Real Estate Information Archive

It’s not rare that a person may feel they can sell their home on their own, which is called For Sale By Owner (FSBO). Many people believe that by not using a real estate agent that they’ll save money and have more control over the process.  But most of the time, they end up having more stress than those who hire an agent. What are some of the issues that people face when they sell their house on their own?

Setting the Right Price

People who chose not to use a real estate agent have a tough time setting the right price. They are emotionally attached to the house, and it’s not easy to separate those feelings.  So in many cases they set the price too high, which will drive away buyers and prolong the process.

Paperwork

Home sellers are never really prepared for all the paperwork it takes to complete a sale. In addition, some of the paperwork is hard to understand.  This is why real estate agents spend so much time training, so that they can comprehend all of that legal speak. And an agent will also handle all of the paperwork, so you do have to. This alone can be convincing enough to hire a real estate professional.

Selling in Your Desired Timeframe

Home sellers don’t always realize how long the process takes. You need to get your home ready to sell, show it to buyers, close the sale, and more. All of this can add up, making the process take longer than people expect. As such, many will set unrealistic deadlines and be disappointed and frustrated when they fall short.

Getting Your Home Ready to Sell

Most homes need to be prepared to sell.  There’s almost always some repairs to be made, along with cleaning and staging. This is a crucial part of the process that many homeowners overlook when they sell their own home. Home buyers typically will look at a home online and judge the home by the photos. If they don’t see a clean home, they will just go to the next listing.

Why go through all of these stressful obstacles on your own? Hiring an experienced agent will alleviate a great deal of stress and confusion during the selling process, as well as help you make more money in the end.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

If you have some extra cash on hand, what do you do with it? If you plan to make that money work for you, perhaps you've thought about investing or paying off your mortgage.

Which choice yeilds the best return? This has certainly been a heated debate, with passionate responses on both sides of the question.  Either way, it’s a decision that can have serious consequences financially.

Which way should you go?

You need to consider these variables:

• Your home’s current market value
• Your mortgage interest rate
• Home appreciation in your area
• Your income tax rate
• Expectations for inflation
• An assumed rate of investment return

Justin Goodbread, a certified financial planner, analyzed these variables, using national averages for these parameters to compare various scenarios between investing and paying off a mortgage.

As it turned out, the math favored investing. But the math isn’t the only thing you should consider. It also depends on your own situation. Goodbread offered two rules of thumb to decide:

You should pay off your mortgage early if you’re a conservative investor, in a low tax bracket with a high mortgage interest rate.

And you should invest if you’re a more aggressive investor, in a high tax bracket with a low, 30-year, fixed mortgage interest rate, and if you’re younger than 50.

What are some reasons to keep your mortgage?

• Maintaining liquidity.  Paying off a mortgage will leave you without a cash cushion in an emergency.
• Your home’s value isn’t affected by a mortgage.  The value of your home will increase over time. But this will not affect how much you owe on your mortgage.
• Mortgage interest is inexpensive. Your mortgage is secured by your home’s value, and this keeps interest rates much cheaper than credit cards and personal loans. Even better, the interest is tax deductible.

Of course, in the end, the choice of investing vs paying off your mortgage is one you should make carefully. Join us every week for more real estate advice and local Albuquerque articles.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Owning a home in Albuquerque can bring some anxiety when it comes to dealing with unexpected repairs. According to a recent report, most homeowners say that home repairs and maintenance top the list of worries when it comes to owning a home.

According to Holden Lewis, NerdWallet’s home analyst, “When you buy a home, you take a leap into the unknown. So it’s no wonder that homeowners say they’re anxious in our survey. Don’t spend your last dime on the down payment. Instead, set aside a few thousand dollars to take care of unexpected maintenance and repairs. Having an emergency stash will help you sleep better.”

You certainly can't plan for every contingency, but there are a few ways to reduce the stress of unexpected home repairs. Here's a few tips that can help.

Regular Maintenance

One sure way to reduce the chances of major repairs in the future is regular maintenance.  If you fix small problems right away, like a leaky pipe, it can prevent having to make more major repairs that could cost thousands of dollars. An annual maintenance budget that is around 2% of your home's value is an ideal goal. This budget could cover small repairs and regular servicing of HVAC and cleaning gutters and your chimney.  Basically, anything you can do to prevent accidents and problems is money well spent.

Save For Emergencies

Your parents probably taught you to save for a rainy day, and when it comes to owning a home, there can be some very raining days. Saving for unexpected damage from weather or other emergency repairs can keep you from going into further debt.  If you don't have an emergency fund, then you can try to build one by setting attainable goals. In the end, your goal should be to have several months worth of living expenses set aside.

Plan For the Worst

After buying a home, you may later realize you have larger problems to deal with, such as bad roofing or a sinking foundation. These could end up costing more than you have saved.  Before this happens, you may want to look into financing options for big ticket repairs.  This way you wan't be scrambling to finance anything beyond your savings.

Lewis says, “If savings and insurance don’t cover these high costs, your best bet might be to finance the repairs with a home equity line of credit, or HELOC. A HELOC acts like a credit card and is backed by your home’s equity. We’ve found that many homeowners get HELOCs just so they’ll have a readily available source of money in case of emergency.”

Unexpected home repairs don't need to keep you up at night. Make sure to plan now to save yourself heartache in the future.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Are you thinking about adding a deck to your home in Albuquerque?  It’s certainly a tempting idea, as it’s the ideal way to enjoy summer with family BBQs and enjoying the beauty of the Southwest scenery. The big question though is how much you want to spend and what type of deck is right for your home. On average, a wood deck can cost around $10,000, while a composite deck can set you back almost $18,000, according to Remodeling magazine’s “2018 Cost vs. Value Report.” The report was based on a national review of costs based on a 16x20 deck with pressure-treated joists, a built-in bench and planter.

When it comes down to it, the cost for your deck will vary based on size, style, and the contractor.  But you can get an idea of costs in advance so that you can keep the total price under control.

How much does it cost to build a deck?

There are quite a few factors that affect how much a deck will cost. The biggest factor will end up being professional installation. Getting a bead on this cost alone will help you avoid unpleasant surprises. According to Andrew Wormer, editor of Professional Deck Builder magazine: “For every dollar spent on materials and supplies, expect to spend another dollar to have it installed.” Some contractors will quote per square foot, and this usually covers both labor and materials.

Planning Your Deck Installation

Set Limits: Keep in mind that this is a permanent addition just like any room. You’ll need to follow local building and zoning codes for Albuquerque which may affect the size of the project. Also think about upkeep. It may cost more up front to use synthetic materials, but they don’t need as much maintenance, which will cost less in the long run.

Budget: Just like when buying a home, it helps to have a list of “wants” and “must haves.” And of course the most important question is how much you’re willing to spend on the entire project. Think about the size of your home as well. The deck should be proportional to the size of your home.  A small deck on a large home might look a bit silly. And if your home is smaller, an elaborate deck might not make sense either. Insurance costs may be a consideration, so check with your homeowner’s insurance to make sure.

Find the Right Contractor:  Finding the right contractor will take some research, but it will definitely be worth it. To get a fair price, try to get quotes from at least 3 contractors.  If you can find reviews of these contractors, that will help as well. Ask potential contractors for photos of past projects.  You should also check with your local building department to make sure they are licensed, bonded, and insured.

Reducing Costs

You can reduce costs in a number of ways. Staying away from fancy design features, along with reducing the overall size can help reduce costs. Selecting the right wood is also important. Untreated decks cost less to install, but more to maintain. The reverse is true for composite decks. Also, if you build during the fall or winter, it could save you more, as contractors have fewer jobs and may be inclined to reduce their costs.

Building a deck is a great way to increase the value of your home, both in how you enjoy living in it now and in the future when you decide to sell it.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

If you plan to buy or sell a home in Albuquerque, the home inspection is a crucial part of the process. A good home inspection will assess the condition of the home, letting you know what problems need to be addressed before the home is sold, and what potential issues may arise later on down the road.

What are some mistakes you can avoid when getting a home inspection?

1. Not researching the inspector

Many people are inclined to hire the first inspector that’s been recommended to them, failing to check the inspector’s background and record.  Remember that the inspection is only as good as the inspector.

Here are some important questions to ask a potential inspector:

• How long have you been in business?
• How many home inspections have you done?
• What are your qualifications, certifications and training?
• What was your job before you were a home inspector? (Preferably, you want someone who was a contractor or builder.)

You should also be sure that the home inspector receives ongoing training and is up to date. They need to be able to explain the home’s good and bad points so that you can make the best decisions possible.

1. Not attending the inspection

There’s nothing saying you must attend the inspection, but it’s an ideal way to understand any issues the inspector finds.  Just reading the report isn’t enough sometimes.  Seeing the issues as they’re revealed and having them explained will give you much more valuable information.  Even though an inspection may take a few hours, it’s well worth your time as it could save you a great deal of money.

1. Not getting a presale inspection

If you’re the seller, you may be tempted to leave the inspection to the buyer. That’s not the wisest course. If the buyer’s inspection reveals repairs that are needed to make the sale, you won’t have as much time to make the needed repairs. But if you have your home inspected before you put it on the market, you’ll have more time and will have more control over the costs. And make sure to get your home inspected long before you try to sell it.

A good home inspection is crucial to buying a home, so make sure you find the best inspector you can.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home for the first time can be an exciting time in your life. However, there are misconceptions floating around that may give you cause for concern. Maybe you’ve heard things from family or friends that could deter you from buying your first home. But what was true about home buying years ago may not be the case today.  What are some of the misconceptions of buying a home?

1. You need a 20% down payment to get a mortgage.

A few decades ago this was true. In fact, you needed almost perfect credit and had to pay 20% - 50% down for a mortgage.  To make it possible for more people to own a home, the government created the Federal Housing Administration and began offering “FHA Loans”. The FHA will now back a loan from a home buyer who only has a credit score of 500 and a 10% down payment. And for those with a better credit score of than 580, you only need 3.5% for a down payment! This is a big reason why more people can afford to buy a home today.

1. You Can’t Qualify For a Mortgage With Student Loans

Having student debt doesn’t mean you can’t get a mortgage. Lenders look at your total debt-to-income ratio to see how much you make each month compared to all of your debt, no matter who you owe. So if you’re handling all of your debt responsibly and can still afford the payments, that’s what matters.

1. You can save money by not using a real estate agent.

More people use a real estate agent today than ever before. You may think that agents are just out for the money. Sure they get paid for their services with a 3% commission.  But you don’t pay that fee as a home buyer.  Instead that fee is part of the selling price. Don’t be lured into thinking that you’ll save money by not using an agent. And don’t forget that they will also take care of all the paperwork, appraisals, inspections, and other matters that are part of the process. Imagine having to do all that by yourself. Let a professional with years of experience handle the process.

1. It’s cheaper to buy a home that needs a lot of renovating.

Perhaps you’ve been inspired by TV shows that make it look like fixing up a house is the way to go. They make it almost look easy, but don’t be fooled. All of these repairs take time and money and in the end you may end up getting tired of all the renovations. So if you need to renovate the whole house to make it livable, it may not be the best choice.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

It may seem to be a bit predictable that a real estate agent would advise you not to sell your house on your own, or FSBO (For Sale by Owner). But it really is in your best interest when selling a home to consider why using an agent to sell your home really will get you more money and sell your home faster.

Selling your home will no doubt be the largest transaction in your life. It's one thing to sell something large like a car on Craigslist or Facebook for a few thousand dollars.  But we're talking about hundreds of thousands of dollars here, possibly millions. Plus there's far more than just exchanging money to consider. There's legal considerations, mortgages, mounds of paperwork, and more than a few people to negotiate with. Also, do you know how much your home is really worth in the market, especially here in the Lowcountry?

The thing to remember is that real estate agents have many years of experience and training in selling homes.  Sellers usually do not have this experience. Your ability to negotiate will determine if you get the best deal for you and your family.

Here is a list of some of the people you must be prepared to negotiate if you decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the CO permits mentioned above
• The buyer’s buyer in case there are challenges with the house your buyer is selling
• Your bank in the case of a short sale

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.