Thursday, January 21, 2021

Buying? Selling? Staying Put? Here are 10 Resolutions + FREE Reports

 


New Year, New Home? Set Homeownership Goals Whether You’re Buying, Selling, or Staying Put.  Read on for free reports!

The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021. 

Home buyers, is this the year you work to improve your credit score, pay down some debt, or save for a down payment? 

Home sellers, we’ve laid out plans for you to get top dollar for your property, including timing your home sale, making your property stand out from the crowd, and investing in your extra living space. 

And even if you’re staying put for awhile, homeowners, you can resolve to improve your status quo by evaluating your home budget, finalizing your home maintenance schedule, or maybe investing in a second property. 

So no matter your homeownership status, we’ve got some ideas and advice for you to make this year your best one yet. Read on to learn more. 

HOME BUYERS 

⇒  Resolution #1Qualify for a better mortgage with a higher credit score.

Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. Therefore, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report from Equifax, Experian, and TransUnion (via AnnualCreditReport.com). You can also obtain your credit score for free from some banks and credit card companies. 

Your credit score will be a number ranging from 300-850. <1>  Generally speaking, a credit score of 740 or higher is considered very good to excellent. <2> If your FICO score drops below 740, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit. 

⇒  Resolution #2: Improve your credit health by paying down debt.

 Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can't spend on your new home, but your debt-to-income ratio also affects your credit score, which we discussed above. The less debt you have, the higher your FICO score and the better mortgage you can obtain.  

If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that "extra" money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms. 

⇒  Resolution #3:  Create a financial safety net before applying for a mortgage.

Don’t forget that buying a home requires some cash as well. A down payment is typically 7% of a home’s purchase price, and closing costs currently average $3,700. <3,4> You’ll also need money for moving expenses and any initial maintenance tasks that might pop up. And as the pandemic taught us, you never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs. 

Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it. 

HOME SELLERS

⇒ Resolution #4:  Decide on the right time to sell your home.

If you’re looking to maximize profit on the sale of your home, selling earlier in the year makes sense. Listing prices historically increase early in the year, peak in May, plateau through June, and decrease for the remainder of the year.5 And, according to the National Association of Realtors, “[w]ith both mortgage rates and the number of homes available for sale expected to remain relatively low, home prices are likely to continue to increase. [In] mid-January, home prices typically begin a quick ramp-up in a normal year.” <5>

But sales price isn’t the only thing to consider. You might not be ready to sell your home yet because you don't want to uproot your kids during the school year or because you need to tackle some minor upgrades before placing your home on the market.

This means that there is no one month or season that is the perfect time to sell your home. Instead, the right timeline for you takes into account factors such as when you’ll earn the highest profit, personal convenience, and whether your home is even ready to put on the market. A trusted real estate professional can talk you through your specific needs to clarify when to sell your home. 

⇒ Resolution #5Boost your home’s resale value by making your property shine.

Housing inventory is at historic lows across the country, and that means the market is fiercely competitive.<6> Selling your home in 2021 has the potential to net you a huge return right now, and you can maximize that amount with some simple fixes to make sure your property outshines your neighbors' for sale down the street. 

In your home, you might need to tackle a minor remodeling project, such as upgrading the flooring or adding a fresh coat of paint. According to the National Association of Realtors’ 2019 Remodeling Impact Report, simply refinishing existing hardwood floors recoups 100% of the cost at resale, and completely replacing it with new wood flooring recovers 106% of costs.<7>

Outside, you might consider improving your curb appeal by removing a dead bush, trimming a tree that blocks the front window, or power-washing your moldy driveway and sidewalks. In fact, real estate agents say cleaning the exterior of your house can add $10,000 to $15,000 to a home’s sale price.<8> And according to a Virginia Tech study, improving a home’s landscaping may increase its value by 10 to 12%.<9>

I will provide you with all the services you need to seel quickly at best price.  Don't want to be bothered with all of this?  Ask me about my BUY BEFORE YOU SELL program.  You can buy your new home & move in while we take care of all repairs, inspections, staging & showings.  The easiest and most relaxing way to sell your home.  

⇒  Resolution #6:  Invest in your “extra” living space to meet current buyers’ needs.

Due to COVID-19, more people are staying at home to work, go to school, exercise, and stay entertained. And these lifestyle changes are showing up in home buyer preferences. For example, according to one study, buyers are looking more and more for homes with formal, outfitted home offices, private outdoor spaces, and updated kitchen appliances.<1>0

So if you’ve got an underutilized room, consider turning it into an office, home gym, schoolroom, or multi-purpose room to meet current home buyer needs and attract better offers on your home. Got some underwhelming space outside? You could turn it into an outdoor entertainment area by adding a firepit, upgrading the patio furniture, or installing a grilling area. Be sure to consult with a local real estate professional before investing in a renovation, however, as each market’s buyers have different tastes.

HOMEOWNERS

⇒  Resolution #7:  Evaluate your household budget to reflect financial changes.

After this past year, in particular, your financial picture may have changed. Maybe you were furloughed, had your hours reduced, or got a new job further from home. Perhaps you’ve kept the same job, but you’re now working remotely. A work-from-home arrangement could mean less money spent on gas, tolls, a professional wardrobe, and dining out for lunch.

But this could also mean new (or increased) expenses now that you’re working at home, such as new tech-related purchases, faster Wi-Fi, and higher energy bills. January marks the perfect opportunity to update your income and expenses and review last year’s spending habits, tweaking as needed for 2021.

For more specific ideas, contact us for our free report "20 Ways to Save Money and Stretch Your Household Budget."

⇒  Resolution #8:  Save money now (and earn more later) with a home maintenance plan.

Having a schedule of regular home maintenance projects to tackle will save you money now and in the long-term. You’ll avoid some surprise “emergency fixes,” and when you’re ready to eventually sell your home, you’ll get higher offers from buyers who aren’t put off by overdue repairs.

Even if nothing necessarily needs fixing right now, you can lower your energy costs by maintaining and upgrading your home.  According to the U.S. Department of Energy, simple fixes add up: replace five most frequently used bulbs with ENERGY STAR ones to save $75/year; repair leaky faucets to save $35/year; replace older toilets with low-flow models to save $100/year; and seal air leaks to save $83-$166/year.<11>

 For a breakdown of home maintenance projects to tackle throughout the year, contact us for our free report “House Care Calendar: A Seasonal Guide to Maintaining Your Home.”

⇒  Resolution #9:  Invest in real estate for a better standard of living.

Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021. 

Have cabin fever from the long quarantine? A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer. Just be sure to consult with a real estate professional to get a realistic sense of a property’s true income potential.  

Want more information on how a second property fits into your 2021 plans? Request our free report, "Move Up vs Second Home: Which One Is Right For You?"  With 1400 experienced agents worldwide, we can help you!

LET US HELP YOU WITH YOUR 2021 GOALS

Without a plan and a support system, 55% of Americans will break their new year’s resolutions.<12> Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent to keep you motivated and on track.

As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to us today for a free consultation and commit to a happy and prosperous new year.

 

 Sources:

1.      USA.gov -
https://www.usa.gov/credit-report

2.      Equifax -
https://www.equifax.com/personal/education/credit/score/what-is-a-good-credit-score/

3.      NerdWallet -
https://www.nerdwallet.com/article/mortgages/the-20-mortgage-down-payment-is-dead

4.      Zillow -
https://www.zillow.com/mortgage-learning/closing-costs/

5.      Realtor.com -
https://www.realtor.com/research/we-should-be-in-a-buyers-market-right-now-but-covid-turned-everything-upside-down-best-time-to-buy-a-home

6.      Business Insider -
https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9

7.      National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf

8.      House Logic -
https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/

9.      Virginia Cooperative Extension -
https://www.pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/426/426-087/426-087.pdf

10.   HomeLight -
https://www.homelight.com/blog/top-agent-insights-for-q2-2020/

11.   U.S. Department of Energy -
https://www.energy.gov/energysaver/articles/how-much-can-you-really-save-energy-efficient-improvements

12.   Ipsos -
https://www.ipsos.com/en-us/urban-plates-ipsos-NY-Resolutions

 

Monday, January 18, 2021

Lovely Home Ready for You


Check out this lovely home in the sweet town of Hillsborough. Thinking of selling -- contact me to learn all about my FREE seller services and BUY BEFORE YOU SELL program.

Sunday, January 10, 2021

Recycling Christmas Trees and GOATS!!

 


I'm not rushing you, but when you’re ready to say goodbye to the 2020 Christmas season, here’s some information about what to do with your Christmas tree.

Well... Dried out Christmas trees become increasingly flammable as days go by, so maybe I am rushing you just a little bit.

Most towns and cities recycle Christmas trees for mulch, so recycling your tree is a way of “paying it forward.”

Here are some great links & info for information on how to recycle Christmas trees in various towns and cities around the Triangle. There are options for curbside pickup and drop-off at recycling centers. There's even a farm that would love Christmas tree donations for their goats to eat!

Cary
Remove artificial decorations, including wire, tinsel, lights, etc. Place the item at your curb y 7 a.m. on your scheduled yard waste collection day. MORE INFO

Raleigh
The City of Raleigh has offered some recycling tips for the holiday season.  MORE INFO

Apex
The Town of Apex is collecting real Christmas trees as part of regular yard waste collection services. Remove all decorations from trees, including any nails from the stand, and place at the curb for pickup on your scheduled day. MORE INFO

Wake County
You can drop off your tree at several Wake County convenience centers and parks.

All facilities are closed January 1st, but starting January 2nd, here’s the schedule:

Wake County Convenience Centers
Hours: 7 days a week, 7 a.m. until 7 p.m.

Site 1: 10505 Old Stage Road, Garner
Site 2: 6120 Old Smithfield Road, Apex
Site 4: 3600 Yates Mill Pond Road, Raleigh
Site 11: 5051 Wendell Blvd., Wendell

MORE INFO

WHAT ABOUT GOATS??

Awww....  Goats love eating Christmas trees! Some farms happily collect old Christmas trees for their very appreciative goats.

Hux Family Farm, at 1923 Shaw Road, Durham, has put out a call for Christmas trees! They’re looking for pine trees with as few chemicals as possible on them. Text 9196667258 or email huxfamilyfarm@gmail.com about drop-off. They promise lots of pictures and videos of their goats chomping on the trees!

A second area farm that has expressed an interest in Christmas trees for their goats is The Dean Farm, 2690 Wendell Blvd, Wendell. They say to just pull into the driveway and throw them out! But you might want to contact them to make sure that they’re still looking for trees. 919-624-0685 or thedeansfarm@gmail.com.

Hill Ridge Farms, 703 Tarboro Road, Youngsville, has also said they’d love some Christmas trees for their goats. Check their Facebook page before you go to see if they have any updates. 

Consult your municipality’s solid waste services website for information.

A Note of Caution
When you put curbside might give potential burglars an idea of what new items are in your house, like televisions and game consoles. So, you might want to consider dropping those boxes off at drop-off centers instead.

Need a new home for your Christmas tree in 2021?  Contact me & let's get started!

Sunday, January 3, 2021

It's Property Tax Time! Here's All the Info You Need

 


Like all inevitable things in life, taxes are unavoidable.  So let’s get this convo going as the deadline for paying property taxes is coming up on January 5!

**NOTE:  for the purpose of this conversation, I will be talking about HOME property taxes only.

What is NC property tax as it pertains to homes? 

Property tax rates are applied using a calendar approach. This means that your current tax bill utilizes the time you owned the home from Jan-Dec of the current year. So, they are paid in arrears.  

**I will be happy to explain how this works if you buy or sell property during the year.  CONTACT ME NOW

Residents of Wake County have an average effective property tax rate of 0.88% and the median annual property tax payment is $2,327.  This means if you have a home that is tax valued (not the same as a real estate appraisal) at $400K, you will pay 0.88% tax on it or $3520. 

Here are some tax values for counties near Wake:


Source:  NC County Tax Rates

Tax bills are typically mailed in July and are due September 1st.  There is an extended deadline of January 5 of the next year, so you can pay at either time.  Keep in mind that this may affect your taxes for the year.  If you pay in the next year, you cannot claim them for the current year.  Check with your tax advisor.  

**Tax bills are not mailed to mortgage companies. The majority of lenders electronically access and retrieve tax data directly from our system, eliminating the need for a paper copy of the bill.  If you pay through your mortgage company, the final responsibility is still yours.  Check with them to make sure they are being paid and that you are not double paying. 

North Carolina’s property tax is “ad valorem,” (translation, “to value) which means that it is based on the value of property. A county assessor determines the value of a property and is required to revalue a property at least once every eight years. In Wake County, it is every four years.  The goal of the reappraisal is to determine the current market value of the property.  The last county home tax assessment was done in January, 2020.  The next one will be in January, 2024.

NOTE:  A tax appraisal from a county assessor is not the same as a real estate appraisal.    

** CONTACT ME FOR YOUR HOME'S VALUE and learn your accurate, personal, home value.   It's FREE!

Definition of Terms:

Tax appraisal provides an estimate based on general algorithms from several public sources. 

Real Estate Appraisal is typically conducted by a licensed, accredited NC Appraiser.  It is an  appraisal is an unbiased professional opinion of the value of a home and is used whenever a mortgage is involved in the buying, refinancing, or selling of that property.  It determines the value the bank is willing to mortgage.

Home Value Report is provided by an experienced, knowledgeable Realtor and will give you an accurate price point of your specific home based on extensive research, personal evaluation & recent, nearby comparable homes.  This is the most accurate current value of your home.

Did you find this article helpful?  Questions?  Let me know