Trading Homes Is Easy

Trading Homes Is Easy

One of the largest hurdles families face in the search for a new home is what to do about the home they are currently living in. We hope these next few blog post helps illustrate how trading a home can benefit a family.

The first of this series discusses the most common hurdles families face when seeking to move to a new home. The second part will discuss how a new home builder offering a Trade In Your Home program can help overcome these challenges. The third part will discuss how a trade program works.

The challenges of buying a new home while living in your old home

Two Mortgages

Some families will move into a new home then sell their old home. This option does allow for a family to move at their own pace without being rushed however they do have the financial burden of two homes.

These costs can include mortgage payments, taxes, insurance, utilities and upkeep. In addition to the costs you must also work to clean up the old house and take care of all those unfinished projects that must be completed before putting the home on the market. Once all of that is completed, the selling ritual of pictures, Realtors, showings, negotiations, offers and counter offers begins.

While all of this is in progress, your family is still placing demands on you to help get settled into your new home. Then all those other pesky little aspects of life keep eating up your time, work, school, children’s events, etc…

I have built custom homes for clients who have tried this and although it is convenient, I can attest that once you are about 99% moved out of the old house, the last 1% can be a drag. The work and time it takes to get the old house ready to sell WHILE you are trying to get your new home ready to live in can be stressful and it does take some of the joy/excitement from the move into a new home.

Two Moves

Other families resign themselves to selling their home first then moving into temporary housing (apartments, rent house, in-laws) and placing their belongings in storage until they can find a new home.

This method allows for a family to take their time in the search for a new home, however, the costs associated with a double move and storage of one’s personal items can add up. Often the temporary housing is smaller and less comfortable than living in true home.

We are also hearing from families that their children do become restless as they are not settled into a permanent environment. Once the families become restless the pressure to “just buy something” becomes intense and families may settle on a home or location that is not their first choice.

Sell & Search

The most common approach which we have witnessed is a family selling their home and then making a mad dash to find what they a new home once their home sells.

Often in the rush they have to settle for what homes are available in their budget. More often than not we find these families settling for a home and then spending tens of thousands of dollars to try to fix the home to get close to what they were hoping to find.

This rushed approach to finding a new home is always tempered by the stress and pressures of making sure the contract on their existing home settles up. We have heard stories of buyers who use the family’s contract on their new home as a tool to get greater concessions out of the family on the contract on their existing home.

Common Factor

The common factor in all of these scenarios is that the family is at the mercy of outside forces and either has to spend time and money to cover additional costs, put themselves under undo pressures, settle for a house that may not have been their first choice or all of the above.

The next part of this series will discuss how a builder offering a Trade In Your Home program can offer an easier less stressful path to your family’s new home.

Thank You

If you have a question on how to a trade program works, please feel free to email your questions to our offices. The Edinburgh Group is a full service building and land development firm serving the Upper East Tennessee Area. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at edinburghhomes@gmail.com or call our office at 423-366-0431. I also encourage you to visit www.edinburghcommunity.com to learn more about our homes,

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know a family or client who may be in need of our services, we welcome and honor your referrals.

Cost vs. Price - What higher Interest Rates can do to your purchase power.

Cost vs. Price  - What higher Interest Rates can do to your purchase power.

A good rule of thumb is for every 1% increase of interest rate there is a 10% decrease in 

purchase power. It's surprising to most buyers. This new year is going to bring many new opportunities to find a home. If you are still possibly considering a purchase you may want

to know this very important particular bit of information.

The higher interest rates go, the less home you and your family will be able to afford, finance 

or purchase. If you were looking at property in the $500,000 range and interest rates were at 

4.23% now they will eventually steadily be going up to 5.23%, meaning that if you wanted to 

keep your mortgage payment the same you would only be able to purchase a $450,000 home. 

Even with a 1/2% change in interest rate it can effect your purchase power greatly. I 

recommend getting back into finding a house as soon as possible to get the most house 

for your dollar, before interest rates go up and property prices stay the same.

Please see this example to show your buying power depending on what interest rate you 

lock your loan in at.

As a buyer it's vital to know your market and what options you have. I'm here to guide 

you through the process. If you have any questions email me: edinburghhomes@gmail.com 

or give me a call at 423-366-0431

No Excuse Not to Buy a Home Now

Could it be that some people waited too long to get a good deal on a home? Birmingham, Alabama REALTOR® Charita Cadenhead says ‘yes’ and shares her reasons why in a recent post.

“Potential homebuyers [have] chose[n] the absolute worst time to stall on buying a home. Interest rates are at an all time low, foreclosures are rampant, presenting an endless possibility of getting more house for their money, and more choices than they’ll ever have. And yet, they waited and waited and continue to wait. What they have done is ‘waited’ themselves out of an opportunity.

Now on the seller side (and we’re talking about traditonal, non-foreclosure sellers), a small window of opportunity has opened the door for owners of non-foreclosure properties to capitalize on the current processing freeze on foreclosure properties. Current sellers have been complaining about having to compete with foreclosures in their neighborhoods. Now that banks such as Bank of America have put a freeze on foreclosures (listed, processing and pending sales, etc.), a boatload of the competition has suddenly vanished.

That being said, what excuses do home sellers have now to wait?

• They have less competition in the market place
• More negotiating power in the interim
• The attention of more buyers who are now intimidated by foreclosures (they’re thinking that foreclosures may not be such a great deal after all)

While sellers may not get maximum dollar, if they play their cards right, they can certainly get more than they thought. This current real estate market is a market of opportunity and sometimes there’s only a small window of opportunity. Sellers can be like buyers have been and ‘wait’ themselves out of a golden opportunity. Or they can ‘get off the pot’, as they say, and take advantage of the best opportunity in the past two years.

Any seller that has been contemplating the sale of their home would be wise to jump not only at this window of opportunity, but through it. Sellers should learn a valuable lessons from the many potential buyers who missed their window of opportunity. Just for once in their lives, they need to take the leap of faith and be an opportunist.”

Click here to read more blog posts by Charita Cadenhead.

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If you are looking to buy are sell a house, please don't hesitate to give us a ring at 423-218-2008

Tips for Hiring Remodeling Contractor

Given the economic difficulties that still exist, it’s not surprising that many homeowners are looking to home improvement and renovation, rather than buying a new home.

When deciding to undertake a remodeling project, however, there are several invaluable tips to keep in mind as you discuss your home makeover with potential contractors.

Thanks to our network of leading real estate professionals, the Top 5 in Real Estate Network®, I, along with my team, can offer tips to make your home renovation a more streamlined, more palatable experience, courtesy of Stageoflife.com:

Tip #1: Does Your Contractor Have Proof of Insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this, stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use; those individuals should have active insurance cards faxed or mailed to you as well.

Tip #2: Did You Check References and See Photos?
Ask for at least three references — with two of them being for the same type of project you are planning — and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you’re planning a bathroom remodel, you may want to check out another contractor.

Tip #3: Does Your Contractor Take Debit or Credit Cards?
Besides your ability to earn a few points, bonus miles or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards. This doesn’t just apply to big contracting companies. Many small, one-man shops will take cards if they have a good relationship with their business bank or credit union.

Tip #4: Manners and Appearance?
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? If not, that’s a big warning. The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home after all.

Tip #5: Clean-Up Policy?
Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there for day two? The more mess in your home … the more it gets tracked around. Many homeowners find themselves with mouths gaping wide after the contractor has left for the day and their floors and home are dirty and messy around the project area.

Tip #6: Will the Contractor Put It In Writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not, walk away immediately. You’ll be surprised how many homeowners have been duped by contractors who verbally tell you what’s included in their scope of work, but will then, in the middle of everything, require extra money to finish the remodel, thus holding you hostage with an uncompleted home project.

Tip #7: Availability?
Can the contractor get the job done in your timeline rather than his? There’s nothing more frustrating than if a contractor tells you that a job will be done by a certain date and then it isn’t. On the flip side, if you can’t find a good contractor that’s willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.

Tip #8: Does Your Contractor Use “Subs?”
Does your contractor plan on doing everything himself? Or will he “sub out” work to the “trades?” For example, if you are remodeling a bathroom, you may need a plumber, electrician and carpenter. It’s okay if the contractor subs work out to these specific trades — it shows he wants the work done right.

Tip #9: Quoting & Billing Procedure?
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example, most contractors will charge you for a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? You should clarify that with your contractor upfront.

Also, what is the payment or billing policy? Is money required upfront? If so, go back to #1 and #2 above to make sure you have the contractor’s references checked and have a copy of his contractor’s insurance.

Tip #10: Did Your Contractor Get the Permits?
Ask your contractor to take care of the permits. Although permits cost you money, the inspection process is meant to protect you from poor workmanship and to make sure that everything is being built to code.

The Edinburgh Group has a list of Preferred Remodeler Partners list for all of our current and future homeowners. Please call Eric at 423-218-2008 or email EdinburghHomes@gmail.com