Collins & Demac Real Estate



Posted by Collins & Demac Real Estate on 11/2/2017

People often talk about boosting the value of their home with various improvements. But it is seldom that you hear anyone talk about the unforeseen factors that devalue their home. Furthermore, there are some fluctuations in a home's market value or appraisal value that are out of the homeowner's hands. In this post, we'll break down some of the broader aspects of home value and determine which "improvements" will serve you best in the long run. We'll also point out the red flags that are sure to devalue a home on the market.

Location

Few things so greatly affect the value of your home as location. If you happened to buy a house in Brooklyn Heights a couple decades ago its value has probably gone up exponentially since then due to the high demand of living in a trendy part of New York. Aside from living in the hippest neighborhood, people choose their home based on other location factors. Schools, hospitals, shopping centers, vicinity to highways or public transportation may all play a big role for many people. Location factors that will negatively affect the value of your home are high or increasing crime rates, economic decline (boarded up stores aren't very appealing to home buyers), a high incidence of registered sex offenders nearby, and neighbors that have unkempt homes or hoard junk in their yards. Other location factors are harder to sniff out. With the exception city dumps or waste processing centers--which you won't have any trouble smelling--having undesirable places like power plants or noisy freeways in your neighborhood can also devalue your home.

Inside the home

Home improvements are a great way to increase the value of your home--as long as those improvements meet a few criteria. Any changes you make should be legal and up to code. Potential buyers do not want the liability of illegal home improvements, nor can they ensure that the job was safely done and doesn't put them and their family at risk. Your improvements should also be up to social standards and changing tastes. Yes, we all have our own preferences when it comes to paint colors and home decorations. But when trying to sell a home it's important that it doesn't look like a time capsule from the 70s, rife with wood panels and shag carpets. When it comes to home repairs many homeowners elect to put off big projects because they are daunting and time consuming. Instead they focus on surface level improvements that might not do much to improve the value of their home. If you have plumbing that needs to be replaced, deteriorating flooring, or faulty heating and ventilation, make sure you take care of those before putting your home on the market.

Ask the pros

If buying or selling a home is in your foreseeable future, one great way to get a jump on your research is to consult a real estate agent and a building contractor to learn more about your area's own unique market values. This will give you a head start on making changes to your home and will tip you off on what to look out for when home hunting.





Posted by Collins & Demac Real Estate on 10/24/2013

It is common question that real estate professional get; what is my home worth? Unfortunately, it is a question that does not have an exact answer. There are ways to determine about what your home is worth. You may find online estimates that say one thing but is that a true test of what the market will bear? So, how can you really determine what your property is worth? 1. Consider Solds-Look at other comparable homes in your area that have recently sold. This will give you a good idea what buyers are willing to pay. 2. Consider Under Agreements/Pendings-Although it is difficult to tell what a home has sold for before it closes you may be able to tell the demand in a price range. Look at the asking price of the home and how long it was on the market. If you see a trend of homes going under agreement quickly you may assume they are going closer to the asking price. 3. Consider Active Listings-Real estate is about competition just like any other commodity. It is important that your home be competitively positioned against other comparable listings. The asking price is a part of the marketing plan of the home. 4. Online Values-Be wary of online estimates. The very definition "online" takes the human factor out of determining the value.  A computer program cannot take into account the nuances of location, home style and home condition. 5. Sell It-The only way to know a home's true market value is to sell it. At the end of the day a home is only worth what a buyer is willing to pay.  





Posted by Collins & Demac Real Estate on 9/26/2013

The past few years the news has been inundated with bad press about the housing market but the facts remain the same it is still better to own a home. In fact, there are more reasons than ever to buy a home. If you are on the fence about buying you will want to take note of some of the benefits of homeownership. Pride of Ownership It belongs to you! That's right, renovate, update, paint, and decorate to your heart's desire and you don't need to ask permission or waste money improving something that you do not own. Your home is your own so plant trees, install a pool, put up a fence, expand the patio, redo the basement or do anything you want. Owning something feels good. Equity Homeownership is about building long-term wealth. It may seem that buying a home has a lot of upfront costs but historically homes appreciate by about 4 to 6 percent a year. When you purchase a home, you build equity with each payment. Equity is the difference between what the home is worth and what is owed. Equity can be used to build wealth, save for retirement and even to secure a loan. For example, an $800/month rent payment equals out to be $48,000 over five years with no financial gain to you. Tax Benefits Homeownership has huge tax benefits. In the early years of a loan, mortgage interest is the largest part of your mortgage payment. Mortgage interest is fully deductible on your tax return. For example, a homeowner in a 28% federal tax bracket could lower their borrowing costs by almost a third. Better Living Studies have shown that owning a home can actually make you healthier, and is better for your family too. The U.S. Department of Housing and Urban Development (HUD) report: says “Homeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes homeowners pay, and from stable neighborhoods homeowners create”. The National Association of Realtor's Social Benefits of Homeownership and Stable Housing reports homeowners experience: -Higher educational performance and better behavior of children -Lower community crime rates -Lessened welfare dependency among households -More household participation in civic affairs -Better household health Bottom line, it's a great time to buy! Interest rates are at historic lows; homes are more affordable so go ahead and invest in a safer, healthier, better future for you and your family today.





Posted by Collins & Demac Real Estate on 3/28/2013

Buying a home is a very important decision. Before you rush into a home you should consider all the factors. Making sure you end up with the right home involves figuring out exactly what features you need, want and don't want in a home. Before starting your search, you should make a "wish list" to decide which features are absolutely essential, which nice “extras” are if you happen to find them, and which are completely undesirable. The more specific you can be about what you're looking for from the outset, the more effective your home search will be. Also keep in mind, that in the end, every home purchase is a compromise. Create your own personalized "wish list" and when you're finished filling it out; share it with your real estate agent. Become an educated buyer •The web is one of the best ways to search for homes today. With this website, you can receive daily emails with new and updated listings from the towns and price range of your choice. •Search the entire MLS for all homes, condos, land, multi family, commercial properties, and past sold properties at your convenience. •View full listing sheets showing amenities, taxes, lot sizes, beds, baths, rooms, siding, fireplaces, garages, room sizes and much more. •Get property addresses and see where the properties are located on MapQuest. •Check schools and community profiles of your preferred towns. •Save preferred listings in your own file to view anytime. •Calculate approximate mortgage payments for specific properties. Home Inspection Once you have made an offer on a home, you will need to schedule a home inspection, conducted by an independent authorized inspector. It is extremely important to hire a reputable inspector so that you know exactly what you are buying. Do not hesitate to ask friends, family, and co-workers for advice. If you are satisfied with the results of the inspection, then you can proceed with the sale. If the inspector finds problems with the property, you may want to negotiate with the seller to lower the price, or to pay for certain repairs. Appraisal Your lender may require you to get an appraisal of the house you want to buy, to make sure it is worth the money that you are borrowing. You may select your own appraiser, or you may ask your real estate broker to help you with this task. Homeowner's Insurance Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs. Settlement or Closing Finally Make Sure Before you Buy Finally, you are ready for the closing. Be sure to read everything before you sign! You should have both your real estate broker and an attorney present at the closing to ensure that all is in order.







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