Yajnesh Rai

Tips for making your house more appealing to buyers

We all know the feeling.

You’ve decided to put your home on the market. You’ve lived in it for a while. Decorated it. Renovated it. Upgraded it. Made lots of improvements. It looks great.

And it really does look great. It reflects your lifestyle. YOUR lifestyle. And that’s just the problem when it comes to selling a home.

Sorry, but it’s not about your style. It’s all about the potential buyer for your home. They need to be able to visualize their life (and belongings) in your home. If they can, they get excited and put your home on their favorites list.

And the process of styling your home for resale is a little tricky and most homeowners have difficulties handling it. Why? Because selling a home and moving under the best of circumstances is stressful, emotional and exhausting. The need to take a critical look at how your home appears to an outsider is tough for most homeowners.

As a Southwest Florida interior designer, my Resale-Ready service helps homeowners cut through the clutter (literally) and determine what’s important to potential buyers. It helps to make the difficult decisions and allows the homeowner to make a sale and get on with their lives. My role is to showcase the home’s best features so it will sell quickly for the highest possible price.

And while we can’t magically add more square footage or an extra bedroom or bathroom, what we can do is this:  Make your home look fresh and new to potential buyers.  We can make them visualize their furnishings and accessories in your home. We can make it look larger and more spacious.  Like a model. We can tempt buyers to put your home at the top of their list.

Let’s face it.  You look at your home every day.  A professional, fresh set of eyes and a plan can change everything.  For a potential buyer and for you to enjoy while your home is on the market.

My top tips for homeowners preparing their home to sell:

First impressions are everything 

Start with the exterior. Replace your mailbox and your house numbers.  Something pretty and fresh. Head to Lowes or Home Depot and pick up colorful annuals.  They go a long way to saying “welcome to your new home.” Pressure spray the driveway and sidewalk.  Clean out all of the grunge.  If you have pavers, give them a shiny coat of sealer. Purchase new light fixtures at the front door and garage.  These are very inexpensive and make the house look clean and cared for by the owner (you). Touch up exterior paint where needed.  If the house is in desperately in need of paint, go ahead and invest in a complete redo.  Remember:  you are competing with lots of other homes on the market. Have the windows professionally washed. Hire a lawn service to fertilize and edge.  Have them come back periodically until the home sells. Buy a new welcome mat. Purchase two large ceramic pots and fill them with flowers at the front door. Now your home says “Welcome.  Come see what is inside!” professional opinion.

Invest in a professional opinion

You are too close to your house. Have an evaluation done with designer or staging company that will prepare a list of changes that you can follow and complete yourself or hire the professional to get everything in perfect order. This is a small investment to sell your home.

It’s not about you anymore 

If buyers cannot visualize their life in your home, it’s simple. They walk. You have to show them how they will love living in your home. How? Remove all personal items. Replace with fresh flowers or books. Store excess furniture so you can open up your home. Pack up everything you can live without. Clear countertops.  Repaint accent walls in a neutral shade.

Declutter

You are going to pack up to move eventually so declutter now. Go minimalist. It may not be the way you live but it is the best way to show your house. Clean out every drawer and closet and pantry because buyers look in every single corner of your home. If your linen closet spills out into the hallway when you open it, a buyer assumes that you don’t have enough storage space. And they go on to the next house.

Create space

Envision the way the space should be used. Is your furniture smashed up along the walls? Is there a corner in your living room that would be a great placed to read? Group the furniture in ways that would make sense for the intended use. Make sure to have flow and walking areas through the room. Buyers must be able to envision themselves living in your home and the best way to do that is to show them a comfortable seating area.

Freshen it up

Have your home professionally cleaned from top to bottom until it shines. Paint window sills and baseboards. Give your bathrooms a spa look with fresh paint and new towels and rugs. Replace any mirrors and lighting that are dated. It’s a good time to switch out your switch plates for a clean look. Opt for light colors on the walls that will reflect the light.

Take a step back

When you are finished, take a long look at your home. Does the exterior say “welcome home?” Does it look like a model home with space and a comfortable seating arrangement?  Does it have a fresh, clean, decluttered look?  If the answer is yes, it’s time for the sale sign.

Help diminish stress with these home-buying tips – Alliance Review | Stark, Portage & Mahoning, OH

Buying a home is truly a fun thing to do, but it can be stressful at times. As a real estate agent myself, I have come to learn many tips to help consumers through the selling and buying process. Below is a list of tips that will help you look for your dream home.

Find a real estate agent with whom you connect. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the Realtor you chose is both highly skilled and a good fit with your personality.

Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price. And a good home won’t stay on the market long.

Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues such as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased. Choose a home first because you love it, then think about appreciation.

 

5 Top Motivators for Buying Now | Realtor Magazine

What are the main drivers in today’s home-buying decisions? Realtor.com® sought to find out in a recent survey of active house hunters taken this June and July through the BDX Home Shopper Insights Panel. According to the survey, here are the top reasons buyers identified as triggering them to start thinking about purchasing a home:

1. “I’m tired of my house.”

That was the top reason house hunters identified as wanting to move, cited by 28 percent of the panel. The average time in a home has risen since the last recession as more owners found themselves underwater and facing price declines from 2007 to 2011. “After four years of above-average price appreciation, confidence in the market has returned,” notes Jonathan Smoke, realtor.com®’s chief economist.

2. Interest rates are attractive.

Interest rates continue to be low and they were the second trigger that buyers identified among 27 percent of shoppers as why they want to act now. The average 30-year fixed-rate mortgage reached a low in January at 3.63 percent and continue to mostly average under 4 percent. Last week, Freddie Mac reported the 30-year fixed-rate mortgage averaged 3.86 percent. That’s a big discount compared to the average monthly 30-year fixed conforming rate since 1971, which was a whopping 8.39 percent. “Compared to that, interest rates will certainly remain favorable for many months ahead,” Smoke says.

3. Home prices are favorable.

In a 2012 realtor.com® survey, 47 percent of active home shoppers cited favorable home prices as the top trigger for buying. The price motivation has been decreasing, but it still remains one of the top triggers. Today, just 26 percent of home shoppers cite favorable home prices as a reason for buying. In June, the U.S. surpassed its 2006 peak as home prices zoomed to a record high – a median of $236,400, according to the National Association of REALTORS®. But on an inflation-adjusted basis, home prices today are still about 20 percent beneath the peak at the height of the housing bubble, Smoke adds.

4. “I’ve got more money to spend.”

Twenty-four percent of active home buyers say an increase in income is their primary trigger for buying a home now. Indeed, now several years post-recession, more households are financially better off. Among 25- to 34-year-olds surveyed, they cited having more money to spend as the No. 1 motivator in buying – cited by 35 percent of these “older” millennials, Smoke notes. 

5. A change in family circumstances.

Eighteen percent of home buyers said a change in family circumstance or composition was their main reason for buying. More people are expanding their families: Births did rise last year and are expected to grow again this year as well.

Selling your home? Price it right, and hold tight say experts | New Canaan Advertiser

Pricing your house is never easy, particularly when you put blood, sweat and tears into making it exactly what you want it to be. So when it’s time to put it on the market, the decision of where to price it can be a sensitive one. New Canaan realtors say most buyers want to price their house high and leave room for negotiation. If it sells quickly, they wonder, “Did I price it too low?” But real estate agents agree, pricing to sell is the best approach and will get you the most interest in your home. After all, isn’t the goal to sell your house?

A Delicate Balance

“Everyone wants the most money for their properties, and I want the same thing for them,” says Nicole Steel, real estate agent with Berkshire Hathaway Home Services in New Canaan. She said once she meets with clients and understands their goals and situations she recommends a very specific number. “There is an overall vibe to a house, knowing what the buyers are currently looking for, the overall condition of the home and location,” says Steel. “It all comes into play.”

“The pricing of a house is really an art,” says Rachel Walsh, a real estate agent with William Pitt Sotheby’s International Realty in New Canaan. “You have to price it competitively. You have to predict the future of where the buyer pool is going to value the house and leave room for negotiation, but you can’t work that in too much.”

No house is perfect, so expect some concessions, but take your time and don’t aim too high either, advises Walsh. “You’ll price yourself out of the market.”

“Overpriced houses sit,” said John Engel, real estate agent at Halstead Property, formerly Barbara Cleary’s Realty Guild, in New Canaan, who recommends sellers price their house below market value to get the maximum amount of interest. “Statistically, the vast majority of homes sell within 5% of their asking price.” Engel says realtors often hear sellers say people can make an offer, but buyers tend not to when the price is more than 10% away.

Pricing and the number of buyers

He cites an often-used pyramid realtors refer to in order to show sellers how much attention their house will receive when priced at, above or below market value. If their asking price is 15% above market value, they can expect that 10% of the buyer pool of that price range will look at their listing. If their asking price is 10% above market value, they can expect that 30% of the buyer pool will look at their listing. When priced at market value, about 60% will look at their listing. But if they price it about 10% below market value, sellers can expect that about 70% of the buyer pool will look at their listing, and at 15% below market value, 90% will look at their listing. [See chart.]

Engel says he advises clients to price it below market value and hold firm on their price. “Pick a price that is the absolute lowest price you will accept for the house, put it out there at that price and hold firm. “You’re saying ‘I know it’s a good deal, the market knows it’s a good deal. The realtors know it’s a good deal.’ There is no question,” says Engel.

So how do you determine what that number is? Engel says he employs a variety of approaches with his clients:

1.  Look at assessor’s data on the property.

2.  Poll other realtors who know the market. “We bring our entire office in to price the property. They write it on a slip of paper and let me know their opinion,” said Engel.

3.  Look at recently closed, comparable sales. “The fair price may not be the right price. That might put you right in the middle of 44 competitors,” says Engel.

4.  Look at active listings. The attractiveness of your listing’s price is only good as it compares to others currently on the market, says Engel.

5.  Look at the replacement value. While this is considered a less reliable measure, Engel says there are many people who look at the value based on what it would cost to knock it down and build a new one.

Maximize value

If you want to get the best price for your house, maximize value before you list it,

says Joe Scozzafava, a real estate agent with William Raveis in New Canaan, and the president-elect of the New Canaan Board of Realtors. He said while in-town properties are very desirable among New Canaan buyers today, location has little to do with value here. “I don’t think there is a location that isn’t reasonable or decent. There aren’t any bad locations here,” he said. “It depends more on whether you want to be 10 minutes from the center of town or two minutes.

What does matter is that the inside is clean, decluttered, neat and simple. “If it is very clean and has all the right features, you are going to get very close to ask if it’s priced appropriately,” Scozzafava said. “Buyers want a transitional look, neutral colors. They don’t want to see a lot of wallpaper or carpeting. They want gleaming wood floors, neutral palettes, so they can see themselves moving into it and living in it.”

Need to be nimble

What if your house doesn’t check all those boxes and doesn’t get any bites? The estimated average time a home is on the market is six months. Should you drop the price? First, consider supply and demand, price point and whether your house falls into a submarket category, which has a longer average.

“Under $2 million versus $4 million is a very different range of expectations, as well as time of the year and market conditions,” said Steel. “It’s commonly understood that most interest will be in the first few weeks. Sometimes it happens you are the only available home in the category when we are discussing listing, and then in the next two weeks, you have five competitive homes. That’s why sellers should not be stuck on a number, because the market is fluid, and you need to be nimble and know how to compete.”

Steel says she believes in price drops more for the luxury market where homes going for more than $3 million are competing with new construction. “You must offer value in this category or you will be on the market for a long time with no results. More time on the market is less money in the end.”

Submarkets are different

If your home falls into a submarket because it is an antique or contemporary, or the price point is very high or very low, it may sit on the market longer than average. Work with your realtor on pricing your home appropriately for your submarket.

If you do have to make a price cut, Engel advised, “try to resist death by 1,000 bucks.” That means, dropping your price little by little, instead of making what he calls a “meaningful reduction.”

“If you have given your house sufficient time, and the market hasn’t responded, make a meaningful cut to re-stimulate interest in the property,” said Engel. Otherwise, the only other option is to remarket the home, he said. If you have chosen a price point that is the absolute lowest price you will accept for the house, hold firm, he said. “Represent the house with different staging changes to the house, new photography, different marketing,” he said, but he warns, “Sometimes no amount of marketing is going to solve the problem of bad pricing.”

Advantage: Home Buyers? | Realtor Magazine

The residential real estate market has “clearly shifted in favor of buyers,” says Jonathan Smoke, realtor.com®’s chief economist, in his latest analysis of housing data from the first three weeks of September.

“Would-be buyers have struggled to find a home all year, but now inventory is nearly as high as it has been all throughout 2015, and it isn’t moving as quickly,” Smoke says. “Likewise, price appreciation remains above normal levels but has declined from the higher pace of the spring and summer.”

Homes have been selling more slowly in September, which might make sellers more willing to negotiate on the price or other concessions, realtor.com®’s report notes.

Listings are staying longer on the market: The median age of inventory has jumped to 80 days, up 6.7 percent from August but down 5 percent year over year. Home prices peaked in July and have since inched down slightly. In September, the median list price fell 1 percent month over month to $230,000 but remain up 6 percent year over year.

“Sellers should have reasonable expectations for prices and be more patient during the fall,” Smoke says in his latest report. “But both buyers and sellers should be encouraged by a market that continues to see healthy gains in transactions over last year.”

Should you sell home without a real estate agent?

In today’s tough housing market, some sellers are looking to cut costs by selling their property without using a real estate agent.

Sellers who skip the listing agent and offer their home as a “for sale by owner” — or FSBO (pronounced FIZZ-bo) — have the potential to save thousands of dollars in agent’s fees, says Piper Nichole, author of “The For Sale By Owner Handbook.”

But FSBO sellers should be prepared to do a lot of legwork to manage the sales process, with no guarantee of a final sale, she says.

Here are five questions experts say homeowners should ask themselves before selling a home on their own.

5 questions to ask

1. Do I know the value of my home in today’s market?
2. Am I ready to work with a buyer’s agent?
3. Will I take charge of sales and marketing responsibilities?
4. Can I bear criticism of my home?
5. Am I willing to screen potential buyers?

1. Do I know the value of my home in today’s market?

A common mistake FSBO sellers make is to price their home too high, Nichole says. As a result, the property languishes on the market.

“When a home sits for a long while, buyers start to wonder what is wrong with it,” she says. “The best option is to come out of the gate priced right.”

To market a home competitively, sellers should research the final sales price of similar properties in their community.

Updated sales information is available to agents through proprietary reports, but individual owners can also dig up sales data from public sources, says Amy Bohutinsky, vice president of communications for Zillow.com, a Seattle-based online real estate service that provides data on homes.

Online real estate sites may offer sales trend information for local neighborhoods, sales prices for comparable homes in the community, known as “comps,” and the average length of time homes have remained on the market, Bohutinsky says.

“It takes a lot of work to look at this data and figure how to price your home, but it’s important in order to come up with the right value,” she says.

It may even be worthwhile to purchase an appraisal from a certified licensed appraiser, says Dale Siegel, a mortgage broker and author of “The New Rules for Mortgages.”

Buyers eventually have to pay for their own appraisals. But homeowners who buy an appraisal before putting their home on the market can eliminate the risk of a pricing surprise when a buyer applies for a home loan, Siegel says.

Even if sellers think they’ve arrived at fair home values, potential buyers may still try to negotiate prices downward.

According to Bohutinsky, a report from Zillow determined that 23 percent of real estate listings nationwide had a price cut in August 2009. And nationally, homeowners are selling for less than 3 percent of their listing price on average, Zillow says.

“If you want to sell quickly, the strategy is to sell about 5 percent below the most recent comps in your area,” Bohutinsky says.

2. Am I ready to work with a buyer’s agent?

In a typical real estate transaction, the listing agent represents the seller. But the buyer may choose an agent to represent his or her interests, too.

When a real estate deal is made, the seller usually pays both agents involved a commission based on the sale price of the house. That commission is negotiable, but it has traditionally been about 6 percent of the purchase price, says Nichole. The buyer’s agent and seller’s agent generally split the commission in half.

As a FSBO seller, you may decide not to use a listing agent, but you can’t control whether or not a potential buyer wants to use a buyer’s agent.

If the buyer does use an agent, homeowners should consider offering that agent the typical commission, which would be about 3 percent of the sales price, says Leslie Tyler, vice president of marketing for ZipRealty, an Emeryville, Calif.-based realty company.

Sellers who decide not to offer to pay the commission will probably shrink their pool of potential purchasers, because buyer’s agents would not have an incentive to show their clients the seller’s home.

3. Will I take charge of sales and marketing responsibilities?

Some FSBO sellers underestimate the amount of effort it takes to market their home, Nichole says. Sellers should be prepared to keep the home clean, clutter-free and “show ready” at all times.

“Prepare the look of your home, both inside and out,” Nichole says.

Other steps sellers should take include:

• Take good photos of their property and write effective sales descriptions.
• Buy and install a “for sale” yard sign with promotional fliers that include contact information.
• List the property in multiple classified ads and real estate Web sites.

Placing the home in the Multiple Listing Service, or MLS, is another important way to market the home, Tyler says. The MLS is a database of homes for sale offered by brokers.

FSBO sellers can’t submit to an MLS, but some companies have brokers who will list the seller’s home in the MLS for a flat fee, Tyler says. Sellers may pay a few hundred dollars for this service.

Before paying any money to a third-party company, research to determine if it has been in business for a while, has a good reputation and has earned favorable reviews, Nichole says.

In addition to marketing their own property, FSBO sellers often need to find and hire people to help them complete the sales process, Siegel says. These professionals include real estate attorneys (to review contracts and offer advice), appraisers and contractors (to make any necessary home repairs).

4. Can I bear criticism of my home?

The emotional aspect of selling a home is often overlooked, but it’s an important part of the selling process, Tyler says. Owners will probably hear a lot about their home’s shortcomings from buyers trying to negotiate a lower sales price. Or worse, they may not receive any interest in their home, especially if the price is too high.

You have a better chance of being a successful seller if you don’t take negative feedback personally, Tyler says.

“If you don’t live in your home and you don’t have an emotional attachment to it, it’s a little easier to sell FSBO,” she says. “You can have a more objective view of the home’s value.”

5. Am I willing to screen potential buyers?

It may seem pushy, but FSBO sellers must be willing to screen their own buyers, Siegel says.

“You don’t want to take your house off the market to negotiate with someone who was never qualified for the home in the first place,” she says.

Before you sign a contract with a buyer, make sure the purchaser will be able to come up with the necessary funds, Siegel says.

“It’s harder to get a mortgage these days because the bar is higher,” Siegel says. “Applicants need better credit, higher salaries and a bigger money reserve than they needed just three years ago.”

Before accepting an offer, ask for a current pre-approval letter from a reputable lender, Siegel says. The preapproval letter should show that the buyer spoke to the lender and has been preapproved for the purchase price of the home, she says.

 

Mortgage rates retreat after Federal Reserve holds off on rate hike | Rapid News Network

“We saw significant rate volatility last week surrounding the [Federal Open Market Committee] meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance”, explains Mike Fratantoni, chief economist for the MBA, in a statement.

After falling 7.0% the previous week, total mortgage application volume increased 13.9% on an adjusted basis during the week ended September 18, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The refinancing portion of mortgage applications soared 18 per cent, while applications for the purchase of a home increased a solid 9 percent from one week earlier to its highest level since June 2015.

In the ARM arena, 5-year loans are published at 3.04% at PHH Mortgage with a starting April of 3.194% which will change as interest rates adjust. But the share of refinance loans to low- and moderate-income borrowers increased slightly from 20 percent to 21 percent. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.

WASHINGTON (AP) – The Commerce Department says orders for long-lasting USA’ manufactured goods dropped 2 percent in August, following a 1.9 percent increase in July.

The average rate for a 15-year FRM was 3.31%, down from 3.33%.

The 30-year fixed rate remained unchanged over last week, even though there was substantial intra-week fluctuation, he added.

Last week, the Federal Open Market Committee opted not to raise the short-term federal funds rates.

Nervous investors typically flock to safe-haven USA government bonds, to which mortgage rates are closely related. 7/1 Adjustable Rate Mortgages have been listed at 2.625% today with a starting April of 3.141%.

Data released by the Bank of England and Financial Conduct Authority (FCA) has found mortgage rates are at their lowest ever level. Just 10 percent of respondents predict that mortgage rates will rise in the next seven days.

A rate hike by the Fed could bring higher rates for home loans.

Bankrate: Mortgage Rates Fall to 4-Month Low — NEW YORK, Sept. 24, 2015 /PRNewswire/ —

NEW YORK, Sept. 24, 2015 /PRNewswire/ — Mortgage rates moved lower this week, with the benchmark 30-year fixed mortgage retreating to 4.00 percent, the lowest level since late May according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.26 discount and origination points.

The larger jumbo 30-year fixed rate dropped to 3.89 percent, staying well below the smaller conforming 30-year fixed mortgage. The average 15-year fixed mortgage fell to 3.18 percent. Adjustable mortgage rates were on the downswing also, with the 5-year ARM sliding to 3.19 percent and the 7-year ARM sinking to 3.38 percent.  

Mortgage rates were the beneficiaries of increased jitters about the health of the global economy following the Federal Open Market Committee’s latest meeting. When the Fed opted not to initiate interest rate hikes, citing international concerns, it sparked nervousness in financial markets. Nervous investors typically flock to safe-haven U.S. government bonds, to which mortgage rates are closely related. Until this uneasiness is put to rest, don’t expect any sharp upward moves in mortgage rates.  

At the current average 30-year fixed mortgage rate of 4.00 percent, the monthly payment on a $200,000 loan is $954.83.  

SURVEY RESULTS

30-year fixed: 4.00% — down from 4.06% last week (avg. points: 0.26)
15-year fixed: 3.18% — down from 3.25% last week (avg. points: 0.14)
5/1 ARM: 3.19% — down from 3.28% last week (avg. points: 0.20)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/mortgagerates

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of panelists – 60 percent — expect mortgage rates to remain more or less unchanged over the next week, and 30 percent forecast mortgage rates will decline. Just 10 percent of respondents predict that mortgage rates will rise in the next seven days.

About Bankrate, Inc.

Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.

3 Tips for Single Female Home Buyers | Money.com

Make sure you do your research and take your time.

Since high school, Gaby Lorenzo has dreamt of a home that she can call her own—of a place she can decorate just the way she wants and where she has a sense of control.

“There’s a huge sense of independence in owning my home and being comfortable in my own living environment where I make my own rules and my own decisions,” said Lorenzo, 24, who works at a communications agency in San Francisco and recently bought a condo in Concord, California.

Among the things she loves about living in her own home: having the space to be able to do yoga in her living room without distractions.

Many single women like Lorenzo are buying their own homes. In fact, it is much more common for single women than single men to purchase a home. According to the National Association of Realtors’ most recent data from 2014, 16% of home buyers are single women, while 9% are single men.

“More women than men think buying a home is a good financial investment,” said Jessica Lautz, NAR’s director of survey research and communications. “Many of them are thinking of the pure desire to own a home and to settle and make roots.”

Here are three financial tips for prospective home buyers. (Note: these apply to single men, too.)

1. Know What You Can Afford

A first-time single female buyer spends a median of $135,000, according to the National Association of Realtors’ 2014 Profile of Home Buyers and Sellers, which covers July 2013 to June 2014 home buyers. A single female repeat buyer spends $170,400.

Affordability is a huge issue. That means not only affording the mortgage but also the taxes, the maintenance, the insurance and having money set aside for emergencies.

“Otherwise, you are house rich, cash poor,” said Kathleen Grace, certified financial planner and managing director at financial services company United Capital.

The conventional wisdom for a down payment has not changed. Expect to put down 20% for the mortgage. At the same time, have an emergency fund to cover at least six months of expenses, experts say.

Even if you are purchasing a new property, you will need a reserve to cover repairs. Remember that you have to pay property taxes, too. A good way to make sure that you can is to divide the tax bill by 12 and set the money aside each month.

 

 

 

 

 

A spreadsheet can help you figure out all the costs of owning the property. Use a housing calculator like financial services company Fidelity’s to figure out what you can afford.

“Only take on buying a home if it’s something you have ample funds for,” said personal finance expert Farnoosh Torabi.

2. Protect Your Assets

When you are buying a property alone it becomes even more important that you have adequate insurance coverage. That includes life, disability as well as healthcare insurance.

You might also want to look into setting up a trust so that the proceeds from your insurance policies go to your independent beneficiary if something happens to you.

“All the responsibility lies on you,” said Chantel Bonneau, wealth management adviser at Northwestern Mutual. “So it’s even more important that you protect your income, which is your biggest asset.”

If you get married, you can also look into shielding your home in the event of a divorce with a prenuptial agreement. Another option? Keep your property entirely in your name, said Torabi.

3. Consult Experts and Take Your Time

Since buying a home is one of the biggest financial decisions most people make, it is a good idea to work with a real estate agent and consult with a financial adviser. Do your research and take your time.

That’s exactly what Lorenzo did. The process of finding and buying the condo, which was priced in the $300,000-range, took about four months. She went through several offers before finding the right place.

“It’s a demanding process that requires a lot of critical thinking,” Lorenzo said. “You can only grow from the experience.”