What to Know About Selling Your Home

 

If anyone has ever told you, “It was easy to sell my house,” they might be glossing over the truth. Selling a home is a nerve-racking experience for most Americans.

 

Prepare yourself for when it’s time to sell yours.

 

When you to sell your house, it can improve your financial health for years. Predicting the housing market is an enormous challenge. But you can take charge of your financial future and get the most value from my property.

 

There are countless reasons to move, many of which you wouldn’t expect. For example, you might need to move for work or military service. You might fall victim to economic difficulties out of your control.

 

That’s why preparing your home to sell begins now. You can improve your home’s value as you learn about the market, you might even be able to take advantage of home improvement tax credits.

 

Soon you’ll be the one saying “it was easy to sell my house,” without hesitation.

 

What Should I Know Before I Sell My House?

 

In a moment, we’ll provide several tips to help you prepare for your sale. You can begin preparing and researching for your sale at any time. You’ll need only a little more effort to prepare once the time finally comes.

 

When people think about selling their homes, they think about the market. But the most important factor is the inherent value of your home. Homes can be a great investment because the value of your home will often go up over time.

 

This isn’t always the case. If you haven’t maintained the property, the value will drop. And renovating your home may cost more than it’s worth.

 

Where is your home located? Depending on local changes, your value could have increased over time. If there are new shopping outlets or access to public transportation, this can add to your property’s value.

 

Forbes says it’s just as difficult to predict the housing market as the stock market. This should be a factor when you’re ready to sell, but your main focus should be the property itself.

 

How Do I Prepare to Sell My House?

 

You now understand the important considerations for determining the value of your home. How can you contribute to your success starting now?

 

The following five tips will help you get started towards realizing financial success. Whether you’re selling in three years or you need to sell this month, you can take these steps to get started.

 

1. Research Your Local Housing Market

 

It’s hard to spot market trends, even for financial advisors. But you can find the mean value of similar properties in your area to get an idea.

 

Start by looking into the area’s real estate history. Consider why people migrate here and how the housing prices have changed. You can estimate whether or not your home’s value is close to your ideal sale price.

 

Try to understand your buyers. Why do people buy homes in this area? Is it to get away from the city, or for quick access to urban centers?

 

Don’t forget to look into what buyers prefer in a home in your area. If most of your neighbors have raised decks, perhaps there is value in putting one in. This should factor into interior design as well.

 

2. Increase the Value of Your Home

 

Among all considerations, you have the greatest control over the quality of your home. You now have an understanding of local preferences and trends. How are you going to apply that knowledge to your renovations?

 

While some renovate their homes for personal use, renovating for a sale can be a worthwhile investment. That’s because you can sell your home for more and make up for the cost of the renovation. You can drive a profit this way.

 

Don’t go overboard. Think about whether buyers in the area can afford the property before adding a swimming pool, for example. You’ll get stuck with installation costs and no buyers if your home is too expensive.

 

But renovating kitchens and baths can be easy. While there are thousands of options available, some basic browsing online can lead to desirable outcomes.

 

There are plenty of options for finding the help you need as well.

 

3. Compare Property and Market Value to Your Own Financial Needs

 

It’s essential when selling that you come out ahead. When you move to a new location you’ll need capital to kickstart your new life.

 

But you need to make sure you can sell in the first place. If you add too much value to your property, you could over-invest and inflate your price tag. Use your market knowledge to determine what high-tier buyers in the area are willing to pay for.

 

Find a happy balance between maximum value and market friendliness. Get someone in that home quickly at a price that’s right for you both.

 

4. Build a Team of Renovators, Family Members, and Real Estate Professionals

 

You will need help to renovate your home. Whether that’s you and your spouse or a contractor will depend on your budget.

 

You can save a lot of money by recruiting friends and family for simpler tasks. For others, you may need to hire a variety of help. There are dozens of systems and materials that must be checked.

 

These projects are unpredictable and can go over budget. You need to know who you’re hiring, their backgrounds, and their previous work. The advantage is a superior, professional job.

 

Next, hire a real estate professional to help sell your house. A share of your revenue from your sale will have to go to this person or company. However, they will relieve you of work and get you the best price for your investment.

 

5. Prepare to Sell Your House

 

Your real estate agent will need to show your house to potential buyers. You will also need to keep your home in top condition. This can make your living environment awkward for a while.

 

Be sure you have some recourse if you need to get out of the house for a while. Be sure you have direct communication with your real estate agent at all times as well. Now is the time to start splitting up tasks with family members depending on your schedules.

 

The Best Transition for Your Family

 

The most important thing about moving is the well-being of your family. Providing for them as you enter a new environment can be an emotional and financial challenge.

 

If you get the most out of your sale, you’ll be equipped to support them with changes right away. If you get the help you need, you’ll have more time with them before the move happens.

Financing Home Construction

America’s new construction market is hot right now. In fact, homebuilder sentiment is at its highest level since the 1990s. This means that demand for new construction is on the rise. Demand is largely driven by a strong economy; unemployment is low, wages rising, and home values recovered. Read on for a guide to financing a new construction. Learn more about securing home construction loans.

 

Consumers and homebuilders alike are confident in the housing industry. In particular, new homes are a desirable option for home buyers.

 

However, the home construction process is vastly different than purchasing an existing home. Each milestone is different from the timeline to home construction loans.

 

New vs. Existing Homes

Before diving into financing, it is important to understand why buyers opt for new over existing homes. According to industry surveys, buyers prefer new over existing by a margin of 2 to 1.

 

There are many benefits to purchasing a new construction. For starters, the home is brand new and will not require heavy maintenance for many years.

 

Another big positive is that new homes are customizable. This means that you can design the perfect home, from the bathroom flooring to the kitchen light fixtures. You can influence the home design down to the smallest details.

 

What Are the Negatives to New Construction?

While these are enormous benefits, there are certainly disadvantages to buying new. One well-known negative is price creep.

 

Designing the perfect house is expensive. Small details such as finishes and cabinet hardware seem like minor expenses, but add up quick.

 

Existing homes include upgrades that retain only a fraction of the investment cost. For instance, the addition of a swimming pool adds a maximum of 7% to a home’s value.

 

This means that the seller paid tens of thousands for a new pool, and the buyer acquires this amenity for a fraction of the cost.

 

Buyers of new construction pay full price for amenities that depreciate in value, just like a swimming pool. When it is all said and done, new homes are up to 20% more expensive than an analogous existing home.

 

All that being said, for many buyers, the benefits of new construction outweigh these negatives. The price premium is worth it for a new roof and an uninhabited home.

 

If that is the case, it is time to investigate home construction loans. The primary takeaway here is to consider price creep in the financing amount. As a design-build firm, our proprietary process streamlines your project and budget, eliminating price creep.

 

Check out our article on the advantages of working with a design-build firm.

 

What Type of Home Construction Loans Are Out There?

There are two types of home construction loans. The first is called a construction-to-permanent loan.

 

For this type of loan, you finance the construction up front. When the home is completed, the lender converts the loan into a standard mortgage.

 

The second type is called a stand-alone construction loan. Simply put, this type of loan pays for construction only. When the home is complete, you apply for a second loan to cover the builder’s incurred debt building the home.

 

Each type of loan has positives and negatives that you must weigh before selecting an approach.

 

Construction-to-Permanent Loans

 

Of the two different home construction loans, this is the preferred choice for many. The most substantial benefit is the requirement for only one closing. This greatly benefits the buyer as only one set of closing fees is imposed.

 

Another benefit is that interest is only charged on the existing construction balance. This saves you money as interest payments on the total mortgage amount would be much higher.

 

Construction-to-permanent loans also afford the opportunity to lock in an interest rate. This is a popular move among American borrowers to mitigate the risk of increasing interest rates.

 

For instance, consider the possibility that the Federal Reserve decides to raise interest rates while your home is being constructed. This action is likely to increase mortgage rates, meaning a higher monthly payment for the next 15 or 30 years.

 

To address this inconvenient possibility, borrowers can pay points to lock in an interest rate ahead of closing. To pay a point, the borrower simply pays 1% of the loan amount upfront.

 

Construction-to-permanent loans do have a significant negative attribute. This type of loan typically requires a down payment of 20%, which is difficult for many buyers.

 

Stand-Alone Home Construction Loans

 

Remember, the stand-alone construction loan requires 2 separate loans to move in. The first loan covers construction expenses. The second loan is a traditional mortgage.

 

The greatest benefit to this type of loan is that down payments less than 20% are more common. For cash-strapped buyers, this may be the only option to purchase a new construction home.

 

After construction runs its course, the cash-strapped buyer can then pursue an FHA loan with a 3.5% down payment. Electing this type of financing is also good for buyers that have not sold their current home yet.

 

While this is a significant benefit, there are a number of negative attributes to this type of loan. For starters, you are required to pay closing costs twice.

 

Another negative is the inability to lock in an interest rate. Because the loans are treated separately, you are exposed to volatility in the rates market.

 

Lastly, you run a greater risk of failing to qualify for the mortgage. If your financial circumstances change during construction, it may hinder your ability to secure a mortgage.

 

What Are Some Other Financing Options?

There are a few other ways to secure financing for a new construction. Some banks offer a bridge loan that allows you to utilize the equity in your current home.

 

This option gives you access to funding while you wait for your home to sell. However, this is viewed as a risky proposition in the event that the home does not sell quickly or closes for less money than anticipated.

 

Another potential option is development financing. If the construction volume exists, a builder may offer financing options to you.

 

Wrapping Up

 

Securing a home construction loan can be tricky, especially if you are tied up in an unsold home. Lack of liquid assets is another issue that routinely plagues buyers. The good news is that there are several financing options to pursue depending on your situation.

Purchasing Land to Build A Home: Mistakes to Avoid

You’ve lived in the city long enough and are ready for a change. You have your finances in order, and you’re ready to invest in your new home. This article outlines the most important practices when buying vacant land for sale.

 

You don’t want just any old house, though. You want your home to be brand new and custom-built on land that has yet to be developed. You want to be present for and in control of the entire process.

 

You want to purchase a vacant lot for your home.

 

Before you do that, there are some things you need to avoid. You need to do your research, and you can start here.

 

Remember to Check Zoning Codes

 

Just because you see vacant land for sale on the side of the road doesn’t mean it’s available for your new home construction. Zoning laws are usually strictly enforced, so certain codes will be required for the kind of lot you’ll want to buy.

 

If the lot is zoned to be for commercial use only, or for whatever other reason it won’t be available for residential building construction, there’s really not much you can do about it other than move on. For the state of New York, there are certain property type classifications you’ll have to consider before you buy the lot.

 

Visit your local assessor’s office to ensure you’re buying a properly zoned lot.

 

Avoid Talking to the Neighbors

 

Your knee-jerk reaction when considering vacant land for sale might be to inquire of the neighbors about the area – but don’t do it!

 

Sometimes long-standing residents are sentimental about the beautiful scenery provided by the lot next door. They might not want to see a new house taking away from the scenery of natural landscape. They definitely might not want to bear witness to the noise and ugliness of a long construction project like building your new home.

 

Whatever they may actually think about you purchasing the lot next to them, it’s happened before that neighbors attempt to sway potential buyers out of their purchase. Talking to them might result in you deciding to look elsewhere, simply because they presented more flaws than qualities of that lot.

 

Don’t be fooled, though. Purchasing any vacant lot will have some quirks to take care of, but it might still be worth it for you in the long run. There are other, more reliable ways of learning whether or not that is the case.

 

If you want to build a friendly relationship with your neighbors eventually, start building your home first so they have to get used to the idea of you being around.

 

Don’t Forget About Utilities and Access

 

Check into the legal availability of access to public utilities. Sometimes everything checks out with vacant land for sale except for access to water. That would be inconvenient, to say the least!

 

That’s why it’s best to research such access beforehand. You also might have to negotiate with surrounding landowners if you need easements on their property during construction. An easement is contracted access to land for the purpose of transport or other necessary arrangements, through the agreement of the landowner.

 

Be as friendly as possible for your best chance of being granted the easements you need.

 

Don’t Buy Vacant Land for Sale Without Checking the Surrounding Area

 

If you are looking into vacant land for sale, odds are that you are doing so in order to have an escape from the life of a bustling city. You are probably seeking fresh air and open skies.

 

Be careful, though, because there are still some issues that could be present surrounding the lot you are interested in purchasing. When you are prepared to invest your finances, you find a lot that has the proper zoning code, and you have made sure that it has access to the necessary utilities and transportation, take a wide lap around the property.

 

Look for things that might contribute to noise pollution – yes, even though it’s outside of city limits. You might find some surprises such as nearby railroad tracks or a shooting range that’s far enough away for your safety but close enough to hear it.

 

There might also be plans for commercial or government development close by that would affect either your view or your peace and quiet. Though there’s no way you will be able to predict all of the future possible development, but doing as much research as you can now prevent such surprises in the future.

 

Make Sure to Obtain a Survey

 

Though you probably won’t be able to get the lot surveyed until you have at least a title agreement (which you would receive after purchasing the lot from the seller), it’s in your best interest to get a professional survey done as soon as possible.

 

A survey will show you exactly where the property lines are. If you make the mistake of avoiding a survey, there are chances you could be missing out on some of your own property due to your lack of diligence.

 

It will also show you if there are any interesting surprises in store for your land, such as accidental encroachment of your neighbors onto the property. Such possible circumstances make obtaining a survey legally advisable, perhaps from the commonly respected American Land Title Association.

 

The survey will also disclose any existing easements on your property. It would be good to know if strangers are allowed to come and go through your land as they please!

Trust Your Architect

 

You’ll want to find a knowledgeable architect before you even begin the process of choosing the vacant land for sale on which you want to build.

 

The guidance he or she can provide could be the difference between making the right and wrong decision when it comes to picking your lot. Architects are able to tell you the structural possibilities of the land you want to purchase.

 

If you’re considering building a custom home and have questions about the land you are considering purchasing, reach out to us today for expert advice on purchasing the lot for the home to be built upon. We will be with you every step of the way, up until you first walk into your brand new home.

 

If you found this article helpful, you might also enjoy our recent article for more tips on choosing a custom home builder – this will help you in the next important step of the process.

 

Good luck!

Choosing A Custom Home Builder:  6 Important Factors to Consider

Choosing the right custom home builder for your project makes all the difference. A great builder can make a complicated project successful.

When you’re considering a choice between building companies list the assets each brings to the project.

#1 – Credentials and education

Business credentials indicate that an individual is suitable for undertaking a specific project.  Industry associations such as  the National Association of Home Builders or the National Association of the Remodeling Industry, or the National Kitchen and Bath Association offer learning opportunities and award certifications based on experience and exams.   Individuals who are interested in advancing their capabilities typically belong to one or more industry associations so look for memberships in local and national associations when you’re considering the background of a homebuilder. Look for awards or accreditations that indicate a passion for what they do.

The local home builder association for Long Island is the Long Island Builders Institute.

#2 – Excellent Communication skills

New construction follows the local department’s  Building Code. Skill, knowledge, and ability are necessary to manage the many functions and phases of the project. The Builder needs to keep you informed of the status of your project during the entire timeline as you, the owner, need to keep the Builder informed of those aspects of your life that may affect your availability or accessibility.  Mutual respect and reasonable expectations of one another ensure success. If the builder says they he has ways of getting projects done more quickly, press him for the details.

#3 – Knowledge of the costs of construction

For a project to secure a  building permit as required in the Building Department stamped architectural drawings must be submitted. Once the architect produces the drawings and they’re in the hands of the builder, subcontractors can submit their estimates, and the builder can assemble those costs and provide a range for the entire project cost.  Architects have no obligation to manage costs for their clients; it is not part of their professional training.

#4 – Experience in Design Build

Design Build benefits the client because it stresses the collaborative and transparent nature of successful project management from the start.  To be informed and up to date on costs of labor and of materials is critical in construction project management to better advise clients of choices during design.  Design Build means that the architectural design and the construction are both managed by one entity, one single point of accountability. Choosing custom home builders that are Design-Build Firms like Plum Builders Inc. may help alleviate some of the uncertainty in construction scheduling since both design and build are handled by the same company.

 #5 – Value and quality

 Tour the homes built by any company you’re considering, and secure permission to talk with previous clients.   Then have a frank discussion about…

–  how many of their projects are completed on time. If they don’t give a clear answer, dig deeper to find out what their design process is like and how they build.

– Listen for clues. A strong, experienced builder will probably tell you exactly how they manage client expectations and ensure projects are on time and within budget.

– Trust your instincts.   Quality custom home builders are interested in a satisfied customer at the end of the project.  Find a builder who will tell you the truth, even when it is difficult to hear.

#6 – Reputation and Recommendations

Incredible builders have equally incredible reputations.  

Good word of mouth makes or breaks any custom home industry professional, so look for custom home builders whose reputations precede them positively.

If you are looking for an exceptional custom home builder, connect with us today for a consultation.