What Could You Stand to Gain by Owning Real Estate? Pt. 6

In today’s final installment on the benefits of owning real estate, 
I’ll discuss the tax benefits associated with homeownership

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Today’s discussion is the final installment in our six-part series about the advantages of owning real estate. If you’d like to brush up on our previous videos, visit our blog to watch parts one through five.

On top of all the other benefits discussed, owning real estate affords you a range of tax-related benefits. Many people are concerned with how the new laws regarding tax benefits on the interest paid on one’s house will affect their investments, but those legal changes shouldn’t affect you in Reno.

The interest you pay is deductible on your taxes—for more thorough detail on how that works, consult your CPA. You'll receive a statement from your lender, after which, all you have to do is use that statement to write off your interest on your tax return.

Further still, everyone needs to live somewhere. As long as you’re making monthly payments to live somewhere, why not pay your own mortgage down, rather than a landlord’s?

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On top of all the other benefits discussed, owning real estate affords you a range of tax-related benefits.

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Ideally, you’ll live in a house for at least five to seven years, during which time you can pay a good portion of your loan down—or more, if you pay extra each month. If you look at your 30-year amortization schedule, you’ll be amazed at how much money you save in interest payments by making an extra payment every year during the life of your loan. Also during that time, your home will appreciate in value, leaving you with a big chunk of money.

There are more benefits to being a homeowner, and if you’d like more specifics or have any questions, reach out to us. We’d be happy to sit down and talk about how you can benefit from owning real estate. We hope to speak with you soon.

New vs. Existing Homes

 

When it comes to deciding whether to buy an existing home or building a new one, there are a lot of variables to think about. Here are my thoughts about choosing what to do.

 

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Today’s topic is two-fold: I’m asked all the time if it’s cheaper to buy or build a house, and also whether it’s better to buy a new or existing home. I’ll be discussing the answers to both of these questions.

“Is it cheaper to buy a house, or build it from scratch?”

A pro of building a house from scratch is that you are allowed to pick the details and features that you want, such as the floor plan and certain other amenities. I always think it’s a little more expensive to build a home, and I myself wouldn’t look forward to picking from the thousands of little details necessary when building a home.

With the events that happened recently in Florida, Texas, and California, I believe hiring people to do the work will be more expensive than normal, as will the cost of materials. So many people need to have their houses rebuilt due to hurricanes, floods, and wildfires.

“Is it better to buy a new home, or an existing home?” 
 

New construction is a little like buying a new car. You’ll have to pay a premium because it’s a brand-new property, no one has lived in it, and projects like landscaping will need to be done after the fact. If you can find a similar home that’s maybe three to five years old in a similar neighborhood, you’ll find a lot of those things have already been taken care of.

It all depends on what your specific needs are and what you’re willing and able to pay for.

There are a lot of variables to consider when you’re thinking about buying versus building, and new versus existing homes. It all depends on what your specific needs are and what you’re willing and able to pay for.

If you’re trying to weigh the options for these scenarios, let me know. I know a bunch of people who have recently built homes from scratch. I’ve also got clients that are buying existing homes. We’ll always give you advice on which option is best for you.

Give us a call, send an email, or make an appointment and we can walk you through those different topics. Hope to talk to you soon!

Why You Should Consider Buying Over Renting

 

Many people decide to rent a home instead of buying one because they don’t know enough about the process. We hope to shed some more light on this today.

 

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In the last week, I’ve probably talked to three or four different agents who are looking for a home for their clients. They aren’t looking for a home to buy, though- they are looking for a home to rent.

The rental market is as good as it has ever been for investors. Rent is at an all-time high and people are having a difficult time finding a place to rent, especially under $1,000.

If you’re in the market for a new place to live, you might want to consider buying a home as an option. A lot of people are hesitant about buying because they don’t know how long they will be in the home for. However, even if you’re only there for a few months, we can still get you a home where your monthly payment will likely be cheaper than what you would be paying in rent. If you end up needing to move, we can just rent the house out and cover your payment with that rent.

Every situation is different.

When someone is unable to buy a property in our current market for whatever reason, they turn to renting. However, you won’t be able to control your situation unless you buy. Rent keeps going up each year, but locking in a rate for a 30-year mortgage now means that your monthly mortgage payment will remain flat for the next three decades. Think about it.

Every situation is different. If you have any questions for us or you’re not sure if you can afford to buy a home, we’d love to sit down with you and have a conversation to flesh things out.

If you have any other questions for us about real estate, I’m always here to answer them. Just give me a call or send me an email. I look forward to hearing from you.

How to List One Property While Looking for the Next

 

Making the transition between homes can be difficult. Here are just a few tips on how to buy and sell at the same time.

 

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I get asked a lot about the process of buying and selling a home at the same time. Many people refer to this as a “contingent purchase.”

There are a few ways this can be done. What typically happens, though, is that I get a call from someone who already owns a home and needs to sell that current property before they can move on to the process of buying a new one.

In circumstances like these it’s important to keep in mind that your offer is stronger if your home is listed for sale and is further along in the process.

This is especially true if things like inspections and appraisals are already taken care of. The further along you are in completing things listed among your contingencies, the better your chances are of getting your offer accepted by another seller.

Also, even if you can afford to buy a home without the purchase being contingent on the sale of your current house, be cautious in doing so.

Your offer is stronger if your home is listed for sale and is further along in the process.

Something I recommend is getting out there and making sure that what you’re looking for is available somewhere on the market before listing your home.

Obviously, everyone's situation is going to be different. The amount of equity you have in one property or another, for example, can affect some of these decisions.

There is also the consideration of where you are going to live between the sale of one home and the purchase of the next. What many people do to avoid this uncertainty is to rent back their old property while looking for the next. Using a rent-back agreement can give you some extra time to move out of a home.

However, rent-backs are ideally kept to a short period of time.

So if you have any other questions or want more information, feel free to get in touch by giving me a call or sending an email. I look more forward to hearing from you soon.

Are You Financially Prepared to Buy a Home?

 

Why should you talk to a lender early on in the home buying process? I’ll discuss getting your financial ducks in a row today.

 

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If you want to buy a home, it’s important that you get all of your financial ducks in a row as quickly as possible. 

Why? 

Inventory is extremely low in our market, especially in the lower price points under $300,000 and even up to $350,000. If a buyer has not already been to a lender and supplied the necessary documents for a pre-approval, it makes it more difficult to get your offer accepted.

Getting pre-approved will make your offer stronger.

The first thing a seller will ask when you submit an offer is whether or not you have been pre-approved. Getting pre-approved just puts you in a stronger position to make an offer. 

After all, the seller knows that the lender has gotten all of the documents they need and that your finances are all in order. You will probably need to send updated paystubs to your lender throughout your home search. 

The other benefit of getting pre-approved is that you will have a better idea of what your house payments will be. You may get pre-approved for more than you can afford to spend. Property taxes and HOA fees can dramatically impact your monthly payment, so it’s important to have an idea of what kind of monthly payment you can afford. 

If you have any other questions about preparing for your home search, give me a call. I would be happy to help you!

What Happens When You Buy New Home Construction?

 

Buying new home construction involves juggling a lot of different things, which is why contacting a Realtor like us before you do anything is crucial.

 

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We typically get a lot of questions about purchasing new home construction, so today I wanted to clarify a few things for you concerning this topic.

If you’re a buyer trying to decide between buying new home construction or an existing home, the first thing you must do is contact a Realtor so they can consult with you about the pros and cons of each choice.

If you decide to go the new home construction route (and we’ve already had quite a few people do so this year), the next step involves working with that Realtor so they can get you registered and organized and consult with you over what make sense as far as upgrades, lot sizes, what you should purchase through the builder, what things you can do after the fact, etc.

If you’re considering new home construction, contact us first so we can advise you.

What if—in addition to buying a new construction home—you also have a home to sell? In that case, the builders will have different questions for you regarding when your home goes on the market, how soon you can sell it, and other concerns of that nature. Obviously, you don’t want to sell your old home before you have a new place to live.

There are many different dynamics to this process, so if you have any further questions, please don’t hesitate to give us a call. We hope to hear from you soon, and we’d be glad to help.

Are You Ready to Buy in Northern Nevada?

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The real estate market in Northern Nevada is fairly competitive right now, especially in certain price points. However, to determine which price point is right for you, you’ll have to get pre-approved by a mortgage lender. Once you’ve spoken with a lender, you’ll have a better idea of what you can afford to buy. Furthermore, most sellers will not even look at your offer if you haven’t spoken with a lender.

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Interest rates are low, but will likely be rising.

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When our market tanked a few years ago, it left a lot of people in poor credit situations. If you’re rebuilding your credit from that time period, please contact us. We know a lot of good lenders in the area that could help put you on the path towards homeownership again.

With interest rates currently so low, it’s a great time to lock in a low rate on a home. You could save thousands of dollars in interest payments over the lifetime of your loan. Contact us soon if you’re interested in buying. Rates may be rising soon!

Choosing the Best Lender For You In Nevada

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If you’re thinking about buying a home, do you know how to best find a mortgage lender?

In today’s world there are a lot of different places and people doing mortgage loans. You have the big banks like Wells Fargo and US Bank, then you’ve got what I like best: mortgage lending companies that are regional or local.

Then you’ve got the online option. I saw a commercial on TV the other day for a digital mortgage company, and I wasn't even sure what a digital mortgage company was!

To me, there are some things you need to know, and that’s why I like regional and local lending companies. If you give us a call, we can give you a referral for somebody that we know can take good care of you.

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You need to consider both fees and interest rates.

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You also need to consider fees and interest rates. Just because someone has a better interest rate doesn’t mean it’s going to be a better deal over time. You also need to figure out if they consistently close on time.

Here in Nevada we have lots of local loans like rural housing loans and other things that an online lender or big bank might not be aware of. I like to be sure that if you have a problem, you can walk into an office or pick up a phone and communicate easily about any and all questions.

Give us a call or reach out to us in any way and we can set you up with everything you need to know. We look forward to hearing from you!

What Happens After Your Offer Is Accepted?

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You’ve made an offer on a home. What happens after your offer gets accepted? Today, I’m going to answer that specific question.

Right off the bat, make sure that the buyer, seller, both agents, title company, and lender all get copies of everything. That way, everyone can get started on their duties right away and we can open up title and escrow.   

After that, the earnest money needs to go to the title company by the next business day. From there, the main two things that happen are the home inspection and the appraisal. Again, talk to the home inspector and appraiser right away so everything is done within the timeline specified by the contract.

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Get all your paperwork in ASAP to stay on schedule.

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Depending on what kind of house you buy, you may have additional inspections. When the inspections come back, the buyer and seller will negotiate repairs. You might also have to do a re-inspection to ensure that repairs have been made properly.

Once the seller moves out of the property, the buyer will go on a walk through to make sure everything is in order. For example, make sure all the appliances the seller promised to leave behind are there.

If you have any questions about the closing process or real estate in general, give me a call or send me an email. I would be happy to help you!

How to Get Started Investing in Northern Nevada Real Estate

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Today we are answering a question that we get a lot from clients, “How do I get started with investing in Northern Nevada real estate?”

There are a lot of preliminary questions you need to ask yourself first before deciding to invest in a property. First, you have to figure out what kind of property you want to buy. Is it a single-family home? A condo? Then you have to figure out whether you want to manage the property yourself or not. We manage roughly 100 single family homes at a given time.

After we’ve done this, we can sit down and hash out the details. We’ll go over things like how much you need for a down payment, what your rent will be, what areas in town are good for rental properties, and we are pretty well versed on that. We are good at being able to give you an accurate estimation of what the home will rent and sell for, and whether it will be a good investment for you.
 

However, the first thing you need to do to begin the process is to give us a call so we can talk about your specific situation and get a plan together for you to gain wealth through real estate. Give us a call or send us an email if you have any questions for us. We look forward to hearing from you!

What Should You Expect from the Northern Nevada Buying Process?

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Many buyers ask us how many homes they should view before they make an offer on one. While it varies on a case to case basis, it usually depends on all the information that we gather before the buyer looks at a single property.

With each buyer who works with us, we invite them to the office to have an in-depth discussion with them about what they’re looking for specifically. What are the most important features of a home? Is it the location? The size? The price? Or is it something else? Every buyer has a different set of criteria, and in order for us to find the best possible homes for you and your family, we need to gather this information up front.

Once we have all your preferences down, we being to set up an automated home search. It’s better if we set the search up since we have access to the MLS; many home search sites are outdated and have inaccurate information. The number of homes we actually show a given buyer is completely dependent on personal preferences. Some buyers I’ve shown only one house when they made an offer, others I had to show over ten! 

If you’re thinking about buying, and you want the process to be as painless as possible, please don’t hesitate to reach out to us. We would love to have a meeting with you so we can get the home search off on the right foot! We look forward to talking soon.

Renting vs Buying in Northern Nevada

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A lot of clients ask me about the upsides of owning a home. For one, monthly mortgage payments are often far cheaper than monthly rental payments. Plus, when you rent, you're really just throwing your money away every month. 

If you owned a home those payments would be going towards paying back the home loan, which is a direct investment in your future. Also, you never know when rental rates will increase, but your mortgage will always be the same monthly amount. Rental rates are increasing in our area, so be prepared to pay more if you have more short-term plans for living here.

When you own a home you can also live as you see fit. You can decorate your home the way you want, have as many pets as you want, and paint the rooms like you want. You do have to accept the responsibility of maintaining a home, but that's just part of being a homeowner.
 

Personally, I would always recommend buying over renting. This will depend on a few things, but buying a home is almost always the better option if you have the finances for it.
If you have any further questions, please don't hesitate to contact me. I would love to hear from you!

What’s Important to Remember When Buying New Construction?

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Today we are excited to talk about new construction homes and the importance of having representation if you’re thinking of buying one. If you’re thinking of buying any home for that matter, it’s important to give your local real estate professional a call. It’s a smart idea to at least go through a buyer consultation with them to see if buying a new construction home is the right move for you.

Once you’ve made the decision to buy a new home, the next thing you need to figure out is what areas and what specific subdivisions you want to look at. Then we can go to those places, visit the sales offices, and get you registered with us, so we can guide and represent you throughout the process.

When you first visit that new home subdivision, remember that the sales agent is actually working for the builder, and they have their best interests at heart. Another thing to remember about buying a new home is that the contracts are a little different than they are for re-sale homes. There is some additional information and disclosures that you’ll need a professional to help guide you through.

Once you start looking at newly built homes, you may begin to realize that they are more expensive than you were previously led to believe. Although the price might say “Starting at $300,000”, there is more to it than that. You will have to pay for things such as a lot premium, that factors in the size and location of the lot your home is on. We’ve seen people charged up to $50,000 for a lot premium. Some other costs involved that people often forget about are blinds and shades, rear yard landscaping, decks, sprinklers, and windows. Be aware that you will have to pay for these things separately.

There are a lot of factors that come into play when buying a new construction home that you don’t necessarily think of. Before you go out searching, we’d love to sit down with you to help you discuss the pros and cons of buying new constructions.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you!