Should you prepay your mortgage? Click on the photo to start the video. Short and informative.
Interviewing several agents is probably a good idea. Working smoothly with your Realtor® is very important. You’ll want to determine your comfort level, commission structure, and level of expertise shown during your interview.
We’d love to be one of the real estate firms you choose to compare. We have a great sale track record and will be pleased to meet with you when you’re ready for a chat. Call John Kavaller at 845-492-0261 to schedule.
The idea of purchasing a property and having renters can be an exciting business venture that offers lucrative financial rewards. However, there’s a lot involved in being a successful landlord and it’s important to be aware of what’s required before making the commitment. Whether you’re investing in one rental property or five, here are some questions you should ask yourself before getting involved.
Can You Do-It-Yourself?
There’s a lot more to being a landlord than taking the rental check, and one of these things is being there for the tenant when push comes to shove. If there are issues with the heating or the fridge breaks down, you’re going to be the one who has to facilitate or complete the repair, so you’ll need to have the wherewithal to fix problems effectively. While there are many situations where a repairperson can help, having some DIY skills goes a long way towards turning a better profit.
Do You Have The Time?
Weeks and even months may go by where your tenant requires little to nothing from you, but if you own an older property or have several renters, even maintaining the place can get to be quite a bit of a chore. It can be a good expenditure to have a contractor take care of these issues, but you’ll still have to use your time to find the right person and oversee the budget. If you already have a pretty full schedule, being a landlord will add a lot more to the pile.
Can You Deal With The Risk?
It can be easy to turn a profit if you have a renter, but if you happen to own property in a vacation area or a community on a downturn, it may be more difficult to find renters consistently. There may be periods of time where tenants are scarce, and this means that you’ll have to be comfortable with financial instability in order to weather the storm. While the moneymaking months can make up for the off-season, if you doubt your ability to take on the financial risk, this may not be the right choice.
Being a landlord is a considerable responsibility that will require you to take on financial risk and serve your tenants effectively and efficiently. If you’re thinking of becoming a landlord and are looking for a rental property, contact John Kavaller. He has vast experience and will share the “ins and outs” of how to buy, maintain, and meet the many challenges associated with income producing properties.
With all of the home renovation and fixer-upper shows on television, the idea of completely renovating and re-doing an old home can seem like an enticing premise. Unfortunately, investing in the wrong fixer-upper can mean an awful lot of expenditure without the added financial rewards. Whether you’re considering investing down the road or are ready to dive in, here are a few things to consider first.
How Much Do You Want To Spend?
It’s easy to be swept away by possibility, but before making an offer you’ll need to sit down and determine exactly what you’re willing to invest into upgrades for your fixer-upper. By deciding what you would want to renovate, what the cost of materials and labor would be and how this figures into the market price of the home, you’ll be able to determine if the price you’re offering will be worth it.
Are Major Repairs Required?
It’s one thing to consider a nice paint job and new tiling in the kitchen, but if there are serious issues with the home, it can create huge financial issues to put money into it. Because foundational issues or water damage throughout the home can be expensive items to repair and will take time and resources, fixing these issues may cost more than the money you’ll make. If you’re uncertain about what you’re getting into, it may be a wise decision to bypass the investment all together.
Are You Willing To Work?
Most home fixer-uppers that people buy can be financially lucrative because the buyer is interested in doing a lot of the work themselves. However, if you’re thinking of hiring people to do the work for you, this can end up costing a lot more money and eating any profits the renovations might have created. It’s also important to realize that renovations can go over budget. Instead of being idealistic about a fixer-upper, ensure you’re certain it’s what you really want so that you’re not stuck with a home you don’t want to invest your efforts into.
The idea of digging in and getting your hands dirty with purchasing a fixer-upper may be endearing, but if you’re not truly prepared for the responsibilities it can be a drain on your time and your finances. If you’re currently considering purchasing a home in need of help in your neighborhood, contact John Kavaller for a frank discussion of possibilities.
It’s a great feeling to get an offer on your home, but there can be a lot of details that go into seeing the negotiation through to completion. If your home is currently on the market and you’re expecting buyers to snap it up soon, here’s what you’ll need to know to get your ideal price in no time at all.
Remember To Counter Offer
A potential buyer will generally offer you a price that is lower than what they are willing to pay to see if they can get it, so it’s important to not get so excited by it that you give up on negotiating. While it’s a necessity to be a little flexible on price, it’s still important to get an offer you can feel good about.
Give Them Time, But Not Too Much
It’s important to give buyers the time needed to mull over any counter offers or final negotiations, but you don’t want to stave off other potential buyers in the interim. Instead of missing out on other viable buyers, give the interested party a frame of time to decide so they and you can walk away without hesitation when it’s passed.
Continue To Communicate
If you don’t express any measure of interest for a buyer’s offer, there’s a good chance they’ll walk away, so ensure you’re communicating clearly about your price expectations and the value of your home. By keeping the potential buyer aware of your reasoning and timelines, they’ll probably be impressed by your professionalism, which can work in your favor.
Don’t Forget About Home Repairs
It may be easy to forget about the importance of the home inspection, but any issues uncovered can change the offer price of your home or cause negotiation breakdown if there’s a significant problem. Instead of getting derailed, ensure that you’re willing to drop down your purchase price to cover necessary repairs or get the fixes made yourself so the deal can move forward.
There are a lot of details to work out when it comes to selling a home, but negotiations are key in maintaining a potential buyer’s interest. By keeping the communication lines open and being clear about your timeline, you may be well on your way to a home sale. If you’re getting ready to put your home on the market, call John Kavaller for a pricing opinion and suggestions on how best to sell your home for the highest price with the least amount of hassle.
If you want to sell your home quickly — and for the most profit — you can’t just list it and cross your fingers. Successful sales are well-planned sales, and there are several ways in which you can make sure your own home sale turns out as you’d like it to.
- Know Your Target Market
What kind of people are buying homes in your area? Is your neighborhood popular among new families, retirees, young singles? Do a little research to see what type of buyers are typically attracted to the area, and figure out how your home caters to their lifestyle. Marketing is one of the most important aspects when it comes to a successful home sale, and knowing who to target is the first step.
Once you have learned a bit about your potential buyers and what they’re looking for, use that information to guide the rest of your sale preparations. Consider what you’ve learned about their wants and needs and carry that into any renovations you do, your listing, and your open houses. Make your home one that your buyers really want to live, and you just might find yourself in the midst of a bidding war!
- Call In The Pros
When you sell your home without enlisting in the help of a professional, you open the door for significant mistakes to be made. Real estate professionals have the expert knowledge and experience that is needed to steer your home sale towards the best possible outcome. They can offer advice on listing price, marketing materials, open houses, offers received, and can take care of paperwork.
Attempting to do everything yourself may sound feasible, but you could sell yourself short by accidentally pricing your home too low, or you may be on the market forever if you price it too high. Mistakes in contractual paperwork could land you in hot water, and overall you’re more likely to experience stress during your home sale if you try to do it all yourself. Find a real estate agent that you’re comfortable with, and you’ll be more likely to get what your home is worth without the extra stress.
- Fix It Up
Making sure that key renovations are up-to-date before selling your home is another crucial factor if you want to sell it quickly and profitably. Important things to consider include your kitchen, bathrooms, and roof, as buyers tend to scrutinize those areas the most during a walk-through. Make sure that everything is in good condition and looks presentable before listing — you don’t want potential buyers to see any red flags when looking at your property.
Ready to sell your home? Contact John Kavaller today to make the most of your sale.
If you’ve been perusing the real estate market with the hope of purchasing a home, you may be aware that the often-touted amount you should put down is 20 percent. However, there are good things and bad things involved in investing so much money into your new home. If you’re wondering how to decide on your down payment amount, here are some things to consider before putting in 20 percent.
No Rainy Day Fund
It might seem like the best option is to put down as much as you can, and use up your savings if needed, but putting all of your money into your home can be a mistake. While you may not foresee any financial issues arising in the next few years as you pay down your mortgage, not having any extra money can put you in a vulnerable position if the market shifts or other life issues appear. Investing in a home is a good choice, but you may want to protect some of your other assets.
Lowering Your Monthly Payment
While putting down the full 20 percent can seem like a huge chunk of change, it can be a boon for your monthly finances in the sense that your monthly mortgage payment will be automatically reduced. While this is a good thing and can make your monthly amount more manageable, it’s important to remember that your monthly payments should be affordable and you shouldn’t be stretching for extra house because you can. Make sure you’re buying a home you can afford, with or without 20 percent.
Avoiding Mortgage Insurance
Putting less than 20 percent may seem like a good decision if you’re ready to buy a home and don’t quite have the money saved, but putting less down can actually increase the cost of your home overall. Because you’ll have to pay mortgage insurance if you put down less, this will add to your monthly payment and will be money that you can’t get back. If you’re ready to dive into the market, you may want to move forward, but it can also be a better investment to wait and save a bit more.
20 percent is often the magic number when it comes to a down payment, but there are pros and cons associated with putting this much money down. If you’re currently on the market for a new home, contact John Kavaller for a frank discussion on how to best approach down payment percentage.
It’s often the case that people will opt to postpone home ownership until the best rates are available or it’s a more stable investment, but in an ever-shifting market it may not be the best decision to put such a sizeable investment off. If you’re wondering whether or not you should put off investing in a home, here are some reasons you may want to start putting your time into searching for a home.
Interest Rates Always Fluctuate
While interest rates are constantly changing and have certainly risen since the economic recession of 2008, they still remain relatively low and this can make investing in a home an even better financial decision. There are no certainties that market rates will remain low, but given a lower monthly payment and the easier qualifications nowadays to acquire a loan, the present may be the best time to start investing in your own place.
Investing Early Reaps Financial Rewards
It’s easy enough to wait for a lower home price or even improved interest rates, but there is no guarantee that the market will shift down. In the meantime, you may be spending at lot of your monthly paychecks on rent. If home ownership is one of your goals in life and you’re living month to month with a high rental payment, investing money into a home is a sure way to gaining equity for the future, even in the event that the market shifts up.
It’s A Good Time To Buy
When it comes to the market, there may always be a time coming when you’ll get a better deal, but the fact remains that homes tend to remain on the market a lot longer these days and it’s largely a buyer’s market. There are no guarantees that you’ll be able to find the house you want at the price you can afford, but there are a lot of good deals to be found these days and investing sooner is an opportunity to reap financial rewards down the road.
Many people hold off on home ownership because they are waiting for prices to come down or interest rates to change, but the sooner you invest in a home, the more you can benefit from investing into something that is entirely your own. If you’re currently perusing the market for a home at a price you can afford, you may want to contact John Kavaller. As a Licensed New York State Real Estate Broker, he can make several recommendations on lenders to work with.
With approximately one million people having purchased vacation homes in the last year, this type of residence is gaining popularity for those who are interested in a home in a beach setting or a vacation hot spot. However, while a second home can seem like a great purchase and solid investment opportunity, there are different requirements that go into this type of purchase. If you’re considering a vacation home, you may want to be aware of the following financial factors.
The Down Payment Amount
If you currently have a primary residence, you may be aware that you don’t need to put down 20% or even 10% in order to make a home purchase, but things are different when it comes to a vacation home. Because you will be taking on an additional mortgage, there is greater risk involved, and this means you will likely have to put in at least 10 percent. Because of this, many homebuyers utilize the equity they have in their first home to make up the down payment.
About The Credit Score
Most people that have a credit score of more than 500 have the ability to use a mortgage product and purchase a home, but if you’re buying a second property, you’ll need a higher credit score in order to facilitate the purchase. Because there is more risk involved, lenders will want to make sure you’re a good bet. In addition, if you do have a lower credit score, lenders like Fannie Mae may also expect you to put more down to decrease the risk involved for them.
The Income Required
Since you’ve been through the mortgage process for your first home, you’re probably aware that you debt-to-income (DTI) ratio needs to be a certain amount in order to qualify for a mortgage. While your DTI for a primary residence may be a little bit higher since it’s your only payment, this ratio will be lower for your vacation home since it’s higher risk. This means you’ll require a slightly higher income than for your primary residence in order to get approved.
Deciding to purchase a vacation home can be a very exciting concept for many people, but there are a number of different financial requirements that go along with buying another residence. If you’re on the market for a vacation property and are curious about what’s involved, contact John Kavaller for suitable option and advice.
While many people may be hesitant to consider real estate as a viable long-term investment, owning property has a steady historical track record and isn’t as volatile as other investment markets can be.
Any investor who hasn’t seriously considered it as an option should take a closer look at the benefits of owning real estate and why it is the ultimate long-term investment strategy.
It Becomes A Consistent Source Of Income
Investing in rental property has the added benefit of being able to show regular returns in the form of rental income. Unlike other long-term investments that require a level of patience in order to profit, real estate can provide a large sum return in the future while still providing financial benefits on a monthly basis.
An Investment That Anybody Can Participate In
Many forms of investment require a level of skill or familiarity in order for first timers to jump straight into it with any level of confidence. Real estate is one investment that anybody can enjoy, thanks in part to the insight that can be gained from family and friends who have gone through the same process.
The level of knowledge that’s required to invest can be gained with some simple investigating to learn more about local areas that have increased in value and the kinds of homes that are popular. John Kavaller can take that information and add to it, providing invaluable expertise to the process.
Consider It To Be A Guaranteed Retirement Plan
Saving for retirement has become harder to commit to as each year goes by. Money being left in a savings account or an easy to sell investment can be dipped into at any point, leaving very little when retirement starts to roll around.
Using property as a long-term retirement plan requires a level of commitment to the investment and upkeep to the property that guarantees there will be something tangible to bank on later in life.
While investing in real estate may seem simple, especially when compared to other investment markets, it’s still recommended to consult with John before making any decisions. He has a level of knowledge about which areas will be the wisest to invest in depending on how long in the future you are looking to sell. Contact John for a substantial conversation about real estate investment FREE.