fbpx
Click here for a FREE guide Simply Selling FAQs!

Work Towards Buying a Home: Pay Down Debt

  • Home Buying Process
  • Comments Off on Work Towards Buying a Home: Pay Down Debt
  • by

One crucial factor that lenders consider when approving a mortgage is your debt-to-income ratio. This is the amount of debt you have compared to your income. If you have too much debt, lenders may be hesitant to approve a mortgage, or they may offer you a higher interest rate.

This is why it’s crucial to pay down your debt before applying for a mortgage. Not only will it improve your chances of getting approved, but it can also help you get a lower interest rate, which will save you money in the long run.

Here are some tips to help you easily pay down your debt:

  1. Make a budget: The first step to paying down debt is to know exactly where your money is going. Make a list of all your monthly expenses and determine where you can cut back. Use the extra money to pay down your debt.
  2. Start with the highest interest rate: This is called the avalanche method. Start by paying off the debt with the highest interest rate, while making the minimum payments on your other debts. This will save you money in interest in the long run.
  3. Snowball method: This is where you pay off your smallest debt first, while making the minimum payments on your larger debts. Once you pay off the smallest debt, move onto the next smallest debt. This method can help give you momentum and motivate you to keep going.
  4. Consolidate your debt: Consider consolidating your debt into one loan with a lower interest rate. This can make it easier to manage your debt and save you money in interest.

Remember, paying down your debt is not easy, but it’s worth it in the end. Not only will it improve your chances of getting approved for a mortgage, but it can also give you peace of mind and financial stability.

4 Mistakes to Avoid for a Successful Build

  • Building
  • Comments Off on 4 Mistakes to Avoid for a Successful Build
  • by

Here’s the thing: Building a new home is exciting, but it’s also time-consuming and stressful (to put it mildly).  That’s why I want to share 4 mistakes I see homeowners make when building that could be 100% avoided with a little planning and guidance on the front end: 

→ Not setting a realistic budget: Building a new home can quickly become expensive if you don’t set a realistic budget from the start. You must consider all the expenses, from permits to finishes, and plan accordingly.

→ Skipping the planning phase: It’s important to take the time to plan out every detail of your new home, from the layout to the finishes. Rushing through this phase can result in costly mistakes and regrets down the line.

→ Choosing the wrong builder: Choosing the right builder is crucial when building a new home. Do your research and choose someone with a good reputation, experience, and a proven track record in the city or neighborhood where you want to build. 

→ Neglecting future needs: It’s important to consider your future needs when building a new home. Will your family be growing? Will you need more storage space? Consider these factors when planning out your new home.

Click here for a FREE Guide: Buying New Construction in West Michigan!

What is an Earnest Deposit?

An earnest deposit, also known as an “earnest money deposit” or simply “earnest money,” is a sum of money that a buyer puts down as a show of good faith when making an offer on a home. Essentially, it’s a way of showing the seller that you’re serious about purchasing their property and that you’re willing to put your money where your mouth is.

The amount of an earnest deposit can vary depending on the price of the home and the local real estate market. In general, however, it’s typically around 1-2% of the purchase price. So, if you’re buying a $300,000 home, you might be expected to put down an earnest deposit of $3,000-$6,000.

So, what does this money go towards? Well, if your offer is accepted and you go through with the purchase, the earnest deposit will typically be applied towards your closing costs or your down payment. If, however, the deal falls through for some reason (such as the seller backing out or the home failing to pass inspection), you may be able to get your earnest deposit back.

It’s important to note, however, that this isn’t a guarantee. If you back out of the deal without a valid reason, the seller may be able to keep your earnest deposit as compensation for the time and effort they put into the sale.

Overall, an earnest deposit is a key part of the home buying process. It shows the seller that you’re serious about purchasing their property, and it can help give you an edge in a competitive real estate market. Just be sure to understand the terms of the deposit before you put any money down.

What Does Highest and Best Offer Mean?

If you’re in the market to buy a home, you may have come across the phrase “highest and best offer” when dealing with sellers. It may seem daunting, but it’s actually a common practice in the real estate world.

When a seller asks for your highest and best offer, it means that they want to see the best possible offer you can come up with. This is usually done when there are multiple offers on the table and the seller wants to make sure they’re getting the most value for their property.

Now, you may be wondering why you should trust your Realtor to guide you in this situation. Well, your Realtor has experience in negotiating and can help you come up with the best offer possible based on market conditions and the condition of the home. They can also advise you on whether or not it’s worth competing with other offers and if there are any other factors to consider.

It’s important to remember that a seller asking for your highest and best offer doesn’t necessarily mean they’ll accept it. It’s simply a way for them to gauge the market and see what buyers are willing to pay. So don’t feel pressured to offer more than what you’re comfortable with.

In the end, it’s always best to trust your Realtor and their expertise. They have your best interests in mind and will work to make sure you get the home of your dreams at a price you’re comfortable with. So don’t be afraid to ask questions and lean on their guidance during the home buying process.

5 Ways to Secure Your New Home

As a new homeowner, moving in can be both exciting and overwhelming. While you may have already unpacked your belongings and started decorating your new space, it’s important not to neglect the safety and security of your home. Here are a few things you should do to ensure that your new home is secure.

  1. Change the locks: One of the first things you should do when moving into a new home is to change the locks. You never know who might still have a key to your new place, so it’s always best to err on the side of caution and change the locks.
  2. Install an alarm system: Installing an alarm system can provide peace of mind and deter potential burglars. There are many options available, from DIY systems to professional installations.
  3. Check windows and doors: Make sure all of your windows and doors are secure and have functioning locks. Consider adding additional locks if needed, such as slide bolts or deadbolts.
  4. Install outdoor lighting: Outdoor lighting can help deter burglars and make it easier for you to navigate your property at night. Motion sensor lights are a great option as they can detect movement and turn on automatically.
  5. Meet your neighbors: Getting to know your neighbors can be helpful in keeping your home safe. They can help keep an eye on your property when you’re away and alert you if they see anything suspicious.

By taking these steps, you can help ensure that your new home is safe and secure. Remember to always be aware of your surroundings and report any suspicious activity to the authorities.

Thinking About Selling Your Home in 2024? What to do now to prepare.

Selling your home can feel like a big undertaking, but it can also be a really exciting and rewarding experience. If you’re thinking about putting your home on the market within the next year, there are a few things you can do to prepare yourself so that you aren’t rushing to do everything at the last minute. I want to share with you some tips and advice that I give to my clients to get you started and feel confident about the process. So, let’s dive in!

  1. Start with a plan: The first step in preparing to sell your home is to make a plan. Determine your timeline for selling and moving, set a budget for any necessary repairs or upgrades, and research local Realtors to find the best fit for your needs.
  2. Declutter and organize: Before putting your home on the market, it’s important to declutter and organize your space. This means removing excess clutter, packing away personal items, and organizing your closets and storage spaces. A clean and organized home will make a better impression on potential buyers. Less is best!
  3. Make necessary repairs: Make a list of any necessary repairs and upgrades, such as fixing leaky faucets, replacing outdated appliances, or repainting the walls. Make sure to tackle these projects now to ensure that your home is in the best possible condition for when you are ready to sell.
  4. Boost your curb appeal: The exterior of your home is the first thing potential buyers will see, so it’s important to make a good impression. Invest in landscaping, paint the front door, and make sure the exterior of your home is clean and well-maintained.

By taking care of this work up front you will be prepared to hit the ground running when you are ready to get your home listed. Need advice on finding a Realtor that best fits your needs? Click here for tips on finding the right real estate agent.

Is Condo Living Right For You?

Have you been thinking about simplifying life? Many people get to a point where they’d rather travel, spend time with friends/family or enjoy their hobbies than invest their time and efforts in maintaining their home. If this is you, condo living may be the right fit. Consider these factors before making your decision:

  1. Lifestyle: Condo living can be great for those who want a low-maintenance lifestyle. You won’t have to worry about outdoor maintenance, such as mowing the lawn or shoveling snow. This can be particularly attractive for retirees or busy professionals. On the other hand, if you enjoy spending time in your yard or having more space to yourself, a condo may not be the right fit.
  2. Cost: While condos can be less expensive than a single-family home, they also come with monthly fees for things like maintenance and amenities. Make sure to factor in these costs when considering if a condo is within your budget. Additionally, you’ll want to factor in any costs associated with selling your home, such as real estate agent fees and closing costs.
  3. Location: Condos are often located in urban or suburban areas, which can be great for those who want to be close to amenities like restaurants and shops. However, if you prefer a more rural or secluded location, a condo may not be the right fit.
  4. Space: Condos typically offer less space than a single-family home, which can be a challenge if you have a lot of belongings or need space for visiting family members or hobbies. Make sure to consider the amount of space you need when deciding if a condo is right for you.

Choosing to shift to the condo lifestyle can be a big change, but for many it is a great fit and allows them to simplify life and have time to do the things that they enjoy. Looking for more info about the process of downsizing to a condo? Reach out to me, I’m happy to help!

How to Handle the Stress of Buying a Home in a Competitive Seller’s Market

Buying a home in a competitive sellers market can be an incredibly stressful experience. With limited inventory, multiple offers, and bidding wars, it’s easy to feel overwhelmed and anxious. However, with a few strategies and tips, you can navigate the home buying process with confidence and ease.

  1. Get Pre-Approved for a Mortgage One of the best ways to reduce stress when buying a home is to get pre-approved for a mortgage. This will give you a clear idea of your budget and what you can afford. Additionally, it will help you move quickly when you find a home you love, as sellers are more likely to accept offers from buyers who have already been pre-approved for a mortgage.
  2. Be Prepared to Act Quickly In a competitive sellers market, homes can sell quickly, sometimes within hours of being listed. This means you need to be ready to act quickly when you find a home you love. Have your pre-approval letter, down payment, and any other necessary documents ready to go so you can make an offer as soon as possible.
  3. Work with an Experienced Real Estate Agent Working with an experienced real estate agent can make a huge difference when buying a home in a competitive market. A good agent can help you navigate the market, find homes that meet your criteria, and negotiate on your behalf. They can also help you stay calm and focused during the stressful parts of the home buying process.
  4. Don’t Get Emotionally Attached to a Home While it’s important to love the home you buy, it’s also important to avoid getting emotionally attached to a specific home. In a competitive market, it’s possible that you may lose out on a home you really wanted, even if you offered a high price. If this happens, try not to get too upset. Remember that there will always be other homes on the market, and the right one will come along.
  5. Consider Making a Strong Offer In a competitive market, it may be necessary to make a strong offer to stand out from other buyers. This could mean offering more than the asking price, offering extended possession after close at no cost, or agreeing to a quick closing date. However, be sure to only make an offer you can afford and that makes sense for your budget.
  6. Have Patience and Stay on Track So many home buyers start to get frustrated and start grasping at straws for home options when they do not feel that enough homes are available that meet their criteria. Do not run all over the place looking at homes out of your target area, out of your budget or are missing your must haves. This will cause more burnout and not get you any closer to your home goal.
  7. Take Breaks and Practice Self-Care Buying a home can be a stressful experience, so it’s important to take breaks and practice self-care. Make sure to take time for yourself to do things you enjoy, like exercise, meditate, or spend time with friends and family. This will help you stay calm and focused during the home buying process.

Buying a home in a competitive sellers market can be a stressful experience, but with these tips, you can navigate the process with ease. Remember to stay focused, work with an experienced agent, and take care of yourself throughout the process. With a little patience and perseverance, you’ll find the perfect home for you and your family.

Should You Buy A Home Listed “as is”?

I feel like one of the most confusing terms used in real estate is the concept of selling “as is”, so let’s simplify it. The most general use of this term is that the seller is selling the property in its current condition, without making any repairs or renovations.

Should you consider buying a home listed “as is”? These three tips will help you decide if this option is a good one for your home buying goals:

  1. The Price Should Reflect the Condition: It’s convenient for the seller to put the home on the market and list it “as is”. In order to get top dollar for the home the seller would have had to put in all the work to attract a buyer in that market. As a buyer looking at a home that needs work that the seller is not willing to do, make sure that the home is priced considerably lower than the competing homes on the market. If the sellers are still trying to get average market value for the home, they may not be realistic about selling at this point.
  2. Consider the Cost of Repairs: While the seller may not be willing to make any repairs or offer credits, understanding the cost of repairs can help you determine if the property is worth the investment or just too much of a project for you at this time. When you write an offer you can use the estimated cost of repairs to back up your offer price.
  3. Understand Your Financing Options: Many lenders require that certain repairs or renovations be made before financing can be approved, which may not be possible with a home listed “as is” if the condition is poor. You may need to consider alternative financing options or be prepared to make repairs out of pocket. There are financing options that allow for you to finance in the repairs needed, ask your Realtor to put you in touch with a great lender that can explain what this type of program has to offer.

Overall, purchasing a home listed “as is” can be a great opportunity for buyers, but it’s important to carefully consider all of the potential implications. I cannot stress highly enough the importance of hiring a professional Realtor to guide you through this process. They will have resources for you and a process to simplify your home buying experience.

Best Practices for use of Video Surveillance Cameras While Selling Your Home

So this day in age in home and front porch door bell cameras are super popular. I, myself have one. It’s great for many things. Tracking when packages are delivered, looking to see who is at the front door before deciding whether or not you will answer it, preventing porch theft, monitoring your baby while they are in the crib, etc.

Now lets talk about whether or not it is appropriate to have these types of devices recording while your home is for sale. In the Grand Rapids, Michigan area the market where I work, they address audio surveillance (not necessarily video) during showings, open houses and inspections.

Audio Surveillance. Seller understands that the use of an audio surveillance device during showings, open houses, or inspections on the property may result in a violation of state and/or federal criminal wiretapping statuses. Broker recommends that Seller disable any audio recording devices during showings, open houses and inspections.

It does not say anything about limiting video. Furthermore it only recommends that you disable the audio during showings, open houses and inspections, mainly because you could be breaking wiretapping laws that the state and/or federal government have in place.

This is important to note for potential buyers. When touring homes do not assume that the sellers have turned off the video and/or the audio on the cameras in and around their home. Most sellers are likely to follow the rules however some may be willing to risk it and keep them on.

I tell my buyers to be careful what they say when looking at homes. You never know when the seller is listening in and it can make the difference between the seller being inclined to be acceptable or negotiable to your offer (if they hear something negative they may be offended). In addition it could possibly make your negotiating position weaker if you make an offer lower than the ask price, yet the sellers heard on their audio recording that you were willing to do anything you could to buy the home.

Best practice recommendations:

If you are a seller, turn off the audio when potential buyers are in the home.

If you are a buyer, assume that the sellers have the video and audio on while you are in the home. Do not say anything you do not want them to hear.