It is a great idea to establish a relationship with a realtor when purchasing a property. By paying close attention to his advice and counsel, you can save time, energy and you can realize a quicker sale of your home. When you first approach a realtor is it always good to sit down and get an understanding of what their role is and what their roles and responsibilities are. Many times a realtor can also advise you as to what areas new homes are going for as well as what steps you should be taking in order to make your own home more sell ready. In some instances, a realtor will work with you and the mortgage company, assisting you during the paperwork and financing process. Ultimately, a realtor can save you big bucks during this exciting, yet complicated process.
Realtors Can Manage the Confusion
Often, home buyers and sellers find themselves overwhelmed. Realtors are professional masters at managing all of the confusion and stress that buyers and seller go through. This is where you should simply let your realtor handle the myriad of details and just make certain you are apprised of the results and the necessary details.
Stage your Home
In real estate, appearance is everything! When your realtor advises you to consider focusing certain rooms of your home for staging areas, take this advice seriously. Most professional realtors understand that you have to create an atmosphere of quality and comfort for the buyer. So, if the realtor suggests that you paint certain walls, or replace dining room or living room drapes, do follow through on the suggestions. By doing so, you can increase the value of your home. Plus, it will sell more quickly. Buyers want to see sparkle and shine and by staging certain rooms to reflect that you are going to be well ahead of the sales game.
Realtors can Assist You with Finances
One of the biggest advantages of working with a realtor is the ability to leverage their expertise in the area of home finance. Realtors can walk you through what are the best finance options available, as well as where you can cut cost on your mortgage payments. By having a professionally and respectful relationship with your realtor, you can both save money and get a good deal for your home.

About The Author

Kevin Hughes is a  Boise Idaho real estate agent servicing buyers and sellers in Idaho. If you’re looking for a great home in Idaho, you can visit Kevin’s website where you can search great cities like Boise, Meridian, Nampa, and Eagle.

The Investment Aspect

As a rule of thumb, homes appreciate by 4-5% per year. Real estate is hyper-local, so this number will vary by neighborhood, but nationally, 4-5% is the average. That may seem conservative with the wild swings we have observed in the stock market over the last couple years, but the return on a safe investment is 5%, plus you get to live in it. So, putting your money into a home every month is definitely a good investment.

Additionally

Let’s say you bought a home for $200,000 and put 20% or $40,000 down. At the rate listed above, if your new home appreciated by 5% in the first year, that is $10,000 in appreciation. That means with the $40,000 your Return on Investment, or ROI, is over 25%. That’s crazy! Of course there are property taxes and other expenses, but you also would have paid on the principal. Any investor would jump on an ROI like that! Have you ever heard of an investment with a greater return? Plus, you get to live in it.

Uncle Sam Pitches In

As of now, the interest you pay on your mortgage is deductible on your income taxes. So, the government is helping make homeownership more affordable. Let’s say you have paid $8000 toward interest and your salary is $50,000. This effectively reduces your salary to $42,000. In addition to mortgage interest, the amount of property taxes you pay are also deductible. So, homeownership helps greatly reduce your tax burden each year. Plus, you get to live in it.

The Payment is the Payment is the Payment

If you have been renting for many any length of time, you know that the rent almost always goes up each year. With a fixed rate mortgage, your payment will stay the same for 30 years, or whatever the length of your mortgage is. The only exception is your property taxes, which can change based on new special tax jurisdictions or other propositions usually put to a vote.

Many homeowners escrow their taxes, which means they have their lender collect and pay their property taxes on their behalf. This is mandatory unless you put 20% or more down when you buy the home. Due to miscalculations on the lenders behalf, your mortgage payment can fluctuate based on the property tax escrows. But most often, your payment will stay the same for years and years. Compared to going up each year, which do you think makes more sense. Plus, you get to live in it!

Savings that Actually Works

People are notoriously bad at saving money. That is why safeguards like 401k plans and escrow accounts are in place for things as important as retirement savings or property taxes. When you buy a home and have a fixed rate mortgage, the amount you are paying toward principal, and hence saving, increases each year. In addition, your home is appreciating, so you are saving each and every month. Plus, you get to live in it!

You Can Paint

When you are renting, an apartment or a house, the amount of individualization you can apply to your home is very limited. In most agreements, you must get approval from the property owner prior to doing any painting or improvements.

Additionally, it does not make sense to spend your money doing projects on a property that doesn’t belong to you. It is unlikely the landlord will be making many improvements either, since making money is the name of the game, which means keeping expenses low. But when you own your home, you can do whatever you like to it. It is up to you to make it your own. Plus, you get to live in it!

So as you can see, there are many advantages to home ownership, both financial and personal. Plus, you get to live in it!

About The Author: Kimberley Kelly is an experienced La Quinta short sale real estate agent helping home buyers and sellers in the Palm Springs real estate area. If you’re interested in learning more about Kim, please visit her Palm Desert real estate blog.