HOW SCHOOL RATINGS CAN IMPACTS HOME VALUES AND PRICES.

 New buyers tend to have a variety items on their "want or need" list in their search for a new home.  For some, school ratings are not a key factor influencing their decision to purchase, but for young families and buyers wanting to start a family school ratings may be a factor driving their purchase decision.  This is not to say that buyers without children will not take advantage of the school and neighborhood rating when purchasing a new home.

Let us examine the significance of selecting school ratings.  School quality ratings reflect both the local and larger community in many positive ways.

1. They can lead to lower crime rates

2. Increased property taxes 

3. Increased civic participation, cultural events, and literacy.

Obviously, parents want their child to attend a good or highly rated school that offers:

1. high academic standards

2. high attendance percentage

3. high graduation rates 

4. high standardized test scores

5. numerous opportunities for extracurricular activities.

Not all communities can boast the good or high rating sought by new buyers.  Many schools in low income areas suffer from lack of adequate funding, lower standardized test scores, and limited extracurricular activities.  These communities tend to lack economic growth and funding from outside sources - i.e. local and/or state government.  

Bottom Line:

New home buyers bring to their property search a number of compelling wants and needs when looking for a new home.  School and neighborhood ratings do carry weight when young parents and soon-to-be parents consider their next home purchase.  

WHAT DOES APPRECIATION MEAN IN REAL ESTATE TERMS?

The ink is not even dry on the closing documents on that new home you just bought and already are beginning to wonder how much the value of my new home has increased since signing the purchase contract. 

Let us spend a few minutes discussing home appreciation and what are some of the factors that influence appreciation.

By definition, the term appreciation refers to the increase in value of a property over time.  As a new homeowner, you would anticipate the value of your home to increase over the years you own it.  

There are several key factors that impact the calculation of home appreciation. Here are the ones you need to be aware of during your home ownership.

1. Inflation,

2. Job opportunities in your housing market,

3. Interest rates,

4. Location, and 

5. Home improvements you make.

Another good thing to remember about increasing your property values is that you are most likely increasing your home equity if you have a mortgage.

According to Millionacres.com the national average of appreciation is 2% month over month or 14.5% year over year. Valuation rates vary depending upon your location and any additional home improvements made.

Bottom Line: 

Today's housing appreciation values have seen a significant increase in the post Covid-19 pandemic. How long they will remain at this level is still an unanswered question.  Often, the housing market responds much slower than other economic indicators.   

   

FOR SALE BY OWNER (FSBO)

 Thinking of selling your home, but do not want a real estate agent to handle the sale; then For Sale By Owner is the way to do it.  By selling without a real estate agent, you can reap some significant benefits - including saving on agents commission and a maximum return on your home.

Yet, the road to FSBO can be challenging and confusing when dealing with the real estate vocabulary and legal paperwork.

Let us be clear from the outset, there are no laws requiring buyers and sellers to use real estate agents when buying or selling a house.

 Here are a few of the pros in favor of selling your house without an agent.

1. Lower commission fees: Real estate commissions fluctuate from locale.  Most range from 2.5% to 6% with half going to the buyer's agent and the other half to the seller's agent.  In FSBO transactions, commission only need to pay the buyer's agent.

2. Total control: When selling the house, you have the last say on everything.  

3. Insider knowledge: Potential buyers always want the inside 411 on the neighborhood and the service providers in the area.

Along with the pros FSBO does have its cons.

1. Limited pricing data: Real estate agents have access to current market data and can provide a comparable market analysis price for your house.

2. Lack of knowledge: This includes staging tricks to legal paperwork and technical aspects of the real estate transaction.

3. Reduced market pool: Statistics show that about 28% of buyers find their homes through real estate agents which reduces a FSBO exposure to the larger buyer's pool.  

Bottom Line: It is important for you to recognize the pros and cons of For Sale By Owner before you start the sale process.  

CHECKLIST FOR THE NEW OWNER

Okay, so now you have that new home you have always wanted, and you are getting settled in.  Before you get too comfortable here is a quick checklist of items that you need to take care of ASAP.

Checklist:

1. Secure the owner's manuals and warranties for any appliances left in the house.  If it is a new build, be sure to collect them from the appliances and file them with your important home papers.

2. Garage door opener.  Glad to have a garage to store your car, best to insure you obtain the garage door opener(s) before the former owner departs.

3. Extra set of keys. Until you change the locks on your new home, be sure you have ALL the copies of house keys.  Then when you do change the door locks make extra copies and label them before placing them in a key storage cabinet.

4. Other keys. If you have a storage shed on the property that is locked, you will need that key as well.  

5. A list of local service providers. This can include dry cleaners, yard and pool service, plumber and any other services that might be helpful to the new owner.

6. Code to the security alarm and the phone number for the monitoring service if it has not been disconnected.  As new owner you can change the security alarm provider and the codes after occupancy.

7. Numbers for local utilities.  This may be helpful for owners who are new to the area or do not have internet access in the new home.

Bottom Line: Before the property changes hands, consult your list to make sure these items transfer with the house.

  

LEGAL DESCRIPTION VS. PHYSICAL ADDRESS

 It is reported that Thomas Jefferson woke up the morning after completing the famous Louisiana Purchase and muttered, " What did I just buy?"  So, he hired a whole bunch of surveyors to figure it out.

Well, you might not have Jefferson's problem, nor did you just purchase one-third of the now United States, but you did purchase a plot of land, perhaps with a house, and you want to know "What did I just buy?"

Let us clear the air for you and help you understand these two terms.

Legal Description

Simply put, a legal description is the definition of the real estate bought and sold and is sufficient to identify it for legal purposes.  It allows us to determine the size, shape, boundaries, and location of the parcel.

The technical term is "Legal Property Description" recognized by law as to the definite location of a track of land by reference to a survey, recorded map, or adjoining property.

Therefore, when preparing a deed, it is important to use the correct legal description.

There are two primary types of legal descriptions: lot and block and metes and bounds.  Lot and block are used in subdivisions where metes and bounds are used to locate property within the public surveying system.

Physical Address

A physical address, often referred to as street address, is used to describe where a place is physically located.  The location is often under the jurisdiction of an administrative area or a region that has some government function.  

Think about it this way, when you are asked to give directions to your home, what do you say?  I live at 123 Banana Boat Lane, Anytown, USA.   You then begin to detail a course to follow from point A to point B.  You may even throw in several landmarks to help navigate to your location.

Bottom Line

It important to know the difference between Legal Property Description and Physical Address.  Both are important for different reasons and both relate to where you live and what you own.