The Basic Benefits of Buying vs. Renting a Home

After the housing crisis, there was a lot of talk about how renting a home can be more desirable than owning one. With the housing market steadily improving, though, this isn’t necessarily true anymore.

If you’re trying to decide which to do, here are a few things to consider when it comes to buying vs. renting a home:

• Renting can make more sense if you’re struggling financially. You won’t need as much money upfront as you would when buying a home, and you could have a tough time getting approved for a mortgage.
• Renting is cheaper in terms of maintenance. You don’t have to worry about covering the cost of repairs from your own pocket. You just have to let your building’s maintenance team take care of it.
• Buying a home comes with some nice tax benefits. You’ll be able to take advantage of tax incentives for homeowners, which can put more money in your pocket. You might be able to deduct your property taxes, the interest on your mortgage payments and origination points.
• Buying can boost your net worth. Being a real estate owner can be great for your investment portfolio, especially if you have lower mortgage payments and maintenance costs.
• Buying gives you more freedom. You can decorate your home any way you’d like and use any colors you want when painting rooms. You might face a few restrictions on your home’s exterior, depending on your Homeowners Association, but you still have a lot more interior design and home improvement options than you would as a renter.

Looking for more guidance on buying vs. renting a home? Visit Donna Hatch at destineddwellings.com .

Does The Pool Matter? 3 Common Appraisal Myths

Having your home appraised is part of the selling process. It’s common to feel anxious about the results of your appraisal, since they have an effect on your home’s value. However, there are certain appraisal myths that can cause you unnecessary concern.

Here are a few of the most common myths and the truth behind them:

• Getting a pool will guarantee a boost in value. Unfortunately, having a pool installed doesn’t mean that you’ll recoup a good portion of that cost. The amount your home is worth will depend on sales of similar homes in your area. Since putting in a pool is a major expense, you might want to think twice before adding one. Also, some buyers are turned off by the amount of maintenance a pool requires, so having one could actually hurt your sale.
• Fixing things up will lead to a higher appraisal value. Remodeling can help boost your home’s value, but it all depends on what types of projects you do. Simple cosmetic repairs won’t really add much to the value, but updating a major component, such as your home’s electrical setup or central air conditioning, can lead to a significant increase in value.
• Homes in the same neighborhood will have similar appraisal values. These values can vary widely, depending on each home’s condition and the types of improvements that have been made to it. A home with a room or two added on could have a much higher appraisal value than the rest of the homes in the neighborhood.

Wondering what else to expect from the appraisal process? Contact Donna Hatch with ERA Shields Real Estate at dhatch@erashields.com.

Just listed!

A spacious, airy ranch home with walk out basement. 4/3/3. http://www.imagemaker360.com/130715

Homesteading Basics: 5 Rules for Growing a Kitchen Garden

With the growing trend toward more eco-friendly and budget-conscious living, being able to grow some of your own food is a highly valued skill. You can do this by setting up a garden for growing vegetables and herbs.

Here are five basic rules for growing a kitchen garden, so you can enjoy fresh foods and make fewer trips to the grocery store:

• Choose an area with enough sunlight. You’ll need an area that gets at least six hours of direct sunlight each day in order to grow most types of vegetables.
• Prepare the soil. Make sure that the soil in your kitchen garden is well-suited for growing vegetables. You might need to add compost or straw if it’s not loose or crumbly enough.
• Use mulch generously. Help keep moisture in and prevent weeds from growing by covering your garden with organic mulch.
• Deal with pests. Depending on what you grow, you could end up attracting pests, such as raccoons, rabbits and even deer. Look into the best ways to keep these pests out of your garden. In many cases, a fence can work.
• Mix it up. Don’t plant the same things together in your garden. When growing a kitchen garden, it’s important to mix the plant types in order to deter insect pests.

Looking for an eco-friendly home or working on making yours greener to boost its value for the market? Visit www.destineddwellings.com or contact me at dhatch@erashields.com. 

Now THIS is a car lover's dream home!

Would you like a home with a garage like this one?

Adding Home Color: The Basics of the 60-30-10 Rule

Working on making your home look as appealing as possible to potential buyers? You don’t need a degree in interior design to create rooms that look perfect. Following some basic color rules can go a long way toward improving your home’s appearance. You can start with the 60-30-10 rule.

This rule states that you should decorate each room in terms of percentages. Use a dominant color for 60 percent of the room, a secondary color for 30 percent and an accent color for 10 percent. The 60 percent usually means the walls of a room, while the 30 percent generally includes furniture and upholstery. The remaining 10 percent is reserved for decor items or accent pieces, such as a vase of flowers or throw pillows. The small splash of color that the accent pieces provide is enough to make any room more interesting without being too distracting or overwhelming. The secondary color helps balance out the dominant color and keep it from making a room seem too dull, especially when the dominant color is a neutral shade, such as beige. When choosing these colors, make sure you pick ones that complement each other. As long as you don’t pick colors that clash, the 60-30-10 rule should work just fine for your home.

Need additional help on preparing your home for the market? Just email dhatch@erashields.com. 

The Test of Time: 5 Stellar Kitchen Countertop Materials

Sprucing up your kitchen is an effective way to add considerable value to your home. In fact, the kitchen is one of the biggest selling points for buyers. You don’t have to redo your entire kitchen to accomplish this. Investing in new countertops can give your home’s value a big boost.

Here are five of the best kitchen countertop materials to consider:

• Glass: If you can afford a more expensive countertop material, glass is a great option. Glass gives your kitchen a sleek appearance, and it’s very easy to maintain. It’s simple to clean, and it resists stains.
• Tile: Tile countertops are a more affordable option that’s also easy to care for. You can add a bright burst of color with tile or an eye-catching design, and use the same tiles as your backsplash.
• Travertine: Travertine is one of the most visually appealing kitchen countertop materials. It instantly makes kitchen feel more cozy and inviting. The only downside to this material is that it requires a lot of maintenance in order to avoid stains and other blemishes. If you go with travertine countertops, make sure they’re sealed.
• Wood: Wood countertops add considerable warmth to kitchens. You can choose a more decorative look for a kitchen island, and go with more functional wood choices for regular countertops that are used for preparing food. Wood resists heat and can be sealed for a more sanitary surface.
• Concrete: Concrete countertops are very versatile and energy-efficient. They’re available in a variety of textures and stains, and you can combine them with other materials, like tile or glass, to create a unique appearance.

Need more tips on fixing up your home before selling it? I am here to help, dhatch@erashields.com. 

A Build it Yourself Dream!

http://www.viraltales.com/guy-started-nothing-just-6-weeks-later-made-ridiculously-jealous/

Year-Round Staycation: 3 Exotic Landscape Ideas

Staycations are becoming more common as homeowners look for ways to save money. Instead of spending it on an expensive vacation, they’re opting to stay home and enjoy their surroundings. You can turn your yard into a perfect staycation spot with some clever landscaping.

Here are a few landscape ideas to consider if you’ll be spending vacation time at home:

• Woodland theme: Turn your yard into a cozy forest setting with some carefully placed trees and other greenery. If possible, you can take this one step further by having a small stream installed in one part of your yard. Line the stream with small rocks and pebbles to give it an even more naturalistic look. This idea provides you with a relaxing place to stay, along with a high level of privacy.
• Water theme: Instead of a traditional pool, your yard can become a water-themed getaway that makes it feel like a secluded island. Install a water slide, sandy beach, fire pit and a play area that resembles a pirate’s cove for kids. You can even include a spa that’s designed to look like a beached boat.
• European garden theme: Dress up your garden by installing an eight-sided pavilion surrounded by boxwoods and colorful flowers and bushes. A decorative fountain completes this look and lets you feel like you’ve traveled all the way to Europe.

These landscape ideas have an added benefit. When it’s time to put your home on the market, you’ll see a boost in its value. Just make sure you properly maintain your staycation landscape to keep it in good condition.

Need more tips on getting a home ready for selling or looking into buying your first home? 

Multiple Offers? Tips for Snagging Your Dream Home

There’s no guarantee that you’ll be able to get the house of your dreams without dealing with a bit of competition. Depending on where you’re looking, you could even face some stiff competition if there are a lot of other buyers around but not enough homes for sale.

When you’re up against multiple home offers, you can increase your chances of getting the winning bid by following these tips:

• Don’t be tempted to waive the “must appraise” clause. Some buyers think this makes their offer stronger than the competition, but it can actually hurt their offer.
• Waive the financing contingency. When you do this, it lets the seller know that you’re not relying on backup funds to cover the cost of buying the home if you can’t afford to do so. This doesn’t mean you can can’t get a loan, but it’s highly important to include a term stating that you’ll be applying for one, if you’re going this route for financing. You’ll also need a pre-approval letter to show the seller.
• Make a cash offer. This is the best way to deal with multiple home offers. A cash offer will immediately elevate you above the competition because it’s the most appealing option for sellers. Of course, you have to make sure you have the money set aside to do so.

Need help making an offer on a home or starting the buying process? Visit ERA Real Estate to find a local office, and follow me on Facebook to get more tips on home buying.

Refinancing Your Mortgage? No Closing Cost Options

Having your mortgage refinanced can help you save money on monthly payments, but don’t forget about the closing costs. These costs, which include processing and appraisal fees, can be in the thousands. If you would rather avoid this added cost, there are no closing cost options to consider.

These costs have advantages and disadvantages to consider, including the following:

• The main advantage is that you won’t have to pay for the closing costs, which can lead to a lower monthly bill. You’re better off choosing one of these options if you plan on selling your home within five years or doing costly renovations to it. It’s also a good option if you think you’ll be refinancing again in the near future.
• One disadvantage of no closing cost options is that you could end up with a higher interest rate on your refinance, which can bump up your monthly bill a bit. You won’t have to worry about having thousands added on to your mortgage from closing costs, but you might have a considerable amount added on from the added interest.
• Another drawback to having no closing costs is that you could end up paying more money than you thought if you’ll be staying in your home for more than five years. That’s because you’ll be paying that higher interest rate for a longer period of time, which can add up significantly over the years.

An ERA real estate agent can give you additional advice on your refinancing options. This can help ensure that you choose the best option for your situation.

Ready to discuss refinancing options? Contact Donna Hatch

Buffett's annual letter: What you can learn from my real estate investments

FORTUNE -- "Investment is most intelligent when it is most businesslike." --Benjamin Graham, The Intelligent Investor

It is fitting to have a Ben Graham quote open this essay because I owe so much of what I knowabout investing to him. I will talk more about Ben a bit later, and I will even sooner talk about common stocks. But let me first tell you about two small nonstock investments that I made long ago. Though neither changed my net worth by much, they are instructive.

This tale begins in Nebraska. From 1973 to 1981, the Midwest experienced an explosion in farm prices, caused by a widespread belief that runaway inflation was coming and fueled by the lending policies of small rural banks. Then the bubble burst, bringing price declines of 50% or more that devastated both leveraged farmers and their lenders. Five times as many Iowa and Nebraska banks failed in that bubble's aftermath as in our recent Great Recession.

In 1986, I purchased a 400-acre farm, located 50 miles north of Omaha, from the FDIC. It cost me $280,000, considerably less than what a failed bank had lent against the farm a few years earlier. I knew nothing about operating a farm. But I have a son who loves farming, and I learned from him both how many bushels of corn and soybeans the farm would produce and what the operating expenses would be. From these estimates, I calculated the normalized return from the farm to then be about 10%. I also thought it was likely that productivity would improve over time and thatcrop prices would move higher as well. Both expectations proved out.

read more at: Fortune Online.

Bathroom Remodels Add Value When It’s Time to Sell a Home

You know that fixing up your home is a great way to get a better deal when you sell it. Many homeowners focus on the rooms that are the most visible or highly used. Don’t make the mistake of overlooking your bathroom or only making minimal changes to it.

Here are a few ideas for a remodeled bathroom that can add value when it’s time sell a home:

• Scale back: Modern designs for bathrooms focus less on elaborate concepts and more on sleek, organized styles. Keep it simple with storage areas that are tucked away so that your new bathroom fixtures get more attention.

• Go green: Consider having eco-friendly features installed, like low-flow faucets, toilets and shower heads. In addition to protecting the environment, these green features also lower water bills significantly.

• Add flair: Choose a pedestal sink for a more elegant look or a freestanding claw-footed tub to give your bathroom a more vintage appearance.

• Go modern: Take advantage of high-tech features, like wi-fi music or programmable thermostats for the shower, to give your bathroom more resale value.

Interested in more ways to add value when you sell a home? Contact Donna Hatch.

DIY Strawberry Planter

Materials Needed

• rubber boots
• strawberry plants (3 per boot)
• newspaper
• drill
• craft knife
• Vaseline
• clean, crushed eggshells
• tomato fertilizer

Step 1: Cut Holes Into the Boot

Fill the boot with newspaper to keep them sturdy while cutting. Drill holes into the sole of the boot for drainage, and then use the craft knife to cut two holes in the sides of the boot. The holes should be the size of the plant’s root ball. Remove the newspaper.

Step 2: Fill the Boots With Soil

Add a layer of gravel to the bottom of the boot, making sure it gets into the toes. Fill with potting soil up to the first hole. 

Step 3: Add the Plants

Carefully loosen the root ball, and then insert a plant through the first hole. The crown (the top of the roots) should be level with the soil surface. Fill with more soil to the second hole and add the second plant. Leave a deep hole at the top of the boot, then insert third strawberry plant. 

Step 4: Keep Pests Away

Rub Vaseline on the outside of the boot and add a layer of eggshells to the top of the soil to prevent snails and slugs from getting to the leaves and fruits. 

Step 5: Place and Water

Place your strawberry boot planter in a sunny spot. A sunny front door, back door or patio is a perfect location, as birds are less likely to go there and pick at the fruits.

Be careful not to over water or the plants will rot. Feed the plants with tomato fertilizer every one or two weeks until they begin to fruit.

What is your favorite home style?

26 Popular Architectural Home Styles

www.diynetwork.com

DIY Network defines 26 of the most popular home styles, explains their history and the key elements of each style.

Should You Register for a Housewarming Gift?

Part of the fun of buying your first home is filling it up with new items, like furniture, kitchen gadgets and home decor items. If you’re planning on throwing a housewarming party, you might want to consider setting up a gift registry for first time home buyers.
As far as etiquette goes, how do you know if you should register for housewarming gifts? If you feel comfortable doing so, then go ahead and set up a registry. Etiquette experts recommend not calling attention to the fact that you did this, though. Instead, they suggest mentioning the registry only if friends and family members ask for housewarming gift ideas. Don’t include information about the registry on the invitations, since this is the same as asking your guests to bring gifts for you.
What kinds of gifts should you include on your registry? Many first time home buyers include the following:

• Small kitchen gadgets
• Home accents, like a vase or other decorative item
• Specialty food serving sets, such as a cheese board, for hosting parties
• Tools for simple home repairs

Ready to start the search for your very first home? Contact me and I will help you get the search started!

Spending Smarter: Recarpeting vs. Carpet Allowance

When selling a home, you have the option to either replace an old, faded, worn or musty carpet or offer the buyer a carpet allowance. This allowance is a certain amount of money that the buyer can use to get new carpeting.

Before deciding between recarpeting vs. carpet allowance, there are a few things to consider:

• A carpet allowance could hurt your chances of selling your home. Buyers might be much less willing to buy a home that comes with an old or dirty carpet. Also, the allowance you offer might not seem like enough to cover the cost of new carpeting, depending on the buyer’s expectations.
• Recarpeting will cost you money, but not necessarily as much as you think. You don’t have to go with a high-end carpet in order to impress buyers. Stick with a good quality yet cost-effective one in a neutral color instead. You don’t want to spend too much, since there’s no guarantee that the buyer will keep that carpeting around anyway.
• You can save money on recarpeting by pulling up the old carpet on your own. Just make sure to leave the wood strips around the edges of the room alone to make it easier for the new carpet to be installed.
• If you go with new carpeting, also get new padding. The padding in your home can absorb unpleasant odors that linger. This means spending more money on the recarpeting process, but it pays off when you’re able to sell your home quicker and for better money.

In the recarpeting vs. carpet allowance debate, recarpeting is clearly the better option. Keep this in mind as you’re getting your home ready for the market.

Need more help preparing your house for the market? Contact me at 719-684-4121.

Get the Job done: Curb Appeal

Preparing your house for sale entails making your home appear "move in ready" in order to attract the greatest numbers of potential buyers. This is a critical element in your selling preparation. Creating curb appeal is no small feat but greatly worth it in the long run. To get started, follow the tips below.

• Inside your home, begin by removing personal effects such as photos and memorabilia. While these are the items that make your home yours, your goal is to create an environment that a potential buyer can envision as their own.
• Clean everything inside and outside of your home and develop a plan to keep your house attractive during the sales process. To help present the cleanest and brightest home, open the curtains and turn on the lights during open houses and when real estate agents are conducting showings.
• Consider enhancing rooms with a fresh coat of paint and be sure to repair items that need attention. While major remodels may not be necessary, broken items should be repaired.
• Outside, consistently maintain a mowed lawn and consider planting seasonal flowers. Also, trim hedges, trees and bushes.

For more complete information on how to prepare your home for sale, consult with your ERA Real Estate agent Donna Hatch.

Closing Costs & Fees

Lender Fees

• Loan origination fee: covers the costs of evaluating and processing your mortgage loan. 
• Points: the percentage of your loan amount, paid at closing. 
• Appraisal fee: The fee for having your new home appraised may be rolled into the closing costs. The cost may vary based on the amount of your loan, and the type and use of the property (i.e. condo, rental, etc). 
• Credit report: covers the expense of your credit history report. 
• Interest payment: You may pay interest on your mortgage loan to cover the time between the closing date and the date your first mortgage payment period begins.
• It is important to note that interest on a mortgage is usually paid in arrears at the end of the time period it covers. For example: If a closing is on May 15, and your first monthly payment starts to accrue interest on June 1, an interest payment covering the period between May 15 and May 31 may be required at closing. Consider this timing when scheduling your closing. It is a fee you can reduce by closing near the mortgage due date.

Escrow Fee

• Escrow account fees: A trust account created by a third party to hold money. Generally, this money goes to pay property taxes and insurance. To fund the account, your monthly mortgage payments may include one-twelfth of your annual property taxes and insurance charges. The first escrow fee may be due at closing.

Title Fees

• Title search: pertains to the examination of public records to ensure that no one but the seller has a valid claim to the property. 
• Title insurance: relates to insurance that protects the lender and buyer from losses that may result from disputes over the property's title. Typically, the buyer purchases the Lender Title Insurance.

Other Third Party Fees

• Document preparation fee: charged for the preparation of the closing documents. 
• Underwriting Fee: covers the costs of the underwriting process, which is the analysis of the risk involved in making a mortgage loan.

Would you live here?

A wonderfully incorporated cottage in the woods.

Price it Right

If you set your selling price too high, you risk limited viewing from potential buyers. Price it too low and you may sell it more quickly, but at the possibility of making less money on the sale.

No matter how beautiful your home may be, buyers will compare it to other homes for sale in the market at that time. Therefore, pricing your home correctly is one of the most important factors in getting your home sold. To properly set your price, and your expectations, you will want to examine the record of home sales in your neighborhood over the past several months. It may sound daunting but your ERA Real Estate agent is here to help and can provide you with a Comparative Market Analysis (CMA). 

The CMA will provide data regarding recent home sales (size, price and number of days on the market) as well as information about homes that have not yet sold. It allows you to view trends and other critical information that can be beneficial as you set a competitive price.

In addition to considering historical pricing information and market trends, it is recommended that sellers also think about including other incentives in the sales offering such as home warranty, assistance with closing costs, etc.

Home Values Projected to Rise Over Next 4 Years

When you’re buying or selling in the near future, taking a home’s value into consideration is important. As a seller, having a higher value means you can get more money for your home. If you’re buying, knowing that home values are expected to rise means you’re making a good investment.

The home value projections for the next few years show that they should be on the rise. The highest projections are calling for an annual increase of around 5.6 percent and an overall increase of 10.6 percent more than 2007’s peaks by 2018. In general, home values are expected to be higher than their peak in April 2007 before the housing market crisis occurred. They might even go higher than $200,000 by late 2018. Experts are also predicting a 4.5 percent home value appreciation for the US market in 2014.

What does all this mean for you? If you’re selling, you don’t have to worry about losing money on your home or not getting as much for it as you’d like. With home values on the rise, you should have no trouble getting more money for your house. When it comes to buying, you’re pretty much guaranteed to make a sound investment. Even if home values stop rising or start falling back a bit, there are other ways for you to boost your home’s value down the road before you eventually sell it.

Want more information on home value projections and help with the buying or selling process?

Upgrading to Stainless: Get the Look Without the Price

Giving your kitchen a new look before putting it up for sale? Stainless steel appliances can add value to your home by giving your kitchen a sleek look, but they can also put a major dent in your wallet. Fortunately, you can achieve the stainless look without going for actual stainless steel.

Here are some tips on upgrading to stainless kitchen appliances without spending a ton of money:

• Fridge: Set aside roughly $1,000 or less for a stainless fridge. Make sure you choose one that will fit in your available space. Depending on how much room you have, an 18-cubic-foot fridge should work fine. You can go with one that’s 22 cubic feet if you have enough room to accommodate its height. If you just want stainless for the front of the fridge, there are models available that have a stainless front and black sides.
• Range: Prices can vary for stainless ranges, depending on brand and design. You could end up spending as little as $650 for one. You can choose a range that’s completely stainless or one that’s a mix of stainless and black for a little contrast.
• Dishwasher: For a dishwasher, you’ll probably spend around $600 or more for one that’s all stainless. You can find ones that mix black with stainless at a lower cost, but the full stainless look works better for this appliance.
• Microwave: When upgrading to stainless kitchen appliances, don’t forget about the microwave. You’ll find stainless ones in a wide range of prices, depending on whether you’re getting an over-the-range one or a counter-top one.

Want more advice on getting your home ready for selling? Just ask!

12 Simple Steps for Staging Your Home

Earlier in this blog, we tackled the question of whether staging your home will help it sell faster and the answer from our brokers and agents was a resounding YES! Now, we’re pleased to provide you with 12 simple home staging steps to help you get started.

1. Assess the room. What is the room’s current function and can it work as anything else? What would you notice as a potential buyer?
2. Pick a focal point for each room. Select one asset that highlights the room’s attributes and draw attention to it.
3. Remove clutter. To sell a house, it’s better to remove knickknacks and mementos so buyers feel like they are shopping rather than intruding.
4. Depersonalize. Remove personal collections and purchases.
5. Renew, repair or replace. Now is the time to repair and replace all those little items you could live with but that may make a potential buyer wonder “what else is wrong.” Before undergoing major renovations or repairs, check with your real estate sales associate.
6. Rearrange furniture. Showcase spaciousness by minimizing furniture in dining rooms, bedrooms and living rooms. The pieces you remove could go into storage or be re purposed in other rooms.
7. Re-accessorize. Highlight the focal point of each room. To do this you may want to go back to boxes of items you removed from other rooms. Is there anything that you can use that will coordinate well with your plan for this room?
8. Fine-tune your work. Make sure all details are exactly as you want them. Walk through each room and make sure your attention goes to the desired focal point. Do this exercise with a friend or neighbor and ask them to identify the room’s focal point. If it is not clear, than revisit steps one through seven.
9. Clean, clean, clean. Cleanliness leads to sales. Straighten up closets, clean inside the kitchen and medicine cabinets. Dust and polish dishes in the china cabinet. Generally assume potential buyers will examine every nook and cranny of your house.
10. Add life. Use potted plants, a bowl of fruit, natural lighting, or anything else that brings the outside in to create a warm environment.
11. Prepare to show. Get in the routine of showing your home. A checklist of showing instructions is available for you on page 14 of ERA Real Estate’s Ready. Set. Sell. Home Staging Guide.
12. Ask for help. Your real estate sales professional has many resources to help you sell your home fromstorage facility ideas to discounts on repair supplies. As you prepare your home for sale, ask before you act.

For additional tips and checklists from curb appeal to Room by Room interior staging, refer to ERA Real Estate’s Ready. Set. Sell. Home Staging Guide by clicking here. And remember, when selling your home, as an ERA real estate professional, I am always ready and willing to help.