When you’re making an investment of any sort, there’s one
thing more important than just securing all the funds you need. You also need
to do enough research to make sure you’re going to end up making a truly
informed decision. And in this regard, real estate investments are no
different. Especially if you’re a buyer in a seller’s market – you need to have
all the right data and info. And that’s precisely what we’re going to talk
about here!
Working With A Proper Realtor
If you’re buying in a seller’s market, before you actually
present an offer to your seller of choice; you want to have all the right
information. And in order to do that, you need to have the right representation
while you’re buying a property. If you’re facing a steep
seller’s market, a good real estate agent will make all the difference in the
world. For example, they’ll be able to ask all the right questions when talking
to the seller’s agent and figure out all of the activity on the home that you
need to know about.
Doing Research In A Timely Manner
When you’re buying a home and moving there, you need to do everything you can in regards to making your relocation less expensive than it needs to be. And that means doing all the prerequisite research; not just on the specific property, but on the market in general. Once you’ve gotten the sense of the kind of home you want, or even the preferred neighborhoods that you have in mind; you should start learning all you can about them. This is another thing your real estate agent will be good at, so finding one early on is important.
An informed decision is the only good one!
Separating Needs And Wants
One of the realities of buyers in a seller’s market is pure
and simple – you’ll need to get your priorities in order. It doesn’t matter
whether you’re looking for a vacation home or a house you’ll
primarily be living in. You still need to forego a couple of your less urgent
wants and focus on what you truly require. So, a few compromises on the home’s
condition, the local amenities, or the location will simply have to happen in a
seller’s market; coming to terms with this reality is good for you.
Stay Within Budget
A seller’s market is, as the name suggests – one where, to
paraphrase the old adage, buyers can’t be choosers. With this in mind, you need
to say goodbye to the idea of presenting low-ball offers to your sellers. Find
a price range you’re completely comfortable with, and make sure you stay within
it. If you’re hoping that the seller might drop their listed price down to
something more acceptable for you; that isn’t one of the smart things to do in a demand-heavy market
where sellers have their pick.
Don’t let your chase for a dream home make you unrealistic!
Scheduling Flexibility
Before you can find a good moving company like bluebellmovingandstorage.com
to help you out with your relocation to a new home; you will need to do
everything in your power to make sure you can nab the right property. And that
means one thing – flexibility! You need to learn of the seller’s time schedule
and adjust yourself accordingly.
Usually, it’s useful to learn why the seller in question is
moving away; that’ll be a great hint in terms of your closing date. If they’re
looking to leave in a hurry, they may want someone who can deal with a quick
closing date. On the other hand, they may require extra time to relocate. If
there are other buyers you’re competing with (and in a seller’s market, there
usually are), this will net you bonus points with the seller. Never underestimate
goodwill as a factor!
More Cash Upfront
This isn’t something you can always influence, depending on your budget and personal finances. But generally speaking, a seller’s market reasonably favors people who can offer a larger amount of earnest money. This will, logically, pique the seller’s interest in negotiating with you. When sellers have favorable market conditions and receive lots of offers, a big deposit could be what makes the crucial difference.
Having more cash to offer will differentiate you from the rest of the buyers!
Get Personal
Depending on the seller in question, including some humanity
and emotion into the equation could also be the deciding factor. For example,
you could write up a letter that you’ll include with the purchase offer, in
order for the seller to know your personal reasons for buying the home. Try to
become friendly with them through the letter as well – for instance,
complimenting their home decor or well-kept outdoors.
Remember – many of the sellers still like the home that
they’re selling. That’s why they’d also like for the home to go to someone
who’s going to love it just as much!
Look For Potential
As we’ve mentioned above, a seller’s market does demand a certain
level of compromise from a buyer. That’s why you shouldn’t take any home at
face value; try to find the promise and potential within a good property.
Perhaps you’ll be able to change a currently unfavorable layout later on?
Don’t Overdo Due Diligence
So far, we’ve talked quite a lot about the importance of making an informed decision. However, you should bear the other side of the coin in mind as well. Remember – real estate markets are a dynamic place. In certain situations, sellers will use the “other people are making offers” ploy as a tactic to get you to panic and agree to a less favorable price. Bear in mind though, that in a seller’s market, this is sometimes truly the case. You need to strike a careful balance between due diligence and overthinking, or the perfect home may slip away!
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Culpeper, Northern Virginia or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available properties, please visit our website licatagroup.com
When you’re thinking about buying property, one of the
first questions that pop to mind is, “Should I do this on my own or hire
some assistance?” In a huge majority of cases, the answer is that doing
everything on your own will make the process much, much harder, and we’d also
be very surprised if you got a good deal without some assistance. In most
cases, the only real question is: “Should I hire a real estate agent or a
lawyer?” Both can be of invaluable assistance when it’s time to buy a
property, but the ways they can help differ.
Why
You Should Hire a Lawyer
What makes a real estate agent different from a lawyer when it comes to buying a property? First of all, by law, real estate agents cannot give legal advice. While you are not obligated by law to hire a lawyer when buying a property here (unlike in some other states), you may have some legal questions that only a lawyer can answer. For example, you may want to rent a property for some time (let’s say for a year) before making the decision on whether you should buy the property or not. If the seller agrees to that, an attorney can draft this unusual contract and provide legal advice on the matter that a real estate agent could not.
A good lawyer will help you by answering all the legal questions that a real estate agent cannot lawfully answer.
As lawyers charge an hourly fee,
before buying a property and moving in with the help of experienced
professionals from dumbomoving.com,
it’s a good idea to make a list of all the legal questions you may have and arrange
a meeting with an attorney. Then, you can ask everything you need, as well as
make arrangements on all the additional services you may need that a real
estate agent can’t help you with (drafting the contract from the previous
paragraph, for example).
Why
You Should Hire a Real Estate Agent
While a lawyer will help you with
some specific parts of the home buying procedure, you’ll still need to hire a
real estate agent as well. A real estate professional will be with you every
step of the way, acting as a sort of a guide to your home buying process. And
if you’re buying a property, you’ll be pleased to learn that sellers are the
ones who will pay the agents of both parties. The commission is usually 10
percent of the arranged home price, divided equally between the two agents. The
logic behind this rule is that sellers will be receiving a lot of money, and so
they should be the ones to pay all agents who will take care of the buying-selling
process.
So, if you hire a real estate agent, your wallet won’t have a problem with that; you will basically get an invaluable service for free. And what exactly does that service entail? Buying a property is a complex procedure – lots of paperwork will need to be done, inspectors will need to be hired, a comparative home prices analysis will need to be prepared, etc. While some lawyers will try to convince you that they can do everything on their own, that is most often not the case. Real estate professionals will be better at all of these tasks, simply because they have dedicated their lives to buying and selling real estate; they have much more experience and they know how to use it.
Apart from many other ways that a real estate agent can help you, he or she will be able to find a perfect house for you in the specified neighborhood.
This gives them an edge in all sorts
of home-buying tasks. Apart from the ones we have already mentioned, they are
also much better at negotiating. Let’s say that, for example, some parts
of the home will need to be fixed. You’ll need to determine whether you or the
seller will be the one who has to make these repairs. In this case, a good real
estate agent will help you negotiate an arrangement that is better for you
financially. What’s more, an experienced real estate agent who is a good fit
for you will be acquainted with the neighborhood where you’re looking for your
dream home. He or she will know just what to look for based on your
description.
Additional
Things to Have in Mind
So, should you hire a real estate agent or a lawyer? The answer is – why not both? Combining the individual strengths of these two professions will get you the best deal. Rely on attorneys for legal advice that a real estate agent cannot offer, and hire a real estate agent for everything else.
Before you hire a real estate agent and a lawyer who will seal the deal, you’ll need to have some things in mind. Alt text: A man signing a contract.
Still, simply hiring any real estate
agent and lawyer is not enough; you will need to find a dependable and competent real estate agent, and the same goes for your lawyer. Here is what to look
out for:
Sometimes, it may so happen that an opportunity to share a real estate agent with the seller emerges. In our opinion, that would be wrong to do. As real estate agents make a living off of commissions, they might be looking for the sellers’ best interest in this situation and not yours. Ethical agents who won’t do this certainly exist, but it’s best to be on the safe side anyway.
Real estate agents may press you to offer a higher price because of similarly unethical reasons. The more you pay, the larger their commission, after all. What’s more, some of them will be afraid to negotiate because doing so might mean that they won’t get to close the deal. If it seems that your agent doesn’t respect your opinion and is only looking to close the deal as soon as possible, it is best to find a different agent. Doing research on your own regarding home prices in the given neighborhood will help you avoid such unpleasant situations.
Most lawyers prefer to be hired and paid only after the home buying process is complete. However, it may suit you more to only pay for one consulting session or one or two specific tasks. That can be arranged, just have the arrangement in writing (better safe than sorry).
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Norther Virginia or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
This Home Buyer Workshop event will feature on-site loan consultations as well as our “Love it or Leave it” program. In addition, you’ll gain access to other premium programs that are unavailable to the general public! This event is FREE to attend, so make sure to set the date on your calendar! A Q&A will also be held featuring some of the industries best vendors: such as a Michael Ullmann, a mortgage representative, a title company, and a home inspector. Seats do tend to fill up, so make sure to reserve yours today!
RSVP by Sept. 25th at 540-388-2541 or email: Cheryl@licatagroup.com.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Whether you’re buying residential or commercial real estate, it is in your
best interest to score the best deal. After all, that’s what negotiation
tactics and offers are for. These days, there’s an increase in second-home
purchases throughout the whole nation, but especially in Virginia. This
means that by buying a property in Virginia you are also making a great
financial investment. With homes that can meet a wide range of
budgets, you are diving into a pool of opportunities – but how to know which is
the right one? Don’t worry, we’ve got you covered – use the tips below the
maximize your investment and save money along the way.
Buying a property in Virginia starts online
Nowadays, searches of any kind begin on the internet. In the end, isn’t that
how you ended up on this page? There’s no doubt that buying property is
a financial reality check. From fees and interest rates to the
mortgage process, you need to research each step before making the final
decision. Gather any property information you can on the
property market. Housing apps and property listing sites like Zillow and Tulia
will get you an idea of the market so they are worth checking out. Who
knows, maybe you’ll find what you’re looking for sooner than you anticipated?
Found a potential buy but want to dig deeper? Then you’ll be glad to know
that there are various research tools at your disposal. Before
buying a property in Virginia, check the Multiple Listing Service database to
find zoning, maps, and ownership. On Tulia, you have extra features where you
can find out about school and crime statistics or median home values for a
specific area. Google away!
Hire a real estate agent
If you’re a first-time buyer, chances are you don’t know home
buying terminology or the overall process. Unfortunately, the
Internet can only do so much. In the end, it’s always best to place your trust
in someone who has much more experience in the trade. A good real
estate agent will save you not only money but time and nerves as well.
In this way, you won’t have to be tangled up in the process as much, as your
agent will ensure it goes smoothly.
Realtors can also help you find other professionals who will assist you in
the home buying process, like mortgage brokers and home inspectors. They can
even refer you to good moving companies like Premium Q Moving and Storage Boston
that will help you during the moving phase. The question is – how do
you find a good realtor? It’s best to stay off the internet and ask
for referrals from people you trust. If this is not an option, check
customer reviews of real estate agents on property listing sites.
Don’t forget to check if they are licensed at the Virginia
Department of Professional and Occupational Regulation License Search.
Get Loan Quotes from Multiple Lenders
A word of advice: Do not accept the first offer that your mortgage
lender makes! Interest rates will vary, as different lenders may quote
you different prices. For example, the average 30-year mortgage rate in
Virginia is currently 4.14%. However, it can vary more than half a percent,
which translates to around 60$ a month – you do the math. That’s why it’s
recommended you get loan quotes from at least 3-4 different mortgage
companies when buying a property in Virginia. Be aware that lenders
charge various other fees for processing a mortgage, loan origination fee, loan
application fees, etc. You will be able to see exactly what you’re paying for
in the loan estimate, so use it to help you negotiate lower fees and rates. If
you’re buying a house, choose one of Virginia first-time homebuyers
program. These programs are designed to help you and lighten your
financial burden.
Pick timing and location wisely
Let’s say you want to buy
a vacation home in Virginia. Now, predicting the market isn’t easy.
But what if you could save thousands of dollars if you knew when exactly to buy
it? If you don’t rush and are flexible enough, the best way to save money on a
good deal is to buy property around the holidays or in
January. Most people selling their homes at that time are doing so only because
it’s urgent. With the right negotiation tactic, you can use this to your
advantage and lower the price.
Another one of great
strategies for house hunting is picking the location. If you’re
planning to purchase property in the northern part of Virginia, you need to act
quickly. Since this is the most populated region of the state, you’ll have more
competition which means the prices will increase. On the other hand, you can pick
more affordable places. Houses in Richmond or Portsmouth tend to be
below the median value for properties in the state – check them out!
Negotiate for the Best Possible Price
All the advice in the world will be for nothing if this part of the process
isn’t done correctly. When it comes to negotiations, you either make it or
break it, so it’s best to let your real estate agent do the talking.
Since he has an understanding of the property market, he’ll be able to point
out all the shortcomings that you might not have noticed. Also,
have him help you write your offer letter. It’s important that
you personalize your interest in the house so that you stand out among other
potential buyers. Don’t mention any of the shortcomings, as it
can only be a deal-breaker. Instead, try to appeal to the seller
by mentioning the particulars that you know about him. For example, is that his
childhood home? Then make a connection and comment on how great your kids would
have it growing up there too.
In conclusion, buying a property in Virginia is a great financial investment if you buy it for the right price. Getting that price, however, depends on many factors. Trust in the expertise of your real estate agent to get you through the process and you’ll soon be enjoying in your new Virginia home!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Taxes are confusing, which is why many people in the U.S. choose to hire an expert to do their taxes for them. After all, there are so many numbers to know, forms to have ready, records of income and expenses, W-4s, 1099s, 380-Ts—we could’ve just made that last one up, and there’s no way of knowing!
Even though taxes might be complicated, they (sometimes) have a few perks. And if you own a home, those perks could mean a major bonus on your return. If you’re thinking of buying a home before next year’s taxes are due, here’s everything you need to know about how making a home purchase can affect your returns.
Deductions vs. Credit
Before we kick off the fun stuff, it’s important to know a little jargon—namely, the difference between a deduction and a credit.
When it comes to credits, think of them like tax-related coupons that reduce your dollar-for-dollar total. A few major tax credits include child tax credits, adoption credits, education or retirement credits, or credits for energy efficient homes and cars. Depending on the credits you qualify for, you could get anywhere from a few hundred to a few thousand dollars taken off of your tax liability.
Deductions are a little different: they reduce your taxable income, which can then adjust the total that you owe. Claiming certain deductions means that that part of your income is exempt from being taxed. Knowing which deductions to claim is key when filing, especially for homeowners.
Tax Benefits for Homeowners
Buying a home is expensive, but when it comes to tax time, here are the ways you can make some of that money back.
Mortgage Interest
One of the reasons that taxes for homeowners are so confusing is because they tend to change based on federal standards. Over the past few years, the federal Tax Cuts and Jobs Act pretty drastically altered the tax benefits for home ownership.
The most important change to know this year has to do with mortgage-related deductions. Previously, the tax deduction for home mortgages was limited to interest paid on $1 million debt for jointly filing married couples and single filers and $500,000 for married couples filing separately. Now, the numbers look more like $750,000 for the former and $500,000 for the latter. Additionally, interest paid during closing can also be counted towards this number.
Property & State Taxes
Did you know that the amount you pay in property taxes, state income taxes, and local sales tax is also deductible? If you pay property taxes through escrow, your lender will need to get the amount for you on your 1098 form, otherwise you should be able to find it in your personal records. The latest tax laws have instituted a cap at $10,000, but every little bit counts!
Private Mortgage Insurance (PMI)
Believe it or not, tax deductions on PMI are a hotly contested subject. Until recently, buyers were able to deduct the payments they made on Private Mortgage Insurance, but as of 2017, that ability expired. If you did buy your home before 2017, then your yearly income will determine how much you can deduct.
There’s no timeline on when deductions for PMI could return, but, unfortunately, if you’re a more recent home-buyer with these payments, those perks aren’t currently available.
Credits
We talked a little bit earlier about the difference between deductions and credits, so what sort of credits can you get as a homeowner? One of the biggest tax credits that homeowners can cash in on is having energy-efficient homes. In fact, if you installed geothermal heat or solar energy, you could be entitled to credit for up to 30% of the installation fee.
Other energy-efficient features, like storm doors and added insulation, can net you a few hundred dollars in credit, as well.
Tax-Free Profits
While many parts of the tax law have changed in the past few years, one aspect has stayed the same: tax-free profits. Selling your home not only means a big profit after the sale, but a large portion of the money you make won’t even get taxed—meaning you get to pocket more.
Married homeowners who sell their homes won’t have to pay capital gain taxes on up to $500,000 from the sale, while single filers can keep half of that as non-taxable income.
While there are some guidelines—like the home must have been a primary residence for at least two of the past five years—it’s a big plus when it comes to selling.
Want to Explore More of the Benefits of Home-Owning?
Believe it or not, there are a lot more benefits to owning a home than tax deductions. If you need help navigating the ins and outs of the home-buying and home-owning process, our team is here to help. With years of local experience and real estate know-how, we have the skills and resources necessary for home-buying and selling success.
Ready to learn more? Just give us a call. 540-388-2541
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata. To see available Lake of the Woods properties, please visit our site.
This epic Home Buyer Workshop event will feature on-site loan consultations. Come and learn about the first of it’s kind: “Love it or Leave it” program and have access to other premium programs not available to the general public!! Completely FREE event. There will be Q&A with industry’s best vendors: including a mortgage representative, a home appraiser, a title company, and a home inspector. Save your seat! RSVP by April 1st at 540-388-2541 or email: Jane@LicataGroup.com. We look forward to seeing you there!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
