• About

The Hanley Home Team Blog

~ "ON TOP" Of Your Real Estate Needs!

The Hanley Home Team Blog

Tag Archives: buying a home in Jacksonville

Buying a Home? Make Sure You’re Prepared for These Closing Costs

26 Monday Dec 2022

Posted by The Hanley Home Team in Uncategorized

≈ Leave a comment

Tags

Buying a home, buying a home in Jacksonville, closing costs, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville

Buying a home is about more than just the purchase price. There are additional costs you’ll incur when you buy a home, most of which are due at closing—and it’s important to be prepared (and to budget!) for those costs.

So, as a buyer, what closing costs can you expect to pay when you buy a home?

A recent video from realtor.com outlined fees buyers should be prepared to pay at closing, including:

  • Lender fees. Your bank or mortgage broker will charge you a loan origination fee that you’ll have to pay at closing. If you purchase points to “buy down” your mortgage, you’ll also have to cover those costs.
  • Escrow fees. Escrows are independent companies that complete the closing transaction. Not only are they responsible for ensuring the transaction is legally binding, but they also collect and distribute money from all parties involved (including the lender)—and charge fees for their services. 
  • Appraisal fees. Lenders need an appraisal to make sure the house is worth what the buyer has agreed to pay for it—and as the buyer, you’ll need to cover the fee for the appraisal.

Surprises in real estate are no fun! Don’t be surprised – call us and be prepared. Kevin and Jennifer Hanley, REALTOR Over 1000 homes sold! The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Advertisement

Don’t Give Up on Buying a Home if You’re a Millennial Renter

27 Tuesday Sep 2022

Posted by The Hanley Home Team in Uncategorized

≈ Leave a comment

Tags

buy now, Buying a home, buying a home for the first time, buying a home in Jacksonville, buying your first home, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, millennials, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, rent vs. buy, renter, renters, The best real estate agent in Jacksonville

Almost 25% of Millennials (ages 26-41) claim they plan on renting forever according to this Apartment List article. That’s nearly double the amount since they started their ongoing survey of 31,000 Millennials in 2018.

In the grand scheme of things, 1 in 4 Millennials swearing off homeownership forever isn’t earth-shattering news. To put things in perspective, the highest rate of homeownership ever was 80% in North Dakota back in 1900. But generally speaking, the homeownership rate has hovered in the 65% range nationally for almost 5 decades. Some people will always be renters; homeownership isn’t for everyone. 

There are four main reasons they give for not buying:

  • They feel it’s financially risky (19%)
  • Don’t want the costs of maintaining a home (30%)
  • They like the flexibility renting allows (28%)
  • Can’t afford to buy a house (77%)

Obviously, by far the biggest reason is affordability. It’d be easy to chalk that up to the recent surge in home prices and rising interest rates. It’s legitimate and true. But that’s also been the main reason since well before the current market conditions. Truthfully, affordability is almost always the reason renters give for not buying, regardless of the decade. It’s never an easy financial leap to take.

However, while renting may feel like the easier, more affordable option, over time it’s not. In fact, renting is getting even more expensive. According to this Fortune article, an increasing amount of older adults are struggling to be able to pay rent. They’re constantly in fear of rent hikes that may just get to a point they can’t afford to pay. Then what?

While it’s never an easy financial leap to take, once you take the leap, your housing cost can be kept stable for years to come, and even go down as you pay off your house. Sure, it won’t be easy up front, but think of how it’ll be for you a couple of decades from now. Would you rather have an asset you can sell, or still be paying a landlord an ever-increasing amount of rent with nothing to show for it? 

Sure, prices and rates may seem high right now, but it almost always feels that way relative to the times. There’s always an area and a house you can afford to buy a house in, if you’re qualified for a mortgage. (And if you’re not, it’s worth making an effort to be qualified!) Your first house may not be everything you want or where you ideally would like to live, but it’s a first step toward taking control of being able to afford to live comfortably as you get older. It may seem years away right now, but time has a way of creeping up on you. And the cost of living does, too… 

The Takeaway:

Considering the financial burdens many Millennials have, coupled with rising interest rates and home prices, it’s no surprise that an increasing number of Millennials are saying they’ll never buy a home and remain renters forever. 

But if you can afford to rent, the chances are you can afford to buy. It might not be your dream home, or in the exact neighborhood you’d prefer, but you can buy something. Buy where (and what) you can afford now, so that you have a predictable and controllable cost of living — as well as an asset you can sell — as you grow older.

Let’s discuss your real estate goals. Jennifer Hanley, REALTOR The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2700 HanleyHomeTeam.com

Recent College Grads Should Think Twice Before Renting a Place to Live

20 Friday May 2022

Posted by The Hanley Home Team in Uncategorized

≈ Leave a comment

Tags

Buying a home, buying a home in Jacksonville, buying your first home, college graduate, first home, first-time homebuyer, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, recent college graduate, The best real estate agent in Jacksonville

People often envision young adults graduating from college, landing a job, and renting their own place to live. While it was never easy, that path has become more and more difficult to attain in a straight line. College isn’t cheap, and many grads are starting their adult lives with a heap of student loans and jobs that may not pay as much as it costs to live independently. 

It’s especially difficult because rents have risen 16% in the last year alone, and 28% since 2017, according to this Realtor Magazine article. If that’s not enough, throw in the fact that renters are facing bidding wars that are pushing them to bid anywhere from 10% over, to 1.5 times the listed monthly asking amount!

It’s not like you can snap your fingers and demand a high enough wage to make up for how much rent is. And there’s no magic wand you can wave to lower rent prices. So, what’s the solution? 

There’s no one-size-fits-all remedy, but here are a few things to consider if you’ve recently graduated from college and have been struggling with the cost of renting:

  • Live with family and save. Okay, it’s not the most appealing thing to hear, but it’s sensible. Sure, you’d rather have your freedom and a place of your own, but you might be better off moving back home and saving as much money as possible.A smarter move would be to not just stay long enough to save what you need to rent a place, but to stay as long as it takes to save enough to buy a place of your own.
  • Get roommates. You might be dreaming of having a place all to yourself, but you might need a roommate or two (or three) to help pay the monthly rent. You don’t need to be best friends with them. In fact, don’t just choose a roommate because you’re great friends. Make sure whoever you choose is reliable and financially able to share the costs.The last thing you want to do is take on the responsibility of a lease with someone who decides to move out and leave you picking up the slack when they don’t have enough money to pay their share.
  • Buy a rental property. If renting is barely affordable for you, buying a place probably sounds out of the question. But you might be able to, and you may be better off doing so. See if you can qualify for a mortgage and buy the most affordable home you can, even if it isn’t your dream home.Better yet, buy a multi-family house and live in one unit while renting out the others to help pay part (or maybe even all) of your mortgage. If you’re not in the financial shape to get a mortgage on your own, see if your parents or someone else you’re close to can co-sign or invest in a place with you. If that’s not an option, consider teaming up with another recent grad or two and buying a place together.

The Takeaway:

It’s never easy to strike out on your own after college, but right now it’s even more difficult. Just know that you’re not alone in your struggle—it’s hard for most recent grads. Many of them will do whatever it takes to get a place of their own even if it’s a huge financial burden and mistake, but with some thought and consideration, you can make some wise decisions that will set you up for a better future.

In Northeast Florida, it’s cheaper to buy than rent! Let’s find you a great first home/investment. Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Rent vs Buying – Is The Time Right to Buy?

19 Monday Apr 2021

Posted by The Hanley Home Team in Uncategorized

≈ Leave a comment

Tags

buy now, Buying a home, buying a home for the first time, buying a home in Jacksonville, buying your first home, Jacksonville, Jacksonville Real Estate, real estate, real estate jacksonville fl, Real Estate Team, rent vs. buy, renters

Making the decision to buy a home is a big one—and you want to make sure you’re ready.

But how do you know when you’re ready to make the transition from renting to homeownership?

A recent article from realtor.com outlined key questions to ask yourself when you’re determining whether you should keep renting or make the jump to homeownership, including:

  • Do I have enough savings to cover closing costs? If you’re considering buying a home, chances are, you have enough saved up for a down payment. But before you make the decision to buy, you’ll also need to make sure you have enough saved to cover all the closing costs associated with buying a home (like the appraisal and inspection).
  • How long do I plan to stay in the property? Ultimately, you want buying a home to be a smart investment; you don’t want to lose money. And in order to not lose money on the deal, you typically need to stay put for two to three years—so make sure you’re willing to settle in for at least a few years before you buy.
  • Are you prepared for maintenance? When you rent, your landlord takes care of home maintenance—but when you buy, that responsibility falls to you. Before you make the decision to buy your own home, make sure you’re ready to tackle all the home maintenance projects—and costs—that come with owning property.

The Takeaway:

Bottom line? You want to make sure that, when you buy a home, you’re ready—and asking yourself these questions can help you gauge how prepared you are to make the transition. Let us help you with your decision – Kevin and Jennifer Haley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

7 WAYS HOME BUYERS LOSE MONEY BEFORE THEY EVEN BUY A HOME

01 Tuesday Sep 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #housegoals, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #Movingday, #RealEstate, #Townhouse, real estate, Uncategorized

≈ Leave a comment

Tags

buy now, buyer home hunting tips, buyer market, Buying a home, buying a home in Jacksonville, buying new construction, Buying new construction; working with a real estate agent; Buying from a builder; negotiating with a builder; having someone on your side, real estate

cheerful couple having video chat via laptop

Photo by Ketut Subiyanto on Pexels.com

A MORTGAGE IS THE BIGGEST DEBT MOST OF US WILL EVER HAVE. BECAUSE THE NUMBERS ARE SO BIG, THOUSANDS OF DOLLARS (OR POUNDS, SHEKELS, OR OTHER MONETARY SYMBOLS) CAN SLIP AWAY WITHOUT A BORROWER EVER NOTICING. HERE ARE 7 MONEY-DRAINING CRACKS THAT HOME BUYERS NEED THINK ABOUT.

1. Ignoring the true cost of home ownership

Owning a home comes with new expenses that surprise many buyers. Even experienced home owners can forget how much it costs to upgrade a home, improve outdated features, and fix hidden problems. It’s wise to take these costs into consideration before signing on the dotted line.

Before purchasing, calculate realistically what you’ll need to spend to get the home up to your standard. In some cases, you may be better off paying more for a home that’s already been upgraded than paying for a cheaper home that needs more work. 

On the other hand, if you are struggling to make a down payment on a more expensive home, then buying cheaper and putting money into it over time and using your own sweat (“sweat equity”) might offset the higher down payment you would have had to make on the more expensive home. 

A 20% down payment on a $300,000 is $60,000. If you can’t afford that, consider buying a nearby fixer-upper. That home might only cost $225,000, with a down payment of $45,000. The extra $15,000 might be enough for you to do many upgrades that would bring it close to the standard of the more expensive home, but you won’t need to come up with that extra $15,000 up front. This might be a good investment option—as long as you go into it with eyes wide open…along with a really good home inspection.

Ongoing Maintenance

The longer you own a home, the more you’ll want or need to make expensive fixes. A new roof may be in your future, as well as repairs to a cracked driveway or installation of a new fence. Some items can sneak up on you, like tree removal service, a broken water main, and termites!

As a rule of thumb, budget 1 to 2% of your home’s purchase price annually for maintenance. If your home will cost you $250,000, expect to spend $2,500 to $5,000 annually on unglamorous purchases like a new water heater or having your furnace serviced. The older your home and the larger it is, the more you’ll spend. 

Also consider a savings fund for big ticket items. If your roof has a life expectancy of 5 years, start putting aside a little each month now.

2. Becoming house poor

There are many places in your life where you’ll need to put money besides your house. Replacing a worn-out car. Saving for retirement. Building a college fund for the kids. Life-altering vacations. Even buying furniture for your home. If you’re spending too much on a mortgage, you won’t have money for these other investments.

A general rule for housing affordability is to spend no more than 28% of your gross income on a mortgage. So, if you earn $75,000 a year, you should spend no more than $1,750 a month on payments, including insurance premiums and association fees. You can use a mortgage calculator to see how much house you can buy for the amount you can afford monthly, and how much down payment money you’ll need.

3. Not shopping around for loans

While it may seem to the average consumer that all mortgage loans are alike, and a loan broker may not even offer any options, the truth is that you do have options. You may be more or less qualified for some kinds of loans that offer better rates or terms. A military veteran’s loan is a good example of this, offering a zero down payment for some people. There are also loans for teachers and other job types, and loans for buying in certain areas.

Aside from special loans, your standard loans also come with different price tags…

According to Sergei Kulaev on the website, Consumer Financial Protection Bureau, “Our research showed that a borrower taking out a 30-year fixed rate conventional loan could get rates that vary by more than half a percent. Getting an interest rate of 4.0% instead of 4.5% translates into approximately $60 savings per month. Over the first five years, you would save about $3,500 in mortgage payments. In addition, the lower interest rate means that you’d pay off an additional $1,400 in principal in the first five years, while making lower payments.”

To compare prices, you can use one of many websites that allow you to request bids from mortgage brokers. One broker may know of a special loan that another doesn’t know about, and all may have different fees. The fees and interest rate differences between these loans can be huge, especially over the life of the loan. 

You can also compare loans by calling different loan brokers personally. Be sure to include one or two bank lenders and credit unions on your list. Many of these bankers have in-house loans that might be better than another company’s loans. 

4. Ignoring the APR

Some lenders advertise low interest rates but make up for the low rates with high up-front fees. If you were to spread the cost of those fees out over the life of your loan, you might discover that your effective interest rate is actually higher than you could have gotten with another mortgage. Sometimes a lower rate loan has a higher “effective” APR…making your loan more expensive over time.

APR means Average Percentage Rate and includes all the fees as though spread over the life of the loan. For instance, imagine a $100,000 30-year fixed-rate loan with an interest rate of 3.85%. Now imagine the lender charges two points (a 2% buy-down of the interest rate), a 1% origination fee, and $1,500 in other closing costs. That brings the “real” interest rate from 3.85% to 4.215% APR.

Next, imagine a $100,000 loan at 4.05%, but with no points (no buy-down), a 1% origination fee, and just $800 in other closing costs. That loan’s “real” rate is 4.199% APR.

The first loan looks cheaper on the surface, but it’s really more expensive. The difference may only amount to $10 or $11 per year, but that’s your money, year after year. If you paid your mortgage for 30 years, you would pay an additional $3,650. That’s money you could have in your hand at the end to pay off another bill, put into your retirement account, or take a vacation!

Of course, if you plan to sell in 5 years, the extra $50 might not matter to you, in exchange for working with a broker you like, or someone more willing to give you a loan based on your credit rating.

5. Making a small down-payment

Most loan programs require a 20% down payment to get the best rates and avoid paying mortgage insurance — an extra cost that typically adds $100 or more to your monthly payments! You want to avoid paying that extra premium if possible. It goes away after the home’s value rises to more than 20% of the loan value, but until that time, you could be paying an extra $100 per month for many years, with nothing to show for it.

If you can’t afford 20% down, consider three things:

  1. Maybe you should wait until you’ve saved up enough down payment.
  2. Maybe you should buy a cheaper home, where you have a 20% down payment.
  3. Maybe you can put 15% down…that will help.
  4. If you have to buy now and pay the mortgage insurance premium, but you plan to make renovations, consider getting a reassessment of value as soon as possible. Ask the lender how soon you can do that…some loans won’t reassess under two years, leaving you stuck with $2,400 in extra payments! 

6. Not checking and fixing credit reports

Checking your credit report should be a part of your annual financial health checkup anyway, but when you are about to apply for a mortgage, it’s extra-important. Why? Because credit rating equals interest rate. 

A low or poor credit rating will result directly in higher interest rates and higher monthly payments. The worse your credit, the higher the rate. Conversely, a lower rate might mean you can buy a more expensive (nicer) house. 

But many credit reports make mistakes. Sometimes it may be a legitimate financial shortcoming on your part, but one that you “fixed” a long time ago, such as an unpaid library bill. It should have been removed from your report, but lingers. You have a right in most countries to contest that item and have it removed. Then have your credit rating rebalanced. 

Doing this can mean the difference of many thousands of dollars, and even determine whether or not you get the home of your dreams.

Also, keep an eye on your credit usage. A high credit usage will cause lenders to be concerned that you are over-extending yourself. Lower credit usage demonstrates wise or controlled spending, which they like. However, don’t pay off or close your credit lines entirely. Keeping some credit also demonstrates credit-worthiness more than keeping no credit at all.

7. Not waiting until you’re more financially stable

As alluded to earlier, sometimes a buyer just needs to wait until they have more money before buying a home. 

Down Payment—Coming up with a 20% down payment can be financially wise. It will result in less to pay off, and a lower monthly payment, and it will save on the mortgage insurance premium. It can be hard to wait, to delay gratification, but it can make a huge difference over the years to come.  

Quality of Life—Also, making sure there is enough income to afford the maintenance, and be able to enjoy life besides, are strong reasons to plan long term for a home purchase. 

Balance of Interests—However, there are legitimate reasons to buy a house, even if it stretches you financially. If it seems that house values are rising fast, or you’re able to score a great deal, or you need to purchase for another personal reason, then you may be better off jumping now, rather than waiting for the perfect financial picture.

Contact me for smart home buyer representation BEFORE YOU START HOUSE HUNTING! WE’LL HELP YOU AVOID SOME OF THE HIDDEN EXPENSES.  Simply reach out to Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com Team@HanleyHomeTeam.com

When Should You Stop Renting and Buy Your 1st Home?

30 Thursday Jul 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #HomeSeller, #housegoals, #househunting, #RealEstate, Jacksonville, real estate, Uncategorized

≈ Leave a comment

Tags

buy now, Buying a home, buying a home for the first time, buying a home in Jacksonville, buying your first home, first-time homebuyer, real estate, The best real estate agent in Jacksonville

woman using gray laptop computer in kitchen

Photo by LinkedIn Sales Navigator on Pexels.com

This choice often comes down to a financial decision: Can you afford what you want? But that’s not the whole story. There are more things to think about when trying to decide if it’s time to take your first real estate plunge.

Cost-Benefit Analysis is the term for figuring out if something is worthwhile doing or not. When you analyze a situation and decide that the benefits are greater than the cost, then you may want to go forward. Conversely, if the cost exceeds the benefits, you may decide to wait.

Sometimes when you weigh the benefits against the cost, the benefits are higher, but not high enough. In that case, you might want to increase the benefits or lower the cost before taking action. These are exactly the thoughts you should be having as you plan to buy your first home.

To help you weigh the benefits and costs of buying vs. renting, this report offers key elements to think through, including evaluating the monthly payments correctly, estimating home ownership costs, weighing location against price, evaluating purpose and home investment strategy, and improving credit and interest rate to decrease payments. 

The most important factor when thinking about buying is to not “panic buy.” Don’t jump in just because interest rates might rise or prices might rise. Buy when you are ready and don’t let the market dictate your timing.

What are the benefits of renting? 

  • One benefit is living in a property without having to spend great chunks of money to replace the roof or fix the plumbing. 
  • Another benefit is that you may be able to rent a type of home or in a location that you could never afford to buy. 
  • You have no stress or worry about maintenance. That’s the landlord’s job.
  • You can pick up and move without wondering if you can sell your house. 
  • If your income drops, you can rent somewhere less expensive. It’s a pain to move, but you won’t face a foreclosure or fire sale. 
  • If you are late with a payment, you can discuss it with the landlord. 
  • You probably won’t get a serious ding on your credit if you’re a month late. 
  • In many places, renting is the only option because there isn’t enough housing for sale, or the prices are beyond reach for the average mortal.

What are the costs of renting? 

The landlord charges you X amount and as long as you pay that amount, you get to live in that property. The cost is X. But there are other costs:

  • By renting, you lose the opportunity to build equity (the money you gain if you sell the property). So when you move, you move with no money in your pocket.
  • You lose the opportunity to pay off the house and eventually own it outright.
  • You lose the opportunity to put down permanent roots, do what you like to the property, and raise capital by getting a second mortgage or home equity loan.

What are the benefits of owning?

  • Build equity through rising values and making payments. 
  • Pay off the home and eventually have the security of owning outright. 
  • Be able to increase your wealth…by selling and profiting, by renting it to someone else, or by getting a home equity line to use the money in some other way.
  • Put down deep roots in the house and community.
  • Do what you want to the house…paint it orange and pink if you want (as long as you don’t live in a Planned Community or Condominium).

What are the costs of owning?

  • Monthly fixed and variable maintenance costs are significantly higher than renting.
  • Interest on your mortgage loan (which may be a tax deduction, so that may actually be a benefit)
  • Time involved in maintaining a home that would not be involved when renting.
  • Possible falling values making it harder to sell when you want to. 
  • Inability to work with the loan holder when you’re late with a payment.
  • Possibly higher monthly payments than would be with renting.
  • Possibly not being able to live in the community you want because you can’t afford to buy there.

Compare Costs and Benefits 

Here are several questions that will help you decide if it’s time to buy, or if you should keep renting.

What can you REALLY afford to pay each month?

Let’s look at an example. (This example uses US$.)

  • Suppose you feel that you can afford to comfortably pay $1,500/mo. in a mortgage payment. 
  • Now, imagine putting aside a little each month to pay for maintenance and improvement projects (painting, new roof, new kitchen, emergencies, etc). Let’s say 10% per month for homes in decent condition. That’s $150/month, based on your $1,500 comfort level.
  • Now, instead of paying $1,500/mo, you’re really looking at paying $1,500 + $150 = $1,650. Can you afford $1,650? If not, then you need to be looking at a monthly mortgage closer to $1,350.
  • That small difference in monthly payment can mean a difference of $30,000 in your purchase price, so it is important to calculate maintenance costs before buying. 

If you don’t include maintenance costs up front, then the costs will come from somewhere else after you buy—your vacation budget, your new car budget, etc. You could become what’s known as “house poor,” a term that means you have a house, but a lower quality lifestyle.

So before you buy, try to look at you monthly payments realistically, inclusive of your lifestyle goals.

What mortgage would you qualify for?

You may feel comfortable paying $1,500/mo, but the important question is ‘What loan amount will that qualify you for?’

Several factors go into determining what the lender will decide you can pay and what you can buy:

  • Your loan amount is based on your income, debt, and interest rate.
  • Your interest rate is determined based on your credit rating—which is based on your history of paying your debts, as well as the amount of overall debt you carry.
  • The interest rate you are given may mean a $20,000  to $40,000 difference in the price of home you can buy. 

So, although you feel comfortable paying, say $1,500/mo, the mortgage lender might say that based on your income, debt, and credit score, you really are more comfortable paying $1,400/mo.

And that means, instead of getting a mortgage for $239,000, you can only get a mortgage of $219,000.

So work with your mortgage professional, and go through the entire loan application process. Fill out the loan application. Provide the documentation. Yes, it’s arduous. But it’s the only way to get accurate figures, and get the coveted “pre-approval letter” that you need when buying a home.

Why do you really want to own a home?

Here are your choices: 1. Financial reasons.  2. Pride and roots reasons. Of course, it’s both for most people. As a first time buyer, you’re aware that ownership has financial benefits. And you also want to live in a place you love and put down roots.

 Unfortunately, for many home buyers, the price of a home in their desired location is too high for them. That means that first time buyers need to focus on the first choice: buying for financial reasons. 

Look at lower cost alternatives that allow you to build equity and eventually buy up into the area you want to put down roots. Here are a few ideas for first time buyers to make their first home a smart investment:

  • Buy a much smaller home or condominium near the
    area you want to live.
  • Buy a fixer-upper near where you want to live.
  • Buy a home in an area you don’t want to live. After a few years, decide to either keep it, and put a renter in it, perhaps using the equity to buy another home, or sell it and use the cash to move up.

Each choice has its own costs and benefits. With each choice, the goal is to increase equity so that you can sell and have a larger cash down payment on a home in your preferred location. Create a long-range plan. Then work towards that goal by increasing savings, building equity, and improving your income. And always, always work on reducing debt.

Is your rent low enough?

If you’re paying $1,000/mo in a $3,500/mo area, and you have a good landlord, maybe you’re better off investing in other things instead of buying a home. Or perhaps buying an investment home in a cheaper area. It is OK to not own the home you live in, if it makes financial and emotional sense not to. 

But be smart about it. Do the analysis. There are many factors involved in home ownership that may benefit you, such as rising values, interest rate deductions, and the potential to control an asset.

Using a Mortgage Calculator

Mortgage calculators should be used as guidelines only, as just another data point. Once you’re really serious about buying, the only truly accurate way to know what you can afford and what your payments will be is to go through a full pre-approval process with a mortgage professional. 

But until then, mortgage calculators can be a useful tool to help you see how adjustments in down payment, interest rate, and income can affect purchase power.  Just be dead sure that the estimate you get is includes Principle, Interest, Taxes, Insurance, and Extras charged on the loan, such as Private Mortgage Insurance. If you leave out any of these costs, you will be surprised when your mortgage professional shows you a figure lower than you thought.

 Calculators come in several varieties. Here are four calculator suggestions you can look up on Google. Use a calculator designed for your country.

1. House Price, Based on Payment

2. Payment, Based on House Price

3. Payment, Based on Income

4. Rent vs. Buy

Final word

As a first time buyer, you are swept up in the excitement of buying—the dream of owning. You look at homes online and imagine putting in your own garden, painting the baby’s room, and decorating the way you want. 

But you are smart. You know you’re making a financial decision, not simply an emotional one. You know the factors that go into deciding when to stop renting and buy a first home are complex.

There are no simple answers. But we’d like to leave you with this final word:

Don’t let fear of buying stop you from buying a home. There are plenty of professionals out there who can guide you through this decision and help you make a sound financial choice. If not me, then find a real estate consultant you trust to sit down with you and discuss the ideas presented in this report. Work with a mortgage professional to get accurate figures. 

We want you to know that I’m always available to you—or your friends and family—for a home buying consultation. And we want you to know that we’ll spend whatever time you need to answer your questions so you can make the right decision in your own time.

 Call to arrange a consultation appointment – Simply call 904-515-2479 OR email Team@HanleyHomeTeam.com Thank you! Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside

HOA Drama and Other Issues Buyers Wish They’d Considered Before the Deal Closed

06 Friday Sep 2019

Posted by The Hanley Home Team in #HanleyHomeTeam, #HOA, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate

≈ Leave a comment

Tags

advice, buying a home in Jacksonville, buying your first home, home ownership, real estate tips

By Terri Williams | Sep 6, 2019 |Terri Williams is a journalist who has written for USA Today, Yahoo, the Economist, U.S. News and World Report, and the Houston Chronicle. Follow @Territoryone

person holding pen in front of contract 

Being a first-time home buyer is exciting. After you finish signing a gazillion documents and the keys are finally placed in your hands, there’s an undeniable sense of accomplishment and pride. However, not long thereafter, buyer’s remorse can set in. New buyers might wonder if they made the right decision or if there were warning signs that they missed—or outright ignored.

Everyone hopes that life after closing on a house will be smooth sailing, but some unsuspecting buyers end up in turbulent waters. The following anecdotes outline missteps that first-time home buyers can make and, most importantly, how to identify those red flags before you’re locked into the sale.

No room to grow

Many of the first-time homeowners Chicago-based real estate agent Jonathan Self speaks to say that they underestimated how much space they would need.

“The family expanded faster than they had planned, and they now need to move without owning the house for enough time to reap any benefit of price appreciation,” he says. “Life happens, but you want to make sure you’ve had four to five years minimum in the home at the normal rate of appreciation—and that’s just to break even.”

To avoid having to move because of a lack of space, buyers should ask themselves the following questions: Is the size of your family going to change? Is there a chance an older family member will need to move in with you? Do you have space for a dog, if you want one?

Some first-time homeowners get tripped up by perfectly staged homes.

“Finding the right home isn’t just the sexy, fun stuff like finish selections,” Self says. That’s why you need to consider how much space you and your family will really need down the road so you can stay put.

HOA drama

First-time homeowners would do well to understand the pros and cons of a homeowners association before moving into an area that has one. That’s why Self goes as far as going through the HOA’s meeting minutes with his clients who are considering living in one of these communities.

“Neighbors are always an X factor, and as agents, we do what we can to investigate. But your best bet at spotting any internal HOA drama is to check out those meeting minutes and budget line items,” he says.

A lack of HOA meeting minutes or transparency with the budget is also a big red flag.

Becky Beach, a business owner and blogger at MomBeach.com in Austin, TX, says her HOA dues are $500, but a lack of communication means she and the other homeowners do not know what the money is going toward.

Living in a community with an HOA suits many buyers, but you want to know what you’re in for before signing on the dotted line.

Rushed to buy a home

Aleka Shunk, founder of the blog Bite Sized Kitchen, warns first-time home buyers against a hasty home purchase like the one she made.

While searching for a home in New Jersey, one of her friends sent a flyer from neighbors looking to sell their home. The Shunks loved the home and the area, and the highly motivated sellers wanted to move within six weeks. One of the sellers was an agent, and preferred that the Shunks didn’t use an agent on their behalf—and also said the home would be sold as is.

“I found a local inspector who said there were a few small problems, but overall the house was in good shape,” Shunk says. “I also hired a lawyer to handle the legalities.”

However, a few months after moving, the problems started.

“I woke up to no water in the bathroom faucet, and then a neighbor informed me that the water was gushing down the driveway,” Shunk says. Water was flowing from the ceiling in both the garage and living room. After a week of frigid temperatures, two pipes burst—to the tune of $40,000 in water damage. The cause of all of these problems? There was little to no insulation throughout the house.

“We were just so excited and could not wait to get into our own home,” Shunk says. “However, because we rushed, we did not have time to ask many questions.”

It took three months to fix all of the damage, and the family is saving up enough money to properly insulate the house. The lesson: Don’t rush into buying a home, and always get a second opinion.

DIY real estate transaction

Many buyers—first-time or not—underestimate the value of having a real estate agent represent them. You may be capable of combing through online listings, but navigating the negotiations, paperwork, and legal stipulations that arise during a real estate deal requires experience.

“This is a big transaction, therefore, it is very helpful to have another qualified person speak and deal on your behalf,” says Mark Cianciulli, a real estate broker and founder of The Crem Group in Long Beach, CA.

For example, he says, even a home being sold as is can be negotiated—especially one like the Shunks’ that came with major problems.

“Because we did not use an agent, we did not know the right questions to ask,” Shunk says. “What does ‘as is’ even mean?”

While she did use a lawyer and got a home inspection, Shunk says she trusted the seller to ensure that everything was taken care of.

HP_logo.pngGive us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

Ranking Your Home Priorities

08 Thursday Mar 2018

Posted by The Hanley Home Team in Uncategorized

≈ Leave a comment

Tags

Buying a home, buying a home for the first time, buying a home in Jacksonville, buying your first home, Homes in Jacksonville FL, local schools, Making an offer on a home, real estate, real estate investing, real estate jacksonville fl, schools and real estate, The best real estate agent in Jacksonville, tips for buying a home, walkability

shutterstock_111388436Buying a home is exciting. A new neighborhood. More space. A yard. A shorter commute. There are all kinds of reasons people get amped up to go house hunting online and start dreaming of a new home. But when the market is competitive and sellers have an advantage, finding a home that is truly “perfect” is increasingly hard to do. Sometimes this keeps people from buying, and often excellent opportunities are missed simply because buyers sit on the sidelines hoping for perfection.

On one hand, this makes sense. A home is a huge investment. Why rush into it? You want to get it right. But on the other hand, buyers forget that a home is an investment. People sometimes allow themselves to become blinded by the thought that they’re locked into a home, when in reality a home is often only held for seven to ten years on average. What you want to keep in mind as you shop is how well you’ll do from an investment perspective over time.

Adopting an investment mindset means looking at the prospects of a neighborhood, buying at a fair price, and considering factors which may not even matter to you personally as you shop for a home. Yes, you want to be comfortable. Yes, you want it to have the right layout and enough space for your needs. But you also want to imagine who might buy the home in the future.

Even if a home is not ideal, there are factors you should rank before you make an offer. Savvy investors know these four factors can have a giant impact on price when the time comes to reap a return:

1. Affordability. Look for value. Homes which are below median prices are worth a second look, simply because they allow you to prevent yourself from becoming “house poor” in your mortgage while setting yourself up for a larger return when you sell.

2. Schools. You may not have kids or want kids at the moment, but it’s a fact that good schools will help you sell and bad schools will hurt. Check into the local schools on a website like GreatSchools.com.

3. Transit and walkability. Ditching the car in favor for walkability and public transportation is a plus for a home’s value. How’s shopping and entertainment nearby? Check WalkScore.com.

4. Crime rates. BestPlaces.net will give you some insight into local crime rates. Even if crime rates aren’t ideal, see if there are any trend indications. If they’re going to improve, that could mean money in your pocket in the future.

Need more advice during your home search?  Call our team buyer experts today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

Subscribe

  • Entries (RSS)
  • Comments (RSS)

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012

Categories

  • #BedroomDecor
  • #buyandhold
  • #Condoliving
  • #DIY
  • #Forrent
  • #HanleyHomeTeam
  • #HOA
  • #HomeBuyer
  • #HomeBuyingTips
  • #HomeOwner
  • #HomeSeller
  • #housegoals
  • #househunting
  • #HurricaneSeason
  • #Jacksonville
  • #JacksonvilleFL
  • #KellerWilliams
  • #Movingday
  • #Passiveincome
  • #Quaratine
  • #RealEstate
  • #Refinance
  • #sellingyourhome
  • #summer
  • #Townhouse
  • #yardtips
  • #yardwork
  • DIY
  • Jacksonville
  • real estate
  • Summer Yard
  • TIPS, HACKS
  • Uncategorized

Meta

  • Register
  • Log in

Blog at WordPress.com.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • The Hanley Home Team Blog
    • Join 114 other followers
    • Already have a WordPress.com account? Log in now.
    • The Hanley Home Team Blog
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...