Tips for Fixer-upper Buyers

 Tips for Fixer-upper Buyers

Home prices have been rising for five years, and spring sales are outpacing last year, according to the National Association of REALTORS.® When it’s harder for buyers to find the perfect home, what’s a great strategy? Buy a fixer upper!

There are real advantages to buying a home that needs work. Unloved or outdated homes don’t attract as many buyers, allowing you to mine the gold under the dirt. You’re getting the home at a discount compared with the rest of the neighborhood. You’re not paying top dollar for someone else’s improvements and you can make the home your own. You’ll wow your friends and family with the result.

Shop for the best neighborhood you can afford. Look for the worst home in the best neighborhood. Usually that home is older, smaller and not as well maintained as other homes. You’ll build instant equity when you improve the curb appeal, so the home looks like it belongs with its neighbors.

Ignore the cosmetics. Don’t stress over ugly paint, shag carpet or gingerbread trim. We at Fab Realty  Group can help you distinguish features that matter and which are easy to change.

Consider the bones. You need to know whether or not you can open a kitchen to the den or add on a bathroom or other square footage. These updates can be costly but they add value to the home. Talk to your lender about loans that pay for remodeling such as FHA’s 203(k) program or Fannie’s HomeStyle Renovation Mortgage.

Fabiola Brunache

Fabiola Brunache, Trusted Real Estate Advisor

 

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Three Responsibilities of Homebuyers

Three Responsibilities of Homebuyers

Nothing says, “Welcome to Adulthood” like buying a home. You’re taking on very real responsibilities, but you may not realize how far they reach and impact others. Meeting them will reward you and your family for years to come with more equity, happier neighbors and a better living environment for your family.

Financial responsibilities: Paying your mortgage on time helps you build better credit and gets you lower interest rates if you refinance or make a new purchase loan some day. Now’s not the time to get overextended with new furniture, remodeling or other debt.

Limit the credit you actively use and pay off balances every month. Don’t add new charges until you’ve paid off your balances. Try to save as much as you comfortably can with the goal to build at least six months of cash so you can make your house payments if you become ill, lose your job or face an emergency.

Neighborhood responsibilities: When you buy a home, your household becomes part of the neighborhood. Protect your investment and that of your neighbors by keeping your lawn and trees trimmed, your home freshly painted and repaired, and toys and trash picked up from the yard.

Household responsibilities: Your home should help make you and your loved ones safer and happier. Don’t take on more house than you can comfortably afford. Try to choose the best home that suits the needs of your household without creating anxiety between you and your spouse over monthly bills.

Home buying mistake #1 – Failing to have a plan

Mistake #1: Failing to have a plan

Deciding to buy a home is probably the biggest financial decision you will ever make. It is an exciting decision, but it is serious business too, and you deserve serious advice. With a game plan, you will eliminate many of the headaches involved in this complicated transaction.

You should have a clear plan when deciding to buy a home. Evaluate your current situation. Do you currently own a home? If so, will it be necessary to sell before making another purchase? Are you renting” How much time is left on your lease? What is important to you about the location of your home? How close do you need to be to schools, work, shopping?

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Make a list of features that are important to have in your next home. List your desired price range, locations that you would like, number of bedrooms and baths, and any other amenities. Be specific and prioritize your list. It is unlikely that you will find a home that offers every feature you desire, but a list will help you identify homes that best meet your wants and needs.

Share your list with your real estate agent and review the details and priorities. Your agent will look for homes that best match your criteria, saving you time looking at homes that don’t fit your needs.

A proper game plan will save you time and reduce the stress of shopping for a home. Invest time at the beginning and you will have a more satisfying home buying experience.

The right real estate agent can make the home buying process a satisfying and profitable experience.

Request Home Buying Consultation Now !

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132 Rowe St, Boston, MA

$ Click for current price
3 BEDROOMS | 1428 SQUARE FEET

Location! Location! Location! You’ll absolutely love this MODERN 2 level town home situated just blocks from Roslindale Square, easily accessible to public transit. This 3 bedroom 1.5 bathroom home will give you just over 1400 sq ft of generous living space to move about, including a full finished basement! This luxury duplex was renovated and designed with the needs of today’s buyer in mind. Destined to impress…prospective buyers will appreciate a custom chef’s kitchen w/quartz countertops, white ice glass tiled backsplash, professional grade appliance package, open concept and access to a rear deck overlooking a common yard. Refinished classic grey hardwood floors complete the entire space. Come see for yourself! OPEN HOUSE – SUNDAY 12-2pm.

 

Bank Owned, Short sale and foreclosure: How are they different?

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As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.
A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.
On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.
On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.
After foreclosure the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.

 

 

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Down Payment, Which strategy is right for you?

 

Home Mortgage Down Payment, A Gray House, Brown Card And Calculator On Stone BackgroundYou’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.   For additional questions

 

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