3 Reasons Americans Count on Their Homes After Retirement

Retirees who own their homes outright are often at an advantage over their renting—

and retired—counterparts. There are two reasons for this: their housing costs are generally

lower, and they have access to safety-net cash in the form of home equity.

However, all homeownership is not created equal. For example, if you move often, owning

a home outright by age 62 can be challenging.

 

Since the big goal for retirement is to eliminate as many expenses as possible, erasing

a monthly housing payment is optimal. Having a long-term financial plan, including what

homeownership looks like in retirement, is extremely important. Renters who plan on

staying in the same general area for years to come should consider buying.

1. Benefit of eliminating monthly payments:

The twin bridesmaids of finances are income and expenses. When people retire, the money

coming in usually shrinks, which means so should the money going out. A mortgage payment

is one expense soon-to-be retirees should try to get rid of. If you can be mortgage-free by the

time you reach retirement, you'll be in a good position.

Mortgage-free retirees can save hundreds or thousands of dollars each month. Even with

property insurance, and taxes, the cost of owning a home is often less than renting.

Not only can retirees save on their housing costs; they can also make money on their homes.

Retirees who travel can earn money while they're on vacation through sites like Airbnb.

Another option to get extra cash flow is to rent a room. Downsizing can also save you money.

Going from a large family home to a cozy condo or smaller house can reduce utility costs as

well as allow you to cash out some equity in your home to fatten your nest egg. For people

not ready to sell, there are other options that allow you to tap the equity while keeping the house.

2. Benefit of having access to home equity, if needed.

There are several ways homeowners can tap the equity in their home without putting up

a for-sale sign; two of the most common ways are a cash-out refinance and a home

equity line of credit, or HELOC.

Equity-rich homeowners who want to lower their mortgage interest rate might consider

a cash-out refinance.  

A cash-out refinance is almost like selling your house to yourself. The bank would cut you

a check for the equity, which is the difference between what you owe on the house and

the market value. If your home is worth $200,000 and you owe $100,000, then you have

$100,000 of equity in the home.

Banks usually limit the amount you get to 80 percent of the total equity. That means with

$100,000 in equity, the bank might give you $80,000. The amount you qualify for is usually

based on income, credit score and other determining factors.

Now comes the tricky part: When you do a cash-out refinance, you'll get a new mortgage.

If your interest rate is high because of poor credit or market conditions and you think you

have a chance of getting a lower interest rate with a new mortgage, then a cash-out refinance

might be an appealing way to access your equity; however, if your mortgage interest rate

increases with a new mortgage, then you should consider other options, such as a HELOC.

Something else to keep in mind is the fact that a new mortgage usually means going back

to square one if you choose a longer term. If your house is a few years away from being

paid off, restarting the clock is probably not a good financial move.

3. Even with a mortgage, there are  liquidity options.

For people who want to keep their homes and existing mortgages while tapping their

home equity, one alternative is a HELOC.

The benefits of HELOCs are that you only pay on what you use and the interest is tax-deductible

if you use it to repair or upgrade your home. For retirees who want to retrofit their homes to

make life easier, such as installing stair lifts, grab bars and handrails, a HELOC could be a good

way to fund those upgrades and get a tax break. It is important to remember that once you use

that equity, it will likely take years and even decades to rebuild it.

The dual benefits of lowering your living expenses and having access to cash in emergencies

are great reasons to sail into retirement without a home loan springing a leak in your budget.

For more information go to https://homesalesneworleans.gardnerrealtors.com/

What Is a Perfect Home?

When searching for a home it is important to identify what "perfect" means to you. The easiest way to start is by making a list of priorities. What is a "must-have," what would be nice to have, and what isn't important?  

We have all lived in places that at first glance we thought were suitable, only to find out later that the kitchen we initially thought was cozy was actually far too small for our needs, or that the seemingly bright living room only gets direct sunlight for a two hours a day.

Before scouting the market you need to know what you can afford.  Getting pre-approved for a mortgage first will make the whole process much easier. A trap that many buyers fall into is assuming that the maximum amount they can borrow is what they should spend on their new house. Look at what your monthly payments would be, and ensure that your budget factors in all ongoing maintenance costs,  as well as room to put funds aside each month for emergency maintenance.

Experienced Realtor is your key to success. Having the right professional working for you can be the difference between a smooth buying process and a costly disaster. Hiring a real estate agent provides numerous advantages. An experienced REALTOR® can find properties that you may otherwise miss, negotiate prices and recommend lenders.  Experienced Realtor is also able to answer any questions you may have about a property, as well as any you may not have even thought to ask.

For more information or to search for homes visit https://homesalesneworleans.gardnerrealtors.com/

How to Sell your Home in No Time

Here are four top tips for getting your house ready to list for a ton of interest and potential bids:

Give Your Yard Attention

Cleaning up your yard and making it look welcoming will attract more potential buyers; curb appeal can add as much as 5 percent value to your home—and there are many improvements that can give you a large return on investment. Some of the best options are upgrading your mailbox, fixing your siding and adding walkways.

 Paint Inside and Out

Buyers want to see a fresh, clean space when they visit your home. By painting inside and out, you have the chance to apply a neutral tone throughout the home. Agents often tell sellers to use a bold color on the front door to add appeal and draw the eye to the entrance. Consider hiring a professional painter to help ease the process.

 Price Your Home Intelligently

The right sales price for your home is often the best way to sell your home quickly. If priced too high, you may scare buyers away before they even come to an open house, but, if priced too low, you may lose out on money. Work with your agent to price your home appropriately for your location! 

 Depersonalize the Space

Buyers want to look at a home as if they are moving in. Staging experts suggest that you rent a storage room and pack up everything that shows your family, pets or lifestyle until the home sells. Another idea is to hire a professional staging company to give you some tips.  They will provide insight into the colors, accent walls and accessories that'll play up the characteristics of your home, making for a great house showing. If you follow these tips, you should be on the road to selling your home in no time!

To Search for homes visit https://homesalesneworleans.gardnerrealtors.com/

Are you planning to sell your home?

Are you one of the home owners that are planning to sell in 2016?

Whether it's a pending relocation or a thoughtfully planned downsizing that can occur at your own pace, it's a seller's market out there right now. Regardless of that, it never hurts to take proactive measures to ensure your home sells as quickly as possible and for the best price!

Here are some suggestions:

Exceed buyers' expectations. Get your property into tip-top shape before you put it on the market and you’ll eliminate most buyers’ potential objections. If there is no immediate turnaround pressure, sellers should spend some time figuring out what they can afford to do to make their property appealing and what repairs are necessary. Work with a REALTOR® to gain additional insight, suggestions and advice on what would bring sellers the most “bang for the buck”.
Don’t price your home without a comparative market analysis. Ask an experienced Realtor for a CMA to help you understand what it will take to sell in your neighborhood.

Don’t wait for values to go higher before you put your home on the market. According to the National Association of REALTORS®, new home construction is still lagging behind job growth. Additionally, there are more buyers considering the housing market today, as a result of continued improvements in the job sector.

For more useful information got to http://www.homesalesneworleans.com/

What Drives Home Buyers Nuts

It's not a secret that some sellers do things that drive buyers nuts. Here are just some:

1. Many sellers don’t want to accept the fact that their home is worth substantially less than they paid, or what they thought it was worth. Some sellers base the asking price on what they “need” (like the balance left on their mortgage). Or they calculate the price they paid, plus the cost of renovations or sweat equity. The problem is that none of those factors has the slightest relation to what a house is worth. As a result the sellers set an unrealistic price, and that drives buyers nuts.

2. Occasionally you see ads that read “cash or conventional preferred.” Or the more flagrant version: “No FHA or VA “. Some sellers may mistakenly believe closing on a government-secured loan will take longer, when in truth, some conventional loans can be harder to close. A few sellers may suspect their homes won’t pass the more stringent inspection conducted by an independent, government-certified professional. Those restrictions drive buyers nuts.

3. “Silent treatment” is another one! You look at the asking price (which is a little high), study the comparables and make a solid offer. And you’re met with … silence. Instead of seeing your well-researched bid as a place to start negotiations, the sellers act offended. Whether the seller’s “offense” is strategic or genuine, it’s not smart to ignore an offer.

4. Covering up flaws is the next pet peeve. From employing strategically placed carpets to concealing unpleasant facts about the home, attempts at deception drive buyers batty. Advice to sellers: disclose everything, no matter how minor.

5. What drives a buyer crazy? Falling in love with a house that’s not really for sale. That's called “Playing Mind Games”. Or falling in love with one that has problems that a seller refuses to fix. Sellers who refuse to make needed repairs believe the buyers are hooked. And for buyers who decide to go ahead with the purchase the big question becomes: “Where’s that money for repairs going to come from down the road?”

To search MLS go to http://findneworleansproperties.gardnerrealtors.com/

Curb Appeal When Selling a Home

Is the interior or the exterior more important when selling a house? Before buyers decide to go in, they will look at how appealing your home is by driving by. While the inside of a home is important, sellers make a big mistake when they neglect the exterior. Curb appeal is often a potential buyer’s first impression of a home. If you’re selling your home or about to, how can you quickly and effectively tackle the outdoor appeal? Here are some tips:

1. Start with the Front Door. A new entry door consistently ranks as one of the best projects in home repairs, yielding an increase in home value that’s greater than the costs to install one. To make the door especially captivating, consider painting it a bold, pleasing color that will grab attention and add charm.

2. Make Any Necessary Repairs. Is the window cracked or the front doorbell busted? Fix that! Buyers want turnkey, move-in-properties, and that means they want properties with repairs already done.

3. Landscaping. From mowing the lawn to pulling weeds, make sure you’re keeping up with your outdoor landscaping so that your home looks presentable and well cared for at all times. Landscape lighting can make all the difference in terms of how a home looks, so make an investment in attractive lighting options that illuminate and add interest to your property.

4. Touch Up Paint. Repaint the exterior or at least touch up problem areas. Another idea is to paint the trim a new color that creates either a nice complement or contrast to your home’s overall look.

5. Make Over the Mailbox. You might not think a mailbox matters much, but it’s yet another one of those little details that can add up together to make a strong impression on a buyer.

6. Add Outdoor Furniture. From rocking chairs on the front porch to an outdoor patio set on the back deck, outdoor furniture creates outdoor living spaces that expand your home’s appeal. Whether or not you include these pieces with the home sale, setting them up is a great way to stage your home for greater resale value.

The bottom line when it comes to curb appeal is that a little investment today can add up to big rewards tomorrow. 

For more tips visit http://findneworleansproperties.com/

Housing Prices Went Up Again in April

While spring is typically the setting for a strong market, low inventories and growing sales may be the culprit of rocketing prices. Home prices continued their upward climb in April, with a 2.7 percent monthly advance, moving the year-on-year gain up to 6.8 percent. This forward motion represents 38 months of consecutive year-over-year increases in home prices. 

Old-fashion supply and demand, fueled by historically low mortgage rates and improving consumer finances and confidence, continue to push home prices up. Including distressed sales, 30 states plus the District of Columbia were at or within 10 percent of their peak prices in April. Included among these states are Colorado, Alaska, Wyoming, Tennessee, Texas, Nebraska and New York. Selected markets such as the urban cores of Tampa and St. Petersburg; South Tampa; North East St.Pete; and the beaches, are extremely hot. All are at pre-recession levels with very low supplies.

For more information visit http://findneworleansproperties.gardnerrealtors.com/

Downsizing Tips

If you are planning to downsize is in the foreseeable future, idea of paring down the possessions might seem daunting. But if the home will be placed on the market, you’ll likely have to cut clutter nonetheless. Here are some tips:

1. Plan backwards from moving day. If you have a clear idea when you plan to move, start downsizing three months prior. Sorting through one room at a time is best.

2. OHIO rule. “Only handle it once.” Avoid placing items in “maybe” piles. Ask yourself if you would replace the item if it disappeared – this will make the process feel much less like a trashing of beloved possessions.

3. More isn’t always better. Don’t be afraid to purge duplicates. The same applies to clothing – avoid holding on to garments that no longer fit, but might “one day.”

4. Scale back collections. Cutting a collection can be upsetting for anyone, downsizing or not. Approach the process as gently and practically as possible. Ask yourself which items are favored more than others, or limit the amount based on display space.

5. Get cash for your castoffs. If you’re planning to sell an item, start early – some things may not move as quickly as you’d like, and you don’t want to be stuck with items you no longer want come moving day. Garage sale, E-Bay, Craigslist, Auctioneers -you are to determine what will work best.

6. Donate. Donating items to charitable organizations can make parting with possessions much more manageable. The Salvation Army will transport big-ticket items like furniture or appliances. Other items can be donated to Goodwill or a local charity of your choice.

For more useful information go to http://findneworleansproperties.com/

What Attracts Millennials When Buying a Home

Social spaces
Entertaining friends is very important to millennials, the more places in the home that are conducive to socializing, the more attractive it is to younger buyers. Put taller than usual table with bar chairs in the kitchen to give the impression of being a good place for a crowd to place their drinks during a cocktail party. If there is a balcony, try to fit a grill out there if it is allowed, it represents freedom and adulthood more than most other pieces of furniture.

Millennial-preferred amenities
Access to superior technology is important to this demographic, so take the time to research options available for those in your home. Millennials want a place to charge all of their gadgets, so build in shelves right next to electrical outlets as designated charging stations.

Showcase storage
Many millennials in urban areas don’t want to own a car, so their biggest burden is what to do with their bike. In small condos there isn't usually room to store them so they end up taking up space in the living room. One of the solutions is to mount a bike vertically in the wall space behind the entry door.

For more staging tips go to http://findneworleansproperties.gardnerrealtors.com/