BuyItSellItLeaseIt.Com

Can You Afford to Buy a House?

lauren — Mon, 07 Mar 2011 21:54:28 +0000

Can You Afford to Buy a House?

Be sure to factor in all the costs

By Michele Dawson

Although the thought of paying a mortgage is more enticing than paying rent, it’s important to understand all the costs involved in buying and owning a home as you determine whether you can afford to join the ranks of homeowners.

Potential buyers sometimes forget to factor in the down payment, homeowners insurance and the possibility of depreciation, as well as the costs associated with closing the transaction, moving, purchasing major appliances, and home, landscape and pool maintenance, not to mention furnishings and design accessories once you move in.

The days of calling up the landlord to fix your problems come to an abrupt halt when you’re a homeowner. You’ll be responsible for everything from malfunctioning appliances to leaky faucets to broken heating and air conditioning units and everything in between. And if you buy an older home, you’ll probably eventually encounter costly repairs, such as replacing the roof or windows.

To determine whether you can afford to buy a home, you should do the following:

1. Determine the property value of homes that interest you. The property value (what the home is worth) is determined by comparing the prices of homes recently sold of similar size in the same neighborhood. Your real estate agent will be able to provide this information to you.

2. Review different mortgage loan types and compare their required down payment amounts to the money you have available. Down payments, based on a percentage of the value of the property and determined by the type of mortgage you select, typically range from three to 20 percent of the property value. Don’t forget to factor in private mortgage insurance, a policy that allows mortgage lenders to recover part of their financial losses if a borrower fails to full re-pay a loan. Mortgage insurance makes it possible to buy a home with as little as 3 percent down. Usually, the lower the down payment, the higher the PMI, which typically will cost somewhere between $40 and $125 a month.

3. Get an estimate of your closing costs, including points (the dollar amount paid to a lender for obtaining a lower interest rate on a loan—one point is one percent of the loan amount), taxes, recording, inspections, prepaid loan interest, title insurance (a policy that insures a home buyer against errors in the title search; cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller) and financing costs from your mortgage lender or a real estate professional. These will generally add up to between 2 and 7 percent of the property value. You’ll receive an estimate of these costs from your lender after you apply for a mortgage.

4. Add the down payment requirements and the closing costs together to determine the amount of money you’ll need right off the bat. But you’re not done yet.

5. Think about the actual move. Will you hire a moving company or rent a truck? Either way will cost you. The more stuff you have, the more it will cost.

6. Property taxes. Many lenders will require an impound account in which monthly payments for property tax (and often insurance) are paid together with the monthly mortgage payment. You can figure your average annual tax rate will be about 1.5 percent of the purchase price of your home.

7. Next, budget for maintenance and repairs. HouseMaster, a home inspection company with 300 franchises nationwide, said that based on a study that evaluated 2,000 inspection reports, the typical costs of major repairs are:

Roofing: $1,500 to $5,000
Electrical systems: $20 to $1,500
Plumbing systems: $300 to $5,000
Central cooling: $800 to $2,500
Central heating: $1,500 to $3,000
Insulation: $800 to $1,500
Structural systems: $3,000 to $1,500
Water seepage: $600 to $5,000

Once you crunch the numbers and find you come up a bit short, investigate ways to reduce or creatively fund your down payment—it can come from a variety of sources. Check with your realtor or lender to find out what’s available.

You’ll also need to factor in the cost of homeowners insurance. In addition to the type of construction, age of the home, your credit history and past insurance history, new issues like litigating costly toxic mold cases are raising homeowners insurance rates.

In fact, the National Association of Insurance Commissioners reports that homeowners will spent an average of $822 on homeowners insurance in 2007, the last year data was available.

In your final analysis of whether you can afford to buy a home, you’ll want to weigh the costs with the financial benefits—a consistent mortgage payment (unlike rent, which can increase), the tax benefits (you can deduct, in most cases, mortgage interest, closing costs, and property taxes), and the all-important appreciation factor—the rate of increase in a home’s value.

And of course, you’ll want to weigh perhaps the biggest benefit of all—having a place to call your own.

How to Use Comparable Sales to Price Your Home

Doug — Tue, 18 Jan 2011 13:52:54 +0000

How to Use Comparable Sales to Price Your Home

Before you put your home up for sale, use the right comparable sales to find the perfect price. Read

Visit houselogic.com for more articles like this.

Appliance Maintenance: Water Heaters

lauren — Fri, 24 Sep 2010 20:53:48 +0000

Appliance Maintenance: Water Heaters

By: Douglas Trattner

Published: August 20, 2010

Keep your water heater running efficiently and reliably with this simple maintenance routine.

Insulating your water heater with a fiberglass jacket will improve efficiency. Image: Mr. Rooter

Depending on a homeowner’s water quality, a hot water heater can be expected to last eight to 12 years, says Frank Czeronka, a licensed master plumber and Mr. Rooter franchise owner. Completing the following routine maintenance schedule, however, can greatly extend the unit’s lifespan.

Here’s a list of maintenance tips to keep your water heater running efficiently and reliably:

Always adjust the thermostat to 120 degrees to avoid the risk of scalding.

Always maintain 2 feet of clearance around the appliance unless the manual specifically states otherwise.

Annually, flush the heater to remove the sediment and debris in the bottom of the tank. Hook up a garden hose to the drain valve and run until the water is clear. This also makes the unit operate more quietly.

Annually, test the temperature-pressure relief valve by quickly discharging it two or three times. Following the testing, keep an eye out for small leaks from the valve.

Every three to five years, examine the sacrificial anode rod by loosening the hex head screw and removing it. If more than six inches of the core steel wire is exposed, replace the rod for abut $20.

Insulate older units with a fiberglass jacket to improve efficiency, being careful to avoid contact with the flue. Newer units already are optimized for peak energy efficiency.

When leaving town, adjust the thermostat on gas heaters to “Vacation” setting, which maintains the pilot light without heating the water.

2171 Algiers St, Union, KY 41091 $125,900

lauren — Wed, 22 Sep 2010 17:55:14 +0000

All New and 4 years old! NOT A SHORT SALE. Priced way below market. All new carpet and paint. All you have to do is move in! Custom Blinds installed throughout and is located in a coveted school district.

Contact Jim Ferguson at (859) 907-5466 or email jimmy5@fuse.net

4341 Huntington Ave, Covington, KY 41015 $69,900

lauren — Wed, 22 Sep 2010 17:52:49 +0000

No Work Needed! *Ready to Move-In* Newer Roof, Windows, Furnace, Siding, Driveway, Walkway* Remodeled Kitchen and Bath! Come & See! You won’t be disappointed! Includes 2-10 Home Warranty!

Contact Doug Leugers at (513) 300-7653 or email doug@buyitsellitleaseit.com

1628 Ashley Ct, Florence, KY 41042 $94,900

lauren — Wed, 22 Sep 2010 17:45:32 +0000

Very well maintained condo with all the amenities that Tara has to offer. 2 pools, clubhouse and walking trails. Minutes from the expressway. Lower level unit offers walkout to private patio backing up to green space. Private secured entrance in a great location.

Contact Jon Weaver at (859) 743-3559 or email jonpweaver2@yahoo.com

31 Clay St, Erlanger, KY 41018 $120,000

lauren — Mon, 20 Sep 2010 19:07:27 +0000

*Ready to move in home situated on a large corner lot minutes from the I-75. Many new features await inside and out. New Champion energy efficient windows w/lifetime warranty.Open kitchen complete with all appliances; washer and dryer stay.
*Large corner lot, great yard for kids or the dog!
*Side entry garage with new driveway and deck shown here. Plenty of parking with the corner lot.

Contact Jon Weaver at (859) 743-3559 or email jonpweaver2@yahoo.com

7 Steps to a Stress-free Home Closing

lauren — Fri, 17 Sep 2010 19:46:16 +0000

7 Steps to a Stress-free Home Closing

By: G. M. Filisko

Published 2010-02-10

By doing homework in advance, you’ll understand what you’re asked to sign when you close the sale of your home.

Do a final walk-through of your house before closing to make sure nothing has changed.

You’ve already cleared several hurdles by finding the right home, negotiating the best price, and securing favorable financing. The last obstacle on your homebuying track is the closing, which can be both tedious and tense. By knowing what to expect and doing some legwork, you can put your closing behind you. These seven steps will guide you through a smooth closing.

1. Set a closing date
Your real estate agent will work with the seller’s agent and title company to schedule your closing date. Be sure it meshes with the end of your lease or the sale of your existing home and a time when you’ll able to play hooky from work. If you’re tight on cash, schedule your closing for the end of the month because that’s when you’ll have to pay the least amount of interest at the closing table.

2. Gather your funds
You may be required to bring funds to the closing. If they’re not easily accessible, arrange early to transfer them to a liquid account to avoid last-minute problems. If the title company requires the funds in the form of a cashier’s check, also leave time to stop by the bank and pick one up.

3. Purchase title insurance
Title insurance protects the policyholder against trouble with a home’s title. Your lender will insist that you purchase a policy to protect it. You should also consider purchasing what’s called an owner’s title policy from the same insurer, which protects you from fraudulent claims against your ownership and errors in earlier sales. In some areas, sellers traditionally pay for the buyer’s title policy. Shop online at Closing.com, EasyTitleQuote.com, and FreeTitleQuote.com. If your home has been sold within the past few years, ask the prior owner’s insurance company for a reissue discount.

4. Line up homeowners insurance
Get quotes and compare policies to be sure coverage will be in effect by your closing date. An annual policy should run $500-$1,000, depending on your home’s size, age, and amenities. If you live in an area where natural disasters occur, like earthquakes, floods, or hurricanes, you’ll need separate insurance to protect your home.

5. Review your good-faith estimate and HUD-1 settlement sheet
Your lender must provide a good-faith estimate of your closing fees. Some of those fees can’t change, and others can rise by 10%. Before you go to the closing, read your good-faith estimate, compare it with your HUD-1 settlement statement, and question any fees that increased.

6. Do a walk-through
Schedule an appointment to walk through the home one last time just before your closing. Make sure repairs you requested have been made, no major changes have occurred since you last viewed the property, and that the sellers left anything they agreed to leave and took all their belongings.

Also test electronics and appliances, such as the doorbell, dishwasher, washer and dryer, and oven, to ensure they’re functioning properly. Do the same with the hot water heater and heating and air conditioning systems. Walk the yard to be sure no plants or shrubs have been removed.

7. Resolve issues identified in your walk-through
If your walk-through uncovers problems, you can delay the closing until the seller corrects them. But that’s often not feasible because your lease is probably over and you’ve already scheduled movers. Another option is to negotiate a discount to your sales price to cover the cost of the work needed. If the air conditioning is on the fritz and a contractor says the repair will cost $500, ask that the sales price be reduced by that amount. If you make that request at closing, however, be ready for a delay while the title company redoes the paperwork.

A third option: Have the title company hold a portion of the seller’s proceeds in escrow until the dispute is resolved. Once that happens, the funds will be released to you or the seller, depending on the outcome.

Open House- 718 Berlander Dr, Independence, KY

lauren — Wed, 15 Sep 2010 15:55:48 +0000

When: Monday, September 20, 2010 6:00 PM-6:30 PM

Where: 718 Berlander Dr, Independence, KY

3br 2.5 bath rents $1,200/mo $1,200/deposit, nice 2story.

For more information, contact Doug Leugers at (513) 300-7653 or email doug@buyitsellitleaseit.com

Open House – 2414 Madison Ave, Covington, KY

lauren — Mon, 13 Sep 2010 20:08:59 +0000

Open House

When: Friday, September 17, 2010 5:30 PM-6:00 PM

Where: 2414 Madison Ave, Covington, KY

Rent is $800/mo 3bedroom 1bath convenient location. Nice rejuvenated 2 story right on the busline. Convience to shopping & downtown. Walking distance to schools, nothing to do but move in!