For most people, buying a home is one of the biggest investments they’ll ever make. If you’re planning to purchase a home, your budget likely includes the down payment and monthly mortgage payments—yet many buyers, particularly first-time homeowners, find their budgets stretched by unexpected costs. In fact, according to a survey by ConsumerAffairs, 44% of recent home buyers said they had already spent more than they’d planned, with the average over-budget amount exceeding $10,000.
While record-breaking home prices over the past several months have contributed to this trend, new homeowners often find themselves surprised by unexpected costs, such as the following:
Property taxes. Currently, the average property tax rate across the U.S. is 1.1% of a home’s assessed value, but this amount can vary greatly based on location and average home prices.
Closing costs. The upfront costs of buying a home include more than just the down payment—at closing, you can expect to pay costs ranging from 2-5% of the home’s value. These may include title insurance, mortgage origination fees, surveys, and more depending on your market and lender.
Utilities. For many people moving from an apartment or rented house to a home of their own, the cost of all the utilities they need can be surprising. From the basics like water and electricity to items that you may or may not need depending on your preferences and where you live (such as cable, sewer, and trash collection), utility bills can add hundreds of dollars a month to your home ownership costs.
Insurance. In order to take out a mortgage, you’ll need to provide your lender with proof of homeowners insurance, which will cover certain damage to your home and the items within it. This necessary coverage will cost anywhere from several hundred to several thousand dollars per year.
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 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, 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.
Force of habit is a powerful thing, especially when it comes to settling in a property. As you are a human being, it’s to be expected you’re attached to the piece of earth you’ve lived on for so long. But, the time comes when it’s just better to leave your nest and find a new one. How do you know for sure? Here are seven clear signs it’s time to sell your house.
1# No more room for your children
Your little ones are the most valuable thing you have. Normally, you want the best of the best for them. Sometimes, in the buying process, people overlook the number of children they want to have or have financial struggles during the time. It’s all fun and games while your kids are younger and don’t require much space. But, when puberty hits, every one of their personalities becomes way too big for the shared space. You might look forward to the wine festival on Mother’s day way more than you should simply because of all that stress a cramped up house brings. So, it’s best (for everyone’s mental health especially) to start looking for a bigger space with more rooms. Four walls (painted black during an emo phase) will contain the chaotic hormonal storm at least a little bit.
Teenage anger spreads like wildfire in a tiny space. If you feel like it’s affecting you too – it’s time to upsize.
2# There are no great schools nearby
The second thing related to children is the choice of a school for them. It’s also an important indicator you should consider selling and moving to a different neighborhood or even city. Education is crucial for your kids’ future, and it’s to be expected to be your top priority. According to the experience of expert movers at beltwaymovers.com, many young couples overlook the schooling system factors when buying a house, and that’s why they end up selling their property after a few years down the line. If the schools in your neighborhood don’t meet the standards and your wishes for your kid, it’s probably time to move.
3# Your home starts to give you itchy feet
Once the phrase ‘home, sweet home’ doesn’t apply to your house, it’s time to move on to something different. Your house should be the place where you feel relaxed and at ease. A place where you look forward to coming back to after a tough day at work. If the time comes that you start feeling contained and not tucked away between your four walls, it’s time to flee.
‘Oh that gorgeous house downtown’
When you start looking at other houses, it’s a sign that something’s not quite right with your own. Maybe you didn’t have the money for your dream house at the time of buying. Perhaps you’re retired, your kids are living their lives, and now you want to watch cherry blossoms in spring and do gardening in a lovely little purple house. Possibly, you just want an upgrade. These are all positive signs that you should consider a change of residence.
Not many things make you feel as alive as watching cherries bloom
4# If the renovation won’t help – it’s time to sell your house
When you attach many memories to a living space, you will indeed look for a way to renovate it to fit your needs before even thinking of selling. But, when you think about renovations, all you do is end up with a long list of chores and tasks. When deciding whether to renovate or sell, there are three crucial questions to ask yourself.
What will better fit your budget?
Will renovating fix the issue for good or just temporary?
Is it even possible to renovate?
Some old houses could be so fragile that renovation would just ruin them. Also, if you start adding walls to the list of things you want to tear down – it may be best to start looking for the new ones.
5# You don’t ‘feel’ the neighborhood anymore
People change. Maybe you’ve changed drastically. Or your neighbors did. Or, there’s been a significant makeover of your neighborhood – they built a mall or tore down your favorite bakery. Whatever the reason, you don’t feel as welcome and at peace in your area. It’s pretty stressful to feel you don’t fit in. If you feel like you don’t fit in, it’s best to find a new property, call local movers in Virginia to help you pack your stuff, and reach your new home stress-free. You don’t have to move across the globe to experience that much-needed change – you can simply move across the city. The mere desire to do so is undoubtedly one of the signs it’s time to sell your house.
6# It’s the perfect time in real estate
Since the pandemic, there’s been an increasingly positive shift in the real estate market around the US. The local market in Lake of the Woods is no different. If a sale has even crossed your mind in the past, you might want to seriously consider taking advantage of the ‘housing bubble’ before it bursts. It might be a good idea to have an appointment with a real estate agent, in any case, just to be fully educated and aware of your options.
A meeting with a real estate agent can help you solve uncertainties
7# You’re just ready
Every individual will sometimes feel like they are at a crossroads, urging them to look into new homes. It doesn’t have to be brought on by an extraordinary and tumultuous event. The key is to feel emotionally and psychologically prepared to leave the old memories behind and sail into making new ones. There’s nothing wrong with that. You and your family evolve, and it’s sometimes just the time to part ways with the house that holds your past. It’s not a solid and visible indicator. But, a hunch, a feeling, and an instinct are among the vital signs it’s time to sell your house and go on new adventures.
Bottom line
It’s never easy to decide to leave your old habits and living space. Some things will undoubtedly have to change. But, don’t be afraid – change is not a bad thing. If you can identify with some of these signs it’s time to sell your house, then you know what to do – search for your perfect home.
There are many benefits to owning a home: A home is an investment that can earn equity, is often cheaper to buy than to rent, and is your own place that you can fill with wonderful memories.
But another great benefit about owning a home is the financial benefits that you can take advantage of during tax season.
Major Tax Breaks for Homeowners
Owning a home, and eventually selling it, can offer you opportunities for deductions on your taxes, and we wanted to outline the major tax breaks for homeowners today. Are you taking advantage of these tax benefits?
Available until the end of this year, homeowners who have installed solar hot water heaters, solar electric systems, wind turbines, or qualifying energy-efficient home improvements can take a tax credit as part of the Residential Energy Efficient Property Credit.
The credit is for 30% of the cost for these energy-efficient home improvements.
Deduction for Property Taxes
In addition to deducting your mortgage interest, you can also deduct the annual taxes you pay on your home’s value, called real estate taxes.
Deduction for Capital Gains
If you have used your home as your primary residence when you sell, you can exclude up to $250,000 in capital gains from the home sale on your taxes (or $500,000 if you are married filing jointly).
To learn what other tax benefits you may take advantage of, visit the Credits and Deductions page on the IRS website or read this MarketWatch article about other tax breaks for homeowners.
Let Us Help You Find the Perfect Home
If you have been considering buying a home in Lake of the Woods or elsewhere in the area and are ready to start your search, we can help you find the perfect home that falls within your budget and provide you with helpful real estate resources to make the journey to homeownership as smooth and enjoyable as possible.
Contact us today at 540/735-7998 and let’s talk about your goals for owning a home.
Until next time…It’s another beautiful day at the lake!
Pat Licata – Realtor
