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      Blog :: 08-2016

      5 Things Renters Should Know About Owning

      For renters who aspire to be homeowners, transitioning from an apartment to a house requires a shift in their thinking that they may not be prepared to make. The financial changes that come with owning, the need to consider planting longer-term roots in a neighborhood, and new neighborhood rules are things renters may not be thinking about enough.

      As their real estate agent, it’s important for you to be there for your clients when they’re embarking on a life-changing event such as buying a home.

      Moving can already be one of the most stressful times in a person’s life, but it may be doubly so for a new home owner. In order to be their most reliable resource, using your knowledge and experience to provide them with guidance, share these helpful nuggets of information with your clients so their transition from renter to owner can be as smooth as possible.

      They need to understand how their financial investment is changing. Renters may see an increase in their monthly rent every lease term, but they don’t see exactly where it goes — toward property taxes and insurance, even “luxuries” such as trash pickup. As homeowners, they don’t have a landlord who handles all those details, so they need to be ready to juggle the financial responsibilities of home ownership. Have an open conversation with your clients about these changes and the importance of budgeting to make sure they make smart financial decisions during this process.

      They need to be happy with their location for the long-term. As a renter, you can bounce around from home to home every year if you want. But when you own a home, you have to stay put — unless you plan on renting it out, which most homeowners don’t. Impress upon your client that location is going to play a much more significant role in their future, so they should think about evaluating school districts, access to amenities, and commute time now as they search for their next home.

      They may need to abide by new rules. Renters don’t think about possible homeowner association rules they may be governed by, such as trash pickup rules or any curfews or rules pertaining to animals. Make sure to get all the information on neighborhood rules and associations to help your client understand what their new obligations will be.

      They’ll need to get into the mindset of an owner. Life as your client knows it is about to change. Once your client purchases a new home, they will no longer have a landlord to tend to their many needs, including lawn care and plumbing. The best way you can help them as their real estate agent is to provide them with contact information for local industry experts. They will eventually need certified specialists ranging from HVAC companies to carpenters to electricians. Let them know they don’t have to do everything themselves.

      They should know their neighbors can affect their value. Renters don’t care who their neighbors are as long as they’re quiet (enough). But your client is now going to want to know whether their new neighbors are renters or homeowners. This knowledge can help your clients gauge current and future home value in the neighborhood. If the neighborhood consists mostly of rental properties, it is likely a home owner will lose money on their house in the future. Renters do not always feel responsible for maintaining their properties the way homeowners do. Property value comes down to curb appeal. Less-appealing neighborhoods often have more appealing prices, which is not always good for buyers and home owners.

      Source: Rob Rimeris is the owner of EverSafe Moving Co. in Philadelphia. EverSafe is a five-star, full-service company that offers affordable moving and storage services.

      Real Life vs. Reality TV: 5 Myths Explained

      Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV ‘show hole’*? We’ve all been there… watching entire seasons of “Love it or List it,” “Fixer Upper,” “House Hunters,” “Flip or Flop,” “Property Brothers,” and so many more, just in one sitting.

      When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on TV must be how it works in real life, but you may need a reality check.

      Reality TV Show Myths vs. Real Life:

      Myth #1: Buyers look at 3 homes and make a decision to purchase one of them.

      Truth: There may be buyers who fall in love and buy the first home they see, but more often than not the process of buying a home means touring more than three homes.

      Myth #2: The houses the buyers are touring are still for sale.

      Truth: The reality is being staged for TV. Many of the homes being shown are already sold and are off the market.

      Myth #3: The buyers haven’t made a purchase decision yet.

      Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.

      Myth #4: If you list your home for sale, it will ALWAYS sell at the Open House.

      Truth: Of course this would be great! Open Houses are important to guarantee the most exposure to buyers in your area, but are only a PIECE of the overall marketing of your home. Just realize that many homes are sold during regular showing appointments as well. 

      Myth #5: Homeowners make a decision about selling their home after a 5-minute conversation.

      Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their home and move on with their life/goals.

      Bottom Line

      Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality!

      *Show Hole - A side effect of binge-watching. Symptoms include a sense of emptiness and depression brought on by realizing you just wasted a good portion of your life watching several seasons of a TV show or an entire movie franchise all at once when you could have managed your time better.

      Interest Rates Back To Historic Lows!

      Today's Mortgage Rates: 08/12/2016

      30 Year Fixed 3.250%,       (APR 3.258)*

      15 Year Fixed 2.625%,       (APR 2.631)*

      7 Year ARM 2.875%,          (APR 2.880)*

      Jumbo 30 Year 3.625%,      (APR 3.629)**

      Jumbo 15 Year 2.8750%,      (APR 2.902)**

      FHA 30 Year 3.000%,          (APR 3.005)*

       

      *Annual Percentage Rate (APR) based on a 80% LTV (loan-to-value) for a single family, owner-occupied primary residence for a $400,000* loan amount, or ** 80% LTV for a $1,000,000** loan amount. All rates are 0 points. Additional down payment options and loan programs are available. Rates may vary and are subject to credit approval and income qualification.

      Pre-approvals |Purchases | Refinances | Conforming and Jumbo loans| FHA | VA Home Possible| Home Ready | Non-agency | Investor programs |Non- QM

      Contact us for more details  617-536-8000

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