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Six Tips on Building Equity in Your Home

Monday, November 22, 2021
by Scott Darling


What is home equity? The Balance explains it this way: home equity “...is the amount that you own, or what you would get after paying off your mortgage after selling.”  For most Americans, their home is their largest investment, so keeping a watchful eye on the equity and taking action when it is necessary is their first defense.  

 

  • Before purchasing a new home, consider adding more to the down payment. This simple action creates equity by reducing the amount of your mortgage loan. 
     

  • The smaller the loan term, the faster the loan is paid off. Your payments will be higher, but if it is affordable, it is a fantastic way to gain equity quickly. 
     

  • Every monthly payment you pay towards your mortgage automatically builds equity unless your mortgage is an interest-only loan. Discuss this with your lender before you begin because you want to be certain that you are paying down the principal. 
     

  • - Adding to your payment each month not only builds the equity, but it will save money on interest in the long-term. 

  • - Consider dividing your monthly payment into two payments every other week. This is This plan makes it easier for you to squeeze in one extra payment per year. (26 half-payments=13 monthly payments) 

  • - Less expensive ways to pay the principal down sooner:  round up your monthly payment, budget a smaller amount each month to be paid on your loan, or use a tax refund or work bonuses to pay towards the principal. 
     

  • Properly maintaining your home will at least keep up the value, depending on the market, of course. Roof leaking? Repair it. Paint peeling? Grab a paintbrush. Sweat equity does not cost you anything, but if you must, hire a pro so that the job is done right. 
     

  • Adding value to your home is possible, but only if you are not spending too much out-of-pocket or dipping into a home equity loan to make the upgrades. 
     

  • Refinance your mortgage only if it is necessary or if you are decreasing the loan term. 

 

If you are unsure about the local market, call me and ask me to pull recent sales in your neighborhood so you can compare selling prices of similar homes with your mortgage balance. Now may be a good time to sell if you have enough equity in your home, and I will help you every step of the way! 

 

Courtesy of Chester County PA Realtor Scott Darling. 

 

Photo credit: Forbes

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Chester County PA Real Estate Market Trends for October 2021

Friday, November 19, 2021
by Scott Darling

Chester County PA Real Estate Market Trends for October 2021

Chester County PA single-family homes saw pending sales decrease by -18.1% in October 2021 when compared to October 2020. 447 homes sold in October with a median sales price of $488,000. The average days on the market fell by 17 days. If you are thinking about selling your home get a free instant home evaluation Learn More. 

 

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Protecting Your Vacant Home For Sale

Wednesday, November 10, 2021
by Scott Darling

Moving before your old home sells can cause some anxiety for the property’s safety. Criminals can be savvy these days, and you do not want your home compromised, especially when potential buyers are there for a showing. Besides having interior lights set on timers, window coverings, and motion-sensor outdoor lighting, there are a few more things you can do to add an extra layer of security: 

 

  • The first step is the most obvious: lock all doors and windows. If someone is looking for easy access, they will check every entryway, and if they are locked, they may decide to walk away. 

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  • Before the move, check in with your insurance agent and make sure your homeowners policy covers a vacant house. 
     

  • Ask someone you know and trust to keep an eye on things, especially if your move is long-distance. If you must pay someone, check their references. 
     

  • Find a neighbor who is willing to park their vehicle in your driveway as another safety measure. 

  • Continue to maintain the landscaping, preferably by a reputable landscaper, neighbor, friend, or family member.
     

  • As unlikely as it may seem, the HVAC unit should be secured. Installing a lock on the circuit box will discourage theft and adding a security cage is a plus. 
     

  • Home security systems are more affordable than ever, and you do not necessarily have to pay a monthly service fee to a company. Do some online research and find a system that connects wirelessly and has a coordinating smartphone app.  You can keep an eye on things yourself, and if there’s anything suspicious, call your local contact and ask them to check your house for you. 
     

  • Your RealtorⓇ normally provides a lockbox to be placed in an out-of-sight place on the outside of the house. Advancements in technology have made these tools even more secure, including types that record who shows your house and when. 

 

Think of the expense of taking additional precautions as an investment. There is no price tag on peace of mind and protecting your property when you are not present.  Another bonus is that the added security could be more incentive to potential buyers, making your home sell sooner! 

 

Courtesy of Chester County PA Realtor Scott Darling. 

 

Photo credit: moving.com

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Financial Mistakes for First-Time Homebuyers to Avoid

Thursday, November 4, 2021
by Scott Darling

 

Finding out just what is involved in the home-buying process can take some first-time homebuyers by surprise. It is not just a process of finding the right house, but the financial end can be overwhelming. Keep these tips in mind to help you avoid common errors a home buyer can make: 

 

  • The all-important first step: before going to a lender, make sure your credit is in good standing. 
     

  • Being pre-approved for a mortgage does not impress many sellers, so it is important to be pre-qualified. Talk to different lenders to line up the best deal for you and your budget. 
     

  • Do not overestimate how much you can afford. Avoid properties on your initial search that are truly dream homes. The pre-approval process will offer a reality check because your approved mortgage amount is set. 
     

  • Applying for a loan for a new car, credit cards, or even new furniture to go in your home can hurt your credit score during the mortgage process. 
     

  • Sometimes buyers assume that all costs of buying a house are included in the loan amount, which is not the case. Closing costs, on average, are 2-5% of the purchase price of the home, and there is earnest money and a down payment to be made. 
     

  • Do not let your finances deter you from buying a home! While the process may take more time, there are several programs ready to assist first-time home buyers. Many require less than 20% down. Other programs provide financing for those who live in rural areas, as well as those with credit issues or lower income. Go to realtor.comⓇ for a  list of available programs. 
     

You might also believe that it will cost out of pocket to have a RealtorⓇ represent you as a buyer’s agent. Not true! Their fee is paid from the purchase of the home on the seller’s end of the transaction. Chester County PA Realtor Scott Darling 

will guide you along this winding path but will do all they can to lead you to the house at the end! 

 

Photo credit: Open Mortgage

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