Frequently Asked Real Estate Questions-Ep. 24

What are the top 5 things I can do to get prepared for purchasing a new home?

Navigating the housing market can be more complex than ever before. Most potential buyers are overwhelmed and don’t know where to begin. Here are the top 5 tips I recommend.

1. Understand and know what your FICO score is. Your score plays a major role in what type of mortgage you can get, how much you have to put down and what your interest rate will be. Meet with a mortgage professional to get pre-approved and find out what your score is and get it updated if need be.

2. Know what you can afford. Again, meet with that mortgage professional and find out what amount you are able to get preapproved for and more importantly what you can afford.

3. Start saving. You will need to save up for your down payment, closing costs and moving expenses. It is also best to have around six months worth of mortgage payments in a savings account for emergencies or unexpected expenses.

4. Understand the real estate market. You can save yourself money by watching the seasonal trends and being financially prepared to make an offer when the time is right.

5. Consult a Real Estate Professional. Get a referral from a friend, co-worker or neighbor for a real estate agent they had success working with. Take the time to meet with that agent to ensure they are the right agent for you. (Refer to my blog post from May 23, 2012 'How do I find an agent to help me buy or sell?' For more ideas on finding an agent). Or, of course contact me, I would be happy to discuss all of this and more, and any other questions you may have about the homebuying process!

Frequently Asked Real Estate Questions-Ep. 23

Will any remodeling project add value to my home?

Many will add value, but not all.

For instance, combining two smaller bedrooms to create one larger master bedroom may be better for your life style, but not for everyone. If it changes your house from a 3 bedroom to a 2 bedroom that might not be the best plan as most buyers will want at least a 3 bedroom house. If it changes it from a 4 bedroom to a 3 bedroom, it might be ok, depending on the part of town you live in and your neighborhood.

Another thing to keep in mind, installing high-end materials may not always be the best choice. Not all buyers want the additional cost; they would rather get a more affordable home. You don’t want to over improve it for the neighborhood. You have to keep the finishes and upgrades in line with your neighbors to get the most back out of a project.

Painting is an inexpensive way to make sure your house shows the best it can. BUT, you need to keep it a neutral color, so the buyers can choose their own style and envision their personal belongings in your house. Painting the wrong colors can turn off buyers.

Don’t forget the outside! You want to make sure your house has curb appeal so buyers will want to stop in and take a look. Most times the outside is the first picture of your house a buyer sees. If it does not look inviting, they may not even look at the rest of the pictures and just remove it from the list. BUT don’t overdo it with expensive landscaping.

To get the biggest bang for your buck, start from the outside and work your way in. I HIGHLY recommend you consult with a Real Estate agent BEFORE making changes/improvements to your home to ensure you do not over improve and you do the things that buyers will pay the most attention to. If you or someone you know is looking to sell your house call me today, I would be happy to discuss the best things to do to get your house ready for the market.