RENTING A HOME VS. BUYING A HOME

Some of you will remember the quote from a Shakespeare play where we hear: “To be or not to be; that is the question”. One important question for those looking for homes in today’s real estate market is whether to buy a home or rent a home. Here a few things to consider as you consider that question:

HOW LONG WILL YOU WILL BE IN THE HOME?- As many people have said, today is a great time to buy a home. Home values are down, home supply is high, and mortgage rates are low. While all of that seems to be a great reason to buy a home, it might not be best for you. If you are anticipating moving to a new community or you are thinking about “upgrading” to a bigger home in just a couple of years, it might be best to continue to rent a home. It will take a couple of years to “earn back” your home closing costs. Since no one how long this buyers market will continue, it might be that you cannot sell your home if you are only waiting a couple of years before you will wanting to sell again.

DO YOU ENJOY MAINTAINING A HOME OR YARD?- When you rent a home or apartment, a landlord will see that the property is maintained. They may also maintain the yard. If you do not enjoy yard work or your work schedule is such that you do not have the time, it might be best for you to rent a home. One alternative if you do want to buy would be to live in a townhouse and/or condo where someone else maintains the yard.

OWNING YOUR OWN PLACE VS. HELPING BUY SOMEONE ELSE’S PLACE- Is owning a home important to you whatever might be the reason? Do you mind that a landlord is buying a house with your money? Does that matter to you?
Best wishes in your decision.-- Randy Wall, Lora Lee Properties

INEXPENSIVE TASKS THAT CAN SELL YOUR HOME

It is a buyer’s market in real estate right now. Home sellers are competing with foreclosures, short sales, and the like in selling their home these days. In this competitive market, home sellers need to do all they can to give themselves an edge in selling their home.
Here are a few inexpensive things that you can do before you put your home on the market to make it stand now and really shine:

LANDSCAPING- Make sure that your home has good curb appeal by making sure that you keep the lawn mowed, trim shrubbery, and plant flowers. Remove any unsightly items such as old furniture and trash. These tasks will costs you only a few hundred dollars and they will make your home look appealing.

PAINT THE INTERIOR AND/OR EXTERIOR- Interior or exterior painting is one of the most inexpensive things that you can do to make your home stand out. You can buy many paints for under $25 a gallon, and most people can paint (though not all people like to paint). Be sure to fill any interior wall blemishes and nail holes before you paint. Paint can also neutralize any odors in your house. Be cautious about your selection of paint colors. A more neutral color works best as it makes the interior of the house look brighter.

CLEAN THE CARPET OR FLOORS- If you have carpet, you will definitely want to clean the carpet before you show it to prospective home buyers. A good cleaning of your carpet will remove many odors and stains. You can rent carpet cleaning equipment from local grocery stores, but I have found it a better investment to let a professional clean your carpet. The carpet in most homes can be cleaned for only a few hundred dollars.

CHANGE LIGHT BULBS OR LIGHT FIXTURES- To make your home look as bright and cheerful as possible, consider putting up some new light fixtures. You can buy a light fixture many times for less than $75. If you do not have the time and know-how to do this yourself, consider putting in a higher wattage of light bulbs. This will make your home look brighter.

DE-CLUTTER YOUR HOME- Most people (myself included) have too much stuff in their home. I know that I am bordering on hurting feelings, but remember that home buyers are coming not to see your collection of trolls or pictures of the children. No, they are coming to see how your house can become their new home. Consider storing some furniture and the like that may distract them from seeing the fine house you have to sell.

The combined cost of all these tasks can be less than one thousand dollars. Though that is not pocket change, these tasks can pay big dividends in getting your house sold. Best wishes.- Randy Wall, Lora Lee Properties

Go Team

I wrote a few weeks ago about persons that you will want to have on “your team” if you are buying or selling real estate whether you are a homeowner or investor. I spoke about the importance of having an attorney, realtor, and contractor on your team. Their skill and expertise are critical.

Though an attorney, realtor, and contractor are important team members, there are also some other team members you need as follows:

HOME INSPECTOR- Whether you are a buyer or seller, have a licensed home inspector on your team. A home inspector examines thoroughly the house and looks far beyond the carpet, paint, and the number of rooms. They provide an objective viewpoint about the condition of the roof, HVAC system, and the like. Why most people think of using home inspectors before buying a house, they also can a good friend to home sellers . A home inspection report can give persons interested in your home piece of mind about what they are buying.

APPRAISER- Most people only think of appraisals when they are buying a house and/or financing it. An appraisal gives an objective view of what a property is worth right now based on the recent sales and the characteristics of the property. No one should want an appraiser to tell them what they want to hear, but what they need to hear. Like a home inspection report, an appraisal can help persons selling their home to “price it right”.

INSURANCE AGENT- You will also want a good working relationship with an insurance agent. If you an investor or landlord, you will want to make sure that you have insurance not just on your property but liability insurance against yourself.

ACCOUNTANT- Perhaps it important that I offer full disclosure that my wife is an accountant. An accountant is an important member of your team not just for counting income and expenses, but for helping you understand the tax consequences of buying and selling property.

If you are looking for members of your team, solicit recommendations from other homeowners or real estate investors. Feel free to interview the prospective team members and ask questions. Good luck in your search. Go team.- Randy Wall, Lora Lee Properties