Category Archives: Tips

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Are you thinking about selling your home? If you are, you may want to consider completing some home improvements before listing your house on the market. Although these improvements take time and money upfront, they could exponentially increase the value of your home when selling. Additionally, by installing upgrades you will be increasing your pool of buyers – and as we all know, competition can drive your home’s value up even more!

First Stop: The Kitchen. The most valued room in the home – a beautiful house with an undesirable kitchen can deter buyers. Therefore, when planning your upgrades, plan the kitchen first to ensure that the upgrades are included in your budget. Here are a couple simple steps that could help improve the attractiveness:

•    Upgrade appliances. Replacing old, worn out appliances with a new set of energy efficient stainless-steel ones can not only attract the eye of the buyer, but also be a great selling point for an eco-friendly home.
•    Open up the space. Whether it is removing a door or even a wall, buyers today are looking for an open-concept home. They want the ability to move around and host guests without feeling trapped. If you have it in your budget, consider opening the kitchen to the primary living areas.
•    Repaint and remove any wallpaper. Updating the room can increase the overall appeal during open houses. Also, keeping it simple allows for a buyer to envision their belongings in the room.
•    Maximize your cabinet space. Again, buyers are mainly looking for that open space – they don’t want to be stuck with buying a home with no storage, which would ultimately result in unwanted clutter. Take the time and update the cabinet space to keep the surfaces clean and pristine.

Next Step: The Bathroom. This is the second most important room in the home (some even argue that it could be number one). The bathroom is the place for sanctuary – buyers again are looking for upgraded and clean rooms rather than outdated ones. Take the same steps you took with the kitchen – upgrade the fixtures, repaint, and open the space up.

Tackling the Rest of the Home: One Room at a Time. If you have the time and financial ability to continue with upgrades, keep going. Every dollar you put into improving the home now will help you gain a profit when you sell. To get started, cover the basics. Assess the flooring and walls – we recommend painting the rooms a neutral color (again, this helps a buyer imagine the room hosting their belongings), and upgrade to hardwood floors. Both of these tasks can also improve the space, bringing the open concept to the entire home.

Go Energy Efficient. A large portion of buyers today are millennials – and one of their primary concerns when purchasing a home is ensuring that they are purchasing an energy-efficient home. Upgrading your home to energy efficient appliances and lighting can have a drastic impact on the process of selling your home. Not only do you open your buyer pool up, but you also decrease a homebuyer’s future bills. This is a great tidbit to use in your marketing material as well! A few other areas to focus on upgrading include your heating and cooling system and windows.

Beautify the Exterior. Remember your home’s curb appeal, first impressions are lasting impressions. A homebuyer will make a decision in the first 10 seconds of seeing your home on whether or not they may buy it. If the exterior is unkempt (especially if the home is selling at market value), then they may lose interest. Cleaning the front yard, painting if necessary, and removing clutter will give your home a competitive advantage. This one can be low cost with high gain.

Before You Get Started, Make a Plan. This is the costliest mistake homeowners make – not making a plan before starting their improvements! If you remodel/upgrade your home without a plan, you end up spending exponentially more compared to if you created a strategy. The plan allows you to seek out the best deals, as well as allows you to assess how much you can complete before you start going over your budget. The last thing you want is to be halfway finished with a room when you realize you are cashed out.

How to Avoid the Hassle? As stated in the beginning, these upgrades take time and money. If you are not interested in the commitment, there is an alternative solution – sell to us. We see the value in properties and provide our clients with competitive offers for purchase. We take the hassle out of the transaction so that you can put your focus on your future.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”28621″ img_size=”large” alignment=”center” style=”vc_box_shadow_3d” onclick=”link_image”][/vc_column][/vc_row]

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Winter is just around the corner! And although we don’t anticipate a rainy season this year, that doesn’t mean you should neglect to prepare your home for the change in temperature. Ensuring your home is up to date won’t only keep you warm but will also help reduce your energy bills! Here is how you can prepare your home for this winter:

• Check Your Window and Door Seals: Be sure that there are no leaks. Sure, you want to keep rain out, but don’t forget about wind. An unwanted draft can bring quite the chill on a winter night. Additionally, if you are not careful, and you are using your heater this winter, ignoring a leaky seal can mean money right out the window!
• Get Your HVAC Checked. Most heating and air conditioning units last around 10 years. How old is yours? No matter the age, it’s a smart move to get your HVAC system checked this season. Change the filter and have a professional complete an inspection. If you are motivated to become more energy efficient, consider looking into replacing your HVAC system with an eco-friendly one! Not only can you help the environment, but you can also reduce your monthly bills.
• Take A Look at Your Gutters. In Baytown, the season most characterized by rain is late summer, when we experience the usual thunderstorms (and sometimes dangerous natural disasters). Although the rain is generally lighter in the winter, you want to make sure that autumn hasn’t left your home with damage or clogged drainage. Get up there and take a look at your gutters to confirm there are no problems that need fixing.
• Cover Your Pool. Although we all miss sunshine and swimming in the winter, the reality is that the weather is not quite warm enough for a dip. Covering your pool can save you the hassle of weekly cleaning when the wind is blowing and making a mess in the backyard. Lowering your maintenance this winter can also reduce your stress.
• Install Lighting for Home Walkways. It’s official: we have experienced the “Fall Back,” which means we will see the sun going down much earlier (generally, just after 5!). Since this is when many of us will be arriving home from work, we want to make sure that our homes are properly lit to avoid injuries this season. Also, installing new lighting, such as solar paneled walkway lanterns, can add a warm, quaint ambience this winter.
• Upgrade Your Fireplace. If you don’t have one, try getting one! If you already enjoy a fireplace, make sure that it’s ready for the cold weather. When you settle in after work, and the weather has dropped to the 40’s, few things are better than cozying up next to a warm fire with a hot chocolate or a glass of red wine. To prep your fireplace ready for the winter, first inspect the chimney (hiring a professional is the easiest solution). A proper inspection can ensure that your family is safe while using the fireplace. Next, you may want to upgrade to an energy efficient unit by installing an insert. An insert may cost up to a couple thousand to install, but it can reduce your monthly energy bills drastically.
• Test Your Smoke Detectors. To be honest, this one should be on your list all year. All the same, adding this simple task to your to-do list can ensure your family’s safety. If you are already in the mode of home preparation, why not add this one? Additionally, don’t forget to check the carbon monoxide detectors while you’re at it!

Thankfully, your checklist as you prepare for this winter is not too daunting – at least you are not facing snow! Don’t shirk these steps – ensuring that you prepare for all seasons can help maintain the quality of your home and the safety of your family. Taking these simple steps can get you started for an enjoyable winter!

Seeking a Winter-Ready Home?

Recently, we have heard from many clients who are looking to move into more energy efficient homes that can handle all seasons. Many of these buyers share the ultimate goal of reducing their responsibility and stress by moving into a new home. If this is something you are interested in doing, consider contacting us. We purchase homes all cash and can close in as quickly as five days. If you want, we can help you get into a new home before winter even arrives![/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”28614″ img_size=”large” alignment=”center” style=”vc_box_shadow_3d”][/vc_column][/vc_row]

 

The reports are in, and we seem to be transitioning out of the US housing boom. What are the indicators? Let’s take a closer look:

Before we discuss the statistics, you’ll need to understand the difference between a seller’s and a buyer’s market. A seller’s market features trends that favor the seller, including low inventory, high home values, quick sales, and a strong US economy. On the other hand, a buyer’s market is characterized by the opposite traits: high inventory, declining home values, longer wait times for homes on-market, and a declining US economy. Now that you have the basics down, let’s check out the results of recent analysis of the US real estate market.

Home Sales Have Dropped on A National Level

Fewer homes have been selling, which is a key indicator of a transitioning market. According to two different metrics taken by the US census, home sales have dropped. From August of 2018 to September of 2018, home sales fell 5.5%; on an annual basis, home sales dropped 13.2% compared to September 2017.

Inventory Has Increased

When the market starts to cool, one of the first indicators is an increase in inventory. In September, 2018, inventory was up 8% compared to September 2017. As a homeowner, you’ll experience a straightforward effect: A shift in supply and demand. As supply increases, demand for your particular home decreases, which negatively impacts the value of your home.

Homes Are on the Market Longer

A recent report released by the California Association of Realtors suggested that the time spent on-market for a home has bounced upward, meaning that homes are taking a longer time to sell. The increase in number of days spent on-market is not a good sign for a seller – the longer a home is on the market, the less likely the homeowner is to receive offers at the asking price. Generally speaking, if a home sits on the market for an extended period of time, the homeowner may have to consider selling for below value.

The Stock Market Has Taken a Hit

Many homeowners overlook the effect that the stock market has on the housing market. But for those looking to make the most for their home, awareness of the correlation between the two is nonnegotiable. Since President Donald Trump instituted tariffs on Chinese goods, the stock market has been wracked with instability. However, in the last week, the effect of the tariffs has been noticeable, creating a decline in the stock market. There are contradicting reports on how the future of these tariffs will impact the US economy – but if the market continues to decline, homeowners should be on alert that it may be time to sell.

What about Baytown?

The above is an assessment of the US economy as a whole. However, the question remains: does the Baytown market display the same trends?

In the last month, Baytown home values declined for the first time since September 2013. Although some reports indicate this is no cause for concern, and that the home values will continue to increase through 2019, this blip in the stats may indicate a major shift for the Baytown market.

The time spent on-market for homes in Baytown has continuously increased since July, 2018. Additionally, the average time spent on-market is almost 3x the length of the national average. An upwards shift is not a healthy indicator for the local economy.

On the other hand, however, Baytown has seen an annual increase in home values, which have risen 3.5% since September, 2017. What is this a result of? Most likely, homeowners are aware of the need to sell their homes at a competitive value while the market is still in their favor.

How Does This Affect You?

If you are considering selling your home, you may need to get started immediately. After analysis of the above factors, September may have been the most optimal time to sell, with opportunities continuing to decline. If the market continues to move in its current patterns, sellers will continue to lose money on sales.

To better understand how the market is impacting you personally, we recommend that you consult a real estate professional. We here at Gulf State Homebuyers have worked in the industry for years, experiencing the impacts of shifts in the market, ultimately allowing us to have an in-depth understanding of how these market trends can impact you personally. If you are interested in learning more about whether it is the time for you to sell, contact us today to get started with your free home evaluation.

 

Although analysts continue to publicize the notion that we are currently in a seller’s market, this does not always mean that a homeowner’s home will sell fast. Any number of factors can affect whether your home is selling, and overlooking these factors can keep your home on the market longer than anticipated. In this article, we will review what you can do if your home is not selling.

1. Re-Evaluate the Asking Price

Occasionally, listing agents and sellers will aggressively market a property, hoping that they will be able to take advantage of the seller’s market. After all, less inventory means higher prices for sellers. However, often times this can backfire, resulting in minimal offers on the property and many below the asking price. If this is the case for your home, it may be time to have the home re-evaluated so you can ensure you are asking for a fair market price.

Should you find that your home is accurately valued, you may want to consider listing the home below market value. Although this is not any seller’s favorite option, lowering the price may often drive more buyers to make an offer.

2. Change Your Real Estate Agent

Marketing a property comes down to how you sell, and if you do not have an effective real estate agent, then your property may be sitting on the market unnoticed. With the abundance of platforms now available to agents, there can often be an overwhelming number of opportunities for buyers. Therefore, it is imperative that the agent be pro-active – that includes email marketing, cold calls, and implementing other marketing tools to make your home the best available option for buyers.

To better understand whether your real estate agent is effectively marketing your property, here are a few questions you can ask them:

• Where are you marketing the property?
• What does your marketing material look like?
• What is your email marketing campaign?

Each of these questions can provide you with further insight on whether you hired the right person for the job.

3. Wait to Sell

Depending on your situation, you may have the opportunity to wait to sell. If you are listing in the fall and winter there tends to be fewer buyers. Maybe your local economy is struggling and unemployment rates are rising. If this is the case, the buying pool may just not exist. Therefore, waiting to sell may be your best option.

4. Upgrade Your Home

Many buyers are seeking upgraded homes. Especially in the Baytown area, due to increased development of homes from recent flood years, new homes are in higher supply. Therefore, your potential buyer may be ruling out your home because it does not compare to the others on the market. Renovations may cost time and money upfront, but in the long run, they can make your home more competitive on the market and even increase your home’s value.

5. Offer Seller Financing

Many buyers, especially in economically struggling markets such as Baytown, do not have adequate buyers – in other words, the buyers do not have the capital to put down, or they do not have the appropriate credit score to get a loan. In these cases, sellers have the option of offering seller financing or a rent-to-buy option. What does this mean? This means the buyer will move in under your terms, rather than those of a lender. The length of the contract will be determined by what you both agree on. Other variables in this contract can provide you benefits as well: you can make more money, gain passive income, and increase your pool of potential buyers.

Now, You Choose…

Each of these options can help boost the chance of you selling your home. Depending on the issues related to the sell, each offers both pros and cons. The time and capital you have to invest into getting the highest offer bears a major impact on how you can improve the statistics for selling your home.

However, if you are looking for a simple solution that requires NO marketing, NO real estate agent, NO seller financing, NO upgrades, and NO waiting, then look no further. We here at Gulf State Homebuyers provide clients, just like yourself, with competitive offers on the home. We also offer the ability to close in as quickly as 5 business days. If you would like more information, don’t wait – contact us today and we can get started on your free home assessment. And if the option doesn’t seem right for you, at least you will get that re-evaluation mentioned in option one!

 

Finding the perfect housing can be tricky – it requires a strategic look into your financials, an understanding of the local real estate market, and an assessment of your opportunities. In this article, we are going to review that second factor: the local real estate market. More specifically, we’ll examine the cost differences between owning and renting in the Baytown area.

Before we assess the numbers, it is important that you understand the kind of financial commitment that each option demands.

For the purpose of this article, we will pull statistics from Baytown, TX. The median home value in Baytown is $210K, while the median household income in the city is $49,930; it is recommended that your rent dominate no more than 25% of your income; therefore, we will operate under the assumption that rent costs $1,040.

The Cost to Buy

Purchasing a home is a long term financial investment that, should the opportunity arise, is the best choice for most consumers. The challenge, however, is that purchasing a home brings a heavy dose of upfront costs, which many individuals do not have the capital to handle. Let’s take a look at the costs associated with buying a home from start to finish:

• Down Payment: Depending on the loan that you qualify for, your down payment can vary, but it is necessary to earn your first home. If you qualify for an FHA loan, then you will need to put down 3.5%; however, if you need a conventional loan, you will need to put down 5% – 20%. For a home that costs $210K, an FHA loan will require a down payment of $7,350, while a conventional loan will require a down payment of $10,500+.
• Closing Costs: As the buyer of a property, you will be responsible for a portion of the closing costs, generally 2% – 5%. For a home that costs $210K, you will be responsible for a minimum of $4,200.

Just to purchase a $210K dollar home, a homebuyer will need a minimum of $11,550. Once you have purchased the home, there are additional monthly costs to consider.

• Did you qualify for an FHA loan? If the answer is yes, then you will need to pay monthly mortgage insurance – the cost of this can range. This fee is typically 0.5% – 1% of the entire loan amount. If your FHA loan is $202,650, you will be paying $2,027 annually, or $169 monthly for your mortgage insurance.
• Monthly Mortgage. You will be responsible for paying off your loan, plus interest, to your lender.
• Property Taxes. As a homeowner, you will be responsible for paying these annually. The average property tax rate in Harris County (including Baytown) is 2.259%. For a $210K home, this is equal to $4,744 annually, or $395 monthly.

When crunching the numbers on your potential home buying costs, don’t forget that there is a handful of variables that influence the values, especially when considering the loan calculations. Your credit score, debt-to-income ratio, recent payment history, housing history, investment statements, and proof of income can all affect your loan terms. For example, if you have poor credit, you should expect a higher interest rate, and therefore a higher monthly payment.

Lastly, if you are considering buying a home, don’t forget to factor in the cost of maintenance. There is no estimated amount we can provide for this – it all depends on the quality of the home. But remember: all maintenance work will be your responsibility.

The Cost to Rent

This one is much simpler than buying a home. The upfront costs to renting a home typically consist of first month’s and last month’s rent. Therefore, if you are paying $1,040/month, you will need $2,080 to move-in.

After your move in, you will only be responsible for the rent. If you move into a home managed by a responsible landlord, then your landlord should be responsible for all maintenance. The only additional fees you should expect to acquire include pet rent, parking rent, and renter’s insurance, should you choose to purchase these add-ons.

Should You Rent or Buy in Baytown?

At the end of the day, buying is always the best option. It offers individuals the chance to build equity, develop a more stable long term financial plan, and reduce tax costs. It also provides the homeowner a sense of pride. However, to really benefit, one must be in the correct financial position to own. This not only includes potential homeowners, but also current homeowners. What do we mean? If you are a homeowner, you may be overpaying on your mortgage and therefore drowning in debt. If this is the case for you, then it may be time to re-assess your position and identify alternative options so that being a homeowner is not only a benefit to your finances but also a benefit to your lifestyle! If you want a more in-depth review of this opportunity, contact us today. We may be able to help you transition into a more affordable home.