Category: Real Estate

Don’t wait, buy a house within your budget | Business Standard

Advice for ones sitting on the fence perpetually: It makes sense to buy your first property even if it isn’t in the perfect location or of the right size.

Banker couple Ashesh Bharti (31) and his wife Priyanka (29) have been going through the same dilemma for some time. While Priyanka wants to buy the house right away, Ashesh feels it’s better to save and buy one that would meet all their needs. “If we stretch ourselves, we can afford a house that costs Rs 1.4 crore now. The best we can get, in this budget is a two-bedroom property in the distant suburbs of Mumbai. The way our careers have progressed, in the next 7-10 years we should be able to buy a three-bedroom flat in a better location,” says Ashesh. Priyanka, on the other hand, believes they should purchase one now and upgrade to a bigger property by selling this one at a later date.

Experts believe in most cases buying a house one can afford at present can work out to be a better option. Later, the buyer can sell it to buy a bigger house or one at a preferred locality.

If you look at the table compiled by EY, when there is a dilemma such as this, there is a choice. A person with a budget of Rs 1 crore but wanting to purchase a property worth Rs 2 crore can save aggressively for the bigger property or can buy the smaller one now and continue saving for the bigger one. The advantage: The first property, while he is saving for the second, will provide him capital appreciation and give tax benefits.

Problems of buying late: For one, steady growth in career and salaries has to be taken into consideration. And, over longer periods like 7-10 years, there are bound to be ups and downs, much like what happened to employees after the 2008 stock market crash or in situations like Brexit.

If the annual salary of a person is Rs 12 lakh and grows at 10 per cent annually, he would be earning around Rs 31 lakh after a decade. This also means the person’s loan eligibility will grow. At an income of Rs 12 lakh a year, he will be eligible for a Rs 55.5 lakh loan for 20 years at an interest rate of 10.4 per cent. A decade later, at an income of Rs 31 lakh, he can get Rs 1.43 crore loan. If the partner is also working, it would boost the eligibility. “Usually, people tend to ignore their growth potential and rush to buy a house. Between the age of 25 and 40, an individual’s career progresses rapidly,” says Amit Oberoi, national director, knowledge systems, Colliers India.

Real estate experts also say a majority of the buyers don’t buy a second property, or are unable to, as other financial priorities take over later in life like children’s education, marriage, retirement planning, etc.

On the flip side, postponing your decision could also mean you might end up paying rent, which could have been used to pay the equated monthly instalment (EMI) on the loan. “While taking the decision between buying now and later, one must not only calculate the rent but add the maintenance, taxes and brokerage they have to pay,” says Oberoi.

Another thing that could happen is that property prices rise faster than your salary growth. In such a case, the house you aspire for might never fit into your budget.

Buy now: “Purchasing a property in youth means you have created an asset that will appreciate with time,” says Shveta Jain, managing director, residential services, Cushman & Wakefield.

So, while you will grow in your career, the value of the property you have purchased will also grow. If an individual decides to change the house, he can sell the existing one and that will fetch him significant value.

The income tax benefits are also conducive for such transactions. If a person sells a house after holding it for three years, he doesn’t need to pay any capital gains tax if the money is reinvested in a property. The tax benefit, coupled with savings in rent and appreciation in the property value, makes it more attractive to buy a house in the budget and then upgrade to a better one.

In addition, buyers also get income tax deductions on house purchase. Under Section 80C, an individual can gets Rs 1.5 lakh deduction on the principal amount of the housing loan. For a couple, this will be Rs 3 lakh. Then, there’s deduction of Rs 2 lakh on the interest paid every year under, Section 24, if the house is self-occupied. For a couple, this means a deduction of Rs 4 lakh. If it’s given on rent, the entire interest income can be claimed for deduction.

Why Billionaire Mark Zuckerberg Has A Mortgage | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

The Mega-Rich Have Mortgages, Too

Facebook founder Mark Zuckerberg is worth $53 billion, according to Forbes.

He did not pay cash for his home.

Zuckerberg and other mega-rich Americans don’t need mortgages to buy homes — so why do they have them?

Home loans come with advantages that can benefit rich people, poor people, and the rest in between.

These are the proven advantages of carrying a mortgage, even if you don’t need one.

Click to see today’s rates (Aug 22nd, 2016)

Cheap Money

Economists say that every investment or purchase you make comes with an opportunity cost.

Using your savings to buy a house — or making a large downpayment — means you can’t also use it to invest in stocks, buy boats or take trips. Wealthy people tend not to keep a lot of money in their checking accounts, earning virtually nothing.

They didn’t get rich by passing up opportunities to make their money work for them.

If long-term investing in the stock market nets an average of over 11 percent per year (and it does, according to MarketWatch) why would you take money out of it to buy a house.

Current mortgage rates are under four percent. You could pocket the difference.

Click to see today’s rates (Aug 22nd, 2016)

Opportunities For Normal People

That’s where mortgages come in. By borrowing instead of paying cash, you can have your house and maintain control over your money as well.

For those who are not ultra-wealthy, the mortgage advantage remains. The typical homeowner may not have the same investment opportunities as Bill Gates (net worth: $78 billion). But opportunity cost applies to anyone with debt, too.

As of this writing, the average credit card interest rate in the U.S. is over 15 percent. So why would you use your cash to buy a home or pre-pay your mortgage balance if you’ve got credit card or other expensive debt? Use your cheap mortgage to buy your house and pay off debt with your cash.

The same logic applies when determining how much to put down on your home purchase.

It might make more sense to go with an 80/10/10 mortgage, putting ten percent downpayment and opening a line of credit for another ten percent, instead of coming up with 20% in cash.

In fact, this is a classic example of when making the “full” 20% downpayment is not in your best interests.

Assume a $100,000 home price, and $10,000 in credit card debt.

You could open a second mortgage at the following terms to buy the home at the following terms.

• 20-year payoff period
• 5% interest
• $66 per month
• $6,000 in interest paid

If you opt to make a 20% downpayment, here’s what you would pay for the credit card debt.

• 28-year payoff period
• 15% interest
• $225 per month
• $12,000 in interest paid

You don’t have to make millions to save big with a mortgage.

Click to see today’s rates (Aug 22nd, 2016)

Regular Income Earners Get Access To More Benefits

If you make a modest income, you have more opportunities to save money with a mortgage.

Homeowners with incomes less than $250,000 could be eligible for the mortgage interest deduction.

This benefit allows many homeowners to reduce their taxable income by the amount paid in interest each year. Check with your tax advisor before filing, as this is not meant to be tax advice, but that could make your “real” mortgage payment even more affordable.

The typical homeowner can learn something else from wealthy mortgage borrowers: the benefits of an adjustable rate mortgage (ARM). Mr. Zuckerberg refinanced his mortgage a few years ago, trading in a 1.75 percent adjustable rate mortgage for a 1.0 percent ARM.

ARMs allow you to pay a lower interest rate, and when the sums involved are huge, that lower rate translates into big savings.

For example, a $2 million 3-year ARM at 2.375 percent saves the buyer $1,000 per month over a 30-year-fixed loan at 3.30 percent. During the first three years of the loan, that’s nearly forty thousand dollars.

So should you jump into an ARM? Some home buyers should seriously consider it.

But, the difference between a regular earner and the ultra-wealthy is this: if rates rise, they can pull money from another investment and retire an expensive home loan.

Click to see today’s rates (Aug 22nd, 2016)

What To Learn From Mark Zuckerberg

You don’t have to be rich to make smart mortgage decisions. Here’s what every borrower should consider when they finance a home.

Compare your costs

Measure the cost of mortgage financing against other uses for your money.

Don’t carry expensive debt or pull out of an excellent investment opportunity to make a big downpayment, or to pay off a home. Use low mortgage rates to free up money.

Consider tax benefits

Mortgage interest is typically the biggest deduction homeowners take each year. According to online calculators, a homeowner with a $250,000 mortgage at four percent interest can save $45,000 in taxes over the life of the loan. Check with your tax advisor before filing, but carrying a mortgage could lead to big tax savings.

Prepare your exit

Have an exit strategy if you go for a riskier loan. For example, a 5-year ARM might make perfect sense if you plan to sell or refinance in five or six years.

Remove emotion from the equation

Emotion has no place in borrowing decisions. They are just numbers — evaluate them or have an accountant help you, and then choose your loan.

The rich consider mortgages just another part of their investment portfolio — a way to make or keep more money. If you want a bigger balance in your own bank account, take a cue from these savvy investors.

What Are Today’s Mortgage Rates?

Rates are low, making it a good time to take on a mortgage, even if you don’t absolutely need one.

Tips for sellers while home is on the market

Here are some tips every home seller should know while your home is on the market:

Leave for showings

Always leave when there is a showing of your home. When looking at a home, buyers don’t feel comfortable when the owner is home and watching their every move. It makes it awkward at times and the buyer will have a harder time picturing themselves and their family there for years to come.

Lay out important documents

Buyers have many questions when purchasing a home. It can be helpful to leave important documentation for them to look at. These items may be a home inspection, a recent appraisal, monthly bills such as PG&E, garbage, water, etc. Also, any proof of major repairs or remodels done.

Take your pets

While you love your pet and I am sure the buyers will, too, it’s a good idea to take the dog with you. The potential buyer could have an allergy and most don’t want to have to worry about a run-in with an animal they don’t know. This could be a real liability issue as well. Dogs can be territorial, so it’s better for all to take the dog for a car ride or a walk while someone views your home.

 

Keep things tidy

This is the time you want to make sure the home stays clean and tidy. It doesn’t need to show like a model home, but keeping clutter to a minimum and the home smelling fresh will go a long way with buyers.

Don’t be greedy

There’s no doubt we’ve been in a seller’s market for some time, however unwillingness to negotiate a possible sale could lead in a bad direction. Focusing on that bottom line is always important but too much greed can lead to disaster and land you with a home sitting on the market for much longer than you anticipated.

Listen to the professionals

If your Realtor has some suggestions for improvements that may help sell the home faster, take them to heart but don’t take them personally. Keep emotions out and listen to what your Realtor has to offer. Also, oftentimes your Realtor will follow up with showings for any type of feedback. As they get it, they will share with you. This is meant to help you in your selling process and make for a successful close of escrow – the end result and goal for all parties involved.

Yun: Home Ownership Still Matters | Realtor Magazine

The home ownership rate may now be at a 50-year low, but that doesn’t mean the dream of home ownership is dying, says Lawrence Yun, NAR’s chief economist, in his latest column for Forbes.

In the second quarter of 2016, the home ownership rate dropped to 63.1 percent, but Yun notes it’s clear that home ownership still matters to Americans and to the economy.

According to Yun, the drop in the home ownership rate does not mean that Americans aren’t interested in buying a house. Indeed, plenty of recent surveys show overwhelmingly that Americans have a strong desire for home ownership. NAR’s Housing Opportunity and Market Experience survey, for example, revealed that 87 percent of consumers believe home ownership is part of their American Dream. In a recent Ipsos survey, 86 percent of consumers said home ownership is their dream.

Many Americans say they would like to own, but the timing isn’t right yet. They may not have enough saved for a down payment or some say they can’t qualify for the current tight underwriting standards that is preventing them from getting a loan to buy.

Over the long-haul, home ownership tends to provide wealth accumulation for owners. A typical home owner’s net worth was $195,400 in 2013 compared to a renter’s net worth of $5,400, according to the Federal Reserve’s Survey of Consumer Finances. Since 2013, home prices have risen by 17 percent too, giving home owners more wealth.

What’s more, home ownership is good for the economy, says Yun. Most home owners typically sell their home and move on to a new home in a 7- to 10-year cycle. That cycle can contribute to economic growth and job creation because each home sale tends to have a multiplier effect in boosting home remodeling, furniture businesses, mortgage origination, moving companies, even restaurants, etc. According to NAR calculations, one new job is supported from every two home sales.

“There are multiple positive benefits of ownership to individuals and society,” Yun writes. “However, it has to be sustainable. Home owners must understand the responsibility of ownership and take on a mortgage that is manageable and not overstretch their budget. At the same time, there should not be any unnecessary barriers to ownership. Widen mortgage access to those home owners who are willing to stay within budget. Assure an adequate supply of homes at all price points to assure the future possibility of steadily moving up in society.”

Mortgage Rates Move Even Lower This Week | Realtor Magazine

Fixed-rate mortgages dropped slightly this week compared to the previous week, and continue to hover near all-time lows.

“The 30-year fixed-rate mortgage fell 2 basis points to 3.43 percent this week, erasing last week’s uptick,” says Sean Becketti, Freddie Mac’s chief economist. “For eight consecutive weeks mortgage rates have ranged between 3.41 and 3.48 percent. Inflation is not adding any upward pressure on interest rates as the Bureau of Labor Statistics reported that the Consumer Price Index was unchanged in July.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 18:

• 30-year fixed-rate mortgages: averaged 3.43 percent, with an average 0.5 point, dropping from last week’s 3.45 percent average. Last year at this time, 30-year rates averaged 3.93 percent.
• 15-year fixed-rate mortgages: averaged 2.74 percent, with an average 0.5 point, dropping from last week’s 2.76 percent average. A year ago, 15-year rates averaged 3.15 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.76 percent, with an average 0.4 point, rising from last week’s 2.74 percent average. A year ago, 5-year ARMs averaged 2.94 percent.

How to Prevent and Eliminate Mold in Your Bathroom | Home Matters AHS

Where there’s moisture and heat, mold is sure to pop up. For your convenience, we’ve gathered tips from the mold removal experts at ServiceMaster Clean and Restore to help you keep your bathroom mold-free.

Your bathroom is often the perfect environment for mold to thrive. That’s because it has all the qualities mold loves most: it’s often damp, dark and isolated. Just bathing or showering leaves enough moisture to encourage mold to settle in and make a home of its own.

To Eliminate Mold In Your Bathroom, You First Have to Reduce Excess Moisture

• Ensure you have proper ventilation by opening a window or by running your exhaust fan for 30 minutes after you shower or bathe. 
• Use your air conditioner or dehumidifier to keep your household relative humidity levels below 50 percent.
• Fix any leaking toilets, sinks or pipes, which can cause excess moisture.
• Make sure your moisture problem isn’t coming from a leaky roof or overflowing gutters.
• Eliminate damp hiding places for mold like wallpaper, fabric curtains, even bathroom rugs. If you’re going to have rugs and store towels in the open in your bathroom, be sure to wash them often.
• Never store shampoo bottles, shower gels, wash cloths, loofahs or children’s bath toys in the shower. Those are “mold magnets.” 

 

More Handy Tips:

• If you don’t have shower doors, be sure to use a mold and mildew resistant curtain.
• Keep it light in the bathroom. Since mold likes darkness you can discourage it by opening your bathroom shades, leaving your lights on (you can get a timer) or even installing a sky light. 
• Make bathroom cleaning part of your daily routine. Spray your shower and tub with a commercial shower spray that contains bleach or another mold/mildew fighting ingredient. If you have marble, always read the label first to be sure the spray is safe to use.

How to Get Rid Of Mold

It is impossible to get rid of all mold and spores indoors. The truth is, no matter what you do, some mold spores will still be floating through the air and in house dust. But the mold spores will not grow if moisture is not present. So unless you identify what’s causing the mold and make your bathroom less friendly for mold, getting rid of it will only be a short-term solution for a recurring problem. Truly, what you need to do is kill it and then remove it. 

For small, contained areas of mold in your bathroom, there are variety of mold-killing products you can use. This includes bleach, vinegar, hydrogen peroxide, plus a host of commercially produced products. Scrub the affected areas, following the package instructions and dry the surfaces completely. Then, strip away and replace any caulking or sealant that has mold growth.

 A Couple Words Of Caution 

• If you have health concerns, consult a health professional before starting your cleanup. 
• Never mix cleaning products. This can cause reactions that lead to hazardous fumes.
• Make sure the bathroom is well-ventilated while you clean either by running the exhaust fan or opening the window(s) and door. 
• Avoid touching the mold with your bare hands. Always wear protective gloves that extend to the middle of the forearm. Choose gloves that are made of natural rubber, neoprene, nitrile, polyurethane or PVC.
• Depending on how much mold you have and the kind of disinfectant you are using, you may need to wear an N-95 respirator, available in most hardware stores.
• Wear goggles. Goggles that do not have ventilation holes are recommended. 

When to Call In a Professional

• When your cleaning efforts are not effective at eliminating the problem and the mold is affecting your health
• If you have an area of mold that is larger than 10 square feet
• When the mold has seeped into walls and insulation
• If you suspect that the heating/ventilation/air conditioning (HVAC) system may be contaminated with mold
• If the water and/or mold damage was caused by sewage or other contaminated water. 

Follow the tips above, and chances are you’ll be able to keep moisture at bay, kill any existing mold and stop it from returning. Best of all, you’ll save time, money and protect your long-term health. 

How Much the Home-Buying Process Really Costs | GOBankingRates

Saving for a down payment on a home is a huge step in the home-buying process. A sizable down payment can help with mortgage prequalification or mortgage approval — however, it’s not the only cost associated with buying a home. Many people who are buying a house are surprised to find out that there’s a whole world of fees waiting for them during the process of securing a loan and a deal. The total cost of ownership can be a few thousand or more dollars than prospective buyers might anticipate.

A common question is: How much are closing costs and other fees? From inspections to real estate agent fees, there are a lot of little fees that add up to a lot when you buy a house, so it’s best to be prepared ahead of time. Although most home-buying costs — aside from loan origination fees — can’t be negotiated, some first-time home buyers and seasoned professionals alike will try to get sellers to pay for some of them.

So that you can better figure out your financial planning for buying a home, review the following list of approximate typical costs associated with buying a home. With this list as a starting point, you’ll be able to get a more accurate estimate for how much money you’ll need to close.

 

1. Home Inspection: $300 to $500

A home inspection is a vital part in determining the condition of the house; with an inspection you’ll find out whether the home meets state requirements and get a better idea of how much you’re willing to offer. Buyers should ask to see a list of items covered in the house inspection costs before it takes place. This allows time to request any additional areas the home buyers would like inspected.

2. Home Appraisal: $300

Unless you’re paying cash, almost all lenders will require home appraisals. A home appraisal is an educated guess on what the prospective property is worth, which gives the lender an idea of the collateral value. Usually the seller pays for the home appraisal. In the event the buyer agrees to cover the cost, expect to pay around $300.

 

3. Flood Determination: $20

Lenders will require proof of whether or not the property is located in a special flood hazard area. If the property is determined to be in a flood hazard area, then the lender is required by law to require flood insurance on the property.

4. Survey: $335 to $650

The survey fee is paid to a professional surveyor who verifies property boundaries. Boundary verification is important as any additions to the home — including fences, driveways, sidewalks or garages that infringe on a neighbor’s property — can be removed without warning. This kind of information can save you a lot of money down the road.

5. Escrow: Cost Contingent on Property and Mortgage

It’s not uncommon to be asked to put down one-sixth — two months’ worth — of property tax and mortgage insurance payments for the year before your loan closes. The lender provides a projection of the annual expenses that will be paid from your escrow account — usually taxes and insurance. Before your loan closes, the lender will estimate the total annual expenses that need to be paid from the escrow account.

 

6. Lender’s Title Insurance: Cost Varies

Lender’s title insurance is generally required to secure a loan and is designed to protect your lender from problems with the title. This insurance doesn’t protect your equity; it only covers claims that are directly related to the lender’s loan.

The approximate cost of lender’s title insurance varies by state and provider; it’s generally based on the loan amount, transaction type and coverage type, among other variables.

7. Title Company Title Search: Cost Varies

A title search looks into the background of a property’s title — that is, the document that shows proof of ownership — to determine whether or not it’s free and clear of disputes. Some things a search will look for are delinquent taxes, unpaid liens, undisclosed heirs and other disputes. The title is also important if you’re thinking of selling a house later; you want to ensure the title is clear so it doesn’t affect future sales.

8. Loan Origination Fees: 0.5 to 1 Percent of the Loan Amount

The origination fee is charged by the lender for processing your loan when you buy a home. Generally, loan origination fees are how lenders make money. The fees can include administrative services like completing paperwork, underwriting and processing your loan. Because this fee amount is a percentage based on the loan amount, often borrowers who are taking out bigger loans can negotiate a lower origination fee. The reason for this is that regardless of the loan amount, lenders are still doing the same amount of work.

 

9. Homeowners Insurance: $300 or More

Homeowners insurance policies can vary dramatically depending on the type of coverage you choose. But basic coverage will cover property and liability due to things like smoke, theft, falling objects, explosions and fire or lighting. Most homeowners insurance won’t include damage that results from natural disasters like hurricanes or flooding. However, it’s possible to add that optional coverage to your policy. Your first year’s insurance is often paid at closing.

10. Moving Costs: $700

Packing up an entire household and moving it over to a different location can be expensive. On average, Americans paid about $707 in moving costs, according to HomeAdvisor.com. The price goes up — or down — depending on how much or how little help you require. For people who want full-service movers, the price spikes upward of $1,000, whereas others can get away with spending just a couple hundred bucks.

The Total Cost of Buying a House

The answer the big question, “How much money do I need to buy a house?” is that it depends. There’s no clear-cut number because so many variables are involved — the cost and size of the home, where you live and to where you’re moving, whether you can negotiate any costs and so on. However, this list serves as a rough guide to show home buyers what costs they can expect, in addition to their down payment. On average, these fees can range from $2,000 to $5,000.

Common Myths about Your Air Conditioner | Home Matters blog | ahs.com

There are so many tips out there to help keep your home cool. However, much of the advice you hear may just be myths. Let’s tackle the most common myths and learn the reality on how to best run your air conditioner.

 

Here are some of the most common air conditioning myths paired with the facts you need to keep cool and on-budget this summer.

Myth: Using an air conditioner will give you a cold.
Reality: Completely untrue, according to the AARP. While becoming chilled may make you more vulnerable to illness, the common cold is caused by a virus, not the temperature. Go ahead, turn on the AC—but keep your home clean and wash your hands often to keep those colds away.

Myth: It’s a waste of time and money to have your air conditioner serviced.
Reality: False. AC units need to breathe. Regular cleaning can keep your unit running smoothly and efficiently. It also provides an opportunity to catch problems that might have developed over the winter. Ignoring regular maintenance can mean an emergency call to the repair company on a weekend afternoon—with the extra charge that comes with it.

Myth: You can save money by turning the AC off or setting the thermostat extra high when you leave the house, then turning the thermostat down when you come home.
Reality: Untrue on both counts. When you come home to a hot house, the air conditioner has to work much harder to cool the place down. Turning the thermostat lower won’t help—most AC units only run at one speed, so a lower setting simply forces the machine to run longer.

Myth: It’s cheaper to leave the thermostat at the same temperature all day, even when you go to work.
Reality: Not true. Using a programmable thermostat can let the house warm up while you’re gone, then start cooling things down before you get home. This allows your unit to take a break when it doesn’t need to use energy.

Myth: You’ll be most comfortable if you just get the biggest air conditioner you can afford. After all, it’s just a big refrigerator, right?
Reality: Not right at all, according to the Arkansas Energy Office. Air conditioners don’t just cool air; they dehumidify it. Otherwise, your home would be cool and clammy. Size does matter, but it isn’t just a matter of getting a big machine. A properly sized AC unit is one that is chosen to fit your home. This includes factors such as insulation, windows, air leakage, roof characteristics and which way the windows face. Air conditioners that fit the homes they serve may run a bit longer, but they also keep the occupants more comfortable and use less electricity than oversized units.

Myth: The air conditioner won’t run as much if you keep ceiling fans turned on.
Reality: Totally false. Fans don’t cool air; they just move it around. Use the ceiling fans when you’re in the room, but turn them off to save electricity when you leave.

The big truth is that best way to save money on cooling your home is to use the air conditioner sensibly. Keep the thermostat at a reasonable setting and make sure your doors and windows are free of drafts. Windows are great solar collectors; use window coverings to keep the sun from heating up your room. Use a programmable thermostat or simply raise the temperature a few degrees when you leave.

Summer electric bills are always a balancing act. Don’t let air conditioning myths tip you in the wrong direction—and don’t let the repair or replacement of your system’s component parts melt your budget, either. Learn how American Home Shield home warranty can help keep your unit and budget in check.

Neighborhood Features That Drag Down Prices | Realtor Magazine

Living near bad schools can decrease a home’s value big time. Indeed, the median home price in ZIP codes with schools that receive a one to three rating (out of possible 10) is only $155,000.

Realtor.com® analyzed home prices and appreciation rates in U.S. ZIP codes to identify possible factors that could drag down prices. Researchers compared the median home price of the ZIP with that facility with the median price for all homes in the same county.

Here are five neighborhood features that had the biggest impact on dragging down nearby home prices:

1. Bad school: -22.2%

2. Strip club: -14.7%

3. High concentration of renters: -13.8%

4. Power plant: -5.3%

5. Shooting range: -3.7 percent

Why you need a Realtor

If you are thinking about selling your home, you might wonder if you need the help of a professional Realtor. Maybe you think you can save a few dollars by doing it yourself. After all, you saved a bundle by doing your own gardening, painting and decorating. How hard can it be to sell a home?

While selling your house without the aid of a Realtor may sound like a good idea, in the long run, it might wind up costing you a great deal of time and money. Do you understand all of the ins and outs of selling a home? Today’s real estate market is competitive and fast-paced. A professional Realtor knows what it takes to price your house to sell, market it effectively, and complete all of the steps necessary for a smooth transaction that will satisfy both you and the buyer.

A professional Realtor will be able to maximize the offers you receive on your property. How? First, they are familiar with the market conditions in your area, and they will know how to properly price your home. It is obvious why pricing your house too low is a mistake. But pricing too high can be costly, too. You don’t want your home to needlessly sit on the market for too long, and if you repeatedly lower your price, buyers may incorrectly think something is wrong with your property.

If you sell your own home, you limit the number of people who see it to those who drive by and see your sign or read any ads you place. A professional Realtor will be able to distinguish serious buyers from those who are just looking. He or she will reach out to qualified buyers they know and will bring them to see your home.

A professional Realtor will have marketing tools available to promote your property, from an array of paid advertising to posts on social media. Virtual tours, panoramic photographs and detailed listings in a variety of media are ways they can promote your home. They will help you stage your house for showing, and they will either photograph your property to show it in its best light or they will hire a professional photographer to do the job.

Contracts, inspections and other procedures can leave you exposed to liability issues. A professional Realtor knows all of the steps necessary to handle these procedures properly. An unsigned document can bring a seamless close of escrow to a grinding halt. A forgotten repair can cause strife between a seller and a buyer. Your professional Realtor will work tirelessly behind the scenes to make sure all of the details are addressed in a timely manner and that nothing is overlooked.

I sold my home in the fall, when the trees on my property were ablaze with color. My Realtor had the foresight to recommend outdoor photographs before a large rainstorm hit, blowing all of the beautiful foliage off of the trees. She knew a great photographer and quickly arranged it, resulting in gorgeous outdoor shots that otherwise would have been missed.

She also arranged for all of my home inspections to be held on the same day. While the day was hectic, it was only one day of interruption versus a seemingly endless parade of inspectors knocking on my door. A good Realtor will do things like this and they will make it seem effortless.

If you are thinking of selling your home, consider hiring a professional Realtor. He or she can help maximize the offers you receive, while ensuring that the transaction goes as smoothly as possible.