Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Buying Real Estate vs. Buying Stocks: Here’s Why a Home Should Be Your Priority

by

Buying Real Estate vs. Buying Stocks: Here's Why a Home Should Be Your PriorityOnce you’re done with debt and you’ve started to save, it’s commonly the case that you’ll start hearing about the risks and rewards of investing in stocks or real estate. Unfortunately, it can be difficult for many people to know what type of investment is going to work better for them down the road. If you’re currently considering what you should put your money into, here are some reasons you may want to turn to real estate.

It’s Something You Can See

While investing in the stock market will give you the ability to invest as little or as much as you want, a home will take a monthly payment and a down payment in order to make the deal. Fortunately, this means that you’ll be investing money every month into something that belongs to you and that you can see. A home is not only something you can invest in all the time, it will enable you to avoid putting money into rent that you’ll never get back.

Saving Money On Tax Breaks

There may be a certain amount of volatility with any market investment, but when it comes to buying a home you also have the benefit of tax breaks that are designed specifically for homeowners. In addition to the ability to deduct interest on your main residence if you’ve lived in your property for a minimum of two of the last five years, you’ll also be able to sell it tax-free. Investing in a home certainly takes savings, but there are many available tax benefits that can save money.

A Sense Of Security

Many people want to invest in a home because it offers up a piece of something that they can really own. However, another appealing aspect of having a home is that you’ll be removed from the day-to-day rumblings of the stock market. Investing can make people more than a little weary, even if they’re knowledgeable about the markets, and this can cause people to sell off and lose money when the going gets tough.

Investing in real estate and the stock market both involve some degree of financial risk, but you might not be aware that there are several added benefits of buying a home. From the tax break incentives to the sense of security, real estate can often be the better financial route to take.

Is It Time To Create A Home Office: What To Know

by

Is It Time To Create A Home Office: What To KnowOffice work has changed significantly during the past few years. With many people working well from home, numerous employers are becoming open to the possibility of allowing their employees to work from home permanently. With many people looking for ways to be productive from home, it is critical to create an environment that is conducive to being productive. How can homeowners make this happen?

Make Small Changes First

It is difficult to make major changes in a small home or condo; however, there are still small changes that can be made. For example, many people use a drop-down shelf or a narrow table as a work from home desk. Then, with a task light and a monitor, it is easy to create a functional home office. It is even possible to repurpose a formal dining room table, by turning it into a home office.

Repurpose An Entire Room

Those who own larger single-family homes might be able to make bigger changes to their homes, repurposing an entire room and turning it into a home office. For example, it might be possible to turn the guest room into a home office, making it a guest room during the evening and a home office during the day. Then, homeowners might want to install a Murphy bed that can fold out and create a guest room during the evening.

Use The Attic Or Basement

It might be time to finish the attic or basement, turning that into a home office. These are usually large spaces that can be used for more than one purpose. For example, it might be possible to use this space as a home office for two people. Consider investing in great lighting to avoid creating a cave-like work environment. It is possible to turn these locations into fantastic home offices with the right tools.

Consider Building An Addition

Finally, some homeowners are also thinking about building a home office instead. It might be time to add an addition to a single-family home, particularly for those who are going to be working from home for the foreseeable future. There are plenty of remodeling projects that could create a functional, comfortable home office.

Real Estate Terms: The ‘Debt to Income’ Ratio and How It Affects Your Home Purchase

by

Real Estate Terms: The 'Debt to Income' Ratio and How It Affects Your Home PurchaseThe real estate market is rife with terminology that can make a home purchase seem more than a little complicated. If you’re currently looking for a home and are considering your loan options, you may have even heard the term ‘Debt to Income’ ratio. In the interest of simplifying things, here are some insights on what this term means and how it can impact your home investment.

Determining Your ‘Debt to Income’ Ratio

It’s important to consider what exactly your DTI ratio is before your home purchase as this will quickly determine how much home you can actually afford. To calculate this number, take your monthly debt payments – including any credit card, loan and mortgage payments – and divide them by your monthly gross income to get a percentage. In the event that your monthly debt is $700 and you make $2800 in income, your DTI is 25%.

What Your DTI Means To The Bank

The DTI is a very important number when it comes to a home loan because it enables the bank to determine your financial situation. A DTI of 25% leaves some wiggle room, as most banks will allow a DTI percentage that runs between 36-43%. In the case of the above example, this means that the most debt this person could take on per month is about $1200. While banks vary on this percentage, credit history plays an important part in the DTI that will be allowed.

Paying Down Your Debt Or Purchasing A Home

In the event that you have a DTI ratio that exceeds what your bank will allow, you will need to consider your debts before moving on to investing in a home. If you’re planning on purchasing a home in the next year, it’s a good idea to tackle high-interest debt first. However, if you happen to have a chunk of money saved up that you’re planning on putting into a down payment, it’s worth considering that putting more than 20% down may slightly increase the DTI percentage your bank will accept.

There are many fancy terms that go along with the world of real estate, but it’s important to understand what they mean so you can make them work in your favor. If you’re calculating your DTI ratio and are planning a home purchase down the road, you may want to contact one of our local real estate professionals for more information.

The Top Tips for Saving Money On Energy Bills

by

The Top Tips for Saving Money On Energy BillsThere are many homeowners who are looking for ways to reduce their monthly expenses. One way to do that is to target energy bills and expenditures. Homeowners might be able to make a few changes and upgrades to their homes, which could reduce utility bills and improve energy efficiency. What are a few ways to do exactly that?

Consider Making The Switch To LED Lights

One of the first changes homeowners might want to make is to switch to LED lights. LED lights are newer lights that can last many times longer than traditional lightbulbs. It is not unusual for homeowners to save $75 per year on energy costs by switching older incandescent lightbulbs to LED bulbs. Talk to a local contractor or professional about some of the top LED bulbs available today.

Seal Leaks Around Doors And Windows Throughout The Home

Heating and cooling expenses are some of the biggest energy expenditures that people have. By sealing a few leaks throughout the home, it is possible to save up to 20 percent on heating and cooling costs. There are small leaks that could be present around the doors and windows. By sealing these leaks using caulk, homeowners can trap heat and air conditioning in the home, removing stress from the HVAC unit. Homeowners should also consider sealing leaks around lighting and chimneys.

Invest In A Smart Thermostat

It is also possible for homeowners to save money by investing in a smart thermostat. Homeowners should consider using this thermostat to reduce the amount of work performed by the HVAC unit when people are at work or asleep. That way, the heating and cooling system doesn’t work as hard when people aren’t home (or are asleep).

Perform Routine Maintenance On Time

Finally, homeowners need to make sure they perform routine maintenance on their HVAC systems on time to reduce energy expenses. For example, the filters might get clogged, forcing the HVAC system to work harder to heat and cool parts of the home. By investing in maintenance, the HVAC system will operate at peak efficiency, which will reduce energy bills. This will also extend the life of the HVAC system efficiency, which might allow homeowners to put off replacing it.

Homeownership And The American Dream: Is It Changing?

by

Homeownership And The American Dream: Is It Changing?There are a few parts of American culture that people believe define this country. One element is the dream of homeownership. There is a strong belief that people need a place to call home. Therefore, since the dawn of this country, the government has tried to incentivize people to purchase a home.

At the same time, there are some people who are looking at the younger generation, wondering if this American Dream is starting to change. Is homeownership still a part of the American Dream?

Americans Still Believe In The Idea Of Homeownership

Hard work and owning a home appear to be inseparable. There is still a belief that as long as people work hard and save money, they can fulfill the American Dream by buying a home. Real estate professionals regularly take surveys that show that people still want to be a homeowner for the sake of owning a home. While it is true that owning a home provides more control and creates investment opportunities, owning a home still has an allure to people that is undeniable.

Millennials Want To Own A Home As Well

Millennials appear to believe most strongly in owning a home, indicating that this is still a part of the American Dream. Even though some people thought that millennials were simply going to rent forever, this is not the case. The reality is that many young adults have not purchased a home because they could not afford one. Student loans and a lack of wage growth compared to housing increases simply made it harder. With interest rates lower than they ever have been in the past, many young adults are ready to make the jump to purchase a home.

Homeownership Is Still A Part Of The American Dream

Ultimately, many millennials simply put off the idea of getting married and having children, so they put off the idea of homeownership as well. Now that this milestone has arrived, there are many young adults who are looking to purchase a home for the first time. This indicates that owning a home is still a key part of the American Dream.

Understanding Appraisals and What to Do If Your Home Doesn’t Appraise for Its Purchase Price

by

Understanding Appraisals and What to Do If Your Home Doesn't Appraise for Its Purchase PriceIt can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.

Review The Appraisal Contingency Clause

If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.

Get A Second Appraisal

It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.

Consider A Lower Price

It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.

It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. If you’re currently going through the appraisal process, you may want to contact your local mortgage professional for more information.

Dealing with the Summer Heat? How to Keep Your Home Cool Without Using a Ton of Energy

by

Dealing with the Summer Heat? How to Keep Your Home Cool Without Using a Ton of EnergyMany people look forward to the long, relaxed, sunny days of summer, but they also dread opening up their energy bills throughout the summer months. Cooling a home can be costly, and many are searching for convenient ways to lower cooling costs without sacrificing on comfort inside the home on the warmest days of the year. These are just a few of the cost-effective and convenient options that can help homeowners to reduce cooling costs throughout the summer.

Keep The Blinds Closed

A significant amount of heat can enter a home through the windows, and blinds and curtains provide an extra layer of insulation between the window glass and the interior of the home. Some types of blinds and curtains are more effective at blocking heat than others, and homeowners may consider making an upgrade for the best results. For example, wood blinds can block significantly more heat than thin, almost translucent sheers.

Run The Ceiling Fans

Another way to keep cooling costs lower throughout the summer months is to run ceiling fans regularly. Ceiling fans help to circulate the air, and this helps the central cooling system function more efficiently. In addition, ceiling fans also can make those who are in the room feel cooler, and this may mean that homeowners can keep the home’s thermostat set at a slightly higher level than it otherwise would need to be set at for comfort indoors.

Use Heat-Generating Features At Night

There are numerous appliances and types of equipment that may be used indoors throughout the summer that can generate a considerable amount of heat, and running these at night can reduce the need to run the central cooling system as much during warm days. Consider that everything from running the washing machine and dryer to using the dishwasher and oven or range can emit heat in the home, and these serve to counteract the work that the cooling system is doing. When possible, limit the use of these features to cooler nighttime hours.

Keeping the home cool throughout the summer is a top priority for most, and the good news is that there are easy ways to reduce the cost associated with keeping a home cool. These ideas all can be beneficial in a homeowner’s quest to reduce energy costs during the summer.

If your current home is a real energy hog and you are ready to move into a more energy efficant option, make sure to speak with your trusted real estate professional for a look at newer energy efficant homes in your area.

Photography Tricks To Watch Out For When Buying A Home Online

by

Photography Tricks To Watch Out For When Buying A Home OnlineWith COVID and social distancing keeping people apart, buying a home in person has become a real challenge. Digital tools and online presentations of homes for sale have ramped up in response, making it possible to see properties with both static images/photos and with “360 degree” views or interactive walkthroughs. However, these are not real-time images of the home itself. They are professionally-developed representations of a property, and a lot of software work goes into making those images marketing ready.

Photographic Tools of the Trade

If a listing has included images created by a professional photographer, he or she will have used a number of resources to produce what a consumer sees. First, the camera will be a high-grade, professional unit with enhanced features in it for different lighting aspects. It may be likely that 20 to 30 individual shots were taken and possibly merged to get the “right” image.

Once the raw image set is identified, the photographer will then use processing software to enhance the image. This includes features like further lighting changes, straightening of vertical and horizontal levels in the image, color saturation and vibrancy, and spot or mistake fixing. In short, the room or home in the image won’t be the actual, exact room seen in real time. Additional work can be applied on clouds and background, such as seen in external property photos, and mask layers can even be applied to add in elements that were never in the original photograph when snapped.

Spot-fixing is a frequently-used digital effect that hides blemishes otherwise visible in a photograph. It’s very easy to do, and the matching by the software blends the targeted image part with surrounding material, so the end result looks natural and unedited. This can cover up wall stains, dents or sagging, cracks, carpet blemishes and a lot more.

Videos Aren’t Much Better

Another typical photo-based display of homes tends to be video. Folks often believe videos are more accurate and better than photographs in judging a property. However, keep in mind there is an extensive set of tools for digital video editing available, and most film professionals know how to apply similar lighting, color, and changes to film as well as how to edit and present the best image versus cropping out and removing snippets of questionable coverage. The big problem with video is how much of it can be changed with multiple video shots streamed together to look like one view or one time period.

Photographs Hide Staging

Another big issue with newly-built homes as well as used homes for sale is staging. Photographers work with sales teams to stage and present a what-if view of a home for sale that can be very different from the actual product received once the escrow is completed. Unless you see the photographs in raw form, you really don’t know what you are buying without physically visiting the property.

Bottom line, try to avoid buying a home without seeing it in person. If you do need to purchase remotely, use a third party you can trust to obtain independent images that are not professionally altered, or you may be unhappily surprised with the difference between a listing’s marketing images and your actual new home.

How Does A Change In Mortgage Rates Impact A Family’s Housing Budget?

by

How Does A Change In Mortgage Rates Impact A Family's Housing Budget?

The housing market is extremely competitive right now because mortgage rates are still near record lows. While mortgage rates are rising this year, the rates are still attractive to many individuals and families who are looking to buy a home. At the same time, when mortgage rates change, families need to re-evaluate their budgets. A change in mortgage rates will impact the monthly mortgage payment, so families need to know what they can afford.

Furthermore, because the market is so competitive, sale prices are going up as well. As mortgage rates and home prices rise, families need to determine what their monthly budget is. Even a small increase in the mortgage rate can make a big difference.  

Families Must Do The Math To Figure Out Their Monthly Mortgage Payments

Families need to figure out what monthly mortgage payment they can afford before they make an offer on a home. The factors impacting the monthly mortgage payment are the loan amount, the interest rate, and the repayment period. Many homeowners take out a 30-year mortgage; however, borrowers might be able to adjust the term to meet their specific needs. A few important points to remember include:

  • If the number of years over which the loan is paid back goes down, the monthly payment will likely increase
  • If the interest rate on the loan goes up, the monthly payment will increase
  • If the loan amount goes up, the monthly payment will increase

Families can adjust all of these factors to find the right monthly payment for their budgets.

There Are Ways To Reduce The Interest Rate On A Loan

Finally, there are steps that families can take to reduce the interest rate on their loans. For example, families might be able to put more money down to qualify for a better interest rate. This could reduce the monthly payment, keeping the loan amount within the family’s budget. Or, families might be able to pay down other types of debt such as credit card debt or car loans. If families have a lower debt to income ratio, they might qualify for a better interest rate. This could help families afford a larger house without having to spend more money.

Reevaluate

Pantone Colors: Should You Repaint Before You Sell?

by

Pantone Colors: Should You Repaint Before You Sell?Pantone is a universal language of color that you can use to select beautiful colors to paint the home. Interestingly, each year, Pantone selects a color of the year that embodies what’s happening in society. 

In 2021, the Pantone color of the year was awarded to two colors, Illuminating 13-0647 and Ultimate Gray 17-5104. These two colors highlight how two different elements can come together and support each other. This is the thought behind selecting them based on what has occurred over the last year. 

The bold yellow and deeper gray capture feelings of promise, friendliness, and thoughtfulness, which may be a great reason to add those colors to a home. Should homeowners repaint their home in these colors, though, before they sell?

When Psychology Matters, Remember Pantone’s Color of the Year

Pantone’s color of the year is normally the start, or continuation, of a yearly color trend. That can make it an excellent color to incorporate into your home, especially if you are selecting the color based on its meaning. 

However, most people don’t use Pantone colors to completely repaint before selling their homes. Instead, they use the Pantone color of the year to add pops of color or a touch of the modern color palette before putting the home on the market. 

How Can You Incorporate the Pantone Color of the Year?

For example, if a home is already based on a neutral color scheme in grays or blues, adding a pop of the color Illuminating draws the eye. Using yellow as an accent color is a great way to draw attention to impressive parts of the home.

For brighter spaces, toning down the room with a cooler, relaxed gray is a good way to make the space welcoming to those who love color as well as to those who have a more traditional approach to home decorating.

Repainting an entire home in the Pantone color of the year is an option if homeowners need to repaint anyway, but if they don’t, then it could be an expensive option. To reach the most buyers, the better bet is to choose a neutral palette that potential buyers can envision in their own preferred color scheme.