Destin & 30a Real Estate BlogRecently posted or modified blog posts by tag - Buyer tipshttps://www.destinpropertyexpert.com/blog/Copyright DestinPropertyExpert.com2023-12-08T14:16:52-07:00tag:destinpropertyexpert.com,2012-09-20:35896Home Resale: 6 Fixes You Should Leave to the ExpertsPurchasing a home is a huge financial commitment, and selling it may be a fantastic way to recoup a sizable portion of that investment. Yet, there are some repairs you should leave to the experts if you're planning to <a href="https://www.destinpropertyexpert.com/blog/8-creative-ways-to-market-your-house-for-sale/">put your house on the market</a>. These changes can be difficult to complete, and if you don't, you might end up paying more in the long run. The following six house repairs are ones you should leave to the professionals.
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/Home-Resale_-6-Fixes-You-Should-Leave-to-the-Experts-1.jpg" width="750" height="422" alt="Fixes that should be left to the experts" style="margin: 9px auto; display: block;" />
Flooring Upgrades
Your home's value and appearance can be significantly impacted by the <a href="https://www.destinpropertyexpert.com/blog/versatile-flooring-designs-concrete-hardwood/" title="Concrete and wood floors" target="_blank">flooring you choose</a>. To guarantee that the project is done correctly, contacting a skilled flooring contractor is crucial. It's preferable to leave flooring to the experts if it's outdated, broken, or needs repair. To ensure a high-quality finish, a flooring contractor can assist you in selecting the appropriate materials and adequately installing them. A professional can also ensure that your new floors are properly maintained and sealed, increasing longevity. They can also provide you with a warranty, giving you confidence and peace of mind.
Structural Repairs
It's crucial to remedy any structural problems with your house before placing it on the market, such as a fractured foundation or sagging roof. It's preferable to hire a <a href="https://www.destinpropertyexpert.com/blog/red-flags-hiring-contractors/">qualified contractor</a> with experience in this field for these repairs because they require specialized knowledge and tools. To make sure that your home is secure and structurally sound, they can evaluate the amount of damage and develop a solid strategy to fix it. They have the tools and knowledge required to evaluate the harm and create a workable restoration strategy. A contractor can also assist you in staying within your budget and avoiding costly errors.
Plumbing Work
Plumbing problems can be time-consuming and hard to resolve. This work is also intricate and demands specialized skills and equipment. If you're dealing with blocked drains, for instance, it's best to leave it to the professionals. A qualified plumber can identify the problem and offer the best fix. They can safely and effectively unclog drains using the right equipment and knowledge, minimizing potential harm to your home's plumbing system. A skilled plumber can also ensure that the job is completed safely and per the law, avoiding any potential dangers or expensive errors. They can also advise you on preventive measures and uncover any underlying issues causing your plumbing problems.
Electrical Work
Electrical work is challenging and risky; if done improperly, it can result in severe injury or even a fire. It's better to leave updating your home's electrical system, adding outlets, or installing new lighting fixtures to a certified electrician. They have the expertise and experience required to guarantee that the work is completed in a safe and code-compliant manner. Electrical work can often be frustrating and time-consuming. If you don't have any experience in the field, the job could take much longer to do and you might make costly mistakes. A qualified electrician can complete the task quickly and effectively, giving you more time for other activities.
HVAC Systems
Your comfort and well-being depend on your home's heating, ventilation, and air conditioning (HVAC) system. It's recommended to leave repairs or replacements to the experts if <a href="https://www.h2horganizing.com/blog/2020/7/8/guest-post-pros-and-cons-of-hvac-systems">your HVAC system</a> is old or not performing properly. A certified HVAC contractor can identify the issue and suggest the best course of action, which may involve replacing or repairing your system. They can also guarantee that the work is completed securely and following the law, providing you with a functioning HVAC system that will increase the value of your house. An expert can also advise you on how to save energy and assist you in selecting the best system for your home.
Roofing Work
One of the most crucial components of your home's structure, the roof, shields it from the weather. A new roof is a substantial investment, so it's crucial to get it right. It's essential to consult a qualified roofing contractor <a href="https://www.destinpropertyexpert.com/blog/the-most-common-roof-problems-homeowners-encounter/">if your roof needs to be repaired</a> or is damaged. They are trained to choose the best course of action and can carry out the repairs securely and effectively. An expert may also provide you with a warranty and assist you in <a href="https://www.destinpropertyexpert.com/blog/choosing-roofing-designs-for-houses/" title="Choosing the right kind of loose materials" target="_blank">selecting the appropriate materials</a>, giving you peace of mind. They may also aid you in maintaining and extending the life of your roof. A professional roofer can also spot any underlying problems, such as inadequate insulation or ventilation, that may have damaged your roof.
Final Words
In conclusion, hiring specialists to handle these six house resale adjustments will help you save time, money, and aggravation. Professionals can guarantee that a task is completed accurately and safely since they have the required skills, knowledge, and equipment. Experts can also offer helpful tips and guidance on preserving and raising your house's value.2023-04-27T15:52:00-07:002023-11-19T20:37:20-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:35262What Are The Steps For Buying A Vacation Home In Santa Rosa Beach Florida?Are you dreaming of owning a vacation home in Florida's beautiful Santa Rosa Beach? You're not alone. With its stunning beaches, outdoor activities, and growing real estate market, it's no wonder more and more people are considering <a href="https://www.destinpropertyexpert.com/blog/30a-map-and-things-to-do/" title="Investment properties on 30a" target="_blank">buying property along South Walton and Scenic 30A</a>.
<img src="https://assets.site-static.com/userfiles/2042/image/blog/What-Are-The-Steps-For-Buying-A-Vacation-Home-In-Santa-Rosa-Beach-Florida_-1.jpg" width="750" height="422" alt="Buying a vacation home in Santa Rosa Beach, FL" style="margin: 9px auto; display: block;" />But where do you start? In this blog post, we'll guide you through the steps to prepare for buying your dream vacation home in Santa Rosa Beach. From assessing your finances to making an offer and understanding legal considerations, we've got you covered.
So let's get started!
Reasons To Consider Buying A Vacation Home In Santa Rosa Beach, Florida
Beautiful Beaches And Scenery
Santa Rosa Beach, Florida, is famous for its beautiful beaches and breathtaking scenery. The area's white sandy beaches, crystal-clear emerald waters, and protected natural surroundings attract many vacation home buyers to <a href="https://www.destinpropertyexpert.com/homes/beachfront/" title="Beachfront homes on the Emerald Coast of Florida" target="_blank">invest in beachfront properties</a>. Owning a piece of paradise on this stretch of the Gulf Coast means waking up every day to gorgeous sunrises and feeling the gentle sea breeze.
Moreover, Santa Rosa Beach offers visitors and residents an excellent opportunity for outdoor activities such as fishing expeditions, swimming with manatees, hiking or jogging in the numerous parks nearby. With its laid-back beach atmosphere that exudes relaxation, Santa Rosa Beach also serves as a perfect sanctuary for anyone looking to escape from their hectic lifestyle- making it an ideal location to consider buying a vacation home.
Easy Access To Outdoor Activities
<a href="https://www.destinpropertyexpert.com/santa-rosa-beach/" title="Santa Rosa Beach homes for sale" target="_blank">Santa Rosa Beach, Florida</a>, is a paradise for those who love outdoor activities. With its pristine beaches, stunning lakes, and lush forests, the area offers endless possibilities for biking, hiking, kayaking, or paddleboarding. Whether you're looking to explore the natural wonders of <a href="https://original.newsbreak.com/@danny-margagliano-1600671/2954996111072-explore-south-walton-beach-florida-s-5-state-parks" title="South Walton Beach state parks" target="_blank">Grayton Beach State Park</a> or take a fishing trip in Choctawhatchee Bay, there's something for everyone here.
Owning a vacation home in Santa Rosa Beach ensures that you have easy access to these amazing outdoor opportunities whenever you want. You can wake up to beautiful sunrises over the Gulf of Mexico and spend your days exploring the Emerald Coast's many hidden treasures. Plus, with rental potential in mind, it can also be an <a href="https://www.destinpropertyexpert.com/blog/what-to-look-for-when-buying-investment-vacation-property/" title="Buying investment vacation properties" target="_blank">attractive investment opportunity</a>.
Growing Real Estate Market
The real estate market in Santa Rosa Beach, Florida, is experiencing a significant growth trend. The area has witnessed an increase in prices per square foot, which makes it an attractive location for buying a vacation home. This growth is attributed to the high demand for property in Santa Rosa Beach due to its beautiful beaches and outdoor activities.
If you are <a href="https://www.destinpropertyexpert.com/blog/vacation-homes-excellent-investments/" title="Why vacation homes are great investments " target="_blank">considering investing in a vacation home</a>, keeping up with housing market conditions is essential. Currently, the Santa Rosa Beach housing market favors sellers since homes don't stay on the market very long, and there are fewer homes for sale than in other locations. Although, this can change at any time, so consult Team Margagliano at 850-613-0929 for the most updated market conditions. Ensure you have a good credit history, as this can help secure more favorable rates when financing your purchase through home equity loans or mortgages; The minimum credit score for a home equity loan is around 620, but a score of 700 or higher will provide better interest rate terms <a href="https://www.creditninja.com/guaranteed-home-equity-loans-for-bad-credit/" title="Having bad credit and still getting a home equity loan" target="_blank">(source)</a>.
Preparing To Buy A Vacation Home In Santa Rosa Beach
Assess your finances and financing options, define your must-haves and nice-to-haves in a property, research neighborhoods, and properties, and consult with a local real estate agent.
Assessing Your Finances And Financing Options
Before you begin your search for a vacation home in Santa Rosa Beach, it's important to have a clear understanding of your finances and financing options. Assessing your financial situation will help determine how much money you can spend on a property. Traditional mortgages are one option, but other financing alternatives such as HELOCs, second mortgages, and private loans may be more suitable depending on your individual circumstances.
In addition to assessing your finances, it’s crucial to define what type of property you're looking for and the specific features that are must-haves and nice-to-haves. This way, you won't waste time viewing properties outside of your budget or lacking the desired amenities. Researching neighborhoods and consulting with local real estate agents, Team Margagliano, can also provide valuable insight into market trends and pricing expectations in Santa Rosa Beach. By considering all these factors carefully before making an offer on a vacation home, you'll set yourself up for success as a new owner in this vibrant community.
Defining Your Must-haves And Nice-to-haves In A Property
Defining your must-haves and nice-to-haves in a vacation home property is important. Must-haves are non-negotiable features that will make your stay comfortable and enjoyable, while nice-to-haves are additional features that would be great but not deal-breakers. Consider factors such as location, size, amenities, nearby attractions, and potential rental income.
Knowing what you want ahead of time will save you from getting overwhelmed with options <a href="https://www.destinpropertyexpert.com/blog/the-ultimate-home-buyers-timeline/" title="Homebuyers timeline" target="_blank">during the buying process</a>. Additionally, it helps your real estate agent narrow down properties that suit your needs faster. Keep in mind that defining these requirements goes beyond merely having a checklist; it goes into finding the ideal lifestyle for you or your family near the beach town's activities.
Researching Neighborhoods And Properties
When preparing to buy a vacation home in Santa Rosa Beach, researching neighborhoods and properties is an important step. Start by defining your must-haves and nice-to-haves in a property, such as proximity to the beach or access to outdoor activities. Researching neighborhoods can also help you assess the potential for rental income and appreciation of your investment.
It's important to consult with a local real estate agent with Santa Rosa Beach market expertise. They can provide valuable information about neighborhoods, schools, zoning regulations, and price trends. You should also take advantage of online tools that allow you to compare homes across different neighborhoods based on factors like square footage, bedrooms/bathrooms, amenities offered etc.
Don't forget that buying a vacation home involves different considerations than purchasing your primary residence—it's essential to assess the area's appeal from both the homeowner's and the vacation renters’ eyes if planning on renting. By doing thorough research upfront, you'll be able to identify opportunities and make informed decisions throughout the buying process for owning or <a href="https://www.destinpropertyexpert.com/blog/popular-types-of-vacation-rental-properties/" title="Types of vacation rental properties" target="_blank">renting out property at Santa Rosa Beach, Florida</a>!
Making An Offer And Closing The Deal
After researching neighborhoods, it's time to make an offer on your dream vacation home in Santa Rosa Beach. Negotiating the terms of the deal, conducting a thorough home inspection, and understanding legal and tax considerations will ensure a smooth closing process. Keep reading to learn more about owning and maintaining a vacation home in this beautiful Florida destination!
Negotiating With The Seller
When it comes to buying a vacation home in Santa Rosa Beach, negotiating with the seller is an important step to seal the deal. Before starting negotiations, we will research comparable properties and their prices in the area. Knowing what other homes are selling for can give you leverage during negotiations.
During negotiations, be prepared to make multiple counter offers before reaching a final agreement. The seller may not accept your first offer or any of your subsequent offers. However, you can use this as an opportunity to negotiate on price and other terms such as move-in dates or contingencies. It's also essential to understand that sellers can reject offers for various reasons other than price alone, such as contingencies and financing.
Remember that negotiations are an intricate process involving give-and-take from both parties. By working collaboratively with sellers while staying firm on their must-haves, buyers can easily reach satisfactory agreements that work best for both sides of the transaction.
Conducting A Home Inspection
Once you've found the perfect vacation home and you are under contract,<a href="https://www.destinpropertyexpert.com/blog/how-important-is-a-home-inspection/" title="Is a home inspection important?" target="_blank"> conducting a thorough home inspection is essential</a>. A home inspection is designed to identify any potential issues with the property and can be negotiated with the seller before closing. It allows buyers to ensure they're making a sound investment.
<a href="https://www.destinpropertyexpert.com/blog/what-to-expect-with-a-home-inspection/" title="Expectations from your home inspection" target="_blank">During a home inspection</a>, an inspector will assess the property's interior and exterior for any potential issues. This typically includes inspecting the roofing, walls, electrical systems, plumbing, etc. By obtaining an independent opinion on what could be large expenses down the line, the home inspection will point out any potentially broken, damage, or things not in good condition.
Understanding Legal And Tax Considerations
When making an offer and closing the deal on a vacation home in Santa Rosa Beach, it is crucial to consider some legal and tax considerations. Vacation rental income is taxable, but many rental property expenses can be written off. Various regulations and licensing requirements must also be taken into account when operating a short-term rental in Florida. Consulting with a real estate attorney who specializes in vacation rentals can help you navigate these issues.
Owning a vacation home exclusively for rental purposes allows many expenses to be deducted for tax purposes, including property taxes, insurance, and repairs. Still, capital gains taxes should also be considered when selling investment properties or vacation homes. Understanding these legal and tax considerations will help you make informed decisions as you prepare to buy your dream vacation home in Santa Rosa Beach Florida while avoiding any unforeseen financial surprises down the road.
Closing The Deal With A Real Estate Attorney
Closing the deal on a vacation home in Santa Rosa Beach, Florida involves several key steps, including, hiring a reputable real estate attorney to help guide you through the process. A closing attorney plays an essential role in ensuring that all legal requirements and regulations are met throughout the transaction. Their primary functions include conducting title examinations, preparing and reviewing documents, disbursing funds, recording the sale, and resolving any legal issues that may arise.
Working with a knowledgeable real estate attorney can significantly simplify your vacation home buying experience while giving you peace of mind knowing that all aspects of the transaction have been thoroughly analyzed and reviewed. Additionally, during closing deals for FSBOs (For Sale By Owners), having an experienced lawyer by your side can be especially beneficial as they can assist with creating legal agreements tailored to meet both parties' needs.
Owning And Maintaining A Vacation Home
Maintaining a vacation home in Santa Rosa Beach requires managing rental income, hiring a property manager, and keeping up with regular maintenance to ensure the property stays in top condition.
Understanding Rental Potential And Managing Rental Income
When investing in a vacation rental property in Santa Rosa Beach, it's critical to understand the rental potential and how to manage the income generated from renting. Factors like location, amenities, and competition can affect how much you can charge for rent. Conducting thorough research and working with a local property manager can help ensure that you price your rental appropriately.
Hiring a reputable property management company is crucial in managing your vacation home's rental income effectively. Property managers handle tasks such as advertising vacancies, screening tenants, collecting rent payments, and maintaining the properties. Working with an experienced property manager relieves some of the stress of owning a vacation rental while providing valuable insights on market trends that could help improve occupancy rates and returns on investment.
Hiring A Property Manager
Hiring a property manager for your vacation home in Santa Rosa Beach can be an excellent investment. A property manager can help you free up your time, and increase your returns. Helping you handle everything from marketing the property to managing rentals and dealing with maintenance issues. Plus, it's important to note that managing a vacation home yourself requires taking responsibility for things like linen, cleaning, and lodging taxes paid to local agencies - something that may not always be feasible.
When hiring a property manager in Florida, remember that they need a broker license, if they are handling rentals and leases for others while receiving a commission. But despite these requirements, working with an experienced professional can lead to a better overall management of your rental property. Property managers have extensive experience handling guest inquiries, preparing properties between stays, providing 24/7 service during renters' stay, and even arranging on-site staff such as cleaning crews or maintenance personnel. Should any issues arise, ultimately hiring the right company will provide superior management leading to maximum returns on your investment property.
Overall it’s essential to remember that maintaining a second home far away from where you live is challenging enough, as there will always be repair tasks waiting for attention. Still, when left unchecked these small problems could evolve into more significant issues costing more time and money than initially anticipated- this is one key reason why choosing the right person or team is paramount!
Maintaining The Property
When maintaining a vacation home in Santa Rosa Beach, Florida it is vital to ensure it remains in good condition and retains its value. Owners should budget for ongoing maintenance costs, which can include cleaning services, landscaping, and repairs. It's recommended that owners set aside approximately 1% of the total purchase price per year for upkeep.
When it comes to maintaining the property, hiring a reputable property manager can be beneficial. A reliable property manager can oversee maintenance tasks and ensure everything runs smoothly when the owner is away. Additionally, they can assist with renting out the home to generate income while also providing peace of mind that the property is being taken care of properly.
Tips For First-Time Vacation Home Buyers In Santa Rosa Beach
For first-time vacation home buyers in Santa Rosa Beach, it's essential to consider the potential costs beyond the initial purchase price. These costs may include property taxes, homeowners' association fees, and maintenance expenses. It's important to create a budget that accounts for all of these costs and plans accordingly.
To ensure that your vacation home is well-maintained and ready for renters or personal use, hiring a property manager can be beneficial. A local property management company can handle everything from cleaning, repairs, and marketing your rental when you're not using it. Additionally, networking with other vacation homeowners in the area can provide valuable insights on maintaining and managing your property effectively.
Considering The Costs Beyond The Purchase Price
Before buying a vacation home in Santa Rosa Beach, Florida, it's important to consider the various costs beyond just the purchase price. Mortgage interest rates and homeowners insurance are just a couple of expenses that can add up quickly. According to Forbes, the typical price for a vacation home is $429,000. Although, the average vacation home along 30a Santa Rosa Beach is closer to $1 million.
Additionally, maintenance expenses should also be taken into account when buying a vacation home. Regular maintenance tasks such as landscaping, cleaning, and general upkeep can cost thousands of dollars annually. It's important to ask questions and consider the budget when buying a vacation home, including whether or not owning this second home fits within your overall financial plan.
Planning For Maintenance And Management
Planning for maintenance and management is a crucial step in the vacation home-buying process. When considering purchasing a vacation home, it's important to factor in the inevitable costs associated with maintaining and managing the property. This includes things like cleaning services, regular maintenance work such as landscaping or pool upkeep, and repairs that may need to be made over time.
One option for managing your vacation home is hiring a property manager or utilizing property management services like those offered by Harmony Beach. These professionals can help remotely manage your rental property and take care of tasks such as advertising, booking guests, handling payments, cleaning services and more. Proper planning for maintenance and management will ensure that you're able to keep your vacation home looking great. A vacation home can also make a profitable investment opportunity if you plan on renting it out when not using it yourself.
Understanding Rental Potential And Limitations
It's vital to understand the rental potential and limitations of a vacation home in Santa Rosa Beach before making a purchase. While renting out your property can provide additional income, it's not always guaranteed. Vacation rentals are subject to seasonal fluctuations, and there may be competition from other rentals in the area. To have an understanding of the rental potential, speak with local real estate agents or vacation homeowners to learn more about market trends and demand.
But it's also important to note that owning a vacation home comes with certain limitations on how frequently you can rent out the property. Local regulations restrict short-term rental periods, so plan accordingly when considering how often you'll want to rent out your property. Also, take into consideration any expenses associated with renting out your vacation home such as cleaning fees or management costs which affect profitability long term. With careful planning and research, however, investing in a Santa Rosa Beach vacation home could lead to significant returns over time while providing one of life’s greatest luxuries: beach-time relaxation at your private resort-style residence!
Networking With Local Vacation Home Owners
Networking with local vacation homeowners can be an excellent way to understand the nuances of buying and maintaining a property in Santa Rosa Beach. Not only can you share tips on managing your vacation home, but you'll also gain insights into the rental market and meet people with similar interests. Many communities organize social events or online groups where vacation homeowners can connect and network.
Moreover, talking to other vacation homeowners may help you identify potential issues before they become problems. They'll likely have experienced many of the same challenges you will face as a homeowner. Reaching out to them when you need maintenance support or advice on finding reliable contractors or property managers. You might even discover new ways to maximize your property's income potential through short-term rentals, which are becoming increasingly popular in Florida's real estate market.
Conclusion
In conclusion, buying a vacation home in Santa Rosa Beach Florida, can be an exciting and rewarding experience. Whether you're looking to soak up the sun on the beautiful beaches or enjoy outdoor activities, this area has something for everyone.
When preparing to buy a vacation home, it's important to assess your finances and research neighborhoods and properties with the help of a local real estate agent. Making an offer and closing the deal requires negotiation skills and an <a href="https://www.destinpropertyexpert.com/blog/the-tax-advantages-of-investing-in-florida-real-estate/" title="Understand tax benefits of vacation home" target="_blank">understanding of legal and tax considerations</a>.
Once you become a proud vacation homeowner, keeping up with maintenance is crucial. Maintenance can be tricky while renting out your property. Although, it's important not to take shortcuts that could cost you more in the long run, remember to plan by considering all costs beyond the purchase price and networking with other vacation homeowners in the area. Owning a vacation home in Santa Rosa Beach can open doors to limitless possibilities.
2023-03-22T10:24:00-07:002023-03-23T08:36:40-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:34221Why UK Investors Are Buying Properties in Florida<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/Why-UK-Investors-Are-Buying-Properties-in-Florida-1.jpg" width="750" height="422" alt="this is why UK buyers are investing in Florida real estate" style="margin: 8px auto; display: block;" />If you are a UK-based property investor seeking opportunities overseas, the state of Florida, USA, should be at the top of your list.
This region offers a great deal to foreign real estate specialists. The article below explores why so many UK investors succeed in the Sunshine State.
The Weather
Florida’s wettest month is June, which typically sees rainfall of around 7.5 inches each year.
However, the state boasts very mild lows of 57°F / 14°C throughout winter, with summer highs reaching 88°F / 31°C.
Due to its comfortable climate - and easy access to the coastline in every direction but north - Florida is exceptionally popular with vacationers and tourists. According to <a href="https://www.visitflorida.org/resources/research/research-faq/" target="_blank">visitflorida.org</a>, the state saw approximately 122 million visitors in 2021 alone.
The Culture
Due to a rich influx of migrant settlers throughout the state’s history, Florida benefits from a huge range of diverse influences - including Caribbean, Latin American, Jewish, and European.
Home to the Everglades National Park, Floridians also have access to a wealth of art and theater in Sarasota and the fascinating history of St Augustine.
Visitors to Tampa Bay enjoy the colorful mix of cosmopolitan and classic culture, while Miami is synonymous worldwide with party lifestyles and luxurious celebrity homes.
Florida also boasts major stadiums in Jacksonville, Tampa, and Miami. Baseball, football, horse racing and golf are just a few of the state’s favorite sports.
The Activities
With an almost endless choice of golf courses scattered across the Sunshine State, it’s little wonder that Florida is the dream destination of golfing enthusiasts worldwide. The <a href="https://golfwithluck.com/best-golf-courses-destin-florida/" target="_blank">golf courses in Destin</a> are particularly popular.
<a href="https://www.destinpropertyexpert.com/homes/scenic-30a/" title="homes for sale in South Walton Beach on 30a">30a and South Walton Beach investment properties</a>
There is plenty more to do in Florida besides golf. The region’s leading tourist hotspots include:
Walt Disney World
Universal Studios
Sea World
Busch Gardens
Surrounded by an ocean on three sides, Florida also has sandy beaches galore, with plenty of opportunity for relaxation and watersports.
The Return on Investment
Due to the high number of tourists that head to Florida annually, there is a <a href="https://www.destinpropertyexpert.com/blog/real-estate-investing-30a-florida-beginners/">huge amount of money to be made in vacation rentals</a>.
There is scope for a great many managed properties in Miami, Orlando, and Tampa, as well as the areas surrounding the state’s golf resorts and leisure parks. This promises an excellent ROI, as homes of this kind can be rented to visitors throughout the summer months.
However, while Florida is clearly a magnet for tourists and house hunters alike, its popularity isn’t the only <a href="https://www.destinpropertyexpert.com/blog/investors-love-florida-panhandles-real-estate/">benefit to potential real estate investors</a>.
Along with the strong GBP to USD currency exchange in the state, property prices in the state are generally far more affordable than in the UK.
In December 2022, the average home in Orlando was available for just under $376,000, while in London, UK, the average property cost £666,507 (just over $821,400 at the time of writing) - this excludes the <a href="https://www.propertysolvers.co.uk/blog/cost-to-sell-a-house/" target="_blank">costs of selling</a>.
The Simplicity
Towards the end of 2022, <a href="https://todaysconveyancer.co.uk/report-shows-average-time-buy-house-increases-five-months/" target="_blank">reports </a>were finding that the average buyer was facing a wait of more than five months to complete the property purchase process in the UK.
By contrast, according to <a href="https://www.zillow.com/home-buying-guide/how-long-does-it-take-to-buy-a-house/" target="_blank">Zillow</a>, once a buyer is under contract in Florida, it takes just 30-45 days to close.
Even better: there is no requirement for foreign nationals to hold any special visa to be able to purchase a property in Florida - making the process far smoother and affordable than in other territories.
How to Buy Property in Florida, USA
1. Find an Agent<br />To find a suitable property in Florida, you’ll need to register with a suitable Buyer’s Agent. That specialist will liaise with local Sellers’ Agents and will then present you with a range of options.
Both the Buyer’s Agent and the Seller’s agent will be paid via a commission, which will be a percentage of the property’s final sale price.
2. Get a Lawyer<br />It’s also very important to ensure you have a good, independent, Florida-based lawyer to make sure everything goes smoothly in a legal capacity.
3. Attend Viewings<br />The more properties you can view in person, the better opportunity you will have to find the perfect house.
4. Make an Offer<br />If you decide to buy, you will need to instruct your agent to make your offer to the seller’s agent. The seller may make a counteroffer, so be prepared to negotiate.
Of course, if you will be relying on a mortgage to purchase your property, this will need to be arranged - or at least pre-approved - before your offer is made.
5. Complete Paperwork and Checks<br />Your lawyer should then get to work to collect all relevant information regarding the property and to complete the required paperwork.
6. Contract and Escrow<br />Once you are ready to make an offer, it must be put in writing and signed by both the buyer and the seller.
The next step (escrow stage) is for the buyer to make their earnest money deposit (EMD) to the title company. The buyer typically has three days to make the EMD to the title company after both parties have signed.
7. Closing<br />Your sale will usually close after around 30 days. You will then be the legal owner of the property.
Your Visa
If you are a UK property investor wishing to stay in Florida for part of the year and to rent out your home for the rest, all you need is a B-2 visa.
This visitor visa permits the holder to stay in the US for up to six months of the year - meaning your property could function as a holiday for the other six.
As is clear from the above, investing in Florida property can be a very intelligent and lucrative move for any UK-based property investor - whether the plan is to live in the property part-time or to run it as a full-time buy-to-let.2023-02-07T10:02:39-07:002023-08-20T13:12:08-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:33345Is it realistic to buy a house with student loan debt?<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/Buying_a_house_with_student_loan_debt.jpg" width="1280" height="720" />Buying a house is something many people dream of, as it comes with the security and safety they need. When you rent a house, there is always the risk of having to move out of it, as the landlord may raise the rent or sell the house. So, having your own house is what many students want after they graduate. But can you buy a house with student loan debt? Is it realistic?
Like most students, you might have already graduated college or university and you still have your student loan. Getting an education is a challenging process and above this, it can be expensive too. This is why many students decide to <a href="https://www.pewresearch.org/fact-tank/2021/03/08/amid-a-pandemic-and-a-recession-americans-go-on-a-near-record-homebuying-spree/" target="_blank">take a student loan</a> so that they can pursue their academic goals. But when you still have to pay for your student loan, you might ask yourself if it’s a good idea to buy a house. Let’s see.
Check Your Credit
The first thing you need to do is to check your credit. Sometimes, there might be errors in your payments or items that are past due and this will affect your ability to take another loan. Having student loan debt might feel like a burden sometimes, but if you take a job and combine it with studies from the very beginning, you can save a lot of money.
When you want to buy a house, you need to make a down payment, which is a percentage of the value of the house you want to buy. But working and studying at the same time might be challenging for some students, so you may need help with your assignments. You can get the best online help from top writers at <a href="https://ca.edubirdie.com/" target="_blank">academic writing services</a>, who can support you with your homework so that you can focus on your job and not have a student loan pause.
When you want to get a loan for a house, you first need to check your credit on the three major bureaus and see your reports. These will have a great influence on your ability to get credit for your house. It also helps if you're able to <a href="https://www.destinpropertyexpert.com/blog/first-time-homebuyers-in-santa-rosa-beach-how-to-get-help-with-a-down-payment/?caa=true">save up money for your down payment</a>. The more money you can put down the better chances of getting the loan.
Lowering Student Loans
If you are wondering whether it is realistic or not to buy a house with student loan debt, you should know that you can do this. However, it would be wise to analyze all your options and not make impulsive decisions, as you need to make a down payment for your house too. So, one of the essential things would be to lower your student loan, as mortgage lenders have to check what your debt-to-income ratio is. This has an influence over the loan you can get for your house.
But how can you lower your student loan? Well, you could refinance your student loan so that your monthly payment will be lower or you extend the deadline when you need to pay the whole amount of your student debt. Another option would be to combine working and studying so that you don’t accumulate any debt and you are on time with your payments.
When Buying a House Is Too Risky?
Even though you have some options to lower your student loan and check your credit so that you can make a wise decision, in some cases, buying a house might be too risky. Maybe your budget is already stretched and you do not have any flexibility. In this case, it would be better to not buy a house as this comes with additional costs, not only the monthly payment.
You also need money for house maintenance, as even though it might be brand new, some things might break along the way and you need urgent repairs, such as for the roof. If you do not <a href="https://www.forbes.com/advisor/banking/how-to-create-an-emergency-fund/" title="Having an emergency fund is a good idea" target="_blank">have an emergency fund</a> for these urgent repairs, you might need to borrow money for them which will make you end up in a higher debt than before.
Final Thoughts
If you have student loan debt and you are <a href="https://www.destinpropertyexpert.com/blog/buy-the-perfect-home-in-florida-first-time-buyer/" title="First time home buyer advice" target="_blank">thinking about buying a house</a>, you might wonder if buying a house is realistic. Well, it comes with risk, like any other decision where you need a financial investment. However, to make a wise decision, you need to check your credit before and see if you have any past-due payments. You can also <a href="https://www.earnest.com/refinance-student-loans" title="How to lower student loan debt" target="_blank">lower your student loan by refinancing</a> it or getting a job and combining it with studies. However, if you do not have an emergency fund and you are not prepared for the maintenance costs of the house and the down payment, then you might want to reconsider this decision.
2023-01-05T11:25:48-07:002023-03-08T08:14:25-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:33174How To Save Money While Building A Home For Your FamilyThe widespread belief that <a href="https://www.destinpropertyexpert.com/homes/new-construction-homes-30a-santa-rosa-beach-miramar-beach-and-destin/" title="New construction homes in Northwest Florida">new home construction</a> is too expensive is only one of several widespread clichés about the construction industry. Of course, constructing a brand-new house isn't cheap, and it could be <a href="https://www.destinpropertyexpert.com/blog/is-pensacola-beach-fl-good-invest/" title="invest in Pensacola Beach Florida" target="_blank">one of the biggest investments you ever make</a>.
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/save-money-while-building-a-new-home-1.jpg" width="800" height="450" alt="Save money on new construction homes" style="margin: 8px auto; display: block;" />The cost may seem high, but it's well worth it if you finish up in your ideal house. The truth is that your decisions will determine your brand-new home's price tag as you plan and execute its construction. You, the homeowner, get to set the spending limits, choose the areas to overspend in, and order the areas to save money.
Choose Your Builder Wisely
Picking the right constructor may make or break your project. The quality and cost of your home building experience are highly susceptible to the artistry of your chosen builders. The objective is to hire a reliable home builder at a fair price who will complete <a href="https://polebarnkits.org/pole-barn-homes/" title="Affordable pole barn homes" target="_blank">building a pole barn house</a> as planned and within the time frame given. Find the best deal by comparing the services of several local homebuilders.
Consider factors like recently finished projects, reviews, all-inclusive pricing, and affordable improvements. The builder should be aware of your financial constraints and top priorities so that he can make suggestions for minimizing project costs. You can save money by <a href="https://www.destinpropertyexpert.com/blog/how-choose-general-contractor/" title="Picking a good contractor" target="_blank">working with a professional home builder</a>. A reliable contractor will have the industry knowledge and connections to obtain the highest prices on building supplies and skilled labor while maintaining the highest standards throughout construction.
Stick To Your Budget
Before breaking ground on your new house, you must establish and adhere to a realistic budget. Assign the available funds to the various parts of the project, including the land, supplies, labor, and any unexpected costs. If you stick to a budget, you won't have to worry about running out of money midway through the job.
Please don't get carried away with extras; getting away with all the exciting possibilities and upgrades while <a href="https://www.destinpropertyexpert.com/blog/is-new-construction-right-for-you/" title="Is building a new construction home right for you?" target="_blank">building a home</a> is tempting. When budgeting for a project, it's important to focus on the most crucial aspects and cut back on the extraneous ones.
Shop In Bulk To Get Discounts
Looking around for the best prices on supplies and labor is important as building a house can be quite pricey. Look around at several vendors and service providers and see if you can get a better deal. Buying in bulk is another option that can save you money on materials. Create a detailed inventory of everything you'll need for the undertaking, including an estimate of how much of each item you'll require. You can use this information to make informed decisions about your bulk purchases.
Avoid settling for the first bulk supplier of building supplies you come across. To find the lowest price, you need to shop around. Get your supplies from distributors. To compete with retail establishments, wholesalers of construction supplies typically undercut them with lower prices. Although it is essential to keep costs down, you shouldn't scrimp on quality in pursuit of a lower price. Superior quality materials may cost more initially, but they will serve you better in the long run. It's typically better to follow the same, "buy it nice or by it twice".
Consider A Smaller Home
Pick a smaller house because it will be cheaper to construct overall and simpler to care for in terms of energy usage and upkeep. Carefully go through your family's space requirements and try to find a home layout that satisfies those demands without being too flashy. You will need to pick a smaller piece of land. It will save you money on anything from lumber to labor hours. Minimize the number of sharp corners and angles to reduce production expenses. A smaller home can be built for the same or less money if you opt for a floor plan with fewer rooms.
Use Energy Efficient Appliances And Materials
Saving money on utility costs can be achieved through the use of energy-efficient materials and appliances. <a href="https://www.destinpropertyexpert.com/blog/benefits-of-smart-home-solar-saving/" title="Benefits of solar power in a home" target="_blank">Solar panels</a>, low-E glass, and low-flow water faucets are a few ways to reduce energy usage. Using energy-efficient building materials is another option for cutting costs and carbon emissions during construction. Insulation, windows, and doors constructed to limit heat transfer are examples of such measures. Additionally, you can create electricity for your home by using solar panels or other <a href="https://www.huffpost.com/entry/renewables-clean-energy-climate-disasters_n_5fad67d1c5b6cae94043c56b" title="when the power goes out renewable energy keeps working" target="_blank">renewable energy</a> sources in addition to these measures. These systems may have a larger outlay but can provide significant cost savings over time.
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/construction-building-a-home.jpg" width="512" height="288" alt="A contractor building a new construction home" style="margin: 8px auto; display: block;" />
When building a house for your family, utilizing energy-efficient appliances and materials is a wise and cost-effective choice. You can protect the environment and cut costs on your electricity account at the same time if you use less energy. To illustrate, think of a half-prefabricated house. In the case of prefabricated houses, construction occurs away from the actual lot and is finished once the structure is in place. It's a great way to save cash on labor costs and make your house uniquely yours.
Use DIY Technique
Involve yourself in the process as much as possible; if you're capable and have the time, performing part of the work on your own is a good option. It might help you save cash on labor expenses and make your house more unique. However, stick to what you know and let the experts handle the more difficult tasks.
Doing your research and obtaining the necessary supplies means you won't have to pay contractors to go out and get them for you. If you buy the materials yourself instead of paying the higher prices that contractors charge, you can save a lot of money. You can save money on outside labor costs by taking on jobs independently. Besides making you feel more efficient, this can help you save money on labor.
Recycle Some Materials
Don't buy new when you can use recycled materials and save money. You might use salvaged wood, bricks, and other materials to cut costs. You can save money by reusing old bricks you find at construction sites or garage sales instead of buying brand-new ones. Upon cleaning, these bricks might be used once more in construction. Reclaim used timber from demolished structures like barns and warehouses.
Floors, beams, and frames are all possible uses for this timber. Use recycled metal for your roof and frames instead of brand-new metal. Building a home's financial and ecological effects can be mitigated this way. Consider putting in insulation made from recycled materials. Insulation materials, such as fiberglass, can be reused and recycled. Insulation made from recycled materials is an option to consider if you want to cut costs and minimize waste.
Fill Out A Construction Loan
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/get-a-construction-loan-1-1.jpg" width="800" height="450" alt="Use a construction loan" style="margin: 8px auto; display: block;" />Use a construction loan, a type of finance reserved for such building endeavors. You can get the money you need to finish the job and pay it back in installments as you go. When compared to outright payment, this may be the more economical choice. You may lock in the cost of constructing materials and labor with a construction loan at the current market rates.
It ensures that there will be no sudden increases in the cost of building your house. If you take out a construction loan with a fixed <a href="https://www.huffpost.com/archive/ca/entry/fixed-vs-variable-mortgage-rate_ca_5e29a897c5b6779e9c2eadeb" title="Fixed or variable interest rates?" target="_blank">interest rate</a>, you won't have to worry about your monthly payments rising or falling in response to changes in the interest rate while you're constructing your home. It can reduce your monthly mortgage payment amount. Reduce your out-of-pocket costs by avoiding a down payment with the many construction loans that don't call for one.
Pick An Easy On The Eyes Style
<a href="https://www.destinpropertyexpert.com/blog/make-your-home-feel-warm-and-welcoming/" title="How to decorate your home to feel warm and welcoming" target="_blank">When decorating your home</a>, an industrial or rustic style may be very forgiving, allowing you to leave some work incomplete while the space still appears put together. You can't go wrong with concrete floors if you're going for a minimalist, industrial style. It would be best if you only dyed one-third of your concrete floors; the rest can be finished without further coloring.
Perhaps you elected not to have the underside drywalled, but you still constructed a loft with stairs so you could sleep upstairs. The steps should remain unfinished in their original form of raw wood and plywood. They should look identical to how they did when they were first assembled, save for a fresh coat of paint. The unfinished wood has a rustic appearance, and the rest of your home has a rustic industrial feel.2022-12-27T12:18:08-07:002022-12-30T08:22:45-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:32600Top 7 Real Estate Questions and Answers from ProfessionalsReal estate agents act as intermediaries between property buyers and sellers. They are the ones who make the process of buying a home easy. If you are one, you will be having a lot of questions coming your way from both sellers and buyers. After all, people <a href="https://www.destinpropertyexpert.com/blog/top-five-reasons-to-purchase-a-30a-waterfront-home/" title="Reasons to purchase a home on the water">buying homes</a> don’t want their real estate investment to go to waste. Buying property is one of the important goals to achieve in terms of financial stability in one’s life.
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/Real-Estate-Questions-and-Answers-from-Professionals-1.jpg" width="800" height="450" alt="Real estate questions answered by professionals" style="margin: 9px auto; display: block;" />Individuals like to hire a real estate agent having an authentic profile and excellent past experience to fulfil their real estate needs. That is where it becomes all the more important to <a href="https://www.inman.com/2015/06/22/6-ways-to-earn-respect-and-trust-from-real-estate-clients/" target="_blank">establish trust with your clients</a>. You should answer each and every question your customer is going to ask you. Here we have come up with the top seven real estate questions and answers from professionals.
1. Explain the first step to buying a home
The first step to buying a home is to get pre-approval for a mortgage. It will help you go on the right path. First, find out how much you need to borrow. Now, you will be able to see only those options which are within your budget. It saves you from wasting your time.
The second step is when the lender will have a discussion with you to tell you about the money needed for the down payment and closing costs.
The final step ensures that getting yourself pre-approved for the mortgage shows that you are serious about buying a house to your agent as well as the individual who is selling his home.
2. How can I sell my home quickly?
Buying a home can take roughly about 10-12 weeksIn a normal market. In a sellers market <a href="https://www.destinpropertyexpert.com/blog/5-tips-to-sell-your-house-faster/" title="Sell your home as quickly as possible">homes can sell as fast</a> as between a few hours and a week. In a buyers market homes will typically sell between 3 and 6 months but sometimes it can take up to a year.
Once you have made an offer, the buying process can be completed within 30-45 days. The major factor affecting the time period for selling a home depends on the market conditions. It takes a little longer than usual in the markets where a lot of sales are taking place. You can <a href="https://www.levinrinkerealty.com/blog/how-to-hire-a-real-estate-agent-in-2022/" target="_blank">hire the real estate agent</a> for selling your home quickly and efficiently.
3. Explain seller's market
The increased demand for homes in the sellers’ market influences the prices.
Let’s see the factors driving the prices of homes
Economic factors – Here, the local market sees a significant increase and brings new residents, pushing up the prices of the home before building more inventory.
Interest rates – Interest rates give a kick to the affordability of a home, which spikes buyer interest. It is especially true for first-time home buyers who find it easy to afford bigger homes.
Low inventory – Sometimes, there are few home units available in the locality. In such cases, the prices may increase.
4. Explain buyers’ market
Buyers would love to buy when the prices are declining, and there is less demand. There are many factors that affect the short-term and long-term buyers' demand, like economic disruption, etc.
Interest rates – The borrowing amount is reduced due to the high cost of money. This decreases the number of potential buyers in the market. Home prices decline to match the needs of the buyers so that they can get the best deals.
High inventory – A new subdivision can affect the prices of older homes and put downward pressure on them, especially if there is a lack of desirable features in them.
Natural disasters – Recent occurrences of natural disasters can largely affect the property values in the areas where disruptions occurred.
5. What is the importance of credit score?
It is important to have a FICO score of 620 or more. Fair Isaac Corporation, shortly called the FICO score, is the tool that lenders use to determine whether a person qualifies for a credit card, mortgage, or other loans. The scores can range anywhere between 300-850. A higher credit score indicates less risk to the lender and a better interest rate.
It's important not to do anything to harm your credit score prior to buying a home. There are ways to i<a href="https://www.destinpropertyexpert.com/blog/how-to-increase-your-credit-score-when-getting-ready-to-buy-a-home/" title="Boosting your credit score">ncrease your credit score</a> that should be a priority between 6 and 12 months prior to making a purchase on a home. On the other hand, if you have a lower credit score, you need to bring more money to the table to reduce the risk of the lender.
6. How much money do I need to have to make a down payment?
11% is the national average for d<a href="https://www.destinpropertyexpert.com/blog/how-to-get-help-with-down-payment/">own payments</a>, including first-time and repeat buyers. <a href="https://www.destinpropertyexpert.com/blog/a-complete-closing-checklist-for-first-time-home-buyers/" title="First-time homebuyer checklist for closing">First-time buyers</a> tend to put down 3-5% in a home because they usually don’t have enough money saved to put down 20% for a conventional loan.
While it has been seen that conventional loans require a whopping 20% down payment. But some conventional loan programs have come up that allow a 3% down if you (the borrower) have private mortgage insurance. Usually, repeat buyers opt for these types of loans. They make their existing home a source of the down payment plus use equity from their current property.
7. Do I need to get the home inspection done?
The answer is a huge YES. If you want to take your home on FHA(Federal Housing Administration) or VA(Veteran Affairs) loan, you need to get the home inspection done. As far as other mortgage programs are concerned, you don’t need it. However, here is the catch: it <a href="https://www.destinpropertyexpert.com/blog/do-you-need-home-inspection-when-buying-home-destin/" title="Should you get a home inspection">is advisable to get a home inspection</a>. It helps let you know the defects in your home that you can detect easily. It brings you peace, and your investment won’t go to waste.
8. Can real estate prices be negotiated?
It is a truth that almost everything in the world of real estate is negotiable. Usually, you will see a difference between the list price of the home and the amount it actually sells for.
The situation of the current market determines the chances of negotiation. If you are the buyer, buy the home for less price if there is less demand and more supply. On the other hand, if you are the seller, your home will sell for less in this situation.
9. Common bank required repairs
If your buyer is <a href="https://www.destinpropertyexpert.com/blog/buy-the-perfect-home-in-florida-first-time-buyer/">purchasing a home</a> on a conventional loan, it is your responsibility to get major structural issues present in the home repaired like deteriorating roof or foundation cracks. This will help increase the home’s value.
If the buyer decides to get Federal Housing Administration loan, he will need to make more repairs like improving non-working appliances, repairing the broken gutters, or concealing any exposed wiring.This list can be more due to the fact that FHA provides loans to low-income homebuyers who may not have the ability to pay for the repairs on their own.
It is always advisable to check the local regulations of your states and banks.
10. Can I back out of an agreement of buying a home?
Yes, you can, but it can make you lose your earnest money. Sometimes, you might have to face legal consequences if your reason for backing out is not mentioned in the agreement. But there are some circumstances where it is understandable to break the agreement.
How you can back out of a contract for buying a home and lose your EMD
You have lost your job, you are unable to sell your current home
The home inspection fails to meet your satisfaction
The home does not appraise for equal or greater than the sale price
You cannot get a approval for the mortgage
Some other issues include – unrepaired problems existing in the home, or failed inspection.
11. Do I need to sell my current home before buying a new one?
The answer to this question depends upon how long have you been in the process of home searching. If you sell your home before buying a new one, you may have to live with your friends or get a short-term rental for a time being. In any of such cases, you will have to move out of your house twice and pay the expenses.
But you can’t deny the benefits of selling your home quickly as compared to other potential buyers.
If you witness the listing you want, make a strong offer with the cash. You need not worry about going overboard with your budget.<br />You can still wait for someone to make an offer that you love.
All in all, the answer to this question is wholly dependent on the availability of the funds in your account and your ability to find temporary housing options.
12. What is title insurance?
Title insurance tends to protect homeowners from false claims against their homes that took place before they bought the property. For instance – the failure of the owner to pay taxes.
If you have the title insurance in your name, you will be compensated for your legal fees or title disputes that may arise at the time of you being the homeowner.
There are two types of title insurance –
Lender title insurance – If you are a seller, you need to have lender title insurance. It protects you from any false claims made against the home.
Owner title insurance – It is an optional one but it is advisable that you opt for this. Paying one-time fees for owner title insurance will shield you from unexpected issues that can occur with the home’s title as long as you own the home.
It is a good idea if you consider purchasing both types of title insurance. You will be surprised to know that the total combined cost of purchasing both of them is only 0.5% of the purchase price of the home
To make a long story short
Your colleagues, clients, and sometimes even relatives rely on you for your best advice and insights on home buying, market, and sales. The above-mentioned are some of the common questions that you should know to give someone your best advice as a real estate agent if someone approaches you.
2022-11-24T13:07:12-07:002022-11-24T14:33:31-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:31732How to Make Sure Your New Home Is Ready for You to Move InPlenty of people can tell you horror stories about how they thought the home they're moving into was ready for them but then found out later that it wasn't. They may have walked through the home when they were <a href="https://www.destinpropertyexpert.com/homes/along-the-emerald-coast/">searching for a place to buy</a> and been happy with what they saw, but it wasn't until later that they realized the home was missing a few key elements or needed some extra work before it was comfortable enough to live in.
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/How_to_make_sure_your_new_home_is_ready_for_you_live_in-1-min.jpg" width="1280" height="720" alt="Before you move into your home make sure it's ready to go" style="margin: 9px auto; display: block;" />There are some aspects of the home you'll want to check before you try to move all your stuff in. You may be in a rush to get moved in and start enjoying your new place, but it's definitely worth waiting just a few days to check on some things and try to get everything squared away before you make the move.
Have It Cleaned
How long has it been since you walked through the house compared to <a href="https://www.destinpropertyexpert.com/blog/moving-relocating-panama-city-beach-fl/">when you're moving</a> into it? If it's been more than a week, it's very likely that the home is not as clean as it was when you last saw it. Not everyone will do a thorough cleaning of a house before they move out of it. They may have intentions to do so, but they don't always get the time. They may have left the home untidy, and it may not exactly be comfortable enough for you to move right into and feel that the place is both safe and sanitary.
It's worth it taking some time to clean the home yourself or get a <a href="https://nychousecleaners.net" target="_blank">professional maid</a> to do it for you. Going the professional route can help if you're short on time and you have other moving concerns to take care of.
However you manage it, make sure that the home is cleaned thoroughly so that it's as comfortable and germ free as possible.
Check All Plumbing, Fixtures, and Electrical Features
You also want to <a href="https://porch.com/advice/top-10-signs-home-good-condition" title="move-in ready home" target="_blank">make sure that your home is in working order</a> and that everything functions like it should. Even if you tested some of those things when you looked at the house last, they may not all be in the same condition. Also, your check of the home might not have been very thorough. Maybe minor problems with the home's plumbing, electrical, and fixtures weren't deal breakers for you, so you didn't check each one. It's worth it to check them all, though, before you move in. You don't want to expect a bathroom to function perfectly and then find out that it doesn't after you are already settled.
Related reading: <a href="https://www.destinpropertyexpert.com/blog/moving-checklist-remember-when-you-move/" title="The best Moving checklist">Make sure you have a moving checklist</a>
The advantage to doing these little checks before you move everything into your home is that you can start getting the ball rolling on having repairs done on the home before you get all the way in. At the very least, you can ensure the problems are fixed very quickly after your move-in day, so that you're not inconvenienced for very long.
Change out the Locks
You probably have a lot of stuff on your mind as you prepare to move into the new home, but one of the top priorities should be security in the home. How secure will you feel if the previous owners still have keys to the home? And they may have given spare keys to friends or neighbors as well. Until you change the locks on the doors of your new home, you will have no idea who has access to it. It's best to get this small task done as soon as possible, mostly focusing on the outside doors. Interior doors aren't nearly as important, and you may never need to change the locks on interior doors, but you definitely want to make sure that access into the home is as safe and secure as possible.
Check the Roof
Did you have the roof inspected before you bought the house or did you take someone's word for it that it was in good condition? This is one of those parts of the home that a lot of people don't put much thought into, mostly because it's not something they can get a good look at very easily. What will you do if there's a <a href="https://www.destinpropertyexpert.com/blog/the-most-common-roof-problems-homeowners-encounter/">problem with the roof</a> and you don't notice it until heavy rain starts falling? At that point, you'll have a lot of cleaning up, and you'll wish you had spent a little time and effort fixing the roof. It's worth it to have someone check the roof for you and then figure out what kind of repairs you want to have done. You may not need to do anything major in the short term, just doing some small fixes to make the home livable and the roof secure temporarily.
Do Small Renovations
Do you have a little time before you move into the new place? You should give it a look over and consider if there are any <a href="https://www.destinpropertyexpert.com/blog/finance-home-renovations-guide/">renovations you want to make</a>. It will be a lot easier to do these before you move in than after you are already in the place and have all your stuff in there. Having these little renovations done before the moving day can be advantageous so that you won't have to worry about the inconvenience later on.
These little changes can be something as simple as painting, changing out popcorn ceilings, adding extra space on to the house, <a href="https://www.destinpropertyexpert.com/blog/top-choices-of-glass-kitchen-cabinets-that-enhance-property-value/">updating the kitchen</a>, or changing out the flooring in a room.
Are You Ready?
We've just hit the major points when it comes to what you ought to do <a href="https://www.destinpropertyexpert.com/blog/sell-your-stuff-before-move/">before you move</a> into a home. There may be some other things you discover as you take another check through the house. Make good use of the time you have before you move in to see how many of these things you can get done so that your home will be really comfortable and welcoming for you when you are ready to live there.2022-10-07T09:52:00-07:002023-01-18T11:14:19-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:30617Buying the Right Condo: 10 Tips on Getting a Good Deal<img src="https://assets.site-static.com/userfiles/2042/image/Blog_1/Buying-the-Right-Condo-1.jpg" width="800" height="450" alt="Tips for buying the right condo in getting a good deal" style="margin: 11px auto; display: block;" />Buying a condo can be a great way to dive into homeownership without taking on all of the responsibilities of a single-family home. Condo-dwellers enjoy amenities like shared pools and gyms, a lower price tag, and less maintenance. Also, you don't have to live in a big city to find a condo - they can be found in smaller towns and some retirement communities. Just because condos come with some built-in benefits doesn't mean that finding the right one is easy – or that you'll automatically get a good deal.
Here are ten tips on how to make sure you <a href="https://www.destinpropertyexpert.com/blog/reasons-buy-panama-city-beach-condo/" title="Here's why you should buy a Panama City Beach condo">buy the right condo</a> and get a great deal in the process:
1. Consider Your Lifestyle
When considering a condo purchase, it's crucial to think about your lifestyle. What are your needs and wants? Do you need a lot of space? Or are you happy with something a little smaller? If you have kids, do you need a place with room for them to play? Is having a maintenance-free property vital to you if you travel a lot?
Once you know what's important to you in a property, it will be easier to rule out unsuitable condos. For example, if you want a large yard but the only condos in your budget are all in high-rise buildings, then it might be time to reconsider your budget. You can consider loft apartments if you are okay with a smaller space. The key is, to be honest with yourself about your needs and wants to find the right match.
On the other hand, if the size isn't an issue for you and you'd prefer to live in an area with more amenities like restaurants and nightlife, finding something downtown may be the better option. Knowing what's essential will help save both time and energy as you start touring different properties.
2. Find a Realtor Who Knows the Condo Landscape
<a href="https://www.destinpropertyexpert.com/blog/top-5-reasons-why-choosing-your-real-estate-agent-carefully-really-matters/" title="Choose your real estate agent carefully">Not all real estate agents</a> have the same level of expertise in condos. When you're ready to start looking for a place, find an agent who specializes in or has extensive experience with condos. They will know the ins and outs of the condo market and any potential red flags to watch out for.
A good real estate agent can also provide valuable insights into different buildings and units, which can help you narrow your search. For example, they may know that a particular building is going through construction or that a unit has been on the market for a long time because it's overpriced.
If you don't have any personal recommendations for agents, look for someone who is a Certified Condominium Specialist (CCS) or a Registered Condominium Professional (RCP). These agents have completed additional coursework and training specifically on condo properties.
3. Get to Know the Condo Board
One crucial step in the condo-buying process is getting to know the condo board. The board is responsible for making decisions that affect all of the residents in the building, so it's essential to make sure you're comfortable with them.
Start by attending a few meetings so you can see how they operate and what types of issues they tend to focus on. This will also allow you to meet other residents and get a feel for the community.
You can also request a copy of the board's minutes from past meetings. This will give you an idea of what kinds of decisions they've made and how they've handled different situations.
4. Decide What Amenities You Want to be Included
A condo can offer a lot of different amenities, from a gym to a swimming pool to a concierge service. But not all condos provide the same amenities, so deciding which ones are most important to you is vital.
Related: <a href="https://www.destinpropertyexpert.com/blog/reasons-buy-condo-destin/" title="Reasons it's a great time to buy a condo in Destin Florida">Reasons to buy a condo in Destin, FL</a>
Some people might be willing to forego a few amenities to save money on the purchase price, while others might be willing to pay a little more for a condo with everything they want. There's no right or wrong answer here – it all comes down to personal preference.
When working with your realtor, address the types of amenities that are most important to you so they can help narrow down your search. You're buying access to the amenities and the property, so ensure you're getting what you want.
5. Find an FHA-Approved Condo
If you're looking for a condo that you can finance with an FHA loan, ensuring the building is FHA-approved is essential. This means that the building has met specific safety and financial requirements set by the Federal Housing Administration (FHA).
You can check if a building is <a href="https://www.redfin.com/guides/how-to-buy-a-house-with-fha-loan" target="_blank">FHA-approved</a> on the U.S. Department of Housing and Urban Development's website. Just enter the building's address or name.
If you're considering a condo that's not yet FHA-approved, keep in mind that it may take some time for the building to go through the approval process. It can be a lengthy process, so be prepared to wait if that's the route you decide to take.
6. Get a Good Understanding of the Financial Situation of the Condo Association
When you buy a condo, you're also purchasing into the financial stability of the condo association. This means that you should have a good understanding of how healthy the association is financial.
One way to do this is by requesting a copy of the condo association's financial statements from past years. This will give you an idea of how much money they have available to cover expenses like repairs and property taxes.
Related: <a href="https://www.destinpropertyexpert.com/blog/condo-inspection-checklist/" title="Condo inspection checklist">Condo inspection checklist</a>
You can also ask the board questions about how they manage their finances and how much money they typically reserve for emergencies. By understanding the association's financial health, you can avoid any potential surprises down the road.
7. Ask About Potential Risks Involved With Buying a Condo
When you buy a condo, you're also taking on certain risks. For example, if the property values in the area go down, your condo could be worth less than what you paid for it.
It's essential to ask about any potential risks involved with buying a condo before you make an offer. This way, you can decide if the risks are something you're comfortable with and factor them into your decision-making process. Some of these risks include:
The possibility of special assessments if the <a href="https://www.destinpropertyexpert.com/blog/12-pros-and-cons-of-hoa/">condo association</a> runs into financial trouble
The risk that rules or regulations could change after you purchase your unit, which could affect your use or enjoyment of the property
The risk that your mortgage lender could foreclose on the property if payments are not made
These are just a few examples, so asking your real estate agent about any potential risks involved with buying a particular condo is essential. They should be able to give you some idea about how likely these things will be and what kind of impact they would have on your investment.
8. Have Your Finances in Order Before You Start Shopping
Before you start shopping for a condo, it's essential to have your finances in order. This means getting pre-approved for a mortgage and knowing how much you can afford to spend.
It's also a good idea to save as <a href="https://www.destinpropertyexpert.com/blog/how-to-get-help-with-down-payment/" title="Getting help with your down payment" target="_blank">much money as possible for a down payment</a>. The larger your down payment is, the lower your monthly mortgage payments will be. And if you can avoid paying private mortgage insurance (PMI), that's even better.
Working with a financial advisor or loan officer before you start looking at condos can help you better understand the different financing options available to you. They can also help you figure out how much you can realistically afford to spend.
9. Consider the Resale Value
When buying a condo, it's crucial to consider the resale value. This is the amount of money your condo will likely sell for if you decide to sell it in the future. You can do a few things to help boost the resale value of your condo. One is to make sure the building is FHA-approved. This will show potential buyers that the building has met specific safety and financial requirements.
Another thing you can do is make sure the condo association is financially healthy. By doing this, you can avoid any potential surprises down the road. It would help if you also tried to choose a condo that's in a desirable area. If the property values in the area go up, your condo will likely be worth more. And lastly, make sure your mortgage payments are affordable. If your fees are too high, potential buyers may be turned off.
10. Hire a Home Inspector
When buying a condo, it's a good idea to hire a home inspector. This person will look for potential problems with the unit or the building. Some of the things a home inspector will look for include:
Water damage
Mold growth
Structural issues
Fire hazards
Electrical problems
Home inspectors can be expensive, but they could save you a lot of money in the long run. If they find any major problems with the unit, you can use that information to negotiate a lower purchase price. Or, if the seller is unwilling to make repairs, you can walk away from the deal altogether.
Buying a condo can be a great way to invest in property without dealing with all the maintenance and upkeep that comes with owning a single-family home. But it's important to do your research and know what you're getting into before signing on the dotted line. By following these tips, you can help ensure you get a good deal on the right condo.2022-08-04T12:06:00-07:002023-11-18T15:56:28-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:2515210 Tips For Buying A House Remotely<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Tips_for_buying_a_home_remotely.jpg" width="800" height="450" style="display: block; margin-left: auto; margin-right: auto;" />In a real estate deal, it's usual for sellers to skip the closing. They sign the paperwork ahead of time and deposit the sale proceeds directly to their bank account. The position for buyers, on the other hand, can be highly different. Traditionally, buyers were expected to sign documents in person and physically visit houses.
Purchasers nowadays have a more convenient option. Remote buying is now possible for those who don't have time for physical visits. Buyers can complete the <a href="https://www.destinpropertyexpert.com/blog/the-ultimate-home-buyers-timeline/" title="Home buying timeline">entire home-buying process</a> from afar. If you're thinking about buying a property from afar, the following tips will help you get a great deal.
1. Obtain A Letter Of Mortgage Pre-Approval
<a href="https://www.destinpropertyexpert.com/destin/" title="Buy a house or condo in Destin Florida">Buying a property</a>, whether online or offline, is a significant financial investment. You'll need a loan to finance your new home unless you've saved a fortune. The first step is to find a lender who will give you a loan pre-approval. You may submit all papers and sign agreements electronically with several trustworthy online lenders. Ensure your contracts are valid by learning how to sign a Google Doc and similar document applications before sending any letters or contracts.
Bank statements, salary stubs, and other evidence will be requested. A mortgage pre-approval letter will tell you how much money you may anticipate getting if you apply for a loan. It will give you a precise estimate of how much money you can afford to spend on a home. When looking for online home sellers and real estate brokers, this pre-approval form will come in handy.
2. Collaborate With A Real Estate Agent From The Area
<a href="https://www.destinpropertyexpert.com/agents/danny-margagliano/" title="Local realtor">A local real estate agent</a> can confirm that the listing photos accurately portray the property's condition and, if possible, take you on a virtual home tour. Furthermore, an agent should help you expedite your home search by focusing on the houses, areas, and school districts that best fit your requirements.
While collecting recommendations from friends and relatives is a great way to find a real estate agent, you may not know anyone in the region where you want to buy. As a result, look for reviews of specific agents on the internet. If you can't find any reviews, the agent may be unskilled or inexperienced.
Please inquire about the experience of two or three agents, as well as the typical price range of homes they deal with. Check to see whether the agent's expertise meets your needs and if the agent is a good fit for you personally.
3. Find The Most Experienced Agent With Remote Selling Experience
Take your time to find the best real estate agent for you, preferably one that has experience selling properties remotely. Because you won’t see the home in person, it’s vital to choose an agent you can trust who has worked in this area before and is educated about the market and the area in which you are buying.
Make a special note of their client testimonials and reviews, and inquire about any feedback from other people they've helped buy a house remotely. It lays a solid foundation for deciding whether or not they’re trustworthy and will be helpful and reliable throughout the transaction.
4. Carry Out Personal Research
Buying a home is a big deal that takes a lot of time and money, so be sure you know everything there is to know about the property you're looking at. To begin, locate a property in a place with a vibrant housing market and a stable economy to ensure that your financing will go through. Compare and contrast the information provided by the office with the information provided by the seller. If you see any discrepancies, talk to the assessor to figure out why.
Another essential element to consider, especially if you're buying in a rural area, is the availability of rural resources. Learn about topics like erosion control, wildlife habitat creation, and pond construction, as well as other challenges that you, as a city inhabitant, may be unprepared for. You can complete these duties remotely by visiting relevant local websites or contacting authorities and specialists via email or phone.
5. Share Your Wish List With Your Agent
Once you've chosen an <a href="https://medium.com/@twopercentrealtyedge/top-5-benefits-of-hiring-real-estate-agents-for-buying-selling-homes-e42e72b987a9" target="_blank">agent</a> who's a good fit for you, send them your wish list, so they're aware of your specific needs. Make it very clear what you're looking for and why you're making a purchase. A well-crafted wish list will aid your agent in narrowing down the options, thereby speeding up the search process.
However, if you have an excessive number of requests on your wish list, your agent may have trouble finding a match. Concentrate on the most significant factors, such as location, size, housing style, and room count. Leave out simple requests, especially those that are easy to address or update on one's own.
Also, contact your representative right away if there are any items that you really can’t live without. As a result, they’ll be able to focus on homes that don’t contain these deal-breakers.
6. Attend A Virtual Tour Of The House
You should take advantage of the seller's internet video home tour if one is available. If they don't, your agent can show you the property via video apps. Your realtor will take you on a virtual tour of the house through a video call in a virtual tour. You may ask your realtor to open doors and turn on lights for you, let you look into closets, and take close-ups of any features of the house that you like.
Request that your agent provide feedback on the home's sounds, scents, and temperature, as it's not quite the same as being there in person. This impression is far more impressive than the seller's agent's listing description, images, or virtual tours.
There’s a slight difference between seeing a location in person and seeing it on video. You’ll have to put your trust in your agent's judgment. That's why it's crucial to tell your agent about your must-haves and deal-breakers right away. You'll have more confidence when they tell you a house meets your criteria this way.
7. Become Acquainted With Your Surroundings
Listing photos and video tours don't always adequately portray what you'd see from the windows or in the local area. For example, your kitchen windows may look out over your neighbor's wood fence. Request that your agent take photos looking through the house's windows and, if possible, make a short video walking up and down the street to help you get a sense of the neighborhood and surrounding area.
Inquire about the neighborhood and surroundings. Is it noisy with a lot of passing traffic, or is it peaceful and quiet? You can also use map tools to scan the property and its surroundings from the air, giving you a complete birds-eye perspective of your new community.
8. Make An Appointment For A Home Inspection
While a <a href="https://www.destinpropertyexpert.com/blog/do-you-need-home-inspection-when-buying-home-destin/">home inspection</a> isn't always required, it's usually a good idea. When buying something online, this is amplified. It's time to go deep into the details of a property to see if any concerns need to be addressed before closing. While it's ideal to be present for the inspection, you're not entirely out of luck if you're buying a house from afar.
Request a home inspector referral from your real estate agent, and request them to join the inspection through video chat. You shouldn’t have any unpleasant shocks after the purchase is made if you have a qualified inspector and agent working on your side.
9. Inquire About The Possibility Of A Final Walkthrough
Here's another example of why choosing the right agent is so important. Your realtor will do a final walkthrough for you, including via video conference, to check that any repairs recommended after the inspection have been completed correctly and that the house is in the condition you desire.
If you're worried about buying a house from afar and want further confidence, talk to your agent about including a final walkthrough contingency in your contract. The last walkthrough will help you identify anything that you may have missed during the first trip.
10. Utilize The Due Diligence Phase Wisely
The seller's acceptance of your offer triggers the start of the due diligence process. It usually lasts for two to four weeks. It's designed to give you enough time to review your title documents, think about deed restrictions, and schedule a home inspection. Contact your agent if you have any questions or need clarification on anything. You can also take advantage of this time to negotiate adjustments and price reductions, as well as finalize your financing arrangements before closing.
All of the documentation that you will be required to sign will be sent to you by your closing agent. Take advantage of the time between getting the papers and the deadline to review them. You're likely to find faults that need to be fixed, and you'll have a few questions.
To ensure that your closing takes place on time, resolve any concerns that develop as soon as possible. Sign the non-notarial paperwork when you're ready. The nature of these documents will be explained to you by your settlement representative.
Takeaway
Buying a house remotely doesn’t have to be a stressful experience if you go into it prepared. You will be able to complete all of the necessary formalities for home browsing and purchasing with the help of a knowledgeable real estate agent, and you won’t even need to be present at the closing. Your experience should be seamless and, hopefully, stress-free, thanks to video conferencing, electronic signatures, and money transfers.2021-12-08T21:12:00-07:002023-12-05T15:45:51-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:24539How The Pandemic Has Changed How We Buy And Sell Homes<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/How-the-pandemic-has-changed-buying-and-selling-homes.jpg" width="800" height="450" alt="Home buying and selling has changed since the pandemic" style="margin: 7px auto; display: block;" />The pandemic has revolutionized the way products, including valuable properties like homes, are being sold and bought. The <a href="https://www.destinpropertyexpert.com/blog/steps-for-first-time-home-sellers/" title="Steps for buying a home for the 1st time">home selling process</a> has relied on digital methods, from putting the property up for sale to reaching out to potential buyers and closing the deal.
Due to social distancing and other restrictions, <a href="https://www.destinpropertyexpert.com/blog/5-tips-to-sell-your-house-faster/" title="Selling real estate fast">real estate sellers </a>have tapped digital marketing tools to maximize online exposure and reach a broader client base. The home viewing and inspection processes have turned to online solutions; so have document review and signings.
Whether looking to buy or sell a home, it's crucial to adapt to the changes triggered by the pandemic. Understand how buying and selling a property has evolved to get the best deal, whether you're a home buyer or seller.
Traditional Ways To Sell A Home
There are a few ways to sell your home: entirely on your own, with the help of real estate agents, or through home-buying companies.
For sale by owner (FSBO): Embarking on a <a href="https://www.destinpropertyexpert.com/blog/thinking-about-selling-your-house-by-owner-heres-a-place-to-start/" title="Selling a home FSBO">for sale by owner strategy</a> requires careful and strategic planning, simply because doing so can limit your reach considerably. Accessing your target market can be challenging without professional help, as well.
Through real estate agents: Because home selling can be a complex procedure—especially during the <a href="https://www.destinpropertyexpert.com/blog/what-to-expect-with-a-home-inspection/" title="Find out what to expect during a home inspection">home inspections</a>, viewing, and negotiation process—most first-time sellers choose to work with real estate agents to guide them through the entire process. Additionally, home selling requires keeping track of various documents, which, thanks to technology, can be transferred and exchanged via email to fax services. This feature can be a lifesaver, especially when dealing with lawyers to sign the documents needed for the home sale.
Home buying companies: The last option works best for effortless home selling, where you don't need to work doubly hard to close a deal. You can approach home-buying companies and offer your property <a href="https://www.destinpropertyexpert.com/sellers/pricing-your-home/" title="How to price your home">before getting a valuation</a>.
Technically, home selling amid the pandemic is still done through these channels. The changes are often related to how properties are being sold and bought, as you'll find in the succeeding sections.
How The Pandemic Has Changed The Home Selling Process
Since a few years ago, online home selling has continued to rise with the advent of various digital property selling platforms. Let's take a look at the current home-selling landscape and the changes brought about by the pandemic.<br /><br />
1. Marketing A Home Digitally Has Increased
According to the National Association of Realtors, about 97% of individuals looking for homes used <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers">online home selling sites</a> to look for properties to buy in 2020—the highest of any year.
Because prospective home buyers have turned to online platforms to search for houses, it's only logical for sellers to amplify online exposure to increase their chances of a successful transaction. As <a href="https://www.destinpropertyexpert.com/blog/website-marketing-tips-real-estate-agents/" title="Website marketing">online marketing plays a crucial part in closing a home deal</a>, all home sellers integrate digital methods in their selling strategies.
Whether offering your current residence via FSBO or with the help of a real estate broker, it helps to know the basics of online home selling to sell your home faster. A seller must be able to perform the following to attract more property buyers:
Come up with a great description: Use powerful and descriptive words to create a compelling home listing description. Highlight the property's unique features but don't go overboard and raise expectations you can't meet. Be accurate in your description, especially when indicating the size of your home or lawn.
Upload high-quality photos: To attract potential buyers browsing online home-selling platforms, a seller has to take high-resolution images that amplify the property's beauty. Photos can speak volumes, so make sure the pictures convey impactful messages to would-be buyers.
Integrate videos: According to HubSpot research, <a href="https://blog.hubspot.com/marketing/state-of-video-marketing-new-data">91% of marketers</a> feel that the pandemic has made video critical for brands. Additionally, 72% of consumers prefer video marketing over text messaging in promoting and selling products. As a home seller, integrating a video of your property can help draw in more interested buyers.
Of course, online home selling will have to complement the multiple listing service (MLS) – a private database of properties available for sale. Only participating real estate professionals can access this list exclusively.
2. Virtual Home Tours Replace In-Person Visits
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Virtual-reality-home-tour.jpg" width="700" height="467" alt="People doing a virtual reality tour of a home for sale" style="margin: 7px auto; display: block;" />The health and safety restrictions negatively impacted the real estate market due to the pandemic. But the ever-resilient sector has adapted, tapping augmented and virtual realities to replace in-person home tours.
Apart from digital marketing, offering properties has become much safer using various technologies to facilitate virtual home tours. Instead of in-person home visits, buyers can tap the following to provide a secure yet similar experience to interested home buyers:
Augmented reality and virtual reality tools provide buyers the experience of going around the property while staying in the comfort and safety of their homes. These solutions are not only valid for finished properties. Sellers can also use them to create a complete perspective of an unfinished property.
Three-dimensional walkthroughs can do the same thing. Real estate firm Redfin has reported that in March 2020, requests for video home tours increased to 494% compared to the preceding week of the said period.
Drone shots can also be used to get aerial shots of the home, alongside the properties around it.
Sellers and agents also use video calls or conferencing to go through the residence's every nook and cranny.
A home tour is a critical part of the home selling process. Virtual tours can help a buyer decide whether to invest in the property or proceed to the next property on the list by getting an authentic feel of the home without compromising their health and safety.
How The Pandemic Has Changed Online Home Buying
Traditional home selling and buying processes typically require several steps. First, the seller offers the property on the market. Then, an interested buyer must contact either the current homeowner or their agent to request a home inspection or viewing. The negotiation process commences, requiring back-and-forth communication until the two parties reach an agreement. Once the buying price is agreed upon, the seller will have to wait for the <a href="https://www.destinpropertyexpert.com/blog/loan-for-first-home/" title="First-time homebuyer loans">buyer to get loan approval</a>. After mortgage approval comes the closing process, where a seller incurs <a href="https://www.destinpropertyexpert.com/blog/common-expenses-buying-home/">additional expenses</a>.
Here are some changes the pandemic brought to online home buying:
1. 63% Of Home Buyers Have Never Set Foot On The Home Before Making An Offer
Pre-pandemic, home investors typically decide on a home purchase only after an in-person visit. This is understandable, as a house is a big-ticket purchase that requires a life-changing decision. However, the pandemic has seen an increase in the number of home buyers offering to purchase a home they haven't personally visited.
In 2019, only 32% of property purchasers offered to buy a home that they hadn't seen in person. At the onset of the pandemic in 2020, this rate doubled to 63%, according to findings released by Redfin. This illustrates the crucial role digital marketing and virtual home tours had in swaying buyers' decisions amid the pandemic.
2. Home Buyers Have Access To More Choices
Because home buyers prefer to check online platforms, they can also view more properties in one day than actually driving down to visit the residences. This has made the home purchasing process more efficient. By checking the descriptions, photos, videos, a prospective buyer can save time and effort shopping for a new home.
3. Home Buyers Can Have Access to Customized Services 24/7
In the same manner, home sellers can provide customized services to interested investors through technologies. Chatbots powered by artificial intelligence (AI) systems can gather specific information about a prospect's preferences and options.
For instance, a seller can program chatbot responses to answer particular queries raised by an interested buyer or go straight to scheduling a virtual home tour if the buyer wants to do so. Simply put, chatbots will determine what your prospect wants and diligently fulfills it.
Besides getting rid of face-to-face transactions, chatbots help hasten the manual transactions involved in buying and selling a home. And because they're available all the time, a buyer no longer has to wait for office hours before being attended to.
4. Automation Leads To More Efficient Documentation And Payment Processes
To formalize the home buying process, the seller must keep all the documents involved in property turnover. These documents may include the original contract of sale, mortgage statement, <a href="https://www.destinpropertyexpert.com/blog/12-pros-and-cons-of-hoa/" title="The good and the bad of an HOA">homeowner's association</a>, and insurance papers, home maintenance and repair records, listing agreement, mandatory disclosures, deed of purchase, and so many others.
Before the pandemic, notarization of documents required in-person meetings, as lawyers need to see and speak with the person involved in the transaction. Fortunately, some states passed new regulations that allow for digital closings or notarizations due to the pandemic. Apart from becoming a safe option, digital notarizations, particularly for the home closing process, make the procedure fast and more secure.
Online applications for home loans and electronic fund transfers have also helped shorten waiting times. Automation has helped streamline the home buying and selling procedures and makes documentation better overall.
The Bottom Line
The pandemic has slowed down significant economies worldwide, and its impact is still being felt more than a year later. Despite the restrictions and health protocols, the real estate sector has remained resilient. Instead of giving in to these challenges, the industry has turned to virtual processes and digital tools to streamline home buying and selling activities. With these advanced tools, property sellers and buyers can engage in either transaction seamlessly.2021-11-02T09:13:00-07:002023-12-05T16:14:48-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:23764Common expenses when buying a home<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Common-expenses-when-buying-a-home.jpg" width="1280" height="720" style="display: block; margin: 8px;" alt="What are the common expenses when buying a home" /><a href="https://www.destinpropertyexpert.com/blog/the-ultimate-home-buyers-timeline/" title="Homebuying timeline">Buying a new home</a> is simultaneously exciting and overwhelming. You have to do a lot before buying a home. Planning your finances is one of the most crucial things to do here.
<a href="https://www.destinpropertyexpert.com/blog/tips-getting-loan-real-estate-investment/" title="Tips for getting a home loan">Financing a home</a> is not only limited to paying the down payment or applying for a house mortgage. It also involves choosing a mortgage plan, paying for the home inspection, etc. The list of expenses when buying a home is long. You must address it carefully to avoid deviations from the master plan.
For that, we bring you a complete list of expenses you have to incur to buy a home. Here is that list for you.
Note: The list items mentioned here could vary in your region except for a few common expenses.
List of Expenses When Buying a Home
This list of expenses will help you manage your finances while buying a new house. It will also help you find smart ways to save costs.
EMD Deposit– (Earnest Money Down)
It is a one-time cost you pay as a show of good faith. The deposit is usually delivered within 3 days of the seller’s acceptance of your offer. It will become part of your down payment and reduce the overall interest you pay on your mortgage. Once the title company or closing attorney receives your earnest money down they will deposit it into an escrow account. The deposit amount completely varies between communities, cities, and states. Although, it can be as low as $500 and cash offers can sometimes be in excess of 10% of the purchase price.
Down Payment
While the deposit is not always mandatory, the down payment usually is. It is the cost of a home you pay to put towards the purchase of a home. The down payment could go as low as 5% of the total house’s value. However, the preferred down payment is 20% of the home’s market value. If you don't put 20% down when purchasing a home or condo you will be required to pay mortgage insurance or PMI. Depending on your financial situation, the location you are purchasing, and other variables you may <a href="https://www.destinpropertyexpert.com/blog/how-to-get-help-with-down-payment/" title="How to get help with your down payment">qualify to get down payment assistance</a> from numerous state, local, and national programs.
There are some benefits and relaxations for first-time homebuyers in several regions. Do ask your realtor to help you get them.
Home Inspection
This small cost could save you from big troubles. A home inspector will analyze your new home from top to toe and give you a <a href="https://www.destinpropertyexpert.com/blog/home-inspection-checklist-santa-rosa-beach-area/" title="Home inspection checklist">complete list of items requiring your attention</a>. Depending on the home's size, build, and age, the home inspection could cost you between $300 to $1,000.
While buyers generally pay this cost, there could be arrangements where the seller agrees to pay the sum or share part of the amount. Also depending on if you're purchasing your property as-is or non-as is your home inspection is equally important. If you're purchasing a property in the as-is condition you want to see the extent of repairs needed and if you are okay with it. If you're purchasing a home non-as-is the seller will make certain repairs on broken items. The amount of repairs is negotiable but generally starts out at 1.5% of the purchase price.
Land Transfer Tax
It is the tax you pay to the province or territory when buying a home. It is calculated as a percentage of property value. In some areas, there is also a municipal land transfer tax above land transfer tax (LTT). The land transfer tax usually ranges between 0.5% to 2.5% of property value.
The tax rates will vary in different regions. Some regions are exempted from this. Do consult your realtor before buying a home.
Property Taxes
Property taxes are charged annually. Generally, a <a href="https://www.destinpropertyexpert.com/blog/property-taxes-and-the-difference-between-south-walton-and-okaloosa-county/" title="Walton County and Okaloosa County property taxes">property tax</a> is calculated by multiplying the house’s current market value with the local applicable property tax rate.
The <a href="https://smartasset.com/taxes/florida-property-tax-calculator#bRYaj6f6iD" target="_blank">current average tax rate in Florida</a> is 0.83%, which means for a property of $1,000,000, you need $8,300 to pay the property tax rate for the current year.
Miscellaneous Title Charges
When you get the closing statement, you will typically find a list of miscellaneous fees that may surprise you. For example, here are some real examples of condominiums in Florida with a purchase price of $725,000. The title company charged a courier fee of $25, a lender's endorsement fee of $50, an additional endorsement fee of $400, a lender's title policy of $300, a Lien search fee of $150, title search fee of $525. The best way to know about any of these fees is to ask for an example closing sheet from your realtor. They can then ask the closing attorney or title company to list out all the fees you will be responsible for. That's the best way to make sure there are no unpleasant surprises.
Land Survey
It is not always a mandatory cost to incur while buying a home. Mortgage lenders often require homebuyers to get a land survey to define the property’s boundaries. It mitigates any confusion with neighbors in the future. The typical land survey cost is between $1,000 to $2,000.
Appraisal Fees
Sometimes, the mortgage lender might ask you to hire an independent home appraiser. The company or individual will evaluate the home’s current market price. The typical home inspection cost is between $350 to $600. The appraisal fee is not tied to the home price or home value. However, the price may be affected by the size of the home.
Legal Fees
A real estate lawyer will prepare all the necessary legal papers and ease your burden of buying a new home. They are experts in preparing legal documents and could charge a legal fee of $900 to $1,000.
New Construction Warranties
Warranties come only with new homes. They are not mandatory everywhere. New home warranties cover work, material defects, and structural abnormalities. Essentially, this home-buying expense saves you from paying any repairs due to builder error. The typical cost of new home warranties ranges between $300 to $1,800.
Mortgage Options
When you're ready to make a home purchase you will have to make a decision on what type of loan will work best for your finances. People typically choose an FHA loan for the lowest down payment, which can be 5% or less. However, VA loans offer 100% financing with no down payment. The most common type of home loan is a conventional loan. This is because they require a slightly larger down payment but do not have any PMI or MDI. There are also many <a href="https://www.destinpropertyexpert.com/blog/loan-for-first-home/" title="Getting a home loan for the 1st time">first-time home loan programs</a> for people purchasing their first house.
Mortgage Default Insurance
When you pay a down payment of less than 20% of the home’s value, you could be asked to pay mortgage default insurance or private mortgage insurance (PMI) - it protects the lender if the buyer defaults. The cost of mortgage default insurance depends on the down payment percentage. It may also vary in different parts of the world. A typical estimation gives us a cost range of 2.8% to 4% of the mortgage value.
Mortgage Life Insurance
This type of mortgage insurance protects homebuyers. If the buyer passes away before the mortgage term expires, the insurance provider will clear off the remaining debt owed to the lender. The deceased family will not have to pay anything to the lender. But will not get anything from this insurance.
Title Insurance
Often sellers will ask you to buy title insurance. This type of insurance protects you from title defects, omissions, or errors. The cost of title insurance depends on the type of property, its location, value, new home or older home, etc.
Homeowners Insurance
When you are buying a house, you may have to purchase several insurances. The home inspection, as the name sounds, covers damages related to your home. Its cost depends on your details, home features, and the amount of coverage. Your homeowner's insurance is one of the most important things you have to pay every month with the exception of your mortgage. The last thing you would want is to have your <a href="https://www.destinpropertyexpert.com/blog/things-void-homeowners-insurance/" title="What can void your homeowners insurance">homeowner's insurance get canceled</a> and have your house get damaged or even worse, totaled.
Sales Tax
When buying a new home, you are likely to pay different types of taxes, including the goods and services tax (GST), the harmonized sales tax (HST), or perhaps both. In some regions, this sales tax could go as high as 15%. GST is also applicable to the services you acquire during the home buying process.
Closing Costs
Closing costs completely vary depending on many things. The closing date is something that will alter the amount of money you're responsible for like HOA fees, taxes, insurance, etc. These fees will be prorated depending on the closing date.
Various things already discussed in this article are part of the closing costs for home buyers. If you looking to have the lowest possible closing cost the only way to really make an enormous difference is by paying cash. Being a cash buyer eliminates some of the bigger expenses such as mortgage insurance and other fees. tied to the mortgage loan itself. no matter whether you purchase your home with cash or with a loan there. will also be attorney fees. This also is a fluctuating cost depending on location. If you are concerned with any of these fees your realtor should be able to give more clarification.
Utilities
It often happens when a previous homeowner pays utilities and property taxes beyond the closing day. Here the new owner has to pay off the charges paid by the previous ones and settle their accounts.
This cost is merely a settlement between a buyer and seller. It is usually not legally binding.
Moving Costs
When you buy your principal home, you also need to keep in mind that there would be some relocating or moving costs. The moving cost will vary and depends on renting a truck, buying packing boxes, moving on your own or hiring a team, and so on.
Check out this <a href="https://www.destinpropertyexpert.com/blog/moving-checklist-remember-when-you-move/" title="Moving checklist">moving checklist </a>that will ensure you won't forget anything.
The average moving cost is about $1,400.
Homeowners Association (HOA)
A home in a community generally requires you to pay a homeowners association (HOA) fee. This monthly cost will depend on the association and usually covers security, car parking, pool, gym, etc.
Additional Costs
There could be some other costs associated with buying a home, such as:
● New appliances
● Renovations or repairs
● Service hook-up fees
● Condo fees
● Landscaping expenses
● Snow clearing equipment
Conclusion
Now that you have a list of expenses to incur when buying a home, you also need to consider saving as much money as you can. That could only be achieved if you are working with an <a href="https://www.destinpropertyexpert.com/">expert real estate agent</a>. An expert realtor will not help you buy your dream house but will also help you save your buying costs. Finally, is very important to realize that the above expenses will vary from location to location. Furthermore, not all of these expenses will apply to everyone. Now that you have this information get out there and start looking for a home that is perfect for you and your family?2021-09-16T14:54:00-07:002023-12-08T14:16:52-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:180456 Tips for Getting a Loan for Your Real Estate Investment<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Tips-for-getting-a-loan-for-your-real-estate-investment.jpg" width="900" height="506" alt="Find out the best way for getting a loan on your real estate investment" style="margin: 8px auto; display: block;" />Investing in real estate is one of the best ways to grow your net worth. Indeed, in 2020 alone, <a href="https://www.forbes.com/advisor/mortgages/housing-market-2020/" target="_blank">home equity increased by 10.8% year-over-year</a>. Collectively, that's over $1 trillion in appreciation that homeowners enjoyed during the calendar year. Although an unusual year due to COVID, 2020 was not an exceptional year in real estate. While nobody can predict the future, it's not uncommon to see 5%-10% or even more in appreciation each year.
That's just if you buy and hold your real estate investment. Remember, real estate is unique in that you can rent it out, fix and flip it (often for remarkable returns), or start a brand new construction. Real estate is one of the rare investments that often features multiple ways to have a positive ROI.<br />The problem for first-time buyers (and returning investors) is that getting a loan for a real estate investment is significantly different from obtaining a mortgage for a primary residence. Banks are considerably more stringent when initiating mortgages to investors. Although many people would love to get involved in real estate investing, many have difficulties <a href="https://www.destinpropertyexpert.com/blog/first-time-home-buyer-mortgage-programs-florida/" title="Finding good 1st time mortgage programs">obtaining the necessary financing</a>.
Fortunately, there are tips for getting a loan for your real estate investment. Here are the top six ones that you need to know!
Consider a Hard Money Lender or Other Forms of Financing
The first tip is to "think outside the box" when it comes to financing. Most banks base their loan on the creditworthiness of the borrower. So, if you have an excellent credit score (a "good" score may not even cut it with some banks), at least 15% down, and the income to cover your current mortgage plus the new rental mortgage, a bank might provide you with a loan.
However, when it comes to real estate investments, this model doesn't work. Your creditworthiness shouldn't matter as much as the "project-worthiness." In other words, if you're buying a home to fix and flip in a couple of months, whether or not you can pay the loan over five, 10, or 30 years is irrelevant. It's best to get a lender that will assess your project, ascertain its likelihood of success, and lend you the money for those 2-3 months while you repair the property.
There are financial institutions that will provide you with these funds with your investment in mind. The loan structure will be for your investment, and the application process will be less about your creditworthiness and more about the probability of the project's success. For example, one of the leading Florida investment lenders, Hard Money Lenders IO, states explicitly that they lend "up to 85% of the total project with flexible terms [12 months - 3 years] to make the process as smooth as possible."
A Lenders Mortgage Scenario
Consider the following scenario. Let's say you're buying one of the many <a href="https://www.destinpropertyexpert.com/destin/" title=" Destin homes for sale">beautiful Destin homes</a>. You're looking to perform some repairs and put it back on the market, taking advantage of price appreciation as well as a higher selling price due to the rehabilitation and professional staging. You could apply for a hard money loan for 12 months, fix it in two or three, and sell it, paying back all the money with no prepayment penalty. The lender's focus won't be as much on your creditworthiness (although it will play a factor - see the following tips for more info), but instead on the project's likelihood of success. If they feel the flip will work, there's a decent chance you'll get the funds.
Should You Use a Bank
So, should you use a bank? It depends. More often than not, a bank isn't the best option when it comes to real estate investing. Consider a hard money lender instead if you want to get the loan for your real estate investment approved!
Improve Your Credit Score
Please note that whether you use a hard money lender or a bank, they will look at your credit score. Hard money lenders are typically alright with a credit score in the 600s, while banks usually need 720+ for <a href="https://www.destinpropertyexpert.com/destin/investment-property/" title=" Destin investment properties for sale">investment properties</a>. However, in both cases, your credit score will have an impact on your approval and your interest rates.
Therefore, if you're planning on starting to invest in property, please make sure that you monitor and keep your credit score as high as possible. There are many free places to check your score, including <a href="https://www.creditkarma.com/">Credit Karma</a> or <a href="https://www.creditsesame.com/" target="_blank">Credit Sesame</a>.
The most significant influencing factor for your score is the credit utilization ratio. This metric reflects the percentage of available credit you are currently using. Anything above 50% is terrible, 30-50% is less than ideal, and 30% or below is good. A credit card with a $300 balance and a $1,000 limit would have a utilization ratio of 30% as a quick example. If that same card had a $3,000 limit, the ratio would only be 10%.
Ensure that you make all monthly payments on time and avoid opening new accounts, which can hinder your score.
Make Sure the Project Will Be a Success
A little preparation goes a long way towards<a href="https://www.destinpropertyexpert.com/blog/tips-getting-loan-real-estate-investment/" title="Getting a loan"> getting loan approval</a>. Lenders will be reluctant to give you any money if you don't have a clear blueprint for success. We're not referencing a physical blueprint here but rather a roadmap for how you'll rehabilitate, flip, rent, or <a href="https://www.destinpropertyexpert.com/blog/construction-essentials-new-home/" title="New construction homes">build your new real estate investment</a>.<br /><br />You'll want to gather all relevant facts and information. If you're buying a property to rent, how will your cash flow look? Will you be making a profit? Will you have enough in reserve? Similarly, if you're <a href="https://www.destinpropertyexpert.com/blog/5-things-to-consider-before-flipping-a-house/" title="Flipping a house">buying a home to flip</a>, what is your estimated cost to rehabilitate it? How much can you reasonably expect it to sell for in the future? What are the broader real estate trends?
These are all example questions that you should be asking yourself now because your lender may request an answer to one or all of them in the future. Think of your investment as if you were starting a new business and your lender is an investor in it. What information can you provide to help them feel more comfortable with this project?
For numbers, you'll probably want to use loan calculators to see how much you could expect to pay. Assuming you want to apply to a hard money lender, you'll want to use a hard money loan calculator to estimate how much your loan will cost. These often ask different questions than the standard mortgage calculators.
Avoid an Extreme Fixer-Upper, Unless You Have Significant Experience
We all know that a dilapidated home that's currently going for 50% off market value looks tempting. After all, how hard could it be to paint the inside, fix some walls, and fix a few things outside?
The answer is often quite simple. It's very hard. Unless you have significant renovation skills or know someone who can work inexpensively, these<a href="https://www.destinpropertyexpert.com/blog/5-things-to-consider-before-flipping-a-house/" title="Don't buy a fixer-upper without knowledge"> homes are often too costly to repair</a>. There are frequently substantial structural issues that make these homes unviable as a fix and flip, and, indeed, they are unviable for tenants as well.
For those new to real estate investments, picking a home that requires cosmetic repairs is generally a safer bet. You can always paint on the walls, fix a few broken things, and clean up the exterior. That will require less work and be less risky than taking on a monumental rehab project.
Plus, it's going to be much harder to convince a lender to provide you the funds for a project that could be a giant money pit. Instead, focusing on projects with clearly defined fixes will give you a much better chance of obtaining a loan!
Apply to Multiple Lenders
<img src="https://assets.site-static.com/userfiles/2042/image/Applying-to-multiple-lenders-when-buying-a-home.jpg" width="350" height="525" alt="Is it a good idea to apply to multiple lenders when buying a home?" style="margin: 8px 7px; float: right;" />To maximize your chances of getting approved, applying to multiple lenders is almost always a good idea. Remember that too many applications may affect your credit score, so don't go overboard here. However, putting in 2-3 applications will help you figure out the range of terms you can receive. You may want to apply to a hard money lender (or two) and at least one bank. That way, you can get a feel for what types of loans you can get.
However, when you receive approval and complete your project successfully, consider seeing if you can use that lender again. Many lenders will offer discounted return rates. After all, if you've proven you can be successful with one project and pay everything back, there's a good chance you can be successful with your next one!
Consider Your Legal Structures and Personal Guarantees
Many investors like to use LLCs for their properties because they provide liability protection. However, some banks and lenders will ask for personal guarantees, which negate that protection. Furthermore, some corporate structures make <a href="https://www.destinpropertyexpert.com/blog/loan-for-first-home/" title="Getting a first time home loan">obtaining a loan easier</a> or harder, depending on where you live and what type of property you want. Hard money lenders are typically used to lending to LLCs and corporations, whereas banks tend to be more familiar with individual borrowing.
Therefore, if you want to get a loan, make sure you invest in your business's best legal structure. And, if you wish to have the liability protection that comes with an LLC or a corporation, please make sure that you set that all up before you start investing! It can often be a huge pain to transfer assets into or out of the corporate entity, triggering legal and tax consequences.
The reasons to use an LLC or a corporation are beyond the scope of this article. It's often a personal choice since no two people's goals and financial situations are alike. You should speak with a lawyer and tax professional to ensure that you keep your assets adequately protected and can still access the capital you need!
It Is Possible To Get a Loan for Your Real Estate Investment!
Please note that it is possible to get a loan for real estate investment property in many situations. Unless you have significant problems with your credit report, or lenders have trouble believing your project will be a success, most of the time, there is a loan out there that will work for you!
There are many successful real estate investors and flippers in Florida. There are even many successful builders as well. For example, <a href="https://www.destinpropertyexpert.com/land/destin-land/" title="Land for sale in Destin Florida">Destin has dozens of lots </a>where you could build and sell your first property.
No matter what you want to invest in or build, Florida is the perfect place for you! The good news is that it is possible to get a loan and get started today!2021-04-17T10:04:00-07:002023-12-07T16:02:29-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:17654Remodeling or purchasing a new home – which is best?<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Remodeling-or-purchasing-a-new-home.jpg" width="900" height="450" style="display: block; margin-top: 8px; margin-bottom: 8px;" alt="Remodeling or purchasing a new home, which is better" />Becoming a <a href="https://www.destinpropertyexpert.com/blog/buy-the-perfect-home-in-florida-first-time-buyer/" title="First-time homebuyer " target="_blank">first-time homeowner</a> is an achievement and a feeling you won’t forget. However, there comes a point when you might consider relocating to a better, bigger, and more spacious home. However, going bigger doesn’t always imply that you have to move out; therefore, the question of whether you should remodel or purchase a new home arises.
We know that everyone is different in terms of their needs and preferences, and there isn’t a right or wrong answer. Some homeowners might be better off <a href="https://www.destinpropertyexpert.com/blog/is-now-good-time-to-renovate/" title="Don't forget anything important when remodeling" target="_blank">remodeling their current home</a>, while others would be better off moving out. For some people, the financial implication of relocating might weigh more than other aspects, while location is an essential factor for others. So to rephrase the question, which solution is best for you?
We are about to line up some of the pros and cons, the bumps and roadblocks that might come along the way during the remodeling and home purchase process. Hopefully, in the end, you will better understand the process, and it will let you decide which solution best suits you. Should you remodel or purchase a new home? Let’s find out!
Things to consider before making a decision
Both remodeling and <a href="https://www.destinpropertyexpert.com/blog/tips-moving-kids/" title="Moving with kids">moving can be stressful</a> and will take time, energy, and money to complete. What if you don’t have the budget for a new home? Wouldn’t remodeling your existing home serve you better? How can you determine which solution suits you best? We are about to address some of the questions that might come to mind when you plan such a significant move, and hopefully, we can answer them.
Is location relevant? More often than not, people love the neighborhood they are in. <a href="https://www.destinpropertyexpert.com/blog/finding-house-when-relocating/" title="Relocating tips" target="_blank">Relocating to another </a>community raises the question of whether you will like it just as much as the previous neighborhood. In that case, you might be more inclined to renovate your home or buy one in the same community.
Is it cheaper to renovate or to move? One of the significant factors in the remodeling vs. home purchase dilemma is the cost. Remember that a home remodeling project requires out-of-pocket costs immediately, whereas moving might initially put some money in your pocket but bring about unexpected expenses down the line. It's important to factor in things like <a href="https://www.maxrealestateexposure.com/home-depot-truck-rental/" title="Moving truck pricing">renting a moving truck</a>, buying new furniture, and additional miscellaneous costs when having to move.
Is it a good time to buy and sell real estate? If you <a href="https://www.destinpropertyexpert.com/blog/5-tips-to-sell-your-house-faster/" title="Sell your house fast">decide to sell your property</a> and buy a new home, you have to consider the local real estate market as well as the one you are planning to move into. You want to get the most out of your investment, and even if it might be cheaper to move than to renovate, you have to consider that housing trends may shift quickly. You don’t want to buy an overpriced home or have an appraiser undervalue your property because it’s an unfavorable time to sell.
Is there an emotional attachment to the home? This is also a big one for many people who are thinking about relocating. Many memories were created in that home, and it’s hard to detach yourself and let it go. Consider the emotional implications of relocating and the impact it’s going to have on you and your family.
What are your long-term goals for the home? If your long-term goals don’t revolve around the house, you would probably be better off not remodeling your home. For example, if you want to have a big family and live in a two-bedroom house, you might need to move sooner or later. Expanding your current home will drastically increase the costs if you are changing the floor plan, so you might be better off relocating.
The pros and cons of remodeling or buying a new home
Hopefully, you could address some of the questions above and determine your stance on the situation. However, you must be aware that renovating and relocating have pros and cons. We want to highlight some of them and let you decide which solution fits best for you.
Relocation pros
Relocating is not easy, but it has its fair share of pros, and one of them is that you are purchasing a home and a new investment. Many people who relocate see it as an opportunity to expand their portfolio if they have equity on their side. Maybe your current assets are no longer affordable, and you are thinking about downsizing to alleviate financial strains or kick outstanding debts. This might be the shot you are looking for.
Relocating means a new beginning, and while many might argue that new beginnings are not necessarily a pro, how else are you going to know if the grass is greener on a new lawn? A change of perspective might be exactly what you need to expand your horizon and improve at a personal and social level.
You are no longer a first-time homebuyer, and since you’ve been there before, it is a lot easier now to go through the paperwork and the purchase process. Find a real estate agent who can assist you with taxes, insurance, and title and find a quality lender to buy the new house. It is a big step, but you’ve been there before on your first home purchase, and you won’t be so stressed out about what will happen since you are already familiar with the process.
Relocation cons
Relocating has its fair share of downsides, and one of them has to be the moving part. Having to pack everything up and move all your belongings to the new home is not something anyone can say they enjoy doing. Even if you don’t do it yourself, you still have to pay moving costs to have someone else do it for you.
Even though you are more comfortable with the<a href="https://www.destinpropertyexpert.com/blog/a-complete-closing-checklist-for-first-time-home-buyers/" title="Homebuying checklist"> process of home buying</a>, moving is a stressful life event nonetheless. Six out of ten people find moving to be one of the most stressful things to do, beating out even other stressful situations such as break up or divorce. Take it into consideration before deciding to proceed on this route since things can get quite bumpy down the road, especially if you have a family.
You are no longer a first-time home buyer, but keep in mind that you might be a first-time home seller. Selling the home could take quite a while if you are located in a buyer’s market, and the selling price might be lower than you think. Also, selling your home involves paying your<a href="https://www.destinpropertyexpert.com/blog/top-5-reasons-why-choosing-your-real-estate-agent-carefully-really-matters/" title=" Finding a great real estate agent"> real estate agent</a> and some other fees. The selling process can be complicated and expensive, so you have to be willing to go through it to relocate unless you want to use the second home as a <a href="https://www.destinpropertyexpert.com/blog/turn-your-house-into-vacation-rental-home/" title="Turning a 2nd home into an income property" target="_blank">passive income strategy</a>.
Remodeling pros
Remodeling allows for more financial flexibility because you are not forced to remodel everything in one go, and you can plan ahead based on your current budget. You can split the project into chunks and complete parts of it throughout the year. You don’t need to remodel everything in your home, which means your budget can flow with what you need to do.
A personal touch is probably one of the most significant incentives to choose to remodel over relocating. With a renovation, you can change your home according to your desires and expectations. Buying a new home might provide you with only a few of the features you want, and then you would have to invest even further to <a href="https://www.destinpropertyexpert.com/blog/what-to-look-for-when-youre-buying-your-forever-home/" title="Looking for that forever home">turn it into your dream home</a>. Moreover, you can save money on your renovations to achieve your desired home features without paying a fortune.
<a href="https://www.destinpropertyexpert.com/blog/how-can-i-increase-the-value-of-my-home-heres-the-answer/" title="Increase home value">You can increase your home value</a> with renovations, and if, for some reason, you decide to sell it further down the road, you are looking at a home with an increased market value. If your remodeling project targets bathrooms and the kitchen, you look at quite a significant value appreciation since those are the rooms that sell the home. If you have a lot of home equity, you can use your home as collateral to borrow against its value and pay for the renovation, so it’s a win for everyone.
Renovation cons
During the remodeling process, the last thing you want is surprise expenses, and it happens more often than not. This is especially true for large-scale projects that might involve tearing down walls, moving plumbing, and so forth. Unfortunately, surprise expenses will cause a surge in your remodeling budget, which is not a pleasant thing to have.
Remodeling means that your home will be a construction site for a few days or weeks, depending on the project's size. Some remodeling projects might still allow you to live in your house in a separate room until the renovation is complete, but others might require you to move out for a few days, which might come with some extra costs for accommodations. It will be stressful and loud until the project is finished, and you need to have patience.
The quality of the work performed may not meet your standards. This can be one of the most frustrating aspects of renovations. You have now spent a large sum of money and have part of your house seem worse than I was to start.
Conclusion
As a homeowner, there comes a time when you have to undergo a remodeling project or consider relocating. However, for many people, the two overlap, and you have to decide whether you are willing to move into a new home or remodel the current one. If that is the case, then we have underlined some of the pros and cons, along with a series of questions that will hopefully help you decide on remodeling your home or relocating.
If you enjoy this content, make sure to share it on your social media platforms and let your friends know which is best - remodeling or purchasing a new home.2021-03-23T11:07:00-07:002023-12-07T16:29:25-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:17607What are First Time Home Buyer Mortgage Programs in Florida?<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/First-time-home-buyer-programs-in-Florida-2.jpg" width="900" height="506" alt="First time home buyer mortgage programs" style="margin: 5px auto; display: block;" />Florida is one of the hottest real estate markets in the country. The median sale price in January 2021 was $305,000, which is a 15.1% increase compared to the previous year. Amidst the pandemic, Florida real estate is one of the most lucrative investments. However, buying a home has its challenges. With a conventional 20% down payment on a $305,000 Florida home, you would have to pay $61,000 upfront. The minimum down payment is just one of the many barriers that first-time home buyers must overcome when getting a mortgage.
Luckily, there are <a href="https://casaplorer.com/fl/first-time-home-buyer-florida">first-time home buyer programs</a> that make mortgages much more accessible. These programs help with down payments, have lower requirements, and maintain competitive mortgage rates. If you are eligible for first-time home buyer programs, you should always consider them because they can provide many benefits with very few downsides.
Florida’s first-time home buyer programs are provided through the <a href="https://www.floridahousing.org/">Florida Housing Finance Corporation (Florida Housing)</a>, which is a government-sponsored agency that aims to make housing affordable for everyone.
Mortgage Programs
Florida Housing’s most popular mortgage is their Florida First mortgage. This is the same as a conventional mortgage but it is insured by Florida Housing. Since this mortgage is insured by a government-sponsored agency, your monthly mortgage insurance payments and your mortgage rate could both be lower than with a conventional mortgage.
Their second primary mortgage, the Florida HFA Preferred 3% PLUS Conventional Loan Program, is the same as Florida First but you receive a 3-5% forgivable loan to help make a down payment on your home. While this may seem like free money, receiving this forgivable loan could increase your mortgage rate and you could end up paying more money over the mortgage’s lifetime. Likewise, using the 5% and 4% options will result in higher mortgage rates than the 3% option. Depending on your mortgage terms, it may make more financial sense to get a Florida First mortgage.
Through Florida Housing’s Salute Our Soldiers Military loan program, you can effectively get a Florida First mortgage. If you are active military personnel or a qualified veteran, then you do not need to be a first-time home buyer to get the Florida First benefits.
Assistance Programs
If you qualify for a Florida Housing mortgage, you are automatically eligible for one of <a href="https://floridahousing.org/programs/homebuyer-loan-program-wizards/down-payment-assistance-programs">Florida Housing’s down payment assistance programs</a>, FL Assist and FL HLP. Unfortunately, the grant offered with the Florida HFA Preferred 3% PLUS Conventional Loan Program is considered a down payment assistance program, so you would not be eligible to pick another one with this program.
The FL Assist program offers up to $7,500 as a deferred second mortgage that is ONLY repaid during the sale, transfer, or satisfaction of your mortgage. Conversely, the Florida Homeownership Loan Program (FL HLP) offers up to $10,000 as a 3% second mortgage. This mortgage is amortized over 15 years, so you should only use this program if you urgently need the $10,000.
Mortgage Credit Certificate
In addition to your mortgage and down payment assistance programs, Florida Housing lets you apply for their Mortgage Credit Certificate (MCC) program when taking out a mortgage if you meet certain requirements. MCC’s let you use part of your interest payments as a federal tax credit. This means you can directly reduce your tax liability just by keeping up with your mortgage payments. This credit amounts to the minimum of 50% of your paid mortgage interest or $2,000.
Federal Programs
Federal mortgage programs are available anywhere in the U.S. and provide some great benefits. If you don’t like the Florida Housing programs, different federal government agencies have their unique programs.
Fannie Mae and Freddie Mac
<a href="https://www.fhfa.gov/SupervisionRegulation/FannieMaeandFreddieMac/Pages/About-Fannie-Mae---Freddie-Mac.aspx">Fannie Mae and Freddie Mac</a> mortgage programs have lower requirements than conventional loans. The HomeReady program only requires a 3% down payment and the HomePossible program requires no down payment and no credit score.
FHA Loans
FHA Loans are targeted toward low-income earners and only require a minimum down payment of 3.5% and a credit score of 500. However, you should only get an FHA loan if you don’t qualify for other loans because the mortgage rates are slightly higher.
VA Loans
VA Loans are some of the best loans available and are comparable to Florida First mortgages. They have no minimum down payment and have extremely low rates among many other benefits. If you are a veteran, you should compare the benefits between a VA loan and a Florida First loan because you qualify for both!
USDA Loans
USDA loans, also known as Rural Development loans, are meant to help low to medium-income earners buy houses in rural areas. These loans have no minimum credit score requirements, but your eligibility partially relies on your house’s location. You should check your eligibility to understand all of your options.
Buying a Home in Florida
When purchasing a home in Florida, there are a few things you should consider. As every real estate enthusiast will tell you, the most important aspect is location, but there are dozens of other considerations to be made. In Florida, home buyers receive buyer representation for free because the seller pays for the commission. Since this commission is factored into the price, it would be helpful to understand how much the <a href="https://casaplorer.com/fl/commission-calculator-florida">Florida real estate commission</a> amounts to.
Once you’ve found your ideal home, you should select the first-time home buyer program that best suits your needs. This includes your home price, your financial situation, your credit score, and even the county. There is no single best set of first-time home buyer programs because it ultimately depends on you. Selecting the right program can make buying a home easier and save you thousands of dollars.
Additional real estate resources
There are small mistakes and large mistakes that we all be in life. Sharon Paxton has written a great resource showing first time homebuyers what <a href="https://newportbeachrealestatecafe.com/2018/02/14/8-first-time-home-buyer-mistakes-to-avoid/" title="First-time homebuyer mistakes" target="_blank">mistakes to avoid</a> when purchasing a home.
Paul Sian has written a very helpful article for <a href="https://www.cincinkyrealestate.com/blog/first-time-home-buying-tips-for-millennials/" title="First-time home buying tips for millennial's" target="_blank">millennial first-time homebuyers</a>. He discusses everything from budgeting for a down payment to starting the home buying process.
Luke Skar has put together a complete guide to <a href="https://www.madisonmortgageguys.com/programs/first-time-home-buyer/" title="First-time homebuyer financing" target="_blank">first-time homebuyer financing</a>. He goes through options like FHA loans, VA loans, USDA rural housing loans, and more.2021-03-19T14:53:00-07:002021-03-19T16:02:42-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:16919How Buyers Can Get the Best Deal on a Home in a Seller’s Market <img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/How-buyers-can-get-the-best-feel-on-a-home-in-a-sellers-market.jpg" width="1280" height="720" alt=" how buyers can get the best deal on a home and a sellers market" style="margin: 6px;" />When it comes to buying and selling houses, trends come and go. Factors like government policies, socio-economic factors, demographics, and technology are just some that weigh in on supply and demand. When inventory and demand are low, it becomes a seller’s market.
In a seller’s market, properties are scarce, and there are many buyers looking to buy. Sellers can charge higher prices, and bidding wars are likely.
When there are a lot of buyers bidding on one property, things can get out of control, and you can easily end up spending a lot more than you would like on a home.
The good news is, there are ways for buyers to buy homes in a seller’s market and still get a great deal. Here are some tips that will help you find a home with affordable payments regardless of the real estate climate.
Determine if you are in a seller’s market
The first thing you will want to do is determine if you are in a seller’s market. That way you can develop a strategy well suited for the current<a href="https://www.inman.com/next/top-10-ways-to-strengthen-your-offer-and-beat-out-competing-buyers/" title="How to beat other buyers" target="_blank"> real estate climate</a>.
<a href="https://www.destinpropertyexpert.com/blog/things-to-consider-when-choosing-a-trusted-real-estate-agent/" title="Finding a qualified realtor">A good real estate agent</a> will be able to tell whether it’s a seller’s market by using a few simple calculations.
One tool they may use is a market absorption calculator. The calculator asks for the number of homes that were sold in the past 12 months in any given area. It divides the number by 12 and divides it again into the current number of listings.
The result tells you how many months it will take to sell all the remaining homes or inventory for sale in that area. If the number is low, it’s a seller’s market. If it’s high, it’s a buyer’s market.<br />Another measurement you can take is the sales price to list ratio. If the ratio is over 100%, it means it’s a hot market for sellers. If it’s just under 100, it’s a seller’s market. Buyers will have a field day if the percentage is in the ’80s.
Make your best offer upfront
If you are dealing with a buyer’s market, you may make a low offer to see if the seller is motivated enough to bite. In a <a href="https://www.thebalance.com/tips-for-home-buying-in-a-sizzling-hot-seller-s-market-1798355" title="Tips for buying a home during a sellers market" target="_blank">seller’s market</a>, you want to do exactly the opposite.
The hope is that the seller will find your offer attractive and bite immediately before waiting to see if other offers appear. It eliminates the chances of a bidding war that will make prices soar out of control. This is key during a time with historically low-interest rates, so ensure you get the best advice from your agent. It’s important to research their background and make sure they completed courses at an accredited real estate school.
Make a cash offer
You can make your offer even more attractive by offering cash.<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/How-cash-offers-help-with-beating-wars-on-homes.jpg" width="350" height="525" alt="How to buy a home with a cash offer" style="margin: 6px; float: right;" /><br />A cash offer is an all-cash bid that doesn’t involve a mortgage loan or any other financing. Sellers like cash offers because no buyer financing means no fall-through risk and it usually yields a faster closing time.
Here are some benefits cash offers provide buyers:
Fewer Contingencies: With a cash offer, there are no financing contingencies or sale contingencies. That means the sale is less like to fall through.
Simpler Closing Process: A cash offer does not require financing and the mounds of paperwork that comes with it. Therefore, the closing process is a lot faster. With cash offers, processing can be completed in as little as two weeks. This compares to the 30-45 days a financed offer can take.
Fewer Closing Costs: Closing costs are also cheaper with a cash bid since no lender fees come into play.
Appraisals: Appraisals are typically lender mandated. Since there is no lender in the picture with a cash offer, the appraisal can be waived. Waiving an appraisal may make the offer even more attractive to a buyer, but it also means you’re taking a chance in terms of the house appraising at a lower price than you’re paying.
Title and Escrow: Title and escrow companies are still necessary for a cash transaction but without a lender, the buyer has the freedom to shop around for a company that offers low rates.
Making a cash offer requires a lot of capital, and not everyone has the funds. But if you have enough saved up, it just might help you get the home of your dreams in a seller’s market.
Counter the price with lower interest rates
In a seller’s market, you may end up paying more for your home, but if you get a low enough interest rate, it will balance these expenses. In fact, it’s often low-interest rates that tip the scales in making it a seller’s market.
There are a few things you can do to ensure your interest rates will be as low as possible. These include the following.
Shop Around: Talk to a few lenders to determine who’s offering the best rates before committing.
Get Your Credit in Good Shape: The better your credit score is the less interest you will pay. It’s a good idea to get your credit in good shape even talking to a lender. You can do this by reviewing your credit report and making sure there are no errors that may bring your score down. If you find errors, contact credit bureaus to have them removed. You should also pay off any outstanding debts if possible.
See if You are Eligible for Special Programs: Your state may have special programs that make home-buying more affordable. These programs may provide assistance that can help with down payments and lower interest rates. Find out if you are eligible to cash in on the reduced rates they offer.
A low-interest rate is ideal in any market. With<a href="https://www.destinpropertyexpert.com/blog/is-real-estate-profitable/" title="Learn how real estate is profitable"> real estate being so profitable</a>, a low-interest rate will reduce your losses making your home an even better investment.
Use letters and videos<br />Getting the home of your dreams is not only about making the best offer. A seller can choose to accept your offer based on your personal situation. The best way to tell them about you is to <a href="https://www.nar.realtor/fair-housing-corner/love-letters-or-liability-letters" title="Write a letter to the owner" target="_blank">submit a letter</a> or video testimony when submitting your offer.
When submitting your letter or video, you can make yourself seem like a great buyer by telling the seller how much the home will benefit you. For instance, you can tell them how much your children will appreciate running around in the outdoor space and how it will fuel their passion for natural biology.
You can also tell them about <a href="https://www.destinpropertyexpert.com/blog/home-improvement-hacks-contractor-would-know/">improvements you plan to make</a> to the house based on its existing structure. This will show a sentimental attachment.
Another suggestion is to explain how you plan to be an asset to the community. Being active in PTA and local groups for neighborhood betterment can help you get a literal foot in the door when it comes to comparing your offer to other bids.
Buying in a seller’s market is not easy, but the tips in this article will increase the likelihood that you will get<a href="https://www.destinpropertyexpert.com/blog/what-to-look-for-when-youre-buying-your-forever-home/" title="looking for your dream home"> into the home of your dreams</a>, no matter what the financial climate is like. What steps do you recommend buyers take when they’re shopping around?2021-02-06T15:15:00-07:002023-11-19T21:40:14-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:15363Is Now a Good Time for Second Steppers and Upsizers to Buy?<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/second_steppers_and_upsizers.jpg" width="800" height="400" alt="Is now a good time to buy for upsizers and second steppers?" style="margin: 5px auto; display: block;" />
When people <a href="https://www.destinpropertyexpert.com/blog/a-complete-closing-checklist-for-first-time-home-buyers/" title=" Checklist for first-time homebuyers">buy their first home</a>, they are not always planning on staying in that property for the rest of their lives. In many cases, people specifically buy a smaller, more affordable home with the intention of moving into a larger property later. These people are usually referred to as second steppers or upsizers.
If you fall into one of these categories, you may be wondering whether now a good time for you is to buy. These are a few things you should consider if you are thinking about buying a larger home.
The Housing Market Varies Based on Location
While the housing market has generally been stable, this is not the same in all areas. Some parts of the country have seen a significant increase in home prices, and in other areas, prices have dropped. If you have a clearer picture of your local real estate market, it will be easier for you to determine what your next step should be.
Learn more about the market in the area you live in. Look at properties that are like yours and find out what these homes have sold for. Check to see how long properties are staying on the market. Find out whether you'll be able to afford the kind of home you want.
In some locations, you may have a <a href="https://www.destinpropertyexpert.com/blog/buying-new-construction-home-in-market-with-low-inventory-why-you-should/" title="Find new construction homes when market has low inventory">difficult time finding a home</a> that checks off all the boxes that you're looking for. If the real estate market in your area has a low inventory of <a href="https://www.destinpropertyexpert.com/miramar-beach/" target="_blank" title="Miramar Beach, Florida homes for sale">homes for sale like Miramar Beach often does, </a>you may want to think about <a href="https://www.destinpropertyexpert.com/homes/new-construction-homes-30a-santa-rosa-beach-miramar-beach-and-destin/" title="New construction homes for sale Santa Rosa Beach and Destin">purchasing a new construction home</a>. When building your own home, you will have to wait between 9 and 14 months on average, but you can pick and choose all the options you desire.
Assess Your Current Home
Before you can <a href="https://www.destinpropertyexpert.com/30a/new-listings/" title="New listings on 30a">buy a new property</a>, you must sell the home you are living in now. You should evaluate the property you are currently in and determine whether it is ready to sell. If your home needs some upgrades or repairs, you may want to address these things before you put your property on the market.
If your home has recent updates and is in excellent condition, you will easily find a buyer. In fact, because renovation work is usually at its most valuable when it is recent, you may want to list your home sooner rather than later.
Talk To A Realtor
Speaking with a real estate agent will not cost you anything, and it will give you a clearer picture of your current options. Realtors are experts and have access to resources that the average person cannot access. During a meeting with a realtor, you can talk about listing your home and homes that are on the market right now.
Deciding to move is a big decision, which is why you may not want to make this choice on your own. If you <a href="https://www.destinpropertyexpert.com/blog/things-to-consider-when-choosing-a-trusted-real-estate-agent/" title="How to choose a realtor">have a conversation with a real estate agent</a>, you will be able to get more information and decide whether you would like to continue to work with that professional in the future.
Look at Interest Rates
It is likely that you will be taking out a new mortgage to fund the purchase of your new home. You will want to look at your lending options and see what your interest rates are likely to be.
Even if you are not sure if you are ready to buy a new home, you may want to <a href="https://www.destinpropertyexpert.com/blog/loan-for-first-home/" title="How to get a loan for your house" target="_blank">get pre-approved for a home loan</a>. This will give you a clearer picture of current interest rates and show you what lenders are willing to offer you. You can also read here for more tips and suggestions.
Consider All Your Options
Selling your current home is not the only option that you have. You can also rent out the property you live in now. Whether this is a viable option for you will vary based on the rental market in your area. You will also have to consult with a lender to make sure your debt-to-income ratio is low enough to be able to keep and rent your current home and get another mortgage for a new property.
If you do plan on renting your home, you will want to make sure you are prepared to deal with the responsibilities of being a landlord. You may want to work with a property management company that will handle many of these tasks on your behalf. Find out whether renting out your current home will cover the cost of your mortgage.
Start Searching
At the end of the day, the real estate market is all about timing and opportunities. If there is a beautiful home in your area that has everything you are looking for, you may want to make an offer before someone else snatches it up. Getting the inside scoop on a home for sale<a href="https://tyronewoodsmhc.com/homes-for-sale" target="_blank"> </a>before a house hits the market can be the best way to get a good deal on a home and have less competition.
However, if you are not seeing any properties that stand out to you, you may want to hold off on buying for now. You should start exploring the market now so that you can see the kinds of options that are available in your price range. See if you can get what you want at the right price.
The present can be a great time for second steppers and upsizes to move into a home that fits their needs better. However, you will want to take a closer look at your situation before making any decisions about how to proceed. Look at the pros and cons of buying a new home and decide what you want to do next.2020-09-27T13:35:00-07:002023-12-05T15:01:14-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:11200Top five reasons to purchase a 30a waterfront home30a waterfront property top 5 list – Why to buy
1. Always in demand
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/30a-beachfront-homes-have-the-best-views-300x213.jpg" width="300" height="213" alt="30a waterfront property – reasons to buy" style="margin: 7px 5px; float: left;" />30a beachfront homes have the best views30a Waterfront homes are always in demand because of limited space and for the obvious reason, the views and the beach.
It might take a while to find a home with the right amenities, location and atmosphere you desire.
But whenever you do, make an offer with your agent that is going to be realistic.
When buyers are lowballing offers on 30a waterfront property they are allowing time for other buyers to make higher offers and scoop the property out from under them.
Demand for waterfront properties in good locations remains strong. 30A with its glistening water, great food and sunshine is such good location.
So, if you find the perfect waterfront property for sale, act fast, call Danny Margagliano at 850-830-4747.
2. 30a homes have high-end designs
Beachfront homes 30a are designed to have scenic views from nearly every room.
Apart from this, there are many luxury features such as cathedral ceilings, fireplaces in living spaces, oceanfront swimming pools, Italian marble floors, Jacuzzis, gourmet kitchen and many other state of the art equipment that everyone finds desirable.
With these high-end amenities, the ocean views and the beach lifestyle that 30a waterfront homes present, why would anyone say no?
3. 30a is a great place to have a vacation home
Waterfront homes are perfect place to get some family time. 30A waterfront homes for sale set the tone for a perfect holiday with water activities to lift your spirits.
Everyone loves the beach. Some like to build sand castles, go swimming in the Gulf of Mexico or relax in the sun while others can be just as impressed by looking at it all from inside the home.
Waking up early and casting a line into the water and catching tonight’s dinner does not happen everywhere. You can invite friends over and enjoy a wonderful time with loved ones every year at your vacation home.
Trying to find a great place for family time, then look no further. 30a is the perfect destination for family vacations, a romantic couples get away or a wonderful area to come alone and meet new friends.
4. The perfect spot to unwind
Nature offers the best relaxation. Nothing beats being able to walk around the beach and experience nature’s beauty.
People purchase 30a waterfront homes for all kinds of reasons.<br />Picture relaxing in a hammock in front of one of the many waterfront homes. Now this is something just about anyone could get used to.
Working in a setting like this has been known to boost creativity. A secluded waterfront property for sale at the beach is a perfect spot for relaxation.
Relaxing and just reading a book with a light seabreeze can prove to be one of the most therapeutic activities. You can get away from the world’s hustle and bustle and experience tranquility.
5. Luxury lifestyle
Many buyers purchase 30A Gulf front homes because of the luxury amenities that come with it and the emotional thrill of owning a house on the beach. Therefore, they are worth more than dry lot homes.
Santa Rosa Beach, Blue Mountain Beach, Grayton Beach, Seagrove and Rosemary Beach are just a few of the small communities to choose from along 30a.
These communities offer special and different restaurants, shops and entertainment that will impress you as much as the beautiful beaches and emerald colored Gulf of Mexico.
Whether you want a home on a coastal dune lake or a beachfront property, there’s something for everyone’s lifestyle and taste along South Walton Beach’s coastal communities.
Look below at some excellent quick links to 30a waterfront homes and properties for sale2020-06-20T07:47:00-07:002020-07-04T13:27:37-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:111864 Reasons Santa Rosa Beach Homes Are More Affordable Than You Think<br /><img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Santa-Rosa-beach-homes-are-more-affordable.jpg" width="450" height="300" alt="Santa Rosa Beach comes are more affordable than you think" title="Santa Rosa Beach comes are more affordable than you think" style="float: left; margin: 11px;" />A 17-mile long sea-facing stretch on Emerald Coast, Santa Rosa Beach is known for its rich history and heavenly turquoise water. It was established in 1910 and won the Best eCity of Florida in 2013. From <a href="https://destinpropertyexpert.com/rosemary-beach-real-estate/">luxury beach homes</a> to upscale restaurants, you’ll find everything in Santa Rosa Beach. Houses are not nearly as expensive as other areas, like Marco Island real estate, which is the reason why it has become a popular vacation home investment destination for young families.
The 4 Reasons Your Santa Rosa Beach Don’t Cost as Much as You Think
1. The Abundance of Builders and Projects
Even though Santa Rosa Beach is an old city, there is a boom in the real estate industry. Because of the very same reason, there are a lot of new projects in the area that haven’t been sold yet. If you are planning to purchase a property in Santa Rosa Beach any time soon, you need to start looking at listings because there are several enthusiastic buyers already in line.
2. Old establishments
Another reason why real estate is so affordable in Santa Rosa Beach is that you can still find homes. Many of them were constructed during the 1970s and hadn’t been remodeled. The majority of people prefer to invest in <a href="http://destinpropertyexpert.com/30a/new-construction/" title="New construction homes on 30a">newly established homes </a>because older ones need a lot of work. However, if you are looking for an older house at a cheaper rate, you may want to see if it is worth a visit. You’ll find a lot of different style houses in Santa Rosa Beach that have a strong foundation.
3. Rental Income
Most purchasers don’t plan to actually live in the home full time. However, when looking at homes they rarely calculate the additional rental income that comes from purchasing.
4. Pressure From Surrounding Areas
Santa Rosa is beautiful, but so are places like Destin, Fort Walton Beach, or Eglin. These areas have many options as well and if you’re coming from out of state then you might consider the entire coastline.
Here are some more reasons to choose Santa Rosa Beach over other areas
World-class amenities
Santa Rosa Beach has a 17-mile long white sandy stretch that is lined with a pedestrian path for jogging, cycling, and walking. When you become a member of Santa Rosa Golf and Beach Club, you and your family get access to the 18-hole golf course that you can visit any time you want. The shiny blue water makes boating, kayaking, recreational fishing, and other water sports so much fun.
It also is a great spot for hiking, biking, and hunting as areas are maintained for safe wildlife sports. The Point Washington State Forest is very close to Santa Rosa Beach. It is a 15,000 acres big enclosed area that is filled with beautiful animals, plants, and trees. You also get to see migrating birds during the migration season.
Long-term investment
The real estate industry is booming, so if you are looking for a long-term investment, Santa Rosa Beach is the right choice. You can sell the property after a few years when the price increases.
Growing tourism culture
Florida has always been a favorite among Americans for traveling all year round. Until now, Santa Rosa Island didn’t do quite well in the tourism sector (which could be a huge plus), but due to recent infrastructure refurbishments and booming real estate, many are starting to appreciate its beauty.
Consider Santa Rosa Beach as a great location for purchasing a vacation home. You don’t have to worry about finding house rentals and hotels but simply get in the car and drive for a quiet weekend.
2020-06-19T14:19:00-07:002020-07-03T12:23:19-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:11178What to Look For When You’re Buying Your Forever HomeHow to find your dream home?
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/What-to-look-for-when-you-are-buying-your-forever-home.jpg" width="800" height="533" alt="When buying your forever home there are certain things that you must look for when house hunting" title="What to look for when buying your forever home" style="vertical-align: top; margin: 10px auto; display: block;" />If you’re considering buying a new home, there are a few things to remember. Maybe you want a beautifully updated kitchen, tons of closet space, or a fenced backyard so the kids and the dogs can run around outside unsupervised. Perhaps you want proximity to grocery stores, schools, libraries, and parks. But what are the most important factors to consider when searching for your forever home? Consider these <a href="https://www.destinpropertyexpert.com/blog/tips-moving-kids/" title="Moving with kids" target="_blank">tips before you move</a>.
Location, location, location
You often hear that “location, location, location” are the three most important factors when buying a new home. After all, you can change almost any imperfection in a home but can’t change the neighborhood and neighbors. When you look at potential houses, consider how close the home is to your workplace, how much you like or don’t like the neighborhood, noise from traffic, as well as access to shopping centers, public transportation, and other points of interest that are important to you and your family.
Does size really matter?
Don’t automatically go for the biggest house you can afford—there are many factors to consider. Do you plan to grow your family soon? Are you downsizing because the kids are all finally in college? Think about how many rooms or space you’ll need to live the life you want. For example, don’t buy a house with a tiny kitchen if you plan on entertaining, and don’t buy a house with a massive yard if you hate yard work. A good rule of thumb is to buy a small or average-sized home in <a href="https://www.destinpropertyexpert.com/blog/30a-subdivisions-and-neighborhoods/" title="Best neighborhoods and communities on 30a" target="_blank">the best neighborhood you can afford</a>.
Natural light is the way to go
This may seem unimportant, but the amount of light in a home can make or break your experience. Sunlight in the morning or being able to let some natural light in as the sun sets can affect your mood and the way you start and end your day. Try to see any potential new homes at various times of the day to ensure that there’s enough natural light.
Bathrooms can make or break the home
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Choose-a-bathroom-with-a-good-layout.jpg" width="400" height="267" alt="Choosing the right bathroom for you can make or break the home" title="Choose your bathroom carefully" style="float: left; margin: 10px;" />If you need your bathroom to have every state-of-the-art fixture, make sure you look into them before purchasing your new home. Items that are easy to replace are <a href="https://www.destinpropertyexpert.com/blog/things-to-consider-when-buying-a-bathroom-sink-faucet/" title="Bathroom sink faucet" target="_blank">things like bathroom faucets</a> for hardware on the vanity. Keep in mind that renovations to bathrooms are less flexible than other areas of the house because of plumbing connections. If you like everything about the bathroom but want to knock down a wall or two, perhaps this house isn’t right for you.
When buying a forever home choose the right layout for you
Do you like open floor plans or prefer a traditional formal dining room, separate from the living room? Do you want a long hallway upstairs or a ranch-style home that will remain easily accessible as you grow older? When considering a forever home, it’s important to consider what kind of house will suit you or your family throughout life. For example, if you have a baby, you may want the master bedroom on the same floor as the baby’s room, instead of a downstairs master with the rest of the bedrooms upstairs. In a similar vein, if you plan to have friends over for dinner, you may want a large open kitchen or a family room that opens up, so many people can gather around the TV (or the snacks).
A home with a bad curb appeal is bad for the seller yet good for the buyer
Curb appeal is a general term used to describe how nice a house looks from the outside. Plenty of things can increase curb appeal quickly, such as a new coat of paint, power washing, planting flower beds, or even installing a picket fence. Because of this, don’t be quick to write off a house that doesn’t look perfect. However, if the roof is sagging or other structural elements are not attractive, then it could be a sign that the structural integrity of the house is in question. Don’t take that kind of risk. If necessary, make a checklist of repairs that need to be done after a home inspection and see if a current home warranty could be transferred into your name.
You can’t change your neighbors
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/you-cannot-change-your-neighbors.JPG" width="400" height="600" alt="You can't choose your neighbors but you can check them out before you move in" title="You can't choose your neighbors" style="float: right; margin: 10px;" />If possible, try to talk to some of your potential neighbors. Ask if they like the neighborhood, how long they’ve lived there, and whether they would recommend it to their friends. Is there a Homeowner’s Association? If so, what does that include, and are there fees? What is the neighborhood like in different seasons? Do they plan any fun events? All of these are questions that can help you decide if the neighborhood is right for you.
In neighborhoods without HOAs, the home next to you can do just about anything they wish without breaking the law. The last thing you would want is to move next to a <a href="https://www.destinpropertyexpert.com/blog/what-to-do-when-neighbor-damages-your-property/" target="_blank">neighbor that could damage your house</a>. It may be rare, but your neighbor could be hitting golf balls in his yard, practicing archery, or doing something else that could potentially damage your house.
If you’re very social, you won’t want to live on a street where no one really talks to each other. If you’re an introvert, a street that plans monthly block parties probably isn’t for you.
Landscape Maintenance
A hidden side of owning a home is how much yard work and maintenance needs to be done. The beautiful trees that circle your property will all dump their leaves come autumn, and you’re the one who will have to rake them, bag them, and put them on the curb. While this seems like a fun fall activity for some, others will run screaming for the hills. Be honest about how much yard work and maintenance you’re willing to do, and channel that into your house search.
Weather
Depending on where you’re looking to buy, this may not be as much of an issue, but some houses are better suited to some seasons and climates than others. If you live in a location that sees frigid winters, you’re not going to want to live in a house with lots of huge glass windows and doors, as these pose an insulation problem. Similarly, if you’re going to live in a hot climate, light and open layout will help keep you cool. Consider the location and the weather before you buy, and you may save yourself a fortune in heating and cooling costs.2020-06-19T11:29:00-07:002023-12-01T11:30:51-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:11173The Ultimate Home Buyers TimelineThe home buying process can be an exciting time, but it can also be stressful if you don’t stay organized. To keep you on track and on schedule with your goals, use this home buyer’s timeline as a reference throughout your search.
Start Researching Homes (12–24 Months Before Closing)
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/Ultimate-home-buyers-timeline.jpg" width="900" height="473" style="display: block; margin-left: auto; margin-right: auto;" />One of the most important parts of searching for a new home is doing your research. Evaluate what is most important to you when purchasing a home. This could include the size of the home, attractive features like a pool or a large backyard, and the neighborhood you want to be in.
Did you know that the neighborhood you choose plays a huge factor in the overall cost of the home? Make sure you compare all neighborhoods you’re looking to move to and how their location affects the overall purchase price of the home.
Along with the type of home and neighborhood, you’d like to move into, research the current housing market. Is it a good time to buy or is it more of a seller’s market? If you have the time to hold off on purchasing a home until the market is in your favor, wait until the time is right. On the other hand, if you’re able to buy a home quickly when the market is hot, consider taking advantage of this period.
Research Home Buying Tips (8–12 Months Before Closing)
If this is your first time buying a home, you may want to consider finding first-time home buyer tips and articles. It’s a good idea to learn key terms commonly used during the home buying process as well as tips on how to maintain a home. Furthermore, you’ll get to learn about common real estate issues in your area and what the local market is like.
If you are purchasing an investment property you also want to do plenty of research. There are many different things to consider when purchasing a property that you plan on renting. Some things to consider are the HOA rules, financing, and taxes to name a few.
Understand Your Current Finances (6–10 months before closing)
This may not come as a surprise, but it's imperative that you have your finances in order before purchasing a house. Even if your finances aren’t perfect ( many mortgage companies have some lenient loan programs), you should have a thorough understanding of your current financial state.
Key factors that are taken into consideration when you’re applying for a mortgage include your credit score and your debt-to-income ratio. Other factors that banks may take into consideration include your current length of employment, student loans, and how much of a down payment you’ll be putting down.
As far as finances are concerned, there is much more to purchasing a home than just having enough saved up for a down payment. Maintaining a home can prove to be very expensive. You’ll have to pay for homeowners insurance, utility bills, and any repairs to major systems and appliances. Plan to have three to six months’ worth of living expenses saved up in cash for any emergencies that might arise.
Get Pre-Approved for a Mortgage (4–8 months before closing)
Once you have an idea of the costs of purchasing and maintaining a home, start the process of getting pre-approved. This is one of the most important steps of the home buying process and lets you know how much home you can actually afford.
The pre-approval process is fairly straightforward—similar to applying for other loans, you’ll go through an application process with the bank you have chosen to purchase a mortgage from, and then you’ll discover if you’re pre-approved and how much you’re pre-approved for. To make this process more efficient, make sure you have important documents, like recent pay stubs and tax forms, on hand.
Hit the Market (3–4 months before closing)
Now that you know how much home you can afford, hit the market and “go shopping.” Your realtor should have a good understanding of the type of home you would like, where you would like to live, and your budget. Take note of how much you can negotiate a home’s price before jumping in with an offer.
Make an Offer (1–2 months before closing)
Once you find a home that you love and would like to purchase, work with your real estate agent to make an offer. When making an offer, be sure it’s compatible with similar homes in the neighborhood as well as what the current market suggests.
This form will include any disclosures and stipulations and involve negotiations like the purchase price being contingent on a home inspection. Be sure to review this document carefully before signing.
Perform Your Home Inspection (10 to 15 days after going under contract)
It’s always important to have a home inspection performed on the home you’re about to purchase. Regardless of the condition that the home is claimed to be in, or even if a renovation was recently made. Always get the peace of mind that a home inspection brings to the table. At only around $300–$500, you will be able to either rest easy knowing your future home is in good condition or get insight into problems with the house that could lead to new contingencies or negotiations on the purchase price. Yet, most contracts will have the seller responsible for repairs to be made up to a value of 1.5% of the purchase price.
Get a Real Estate Attorney and Purchase Your Homeowners Insurance (1 month before closing)
Depending on the state either the buyer and seller will both have their own lawyer or they use a mutual real estate title company to review all the pertinent documents and to attend the closing. Now is also the perfect time to purchase your homeowner’s insurance. You want to make sure you have a professional to look over all the necessary documents and ensure the paperwork has been filled out correctly.
You also must have homeowner’s insurance before closing. Otherwise, you will not be able to get your mortgage. Research insurance companies to see what options are available. If you already have auto insurance, you may be able to get a bundled deal with your current provider. lastly, don’t forget to purchase flood insurance. Some mortgage companies depending on the area may require flood insurance. Either way is typically worth the money to protect your home and have peace of mind.
Collect Your Keys
Once the previous steps have been completed, it’s time to close on your home. You should have all the proper documentation filed away and the keys to your home when the closing is complete.
2020-06-18T21:42:00-07:002023-11-30T16:19:19-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:11105What do millennials want when buying a home<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/What-do-millennials-want-when-buying-a-home.jpg" width="400" height="600" alt="What do millennial's want when buying a home" style="float: right; margin: 6px;" />It seems like a day doesn’t go by without another alarming headline about millennials. Depending on where you get your news, the generation’s shifting priorities and values are causing the demise of everything from brick-and-mortar retailers to golf courses. Other commentators opine that the younger generation is so different from its older counterparts, it may as well be an alien species.
This can be especially concerning if you’re trying to sell a home, because millennials represent the largest segment of the market, at nearly 32% of all homebuyers. But if you're one of those born between 1980 and 2000 who is looking to buy a house, you may be frustrated because you're not finding many listings that have the attributes you desire. The good news for both sides of this equation is that young people today aren’t really from another planet. In most cases, they're looking for the same features their parents wanted — just in a different configuration.
Making your property more appealing to millennials doesn’t necessarily require a significant overhaul or buying into alarmist ideas about their spending habits. In fact, just by making a few tweaks to your house and/or your listing, you can become more successful at grabbing their attention, making them comfortable throughout the buying process and getting them to close the deal. All it takes is a little insight into who millennials are, what they value most and how they feel about making such a major purchase.
Who Are They?
Shifting attitudes about marriage and career means these homebuyers are in a different place, socially and financially, than their parents and grandparents were when they began looking for their first homes. Millennials often wait longer to get married, and they also may be more reluctant to make a significant commitment when it comes to real estate. The majority of married and unmarried couples in this demographic are dual-income, which means they may not see the value in buying a house if they both spend most of their time at work. They also tend to be more interested in accumulating experiences rather than possessions. This can make owning a home a lesser priority to them than it was to older generations.
When asked to state their biggest concerns about buying a home, most millennials cite the costs involved. Many prefer to allocate their money to something other than a down payment or maintaining a house.
Millennial Home Buying Infographic
<a href="https://www.abl1.net/blog/targeting-millennial-homebuyers/"><img src="https://www.abl1.net/wp-content/uploads/2018/07/Millennial-Cheat-Sheet.png" height="900" /></a>What Millennials Want created by Asset Based Lending.
What Do They Want?
Despite all the hand-wringing about how millennials are potentially disrupting nearly every industry in the world, they still want many of the same qualities in a house that everyone else does. They want quality construction in a good location with the potential for a long and happy life for their families in a home where they will put down roots. However, there are a few must-have features that make these buyers slightly different from other segments of the market.
One of the biggest and most obvious is sustainability. These young people are more eco-conscious than virtually any other generation and are more likely to be concerned with improving their environmental footprints. That means energy-efficient appliances, solar panels, and renewable building materials can make your listing more attractive to them.
They also want to have confidence in their kitchen and bath fixtures. A home with appliances that are less than a year old will reassure them that they won't have to replace or repair a big-ticket item soon after taking possession. And don’t underestimate the importance of a strong Wi-Fi network and connectivity in attracting younger buyers. With so many of them working from home and streaming their entertainment over the Internet, it’s crucial that every room has good wireless coverage and plenty of electrical outlets.
In terms of the home’s layout, the traditional dining room/kitchen setup has fallen out of favor. Younger people prefer open-concept homes that blend living, dining, and kitchen spaces for a better flow and easier entertaining. Another crucial bit of information that could help you appeal to these buyers is that they’re not nearly as enamored with acquiring maximum square footage as their parents were. Millennials see extra bedrooms and enormous yards as unnecessary and are more focused on maximizing the potential of a smaller space. The ideal millennial floor plan would be a little more than 1,000 square feet, with three bedrooms and two bathrooms. This means they’re looking for properties that offer them flexibility. If a room can be used as both an office and a spare bedroom, that just makes it all the more appealing.
Although they don’t want to break the bank on a lot of extra rooms they won’t use, that doesn’t mean millennial homebuyers are all about cutting corners. The proliferation of lifestyle influencers on social media means this generation is more in tune with high-end design elements than others. They will recognize and seek out finishes such as hardwood floors, quartz countertops, and natural stone details. Sleek and modern are the qualities they value the most, as they want a house they can show off on Instagram.
How to make your listing pop
<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/How-to-make-your-listing-pop-for-millennials.jpg" width="900" height="471" alt=" how to make a home listing pop for millennial's" style="margin: 6px 5px;" />Perhaps not surprisingly, millennial homebuyers do most of their initial searching online. This means that if you're serious about capturing this market, you have to do more than type up a brief description and include a single curbside photo. If at all possible, <a href="https://destinpropertyexpert.com/deal-breakers-when-staging/">hire professionals to stage the house</a> and take photos. Most of these younger buyers won’t even drive past a property for sale if they aren't impressed by its online listing, so sellers should take this part of the process very seriously.
You'll also need to think outside the box when it comes to creating a listing on the Internet. Static photos, even when professionally done, may not be enough for every buyer. If you can arrange for a video walk-through that showcases your home from a point-of-view perspective, that can be incredibly helpful. In many cases, sellers have even turned to virtual reality walk-throughs to create the most immersive and technologically impressive results. An increasing number of realtors and sellers also are using drone footage to show off the property's exterior as well as the yard and <a href="https://destinpropertyexpert.com/south-walton-neighborhoods-which-one-is-right-for-me/">surrounding neighborhood</a>.
Even if some of the features they want from a home are different from the preferences of previous generations, selling your house to millennials shouldn’t be an insurmountable task. In fact, once you gain a bit more insight into how they think and what motivates them, it shouldn’t be too difficult to adjust your approach. For a summary of these points and more information, take a look at the accompanying infographic. 2020-06-15T08:18:00-07:002023-11-29T19:59:51-07:00Danny Margaglianotag:destinpropertyexpert.com,2012-09-20:10978How to Increase Your Credit Score When Getting Ready To Buy A Home<img src="https://assets.site-static.com/userfiles/2042/image/Blog_Photos/How-to-increase-your-credit-score-when-getting-ready-to-by-a-house-1.jpg" width="800" height="496" style="display: block; margin: 8px auto;" alt="increase your credit score before buying a home" /><br /><br />A credit score is becoming one of the most important factors when it comes to borrowing money, purchasing a house, or even getting hired by an employer. All anyone needs to check your score is your social security number and your written approval.
Miss a payment on your credit card or default on a loan, and your score will potentially crumble. If your score is lower than you would like it to be, then you have some work cut out for you. Everyone is looking for the fastest way to get their score higher. When getting ready to buy a home increasing your credit score prior to applying for a loan can save you a substantial amount of money on your monthly mortgage payments.
There are 3 major credit bureaus, and they all have different criteria that go in to determine your overall scores. And sometimes a derogatory mark isn’t reflected on all of the credit bureaus. If you have ever applied for a loan on a vehicle or a home, you may know that many times the lender will throw out the lowest scores.
So what can we do to increase a credit score to get the best interest rate on our home mortgage loan today? It’s far easier to keep a good score than it is to bring a poor one up.
But first, let’s talk about the difference between a credit score and a Fico score and if we can use these terms interchangeably.
FICO Score vs Credit Score<br /><br />
A<a href="https://www.fico.com/" target="_blank"> FICO score</a> was coined by the Fair Isaac Company and consists of 3 digits. The score that you’re assigned measures your credit risk. The higher the score the better.
A credit score also consists of 3 numbers and is derived from a proprietary model. Each of the major bureaus has its own model. Usually, the max score is 850. You won’t need 850 to get the best rate. You just need a credit score that is good enough! Typically, the minimum credit score you need to have to get a mortgage is around 650. Although, your interest rates will be much higher the lower your credit score is.
So no, a credit score and FICO are two different systems, but both are based upon your credit history.
Avoid High Credit Card Balances<br /><br />When you apply for a credit card the bank will usually issue you a maximum credit limit. For many individuals, the credit limit might be $2k or it could be even higher. If you max out your credit cards, then you can no longer make purchases, and this will negatively affect your credit score.
If you carry a high credit card balance, start making larger payments every month. The difference between the current balance on your credit card and the maximum amount you can charge is known as, available credit. The higher the better.
As you make payments towards your credit card each month, the available credit will increase. This is your first step to a higher credit score.
Ask for a Higher Credit Limits
Sometimes you can increase the amount of credit that you can charge on your account. What this does is increase the available credit that you have. But don’t go out and make new purchases. Your credit card company just did you a big favor, and by increasing your available limit, this should also increase your score.
Don’t Close Credit Card Accounts
Many consumers falsely believe that if they close credit card accounts they no longer use, or that have been paid off, it will ultimately help them. All they did was hurt their score.
When you cancel an account, this subtracts the overall available credit limits.
If you have two credit cards that both have 5K available balances
That means you have 10k in total available credit
When you cancel one of the cards, your maximum available credit is now just 5k
Pro-Tip
Contrary to popular belief another way to increase your score is to apply for more credit cards. Lenders want you to apply so they can charge you 18% interest rates. But you just want to add to your available credit limits. Don’t’ charge anything on these new cards, just put them in a drawer and forget about them. This guy has 20 credit cards and has a FICO score in the 700’s.
No Action is Needed
Many consumers don’t know that all derogatory marks will eventually fall off your credit report. Everything on your report that is holding your score down will disappear, eventually.
The downside is that it may take 7-10 years for this to occur. Yes, even bankruptcies, foreclosures, and credit card charge-offs will disappear eventually.
Remember though, you still will owe the parties any money, even if it doesn’t show on your credit report.
When negative items fall off your report, your score should go up.
Contact the Collection Agencies
So you decided to address some derogatory items and want to pay them off. Maybe you didn’t pay your phone bill or you broke your apartment lease. If the account is being held by a collections agency, you will want to contact them by phone.
They bought your debt for pennies on the dollar and you can assume that they will accept much less than what you originally owed.
Just make sure that they will remove the account from your credit report. Get this in writing before you pay them!
? Did you know that over time, negative items on your report won’t impact your score as harshly as it once did.
If you have been making on-time monthly payments for your phone bill and credit card accounts, this can offset any bad credit history.
Address the Items on Your Credit Report that Really Matter
If we knew the largest components that make up a credit score, we could spend our time addressing those and not worry about the rest.
Well look no further, according to <a href="https://www.cnbc.com/select/this-is-the-most-important-factor-that-determines-your-credit-score/">this author</a>, these pieces comprise the largest part of a FICO score. We suggest you target these items initially.
Payment history
Your payment history is going to account for 35% of your credit score. If you make on-time payments on all of your loans and credit cards, this will have a huge weight in your credit score. And this makes sense. New creditors want you to repay your loans on time
Amount You Owe
As discussed earlier, it’s the amount of money you currently owe, compared to your total credit limit that matters. This makes up 30% of your credit score.
If you have an American Express card with a balance of $1500 and a limit of $5000; and another card with a balance of $500 and a limit of $3000; we can start calculating percentages.
Your total credit card balance is $2000, and your total available credit is $8000.
We then divide 2000/8000 and come up with .25. You would, in fact, be using 25% of your total utilization capacity.
The lower the better, but you don’t want it to be too low. The author above recommends a minimum of 10%.
Utilizing the two largest factors, this comprises 65% of your total credit score.
Take-aways
The only reason you need a high credit score is when you need to secure a loan. This helps you qualify for the lowest credit card rates and lowest interest rates on mortgage loans.
Make your payment on-time. This is one of the biggest factors in your overall credit score
Don’t max out your credit cards. This will negatively impact your scores. Pay off as much of your credit card as possible by paying more than just the minimum monthly payment.
Derogatory marks on your credit report will eventually disappear. Also, negative marks do not impact your score as greatly as they age.
2020-05-30T22:03:00-07:002023-11-29T14:23:00-07:00Danny Margagliano