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The costs of buying a home

1/31/2020

From the down payment to closing costs to property maintenance, we've rounded up all the costs involved with buying a home.
“Can I afford a home?” may seem like an overwhelming question, but really, there are just two major types of expenses you have to consider: upfront and ongoing costs. Here’s a breakdown of each, so you can figure out how much you’ll need — and if you’re ready to get going.
What to consider when asking, “Can I afford a home?”Upfront costs

Down payment
Your down payment helps prove to your lender that you can afford a home. In the past, most advisors have recommended that you put down 20 percent to get the best loan terms. But these days, most first-time buyers put down less than 10 percent. And with mortgages like FHA, USDA, or VA, you can put down as little as 3.5 or even 0 percent. That info alone can make “Can I afford a home,” so much easier to answer. If you put down less than 20 percent, your lender will often require private mortgage insurance (PMI). It can cost from 0.2 percent to 1.5 percent of your loan. However, it disappears after you’ve paid off 22 percent of your home. You can pay it all with your home closing costs, or roll it into your mortgage payment..
Inspections and appraisals
A home appraisal estimates the true value of the home so your lender knows they’re not financing it for more than it’s worth. A home inspection helps you make an informed purchase: Any issues (and most homes have some) will appear on your inspection report, so you’ll know what to expect. After your offer is accepted, and before you close, you’ll have an inspection and appraisal on the house. A basic home inspection costs around $300 to $500, and you can expect to pay $300-$400 for an appraisal.
Closing costs
Closing costs range from 2 to 5 percent of the total cost of the home, and they’re due when you close on your mortgage. You might be wondering what these costs entail. Closing costs vary by loan, but they typically include:
- Title Insurance: Insurance that protects the home buyer in case the seller doesn’t have full rights or access to the title of the property
- Origination Fee: A loan processing fee charged by the lender
- Underwriting Fee: Covers the cost of evaluating and verifying your loan application
- Document Preparation Fee: Pays for your loan file to be prepped
- Credit Report Costs: The fee to pull your credit score and report.
- Property Taxes: Prorated property taxes from your closing date through the end of the tax year.
- Homeowners Insurance: Typically, your first yearly premium.
- Prepaid Loan Interest: The cost of interest you’ll owe up until the first payment is due on the home loan.

Ongoing costs

Principal and interest
Your principal is the amount of your home you’re paying off each month, and your interest is added to that in your mortgage payment. Exactly how depends on your mortgage type. With a fixed-rate mortgage, this amount will stay the same for the life of the loan, but the amount of principal versus interest will change over time.
Insurance
Homeowners insurance protects your property in case of loss or damage. Rates vary widely by where you live (state averages for annual premiums range from $500 to $2,000) and by coverage, so you’ll want to shop around to find the best deal.
Property taxes
States and cities have their own property tax laws and rates, so check with the local government to find out the rate on a potential home. Multiply the assessed value of your home by the tax rate to get an estimate on your future payment.
Private mortgage insurance
As noted above, if you put less than 20 percent down, you’ll likely need to pay 0.2 percent to 1.5 percent of your loan in PMI as a part of your monthly mortgage payment — at least until you have enough equity in your home, or until you refinance.
Homeowners association fees
Depending on where you live, you may have to pay HOA fees each month. These are neighborhood organizations, and your fee covers anything from community pool maintenance to snow shoveling or mailbox painting. They vary quite a bit by location, but the average HOA fee is around $200-$300 per month.
Home maintenance costs
A brand-new, move-in-ready, built-to-order home is going to cost a lot less to keep up than a century-old foreclosure — but still, all houses require maintenance. On average, expect to spend around 1 percent of the cost of your home in maintenance each year — and more if it’s a fixer upper.

Property maintenance
This’ll vary, too. If you have a green thumb, a ladder, and spare time, you might only need to budget for materials. Or you may want to leave it all to the pros. For each home you consider, you’ll want to eyeball the property and get an estimate for maintenance services or for the tools you’d need for a DIY home project.

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Tips on Staging your house to Sell

1/23/2020

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Staging a house helps buyers imagine themselves living in it.

If you want to sell your home faster, staging a house may help. Staging a house gets your place showroom-ready and allows buyers to imagine themselves living there. Home buyers are used to seeing picture-perfect houses—in person, on home decorating shows, and in online listings, so learning how to stage a house can make a big difference when selling.

What does staging a house mean? Staging a house is the process of strategically arranging furnishings and decor to make a house look its best while selling. This may involve paring down and refreshing your own belongings, or moving all of your own stuff out and renting furniture and decor.

Here’s how to stage a house.

1. Understand why you’re staging a house.
Staging a house is a strategic move for sellers. A 2017 National Association of Realtors (NAR) survey says 49% of buyers’ agents believe staging affects most buyers’ view of a home. And 77% of them say it’s easier for people to visualize a staged home as their own. Staging can also increase the sales price. In that same NAR survey, 29% of sellers’ agents said the sales price for staged homes were between 1% and 5% higher than unstaged homes. Staged homes sell faster, too—39% of sellers’ agents reported that staging a home reduces days on the market. Understanding the benefits of staging a home can help you decide if it’s right for you, and how much to invest in doing it.
2. Get rid of clutter.
The most essential task when staging a house involves purging and cleaning—a clean, empty-as-possible house looks bigger. Remove knick-knacks and personal items from all surfaces. Don’t just put them in closets; potential buyers usually look in those, and you want yours to appear roomy. Box up spare belongings and get them out of the house. With the clutter gone, do a deep cleaning. Make your kitchen and bathroom sparkle, and be sure to close the toilet lid before any showings. Air out the entire house by opening the windows—air fresheners or scented candles can trigger allergies, and you don’t want prospective buyers feeling itchy. If you have pets, wash everything they touch—no one likes pet odor. Consider hiring a pro for the deep clean if you have room in your home-selling budget.
3. Aim for a light and bright look.
Buyers typically like to see bright rooms, so lighting is an essential part of staging a house. Open your blinds or pull your curtains back before a showing. Make sure your light fixtures look appealing. If your lampshades are dingy or your fixtures are dated, consider replacing them. Even dusting your bulbs and fixtures can help let more light through. Play with different color temperatures of lighting as well—the whiter the light, the more it will look like daylight. You can check the Kelvin rating on light bulb boxes to help you choose the right one: soft white is typically 2700K-3000K, and daylight runs between 5000K–6500K.
4. Stage important rooms first.
We’re about to get into the part of staging that can cost money—renting furniture, or removing some, which can require a storage unit. This can be a considerable cost of selling your house, so if you don’t have the time or money to stage your whole house, you can get the most bang for your buck by staging certain rooms. The NAR survey found the living room is the most crucial space to stage, with 55% of agents surveyed thinking it’s “very important” to stage it. Next comes the master bedroom, followed by the kitchen. Your last priority can be any extra bedrooms.
5. Remove and/or rent furniture.
A good rule of thumb is to remove about half your furniture. This could be difficult since you may still need to live in the home. But your house will look bigger and more appealing to most buyers with less furniture in it.
If your furniture just doesn’t look showroom-ready (or if it’s already moved into your new home), you can rent nice, new pieces. Put your furniture in storage, or sell or donate it if you won’t be taking it with you. If you’ve already moved, another option is pop-up furniture, which is made of corrugated plastic or cardboard, but looks nice enough to give sellers the sense of place and potential they need.
6. Arrange furniture.
Once you’ve settled on the furniture that will occupy the staged home, position couches, chairs, and tables away from your walls. This is a design technique called “floating” the furniture. Anchor the space with an area rug, even if the room has wall-to-wall carpet. This creates a cozy, intimate space, ideal for chatting with friends and family.
7. Work on your home’s curb appeal.
“Curb appeal” is a real estate term for how nice your home looks on the outside at first glance. It’s a big deal when staging a house because the exterior is the first thing potential buyers see. Get buyers in the door by doing the following:
- Power-wash your house and walkways.
- Clean your windows.
- Make sure your house number is easy to read.
- Mow the lawn.
- Trim overgrown greenery.
- Plant flowers.
- Put a welcome mat and potted plants on your front stoop.
- If you have a porch, include outdoor furniture.

8. Add little extras.
Once you’ve learned how to stage a house and yours looks perfect, add some finishing touches inside. People love to see fresh flowers in vases, a bowl of fresh fruit on the kitchen counter, and folded towels in the bathroom. If you’re living in your home while selling, you can keep your nice extras in a closet so they’re ready to go quickly when your real estate agent calls to say a buyer is on the way.

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10 Reasons to Move to Florida

1/15/2020

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Thinking of moving to Florida? You’re not alone. Every year, the Sunshine State attracts thousands of newcomers to its sandy shores – and it’s not hard to see why. From the lack of state income tax to the sunny weather, there are plenty of reasons to love calling Florida home. Its diverse population, delectable food and many theme parks and attractions also make it a particularly interesting place to live. Here are 10 reasons why you should consider moving to Florida today.

10 reasons why moving to Florida is a great idea

1. The majority of the year is sunny and warm

Why are so many people moving to Florida? For the weather, of course! With more than 200 sunshine-filled days a year, Florida offers newcomers exceptionally warm and sunny weather. Despite the hot and humid summers, Florida seasons tend to be mostly mild and warm. Those living in the southern portion of the Sunshine State will likely never need more than a sweater during the winter. With so many warm and sunny days a year, residents can spend less time indoors and more time outdoors exploring all that Florida has to offer.
2. There’s no state income tax

Looking to save more money on a monthly basis? Consider moving to Florida. While the majority of U.S. states require residents to pay state income taxes, the State of Florida does not. Fortunately for Florida residents, this lack of income tax allows them to save more of their hard-earned money for fun activities, vacations and belongings.
3. The beaches are fantastic

Life really is a beach in Florida. Residents have access to some of the world’s best and most beautiful beaches right outside their doors. Well-known and award-winning beaches in Florida include Sarasota’s Siesta Public Beach, which was named the number one beach in the U.S. by TripAdvisor, Clearwater Beach, Pensacola Beach, Delray Beach, St. Joseph Peninsula State Park, Panama City Public Beach, Grayton Beach and St. George Island – just to name a few.
4. There’s plenty of cultural diversity

There’s no other state quite like Florida when it comes to cultural diversity. Throughout the state, you’ll find people of every age, religion and background imaginable, making it one of the greatest melting pots in the country. In addition to those who are born and raised in Florida, many residents include snow birds and transplants from different states who have moved for the weather, job opportunities and tax benefits. Given its coastal location, Florida also attracts a large Latino population. The state’s diversity is without a doubt one of the reasons why Florida is such an interesting place to live.
5. Locals receive discounts to a number of attractions

There’s a major benefit to living where others vacation. From Walt Disney World in Orlando to The Breakers Resort in Palm Beach, hundreds of Florida attractions and hotels offer resident-only discounts and bargains throughout the year. The majority of deals are available during the late spring, summer and early fall months when tourism slows down.
6. There’s so much to do outdoors (and indoors!)

There’s no shortage of things to do in Florida. Thanks to the 200-plus days of sunshine a year, residents are able to spend much of their time outdoors partaking in everything from water sports to cultural experiences. Popular water activities in Florida include swimming, boating, scuba diving, paddle boarding and fishing. Residents also have easy access to a number of attractions such as Disney World and Universal Studios. Miami’s many art deco inspired hotels and restaurants, along with the city’s annual Art Basil event, offers plenty to do as well.
7. Living in Florida won’t break the bank

Looking to get more bang for your buck in terms of housing and day-to-day services? Move to Florida. While the cost of living in Florida’s major cities, such as Miami, can be on the higher end, the majority of areas throughout the Sunshine State are very affordable compared to many other U.S. states. According to AreaVibes, the overall cost of living in Florida is one point lower than the national average. Goods and services, healthcare, and housing in Florida all fall below the national average.
8. The sports culture is intense

From professional sports to college sports, Florida offers some of the best sports teams in the country to cheer on. While most states have one or two professional football teams (or none!), Florida has three. Florida also offers two professional baseball teams, two professional basketball teams and two professional hockey teams. Popular teams in the state include the Miami Heat, Miami Dolphins, Jacksonville Jaguars, Tampa Bay Buccanneers, Orlando Magic, Tampa Bay Rays, Miami Marlins and more. College’s such as the University of Florida and Florida State University also offer their own teams for students and alum to rally around.
9. The food and drink are delectable

From its famous stone crabs to its locally-made craft brews, Florida is home to a plethora of delectable dining options. With its many climate zones and thriving farms, it’s a mecca for fresh produce such as its world famous oranges, sugarcane, tomatoes, watermelon, avocados, strawberries and more. The state’s heavy Cuban influence also makes it a popular place for empanadas, Cuban coffee, sweet plantains and other Cuban delicacies. Florida restaurants serve plenty of Island-inspired and Caribbean-style foods such as Key Lime Pie and coconut shrimp as well. No matter where you are in Florida, you’ll be able to find fresh and tasty fare nearby.
10. You can vacation where you live

If you live in Florida, you’ll never have to travel for vacation again. The state’s many beaches, theme parks and attractions mean there are hundreds of vacation (read: staycation) options for you – all within a few hours drive. From the secluded sandy beaches along the Gulf Coast to the family-friendly theme parks of Disney World, there’s no shortage of fun and exciting places to visit in your own state.

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