5 Questions To Ask Yourself Before Buying A Family Home

1.     Where do we want our children to go to school?

a.     Unless you’re homeschooling your children, you put them in a private school, or they got into a lottery school of your choosing, they’re going to public school.

b.     Public schools – is that what you want and which schools if any do you have a preference for? Are you in the right district? AKA LOCATION

                                               i.     Sports, extra-curricular – music, student council, etc.

2.     What size family do we plan on having?

a.     If you’re like me, you didn’t plan a number, but you love kids. But let me ask you this question, what is your maximum amount of children you could see yourself having?

b.     Every child doesn’t necessarily need to have its own bedroom.

                                               i.     If you want SIX children, you don’t need a SIX-bedroom house. That’s probably not feasible. But you probably do need at least a 4-bedroom house.

                                              ii.     Why is this important? Resale. If you outgrow a house, you can’t bank on selling a house in 4 years and coming out on top. The first few years of a typical 30-year mortgage go towards paying MOSTLY interest. Plan the next 3, 5, 10 and 15 years.

3.     Budget.

a.     Don’t be house rich and cash poor.

b.     Look at your finances, look at your budget, what do we feel comfortable paying every month? Work backwards from there.

c.      Your income says you can afford it, but can you really?

                                               i.     Don’t forget about utilities and maintenance costs.

1.     New roof, boiler, paint, upgrades, etc.

d.     Think about some of the other things you want to spend your money on, such as: pets, sports and vacations.

e.     PRO-TIP: If your budget is $350k, but you go looking at your pre-approved amount of $500k, you WILL LIKE THAT HOUSE MORE. Its just science! Stick to your budget, and live in your means.

4.     How old are you and where are you at in your money making career.

a.     Where are you at in your career?

                                               i.     If you’re young, you have energy, and time on your side. Contemplate using your FHA / VA loan for a fourplex or multifamily. Make a sacrifice, live in a shoebox if you have to, and build your portfolio.

b.     On the contrary: Are you gearing up for retirement?

                                               i.     Less maintenance is better. Layout should be ideal for minimal movement; you never know what is going to happen.

c.      I just want to say, don’t feel like you have to invest in real estate. It’s not for everyone, and you can build wealth in numerous ways. It does require sacrifice, an eye for a deal and knowing an agent who knows their numbers AND is conservative (WINK WINK)…you’re probably not going to get granite counter tops and stainless steel appliances, and that’s ok. Investing for your future IS a sacrifice, but a great one.

5.     Enjoyment of Life

a.     Do you want a pet, do you need a fence, south facing yard.

                                               i.     PS WE LOVE a south facing yard for that sun, and gardening.

                                              ii.     Maybe you’re homebodies and love staying inside and watching a movie. That’s fine; let’s get you a media room.

b.     Do you want a view, be close to shopping, love downtown?

c.      Commute time? Studies show the closer you are to work, the better your quality of life. It’s facts people.

Municipality of Anchorage, 2019 Residential Tax Exemption Form

This form is for current home owners in the Anchorage Municipality. Must be owner of record prior to 1/1/19. Must be:

• Primary Residence
• Living at said residence for at least 185 Days (close on or before June 30th, 2018)

Should you not be able to see the form, or download it, please click here to download directly from the muni.

Below are some of my notes from the dialogue of the video to outline the impact interest rates play:

I just wanted to take a second to talk about interest rates

Year over year we are up by 0.71%

Compared to 2016, we are up just over 1 full percent.

Doesn’t sound like a lot, but lets break it down.

If you bought a house and financed:

$300,000 @ 3.6% interest

Monthly payments are around $1,364

Total interest paid over the life of a 30 year loan is $191,016.14

If you bought the same house right now

$300,000 financed at 4.62% interest

Monthly payments are $1,541 – that is $176 per month more NOW

Total interest paid over the life of a 30 year loan is $254,947.76

That is $63,931.62 higher than in 2016

Let’s say the interest rates jump to 7%

Same house

$300,000 @ 7%

Monthly payments of $1,996

Total interest of $419k

So, you’re payments on the financed portion would be 30% higher

And you’d pay 64% more interest

Anchorage Weekly Residential Market Report Update #16 May 26th, 2018

Everything is looking pretty good! Interest rates are staying stable, price of oil is up, and the spring / summer rush for real estate is here! Let us know if you have any questions and enjoy your Memorial Day Weekend!

Anchorage Market Report #14 - HERO Realty Group

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update May 12th 2018 - Have a great weekend! The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't hire a zero, hire a HERO! =-) Advice for Buyers: https://youtu.be/vBJ2VaKN7-o?t=3m22s (advice starts at 3 minutes 22 seconds) Advice for Sellers: https://youtu.be/vBJ2VaKN7-o?t=8m21s (Advice starts at 8 minutes 21 seconds) Look at homes for sale: http://www.propertiesofalaska.com/anc... OR http://www.herorealtygroup.com Get a value on your home: http://www.propertiesofalaska.com/cma... What do we do to sell your home? Visit: http://www.propertiesofalaska.com/sel... https://www.instagram.com/herorealtyg... https://www.facebook.com/herorealtygroup E-mail questions, or to get reports, James @: james@herorealtygroup.com

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update May 5th 2018 - Happy Cinco De Mayo! The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't be a zero, hire a HERO! =-)

Advice for Buyers: https://youtu.be/vBJ2VaKN7-o?t=3m22s (advice starts at 3 minutes 22 seconds)

Advice for Sellers: https://youtu.be/vBJ2VaKN7-o?t=8m21s (Advice starts at 8 minutes 21 seconds)

Look at homes for sale: http://www.propertiesofalaska.com/anchorage OR http://www.herorealtygroup.com

Get a value on your home: http://www.propertiesofalaska.com/cma/property-valuation/

What do we do to sell your home? Visit: http://www.propertiesofalaska.com/selling

https://www.instagram.com/herorealtygroup

https://www.facebook.com/herorealtygroup

E-mail questions, or to get reports, James @: james@herorealtygroup.com Thank you!

What is a Home Inspection and Why Should You Get One?

            Has the thought ever crossed your mind as to why we pay for a home inspection? Some people may see it as a waste of money but TRUST ME it is worth every penny. A typical home inspection usually cost homebuyers a few hundred dollars. Would you buy a used car without taking it to a mechanic first? The answer for most people would be no! Buying a home is one of the most expensive purchases one will make in their life so why take the risk of not knowing what your getting yourself into.

A home inspection is simply the process of having a licensed inspector check all aspects of your home to see if any repairs should be made. Once the inspector has thoroughly checked out your home you will receive a report on recommendation of what should be fixed.  The report will include items such as Health and Life Safety, Significant Home Repairs and Recommended Repair Items. Sometimes it may be a simple fix such as changing out the smoke detectors or replacing the outlets with ones that are up to code. In other cases the repairs could be major such as a new roof or cracks in the foundation.  This job should be left to the professionals; most real estate transactions require a home inspection these days.

By declining a home inspection you are buying a home blindly.  Unforeseen repairs could cost you tens of thousands of dollars, not exactly the type of surprise you want to receive.  By investing a few hundred dollars into an inspection you can rest your head at night in the comfort of your new home knowing you made the right choice.  Keep in mind no home is perfect and it is common to have multiple repairs. A home warranty is completely separate from a home inspection, the inspection is a good indicator of current issues but unfortunately there is no way to predict future maintenance. If you need recommendations for a trusty home inspector here in town or better yet are in the market to buy/sell a home you should reach out to us.

Closing Costs – What are they, and who pays for them?

            In short, there are two bigger categories of closing costs – Buyer related, and Seller related. These are the costs associated with the purchasing, lending, and/or selling of a home. Depending on the lender, title company, and financing type, these costs may vary.

Buyer Closing Costs

            Before we tackle what these are, let’s first look at it from a Seller’s perspective.

            Not all Buyers can afford their own closing costs. In fact, this is pretty common. It is, however, person-to-person dependent, and is less common in a price range of over $450,000. The reason for this is because individuals who qualify for a larger home loan typically make and/or have more money in general.

            A buyer can ask a seller to pay a portion, or all of their closing costs. The amount a Seller can legally pay towards a Buyer’s closing costs will vary depending on loan type. For example, with an investment property or vacation home (non-owner occupy / not a Buyer’s primary residence), a seller can only pay up to 2% of the buyer’s closing costs. Contrastingly, on something like a FHA or VA Loan, a Seller can pay up to 6% and 4% respectively (there are some caveats to this, too long to list). This is because lenders know that compared to investors or second-home buyers, first time homebuyers typically have less money lying around and may need a little extra help.

            So, what do a Buyer’s closing cost consist of? Great question, here are some of the fees a Buyer will incur when purchasing their first, or next home:

·      Loan origination fees (the fee the lender charges for loan)

·      Discount Points (if buying down the rate for a lower interest rate)

·      Title Insurance

·      Pre-paids / Reserves: Interest, Hazard Insurance, Other Insurance, Mortgage Insurance, Hazard Reserves, Tax Reserves, Home Owners Dues / Transfer Fees

·      Miscellaneous Fees – Escrow fee, Attorney Doc Prep Fee, Surveys, Recording Fees, Title Transfer Fees, Tax Registration Fee, Appraisal Fee.

The financial bulk of these fees will be the Origination Fee (if the lender still has one), and pre-paids (insurance, taxes, etc.)

Seller’s Closing Costs

            What is the seller paying for on their end of the deal? The actual fees for the Seller to close a on a home are much less in contrast. This is because they are not using a loan or financing any portion. Also, this is one of the main reason cash deals are so enticing – there are far less costs associated with them.

            The Seller’s Closing Costs can include:

·      Miscellaneous Fees – Escrow fee, Attorney Doc Prep Fee, Surveys, Recording Fees, Title Transfer Fees, Tax Registration Fee, Appraisal Fee.

·      Owner’s Title Insurance Fees

·      Past due Home Owner’s Association Fees / Condo Dues

Typically, the Seller’s biggest fees will come from the Owner’s Title Insurance Policy, and the Appraisal (though sometimes the Buyer may pay it – more prevalent in a multiple-offer situation where the Buyer wants to sweeten the deal)

In closing (see what I did there?), I’ll leave a quick note to Mr. & Mrs. Seller – if you’re selling a home under about $450,000, the buyer may or may not have funds for their closing costs in addition to their down payment. It may be wise to consider this fact before listing, and not feel blind sided if you get an offer with 3% of the prospective buyer’s closing costs tacked on at the end.

There you go! Those are the basics of closing costs!

Have questions? We’d love to answer them.

E-mail James Cash at james@herorealtygroup.com, OR, call or text us at 907-726-HERO.

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update April 21st 2018. The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't be hire a zero, hire a HERO! =-)

Look at homes for sale:

http://www.propertiesofalaska.com/anchorage

Get a value on your home:

http://www.propertiesofalaska.com/cma/property-valuation/

What do we do to sell your home? Visit:

http://www.propertiesofalaska.com/selling

E-mail questions, or to get reports, James @:

james@herorealtygroup.com

Thank you!