Why Close Communities in Neighborhoods Are Better To Live In

Choosing a new home is incredibly difficult as there are a variety of factors to consider. Schools, restaurants, entertainment, and other factors make choosing the right neighborhood a tedious process.

Perhaps one of the most important aspects of choosing a new home is the strength of the community. Living in a strong, trustworthy, and personable community provides many significant benefits for families and individuals. While this might be a time-consuming process, finding the right community to live in is incredibly important for the following reasons.

 

Trust Your Neighbors

Whether you’re simply at work or on vacation, your home is left vulnerable when you aren’t there. From break-ins to package theft, anything can happen while you’re away, so it is important that you have someone looking out for you.

One of the primary benefits of living in a close community is that you can trust your neighbors to watch out for you while you’re away and report any crimes or suspicious activity. 

 

Increase Property Value

Owning a home is one of the largest, if not the largest, investments you will ever make. As a result, it is important that you preserve and increase your property’s value in case you ever decide to sell your home.

Living in a strong community is likely to make your neighborhood seem more attractive to families searching for a new home, leading to increased property value.

 

Feel Safe

Everyone wants to feel safe, especially if you have a family. Living in a neighborhood in which you don’t have a close, personal relationship with your fellow community members can make it difficult to feel safe in your own home. Living in a strong community can make sure you and your family feel comfortable and safe in your neighborhood.

 

Convenience

One of the many benefits provided by close communities is convenience, meaning that you can depend on your neighbors to help you with the occasional favor. From collecting your packages while out of town to borrowing sugar, having reliable neighbors can make your life much easier on a day-to-day basis.

While you might not necessarily have considered the importance of a close community when choosing where to live, there are numerous reasons why you should consider making searching for a strong community one of the primary factors in your final decision. From increasing property value, offering convenience, and increasing your sense of safety, a close community makes any neighborhood significantly better to live in.

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The Average Closing Costs for Buying a Home

First-time buyers who are excited to finally close on their home need to make sure they’re familiar with all the costs upfront. It might come as a surprise that the mortgage and downpayment are only one side of the story. Closing costs are additional fees that are associated with the purchase of the home. These will need to be paid at the time of closing the transaction. 

 

When exactly is the closing of the home? This is the time when the title of the property is actually transferred from the original seller to the new buyer. Closing costs can be paid by either the seller or the buyer, depending on the situation. This guide will further explain how to navigate the closing process as well as the average costs. 

 

What are the typical closing costs?

First, let’s discuss what the closing costs actually are. There are several fees that make up the total closing costs, and you might not need to pay all of them. For instance, many states don’t require you to purchase a home with the help of an attorney, so attorney fees wouldn’t be necessary in that case. Check with your real estate agent for a better estimate of what you can expect to pay in your areas.

• Appraisal – You’ll need to pay an appraisal company to check the market value of your home before sale. This might also include specialized home exams for things like A/C or pest control. 
• Attorney Fee – If you need an attorney to review your documents, you’ll need to pay their fees.
• Loan Fees – The fees associated with applying for your mortgage such as your application, underwriting, and credit report fees. 
• Property Tax – Taxes on the cost of the property which will be due usually within 60 days of purchase to the lender. 
• Private Mortgage Insurance (PMI) – If your downpayment is under 20%, you’ll likely need to purchase PMI. Usually, the first month of PMI needs to be paid at closing. 
• Title Fees – If you need extensive property records, you’ll need to pay a fee to the title company for this research. 
• Transfer Taxes – The tax you’ll need to pay on your home when passing the title from the seller to the buyer. 

 

How much are closing costs when buying a home?

Now that you understand the most common costs that make up the closing costs, it’s time to talk averages. While there is no one-size-fits-all to closing costs, most home buyers pay between 2 to 5 percent of the purchase price on their home. That means if you’re buying a home that costs $150,000, you can expect to pay around $5000 in closing costs. 

 

These costs also vary depending on the state. Arizona, for example, has some of the highest closing costs in the country with an average of just under $2,000 in closing costs for a $200,000 home purchase with a 20% down payment. 

 

You can expect to pay more in closing costs if you make a lower down payment in most cases. However, many closing costs are negotiable. Your lender will include closing costs in their initial estimate, and you can also shop around for a different estimate. There are also programs based locally and nationally that help cover or lower closing costs, especially for first-time buyers. 

 

Talk to your lender and your real estate agent about your closing costs before you approach your closing date. You might be eligible for discounts or programs that you didn’t know about. Either way, it’s important to know what to expect before you officially close on your home. 

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How Real Estate Agents Are Affected By The New Tax Laws

In January 1st, 2018 the United States passed the most significant piece of tax reform legislation in the last three decades. This massive legislative change to taxes effects numerous things, including real estate. As a real estate agent you might be wondering, how does this affect me?

Based on the numbers it looks like the tax reform is going to support the real estate market. However, as an agent, there are some changes you should be aware of into the future. 

 

Depreciation

Qualifying property acquired after Sept. 27, 2017, is eligible for 100% bonus depreciation in the year it is placed in service. Qualifying asses include those with a depreciable lifespan of 20 years or less; this includes personal property

It’s also important to know that bonus depreciation will start to slow down beginning in 2023. The rate will fall by 20 percent per year beginning in 2023 until 2027 when it is ultimately eliminated.

 

Pass-Through Entities

It was big news that the tax bill changed corporation tax from 40% to 21%. If you are apart of pass-through entities such as an LLC, S corporation, or partnership, then you’ll be taxed differently.

A 20% deduction of qualified business is now permitted. The deduction is limited to 20% of qualified business income and the greater of 50% of W-2 wages, or wages plus 2.5 percent of the unadjusted basis of qualified depreciable property. This law benefits real estate businesses. 

 

Limitations on business

How the loss and gains from your real estate business are taxed have also changed. Any company with higher than $25 million in average yearly gross income over the previous three years will be restricted in its investment cost deduction to interest income plus 30 percent of adjusted taxable income. Rental property owners can sometimes opt out of this rule and claim full interest on deduction.

This new tax law has been in effect for almost a year now, and real estate agents are feeling the benefits thanks to these new laws. Predicting the lasting impact of these changes can be hard to track, but overall this has been a win for real estate professionals.

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Is It Better to Own a Home In California or Nevada?

These neighboring states both have their unique landmarks that are worth the draw to reside. In Nevada, you’ll treat yourself to Las Vegas, The Hoover Dam, and the Valley of Fire Park. In California, you have luxuries such as Hollywood, Disneyland, and the Golden Gate Bridge. Deciding which state to own a home in can be difficult, so lets lay out the pros and cons of the real estate for each.

 

Nevada

Let’s take a look at the Sagebrush State and all that it has to offer. Looking to get hired? Well, Nevada lauds a 4.7% unemployment rate in the state which makes looking for a job, not a huge issue. 

More and more people are looking to own a home in Las Vegas. According to statistics, the reason home ownership is increasing is because of the cheap price of real estate. When you examine the two markets, you can clearly know why Las Vegas and Nevada are becoming a clear opportunity for anyone who is exhausted of paying high taxes.

When comparing taxes in California to taxes living in Nevada it’ll seem like you’re saying farewell to taxes. Nevada doesn’t have an income tax and does not even touch any part of your retirement. There’s also a low cost of living, utilities, and a low cost of corporate taxes. If you’re looking to start a business Nevada is an excellent location.

California

Now let’s take a glance at the Golden State, which has the biggest economy in the United States and 5th biggest in the world. The unemployment rate isn’t that drastic of a difference sitting at 4.2% by the end of 2018.

Real estate sales in Southern California are at the highest of all time and they look to not be slowing down. Following with the high cost of owning a home, California has one of the largest tax rates in the nation for individual and companies. That’s even before taking into thought the high cost of services, estate taxes, food, living and so on.

If you choose to own a home in California be prepared to be taxed into eternity. If you can afford it then you’ll be living in prime real estate areas. The property tax there is 1.25% of the purchase price. Your personal tax ranges from 1.25%-10.55% depending on your income. Your retirement will also be taxed with the exception of Social Security and Railroad Retirement.

 

Final Thoughts

In the end, it really depends where you are at financially. If you can afford being taxed on everything and want to live in high-value areas then California is your ideal location. If you’re looking for a low cost of living and a great place to start a new business then Nevada has everything you’ll need. If you’re looking for a job both areas seem to match each other. No matter the decision both states will have beautiful sites to visit. 

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source https://nationalcashoffer.com/is-it-better-to-own-a-home-in-california-or-nevada/

How To Save Money While Paying A Mortgage

If you have a 15 or 30-year mortgage you’re probably looking for extra ways to save money. It doesn’t take much to end up with amazing monetary results. Some simple daily changes to your lifestyle can yield a vacation, gift, or more savings for you and set you up to win in the future.

 

 

Needs Vs Wants

Become aware of what you actually need versus what you actually just really want to have. Your wants are fleeting while your needs stick around. Becoming aware of the consequences will help you notice what is a want and what is a need. If there are major consequences to not having something then its a need, if there isn’t, then it is a want. If you’re spending money every time you want something then your bank account is going to suffer for it.

 

Don’t jump at the newest things always. Look at the year-old model, which will be half off, and then make your decision based on the question “Is the TV I own really not doing the job?”. It doesn’t have to always be a big thing like the latest TV or computer. Start to notice what your wants are and when you give in to them.

 

Change Your Diet

Reports show that families on average spend $150 a week eating out. Starting to eat in more and you’ll immediately start saving more money. This doesn’t mean picking up fast food and eating it at home. Start cooking your food and take it into work for lunch. Going out at lunch and spending money on a 10 dollar meal actually adds up quickly. Even once a week is $40 dollars a month. A side effect of this will also be a healthier you, which means a happier you. 

 

 

Save A Dollar

It’s an old method but one that works. If you start saving a dollar a day or 7 dollars a week, by the end of the year you’ll have $365. This can be the start of a vacation for yourself, a home improvement, or getting that TV that we talked about. You should be making more than a dollar a day so this should be accessible to anyone. It should be simple to set up through whatever bank you’re using so don’t waste a day and start as soon as possible.  

 

Leftover Budget Money

Check to see if you saved money this month on your budget. If you had 175$ for food and only spent $145 then put those $30 dollars towards savings. I know it’s hard to look at extra money and rationalize not spending it, but it’s what your savings needs. This can actually be the way you save most of your money once you slow down spending on your wants. 

 

Learning how to save money while paying a mortgage isn’t going to be easy. It’s a muscle you get to work out every day. You might not always succeed but if you keep at it, before you know it you’ll be thanking your past self for having self-control and systems in place to have you win. 

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How To Stage Your Home For The Holidays

As a home seller in the middle of the holiday season, you may be wondering whether or not you should forego putting up decorations while your home is on the market. After all, staging your home is one of the most important steps when trying to selling your home, so it is critical that you do it right. If you find yourself in this situation, here are a few tips for staging your home for sale during the holidays.

 

Keep it Simple

While you don’t have to skip out on decorating for the holidays, you should remember to keep it simple. While it may be tempting to go all out with your decorations, you should remember that the point of staging your home is to prevent it from feeling empty while still allowing enough space for potential buyers to visualize their own decor. Buyers want to be able to see themselves living in your home, and that can be hard to do when you’ve cluttered your house with holiday decorations.

 

Put Away Personal Items

As stated above, your home should no longer be decorated as if it were yours. Potential buyers need to have the ability to visualize themselves living in your home. As a result, you should make sure to remove any personal items and pictures from your home. During the holidays, it can be tempting to set out old holiday pictures to help bring in the holiday spirit. However, when you do this, you can make potential buyers feel as though they are a guest in someone else’s home than stepping into their own home.

 

Don’t Block Pathways

This applies to the exterior and interior of your home. Avoid putting up large decorations which obstruct important views and pathways. This means it’s probably a good idea to leave the big inflatable snowman in the attic. While these decorations are fun, they can make it difficult for potential buyers to see what they would be purchasing. You need to make sure that all features of your home are accessible and in clear view.

The holidays are a very exciting time of the year. As a homeowner, you might be tempted to stick with your traditions of decorating your home for the holiday season. However, while you don’t have to completely pass up on the holiday decorations, it’s important to remember what your goal is. By keeping it simple with your decorations, you can still show your holiday spirit without sacrificing ins potential sales.

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source https://nationalcashoffer.com/how-to-stage-your-home-for-the-holidays/

What To Do When You Can’t Find A Home Before Your Home Sells

Selling your home feels like a balancing act. Trying to perfectly time your home sale while also searching for a new home is tricky. If you’re lucky, you’ll be able to move into your new home and have a perfectly staged empty home left to land the sale. However, if you’re in a hot market, your home might sell before you have a chance to find a new one. 

What are you to do if you’re put in this in-between situation of having sold your house without a new one to go to? While the first line of defense is to avoid this situation in the first place, sometimes it’s out of your hands. Unless you sell your home first, you’ll likely need to qualify for two mortgages, not to mention the second down payment. This isn’t always possible, so you need a game plan for what to do when you can’t find a home before yours sells. 

 

Contract Contingency

In a perfect world, your closing dates for buying and selling your home would line up perfectly. Of course, real life is rarely this lucky. A way to line up your dates is by asking to add a contingency to your contract. This is possible in both buying and selling situations. 

For example, if you’re buying, you can ask the seller to make your purchase contingent on the sale of your home. This is more likely to be effective if you’re having a difficult time finding a home buyer. You’ll need to be prepared with reasons for why you believe your home will sell quickly, and this is something your real estate agent can help with. 

On the other hand, if you’re selling, you can negotiate with the buyer. You can ask to add contingency to your contract that makes your closing date line up with that of your new home. This will depend on how flexible and interested the buyer is in your home. 

 

Rent-Back Arrangement

A rent-back arrangement is when the new buyer agrees to rent out the home for a short time after you sell it. These rental periods are generally short amounts of time between 30 and 90 days depending on when you find a new home. 

In order to come to this type of agreement, you’ll either negotiate a lower home price or pay rent to the new owner. Unfortunately, not all mortgage lenders allow this, so you’ll need to check with the new lender before coming to this arrangement. 

Of course, a rent-back arrangement is less complicated than having to find other housing while you wait for your new purchase. For buyers already using your home as an investment property for renters, this can be an easy agreement. 

 

Bridge Loans

If you’re buying a home and selling a home at the same time, you can get a short-term loan to help cover these costs. This type of loan is called a “bridge loan” since it bridges the gap between the sales price of the new home and your new mortgage. 

You can use bridge loan funds to make any down payment or closing costs on your new home, and you can repay this loan once you sell. This is a helpful tool for putting your home on the market without worrying about the finances of buying and selling. 

 

Temporary Housing

Finally, if all else fails and you still sell your home before your move-in date, you should consider alternative housing options. The best-case scenario is moving in with family and friends temporarily. If that’s not possible, consider a short-term rental in the meantime. 

Your real estate agent will be able to assist you in finding a compromise in this situation. Depending on your market, it might be affordable to rent for 3-6 months prior to moving into your new home. This frees up your attention so you can focus on finding the right home for you and your family. 

It’s not always possible to perfectly line up the dates when it comes to buying and selling your home. Avoid the stress of finding yourself without a place to stay during the home buying process with these tips above. Knowing your local real estate market as well as your options will help you best create a plan of action. If you are looking to sell your home, you can always call us at NationalCashOffer.com!

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