement will be adjusted if the offered seller’s compensation is lower.If you are a seller, ask about discounted fees. Sometimes agents will match fees offered by other agents.

9. Personal Guarantee

If the agent will not release you from a listing agreement prior to its expiration upon request, then you should hire another agent. Ask about it before you sign a listing agreement. Ditto with a buyer’s broker agreement. Some agents will release you; others will not.

10. Other Questions

You might ask the agent to reiterate your goals and objectives. If the agent does not appear to have a thorough understanding of what you want, despite your attempts to explain what you want, then hire somebody else. Some agents do not listen very well. You want an agent who will listen to you and communicate with you. The best way to find out if the agent comprehends your desires is to ask the agent to repeat it back to you.

How Owning a Home Benefits You

You probably know that owning your own home can benefit you financially, but home ownership comes with a surprising number of health, wealth and social perks too. Check out these five ways home ownership could be making your life even better:

1. Homeowners report better psychological and physical health than non-owners.
2. Homeowners are far less likely to become crime victims than non-owners.
3. Homeowners are more likely to live in neighborhoods with more opportunities for school involvement or participation in neighborhood activities.
4. The average homeowner’s net worth is 35 times that of the average renter.
5. Homeowners bring stability to neighborhoods. They move far less frequently than non-owners, and hence are embedded into the neighborhood and community for a longer period.

Source: National Association of REALTORS®

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