Blog - Page 3 of 5 - Lee County Association of REALTORS®

In the News: Expansion of the AHFA’s Mortgage Savings Program

Posted on August 21, 2023

The Alabama Housing Finance Authority has officially opened its Mortgage Credit Certificate program to more home buyers! This expansion of the AHFA’s mortgage savings program is all thanks to new and increased income and sales price limits.

About the AHFA’s Mortgage Savings Program

First and foremost, let’s review what the Alabama Housing Finance Authority (AHFA) is. According to the Alabama Housing Finance Authority website, AHFA is dedicated to serving the housing needs of low- and moderate-income Alabamians by creating housing opportunities through affordable financing.

So, what exactly is the Mortgage Credit Certificate (MCC) program? The Mortgage Credit Certificate program is a savings option for Alabama homebuyers that provides a tax credit to reduce the amount of federal taxes owed by a percentage of the annual mortgage interest paid each year. The remaining annual interest can then still be claimed as a mortgage interest deduction on the homebuyer’s federal tax return.

The catch? Qualified homeowners must meet federally-established income and sales price limits, which have recently been increased!

Expansion of the AHFA’s Mortgage Savings Program

Set by the U.S. Department of Housing and Urban Development, the new income limits increased over 2022 by 8.2 percent due to increasing median incomes and economic gains.

Now, qualifying households can earn up to $111,440 annually, depending on location and family size.

In addition, the maximum sales prices for the home purchase has risen to $588,104 in “target” areas and $481,176 in “non-target” areas.

On an individual basis, the AHFA will verify each property’s location and apply the appropriate limit. This expansion of the AHFA’s mortgage savings program is huge and benefits many of MCC program participants.

Summary

The expansion of the AHFA’s mortgage savings program will ultimately save home buyers money and free up income to qualify for nicer homes.

For more industry news and real estate updates, continue reading our blogs.

7 Safety Tips for Homeowners and Buyers

Posted on July 21, 2023

Whether you’ve lived in your home for years or just moved in, review these seven safety tips for homeowners and buyers to better protect your family and property.

Research an area before you buy a home.

A good place to start when it comes to researching a city you may move to is with a local expert, like a Realtor. They will have the knowledge and resources readily available to help you find a neighborhood and home you will feel comfortable in.

You can also find helpful search tools, data, tips and more with online resources like SafeWise, for example.

Get to know your neighbors.

This is one of the safety tips for homeowners and buyers that is also good for your social life! In general, neighbors who get to know each other tend to look out for each other.

Not only is a sense of community created among friendly neighbors, but it also creates a safety network. Your neighbors could be the first ones to notice if something isn’t quite right, including signs of a fire or unfamiliar faces roaming around your home.

Stay diligent with your home security.

Staying safe does take a little effort. For instance, it’s a good idea to keep windows and doors locked while you are home or away. Ask your neighbors to keep an eye on your property if you are going out of town.

Leave a light on, whether you are home or away. Another good safety tip is to keep your location secure by not tagging it on social media accounts when you are on vacation or just out and about around town.

Improve the lighting around your house.

This is a simple, yet effective home safety tip. Consider adding more outdoor lights to protect your property. Options include motion-sensor lights and automated lights connected to your home security system.

Store hazardous materials safely.

From cleaning supplies like laundry pods to gasoline for the lawn mower, remember to safely store any chemicals and hazardous materials away from children and pets.

Test your smoke and carbon monoxide detectors.

As soon as you move in, walk through your new home and find all of the smoke and carbon monoxide detectors. If there aren’t any carbon monoxide detectors, consider adding a few.

After finding the detectors, double check the batteries or go ahead and replace them. Remember to check all your smoke and carbon monoxide detectors regularly.

Work with a Realtor.

Finally, when it comes to safety tips for homeowners and buyers, working with a Realtor is a good place to start! Think of local Realtors as your local experts in terms of home security and community safety. Oftentimes, they can connect you with additional community resources.

Summary

Are you asking yourself where to start when it comes to finding that local expert in Lee County? Start with us! You can search for Realtors, find other community resources and learn more about the local real estate market by reading our blogs.

9 Summer Energy Efficiency Tips for Homeowners

Posted on June 21, 2023

Finally! We can officially say it’s summer. In fact, today is the longest day of the year, offering some of us more than 12 hours of sunlight! That’s why we’re sharing these nine summer energy efficiency tips for homeowners that are sure to help you stay cool all season long.

Some of the summer energy efficiency tips for homeowners below are free and can be applied each day, while others are inexpensive ways to help keep energy affordable.

Use window coverings.

Window coverings can be used to keep heat out during the day. In fact, certain materials and styles may even improve energy efficiency in your home.

Put fans to work.

Use ceiling fans and electric fans to circulate cool air around the room. But remember to turn them off if you leave the room for more cost savings in the long run.

Bathroom fans, for example, help draw out heat and humidity, so turn them on when you are taking a shower.

Operate your thermostat efficiently.

You may be tempted to set your thermostat to a cool setting and just leave it there. However, setting it to a comfortable temperature while you are home and setting it to a slightly higher temperature when you are away is a good way to lower your energy bill.

Generally, the smaller the difference between indoor and outdoor temperatures, the lower the cooling bill.

Add shade around your home.

Create shade around your home to help combat the heat during the day. This could include natural elements, such as trees and shrubs, along with decorative elements like awnings.

Swap out the light bulbs.

If you haven’t done this already, there’s no better time! Switch all your light bulbs to LED bulbs. They keep rooms cooler than options like incandescent bulbs, for instance.

Consider rearranging lamps and TVs.

Here’s one of the summer energy efficiency tips for homeowners you may not consider. Did you know items such as lamps, TVs and computers generate heat?

If these or other hot appliances are too close to your thermostat, it can sense the heat, making it think the room is warmer than it actually is.

Change the air filters.

Another easy way to keep your energy bill lower is to regularly change your HVAC filters. It’s also a good idea to vacuum the air intake vents to help reduce dust and buildup.

Take advantage of the breeze.

If there is a cool breeze, use it to your advantage. Leave doors open, apply cross ventilation and use other techniques to circulate the air throughout your home.

Cook outside.

Do you need another excuse to barbecue? Limit the use of your oven and stovetop by grilling outdoors more this summer. You can also opt for lighter, healthier meals that don’t require much cooking.

Summary

Last but not least, talk to your local Realtor about other ways to make your home more energy-efficient. Think of us as your local, friendly experts that love to share helpful knowledge! You can find more helpful tips for homeowners, plus local real estate trends, when you continue to read our blogs.

Real Estate Defined: An Overview of Seller Concessions

Posted on May 22, 2023

Buying a home is a big deal. Selling a home is a big deal. There are a lot of moving parts and factors to consider on both sides, including the cost. But costs can quickly go beyond a list price. Let’s look at an overview of seller concessions as an example.

What are seller concessions?

The best way to begin an overview of seller concessions is to explain what seller concessions are exactly. To simplify, seller concessions can sweeten the deal and could help expedite the selling process.

More specifically, seller concessions cover specific costs associated with buying a house that the seller agrees to pay. Seller concessions could include certain home improvements or repairs as well as some of the closing costs.

For instance, seller concessions may include several different fees such as the inspection fees, appraisal fees and the attorney fees.

Even though seller concessions can help lower the upfront costs and attract buyers, there are pros and cons for both buyers and sellers.

Seller concessions for buyers and sellers

For buyers, the upside to seller concessions is it can save you a significant amount at the closing table, making a home more affordable. This can also allow potential buyers the chance to make a higher offer, which may have a better chance of standing out in a competitive market.

From the seller’s perspective, seller concessions may speed up the sale of your property by making it more attractive to buyers in a crowded market.

Summary

Now that you’ve read an overview of seller concessions and what they could mean for you as a buyer or seller, reach out to your local Realtor to discuss your next move within our market. You can also learn more about our local market, real estate trends and other industry news by reading our blogs!

4 Things to Know About the National Association of REALTORS® Code of Ethics

Posted on April 21, 2023

Looking for a house, not to mention a Realtor, can be overwhelming. However, these four things to know about the National Association of REALTORS® Code of Ethics will help you see the benefits of working with one from the beginning!

But before we delve into the main things to know about the National Association of REALTORS® Code of Ethics, let’s first review what it is and why it was created.

What is the Code of Ethics, and why was it created?

In a nutshell, the NAR’s Code of Ethics is a self-improving guide for all real estate professionals. It was created to guarantee clients are served fairly by requiring Realtors to work together in promoting the clients’ best interests at all times.

Required continuing education courses ensure that Realtors stay up-to-date on the Code and any changes it undergoes year to year.

It was established over 100 years ago.

Did you know the NAR’s Code of Ethics was adopted in 1913? According to the NAR website, it was “one of the first codifications of ethical duties adopted by any business group.”

It embodies the Golden Rule.

Simply put, “Do unto others as you would have them do unto you.” Realtors apply this guiding principle to all their activities, from personal to professional.

There are three main sections.

There are three main sections outlined in the Realtors’ Code of Ethics.

Duties to Clients and Customers

When it comes to things to know about the National Association of REALTORS® Code of Ethics, know that the client is always the number one priority. But Realtors remain obligated to treat all parties honestly, even while promoting and protecting their clients’ best interests.

Duties to the Public

This section includes everything from equal professional services for all to truthfulness in all communications—from emails to advertising.

Duties to Realtors

Once again, the Golden Rule is a guiding principle in this case. Under the Code of Ethics, Realtors promise to be fair, honest and supportive of other real estate professionals.

It gives you—the client—peace of mind.

Knowing your Realtor has taken an oath to protect and promote your best interests in all transactions is comforting. Understanding your Realtor is obligated to disclose pertinent facts about the property is comforting.

Realizing your Realtor works diligently to promote a healthy, competitive marketplace is comforting. And, last but not least, knowing your Realtor is committed to staying current on issues affecting real estate gives you peace of mind.

Summary

Now that you have a better understanding of why “Realtor” has come to mean “competency, fairness and high integrity,” are you ready to connect with a local expert? We can help! Search for Lee County Realtors here. For more industry news and tips, keep reading our blogs.

5 Potential Homeowner Tax Breaks for 2022

Posted on March 21, 2023

The due date for taxes is April 18, 2023. But before you file, be sure you are aware of the tax perks of homeownership. Check out these five potential homeowner tax breaks for 2022.

Mortgage interest

The mortgage interest deduction is an itemized deduction. This means that for it to work in your favor, all your itemized deductions need to be greater than the standard deduction.

Note that for the 2022 tax year, those standard deduction amounts increased. For individuals, this deduction is now $12,950, and for married couples filing jointly, it is now $25,900. For the head of household, this deduction went up to $19,400. And if you are 65 or older, you can add on an extra $1,400 per person if you are married and filing jointly or an extra $1,750 if you are a single filer.

And remember—the more recent your mortgage, the greater your tax savings will be.

Property taxes

Property taxes are on that itemized list of all your deductions that must add up to more than your standard deduction.

Taxpayers can take one $10,000 deduction. This deduction is capped at $10,000 for those who are married and filing jointly.

Note: If you have a mortgage, your property taxes are built into your monthly payment.

Interest on a home equity line of credit

If you have a home equity line of credit, or HELOC, the interest you pay on that loan is deductible only if that loan is used specifically to “buy, build or improve a property.”

Essentially, you will have some cash if your home needs repairs or upgrades. But you cannot use that money for things such as weddings or college tuition.

You can deduct up to the $750,000 cap—this is for the amount you pay in interest on your HELOC and mortgage combined. But note, if you took out a HELOC before the new 2018 tax plan for anything other than improvements to your home, you cannot deduct the interest.

Home offices

Are you self-employed, with your home office being your principal place of work? Good news! You can deduct $5 per square foot, up to 300 square feet, of office space. The maximum deduction your home office can receive is $1,500.

For those taking this deduction, know that there are very strict rules on what constitutes fully-deductible home office space.

In addition, understand that if you are still working remotely, you are still a W-2 employee and are not eligible for this deduction under the CARES Act.

Home improvements

To receive the home improvement tax break, your improvements have to exceed 7.5% of your adjusted gross income.

Deductible improvements can include widening doorways, lowering cabinets, fixing electrical or adding stairlifts. For some homeowners who plan to add renovations such as wheelchair ramps and grab bars in the bathrooms, for example, the cost of improvements can result in a nice tax break.

You will need a letter from your doctor to prove that these changes were medically necessary.

Summary

Be sure you keep these potential homeowner tax breaks for 2022 in mind when filing your taxes in 2023. These breaks and homeownership tax perks can save you money!

Finally, continue reading our blogs for more real estate tips and news.

9 Factors to Consider When Determining an Offer Price on a Home

Posted on February 22, 2023

You finally found it—the home of your dreams! Now what? It’s time to make an offer. Your buyer’s agent will guide you through the entire process, including sharing these nine factors to consider when determining an offer price on a home.

Making an offer

Before you can make an offer, there are several factors to consider when determining an offer price on a home. Are you ready to figure out where to start? Now is the time to ask your REALTOR® about the following.

The home’s current list price.

For starters, what is the home’s list price? Is the asking price in line with the fair market value? If so, is it within your overall budget?

The sold price of similar homes in your area.

Your buyer’s agent can provide you with valuable information, including what similar homes in your area recently sold for. Commonly referred to as “comps,” this information offers you a reasonable baseline in terms of a starting offer.

How long has the house been on the market?

In a nutshell, if the home has been available for longer than average, sellers may be more willing to negotiate or accept a lower offer.

On the other hand, if the property is new to the market, the offer may need to be higher.

Look at the condition of the home.

Before you make an offer, take the time to learn about the home’s history and pay attention to its details. When was the house built, what types of building materials were used, what is the square footage?

What are the home’s top features and amenities? Is it in need of repairs or is it move-in ready?

Consider seller concessions.

And the questions to ask yourself continue. Will you be asking the seller to make any last-minute improvements?

Or, would you want them to cover the closing costs? These are the sorts of questions to review with your agent.

Outline exactly what’s included with the home.

Make sure the agreement and offer clearly define what is included with the home, such as appliances or window treatments.

Add in the earnest money.

When you get ready to make your offer, remember to add in the earnest, or deposit, money.

Factor in home inspection contingencies.

It may be a good idea to consider the unknowns that could be uncovered during the home inspection. Leave room in your budget for any potential updates or repairs.

Is there flexibility in your offer?

Finally, when it comes to factors to consider when determining an offer price on a home, did you give yourself some wiggle room? Is your offer going to fall at the top, middle or low end of your budget?

If the price point is firm, can you sweeten your offer in other ways? Consider being flexible when it comes to requested repairs, the closing date or the closing costs, for instance.

Summary

Bottom line: even after doing your research and carefully considering several factors to determine your offer price, the sellers could turn it down. But, remember, your trusted local REALTOR® is on your side and ready to negotiate on your behalf!

Are you looking for additional real estate tips? Keep reading our blogs for more!

Real Estate Defined: Home Inspections and What to Expect

Posted on January 20, 2023

When purchasing a home, a home inspection can save you thousands of dollars in unexpected repairs. It’s important to know exactly what you are getting into. Let’s take a closer look at home inspections and what to expect.

What is a home inspection?

A home inspection is a visual assessment of a home’s physical condition and mechanical systems, including the roof, ceilings, walls, floors, windows, doors, plumbing and more.

An inspector helps make sure there are no hidden issues in a house before the buyer commits. It is important to know about home inspections and what to expect in order to do your due diligence before purchasing a home.

In addition to the home’s physical condition and mechanical systems, inspectors will also check major appliances and the heating and air.

What happens during a home inspection?

During a home inspection, the inspector has three main tasks.

Identify any possible issues with the house.
Suggest fixes.
Write a report, including photos, noting all observed concerns.

This report is vital for the buyer and agent. Based on this report, a buyer can request repairs from the seller.

Things to look out for that home inspectors won’t check

While inspectors assist in determining physical and mechanical issues, they typically only address issues that can be seen with the naked eye.

Inspectors will not put themselves in danger. For example, if a roof is too steep, they will not climb up to check for missing shingles. Instead, they’ll try and use binoculars.

Basic home inspections do not include any of the following:

Swimming pools
Wells
Septic systems
Structural engineering work
Fireplaces or chimneys

For wood-burning fireplaces, many inspectors will open and close the dampers to make sure they’re working and look up chimneys for obstructions, but that is all.

Summary

Now that you know about home inspections and what to expect, make sure you show up with your agent on the day of the inspection. This allows you to ask questions, review the inspection report and prepare to negotiate repairs.

For more industry insights, continue reading our blogs.

3 Tips for Selling Your Home During the Holiday Season

Posted on December 21, 2022

Selling your home takes work, and during the holiday season, unique circumstances could come up. However, buyers during this time are often more serious, and typically there are fewer homes being listed to compete with. Check out these tips for selling your home during the holiday season.

Make your home cozy.

It is important your home feels inviting during showings; that’s why decorating is vital. Homes often look their best during the holiday season, but be careful not to overdo the seasonal decorations.

As buyers tour homes, they will want to be welcomed by an inviting environment. Add décor pieces such as candles, throw blankets, traditional holiday patterns, and even foliage when styling your home. Avoid using personalized holiday décor, such as stockings with names and personal holiday cards.

Take good listing photos.

While these holiday decorations make buyers touring your home feel welcome, your listing photos should have a timeless feel. Make sure the photos on your listing aren’t just a snapshot of a moment in time during a holiday.

Using a holiday photo on your listing may remind buyers that your home has been sitting on the market for some time.

Hire a dependable real estate agent.

A good real estate agent will help guide you through the process of selling your home. It is important you hire an agent who won’t disappear during Thanksgiving, Christmas, or the New Year.

Find a reliable agent by asking your friends and family if they have any recommendations. Ease your stress by doing this and utilizing other tips for selling your home during the holiday season.

Summary

Are you thinking about selling your home? Keep in mind these tips for selling your home during the holiday season. These strategies will be sure to help you prepare to list your home and get it sold as quickly as possible.

Continue reading our blogs for more real estate news and tips!

The Benefits of Getting Pre-Approved as a Buyer

Posted on November 21, 2022

Buying a home is a process. Part of the process is preparing to purchase a new home. The benefits of getting pre-approved as a buyer start by giving you, the buyer, a clear financial picture.

Find out what you can afford.

One of the biggest benefits of getting pre-approved as a buyer is that it eliminates doubt. The pre-approval letter shows the maximum amount you can borrow plus a specific interest rate and the loan terms.

Understanding what you can afford is a good first step when starting your search for a new home. Armed with a budget, you can now talk to your Realtor about what you are looking for in a home.

Pre-approval could give you an edge.

Depending on what type of market we’re in, having a pre-approval letter in-hand can give buyers an advantage. More specifically, this is true in a seller’s market where inventory is low and demand is high.

Sometimes two buyers could make an offer simultaneously. Typically, if one potential buyer has mortgage pre-approval and the other doesn’t, sellers tend to favor those who are pre-approved.

It provides bargaining power.

Next on the list of benefits of getting pre-approved as a buyer is flexibility. Being pre-approved may give you more wiggle room when it comes to negotiations.

When sellers know a buyer is pre-approved, they may be more willing to compromise on certain things to ensure the sale happens.

Being pre-approved saves time.

Closing on a new home takes time. On average, according to Forbes Advisor, the closing process can take anywhere from 30 to 60 days.

But if you have a pre-approval letter, it speeds up the process. You may be moving into your new home sooner than you think!

Pre-approval gives a buyer confidence.

Last but not least, being pre-approved as a buyer gives you confidence. When you are pre-approved, a lender has determined that you are qualified for a home loan.

Being pre-approved upfront gives buyers peace of mind from the start.

Summary

To summarize, there are two main takeaways. First, getting pre-approved as a buyer gives you a better understanding of what you can afford. Second of all, it shows sellers you are serious about buying a home. But, remember, pre-approval letters are usually only valid for 60 to 90 days. Talk to your Realtor more about your budget and what you are looking for in your new home. Keep reading our blogs for more industry insights!