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Real Estate

Advice for First-time Homebuyers

First-time Homebuyer

Being a first-time home buyer can be very exciting, but at the same time it can be just as nerve racking. You need to deal with mortgage options, how much down payment to put, and which real estate agent to use, and a host of other choices that need to be made. The following list will help you with some of the things you need to consider when purchasing your first home. Find the Right Agent Whether you are going to buy or sell a home, you need someone who really knows the market you want to buy in. Therefore, it is necessary to work closely with a local Realtor. It is essential for the buyer to find an agent that they are compatible with. In addition to being compatible with the buyer, the agent should be knowledgeable of the area, highly skilled and motivated. Save as Much as Possible for the Down Payment Commonly, most first-time home buyers will need 20% of the home’s purchase price for a down payment. There are lenders that will allow for a much lesser amount, but paying a lower down payment amount may result in higher ending costs. The first-time buyer should save money from their paychecks, work bonuses, and tax refunds, and keep track of savings. Check out all of the Mortgage and Down Payment Options With all of the existing mortgages available, there always one option that can save you money, so check around before you commit to a loan.  The first-time buyer should look into all of the pros and cons of each loan before deciding which is best. Buyers that are struggling to save up enough for the down payment should also consider conventional mortgages, FHA loans and, for qualified veterans, VA loans. The down payment has a direct effect on the amount of the monthly mortgage payments and the interest rate. A fixed mortgage that is taken out for 30 years usually offers the lowest mortgage payment.  The customer who wants a lower interest rate would benefit from a 15-year fixed rate, which has a much lower interest rate for the duration of the loan. However, the customer that needs the lowest possible interest rate for the first few years of ownership might consider an adjustable mortgage because, even though they are risky loans, they offer the lowest interest rates during the first years of ownership. Look into State, Local and Federal Assistance Programs First time home buyers can usually find assistance programs offered through the states, counties, and municipalities, including the the federal government as well. These programs can assist the buyer with down payment and closing costs, tax credits and interest rate discounts. Keep up with Credit Scores The credit is a key factor in determining if the loan will be approved, and has an impact on the interest rates, as well as the loan terms. Keep up with credit score information and dispute all errors that may be lowering the credit score, and at the…

The Significance of Location in Real Estate

why location matters in real estate

When it comes to real estate, the old adage “location, location, location” holds true. The importance of location in the world of property cannot be overstated. Whether you’re buying or selling, investing or developing, understanding the significance of location is crucial for maximizing value and achieving long-term success. In this article, we delve into the reasons why location matters in real estate and explore how it can make or break your property ventures. Value Appreciation One of the primary reasons location matters in real estate is its direct correlation with property value appreciation. Desirable locations with access to quality schools, amenities, transportation hubs, and thriving economies tend to experience higher demand. The demand-supply dynamics result in increased property values over time. Conversely, properties in less desirable or declining locations may struggle to appreciate in value, making it challenging to gain a return on investment. This is why most investors choose to buy in major cities like New Orleans and not Thibodaux, Louisiana. Accessibility and Convenience The accessibility and convenience of a location significantly impact both residential and commercial real estate. Proximity to transportation networks, major highways, airports, and public transportation options can greatly enhance the attractiveness of a property. Similarly, easy access to shopping centers, restaurants, parks, and cultural attractions can contribute to a higher quality of life and attract potential buyers or tenants. Neighborhood Dynamics The characteristics of a neighborhood can significantly influence the appeal of a property. Factors such as safety, cleanliness, and overall aesthetic appeal play a crucial role in shaping buyer preferences. People are naturally drawn to neighborhoods with well-maintained infrastructure, pleasant surroundings, and a sense of community. The presence of parks, green spaces, and recreational facilities can also enhance the desirability of a location. Demographics and Target Market Understanding the demographics and target market for a particular property is key to its success. Different locations attract different types of residents or businesses. For instance, a property near a university may be ideal for student housing or rental apartments, while a location close to corporate offices may be more suitable for professionals seeking convenience. Analyzing the target market and aligning it with the location’s characteristics can help investors or developers maximize their returns. Future Development Potential The potential for future development and growth can significantly impact real estate values. Identifying locations that are experiencing economic revitalization, infrastructure improvements, or urban development plans can present excellent investment opportunities. Areas undergoing gentrification or revitalization often see an increase in property values as they become more attractive to residents and businesses. Resilience to Market Fluctuations Location can also determine a property’s resilience to market fluctuations. While real estate markets may experience ups and downs, certain locations tend to be more stable and less affected by economic downturns. Properties in prime locations with strong job markets, diverse industries, and robust infrastructure are more likely to withstand market volatility and maintain their value over time. Conclusion In the world of real estate, location plays a pivotal role in determining a property’s…

Top 5 Reasons to Hire a Realtor

Top 5 reasons to hire a realtor

When you’re buying or selling a home, it can feel like there are a million factors to consider about and a thousand things to check off your list. Thinking about hiring a real estate agent? That seems like one more thing on your plate, not less! But as you may know, the housing market is an extremely challenging place for both buyers and sellers. If you have your eye on a specific property, or are thinking of selling your home, it’s worth thinking about working with an agent. They can be worth their weight in gold when it comes to negotiating offers, finalizing inspections before closing, and even setting up appointments with lenders so you don’t have to spend hours doing that yourself.  Why you should hire a realtor when buying a home First and foremost, an agent can help you find the right property to suit your needs. If you’re looking in a popular market, you’ll likely be competing against multiple other buyers for the same limited supply.  An agent who knows the neighborhood and the market can help you find the property that meets your needs that may otherwise be overlooked. An agent can also be useful if you’re buying a short sale or foreclosed property, where the process can be particularly complex and challenging.  Why you should hire a realtor when selling a home Real estate agents can help you price your property appropriately from the start, so you don’t end up sitting on the market with few showings and even fewer offers.  Agents can help you make sure the property is ready to go on the market and that proper disclosures and comparative data are included in your listing so potential buyers know what they’re getting and when they should make an offer.  Core services real estate agents provide Real estate agents provide access to a huge network of potential buyers and sellers. Agents build relationships with other agents who can help them show your home to its maximum potential.  They also have access to tools, data, and websites that you might not have the time or resources to use effectively on your own. Agents also have access to home value estimators that can help you determine the optimal price for your property.  In addition, they can help you navigate the paperwork and “behind the scenes” tasks like scheduling inspections, setting up financing, and communicating with contractors. Key mistakes to avoid when hiring an agent First, you want to make sure you’re hiring a reputable agent. When you interview agents, make sure they are licensed and have access to your listing on the MLS (Multiple Listing Service).  Second, you want to make sure you’re hiring an agent who is well-suited to your particular needs. For example, if you’re looking for a condo in a certain neighborhood, you may want to find an agent who specializes in those properties.  You also want to make sure you’re hiring an agent who has experience with the type of property…

WHAT TO KNOW ABOUT RISK RATING 2.0 FLOOD INSURANCE

With the introduction of Risk Rating 2.0, New Orleans flood insurance is changing. With the new program, everything has changed. What is Risk Rating 2.0? FEMA will establish flood insurance rates that are fairer and more equitable. Rate increases and decreases will be equally distributed according to Risk Rating 2.0. FEMA has not been forthcoming about the data used in setting new rates. All those flood maps from years ago have been forgotten, and every property is now priced by its individual location rather than by its zone. If there is no federal levee, properties near open water will take the greatest hits. Don’t let your insurance lapse If the home was located in a preferred area, mortgage companies didn’t require homeowners to buy flood insurance. We have always recommended flood insurance for everyone because we have seen too many areas that were “never flooded”, end up becoming waterlogged. Under Risk Rating 2.0, if a policy in a preferred zone is allowed to expire, the premium to reinstate it will be priced at the current price. This could be hundreds to thousands of dollars higher than what you are currently paying. Already, we are seeing potential buyers walk away from homes in X, C, and B zones because they have flood insurance quotes. Although your preferred zone rates may rise to 18% annually, it is cheaper to keep the policy in place than to lose a buyer. Note to buyers about Risk Rating 2.0 Although it is possible to take out affordable flood insurance, we recommend you ask your agent about the final Risk Rating 2.0 premium. It’s not a good idea to purchase a house only to discover that the price has increased by 18% over the years.

Putting the “Real” in Real Estate

Putting the Real in Real Estate

Are you thinking of buying a home? Now more than ever, there are many videos and advertisements explaining the best ways to buy a home or sell a home, but rarely do these authors provide the truth about the property for the average consumer. Here are a few tips and tricks that the smart homebuyer and home sellers engage in when involved in a real estate transaction. The Home Buyer Before purchasing a home, it is essential to locate a competent Realtor to guide you through the process to maximize your dollar and time search.  The most overlooked consideration when shopping for a buyer’s agent is that, many times, working with the agent of your choice can be totally free to you, as buyer’s agents are usually paid for by the seller of the property you buy. Looking for a home can be an extremely stressful event to complete so it is vital to jot down precisely what you want from the new home so that when the closing occurs, there will be no regrets or buyers remorse at the end of the day. The last thing a home buyer, especially a new home buyer wants to occur is to have a home that they are not satisfied. The first step is to understand one’s finances and the amount that can be afforded per month towards a mortgage. Calculating your costs can be done with a mortgage calculator online quickly. Another great way to ensure that you have all the necessary information before purchasing a property is to attend a home buyer education course. These courses are very beneficial and offer a great deal of insight into the world of buying a home, from finances to closing. Afterward, get a highly qualified Realtor to help guide the direction of the home buying process. The Home Seller Before someone is ready to sell their home, it is essential first to decide whether to sell your home cheap, or pay a premium to a full-service broker. The decision on how to sell the property is the very first step to the home selling process. Once the decision is made, the next step is to be sure and assess the comparable property sales in the area so that the property can be priced correctly to sell. If the property is underpriced, the seller may lose a great deal of money. This is the worst-case scenario for anyone selling their home because the purpose of selling a property is to be sure and get back the money that was invested in the first place. Another reason why you want to be confident and look at the comparables is to ensure that the property is not overpriced. If the property is overpriced, unless there is a super motivated and super-rich buyer, the property will likely sit on the market and not get any traction. Once a property is placed online to sell, the number of days on the market is something that the majority of home…

Boston Home Ownership Trends 2019

Boston Home Ownership Trends 2019

Home Ownership Trends For Boston 2019   If your plans for 2019 are to buy a home in Boston, then the time has arrived. Keeping an eye on the changing tides of the housing market can help to choose the best time to enter the market. No one can fully predict the housing trends, however, one could get a sense of the forces that will push thing a certain direction.   More Homes For Sale   In particular, there will be more houses for sale in South Boston in 2019. The homes hitting the market are not enough to keep up with the demand of those wanting home ownership and wanting to buy real estate.   This year the inventory of available homes will rise and recover. The growth will continue, but it will not be blockbuster sales. Buyers love this news, whereas sellers come to a different type of reality. If you try to sell a home, then there will be more competition. Adjusting expectations in the selling market will be a requirement.   Luxury homes usually have a stronger economy, with higher paying jobs. Luxury home growth will be modest. An increase in high-end inventory is expected in Seattle, Boston, Savannah GA, and New Orleans. This may include neighboring towns. These areas could see themselves in the double-digit gains in inventory.   Affording A Home May Still Be A Challenge   The tides may be changing and in favor of the buyer. Home buyers will find it to be easier with more options. At the same time, it will also be a challenge because of the increase in mortgage rates. Mortgage rates could go up to 5.5%, which means a monthly mortgage payment could rise to about 8% higher next year. Meanwhile, personal incomes are not growing at such a rate. Homeowners will feel the pinch. This realization is tougher on first time home buyers. First time home buyers tend to borrow the most and are starting out with no equity to draw from.   When Will The Housing Market Slow Down? Millennials Continue To Dominate Millennials used to be the new kids in buying homes. Now their numbers have grown and they are a big group of home buyers. Millennials account for 45% of mortgages today. With 17% belonging to baby boomers and 37% to Generation X’ers.   Still, the first time home buyer will find it a challenge to jump into the game of buying a home. Those who have home equity will gain more benefits. boston real estate market 2019 Millennials will also carry with them the debt of student loans and typically want to spend money on travel and experiences. Those experiences take away from their down payment which could aid in a lower mortgage payment. Millennials may compromise instead and buy less space, but still own a home, for example.   Tax Law Questionable   The proposed revision of the tax code was battling its way through Congress. Now, we still don’t know, and…

Real Estate Tech Byte

Real Estate Technology

A Website Is A Must So many people go to the internet to answer their questions and solve their problems these days. Real Estate is no different.  Home Buyer’s and Home Seller’s will go to their internet 97% of the time when searching for homes per the National Association of Realtors (NAR). If you are going to be an active, producing Real Estate Agent in today’s market, you must harness the world of technology.  Having a website used to be an option, now it is the norm.  After you have your professional website designed, up and running, it is time to put it to work for you. Utilize Social Media As a Real Estate Agent you will spend a lot of time on Social Media.  Interacting with other professionals in your industry, posting your listings for the world to see and even advertising your open houses.  You want to be sure that your website has the links to your Social Media pages.  There is a wide selection of Social Media Icons to choose from, and they include Facebook, Twitter, Google+, and others.  Any place you can be on Social Media, you can find the icon and need to link it from your website. This will help get you to your goal of optimizing the results (the clicks) on your website. SEO Every day people are searching for a house to rent, how to sell their home fast, a home to buy, commercial property to invest in, and lots more.  The way to get these answers in front of them is through your website, through SEO.  A website, & utilizing Social Media, are the beginning of things that go together to build up your SEO. SEO stands for Search Engine Optimization.  To get people to your website, you need capitalize on the use of SEO. The use of SEO will get your page ranked higher on the results of a Google search, Yahoo, Bing, and other search engines.  SEO is doing everything to let Google know that YOUR page can answer the questions that are typed into the search box. Here are 5 Tips For SEO Beginners Have a good, updated website. If you do not feel comfortable building a website, then absolutely hire a professional.  SEO will not matter one bit, without the website to optimize. Write so that the average person can read it and use the information. Use keywords, words that people would use in the search box. Ie: “How to Stage My Home To Sell”, “Should I Hire A Real Estate Agent?”, maybe the homes for sale in the geographical area that your work in. Share your content on Social Media (as mentioned above)  Link Inside  On each the pages on your website, try to  link to other pages on your website. Hire an SEO Professional. SEO is constantly changing and evolving.  It’s not overly expensive to utilize a good SEO expert and that could mean your site reaching the top, or not.  An SEO Professional knows the…