"Parkersburg's REALTOR® of the Year
2000"
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TABLE OF CONTENTS:
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Can You Afford That House?
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Feng Shui Your Way to a Fast Sale
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Purchase Your First Home with Confidence
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Clean Smell Helps Sell
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Perfect Timing - When to Show
- RECIPE
of the MONTH - Baked Apple Dumplings with Sauce
According to the Federal Housing Administration (FHA), depending on the current debt ratio, most people can typically afford to pay 29 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is $4,167. Twenty-nine percent of that is $1,208.
Although this provides you a starting point for budgeting for homeownership, don't forget the other housing expenses you'll incur when determining if you can afford the house you want to buy.
Utilities
The most obvious of additional housing expenses are utilities—gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.
Taxes
As a property owner, you are responsible for property taxes. The rate will vary from city-to-city. In our community, the tax rate is (insert %) percent. That means for a home with a market value of $150,000, yearly taxes will run (insert dollar amount). To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.
Maintenance
With homeownership comes upkeep. You'll want to set aside a small amount each month to pay for those "rainy day" repairs such as painting, plumbing, and carpet cleaning. The amount you budget will depend on the age of the home, as older homes tend to require more repairs because the appliances are older and may not be under warranty. Don't forget about seasonal maintenance, including lawn care, window cleaning, pest inspections, and gutter cleaning. And if you live in a home long enough, there are inevitable repairs—the roof, furnace, and appliance replacement.
Insurance
To protect yourself financially, in case something happens to your property or its contents, you'll need homeowners insurance. Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred dollars to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance. In addition, if you want broader or higher coverage for your collections or high-ticket items such as computers, jewelry, and artwork, you may want to purchase an endorsement/rider to your homeowners policy.
Remodeling/Upgrades
Whether you buy an older home or have one newly-built, there are going to be improvements you want to make. So, you need to consider remodeling and upgrading costs as well when determining your housing budget.
Consider: the average cost to remodel a 25+ year-old bathroom in 2004 was $9,861, according to Remodeling Magazine's annual Cost vs. Value Report. This includes materials, labor and subcontracting fees.
Even the cost for paint, light fixtures, window treatments, flooring and decorative cabinet knobs can begin to add up. However, having a home improvement fund will help lighten the load.
By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.
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Feng Shui Your Way to a Fast Sale
Reducing clutter in a room can be an overwhelming task for many sellers, which is why many REALTORS® recommend the traditional Chinese practice of feng shui.
The basis of feng shui is to arrange items to harmonize with spiritual forces. The ancient practice hit mainstream America several years ago, and now real estate professionals are hopping on the harmonizing bandwagon. The idea is that potential buyers may feel more comfortable and happy in a home that is arranged ŕ la feng shui.
Don’t fret if your home’s front door faces west instead of east or is more southwestern than Asian. Part of selling a home is selling a feeling that buyers have about the space. Creating a little Zen in your den will help raise its chi — and the possibility of a sale. Here are a few tips to help bring a bit of feng shui into your home:
* Simplicity Sells. Remove excess clutter and knickknacks from the room. Potential buyers feel uncomfortable and cramped when surrounded by an abundance of belongings that are not their own.
* Look Toward the Light. Natural sunlight creates a feeling of warmth and happiness. Make use of all windows that bring in the sunlight by pulling back the heavy drapes and raising the blinds.
* Yin/Yang. Place candles and potted plants around the room to create a feeling of balance with nature. When it comes to selecting a type of plant for the room, choose those that have round leaves to create a feeling of completeness.
* Come-in, Chi. Opening the windows for at least 20 minutes a day lets in fresh air (and chi), reduces odor and brings a feeling of fresh energy to the space.
* Pack up the Pumas. An accumulation of shoes by the front door can be very uninviting to newcomers. Gather up your family’s footwear and store it out of the way. Walkways to and from the front door should always be clear and welcoming.
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Purchase Your First Home with Confidence
If you are making the transition from renter to homeowner, you're not alone. In 2004, 40 percent of homebuyers were purchasing for the first time, according to "The 2004 National Association of REALTORS® Profile of Home Buyers and Sellers."
With interest rates at all-time lows and a booming real estate market, now's a good time to purchase real estate. However with the prospect of making one of the largest investments you'll ever make in your life, you can easily become overwhelmed. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Will I make smart home buying decisions? If you go into the process prepared, your first purchase can be a good experience.
Resources - Before starting out, educate yourself on the process. Check your library or local newspaper to find a homebuyer seminar that you can attend. The U.S. Department of Housing and Urban Development has an entire section on its website "www.hud.gov ". devoted to homebuyers. It has a list of common questions of first-time homebuyers, information on mortgage and home-buying programs, access to housing counselors, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Other informative sites to check out are www.ginniemae.gov , www.realtor.com and www.prudential.com .
Your real estate professional is also a great resource. Don't hesitate to let him or her know that you are new to the process. They will expect you to have questions at each step-from house hunting, to making an offer to the closing.
The costs involved in the purchase of a home can be overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.
Affordability - By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities, and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.
Mortgage payment - Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage where there are multiple offers for a specific property. In addition, the fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.
Down payment - The down payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time homebuyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down payment. Your real estate professional will be able to explain the different options available to you.
Making offers - Don't feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Above all, remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.
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Clean Smell Helps Sell
Don’t discount the power of your senses. For years, retailers have benefited from pumping pleasing, odor-neutralizing scents into their stores. Appealing scents can help home sellers as well. Eliminating odors that can be off-putting to potential buyers and creating an ambiance of comfort can make any home worth a second look.
Freshen Up
Before your home is shown, run a lemon through the garbage disposal to neutralize any odors and leave the kitchen area smelling fresh. Or try sprinkling cinnamon powder or vanilla extract on a cookie sheet and warming it in the oven. The subtle, homey scents will help create a comforting ambiance that potential buyers will feel and enjoy.
Smokers’ Delight?
For non-smokers, even the smallest hint of cigarette smoke can be a deal breaker. Fresh paint and professionally cleaned upholstery, combined with air filters and fresheners, will help keep non-smokers interested in your house.
Pet Protection
If you have pets, consider thoroughly vacuuming and shampooing the carpets and furniture to remove excess fur, stains and smells. Keep the kitty litter boxes clean. Once the carpets have been cleaned, keep your pets confined to certain rooms to preserve the fresh smell while the house is on the mark.
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Perfect Timing
When it comes to being kicked out of your home for a showing, there’s no such thing as an ideal time. But some hours are clearly more convenient than others.
Before you even sign your listing agreement, make sure to tell your agent when your home will be ready for showings and explain what times are off-limits. If you have young children, for instance, you might want to cut off showings at 5 p.m. on weekdays. If you work late and like to have your mornings at home for coffee and reading the paper, ask your agent not to start morning showings before 9.
But even after you’ve articulated your preferences about show times, keep in mind that the most flexible sellers are often the ones who close the deal fastest. You can set time limits, but then you’re limiting the chances of selling the house. It’s common for an interested buyer to want to return to see a house at night or check the noise level at different times of day, so it is in the seller’s best interest to be accommodating.
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RECIPE
of the MONTH – Baked Apple Dumplings with Sauce
2 – Cups of sugar
2 – Cups of water
1/4 – Teaspoon cinnamon
1/4 – Teaspoon nutmeg
1/4 – Cup of margarine or butter
6 – Apples, pared and quartered
2 – Cups of flour
1 – Teaspoon salt
2 – Teaspoon baking powder
1/2 – Cup Crisco
1/2 – Cup milk
Sugar
Cinnamon
Nutmeg
2 – Tablespoons margarine, melted
Combine the first 5 ingredients in a small saucepan and bring to a boil.
Let simmer while preparing the apple dumplings. Sift together the remaining dry ingredients
and cut in the Crisco. Add mile at once. Stir until moistened. This will be like a biscuit
dough. Roll out dough to 1/4 inch thickness and cut into six 5 inch squares. Arrange 4
pieces of apple on each square. Sprinkle with sugar, cinnamon, and nutmeg; dot with margarine
and fold corners to the center. Pinch the edges together and place one inch apart on a
greased 9x13 inch baking dish. Bake at 375 for 10 minutes. Pour sauce over dumplings and
continue baking for 30 minutes. Good served warm or cold with ice cream. Serves six.
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The information in this newsletter is solely advisory and should not be
substituted for legal or financial advice.
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Copyright © 1997 - Jeffrey K Mahone - All rights reserved.