Home Ownership: Is it Worth it?

Buying a home is a big decision. The financial and emotional stakes are high, but the rewards can make it all worth it. Here are some thoughts to help you decide to begin your home-buying journey.

Owning your own home can improve your quality of life, provide financial stability and give you a sense of control you just can’t get from renting.

Financial investment:
If you pay rent each month as a tenant, you will be paying a mortgage payment each month as a homeowner. However, as a homeowner your monthly mortgage payment creates equity for you, not your landlord.

There are many loan options available for homebuyers. Contact your bank, credit union, or mortgage lender to get started. You can also get a recommendation for a good mortgage lender from your local real estate agent. They work with lenders all the time and know which ones offer the best service and the lowest fees.

As a real estate broker, I deal with mortgage lenders all the time and I can recommend several that can help you get financed for very little down payment – In some cases, your down payment is less than you would pay as a deposit for a rental. For a list of preferred mortgage lenders, contact me at Dan@DenverPropertySales.com

The interest on your mortgage is a tax deduction:
When you pay rent, none of the money you pay to your landlord is tax-deductible. However, when you own your home, the interest you pay is tax-deductible. It’s nice to get a break at tax time. Talk to your tax professional to learn more about the financial benefits of home ownership.

Fixed monthly housing payment:
If you opt for a fixed-rate mortgage, the monthly rate of your mortgage won’t change for the length of the term. When you rent, your landlord can raise your rent at the end of your lease. And if you are renting month-to-month, lookout! You have very little financial control.

Tax-free gain:
When it’s time to sell your home, you don’t pay taxes on the proceeds of the sale above what you paid. There are some restrictions, so contact your tax professional for advice.

Buyer Tip:

Look for a house you can stay in long-term and one that will grow with your family and needs. The financial benefits of owning increase over time. It is important that you to select a real estate professional to serve as your exclusive Buyer Agent. A Buyer Agent works for you and is legally responsible for your best interests. The good news is that there is no cost for you to employ a buyer agent. The buyer agent fee is paid out of the listing agents commission, not you.

It is recommended that you interview several real estate agents before selecting one that you are comfortable working with and who understands your lifestyle. Make sure the agent knows the neighborhoods you’re interested in, and can answer questions you’ll have about the location. For a free buyer consultation, contact me at 303-521-5120 or email Dan@DenverPropertySales.com

START LOOKING NOW!

I have a really cool property search tool on my website at www.DenverPropertySales.com or better yet, get my free App for your cell phone or tablet at http://app.kw.com/KW2GWHWY and have fun searching for a new home today.

5 Reasons Your House Will Not Sell

Selling your house on your own or listing with a real estate agent, but it doesn’t sell? It can be stressful to see your house languish on the market while others in your neighborhood are moving quickly. A house that isn’t SELLING can cost you time and money, not to mention your sanity. Here are five reasons your house may not be selling, and how to fix it.

1. Pricing

Do you want to sell our home for as much as possible? Of course you do. However, an overpriced house can turn away even the most eager buyers. On the flipside, if you repeatedly reduce the price, buyers can see it as a sign of your desperation to sell – prompting them to submit even lower offers. If you’re selling your house on your own, you will have a tendency to price the house based on what you think it is worth to you. After all, you know how much money you have put into the care and feeding of the house and the details of all of the nice features you think anyone would appreciate. You might have even done your homework and know how much other homes in your neighborhood have sold for. You know what your house is worth, right? Wrong! When selling, you need professional input from someone not emotionally attached to the house. It should be someone who can expertly valuate your house and there are options. You can hire a professional home appraiser, which will cost you about $500. Or, a real estate agent can help you come up with a price comparable with other properties in your neighborhood. Most real estate agents are happy to offer this service at no charge, and best of all, you are not required to list with them. Get my FREE real estate App at http://app.kw.com/KW2GWHWY. It is a great resource that lists current values of all homes for sell in your neighborhood.

2. Timing

The main buying seasons for home buying in most areas is spring and summer. Don’t let this be the only reason not to list your house if you want to sell. It is never a bad time to SELL your house. So, if you sell during an off-peak time, you can still attract serious buyers – You’ll need patience and be prepared to sweeten the deal.

To sweeten the deal, you might offer incentives such as paying buyer’s closing costs or other incentives to create interest. Sometimes these incentives allow you to ask a higher selling price.

3. Location

If your home is located in an unsafe or undesirable area, you will most-likely experience challenges selling quickly, or at a higher price. It can be especially challenging when it is FOR SALE BY OWNER.

Real estate agents and their brokerage firms have access to many marketing resources that the average homeowner could ever afford to access on their own. However, not all real estate agents are good marketers, so be sure to interview several agents to find the best fit for you.

To defuse concerns from prospective buyers could be to include security measures such as installing an alarm system, outdoor lighting, gates or fences.

Promote safe features of the location such as the proximity of public services, fire and police stations. You might even introduce prospective buyers to neighbors you know. This can provide a sense of community and make them feel welcome.

4. Condition
Investors and buyers with home improvement skills look for bargains, so they will typically offer less for a home that needs a new roof, has faulty plumbing or electrical systems, structural problems or that needs a lot of cosmetic work. The more repairs you make before buyers view the home, the more likely you are to receive competitive offers. It’s usually cheaper to do the repairs yourself than to offer allowances in the closing contract.

Another idea is to purchase a home warranty that covers items that break down after the sale. This gesture gives prospective buyers additional peace of mind about the home’s condition. There are several quality companies that offer home warranties. I recommend http://www.2-10.com/ and http://blueribbonhomewarranty.com/. However, do you research to find the best warranty that fits your budget

5. Marketing
If everything else is lined up and your home still isn’t selling, it could be due to your marketing. In a crowded market it is import to make an extra effort to get your home noticed. Buyers usually go online first to search for homes, so make sure your photos represent your house in all its glory. It’s often a good idea to hire a professional photographer. Also be sure the home description doesn’t skimp on listing all the features, amenities and upgrades. This is where a listing agent can come in handy. They’ll be able to use their professional experience to create a marketing plan that makes your home standout.

Contact me at dan@denverpropertysales.com with your real estate questions, concerns or want information about having a market analysis done on your home.

Written and compiled by Dan Rodriguez, Broker/Realtor® with Keller Williams Advantage Realty, LLC.