The Secret to Saving a Large Chunk of Your Monthly Mortgage Payment – Now

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It’s no secret that home values are on the rise. As in many areas across the nation, this has been happening slowly yet steadily for the past couple years. And it doesn’t come as much of surprise to homeowners, particularly given the growing scarcity of inventory of homes on hand in our marketplace.

There May Be Hidden Equity In Your Home

With those increasing values, however, comes another exciting fringe benefit that most homeowners are not aware of. In fact, we stumbled upon it ourselves after recently assisting a client who had their home reappraised. Though they had bought their home fairly recently, the decision to have their home reappraised ended up in their learning they had built 20% equity in their home in such a short time.

More Equity = No Mortgage Insurance

As you may know, with the most commonly used loan products like FHA loans, you no longer are required to pay Private Mortgage Insurance on the mortgage once you build 20% equity in your home. In fact, the amount of monthly PMI recently went up for FHA borrowers, making it an even greater expense than borrowers that have loans originating prior to April 1 this year are used to paying.

A Relatively Inexpensive Appraisal Is All You Need

If your property value has gone up and if the equity in your home is at least 20% of your loan value, you can eliminate your PMI payment altogether saving you a LOT of money for the rest of your loan. And with rapidly rising home values given the inventory outlook right now, your appraisal amount could very likely be much higher than what you paid for the home just a few years ago, last year or even as soon as just six months ago.

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Contact us today and we’ll put together some comparable properties for you, assist you in finding a reputable appraiser and help you determine whether this is a viable option for you. Why pay more than you need to?

You've Helped Us Achieve So Much!

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With great pleasure we announce today the honor that we have been given being voted the #1 Real Estate Team among Central Texas real estate brokers in the 2 to 3 license category. This privilege means a lot to us and we have to say – we could not have done it without you. 

Our esteemed clients and friends, neighbors and associates have helped us to reach this important pinnacle in our career and we’re not even close to being done yet! The Austin Business Journal, when they ranked us as #1 recently, published an article sharing our successes within the community and I can’t tell you how wonderful it is to be recognized in this way.

Again, we thank you for your continued support and realize that had it not been for your referrals, your trust in us and your belief in our value system – we could not be saying these words of gratitude for this honor today. 

Yet another important distinction is headed our way and we need your help to achieve it. Each year, the National Association of Realtors® hosts a “30 Under 30” program to help highlight the nation’s top real estate professionals under the age of 30. Right now, it’s boiled down to 50 finalists, where judges will select twenty-nine winners and readers will choose the final candidate.

Please click on the link below to vote for us. We’d love to represent Central Texas on a national level and pledge to continue giving you our best!

http://realtormag.realtor.org/30-under-30/finalist/2013/03/timothy-heyl

In the interim, please don’t hesitate to call us, email or walk in to see us anytime you need anything with buying, selling or investing in real estate.  Also, if you or anyone you know is interested in joining our high-energy team in either real estate sales, administration or otherwise – contact us today. We’d love to have a conversation over coffee to go over some of our goals and see how you can fit in to our team to join us in our endeavors.

How to Evaluate an Offer on Your Home

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For most homeowners selling their home the thought of negotiating an incoming offer is a matter of settling in on a price that both sides can agree upon.  But did you know that there is another key aspect of negotiations aside from price that could have even greater impact on the sale?  The terms of your contract hold equal weight and importance as price in the sale of your home and are critical to a successful sale.

Here are five essential things to consider when navigating through the negotiation process after an offer comes in on your home.

Preapproval

After the housing market crashed in 2007 lenders, buyers and sellers have proceeded very cautiously. Lenders are staunchly following stringent requirements, buyers and sellers are savvier than ever before and what seemed like formalities in the process before are now becoming necessities.  Preapprovals are one of the things that did not always need to be done in advance of buyers finding a home. But as you receive your offer on your property, be sure that your buyer has a preapproval from a reputable lender.  The letter should indicate what the buyer can afford and how much the lender is willing to loan them, assuming they meet all requirements at the time of application.

Down Payment

One of the requirements lenders have today is to have an appraisal done on the home to equate its value with the selling price.  Unless the buyer has a significant down payment available, a less than ideal appraisal can stand to affect the sale altogether, even causing the deal to break down. Check to see how much your buyer is able to put down on the house and add up the down payment with the loan amount to see if they equal your asking price.

Existing Home

Does the buyer have an existing home they need to sell?  This can be a problem for you as a seller if they want to include a contingency in the contract that absolves them from the commitment of buying your home if their home does not sell.  This can wreak havoc on the sale of your property, as it would require you to leave the terms of your sale up to the success of another sale.  It would be best to avoid offers that include existing home contingencies.


Closing Date

When does the buyer want to close on the home?  If the requested closing date extends beyond 90 to 120 days then it might be time to reconsider the offer.  Lenders have timing guidelines that dictate a 45-day policy, within which buyers must apply for a loan before closing. Anything longer than that would get in the way of the lenders’ policy leaving the seller hanging in limbo during those off weeks.  When a buyer cannot meet the contractual obligation to get a commitment within 45 days, it might be a good idea to forego the offer altogether rather than to risk the sale.

Cash Transaction

Some buyers offer cash rather than opt for financing and though it is an attractive offer at first, you need to make sure that the buyer has the cash.  Asking your Realtor to verify the availability of those funds will become a necessary additional step before you can move on in the offer.  In some cases, buyers opt for alternative financing and when the time comes to verify the funds they are unable to do so.  The risk is too great so unless you can be sure the cash is there, it is a better idea to move on to the next offer.

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Navigating through offers is a tricky process – especially in today’s market. It is no longer just a matter of coming to agreement on a sale price, rather both parties must agree to all aspects of the terms.  For customized guidance on your real estate endeavors, contact us today!

Protesting the Amount of Taxes on Your Property

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This is the time of year when homeowners across America are receiving notices from their County Tax Assessor’s office informing them of their home’s value on which they will be taxed.  Sounds simple enough – until and unless you find that the value they are using seems too high.  Of course, higher assessed value translates to more out of pocket property taxes so the last thing you want to be doing is paying more when you do not need to.

How To Determine Whether You Are Overpaying Property Taxes

There are two ways to find out whether your property taxes are higher than they should be. First, you can go the traditional route, which is to investigate sale prices of homes in the area that are similar to yours.  The sales you are looking for should be completed in the 2011 calendar year (since property values are assessed based on the previous year’s sales).

You can also contact your Realtor to get an idea of whether you should pursue a property tax appeal.  If there are unusual circumstances to the property (for instance if it was sold recently) then you may be asked for your email address to get a reply later.

The Tax Appeal Process

Depending on which county you reside in, the process will vary slightly but for the most part it is a matter of presenting supporting documentation to a board of review, demonstrating your values have gone down.  With the supporting data you can then request that your taxable value be reassessed prior to the next property tax payment due date.

Some counties provide only one window of opportunity for homeowners to appeal their property tax values while others offer two times during the year.  To confirm the policy in your area visit your county treasurer’s office or website for more information.  Similarly, the process of appealing your taxes will also vary from county to county.  There are companies and also attorneys that can assist you through the process but an important part of the process is to gather data supporting your claim for lower tax values.

Comparing Area Values

While you can investigate the sale prices of recently sold properties in your area a challenge might arise when it comes to finding near identical properties to yours or at least very similar ones.  In terms of amenities, square footage, style and structure – homes used to compare values must be like kind in order to be usable data. The best way to manage this aspect of your tax appeal process is to engage your Realtor and utilize their resources in finding good comparables.  No one knows the area and its homes better than your Realtor.  They will compile a list of several properties that have sold for less than your home’s current assessed value and through that documentation be able to prove the need to reduce your taxes.

Other Ways to Save on Property Taxes

Aside from lowering your tax dues on the home you may also be eligible for certain exemptions depending on your situation. Contact your local county tax assessor’s office to learn of the exemptions offered in your state. Some examples include exemptions for military personnel and veterans, owners of farm property or daycare facilities and non-profit student housing. 

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To find out if savings amounting to hundreds of dollars seems possible for you, find out now and beat the deadline!

Homestead Exemptions and Property Tax Appeals Can Save Homeowners Thousands

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If you recently bought a house but have not yet filed for a Homestead Exemption there is a good chance you may be missing out on a significant amount of savings! When you file the Homestead Exemption you will save about 20% of your property taxes since you are declaring that the home is your primary place of residence.

Not sure how to go about it? Contact us today and we’ll make sure you have a copy of the form you need to fill out. Just make sure you fill it out and submit it to the County Assessor’s office before May 1, 2013.

For homeowners that may be wondering why their taxable values seem high, there is the option of appealing your property taxes. Depending on how high the taxable values are you may be able to show the Board of Review that your home in fact is valued less.

How do you do that? Easy. Just get in touch with us and we will pull together data that will demonstrate through recent home sales and values in your area that your property taxes should be lower.  If you are unsure as to what your current property taxes are just visit traviscad.com or Google the name of your County and “CAD” (County Appraisal District) to learn where to access the information.
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As always, we welcome the opportunity to help you with all your real estate needs and look forward to speaking with you as and when you need us!

Home Maintenance Does More Than You Think

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For some, the phrase “home maintenance” might sound like a great way to spend a weekend, while to others it might seem like a dreaded, even avoided, task. However you view routine home maintenance, the fact of the matter is that this somewhat simple task, if done consistently, can increase your home’s value over time.

Increased Property Value

Benjamin Franklin once said, “An ounce of prevention is worth of a pound of cure.” This is certainly true when it comes to your home. In fact, proactive maintenance is essential to preserving the value of your home. If you ignore this important task, your home could actually lose 10% of its value over time.

There are a number of benefits you can expect from just making sure you home is kept in decent shape with occasional maintenance. For one, your curb appeal is improved by just simple acts of routine upkeep from time to time. Ultimately, your home reflects your attention to detail, or lack thereof.

Neglecting a home can greatly bring down the value of any property. Things like a house with chipped or fading paint, sagging gutters, or worn carpeting leads to a problem when it is time to sell. Not only does the work accumulate over time, so do the costs. A few simple fixes every year can add up to an increased home value over time.

Cost vs. Value

It’s easy to look at the cost of regular home repairs as a burden that might be able to be avoided. However, it is important to look at the value that you are placing in your home by performing the regular costs of upholding a well-built and maintained home.

A study out of the University of Connecticut and Syracuse University suggests that home maintenance can actually increase a home’s value by about 1% each year. Instead of viewing the routine tasks around a home as “chores,” these tasks should be looked at as a money maker. When you sell your home, you will reap their rewards.

Dr. John P. Harding, Professor of Finance and Real Estate at the University of Connecticut’s School of Business and an author of the study said, “It’s like going to the gym. You have to put in the effort to see the results. People and houses are somewhat similar – the older they are, the more work is needed.”

Some years what needs to be down may be more expensive than others, but it is the overall strategy to keep a “fit” home that should be the ultimate goal.

Proactive Maintenance Strategies

Budgeting for home repairs each year will prevent them from seeming like a burden each year. Knowing there will be a certain amount of money going to home repairs and upkeep makes them a regular part of your annual routine. They won’t be a source of financial devastation they can be for many families.

Other things to keep in mind to take the burden out of home maintenance include:

Play offense, not defense. Being proactive is vital in preventing a small problem becoming a mountain of problems. By having a regular inspections and creating a maintenance schedule, you are in control, for the most part, of home expenses, instead of the other way around.

Focus on a room a year. If you home is generally in good order, you may be at a loss of where to start. By targeting a room each year, you can inspect each and every item in that particular room and know where improvements can be made. This prevents an overwhelmed feeling with you looking at your entire house, scratching you head of where to start.

Keep track. Maintain a notebook or computer file to keep track of all of the maintenance and upgrades you perform is important. Also, either keep a physical file of paper receipts or a file on your computer where can put your scanned receipts. This helps you keep track of what you have done and also helps you prove to a potential buyer exactly what you have done to the home. It also shows you are a conscientious homeowner who has paid attention to the details of your home.

Home maintenance is an important task that should not be overlooked. Not only does it maintain a nice home while you live there, it also helps increase your home’s value when you are ready to sell.

For more on home maintenance visit Bob Vila's home maintenance checklist here!

Putting Your Home On the Market – Now’s Not a Bad Time

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The holidays are a great time to hang out with family, spend time with loved ones and celebrate. But believe it or not, there are many buyers out there that also use the time to shop for their dream home. And those buyers are often the most serious.

We have been getting a lot of homeowners these days that are telling us they want to wait until January to list their home. Why? Mainly they feel that not too many buyers would be out there interested right now. But also because they don’t realize there will be far more competition in the coming months.

Sellers Will See a Lot of Competition in the Months Ahead

If you are a homeowner that is considering selling your home, keep in mind that in just a matter of a few short weeks a LOT more homes will be available on the market. Do you want to be competing with all the other listings? Or would you rather be situated in a marketplace where buyers are eager to buy and are wiling to engage in multiple offers if necessary? The benefit to you is obviously the ability to get top dollar for your home. There also might be some tax advantages to selling a home – something to check with your CPA about.

Pocket Listings During Off Seasons Allow Buyers a Unique Advantage

Buyers also should consider continuing their home search during the holidays. We have a large number of pocket listings that are not showing up on the Internet and are not on the MLS just yet. In fact, 35% of all listing inventory consists of pocket listings, something that most home buyers do not even realize since they largely conduct their home search online for several months prior to contacting a real estate agent. If you want to gain an advantage over other buyers, contact us and we can connect you with the perfect home.
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Either way, we are sitting at the helm of a very promising market. And at the end of the day, you want to get done what you need done – so for sellers, you need your homes sold and for buyers, you need to find your dream house.

With average days on market down, great offers coming in and an overall environment of fewer competing listings – it’s a great time to sell. And with low interest rates, tax advantages and other great home buying incentive programs out there – now could not be a better time to buy. Call us today!