10 TIPS WHEN RENTING A HOUSE (Part 1)

 

Renting a house is a viable option to renting an apartment or condominium or outright purchasing a home.  For those who choose renting, here are 10 tips to consider before signing on the dotted line.

1. Research the neighborhood.  The big question here is: "Will I be in a safe neighborhood and is the property conveniently located?"  If you are in doubt or just not certain check out this website moving.com and select City Profile Report.  

2. Read the terms of the lease CAREFULLY.  It goes without saying that many renters think they got burned by their landlord simply because they did not read the terms of their lease.  

 Know what you are signing:

• rules
• exclusion clauses
• getting your security deposit back
• maintenance and upkeep obligations
• when and how to pay rent
• guidelines for breaking the lease 

3. Inspect the property.  For your own protection you will find it in your best interest to inspect the property prior to signing a lease.  Document any pre-existing damages (take photos) and submit a copy of your findings to your landlord.  Ask your landlord to provide you with a "Move In/Move Out Checklist" that clearly outlines your responsibilities towards the property.

4. Obtain Renter's Insurance.  You know the owner of the home has insurance against damages to the property, but it is incumbent upon you to obtain insurance to protect your personal possessions.  

5. Set up an automatic bill payment to your landlord.  Know how and when your landlord expects to receive the monthly rent.  You may be able to set up and automatic bill pay with your bank or set up an automatic calendar reminder to write a check for rent.  

When renting a home, it is always to your advantage to be well educated on what to expect.  First time renters may feel overwhelmed with the ins and outs of renting but knowing these 10 tips can help make the experience much easier.  

See you next week for the final 5 tips when renting a home. 

HOW TO ATTRACT MULTIPLE OFFERS DURING A SELLER'S MARKET

 

Attracting multiple offers is a seller's dream come true.  Attracting multiple offers during a seller's market is easier that you may think.

What is a "seller's market"?  Simple answer: the demand for houses exceeds the supply of available houses. 

Are we in a "seller's market"? Yes, the current demand for available houses is greater than supply.  Good news for sellers; tough news for buyers who are jockeying to buy a house.

As a seller what can I do to attract multiple offers on my house?

1) Prepare your house for sale. Taking the time and exerting the energy needed to create multiple offers will pay off when you prepare your house to sell.  Spruce up the landscaping; eliminate clutter inside; make necessary repairs; and apply a fresh coat of paint go a long way to sell your house.

2. List your house on Friday. Friday listings will spark interest in "house hunting" from potential buyers.  Work with your real estate agent to create a listing that will attract buyers and those multiple offers.  Have professional photos that showcase your house.

3. Limit showings.  May sound strange, after all I want multiple offers so why not have numerous showings.  Yes, it is true, but you still want to have some control of the movement of people through your house.  Limited showings will weed out those who are not serious about your house from serious buyers.

4. Lower the sale price. Dangling the carrot of a lower price is always enticing.  But do not under cut your house's market value too much.  Just a little "trim" off the market value is ideal and will allow buyers room to negotiate with you a final sale price.

5. Don't set a time for offer presentations.  Buyers are not eager to wait and see if their offer was accepted.  With few homes on the market, if a seller is slow to respond to a buyer's offer, they may just miss the perfect deal.  Buyers will look elsewhere for their new home.  

Bottom Line:  Attracting multiple offers takes work and the assistance of a knowledgeable real estate agent in any market, but especially in a seller's market.  By creating the proper atmosphere for multiple offers you will not have to wait long to sell your house.

DECIDE WHY YOU WANT TO BUY A SECOND HOME

 

Deciding to buy a second home is a serious financial decision and not an emotional choice.  Before you jump into the pool here are a few things to consider that may help guide you.

1. Determine why you want to buy that 2nd home. 

  Here are a few reasons why others have purchased a second home:

• vacation destination
• income investment
• place to move when you retire
• rent to others short-term
• fix & flip 

2. Count the cost of owning a second home.

• Consult with your financial advisor or CPA to understand the benefits and/or liabilities of owning a second home.
• Identify the source of funding for the purchase.
• Set aside needed funds for repairs, closing costs, property tax and insurance.

3. Make the offer.

• Everything in real estate is negotiable, so make an offer.
• Make the negotiations a win/win situation for both you and the seller. 
• Understand you may need to "walk away" and find another property.

Take Away:  There are several reasons for owning a second home.  Decide what yours is and develop a plan to make ownership a reality.

How to Avoid Four Costly Mistakes When Downsizing

 

You are at that moment in your life and you are seriously thinking about downsizing.  The home you currently live in is too much for you to care for and the need for such a large house is no longer necessary.  Why not downsize into a more "resident friendly" home.

Here are four things for you to consider before downsizing that could mean more money in your pocket at the closing table.

1. Don't overstate your home's worth. Let us be honest when we think about the sale value of our home, we have the tendency to "overestimate".  This can lead to frustration and disappointment when we find that buyers are not chomping at the bite to purchase our home.

You can obtain information on the value of homes in your neighborhood by visiting Zillow, Redfin, Realtor.com.  These sites offer information on the properties that are currently for sale and allow you to determine a "priced to sell" value for your home.  You can also work with a real estate agent or hire an appraiser to determine the current comparative price for your home.

2. What will your new home cost? The answer to that question will be determined by your desired destination. Whether you are moving down the street, across town or to another country - do your homework.  Utilize some of the same resources above to help you understand the cost of securing a new home.  Remember, if moving to another country take into consideration the currency exchange rate. 

3. What are the tax implications for you following the sale of your home?  Simple answer and perhaps the most direct - talk with your financial advisor, CPA, or tax attorney. Remember, if you relocate outside the US, there may be restrictions on the amount of money you can transfer. 

Do not be blindsided by the "tax man" and get the answer you need before you sell.  There may be tax advantages for you if you stay in your home you were unaware of at the time you wanted to sell.

4. Know your closing cost estimate before you sell.  Here is the point where you need an attorney or real estate agent to help provide that answer.  You want to know what it will cost you to close the deal and the exact amount of funds you will have for your future needs.  Remember: your asking price and the final sale price of your home may differ.   Also, the amount of money you outlay for your part of the closing expenses may move up or down as you and the new buyer negotiate terms of the sale.

Takeaways:

1. Be an educated seller as to the current value of your home.

2. Be street smart about the cost of the neighborhood you plan to move into.

3. Make the tax man your friend before the sale.

4. Have a clear estimate in mind or on paper of your closing costs and the proceeds of your sale.