13 Simple Ways to Save More Money

For many buyers, one of the most difficult things about buying a new home is saving enough money for a down payment. Traditionally, buyers put down 20% on this big investment, but now there are many financing options available that only require 10%, 5% or in some cases a 0% down payment. To prepare, really think about how much home you can comfortably afford. Discuss financial matters with your mortgage officer and set a goal for how much money you'd like to put down on your new home.

It's wise, financially speaking, to put as much money down as possible on your new home, but we all understand how difficult it can be to put money aside to prepare for that down payment or pay extra on your existing mortgage (great idea to build equity!).

Our focus in this week's blog is sharing some realistic, effective savings tips for our friends and clients saving for a down payment. Building up savings is always a good idea, but it's especially crucial when your goal is to buy a home. However, we know it can be difficult to set aside that extra money in your family's budget. With some help from these tips, it can be done!

Read on for our favorite ways to cut down on spending, and before you know it, you'll be ready for that new home!

• When shopping, compare prices and ask your favorite stores to price match when you find a good deal elsewhere.
• Make a list when you go shopping and stick to it.
• Put loose change in a jar, and at the end of the month put all the money in your savings account -- it will add up quickly.
• If you get a tax return this spring, put at least half of it in savings. If possible, just stow away 100% in the bank!
• Aim for short-term savings, like $20 a week for three months and place all that money in savings.
• Have a set amount of money automatically put in your savings account each time you get a paycheck. 
• Visit places like Starbucks sparingly, as most specialty drinks are about $5, and bring your lunch to work (going out can be $10-$15 each day).
• When shopping for clothes or shoes, never pay full price. Wait for them to go on sale and put that extra money in savings.
• Put away your credit cards for awhile. Try to cut back to only the essentials and stash the extra money in savings toward your down payment.
• Practice the 3-day rule: If you find something you want, put off buying it for 3 days, and more often than not, the urge to buy will pass and you can keep that extra money.
• Have a yard sale after spring cleaning this year and put all profits right in savings.
• Cancel any unused memberships -- Gym? Country club? Fruit of the month? If you don't use it, get rid of it.
• Call your cable, trash, cell phone, and insurance companies and tell them you've found better rates elsewhere. Chances, are they will reduce your costs by 10-15% because they want to keep your business.

What else are you doing to save money for a down payment this year? We know we have many friends and clients who are very financially savvy, so we'd love to hear your advice! 

Have a great rest of the week, and enjoy your Labor Day weekend!

Top 5 Benefits of a Pre-Listing Home Inspection

One of the most stressful steps in the real estate transaction – for both buyers and sellers – is the home inspection. We have seen too many deals fall apart because the home inspection reveals need for repairs about which parties just can’t agree. It’s frustrating for everyone, and in many cases this situation is preventable, so we thought we’d share a blog about how sellers can be proactive and get a pre-listing inspection. This blog will outline some benefits of having a licensed inspection professional go through the home before it goes on the market. This is not done very often, but in our market, we’re seeing it more specifically on homes that have been gutted and renovated by investors, and many think it should be more widely utilized.

We want to appeal to sellers especially in this article because this task is ultimately their responsibility. Sellers, when you have your home pre-inspected it shows buyers you’re serious about selling and fair in your expectations for the sale. It also helps potential buyers feel assured that “what they see is what they get” as it relates to their new home.  

In our experience, sellers have been hesitant about the idea of having the pre-inspection, and they are also concerned about the added cost and whether it will really benefit them in the sale of their home. In short, my answer to that is a resounding YES, this extra effort will help tremendously in the sale because of a few important advantages. Let’s go over our top five benefits of a pre-listing home inspection.

11.  It removes surprises from the inspection process. This is huge if you’ve ever been through the inspection process. Both buyers and sellers just wait to find out what defects and issues might be hiding within the house. Sometime there are only minor repairs to take care of, but other times major components of the home like the roof, foundation, or plumbing have problems the owner was unaware of. If the home has been pre-inspected, any issues can be outlined and shared up-front which will lower stress on both sides.

22. Pre-inspection can speed up the transaction process. Many times, the results presented on the buyer’s inspection can take a great deal of time to plan, get estimates, have work done, and then get re-inspected. Remember, all of this has to be negotiated as well. If the sellers have done a pre-inspection, they can be open and informative with byers and address issues ahead of time and additionally share maintenance tasks that will need to be addressed in the coming years.

33.  Sellers can price home fairly. With information from a pre-inspection, sellers can factor in updates and repairs when they list the home. In addition to considering current market values, sellers have to be aware of what certain projects and repairs will cost on the buyers’ end. At this point, sellers can choose to lower the asking price to accommodate the tasks buyers will have to invest in, or they can have repairs and updates handled and roll that cost into the asking price. Our recommendation is to go over all of these decisions with your ERA First Advantage agent. It is best to handle specifics on a case by case basis depending on the condition of the home.

44.  Pre-inspection can give sellers a boost in negotiations. Having pre-inspection information and repairs completed really helps sellers justify their asking price and “stick to their guns” if needed. When data is in-hand, it provides the proof sellers need to get the most value out of the sale. When buyers sense potential issues or problems with the home, they are much more likely to offer a substantially lower price for the home. They’re just giving themselves a cushion, but if issues are well-documented and especially if they’ve been repaired, buyers will be more inclined to agree to a price closer to asking.

54.  Removes a major buyer road block. Agents and investors discuss “road blocks” all the time. These are the thoughts buyers have throughout the process that prevent them from touring a home, making an offer, backing out for whatever reason, and ultimately making it to the closing table. A major road block for buyers is the unknown issues that are sure to pop up during the home inspection. While it is recommended that all buyers still get their own inspection done after the home is under contract, a pre-inspected home becomes much more attractive and realistic because a major list “what if” situations has been revealed. When buyers can see exactly what they’re buying, whether the home is brand new, renovated, or needs some work, they will feel much more comfortable and confident going ahead with the transaction.

We hope these points have helped shown you how a pre-inspection can pave the way for a smoother transaction. Sellers, make your property stand out among the others by taking this extra step and providing transparency and helpful information. We promise it will lead to a quicker sale. Like we mentioned, investors have been a bit ahead of the rest of the market because they already have their flip properties pre-inspected in most cases, and if you know an investor, try talking to him or her to get some insight related to your specific market. Your ERA First Advantage real estate agents are also a fantastic resource because they can provide several reliable inspectors. 

As always, we hope this information has been helpful and relevant. Feel free to reach out with questions anytime!

Early Fall Home Maintenance -- Already??

While it definitely does not feel like it outside today, we are quickly approaching the upcoming fall season. We typically have a fairly warm (okay, hot) September and finally see temperatures cool off near the end of the month. There is still plenty of time to work and play outside, so we are not wishing away the lingering summer days! However, with the kids back in school and schedules calendars filling quickly, we know how fast time will go, and before we know it October will be upon us. We thought this week would be the perfect time to give you our September home maintenance guide so you can work in these projects as time allows.

Early Fall Home Maintenance

1. Add Weather Stripping

Newer homes may not need this, but older homes often let air in & out which can hike up utility billd quite quickly. Remove and replace weather stripping around your doors and windows. Pay attention to where you feel drafts coming in through small gaps around the house.

2. Inspect Your Roof

This task is best left to a professional, but if you choose to do it yourself, please please be very careful! Check for damaged shingles, worn seals & gutters that have pulled away from the roof line. Get these issues resolved before we have cold weather that involves freezing and thawing, which can be hard on a roof.

3. Spruce Up Living Spaces

Cooling temperatures and more homework means your family will likely be spending more time inside. Be sure your most-used living spaces are cozy, clean and have plenty of seating for reading, watching movies, or studying.

4. Transition Outdoor Plants

Your patio furniture and grills can probably wait to be winterized until later in the fall because we will still have nice weather until November! For now, begin transitioning your potted plants to late-summer blooms or early fall flowers like mums and be sure to read up on how to care for your plants in the new season.

5. Do You Use Firewood?

If you have a fire pit, host bonfires, or use a wood-burning stove or fireplace, now is the time to order firewood. Don't store it directly against your home because it can become a hotel for bugs and other critters. Find a spot in your yard where it will be sheltered from rain and a safe distance from your house.

6. Check Your Foundation

Walk the perimeter of your home and examine your foundation. Are there any gaps or cracks? Like the roof, winter is hard on foundations because we can get into a pattern of freezing and thawing, plus those heavy rains and eventually snow. Let's take care of problems before they have a chance to get worse.

7. Complete Annual Fireplace Maintenance

Now is the perfect time to have your fireplace and chimney inspected if you have one. Again, this task is best left to a professional because he or she will know what to look for. It's always a good idea to be sure your fireplace is in working order before cool weather arrives.

8. Inspect Furnace

It could get chilly at times in September, so we want to know our heating systems are good to go. If you don't know what to look for, ask a friend or relative or call one of our local companies and just ask a few questions or have them check it out.

9. Continue Whole-House Cleaning

It's constant, isn't it? We know that everyone cleans as much as time allows all.the.time, but as we spend more time inside, we tend to notice tasks around the house that may have been overlooked during the summer. September is a fabulous time to declutter and work on organization because there's more to keep track of with activities and assignments. It's also a great month to host a yard sale because weather is favorable for people to get out and about. 

10. Start Transitioning Home Decor

This task might be the most fun. You don't have to get out your scarecrows and pumpkins yet, but you can begin putting out your heavier throw blankets, change pillow shams to more autumnal colors and put some quilts on your beds. These are just a few cozy touches to enjoy in case we have a cooler day.

What else will you be working on at home over the next month or two? Share your tips with us! As always, we would love to hear from you! 

Ready to Buy a New Home? Here's what NOT to do.

Hello & Happy Thursday! We hope you've had another great week and have gotten out a bit to enjoy the milder weather the past couple days! This week, we are going to focus on a topic that is very important when working through the home buying adventure. We want to share a few things you should avoid once you have gone through the pre-approval process and are ready to buy your new home. Changes in your financial or employment status can really affect your mortgage terms, and lenders frown upon (or worse!) borrowers who go out and incur new debt during the transaction time leading up to closing.

 We want to make it easy for you! Just follow this "Don't" guide and be frugal for the time period you're buying your new home. We promise it will be worth it when you close on that dream home!

 1. Don’t apply for new credit cards: It may seem like a great idea to apply for a credit card at a home improvement store or a furniture store when you are about to become a homeowner, but applying for credit can lower your credit score. Not only will you lose a few points because of a credit inquiry, but if you are approved for new credit, a lender might worry that you will spend up to your new credit limit and then default on your loan. Wait to make those furniture and home improvement purchases until after closing on your new home.

2. Don’t close any credit accounts: You may be feeling that this is a good time to get your financial state in order by closing unused credit accounts or transferring your debt to a new credit card with lower interest rates. While that’s a smart move financially overall, it’s a bad one for your credit score because you lose points when you have a higher usage of debt compared to your limit on one credit card. Wait until your closing is complete before you make these changes.

 3. Don’t move your money around: Your lender will need the most recent bank statements before you go to closing, so if you have any unusual deposits you will need to provide complete documentation of where the money came from. If possible, it’s best to move the cash you will need for your home purchase into one account before you apply for a mortgage.

4. Don’t increase your debts: In addition to your credit score, your debt-to-income ratio is extremely important in a loan approval. If you take on more debt, you could be in danger of going above the acceptable debt-to-income ratio. Again, wait until after you've closed on the house.

 5. Don’t skip a payment or make a late payment: One of the most important elements of your credit score is your history of on-time, in-full payments, so don’t get so caught up in your move that you forget to keep up with paying basic bills. Keep a list of payment dates for all your bills and check them off as they're paid!

6. Don’t buy a car: You may be feeling that a new car would be a nice addition to the driveway of your new home. Resist that feeling!! Even if you can easily afford payments on a new car, the depletion of your savings or the addition of a new car loan could derail your mortgage application. Get that new car once you actually have the new driveway.

 7. Don’t change jobs if you can help it: While a job change could mean a raise or a path to a better future, it could also delay your transaction. Your lender needs to verify employment and will need pay stubs to prove your new income before your loan can go to settlement. If at all possible, stay put throughout the transaction process and make the switch after you've closed and settled in. Promotions or moves within your company don't apply though -- if you get promoted or take on a new role within your company, we will be the first to offer our congratulations!

8. Don’t spend your savings: You’ll need cash on hand for earnest money, inspection costs, and for your down payment and closing costs. Your lender may even verify your cash reserves one more time just before closing, so make sure the funds stay in place. It's best to just be as frugal as possible throughout the time you're in the buying process. It will give you peace of mind and ensure the process runs as smoothly as possible.

We hope this information helps as you begin navigating your home buying process. Remember to ask your ERA First Advantage agent and lender lots of questions! We are all here to help and will be happy to do whatever we can to give you the real estate experience.

A New School Year is Here!

In less than a week, a new school year will be starting throughout the Tri-State. How is it possible that school is starting again? Is it just us, or has this summer absolutely flown by? We hope you've been able to take advantage of the long, warm days and gotten out as a family to enjoy some summertime activities. We know summer isn't technically over, but after next week, we know your families' schedules will be a lot more hectic!

It's always exciting when a new school year begins in the Tri-State. We are so fortunate to have really good school systems, and early to mid-August signals the start of a new grade for our eager kids, along with new friends, teachers, sports, lessons, and activities. However, the start to the school year can also be very stressful and difficult for many.

Whether your child is moving on to a middle or high school (or especially college!), or your family has moved to a new school district, there is an anxiety about beginning in a new place and feeling a bit uncertain in an unfamiliar place. We've all been there, right?

In this week's blog, we'd like to share a few ideas to help your family start the school year on a strong note. We think the trick is to stay organized and prepared, whether you have a little one starting preschool or three headed off to elementary, middle & high school.

1. Get as many school supplies as possible before school starts. We know parents don't get school supply lists beyond elementary school, but even older students can make sure they're armed with the basics on the first day. At least have a pen, pencil, notebook, and folder for handouts. For those in elementary school, have fun perusing the aisles buying crayons, glue, etc. for a few more years!

2. Pick out clothes and prepare lunches the night before. It will be hard to wake up for the first few weeks, especially if your family has been fortunate enough to enjoy sleeping in a bit throughout the summer. Everyone will be a little nervous and possibly edgy those first few days, so make things easier on yourself and pick out everyone's outfits and pack lunch boxes the night before when you're not in a hurry and more awake.

3. If you're starting in a new school, go find your classroom ahead of time. We hope you've had a chance to do this already with new student enrollment, because it really helps alleviate that helpless feeling when you go somewhere new and don't know your way around yet. This is especially important if you've moved to a new school district over the summer and aren't familiar with your new school. Parents with little ones might even be allowed to walk their kids to their classroom the first day -- just check with your school.

4. Stay positive and be open-minded. Everyone has such high hopes on the first day of school, but the truth is, it's often overwhelming and exhausting by the end of the day. Know that you will find your groove and feel more comfortable with everything as the days go by. It will just be an adjustment, like any new schedule or environment.

5. Don't forget to have fun. After the first week or two of school, do something fun as a family. We will still have warm weather in the Tri-State for at least another month or two, so get out and go to the zoo or walk by the river, treat yourselves to ice cream, or get out of town (if your schedule allows) for the weekend. Everyone has been under more stress and pressure, so it's very important to keep a little bit of that relaxed summer vibe when you can!

What does your family do to ease the transition back to school? We would love to hear from you, so please share with us!

We hope everyone has a safe, happy start to the school year! We can't wait to see what our local kids accomplish and learn this year!