What it Costs to Move

When buying a home, it's easy to get caught up on a home's listing price and overlook some of the smaller expenses, such as closing costs and moving fees. Unfortunately, these charges can add up.

Moving Expenses. Moving is time consuming, exhausting work, which is reflected in the cost of packing, moving and storage services. The average move of household goods in 2012 cost $12,459, according to Worldwide ERC. Naturally, costs vary based on a number of factors. The primary factor that movers consider is distance. Other variables affecting price include the size of the home and the weight of the contents of the home. Make sure that the movers inspect your home prior to moving day and provide you with a weight estimate of your belongings. Calculate an estimate of your moving fees, here.

How to minimize moving expenses: The best way to keep moving costs low is to do as much of the packing and moving yourself. If you don't have access to a truck, consider renting a moving truck. U-Haul has trucks of all difference sizes that you can rent from one location and return at another. For a small extra fee, you can also rent protective mats to put furniture on. It's best to schedule ahead of time to ensure that the truck you need is available. If you are moving for work, you can request that your company cover relocation expenses, ideally before you accept the position or plans are finalized.

Sellers: Turn a "Looker" into a "Buyer"

The best incentive you (as a seller) can offer buyers is a fairly-priced home in great condition. However, there are more creative incentives that may make your listing stick out. Buyers need to be able to picture themselves living in the home you are selling. If you are selling a home or condo on the water, consider including a kayak, jet ski, or fishing equipment in the home's asking price. If your home in on or near a golf course, include a golf cart. These "bonuses" will help stimulate excitement among buyers.

If you are selling a home as a vacation home, consider leaving it furnished or providing a gift card for furniture. A buyer may not have enough furniture to fill a second home. Stocking your home with fresh linens, towels, and kitchenware is also a plus.

If your buyers are concerned about affordability, you can coax them into buying your home in a number of ways. Offer to pay some of their closing costs. If your home requires you to pay HOA fees, offer to pay the first year's worth of HOA fees for your buyer(s). The same goes for homes that are near community country clubs. You can offer to pay initial membership fees, and also monthly fees as you see fit. This will help buyers picture themselves living in your home, because it links them to their new community from the start. You can also offer to pay a year of property taxes and/or mortgage payments. Some sellers allocate money for buyers to use on repairs and rennovation, which helps when buyers are concerned about the condition of the home. 

It comes down to understanding your buyers--what are they looking for most? Some sellers leave behind appliances, televisions, and even cars!  No matter what you end up including in your final offer, be sure to communicate with your real estate agent about prospective buyer feedback, which can help you strategically list and market your home.

Need an agent? Contact me! I work with both buyers and sellers in Central Ohio. Read what my previous clients have to say, here.

How to Sell Your Home: Part 2

Read "How to Sell Your Home: Part 1"

So, you've received an offer on your home. What now? Your REALTOR can help you evaluate any offers you have. One concern is the buyer's ability to financially fulfill the contract terms. Your RELATOR can check for the pre-approval letter that should accompany an offer. Also consider the following points:

• How does it compare to asking price?
• Will your home appraise for the contract price?
• How large is the earnest money deposit?
• Have the buyers asked for assistance with closing costs or for you to make repairs or provide home improvement credit?
• Is the requested settlement date appropriate?

If you're not satisfied, you can reject the offer or draft a counteroffer than lists different terms. Be prepared to compromise to some extent. Keep in mind that buyers will likely conduct home inspections,  and be prepared to addess any resulting concerns. Before you close, you'll also want to get your home appraised, if you have not done so already. The buyer and seller must agree on a settlement day. Sellers can enter into a "rent-back"agreement with the buyer if they wish to continue to live in the home after the settlement date by paying rent to the buyer. Finally, title to the home is transferred at closing. Payment is closely examined and distributed by the closing agent and the buyer provides funds to buy the home. For more information on what the seller must pay upon closing, click here. 

Now you can go home, open a bottle of champaign, and cheers to the next page in your life. Oh, and you should probably get packing!!

To Rent or Buy? 5 Questions to Guide Your Decision

Torn between buying and renting? Consider these five questions, inspired by a CNN news article, to help guide your decision:

How long do you plan to stay?

If you are not planning on keeping you home for five to seven years or more, transactional costs associated with home buying and selling, such as commissions and closing costs, may not be worth it. 

Do you have enough cash to cover closing costs?

Banks typically don’t lend more than 80% of the cost of the home. Buyers have to come up with a 20% down payment, on top of closing costs. Take 20% of the home you are considering purchasing—can you afford a down payment of that amount?

Can you cover additional homeownership costs? There are many expenses, aside from the mortgage, associated with homeownership, such as property taxes, insurance, heat, utilities and regular maintenance. When you rent, you often forgo some of these financial responsibilities. 

Can you claim the tax advantages of homeownership? Yes, mortgage payments are deductible and can reduce tax bills. However, this benefits high-income earners with significant mortgage payments. Many borrowers claim the standard deduction on their taxes and save nothing from the deduction.

Do you have a stable job? This determines whether you can expect to be able to afford the above expenses! If your employment situation is unsteady, it’s probably not a great idea to assume the responsibility of homeownership until more stable ground is reached. 

The New York Times has created a calculator that allows you to enter personal information such as monthly rent, home price, down payment, mortgage rate, and annual property taxes to determine how long you would have to live in a home so that buying would be more cost-efficient than renting.