Real Estate Information Archive

Let’s face it - relocating is overwhelming no matter how well you prepare. There are what seem like a million little pieces that all must fall into place to make a move go smoothly. And even then, it is stressful. You are upending your life; putting everything you own into boxes and bags and making big changes. So, it’s easy to understand how some tasks fall through the cracks and are forgotten. Here are some crucial things that many people forget to do (or don’t even realize need to be done) when moving:

1. Cancel recurring charges for local memberships. During the chaos of moving, the last thing you are likely to think about are membership fees for things that may not transfer to your new place of residence, like a gym membership.  And if those fees are automatically charged to your credit or debit card you need to cancel those memberships at least a month before you move so that you don’t continue to get charged even when you’re not there to use them any longer.
    
2. Call your car insurance company. Per the Department of Motor Vehicles, it is vital to check on your car insurance when moving, as states have varying levels of required coverage. In fact, insurance rates can even vary from neighborhood to neighborhood in the same city. So, make sure you call your insurer before you move to see if you need to update or change your coverage at your new address.
   
3. Change your address early. Changing your address is easy using the online form provided by the U.S. Postal Service, but do not wait until the last minute to do it! If you want to be sure that your mail arrives at your new home in a timely manner, complete the form about two weeks before you move. 
    
4. Take care of your finances. During the whirlwind of moving, it is easy to forget the everyday tasks that are a normal part of your routine…like paying bills. It is also easy to lose track of paper bills among all the boxes you’ve packed. Take the time to set up auto pay for things at your new home like mortgage/rent, phone, utilities etc. This can help assure an on-time payment during a hectic time. Designate a spot for mail both in the home you are packing up and in your new home so that paper bills are not lost in the shuffle.
    
5. Change your billing address on credit cards. Don’t get caught by surprise when your billing address does not match the address on your credit card because you forgot to change it when you moved. Some transactions now require that you put in your billing zip code when using your card, so if that has changed, then you need to change it on your credit cards as well. The last thing you want is to deal with a transaction being denied and then finding out it was simply because you had not changed the address on your card.
   

Yes, relocating is stressful. But taking care of these often-overlooked tasks will make it a little bit easier!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals to assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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When you are considering the purchase of a new home, one of the first things to think about is if you will be able to get a mortgage loan. At the start of the home buying process, you will hear terms like “pre-qualification”, “pre-approval”, and “conditional approval”.  If you are not familiar with these terms and their meanings, it can add to the already stressful process of entering the housing market as a buyer.

While all these terms may sound similar, they are not the same. Pre-qualification, pre-approval, and the conditional approval letter share common characteristics, but they occur at different times during your journey to home ownership. Having a clear understanding of what they mean will save some of the confusion, time and energy that goes into finding the right home for your budget and your family.

Let’s take a look at each of these terms:

PRE-QUALIFICATION

Getting pre-qualified for a mortgage loan is the earliest step of the three terms we are looking at. A pre-qualification will give you an estimate of how much you may possibly be able to borrow from a lender. Basically, you will provide information such as your financial history and credit report to your lender. You can do this verbally at this stage as it is not an overly comprehensive process. Your lender will use the information provided and will give you an estimate of the amount you may qualify for. This will allow you to explore the mortgage options available to you.

After your lender has determined the amount you pre-qualify for, you will receive a pre-qualification letter. By sharing this letter with your Realtor, they can use it when making an offer to a seller to give evidence of your commitment to and preparation for buying a home.

Remember, a pre-qualification is not a guarantee for a loan. While it is a great way to determine what types of loans are available to you, it does not mean a loan for the amount of the home you hope to purchase is a sure thing.

PRE-APPROVAL

Getting a pre-approval is a more formal process that requires an in-depth investigation of your finances. This process will take place after you have submitted your mortgage application and documentation will be required.

Your lender will need the following:

• Employment verification (W-2s or 1099s)
• Bank statements
• Retirement and brokerage account statements
• Any other assets
• Current real estate debt or rental statements
• Monthly debt payments (student loans, auto loans)
• Court orders (divorce, child support, alimony, etc.)
• Tax returns

It may feel overwhelming to provide so much personal, financial information, but it is necessary to obtain a pre-approval for a mortgage loan. Like pre-qualification, you will get a pre-approval letter if your application is accepted by your lender. This letter provides the sellers with the information they need to know that you can afford the mortgage payment and you are ready to purchase a home.

When competing for a home with other buyers, a pre-approval letter can be a game changer, making you look like a serious buyer over others who may not have a pre-approval letter yet.

CONDITIONAL APPROVAL

Conditional approval is also known as “up-front underwriting”.  If you choose this option, your lender will review your finances thoroughly in order to provide you with an exact loan approval amount for the specific home on which you are submitting an offer.

What makes a conditional approval letter different from a pre-approval is in the name itself; there will be a few conditions that must be met before closing. For example, purchase agreements, title verifications, home appraisal, and inspections must all be complete and in order. The closing process cannot begin until all the conditions listed in the letter have been met.

Pre-qualification, pre-approval, and the conditional approval letter all provide validation to both your lender and the seller that you are a serious buyer that can afford the home.

They each serve the same purpose, but you will encounter them in different circumstances within the home buying process. Understanding the nuances and differences now will make you a better-informed buyer and will make the home buying process less stressful for you!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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Investing in real estate is a time-tested way to successfully build wealth.  

While there are many ways to invest your savings, investing in real estate is unique in that it offers cash-flow, liquidity, profitability, and tax and diversification benefits those other investments do not.  If you’ve been thinking about how to build wealth for your retirement, you would be smart to consider investing in real estate.

There are four primary ways to make money in real estate:

1. Appreciation. When a property increases in value, you have real estate appreciation. Sometimes is happens due to changes in the market and other times it may be due to upgrades made on the property.
    
2. Cash flow income (rent). Cash flow income is a nice perk of real estate investment that you do not have in other types of investments.  It is generated when you purchase a home or apartment building or an office building and rent them out.
    
3. Real Estate Income.  This is income earned by people who earn commissions through real estate transactions or buy property managers who oversee the operations of rental properties.
    
4. Ancillary Real Estate Income. This can be a huge source of profit.  Things like application fees, vending machines and laundry facilities are money makers that go beyond the monthly rent. 

While there are certainly risks that come with investing in real estate, there are a lot of benefits that outweigh the risks:

• Real estate is something that most people grow up being aware of. You may not have been exposed to things like stocks and bonds, but you likely know the importance of owning a home. Buying a home is an investment that is reachable.
   
• Having an investment that you can see; something that is tangible, is psychologically important.
   
• You have the control in a real estate investment.  You do not have to worry as much about being defrauded the way you might when entrusting your money to someone else to invest for you.
   
• You will reap the benefits of tax advantages.
  
• You can use money you make on a home sale to buy more real estate and increase your net worth.

Whether you are thinking of purchasing a home for yourself and investing in your own future by building equity or you are considering buying property to rent out, investing in real estate is great way to build wealth!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out http://www.homesforsaleinmontgomeryalabama.com for more information.

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Congratulations! You’ve just moved into your new house! It’s exciting, but it’s also a huge transition. It takes time to make a new house feel like home. Here are some tips to help you get started:

• BE ACTIVE
  

If you have moved to a new area where you do not know anyone, you may be tempted to isolate yourself. After all, you have unpacking to do and maybe a new job to start. But try to resist that temptation. Staying socially, physically, and communally active, triggers significant feelings that create the sense of home. Join a gym or exercise class, join a community such as a church, the school PTA or a book club, and shop locally to get to know your surroundings.

• SURROUND YOURSELF WITH LIVING THINGS
  

A move can be difficult, especially if you are grieving the place you left. It’s not uncommon for people to become depressed after moving to a new home. Combat those feelings by cultivating relationships with living things. Start a garden, spend time with your children and pets or volunteer in the community. Step out of your comfort zone…you will be glad you did!

• COMFORT YOURSELF WITH COLORS

Decorate with a palette of colors that lift your mood. Choose colors that promote calm, happy feelings. For example, earth tones create a welcoming, comfortable atmosphere that evokes feelings stability, reassurance, and ease, while light pastel colors stimulate feelings of peacefulness, calm and cleanliness.

• SURROUND YOURSELF WITH THE FAMILIAR
  

Even before you are completely settled into your home, placing familiar items such as family pictures and heirlooms in your new space can make it feel more like you. Even if you don’t hang your art right away, take it out of boxes and lean it against walls so that you can still enjoy it until you find time to place it where you want it. Some other ways to make you feel at home: cook favorite meals, burn candles with favorite scents and/or play your favorite music.

• UNPACK
  

This may seem obvious, but it’s not unusual for people to still have boxes cluttering the house months after moving in. Take your belongings out of the boxes right away and begin decorating and arranging furniture. Start with your closets and dressers so that you will be able to find the things you need easily in order to set up the rest of your house. The sooner you do this, the sooner this once strange place will feel like home!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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You are ready to buy a house, and chances are you do not have a suitcase full of cash at your disposal. So, that means you will need to get a home loan. Before you start shopping for your home, you will need to shop for a mortgage. Here is a step-by-step guide to help you along the way:

Step 1: Research Mortgage Lenders

Many first-time buyers make the mistake of finding the perfect house before they have shopped for a mortgage. All lenders are a little bit different in terms of interest rates, closing costs etc., so it is smart to comparison shop before choosing your lender. This process will also help you discover if there are any concerns lenders might have with your application so that you can take care of them before you find your dream home!

We work with many local lenders and know their special programs, so check with us first for a lender referral.  And keep your business local as that (1) gives the seller a comfort level and (2) helps if there is a hiccup along the way.

Step 2: Get Pre-Approved for a Mortgage Loan

Getting pre-approved for a mortgage is an important step that should not be skipped. It not only lets you know how much you can afford for a house, but it also lets sellers know that you are serious about buying and may give you an advantage over other buyers. 

Step 3: Get a Home Appraisal

Once you’ve chosen a lender, made an offer on a home, and signed a sales contract, your lender will want to schedule a home appraisal. A professional home appraiser will check out the home and assess its market value using comparable homes for comparison. It is also time to schedule the home inspection as soon as possible. Doing so will give you adequate time before your closing date to negotiate with the seller if the inspection reveals any unforeseen issues. Click here to learn the potential cost of skipping a home inspection.  

Step 4: Title Search

Once you have purchased your home, you will “take title” of the property. Congratulations!  You are now the rightful owner!  But your lender will want proof. So, they will ask for a title search.  A paid title company will search public records for any possible heirs that think the property belongs to them, for liens that might still be on the home, or other issues. Once the title is cleared, you can move forward to closing.

Securing a mortgage may seem like a long, time-consuming process, but when you sign the dotted line and become a homeowner, it will all have been worth it!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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It’s a challenging time to purchase a home because you not only have to find a property you want; you must also beat out all the other homebuyers who want to make an offer on it as well. It is a seller’s market and that means supply is low and demand is high. The latest figures from the National Association of Realtors show that that there was only a 1.7 -month supply of homes for sale in February, which is significantly lower than the six-month supply that indicates a balanced market that equally benefits buyers and sellers.

So, home sales are moving quickly and often have multiple offers. That means you need to be strategic to get into the home of your dreams.  Going to open houses and perusing listings is not enough to acquire the house you want in this market.

Seeking out an Experienced Realtor to assist you in your search is vital to your success in buying a home right now. Realtors can help you with everything from finding properties, to placing appropriate offers and negotiating terms.

Knowing what is most important to sellers is key to winning a bidding war.  A good agent will know what motivates sellers.

Take the following steps to prepare and you will have a better chance at success:

• Get your finances in order and shop for a mortgage pre-approval prior to making an offer on a house.
• Move quickly once you find the house you want.
• Do not make snap judgements based on listing photos. You must see a home in person to know if you truly love it or hate it. Pictures do not tell the whole story!
• Be realistic about the inspection and repairs. In a competitive market, owners don’t need to make repairs to sell. Inspections should be utilized to find major flaws that may be deal breakers for prospective buyers.
• Start with your best offer. A competitive market is not the right market for negotiating a bargain.
• Make a big earnest money deposit. A large deposit will let sellers know that you are serious about the purchase.
• Make a backup offer. Even if a house is already under contract, the deal might still possibly fall apart for various reasons such as inspection issues or financing.  If you love a house, put a backup offer on it so that you will be first in line if the initial buyer walks away.
• Consider waiving or shortening contingencies. Most offers are made contingent on the buyer being approved for a mortgage, the appraisal being equal to the purchase price and the buyer approving the inspection. Waiving any one of those contingencies can be risky but may be worth taking a chance on in some circumstances.

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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The current real estate market is still a sellers’ market, meaning bidding wars are not the exception, but the rule when trying to purchase a home. If you are attempting to buy in a desirable area, there are likely to be multiple offers on the property you want, meaning you will have to be competitive to come out on top. It is easy to get caught up in the process and your desire to “win” at all costs may, well…cost you.  Mistakes might not only cost you the home of your dreams but might also have you end up in a house that you regret. So, you need to be careful out there!

Here are some common bidding war mistakes to avoid:

• Bidding ALL Your Money

NO. Don’t do it. With houses selling for thousands of dollars above asking price, it may be tempting to empty your budget just to “win”. But what if you do get the house and it needs repairs and/or updates? With all your cash gone, you will be left with nothing to put towards improving your new home. DO NOT PANIC and make impulsive decisions that you will come to regret.

• Rushing to Bid

If you don’t have your financing in place or know exactly where your money is coming from, then now is NOT the time to get into a bidding war. For example, if you make your offer contingent upon the sale of your current house, you are likely to lose in a bidding war because the seller will choose a buyer that has the fewest contingencies. Get pre-approved for a mortgage loan and have all your ducks in a row to stand out to sellers.

• Bidding with NO Contingencies

Desperate times call for desperate measures, but there are some contingencies that you should NEVER waive. Waiving a home inspection and the ability to back out of the deal if the inspection reveals major issues would be a BIG mistake. It is just not worth the risk. You can compromise on other contingencies but sacrificing the right to inspection is never a good idea.

• Counting on a Second Chance

When entering a bidding war, it might be tempting to make an offer that leaves room for you to make a “better” offer later. But with so much competition, you likely won’t get a second chance. Work with your Realtor to write your bid as if it is the only bid you will make. If you’ve done your homework and have your financing in order, you should already know the limits of your bidding potential. If you don’t win the bidding war, it simply means the property was not the one for you.

One of the most important things to do when entering the market to buy a home right now is to find an experienced, professional Realtor to help you through the process. Their knowledge of the market along with their expert negotiation skills will be invaluable in your quest to find, and win, the right home for you!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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Have you been hesitant to purchase your first home because you are worried about having enough cash for a down payment or that you will not qualify for a loan? Don’t despair! There is help out there for you. Owning a home is a sound financial investment and there is no reason to keep paying a landlord’s mortgage when you could be paying your own and building equity for your future. There are programs available in Alabama that make home ownership more affordable. From looser lending requirements to down payment assistance, to lower mortgage rates, these programs, overseen by the Alabama Housing Finance Authority, make it possible for you to be a homeowner.

Here is a list of programs available to first-time homebuyers in Alabama:

AHFA STEP UP PROGRAM

The Alabama Housing Finance Authority’s (AHFA) program will assist new homebuyers in obtaining a fixed-rate mortgage. Eligible homebuyers (both first-time or repeat buyers) can get a 30-year conventional loan, FHA loan or VA loan at a competitive rate along with down payment assistance. Here are the requirements that need to be met to participate in this program:

• Property must be in Alabama
• Credit score must be 640 or higher (depending on loan type)
• Income can’t exceed the lesser of $130,600 or 80% of the area median income (depending on loan type)
• Debt to income ratio (DTI) has to be 45% or lower
• A homeowner education course must be completed

AHFA STEP UP DOWN PAYMENT ASSISTANCE

The Step-Up program includes an option for down payment assistance of up to 4% or $10,000 (whichever is less). These assistance funds come via a 10-year second mortgage, but both loans can be paid for in a single payment each month. You must be participating in the Step Up first mortgage program to qualify for down payment assistance.

AHFA AFFORDABLE INCOME SUBSIDY GRANT

This grant will provide up to 1% of your mortgage to assist you in paying for closing costs. It is only available if you are obtaining an HFA Advantage conventional loan, not an FHA loan. It can be combined with the Step Up down payment assistance, as well as a mortgage credit certificate. The requirements are the same as the Step-Up program requirements. But there are different income limits that are based on the county where the home is located.

MORTGAGE CREDIT CERTIFICATE (MCC)

Along with a competitive mortgage rate and down payment assistance, AHFA also offers a mortgage credit certificate to first-time homebuyers. An MCC is a tax credit, and in Alabama, depending on the size of your loan, it can equal as much as 30% to 50% of your mortgage interest. As stated above, your MCC can be combined with AHFA’s Step Up program or any other 30-year, fixed-rate mortgage obtained via a participating lender. Here is how to qualify for an MCC:

• You must be a first-time homebuyer or not have owned a home within the last three years.
• There are income limits and purchase price limits that must be met
• The property being purchased must be in Alabama

So, if you’re ready to stop paying rent and to become a homeowner, one of these approved Alabama Housing Finance Authority programs could provide a starting point for you. AHFA does not offer mortgages directly, but they do work with over 50 lenders all over the great state of Alabama. Be sure to shop around and compare loan offers so that you can find the best possible loan.

A seasoned, professional Realtor like Sandra Nickel can help you navigate the process of figuring out what you can afford and how to start your homebuying journey.

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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You’ve found your dream home! The neighborhood is lovely, with well-kept lawns and freshly painted exteriors. There is a resort-like pool and a playground for the kids. Awesome! Oh, and there is a Homeowners Association (HOA) that will cost you $500 a month. Didn’t see that coming, did you?  It is important to be informed about the pros and cons of living in a neighborhood with a homeowner’s association.

PROS

• The neighborhood will be aesthetically pleasing. Most HOAs establish rules for residents that ensure keeping up the appearance of the neighborhood. The guidelines might include keeping lawns manicured, whether you can have a fence (and the type and color of the fence), and what exterior paint colors you can use. You may even have to get permission to remove or add trees and shrubs.
  
• Awesome amenities. You will enjoy the amenities that come with your HOA fees. Most HOAs offer luxuries such as a pool, a fitness center, play areas, parks and security gates.  That is in addition to covering the expenses of landscaping and maintenance of the common areas.
   
• Maintenance costs are shared.  You will not have to worry about the upkeep of the pool, fitness center or common areas.
   
• An HOA will handle disputes between neighbors. If someone has a dog barking at all hours or loud parties, you can contact the HOA and they will contact the neighbor; especially if HOA rules are being broken.

CONS

• HOA dues.  They can be expensive, sometimes as much as $1,000 per month depending on what amenities are offered. These fees need to be taken into consideration when deciding if you can afford a house in the neighborhood. They will be included in your mortgage lender’s assessment of your monthly mortgage payment, so you will have to qualify for a loan amount that includes them.
  
• Needing permission to make changes to your property. If you want to add a room to your home or modify it in some way, you will have to make a request that will go before the HOA board for approval. If they don’t approve it, you will not be able to make the changes you want.
   
• HOA financial problems could become your problem. If your HOA is struggling financially, it could damage your ability to obtain a loan for a home and it could be detrimental to home sale prices in the community.
   
• Keeping up with the dues. If you fall behind on your HOA dues, it can do great harm to you financially. You may even end up facing foreclosure. That is why it is crucial that you include the fees when determining if you can afford a house. You may also be subject to late fees if you do not pay on time. In addition, HOAs can fine you for not following guidelines and rules, so it is imperative that you can afford the upkeep required for living in the neighborhood.

It is vital that you consider all these pros and cons before deciding to purchase a home in a neighborhood with an HOA.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

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Whether you are selling a home or buying one, you are going to want to know the value of the home so that you can determine selling price or if the sale price is appropriate. But what you may not be aware of is that there are 3 different types of home values. It may be confusing to you when trying to determine what the true value of the home is. Let us break it down for you so that you will understand the 3 types of home values and what they mean.

1. ASSESSED VALUE

The assessed value is the assigned dollar value of your home used by local tax assessors to determine property taxes. Tax assessors calculate assessed value based on various factors, which may include the appraised value and the fair market value, as well as any home improvements, whether you generate income from the property, and any tax exemptions. The assessor will give you a figure that is commonly a percentage of what they perceive the value to be. Because property taxes are based upon assessed value, ideally, this figure will be lower. It should be close to your actual market value, but frequently it is not.

2. APPRAISED VALUE

When you are refinancing or purchasing a house, an appraiser will be hired to determine the value of the house in question. They will use the same process that real estate professionals use to determine the fair market value. A licensed appraiser will consider the location, size, and condition of the home along with any renovations that have been completed. They will walk through the home and compare it to others with similar amenities and improvements in the area that have sold. Most appraisals will include a construction or replacement cost that is used for insurance purposes.

3. FAIR MARKET VALUE

Fair market value is what a home is worth based on the current market climate. It encompasses how a home looks to prospective buyers compared to other homes in the area. It takes into consideration the sale prices of homes that are similar (same number of bedrooms, square footage etc.) A real estate agent will start by looking at “comps” to figure out what buyers have been willing to pay for properties comparable to yours. Other things that help determine fair market value are whether it is a seller’s or buyer’s market and how much inventory is available.

Because these different types of values can be subjective, it is vital to make sure you are looking at a comprehensive overview when trying to determine the value of the home you are selling or buying. An experienced Realtor like Sandra Nickel can assist you with this process by providing a comparative market analysis.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: mashvisor.com, corporatefinanceinstitute.com, mashvisor.com, realestatelawblog.com