Pricing Your Home for Sale When Everyone Else is Overpriced

The past few years have been exciting for home sellers. Not only were home prices historically high but buyers were well qualified and enjoying low interest rates. Today’s housing market is dramatically different in many areas of the country. If you are considering selling your home, you may be wondering how to select the correct price when it seems all the sellers around you are still overpricing theirs. Working with your real estate agent, the first step is to look at recent sales, not just recent listings. You may find quickly that the homes are selling for quite a bit less than they are listed for. You also need to look at the trends. Are sales prices rising month-over-month or declining – and by how much? This can help you gauge if you should price higher than recent sales or lower. In areas with few recent comparable sales, such as markets with many custom homes, it may benefit you to get a professional appraisal. This will cost a few hundred dollars and will give you a full picture of the local market. Appraisers will consider the unique features of your home vs the recent sales, as well as the sales prices. This can offer great information if you have a beautiful view, a large lot, or a remodeled home. Finally, rely on the advice from an experienced agent. Don’t be tempted to join the pack if they are overpriced. Be reasonable in your expectations. This will allow you to sell quickly and for the best price possible in the current market.

How Lenders Treat Commissions When Qualifying for a Home Loan

One of the biggest factors lenders use in qualifying potential home buyers is income. When coupled with credit scores, income is critical in reducing the risk for the lender which in turn gives the buyer better terms, lowering costs. For most borrowers, income is a steady paycheck every few weeks, but for others, a sizable portion of their annual income comes from commissions or bonuses. Understanding how a lender applies this income to the qualifying criteria will help potential borrowers avoid frustration and successfully get a loan. The main concern lenders have when evaluating risk is the consistency of the borrower’s income. Commissions and bonuses are variable, and lenders want to be assured that the income will continue. The first thing a borrower can do to reassure the underwriter is to offer strong documentation. People in the sales profession, for example, should be able to provide years of documented commissions. This shows a record of consistent commissions. Bonuses can be treated the same way. For those who’ve recently started receiving commissions, lenders may limit the amount they use in determining income. Lenders are typically looking for two years of history to establish a pattern of earnings. They may ask for a letter from the employer to outline the commission and bonus structure. The best strategy for those looking to get a home loan with variable income is to plan. Provide strong and complete documentation up front. Maintaining excellent credit will also demonstrate stability. Lastly, prequalification becomes even more important for those who have commissions or bonuses as part of their income. Lenders may limit the amount of these variables when determining a maximum loan amount; knowing this upfront is important to understand before home shopping.

Avoiding Sky-Rocketing Homeowners Insurance Rates

If you own a home, you know that you probably already maintain ahomeowner’s insurance policy. Over the past few years, the cost of thisinsurance has soared. Wildfires, hurricanes, floods, and other naturaldisasters have caused insurance companies to dramatically increasepremiums. But there are ways to try and mitigate these increases. Here area few tips to employ in an effort to lower your costs. · Shop Around – It may sound simple, but taking the time to get somecompetitive quotes can save you money. Many companies will lower coststo attract new customers. · Increase Deductibles – If you can afford it, increase the deductiblefor all your policies. Consider what you can afford to pay out-of-pocket inthe event of a claim. · Check for Discounts – Speak with your insurance provider to learnabout available discounts. Common discounts include discounts forimproved home security or fire detection. Long-term policyholders andsenior citizens may also qualify for a discount. Home improvements canalso help, such as a new roof or fire-repellent landscaping. · Improve your Credit – It may seem strange, but poor credit canaffect your home insurance costs. Credit scores reflect your financialsecurity and good credit reduces risk to insurers. · Bundle Policies – Do not overlook the value of using one providerfor all policies. Combining a home with an auto or other policy can save youhundreds of dollars on all policies. Prices are going up on everything. While you may be able to cut out movienights or weekend getaways, insurance is typically an essential part of yourfinancial health. It is a good idea to spend some time ensuring you aregetting the most for your money by following these tips

Multi-Generational Living – A Path to Affordable Homeownership

In today’s increasingly expensive housing market, multi-generational livinghas emerged as a practical solution for families seeking homeownership.By pooling resources and sharing living spaces, this lifestyle not only allowsmore people to achieve their dream of owning a home but also offersadditional benefits in child and elder care. Here's how your family can leverage this strategy: · Financial Resources – Combine income, savings, and credit to builda strong financial foundation for purchase. By using all available resources,the family may be able to purchase a larger home than they could alone. · Space Optimization – Multi-generational homes often featureseparate living suites or accessory dwelling units (ADUs) or granny flats.Finding some kind of separation allows more flexibility and privacy. · Shared Responsibilities – Discuss the distribution of chores, costs,and maintenance tasks. This not only provides for a shared burden butremoves the opportunity for disagreement or disappointment.   · Estate Planning – Multi-generational homeownership can makeinheritance strategies easier but can also create misunderstandings amongsiblings not involved in the living arrangements. Clear estate planning isessential. · Clear Expectations – Be very clear about expectations for lifestyle.Discuss childcare, elder care, family time, etc.   The most important thing is to have open communication. Expectations onboth sides can create challenges without clear guidelines andconversations. The benefits of multi-generational living can be enormous.Studies show that children thrive when in regular interaction withgrandparents and the elderly live longer when surrounded by family.Prompted by the housing affordability crisis, multi-generational living isbecoming more practical and desirable. With a little communication andplanning, this offers families new options for owning a home.