Real Estate Information Archive

Real estate has long been one of the most powerful avenues for building long-term wealth. Whether you’re just starting out or looking to expand your portfolio, understanding how property ownership creates financial security and growth is vital. In this blog, we’ll explore key strategies, benefits, and local context that can help you unlock the wealth-building potential of real estate — especially in Montgomery, Alabama.

💰 Why Real Estate is a Wealth-Building Powerhouse

Real estate isn’t just about owning property — it’s about creating ongoing income streams and benefiting from long-term appreciation. Here are the major financial advantages:

1. Appreciation Over Time

Property values generally rise as communities grow and develop. Holding real estate over the long term can lead to significant increases in value, which boosts your net worth when you sell or refinance.

2. Passive Income Through Rentals

Owning rental properties can generate consistent monthly income, especially in markets with strong renter demand. This cash flow can cover expenses, pay down the mortgage, and eventually build surplus income.

3. Tax Advantages

Real estate investors can benefit from multiple tax perks — including deductions for mortgage interest, depreciation, and property taxes. Additionally, tools like 1031 exchanges allow investors to defer capital gains taxes when selling and reinvesting in “like-kind” properties.

4. Hedge Against Inflation

Real estate often keeps pace with or outpaces inflation because rents and property values tend to rise when the cost-of-living increases, protecting investors’ purchasing power.

Core Real Estate Wealth-Building Strategies

Here are some proven ways to grow your financial portfolio through property:

💡 Buy & Hold: The Classic Approach

The buy-and-hold strategy involves purchasing properties with the intention of keeping them long-term. Over time, you benefit from:

• Rental income
• Appreciation
• Mortgage principal paydown
  This strategy works well in stable rental markets where demand is consistent.

🏠 House Hacking: Live and Invest

House hacking lets you live in one unit while renting out the others (e.g., duplex or multi-unit property). This helps you offset your own housing costs while building equity.

🔁 BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat)

This strategy accelerates portfolio growth by:

1. Buying undervalued properties,
2. Renovating them,
3. Renting them out,
4. Refinancing to pull out equity,
5. Repeating the cycle with new properties.

📈 Real Estate Investment Trusts (REITs)

For investors who prefer not to own physical property, REITs offer a way to invest in real estate via the stock market. They provide diversification and dividends but usually return differently than direct property ownership.

Why Montgomery, Alabama Can Be a Smart Market to Invest In

Montgomery’s real estate landscape has several traits that can support profitable investing:

📊 Stable Rental Demand

With institutions like military bases, universities, and healthcare systems in and around Montgomery, there’s consistent demand for rentals — providing reliable occupancy and cash flow potential.

🛠️ Fix-and-Flip Opportunities

Montgomery’s mix of older, affordable homes makes it a fertile ground for renovation projects that can yield strong resale profits.

Real Estate: Not a Get-Rich-Quick Scheme

While real estate has the potential to build significant wealth, it’s not a shortcut to riches overnight. Successful investing requires thoughtful planning, patience, and ongoing education. Steady research and strategic decisions help safeguard your investment and maximize returns over the long run.

💭 Final Thoughts

Investing in real estate can transform your financial picture — from generating monthly income to building long-term, multigenerational wealth. With Montgomery’s strong rental dynamics, landlord-friendly environment, and opportunities for both passive and active investment strategies, now might be a great time to explore property investing in the region.

Ready to Build Wealth Through Real Estate in Montgomery?

Whether you’re considering your first investment property, thinking about selling, or planning your next move, having the right guidance matters. The Montgomery market offers real opportunities — and the right strategy can make all the difference.

Let me, Sandra Nickel, and my Hat Team of Professionals help you navigate every step of the process, from identifying opportunities to closing with confidence.

📞 Call today: 334-834-1500
🌐 Learn more: www.homesforsaleinmontgomeryalabama.com

The start of a new year is the perfect time to make resolutions—not just for health and fitness, but also for your home and investments. Whether you’re looking to buy, sell, or grow your property portfolio, these practical real estate resolutions can help you set achievable goals for 2026.

1. Buyers: Get Pre-Approved & Know Your Budget 💰

• Resolution: “I will get pre-approved for a mortgage before house hunting.”
• Why it matters: Montgomery’s market remains competitive, especially in desirable neighborhoods like Cloverdale, Old Cloverdale, and East Montgomery. Pre-approval clarifies your budget and strengthens your offer, showing sellers you’re a serious buyer.
• Tip: Compare multiple lenders to find the best rate and consider locking in before potential rate increases.

2. Sellers: Declutter, Depersonalize, and Stage 📦

• Resolution: “I will prepare my home to sell by making it look irresistible to buyers.”
• Why it matters: Homes that are clean, clutter-free, and staged tend to sell faster and for higher prices. Buyers want to envision themselves living in your space, and staging helps make that possible.
• Tip: Donate or store personal items, add a fresh coat of neutral paint, and consider hiring a professional stager for key rooms like the living room and kitchen.

3. Investors: Build Your Real Estate Portfolio Strategically 📈

• Resolution: “I will identify opportunities to grow my investment portfolio this year.”
• Why it matters: Real estate can be a powerful way to build wealth, but it requires planning. 2026 may present new opportunities in Montgomery neighborhoods or beyond.
• Tip: Research neighborhoods, evaluate potential rental income, and stay informed about city zoning and property regulations. Diversify between single-family homes, multi-family units, or short-term rentals to mitigate risk.

4. Everyone: Set Realistic Goals & Track Progress 🎯

• Resolution: “I will set measurable goals and check in on them regularly.”
• Why it matters: Clear, actionable goals prevent overwhelm and keep your real estate plans on track.
• Tip: For buyers, that could mean identifying neighborhoods and saving for a down payment. For sellers, it could be timing the market and budgeting for updates. Investors might set goals around acquisitions, renovations, or rental occupancy rates.

5. Commit to Working with a Trusted Realtor👩‍💼

• Resolution: “I will partner with a knowledgeable real estate professional.”
• Why it matters: An experienced agent can guide you through complex transactions, help negotiate the best deals, and offers hyper-local insights on Montgomery’s neighborhoods that you won’t find online. By working with The Hat Team, you gain a full team dedicated to helping you navigate every step of buying, selling, or investing in Montgomery real estate.
• Tip: Schedule a consultation with us early in the year to discuss your goals and strategy, even if you’re not ready to buy or sell immediately. Our local expertise and personalized approach ensure your 2026 real estate resolutions stay on track.

💡 Closing Thoughts

2026 is the year to take proactive steps toward achieving your real estate dreams. Whether you’re buying your first home, selling to upgrade, or investing to build wealth, practical resolutions can help you stay focused, avoid costly mistakes, and make smarter decisions.

Remember, the key is action and planning. Start small, stay consistent, and you’ll see the progress!

Ready to Make Your 2026 Real Estate Resolutions a Reality?

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! We’ll guide you every step of the way.

📞 Call us today at 334-834-1500
🌐 Visit Homes for Sale in Montgomery, Alabama for more information and to browse current listings.

Start the new year off right—let’s make 2026 your best real estate year yet!

Honoring our heroes

Buying a home is always a big decision — but for our military families, who often move every few years, it can feel like an even bigger one. Whether you’re stationed at Maxwell-Gunter Air Force Base or transferring into the River Region, finding that perfect home in Montgomery takes a little planning and a whole lot of heart.

🏡 Do Your Homework Early

Before those moving boxes pile up, start digging into the neighborhoods around Montgomery. Take a drive through Cloverdale, Pike Road, or East Montgomery to get a feel for the vibe. Not yet in town? Check out listings online and make yourself a “must-have” list — things like a fenced yard for the dog, a short commute to Maxwell, or a good school zone for the kids.

Keep an eye on how long homes stay on the market and whether prices are shifting. A little research now will save a lot of stress later when those PCS orders come through!

💬 Find Your Community

Military life can make it tough to put down roots — but Montgomery’s got a way of making folks feel right at home. Look for neighborhoods that bring people together.

If you’ve got kids, November is a wonderful time to settle in and meet other families around Montgomery. From waving flags at the Veterans Day Parade downtown, to catching a crisp fall football game at Alabama State or Faulkner University, to walking through Blount Cultural Park as the leaves turn, there’s no shortage of ways to connect. Many local churches and community centers also host Thanksgiving drives and holiday events where families can volunteer together and honor those who serve.

As we celebrate our veterans and give thanks this season, you’ll be reminded that good ol’ Southern hospitality runs especially deep here in the Heart of Dixie.

Click HERE for more info on The City of Montgomery’s Veteran’s Day Celebration!

🎖️ Military Incentives & VA Benefits

Y’all have earned some well-deserved perks! Many local builders and developers around Montgomery offer special incentives for active-duty and veteran buyers — from help with closing costs to complimentary landscaping services during deployment.

And don’t forget about the VA Home Loan — it’s one of the best tools out there for military families. Certain active-duty service members, and qualifying surviving spouses are eligible for VA-guaranteed loans with benefits like no down payment, no private mortgage insurance (PMI), and often better interest rates.

If you have a service-connected disability (especially high %), check the county tax assessor’s office in Montgomery County (or relevant county) for what local exemptions apply.

It is prudent to always ask about any available extras for active military and veterans.

🧭 Partner with a Military-Friendly Realtor

Military families know that time is precious — and having a real estate pro who understands your lifestyle can make all the difference. That’s where Sandra Nickel and her Hat Team come in. Sandra’s a Certified Residential Specialist who’s been helping Montgomery families find their dream homes for decades.

The Hat Team will fill you in on everything from school zones and commute times to neighborhood safety and local events. Whether you’re buying your very first home or transitioning back to civilian life, Sandra and her team will treat you like family — because here in Montgomery, that’s just how we do things.

❤️ Thank You for Your Service

This Veterans Day, we salute all who have worn the uniform — and the military families who stand beside them — here in Montgomery and across the country. Your courage, commitment, and sacrifice make our community stronger every single day.

If you’re ready to make your next move, call Sandra Nickel and the Hat Team at 334-834-1500, or visit homesforsaleinmontgomeryalabama.com

Avoid These Frightening Fallacies That Could Haunt Your Wallet

Whether you're creeping into the market to buy your very first haunted mansion or you're a seasoned real estate phantom flipping homes like pancakes, you've probably heard some ghoulish "truths" about buying or selling. But beware—some of these beliefs are nothing more than zombie myths that just won't die.

Falling for these fables can come back to bite you—right in your bank account. So, grab your garlic, light a candle, and keep reading for several real estate myths that are more trick than treat:

👻 1. "Set Your Price Higher to Leave “Wiggle Room”

Overpricing your home might seem like a sneaky strategy, but it could send buyers running like they've seen a ghost.

And if your home sits too long on the market, it begins to look... cursed. 👀 So don’t scare them off. Start with a realistic price, or you might be haunting your own sale.

🧛 2. “Interest Rates Are Too Terrifying — No One’s Buying Now”

Yes, mortgage rates are higher than the “ultra‑low” pandemic years, but buyers haven’t disappeared — they’ve become more strategic.

Many serious buyers are still in the market, especially those willing to compromise on size, location, or features.

So don’t let rising rates spook you into sitting on the sidelines forever.

🧙 3. “You Must Have 20% Down or You’re Doomed”

That’s a ghost story. Many loan programs today allow 3%–5% down, and some (like VA or USDA) even offer 0% down in qualifying cases.

Waiting to save 20% may cost you more in rising prices than what you're “saving.”

🦇 4. "Selling Without an Agent Will Save You a Cauldron of Cash"

Sure, FSBO (For Sale By Owner) can be done — but it’s no stroll through a graveyard. You’ll have to market the home, list it in the right places, negotiate like a werewolf under a full moon, and handle inspections, financing, and legal paperwork all on your own.

Here’s where the real trickery comes in: data shows FSBO homes often sell for significantly less than agent-assisted homes. Many FSBO sellers still end up paying buyer agent commissions (often 2.5%–3%), and what you hope to save in listing fees can be eaten up by a lower final selling price.

In short: the commission you avoid might cost you more in lost equity than you bargained for. Better to get a professional guide than be spooked by hidden pitfalls.

🧟 5. "You Must Renovate the Kitchen and Bath Before Selling"

Unless your kitchen looks like Frankenstein’s lab, think twice before a full-on remodel. While a modern kitchen can be eye candy, buyers often have their own (ghastly?) design ideas and don’t want to undo brand-new renovations.

You might end up spending a grave amount for something that doesn’t boost your sale price. Sometimes it’s better to adjust the price and let buyers bring their own magic wand.

🎃 Final Boo… er, Thought

The real estate world is full of cobweb-covered myths that can trick even the savviest buyers and sellers. Don’t let these tales lead you astray. I'm Sandra Nickel, and with my Hat Team of Professionals, we’ll help you dodge the tricks and focus on the treats—guiding you through every haunted hallway of the process. 🧙‍♀️✨

📞 Call us today at 334-834-1500 or visit homesforsaleinmontgomeryalabama.com to get started.

Let’s be honest — moving is a lot, even when you're well-prepared. Between packing every single thing you own, changing addresses, and adjusting to a new home (or city!), it's no wonder some important tasks slip through the cracks.

To help your move go as smoothly as possible, here are five commonly forgotten tasks that can lead to unnecessary headaches if overlooked — plus how to avoid them.

1. ❌ Cancel Local Memberships & Subscriptions

When you’re knee-deep in boxes and logistics, it’s easy to forget about that gym membership, yoga studio, or local subscription box that won’t transfer with you.

✅ Pro tip: Cancel at least 30 days ahead if you're billed monthly, and double-check your bank or credit card for any auto-renewals you might’ve forgotten about.

2. 🚗 Call Your Car Insurance Company

Most people don't realize that moving—yes, even across town—can affect your car insurance rates. Rates often vary by ZIP code, and if you're moving out of state, you may need an entirely new policy to meet local minimums.

✅ Before your move, call your insurer to update your address and confirm your coverage still meets your new state’s requirements.

3. 📬 File a Change of Address (Early!)

The USPS Change of Address form is simple and online—but don’t leave it until the last minute. Waiting too long can delay mail, bills, or important documents from reaching you.

✅ Submit your change of address at least two weeks before your move date to keep your mail flowing without interruption.

4. 💸 Stay on Top of Finances

With all the moving parts (literally), it’s easy to miss a bill. Lost paper statements, disconnected Wi-Fi, or misplaced mail can lead to late fees.

✅ Set up auto-pay for essentials like rent/mortgage, utilities, and internet. And create a designated mail drop zone in both your current and new homes to avoid losing anything in the shuffle.

5. 💳 Update Your Billing Address on Credit Cards

This one catches people by surprise: many retailers require the correct billing ZIP code to process payments. If your address has changed and your card doesn’t reflect it, your transaction might be declined.

✅ Take 5 minutes to log in to your credit card accounts and update your billing address.

🔌 Bonus Tips for a Smooth Move

🧹 Schedule a Deep Clean (Both Places)

People often forget to clean their old place after moving out—or arrive at a new place that hasn’t been cleaned properly.

✅ Schedule a cleaning service (or DIY it) before handing over the keys, and consider a move-in clean for your new place before the boxes arrive.

🐶 Don’t Forget the Pets!

Pets can get anxious during a move and require special care.

✅ Have an overnight bag with their food, toys, and comfort items. Update microchip info and vet records with your new address.

🛠️ Make a First-Night Essentials Box

Nothing’s worse than digging through 15 boxes just to find toilet paper or phone chargers.

✅ Pack a clearly labeled “Open First” box with:

• Toiletries
• Chargers
• Paper towels
• Basic tools
• Cleaning supplies
• Snacks & water
• A few dishes
• Bed linens

Final Thoughts

Yes, moving is still stressful — but taking care of these small (but crucial) tasks ahead of time can make a big difference.

📞 Ready to buy or sell a home in Montgomery?
Let Sandra Nickel and the Hat Team of Professionals help guide you every step of the way. Call us at 334-834-1500 — we’re here to help make your next move your best one yet.

Real estate terminology can feel like a foreign language—confusing, overwhelming, and filled with jargon. But don’t worry—we’ve got you covered!

Today, we're breaking down one of the most important concepts in buying and selling homes: comparables (often called “comps”). Understanding how comps work can give you a major advantage, whether you're pricing your home to sell or figuring out a fair offer to make.

Comparables, or “comps,” are a key term in real estate—and they play a big role in determining a property's value. Comps refer to recently sold homes that are similar in size, condition, location, and features to the home you're buying or selling.

By analyzing these similar properties in the same neighborhood, you can get a realistic idea of what a home is truly worth. Whether you're a buyer trying to make a smart offer or a seller setting the right price, comps provide valuable insight to help guide your decisions.

Comparables are a vital tool for everyone involved in a real estate transaction.

Buyers rely on comps to help determine a fair and competitive offer on a home. Sellers, on the other hand, use them to set a smart and strategic listing price. And for real estate professionals, comps are essential for staying up to date on local market trends and pricing shifts.

In short, understanding comps means understanding the market—and that leads to better decisions.

Location matters—a lot—when it comes to comparables.

One of the most important factors in choosing accurate comps is proximity. To get a true sense of a home's value, the properties you're comparing it to should be nearby, ideally within the same neighborhood. That’s because real estate markets can vary significantly from one area to another, even within the same city.

If homes in the exact neighborhood aren’t available, you can expand your search slightly—but the closer, the better for an accurate comparison.

The most useful comps are often homes that are currently “pending.”

Why? Because a pending sale means a deal has already been reached, giving you the most up-to-date reflection of current market conditions. Since real estate markets can shift quickly, using the freshest data is key.

When reviewing comps, focus on homes that have sold within the last three months. In some cases, going back up to six months is acceptable—but anything older likely won’t reflect current pricing trends and could give you a skewed picture of a home’s value.

Features matter when choosing the right comps.

For a comparison to be truly accurate, the homes you’re evaluating should share similar characteristics. This includes key details like square footage, number of bedrooms and bathrooms, lot size, and layout.

Upgrades and special features also play a big role. A home with a remodeled kitchen, scenic view, or finished basement isn’t directly comparable to one without those enhancements. The more closely aligned the features are, the more reliable your pricing insights will be.

How to Find Real Estate Comps to Determine House Value

Remember, your Hat Team Realtor has valuable insights you might not see in the data alone.

When reviewing comps, you may notice that a similar home is priced higher or lower than yours—and it’s not always obvious why. That’s where your Hat Team Realtor comes in. We have access to details and context that may not be publicly available, such as the condition of a home, seller motivation, or updates that weren’t listed online.

It’s also important to understand that comps are estimates, not official appraisals. They offer helpful guidelines, not a guaranteed value. Still, understanding comparables is key to making smart decisions in today’s real estate market. Whether you’re buying or selling, knowing how to evaluate similar homes can help you price wisely, negotiate confidently, and avoid costly mistakes.

But remember—you don’t have to navigate it alone. A knowledgeable Realtor can interpret comps, explain the nuances, and guide you every step of the way.

📞 Ready to make your move with confidence?

Contact The Hat Team today at 334-834-1500 or email [email protected]. We're here to help you price it right—and get it sold.

There was a time when there were three mortgage loan types available to home buyers. You could get a Fixed-Rate Conventional Mortgage, an FHA Loan or a VA Loan. But times, they are a changin’.  Now there is a vast array of mortgage loan types to be had!  Let’s learn about some of them, and the differences between them.

We will start with the most popular:

• FIXED-RATE MORTGAGES​
  
  These loans come in 5-year, 10-year, 15-year, 20-year, 30-year, 40-year, and even 50-year timeframes. The interest rate remains the same for the duration of the loan, meaning monthly payments are predictable.

• FHA LOANS​

FHA Mortgage Loan types are insured by the government through mortgage insurance that is funded into the loan. This is an ideal loan type for first-time buyers because it has minimal down payment requirements and does not rely on a 700+ plus credit scores for approval.

• VA LOANS​

VA loans are government loans available to veterans who have served in the Armed Forces for the United States. They are also available to spouses of deceased veterans in some cases. The requirements depend upon the years of service and whether or not the veteran was honorably discharged or not. The primary benefit of a VA Loan is that the borrower does not have to come up with a down payment. The loan is guaranteed by the Department of Veterans Affairs but funded by a conventional lender.

• USDA LOANS

USDA Loans are offered through the U.S. Department of Agriculture for eligible home buyers who want to buy a rural property. They often come with no down payment required and can sometimes be more affordable than an FHA loan.

• INTEREST-ONLY MORTGAGE TYPES

This name is a bit misleading, as these loans are not truly interest-only in terms of the borrower only paying interest on the loan. The reality of the interest-only mortgage is that it offers an option to make an interest-only payment. This option is only available for a set period of time. However, there are some junior mortgages that are interest-only and necessitate a balloon payment in the amount of the original loan balance at maturity.

Now, let’s take a look at HYBRID LOANS:

• ADJUSTABLE-RATE MORTGAGE TYPES
  
  There are various types of adjustable-rate mortgages (ARMS). They can fluctuate monthly, semi-annually, annually, or remain fixed for a set amount of time before they adjust.

• OPTION ARM MORTGAGE TYPES
  
  These types of loans are complicated. Like your standard ARM, the interest rate on them will fluctuate periodically, but in these loans, the borrowers can choose from various payment options and index rates.  WARNING: The minimum payment option can be dangerous as it can result in negative amortization.

• COMBO/PIGGYBACK MORTGAGE LOAN TYPES
  
  This is a type of financing that consists of TWO loans: a first mortgage and a second mortgage. They can be adjustable-rate, fixed-rate or a combination of both.  This option is used by borrowers when the down payment is less than 20% to avoid paying private mortgage insurance.

• MORTGAGE BUYDOWNS
  
  A mortgage buy down is a choice for borrowers who want to pay a lower interest rate in the beginning of their loan.  Basically, fees are paid to lower the rate, thus the name buydown. Buyers, sellers, or lenders can buy down the interest rate for the borrower.

Finally, Specialty Mortgage Loan Types:

• BRIDGE LOANS
  
  Bridge loans are used when a seller’s home has not yet sold and the seller wants to borrow equity to buy another home.  The seller’s existing home is used as collateral for the bridge loan.

• STREAMLINED-K MORTGAGE LOANS
  
  FHA has a program that provides money to a borrower to make home Improvements by rolling the funds into one loan. This is similar to the 203(K) Loan Program, but involves less paper work and is easier to get than a 203(K).

• EQUITY MORTGAGE LOAN TYPES
  
  Equity loans are second, or junior to the existing first mortgage. Borrowers take out equity loans to get access to cash. The loans can be adjustable, fixed, or a line of credit that allows the borrower to obtain funds on an as needed basis.

• SHARED APPRECIATION MORTGAGES
  
  These are rare in the United States, but shared appreciation mortgages allow home buyers to share part of their property’s value gains with an investor or lender. The guaranteed return to the lender means that the borrower will get a lower interest rate and lower monthly payment on the loan.

• REVERSE MORTGAGE
  
  This type of mortgage is for people over the age of 62 who have enough equity in their homes.  Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for the duration of their residence in the home. Reverse mortgages can be done with either fixed or adjustable interest rates. Please get advice from a trusted advisor before considering a reverse mortgage!

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

Let’s face it, selling and buying a house at the same time can be very overwhelming and usually involves some element of risk. However, it is common for people to have to buy and sell at the same time. Per the National Association of Realtors, 71% of repeat home buyers still owned their previous residences, which means it’s highly likely that most of them were both buyers and sellers.

If you are lucky enough to time it right, you may hit that perfect “sweet spot” where you sell your house, make a profit that can be used for a down payment, and then find your next dream home, in that order. But chances are, things might not go as planned and hoped for.

Let’s look at some common challenges you might face, different avenues that might work better for you, and tips for getting through the process with your mental health intact.

FINANCIAL ISSUES

Chances are you might not have the amount of cash on hand that it takes to make a down payment on a house unless you sell your current home first. If you have found your new dream home and don’t want to risk losing it while waiting to sell, you have some options. You could do a cash out refinance on your current home, take out a home equity line of credit, or maybe sell some investments. But keep in mind that these options have costs and might not work for everyone.

LOGISTICS

With all the details and decisions that have to be made when both buying and selling a home, the logistics of doing both at the same time can be complicated. You have to think about the timing of the purchase and sale and negotiating with both the sellers of your new home and the buyers of your current home; all while trying to organize and pack for your move. An experienced Realtor is vital to help you navigate this process.

RISK OF LOSING HOME TO NON-CONTINGENT BUYER

Buying and selling at the same time comes with risks, one of which is moving forward with a purchase before you have sold your current home. To minimize this risk, many homeowners choose to make their offer on a house contingent upon the sale of their current home. But this brings about another risk, because there is a possibility that your offer may get turned down in favor of a buyer who has made a non-contingent offer. At that point you may have to decide whether you can remove the contingency, which may not be financially possible.

Now let’s look at some tips to help you navigate the buying-while-selling process:

• Determine Financial Feasibility – It’s time to take a good hard look at your monthly disposable income and to ask yourself these questions:

• Can you afford paying both mortgages?
• How long will you be able to afford doing so?
• Do you have enough available cash for a down payment?
• Will you have enough available for down payment after paying both mortgages for a “worst-case scenario” period of time?

If you are living paycheck to paycheck, buying and selling at the same time is not a good option for you, but if you have a steady, dependable income and low monthly debts, you may be able to get through the process relatively unscathed. Talking to a trusted lender is a good idea at this stage because they can help you determine what you can afford to do.

• Consider a Bridge Loan – If you do not have enough for a down payment, you may want to consider a bridge loan. A bridge loan is a short-term loan that uses the equity from your current home to get the necessary down payment to complete your purchase. But you must keep in mind that this is only an option if you are ok with taking on two mortgage payments for up to six months to a year: the typical term for a bridge loan.
   
• Make Satisfying Offers to Both Seller and Buyer – If the thought of two mortgage payments is too much, as mentioned before, you can make an offer contingent upon selling your current home. With that contingency, your contract states that you won’t lose your earnest money if your house doesn’t sell. This eliminates your financial risk but weakens your offer. If another buyer makes a cash offer with no contingencies, sellers will go after the cash offer every time. Today’s market of low inventory and high demand means that a contingent offer is not as likely to be accepted. One way you can have a better shot at getting your new house is to offer significant non-refundable earnest money, in the hope that the seller will be willing to wait longer for your current house to sell.
   
• Look For a Cash Buyer – If you’ve already decided to buy your next home and sell your current home later, you definitely will want it to sell as quickly as possible. So, as a seller, a cash sale with no contingencies is the way to go if you can. You may want to seek out an instant homebuyer or a local real estate investment company to initiate a cash sale, typically a much faster process than a traditional listing process. The downside is that the offers you may receive might be significantly less than what you might get on the open market.

If your Realtor can help you find a cash buyer on the open market, all the better!

While the idea of buying and selling at the same time is definitely a little scary, the experienced, professional Realtors on Sandra Nickel's team can help you through the process.

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

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 the 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.

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.

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.

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.

When you make an offer on a home and it gets accepted, you have every reason to be excited. Becoming a homeowner is making an investment in your own future; likely the largest financial investment you will make. However, it is prudent to be aware that there are other costs involved in purchasing a home other than your down payment and monthly mortgage payments.

Closing costs are an expense you may not be aware of if you are a first-time homebuyer. These costs must be paid prior to closing on the home. They include property taxes, homeowner’s insurance, title search fees, and appraisal fees. In addition, the closing costs provide the funds that pay the people who have performed services throughout the loan process, like the appraiser and your real estate agent.

Your closing costs will be itemized for you and provided at your closing. But it is important that you look over them closely and take the time to ask any questions you may have before you sign any documents. If there is something you do not understand, your mortgage banker or Realtor can explain it to you.

The homebuyer can negotiate with the seller to determine who will cover the closing costs, but every loan has different guidelines about how much a seller can pay. Your mortgage banker can provide you with your options.

Whether you end up paying for all or just some of your closing costs, it is crucial for you to include the amount you will have to pay into your budget. You can estimate the cost by calculating 2% to 6% of your purchase price. For example, if your loan is $200,000, your closing costs will range anywhere from $4,000 to $12,000. You will also receive a document from your mortgage banker after you apply for your loan that will list the anticipated closing costs. They may change a little during the process, but it will give you a good idea of what to expect.

So, while saving for a down payment is an obvious necessity, you may want to also set aside some cash each month to go toward other expenses associated with buying a new 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.