Category Archives: Tips

 

Have you recently purchased a home and discovered that it was in fact not the right home for you? Or are you considering buying your first home and fearful that you may purchase the wrong home? Unfortunately, this happens more than we would like to report. Individuals get excited about specific attributes of a house and make a rash decision to purchase. Then, after they have moved in, they discover that they have made a huge mistake!

We want to help you avoid making this mistake…and provide you a solution if you have already realized that you made this blunder!

How To Avoid This Mistake…

We have worked with dozens of clients in the Houston area who have reported that they identified after they purchased their home that there was something about the house that did not fit their needs. Here are the four most common errors reported:

1. The neighborhood was not what they expected.

There is an extensive amount of research that homeowners conduct before moving into a home – what the neighborhood is like, how the school systems rate, and what the crime rate is. Unfortunately though, there are certain aspects to moving that cannot be researched – one in particular is the behavior of your neighbors. Some may be extremely noisy or throw parties often. To avoid moving into a neighborhood that does not meet your expectations, always talk with the neighbors before the purchase – that is, ask them how they enjoy living on the street, how quiet and/or loud the streets get at night, and any other question that may be specific to your wants of a certain community.

2. The design is not for them.

When assessing your future home there is usually a long check list of the wants, must-have’s, and no-ways. However, it is extremely challenging to find a home that meets all of your criteria. Unless you have an unlimited budget, you most likely have to make some sacrifices on your checklist – and the most common one that people report to sacrifice is the layout. More often than not they think to themselves that they can deal with the layout – say for a fabulous view or a built-in pool. This is not a mistake to be made! You will spend a majority of your home life in your home, so selecting a home that has the layout of your dreams is crucial. If you are on the lookout for a new home, place this item at the top of your checklist!

3. They chose the fixer-upper.

Over the last two decades fixer-uppers have been on the rise – these are homes that can be purchased at a lower price point but need some repairs, maintenance, and remodeling. Thanks to home improvement shows such as “Property Brothers,” “Flip or Flop,” and “Queer Eye,” thousands of Americans are jumping into purchasing fixer-uppers with the expectation that they will renovate just as they saw on television. Though, many people who adopt this mentality are truly unaware of the financial burden and time commitment that goes into renovating a home. Before taking the leap into one of these huge projects, be sure that you complete all necessary inspections and get a contractor’s opinion on how much the improvements will cost and how long they should take – this can give you a better timeline and budget of what to expect.

4. They overlooked inspections.

What if you found a home that you loved and you allowed the seller to give you his or her word that the property was in prime condition? Many homebuyers do just this – they overlook the need to have all inspections completed prior to close. They assume that because the home is newly built or newly renovated, the issues can’t be that bad. This is a major assumption when making a house purchase. If you are in the process of purchasing a new house, confirm that all inspections have been completed before you close escrow! These mistakes can be extremely costly, especially if a problem with the foundation is uncovered.

What To Do If You Regret Your Purchase?

For those that are in the market to purchase a home they have the ability to review this list and ensure that they don’t make these mistakes. But, what about those individuals who have already purchased their home and then realized that they made a mistake?

Thankfully, there is a way out – sell to an all-cash buyer. We here at Gulf State Homebuyers purchase homes in any condition – we also purchase homes of all designs and in all the neighborhoods surrounding the Houston area. We provide homeowners with competitive offers and a simple solution to getting out of their unwanted home – watch now to learn more, or contact us today and speak with a representative on how we can help you get out quickly!

 

The neighborhood that you raise your children in can have a large impact on their future. From the amenities that allow them to explore the outdoors, to the school and athletics programs that provide them a chance to attend a prestigious university – every aspect of your community can either give them a better future, or create a barrier that they must overcome.

With this is mind, it is imperative that when you are deciding to start a family, you review the pros and cons of every potential neighborhood and identify the one that best suits your needs. However, many people do not know what this checklist consists of – so let’s take a closer look.

Strong Community Network and Neighborhood Amenities

The first aspect to consider when picking out a neighborhood for your future is to identify what the community is like – are there programs that can allow you to get to know your neighbors such as activities at a local community center, or are there nearby parks or pools that you can walk to and enjoy on the hot summer days?  These bonuses to your neighborhood will not only provide your children with an array of events, but will also provide you as the parent the chance to meet like-minded people in your community and make friends.

Schools and Athletic Programs

Another factor to consider, specifically when you are selecting a neighborhood that is best for your children, is to review the neighborhoods school system and athletic programs. Depending on what your hopes are for your children’s future, this aspect can vary – some parents find it important to have access to the best pewee football league, while others are looking for schools that offer dual language programs. Identify your priorities and review the programs that each school district provides.

Affordability

You may have a detailed checklist of what you do and do-not want for you future home and its community, however, the hard reality is that your financial status does not always match your list. Therefore, when assessing a community, you will want to look at the affordability of specific neighborhoods. In addition to looking at average values of homes, you will also want to look at details such as average price per square foot (especially if you are looking for a large home for that big family) and what amenities are included in the average homes (backyards, pools, open living areas, etc.). By identifying the most affordable neighborhoods you can start to narrow down your final selection.

Job Opportunities

Finding the best neighborhood for your family goes beyond looking for the children – it is also essential for your future and mental health as well. Not only do you want to select an area that has supplemental job opportunities, but you will also want to select one the minimizes your daily commute. Finding a stable job that can support your family and reducing the stress of the morning commute can actually improve your mental health, which ultimately allows you to better enjoy your time with family!

Accessibility

Last but not least, you want to consider the accessibility in both the neighborhood and in your future home. If you are currently living in a home that has a walk-up, lacks space for an expanding family, or is so busy with traffic that it could pose as a threat to children playing outside, you may want to consider a move. If you are just looking, these are some of the things you want to assess. Additionally, you can review what the sidewalks are like – do they provide room for you to get your daily exercise – and, what will accessibility be like during all four seasons? Fortunately though for those living in Baytown, the seasons will not impact you too much!

Are You Looking To Move To Your Next PERFECT Neighborhood?

Many Americans who currently own their home are hesitant to transition to a new neighborhood, even when it comes to moving to improve the future for their children. The moving process is daunting and timely, and with Americans working more hours than historically, the challenge may be too big for them to battle. However, what if there was a way to make this transition easier?

We are here to tell you – there is! If you want to move and remove half the hassle, we can help. We can buy your home, all cash, and remove the need for you to market and sell your home through a real estate agent. We can even modify the terms of the close that best suits your needs – so if you need extra time to shop and find the next best neighborhood for you, that’s no problem. You can live in your home until you are ready to go, and we will even help with your moving expenses. We provide our clients with competitive offers so that they can take that next step for their family’s future.

If you are interested in learning more, contact us today and speak with one of our qualified representatives!

 

Many of our clients have recently been asking us about how selling their home affects their taxes, given it is tax season. Therefore, we thought we would share with everyone some answers to the most common questions we have recently been asked.

What taxes will I have to pay when I sell my home?

There is no simple answer to this question. Rather, the amount that someone will have to pay is on a case by case basis. For this article we will focus specifically on selling your home in the state of Texas. Here are some simple guidelines:

• When Americans file for their taxes, they generally file a state income tax return and a federal income tax return. However, in the state of Texas there are no income taxes. Therefore, a homeowner looking to sell their home does not need to worry about paying this part.
• Every homeowner will be responsible for paying capital gains taxes. Capital gains taxes are taxes paid on the profit that a homeowner makes from their home at closing. The percentage that an individual pays depends on the tax bracket that they fall into, as well as how long they lived in their home. Additionally, the tax law provides an exemption for those who have lived in their homes for two out of the last five years: $250,000 for those that file single and $500,000 for those that file jointly. For this exception though the homeowner must have owned the home for at least two years.
• Selling an Inherited Property: If someone inherits a property, they are only responsible for paying capital gains taxes on the home’s gain since the date of death of the individual that passed the home on.
• Selling an Investment Property: Similar to that of your primary home, a homeowner will have to pay the capital gains taxes on the home. Unless a homeowner lived in the home previously (two of the last five years), they will be responsible for paying long-term capital gains according to the Tax Cuts and Jobs Act. Here is a brief breakdown of the tax rate:
  • 0% for single filers with taxable income of $0 – $39,375, married filing jointly with income between $0 – $78,750, heads of household making $0 – $53,750, and those married filing separately with incomes between $0 – $39,375;
  • 15% for single filers with taxable income of $39,376 – $434,550, married filing jointly with income between $78,751 – $488,850, heads of household making $53,751 – $461,700, and those married filing separately with incomes between $39,376 – $244,425; and,
  • 20% for single filers with taxable income of over $434,550, married filing jointly with income over $488,850, heads of household making over $461,700, and those married filing separately with incomes over $244,425.

When will I have to pay those taxes?

If you sell your home this tax season you will not need to pay taxes until you file in 2020. Therefore, selling your home now does not impact your tax returns for 2019.

Is tax season a good time to sell my home?

Contrary to popular belief, tax season is a great time for any homeowner to sell their home. As mentioned above, homeowners are not affected until the following year. So, selling in tax season can actually provide an array of benefits.

Winter time brings more serious buyers to the table. Not everyone who goes on the house hunt is ready to pull the trigger on purchasing their next home – however, when marketing and selling during tax season, the buyers are generally those who have considered how much they will receive or how much they will have to pay this tax season. Therefore, they will have a better understanding of their financial position and maximum amount they can spend on their purchase.

In addition, tax season is the time in which the fewest number of houses are on the market.  This means that there is less competition so you can get the best offer for your home. Many homeowners are deterred because of the distractions during tax season and their personal belief that buyers are not looking at this time.

How Should You Sell During Tax Season?

There is no doubt that this time of year can be somewhat stressful. Taxes are due, the children are back at school, and families are taking a break after a busy holiday season. However, as a homeowner, you may want to take advantage of this unique time to sell. Remember, if you sell now you will not need to pay taxes until 2020 – this will give you plenty of time to discuss with an accountant how to save the most before filing next year.

There is a solution to avoid the hassle of listing and marketing your home though: Sell to an all cash buyer. In this process you as a homeowner can sell your home at a competitive price without requiring the excessive time of working with a broker. If you are interested in learning more, read about the benefits here, or contact us today for a free consultation.

 

As a general rule, the strength of the United States economy significantly impacts the strength of the real estate economy. Whether assessing GDP, unemployment, or income growth, each variable has a unique impact on the real estate market, specifically how investors and homeowners can react. Most homeowners understand these aspects of the US economy; however, many are not avid followers of the stock market. Perhaps they are not personally investing, or maybe they have a managed fund – either way, understanding the connection is important for any individual associated to both markets

Understanding the Connection

There is an indirect correlation between the two markets related to the status of interest rates – specifically mortgage rates. In times of low volatility, lenders tend to offer lower interest rates, therefore increasing the opportunities for potential home buyers. In times of high volatility, the opposite occurs – mortgage rates are higher and few buyers are permitted the option to purchase, ultimately slowing down the housing market. Increased mortgage rates do not only impact home buyers, but also investors seeking investment properties. As this occurs homes become in less demand creating a decline in the housing market as well.

Volatility can also have an impact on the down payment required by the lender. Similar to the scenario above, a more volatile market can create higher demand for larger down-payments from potential home buyers. Ultimately, high volatility in the market can lessen the number of potential home buyers, therefore reducing the competition for any seller. The final result: a lower selling price for the home.

Additionally, there is a strong relation between the real estate market and the stocks of companies that supports the real estate market. For example, reviewing companies like Home Depot, D.R. Horton, and Lennar can provide homeowners an understanding of the anticipated future of their house’s values.

Lastly, reviewing the overview of the US economy as a whole, including the strength of the stock market, can give homeowners and potential home buyers a general idea of the status of the economic health of the country. If investors think the U.S. housing bubble will burst, they will start selling these stocks related to the real estate and housing market.

Today’s Market

• Interest rates are rising. Since this is one of the only connections between the two markets, the change in lending should not go unnoticed. Throughout 2018, the Federal Reserve raised the central bank’s benchmark interest rate four times, totaling to an increase of 1%. On March 21^st, the rate raised from 1.50% to 1.75%; on June 13^th the rate raised from 1.75% – 2.00%; on September 26^th, the rate raised from 2.00% – 2.25%; then, on December 19^th, the rate raised from 2.25% to 2.50%. There is expected to be two more hikes in 2019. This rapid influx in interest rates is anticipated to slow the housing market down, reducing the number of buyers in the market.

 

• Real estate related stocks have witnessed a decline in the last year. Home Depot (HD) has gone down 1.30% YTD; D.R. Horton (DHI) has gone down 15.42% YTD; and Lennar (LEN) has gone down 22.47% YTD. Additional homebuilding stocks to review include: LGI Homes (LGIH), which has declined 3.92% YTD and Eagle Materials (EXP), which has declined 29.73% YTD. The trend seen in these stocks over the last year are an indicator that the housing market may be following a similar pattern.

What Does This Mean For You, The Homeowner?

Selling your home may be more challenging now compared to a few months ago. Rising interest rates are causing a decline in the number of home buyers and an unsteady/declining stock market is signaling a weakening in the housing market as a whole. Nevertheless, you as a homeowner do not need to fall victim to this decline. Selling your home to an all cash home buyer can provide you the stability and certainty for your next move. We here at Gulf State Homebuyers do not depend on lending when purchasing your home, therefore, the changes in interest rates do not always impact out offers. We have the capital at hand to purchase your homes, therefore removing any finance contingency in the sale. Additionally, we are also buying. Yes, the stock market may be indicating a decline in the housing market, but the reality is: the housing market is still strong. And we can provide you a competitive offer than reflects how exactly the local market is doing.

To learn more, contact us today for your free consultation.

 

Whether you are a current or prospective homeowner, determining the type of house you want to purchase next is a critical decision in the home buying process. There are basically two types of homes you can choose from: an old one or a new one. In this article we will outline the differences between your options, hopefully providing you with the knowledge you need for your next investment.

Now, Let’s Compare!

Purchase Price and Negotiating Opportunities

As you may have assumed, buying a new home will be more expensive and the purchase price may have less room for negotiation. Developers are strategically building track homes in neighborhoods, creating an average on-market price and closing price for homes in specific communities.

However, if you buy an older home you will have a higher chance of finding a home at a lower selling point. In addition to the lower value, there also tends to be more room for negotiation in the sale. Homeowners know the value of their home and the challenges with competing with newer models; therefore, they usually have more leniency on the closing terms.

Maintenance

Newly constructed houses should require minimal maintenance, providing you with peace of mind on the cost of the home upfront. Older model homes however are often bought as an investment with multiple DIY (do it yourself) projects required in the future. Furthermore, as time goes on, it’s inevitable that the older home will have more issues than a newer one, requiring even more time and money.

Home Design: Character and Space

Older homes are smaller but are often described as having more character. With years of life happening in them, they have the personality that some homeowners are looking for. Newer homes however are generally designed with a more open-space concept and with white walls. This allows incoming residents to decide how they want to decorate the space, giving it their own unique touch.

Warranties

This one is simple. Older homes generally do not have warranties unless the current homeowner has recently installed appliances or upgraded the property and obtained a warranty – such as for the roof. Newer homes, especially those that are brand new, will provide homeowners with the comfort of knowing that any future issues within the warranty timeframe will be covered by the manufacturer or company responsible for the work

Energy Efficiency

This topic is prevalent for two types of home buyers. First off, if someone is looking for an eco-friendly home, older homes are not the avenue to choose. Newer homes generally include double plane windows, energy efficient HVAC systems, on-demand water heaters and heat pumps, and much more. Not only are these energy efficient homes environmentally friendly, but they also help homeowners save money. Upgrades and additions such as those listed reduce energy usage and therefore reduce monthly bills. If you purchase an older home however, transitioning it to an energy efficient home can be quite costly; consequently, both the upgrades and the long-term expensive bills are not typically a financially sound decision.

Security

We are not talking about your typical front door security system, but rather an improved architectural design that helps with the security of your home and your family. Newer homes often include features that help enhance these qualities, including strong construction materials, already installed alarms and sensors, and high-performance locks.

Assessing your options, along with reviewing what is available in the market, is the key to making a financially responsible decision for your future. It is imperative that if you do decide to purchase an older home, you are prepared to take on the DIY projects and unexpected maintenance issues that come along with the house.

What if you live in an old home, but want to move into a new home?

At the end of the day, moving can be expensive. But as you can see from the list above, the benefits of living in a newer home greatly outweigh the benefits of living in an older home. There is a simple solution for you if you are considering moving: sell to us. We are Gulf State Homebuyers, an all-cash home buying company located in Baytown, TX. We are dedicated to helping individuals in our community transition into the newer home of their dreams. The benefits of selling to us include: we cover all closing costs and we charge no agent fees, plus we help with moving costs! To learn more about how we can help you, contact us today!