Tag: home value

How to Prevent Buyer’s Remorse

Forty-four percent of homebuyers end up regretting their purchase, according to a recent study by Trulia, a residential real estate website. The biggest regret? Not buying a larger home. If you’re entering into the home-buying process, you may be tempted to settle for less, especially if your budget doesn’t allow for a larger place. But keep these considerations in mind so you can prevent buyer’s remorse:

What should I consider when buying a house?

Don’t go into the buying process without doing some research and making a wish list. On average, Americans have been staying in their homes for 13 years, according to the National Association of Home Builders.

With that in mind, think about what you might be doing over the next 13 years: Will your family grow? Will you need space for an office? Will you need a larger yard for your children to play in? Will your kids be going off to college? Will you be retiring and needing less space? Will you need a one-floor setup for easy accessibility?

Your home is a long-term investment, so don’t just think about what you need now. Buy your home with the future in mind.

How much will my home appreciate?

When you find a home you love that meets your current and future needs, the next step is to calculate its appreciation over the next decade or so. You want a home that’s going to build your net worth, not depreciate over time.

Not sure how to predict whether a home will appreciate? First, consider its location. Choose a home that’s in a growing community and has a reputable school district. Second, consider the house itself and the property it’s on. Is the land desirable and without major issues? Does the house have sound structure (roof, walls, foundation)? Fixer-uppers can actually appreciate more than newly constructed homes if you’re up for the task of renovating, providing they don’t become a money pit in the process.

Did I get the best home loan?

When you buy a home, there are several types of home loans that you can consider.  If you have a large down payment over 20%, you may have selected a Conventional Mortgage to avoid PMI. Conventional loans typically have the lowest overall payment if you have higher credit scores and a large down payment. If you purchased using FHA financing, you may want to consider refinancing in the future to drop the Mortgage Insurance. Most FHA loans do not automatically drop this extra insurance premium.

Another consideration would be to confirm that you picked the best rate and cost combination for your home ownership goals.  Many lenders allow you to pay discount points to get a lower than market interest rate. If you consider this your “forever home”, then having a lower rate may save you a significant amount of interest over the term of your loan. Conversely, if you plan on selling your home within a few years you may want to select a loan option with the lowest amount of closing costs so you save money immediately on your purchase. Selecting the wrong home loan may cost you thousands and leave you regretting the extra costs.

See our Mortgage Amortization Calculator to estimate interest paid over the life of your loan.

How much will it cost to sell my house?

In looking toward the future, consider how much it will cost to sell your house. You may need to make repairs and upgrades to make your home more desirable. You’ll also need to pay your realtor commission (unless you’re selling by owner), which is usually 5% or 6% of the home price, and closing costs if the buyer doesn’t foot the bill (especially in a buyer’s market). As long as you plan ahead with these costs in mind, you won’t be surprised when it comes time to sell. If you buy a better house at the start, you may save a lot in the end.

Learn about our Home Renovation Loans to increase the value of your home.

For more information on how you can choose the best home for your needs, contact Riverbank Finance at (800) 555-2098 to schedule a meeting with one of our mortgage professionals.

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Quick Home Improvement Tips

Home improvement tips to sell your home for more.If you’re looking to do some home improvements that won’t blow your budget, there are many low cost and easy remodeling tips to try.

Before starting on any projects, ask yourself why you want to remodel. Do you plan on living in your home for several more years or are you looking to increase the value and sell it for a higher price?

If you plan on renovating your home to increase the value, then it’s a really good idea to first do some planning. The reason is that you don’t want to put more value into the home than the average value of all the homes in your neighborhood. By doing this, you risk losing a lot of money. For example, if you renovated your home and it’s new value is at $400,000 but the homes in your neighborhood are only valued at $150,000 then chances are you won’t be able to sell your home for anywhere close to it’s value.

Of course, if you are able to do improvements inexpensively and at the same time adding significant value, then that would be a great thing to do.

There are several easy projects you can do yourself that are inexpensive to give your home a new feel:

  1. Clean your house. Clean every nook and cranny for a cheap way to improve the feel of your home.
  2. Get rid of clutter. Clean out every room and closest to give your home a more spacious feeling. It will make your life much easier and happier too! You could even have a yard sale to make some extra money too!
  3. Paint. Fresh coat of paint inside and/or out will surely spruce up your home!
  4. Add some greenery. Adding some nice potted plants on your porch can really make your home come alive.
  5. Clean the carpets. Simply shampooing the carpets and rugs can make them look brand new again. You can either do them yourself or hire a carpet cleaning machine.
  6. Use an air freshener
  7. Decorate the walls. No need to spend tons of money on expensive prints. Instead display some of your favorite pictures in frames you find at discount stores. Or add a personal touch to the frames if you’re feeling creative.
  8. Throw pillows. Use some throw pillows to add new colors to the room.

The ideas can be endless just by adding a little creativity and imagination.

Home Prices to Rise in 2012

Higher Home ValuesSome more great news has just been released in regards to the housing market. No longer are the days of dark clouds looming overhead. We now have a clear-cut indication that things are improving (all be it slowly, but still improving). Overall home values are expected to begin rising as early as the end of 2012 and the total amounts are bit higher than most had expected to hear about.

Financial analytics company, Fiserv, recently released their findings on the housing market and the direction it’s headed.  They found that homes will gain an average of 4% value each year, for the next coming five years. Meaning your home is expected to rise a total of 20% in value over five years. Some great news for homeowners as many people have been shied away from selling their homes all because of the low values of today’s market.

Find how much your home is worth by using our valuation tool Michigan Home Value Estimator.

Further numbers showed that the short-term forecast doesn’t look amazing as home values for 2012 are expected to drop 0.8% from where they were last year. This means we have not yet reached rock bottom home prices just yet. Once we get closer to 2013 however, we should start to see the trend of lower home values finally reverse.

This does come across as a double-edged sword though. As home values begin to rise and sellers begin to feel more comfortable in putting their homes on the market, more buyers will begin to become discouraged by the rising prices. It’s quite obvious that the housing market will remain a buyer’s market for a couple years yet to come.

So to those of you looking to purchase a home before prices rise, now may be your last chance!  With the combination of historically low mortgage rates and rock bottom home values, now it the most affordable time to buy a home in Michigan. To get pre-approved to start shopping for a home contact Riverbank Finance before you the lowest home affordability in history. You can call a licensed loan officer at 1-800-555-2098 or complete the form below.

Buy a Michigan Home before Prices Rise

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