Our blog on all things housing, local events, and fun happenings!

June 8, 2015

Tips for a First Time Home Buyer

 

The best thing for a first time home-buyer to know is that you do not purchase a house by accident. Buying a home is a process that requires a conscious decision and a purposeful attitude. That’s why it is a big deal. It’s not just a status symbol, it is a sign that you have your financial house in order to where a company is willing to lend you hundreds of thousands of dollars in order to purchase one product. In all likelihood, the purchase of your home will be the biggest purchase in your life, and that is not something to be taken lightly or without preparation. In an effort to aid you in that preparation, I’ve compiled information that will help you on your journey from a mere renter to a triumphant homeowner.

Financing

  • Getting financed is the most important part of the home-buying process because unless you have cash, that is how you will purchase.
  • Having a pre-approval is good ammo when going into an negotiation. You’ll be given preferential treatment over an opposing offer without pre-approval
  • A rule of thumb: You should be able to afford a loan worth three times your yearly salary.
  • Seeking financing is not to be dreaded. It is an enlightening process that will give some of the most most valuable knowledge that you can possess including your credit score, how much house you can afford, and what work may or may not need to be done to be approved to purchase a home.
  • Be sure to have money set aside not only for a down payment but also for costs that will be due upon closing.
  • Be patient. Sometimes financing does not happen quickly, easily, or timely.

Finding the right home

  • Find a good Realtor that you trust, knows the market, the area, and knows what they are doing. Finding the right Realtor can cut down the amount of houses you look at, the amount of work you have to do during closing, and can help negotiate a better purchase price for you.
  • Create a list of criteria for yourself and split them into two categories: Want and Needs
  • Realize that you will be getting about 80% of what you want. No house is going to fit perfectly into your criteria, especially as a first-time home buyer. It’s best to fill your absolute needs.
  • Don’t get caught up on the color scheme. Paint colors and carpet style are things that you can change in the future. It will be YOUR house and that means you can do whatever you like with it.
  • Focus on the things that cannot be changed: Location, Square footage, Floor Plan.
  • Listen to the home inspector. Do not get too involved in a home with serious issues and on the same note don’t get tripped up on simple fixes.
  • Be Patient. The house that will eventually be your home will probably not be the first house you look at, or the second, or the third. These things take time. Be Persistent. Be Thorough. Be Patient.

Be a Good Home-Owner

  • Your house is not only a place to live but it is also an investment. Maintenance is key to assure that your house doesn’t LOSE value and improvements can be used to ADD value.
  • Start saving for Home-maintenance immediately. All the repairs that would usually be taken care of by your landlord will now be your responsibility and you have to be prepared.
  • Be insured for an amount that will fully cover any damage done in the event of a flood, fire, or other natural disaster or accident.
  • Curb appeal is a huge factor in resale so maintaining the facade and the landscaping is crucial.
  • Be sure not to over-improve. At a certain point, it will not matter how much money you have put into your kitchen remodel, the market and your neighborhood will not let you break through a certain price ceiling.
  • Be Patient. Turning a house into your home takes time so don’t rush a home improvement project or a remodel.

This post is provided by Mel Grassel.  Check him out HERE for all your real estate needs.

May 22, 2015

What Type of Housing is for You?

When looking at buying a home, there are a lot of options out there. Should you build? Should you choose a manufactured home?  Is a residential resale best for your family?  There are a lot of factors that go into these decisions.  Some of them may be financing restrictions, the size of homes, location, or quality, just to name a few.  HOMESPOT started out over 30 years ago selling manufactured homes.  Since then, we have diversified to offer all types of housing, and we are the ONLY business in New Mexico to offer all types of housing.  Manufactured homes are a very viable option to buy a new home at an affordable price, and still be able to customize it.  Manufactured homes have several benefits.  Some of them are:

 

  1. Builders must adhere to  a strict code
  2. Reasonable Cost
  3. No delays in construction
  4. Computer Designed
  5. More choices
  6. Financing

 

 You can see the full list HERE.  CBS also recently did a feature for their Sunday Morning program on factory built homes and how they have changed over the years and what they can be today.  I invite you to watch that video and see the diversity of the industry.

 

 

May 1, 2015

Realtor or Nah?

We live in the information age. And, before you start, just because every article in the last ten years has started with a similar sentence does not make it any less true. The entire world is at our fingertips in the form of a phone or a tablet or a wristband. This accessibility has left numerous job titles and American institutions as casualties of the internet era. No longer can we meet a cute travel agent while we’re reading a newspaper at a bookstore. None of those things exist anymore. Such technological hubris has led to many an individual to take on projects that are best left to professionals. A prime example of one of these tasks is the purchase of a home. The advent of the internet has made today’s home buyer/seller more informed than ever, but even with this vast amount of knowledge there are certain aspects of Real Estate that are not as obvious as others. The use of a professional is the best route to take to prevent any colossal blunders from hindering the purchase or sale of your home and can help the whole process exponentially easier.

They’re Translators:

In today’s litigious society, documents that lead to the conveyance of hundreds of thousands of dollars and Real Property are saturated with extremely dense legal-speak to discourage the all-too-often lawsuit. This intricate legal-ese can make it difficult to understand just exactly what you are signing in a document that may commit you to the next 30 mortgage-paying years of your life. Realtors can help you wade through this mountain of paper work. It’s like having a Sherpa to help you scale Mt. Everest.

They’re Mad Men:

While some realtors might not carry the gravitas and masculinity of Don Draper, they will have a level of experience in marketing that will often exceed that of the layman. Realtors have access and hands-on knowledge to marketing techniques that may not immediately pop into the brain of the average joe who is looking to save a few bucks by not utilizing a realtor. The best marketing an individual can do is hire a realtor to to list their property because by listing with a realtor that have, in turn, hired hundreds of realtors to sell their property in the form of the MLS (Multiple Listing Service) which can only be accessed by a licensed Realtor.

They’re Not You:

The purchasing of homes is an emotional process. Some people are selling off the family home to downsize because the kids have grown and moved on. Some are just beginning their family looking for the perfect home where their hypothetical children can play with their hypothetical puppy and open their hypothetical presents underneath the hypothetical  Real Christmas Tree (they don’t believe in the plastic trees). The point is that YOU may not be the best option to give an unbiased price on your home or a counter-offer on a soon-to-be home. Having a concerned but objective partner can help you do anything from pricing your house to sell to negotiating just the right terms so that you can move-in on 22nd instead of the 3rd so you don’t have to pay as much in taxes.

They’ve Done it Before:

The average american may go through just a handful of Real Estate transactions in their lifetime and even with these transactions it is very unlikely that will happen at a frequency that will give them any level of familiarity that can be useful. In what may be a surprising bit of information, Real Estate professionals deal with a prolific amount of Real Estate crises on a day-to-day basis. This level of comfort and familiarity is not only hugely beneficial but is practiced and experienced purely for the betterment of the consumer.

They’re Statisticians:

  • 87% of buyers purchased their home through a real estate agent or broker--a number that has steadily increased since 2001 (69%)
  • 88% of buyers used their agents again or recommended them to friends
  • Among sellers who used an agent, 83% reported they would definitely or probably use that Real Estate agent again.
  • The share of home sellers who sold their home without the assistance of a real estate agent was nine percent. Forty-four percent knew the buyer prior to home purchase.
  • 88 percent of Home-buyers used a Real Estate Professional.
  • For Sale By Owners sold at a median price of $208,700 compared to $235,000 a 13% difference.

There are thousands of dilemmas and forms and professionals that need to be dealt with and sorted through. Utilities to be turned on, Inspectors to be chosen, Lenders to...Lend. Without an intimate knowledge of the problems that follow the buying and selling of property it can be hard to navigate the waters of Real Estate. When you have an expert working for you, you ARE an expert.

This week's post is by Realtor Mel Grassel.

Posted in Choices, FSBO, REALTOR
April 15, 2015

Technology for the Home

In today's world, there is technology for everything.  It has now infiltrated your home.  Some things are a bit over the top, like heated toilet seats.  Some things, though, are just down right handy.  One of the coolest things i've seen is a Goji lock.  You can control it with your smart phone, unlock it for anyone when you are away, or see a picture of who is at your door.  It senses when you're phone is close so you don't have to fumble around for keys, but also comes with a fob for those who do not have smart phones.  When all else fails, though, it also has a old fashion key as a back up.

Another of the more common gadgets is a Nest thermostat.  It tracks your thermostat settings for a few weeks, then starts to operate on autopilot.  It knows when you're not home, but will warm up or cool down your home shortly before you return.  Same for in the evenings.  It will cool off at night then a few hours before you wake, it will start warming the house again.

There are lots of other cool internet connected gadgets that Belkin WeMo has created.  They have light switches, light bulbs, crock pots, plugs, baby monitors, and many other items that you can control with your phone. If you're out of town, you can turn off and turn on lights.  If you need to adjust the temperature of the crock pot for that roast you're cooking for dinner, you can do that too.  The plugs can track the energy used by the appliance plugged into them.  For example, a space heater in your home office.  You can turn it on remotely, it will track usage, and then when you leave the house and forget about it, you can turn it off with your phone.  Some other systems take things so far you can control your house with your voice, but WeMo system seems to keep things a bit simpler and user friendly while not costing an arm and a leg.

 

If you have any of these gadgets, we at HOMESPOT would love to hear about how they work for you.

Posted in DIY, Technology
Feb. 3, 2015

Want an extra $400 in your pocket?

With the constantly rising cost of energy, we all try to save energy in any way we can. Since heating and cooling make up about half of our energy bills, the U.S. Department of Energy reports that changing your HVAC filter can improve the efficiency of your HVAC equipment by 5% to 15%.

Imagine that savings in dollars:

Say your average utility bills total $200 a month – that could mean a savings of $10-$30 a month and up to $360 a year!

The air filter is responsible for removing particles of dust and debris so that your A/C system remains clean and functioning. Filter changes are necessary to keep your household running smoothly.

Here are five reasons to change your home air filter:

  1. Filter Clogging: When too many particles of dust and debris get caught inside your filter, it stops efficient air flow. Ignoring it will only make it worse. A filter change solves this quickly.
  2. Your Health: Imagine if you didn’t change that clogged air filter. What would happen? Bits of dust and dirt would slowly fly into your house, creating an open range for allergy and disease. Filter changes nip this threat before it can even happen.
  3. Save Money: Replacing your entire A/C system will cost you more money, when a simple filter change might be the solution.
  4. Save Energy: When your air filter has to work more due to clogging or other issues, it will use more energy. Changing your air filter is an efficient solution for saving energy and keeping your utility bill low.
  5. Easy and Fast: It is not difficult to change your filter. Remove the old one. Find out what kind of filter you have and buy a replacement at the store in the same size. It is easy to install in your A/C system.

When to Change the Filter

According to Energystar.gov, the filters on your home system likely need to be changed either once a month or once every three months, depending on the type you’re using.

Most people will change their filters at the start of a new season, when they know the equipment is going to be working its hardest. Some people, on the other hand, change it once a month – just to be on the safe side. What are the factors that determine how often the air filter should be changed?

  • What type of air filter do you have? Since each type has a different life span, use that to help determine how often to change it.
  • What is the air quality like in the house? If the air does not seem as clear or fresh as it used to, or you are having issues with allergies or frequent colds, you may need to replace your filter more often or choose a different type.
  • Are there pets in the house? If you have pets in the home, you may want to consider changing filters more frequently or choosing a type that helps with dander.
  • How many people are in the home? The more people in the home, the more dust and dirt flies around – consider changing your filters more often.

To remind yourself, make it something you do on the 1st day of the month or on a day that you normally take care of other monthly household tasks such as paying your rent or mortgage payment. Making this part of your regular routine will not only improve the quality of your home’s air, it will go a long way towards keeping your air conditioner functioning optimally for many years and saving you money!

Jan. 31, 2015

Rent Flux

College students to newlyweds find the prospect of home ownership a consideration for “someday in the future.” That’s why most of us start life on our own in a rental.  There are many benefits to renting. As a tenant you are not obligated to pay for general repairs, you know how much to pay every month so there are no surprises and a lease can be short or long term to suit your needs. 

On the downside you can’t remodel or make any changes to the property without permission from the owner. Mounting a satellite on the exterior of a rental property is just asking for trouble. Installers are looking for a paycheck and that only comes when the customer has service. Getting that service requires a mount for the dish to reach the proper angle to the satellite leaving holes in the roof or siding that cause water damage, and damages cause by the tenants are paid by the tenants.

Pets and play equipment are also a consideration. If you have a pet of any kind or plan to get a pet in the future the landlord must give you permission to do so. Failure to take this into consideration can lead to eviction and/or penalty fees or damages. And yes this includes any pet you can buy from a pet store: fish, lizards, snakes, hamsters, dogs, cats, etc. Play equipment, pools and trampolines can be a huge liability. This creates a need for liability waivers, additional insurance, and environmental considerations to protect the tenant and the homeowner from incurring problems down the road.

Finding a rental in today's market is a challenging experience. There are many fluctuations in the economy which impacts the real estate market all together. If it’s a great time to buy a house the mortgage payment may be less expensive than rent, and there might be a rental on every corner but when sales are down there will be more listings and fewer rental options.

When looking at properties to rent you may choose to rent from an individual or a property management company. Keep in mind that both are going to be looking out for the best interest of the property, as an investment, for the owner. It is beneficial to you, as an tenant, to get everything in writing before you move in. Renters insurance is also a must in either situation since the owner will have insurance on the property but not on your personal belongings. If there is damage from a fire, flood or other disaster and you are not insured the property owner is not obligated to take care of you.

 

It is also important to take care of your obligations. Rental history and references are a vital part of today's rental market. Bad history will limit your options and could leave you out in the cold.

Posted in Renting