SOLDbyNat.com Real Estate Services

Insurance is required on a home by the mortgage company, but homeowners rely on it for peace of mind also.   Unfortunately, people may not take the time to investigate their policy and what it covers until they need to file a claim, which could be too late. While it may not seem like the best use of your time, an in-depth visit with your property insurance agent once a year could be valuable to you if you have losses and could increase your peace of mind. The following are some questions you can ask your insurance agent: What is the insured value of the policy and the replacement cost of your home?   Insured value is the amount that would be paid for a total loss but replacing the home could cost more than that amount. What is the deductible?   Higher deductibles on the first amount of the loss are one way to lower the cost of the premium.   It may sound good when you're having to pay for the policy but feel very different at the time you file a cla...

Real estate has consistently been one of the highest rated investments available to individuals.  TV shows certainly make rentals look easy and you may even know someone who has made a lot of money with them.  Possibly, the thought has crossed your mind that if they can do it, you can too. Before you contract for your first investment, ask yourself some questions that could save you time and energy.  Not all people have the time, the inclination or even the skill to manage property.  Landlords need to be good business people who can maximize revenue and minimize expenses.  If investors don't have the skills and talent to handle some of the repairs, they at least need to know reputable and reasonable service professionals. Another important element is to be familiar with the state and local landlord tenant laws.  You'll need to know what are allowable security deposits and where the money can be held.  Knowing how long you have to return it to ...

Occasionally, buyers who can qualify to purchase a home decide to "take a break" and wait to purchase a home.   When the focus of buying a home is relaxed, other uses for the money that was going to be used for the home are considered. Maybe they think how much fun it would be to have a Sea Doo or a motorcycle or a new car.   It is amazing how many people would like to buy a home but either don't have the down payment, the income or the good credit to make it possible. Instead of spending the money, consider investing the money for two years until the time is right to buy a home.   Let's look at putting the money in a certificate of deposit that earns 2% or in the stock market that could average a 5% return. Assume you were purchasing a $295,000 home on a FHA loan with 3.5% down payment.   The $10,325 would grow to $10,742 in the CD which isn't a big increase but at least it is safe and secure, and it will be available when you're ready. If the same am...

It is estimated that over 15% of the population in the U.S. are over 65 years of age.   With one of the most common fears of seniors being their money will run out early, it is understandable that downsizing may be strategy to meet their goals. Once the kids are grown, have careers, relationships and get a place of their own, parents find they may not need their "big" home like they did before.   In other situations, their lifestyle might have changed, and the house just doesn't "fit" anymore. The benefits of a smaller home can include the following: Easier to maintain Lower utilities Lower property taxes Lower insurance More convenient location Single level Possibly more energy efficient Possibly lower maintenance Like any other big change in life, it is recommended that a person should take their time to consider the possible alternatives and outcomes.   Are they going to stay in the same area?   What t...

The process of buying a home can be different based on the price range and whether a mortgage is needed.   While some things are different, others are similar regardless of price, financing or local customs. Each year, the National Association of REALTORS® surveys buyers and sellers who have purchased or sold in the previous twelve months in order to identify the process and steps taken.   It provides a lot of information for the people who will be going through the process now and in the near future. 44% of all buyers looked online for properties for sale.   This might be considered a logical first step to determine the prices of homes in certain areas and what features they offered. 17% of all buyers stated that their next step was to contact a real estate agent.   In another REALTOR study, it is reported that 87% of all buyers purchased their home through a real estate agent or broker.   Buyers identify a wide range of services the agents offer that...

Equity build-up could be one of the biggest advantages to buying a home.   There are two distinct dynamics that take place to make this happen:   each house payment applies an amount to reduce the mortgage owed and appreciation causes the value of the home to go up. It is easy to make a projection based on the type of mortgage you get and your estimation of appreciation over the time you expect to own the home.   Even conservative estimates can produce impressive results. Let's look at an example of a home with a $270,000 mortgage at 4.5% for 30 years and a total payment of $2,047.55 payment including principal, interest, taxes and insurance.   The average monthly principal reduction for the first year is $362.98. If you assume a 3% appreciation on the $300,000 home, the average monthly appreciation is $750 a month. The total payment of $2,047.55 less $1,112.98 for principal reduction and appreciation makes the net monthly cost of housing, excluding tax benefit...

35% of respondents, in a recent annual Gallup poll that dates back to 2002, identified real estate as the best long-term investment option compared to 27% who identified stocks. The top choices included real estate, stocks, savings accounts and gold.   Even with the remarkable prices of the different U.S. stock indices recorded in 2019 through April and May, homes have the highest confidence in the minds of the respondents. This seems to be based on the stability of the housing market and the expectation that home prices will continue to rise.   Homeowners build equity from both appreciation as well as reducing principal with each payment made. These same factors exist for investors of rental homes in predominantly owner-occupied neighborhoods. Real estate has another dynamic working to produce favorable investment results due to leverage.   Leverage occurs when borrowed funds are used to control an asset.   When the borrowed funds are at a lower rate than...