BiggerPockets

The Honey-Do List Before You List

Thursday, May 17

Everyone has encountered the "honey-do" list at one time or another in their lives. This is the list of tasks that your "honey" gives you to complete. They can range anywhere from cleaning out the gutters of your Northern Virginia/South Carolina home to picking up a gallon of milk from the store on the way home. When you are selling your home, there is a "honey-do" list of tasks you need to take care of BEFORE you list your home.

Get Your Paperwork in Order - The more information you have about past repairs, warranties on appliances and updates you've done to your Northern Virginia/South Carolina home, the easier it is for your real estate agent to know what to highlight on your listing to make it the most appealing possible. Home warranties are especially important because this information will most likely transfer on to the new owner.

Eliminate the Clutter - Depersonalizing your Northern Virginia/South Carolina home makes it easier for potential buyers to imagine themselves inhabiting the space. You can also get a jump on your packing, which will eventually need to be done anyway. Finally, de-cluttering makes a room look lighter, brighter and bigger.

Getting Down and Dirty - No matter what time of year it is, a good bit of spring cleaning is important before you list your Northern Virginia/South Carolina home. Steam clean the drapes and furniture, deep clean the carpets, scrub the grout, make your windows sparkle and move the refrigerator so you can get into the nooks and crannies where dirt likes to hide. Buyers will be looking EVERYWHERE in your home when considering whether to purchase it. Dirt, stains and bad smells (smoke and pet odors in particular) can really turn a buyer off.

Repair, Replace or (Officially) Estimate - Now is the time to really dust off that old "honey-do" list you've had folded in your pocket for months. Little repairs, like fixing a loose doorknob, replacing a ripped window screen or tightening a gate latch may seem like small potatoes to you, but they make buyers think that there might be something bigger that you haven't taken care of in the home. Get estimates for larger repairs that you are unable to take care of at this time so you can present them to a buyer, if needed. Spend the money on an official home inspection. This will allow you to see if there are any larger issues that need to be taken care of before you list. If you take care of them first, 1) a buyer will never know they existed in the first place and 2) you will be able to get a decent asking price for your Northern Virginia/South Carolina home. Keep in mind that buyers tend to overestimate repairs by as much as double the actual costs, which affects the sales price of your home.

Set the Stage - After the de-cluttering, cleaning and repairs are completed, begin staging your home. Moving furniture around to better show off certain areas of your home, adding pretty potted plants and flowers and sprucing up the exterior areas will turn your Northern Virginia/South Carolina home into a real showplace for potential buyers.

Don't put it off any longer. Take care of these items on your "honey-do" list BEFORE you list your Northern Virginia/South Carolina to sell. That way, you can get the best possible price in the least amount of time needed. When you're ready to sell or simply have some questions you need answered, just let me know.

FEATURED PROPERTY OF THE WEEK

For more information on this home, please click here.

Gene Mock, your source for real estate in Northern Virginia, South Carolina and Washington DC

Originally posted on my Northern Virginia Homes real estate blog here: http://northernvirginiahomes.net/2012/05/17/the-honey-do-list-before-you-list/.

Pros and Cons of Adding a Pool

Thursday, May 10

Warmer weather makes the idea of cooling off in your very own pool rather enticing. Yes, a swimming pool adds some value to your Northern Virginia/South Carolina home as well as enhance your lifestyle. But is the cost to construct and maintain a home pool worth it? You should weigh the pros and cons of adding a pool before you begin.

PROS

• Great for no impact workouts
• Wonderful place to hang out with the family and friends
• Adds value to your home

CONS

• Can be a drowning hazard for children if not properly contained
• Mosquitoes love a moist playground to breed
• Costs thousands of dollars to install and that's before you factor in the cost to maintain it year round

In all likelihood, your Northern Virginia/South Carolina pool will cost you much more than the increased value it brings to your home. You can overcome some of the negatives by fencing in the pool and adding a self-locking gate, removing any furniture or other items around the fencing that can be used to crawl over it, adding a pool cover and/or simply keeping your pool properly maintained even in the off season. When it comes down to it, you need decide whether adding a pool to your Northern Virginia/South Carolina home is worth the time, effort and money involved for your lifestyle...not the value you think it might add.

QUESTIONS TO ASK YOURSELF

• Do other homes in your neighborhood have pools? If yes, a pool will help you compete with these other homes when it comes time to sell. If not, it won't make much of a difference in value unless you live in a highly desirable neighborhood (where being the only house with a pool allows you to stand above the rest).
• How do Northern Virginia/South Carolina homes with pools in your neighborhood sell in comparison with those that don't? This is a question your real estate agent should be able to answer for you.
• How long do you plan on staying in your Northern Virginia/South Carolina home? Families who love spending time in the water will benefit from having a pool whether it adds value or not, especially if you plan on staying there for a while.

Consider the pros and cons of adding a pool carefully before you begin digging a hole in the ground of your Northern Virginia/South Carolina property. It can be an expensive endeavor but, depending on your lifestyle and the amount of time you plan to spend in your home, it may well be worth it. Only you can decide that for yourself.

FEATURED HOME OF THE WEEK

For more information on this home, please click here.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Northern Virginia Homes real estate blog here: http://northernvirginiahomes.net/2012/05/10/pros-and-cons-of-adding-a-pool/.

Can I Afford That Home?

Thursday, May 03

Buying a Northern Virginia/South Carolina home is a major financial decision. Just because a mortgage company says you qualify for a specific amount doesn't mean you HAVE to spend that much. In fact, with the Homes for Heroes Program, you won't have to worry about breaking the bank to achieve your goals of homeownership. There are several factors to mull over when you are trying to decide if you can afford that Washington DC home.

In general, financial experts recommend that you don't spend more than two to three times your annual gross household income on a home. For example, if your total annual income (before taxes) for you and your spouse is $90,000, you should be able to comfortably afford a mortgage payment on a home priced between $180,000 to $270,000. If you qualify for a home in the Homes for Heroes Program, you can actually look at homes that are traditionally priced even higher and still stay within that price window after your discounts are factored in. To determine what your comfort zone is, you should sit down and tally your monthly expenses and then add in what the usual costs of homeownership are: mortgage payment, taxes, insurance, HOA fees (if applicable), etc.

How much are you going to be putting down on your Northern Virginia/South Carolina home? The higher your downpayment, the less you have to borrow and the less your monthly mortgage payment will be. Also, if you put at least 20% down, you won't have to pay Private Mortgage Insurance (PMI), which is required by every mortgage company when borrowing more than 80% of the home's purchase price. The lower your downpayment, the higher your monthly mortgage payment will be.

If you are currently renting a Northern Virginia/South Carolina home, you can use your rent payment as a guide for what you can afford for your monthly mortgage payment. Homeowners receive certain tax benefits that renters do not. When you factor in these benefits, you can actually afford a payment about 1/3 more per month than you currently pay in rent (which includes your mortgage payment, taxes and insurance) without any change in your lifestyle at all. That means, if you currently pay $1200 per month for rent, you can actually afford 1.33 times that amount for your mortgage payment (or $1596 per month). However, if you're having trouble paying that $1200 per month, you should look for a Homes for Heroes home that can fit comfortably within your budget.

Lastly, look at your total debt. Mortgage lenders are using the 28/41 rule for determining whether a buyer is a good candidate. Your monthly payment, which includes the principal, interest, insurance and taxes shouldn't be more than 28% of your gross income. In turn, this number plus all your other debts (car loans/leases, credit cards, student loans, etc) should not equal more than 41% of your gross household income. If your debt falls outside these numbers, you may find yourself struggling to make your monthly mortgage payment. That definitely does not make for a happy homeowner.

Take the time to consider these steps in determining if you can afford a Northern Virginia/South Carolina home. If you are a military serviceman, teacher, healthcare worker, fireman or policeman, I may be able to help you find your dream Northern Virginia/South Carolina home at a drastically reduced price through the Homes for Heroes Program. Just ask me how. I'd love to help you, especially since you do so much for the betterment of our community.

FEATURED PROPERTY OF THE WEEK

For more information on this home, please click here.

Gene Mock, your source for real estate in Northern Virginia, South Carolina and Washington DC

Originally posted on my Homes for Heroes DC real estate blog here: http://homesforheroesdc.com/2012/04/17/afford-home/.

Is That Fixer-Upper Worth It?

Thursday, April 26

Buying a Northern Virginia/South Carolina home is a huge financial decision for anyone to make. Home prices have become incredibly affordable. When partnered with low interest rates and the inventory available, your options as a home buyer are tremendous. While a move-in ready home is fantastic, some buyers are looking at buying low and then fixing it up themselves to get the best deal possible. However, how do you know if that fixer-upper is worth it?

There are several things you have to consider before purchasing a Northern Virginia/South Carolina fixer-upper. Everywhere you turn, it seems another TV show is touting how easy it is to make improvements to your home yourself. Looks can be deceiving. Fixing up a home tends to take more time and money than you think it does. However, if you're willing to do a bit of research and planning, the payoff can be big.

Simple things like painting and wallpaper can generally be done by just about anyone. However, the more intricate work, like rewiring or plumbing repairs may require a more experienced hand. Depending on the amount and extent of repairs needed, you could be looking at living in a construction zone for several months. However, that shouldn't be a deterrent if you love the Northern Virginia/South Carolina home and are getting a great deal.

As I've said before, a home inspection is important for any Northern Virginia/South Carolina home buyer! This doesn't just include the inspection you do yourself when looking at potential homes. The smart buyer hires not only a professional home inspector to check out the roof, plumbing, electrical, etc., but also invests money in an inspection by a structural engineer to assess the structural integrity of the home. This can help you evaluate if the home is worth fixing up or can even be fixed up at all. Always make sure to get written estimates of repair costs to help you determine your offer, if you choose to buy.

Re-painting, replacing carpeting and general aesthetic touches don't need permits. However, structural changes, plumbing repairs and electrical work generally tend to need a building permit. If you do the work without a permit, you could run into trouble when you try to resell your Northern Virginia/South Carolina home in the future. It's not worth the hassle. Check with your city to find out if you need a permit to do the work you want done, how much it will cost and how long it will take to get the permits necessary.

Once you've gathered all your estimates, add another 10-20% for those unforeseen issues that always tend to arise. Talk to your REALTOR® about a fair offer on the Northern Virginia/South Carolina home in question. Find a recently sold home in the neighborhood that is comparable to what your home will look like once the repairs and updates are completed and deduct your estimated costs to repair. This should give you a fair offer price.

Move-in ready Northern Virginia/South Carolina homes are great. Buying a fixer-upper can be a fantastic investment as well. If you are willing to put in the time and effort necessary to bring that home up to date, a fixer-upper is definitely worth it. But only you can decide if that's the case for you! Contact me when you are ready to start looking.

FEATURED HOME OF THE WEEK

For more information on this home, please click here.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Nothern Virginia Homes real etate blog here: http://northernvirginiahomes.net/2012/04/26/is-that-fixer-upper-worth-it/.

How to Save Money to Buy a Home

Thursday, April 12

It seems like a simple concept: put money away to buy a Northern Virginia/South Carolina home. So, why does it seem so hard to do? According to financial guru Suze Orman, you should have at least 10-20% of the home's purchase price to put down in order not to find yourself financially strapped. There are programs out there to help you buy a Northern Virginia/South Carolina home even if you have less than 10%. But, with 20% down, for example, you won't have to pay the private mortgage insurance (PMI) required by mortgage companies when you borrow more than 80% of the price of a home. That can save you a decent amount of money. Not to mention that the more you put down, the less you have to borrow, which, in turn, makes your monthly mortgage payment less. So, how do you save money to buy a home? It is easier than you think.

First, make a budget. I know, I know. Nobody LIKES to make a budget. But it is incredibly important to get a real idea of what you take in, what you pay and what your actual debt load is BEFORE you purchase that Northern Virginia/South Carolina home. That way, you will know exactly what price range you can realistically afford. Be faithful in tracking expenses by keeping a daily log of every single purchase you make and bill you pay for a month. This will help you see where you spend your money on a daily basis and where you can afford to "trim the fat".

After you've worked out your new "saving for a home" budget, determine how much you can set aside every month for your "we're going to be homeowners" savings account. Many people find it easiest to create a completely separate savings account that is meant only for your downpayment. If your employer offers direct deposit, allocate a specific amount of your paycheck to be deposited into this special savings account. Psychologically speaking, if you don't ever see the money to begin with, you really won't miss it.

While saving for your Northern Virginia/South Carolina dream home, you don't necessarily have to live like a hermit. You can still enjoy movies, eating out and going places. You'll just need to reduce the amount you normally spend. For example, a typical family of four can easily spend around $100 to go to the movies, when you factor in the cost of the goodies you consume while there. Instead, rent a movie and buy microwave popcorn to enjoy while watching. Instead of going out to eat twice a week, cut it back to once and go out to lunch instead of dinner (much less expensive). Pack up your lunch and take it with you to work rather than paying to eat out. "Treat" yourself to a latte once a week instead of spending $5-$6 everyday.

These are just a few ideas to help get you started on saving money to buy your Northern Virginia/South Carolina home. It does take some focus to make your dreams of homeownership happen. But, boy are they worth it! Home prices haven't been this low in years (and they're starting to go up slightly), interest rates remain low and inventory is plentiful enough to find just what you're looking for. Just let me know when you're ready to make the next step by actually viewing homes for sale in the Northern Virginia/South Carolina area. I'll be happy to help.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Northern Virginia homes real estate blog here: http://northernvirginiahomes.net/2012/04/12/how-to-save-money-to-buy-a-home/.

Preparing a Home Emergency Kit

Thursday, April 05

Boy Scouts aren't the only ones who should "be prepared". The tornadoes that recently ripped through the Dallas-Fort Worth area got me thinking about the possible disasters we can face at any time here in Northern Virginia/South Carolina. While we don't exactly live in tornado alley, there are plenty of other emergencies we may face while we think we are safely tucked away in our homes. Preparing a home emergency kit before a disaster strikes is always a smart idea.

Your emergency kit needs to be portable. In the stress of reacting to a fire or flood, for example, you need to be able to have everything you need in a central location that is easy to just grab and go as you flee your Northern Virginia/South Carolina home. A big duffel bag or simple suitcase is perfect for this. Keep it near the exit or at least within easy reach at all times.

Since it can take several days before you get situated after an emergency, the general rule of thumb is to keep at least a three day's supply of necessities in your emergency kit. Each kit should contain the following basics:

• Water - 1 gallon/person/day. This will be used for drinking as well as basic sanitation needs. Double for children and don't forget the pets.
• Food - Non-perishable (canned, boxed or MRE). If the cans aren't the "pop top" variety, make sure to include a hand operated can opener. You can also pack things like trail mix, cereal bars and other treats. Keep all food in animal-proof, airtight containers to keep critters out. Regularly go through your food rations before an emergency to rotate out the older food before it expires. You don't need to deal with food poisoning on top of an emergency situation.
• First Aid - This includes a couple of pairs of protective gloves, bandages, gauze, antibiotic ointment, eye wash, thermometer, tweezers, pain reliever (aspirin or non-aspirin varieties), antacids (Tums, Pepto Bismol), tape and a laxative. The stress from the emergency coupled with a change in your regular diet can do a real number on your digestive system.
• Flashlight With Batteries - These are the safer alternative to candles. Too many Northern Virginia/South Carolina homes have caught fire due to candles that have been left to burn on their own. If possible, get a flashlight that you can keep in a wall-mounted charger unit so that you know it is ready to just grab and go at a moment's notice. If not, keep extra batteries in your home emergency kit.
• Sanitation/Hygiene Supplies - Travel-size bottles of shampoo, body wash, toothpaste and other hygiene products will fit nicely inside your emergency kit. Consider using dry shampoo so you don't have to waste precious water resources on cleaning your hair. Include toilet paper, moist towelettes, paper towels, garbage bags, plastic ties and feminine hygiene products (if needed).
• Radio - For major disasters, the radio may be your only link to the world outside your Northern Virginia/South Carolina home. Hand-crank models can be found at army surplus stores. Yet another reason to keep extra batteries in your kit.
• Miscellaneous - Help kids pass the time with some little toys, cards, jacks, story books, etc. Duct tape is good for almost anything. Portable whistles can help you signal for help better than your voice can.
• Cash - Always keep about $100 in small bills available. It may be hard to get to an ATM right away.

If you have small children, keep extra sets of diapers, pull-up pants and formula in your kit. A few days supply of necessary prescription medication is important to include as well. You may want to throw a wrench in there so you can shut off the gas and/or water if necessary. Tailor your emergency kit to fit your family's specific needs. Preparing a home emergency kit before disaster strikes is good common sense for any Northern Virginia/South Carolina homeowner.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Northern Virginia homes blog here: http://northernvirginiahomes.net/2012/04/05/preparing-a-home-emergency-kit/.