True Facts About 4 Real Estate Reality TV Myths

True Facts About 4 Real Estate Reality TV MythsMany of us are guilty of plopping on the sofa and binge-watching reality TV home flipping shows. The allure of buying and selling homes for big profits with no boss looking over our shoulders has major lifestyle appeal.

Shows like “Love it or List it,” “House Hunters,” “Flip or Flop” and others make it look incredibly simple. Even when they face adversity such as rotted wood or bad pipes, the way the reality TV stars overcome adversity is more of an inspiration than a deterrent. And plenty of everyday people do manage to succeed in the house-flipping industry.

But many of the myths these ratings-driven shows perpetuate could use a little busting.

Consider these four common house-flipping myths and the true facts behind them.

1: Three Viewings And A Closing

Reality TV shows tend to show viewers the industry professional looking at no more than three homes before making a flipping decision. That may play into the limited time slot they have but it’s far removed from reality.

True Facts: It’s not uncommon for potential home buyers to fall head over heels for the first property they view. After all, buyers often already like the neighborhood, school system, and home style. But the National Association of Realtors reports that the average person looks at about 10 properties before making a decision. Home flippers are additionally tasked with developing a return on investment plan. Three and done is not reality, it’s just TV.

2: Homes Linger On The Market

TV shows follow home flippers who seem to have all the time in the world before making an offer.

True Facts: Most of the purchase and sale process is simply staged for television. The homes have been pre-purchased before filming. Today, we are experiencing a seller’s market, meaning there are more buyers than inventory. Homes move quickly.

3: Open Houses Are A Sure Thing

On real estate reality TV shows, the fully renovated home is amazingly staged and sells during the first open house. Multiple offers are often floated.

True Facts: Only in a perfect world or on TV does this happen. Matching properties with potential buyers requires hard work from real estate agents. They must align purchase limits, pre-approved house shoppers, family size, school systems, location, and other expectations. Most homes are sold by real estate professionals setting up appointments and making multiple showings.

4: Homeowners Make Fast-Sell Decisions

On real estate reality TV, homeowners seem to take just moments to decide whether to love it or list it. This certainly doesn’t mirror the process of ordinary homeowners.

True Facts: Homeowners sell their properties for a wide range of reasons. These may include downsizing, retirement, relocation or an expanding family among many considerations. The vast majority of people mulling over a sale also take a long look at their next home options. It’s completely unrealistic to think someone made such a major life decision in five minutes or less.

Reality real estate TV shows are wonderfully entertaining to watch. So is science fiction. Enjoy your binge-watching and speak to real-life mortgage and real estate professionals before making any major decisions. 

When It Makes Sense To Buy An Ugly Duckling

When It Makes Sense To Buy An Ugly DucklingMove-in ready” homes are desirable — there’s no doubt about it! But sometimes it makes better financial sense to opt for a house with dated decor and a less than trendy kitchen or master bath. You may not get your dream home immediately, but the opportunity to transform a property into your own swan can be rewarding. It can also be easy on the pocketbook.

When looking at Ugly Ducklings, however, look first to structural integrity and the condition of major home systems. including plumbing and septic, driveway and drainage. A home inspection is invaluable, even though no inspector can guarantee trouble-free systems. Inspections will alert you to potential problems: Needed roof repairs, leaking faucets, inoperable appliances, termite infestation or dry rot and the like.

All home components have a life span, and if you’re buying an older home, try to determine the age of its systems, including heating and air conditioning, and kitchen appliances.

Here are some ways to weigh the pros and cons:

Electrical Wiring

Assure that the electrical panel and service to the home are ample for your needs. If the panel is undersized or the home still has aluminum wiring, you’ll probably want to check on repair and replacement costs: In some older homes, it might be a deal killer. But it also might be an opportunity. You’ll have to weigh the options.

Roof

A roof that has been well-maintained, and that currently has no major deficiencies, is a bonus. If there are existing problems with shingles or gutters, it’s prudent to get an estimate for needed repairs from a qualified roofer. Use it as a bargaining chip in negotiations.

HVAC

Heating and Air Conditioning are major “quality of life” considerations. Whatever systems the house has installed should be in reasonable condition, and should heat and cool appropriately on demand. That doesn’t assure that you won’t have some costs sooner rather than later. But, depending on the age of the systems, you make get many more years of use.

Appliances

Older appliances may not have all the bells and whistles of stylish new models. But kitchen updates are expensive; the most costly items include cabinets and appliances. Buying a house with a vintage kitchen means that you can undertake a redo on your own terms, doing a little or a lot on your own timetable and with a specific budget in mind. 

Decor

Paint and simple fixes can change the whole look of a room, and put a new face on a whole house. A little elbow grease and a lot of imagination will easily compensate for the extra price of a remodeled home with all the newest materials. 

Landscaping

If you’re looking for bargains, look beyond negative curb appeal. Consider lot size and potential, and know that with a little cash and a lot of sweat equity, a nondescript yard can be transformed. Choose low-maintenance plants and reap double rewards.

Buying property in need of TLC, a Plain Jane, or the ugliest house on the block can be a wise decision if you have a little patience. But you might have to also invest some time and effort, along with some cash, to make it a thing of beauty. 

If you are in the market for a fixer-upper, be sure to contact your trusted mortgage professional for a pre-approval and to discuss financing options.

Should You Buy A Fixer Upper?

Should You Buy A Fixer UpperPopular TV shows like Fixer Upper and Property Brothers have brought the charms of owning a fixer upper to light. A fixer-upper can be a great option if you are prepared for the experience of owning a house that needs work and time.

A house that needs work can be a great investment if you are ready to invest the time and money into it. On the other hand, buying a fixer upper might be a problem if you are not aware of what you are getting into.

Not sure if owning a fixer upper is worth it? Here are some considerations to think about.

Start With This Easy Equation

Start with the likely market value of the house after renovations will be made. Then, sum up the cost to renovate the home. Then, add another 25 percent to the renovation costs for unforeseen problems that will no doubt come up during the renovation process.

Next, subtract the renovation costs from the probable market value of the house after the renovations are made. Use similar real estate prices in the area to get your estimate.

What number is left? This number what you should offer.

So, if the comparable estimates are $100,000 and the house needs $25,000 in work, then you should offer no more than $75,000 to break even. Most professionals recommend deducting 10 percent from the asking price just to make the investment of time worthwhile.

Determine How You Will Pay

If you buy a fixer-upper, you’re going to need some way to fund the renovations. It can be hard coming up with the funds for repairs and upgrades after paying closing costs. Some options for funding renovations include a renovation loan, like Fannie Mae’s HomeStyle Loan. This loan is rolled right into your mortgage, which makes things easier.

Another popular option is an FHA 203(k) loan. This loan is a little easier to qualify for than the Fannie Mae HomeStyle Loan and it only requires 3.5% down.

Decide If You Want To Invest The Time

Buying a fixer-upper is an investment. You will have to invest your time in making a lot of decisions. You’ll need to decide on things like building materials and aesthetics.

Do you have a design or architectural background? Do you enjoy remodeling projects? These are questions that you’ll really want to think about before buying a fixer upper.

Your trusted mortgage professional will be your best resource to help you secure the right financing for your new home project. 

3 Things You Need to Consider Before Buying That Fixer-Upper Home

3 Things You Need to Consider Before Buying That Fixer-upper Home

What Will It Cost?

If you’re going into a home expecting a few renovations costs, a minor detail here or there may not add up to much. However, if you’re not interested in spending the big bucks on making changes, you’ll want to estimate an approximate amount of how much the renovations you don’t want to live without will amount to. By including all the necessary labor and materials, you’ll be able to determine if the price-point of your offer will be worth it. Keep in mind that if there are any serious issues with the house, it may not be worth your while to consider the purchase at all.

Will Renovations Increase The Value?

In the event that you’re buying a home for its investment value, it’s going to be particularly important to consider if the renovations required will actually increase its market value. While adding another bedroom or upgrading a bathroom may not add significantly to a home’s overall price, certain more inexpensive improvements like painting, refinishing and new siding can actually add a lot to the look (and worth) of your home.

How Much Are You Willing To Take On?

It’s easy to think that you’re prepared to do the dirty work when faced with a fixer-upper, but getting down to brass tacks may not be so simple when the time comes. Before taking on a home that needs a lot of renovation, consider how much you’re willing to do so that you can determine if fixing it up will even be an economic boon after all the labor that may go into it. If you’re not a DIY kind of person, you may want to avoid a house that has a long list of repairs.

A fixer-upper can be tempting for those who want to invest or save on a home purchase, but you’ll want to carefully consider if it will be a good choice when it comes to selling time. Contact o or more information.

Looking for a Value-adding Upgrade? Why Residential Solar Panels Are Becoming a Popular Renovation

Looking for a Value-adding Upgrade? Why Residential Solar Panels Are Becoming a Popular RenovationIf you’re looking for a home upgrade that can add resale value to your home while paying itself off over time, look no further than a solar panel setup. In the past few years, the cost of installing residential solar has declined while the efficiency of the panels has increased. This combination has made home solar one of the best investments that a homeowner can make – provided they live in an area that receives a good deal of sunshine.

Solar Adds Immense Value To Your Home

While solar panel installations are not inexpensive, in almost every case they add at least their total cost to the value of the home as soon as they are installed. If you decide to sell your home, it will be very attractive to those who are interested in leaving a lighter footprint or for anyone who was thinking of going solar after they bought their new home.

A Quality Install Will Pay For Itself Over Time

As they generate electricity which can be used in your home or sold back in to the public grid, residential solar panels are one of the only home upgrades that will pay for themselves over time. If you live in a very sunny area and watch your home energy consumption, you may even find that after a few years your solar setup actually begins generating a profit each month. Home solar setups typically come with a 25-year warranty so you can rest assured that your panels will be producing energy for at least the next couple of decades.

Tax Credits And Incentives Reduce The Up-front Financial Cost

Renewable energy sources like solar quality for significant tax credits and rebates which will vary depending on the city and state or province that you live in. A quick web search will show you which types of incentives that you will qualify for, or you can call a local residential solar installer as they’ll be fully aware of all of the various incentives that are available.

It’s Not Just Car Storage: How to Transform Your Garage into a Brand New, Highly Usable Space

It's Not Just Car Storage: How to Transform Your Garage into a Brand New, Highly Usable SpaceIn some homes, garages are used only for car storage. They may appear to be bare and without real functional use for homeowners. However, other garages may be an envy of the neighborhood – they may have floor to ceiling shelving systems, and they may be the picture-perfect image of organization.

With a bit of planning and creativity, you can turn your garage into a much more functional space. Here’s how you can make your garage the most useful space in the house.

Determine What You Need To Store

One of the most important steps to take when improving the functionality of your garage is to determine which items you need to store. The last thing you want is to invest in a shelving system or cabinets for your garage only to later realize that your belongings do not fit in the features you have purchased. Take an inventory of the items you want to put in the space as well as their sizes and dimensions, and then take stock of the space available to store these items.

Invest In Storage Features

There are numerous types of storage features that you may choose to invest in for your garage, such as cabinets, drawers, wall pegs, shelves, overhead storage features, and bins.

The best storage features for your garage are those that take into account your accessibility needs. For example, seasonal items that you may rarely need access to may be placed in overhead storage features that hang over the cars. On the other hand, screwdrivers and other tools that you may need to use more frequently should be placed in a more accessible area.

Consider The Look Of The Garage

Some homeowners truly do not care what their garage looks like, but you should keep in mind that this is a room that is revealed to the outside world each time your garage doors are raised. This can indeed affect curb appeal and others’ impressions of you. Therefore, think about investing in a full garage storage system rather than piecing together different items.

If your garage looks like a war zone, you are wasting valuable storage space and compromising your property value. Investing in aesthetically pleasing and highly functional storage solutions can turn your garage into a major selling point and a great multi-use space.