According to the U.S. Census Bureau in 2016, more than 42 percent of people said they moved for a housing-related reason. Many of them either wanted a new home or a better apartment. Other reasons people cited for moving include family and employment-related reasons. “The decision to move can be personal and contextual. What causes one person to move might not be enough to convince another,” says David Ihrke, a survey statistician in the Journey-to-Work and Migration Statistics Branch. So whether you're looking for a new job in another city or just plain sick of your neighbors, there can be plenty of good and practical reasons why it could be time for you to move. Here are 12 common signs to help you decide whether it’s already time for a fresh start: 1. You need a bigger space. This is a common dilemma for many first-time homeowners who live in starter homes. You don't remember your house to be this small in the first place, and it served you well. But now you realize you just don’t have that much storage space, things are getting a bit tight in your household, and you’re now often waiting in line for the bathroom (especially in busy weekday mornings!). If you find yourself in one or more of these situations, then it’s an obvious sign your house has become too small for your needs and that it’s time for you to move. Especially if nothing has changed even after you cleared out your clutter and reorganized your home. A remodel can also be an option, but if you find it’s not even possible in your current home and it can even be costly, then it’s high time you move to a bigger place. 2. Your family is expanding. If you’re planning to have more kids and/or pets, it might make more sense to move to a larger home to accommodate your growing family. Because it will always come to the point when your sweet and nice two-bedroom bungalow won’t be able to carry the load anymore. You’ll definitely be needing more space—whether it’s a big backyard, individual rooms for your children, extra rooms for work and play areas, extra bathrooms, and even a bigger kitchen. Because of these reasons, selling your current home to move to a bigger one is often a logical solution. Also, there can be various aspects you want to add as you begin a new house search, like moving in a great school district and near pet-friendly parks. 3. There’s just too much empty space. Another scenario: your grown-up children have moved out, leaving you and your spouse in your empty nest. There are too many unoccupied rooms that you don’t need. Yet, you’re having trouble keeping up with the maintenance and demands of your spacious home. For empty nesters, it can be a fairly difficult decision to move out. After all, every part of your humble abode holds too many fond memories. However, downsizing is also a great reason to sell. Decluttering and moving to a smaller home can also be rewarding in many ways. There will be lower maintenance costs, lower utility bills, and less time cleaning the house, which means you’ll have more time to do what you love and engage in new hobbies. 4. There’s a change in your relationship. A change in your relationship status might also mean a time for a change of place. If things are going well with your significant other and you decide to move in together, your humble condo or apartment may already be too small for two. You and your partner will definitely need a bigger space for your clothes and other belongings. If your closet space is barely enough for your own clothes, then there’s no way it can accommodate your partner’s as well. Otherwise, if the relationship is getting shaky and you’re both starting to be indifferent (we’re sorry to hear that), then it may be time to reconsider and move out for good. 5. Other family commitments In life, there can be various family commitments that will require you to make a move—maybe you need to take care of a sick or aging parent, your partner needs a job transfer, or you really need to move near your in-laws so they can help take care of the kids while you work. Since it’s family-related, just try to look at the brighter side of things and see what you can look forward to in your potential relocation. 6. Your financial situation changed. Whether it’s turning for the good or for the worse, a change in your financial situation will also prompt you to decide if it’s already time to move. If you’re always stressing out about utility bills and a hefty mortgage and it’s taking a toll on you and your bank account, then moving to a smaller and more affordable home may put you in a less stressful financial situation. It may also be an only option if you were unlucky to have lost a job or lose a significant amount of money. Likewise, it’s very fortunate if your financial standing has improved—especially if your career is steadily improving, you received a raise, or you landed a higher-paying job. It’s also a time to think whether you want an upgrade and live in a nicer home in a better neighborhood (perhaps it’s something you’ve always dreamed of and worked hard to achieve). While you still have the options to renovate your current home, if those renovations will actually cost you more and will give you problems along the way, moving in a new home is a better idea. You may also find that there are features that you can’t easily add in your current home however you want to, like a bigger backyard, central air conditioning and heating, or a modern kitchen. 7. It would cost you less to move to a new house rather than to keep repairing your current home. And speaking of renovations, it might be helpful to take a step back and examine your finances if the work you’re putting in is already too much. Despite the fact that you have already put too many repairs and DIY work in your beloved home, it’s now time to think how it affects your wallet and your overall stress level. See if the repair costs of your current home are eating up your hard-earned cash and whether it will be more practical to move to a new home that needs less upkeep. It’s especially crucial if you live in a fairly old home and your repair costs are slowly getting out of control. Seriously consider whether the costs already outweigh the emotional attachment you have with it.   8. Your neighborhood is in decline or you just don’t like it anymore. If your neighborhood’s quality is starting to decline and it has lost its former reputation and charm, it can be a very compelling reason for you to move. Anyone who’s experienced the home buying process would have encountered the real estate mantra: location, location, location. Well, the importance of location should not be underestimated even when you’re already a homeowner. It’s now time for you to consider if your once good and welcoming neighborhood is now showing signs of going for the worse—increasing crime rates or a recent spike in police activity, dogs barking loudly at night, unruly neighbors, increased pollution and other environmental hazards. If your neighborhood is already becoming too dangerous and/or unbearable to live in, it might be a good idea to relocate as quickly as possible before it gets harder to rent or sell your place. There’s nothing more important than living in a safe and secure neighborhood. You need to also consider the fact that the value of homes in bad neighborhoods can also decline, including your home. 9. You desire a different climate. If you never seemed to stop complaining about the weather all year round, it’s also a good reason for you to seriously consider relocating. Are you getting tired of weathering the endless cold and snow (and shoveling snow on your driveway) all these years? You’re probably already dreaming of living in a city with a sunny and warm climate. Or maybe you’re already frustrated with the never-ending heat. The thought of living in a new city with a more pleasant climate is a desirable factor for many people to move. 10. Your commute is slowly killing you. If you live far away from work and your commute time is already killing you, isn’t it time for you to consider selling and move? Just think: commuting to and from the office takes so much of your money, gas, and precious hours every day. Your time could have been better spent with your family and loved ones, or in doing more important things. Studies have already established the benefits of a shorter commute to a person’s health and well-being. Moving closer to work will also give you more time for sleep and relaxation. If your current job is looking secure in the long-term run, there’s no other reason why you can’t start a new house search and pack up. 11. There’s a job opportunity in another city. Likewise, getting a new job or the need for a job transfer is also a common reason why people move. Maybe you’ve been given a promotion or an opportunity to further develop your career, or you’re moving into another city where there are more opportunities available for your specific industry. Whatever it is, employment-related reasons remain as one of the most popular and perhaps one of the most exciting reasons why people relocate. 12. You want to experience suburban living. Are you one of the many city dwellers who are already tired of living in the so-called concrete jungle? Then perhaps living in a more peaceful suburb is captivating enough for you to want to move. Many couples and young families choose to move into the ‘burbs every year because of many factors, including safer neighborhoods and tight-knit communities, lower cost of living, and great school districts. Not to mention that houses there tend to have bigger square footage and more outdoor space compared to houses of the same price located in the city.

Let's face it: there’s already a growing number of freelancers, contract workers, and gig economy workers in the U.S. It’s not surprising, given that many people now want to be their own boss or work from their own homes while sitting comfortably in their sofa. In a 2017 survey conducted by Upwork and Freelancers Union, 36 percent or 57.3 million Americans are already working as freelancers. According to a 2017 study by ReportLinker entitled Happy in the Home Office, Freelancers Embrace the Gig Economy, 77 percent of the US working population works in full-time or permanent roles, but at least 26 percent of these employees are likely to become a freelancer or an independent contractor. Although many freelancers or contract workers have the freedom to work whenever and wherever they want, that freedom pays its price when it’s time for them to buy a home. In the mortgage world, lenders can be leery of extending money to people who actually lack full-time employment because they are a bigger risk. Lenders tend to look for those who have a steady flow of income, including a two-year history of employment and the likelihood of that continuing in the next couple of years. And yet, all hope is not lost even if you’re a freelance worker who aspires to buy a home. Here we share with you some of the best-kept secrets to help you prepare for the home loan application process even if you don’t have a full-time job: Proper documentation makes a big difference The number one advice for freelancers and gig economy workers who want to buy a home: organize all of your necessary documentation that will show a solid work history. Prepare all your records, including proof of employment and income, records of your previous work and employers, names and phone numbers of your credible references, credit union statements, tax returns, debt records, proof of assets, and other important documentation. Unlike with typical borrowers, gathering these documents is crucial since you have to work harder to convince a mortgage lender that you can get a home loan. Lenders need to know that you have a reliable income history to assure them that you can actually make your payments. If needed, submit a letter from your client confirming your contractual work, as well as canceled rent checks and paid utility bills. Spend time organizing, compiling and proofreading all of these important documents and then present them as truthfully as possible. It is also advisable to write a brief letter summarizing your case—stating your stability, strengths, and willingness to fulfill your mortgage application. Educate your mortgage lender about what you do for a living Take the time to educate your mortgage lender about what you do for a living to help establish your case. They need to better understand your job, so explain to them what you do in details. Perhaps you could provide any information about your industry, including news articles or social media reviews. You could also provide a letter from your client(s) detailing your contractual work to help you affirm your case. Likewise, having a work history within the same industry or utilizing the same skill sets can also help. Don't forget to talk to your possible mortgage professional about your home buying goals. It’s a good way to maintain a favorable connection with your lender to assure him/her that you’re a borrower who is easy to transact with. Get pre-approved Whether you're a full-time employee or a freelance worker, getting a mortgage pre-approval remains the first step in your journey towards homeownership. However, it’s more vital for freelancers because they may struggle to fully understand their financial standing in the eyes of lenders. Getting pre-approved will help you know if buying a house is even possible, and how you can better prepare for it. The process will let you know how much money lenders and bank institutions are willing to lend you. If you don’t want to get your mortgage pre-approval from a commercial bank in fear of early rejection, try to get pre-approved with your credit union. Credit unions are more likely to lend to buyers who don’t fit the typical mold or those who don’t have a traditional profile, says Curt Long, director of research and chief economist for the National Association of Federal Credit Unions in Arlington, Virginia. These financial institutions also appeal to borrowers with less-than-stellar credit or those who don’t have an excellent credit history. They also offer special grants and programs that appeal to first-time home buyers. Once you know how much you can actually afford, you can use that as a guide on searching for listings that are within your price range in your desired location. Pay off your debt and maintain a good credit score Because of your status as a gig economy worker, mortgage lenders will definitely need to have more assurance that you are financially responsible; that you are qualified for a loan, and that you are a good risk. Carrying a huge amount of debt or having a credit score lower than 620 won't do you any good when it’s already time for you to apply for a loan. Take the necessary steps to get your debt-to-income ratio to zero or as low as possible. Check your credit report and do what you can to improve your credit score and keep it in excellent standing. Prove to lenders that you are a responsible borrower who will be able to repay his/her loan. Show an impressive amount of savings Aside from proving that you are financially responsible for establishing a steady source of income and a solid credit history, you also need to impress lenders by showing that you have a respectable amount of savings. They would love to see that you are able to save money large enough for a down payment. It will also help reduce the size of your loan. While it may mean living a frugal lifestyle, or reducing your usual weekly Saturday night outings to only once a month, just think that every dollar you save will help you get closer to your own house keys. If you want to get started with saving, here are simple tips to help you do it. Hunt only for listings that are within your price range Use your mortgage pre-approval as a guide to only search through listings that are within your price range. Yes, it may come as a little disappointing that you can't get your dream house (but costs twice of what you can afford!). But remember what’s more important: you’re a bigger risk in the eyes of lenders, and you don’t want to be house-poor either. You need to show your potential lender that you’re only looking at properties that are safely within your established budget. If you’ve been paying rent month after month, it’s a good starting point to let your lender know that you can really afford a mortgage. Calculate your proposed mortgage, plus an additional amount for home maintenance and other costs, and compare it to your current rent. If you’ve been paying more in rent—and have been consistently doing so over time—it might help you strengthen your application. Present proof of your recent rent stubs and a letter from your landlord confirming that you’ve been paying your rent on time. It will help you get a step closer to your dream home even without a full-time job. If possible, don't get your mortgage from a commercial bank Once you find your dream home within your budget, you can start the purchase process, and weigh your options on where you will finally be getting your loan. Instead of getting it from a commercial or national bank, choose to finance your loan through a small, local bank or with your credit union (as mentioned earlier). If your credit union has a physical office where you can do your banking transactions and not just online, then it may be a good choice. Credit unions are known for their lower fees and rates because they pass on their savings to their members. However, if your credit union is lacking a brick-and-mortar office, it could cause you some issues at closing. The best thing you can do once you’re all set up is to avoid that. If you encounter that problem, financing your loan through a small, local bank is another option. Small banks, like credit unions, might be more willing to work with a borrower who doesn’t fit the traditional profile. They cater more to freelancers and contract workers like you to help you get a mortgage.   The Ultimate Advice: Keep on trying :) Buying a house without a full-time, permanent job may not be easy. It is very challenging, yes, but it’s definitely possible. It’s doable only with the right amount of planning, preparation, and coordination with the right individuals who can truly help you. As long as you can provide decent and accurate documentation, together with an excellent credit standing and history, there is no reason why you couldn’t secure a loan to fulfill your homeownership dreams. If at first you failed to secure the home loan for which you applied for, don’t lose hope. In this age and time, you can even find a lending company that specializes in helping borrowers who don’t fit the normal profile. Do your extensive research and soon, even if it may take a few years, you can also move into a place you can call your own “home sweet home."

Planning to buy a home while the market is tight? Don't dive in unprepared! Understand what makes up a seller’s market, and follow a plan to make your offer stand out. A lot of home buyers tend to make rookie mistakes that get their offers rejected in a seller's market. If you want to be successful in landing your dream home when the competition is tight, make sure you understand what a seller’s market is, as well as the factors that influence a seller’s decision. This way, you’ll know what it takes to make the seller choose you. I. Understanding the seller's market A seller’s market happens when there is a tight supply of houses for sale -- creating heavy competition among buyers. In the past year, numerous markets have seen a lack of inventory, as well as a rush of offers when a property gets listed for sale. According to the National Association of Realtors (NAR), the median sale price in April 2017 for previously owned homes was $244,800 -- a 6 percent jump from the median sale price the year before. What causes a seller's market? If you’re a home buyer, you may be wondering why you are currently caught in a seller’s market. Here are a number of reasons that have added up over the years to create a shortage of supply, according to The New York Times and UpNest: Property trends have shown that an improved economy in most areas across the U.S. has triggered a high demand for housing -- all while the housing supply has continued to lag behind. More people entering the market can also be attributed to population growth and relocation caused by increased employment opportunities. Today’s homeowners are now occupying or holding onto their homes much longer than they once did. A lot of homeowners still do not have enough equity in their home for them to gain any profit from a sale. Property owners are simply not in a rush to sell, especially investors who are earning rental income from the properties they bought during the recession. There are fewer and fewer foreclosures in many areas, slashing off another source of homes for sale. A recent drop in interest rates across certain areas the U.S. has allowed more people to qualify for a mortgage. This means that a lot of people are out buying homes because of the confidence afforded to them by a pre-approval. Some areas have been lucky to experience a boost in government housing assistance programs which encourage first-time home buyers to take advantage of low-interest loans, down payment assistance, and tax credits. But then again, there aren’t enough houses on the market to match the influx of buyers. Given the above mentioned factors, home buyers can expect fierce competition for lower and mid-priced homes. But don’t worry, it’s not impossible to land the house of your dreams in this market. You’ll just have prepare yourself mentally, emotionally, and financially. Read on! II. Preparing yourself for the challenge Again: buying a home in a seller's market is a highly competitive endeavour. However, you can still reign victorious with the right mindset and preparation. Find an experienced realtor. In order to navigate a seller's market as efficiently as possible, you’ll need a knowledgeable real estate professional communicating on your behalf. While it’s advisable to do your own research and be involved as much as you can, it is always best to let your agent deal with the listing agent on the other end. Know exactly what you want and need. In a seller’s market, you can’t afford to waste your precious time looking at homes you won’t even be able to consider. If you spend days looking at the wrong houses, the right one may already be sold by the time you get to it. To avoid this mistake, make a detailed list of what you’re looking for in a home (Two bedrooms? Three storeys? A garden?), and ask your agent to only schedule viewings to homes that fit your specifications. Have your finances in order. If the seller of the house you want is neck-deep in offers, he or she is most likely to favor a buyer who promises the most convenient way of settling things financially. To learn more about how to make your offer stand out, read on. III. Making your offer stand out You're most likely going up against multiple buyers, and your chances of getting the home you want will depend on how strong your offer is. Consider the following when making an offer on a home: If you have the resources for it, offer to pay in cash. Cash is always king—no matter what market you're in. In a seller’s market, however, a full-cash offer can be your most powerful edge over the competition. Your all-cash offer will stand out and blow all offers with mortgage requirements out of the water, since you have the power to spare the seller from issues involving escrow, appraisals, and mortgages. Offer your best price. If an all-cash offer simply isn’t feasible for you, you can still win the bidding war by coming in with a strong opening offer. In calmer markets, a home buyer will negotiate the lowest possible price that will satisfy the seller. But when you’re in a seller’s market, you’re really in no position to be stingy -- and offering below the listing price may be the wrong strategy. The seller won’t bother negotiating with you if he/she has multiple bids on the table. Come up with your best price, consult with your agent, and be as generous as you can practically afford. You may even want to consider offering a substantial amount as an earnest money deposit, so that the seller knows how serious you are about buying the property. Get pre-approved for a mortgage. As mentioned earlier, having your financing in order is a very attractive buyer characteristic. Even if you can’t pay in full cash, you can still offer the next best thing: a pre-approval letter from your lender/bank. This letter will confirm your ability to borrow the money necessary to finance the home. Other buyers may offer to pay more, but without a pre-approval letter, their offer still won’t stand a chance against one that is pre-approved. Know how much “moving-out time” the seller needs, and be flexible enough to adjust. There are times when choosing the right buyer doesn’t come down to just the money. Sometimes, sellers favor buyers who are willing to delay possession of the home until they can move out comfortably. If it won’t cause you any trouble to wait a few days (or in some cases, weeks) for the seller to clear out the recently-bought home, be kind enough to do so. Some buyers won’t think it would make a difference, but lessening the hassle on the seller’s part is always a huge plus. Don’t ask for too much, or if possible, anything at all. It is typical for buyers to ask what else they can expect to get with the home that they’re buying. Refrigerators, washer units, free repainting of the front door -- all these are acceptable requests in a buyer’s market, but may be a turn-off in a seller’s market. With tight competition, always assume that you’ll be getting the house and nothing else. Personalize your offer. All sellers want to make sure that their houses will be left in good hands. If you can give them this kind of assurance, your offer will be given more serious consideration. Make the effort to reach out to them via a personal letter. Tell them why you see yourself living in the house, and communicate your eagerness to take care of their soon-to-be former home. This tactic may sound a bit too sentimental to some buyers, but remember: selling a home can be a very emotional process for the seller. If he or she is choosing between closely similar offers, a sincere and personal letter can be the much-needed tie-breaker.

Much like any business venture, listing your home for sale is all about finding the best possible timing. The best case scenario would be one in which the sale happens while the market is at its best, at the same time you are prepared to leave, and to buyers that are motivated to pay more. However, the right time to sell is not the same for everyone --it will all depend on why you are selling your home in the first place. Some may have to sacrifice a bit due to time constraints, but finding the perfect time to sell is possible within a certain time frame. Here are important guidelines to consider when thinking of the right time to sell your house: If you can, take advantage of the Spring fever. According to Zillow research, homes sell fastest and for more money from May 1 to May 15. They call it “the magic window” to sell your home, since buyers who started house hunting in early Spring will want to get settled into a new home before the school year begins, and are most likely to bid higher. During this window, homes can sell up to 18.5 days faster with a premium of $1,700 on average for a median home. If you're not in a rush to sell, you can start prepping your home for sale after the Christmas holidays, and make renovations early in the year so that your house can be in perfect form for viewing during this “magic window.” Be aware of conditions in your local housing market. A buyer’s market happens when the demand is low and housing supply is abundant, causing some sellers to settle below listing price just to get their houses off the market after its been there for quite a while. Naturally, you’d be better off selling your house in a seller’s market, where supply is low and demand is high. This puts you in the lucky position of possibly getting multiple offers, which causes a bidding war and drives up the value of your home. Imagine yourself in the shoes of the buyer. Low mortgage rates inspire first-time home buyers to take the leap and buy their first homes. They’re even more likely to pay more, since low monthly payments give buyers the confidence to go for the house they want. This can be a bit harder to track, but it would also benefit you to know about any local and state news on tax incentives and tax laws, as most potential buyers are encouraged to finally buy a home when tax incentives on purchases are looking good. It may also be beneficial to consider the reasons why you decided to buy this house in the first place, since you can also leverage this when the time comes. Factor in your own timing. While it’s tempting to wait until when it makes the most sense financially, not everyone will have the luxury of waiting until May to sell if they have to move across the country six months before that. Even if you choose to wait it out and rent until the house gets sold, any financial benefit you may get from it will only offset the expense of having to pay for two properties during the waiting period. For some people, however, it’s not always about getting the highest price possible for the home they’re selling (although if it can be worked out, why not?). If you’re looking to buy a house where the market is slow, it could make sense to sell your previous house right now and buy a new one right away so that you can take advantage of the benefits of buying in a buyer’s market. Or, if you’ve found the perfect house and need to make a bid on it soon, selling your current home as soon as possible can be your best move. Again, it all comes down to your reasons for selling. Determine what you prioritize the most and time your sale accordingly. Keep in close contact with your real estate agent and communicate your goals openly. This way, you can both agree on YOUR best time to list your home for sale. Best of luck, home sellers!

In an analysis conducted by the National Association of Home Builders (NAHB), it was found that there was a larger percentage of new homes, especially single-family homes, that cater to the preferences of many home buyers today. Significantly, new construction is addressing the substantial demand for homes with special features — two bathrooms, an open kitchen-dining area, and an open floor plan. Some of the cities with the largest new construction markets include Dallas, Houston, and New York, according to 2017 data analyzed by Trulia. For buyers who have already looked at existing homes for some time but still couldn't find the home they want, a new construction home is a good option. There are three ways that you can purchase a new home: you can buy a new home that was already built; choose a semi-custom home built from a set of finishes and upgrades, or have a custom home designed entirely to your preference. However, just as how the home buying process in existing homes goes, there are certain things buyers must do if they want a new construction home. Here are some tips to help you throughout the process: 1. Weigh out the pros and cons The best way to figure out if a new construction home is the best route for you is to analyze first its pros and cons and whether it is going to suit your lifestyle. Do your research and ask yourself a few questions. Some of the pros and cons of new construction homes are:   Pros There's no need for long hours of lifting the hammer or using a paint brush to do any customization or repairs. If you’re that type who doesn’t want to do any immediate repair work once you moved in, then it’s a good choice for you. New homes often come with modern design elements and lifestyle upgrades, such as open floor plans, open kitchen, etc. They are also often built-in with the latest smart home technologies and are constructed using more energy-efficient materials that could help lower your energy bills. You can have the builder customize the home based on your personal color palette before construction is even completed. Cons New homes can cost more than similar existing homes. Hard to break it to you, but those fabulous amenities and upgrades can also add up to the costs. The home probably won’t be located in a tight-knit, well-established community of neighbors. New homes, unless it’s purely customized, often have less architectural detail, charm, and character compared to older homes. New homes are not for those who feel great pride and value in doing the upgrades and repairs themselves. 2. Find your own agent who has experience in new construction Find a top local real estate agent who can best represent you and your interests during your home search and the home building process. Be sure that it's someone who has experience in new construction and regularly deals with builders, but isn’t affiliated with the builder. Find a trusted agent even before visiting a builder’s home construction site. Many model homes are represented by a real estate agent who has a relationship with the builder, and many builders won’t allow you to hire your own agent once you already visited their sales office without representation. Seeking the help of a knowledgeable professional who regularly deals with builders and knows the local communities by heart will save you time and money. Besides, it will cost you nothing as a buyer to be represented by an agent since it is typically the seller who pays for the commission. Many builders are also happy to work with agents, so it can be a win-win situation. 3. Do your research on the builder and its reputation Conduct research on the builders of each development that you're interested in. Search for online reviews, testimonials, and any news and updates you can find. Then check for the validity and trends in those reviews, since many builders will surely have a history of both happy and unhappy clients. If possible, also talk to local homeowners or current residents. Connect with them in online groups or communities through social media to better educate yourself before making a decision. Also research on the location and the community where the new construction is being built where you can learn about your potential neighbors as well. Ask your real estate agent if they’ve worked with the builder before and gain insights about their reputation. Bonus Tip: When talking to the locals or current residents, don’t forget to ask about other costs associated with owning a home in that development, such as property taxes and the average utility costs. 4. What you see isn't always what you get It's normal to be fascinated by that picture-perfect model home, but don’t let it blind you. Model homes are, of course, decorated to look desirable and striking. They have been furnished and staged so that rooms will appear bigger. Model homes were often constructed using a mix of standard materials and fixtures and include many upgrades which don’t necessarily represent what you can get, so it’s crucial to note what exactly you will be getting. Enlist the help of your agent to get a list of the standard features and common upgrades, together with their associated costs. 5. Find other ways to negotiate and get discounts Most builders are reluctant to lower their prices because it may set a precedent for future buyers in the development who may expect similar discounts. The best way to negotiate with a builder is through upgrades. Consider asking for the builder to negotiate “on the back end,” such as paying for closing costs and performing upgrades at no additional charge. This is the less obvious way for builders to sweeten the deal while still maintaining the value of their neighborhood. With the help of your agent, research the builder's negotiating style so that you can plan for an effective way to make a creative offer. 6. Do your research to find a good lender and the best loan for you Consider other sources where you can find a lender who will offer you the best deal. Don't automatically use the builder’s own lender without shopping around for better options. Builders often have their preferred lender so that they can be fully informed of your personal progress as a borrower. However, they may not work with your best interests in mind. Your agent can also help you by referring his or her trusted list of private lenders where you can choose. For some instances where the builder’s preferred lender is the only option, find out if there are incentives, special offers, or competitive rates available to you if you agree to use the builder’s own lender. In some situations, it can be a cost-efficient option since they are often willing to offer competitive rates and terms, especially if the builder owns the lending company. 7. Get a home inspection You might think, “Nah, it's a new home, so why would I need to have a home inspection?” Well, that’s a huge mistake. New homes can also have problems or defects since construction workers can make mistakes as well. There may be problems with the HVAC or plumbing installation that only a licensed home inspector can detect. Getting an independent inspection is always a good idea since any problems can be identified before a builder’s warranty expires. It will also help you learn more about the home. A home inspection will guarantee that everything is safe and up to code. 8. Secure everything in writing Even if you are working with a respectable builder, make sure that everything you have negotiated and agreed upon will be included in writing. They may honor your requests, but verbal conversations are not binding so they may forget about the promises they made to you. Make sure that everything important will be put in binding documents that must be signed by all parties. It's especially crucial if you are buying a home that is not yet complete. Your experienced real estate agent can help you ensure everything is in writing and that all documents are properly signed. 9. Get a guarantee If you buy a home that is not yet completed, one thing you need to guarantee by the builder is a completion date, which should be specified in your purchase agreement documents. However, review these documents thoroughly because many builders may add provisions that make the completion date dependent on several variables, such as on city permit approvals or availability of building materials from several suppliers. A guarantee is especially important if you have to make living arrangements until the home is built. 10. Find out what things are included in warranties Last but definitely not the least: ask about warranties. Find out what is and isn't covered and for how long, since not all warranties are created equal. Most builders use third-party warranties that cover materials and workmanship. Builders often use construction materials from different manufacturers or suppliers, like for windows or tiles, so those products may have separate warranties. There’s a great chance the builder might refer all issues to the manufacturers instead of handling the issues directly. Get the builder to specify each product’s warranty information so you can prepare your offer documents to address any concerns before closing. Warranties will also help you understand the process you need to follow once something needs to be fixed.   Buying a new construction home, with their absolutely perfect “new house smell,” can be considered a luxury of its own. Especially if you're the type of buyer who’s really dreaming of owning a piece of the American Dream in a particular development. Heed these smart tips and when in doubt, don’t be afraid to ask questions! Most builders and developers will use a handful of lingo and phrases you may have never even heard of. Ask questions if there’s something you’re unclear with, take down notes, and get everything in writing. Hopefully, you’ll have a top local realtor to educate and assist you in this important milestone.

The spring real estate market is already here. Despite the strong competition, it's a great time for home buyers to score their dream home because of high market inventory. And soon, there will be fresh batches of buyers who have just finished closing and will soon be moving. Purchasing a new home is a big milestone for anyone, so welcome your friend or loved one to their new life with a thoughtful housewarming gift. It could be something practical, sentimental, or anything in between. Remember that they can have a list of things they are going to need for their new home but they might have a tight budget after paying the down payment and other costs, so a nice thoughtful gift will be appreciated. In case you need help in coming up with ideas, we’ve collected some of the best gifts you can give to new homeowners. If you’re still in doubt about what to choose, remember that it will always be the thought that counts.   1. Fresh flowers or a plant in a beautiful vase Who wouldn't love smelling a lovely bouquet of fresh flowers, especially if you’ve been surrounded by boxes and packages in the last few days? Brighten up their new abode with some colorful blooms that will be more attractive if you put them in a beautiful vase that new homeowners would love to keep. Studies have long established that flowers can help decrease anxiety and worries, so they can definitely help reduce moving-related stress. If you want to give something that will last longer than a bouquet, pick out a plant that is low-maintenance but could still add life to an otherwise empty space. Gift a succulent (which is a growing trend nowadays) in a cute vase, or go for a good luck bamboo or a snake plant. 2. A welcome mat A welcome mat can certainly make a new home feel pleasant and welcoming. Perhaps this is something they were planning to buy later, so you'd be doing them a nice favor by giving this simple yet thoughtful gift. You can always get something plain and basic. But if you want to make a lasting impression, go for a custom-made mat with their initials, a fun saying, or a quote that you know the homeowner would love. Yes, it will be better to pick up something beyond those that say “Welcome!” 3. Gift certificates or gift cards There's nothing more wonderful than receiving gift certificates for a certain restaurant or service. Since a new homeowner may still be overwhelmed with a lot of things to do, help them take a break by giving them a gift card for a nearby coffee shop or restaurant. It will allow them to get more acquainted with their neighborhood and discover new weekend favorites. Since packing and moving all require hard work, you could give them a certificate for a massage and spa to help them relax after all the hard work. 4. Tool kit/toolbox set Being a homeowner means getting ready for important home maintenance and repairs (as well as the costs!), so give them a set of essential hand tools, including a hammer, measuring tape, screwdriver, wrench, pliers and such. A toolkit can be especially useful for those who are moving to their very first home and have not immediately thought of acquiring most of these basics. You could also gift a humble set of gardening tools if you know the new homeowner has a green thumb and is now itching to tend to their garden during this spring season. 5. A spa-like gift set Scented candles and oil diffusers are one of the best housewarming gifts due to their aromatherapy properties. Candles can evoke feelings of warmth and relaxation and can be a nice addition to a new home. Choose a fragrance that the new homeowner loves and could help them relax, like lavender, vanilla, or eucalyptus. You can even personalize these candles by attaching a card or putting a lovely rustic packaging for that stylish look, then bundle them with a nice set of bath towels and aromatic soaps to complete that perfect spa-like gift set. 6. A fun household game There's no stress a fun game couldn’t relieve, especially for a young family who just moved in. It’s especially perfect for anyone who’s invited friends over to their new place. Bring in fun card games like Cards Against Humanity and Uno, or classic board games like Scrabble and Monopoly, that will surely be loved by the new homeowner and enjoyed by everyone. 7. A trinket dish or any lovely home decor Because not all gifts should have a functional purpose, why not give a trinket dish or any stylish home decor for a new homeowner who also aims to make his/her home “instagrammable.” Trinket dishes, decorative plates and bowls, and even marble coasters would look beautiful on a tabletop, mantel, or desk. Choose a decor with a natural but elegant design, and perhaps made out of unique materials like exquisite wood or marble. 8. Freshly baked goods and sweets Who can resist the smell of freshly baked goods and sweets? Especially if the homeowner has a sweet tooth, you can bake a fresh batch of sweets yourself and bring them over. Or, if you're not the type who loves to bake homemade goodies, head to a local bakery near their new place or pick up something from their favorite bakery in their old neighborhood. The aroma of those baked goods can certainly evoke special memories and make everything slightly better. 9. Cooking spices Since cooking spices and herbs are a staple in every pantry, why not give a starter set for the new homeowner, especially if he/she also enjoys cooking. It's both a flavorful and essential gift for any home cook. There are spice gift boxes already available in major supermarkets, so you can just wrap them up in lovely ribbons before giving them as gifts. If you’re a lover of homemade gifts, you can also get ideas online to help you create the perfect DIY spice mixes. 10. Cozy blanket A home wouldn't be complete without a cozy blanket. And since a first-time homeowner can never have too many of those, it can still be appreciated especially on cold nights where you only want to snuggle down and relax with friends and loved ones. Include a decorative or trendy pillow and you’ll be wishing a good night’s sleep to the homeowner who, after what could be years of house-hunting and surviving the stressful closing, finally have a place they can really call their own. If you're a home buyer or a new homeowner, you might as well share this with your family and friends, too! That way, they’ll have an idea of what to give you on your future housewarming party. Cheers and Happy Housewarming wishes in advance!

For some people with enough funds and other houses to live in, selling a home and buying one at the same time can be relatively easy since there is not much pressure involved. But for those who need the equity from their old house to buy a new one, things can get quite stressful--especially so when they have no other place to go while trying to sell the house they're living in. Most people caught in this situation have a number of options at their disposal. However, one must be aware of the factors that should affect his or her decision. Below is a guide on how to successfully pull off this feat, depending on what scenario you might be in: Scenarios in which you have to SELL FIRST: Scenario #1: You're in a seller's market in which you'll be caught in a bidding war for the house you want to buy. In hot markets, it's unlikely for you to stand a chance in a bidding war if you make an offer contingent on the sale of your current home. If you’re up against multiple buyers, the best way you can stand out is to make a clean offer, with no contingency. Since you’ve already sold your home, you’ll have enough cash on hand to make this possible. The game plan: Find a reasonably priced rental with flexible terms, and stay there while staging your home to sell. Once you sell your home, use the money to make a clean offer on the house you want to buy. If everything goes well, you can move out of the rental in a few months. Scenario #2: You'll be moving to a new city in a few months. Whether it’s to start a new job, relocate with a loved one, or to accommodate any lifestyle change, you’ll be needing the money from your home equity to uproot yourself and start a life elsewhere. Besides, if you’re moving to a new city, it may be wise for you to rent a bit and explore different neighborhoods before buying your new home. The game plan: Declutter your home until it is adequately staged to sell. Be sure to find a buyer who will agree for you to stick around for a bit until you're ready to move to your new city. You can either negotiate a longer period until closing or offer to rent back your home for a few weeks. Find a short-term rental in your new city and use the time to begin your home search. Scenarios in which you have to BUY FIRST: Scenario #1: You're selling in a seller’s market, and buying in a buyer’s market. It is easy to buy a house where the market is slow since there won't be too many people to bid against on the house you want. If you’re in a hot market, you can quickly find a buyer for the home you’re selling, so it’s improbable that you’ll be stuck with two mortgages for longer than you can practically afford. In some cases, there won’t be anyone to compete with, and the seller may even accept an offer that is contingent to the sale of your home (also called a “contingency offer”). This way, you won’t have to worry about paying two mortgages at the same time. The game plan: Start staging your home to sell long before you plan to move out. This way, it can sell quickly once you put it on the market. Make an offer on the house in the area you'll be moving to. If you’re making a contingency offer, negotiate a 30-day contingency period. If not, consider using an escrow account to secure the offer while waiting for your home to sell. Put your house on the market once your offer on the new house has been accepted. While this is highly unlikely to happen in a seller’s market, it is wise to consider a bridge loan if it takes you awhile to find a buyer. Scenario #2: You have enough resources to make an offer NOW, even while your home for sale is still on the market. Not many home buyers find themselves in this position, given that most people are only capable of making a down payment on a new home once they have already sold the previous one. However, for those who have the money, consider these: If you buy first, you can immediately move to your new home and have your previous home staged and presented in its most appealing state. If you do an impressive job on this, you can get an excellent offer on your home by marketing it vacant and ready for occupancy. You'll only have to move once! No more looking around for a rental unit or storage space. You can be more at ease knowing that you already have a home that is yours to stay in while dealing with the stress of selling your previous home. The game plan: Gather your funds from the sources you have in mind, and make a solid offer on the house you want to buy. Move into your newly purchased home and stage your previous house to sell. Once your home sells, pay back the accounts you've tapped by using the money you earned from the sale.

luxury of living elsewhere while selling the house they do have. It's pretty common for home sellers to have to deal with the challenge of selling the same home in which they still have to eat, sleep, and bathe in -- so it’s nothing to be embarrassed about. However, it can be quite a challenging feat, and it can cost you a lot if you don’t pull it off seamlessly. Below are the top three (3) things you have to do to keep the situation under control and not hurt your chances of getting a good offer. Keep them in mind if you want to breeze through the sale with as little setbacks as possible. There are a lot of things you can achieve by simply starting to pack up your things. One of them is making things easier for you once you need to move out of your house for real. Packing is an activity a lot of people dread and end up procrastinating on. Even just packing your suitcase for a vacation can seem stressful when you do it at the last minute, so just imagine how much stress it would cause you to pack up everything you own! So our advice is to pack ahead and stow away things you won't be needing in the near future. For example, if winter isn’t coming anytime soon, start packing away those thick jackets and sweaters. Put them in a storage unit or a relative’s garage. Another advantage of packing up early is being able to depersonalize your home. Most potential buyers are turned off by a house that feels too unique or too individualized. If they can’t picture themselves living in your home, they will definitely feel out of place and lose interest in buying. So this is as good a time as any to start taking down family portraits from the walls and wrapping them up so you can safely transport them when the time comes. And lastly, it’ll give you another chance to experience living in a spacious and uncluttered house again (at least until the offers come in). It can even inspire you to permanently rid your future home of all of the unnecessary clutter you had to pack from your old one. Yup, this means a general cleaning of your home unlike anything you've ever done in the past months, or even years. It is the kind of cleaning that will take you days to complete, lest you opt to pay extra for professional cleaners that can have it done for you in a day. This may sound like a huge undertaking, but there are a lot of upsides to it as well. AND, you only have to do it once. Once your house is thoroughly cleaned and practically spotless, it’s easier to just keep it that way until it gets sold. If you have the budget to spare, we highly recommend that you hire professionals to clean every part of your home, including all the nooks and crannies. Years of living in a house (even one that you regularly clean) can build up so much more dirt than you can imagine, so it’s better to leave all the comprehensive cleaning to professionals. Of course, you can’t hire people to keep your home at this level of cleanliness every single day. The trick is to come up with a system with your family about how you’ll go about living in a house which you are already selling. Entail the help of each member of the household by reminding them to cover all tracks of their activities. Wash dishes immediately after use, do the laundry at night so it doesn’t distract viewers during the day, and clean up everything the night before. While you want to be as accommodating as possible, you also have to look out for yourself. Potential buyers are always going to inspect every area of your house—this means opening drawers, cabinets, and taking a close look at your garage and storage rooms. If you still have to live in your house while it's being shown to potential buyers, it’s understandable to still have a few personal belongings inside. However, it would be wise for you to safeguard all valuables and belongings with sensitive information. Keep them in a locked drawer or a safe, and keep them in a room where people don’t tend to gather. Don’t keep any gadgets lying around, and make sure your computers have strong passwords. As always, keep in close contact with your real estate agent and ask them for their feedback as well.Best of luck, home sellers!

In simplest terms, a mortgage is a long-term loan designed to help borrowers purchase a house. It allows individuals to become homeowners without making a large down payment and thus, fulfilling The American Dream. Once you become a homeowner, a mortgage represents one of your life's biggest financial commitments. So it’s important to understand the structure of your payments — what percentage goes to principal, interest, and taxes, and what you currently owe on your loan balance. I'm a first-time home buyer. Once I closed on my new home, when will my mortgage payment start? Mortgage payments usually start one full month after the last day of the month in which the home purchased closed. Unlike rent payments, which are usually paid in advance on the first day of the month, mortgage payments are paid in arrears. It means the payment is expected to be made at the end of the month. For an instance, after closing on your new home on March 28, the first full mortgage payment, which is for the month of April, is then due on May 1.   2 primary factors to determine your monthly mortgage payments Size of the loan - refers to the amount of money borrowed. Term of the loan - the length of time within which the loan must be fully paid back. Remember: Longer terms result in smaller monthly payments. This is why the 30-year mortgage remains the most popular mortgage financing option among many home buyers.   Remember PITI: The 4 Major Components of a Mortgage Payment   PRINCIPAL The actual amount of money you borrowed from the lender without the interest. It is the face value of your mortgage on the first day. For an instance, if your mortgage is $250,000 with a 4.5% interest rate, your principal remains at $250,000. A portion of each mortgage payment goes to the repayment of the principal. If you take a mortgage with a fixed-interest rate, your principal repayment will be the same for the life of the loan. A greater amount of the principal is paid during the back half of the loan because the majority of the payment in the first few years goes primarily to interest. To calculate your starting principal balance: Principal Balance = Purchase Price + Fees Rolled into Mortgage - Down payment   INTEREST The interest is another big part of your mortgage payment. It is basically the profit that goes to the lender. Think of it as the lender’s reward for taking a risk and lending money to a borrower. Lenders will want to earn their interest back in the first few years of the loan repayment before they start reducing principal. Meaning, the majority of your mortgage payment goes to the interest in those first few years, but every month you pay down a little bit of principal as well. This is the method banks use to protect themselves in the event of a default. But the more payments you make, the lesser amounts goto interest and a bit more goes to the principal. For a 30-year loan, the first seven years will go mostly towards the interest.    Higher interest rates = higher mortgage payments Interest is accrued annually regardless of whether you have a fixed-rate mortgage or an adjustable-rate mortgage. It’s important to note that the interest rate on a mortgage has a direct impact on the size of a mortgage payment. The average 30-year fixed-mortgage rate until March this year is 4.54%, which rose slightly higher since November 2017. To calculate how much of your payment goes to interest: Interest Portion = Current Principal Balance 𝒙 (APR ÷ 12)   Side Note: What is amortization? Amortization is a sliding scale that shows how much of your monthly mortgage payment is going towards principal and how much is going towards interest. It also includes a breakdown of every payment for whatever term you select. To have an idea of where your monthly payment typically goes, visit your lender’s website and print off a copy of your amortization schedule. There are also free amortization schedule calculators online that you can use as a guide to estimate the monthly payment on your mortgage.  TAXES Almost all lenders require you to include, or escrow, the taxes into your monthly payment. It is because property taxes take first priority over everything else. The tax portion of your payment could vary from year to year depending on the town where you live and your property’s value. Real estate taxes are assessed by governmental agencies and used to fund various public services, including the school district, road construction, the police and fire department services, and others.   The amount that is due in taxes is divided by the total number of monthly mortgage payments in each year. If you escrow, you place the next tax payment in advance with your lender and they pay the taxes for you. If you have an extra amount in your escrow account at the end of the year, your lender may cut you a check and then simply roll it over to next year.   INSURANCE Insurance payments, just like property taxes, are also part of each mortgage payment and held in escrow until the bill is due. This is done to ensure that you are always covered in the event of an emergency. The taxes and insurance typically don’t experience much fluctuation, unless there is a run on foreclosures or if your neighborhood was hit by weather issues, then it could change significantly.   Common Types Of Mortgage Insurance Included in Mortgage Payments   Private Mortgage Insurance (PMI) This type of insurance is mandatory for homeowners who purchased a home with a down payment of less than 20% percent of the home’s purchase price. It protects the lender from financial loss in the event that a borrower defaults on the loan. The rates for PMI differ from loan to loan and depends on several factors, including the borrower’s credit and the amount of down payment. Typically, this insurance costs between 0.3% to 1.15% of the mortgage loan amount. For most conventional loans, the payment for PMI is necessary until you have at least 20 percent equity in your property. A borrower also has the option to choose from different payment plans: annual, monthly, and upfront payment.   Homeowner’s Insurance This is a form of property insurance that covers losses and damages to an individual’s house and assets in the home. It also provides liability coverage against accidents in the home or on the property. Homeowner’s insurance is often bundled with mortgage payments. It’s important that homeowners educate themselves on the amount of their homeowner’s insurance premium every month.   Mortgage Insurance Premium (MIP) in FHA Loans The MIP is an insurance policy used in FHA Loans. It protects lenders against losses that result from defaults on home mortgages. In an FHA loan, both upfront and annual mortgage insurance are required for all borrowers, regardless of the amount of down payment. Borrowers can check the annual MIP rates on the FHA website.

Whether you are a first-time home buyer or a third-time home seller, the real estate transaction can be confusing and stressful enough even without the many terms and acronyms used during the process. But don't be overwhelmed — we’ve compiled a mini-glossary of the important terms you should know and familiarize yourself with to help you better understand what’s going on with the home sale. It’s good to remember what Steve Jobs said: “There’s always one more thing to learn.” The ABCs of Real Estate A: An appraisal is a professional estimate of the value of the property by a certified appraiser. Lenders always require a home appraisal before they will issue a mortgage. Appraisers look into similar homes in the area that have been sold recently, also known as “comps,” and also take into account the home's condition, square footage, location, and quality to make an accurate assessment of how much the home is worth. There are many myths surrounding the home appraisal that buyers and sellers should be aware of to better understand this valuable process.   B: A backup offer is a secondary offer on a home that is under contract between the first buyer and the seller. It becomes active when the primary sale falls through due to a number of reasons. A backup offer can be a useful tool to keep a buyer motivated to get the home that he/she wants.   C: A contingency in a real estate contract is anything that puts a condition on the buyer’s willingness to proceed with the purchase. Some of the most common contingencies include the financing contingency, inspection, sale, title, and appraisal contingency. A buyer will typically reserve the right to recover her earnest money if the contingency is not satisfied.   D: Down payment is the amount of money a home buyer pays directly to a seller and ranges between zero to 20 percent of the home’s purchase price, depending on the type of the loan. In the 2018 NAR Aspiring Home Buyers Profile, many home buyers have indicated that the most difficult step in the home buying process is saving for a down payment. However, there are popular loan assistance programs that can help buyers afford a mortgage, including the FHA loan, where buyers can get a mortgage with as low as 3.5 percent down payment. Likewise, the VA and USDA loans require no down payment at all for eligible home buyers. Bonus: The Debt-to-income ratio (DTI) is a personal finance measure that compares an individual’s debt payment to his or her overall income. A low debt-to-income ratio demonstrates a good balance between debt and income. Borrowers who have lower DTIs are more likely to successfully manage monthly debt payments. Reducing your debt-to-income ratio can help improve your credit score, which lenders will evaluate when you’re applying for a mortgage loan.   E: Escrow is a term for a neutral third party that handles the exchange of money and documents (purchase agreement, deed, loan documents, etc.) in compliance with the Purchase and Sale Agreement and any escrow instructions. Escrow handles the transfer of the buyer's loan documents and property taxes and works with a buyer's lender and real estate agent to make sure the title of the home is clear of liens before the transfer of ownership. Bonus:  The Earnest Money Deposit is the money a buyer pays soon after a home seller has accepted his/her offer on a home, and is different from a down payment. Once the sale of the home has been completed, the earnest money the buyer paid will be applied toward the closing costs. If the buyer backs out of the sale due to a failed contingency, he/she can recover the earnest money in full. However, if the buyer backs out of the sale for reasons not covered by contingencies, he/she will forfeit the earnest money.   F: Foreclosure is a process that transfers the right of home ownership from the owner to the bank or lender after the owner defaults on his loan. Bonus: For-Sale-By-Owner, more commonly known as FSBO (pronounced “fizbo”), is used to describe a homeowner who is selling their property without the help or representation of a real estate agent. FSBOs remain at an all-time low of 8 percent, according to the NAR 2017 Profile of Home Buyers and Sellers. At least 89 percent of home sellers continue to work with real estate agents to sell their homes.   G: The GreatSchools Rating by GreatSchools.org provides essential information to parents so they can choose the right school for their family. Since proximity to good schools is a major factor especially for buyers with children and young families, the GreatSchools Rating is a helpful tool for parents in evaluating the schools and school district they’re considering.   H: Homeowners’ Association (HOA) is a nonprofit organization that manages a shared housing complex, including condos and other planned developments. The HOA provides funding for repairs, grounds maintenance, and security by collecting money from homeowners. It also creates and enforces rules for the properties.   I: An inspection, or typically known as a home inspection, is a thorough investigation of a property’s condition by a licensed inspector. It is the home inspector’s job to assess the condition of the property and look for any flaws that need to be fixed, even if a house looks like it’s in great condition.      J: A jumbo loan or jumbo mortgage is a loan whose principal value exceeds the standard limits for Fannie Mae or Freddie Mac, the two government-sponsored enterprises that buy loans from banks. This type of loan is available for borrowers who do not qualify for a conforming loan and is commonly used for luxury homes.   K: Key rate refers to the specific interest rate that determines bank lending rates and the cost of credit for borrowers. In the US, the two key interest rates are the discount rate and the Federal Funds rate.   L: List Price is the price of a home for sale set by the seller and his/her listing agent. Real estate agents help set the price of the home right by doing a Comparative Market Analysis (CMA) to provide an accurate home valuation. Setting up a correct list price won’t turn off potential buyers and increases the chances of the home getting sold.   M: The Multiple Listing Service (MLS) is a suite of around 700 regional databases, wherein each regional MLS has its own listings. Agents pay dues to access and post homes on each one, and they may become a member of more than one MLS if they want to have a broader reach for their clients. Only licensed real estate agents and brokers can list homes for sale on the MLS.   N: Net Proceeds is the amount of money a seller takes away from selling a home, after taking into account the agent commissions and closing costs.   O: Open House is an event where a house or property is open for viewing to potential buyers for a scheduled period of time. Many open houses occur on weekends, especially on Sundays.   P: A pre-approval is an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan. During the process, a lender will evaluate the income and expenses of the borrower, including taking a thorough look at the borrower’s credit report and score. Getting a mortgage pre-approval is the first step serious first-time home buyers should do before they even go house-hunting. It will provide buyers a crucial guideline of what loan they can get, how much they can afford and how much the bank will lend them.   Q: A quitclaim deed is a legal document that transfers ownership of a home from one party to another, but does not give any guarantee as to what is being transferred. It simply transfers whatever interest the homeowner has in the property to his/her recipient. For an instance, a quitclaim deed can be used by a divorcing couple if the husband needs to transfer their jointly-owned property entirely to his wife.   R: A real estate agent is an individual who is licensed to negotiate and arrange real estate sales; including showing property, listing property, filling in contracts, listing agreements, and purchase contracts. Real estate agents are generally licensed to operate under the supervision of a real estate broker. In the NAR 2017 Profile of Home Buyers and Sellers, at least 89 percent of home sellers worked with a realtor to sell their home, while 87 percent of buyers purchased their home through a real estate agent. Especially for first-time home buyers, hiring a great real estate agent can help you save time and resources on your journey to purchasing your dream home.   S: A short sale happens when an owner is selling their home for less than the mortgage they owe on it. The lenders may agree to take a “short” on the mortgage to release it for sale. A short sale is typically seen as the last step before a foreclosure. It often happens after a low appraisal or a decline in property values.   T: Title is the right to ownership of a specific real estate property. Once the transaction closes, the buyer will receive a final title policy recording their names as the new legal owners, along with the amount of title insurance. The most common methods of holding title in real estate are the joint tenancy, tenancy in common, and sole ownership.   U: Upfront Costs refers to all the costs a buyer pays once his/her offer on a home has been accepted, including earnest money, the inspection fee, and the appraisal fee.   V: The Veterans Affairs (VA) home loans are unique mortgage options for current and former members of the military, offered by the U.S. Department of Veterans Affairs. Veterans, active-duty service personnel, select Reservists or National Guard members, as well as spouses of military members who died while on active duty, are among those who can qualify for this loan. The VA provides a home loan guaranty benefit and other housing-related programs to help them become homeowners.   W: Walkthrough refers to the final inspection of a home before closing. Buyers should complete a final walkthrough with their real estate agent to make sure any agreement to make repairs on the property have been fulfilled before the closing papers are signed.   X: Xeriscaping is a creative and sustainable landscaping that conserves water and is based on sound horticultural practices. The process was originally developed for drought-affected areas and is best for areas with water restrictions. In xeriscaping, the need for maintenance is minimal and water requirements are low. The practice relies on using local plants accustomed to the climate and getting the most out of everything you plant. Homeowners can lessen the impact on their local environment by creating this type of sustainable landscape. A good xeriscape can also raise property values more than extensive landscaping.   Y: A yield spread premium (YSP) is the compensation a lender pays a mortgage broker to sell a loan with a higher interest rate. The YSP is listed on the loan estimate and Closing Disclosure. Z: A zero-lot-line property is a building that comes to the very edge of the property line on at least one side. Units may be attached to one another in a zero-lot-line housing development, leaving no room for a yard. Many townhouse developments are built on zero-lot-lines.

The kitchen is one of the most important areas in a house. If a potential buyer is someone who spends a lot of time in the kitchen, the condition of this area can make or break a sale. In fact, even if the buyer is not much of a cook, the kitchen is still a major consideration since this is where friends and family tend to gather--especially if it opens directly into the dining area. You may be thinking, "But I don't have money to spare for a major kitchen renovation!" This is a common sentiment among sellers, and for good reason! Kitchen renovations are known to be costly--with some reaching over $80,000. But then, you don't really have to do a comprehensive overhaul to make your kitchen look good as new. With a few tips and tricks, you can transform the look and feel of your kitchen for under $5000 (total)! If you feel that this is still a huge sum of money, just think of it as an investment. Many potential buyers are willing to pay good money for a kitchen that stands out in terms of cleanliness, design, and function. Besides, your alternative is to keep it as it is, and if the current condition of your kitchen is a dismal one, this may drag down the value of your entire house. Below are a few things to consider if you really want to upgrade your kitchen without breaking the bank. Refer to the image and corresponding number! 1. If you're on a tight budget, make sure to come up with an actual amount and stick to it. Only replace kitchen parts that absolutely need to be replaced. If they're not faulty or extremely old, you can simply resurface, repaint, or clean them. 2. When renovating your kitchen for resale, resist the urge to incorporate too much of your unique tastes. An overly personalized design leaves no room for the imagination, which may turn off potential buyers who don't share your taste. Remember that your goal is to sell, so choose kitchen materials and colors that would appeal to a wide range of people. If you decide to repaint the walls and cabinets, do so with a neutral color palette in mind. For kitchen items, stick to minimalist designs with a modern feel. 3. Start with your kitchen's main workstations. Replacing countertops with new granite slabs can be too expensive, so opt instead for granite tiles. You can cut down the cost even further by simply re-grouting your existing countertop tiles. Just remember to bleach off any stains, and make sure that all surfaces are completely dried up and squeaky clean during the viewing! 4. The sink is one of the first things people notice in a kitchen, so keep yours clean and polished at all times. It also goes without saying that your faucet must be in tiptop shape, without the ugly white buildup that usually form on kitchen fixtures. If you don't see the need to replace your old faucet, a tried-and-tested trick to make it look brand new is to wipe off the buildup with lemon juice or secure a plastic filled with vinegar around it using a rubber band. Be careful though, as vinegar may damage iron or nickel fixtures. 5. Replacing old knobs and pulls for your cabinets is also a cheap way to upgrade the entire look and feel of your kitchen. Again, choose simple designs that have a general appeal! If you tend to be a little adventurous when it comes to styling your home, ask a few friends (whom you trust to have good taste) to go shopping with you. 6. If you have wooden cabinets, consider stripping the finish and restaining the painting instead of resurfacing each one. This would cost you much less, but will have the same dazzling effect. 7. While the look of your kitchen is the first thing that people see, you must also take note of how it feels to be in it. Some questions to ask: a. Is it adequately lit? Use the windows to bring in enough sunlight, or compensate with artificial lighting if you're a bit short on natural light. b. Is it well-ventilated? Range hoods are great for improving air circulation, but can also be a bit costly, so put up a window fan instead! c. Is there enough space to move around? While you can’t increase the area of your kitchen, you can get rid of unnecessary clutter to make the room feel bigger. 8. Beautiful flooring may be the most expensive thing you'll need to work on in your kitchen, but it’s always worth it when you do it right. New hardwood flooring can get most potential buyers drooling, but it’s a difficult one to achieve if you’re on a budget. The good thing is there are a lot of less expensive alternatives you can use, such as cork flooring or vinyl and porcelain tiles. Explore your options and go for the one that is within your budget. 9. Keep all appliances sparkly clean and free from odor. No one is going to remember your new granite countertop if your refrigerator still contains leftover food and is covered in tacky stickers and magnets. When staging your kitchen, it is important to clear out your cooking appliances and make them look their best. You should do this even if the items aren't included in the sale. As long as they’re still in your kitchen, they must be in their best condition for viewing.

The viewing is usually the most exciting part of looking for and purchasing a home. It is the biggest purchase anyone ever makes, and home sellers usually go above and beyond when staging their homes. Because of this, home buyers find it so easy to fall in love with a home that looks great at first sight. But if you really want to make sure that you're buying a home you won’t hate after all the staging is gone, you need to be aware of the things that aren’t easily assessed with a single look. Here are the top 5 things home viewers miss when they view a house for the first time. Read up to make sure you don’t make the same mistakes! 1. Storage Units Storage spaces are extremely valuable assets, and yet they are often overlooked. It's easy to be blown away by a home's massive living room, kitchen, or master's bedroom, but if storage spaces are scarce, your newly bought home may end up looking like a cluttered mess once you move in. Make sure there's enough built-in spaces for you to stow away your vacuum cleaner, chinaware collection, and beloved linens. Ask about hidden storage areas in every room, and make sure that they are well-maintained. Just because storage areas are only used to store things doesn't mean that they're allowed to be in poor condition. 2. Where the house is facing You may be wondering why it is important to know whether a house is facing north or south. The answer may not bother you during cooler months, but if the sun hits your house in all the wrong places during hotter days--summers in your home can be unbearably warm. To avoid this, ask the listing agent or the owner about the sources of sunlight into the house. You don't want a house that gets scorchingly hot in the summer, but you also don't want all the walls blocking the sunshine and making the house extremely dark during gloomy days. 3. Dampness & Humidity Dampness is not always be easy to spot in a home, which is why home buyers often miss this very important detail. Dampness in bedrooms and other rooms can pose serious health risks, so be sure to survey the house carefully and ask the agent if there have been any flash floods in the area in recent memory. Also watch out for musty smells, rusting and discolorations, as well as mold and mildew forming on walls. A newly painted room may also be a sign of a damp cover-up, so be wary of that. 4. Roof issues The roof is a challenging area to check, but don't risk skipping this during the viewing. Ask about the materials used for the room, as well as how often they've been maintained over the years. If you can, have a look yourself. However, if you can't have safe access to the roof, check the attic and see if the interiors of the roof structure bear any signs of leaks. If so, this is an indication of a poorly-maintained roof (possibly with missing shingles!) 5. Soundproofing If you turn off all the noise from inside the house, can you still hear what's going on outside? If you’re a light sleeper, or someone who often works from home, loud noises from your neighbor’s houses or the street outside can be intolerable. When viewing a home, move past what you see and bring your attention to what you hear as well. Listen closely and make sure that the house is adequately soundproofed. If possible, try visiting the house during the day and night and check if you like what you hear, or in this case--what you don’t.

You may think that buying a house still isn't in your realm of possibility. In fact, you may even feel a wave of panic just thinking about where to get the money for your down payment. For many young people, saving up to buy a house is the least of their priorities, especially when you’re still in debt from student loans (and even from simply trying to get by until your next paycheck). However, there are a few, small steps you can make for you to get a little bit closer to that goal. Depending on your lifestyle, there are different ways you can make small changes in the way you spend your money. Once you feel that you’ve already had a jumpstart in saving up for a house, you’ll see that you’re actively seeking more ways to set aside money for your first home. Set a goal amount and break it down into less intimidating steps. It can be daunting to look at a five digit number that you have to produce for a down payment on a home. The key is to set realistic short-term goals that will eventually add up. Set aside a small amount from every paycheck, and label these savings specifically as “down payment money.” Choose a bank with the most returns. If you're not yet ready to invest your money in stocks, you can start by being smart about where you keep it. If the money you have right now is sitting in the bank, pick one with no ATM fees, high interest on savings accounts, and other perks that you can take advantage of. Switch to hobbies that don't consume electricity. If you’re fond of watching television (or keeping it turned on while you do something else), try pulling the plug (literally) on this bad habit. Instead of watching shows on TV, try exploring different electricity-free ways of entertaining yourself such as reading, playing outdoor sports, or taking long naps! Turning the TV off also means that you don’t get lured by ads into buying things you don’t need! Schedule trips to the ATM. Withdraw a set amount of cash per week and stick to it. Divide the money into a fixed budget for each of your weekly expenses such as food, rent, leisure, etc. Pay your future self first. Consider your savings as the amount you bill to your future self. With this in mind, make sure to pay yourself FIRST before anything else. You can ask your company's HR department to deposit a specific percentage of your paycheck to your savings account each month. Wait 30 days before making a purchase. Sometimes, the urge to buy something you don't really need wears off after a few weeks. If you’re eyeing a pair of expensive shoes, don’t buy it just because you have cash at hand. See if you can live without it for another 30 days, and you’ll see that most of the time, you can. Make your own coffee. The average American spends $1,100 a year on coffee. You can bring this amount down to less than half if you brew your coffee fresh at home every morning! Stay healthy. This is a no-brainer. A healthy body means fewer trips to the doctor, and less hospital bills. Make exercise a habit (or an electricity-free hobby, like what we talked about earlier!), and eat your vegetables! Get in on some food hacks. Speaking of vegetables, a cheaper but equally healthy alternative to fresh veggies are frozen ones. If you're on a budget, those cheap, frozen broccoli are still a better option than a $3 burger. Look for easy-to-prepare meals you can store and reheat throughout the week, and by the end of the week you’ll be surprised with how much money you’ve saved by not eating out! Invest. Investments don't have to be huge. Some banks even allow you to start investing in the stock market via mutual funds with only $50 per month. Do-It-Yourself. If there's something you want to buy, do a quick search online to figure out if you can make it yourself. So many people take on DIY projects because it’s fun and can save you a lot of money! Cancel your gym membership. No, this doesn't mean that you shouldn’t be prioritizing fitness. There are a lot of ways you can exercise without relying on gym equipment, such as running outside and taking advantage of online workouts which you can do at home. Kick the cigarette habit. Like hitting two birds with one stone, ditching the stick will save you up to $2000 a year, AND keep you healthier in the long run. It's hard to quit, but doesn’t that extra $2000 a year sound amazing? Spend moderately at restaurants. If you do have to eat out, one easy way to not splurge too much is to stick to water. The cost of alcoholic beverages and other flavored drinks are marked up by up to 3 or 5 times at most restaurants, so it's better to just skip them. Desserts are also quite expensive at fine places, so just buy the ice cream at the supermarket and have dessert at home if you can! Find generic alternatives. Ask your doctor if you can switch your brand-name drugs to generic prescriptions drugs. If yes, you may save a couple hundred dollars on your annual medicine consumption. Say NO to email ads. Clean up your email by unsubscribing from marketing emails of your favorite brands. Online shopping is too convenient, which is why people often overspend without thinking twice. The only way to get rid of temptation is to look away! Swap your stuff instead of buying. Look for things at home that you no longer use and swap them for things you actually need! Deals like this are great for replacing furniture, used books, CDs, and other things that are just stowed away to collect dust in your home. Don't spend your tax refunds! If you’re expecting a tax refund, bonus, or any large sum of money this year, give that cash some purpose by sending it straight to your down payment fund. It’s not everyday that you get this kind of money, be wise about where to put it! Record your expenses. Keeping track of your spending habits is a great way make sure that your finances are under control. If you know where your money goes every month, it's easier for you to make the necessary adjustments that can save you a lot of money. Treat yourself! Depriving yourself too much will only take a toll on your spending plans. You want to save as much money as you can, but don't do it to the point of unhappiness! You deserve to get yourself that delicious piece of steak every now and then. See? Saving money doesn't have to be hard and intimidating. You can still live a comfortable life now while saving up for your future home. Follow this guide for a year or two and you may be surprised with how much money you’ve managed to set aside for a down payment on a home. Start today!

Are you considering buying a house with an interest-only loan? We rounded up the 5 most common questions about this type of loan and came up with the best answers from the experts. What is an interest-only loan? The interest-only period typically runs for 5 years (10 years max), after which the loan converts to the normal principal and interest repayments. However, borrowers are also given the option to pay the balloon (principal owed) as a bulk payment. During the interest-only period, monthly payments are significantly lower than if you were approved for a traditional amortizing loan. How are interest-only mortgage payments different from those of a traditional loan? To understand how an interest-only loan works, keep these definitions in mind: Payments for conventional mortgages combine the cost of the principal and the interest for every payment, while payments for interest-only loans include exactly what the loan says: interest ONLY. Monthly payments on interest-only loans are relatively low since the principal is excluded during the loan term. Borrowers will then have to start paying the principal interest once the interest-only term expires, which is usually after 5 to 10 years. This means that higher monthly payments will still occur after the interest-only period. How do you calculate the payment on an interest only loan? The calculation of payments for interest-only loans is pretty straightforward. The loan balance is simply calculated by the interest rate. For example: It is important to note, though, that the payment rises and falls with the LIBOR rate (London Interbank Offering Rate), which is the benchmark most lenders (including banks and financial institutions) use to determine interest rates for short-term loans. If LIBOR rises, the interest payment increases. You must also make sure that you fully understand the terms of your agreement, as this varies among lending institutions. The key is to be aware that interest rates are usually variable, and will adjust regularly according to the terms of your mortgage. Who are interest-only loans for? In fact, you should consider an interest-only loan only under certain circumstances, such as the following: Your source of income tends to be sporadic (i.e. commission-based, dependent on periodic bonuses, etc.). You're an investor who receives dividends in quarterly or semiannual payments, or a high net worth individual who wants to maintain liquid assets for higher yielding investments. You’re a young professional who is confident that your income will considerably increase by the time the loan reverts to a conventional mortgage with higher payments. You’re a short-term homeowner planning to refinance or sell your home before the interest-only term expires, who prefers to have cash on hand rather than build equity. These are just some situations in which interest-only mortgages can be a good idea. Still, borrowers must fully understand the risks involved in taking this kind of loan. Investors, for example, should make sure that they really invest the difference they save from low mortgage payments. Young professionals must be realistic about their future income, since optimism doesn’t always translate into money. There is also the risk of a market collapse, in which case first-time homebuyers cannot expect low interest rates. Interest-only loans may not be ideal if you are a standard home buyer who wants to pay less on your monthly repayments. You’ll only end up paying more in interest over the years, since low monthly repayments on the principal will translate to higher loan interests over time. How can I qualify for an interest-only loan? The mortgage industry has started implementing stricter qualifying processes with tougher requirements. But if you have done your research and are sure that an interest-only mortgage is the best option for you, consider taking the time to consult with a professional or ask your agent to walk you through the process. Interest-only mortgages also require “good” credit, which means that you need to have a score of 680 or higher. This also goes without saying, but you have to make sure to find a home which you are 100% sure you can afford for the foreseeable future!

In a very competitive housing market, buyers need to step up their game in every way possible. They need to establish that they have a good credit score, a mortgage pre-approval, and a reasonable offer with fewer contingencies. However, if sellers are faced with multiple offers from buyers who are all on a level playing field, a well-crafted offer letter can be a great advantage. It certainly helps humanize the complex process and can help buyers create an emotional connection with the sellers. Here are our tips for writing a compelling offer letter: Dear Home Buyers, 1. Write it yourself Your offer letter should be penned by you—not by your trusted real estate agent, not by your bestfriend, or whoever you think can draft it better. Since a purchase offer letter is a unique strategy available to you as a prospective buyer, take the time to write it well. Think of how you can sincerely express your love of the property and connect with the seller while maintaining authenticity.   2. Tell what you greatly love and appreciate about the home (because maybe you love everything about it) Don't just directly tell the seller that you want the house—explain why you want it. It’s true when they say “flattery can get you anywhere,” so remember that when writing your offer letter. Find details and features of the home that appeal to you most and mention those. Do you love the seller’s furniture selection? That big but well-maintained backyard? Did that master walk-in closet grab your attention? Tell the seller what you love about the home, but keep everything sincere. It will also help the seller know that you didn’t just send a generic offer letter you’ve copied somewhere. Those genuine compliments about the home’s details that you’re drawn to will surely flatter the seller since he or she must have handpicked many of those. Also, appreciate the fact that the seller took great care of the property.   3. Create a visual memory “From the moment I first walked through your Craftsman-style door, it already felt like home...” This may sound like something you read in novels and pocketbooks, but if that was what you felt when you first entered your potential home, then tell it in your offer letter. Because simply telling that “I love the home and would like my child to finish school here in this neighborhood” won’t just do the trick. Be descriptive in telling how you feel about the house, and how you envision yourself in it. Describe how you see yourself and your family having barbeque parties in that sun-kissed backyard, or lounging in a chair in that big, front porch with a book in your hands. Sellers will remember better what they’ve read if what you described provoked a visual memory to them.   4. Briefly give details about yourself Introduce yourself and your family (Yes, even your fur-babies!) to the sellers. Briefly share details about your career, personal interests and hobbies, and other interesting things about you, as well as your connection to the area. If you’re buying with your significant other, you can briefly recall how you two met and, in a nutshell, describe your future plans in buying the home together. You can also make it clear that you are going to be a buyer who’s easy to work with. Mentioning what you do for a living can help in presenting yourself as a stable buyer, and to reassure the sellers that they won’t have to deal with a shaky transaction.   5. Establish a personal connection Try to know the things that the seller values and establish a connection from there. If you share a common interest or hobby with the seller, mention it in your offer letter to make yourself relatable. Indicate any similarities, however simple, that you think will strike an emotion and create a unique bond between you and the seller. It can be kids, pets, or their love for a particular flower or sport.   6. But don’t be too sentimental Keep the emotions of your offer positive and upbeat. Don’t make your letter dreary by telling the seller how many homes you’ve already lost on; that you struggled with a recent divorce; or about a family member’s illness. Those situations can make the sellers feel uncomfortable, which in turn could backfire on you and come off as phony. Use enthusiastic but sincere language, and maintain a hopeful impression.   7. Exclude your plans to remodel the house Sellers are, of course, still emotionally attached to their homes. So don’t mention any of your plans to remodel or renovate parts of the house in your offer letter because it might sound offensive to the seller. Avoid phrases that indicate that you want to change or tear down something and focus instead on what you love about the home.   8. Be humble Since it’s up to the sellers to make a decision on whose offer to choose, stay humble and sincere throughout your letter. Ask for their blessing and stay modest. You could say things like “We would be so honored to be the next owners of your beloved home” instead of saying that you are confident that you will get the home, especially if you gave a generous offer.   9. “Honesty is the best policy” Remember this golden rule when outlining everything you want to say in your offer letter. You may want to establish a connection or any common interest to the seller, but don’t lie if you can’t find anything that will relate you to them. The same goes for other details you include. Don’t say that your dog will like that big backyard if you don’t have any, or if you don’t really like dogs and don’t plan to get one anytime soon. Be honest and expressive in anything you say in your letter. Similarly, if your offer is considerably low compared to others, be honest and explain why you’ve given that offer. If you have a young family who’s just starting out, you can say that your budget is still limited. Then make a powerful but sincere statement sharing what it would mean for you to have this house despite your limited budget.   10. Be creative but make it concise In a very competitive market where sellers can get multiple offer letters, find a way to make yours stand out by being creative. Create a beautiful offer letter with eye-catching fonts and layout (just remember to not overdo it). Then include photos of you and your family that will complement the personal stories you shared. Aside from a creative format, the photos will set yours apart from the rest. Want some ideas? This L.A. couple’s offer letter in 2016 stood out after they shared details of their unique careers and included pictures of themselves and their rescue kittens (meow!). Likewise, this buyer’s “epic” offer letter won them their house. The letter was designed in an eye-catching format featuring the family, their beagle Charlie (I told you, pets do count!), and specified their favorite features of the home.   11. End it with a sweet “Thank you” If flattery can get you anywhere, a simple thank you can work wonders. Express your gratitude by ending your offer letter with wholehearted phrases like “Thank you for your time” and “We are very grateful for this opportunity.” It will let the sellers know that you value their time and effort in reading your letter and considering your offer.   12. Bonus Tip: Don’t forget the spell check and grammar check Remember that your offer letter could create a strong impression to the seller, so it’s important that you write the best letter possible. Even if you don’t have the luxury of time in a tight market, proofread thoroughly to make sure that it’s free from any spelling mistakes and grammatical errors. If grammar isn’t something you’re really good at, utilize free online writing apps or get help from someone who’s good at it. You never know if the house you love belongs to an English teacher or a professor, who may just cringe at the sight of misspelled words and grammatical mistakes that won’t just be considered as typos.

An appraisal is an integral part of the home buying process as it determines the objective value of a property. Lenders require an appraisal to help them evaluate a home before they issue a mortgage. Appraisals are done by trained and licensed appraisers, who will then give an unbiased report of the home's market value. We’ve already uncovered some of the most common misconceptions about the home appraisal that most buyers and sellers have, and it’s a first step to understanding this valuable process. Now, the next important question is: “What do appraisers really look at during a real estate appraisal?” Most appraisers use the Uniform Residential Appraisal Report by Fannie Mae, which includes a set of standards that determine the scope of an appraiser's inspection. They look at a number of factors to get an accurate appraisal, including: The home's exterior The appraiser will pay serious attention to the structural aspects of a home, specifically its foundation, the walls, and roof. The checks will determine the integrity and functionality of those three major components, as well as any defects or damage in the general construction. Any problem with the roof or foundation can immediately dismiss the home unlivable. The inspection will also assess the age of the home, any issues with siding or guttering, and evidence of leaks, cracks or water damage. Be aware that the appraiser will greatly focus on these things as they could definitely impact a home’s value. Other external factors that will be checked include any potential issues like flood-prone areas and dead trees, parking facilities, and the home’s observable external condition. Size of the property When the home is being evaluated, the size of the lot and the size of the home itself are all important considerations. An appraiser will be concerned with the total square footage and the home's functional layout, as well as the number of bedrooms and bathrooms. The more bedrooms and bathrooms there are in a home, the higher its expected value because most buyers would want the most number of rooms. The condition of the home's interior For an appraiser, the condition of the home’s interior is just as important as its exterior. Appraisers will check the materials and condition of the windows and doors, flooring, plumbing and electrical systems, the number and quality of appliances, the kitchen, bathroom, and all other important parts of the home. He or she will also check for health and safety issues, such as fire escapes and handrails. If the home has undergone a major remodel, it is his/her job to check the code compliance requirements for certain renovation projects. Appraisers will also look closely and itemize all appliances and fixtures installed in the home, including the dishwasher, refrigerator, washer/dryer, oven, and others. Quality home improvements The appraiser will also be very interested in any improvements you made to your home, as well as the quality of those improvements. Quality upgrades that make your home more desirable will be considered by the appraiser to determine your home's overall value. A new floor, a renovated kitchen or bathroom, new HVAC system, upgraded appliances, insulated windows, renovations to the attic, a garage, and any smart technology systems installed, can all add to the lasting value of the property. These upgrades are all critical elements and will be itemized during the home appraisal. Appraisers will also check for amenities like a fireplace, patio, fence, porch, and other home additions. Using Comparable Sales or “Comps” The home's location and neighborhood also have an impact on its value since appraisers also use “comparable sales” when finding the value of a home. Comparable sales refer to the prices of homes in the neighborhood that have similar age, size, and construction to the home being appraised and which have been currently sold. Appraisers will chiefly consider the square footage and the number of rooms of the home and compare it to other properties. The comparison should be apples to apples, meaning, residential homes will be compared to other homes and condos are compared to other condos. Appraisers can then make adjustments with these “comps” based on the features and qualities of the subject property. A home can be priced higher if it has more bedrooms, or its value can be lowered if there’s a problem with the roof or its foundation.   Bottom Line Remember that an appraisal is not an exact science but only an opinion of a home's value based on the comps and the actual condition of the home. In other words, appraisers are looking for any items that can affect the home’s value. The final valuation will be based on real estate market trends, current sale prices, and the specific characteristics of the home. The final appraisal report includes the information used by the appraiser, details about the subject property, and the explanations of the valuation results. The report will be given back to the lender, who will then use it as a guide before making a decision about the loan.

The process of looking for a home in your golden years could be a bit different from when you were looking for a home to build a family in. Now, you can focus on what will make YOU happy. Your children have found homes of their own, and you're now free to choose a new home to create new memories in. For retirees and senior citizens, location is no longer just about finding a nice house in a pretty neighborhood. It is more about being closer to your family, being just a stone's throw away from important amenities, and finding a peaceful place where you can comfortably relax. It’s a personal choice that will depend on your lifestyle and what you want to prioritize the most as you age. Here a list of things to keep in mind when looking for the perfect retirement home for you: The house itself The following items on this list focus on location -- but before we discuss those, it’s important to keep the obvious one out of the way. When buying a house to retire in, you should start with the basic questions about what type of house you’re looking for. Most retirees choose to downsize, but this entails the same questions: How many rooms? Bathrooms? One-storey or two-storey? Remember that you’re buying a house that can serve you well as you age. This means that living in it must be convenient for you as you enter your golden years. With this in mind, choose a home with very minimal upkeep, and one that wouldn’t require you to climb up and down the stairs every time you need something from your room. Find an adequately-sized property that will make it easy for you to get from one part of the house to the other--but make sure that it’s still spacious enough for you to move around comfortably. Proximity to family To most retirees and empty nesters, family is still what matters most when choosing the location of a retirement home. If you want to be closer to your children and grandkids, choose a location where they can easily visit you, or one that is near the airport and other public transportation options so that it’ll be easy for you to visit them. Being able to spend time with family during the holidays becomes increasingly important as you age, and you wouldn’t want to miss any opportunity to see them more often. However, pre-retirees must also think long and hard whether moving to a different city, or even to a different state, is really necessary. There is nothing wrong with looking for a new house within your hometown, especially if it allows you to stay close to friends and family, and near the places you most enjoy spending your time. Weather and climate If you’ve made your decision to retire in a place that is relatively far from your current residence, do consider whether you can easily adapt to certain lifestyle changes the move might entail. A drastic change in weather and climate may take a toll on your health, so make sure that you’re moving to an area with a temperature you can enjoy and not just tolerate. Decide whether warmer areas suit you better than cooler ones, or if you’d rather find a house where the breeze is always cool. Accessibility of important amenities Making sure that you won’t have a hard time going to places you need to go to is the most important part of finding the right location for your retirement home. Identify all the important facilities that you will need to visit on a regular basis, and make sure that these places wouldn’t take more than a 20-minute drive. If you take frequent trips to the doctor for check-ups and other medical appointments, ensure that the house you’re buying is near a hospital or clinic. If you like eating out at healthy places, find a house that is near organic or vegetarian restaurants. Community One can only truly enjoy a place if the existing community is a good match. To find a place you can truly enjoy, you’ll need to live amongst people you can see yourself interacting with. Check if there are recreational activities you can join nearby and meet like-minded individuals, or see if the Home Owners’ Association (HOA) conducts gatherings or recreational activities you may be interested in. If you’re looking to join exercise classes or educational courses for retirees, you can ask your agent to point you towards the direction of the perfect community where this is possible.

Time You may think that you're saving a lot of time by not going through the process of looking for and hiring a realtor. However, not having an expert to oversee all of your transactions can actually cost you more time in the long run. Even if you've sold one of your houses before and have a pretty fair idea of how it’s done, neighborhood trends may have changed drastically since--and only a real estate agent can help you navigate recent market trends you may no longer be familiar with. Dealing with contracts can also cause setbacks if you fail to take all conditions into account. Make sure you protect yourself by hiring an experienced real estate agent who deals with contracts and conditions on a daily basis. Money On average, an agent's commission is 6% of the home’s sale price. This may look like a pretty huge amount to some sellers, which is why some are tempted to eliminate the agent’s commission altogether by doing it the FSBO way. While it's true that some people turn out to be perfectly capable of selling their homes without the help of an agent, there is a high risk involved when it comes to pricing your home correctly. Only qualified real estate agents can determine the correct listing price of a home by performing a Comparative Market Analysis (CMA), and by making sure that the listing price draws in proper exposure for the house to be sold within an average of three weeks. If you price a home incorrectly, it may stay on the market for a long time. This will drive down the value of your home, leaving you with no choice but to settle at a selling price that is much lower than you originally set out for. Energy It goes without saying that it takes a lot of effort and experience to market a home to qualified buyers. Looking for interested buyers is taxing enough; pre-qualifying them can even be an added hassle especially if you have a 9-to-5 job to worry about. On the other hand, a real estate agent's full time job is to market your home extensively to qualified buyers--most of whom you don’t personally know. An agent does this by posting your home on the Multiple Listing Service (MLS) database, placing ads where it’s necessary, and aggressively following up on potential leads. If you can’t imagine doing all of these by yourself, think twice before deciding to sell your house without an agent. Relationships You never thought real estate agents can save relationships, did you? To be clear though, we're talking about the relationships you have with your potential buyers. A real estate agent does the tricky business of playing the middleman between you and your buyers. Some interested buyers often have a few things to say that may be offensive to sellers, and it is the job of the real estate agent to create an atmosphere wherein potential buyers are comfortable airing out their concerns about the house. Most of the time, it is difficult to speak directly to the seller without putting the relationship at risk, so it is strongly recommended that you let a professional agent do the talking AND listening on your behalf. This will keep things from getting personal, and will maintain a safe and professional relationship between you and your buyer. Sanity If you're lucky, your house will garner so much interest that you’ll be caught in the middle of multiple offers. While this is what one may call a “happy problem,” it can still take a toll on your schedule, and can sometimes ruin the balance you have in your current life. This can be quite overwhelming to sellers with full-time jobs, and can often end up being a disorganized mess of negotiations and offers. Sometimes, sellers face too much stress that they end up accepting a certain offer that may not necessarily be the best one, just to get things over with. If you don't want to risk disrupting the flow of your current life, save yourself from the craziness of home selling by looking for a real estate agent who will help keep your sanity in check.

According to the National Association of Realtor's Schools and Home Buying Decision article, proximity to good quality schools is one of the most influential factors in a buyer’s decision when purchasing a home. It is a major factor especially for buyers with families or young couples who are planning to have children. Homes that are located near top-quality school districts usually translate into higher property values and generally have a huge resale potential. In the NAR 2015 Profile of Home Buyers and Sellers, 25% of home buyers listed school quality and 20% listed proximity to schools as the deciding factors in their home purchase. Many home buyers are even willing to forgo certain home amenities just to have access to quality schools. As you do your house-hunting, it's important to also have an analysis of the schools and school districts you’re considering. Here are some things you can do to help you choose an excellent school district wisely:   1. Create a checklist of the qualities and values that are important to you and your child’s education If you consider a good school district as one of the major factors in your home-buying decision, contemplating about what values matter to you most when it comes to your child’s education is also relevant. A school will be your child’s second home, so you might want to be clear about your preferences. Do you prefer a traditional or an alternative style of learning? How important are extracurricular and skill enhancement activities to you and your child’s development? What are your child’s skills, strengths and weaknesses, and how can these be improved? What sort of contributions are you willing to make to improve your child’s learning? These are just some of the questions you have to ask yourself so you can be clear about the kind of school you want your children to be in.   2. Do your online research Most schools and school districts have their respective websites where anyone can get extensive information. Spend some time checking the sites of each school you’re considering and read parent and local reviews. Also check out other resources that provide valuable information, such as GreatSchools, NeighborhoodScout, the National Center for Education Statistics, and others. Take time reading downloadable school newsletters and calendars to familiarize yourself with the local news and events. It is also worth looking at some of the following information: Standardized test scores The curriculum being offered The latest rate of students attending higher education Awards and certifications the school has recently received Student-to-teacher ratio The educational attainment of most teachers Languages offered; and Any specialized programs for gifted or needy students   3. Ask your local real estate agent Your experienced local real estate agent can be one of your best resources in knowing the local market. He/She should have a good understanding of which school districts are top-quality and which are less desirable and could provide you with an objective opinion of the schools. Consider your realtor’s recommendations, and then verify other information you gathered before weighing the pros and cons.   4. Use your network to get more insight Whether you’re searching for a new home in the next street or heading into a completely new neighborhood, your network of family and friends could be helpful in your quest to finding a good school district. They may have some knowledge of a particular school district that you still don’t know about, or they may also have encountered that school you’re considering during their house-hunting. Either way, you can reach out to those people you know (and trust) and ask for their advice about a particular area and school. You may also utilize your social media accounts by posting on Facebook and on trusted community groups and pages to find out if people have any experience or insight to share. It will be worthwhile if one of your networks has a friend who’s a teacher or a school staff member who can give you an insider’s perspective, which could be more valuable than online information. At the end of day, it wouldn’t hurt to ask!   5. Talk to parents whose children already attend the school system You may have done your online research about particular schools and their reputation, but hearing the personal experience of local parents whose children already attend the school system is more valuable. Speaking to them can give you a general understanding of what it is really like learning from a specific school, and whether their children attend any great after-school programs or individualized education programs that will also be beneficial for your children.   6. Visit the schools if you can and if possible There’s no such thing as going “overboard” when you really want to find a good school district that will benefit your children’s education and the potential resale value of your property. After performing your research, narrow down your top choices and visit the schools in person to better evaluate each school. You can see for yourself how the schools operate and the interactions taking place. If you’re from miles away, call and ask permission first before visiting as some schools may have certain restrictions. See the classrooms and common areas and get a feel of the school’s culture and values through observing its people and surroundings.

What is an appraisal? An appraisal is a professional estimate of the value of a home done by a certified appraiser. It is a critical process for buyers because lenders always require a home appraisal before they issue a mortgage. Meanwhile, for sellers, a good understanding of the appraisal process will help them understand how their home's value is determined. Here, we uncover the most common home appraisal myths to help both sellers and buyers better understand this valuable process in real estate. Myth #1: The home appraisal is the same as the home inspection This is probably the most common home appraisal myth that most buyers and sellers believe. While the home inspection and home appraisal are both used to determine the condition of a property to protect the buyer and the buyer's lender, the two tasks are entirely different. A home inspection is done to identify issues with a home. The home inspector looks for issues that all parties should be aware of before the deal goes on. It is the inspector’s job to look for anything that might be problematic, like mold manifestations, problems with the foundation, plumbing and electrical problems, roof issues, and so on. The appraiser’s job, on the other hand, is to find the objective market value of the property. The appraiser will look into similar homes in the area that have been sold recently, also known as “comps,” to determine a value. Yes, it’s the same thing you and your realtor used to come up with a list price. Appraisers also take into account your home’s condition, square footage, location, and quality and use the information to make their accurate assessment of how much your home is worth. The only time an appraiser also takes the role of a home inspector is when the borrower is getting an FHA or a VA loan. In that case, the appraiser will also look for certain deficiencies in a home and may flag those problems during an appraisal.   Myth #2: The buyer owns the appraisal Since the buyer pays the appraisal, does the appraisal belong to the buyer? It’s easy to assume that the appraiser works for the buyer. However, while the buyer certainly pays for the appraisal, the appraiser actually works for the lender. An article written by Ryan Lundquist, a certified appraiser, shows a copy of an appraisal report and clears up this common misconception. An appraisal report during a typical loan indicates that the client listed is the lender and that the buyer is listed as the user. It is the lender who engages the appraiser to do the job. The appraisal is actually an “investigation” to protect the buyer’s lender from a bad deal. The report will help the lender evaluate the property and make a decision about the loan. Rest assured, appraisers are trained to be unbiased and ethical. It’s also a crime to put any pressure on appraisers for them to come up with a certain value. Likewise, a buyer is also legally entitled to have a copy of the appraisal from the lender, especially in Fannie Mae or Freddie Mac mortgages.  Myth #3: An appraisal will let you know how much the buyer will pay Rather than being an exact science, the appraisal is only an opinion of a home’s value based on the comps and the actual condition of the home. It could never indicate how much the buyer should pay, or how much the seller should accept to complete the deal. The appraisal report only provides guidance to the lender and serves as a safeguard for his/her investment. If the appraisal doesn’t match the contract price or if the home is appraised lower than the price the seller and buyer agreed upon, discussions will proceed on who pays for the shortfall. No, the lender definitely isn’t going to give more money to cover the difference. Instead, the seller and buyer can agree to negotiate a new purchase price that will match the appraisal.   Myth #4: A bigger home has a higher appraisal value The biggest home in the area doesn’t guarantee that it will be appraised way higher than its neighboring homes. In fact, having an exceptional home in an otherwise average neighborhood can actually do more harm than good. An appraiser will greatly consider the size and amenities of other homes in your neighborhood to determine the price of your home. If your home is super-sized but is actually surrounded by lower-priced homes, its value will still be lowered. The real estate cliche that says it’s better to “buy the worst house in the best block” is still true. It’s because being surrounded by higher-priced homes will also bring up your home’s value, so location remains a top factor.   Myth #5: All home improvements raise the home’s value It isn’t surprising that most sellers assume they will get equal value for every home improvement project they complete. But what they don’t know is that there are some home improvements that could actually lower its value, and appraisers won’t actually applaud you for those. If you converted your garage into another living space or removed a bedroom to give way to a bigger room, well, you may be in for a surprise. Appraisers base their judgment on measurable aspects of the house, such as the square footage, number of rooms, the home’s foundation, and others. So it’s important to note that every necessary home feature should serve its primary purpose. Having four bedrooms in a neighborhood with mostly three-bedroom houses can bring up your home’s value more than a fancy garage-to-gym conversion. Likewise, overly improving your house with intricate amenities that don’t even exist in surrounding homes won’t be beneficial. It’s because there will be no nearby sales data that the appraiser can use to evaluate how much those amenities are worth. When it comes to home appraisals, not all renovations can proportionally raise your home’s value, so be careful and educate yourself before removing or adding any amenities.   Bottom Line Thankfully, working with a trusted local real estate agent can help a seller be more prepared for the home appraisal. Realtors can fill in any information that can be beneficial to the process since they understand what appraisers are looking for. They can look up comparable properties and they know and understand the local market where the home is located. Realtors can also help a seller point out the features and improvements on the property that can help increase its worth.