If you’re thinking about moving, you have to make a decision: do you buy your new home first and then sell your old one? Or sell first and then buy?

The biggest obstacle to selling first is that you may have to move twice – first into a rental, then again into the next home. Many buyers need to sell first in order to free up cash to purchase a new home. If you buy before you sell, making a contingent offer on the new home or taking out a bridge loan can make your decision, and the moving process, easier. But there are some important factors worth considering:

• An offer to purchase a new home that’s contingent upon the sale of your current home can be "bumped" if another buyer makes an offer that is not contingent.

• To make the contingent offer more appealing to the seller, many buyers offer full price. But making a contingent offer may cost you negotiating leverage on both ends. A full price offer to the seller means you lose the ability to negotiate the sale price, and also puts pressure on you to accept a lower price on your current home in order to sell it quickly.

• A bridge loan provides interim financing to “bridge the gap” until your first home sells. It also means making two house payments until your old home sells, so you need to decide how long you will be comfortable paying for two homes at the same time.

Your decision to buy first or sell first depends on your individual circumstances and the market conditions in your area. Please call or send me an email if I can help with more information to make your decision easier.

Recent news stories about so-called ‘subprime’ loans illustrate that it’s a good idea to shop carefully for a loan, especially one whose payment amount won’t abruptly increase and jeopardize your ability to make monthly payments and possibly lead to foreclosure.

If you’re shopping for a loan, here are some important things to ask a prospective mortgage broker:

• What will his total compensation be from you and the lender for the loan he helps you to get?

• How will her compensation vary depending on what type of loan you choose or which lender makes the loan?

• Is he willing to work for a flat fee agreed to in advance and to rebate to you any additional compensation he receives from the lender?

• How many lenders does she work with on a regular basis? Do any of them account for a majority of her business?

If you are thinking of purchasing a home, I can help you. I have a team of professionals to help you select a loan that will be best for your needs.

If you are considering a refinance, a home evaluation can give you a good idea of what your home is worth and I can give you a general price range right online based on recent sale prices of comparable homes in your area. For a more precise estimation of value, I can drop by for a quick review of your home.

As the price of energy continues to rise, so too does the importance of using it efficiently in your home.

Increasing your home’s energy efficiency doesn’t cost a lot and the financial savings can add up quickly. Plus, when you decide to sell, the resulting lower utility costs give you a marketing advantage with today’s savvy buyers.

Take these 5 steps to make your home more efficient:

1. Replace your old thermostat with a new programmable digital model.

2. Replace incandescent light bulbs with compact fluorescent lights (CFLs).

3. Replace the seal around your refrigerator and freezer doors.

4. Get a furnace tune-up and replace the filter every three months.

5. Install a ceiling fan to circulate warm air from the top of a room down to the bottom.

Many utility companies offer free energy audits that show you where your home is wasting the most energy. The audit pinpoints areas for home improvement.

If you’re thinking about buying a home, you’ve probably developed a pretty clear mental picture of what your new home should be like. But remember that even a home that’s not in ideal condition can still have great potential.

Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:

• The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.

• Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.

• The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.

Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.

If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.

If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.

If you’re thinking about buying or selling a home, a recent report by the National Association of Realtors measured how certain characteristics influence the value of a property. Here are some of the findings:

• A remodel adding an additional 1,000 square feet of living space increases a home’s market value by just 3.3%.

• Adding an extra bedroom adds about 4% to the price while an additional bath can add 24%.

• Houses advertised as “fixers” sell for 24% less than other houses.

• A garage adds about 13% to the price.

• Central air conditioning adds about 12% to the price.

• A basement increases a home's value by an average of 9%.

• A sitting area in the master bedroom increases the price by about 8%.

• Features that add the most value are a family room, a dining room, a whirlpool and a security system.

This information can help determine the return you can expect to see on your remodeling investment as well as to compare property values when you’re shopping for a home.

Did you know that condominiums are one of the fastest growing segments of the housing market? Owning a condo is perfect for those with busy lifestyles, little interest in home maintenance or landscaping chores or who frequently travel. Condos are a fine choice for a first home or when downsizing from a larger house.

Here are some pros and cons to consider:

Condo:

·         Fewer maintenance requirements.

·         Usually less expensive than a single family home.

·         You own the space inside the walls.

·         There can be more security with neighbors close by.

·         The exterior of the building, landscaping, surrounding roads and driveways, and common areas all owned by the condo association, a group made up of all unit owners.

·         Special assessments by the association for painting or repairs can be a substantial added expense.

Single family home:

·         Usually offers more storage space.

·         You own the interior as well as the exterior.

·         You are responsible for all maintenance, landscaping and repairs.

·         You usually don’t have to pay community dues or special assessments.

·         You have room to grow plants, flowers, trees, veggies, etc.

Think about how your household may change over the next few years. Will you still need a larger home or will you have enough space in a condo? Or would you be happier in a smaller house with room for a garden?

Many of us have a rather cavalier attitude about home improvements. We are convinced that we can tackle the project from start to finish and that no harm will befall us--even though we may be amateurs working with power tools or electricity at dizzying heights.

You can greatly reduce your risk of injury by employing these proven safety techniques:

When it’s time to make a move, one of the first decisions most people think about is whether to buy a brand new house or a previously-owned home. Here are some distinct advantages of each choice:

New house:

• Modern floor plans that could include a “great room,” bigger closets, more baths,

entertainment room, etc.

• The opportunity to choose upgrades and customize floor coverings, colors and more
• More energy-efficient insulation, windows and heating/cooling systems
• The added protection of a warranty from the home builder

Resale home:

• Existing features, including window treatments and mature landscaping
• Location -- existing homes are often closer to metropolitan areas instead of farther out in the suburbs
• Established neighborhoods and sense of community
• The opportunity to use an existing home as a base to remodel and create a unique property

Only you can decide if a brand new home or one with a few years on it is right for you. If you would like additional information on which option might work best for you, don’t hesitate to reply to this email or call me with any questions.

Homeowners look for one set of criteria when buying – school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:

1.    New single-family construction

2.    A neighborhood that is mostly a primary-home community (rather than renters)

3.    Square footage between 1400 and 1600

4.    3 bedrooms, 2.5 baths with 2-car garage

5.    Nice yard but no pool (too much of a liability)

6.    Safe neighborhood with little or no graffiti on public structures, fences, etc.

Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently—to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.

It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.

If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don’t hesitate to call or send an email.

While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.

In addition to a real estate agent (and your tax advisor), some team members for you to consider are:

1.    A builder or general contractor who can evaluate the structural integrity of a unit

2.    A specialist in leases who is experienced in writing contracts

3.    An attorney who practices in real estate law

4.    A mortgage professional who can offer you different financing options

Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.

In addition to helping you find investment properties, please feel free to call me or email for the names of people who might be interested in becoming a member of your team.

Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.

Buy a Fixer-Upper and Sell Again

In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:

1.    Can I buy it far below market value?

2.    Can I do much of the work myself (or contract it out at reasonable rates)?

3.    Can I get the job done quickly?

Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.

Buy, Raise the Rents, and Sell Again

Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn’t raised the rent in years, or perhaps the property is not maintained well.

Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI—the gross potential income—which is the maximum gross income generated from the rent if all the units were occupied.

If you would like more information on these types of investment properties in our area, please don’t hesitate to give me a call or send an email.

Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called “serial purchasers”, they continue to buy (and hold onto) additional properties.

Other investors prefer to find a quicker path to real estate riches through one of the following ways.

Buy and Flip

Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).

Buy and Scrape

Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there’s an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.

Buy and Split

Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.