Buying Archives - Tom Sharpe Properties

Jan 31 No Comments

The Trend of the Square Foot: Maximizing Your Home’s Value

Author: Carmela D

Categories: Buying,Selling

In the ever-changing world of real estate, maximizing home value has become an art. Homeowners and investors now focus on intricate details, and one crucial factor gaining prominence is square footage. From open-concept living to multipurpose rooms, smart storage solutions, and outdoor spaces, homeowners are unlocking every inch’s potential to enhance functionality and resale value.

Open Concept Living: Breaking Down Walls for a Bigger Feel

Compartmentalized living spaces are giving way to open-concept designs. Knocking down walls enhances the perceived size, allows more natural light, and maximizes usable square footage, catering to modern aesthetics.

Multipurpose Rooms: Flexibility in Functionality

Today’s homeowners prefer multipurpose rooms that adapt to various needs. Rooms doubling as a home office or guest bedroom exemplify the versatility that appeals to diverse potential buyers.

Smart Storage Solutions: Decluttering for Value

Efficient storage solutions, from under-stair storage to built-in cabinets, enhance the aesthetic appeal and create a sense of order, a significant selling point for prospective buyers.

Outdoor Living Spaces: Extending Square Footage Beyond Walls

Outdoor areas like patios and decks are recognized as extensions of a home’s square footage, providing additional spaces for relaxation and entertainment.

Energy-Efficient Upgrades: Sustainability Meets Savings

Investing in energy-efficient upgrades not only contributes to a greener footprint but also adds value to a home, appealing to eco-conscious homebuyers.

The 12.0% increase in the median sale price per square foot has significant implications for both home valuation and sales strategies. This trend shapes the real estate landscape.

Impact on Home Valuation:

Increased Property Values: Homes are appraised at higher rates based on square footage, influencing overall property worth.
Renewed Focus on Square Footage: Homebuyers and sellers emphasize square footage as a key factor in determining property value.
Renovation ROI Considerations: Renovations focusing on increased usable square footage yield higher returns.

Impact on Sales Strategies:

Marketing Emphasis on Square Footage: Real estate listings highlight square footage as a selling point.
Strategic Pricing Adjustments: Sellers adjust pricing strategies based on increased median sale price per square foot.
Educating Buyers on Value: Real estate agents educate buyers on the correlation between square footage and property values.
Highlighting Functional Spaces: Sellers strategically showcase the functionality of each square foot.

Adaptation of Floor Plans:

Builders adapt floor plans to align with the demand for increased square footage, incorporating open-concept layouts and flexible living spaces.
Negotiation Strategies: Both buyers and sellers adjust negotiation strategies based on the increased focus on square footage.

The 12.0% increase in the median sale price per square foot shifts how homes are valued and marketed. This trend encourages a nuanced approach to homebuying and selling, with heightened awareness of square footage’s impact on property value. Staying attuned to these changes is crucial for successful transactions.

In the dynamic realm of real estate, the square foot has become a guiding principle for maximizing property value. Staying attuned to trends, such as open-concept living and multipurpose rooms, is key to unlocking your home’s full potential. Collaborating with an expert real estate agent enhances understanding of how the increase in median sale price per square foot impacts overall home value in the current market.

Nov 06 No Comments

Renting Versus Buying a House in Savannah – Which one is Right for You?

Author: Tom Sharpe

Categories: Buying,Renting

Considering the hefty price to buy a home, most young people begin their adult lives by renting. As they build up a career, save money and start a family the idea of owning a home becomes more pressing. Mortgage rates though still remain too far out of reach for many young people. In the last 10 years, homeownership among those aged 35 and younger has declined by 18%. Coupled with the aftershocks of the great recession and historic levels of student loan debt the results are easy to understand.

Yet even if the finances are there to acquire a home, recent trends in some areas suggest that it may soon be cheaper to rent then buy in Savannah. In the end, whatever your final decision may be there’s a chance that it may not be a financial one.

Buying a House in Savannah

Buying a home can bring a lot of advantages and for the most part, it’s still cheaper, in the long run, to buy than rent but it calls for a large sum up-front and a few one-time costs. This can add up to a lot when everything is factored in.

Earnest money – a payment that ranges from 1% to 3% of a home’s value to show that you are serious about the purchase.
Down payment – a percentage of the homes price that is paid upfront. This ranges widely depending on credit profile, market conditions and type of mortgage loan and typically ranges from 3% to 20% of the purchase price.
Home appraisal – a price paid to ensure the homes price matches the homes values, usually between $300 and $500.
Home inspection – licensed home inspectors hired to find problems and defects that might not be apparent to the untrained eye. Usually, costs about the same as a home appraisal.
Property taxes – as homeowners need to pay property taxes upfront a buyer will need to compensate a seller for taxes paid from the closing date to the end of the current tax period.
Home insurance for the first year – you almost always need to pay the first years premium upfront. This cost varies widely based on location, your credit score and coverage limits.

In addition. There will also be recurring payments over the months and years ahead. This includes loan payments, property taxes, insurance, utility bills and maintenance. Not forgetting as well on-time costs like furnishings, moving costs and renovation projects.

Advantages of Buying a House

If you can cover all of these costs though you can soon reap the benefits and save more money in the long run then you would from renting. This includes building home equity, tax benefits and the potential for rental income.

Money aside, there’s also the personal benefits you gain from home ownership such as creative freedom to redo the house as you want and the chance to settle down and set some roots in the local community.

Renting a Home in Savannah

Renting won’t have as many upfront costs but there will still be a few to go through before you can move in.

Security deposit – made to insure against any damage to the property or broken leases, usually the price of one month.
First month’s rent – you’ll need to pay the first months rent upfront along with the security deposit.
Moving costs – same as homeowners, renters will still need to pay the costs of moving their furnishings and belongs to their new residence.

You’ll also have a few recurring costs that will need to be covered each month. This will include your monthly rent, renter’s insurance (optional but recommended), utility bills and possibly laundry if the rental unit does not come with its own laundry machines.

Advantages of Renting in Savannah

Renting a property will come with plenty of advantages if you’re not expecting to settle down and need the freedom to quickly move again if needed. You won’t be responsible for any maintenance or repairs such as burst pipes or malfunctioning air-conditioner units and you also won’t be influenced by changing prices in the real estate market. For people who don’t expect to stay in one place for more than 3 years or can’t afford the upfront cost for a purchase will be better choosing a rental.

Savannah Rental prices have remained quite stable in recent years while those for mortgages have risen. However, when everything is measured out the costs of owning a home in Savannah are still about 33.1% cheaper than a rental. If you can afford to put 20% of the purchasing price down and a 30-year fixed rate mortgage then it makes perfect sense to buy rather than rent. Ultimately, most people will base their final decision on whether or not they’re ready for homeownership. It comes with a lot of responsibilities and a strong commitment but if you feel you’re ready and can afford it then the soon the better.

Oct 26 No Comments

New Home Checklist

Author: Tom Sharpe

Categories: Buying

You’ve closed the sale, arranged transport with a moving company and are now ready to move into your new home. But before you settle in for your first night there are a few things you need to deal with. To make sure your new home will be safe and comfortable follow this checklist and you’ll have a much smoother beginning.

Change the locks

Being handed the keys to your home is the moment we all look forward to but they won’t be the same keys for long. One of the first things you should do is change all the locks or have them rekeyed. It’s impossible to know how many copies the previous owners might have given out to babysitters, friends or relatives. Ensure that your home is safe by having the locks changed so there’ll be no unexpected visitors.

Copy housing documents

Once you closed the sale you should make at least three copies of your housing documents. Store the originals in a fire-proof safe in your home, another with your financial institution and a third can be left with home insurance providers while they set up your coverage.

Personalize the mailbox and entrance way

Make your home your own by branding it. The previous owners may have had their name or just the housing number on the front door; personalize it with your own. The same can go for your mailbox which allows you to mark your territory better.

Schedule a deep-clean

If your home has a carpet, swimming pool or gym you should get a deep-clean before moving in. Contact professional service providers to perform a deep clean of your home, you should also consider hiring HVAC contractors to inspect your heating and air-conditioning systems.

Update your address

You’ll need to inform a lot of people about your change of address. This can include your boss, financial institution, insurance provider, loan company and any other businesses you frequently make payments to.

Visit the local schools

If you have children you’ll need to inform the local schools that you’ll be moving to the area. This will give them time to prepare any paperwork to allow for the transition.

Check or install smoke and CO2 detectors

If your new home doesn’t already have a smoke alarm and CO2 detector you should have them installed immediately. As many as 150 deaths from carbon monoxide poisoning are reported every year so make sure you have one installed that is working properly. Smoke detectors may seem obvious but you’d be surprised how many deaths a year result from faulty detectors or failure to check batteries.

Fire extinguishers

Again, this might seem obvious but it’s something many people overlook. There are many things you need to buy for a new home and fire extinguishers should be near the top of the list. Have one for every level of the home and make sure every member of the family knows where they are.

Be social

Lastly, don’t forget to be friendly and greet your new neighbors. A good impression from the start will make it far easier to settle into a new location. Call on your neighbors and ask about any social gatherings you can take part in. if they have any children ask about play dates or activities in the area.

Moving into a new home is an exciting time and by planning right you can make the transition smooth and effortless.

Sep 20 No Comments

3 Things to Avoid When Buying a New Home

Author: Tom Sharpe

Categories: Buying

Avoid these three things when buying a home

While buying a new home can be an exciting time in your life there are a few pitfalls to avoid if you want things to go smoothly. Many home buyers make the mistake of thinking everything will work fine if it’s a new home. Fact is, there’s no such thing as a perfect home.

Despite a builder hitting everything on their checklist, problems will always crop up. Problems can also arise from the buyer failing to ask the right questions. For instance, maybe you’re planning to have a child soon but only find out later that the water tank isn’t large enough to handle an extra person. Problems like these can be avoided if you approach things with the right mindset. In today’s article, we’re covering just that and what you should avoid when buying a new home.

Don’t buy if you expect to move again in the next few years

Everyone loves to feel like a homeowner but too often people let that desire dictate their purchase decisions. You may not like having to write your landlord a check every month while paying down zero equity. If though you expect you’ll be moving again in a few years it makes no sense to buy now.

If you’re unsure how long you’ll be in a location then it’s probably better to rent, equity or no equity. There’s no guarantee you’ll be able to sell or rent it in the future and with closing costs, property taxes, and a potentially depreciating asset you may end up paying more than the equity you’ve put down. Check your finances and take a while to decide before ever buying a property.

Not having an inspection done

You wouldn’t buy a car without first looking at the engine, likewise, you shouldn’t buy a house without taking a closer look at it. Things might seem fine to you but a professional inspector can spot hidden costs you can’t. Before deciding on anything, hire an independent housing inspector to do a review of the home and what potential costs could await in the future. They’ll have a better eye then you for spotting potential problems like water damage or termite infestations.

If a price seems too good to be true then that’s a sure sign that there are a few hidden costs involved. Renovations can run into the thousands of dollars and take years to finish so don’t skimp on hiring an independent inspector. They find problems most of the time and only cost, on average, about $300.

Not being open to negotiations

Purchasing a new home will be one of the most important decisions of your life but surprisingly many people are often averse to negotiating. They don’t like being confrontational or disagreeable and feel the price should be the price. However, negotiations don’t have to be hostel and failure to be open to them could mean losing out on a better deal.

When done professionally negotiations most always work in the buyer’s favour. Lenders and builders will expect some negotiating, it’s how the game works. If you walk in knowing what your budget and credit limit is you can position yourself better in negotiations, making the time spent preparing for negotiations worth every penny.

May 30 No Comments

Foreclosures down for 7th straight month

Author: Tom Sharpe

Categories: Buying,Foreclosure,Selling

NEW YORK (CNNMoney) — The number of foreclosure filings issued in April plunged 34% from a year ago — the seventh straight month of declines.

And there were just 69,532 homes repossessed last month, a 32% fall from the peak last September just before the eruption of the “robo-signing” scandal, in which banks were found to be mishandling the foreclosure process.

Will the seeming good news continue? No way, said Rick Sharga of RealtyTrac, which issued the latest monthly figures on Thursday.

Even with the drop, there were nearly 220,000 foreclosure filings during the month, including notices of default, scheduled auctions and bank repossessions.

And there are 3.7 million borrowers at least 90 days late on payments. Normally a large percentage of them would already be in foreclosure. They are not — for two reasons.

One is that ongoing regulatory issues. Banks want to make sure their procedures are all in place.

Second, the banks have already saturated many markets with repossessions they’ve put back on the market.(“Best shrinking places to live”)

“Banks can’t move inventory fast enough, at prices high enough, that they’re excited about foreclosing on any more homes,” said Sharga.

On the other hand, there are a couple of reasons to believe the conditions may be improving. Hiring has picked up, enabling some borrowers to resume paying their bills.

Banks are also doing more to keep borrowers in their homes. In March, banks completed 77,000 mortgage modifications without government assistance, according to Hope Now, a coalition of mortgage servicers, investors and private counselors. That was 26% more than in February.

“What’s important,” said Faith Schwartz, the head of Hope Now, “is that these modifications are much more affordable. They should perform much better.”

Home prices, however, continue to erode. That’s a problem because it pushes more borrowers “underwater,” with home loans worth more than the value of their homes. (“6 cities with falling home prices”)

That removes an important financial cushion should the borrower run into financial problems. And it given incentive to “strategically default,” or walk away from their homes and mortgage payments.

The percentage of underwater owners of single-family homes has now reached 28.4%, according to real estate web site Zillow. That will worsen if home prices fall further.

“Home value declines are currently equal to those we experienced during the darkest days of the housing recession,” said Zillow Chief Economist Stan Humphries. “That’s going to put more homeowners in default.”

Home prices have fallen so fast lately that Humphries changed his 2011 outlook, forecasting a 7% to 9% price drop for the year, up from 5% to 7%.

Just as falling home prices result in more foreclosures, rising foreclosures hurt home prices by swamping housing markets with repossessed homes.

Bottom line is that the crisis could last for years, according to Sharga. It could be 2014 before the housing market returns to a more normal condition.

Posts

Category: <span>Buying</span>

The Trend of the Square Foot: Maximizing Your Home’s Value

Renting Versus Buying a House in Savannah – Which one is Right for You?