The Best Homebuying Strategy

You don’t want to throw money away on rent anymore, do you? Instead, you can build an asset that can grow large if you handle your money wisely.

Your best strategy? Prepare financially now.

Down-payments.  Small down-payments spell risk for lenders. You’ll pay a higher interest rate, and you’ll have to get private mortgage insurance, about 0.5 to 1.0 percent of your mortgage. That’s about $2000 a year on a $200,000 mortgage, which will add about $167 to your monthly bills.   

While 20% down is ideal, paying PMI allows you to get into a home faster with less money down. You’ll benefit in a desirable housing market where home equity is rising.

The costs of homeownership. According to The Motley Fool, you should prepare to pay about two to five percent of the transaction in closing costs. Afterward, expect to pay for maintenance and repairs, which average about 1% of your home’s value annually. Property taxes can be reassessed annually by multiplying your home’s value by the mill rate (percentage) for your county. Prepare for utilities to rise in winter and summer.

Debt management. Money guru Dave Ramsey says buying a home when you’re in debt is like running a marathon with weights chained to your legs.

Rutgers University economists suggest your monthly consumer debt service should be no higher than 10% of your net income. At 20% or more, you’re in the danger zone. Divide your monthly consumer debt payments by your total net income to find your percentage.

Productivity Tips for Working From Home

Whether you’ve been working remotely for years or are new to a work-from-home scenario, there are important strategies for doing it successfully.

Many have the misconception that working from home is easy and will automatically lead to increased productivity. In reality, the opposite is usually true. There are often more distractions at home, and not having the office resources you rely on readily available can hamper your ability to do your job.

If you want to improve your chances of being productive while working from home, do the following:

Create designated space. Don’t try to do your job from the sofa, or worse, your bed. If you don’t already have a designated office space in your home, create one. Set up a table and comfortable chair in a room—or corner of a room—where you’re likely to have the most privacy. Use a decorative screen to help section off your workspace if need be. Take over a guest room, if you have one, or claim the dining room as your new office, relegating meals to the kitchen instead. The idea is to have a space that’s as private as possible, where you can leave your work materials out at the end of the day.

Get up on time. Working from home doesn’t mean it’s time to sleep in. Be sure to maintain the morning schedule you had when going into the office, and if you now have more time due to not having to commute, use it for exercise or to have breakfast with the family. Giving in to sleeping longer may reduce your energy level and make it harder to focus.

Establish a communication system. Working from home can often leave you feeling cut-off from your coworkers and managers, which can quickly stymie productivity. Make sure you have a system for effectively connecting, using both chat programs and video conferencing to stay in regular contact. Don’t just rely on email, which can lack details and intent. The idea is to avoid isolating yourself, even though you’re not physically present at the office.

Work during work hours. When working from home, it can be tempting to try and sneak in some domestic tasks or social engagements. Try to avoid this during designated work hours, as the distraction factor will quickly mount, and you’ll find it hard to keep switching between work and home life. Take a lunch hour and a couple of breaks for your personal tasks, then focus on work during the times you would while at the office.

Honor quitting time. One of the dangers of working from home is that your work is always right there with you. Be as productive as possible during work hours, then end your day as you normally would when at the office. Shut your computer down, organize your papers, turn off the light in your home-office space and call it a day. Taking the necessary time to detach from work every day will ultimately make you more productive.

Buying a Flipped Home

On the surface, the house looks great – fresh paint, new appliances in the kitchen, new carpet throughout and maybe an updated bath. The colors are modern and appealing and the home has been staged to perfection. That’s the goal of a flipped home - to make you feel like you could move right in without being bogged down with repairs and updates.

But, beware. While some home flippers are good, others are unregulated professionals who buy homes that are undervalued due to poor condition. They move fast to get the home back on the market quickly to minimize their holding costs. They seldom take time or spend the money to address high-cost items, like plumbing, foundations, and electrical replacement.

How do you know whether the home is a flipper-upper? Bankrate.com suggests getting as much information as you can about the home’s history:

• Has the home sold within the last six months or so and for a much lower price than the current asking price?
• Is the home owned by a non-occupying seller?
• Has the seller owned other homes for short periods before reselling them?
• Are the updates largely cosmetic? New sink, old pipes?
• Were permits obtained where necessary?
• Is there a detailed list of improvements or recent home inspection available?

Your Berkshire Hathaway HomeServices Showcase Properties Sales Professional can help you get vital information about the home so you can look past the dazzle of new décor and evaluate this home fairly compared to other properties in your price range.

Spring Cleaning: A Checklist for Your Home

Believe it or not, Spting is here. While it’s always a good idea to give your home a little TLC this time of year, that’s especially true if you’re planning to put it on the market this spring. And what better time to clean then when you are supposed to stay at home? Here are a few tips to help you with a thorough spring cleaning that will leave your home looking its best.

Declutter and Donate
One of the most important first steps is to tackle all of the clutter throughout your home, and a good way to do so is to have everyone make a donation pile. Anything that’s no longer being used can certainly be appreciated by another family, from old toys that the kids aren’t playing with anymore to clothes that have been outgrown. You’ll feel good about helping others while also making your home more organized. 

Window Washing
It’s always a good idea to have your windows professionally cleaned at least once a year and the spring is an ideal time to have them scrubbed inside and out. You might not even realize that dirt and smudges have accumulated over the course of the year, but you’ll notice the difference when your crystal-clear views are on full display.  

Landscape Clean-Up
Whether you make a family activity out of it or call in professionals, a landscape clean-up is likely in order because weeds, leaves and other unwanted debris has a way of collecting in the backyard during the winter. A fresh layer of mulch and pruning trees, shrubs and hedges will go a long way toward beautifying your grounds. 

Outdoor Furniture
After being cooped up indoors all winter, everyone can look forward to getting back outside. Thankfully, it’s time to brush off your outdoor furniture and take it out of storage or try revamping your backyard with a new set of loungers and dining table for al fresco entertaining. 

Fresh Coat of Paint
Calling in the painters to do some touch-ups around the home can make all the difference. If you’re the type who likes keeping everything in tip-top shape, a fresh coat is always a surefire way to remove the general wear and tear that shows up over the course of the year. 

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