Six Things New Homeowners Waste Money On

OK, we’ve said it time and again, but it bears repeating: Buying a home is a very big expense—and once you’ve kicked off all that spending, it’s easy to find yourself caught up in rampant lifestyle inflation. After all, you’ve got an enormous, shiny new house just waiting to be filled with all sorts of nice stuff, right?

Well, take some quick advice: Don’t keep spending.

Homeownership comes with its fair share of unique costs—property taxes and urgent repairs and energy bills, oh my. There’s no need to add to their cost by shelling out for unnecessary expenses. Here are six major cash outlays that buyers can avoid.

Too much house

This one requires some thought before you actually nail the deal: How much house do you really need? Just because you’re pre-approved for a hefty purchase price doesn’t mean you should go as big as you can.

“The house that you can afford with the money you’re lent can make the budget go out of whack,” says Andrew Gipner, a financial adviser at Longview Financial Advisors in Huntsville, AL.

Not sure where to trim? Consider having less closet space, buying fewer bedrooms, or—especially—eliminating a formal dining room.

“You don’t use the dining room nearly as often as you think,” says Noelle Hans-Daniels, a Sotheby’s Realtor® in Indianapolis. “It’s kind of a wasted space.”

Fixing up your outdoor space ASAP

Once you close on your home and move in, you might be itching to host your first late-season barbecue. Or maybe you’ve been dreaming about a koi pond, like, forever. But hold on: Updating your outdoor space shouldn’t be your first priority, especially if you’re tight on cash. Unlike couches and beds, which are essential to a functioning house, landscaping and decor can be put on pause.

That goes double if you’re building new: According to Hans-Daniels, building your backyard at the same time as your home can cost “a lot more than if you did it after the fact.”

So exercise some caution before committing: Try pricing out your plans with a landscape contractor, and consider rolling them out in phases.

Old, outdated insurance

Still using the same company that offered you renters insurance seven years ago? It might be time for a change. Shop around.

“You may stay with the same company, but you may find something that’s a little better price for the same thing,” Gipner says. “Sometimes, people may not want to shop around or may be married to a particular company.”

Just because the same company had a good deal on auto or renters insurance doesn’t mean it’s the best fit to protect your home. Go through all your options with a fine-toothed comb, looking for a deal that won’t crush you financially but also leaves your house and its belongings secure.

After all, now it’s not just your stuff—it’s your roof, yard, and foundation you have to protect, too.

Space-filling stuff

If you’re moving from an apartment, chances are good you’re astounded by how much space you have. There’s another bedroom and a dining room and … yet another bedroom!

Don’t feel like you have to fill it all at once. Give yourself—and your home—time for personality to emerge.

“A lot of people will go out and say, ‘Oh my gosh, I’ve got to fill this space and buy stuff,’” Gipner says. “I’m not against possessions, but the way some people do it can be seriously detrimental to their finances.”

Instead of immediately stuffing the TV room with a generic, new couch and coffee table, wait it out. See what you really need and what you really like. In the meantime, stick the money you save into a renovation fund.

Extended warranties

Many homes don’t come with appliances installed, so first-time homeowners might find themselves making large purchases (like a dishwasher or refrigerator).

Please, Mr. Postman

Send me news, tips, and promos from realtor.com® and Move.

Here’s a tip: You don’t need the extended warranty.

“I’m against them,” Gipner says. “What are the chances everything you own is going to break or not work anymore?”

Yes, something might break within the relatively slim service window—but the money you’ll spend fixing one thing will be far less than the extended warranties on all the things. Your average warranty costs about $123 for major appliances, according to Consumer Reports, and a single repair costs not much more (and might not even be covered). Just risk it—you’ll come out ahead in the long run.

Yard maintenance

Having your own yard is definitely exciting, and while it’s important to keep it healthy and watered, you don’t need to go overboard. Resist the pressure to hire additional help for your yard—even if you’ve lucked into an HOA that covers it.

“You can still be part of an HOA and cut your own grass,” Gipner says. “You don’t have to pay someone an exorbitant amount of money to come out and cut your grass.”

Don’t be tempted by the sales pitches you’ll inevitably receive after your purchase goes through. A gorgeous lawn is achievable—and it can be done all on your own. Really.

Article by: Jamie Wiebe at Realtor.com

Tips on Spotting a Bad HOA

What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they’ve gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs.

Look at the Community as a Whole

Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities:

• Are the fences rusting?
• Are the building signs in disrepair?
• Does the asphalt look like gravel?
• Are the pool and other amenities clean and in good working order?
• What is the age and condition of the roofs?
• Do the buildings need to be painted?
• Are there staircases and balconies in poor shape that the HOA is responsible for maintaining?
• When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community?
• Are there problems with siding?
• Are there grading issues causing flooding?
• What is the condition of the gutters, fascia, and other fixtures?

Look at the Reserve Study

First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA.

• What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk.
• How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving?
• Has the HOA been following the reserve study and making capital improvements?
• How much money can you foresee being needed compared to what the HOA has saved?

Proactively Ask Questions

Encourage your buyer to call and ask the HOA or HOA management company questions. You may need to make it a condition of the purchase contract that the seller will provide the answers if the HOA management company won’t answer you or your buyer. Keep these questions in mind:

• Have there been any special assessments before? Get the details and ask if there is discussion about having another one.
• Have there been any lawsuits or are any expected? Check court records.
• How many insurance claims has the HOA had?
• If roofs are an HOA responsibility, are there plans to transfer the burden to the owner? How many roof repairs have there been in the last couple years?
• Are there plans to change the HOA’s covenants, conditions, and restrictions?
• Have there been any repairs from extensive water or termite damage in the last couple years?

Your buyer must review the HOA’s covenants, rules, meeting minutes, violation policy, collection policy, and other aspects. Make your buyers a checklist to help them do their due diligence. Help them become an educated buyer on HOA living.

Ignorance isn’t bliss for your clients — or you — when it comes to HOAs. Agents and sellers could potentially avoid lawsuits by making buyers aware of all issues before they close on a property in an HOA. Remember, approximately 70 percent of HOAs are underfunded and in poor condition due to lack of maintenance. These are not HOAs “protecting our property values.”

This problem is not going away by keeping our eyes closed. The first step in improving HOAs is having real estate professionals who will educate buyers on how an HOA should operate. Buyers need to be involved and concerned with the HOA business that they are becoming a part of before closing — and they need to stay involved after closing.

Source: Realtor Mag

Four-Bedroom Home in Bellalago Coming Soon

We’ve got a new four-bedroom home coming to the market which you may want to keep an eye out for.

The home is located in the well-known, Mediterranean style community called Bellalago, just 20 minutes South of Disney. Bellalago is a peaceful, lakefront, gated community with two resort-inspired pools.

The home is one story and includes a kitchen which opens to the living room, large enclosed patio and sits a large corner lot. It also features granite countertops and brand new stainless steel appliances, oh and a stone-paved driveway.

This home will be offered at just under 200K.

Take a look at the photos yourself…

Four Bedroom Home in Winter Garden Sold Today

Today a client of Daniel Young’s closed on a four bedroom, two-and-half bathroom home in Winter Garden.

Located at 1713 Portcastle Cir, the two-story, 1,606 square foot house is situated on a large lot with a massive fenced-in backyard. The style of the home is open-concept and has a kitchen which opens up to the main living area. If you head upstairs, there is a loft and four bedrooms, including the master. The master suite has a private master bath with garden tub and dual sinks, perfect for couples.

As added perks, the home was sold to its new owner with a newly replaced A/C unit, freshly painted interior, and active alarm system with security lighting in the backyard.

This home will be brought to the rental market in the next month. If you are interested, please fill out the contact form below.

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Living In Your Home While it’s Listed For Sale

You want your home to sell for the highest price — but you still have to live there.
Your home has always been a sanctuary, your personal space. But when that “For Sale” sign goes out on the front lawn, you need to be prepared to bare all. Eager real estate agents will be waiting in line to stampede through your front door, and strangers will comb through every nook and cranny during open houses.

All of this will happen while you are trying to continue with your life as normally as possible. Prepare for your new, hectic life living in a listed home with the following tips.

Start packing now

As of this moment, you probably have fewer than 120 days left in your house. Keep in mind that over the next few months, you’re not going to need many of the space-gobbling items currently filling your rooms and closets. So if it’s May and you won’t need those winter clothes for the next few months, pack them up!

The secret to getting a house clutter-free is to remove the things you can live without while your home is on the market.

Store it, sell it, chuck it, or donate it

While you’re packing, work on decluttering and throwing away or donating things you no longer need. It won’t just give you a head start on moving — buyers appreciate extra space when searching for homes.

As obvious as it seems, a buyer will naturally be drawn to and pay more for a home that feels as if it has extra space than for one loaded to the ceiling with stuff.

Get squeaky clean

Lacking motivation to clean every cobweb off the ceiling fan or scrub the floor? A clean house can gain you $5,000 to $10,000 on your home sale. Aim for five-star-hotel perfection when cleaning sinks, glass, mirrors, windows, and toilets.

Maintain your privacy and safety

People will look through your drawers, closets, and medicine cabinets at open houses or showings. Make sure your listing agent insists that other agents accompany their prospective buyers during open houses. Don’t keep anything in the house you don’t want anyone else to see, and protect your valuables:

Store mail, personal documents, and valuables in safes
Lock up or remove all prescription medicine bottles
Enable passwords on your in-home computers and laptops
Double-check bedside tables and other areas where you commonly place anything of monetary or sentimental value
When in doubt, lock it up
Send your pets on a holiday

When putting a house up for sale and taking the pictures for the online listing, prearrange with friends and family to take your pets for the day. Come opening day, when your home hits the market and the open houses and showings begin, plan on boarding your pets elsewhere. And don’t forget to stash away the pet dishes, toys, and beds too.

Prep like a pro

Your real estate agent is busy and will probably show up to open houses around the same time as buyers. Prep your home yourself by turning on all the lights, playing some light music, opening doors or windows if the weather permits, and lighting the fireplace if it’s cold outside.

And don’t forget to make sure the temperature is comfortable for all visitors — you don’t want anything to turn a potential buyer off.

Involve your kids in the process

Make the prep process a game and challenge your kids to a contest of who can clean up their toys and belongings fastest. You might be surprised at how cooperative the kids are and how much fun they have when you yell “Showtime!”

Get it ready and get out

Once you have gone through your open-house checklist, head out! You want potential buyers to feel that this is their beautiful house. Every real estate agent will tell you that the worst thing a seller can do is hover around prospective buyers and their agents. The agents especially need the ability to speak openly and candidly to both your agent and the buyers.

You can do it

Here’s a positive tip: If you truly dress up your house for sale, it’ll sell faster, and you’ll be moving sooner. And since your things are already packed, well-organized, and edited down to the essentials, moving will be a snap. You may even decide you like living a little more like a minimalist and be inspired to keep things organized at your new place.

Article from: Trulia Blog

Investors: Top 5 Housing Markets Around the Globe

This morning, CNN Money (London), reported the top five housing markets for investors around the globe, and guess who’s number one? That’s right, us…the U.S. of A.

A group of real estate advisors, by the name of Savills, analyzed economic and demographic trends to predict price increases over the next five years.

A combination of population growth, rising wealth and limited inventory are the essentials proving the following countries to best solid investments.

1. United States

The U.S. housing market has enjoyed three years of growth as the economic recovery gathers pace. Prices are up about 30% from their 2009 trough.

As for who’s buying, Canadians are the top foreign purchasers of U.S. property by sales, followed by buyers from Mexico, India and the U.K.

2. United Arab Emirates 

Wealth creation and positive demographics underpin the scope for solid returns in Middle East property. The Gulf economy has clocked annual growth of at least 4% for the past three years.

3. Singapore 

Measures to cool the overheated Asian market, coupled with a general slowing of the economy, has slugged sales and reduced prices in Singapore’s prime residential market.

4. United Kingdom 

Two European countries round out the top 5 — Britain and Spain. The dynamics differ but both economies are strengthening and benefit from low interest rates.

5. Spain 

Teetering on the brink of collapse in 2012, the Spanish economy has turned its fortunes around to become one of Europe’s standout performers this year. Real estate prices in the country are still more than 25% below their 2008 peaks, but the market has stabilized.

Source: CNN Money

What the Average Rent Price Gets You Across 10 U.S. Cities

I came across an interesting article titled “What $1,500 In Rent Gets You Across 10 U.S. Cities” on Zumper, one of the best rental websites you’ll use today. Zumper is a user-friendly rental platform where customers can conveniently apply for an apartment with the click of a button.

Take a look at how rental markets vary across the U.S.:

1. New York, NY- Tiny One Bedroom Apartment With Awkward Fridge

View Listing: https://www.zumper.com/apartments-for-rent/9764460/1-bedroom-central-harlem-new-york-ny

Simple and for the minimalist, this one bedroom apartment in New York comes with new hardwood floors and even some counter space in the eat-in kitchen. The space is pretty tight, which is probably why the refrigerator is so awkwardly placed, but at least the bedroom and living room are separate.

 2. Los Angeles, CA- Newly Renovated One Bedroom Apartment

View Listing: https://www.zumper.com/apartments-for-rent/8457213/1-bedroom-congress-north-los-angeles-ca

Recently renovated, this one bedroom apartment in Los Angeles has a brand new tiled bathroom, hardwood floors, and kitchen appliances.

3. Seattle, WA- Two Bedroom Apartment With Private Deck

View Listing: https://www.zumper.com/apartments-for-rent/8303902/2-bedroom-high-point-seattle-wa

Just 10 minutes away from downtown and a mile away from Alki Beach, this two bedroom apartment in Seattle is strategically located for all your needs. Besides the hardwood in the kitchen, there is soft brown carpeting throughout so your feet can stay warm and toasty. The rooms are comfortably sized and the living room leads out to a private terrace.

4. San Francisco, CA- Dinky Studio

View Listing: https://www.zumper.com/apartments-for-rent/9757355/studio-tenderloin-san-francisco-ca

Unsurprisingly, we could not find an apartment in San Francisco for $1,500 so we had to bump up the price by almost $200 for this tiny studio in the Tenderloin neighborhood. Some amenities here are a full bathroom, some closet space, and a coat of new paint. However, this apartment doesn’t offer any included utilities or the potential for you to have a “room-warming” party.

5. Portland, OR- Two Bedroom Townhouse With Shared Patio

View Listing: https://www.zumper.com/apartments-for-rent/9761344/2-bedroom-homestead-portland-or

Clean and quaint, this two bedroom townhouse apartment in Portland has 875 square feet of space and plenty of windows throughout to let in generous amounts of natural light. Some amenities here include on-site laundry and a cute shared patio.

6. Washington D.C.- Two Bedroom Apartment Over 1,000 Square Feet

View Listing: https://www.zumper.com/apartment-buildings/54385/clermont-apartments-brookland-washington-dc

With plenty of space, this two bedroom apartment in Washington D.C. is particularly comfortable. You can enjoy the luxury of a free reserved parking spot, a fully equipped kitchen, and a private balcony. Conveniently located, this home is only a few minutes away from restaurants and shopping.

7. Chicago, IL- Three Bedroom Apartment With 9 Foot Ceilings

View Listing: https://www.zumper.com/apartments-for-rent/6937698/3-bedroom-grand-boulevard-chicago-il

After a $25,000 remodel, this big and bright apartment in Chicago has 9 foot ceilings and dark hardwood floors. The kitchen comes with new, top of the line stainless steel appliances and granite countertops. There is on-site laundry, fresh landscaping, and it’s located only a few minutes from The Loop.

8. Austin, TX- Three Bedroom Apartment With New Recessed Lighting

View Listing: https://www.zumper.com/apartments-for-rent/9540900/3-bedroom-riverside-austin-tx

With 1,400 square feet, this huge three bedroom apartment in Austin has a beautiful, lustrous glow to it, probably from the newly added recessed lighting. It has shiny hardwood floors, modern appliances, and soft accent walls. You can hang out in the private fenced yard or by the shared pool outside.

 9. Philadelphia, PA- Four Bedroom Apartment With Fireplace

View Listing: https://www.zumper.com/apartments-for-rent/9609861/4-bedroom-north-philadelphia-west-philadelphia-pa

Not only does this enormous four bedroom apartment have the luxury of a sparkling bathroom for every room, it also has glistening hardwood floors, a vibrant brick wall, and a wood burning fireplace in the living room.

10. Memphis, TN- Four Bedroom House With 2,646 Square Feet

View Listing: https://www.zumper.com/apartments-for-rent/8114871/4-bedroom-memphis-tn

With over 2,600 square feet, this massive four bedroom house in Memphis has everything you could ever want in a home. The huge kitchen has a double oven and fridge, the living room is spacious with a large fireplace in the middle, and each bathroom has a shower, bathtub, and two sinks. Outside there is a fenced yard with a wooden deck and private two car parking.

Source: Zumper, written by Crystal Chen

Celebrating Realtors® this Labor Day

Labor Day is an annual tribute to the achievements and contributions of American workers. Labor Day became a federal holiday in 1894 and was first celebrated in 1882 by the Central Labor Union. REALTORS® are hardworking individuals with diverse backgrounds, and Labor Day is a time to recognize their successes. (via NAR Research)

The Lake Nona Life Project for a Healthier Future

The Lake Nona Community is gearing up to kick off a major health study called the Lake Nona Life Project, which will include analyses on participants exercise, healthy eating and sleep. The study will include thousands of its residents and will hopefully obtain results to potentially save lives around the globe. Those who live and work in Lake Nona are eligible to participate.

Gloria Caulfield, vice president of strategic alliance and executive director for the Lake Nona Institute, said “there’s an overall vision for the Lake Nona community  that’s been built around health and wellness, sustainability and education.” Gloria stated the community’s vision is what makes it the perfect place for the unique health study.

“It’s an opportunity to collect data and insights over multiple years,” said Caulfield. “A lot of times when we look at health data or population data, it’s a slice. It’s kind of a snapshot in time, but that in and of itself is not helpful. What’s helpful is looking at projects like this. This is the opportunity to look at data longitudinally which means we will be looking hopefully at health and wellness of this population for multiple years. In a week, we are not going to have all the answers. In a year, we’re not going to have all the answers, but we are going to look back several years from now and say. “This all started with this community and these people and we have this body of knowledge.'”

Participants in the Lake Nona Life Project will be tracked for decades to see how big of a different healthy lifestyle decisions can make in our lives. The study will be conducted by the Lake Nona Institute, Lake Nona Medical City researchers and partners and even has founding sponsorship from Johnson & Johnson Health & Wellness Solutions, Inc.

Click here for video

Source: News 6 WKMG, Tara Evans

Two Bedroom House Built Around Sixteen-Car Mega Garage

Not sure if it’s a house with a massive garage, or if it’s a massive garage with a house. What I do know is that this is the kind of stuff men dream of.

Located in Bellevue, Washington, the monster-garage mansion measures to 6,750 square feet and includes two bedrooms, two-and-a-half bathrooms,fitness center, workshop and office. Oh and that’s 6,750 square feet HEATED…meaning the garage space is habitable. It’s an actual part of the living space.

What’s the expected going price? A cool $4 million.

Here gentlemen, let the envy sink in…