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Home » Buyers

How Much Home Can I Afford?

February 23, 2021 by Karen Baker Leave a Comment

If you’re considering purchasing a home, then you may be wondering what exactly you can afford when it comes to a purchase price or monthly mortgage. While there are many different tips and ways you can calculate what an “affordable” payment or purchase may be, ultimately, always remember that you have to be comfortable regardless of what purchase amount you may be approved for.

Related: Two Things you Can’t See in a Virtual Tour

It isn’t uncommon for buyers to choose to only purchase homes that are below their pre-approval amounts. For example, if you are approved for $400,000 but your personal budgets would be better and more comfortable with a purchase price of $350,000, then it is always recommended to stay within that price range, regardless of being approved for something more expensive.

afford mortgageWhen it comes to breaking down your purchase price and monthly payments, you can follow a few different tips, however, try using the following calculation as a basic rule of thumb. It is highly recommended that you try to keep your monthly mortgage at or below 30% of your gross income. Here is an example

Your Annual Gross Income = $80,000

30% of your income = $24,000

This means that your TOTAL monthly mortgage payment would have to be at or below $2,000, this would include principal, interest, PMI if applicable, taxes, homeowners, and any HOA dues.

Related: House Broke: The Common First Time Buyer Mistake

Many financial advisors say that you can generally afford a home that is two to three times your gross income which would mean that in the above scenario of an annual income of $80,000, you could afford a purchase price on a home of up to $240,000 and still follow the 30% gross income guideline.

While many people do believe that this budgeting scenario is an older practice and is living well within your means, it is ultimately up to you to decide what you are comfortable spending on your monthly mortgage. While your lender will help you look at other monthly debts and incomes to establish a pre-approval amount, it is important to always factor in your revolving debt, potential mortgage amount and remember that you should add in a budget for necessities such as groceries and gas when determining your home budget.

It is easy to get overzealous when buying a home and shoot for the stars, however by doing so you may find yourself in a tough spot later down the line financially. Once you have established a realistic budget, make sure to convey those numbers to your realtor so that they can ensure you only view homes that fall into the budget you have set.

If you’re currently searching for a new home, are ready to sell your home and would like to work with a qualified seller’s agent, or if you have any questions regarding Carolina Real Estate, please feel free to contact our office at any time.

 

Additional Tips for Buyers

  • Two things You Can’t see in a Virtual Tour
  • Carport, Detached, or Attached Garage?
  • Should we Buy or Rent?
  • Why Was my Offer Rejected?
  • 5 Unique Ways to Use a Detached Garage

Filed Under: Buyers

Buying a Vacation Home

February 8, 2021 by Karen Baker Leave a Comment

vacation homeBuying a vacation home is one of the most exciting purchases you may ever make. Imagining the memories and laughs that will be had can make many buyer’s giddy as they begin their search. As with all Real Estate purchases you want to make sure that you work closely with a qualified Realtor® and discuss your wants and needs in depth to ensure you view homes that will best fit your expectations. Unlike a primary residence, there are a few features you may want to ensure your vacation home has.

Related: Two Things you Can’t see in a Virtual Tour

In addition to the location and finishes, each vacation home should always be stocked with board games, puzzles and enough dishes to serve family and friends allowing for your vacation home to be the perfect place to enjoy the company of those closest to you. In addition, these 5 things are crucial when purchasing a vacation home and while they may be important in a primary residence as well, they are key to enjoying your new home away from home to its fullest.

Bedrooms

Buying a vacation home that doesn’t provide enough bedrooms is one of the biggest mistakes you can make. Extra rooms are crucial in being able to invite friends or family to enjoy a vacation, and thus you want to ensure that you will have enough space to do so.

Outdoor Entertainment

Whether an outdoor dining area complete with an outdoor kitchen or BBQ station, corn hole, horseshoes, or even an outdoor projector system for movies, outdoor entertainment is quite simply one of the best arts of a great vacation home.

Open Floorplan

You don’t want to get claustrophobic or feel cramped when on vacation, and this is no different when it comes to your home. An open floor plan is key in allowing enough space for you to comfortably move around and entertain guests.

Related: Pros and Cons of a Gated Community

Large Kitchen

We all know the kitchen is the heart of the home, and thus it should be large enough to house the majority of the people you are vacationing with. Whether this is with a large bar top with plenty of seating, or a floor plan that allows the kitchen to flow into a seating area, room to congregate within and near the kitchen is ideal.

Ample Storage

Vacation homes require a lot more storage than people expect. From suitcases to board games, dishes, as well as seasonal toys such as sand toys, snorkel gear, kayaks, etc. there is a lot of stuff that will need to have to have a place to call home.

When making your list of wants and must have’s it is important to keep these few items in mind to ensure that you can enjoy your new home for years to come whether as a small intimate getaway or a large family gathering.

If you’re currently searching for a new home, whether a primary residence or vacation home, are ready to sell your home or have any questions regarding Carolina Real Estate, please feel free to contact our office at any time.

Additional Tips for Buyers

  • Two things You Can’t see in a Virtual Tour
  • Carport, Detached, or Attached Garage?
  • Should we Buy or Rent?
  • Why Was my Offer Rejected?
  • 5 Unique Ways to Use a Detached Garage

Filed Under: Buyers

Two Things You Can’t see in a Virtual Tour

January 25, 2021 by Karen Baker Leave a Comment

virtual toursFor a long time, virtual tours were the number one tool used to market and sell homes online. With limited in person touring, virtual tours became an easy way for buyers to feel as if they still got to view homes prior to placing an offer. While this is all true, there are a few things that you are unable to see in a virtual tour, and oftentimes these can be deal breakers for buyers. Whether you are relying on a virtual tour as your only touring options before placing an offer, or if you’re simply putting together a list of homes you wish to see in person, keep these few things in mind as you tour homes virtually.

Related: House Broke: The Common First Time Buyers Mistake

#1 Neighborhood

It is no secret that a good home can instantaneously be ruined by a bad neighborhood. This is one of the biggest traps you can fall into when touring a home virtually. While the home may look great, the neighborhood could be far less than appealing. If you are uncomfortable with in-person tours, try to plan some time to drive through the neighborhoods of any potential homes prior to placing an offer. This will help you get a feel for the neighborhood you could potentially call home.

#2 Smells

Your senses work for you when touring homes, even if you don’t realize it. Oftentimes as you walk through the front door of an open house, you’re greeted by the smell of fresh baked cookies, unfortunately when taking a virtual tour, you don’t have those pleasantries to greet you. Even worse, you can’t identify any unsettling smells as you walk through the home. From mold and mildew, the smell of pets, a home gym that smells like a locker room, you name it, you aren’t aware of what smells could be lingering. To avoid this from becoming a potential problem, you can choose to schedule an in-person tour after you’ve toured virtually, or even ask your agent to do a quick walk through for you to ensure everything is as it seems.  

Related: Pros and Cons of a Gated Community

While the list of positives when touring a home virtually can definitely outweigh the negatives, it is important to try to keep your eyes open and be aware of things that you may not be able to see through the screen. Work closely with your agent and be sure to discuss any and all of your concerns thoroughly prior to placing to an offer.

If you’re currently searching for a new home, are ready to work with a qualified agent to list and market your home, or if you have any questions regarding Carolina Real Estate, please feel free to contact our office at any time.

 

Schedule a Consultation

Additional Tips for Buyers

  • How to Sell a Beach Home FAST
  • Carport, Detached, or Attached Garage?
  • Should we Buy or Rent?
  • Why Was my Offer Rejected?
  • 5 Unique Ways to Use a Detached Garage

Filed Under: Buyers

House Broke: The Common First Time Buyer Mistake

January 19, 2021 by Karen Baker Leave a Comment

You may have heard the term “house broke” before. Being House Broke is simply when you purchase a home that is more than you can afford and thus, you end up only being able to pay your mortgage and have no additional finances to help cover any extras. These extras could be necessities such as gas or groceries or even vacation funds or fun money which limits the activities that you and or your family are able to do. 

house brokeIt is always exciting when you receive your pre qualifications from a lender and oftentimes you will see the number you qualify for and instantly start seeking homes within that price range; however, this is generally a dangerous move and oftentimes can result in being House Broke. Mortgage approvals do factor in specific debts; however, their calculations often don’t allow for the needed funds that most people rely on for day to day living, not to mention “fun” money. 

Related: Should We Buy or Rent?

Because of this, many homeowners are left with a mortgage that they are unable to afford and unfortunately often regret their home purchase, a feeling nobody wants to experience, and sadly one that is generally felt by primarily first-time home buyers. Prior to searching for a home, it is important to discuss your finances in depth to get a more accurate look at what you can and can’t afford. 

If numbers aren’t your strong suit, try setting up an appointment with a financial advisor, a family member or someone that can give you some advice on your upcoming home purchase. Real estate is an expensive and a huge investment and it should be treated as such. As a general rule of thumb, it is always recommended that you only search for homes that are a minimum of 10% less than your preapproval amount as this allows for a little wiggle room. 

For example, if you are approved for a home loan of $450,000, instead of viewing homes within the $450,000 price range, try viewing homes that have a maximum list price of $405,000. While this doesn’t work for everyone, in general, it allows for enough wiggle room to either help with closing costs, repairs, home maintenance or day to day living. 

Related: Pros and Cons of a Gated Community

As with all home purchases, it is vital that you work closely with your realtor to ensure that you are viewing homes that not only meet the criteria you are looking for in a home, but to also make sure that you are staying within the price range that you are comfortable with and not just the number you have been approved for. You will be the one paying the mortgage and thus you are the one who needs to set the guidelines for your budget and stick to them. 

If you are currently searching for a new home, have questions regarding Carolina Real Estate, or are seeking the assistance of a qualified seller’s agent to list and market your home, please feel free to contact our office at any time. 

 

Schedule a Consultation

Additional Tips for Buyers

  • How to Sell a Beach Home FAST
  • Carport, Detached, or Attached Garage?
  • Should we Buy or Rent?
  • Why Was my Offer Rejected?
  • 5 Unique Ways to Use a Detached Garage

Filed Under: Buyers

Carport, Detached, or Attached Garage?

January 12, 2021 by Karen Baker Leave a Comment

garageShould you buy a house with a Carport, an attached garage or a detached garage? This is tough decision for many buyers when it comes to purchasing Real Estate. The reason there are so many different styles of parking even in today’s market is because every buyer has their own preferences in regard to parking. Here are a few of the best attributes when it comes to a carport, attached garage and detached garages.

Carport

Carports are open and airy which limits the potential for mildew, another bonus with a carport is that because there are no mechanical pieces such as a motor or spring much like a garage which in turn means that the maintenance on a carport is much less than other options. As the most affordable option, a carport provides protection from the elements whether it be sun fading, or hail, as well as provides a place to stay dry while loading or unloading the vehicle.

Related: Pros and Cons of a Gated Community

Attached Garage

Perfect for those who want to be able to go from the house to the car without exposing themselves to the elements. Whether it be taking in groceries without worrying about the rain, or simply not wanting to throw on a pair of shoes to run to the car to grab something, this is a huge positive with an attached garage. Attached garages also provide a great sense of security in that you are able to lock your vehicle indoors, limiting exposure to both the elements as well as potential theft.

Detached Garage

A detached garage is great for those who want to keep their vehicles out of the elements but don’t like the aesthetic of an attached garage, also known as a “garage home.” Additionally, detached garages make a great conversion space and can double as a home gym, office space, and in some cases even a rentable space.

Related: Should we Buy or Rent?

All options provide their own assets, and while there isn’t necessarily a wrong choice when choosing between the three, you have to decide whether a carport, attached garage or detached garage will fit your personal preferences. It is helpful to decide which feature you prefer prior to house hunting as this will help limit the homes that you see and tour to ensure you are only viewing homes that fall within your desired criteria.

If you’re currently searching for a new home, are ready to work with a qualified agent to list and market your property, or if you have any questions regarding Carolina Real Estate, please feel free to contact our officeat any time

Schedule a Consultation

Additional Tips for Buyers

  • How to Sell a Beach Home FAST
  • When to do Certain Upgrades
  • This One Thing Might Decrease Your Home’s Value
  • Why Was my Offer Rejected?
  • 5 Unique Ways to Use a Detached Garage

 

Filed Under: Buyers

Short Sale and Foreclosure, What’s the Difference?

December 30, 2020 by Karen Baker Leave a Comment

You may be seeing the terms Short Sale and Foreclosure being tossed around in the Real Estate World, and while most American’s have a rough idea of what the two mean, there are a few very distinct differences between the two. While in both cases the owner of the property has for one reason or another, lost the ability to pay for and tend to their home, the way they go about forfeiting and potentially selling their property via a Short Sale or Foreclosure are quite different.

Related: Do I Have to Accept the Highest Offer?

Short Sale

A Short Sale is only allowed when the homeowner communicates with their lender regarding their inability to pay their current mortgage/loan. In a Short Sale the lender gives the homeowner/borrower approval to list the property and cease payments. All sale negotiations and approvals are dealt between the buyer and the lender, and not the real estate agent and the homeowner. Short Sales are often referred to as “pre foreclosure” as it is the lenders way of trying to recoup some of the balance they are owned from the homeowner. Once the homeowner has discussed the Short Sale with the lender, they can also request additional time in the home if needed, this allows the homeowner to live mortgage free while they try to get their affairs in order.

Foreclosure

A Foreclosure is involuntary and not something that is not communicated between the homeowner and the lender. In a Foreclosure, the owner of the home will simply stop making their mortgage payments without communicating with their lender. The Foreclosure process will not begin until you are 120 days past your first missed payment. After the first 120 days, you may be evicted and asked to the leave the property, owing the outstanding balance.

Related: Why Was my Offer Rejected?

In conclusion, with both a Short Sale and a Foreclosure you as the owner are essentially losing your home. The main difference is if you are doing so with the lenders approval or if you are simply falling behind on payments and beginning the foreclosure process. In both cases, the homeowners will often remain in the home throughout phases of the selling processes, living essentially mortgage free which can contribute to the poor care of the home and often require more elbow grease, cleaning and upgrades upon selling.

If you’re currently searching for a new home, whether it be a Short Sale, Foreclosure or traditional listing, are ready to list your property, or have any questions regarding Carolina Real Estate, please feel free to contact our office at any time.

Schedule a Consultation

Additional Tips for Buyers

  • How to Sell a Beach Home FAST
  • When to do Certain Upgrades
  • This One Thing Might Decrease Your Home’s Value
  • Why Was my Offer Rejected?
  • 10 Tips for Moving Across the Country
  • Is it Still Affordable to Buy Right Now?

Filed Under: Buyers

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What our clients say

Ken and Linda Foltz

“Life will lead you to where you belong. Five years ago life led me to meeting Karen Baker at an...
Sunset Beach and Beyond Realty
2015-03-16T20:16:32+00:00
“Life will lead you to where you belong. Five years ago life led me to meeting Karen Baker at an Open House. Our relationship continues as Karen and her husband Frank have been outstanding not only in helping my husband and I find the right retirement relocation home, but we have watched their commitment in helping many others find their homes. She and Frank treat every client as if they are the only ones that exist. They provide thorough research of areas and homes of interest and present you with the options. They are not your typical hard sell, must-buy-now realtors. They are here to help you find your next home?. You won’t go wrong with the Bakers!
https://sunsetbeachandbeyond.com/testimonials/ken-and-linda-foltz/

Steve & Jean DeVito

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to...
Sunset Beach and Beyond Realty
2015-03-16T20:17:46+00:00
“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to Sunset Beach they created a portal and populated it with properties that met our ever-evolving criteria. By time we arrived we had a good feel for what we could afford and what was available that met our criteria. The Bakers, especially Karen, were able to make sense of what we thought we were looking for and eventually matched us with a house that we ended up purchasing — Karen called it the “This is it” house and she was right. We are loving our 2nd home and appreciate how painless Karen and Frank made the process. All the paperwork was done seamlessly and quickly and the closing went off without a hitch. The Bakers do not believe in the hard sell — they gave us the knowledge we needed and the guidance we needed to make our dream a reality.”
https://sunsetbeachandbeyond.com/testimonials/steve-jean-devito/

Matt & Amy Carver

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best...
Sunset Beach and Beyond Realty
2015-03-16T20:18:22+00:00
Amy and I have bought and sold four properties in the past twelve years. Both of you are the best realtors we have ever dealt with. Amy and I both felt we could trust you to look out for our interest. The level of service you provided was outstanding, from taking the trash out, helping the buyer with inspecting the irrigation system, dealing with our tenants, always being there if we needed to ask a question, providing constant updates on the market and always keeping us informed on the sale of our house. I think your next venture should be training other realtors, because both of you have mastered the art of providing excellent service. I will be sure to recommend the Frank and Karen team to anybody looking for a trust worthy, knowledgeable and top performing realtor. It was a pleasure working with both of you.”
https://sunsetbeachandbeyond.com/testimonials/matt-amy-carver/

Ernie & Carol G.

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When...
Sunset Beach and Beyond Realty
2015-03-16T20:18:50+00:00
“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When we made up our minds which one we wanted, they got us the best deal on it. We were very satisfided with them. After the purchased was made & we moved in, they were still there to answer any questions or problems that we might of had. Like I said, they are the BEST.”
https://sunsetbeachandbeyond.com/testimonials/ernie-carol-g/

Dave & Rose

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”
Sunset Beach and Beyond Realty
2015-03-16T20:19:23+00:00
“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”
https://sunsetbeachandbeyond.com/testimonials/dave-rose/
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  • How Much Home Can I Afford?
  • Spring Cleaning
  • Buying a Vacation Home
  • Dangers of Laminate Flooring
  • Two Things You Can’t see in a Virtual Tour

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