Tuesday, March 31, 2015

Home Too Big Now?

iStock_000013567449-200.jpgOnce the kids are grown, have careers, relationships and get a place of their own, parents find that they may not need their “big” home like they did before. Their lifestyle may have changed and the house just doesn’t “fit” anymore.

Benefits of a smaller home:

  • Easier to maintain 
  • Lower utilities
  • Lower property taxes 
  • Lower insurance
  • More convenient location
  • Convenience of a single level
  • Possibly more energy efficient
  • Possibly lower maintenance

Moving from a larger home frees equity from the previous home that can be invested for retirement income, purchase a second home, travel, education or just to have a nest egg for unexpected expenses.  The profit on the home, in most cases, will be tax-free up to the exclusion limits set by IRS.

There will be expenses involved in selling a home as well as the purchase of a new home.  These will lower the amount of net proceeds available to invest in the new home.

Like any other big change in life, it is recommended that you take your time to consider the possible alternatives and outcomes.  Your real estate professional can provide information that can be valuable in the discernment process such as what your home is worth, what you will net from a sale as well as alternative properties for your next stage in life.

Tuesday, March 24, 2015

FHA or Conventional?

FHA vs Conv 200.pngBuyers with a minimum down payment are generally faced with the decision of whether to get a FHA or a conventional loan.  With the new 3% down payment program on conventional loans, it may become more confusing which loan to pursue.

The two loan programs have mortgage fees that can differ greatly.  FHA has a 1.75% up-front mortgage insurance charge in addition to the monthly mortgage insurance charge which was recently lowered by .5%.

FHA’s mortgage insurance is a fixed amount where conventional mortgage insurance providers’ fees are determined by individual companies and according to the credit score of the borrowers.  A borrower with a good credit score will be charged less than a borrower with a marginal credit score.

Mortgage insurance on conventional loans can be cancelled when the equity in the property reaches 20%.  FHA mortgage insurance in most cases, is paid for the life of the mortgage.  Once a borrower has a 20% equity in their home, to eliminate the monthly FHA mortgage insurance, they would need to refinance the home with a conventional loan and would not be eligible for any refund of the up-front fee paid at closing or added to the mortgage.

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If a borrower has a low credit score, FHA may be the better choice because conventional underwriters may have a higher minimum score.  FHA loans also tend to be more lenient than conventional loans when a borrower’s total monthly debt exceeds 45% of their monthly income.  FHA tends to allow borrowers a shorter time frame after foreclosures and bankruptcies.

The decision-making factor is which mortgage will provide the lowest cost of housing including payment and all loan fees.  A lot of information is necessary to make a good decision and typically, the borrower isn’t able to acquire it on his/her own.

A trusted mortgage professional is very valuable in not only providing the information but guiding the borrower through the entire process.  Your real estate professional is uniquely qualified to make such a recommendation.

Tuesday, March 17, 2015

Selecting a Lender

Selecting-200.jpgFinding a mortgage lender is not a problem. Selecting someone who will help you find the best loan product for your situation even if it means sending you to another lender is paramount.

There is a huge advantage to be able to sit across the table from someone you’re doing business with and look them straight in the eye. It’s difficult to make an informed decision based on a website and a phone call.

Doing business with a full-time professional who specializes in residential loans like you’re trying to get is important. You want the loan officer to be familiar with local conditions, values and practices.

It’s to your benefit to have a loan officer who has the experience to put the unusual transaction together even if yours is not. 

Here are a few questions that will be helpful in selecting the right loan officer.

  1. What percentage of your business are FHA & VA compared to conventional mortgages and how long have you been doing them?
  2. What percentage of your loans close on time according to the sales contracts?
  3. Will my credit score affect my interest rate?
  4. Will you help me select the best loan product for me regardless of your commission?
  5. Are there prepayment penalties on any of the loans we’re considering?
  6. Are there any restrictions on refinancing any of the loans we’re considering?
  7. When is my loan rate locked-in? Is there a charge for that?
  8. Is your loan underwriting in-house?

A real estate professional can be your best source of information and can recommend a trusted lender. If you have any questions as to what kind of answers you should expect, please give me a call.

 

Wednesday, March 11, 2015

SOLDbyNat.com in Loganville, GA - A Good Neighbor


A bitter-sweet Congratulations to this SELLER



 This guy right here has to be one of the best neighbors anyone could have! 
Always friendly and willing to lend a hand (or do it for you :-). The world needs more good neighbors and genuine people like this! This family will truly be missed!

Now you know the bitter part (I'm losing great neighbors!), so on to the sweet... 

I am so happy for this family as they enter the next chapter in lives. In life, when opportunity comes-a-knocking, it is wise to answer it and this was the case. They decided to accept a job opportunity, which meant relocating. And relocating quickly! After some consulting, a lot of hard work, and divine grace, they officially closed on their new home and old home within a few days. Here's a picture I snapped at the closing table...

Left - A face of happiness (Buyer) ; Right - A face of relief (Seller)


Check out these tips on Being a Good Neighbor.  


If you have been thinking about SELLING YOUR HOME and relocating across town or across country, give me a call at 404-857-2508. 

I'll prepare a FREE Market Analysis, so we can first see what your home is worth in today's market. 
 
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Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners and the Lead Home Stager with Heart of Decor in Georgia (virtual services available). She prides herself in being a guide to her clients and finds fulfillment in helping them achieve their goals.

Direct Phone: (404) 857-2508 
www.SoldbyNat.com Email - Facebook - Twitter - YouTube

SOLDbyNat.com in Lawrenceville, GA - Real Estate Investing


Bye-Bye Rental Property and Hello Relieved Seller!

Real Estate Investing is all the craze now-a-days and it seems like a simple thing to do, right? Wrong! 
 
Like anything, you need to do your research and understand what you are getting into (short & long term). There are many different ways to invest in real estate (ex: fix & flip, rentals, etc.) and many different aspects to consider (ex: upfront costs, long-term costs, tax liabilities, etc.). 
 


For this seller, he went the rental route and became a landlord. It served it's purpose for several years, but then the headache started to outweigh the profit. Fortunately, the stars were aligned and the market was up! Fast forward to present day...
 
 I listed this home on the 14th and it was under contract by the 20th. Not bad huh? When a home shows well, is in good condition, and priced right, it will go quickly in today's market. I work with my sellers in these areas prior to listing the home in order to get this type of results  
*Tip- If a home is sitting, one of those three factors are out of line.
 
See what the seller had to say for himself...
 
It was real pleasure working with Natasha Bazile as she guided me through the tangles of selling my home. Dealing with people and their budgets and (most of all) their expectations can be challenging for the best realtors, but Mrs. Bazile proved to be an expert in the real estate field by offering key suggestions based on her variety of experiences from working in the real estate field, which make the entire process easier. That's why I would recommend her to anyone interested in selling/buying a home. I am convinced that you will find her to be a real pleasure to work with. 


Have you considered Real Estate Investing
If so, check out these pins.
  

If you are looking to SELL A HOME, BUY A HOME, or INVEST IN REAL ESTATE, give me a call at 404-857-2508. Let's see if we are a good fit for each other! 
 
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Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners and the Lead Home Stager with Heart of Decor in Georgia (virtual services available). She prides herself in being a guide to her clients and finds fulfillment in helping them achieve their goals.

Direct Phone: (404) 857-2508 
www.SoldbyNat.com Email - Facebook - Twitter - YouTube

Tuesday, March 10, 2015

Invisible, Odor-free and Potentially Hazardous

iStock_Radon-200.jpgMost people’s first introduction to Radon is during the inspections of a home. It can be as much a surprise to a seller as it is a buyer. Radon is an invisible and odor-free, cancer-causing radioactive gas.

Radon can get into a home through cracks in solid floors, construction joints, cracks in walls, gaps in suspended floors, gaps around service pipes, cavities inside walls and even the water supply.

It is estimated that one out of every fifteen homes in the United States has elevated radon levels. The EPA recommends that you test your home which is the only way to find out if you and your family are at risk. If the level found is 4 picocuries per liter or higher, the EPA suggests that you make repairs or install a radon reduction system. Even lower levels can have health risks.

The EPA’s interactive map is available to find state and county information but still recommends that all homes should test for radon. More information can be found from the EPA in A Citizen’s Guide to Radon.

Test kits are inexpensive and can be purchased at stores like Lowe’s or Home Depot if you choose to do it yourself. If levels indicate a high enough level, you can contact a qualified radon service professional for another test or to mitigate your home. You can get information on identifying these professionals at www.nrpp.info and www.nrsb.org

 

Tuesday, March 3, 2015

Fast and Easy But is it Accurate?

avm tag 2.pngThere are sites all over the web that offer to tell you what your home is worth.  Simply plug in your address and email and you’ll get a value.  It’s fast; it’s easy but is it accurate?

The value is determined by what is called an Automated Valuation Model (AVM) that analyzes public record data with computer decision logic.  Square footage, age, number of bedrooms and location are easily definable objective data.  The challenge is identifying, measuring and comparing the subjective data.

An AVM cannot identify how unique features might add or detract from the value, if the market is declining or why the comparable sales apply or don’t apply to the subject property.  Is a home worth more because it is near shopping or less because it is across the street from a high-traffic commercially zoned property?

Experienced professionals are more likely to make proper adjustments for condition, market appeal and positive and negative influences.

Imagine that you’re going out for dinner and you consult HamburgerAVM.com to tell you how much a hamburger is worth.  It might be accurate based on condiments, vegetables and weight but can it address things like taste, quality, cleanliness, service, convenience or atmosphere.  You certainly couldn’t present the printout to the waiter to negotiate a lower price.

An AVM can be a tool that a homeowner, prospective buyer, mortgage officer, appraiser or real estate agent can use to get a quick idea of price but there are inherent limitations that can only be considered by personal examination balanced with experience in the market place.

Experience and understanding of the subject property and the marketplace are critical to having confidence that a value is accurate.  Any person could go through the same steps to arrive at a value but an experienced, well-trained professional is far more likely to assess all of the variables more accurately.