SJ Real Estate

What To Consider When Buying A Fixer-Upper

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What To Consider When Buying A Fixer-UpperIn your imagination it seems like a great idea – you purchase an older run-down property and you have the chance to fix it up and turn it into the home of your dreams.

To Renovate, Or Not To Renovate

However, the renovation project that is simply a quick montage in your imagination will actually take several months or years and thousands of dollars in real life.

The concept of renovating a “fixer-upper” property is exciting, but the reality is a lot of work and investment. How can you make sure that you are making the right choice for you?

One of the main advantages of buying a fixer-upper property is that you will usually be able to get the property for a much cheaper price. But is it worth it for the amount of time and money you will need to invest in the property?

Here Are Some Questions You Should Be Asking Yourself When Making Your Decision:

  • Do you (or your friends and family members) have the skills to be able to perform most of the renovations yourself? If you do the labour yourself, you will be able to save thousands of dollars that you would have spent hiring contractors, which will make the renovation a much more profitable project.
  • Are you comfortable with the idea of living in a construction zone, perhaps for several months or more? There will be dust and noise everywhere and you might have to cope without a kitchen or a shower for a while.
  • Make sure that you have a thorough inspection of the home performed so that you can see whether the home has a sturdy foundation, good wiring and plumbing, etc. If your inspection reveals any structural issues or water damage, you might be in for more than you bargained for. You need to start with a house that has “good bones”.
  • If the home has serious structural, plumbing or wiring problems you should stay away – these repairs are very expensive but “invisible”, so you are unlikely to recoup your costs when you sell the home.
  • Add up the estimated costs for renovating the property along with the cost of the home – does it still work out to be a better deal or would you be better off buying a new property.
  • What is your strategy for financing the renovations? If your only option is putting it on the credit card, you might want to think twice because this is a very high interest option.

Buying a fixer-upper property can be a great investment and can give you the opportunity to transform a run-down old house into the property of your dreams. However, make sure you that you consider the choice carefully before making your decision.

For more information about about buying or selling a fixer-upper or any questions regarding real estate, contact your trusted real estate professional. 

Whatever You Do, Don’t Make These Common Mortgage Mistakes

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Whatever You Do, Don't Make These Common Mortgage MistakesAre you applying for a mortgage on your home? Keep in mind that a mortgage is a major financial decision and choosing one will have a significant impact on the rest of your life.

Many people go into this decision without understanding all of the essential mortgage information they need to know, which means that they are likely to make poor choices that will result in paying much more than they need to.

If you want to save yourself from throwing away your hard earned money, here are a few common mistakes to avoid:

Trying To Bottom Out the Market

Many people will wait too long to make a decision to lock in their mortgage rate, trying to wait until they think that the rates have hit bottom. However, unfortunately most of the time this leads them to wait too long and end up with a higher interest rate.

If you are waiting things out, keep a very close eye on the economic indicators. Your daily newspaper will be a good source of information about the fluctuations of interest rates.

Forgetting About Closing Costs

In addition to saving up a down payment for your mortgage, don’t forget to factor in the closing costs. These can range from two percent all the way up to six percent of the value of your home. Make sure that you have budgeted for this in advance, so that these fees don’t catch you by surprise.

Not Considering All Loan Options

There are many people out there who haven’t considered certain loan products, such as an adjustable rate mortgage, because they just don’t understand how they work.

However, if you do this you might be missing out on an option that would really work well for you. Make sure you do your research and gain an understanding of the loan options available to you.

Looking At Just The Mortgage Rate

Remember that the mortgage interest rate is only one factor that you should consider when choosing a mortgage. Don’t forget to also consider the time frame of the mortgage, the restrictions on lump sum payments and any other important factors.

These are just a few of the common mistakes people make when choosing a mortgage, so make sure to avoid falling into these traps yourself.

For more information about home buying and mortgages, you can call your trusted mortgage professional. 

What’s in a Color? Six Paint Colors That Will Affect Your Mood

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What’s in a Color? Six Paint Colors That Will Affect Your MoodBelieve it or not, paint colors can affect your mood. When remodeling your home, the color you use on the walls can end up being just as critical to the thematic consistency of your home as the furniture you use to decorate it.

Before you slap any old color on the walls, take some time to consider what mood you’d like each room to inspire.

Red, Yellow And Orange: The Colors Of Excitement, Hunger And Happiness

Ever wonder why the dining rooms, kitchens and entertainment rooms you see in magazines always seem come in every shade of red? It’s because these rooms are dedicated to eating and leisure time. Shades of red, especially bright, vibrant reds, have been linked to increased appetite and increases in energy levels.

In a similar vein, we have shades of yellow. Typically, yellow hues have been known to encourage feelings of happiness and joy.

That said, it’s a good idea to steer clear of especially bright shades of yellow that can be harder on the eyes, as they can foster feelings of frustration and an inability to concentrate.

Orange, like red, provides a great way to bring up energy levels, but like yellow, is prone to cause irritation when used excessively. People are more likely to be excitable and show more enthusiasm in rooms that incorporate this color. In order to reap the benefits of orange without causing irritation, restrict your use of it to the odd wall here and there.

Blue, Green And Purple: The Colors Of Restfulness, Peace And Serenity

It’s no surprise that blue is the color of calm and relaxation. For bedrooms and bathrooms, blue hues are ideal for inspiring restfulness; however, this color’s calming influence makes it a poor paint color choice for high traffic areas where high energy levels are necessary. 

Occasionally, overusing this color – especially in darker shades – can bring moods down beyond calmness and into sadness and depression.

Green is yet another color that inspires peace and restfulness. The advantage of green is that the serenity it brings on is accompanied by feelings of rejuvenation and replenishment. Think of green spaces as places where you can gather yourself and quietly rebuild your energy levels.

Purple is often associated with lavishness and luxury in deep, rich hues that spark creative thinking. In lighter shades, it has the same calming influence of blue but, thanks to its red undertones, none of the sadness that blue can often have.

Making The Most of These Colors: A Little Goes A Long Way

It’s unlikely that you will be painting any of the rooms in your house in a single shade of any of these colors. Experiment with different shades and work with colors that inspire similar emotions to break up the visual impression of the room.

You can use neutral paint colors like brown, black and white to bring depth to room, or to suppress the harsh tones of brighter colors like yellow and orange.

Psychologists have long known that colors affect mood, and in recent years, the interior design world has caught on as well. Now that you understand how paint colors can alter your mood, it’s important to paint your walls wisely.

How You Can Get The Full Selling Price You Want For Your Home

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How You Can Get the Full Selling Price You Want for Your HomeWhen it comes to selling your home and getting the full selling price you want, there are certain tactics and methods you can employ to ensure that this wish becomes a reality.

Avoiding the commonly made mistakes that end up lowering the value of your home and discouraging people from viewing it is ultimately the key in getting top dollar, as well carrying out the showings and sale of your home in a professional manner.

Listen to the professionals, and make sure you employ these real estate sale methods to get your desired number on your home sale.

Listing Tactic: Adding A Buffer

Always dependent on the type of market you find yourself in, a common and successful tactic in getting the price you really want for your home is adding a buffer on the list price.

This means that if you want $500,000 for your home, you should list your home somewhere around $510,000 to $520,000 to allow for some negotiating room. Even if you’d prefer not to negotiate, the majority of buyers will always assume that you have room to come down on the price, and will put in their offers accordingly.

Overpricing: Avoid At All Costs

With that being said, you don’t want to overprice your home too much so as to discourage potential buyers from looking at it, or to put your home outside of a financial bracket. Make sure you speak to your trusted real estate advisor on exactly what the right list price should be to obtain your desired value.

Increase Desire: Have Your Home Staged

In order to get the price you want for your home, you need to make a good impression on the prospective buyers. Having your home professionally staged can dramatically increase the amount of interest you receive on your home, perhaps even creating multiple offers – which is the best situation a home seller can be in!

Appeal To Online Shoppers With Professional Photos

With so much of today’s modern real estate shopping happening online, you want to ensure that your home has a strong online presence with professional photos and a digital floor plan available to prospective buyers. Also make sure that all information online is full and complete, and presents your home in the best light possible.

Always Say Yes To Open Houses And Showings

Especially in a hot market, you want to ensure that you leave your home empty for your real estate agent on weekends so that they can hold it open to the public. This is especially important early on in your list date so that the buyers on the market who are ready to make a move can see your house right away.

You should also apply the same importance to showings, and ensure that each showing request is promptly responded to with an easy “yes.”

If you put these tactics into your home selling plan, you will find that it will be much easier to obtain more interest from buyers. And with more interest, it will be much more likely that you will be able to obtain the price you want for your home.

So don’t underestimate the importance of these factors, and discuss them today with your trusted mortgage professional. 

The Ultimate Guide To Winning At Auction! Don’t Let Your Dream Home Slip Away

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The Ultimate Guide to Winning at Auction! Don't Let Your Dream Home Slip AwayWhile the traditional method of trawling for sale listings, making bids, and negotiating with the seller has been a popular rite of passage for many home buyers, buying a house at auction is swiftly becoming a favored way to purchase property.

Buying a home through auction can be tricky, so it’s best to do your research and keep your cool on auction day, lest you find yourself stuck with a less-than-ideal place to live for a price you didn’t expect to pay. If you’re in the market to buy through auction for the first time, here are some things you need to know.

How To Find Houses Up for Auction

Real estate agents will often use the same methods to sell a house by auction as they do in a traditional sale: adverts in newspapers and online, posters in their office windows, and signs outside the property.

Depending on the reason for the sale, a home auction may be held at a local courthouse, an auction house, or, in some cases, online.

Viewing A House Before Auction

It’s always best to try before you buy, so make sure you are able to view the house prior to the auction. Some real estate agents will insist on exterior views of the home only, but, if you’re a new buyer, this may not be enough.

Seasoned home buyers can often pick a house by looking at the exterior and reading a description; buyers new to the game should bank on seeing inside first.

Checking The Price Of An Auction

Look into the price that is offered for the home you seek to buy; sometimes, if a house is in foreclosure, the starting price of the home may be the balance of the mortgage, or a lower price to get people to begin bidding. Lenders, such as banks, are not permitted to make a profit from selling a foreclosure and may often sell homes at a loss; look out for these bargains when checking house prices in your local area.

Bidding At An Auction

On auction day, make sure you enter the auction knowing the general value of the house and the maximum amount you are willing to pay; having these parameters set out will help prevent you from getting swept up in the auction process and bidding more than what you have or what the house is worth.

On the day, bring a cashier’s check—auction holders ask winners to pay for auction fees, bidding fees, and a deposit on the purchase. If you are successful on auction day, you will then have to close the deal with the seller just like any other property purchase.

If you need financing, you may wish to be pre-cleared by your lending company before the auction. Also, be aware that your winning bid may not be accepted. Many homes have a reserve price, and if the reserve is not met, the house will not be sold on the day.

If you are interested in buying a home through auction, go into the process knowing that auctions can be riskier than buying a home via traditional means. Also remember that just because a house is up for auction doesn’t mean you are guaranteed a good price. Some houses sell for a lot of money, and others sell cheaply but have hidden costs, such as urgent maintenance.

When you’re ready to find your new home by auction and finance it, call your local trusted mortgage professional for information.

Factors To Consider When Applying For A Home Mortgage

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Factors To Consider When Applying For A Home MortgageOwning a home can be a sign of independence and success. It allows you to build up equity and the mortgage interest and property taxes are tax-deductible. What can you do to make a home affordable for you?

Reputable lenders look at a list of criteria to decide how much they’ll loan you. 

This List Includes:

  • Credit score
  • Existing assets including cash
  • Car leases or loans
  • Credit card balances
  • Debt consolidation loans
  • Home equity loans
  • Installment loans
  • Student loans
  • Other monthly debts
  • Size/source of your down payment

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a home is within your budget.

Here Are Some Guidelines:

  • As a rule of thumb, your house hunting budget shouldn’t be more than 2.5 times your pre-tax annual income.  If you earn $50,000 a year, your budget for house hunting should be around $125,000.
  • Your Housing Expense Ratio, which is principal, interest, taxes and insurance shouldn’t be more than 25% to 28% of your pre-tax monthly income.
  • Your Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income.  This is the ratio between how much you owe and how much you earn.
  • Use an online calculator to figure how much home you can afford.

“Qualifying for” and “can afford” are two different things.  Shopping for a home within your budget will save you a lot of heartache now and in the future.

If you’d like help determining how much mortgage you can really afford, call your trusted mortgage professional today.