May 12, 2023 | Real Estate
There are many do-it-yourself (DIY) home improvement projects that can be completed on a budget and still have a significant impact. Enhancing the appearance and functionality of your home doesn’t have to be costly or time-consuming.
New Light Fixtures
One simple and affordable way to update your home is by replacing old or outdated light fixtures. New light fixtures can give your home a fresh, modern look and can also help to improve the overall lighting in your living spaces. There is a wide variety of styles and price points to choose from, so you can find a light fixture that suits your tastes and budget. Keep in mind that working with electricity can be dangerous, so be sure to turn off the power before attempting any DIY electrical work.
New Cabinet Handles
Upgrading the hardware on your kitchen and bathroom cabinets can make a surprising difference in the overall appearance of these spaces. Replacing old, worn-out handles with new ones can give your cabinets a fresh, updated look. Cabinet handles come in a range of styles, materials, and prices, so you can easily find options that complement your home’s decor and fit within your budget.
New Faucets for Tubs and Showers
Another affordable DIY home improvement project is updating the faucets on your tubs and showers. Over time, faucets can become corroded or develop leaks, which can lead to wasted water and higher utility bills. Installing new faucets can improve the functionality of your plumbing fixtures and give your bathroom a more polished appearance. Be sure to research the proper installation techniques and gather the necessary tools before attempting this project.
A Fresh Coat of Paint
One of the most cost-effective ways to transform the look of your home is by applying a fresh coat of paint. A new paint color can completely change the atmosphere of a room and can help to cover up any scuffs, scratches, or stains on your walls. Painting a room is a relatively simple DIY project that requires only a few basic tools and supplies, such as paint, brushes, rollers, and painter’s tape.
Wrapping Up Your DIY Home Improvements
As you can see, there are several affordable DIY home improvements that can have a significant impact on the appearance and functionality of your living spaces. By tackling projects like installing new light fixtures, updating cabinet handles, replacing faucets, and applying a fresh coat of paint, you can refresh your home without spending a fortune. With a little creativity and effort, you can transform your home on a budget and enjoy the satisfaction of completing these projects yourself.
May 11, 2023 | Real Estate
What is PMI?
PMI (Private Mortgage Insurance) is a type of insurance that lenders may require borrowers to pay if they have a down payment of less than 20% of the home’s purchase price. The purpose of PMI is to protect the lender in case the borrower defaults on the loan.
However, once you have paid off enough of your mortgage or your home has appreciated in value, you may be able to get rid of PMI.
Here are some ways to do so:
Pay down your mortgage: If you make extra payments on your mortgage or pay more than the required monthly payment, you can build equity in your home faster and reduce the amount of PMI you have to pay. Once you reach 20% equity in your home, you can request your lender to remove the PMI.
Refinance your mortgage: If you can’t afford to make extra payments, you may consider refinancing your mortgage to a lower interest rate. This could lower your monthly mortgage payment and help you build equity in your home faster. Once you have enough equity in your home, you can request your lender to remove the PMI.
Get your home appraised: If your home has appreciated in value since you bought it, you may be able to get rid of PMI by getting your home appraised. If the appraisal shows that you have 20% or more equity in your home, you can request your lender to remove the PMI.
Wait for automatic termination: If you have a conventional mortgage, your lender is required to automatically terminate your PMI when you reach 22% equity in your home, provided you are current on your mortgage payments.
Why Do Lenders Require PMI?
Lenders require PMI (Private Mortgage Insurance) when a borrower has a down payment of less than 20% of the home’s purchase price. This protects the lender in case the borrower defaults on the loan. If the borrower defaults, the PMI will cover the lender’s losses up to a certain percentage of the loan amount, typically 20% to 30%.
Lenders require PMI because borrowers with less than 20% down payment are considered to be at a higher risk of defaulting on their mortgage. This is because they have less equity in the property, which means they have less of their own money invested in the home. If the borrower defaults, the lender may not be able to recover the full amount of the loan by selling the property.
Without PMI, lenders would likely require larger down payments, which would make it more difficult for many borrowers to qualify for a mortgage.
Note that PMI is not the same as homeowners insurance, which covers damage to the property.
PMI is solely for the benefit of the lender and does not provide any protection for the borrower. The specific requirements and procedures for removing PMI may vary depending on your lender and the type of mortgage you have. It is important to check with your lender to determine what steps you need to take to remove PMI.
May 10, 2023 | Real Estate
Buying a home comes with numerous financial planning obligations. It’s far from a turn-key operation and one of the significant challenges involves developing a working knowledge about things often outside your area of expertise.
For example, working as an educator, police officer, investment banker or office staffer does not necessarily make you an expert about home repairs or insurance coverage. Yet, the average homeowner is tasked with carrying a certain level of homeowners insurance coverage without a strong working knowledge.
Many homeowners just purchase enough insurance to cover the purchase price or take the advice of others. Both of those methods could prove wildly deficient.
Rethinking Total Replacement Costs
A distinct difference exists between a home’s purchase price, assessed value and total replacement costs. Let that idea sink in a minute. What you paid for your home and its assessed value have zero to do with what it would cost to rebuild in the event of a total loss!
If you based your homeowners coverage on purchase price or estimated value, the word that comes to mind is: “Yikes.” Here’s why.
Construction costs are based on prevailing market prices that include building materials and labor costs. These vary from region to region and can peak due to materials shortages and shifting prevailing wages. National home-building averages run anywhere from $117 to $125 per square foot. But, even as you read this article, that could change.
Beyond the fundamentals of calculating home construction costs on a square-foot basis, consider that rebuilding your home means that some type of catastrophe occurred. Whether that was a hurricane, tornado, flooding, fire or another disaster, there will likely be cleanup costs.
Before starting new construction, the damaged property will likely need to be razed and damaged materials removed. That comes at a cost.
Building permits and licenses will come at an additional cost. An architectural blueprint and design may need to be secured and that also comes at a cost. The permitting process can be challenging and that could result in you having to rent a temporary residence while your home is rebuilt. Obviously, there are plenty of unforeseen expenses.
Specialty Building Costs
Although average building costs per square foot are a viable standard measure, many homes enjoy specialty items.
Consider that you own a home built decades ago. The high-quality building materials used in construction may be considered specialty items today. They may inevitably be far more expensive than common building materials. If you want the home fully restored, that could cost more than the estimated average.
Accents such as rounded archways or plank-board floors are also more expensive to replace than many average materials. Those are all considerations that need to be tallied when insuring a home.
How To Recalculate Homeowners Insurance
Take the time to calculate the square footage of your home against average construction costs in your area. Factor in specialty items, permitting, razing and other potential hidden costs. Add 10-20 percent. According to some insurance experts, the average home is underinsured by upwards of 22 percent. After the carrier has paid out the coverage limit, overages could become out-of-pocket expenses.
Don’t hesitate to consult with a reputable home builder or insurance expert. Full coverage means accurately accounting for all of the rebuilding costs.
May 9, 2023 | Real Estate
Comparing mortgages is a crucial step in the process of buying a home or refinancing an existing mortgage. Here are some reasons why:
Save Money: Comparing mortgages can help you save money by finding the best interest rates and terms available. A lower interest rate can mean thousands of dollars in savings over the life of a mortgage.
Avoid Pitfalls: By comparing mortgages, you can avoid pitfalls such as hidden fees, penalties, or other unfavorable terms that can cost you money and cause financial stress.
Negotiate Better Terms: If you have a good understanding of what’s available in the mortgage market, you can negotiate better terms with lenders.
Peace of Mind: Comparing mortgages can give you peace of mind that you are making the best financial decision for your situation.
Each person’s financial situation is unique, so finding the right mortgage that fits your individual needs is important. Comparing mortgages can help you find the right type of mortgage, such as a fixed-rate or adjustable-rate mortgage, that suits your budget and financial goals. It can be a complex process, but here are some general steps you can take to help guide you in your search.
Determine your budget: The first step is to determine how much you can afford to borrow. Consider your monthly income, expenses, and savings to figure out how much you can comfortably afford to pay each month towards your mortgage.
Shop around: Look at different mortgage options from different lenders to compare interest rates, fees, and terms. Don’t just go with the first offer you receive, as there may be better options available.
Consider the type of mortgage: There are different types of mortgages available, such as fixed-rate mortgages and adjustable-rate mortgages. Each type has its own advantages and disadvantages, so research and consider which option would work best for your needs.
Think about the length of the loan: Mortgages typically come in 15- or 30-year terms, but other options may be available. Longer terms mean lower monthly payments, but more interest paid over time. Shorter terms mean higher monthly payments, but less interest paid overall.
Check your credit score: Your credit score can affect the interest rate you qualify for, so make sure it’s in good shape before applying for a mortgage.
Get pre-approved: Getting pre-approved for a mortgage can give you a better idea of what you can afford, and it can also help you be taken more seriously by sellers when making an offer on a home.
Remember, taking the time to research and compare your options can help you find the right mortgage for your needs and budget and is an essential step in the home-buying process, and it can help you save money, find the right mortgage, avoid pitfalls, negotiate better terms, and have peace of mind. A mortgage broker can help you find and compare mortgage options from different lenders, which can save you time and potentially help you find a better deal.
May 5, 2023 | Real Estate
A land survey is an essential tool that is used to determine the exact boundaries of a piece of land or property. It is often required when buying, selling, or dividing land, and is also important for resolving property line disputes.
Process: The process of land surveying typically involves a licensed surveyor visiting the property to take precise measurements and create a detailed map or plan of the land. This may include identifying any physical features of the property, such as trees, buildings, or natural landmarks, as well as any easements or encroachments.
Types: There are several different types of land surveys, each with its own specific purpose. For example, a boundary survey is used to establish property lines, while a topographic survey is used to map the physical features of the land. Other types of surveys include ALTA/NSPS surveys, subdivision surveys, and construction surveys. It is important to select the appropriate type of survey based on the specific needs of your project or property.
Land Surveys Can Be Used For Insurance Purposes
Land surveys can be used for insurance purposes. A land survey can provide valuable information about the physical characteristics of a property, such as the location of buildings, trees, and other features. This information can be used by insurance companies to assess the risk of insuring the property and to determine appropriate coverage and premiums.
For example, if a property is located in a flood zone, a land survey can identify the exact location and elevation of the property, as well as any nearby bodies of water or drainage patterns. This information can be used by insurance companies to assess the risk of flooding and to determine appropriate flood insurance coverage.
Similarly, if a property is located in an area prone to wildfires, a land survey can identify the location of any vegetation, structures, or other features that may increase the risk of fire damage. This information can be used by insurance companies to assess the risk of fire and to determine appropriate coverage and premiums.
Does a fence help a land survey?
Yes, a fence can help a land survey by providing a physical marker of the property boundary. A land surveyor can use the fence to determine the location of the property line and ensure that the fence is placed within the boundaries of the property. This can be particularly useful in situations where the property line is not clearly defined or where there may be disputes over the location of the boundary.
It is important to note that a fence alone is not sufficient to establish the legal boundary of a property. In order to accurately determine the property line, a land surveyor will need to conduct a thorough survey that considers all available evidence, including property records, physical markers, and other relevant factors. Additionally, it is possible for a fence to be installed in the wrong location, either intentionally or accidentally, which can result in boundary disputes and other legal issues. Therefore, while a fence can be a useful tool in a land survey, it should not be relied on exclusively to determine the property boundary.
Overall, a land survey can provide valuable information for many purposes and can help property owners make informed decisions about insurance coverage and risk management.
May 3, 2023 | Mortgage, Real Estate
When it comes to buying or selling a home, working with an experienced real estate agent can be the difference between success and failure. Not only do agents possess access to the Multiple Listing Service (MLS) — a comprehensive database of properties for sale — they also provide invaluable insight into local markets, saving buyers and sellers time by handling many of the tedious tasks associated with transactions.
Access To The Multiple Listing Service: MLS
From scheduling showings and negotiating offers to managing paperwork from start-to-finish, having an experienced professional on your side makes all the difference in navigating even complex deals without any hassle. Furthermore, their knowledge allows them to source homes that match exactly what you’re looking for — saving hours of research at no extra cost!
A Real Estate Agent Saves Time
Real estate is never easy, but having someone who knows how this industry works inside out gives you peace of mind throughout every step along the way. Whether you’re buying or selling a property; entrusting these responsibilities to an expert means allowing yourself more free time while knowing that your transaction is in capable hands.
An Agent Can Help Identify Potential Concerns With The Home
For buyers and sellers alike, partnering with a qualified real estate agent can make all the difference when it comes to navigating the complex world of real estate. From uncovering potential issues that may have gone unnoticed to negotiating for better prices on both ends – an experienced agent has the expertise needed to simplify and expedite transactions while ensuring their clients get what they deserve.
Save Money And Negotiate On The Final Price
A knowledgeable professional can spot problems such as structural damage or legal hiccups that may be hidden from novice eyes; helping buyers avoid costly repairs or fees down the line. Sellers, too, benefit from working with an agent who knows how to maximize exposure of their property in order to attract potential buyers, ultimately fetching them top dollar for their home.
Work With A Qualified Real Estate Agent
Real estate agents offer countless advantages over going it alone when buying or selling a house; understanding local markets, saving time by streamlining processes, and employing savvy negotiation skills are just some of them! Ultimately, investing in an expert partner is often well worth it — so don’t hesitate to ask for help today if you’re looking into making your next move!
