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March 2020

Hamilton Group Properties gives clients the security of knowing they are working with true real estate professionals. All team members have grown up in the Chattanooga area, and continue to support local Chattanooga charities and businesses. Licensed in both Tennessee and Georgia and covering the entire Chattanooga area, Hamilton Group Properties offers more market and transaction knowledge than any other Chattanooga area real estate agents or teams because our clients get the benefit of having 3 realtors with more than 50 years of sales experience plus Hamilton Group Properties is the only area real estate team or group to have a licensed broker and a licensed attorney as members. As evidence of our success, Hamilton Group Properties has been a member of Berkshire Hathaway Home Services Chairman's Circle every year since 2013, and Chairman's Circle Platinum in 2017 and 2018. Most recently Hamilton Group Properties has been recognized in the top 1% of Berkshire Hathaway agents in Tennessee. In addition the team holds numerous designations: CRS (Certified Residential Specialist), GRI (Graduate of Realtor Institute), ABR (Accredited Buyers Representative), EPro, Green, RCC (Residential Construction Certified).

Berkshire Hathaway HomeServices Realty Center
Hamilton Group Properties (Main)
O: 423/ 866-2601 C: 423/ 508-5550
hamiltongroup@realtycenter.com
www.HamiltonGroupProperties.com

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FINANCIAL ADVICE

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.

HOMEOWNERS’ ADVICE

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 a detailed seller’s disclosure, recent home inspection, and list of improvements available?

Your Berkshire Hathaway HomeServices network 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.

FINANCIAL ADVICE

Should You Manage Your Own Rentals?

The nice part about being a landlord/lady is the passive income stream, meaning you don’t have to be present to make money, but that doesn’t mean there isn’t plenty of work to be done. You can do all the work, or hire a property manager if you’re willing to pay someone else to do all or part of what you don’t want to do.

 So which makes the most sense for you? You should manage your own rental property if you are:

  • residing reasonably close to your rental
  • financially able to carry the costs of your rental while vacant
  • prepared to run your rental as a real business
  • able to market your rental
  • able to meet potential renters to show the home and negotiate leases
  • willing to do background and credit checks on potential renters
  • willing to collect the rent and enforce late notices and fees
  • willing to address tenants’ complaints in a timely manner
  • willing to deal with problems at any hour, day or night
  • handy with tools or have a good reliable handyperson on call
  • unafraid to deal with and evict bad renters legally
  • willing to abide by court decisions in any tenant-landlord dispute

Depending on where you live, how many properties you own, and which services you require, you can expect to pay 5 to 15 percent of your monthly rental fee to a property manager.

HOMEBUYERS’ ADVICE

Rehoming Your Pet Humanely

You’ve been transferred. You can’t find a rental that allows pets, or the pet deposits are outlandishly high. A close relative passes away and leaves behind a beloved pet. For any number of reasons, you may find yourself facing the sad prospect of rehoming a pet dog or cat. Don’t despair; there are many ways to find a great home that will give your pet the quality of life you want for them.  

First, document your pet’s life. Photos, videos, veterinarian records, registrations and a description of your pet’s personality, likes and dislikes. Make a scrapbook as a gift for your pet’s new owners. This will help showcase your pet to advantage, both online and in person.

Ask family and friends if they’re interested and to help spread the word that your pet will be available. Ask your veterinarian if you can advertise your pet on their bulletin board and website. Finding a new home, yourself allows you to learn about the family that wants your pet.

Adoptapet.com partners with the Petco Foundation to guide you through finding a new home, including helping you create a profile for your pet, evaluate potential homes and providing a contract to finalize the adoption. The SPCA.org has a similar service that allows you to keep your pet at home until you find the right home.

You can always surrender your pet to a reputable rehoming center such as Humanesociety.org , where volunteers will take over to find your pet a new home.


1315 Taft Hwy. Signal Mountain, TN 37377

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