Buying – Page 3 – Mel Foster Co Blog

Tips for Being in a Home Owners Association

Posted on January 30, 2018

Home Owners Associations or HOAs can have a powerful impact on your rights as a home owner. Before moving into an HOA neighborhood, be sure to consider these factors.

Learn Your HOA’s Rules

Every HOA is different. It’s important to take the time and familiarize yourself with your association’s rules. What happens if you break a rule? Is my home currently meeting all HOA rules before I buy it? Pay particular attention to any rules resulting in a fine.

Consider Your Temperament

If you’re not a fan of being told what you can and can’t do, an HOA might not be for you. One of the largest benefits of being a home owner is changing your home as you see fit, so be sure your goals and your HOA’s goals aren’t at odds with each other.

Be Careful of Under-management

Often people are worried their HOA will be overbearing and watching their every move. This is just as troublesome as when an HOA isn’t fulfilling its duties. If the HOA board isn’t making repairs, attending meetings or resolving their residents’ problems, it may be cause for concern. Make sure your needs are going to be met when you join an HOA.

Consider the Fees

In addition to your mortgage, you will also have HOA fees and dues. Be sure to understand these charges, as you don’t want to be caught off guard. You need to determine whether or not the services the HOA provides are worth the annual cost.

Always Stay Up to Date

If you decide to join an HOA, do everything you can to ensure you’re informed of any changes. Attending meetings, or requesting minutes from the most recent meeting, is a great way to be notified of any changes the HOA makes.

Looking For a Seasonal Home or Relocating? Relocation Specialists are Here to Help!

Posted on January 13, 2018

If you’re considering finding a winter home or moving permanently, start your search with a Mel Foster Co. relocation specialist. Find a property in the U.S. or take your search worldwide with our global connections.

Mel Foster Co. has experience helping families relocate outside of the Quad Cities to anywhere in the world. Our relocation specialists provide multiple services at no additional cost to you. Mel Foster Co. is a proud member of Leading Real Estate Companies of the World^®, the premier national relocation network. They’ll also be able to connect you with another agent in your desired location to help with your home search.

A relocation specialist can provide cost of living comparisons, including state withholding tax rates. If you’re moving with family, they’ll also be able to provide a list of schools in the area and schedule a school visit. During your home search, a relocation specialist will also assist with finding temporary housing until you find your new home.

Whether you’re looking for a snowbird lifestyle or a permanent relocation, Mel Foster Co. will be able to help you find a home to meet your needs. Get started with relo today.

Establishing a Rental Property.

Posted on December 12, 2016

Make your rental property stand out and maximize your profits with the help of Mel Foster Co. and its relocation specialists. Buy a condo in downtown Chicago, a beachfront bungalow in Florida or a home on the golf course in Arizona for your enjoyment, and to generate additional income for you. These tips can help you successfully rent out your property.

Partner with Local Businesses.

To get the most out of your rental property, partner up with local attractions and businesses. If your rental comes with a 10% off coupon at a nearby ski resort, restaurant or theatre, it makes your listing stand out above the others. Local businesses will appreciate the advertising and business, and you’ll enjoy the increased interest in your rental.

Reduce the Minimum Stay Requirement.

Renters will often be looking for a weekend getaway, especially during the off-season. During the busiest parts of the year, having a seven-day minimum isn’t an issue for potential renters, but you’ll notice a significant drop in interest during less busy parts of the year when week long rentals are more rare. Having someone renting for a brief period of time is much better than not renting at all.

Keep the Listing Updated.

If you want to entice potential renters, update your listing about once a month. You should list upcoming shows or events that are easily accessible from your property. If someone is coming to town specifically for an event, they’ll immediately know your rental is the best option.

Work with a Local Real Estate Agent.

It’s much easier to work with an agent in your current area before investing in a property in an unfamiliar area. Mel Foster’s relocation specialists can help you determine cost of living expenses, state tax rates and connect you with an agent in the area you’re interested in.

Click here for more information on how to get started finding the perfect rental property.

Avoid these Mistakes When Buying a Home

Posted on August 1, 2016

Buying a home isn’t always easy, especially for first time buyers. Knowing the more common mistakes will cut down on stress during the process.

Not Seeking Professional Guidance

Starting the home buying process alone isn’t a good idea, especially if it’s your first time buying. Hiring an agent is a smart choice to help with the home search, negotiations, finances and closing. Agents are an incredibly valuable asset for any home buying situation.

Missing Hidden Costs

Property insurance, taxes, maintenance and utilities are costs often forgotten during the excitement of buying a new home. Keep in mind these costs generally increase every year. Even if you can afford it now, ask yourself if you can afford it in the future.

Skipping the Loan Preapproval Process

Being preapproved for a mortgage helps narrow your home search by directing you to homes within your budget. Talking to someone in advance will help set realistic expectations, and offer peace of mind knowing what homes will fit your budget appropriately.

Depleting your Savings

It may seem as though you have the perfect amount of money in your savings to buy your home and move in, but if you’re emptying that account to buy a home, it means the home is too expensive. Ideally you’ll have saved enough money to buy your home, move and cover expenses for six months without pay. This is a safety net if you lose your job, so don’t blow all of your money on a home you can’t afford.

Making Large Purchases after Closing

Celebrate buying a home with major purchases before closing may seem exciting, but lenders check credit scores to be sure your financial situation hasn’t changed. Putting new furniture or appliances on a credit card before your closing date may negatively affect your credit score. And adding new loans may jeopardize the original mortgage you were hoping to receive. Don’t learn this lesson the hard way and have this mistake cost you the home you were counting on.

Keeping Your Garage Maintained

Posted on March 15, 2016

Garages are an often overlooked part of your home. You want to be sure potential buyers aren’t pushed away by a rundown garage. Follow this list to keep your garage clean and safe.

Keep the Door Working

The most important feature of your garage is actually being able to access it. If you have an older door and motor, make sure you maintain the parts. Apply oil and clean out any dust or debris that may have gathered since the last cleaning. Don’t forget about the rubber lining on the bottom of the door. Make sure it isn’t tearing so your door avoids damage.

Continue Cleaning

Continuous cleaning is the best way to maintain your floor and walls. Clear out any dust or cobwebs to keep your garage attractive to interested buyers. Rinse down your garage floor a few times per year or whenever spills occurs. If there are any large cracks in the cement, you can usually find do-it-yourself concrete kits to make repairs. This will keep the cement looking nice and fresh.

Investigate for Pests

Keep an eye out for any insects in your garage. If you have an infestation from termites or carpenter ants, they can cause serious damage to the foundation. If you notice any sawdust or chewed wood, call an exterminator immediately. It’s not a bad idea to contact your local pest control services to see what options they have for spray to prevent an infestation in the first place.

Features For A Fabulous Bathroom.

Posted on March 3, 2016

Renovating your bathroom is a great way to add value to your home. Follow this list of features to get the most out of your bathroom renovation budget.

Walk In Shower

Having a walk in shower with no curb is growing in popularity, for good reasons. They are both stylish and safe. As people age, ease of access is important. With no steps to stumble over, it’s a very attractive option with large resale potential.

Heated Ceramic Floor

Ceramic tile is timeless, waterproof and good looking. Add radiant heating underneath your tiles to complete your flooring. It’s extremely easy to market a home with heated flooring, and it doesn’t add much to the energy bills.

Exhaust Fan

The most requested feature in a bathroom is a simple exhaust fan. It beat out any other feature, and it makes sense. It prevents mold from growing and keeps hot air out of your house. Make sure the fan leads outside instead of into an attic to keep moisture out.

High Efficiency Dual Flush Toilet

Saving water is one of the most sustainable ways to help the planet. By law, toilets can only use 1.6 gallons per flush, with some states enforcing even more strict requirements. Having a dual flush toilet can use even less water overall and save you more money in the long run.

Calm Colors

Keep your bathroom colors calming to create a private sanctuary. This doesn’t mean you can’t personalize it with a few accent colors, but having a white or off white coloring will have a more relaxing feeling, which appeals to potential buyers.

Cut Your Taxes.

Posted on January 24, 2016

Tax time will be here before you know it. When filing your taxes, don’t forget about any home-related deductions you can take. Talk to a tax expert if you have questions.

Mortgage Interest Deduction

To obtain the mortgage interest deduction, your mortgage must be secured by your home. Interest you pay on a mortgage of up to $1 million, or $500,000 if you’re married filing separately, is deductible when you use the loan to buy, build, or improve your home in any way.

Prepaid Interest Deduction

Any interest you paid during the time of signing your mortgage is almost 100% deductible in the year you paid it, along with any other mortgage interest paid. If you refinance for a 10-year mortgage, paying $6,000 in interest, you can then deduct $600 per year.

Property Tax Deduction

When you pay your real estate property taxes, you can usually deduct these from your tax return. If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed on your home.

Three Things Your Agent Can’t Tell You

Posted on November 17, 2015

If you’re moving to a new town or even just across town to a new neighborhood, you may unintentionally ask your real estate agent questions that legally he or she cannot answer. Fair housing laws restrict your agent from answering what may seem like honest questions. But your agent can guide you to resources where you can gather the data you are seeking.

Is this a good neighborhood?

Seems like a pretty basic question, but the classification of “good” could mean a host of things. Is it a question about crime, walkability or proximity to amenities? If crime is your key concern, the web is filled with comparative sites that allow you to look at two cities side by side and form your own opinion.

Are the schools good?

There are a number of independent websites where you can find rankings, test scores, graduation rates and other academic benchmarks. For each major city served by Mel Foster Co., a link is available with additional listings for public and private schools. Click here to link to the communities page.

Is it cheaper to live in Iowa or Illinois?

This is a much more complex question that is best answered by your income tax advisor who is familiar with your situation. Click here for broad information about both states and specific communities.

Why You Need a Real Estate Agent

Posted on October 6, 2015

Buying a home may seem like an overwhelming task, but relying on the expertise of a real estate agent can make the process a breeze. Here are the top three benefits of using an agent:

1. Agents can help you manage all the paperwork.

Each state has different required contracts for a sale, which are constantly changing. A real estate agent is able to help guide you through the paperwork and make sure everything is done correctly.

2. Agents have experience negotiating with sellers.

If you’re buying a home, you want to pay the lowest price. Your agent can help you determine your monthly mortgage and insurance cost and help you write an offer that’s within your budget. Having a real estate agent negotiating with sellers on your behalf removes some of the stress of this part of the transaction.

3. Agents know what is happening in the housing market.

Real estate agents pay close attention to the housing market. They’ll be able to tell you about recent trends in the market, provide information about comparable home prices and give you referrals to resources like lenders, movers and home warranty providers. This is incredibly valuable information to have when looking for a home. The more information you have, the more confident you’ll be making decisions that affect you and your family.

You wouldn’t replace the engine in your car without a mechanic, why would you buy a home without a real estate agent?

Use the Rent vs. Buy Calculator

Posted on September 16, 2015

The question of should I rent or buy a home has been around forever. With rent prices rising, now is the perfect time to reconsider your housing options and figure out if owning is cheaper than renting.

The first thing you need to decide is how long you’re planning on living somewhere. If you only intend to stay for a year, renting is usually the better option. Renting has upfront costs that are lower than a down payment to buy a house and you often receive this money back when you’re finished renting. Buying a home requires a down payment, which is a certain percentage of the sale price or home’s value.

Also be sure to consider the benefit of stable monthly costs with a mortgage vs renting. Keep in mind with a mortgage, you can have the monthly cost fixed and it will be consistent until you have paid off the amount due. Often landlords will raise rents at the beginning of each year. This may be a small percentage raise, to hundreds of dollars added to what you initially thought you were going to pay.

If you are still wondering whether you should rent or buy, check out Mel Foster Co.’s rent vs. buy calculator. You can enter the price of the home with your expected interest rate and find out what your monthly payment will be. You can compare this to your monthly rent payment, and determine if buying a home would be a better solution for you.