Buying vs Renting
No matter what you are currently paying for rent, your total cash outlay over a period of several years, will probably add up to a much higher total than you may have realized. The following chart shows how quickly the rent payments you are making adds up. We are no counting what you would have earned if this money was invested instead just added your monthly rent for the different period of time:
With the money you are currently spending on rent, you could be building equity in your home. Keep in mind, too, that over the years your income most likely will increase faster than any increase in your mortgage payment. Rent payments, on the other hand, tend to increase, right along with your paycheck if not faster.
Other points to keep in mind when you own a home: Homeowner Tax Advantages and Home Value Appreciation.
You can make ownership a reality
Take a good look at your personal financial situation in comparison to housing price trends and mortgage plans available in your community. You will probably discover that you are closer to home ownership that you had realized. Buying a home is probably one of the biggest investments you will ever make.And when it’s your first home, it is specially important that you seek qualified assistance. Your local real estate agent or broker has the experience and expertise to guide you through the maze and help you find, and purchaser, the home of your dreams. A true professional will also have a network of reliable service provider such as credit counseling and credit repair, mortgage brokers, inspectors and everything you might need before, during and beyond the process.
For any of your real estate needs feel free to contact us for a private and confidential appointment to find out where you are, where you want to be and how we can connect the points to bring you there.
Seven Gables Real Estate
Cal BRE# 01988945
Providing value to Buyers and Sellers since 2005
Most siding material require little to no upkeep. Brick, engineered wood, stone (both natural or manufactured), and fiber cement are thought to last for the life of a home, according to a report released by the National Association of Home Builders and Bank of America, “Study of Life Expectancy of Home Components.” But Frank Leash, executive director of the American Society of Home Inspectors, offers some pointers to be shared with home owners to help them protect their siding from damage including:
Keep foliage away: Make sure no plants are growing on the siding. “Plants can trap moisture and allow insects and animals to infiltrate,” Leash says. “You want the siding to be exposed to the elements.”
Watch where water may be getting in: Check areas around the windows and doors to see if water is getting in. Moisture can linger and eventually cause rotting or fungal growth. Make sure those areas have been properly caulked or tuckpointed to prevent seepage.
Keep the gutters cleaned: Many home owners think they only need to check for clogged gutters in autumn when leaves are falling. A neighbor’s stray tennis ball, a bird’s nest, or even squirrels stocking up for winter can quickly become a serious problem. If water backed up in your gutter, it could damage your siding too, Lesh notes. Have gutter checked at least twice a year. Or better yet, clean them four times a year to prevent back-ups.
Whether you’re buying or selling a home, one question that’s always front and center is the price: How much is a home worth? That’s a tricky question to answer, but probably the best starting point is to know a home’s fair market value, or FMV.
A home’s fair market value is the price it would sell for in a perfectly logical world—one where both buyer and seller are acting of their own free will (in other words, they aren’t desperate to strike a deal), are reasonably aware of a home’s good and bad points, and could just as easily choose a different house that suits their needs better.
In such a world, market forces reign. Buyers and sellers negotiate up or down from their various positions and agree on a home’s price. Deal done. All is good!
Fair market value vs. market value
A home’s fair market value is similar to a home’s market value—what it would fetch on the open market—but is used in specialized circumstances where the concept of fairness is important to evoke so that the home’s price carries more weight.
“FMV is typically brought into the real estate conversation whenever a sales price is being scrutinized,” says Robert Pellegrini, a real estate lawyer in Boston. Here are some circumstances where you’ll likely hear about a home’s fair market value:
- Property tax assessments.
- Home insurance claims—if a house suffers damage from a fire, flood, or other disaster, the insurer will look to FMV to determine compensation.
- Refinancing a home loan—the bank will typically use a home’s fair market value as a measure of how much the home is worth to determine refinancing terms.
- Estate sales—if the homeowner has died and a relative wants to purchase the property, the court will look at FMV to determine a price.
- If the government wants to “buy out” a homeowner to use that land to, say, build a highway or school, the owner is typically entitled to be compensated at fair market value.
- Short sale—this is when a home is worth less than the owners owe on their mortgage. In this case, the owners must persuade the lender to let them sell the home for some amount that is less than the balance of the home loan they still owe. “When a bank does allow this, the bank wants to make sure that the short-selling purchase price is at least FMV for the property,” says Pellegrini. Because, of course, no one likes a total loss!
How is fair market value determined?
“Let’s be clear about one thing: There is no exact mathematical formula that calculates fair market value,” says mortgage lender Michael Sema, CEO of Get a Rate. “Information is key, and the best way to obtain a home’s true FMV is … by hiring a professional licensed appraiser.”
To determine fair market value, a licensed appraiser gathers and measures the qualities of a home, such as its size, condition, neighborhood, and other factors. This information is used by lenders, attorneys, insurance companies, and other agencies to help determine a fair price.
All that said, no one ever proclaimed that life (or the housing market) is fair—which is why homes may often sell for an amount far different from this figure.
If, say, a family is desperate to buy a certain home because it’s in a coveted school district and their twins are entering kindergarten that fall, they might be willing to pay substantially over a home’s fair market value. Or if a home seller has fallen ill and has to sell quickly to cover medical bills, he or she might be willing to settle for less than a home’s FMV.
But in an ideal world, fair market value is the benchmark, and probably the closest number to what a home is truly worth.
At its heart, fair market value helps prevent home sellers and buyers from being taken advantage of, and is a good thing for both parties. And it’s worth knowing the term in case you feel like someone’s stance on a home’s price is off base. Just point out, “I think that’s pretty far above/below this home’s fair market value.” Who knows? If you’re right, this argument could persuade the seller or buyer to budge.
Selling a home is all about presentation, which is why home staging is such a big deal. A vase of flowers, a bowl of fruit—such details can really draw buyers in. And yet on the flip side, certain items lying around your home can kill any potential for a sale.
While you might think common sense would prevail and prompt people to hide this stuff, we think it’s worth reminding y’all, just in case. Before showing off your home to buyers (or any guests for that matter), make sure to stash these 10 things out of sight.
Let’s state the obvious, shall we? Even if it’s legal in some states, not everyone approves of marijuana. Get your 3-foot bong off the coffee table and into storage, clean out the ashtrays, and stash the rolling papers. Now is also a good time to remove the “Yes we cannabis!” posters and your stack of “High Times” in the bathroom, too.
Mousetraps and roach motels
There’s no better way to say “This place is crawling with critters!” than to display these sure signs of aggressive pest control. Just tuck those items underneath the fridge, and pray the things they’re trying to catch don’t scuttle out when prospective buyers walk through the door.
Cameras by the bed
If you and your partner like to make your own private videos, more power to you. Just remember to move the camera.
Any kind of sex stuff, honestly
Personal massagers, oils, condoms—pack ’em up in a box and stick it deep in your nightstand or closet. Yes, it may sound obvious, but we’ve all stumbled across these items in someone’s home at some point. Awk-waard!
We understand hunting is a hobby, and we’re not here to judge you (not much anyway). But multiple animal heads on the wall and an upright stuffed badger chillin’ in the parlor can give an otherwise great-looking room a creepy or foreboding vibe.
For buyers, a new home often means the start of a new life, or an infusion of new possibilities. Dead animals, well, they can impose a feeling of dread that can linger throughout the entire showing (and perhaps long after). And those buyers who straight-up hate hunters may make a snap judgment not to deal with you. So even if you stuffed the beloved family pet, just keep it out of sight.
Firearms and other combat weapons
If you’re a gun aficionado, make sure your rifles are tucked away in a safe. For other weapons—like combat knives, throwing stars, swords, great axes, spears—try and clear them from view, or at least put them behind glass. Preferably in a cabinet that locks.
Rooms stuffed with porcelain dolls, celebrity shrines, human skulls, a vast collection of disturbing cinema—these are things that could put buyers off. Way off! You want them to envision their own lives and family in the house; showcasing a collection of something that could be in a museum of medical oddities will only make people think of “Silence of the Lambs.”
With a particularly contentious political season in full swing, you should get rid of any kind of party affiliation or presidential endorsement. The last thing you want to do is bring politics into a home sale, or have that topic come up at closing. Do a political purge, and get rid of any party signage.
You’re great, really. But when you’re showing your home, you need to make yourself scarce. Seriously. It’s something real estate agents really hate.
Not the movie—we’re referring to your loved ones. An urn carrying ashes of the deceased framed by family photos is a touching tribute, but unfortunately not something a lot of buyers want to see. You don’t have to sweep your loved one under the rug, but you may want to temporarily relocate them when home buyers come around.
When thinking of selling contact a professional that cannot advise you the best way to show your house but has connections with staggers at an affordable price to assist you preparing the house to bring you the most money the market allows. Call us at 714-698-9655 we are a full service real estate with stagers, professional photographers, a marketing division and much more.
If you’ve ever looked into buying a condo, you’ve noted that, in addition to your monthly mortgage payment and property taxes, you’ll be required to pay monthly condo fees. So what do these fees cover?
Generally, they pay for the maintenance of any amenities outside your personal living space that you share with your neighbors—like, say, the hallways, parking lot, and yard.
“Condo fees are your percentage share of the costs to run the building as a whole,” explains Janice Pynn, president of Simerra Property Management.
This is good since odds are, you bought a condo to avoid all the maintenance and yardwork that come with owning a regular house. And in case you think your condo fees are too high, know this: No one pockets a cent of your checks or is getting rich off condo dues.
“They are not a profit source for building management; in fact, each building is registered as a nonprofit corporation,” Pynn points out. In other words, these fees go solely toward enhancing the value of your real estate, which is a good thing!
The breakdown: Condo fees and costs
Condo fees typically range from $100 to $700 per month, varying greatly based on what they cover. At one extreme, Hollywood’s hottest luxury condo building, Sierra Towers, offering an array of luxury amenities like 24-hour concierge service and valet parking, may charge residents up to $4,000 per month. (Suddenly that $250 fee you’re being charged feels a bit more reasonable, doesn’t it?)
Here are the services and amenities you can expect your condo fees to cover:
Interior maintenance: Condo owners share the cost of maintaining common building areas like parking structures, storage rooms, laundry rooms, game rooms, fitness centers, saunas, and hallways, as well as mechanical systems like heating, cooling, electric, gas, plumbing, and elevator maintenance. If a crew comes regularly to clean the common spaces, their fees are also included.
Exterior maintenance: Condo owners also share the cost of exterior common areas like fences, walls, gates, pools, landscaping, window cleaning, and seasonal expenses like snow removal, winterizing, and cleaning out rain gutters. If a gardening crew comes regularly to take care of the landscaping, their fees are also included.
Security: This could range from cameras at the entrance to full-time guards patrolling the grounds. If visitors have to be buzzed in to the building, this system will be covered by your condo fees.
Utilities: Most developments’ condo fees cover utilities such as water, sewer, and trash. Some buildings even include heat, electricity, cable, and Wi-Fi. Remember that the more utilities covered, the higher your condo fees will probably be.
Insurance: Most condo fees include a homeowners insurance policy that covers exteriors and shared common areas. Depending on where the condos are located, the insurance policies might also cover flood and/or earthquake damage. The nice thing here is that condo owners need only to purchase insurance policies that cover the interior of their home and their possessions.
Reserve fund: There are expenses that don’t come up on a monthly, or even an annual, basis that will need attending to, so a well-managed condo board will charge owners a certain amount per month that will go into a reserve fund. It would cover things like paving, reroofing, replacing water heaters, exterior painting, hallway and lobby flooring and redesign, and more.
What is an assessment?
In addition to your monthly condo fees, special assessments might arise. Every once in a while something big (e.g., a roof or an elevator) gives out, and there aren’t enough reserve funds to cover it. In that case, the condo owners will have to pay an extra fee for these additional expenses, typically tacked on to the usual monthly condo fees in small amounts until the assessment is paid off.
At times like these, it’s best to remember that, as with any type of homeownership, unforeseen expenses arise, and making the necessary repairs is in your best interest. In other words, you get out what you put in.
When buying a condo give us a call and let our expertise work in your favor. Noemi cardoso @ 714-698-6655.
Mr. Pentreath turned to a technique designers use on collections of similarly sized art (or large images broken into pieces): Framing each panel identically, he butted them to form a tight grid. This kept the presentation compact and imposed a pleasing geometry over the unruly arch of the Thames. (Antique maps of this size often come ready-made in panels, and Mr. Pentreath doesn’t recommend taking scissors to an image to achieve this look.)
The grid technique is arguably more surprising when you’re framing individual but related images. This refreshing alternative to salon-style hangings has major impact but captures viewers’ attention more quietly than the “trendy, heroically-sized works” that “consume the viewer as well as the room,” explained Manhattan-based designer Jeffrey Bilhuber.
“The individual images draw you in,” said another New York designer, Richard Mishaan,“and when you stop looking closely, they become a wallpaper.” He hung 12 photos by Massimo Vitali in a client’s dining nook. The shots—from crowded Italian beaches to Alpine resorts—share an overexposed, sun-faded quality that unites the group. Any thread, such as genre or color scheme, can unify botanical prints, 19th-century silhouettes, even vintage wallpaper samples.
Explaining why he massed a client’s collection of etchings by German artist Thomas Schütte, Mr. Bilhuber said, “Having them in this grid format creates a dialogue.” Dispersing them throughout the house breaks up the narrative, diminishing their impact.
Thin, equal-sized frames work best. Matting can compensate for slightly different sizes of art. And a second set of eyes will help make sure the arrangement coheres.
Downsizing is completely acceptable. “A 10-by-10 grid of 1-inch-square intaglios,” said Mr. Bilhuber, “could be powerful.”
That’s why coming up with a real answer to this question is important if you want to sell your home—and pinpoint the right asking price. If not? It’s kind of fascinating to see how much your investment may have appreciated over the years. But how do you find this magic number? Here are some ways to figure it out.
Get an online home value estimate
One good starting point is to enter your address onrealtor.com®, which will instantly price your home based on data such as its square footage and recent home sales in the area. But while this will help you get a ballpark idea, remember that there’s no substitute for the expertise of a Realtor®, who has access to a vast database of information to help you home in on that number.
Tap a real estate agent’s expertise
Real estate agents specialize in answering the question “how much is my home worth?” for their clients, which they do by running a comparative market analysis. This process involves finding similar properties (“comps”) that sold within the past 90 days.
The most accurate comp is a home that’s nearby, similar to yours in square footage, and has the same number of bedrooms and bathrooms. (Ideally, the lot size is also equivalent, but that’s more important in rural areas, where homes are set on multiple acres.) Once your agent finds a few recently sold comps, then she averages the purchase prices and uses that figure as a baseline for how much your home is worth.
Size up the competition
From there, your agent will size up the current competition.
“You should always look at what other properties are listed for in your community,” says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis. For instance, “if your neighbor’s home is listed for $400,000 and you want to list yours at $500,000, you’d better be able to clearly explain the price difference to prospective buyers.” Or else adjust your price accordingly.
Consider how buyers shop
Sellers need to consider how home buyers search for properties online. Let’s assume your home’s fair market value is $503,000.Yet Dossman points out that many people search for homes on the web using $20,000 or $25,000 increments. The upshot? Listing your home for $503,000 could prevent your listing from being seen by buyers who are searching for homes in the $475,000 to $500,000 bracket, so knocking off $3,000 for an asking price of $500,000 might generate more traffic—and maybe even a bidding war to push that price above your expectations.
Also, avoid listing your home at an odd dollar figure (e.g., $999,000 instead of $1 million). While retailers and as-seen-on-TV purveyors of the Miracle Mop effectively price products ending in $0.95 or $0.99, Dossman says the same approach doesn’t apply to real estate: “It’s hard to justify awkward pricing. It’s just confusing to buyers.”
Try to remain objective
“Sellers always think that their home is worth more than it is, because of their personal attachment,” says Dossman. Indeed, it’s hard to boil down years or decades of memories in a home to a number. It’s also hard to accept that your home is worth less than what you paid for it, or that you can’t just tack on the price of the renovations you’ve made. On average, renovations will reap you only a 64% return on investment, although that varies based on the type of upgrades you’ve made.
Why it’s important to price your home right
Price your home too high, and it could wind up sitting on the market. That’s a big problem, because a property that goes unsold for an extended period of time (e.g., more than 30 days) often becomes stigmatized.
“Buyers get suspicious when they see a house that’s been on the market for a while,” says Dossman. “They think that something is wrong with the home.” If that’s the case, the seller may have to make a significant price reduction—sometimes dropping the price below market value—in order to nab a buyer.
Pricing your home below market value in an attempt to stir interest and generate multiple bids can also backfire. Granted, the strategy that could work in a hot seller’s market, but underpricing your home frequently leads buyers to assume that your home is worth only its list price, says Dossman.
Your best bet: List your home close to what it’s really worth—aka its market value. When in doubt, turn to your real estate agent to help you cut through the haze and help you pinpoint the right price.
When thinking of selling our home, contact us to receive a FREE detailed market analysis of your area, and have a closer look of what you local real estate market looks like. For periodic information in your zip code, please email me at firstname.lastname@example.org with your zip code and email and I will send it to you a monthly information on all the real estate activities.
So you think you’re finally ready to make the jump from renter to homeowner? Awesome! In this exciting but admittedly scary time, you might be inclined to turn to friends and family for advice—especially if they own homes.
But beware, dear home buyer of the future: Those close to you might not be the experts you think they are. You could be heeding bad (albeit well-intentioned) advice without even knowing it.
So we’re here to bust the most common misconceptions about home buying so you can do this thing the right way. Because this is what we do.
Myth No. 1: The first step is looking for a house
Perhaps you just want to get a feel for the area. You know, have something in mind before you sit down with a Realtor®. I mean, you’re not really looking yet, right?
Stop right there. Even if you think you’re just browsing, you run the risk of setting your heart on something, only to have it broken.
“A buyer might be viewing homes that are in a higher or lower price range than what they are qualified for,” says Connie Antoniou, a broker associate in Barrington, IL.
Browsing is always fun, but when it comes to serious home-buying work, you need to make sure your credit is in top-notch shape before you get started for real. Also, don’t forget to get pre-approved for a mortgage before you embark on your home-buying journey. This will determine what your budget is.
Myth No. 2: A 30-year mortgage is the best option
If you think that the longer you agree to invest in your home, the cheaper the mortgage payments will be, think again.
Most people opt for 30-year fixed-rate mortgages and for valid reason: Monthly payments for a 30-year fixed-rate mortgage are lower than its 15-year counterpart.
But consider this: You could end up paying more during the life of the loan if you pick the 30-year option instead of the 15-year mortgage. That’s because essentially, with a 30-year loan, you’re borrowing the same amount of money for twice as long—at a higher interest rate.
“If you have $1,000, would you rather put that toward your monthly payment for your house or is there a better place for your money?” asks Samantha DeBianchi, Realtor and founder of DeBianchi Realty in Florida. “If you’re more focused on paying down the house versus the interest, a 15-year option is great.”
No, we’re not saying the 30-year option is a bad one. But keep an open mind toward other loan plans, including an adjustable-rate mortgage. If you aren’t set on staying in your home for the long haul, this could be an ideal mortgage for you.
Myth No. 3: Your down payment must be 20%
Sure, a 20% down payment is ideal if you want to avoid that pesky private mortgage insurance otherwise known as PMI. But many lenders will be glad to offer up home loans with 10% or 5% down—as long as you’re willing to foot the monthly bill for PMI. Or you can skip the conventional loan and head to the Federal Housing Administration for a government-backed loan with only 3.5% down, if you qualify.
In fact, there are thousands of options for down payment assistance. And while many programs are geared toward low-income home buyers, you don’t have to be destitute. There are lots of different ways you can qualify for help on the local or federal level.
Myth No. 4: The only up-front cost is a down payment
As if! For one thing, the seller might determine you’re responsible for closing costs, which can be anywhere from 3% to 6% of the purchase price—and those costs can change drastically depending on your state. And don’t forget the slew of fees, taxes, and other costs for inspections, credit reports, insurance, among others.
Myth No. 5: You can’t buy with bad credit
If you’re looking to get a conventional loan, having bad credit might give you a full stop. But FHA loans require only a 3.5% down payment and borrowers with low credit scores—even under 600—can qualify. Keep in mind, though, that FHA loans may look great at first, but they definitely aren’t for everyone.
Myth No. 6: You don’t need a home inspection
You might be tempted to believe this tall tale, especially if your housing market is hot and you’re worried your dream home could be sold in a split second to someone else whowaives the home inspection.
But beware: Sellers are banking on your skipping this crucial step. It means you’ll get the home as is, including any and all problems that come with it. And sometimes those problems aren’t exactly visible.
“Just spend the money for a really thorough inspection, because in the long run it can save you a lot of money and time,” DeBianchi says.
Myth No. 7: The asking price is set in stone
Much like buying a car, the offer you make on a house does not need to be the asking price. If you have stellar credit, pre-approval, and a down payment ready to go, sellers might be more willing to negotiate than to wait for another, possibly less awesome, buyer to come around.
Plus, if your home inspection (you know—the one you got because you’re smart) turns up issues, you can use those to your advantage in your negotiations.
Myth No. 8: You don’t need an agent
You might think you can do this home-buying thing solo. After all, isn’t that what the internet is for?
This is where we tell you to resist the urge to DIY your first home purchase and call a Realtor instead. They’re pros who bring expertise to the table—everything from negotiating chops to turbocharged searching power (yes, they have tools to see stuff you can’t). Trust us: They know more than you do.
Myth No. 9: Schools don’t matter if you don’t have kids
We get it: You love the house, it’s in your price range, and you want to move fast. But there’s more to it than that.
The neighborhood you choose matters—both now and later when you might consider selling. Even if you don’t have children, good schools are a sign of a good neighborhood. Also, check out the area’s walkability, your commute to work, and any other features that would make the hood a good fit for your lifestyle—now and a decade from now.
For all of your real estate needs and to make sure you are working with someone who have YOUR best interest in mind call us for a personal interview at 714-698-9655
Painting a room is one of the quickest and most impactful ways to give your home new life. The problem? Most homeowners who hire professional painters will pay somewhere between $380 and $790 for a 10-by-12-foot room. Ouch! Going for a whole house refresh? That could cost between $941 and $2,431 on average, according to HomeAdvisor’s Home Interior Painting Cost Guide.
You’ll slash those costs by doing it yourself, but beware: A bad job could launch you into a vicious cycle of painting again and again (and again) to cover up mistakes. But it doesn’t have to be that way if you learn how to properly wield a brush and roller.
Here’s how to paint a room in a way that will reap fantastic results.
Buy the right materials
Set yourself up for success by buying the right equipment. Aside from paint, of course, you’ll need paintbrushes, rollers, trays, tarps, and painters tape (no, the edger tool won’t cut it). Don’t skimp on what you buy.
“Really cheap paintbrushes do not work. These cause more problems by not applying the paint properly,” says Dwayne Siever, founder of the Real Milk Paint Co. “Buy a higher-quality brush or foam brush, and you’ll save yourself a lot of aggravation.”
Test your paint
Before you jump in and lay down the first coat, paint a sample on the wall and give it time to dry. You want to make sure the texture and color work well in the room, and both can change from how it looks when wet.
To save yourself time, money, and aggravation, buy two or three sample-size paints in varying shades and finishes (paint stores will mix any shade you want for a small fee), and try them all on the wall at once.
Prep the room for painting
Got your paint all set? Hold on, partner—you still have some more prep to do. Start by covering any remaining furniture and the floors with plastic tarps or sheets you don’t mind ruining, and don’t be stingy.
“Be sure to cover the whole floor, rather than moving a painter’s cloth around the room where you’re painting,” says Siever. Moving a dropcloth will interrupt the painting process, which is not good if you want a seamless paint job. Plus, it may get folded and end up smearing paint on the surfaces you’re trying to protect.
Next, run painters tape along the edge where the wall meets the ceiling, making sure the corners are fully covered. Then clean the walls; the cleaner the surface, the smoother your new paint job will be.
“Clean dirt off with TSP (trisodium phosphate) or any other residue-free cleaner,” says Siever. “For painting over glossy paints or surfaces, sand lightly with 220 grit for better adhesion.”
Paint the room
It’s finally time to paint! Just make sure you do the edges first, top to bottom, with a foam brush. Once you’re ready to work on the main part of the wall, use a roller and apply gentle pressure. Keep it slow and steady.
“Rolling too fast will spray paint around the room,” says Siever.
And don’t stop or move to another section before you reach the borders you painted earlier.
“When you are painting a wall you need to keep a wet edge. Do not stop in the middle of a wall,” says Siever. If you stop and come back later, you’ll end up with uneven patches.
Once you’re done, leave it be. Wait for the manufacturer-recommended amount of time before touching the wall or removing the painters tape. We know you’re eager to see your fantastic paint job, but jumping the gun will cause smudges. Wait it out for the best results.