Anna Porcelli's Blog
If you add your house to the real estate market but fail to garner buyers' attention, now may be a good time to revamp your home pricing strategy. Otherwise, your home may remain on the housing market for many weeks or months before it finally sells.
Generally, there are several factors you need to consider to determine if you have priced your residence appropriately. These factors include:
1. The Current State of the Housing Market
The demand for houses in your city or town may have far-flung effects on your property selling experience. For example, if there is significant demand for houses in your area, the real estate sector favors sellers. Or, if there is minimal demand for homes in your city or town, the real estate market favors buyers. And if you do not price your house appropriately in a seller's or buyer's market, you may struggle to stir up interest in your home.
It often helps to price your house based on the current state of the real estate market. By doing so, you can establish an initial asking price for your home that falls in line with buyers' expectations.
To assess the current state of the housing market, evaluate the prices of recently sold residences in your city or town. You should find out how long these houses were available before they sold, too. Once you have this housing market data in hand, you can determine whether a seller's or buyer's market is in place and price your house accordingly.
2. Your Home's Age and Condition
The price you originally paid for your home is unlikely to match your house's current value. Fortunately, if you evaluate your residence's age and condition, you may be better equipped than ever before to set a competitive initial asking price for your home.
Sometimes, it helps to conduct a home appraisal before you list a residence. An appraisal enables you to receive a property valuation that accounts for your house's age and condition, along with various real estate market factors. Then, you can use this valuation to determine the optimal initial asking price for your house.
3. Your Home Selling Timeline
If you are in a hurry to sell your home, you should establish an initial asking price that will grab buyers' attention. On the other hand, if you can afford to be patient during the home selling journey, you should not settle for a subpar offer to purchase your house.
When it comes to establishing a home selling timeline and determining how to price your residence, hiring a real estate agent may be beneficial. A real estate agent understands what it takes to sell a home, regardless of the current housing market's conditions. As such, he or she will work with you to ensure you can price your home competitively.
For those who want to streamline the home selling journey, it typically helps to start with a competitive initial asking price for your house. If you consider the aforementioned factors, you can boost the likelihood of pricing your home appropriately from day one of the house selling journey.
If buying a home is something you’re considering, you might be curious about the different types of mortgages that are available to you. After all, the interest rate on your loan could have a huge impact on your finances over time, saving you thousands of dollars.
In today’s post, I’m going to demystify the home loan by explaining the most common types of mortgages. That way, you’ll be able to approach a lender with a bit of context and knowledge to help make the best mortgage decision for you and your family.
The most common types of home loans in the United States today are fixed-rate mortgages. A fixed-rate mortgage has the benefit of stability in terms of its interest rate--year after year, or the lifetime of your loan, you know exactly what percent of interest you’re going to pay.
Fixed-rate mortgages most frequently come with repayment terms of 15 or 30 years. However, some lenders offer different repayment periods.
As with any debt, paying off a mortgage in a shorter term typically amounts to paying less interest over the lifespan of the loan. For this reason, buyers who can afford higher monthly mortgage payments often opt for a 15-year fixed-rate mortgage.
If you can’t afford higher monthly payments, a 30-year loan will typically have lower mortgage payments, but at the expense of paying more interest over the life of the loan.
The 30-year option is the most often in the United States, where first-time buyers typically have too many other monthly bills to afford a high mortgage payment.
Adjustable-rate mortgages (ARMs) were once an ideal option for first-time buyers who could purchase a home at a very low interest rate and then refinancing once that rate was set to rise. However, after the housing crisis of 2007, trust in the housing market drastically declined.
In recent years, ARMs have begun to make a comeback. However, they currently still only account for around 5% of home loans.
Adjustable-rate mortgages come with one important advantage and one huge disadvantage over fixed-rate mortgages. The upside is the ability to borrow money for a home at a lower interest rate than other mortgage types. The down side? Your interest rate isn’t locked in for the length of the loan, meaning your rate could, in theory, rise dramatically before you sell or pay off the home. This is exactly what happened to borrowers during the subprime mortgage crisis.
There are a number of special loan programs that have been sponsored by the government over the years. Among them are USDA rural development loans, VA loans for veterans and their spouses, and FHA loans offered by the Federal Housing Authority.
All of these loans make it easier to buy a home with little or no down payment or a credit score that’s less than perfect. That makes these options great for first-time homeowners.
If you want to buy a luxury home in Orlando, Tampa Bay or elsewhere in Florida, it generally is a good idea to plan ahead. That way, you can establish realistic expectations for all stages of the luxury homebuying journey.
The Florida luxury homebuying journey varies based on a number of factors, including the current real estate market's conditions and where you're searching for a luxury home. For example, if you're on the lookout for a luxury residence in Miami, you may encounter challenges that are very different from those of a luxury homebuyer in St. Augustine. However, Florida luxury homebuyers who set realistic expectations from day one should have no trouble achieving the best-possible results as they search for their ideal residence.
Now, let's take a look at three tips to help you establish realistic expectations before you kick off a search for a Florida luxury house.
1. Create Homebuying Criteria
You know you want to purchase a luxury home in Florida, but you should try to hone your house search as much as possible. By doing so, you can use homebuying criteria to speed up your luxury home search.
For instance, homebuyers who want to live near the beach may consider Florida luxury homes in Miami, Clearwater or other cities and towns that boast beachfront properties. Or, if you prefer to live close to Disney World, you may want to focus exclusively on luxury houses in and around Orlando.
With homebuying criteria in hand, you can start looking for houses that fall in line with your expectations. Then, you can set up times to view these houses in person and move one step closer to acquiring your dream residence.
2. Know Your Budget
Although you are in a strong position to purchase a Florida luxury house, there is only a finite amount of money at your disposal. Fortunately, if you get your finances in order prior to starting a home search, you can enter the real estate market with a homebuying budget.
Usually, it is beneficial to meet with lenders to explore jumbo mortgage options. These financial institutions can offer insights into a broad range of jumbo mortgages and respond to any concerns or questions. Plus, lenders employ friendly, knowledgeable mortgage specialists who can help you make an informed jumbo mortgage decision.
3. Consult with a Real Estate Agent
The Florida luxury housing market sometimes can be complex, particularly for those who are pursuing a luxury home for the first time. Thankfully, real estate agents are available who can help you establish realistic homebuying expectations.
Hiring a real estate agent with Florida luxury housing market expertise is essential. This housing market professional can teach you about the luxury residences available in Jacksonville, Key West and other Sunshine State cities and towns. And once you find your ideal luxury residence, a real estate agent will help you submit a competitive homebuying proposal.
Ready to find your ideal Florida luxury residence? Use the aforementioned tips, and you can establish realistic Sunshine State luxury homebuying expectations.
Personal financial in your twenties comes with a steep learning curve. One minute you’re studying for your finals and the next you’re expected to suddenly know about APR financing, 401(K)s, and fixed-rate mortgages.
If you’re in your twenties and are facing these new challenges, you’re probably equal parts terrified and excited for the future. And, although it can be anxiety-inducing to step into the world of personal finance, you have one tool to your advantage that your parents and grandparents didn’t have: the internet.
So, in this article, we’re going to give you some tips about buying a home and managing your finances in your twenties.
Have an emergency fund
You probably have a lot of things you want to save for. Down payments on mortgages and auto loans, saving money for traveling, beginning your retirement funds, and maybe even starting a family; they’re all important investments that will take time and financial planning to achieve.
However, one thing that many young people neglect when they first start saving is an emergency fund. There are any number of things that can throw a wrench in your plans in your twenties. You might lose a job and have to live off of savings while hunting for a new one. Maybe something goes wrong with your car and it costs hundreds to repair. Or, you could have unforeseen medical expenses that aren’t covered by your insurance. Regardless of the reason, having an emergency fund will help you stay out of unnecessary debt.
It’s recommended to have at least 6 months of living expenses saved in your emergency fund. Once you have this amount saved, it’s a good idea to keep it in a separate account to avoid spending it on things that aren’t exactly an emergency.
Don’t live above your means
We all know that buying a house, going to college, and even buying groceries are all exponentially more expensive than they used to be. However, it’s still important to try to adjust your lifestyle to the things you can afford.
This includes the vehicle you drive, the first home you buy, and even smaller purchases you make.
Avoiding lifestyle creep
Related to our last point about living above your means, lifestyle creep is the phenomenon that occurs when you get a raise or a higher paying job: the more we make, the more we spend. However, it’s possible to avoid this trend by keeping your finances in check.
The next time you get a raise, make sure that money is put to use in either your retirement fund or savings account. This method is based on the goal of “giving every dollar a job.” When every dollar you earn has a purpose, you’re less likely to spend it on new video game consoles every six months.
When it comes to adding your residence to the real estate market, it is always better to err on the side of diligence.
Ultimately, there are many reasons to become a diligent home seller, including:
1. You can price your house competitively from the get-go.
For those who want to become diligent home sellers, it is paramount to set a competitive price from the get-go. By doing so, a diligent home seller can stir up plenty of interest in his or her house and boost the chances of a quick home sale.
A diligent home seller will allocate the necessary time and resources to learn about the real estate market. As such, this home seller will have no trouble establishing a competitive price for his or her residence from day one.
In addition, a diligent home seller will examine the prices of available houses that are similar to his or her own. With this housing market data in hand, a diligent home seller can establish a price range for his or her residence.
2. You can identify home improvement opportunities.
A diligent home seller likely understands that his or her residence has various pros and cons. At the same time, this property seller recognizes home improvement opportunities.
To learn about home improvement opportunities, a diligent home seller usually will conduct a home appraisal. This appraisal enables a property inspector to evaluate a residence and provide the home seller with an in-depth report about the house's condition. Then, the home seller can use these property insights to streamline his or her home improvement efforts.
Completing a series of home improvements can make a world of difference in the eyes of homebuyers. In fact, a diligent home seller will prioritize home improvement projects and finish assorted home interior and exterior tasks to transform an ordinary residence into a stellar one.
3. You can keep your cool in stressful negotiations with a homebuyer.
Let's face it – no home seller wants to worry about stressful negotiations with a property buyer. Fortunately, a diligent home seller will know what it takes to remain calm, cool and collected as home selling negotiations proceed.
A diligent home seller will understand the true value of his or her house. Thus, this home seller can enter negotiations with actionable data to help him or her make informed decisions.
Plus, a diligent home seller will maintain an open approach throughout negotiations. This approach will enable a home seller to listen to what a homebuyer has to say at all times. And if a home seller maintains an open approach, he or she increases the likelihood that all parties involved in negotiations will get the best possible results.
If you ever need extra assistance as you prepare to list your residence, you can always reach out to a real estate agent too.
Even a diligent home seller will collaborate with a real estate agent to get home selling guidance. That way, a diligent home seller can move one step closer to optimizing the value of his or her residence.