Broward County TRIM (proposed real estate tax) Notices and Appeals

Posted on 07/12/201807/12/2018 by khaniauerbach

The Broward County Property Appraiser’s Office (BCPA) will be mailing out their annual TRIM (proposed tax) Notices some time in mid-August. The proposed property tax notice will show your 2018 property assessment, exemptions and the proposed taxes along with dates and times for the various taxing authorities’ public budget hearings. Take note that the TRIM Notice is your opportunity to review your property assessment and ensure you are receiving all the tax-saving exemptions you are entitled to. If you have any questions about the TRIM Notice, you can contact BCPA directly using the number provided in the mailing, giving you the opportunity to contact them directly should you have any questions. The most important thing to note is that if you wish to apply for any 2018 exemption or to appeal your property assessment, the absolute deadline for doing so is September 18, 2018.

The first thing to know is your taxes are calculated using this formula:

TAXABLE VALUE x TAX MILLAGE RATES + SPECIAL ASSESSMENTS = TAX BILL

The Property Appraiser determines the market and assessed/Save Our Homes value of your property. Your tax rates and non-ad valorem fees are set by the various taxing authorities (school board, county commission, city commission, hospital district board, water management district, and so on) listed on your TRIM Notice. If you want to question your proposed tax rates, non-ad valorem fees, special assessments or services, you should contact the elected officials who serve on the taxing authorities and attend the public hearings in September 2018.

Important: The Property Appraiser does not set your tax rates or collect your taxes. Your tax rates are set by the city & county commissions, school board, and other taxing authorities. Additionally, any PACE (Property Assessed Clean Energy) assessments are not included on the TRIM Notice but will appear on the November tax bill sent by the Broward County Tax Collector.

Typical question from property owners: Why Are My Property Taxes Higher than the Prior Owner’s Last Year? Florida law requires property be reassessed at market value as of January 1 the year following a change in ownership and/or the year the property receives/loses the Homestead Exemption. After this reset in value occurs, the property will be protected by an assessment cap starting the following year. For Homesteaded property, the Assessed/Save Our Homes (SOH) Value can increase by no more than 3% above last year’s Assessed/SOH Value (or the consumer price index, whichever is less), regardless of the increase in just value. For tax year 2018, the assessment increase is capped at 2.1% for all Homesteaded properties. For non-Homesteaded property, the assessed value can increase by no more than 10% above last year’s assessed value. The 10% cap does not apply to the School Board taxes.

Many property owners ignore their TRIM Notice until it is too late to appeal an assessment, question the proposed tax rates, or file for exemptions. If you wait until you receive your tax bill in November to inquire about your assessment, you will lose your right to appeal. If you are a residential or commercial real estate owner, you may have grounds for an appeal. For example, construction that has been lingering or is expected to take a while to complete may be a great way to get a reduction. Call us and find out what you can do to appeal those valuations and get the reduction you are entitled to.

Should you believe that you are entitled to a reassessment for any reason whatsoever, reach out to Khani & Auerbach and we can assist you. REMEMBER THE DEADLINE, SEPTEMBER 18TH!

2018 Taxable Values Estimate and Homestead Exemptions for Broward County, Florida

Posted on 05/23/201805/28/2019 by khaniauerbach

For those of you who live in Broward County, Florida, this could be very valuable and helpful information. Below is an informative newsletter originally published by Marty Kiar of the Broward County Property Appraiser’s (BCPA’s) office.

2018 Estimate of Taxable Values

The preliminary 2018 property values will be posted on BCPA’s website at www.bcpa.net on June 1. This will be your first opportunity to review your 2018 property value and contact our office if you believe the just value to be inaccurate. This is important because the amount of property taxes that you will be asked to pay is based on the relationship between the tax rates set by your local taxing authorities and the assessed value of your property as determined by our office. Florida law requires our market values be one year in arrears meaning we use the qualified sales of comparable properties from January 1, 2018 back through January 2, 2017 for the 2018 property values. If you purchased your property in 2018, your 2018 purchase price will be used in setting your property’s 2019 market value. For questions regarding your residential property, please call 954-357-6831. BCPA will be mailing the 2018 TRIM (proposed tax) Notices to all Broward property owners in mid-August. This notice will show your property’s 2018 market value, assessed value, exemptions and proposed tax rates as set by the various taxing authorities.

Did You Have Homestead Exemption on One Home and Purchase Another?

If you had Homestead Exemption on a property in 2016 or 2017 and have purchased a new permanent residence in Florida, please make sure you have applied for both Homestead Exemption and Portability at your new residence. Portability allows you to transfer the “Save Our Homes” savings you built up by having Homestead Exemption on any Florida property to another Homesteaded property in Florida. To transfer the Save Our Homes benefit, you must establish a Homestead Exemption at the new home within two years of January 1 of the year you sold or moved from the old homestead (not two years of the sale or move date). Note: a Portability application transfers the savings you have earned, but it does not automatically transfer your Homestead Exemption. You must apply for both Homestead Exemption on your new home and complete a Portability application. The Portability application can be found on our website at www.bcpa.net/Forms/DR501T2009.pdf For questions regarding Homestead Exemption, Portability or any of the available tax-saving exemptions, please call our Customer Service representatives at 954-357-6830.

Meet the Broward County Mobile Exemption & Information Team

The Broward County Property Appraiser’s Office has a group of representatives visiting homeowner and community groups around Broward County to educate property owners about the role of our office and provide important tax-saving information. To find out when BCPA will be assisting residents and property owners in your community, simply visit their event calendar online at www.bcpa.net/Events.asp If you would like a representative to attend one of your meetings or events, please contact Michael Clark, Mobile Exemption & Information Team (MEIT) Manager, at 954-357-6905 or mclark@bcpa.net

Khani & Auerbach is committed to educating the public about various topics in real estate. For more information, or if you have any real estate transaction needs, please do not hesitate to contact us.

MILLENNIALS, STOP RENTING – PART DEUX

Posted on 01/30/201805/28/2019 by khaniauerbach

Gratefully, the nation’s housing market for 2018 is looking good, but we continue to see first-time millennial buyers struggling with affordability, especially in high-priced areas like Los Angeles, San Francisco, Boston, New York and Washington DC.

Various Florida residential real estate markets continue to be affordable markets. Interest rates and home prices are both rising, so first-time home-buyers, a majority of which are Millennials, are encouraged to make the switch from renting to owning sooner, rather than later.

Mortgage rates will inevitably rise, and this increase will only result in existing borrowers/homeowners STAYING PUT. Rising rates may also lead to homeowners seeking home improvement loans or home equity lines of credit instead of moving. Less movement in real estate, means less inventory.

So, what’s driving the housing market? Strong buyer demand, limited inventory, and first-time buyers. The first two factors being the more important for setting the real estate industry’s tone.

There is definitely a shortage of “good properties” and finding that perfect property tends to be the problem for most Millennials. That’s a large part of the reason we are recommending that Millennials try to be realistic, not have expectations of moving away from renting right into the home of their dreams. The home of their dreams will come with time, but buying something affordable is a great way to start the home-buying process

With increased demand and good appreciation, first-time home-buyers can eventually move up to the property of their dreams. This all doesn’t happen overnight and that can sometimes be frustrating for people who may be used to getting instant gratification.

So, what’s the bottom line here? Take baby steps. Buy your first home, but be realistic and find something affordable. Don’t live for your house, but live in your house. The American dream will follow, but whatever you do….STOP RENTING!

At Khani & Auerbach, we are dedicated to providing as much information to assist you in becoming a home buyer. Please be sure to follow us on Facebook, Twitter, Instagram, LinkedIn and Google+ for additional useful information.

Mortgage and Financial Assistance in the Wake of Hurricane Irma

Posted on 09/15/2017 by khaniauerbach

Hurricane Irma has affected the entire State of Florida and since Florida has been declared a federal disaster area, there may be some help for Florida homeowners who may have trouble making their mortgage payments. As Florida has been declared a federal disaster area, you may be eligible for a mortgage loan deferment, also known as a forbearance. A forbearance means your mortgage may be waived for a set amount of months with NO credit implications to you. Take note, however, this is NOT automatic, and you must reach out to your mortgage lender to apply for this forbearance. Each lender has different rules, so please, call and ask.

In some situations, mortgage agencies will permit you to skip your next three payments, but they will be added to the end of the loan without any negative implications to your credit. Interest, however, would still accrue. In other cases, when the deferment period has ended, missed payments become due either in a lump sum or according to a payment plan. It is imperative that you double check with your lender.

Homeowners who suffer a financial setback, due to job loss or possibly injury, as a direct result of a disaster also may be offered temporary mortgage relief, even if their home was spared. Documentation will probably be required to prove the hardship.

Fannie Mae and Freddie Mac have both told loan servicers to extend a 90-day forbearance to anyone who calls and requests it. Click here to find out more about their programs. You can look up your loan agency here for Fannie and here for Freddie.

To talk with a Department of Housing and Urban Development-approved housing counselor before agreeing to forbearance, call 1-800-569-4287.

Here are some other links that may be helpful in learning more about forbearance mortgage relief in the wake of Hurricane Irma.

Mortgage Assistance If Affected By Hurricane Irma

Mortgage Relief For Hurricane Irma
Hurricane Help
FEMA
FEMA Helpline: 1-800-621-FEMA (1-800-621-3362)
Disaster Assistance Website

The IRS has announced that people who extended their 2016 income tax filings can submit their paperwork next year. It’s not a payment extension but rather a filing extension.

Finally, please note that credit card companies will offer a similar disaster forbearance upon request and banks are also offering breaks to those in Hurricane Irma’s path.

At Khani & Auerbach, we are dedicated to providing as much information to guide you in the wake of this disaster. Please be sure to follow us on Facebook, Twitter, Instagram, LinkedIn and Google+ for additional useful information.

Avoid Being a Victim of Wire Fraud Schemes When Buying a Home

Posted on 06/23/201706/23/2017 by khaniauerbach

Buying a home is an exciting time. You’ve saved, found the perfect home and planned the move. Now, the closing day for your home is just around the corner.

The American Land Title Association wants to make sure your home purchase doesn’t get derailed by a dangerous threat that could keep you from getting the keys, painting walls and decorating. Criminals have stolen money meant for the purchase of homes through malicious wire fraud schemes targeting consumers across the country.

Criminals begin the wire fraud process way before the attempted theft occurs. Most often, they begin with a common social engineering technique called phishing. This can take the form of email messages, website forms or phone calls to fraudulently obtain private information. Through seemingly harmless communication, criminals trick users into inputting their information or clicking a link that allows hackers to steal login and password information.

Once hackers gain access to an email account, they will monitor messages to find someone in the process of buying a home. Hacks can come from various parties involved in a transaction, including real estate agents, title companies, attorneys or consumers. Criminals then use the stolen information to email fraudulent wire transfer instructions disguised to appear as if they came from a professional you’re working with to purchase a home. If you receive an email with wiring instructions, don’t respond. Email is not a secure way to send financial information. If you take the bait, your money could be gone in minutes.

“Attorneys and title companies have taken many steps to combat this problem, such as putting consumer warnings on websites and communications, securing email communications and sending notices to consumers and real estate agents informing them of the scams,” said Michelle Korsmo, chief executive officer of the American Land Title Association. “But the criminals are smart and constantly alter their tactics to steal information and money.

“Everyone involved in real estate transactions must also be aware of the potential losses as criminals phish for information and stalk home closings, hoping someone makes a mistake. If someone does mess up, it could cost your savings or retirement.”

Here are five tips to protect against wire fraud:

1. Call, don’t email: Confirm all wiring instructions by phone before transferring funds. Use the phone number from the title company’s website or a business card.

2. Be suspicious: It’s not common for title companies to change wiring instructions and payment info.

3. Confirm it all: Ask your bank to confirm not just the account number but also the name on the account before sending a wire.

4. Verify immediately: You should call the title company or real estate agent to validate that the funds were received. Detecting that you sent the money to the wrong account within 24 hours gives you the best chance of recovering your money.

5. Forward, don’t reply: When responding to an email, hit forward instead of reply and then start typing in the person’s email address. Criminals use email address that are very similar to the real one for a company. By typing in email addresses you will make it easier to discover if a fraudster is after you.

This article is courtesy of ALTA. The American Land Title Association helps educate homebuyers about title insurance so they can protect your property rights. Check out www.homeclosing101.org to learn more about title insurance and the home closing process. Attorney Khila Khani is proud to serve as a HOP (Homebuyer Outreach Program) Leader with ALTA. If you have any questions about this topic or need assistance, please contact us.

APPRAISALS…..WHAT ARE THEY GOOD FOR?

Posted on 06/21/2017 by khaniauerbach

REVEALING THE MYTHS OF THE HOME APPRAISAL

You are so excited because someone finally made an offer on your home and you ACCEPTED! You have been working so hard to sell your place and now, since the contract has been fully executed, you can sit back and relax while the Buyer does their thing. WRONG. You can’t just sit back and relax, just yet. You still have an appraisal to worry about. In most cases, Buyers won’t come to you with a wad of cash and say, “I want to buy your house.” A majority of the residential real estate transactions are financed and the bank, well, they are the Buyer’s partner and as such, they want to make sure they get their full value. So what about that appraisal?

Lenders will often require the use of their own, FHA-approved appraiser. What does that mean for the Seller? Basically this….you have absolutely no say in who determines the financial value of your home. The home you have nurtured, put your entire life savings into and built relationships in.
In this article, I include things that Sellers can do to help them get through this process.

1. THE APPRAISER IS NOT A MAGICIAN
If you think the appraiser can determine the value or worth of your home upon entry, think again. They don’t. Once you have a clear understanding of the appraisal process, you can understand the home’s value determination.
Initially, the appraiser will compile a list of comparable listings in the area where your property is located, what we lovingly refer to in the biz as “comps”. Comps can be someone’s dream come true or possibly a nightmare, depending on how they are compiled. You would hope that the homes being used in the comps are homes similar in location, square footage and style that have been sold within the past few months. After pulling the comps, the appraiser will then do a physical inspection of the home to determine its quality and condition. In an effort to make the most accurate assessment, the appraiser will also take in to account other factors that may affect the home’s value. Keep in mind, this won’t be immediate and could take a few days to complete.

2. STAGING, STAGING, STAGING
If there was ever a reason to clean your house, this is a perfect one. The appraiser is not judging you on cleanliness, but clear away the clutter, clean the floor and do what you can to make the home presentable. More than likely, your home won’t be devalued due to a mess, but staging (organizing and decluttering) may help. Be sure the occupants of the home are prepared when the appraiser shows up. This includes the reclusive teen’s room.

3. PREP YOUR PAPERS
Beat the appraiser to the punch and send any information you have about the house to the appraiser BEFORE they arrive. The lender or broker may ask for this information, but be prepared.
Prepare a list of major improvements (with their permits attached), detailed information about the condition and age of the roof, plumbing, air conditioning and major appliances. Appraisers do not appreciate surprises and if they see an improvement that hasn’t been supported by documentation, they will get concerned and the values will not be accurate. Full disclosure will serve you well.

4. DON’T PUT ALL YOUR EGGS IN THE HOME IMPROVEMENT BASKET
Sure, your recently renovated kitchen is fabulous, but don’t take it personally when it doesn’t proportionally increase the home’s market value.
Folks in the biz will tell you that only a fraction of what you may have invested or spent may add value to the house. So, if you are looking for a large ROI from your improvements, don’t be disappointed when the ROI is not as large as you initially expected. This expectation applies doubly for a new pool. Depending on what kind of climate you live in, the pool addition may or may not bring as much value as you had hoped for.

5. DON’T BULLSH*T ON FACTS THAT CAN BE CONFIRMED
Before even listing a property, be sure that you and your real estate agent take a realistic snapshot of what the home actually offers. What are you including in the square footage total. Is it really there or are you just making it up? If you hope that no one will notice that the roof is not actually new, think again. Even if the appraiser doesn’t notice, a subsequent inspection will. Be real about numbers. Puffery will get you nowhere.
In South Florida, it’s even more difficult to fudge the numbers because they exist online at the Property Appraiser’s website and they are typically accurate. If you think nobody will notice, think again. And the appraiser, well he or she will definitely notice and it won’t help you.

At Khani & Auerbach, we are doing our very best to remain at the forefront of the real estate market. We will continue to educate ourselves, our clients and real estate professionals. If you have any questions, please feel free to ask us!

South Florida Housing Market Update

Posted on 03/02/201705/28/2019 by khaniauerbach

This past January showed us some signs of strength in the housing market with increased home prices all across South Florida

The results for the tri-county area: Up 10 percent from a year ago, Broward County’s median price for existing, single-family homes last month was $311,250. In Palm Beach County, the median was $310,000, showing a 9 percent higher than last year. Miami-Dade County’s median price also was $310,000, a 15 percent jump.

Strong demand and a lack of quality inventory have driven prices higher in recent years. Statewide, the median price rose 10 percent to $220,000, meaning half the homes sold for more and half for less.

So, when is the right time to take action? According to a statement by Florida Realtors President, Maria Wells, “Florida’s housing market continues to show positive momentum. While existing inventory remains tight, Realtors across the state are reporting interest from both buyers and sellers — and with interest rates expected to rise over the next few months, now is certainly a good time to take action.”

Monthly home sales in 2016 were strong in Broward County, but that wasn’t match with buyer enthusiasm in January. In January, the county had 982 single-family homes traded, but that was down 5 percent from a year earlier.

Palm Beach County did slightly better, transacting 1,146 in sales representing an increase of 5 percent from January 2016. Miami-Dade showed an increase of 4 percent to 857.

President-elect of the Realtors Association of the Palm Beaches, Jeffrey Levine, said sellers of homes priced at more than $400,000 are losing leverage to buyers as the number of listings accumulates. Despite the loss of leverage to listings in excess of $400,000, it remains a seller’s market at $400,000 and below because those quality listings are hard to come by, even though a handful of first-time buyers and young families continue to hold out, postponing ownership because there are too many fixer uppers out there.

Levine goes on to say that, “At today’s prices, first-time buyers shouldn’t have to go in a home and put another $50,000 or $100,000 to renovate.”

Real Estate economist at FAU, Ken Johnson has said that he’s surprised at the still-robust rate of home price increases in the tri-county region. Being cautious about the market, he and other analysts expect prices to slow amid rising interest rates and more homes listed for sale. Johnson already sees a market beginning to soften, and futher opines that the likelihood of successful sales transactions is declining based on an FAU analysis of multiple listing service data, economic trends and publicly available figures from the Federal Housing Finance Agency.

“A lower likelihood leads to increased inventory, which will eventually lead to a slowdown in prices,” he said.

Florida Homestead Exemption Filing Deadline is March 1st

Posted on 02/01/2017 by khaniauerbach

Florida Homestead Exemption Filing Deadline is March 1st

All legal Florida residents are eligible for a Florida Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if they qualify. The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. While a complicated formula is used to explain this — as the additional $25,000 only applies to the non-schools portion of your tax bill — for example, a Broward County homeowner can save anywhere from $627.99 to $1,053.22 (depending upon your city’s millage rate) in annual tax savings for all homes with a value of $75,000 or higher.

You are entitled to a Homestead Exemption if, as of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you. By law, January 1 of each year is the date on which permanent residence is determined.

Most counties provide for ONLINE filing. See below for a few links in the tri-county area.

The timely filing period for Florida Homestead Exemption for 2017 is March 2, 2016 through March 1, 2017. The absolute deadline to LATE FILE for any 2017 exemption — if you miss the March 1 timely filing deadline — is September 18, 2017. State law (Sec. 196.011(8), Fla. Stat.) does not allow late filing for exemptions after this date, regardless of any good cause reason for missing the late filing deadline.

What You Need When Filing for Homestead

When filing an application you must bring the following items listed below. To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co-owners) must file in person on jointly held property. In the case of a married couple (“Tenants by the Entirety”) or Joint Tenants with Right of Survivorship (“JTRS”), any one owner may qualify for 100% coverage — although it is always highly advisable to have all eligible owner-occupants to file.

Proof of Ownership: In general, the recorded Deed or Co-op Proprietary Lease must be held in the name(s) of the individuals applying for Homestead. You do not need to bring a copy of the deed or co-op lease if the document has already been recorded in the Official Records of Broward County. If the PROPERTY IS HELD IN A TRUST, WE ALSO NEED EITHER A NOTARIZED CERTIFICATE OF TRUST OR A COMPLETE COPY OF THE TRUST AGREEMENT. Note: Most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.

Proof of Permanent Florida Residence — preferably dated prior to January 1 of the tax year for which you are filing — is established in the form of:

FOR ALL APPLICANTS: Florida’s Driver’s License (or — for non-drivers only — a Florida I.D. Card) is REQUIRED. Note: You must surrender to DMV any out-of-state regular driver’s license. You MUST also have either of the following:

Florida Voter’s Registration; or
Recorded Declaration of Domicile.

FOR NON-US CITIZENS, you MUST have the items listed above AND proof of permanent residency, asylum/parolee status (or other “PRUCOL” status); OR proof you are the parent of a US-born (US Citizen) minor child who resides with you.

If you or your married spouse have a Homestead Exemption in any other county, state or country (or an equivalent permanent residency-based exemption or tax credit, such as New York’s “S.T.A.R.” exemption) on another property you also currently own, you will NOT be eligible for a homestead in both counties until after you surrender the exemption in that other jurisdiction. Read filing in two counties for additional information on the detriments of filing in two counties.

The State-approved application form requests certain information for all owners living on the premises and filing:

Current employers of all owners
Addresses listed on last I.R.S. income tax returns.
Date of each owner’s permanent Florida residence.
Date of occupancy for each property owner.
Social Security numbers of all owners filing.
Social Security number of any married spouse of the applicant, even if the spouse is not named in the deed and is not filing).

Note: The amount of the Florida homestead exemption protection granted to an owner residing on a particular property is to be applied against the amount of that person’s interest in the property. This provision is limited in that the proportional amount of the homestead exemption allowed any person shall not exceed the proportionate assessed valuation based on the interest owned by the person. For example, assuming a property valued at $40,000, with the residing owner’s interest in the property being $20,000, then $20,000 of the homestead exemption is all that can be applied to that property. If there are multiple owners, all as joint tenants with rights of survivorship, the owner living at property filing receives the full exemption.

Click on the County that your real estate is located in to file online.
Broward County
Miami-Dade County
Palm Beach County

AVOID A FAIL IN YOUR SALE

Posted on 01/13/201701/13/2017 by khaniauerbach

2017-01-04-23-45-38 — Photo by Khila L. Khani, iTakeGr8Pics.com

Most discussions about real estate transactions concentrate on the needs of the Buyer. However, Sellers have needs, too! Lately, the residential real estate industry has experienced a slight increase in transactions falling apart. The majority of transactions failing to close seem to be limited to homes that are of lower value and/or older homes. There are steps that Sellers can take to avoid a transaction from “blowing up”. Here are a few tips to assist on ensuring the transaction makes it to the closing date:

1. AVOID THE UNQUALIFIED BUYER: While most Florida real estate contracts provide a “loan contingency,” the failure of the Buyer to qualify for a loan AFTER the contract is signed can be very frustrating for the Seller. To avoid this frustration, we recommend that the Seller request a Pre-Qualification letter and in some instances, proof of funds, to give them additional assurances that the Buyer is capable of getting the funds to close.

2. GET AN PRE-CONTRACT APPRAISAL: As the Seller, sometimes it is difficult to accept a price that is recommended by a Realtor. Often times, Sellers believe their property is worth more than it really is, and therefore they set the sales price higher than the market value. Pricing your property too high can sometimes prevent qualified Buyers from looking at your property. Also, once the property is under Contract, the Buyer’s lender will order an appraisal and you, the Seller could be surprised by the result. Surprises are fun when they are related to a party, but not when you are trying to sell your home. We highly recommend that you obtain what’s called a “Pencil Appraisal” to give you an idea of what your property is worth, before you put the property on the market.

3. CONDUCT A PRE-CONTRACT INSPECTION: Most real estate contracts provide the Buyer with an opportunity to inspect the property immediately after signing. This opportunity to inspect is limited to a certain period of time, usually 10-15 days after the contract is executed. When a Buyer inspects the property, their inspection might reveal defects, damages and issues to which the Seller had no knowledge. However, a Pre-Contract inspection from a licensed inspector will help you avoid surprises that might be revealed by the Buyer’s inspector. The Pre-Contract inspection will permit you discover and make necessary repairs before they are brought to your attention by the Buyer’s inspector. This will lessen the probability of a deal falling apart due to the condition of the house.

STOP RENTING

Posted on 12/09/2016 by khaniauerbach

Easy to say, hard to do, but there are things you can do now to get you closer to residential home ownership. For years, you have been paying rent to your Landlord or even worse, living with your parents. Here are some things you can do right now to prepare for home ownership.

1. Save Money. Put away a minimum of $50 week. (That’s approximately 2 items at Starbucks per week) If you do this for at least 2 years, you will have saved up $5,200. You can do it!

2. Check Your Credit. Don’t do this often, but make sure you get a gander at your credit report history and see what’s going on there. Stop applying for revolving credit accounts, like department stores, they don’t help, they hurt your score. Only spend what you have. If you do use a credit card, always pay off the balance in full every month. If you already have a balance on your credit card, pay that off as soon as humanly possible. The only ones who benefit from a balance on your credit card are the credit card companies. You don’t want to end up paying $100 for a $5 cup of coffee, you just don’t.

3. Talk with a Mortgage Professional. Find out exactly what it takes to qualify for a mortgage these days. These qualifying requirements change, almost on a daily basis. If you know what you need to do to qualify for a mortgage, it takes the mystery out of the process and gives you a goal. The goal being, getting a mortgage to buy a home of your own.

4. Talk with a Real Estate Agent. Learn what the market is out there and what you think you can realistically afford. Make sure your proverbial eyes are not bigger than your stomach. Don’t try to keep up with everyone else, but rather look in communities that are close to work that you can realistically afford.

5. Stop Accumulating Debt. These days, people are less interested in accumulating things and more interested in accumulating experiences, but keep in mind, both can be costly. Before you take that expensive vacation to hike in Colorado or the Grand Canyon, think about what might be available in your own backyard and accumulate your experiences there so you can stop accumulating debt.

6. Get a Job. Yes, you want to help others and be charitable. It’s an honorable thing to do, but charity begins at home. Be employed and always make money. It’s good to be self-employed, but the problem with self-employment is that you don’t always show a healthy income and that’s what lenders are looking for when they decide whether you qualify for a loan or not. You have to show at least two years of qualified income in order to qualify for a loan. Sometimes, you don’t get that dream job, with that dream income right away, but it’s a step in the right direction and can ultimately lead to home ownership. If you have stable employment, it’s going to make a difference. Remember, home ownership is the goal.

7. Don’t Fear Fluctuating Rates. Mortgage Rates will never be as low as they have been in the past few years, but have no fear! Rates won’t be so high that you will be precluded from obtaining a loan at a reasonable rate.

8. Inventory Will Increase. Yes, for the past few years, it has been a Seller’s market and inventory was definitely scarce. In 2017, however, you will see a change in that scenario. The prediction among most real estate professionals is now shifting and the feeling is that we are moving away from the limited housing inventory and towards a Buyer’s market. The bargains are already popping up in the most unusual places, but you have to be willing to shop.