Benefits of Retirees Selling Their House
The pandemic is hurrying this trend along: many retirees who have been cooped up in lock down may be looking to move to a warm-weather climate with plenty of safer outdoor space. This may be the perfect time to start a new life in a better place, and there are added benefits to the life change. Here are just a few: Enjoy a nice cushion of funds. It’s not uncommon for many people to begin their retirement with a shortage of savings. For those who own their house outright — or at least have a lot of equity in the property — a strong housing market could produce a surplus of funds for living, while finding a lower-cost new place to live. Allow for a tax break. Because of the Home Sale Exclusion, unmarried people can exclude up to $250,000 in profit from the sale of their main home. If you’re married, you can exclude $500,000. Note that you have to have lived in your home for two out of the five years from the date of sale. Other rules apply — be sure to check them out. Reduce annual property taxes Nobody wants to spend their retirement fund on expensive property taxes. Some property taxes are the same or even greater than a mortgage payment. Finding a new home in a new market may come with a greatly reduced property tax burden. Some markets — like Nevada and Florida — have no income tax. This makes the market particularly attractive, especially to retirees who plan to work part time or start a passion business. Reduce or eliminate maintenance. Older people may not want to be bothered with the usual maintenance tasks that they have had to do for years in their current home. It may be time for a condominium or rental that leaves the heavy lifting (and lawn mowing, and snow shoveling) to a maintenance team. Eliminate the challenge of stairs. Stairs can create a challenge for many retirees, and can affect the simple task of getting around. A ranch-style home, condo or garden apartment may eliminate the need for climbing stairs and make getting around much easier. Live in a higher-tech house. The idea that older people can’t handle new technology is nonsense. Retirees may love to start a new life in a new home that offers the most current features of good living. Perks could include smart refrigerators and lighting, laser projectors for watching movies, and bluetooth speakers throughout the home. Note: before you make any huge decisions like selling your current home, be sure to consult a professional Realtor for advice and navigation. Matt Scannapieco can prepare a CMA for you (a comparative market analysis) which compares your property with other homes in your neighborhood that have sold within the last 180 days or are currently listed. This gives you the best idea of what your home is worth, and may keep you from agreeing to a sale that is far below your home’s actual value. Bottom line: Not every retiree has the same idea of the perfect home, but common benefits like lower taxes and expenses, more income, easier ways to get around, and amazing modern technology could be a shared goal for starting a new life in a new place. Better late than never! – Karl Kennedy
9 Questions to Ask a Realtor When Shopping for a Home
Whether you are buying a home or renting one, there are important facts to know about the property before settlement. Asking the necessary questions arms you with the needed information about the house, which helps you to make the best for your family. 1. What Is The Home Condition? Before moving past inspection contingencies, ask for the estimates for the repairs – assumptions can be costly. You should know the home condition which includes the state of the components in the house, such as HVAC, roofing, electric service, chimneys and more. Knowing the necessary repairs to be made will help you make a fair offer and prevent loss on your side. 2. Why Is The Owner Selling? Try to find out why the owner is selling before making a decision you can’t easily turn away from. While most sell due to outside circumstances, some might be selling because of certain faults with the home. Safe reasons for selling include: relocation for a job, moving closer to family and friends, desire to move into a bigger house, neighborhood, school, etc. 3. What Are The Schools Like? The quality of schools near your potential home should be put into consideration if you already have or plan to have kids. The proximity of the school to the home and the quality of the schools’ academics are key. Even if there is no kid in the picture, houses located around good schools usually sell for a higher price. 4. What Is The Probability Of Natural Disasters? While natural disasters are not planned, some environments are more prone to natural disasters than others. Ask for the risk of common disasters like hurricanes, tornadoes, floods, severe weather conditions, wildfires, storms, etc. Knowing this fact helps you to be prepared for eventualities if you decide to get the property. 5. What Materials Are The Walls Made Of? The durability, low-cost maintenance, and energy-efficiency of a house are dependent on the material the house is made of. It is important to note that concrete block homes are the best for long term usage. When a house is made of concrete block, it creates a secure, healthy, and comfortable environment for living. 6. Condition Of The Roof Changing the roof of a house incurs huge expenses, so the roof of any property you want to buy should be in a good and durable condition. Roof style differs in beauty, durability, stamina, repair cost, etc. Decide on which one is best for your home. 7. How Long Has The Home Been On The Market? Knowing how long the house has been put up for sale will give some insights to faults in the house, neighborhood, or the seller’s asking price. These insights will make for easier negotiation. 8. What Are The Property Tax And Utility Bills? You should ask for the previous bills of the last inhabitants of the house. Asking for the property tax and utility bills will help you figure out if you can afford the house and the mortgage. 9. What Are The Major Reservations You Have About The Property? A realtor’s experience allows them to give advice about the property and future potential of the home. Take due advantage of their expertise and experience. Before settling for a property, double-check all the facts you are provided with and do not make any decision under duress. Ensure the necessary documents are signed and protocols followed. Hire the best realtor you can afford and trust (like Matt Scannapieco) All questions will be answered in very explicit words that are devoid of any ambiguity. Matt Lee is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value. – Matt Lee
Front-Line Worker Partnership
In response to the ongoing coronavirus pandemic, Franklin Investment Realty has outlined a partnership with front-line workers to assist making their real estate goals possible. We are offering a one time $1,000 settlement credit to both buyers and sellers indefinitely if you register with us before the end of May 2020. You can register below or at the following link: Front-Line Worker Registration. This partnership is designed to give back to all the front-line workers who have worked tirelessly throughout these unprecedented times not just with coronavirus but addressing all concerns. The front-line work force is very close to home having many family members and close friends working diligently during this pandemic. We want to honor all their hard work and consistent efforts far beyond the COVID-19 pandemic. Franklin Investment Realty will make your real estate goals possible. We have experience working with buyers, sellers, and investors throughout Bucks, Montgomery, and Philadelphia counties. Through the collaborative effort of our government, front-line workers, businesses and individuals, we look forward to putting an end to the coronavirus pandemic! – Matt Scannapieco
COVID-19 Resources
Wondering how to buy and sell real estate while being quarantined in your home or apartment? The real estate industry is very adaptable and has rapidly adjusted to current circumstances. Virtual tours and walkthrough videos have become a necessity in a time with limited ability to get out of the house. DocuSign and other e-signature platforms have become imperative to keep in touch with clients and move transactions forward. Our agents are still available remotely and have the resources necessary to get your home sold or help find your dream home! For other businesses affected by the slowdown due to the coronavirus outbreak, there are programs and options available to help mitigate losses. You can find information about forgivable loans and the paycheck protection program at the respective links. For current homeowners who are impacted – many lenders are offering a variety of options to help with mortgage payments. If you are in need, contact your lender and see what options are available to you. You can visit the CDC website for general information about the virus and be more informed about warning signs and symptoms. The more accurate information we have about this virus the better we can react and take steps toward improvement. Franklin Investment Realty is here to support the community and serve while ensuring the health and safety of our clients and other real estate professionals. Stay safe and healthy – hopefully this outbreak subsides soon! – Matt Scannapieco
Volatile Stock Market and Interest Rates
The stock market took another hit after the Fed cut interest rates by half a point. Mortgage rates are already nearing all-time lows, but appear poised to continue to decline after the Fed’s emergency intervention. Low mortgage rates increase Buyer spending power due to decreased mortgage payments. Buyers can now afford to buy more house and pay the same amount monthly, just in time for the spring market. For current homeowners – it would be wise to review your current mortgage interest rate and evaluate the potential savings of refinancing. Rates have not been this low since the housing market crash in 2008. – Matt Scannapieco