Category Archives: Tips

 

In July 2019, the Fed cut rates by a quarter point, which was the first rate cut by the central bank in more than a decade. Due to the current political policies being presented, the war on tariffs, and the President’s reports on market expectations, the policy making Federal Open Market Committee dropped the target range from 2.25% to 2%.

Unless you are working in the industry of finance, politics, real estate, etc., you most likely are unaware of how this news impacts you as a homeowner. We want to educate you on why this news it is important and how is can benefit you if you are looking to move!

Understanding the Economy:

Let’s simplify how the Fed funds rate impacts you as a homeowner…

The Fed funds rate is the interest rate banks charge each other to lend Federal Reserve funds overnight. As this rate increases, it becomes more expensive for banks to borrow from other banks.

Then, the banks lend to the consumer – this is what we know as interest rates.

The spread (or the difference between the Fed funds rate and the banks interest rate) is the return that your lender gets by providing you a loan.

Therefore, if the Fed cuts rates, then you have the potential to get a lower interest rate. However, this is not always valid. It is up to the bank to determine at what rate they want to lend to homeowners – if the Fed cuts rates, the bank can leave their interest rates the same so that they can increase their overall return.

How Does the Current Fed Increase Affect Homeowners?

If you own a home, are considering moving, or are interested in buying a home, the fluctuation in the Fed reserve affects you. Here’s how…

As A Current Homeowner

If you currently own your home, then you are in an advantageous position to sell. The buyer pool increases when the interest rates are lowered; this is because people can borrow money at a cheaper price. Therefore, with a larger buyer pool, the more potential interested parties are in the market. In some areas of the country, this can even drive home values up. This is especially true in areas where there is low velocity or few homes available for sale.

As A Potential Home buyer

This may be obvious, but you can now get money at a lower rate. However, be sure to conduct your due diligence when getting a loan for your next home. As mentioned above, not all lenders reduce their rates just because the Fed reduces their rate; therefore, as a potential home buyer you should shop around. First, identify how much you have to put down on the home and which loan you qualify for – there are conventional loans, FHA loans, USDA loans, and VA loans. If you are uncertain, go talk to your local banker. Then, shop around: Go to different banks and see what kind of rate they can get you on your home purchase. The goal here is to get the lowest rate possible and to take advantage of the reduced Fed rate.

LEARN MORE!

As a homeowner, don’t miss out on this opportunity! Understand that now is the time to maximize on your home if you are in the market to sell. If you want to learn about the value of your home and how the current economy is impacting the price of your home, contact us today and receive a free home appraisal.

We are all-cash investors in Baytown and we provide clients with home evaluations. Our evaluations are not the price to take your home out to market, but instead the amount we can put in your pocket this week!

About Us

Our company specializes in purchasing residential and commercial properties in Houston and its surrounding areas. We not only supply clients with the ability to sell their home for cash; in many situations, we allow our clients to rent or owner finance from us as well. Our staff has purchased hundreds of homes in all cash throughout the years, in addition to offering sellers fair market prices for their homes with closings in a matter of days.

Our mission is to provide sellers a fast, easy and stress-free way to sell their real estate.  We have been buying houses for over 15 years in Houston and surrounding areas in addition to providing the best customer service in the business.  Here at Gulf State Homebuyers, we take pride in making sure our sellers feel at home and not to mention, treat them like family.

 

Going green is big talk and big business these days. There is the obvious need to keep the only planet we call home clean and safe for future generations, but there are many other reasons to support this trend as well. The eco-friendly movement has picked up so much speed that every aspect of our lives seems to be affected by it. Everything from the clothes we wear to the cars we drive are becoming more environmentally conscious.

So, it goes without saying that our homes are now being looked at in exactly the same way. New homes are heavily influenced by contemporary eco-friendly design. The layout, construction materials, and new technology are making these homes remarkably efficient, which is not only great for the environment, but your pocket book as well. Efficiency equals lower utility bills, ultimately saving eco-friendly homeowners thousands of dollars each year.

However, most homeowners live in homes that are more than 20 years old and were not built with climate change in mind. The question here is whether or not it is worth the time and money to upgrade your home to be more environmentally sound.

When to Say “No” to Upgrades….

Like many of us, your house is probably in perfectly livable condition. Though it may be older, all of the heating, ventilation, and air conditioning (HVAC), windows, insulation, lighting, and appliances in the house work great. So, why would you want to fix something that isn’t broken?

To get the best answer you may need to consider when you plan to move next. For homeowners who are going to stay in one place for a while, or indefinitely, eco-friendly upgrades won’t always add up. In this scenario it is usually best to wait until something in the home needs repair or replacement. For example, it is more harmful to the planet to throw out a perfectly good washer and dryer just to upgrade to newer eco-friendly models. This is because it will take years for you to recover the cost of the new appliances from reduced energy bills, not to mention the waste of throwing out the perfectly good old ones.

When to Say “Yes” to Upgrades….

If you are planning renovations and upgrades for your own enjoyment, this is the perfect time to incorporate eco-friendly technology and materials. In fact, smart home tech is usually the easiest upgrade to install in a home and has a great return on investment. This is because any new appliance installed most likely has the technology to connect to your devices – for example, the air conditioning and lightbulbs. By using such technology, you can control when these devices are on or off, ensuring that you are being efficient with your energy use.

For homeowners who are planning to move, eco-friendly upgrades are almost a necessity. For the majority of homebuyer’s energy efficiency and eco-friendly features rank very high on their list of must haves in a home. As you begin to prepare your house to sell, you will want to incorporate as many environmentally conscious amenities as possible. Even though using more eco-friendly materials can be costly, the investment will pay off in the final sale of the house. Featuring a home packed with new energy efficient appliances and smart home tech is enough to get attention. Plus, if you highlight natural materials like wood and stone in any upgrades the home is sure to sell quicker. The bottom line is that any eco-friendly features you add to the home when you are preparing it to sell are sure to pay for themselves and then some when it comes to the final sale price.

Skip the Upgrades and Sell Quickly….

If you are planning on selling your house and adding eco-friendly features sounds too expensive and time consuming, we have a solution for you. Sell your house to an all-cash buyer. At Gulf State Homebuyers, we buy homes in any condition so there is no need to worry about upgrading to sell. We simply conduct our own free, no obligation appraisal and make you an offer on the very same day. Our offers are very competitive, especially when you consider all the time and money you save by skipping the eco-friendly upgrades. If you like our offer, just sign your name and you are free to go find the new eco-friendly home of your dreams!

 

Homes come in all shapes and sizes and when thinking about buying a new home, it is important to consider its layout. Let’s take a look at some home styles to help you determine which type of home is right for you.

The Fixer Upper

Fixer uppers are great for a number of reasons and work well for a variety of homeowners. To start, buying a home that needs a little work can be a great entry point for first time home buyers because they are generally priced much lower than other homes on the market. They can also help home buyers stretch their budget and get into a nicer neighborhood or a larger home. Next, there is the ambitious homeowner who sees an investment opportunity and can turn the house around for a profit. Lastly, the potential homeowner that comes as a surprise in the fixer upper category is retirees. This sounds opposite to the typical picture of retirement, but there is a large subset of retired people who enjoy light home improvement as a hobby.

Townhouse

The townhouse is the ultimate choice for maximizing space in areas where property values are high. Town homes are crowded together and share side walls with their neighbors, but on the inside, they are quite spacious. This is because your typical townhouse has multiple stories to make the most of the smaller lot. The main draw of the townhouse is location. Homeowners who like lively neighborhoods full of entertainment and great food are a perfect fit for a townhouse. The location of these homes also makes them great for people who want to shorten their commute since they are usually located closer to city centers.

Contemporary

Contemporary home design has continued to grow in popularity over the years to the point that it is difficult to find a house on the market that isn’t boasting an open layout in the kitchen. This is because contemporary design has several advantages that older style homes just aren’t equipped to handle. The open floor plan is the most famous feature in contemporary home design; it earned its popularity from its versatility, which makes this style home great for dynamic homeowners and families who are continually evolving. The open spaces help bring families together and feel more connected because they have the space to be independent but the openness to still be in view of each other. This same open space also makes contemporary homes great for entertaining. Plus, an added bonus, the materials used to build these homes are usually very eco-friendly and can save homeowners a ton of money on utilities.

Cottage

These homes are perfect for people who don’t require much space. Simple small living and even minimalism are big perks for people who enjoy cottage homes. They are often found in beautiful historic neighborhoods that are very quiet and safe. Also having a small footprint means less maintenance and lower utility bills, which makes them a good fit for retirees and seniors. There is also a growing number of homeowners who want a smaller home for budget and environmental reasons, and these small houses certainly fit the bill.

Ranch

The ranch home is the most popular style home in the United States and for good reason: Its simple one-story layout can be made to fit anyone’s style or taste. These homes come with large backyards, which is great for growing families – they can use the space for entertainment or to add more bedrooms. On the other end of the spectrum seniors enjoy the single-story layout that makes the house safe and practical as they age. They are so versatile that it seems the only drawbacks to these homes are that they remain expensive due to their popularity; furthermore, they are found further out in the suburbs which could add to your commute.

Get into the Home of Your Choice!

If you think you might want to move into a home that better fits your style, but you don’t want to hassle with all the time and money that goes into selling your house, we have a solution for you. We are Gulf State Homebuyers and we buy homes in the Huston and Baytown areas for all cash. Selling to and all-cash buyer means that you can skip the hassle of selling your home on the open market and get into the home that’s right for you, fast! We can close in as little as five days, so contact us today for your free appraisal and we will make you an offer that very same day!

 

Everyone has been talking about tiny homes and minimalism lately. Everything from new TV shows to documentaries are showing us all the clever, beautiful, and just plain weird ways people are living in houses the size of a single room. So, is this tiny home trend actually a possibility for you?

It’s not impossible – you simply have to evaluate where you are at in your life and whether or not the idea is going to fit your personality. To begin with, if you have a walk-in closet with new outfits for every day of the year, the idea might be more like a distant dream. Certain crafts and hobbies make these homes a bit less practical as well. However, there are many perks to living in a tiny home. Here are just a few of the reasons for living small:

Financial Benefits

A tiny home is the cheapest way to become a homeowner and escape the renters trap. This is not only due to their size, but also to the fact that the vast majority of these tiny homes are pre-fab and can be delivered to anywhere in the country. The ability to mass produce homes in a warehouse drives the price of an already inexpensive home down even further. Tiny homes enjoy huge savings beyond their initial price tag as well. The small size equals small utility bills since there is virtually no wasted space for inefficiency. Affordability and the ability to save money is the number one reason people jump on the tiny home band wagon.

Travel Opportunities

Many of the tiny homes that we see on TV, social media, and even documentaries are beautifully converted busses. Though there is a small band of nomads wandering around Europe and North America in these fantastic tiny homes on wheels, the dream of traveling in your permanent home is more complicated than it appears. It is obviously possible, but the specific group of people who pull it off are either freelancers who can make a steady paycheck online or influencers who are paid by sponsors to make their products look good while they are on the road.

If you fit into that niche then by all means, go live the dream – but what we really mean by travel is using the money you save by living in a tiny home for travel and experiences. Millennials in particular are notorious for passing on expensive homes and cars in exchange for travel and entertainment. It’s not a bad philosophy when you think about it. So, if you think extra income for travel is worth the tiny living space, then the tiny home might be right for you.

Environmental Concerns

One growing reason for the popularity of minimalism and the tiny house trend is a growing concern of the impact we have on the environment. As we mentioned before, tiny homes are very efficient – this means that they are helping the environment on a number of levels. For starters, not a single ounce of space in a tiny home is wasted, so heating, cooling, and lighting takes very little energy to begin with, but none of it is wasted ether.

Also, living in a tiny space forces you to have only the bare essentials. The reason this is eco-friendly is because every time you buy a shirt that you don’t wear or a kitchen appliance you use once and then put in a cupboard, never to be seen again, it creates waste. Tiny homes create tiny waste across the board which is good for the planet.

Is a Tiny Home Right for You?

One big thing to take into consideration is that the tiny home trend is great for a long list of reasons, but long-term living is not one of them. People usually live in small homes to break free of the constraints and financial obligations that all their stuff brings with it. Many times, starting a family will put an end to the joy of owning a tiny home simply because growing families need space. So, if a tiny home seems right for you, just remember that you will eventually want at least a cottage when your tiny home has served its purpose.

However, if you want to sell your home for a tiny home and use the extra cash to travel, we have a solution for you. We are Gulf State Homebuyers and we will buy your home for cash and close escrow in as little as 5 days so you can move into a tiny home right away!

 

Home buyers today are looking for convenient layouts that promote comfort, organization, flexibility, and efficiency. Buyers are also considering homes that can adjust to any stage of life and are low maintenance with low monthly utility bills. Most importantly buyers are looking for homes that are ready for move in.

Buyers who pay top dollar for a home want to know that they will not be putting more work into it any time soon. New home buyers want a home that has passed all inspections, has a new or pristine roof, updated appliances, and a new HVAC system. Homes in excellent condition take the stress out of the purchasing process and make it easier to close a deal.

If you are looking into selling your home and it is not fully renovated, don’t fret, there are many features you may already have that buyers want. Let’s take a look at the top 5 must-haves for new home buyers.

1 Open Floor Plans

This trend has been holding steady for quite some time now and for good reason – People’s daily lives and social patterns have changed significantly between generations. Open floor plans give families more freedom to use space as they see fit while also allowing them to stay close and connected. By removing the walls between the kitchen, living room, dining room, and/or other parts of the house, residents can move freely throughout the home; plus, the extra space makes it easy to entertain large groups.

2 Hardwood Floors

Hardwood floors are one of the most desirable features a home can have. People love the timeless beauty of wood and appreciate its durability and easy maintenance. It is definitely a luxury that is expensive to install, but it can add up to 2.5% to a home’s sale price. This makes the upgrade a good investment if it’s time to replace your current flooring and accounts for some of hardwoods enduring popularity.

3 Extra Storage

This may come as a surprise; however, many first-time buyers are attracted to the prospect of more space after years of apartment living. Traditional storage areas like attics, basements, and garages are high on the list of must-haves for new home buyers. What attracts buyers even more is if the spaces are finished with built in cabinets, cupboards, shelving, or even a completely extra room. Buyers like this because of the easy access it provides to the storage areas and the added ability to keep things organized.

4 Fully Renovated Kitchens

Kitchen upgrades are highly sought after by homeowners and home buyers alike. This trend is based on where people spend the most time in their home and the kitchen usually tops the list. This is probably thanks to the open floor plan concepts that are so prevalent in home building today. As a result, the market continues to be focused on homes with beautifully upgraded kitchens; these upgrades can help maximize the value of any home. Upgrades can be as simple as a matching set of new appliances but buyers are more drawn to completely remodeled contemporary kitchens with features like granite or quartz counter-tops, hidden or pullout storage for utensils, and large pantries. Kitchens designed to eat in with large center islands fetch the highest sale price because they eliminate the need for a formal dining room.

5 Technology

Technology and smart home features are well on their way to becoming the most desirable amenity a new home buyer could want. Devices can be useful in any room of the house and cover a range of amenities, from added security to energy efficiency. Much of the technology is easy to upgrade like thermostats, video doorbells, and lighting. Plus, it can all be conveniently controlled with any mobile device. The limitless possibilities of smart home technology coupled with today’s lifestyle is what is making this new trend a must-have for new home buyers.

If you are looking to sell and you don’t feel that your home has enough of the must-haves for new home buyers, don’t worry. You don’t have to spend tens of thousands of dollars getting your home ready to put on the market. You can sell to an all cash buyer instead. We are Gulf State Homebuyers and we will buy your home as-is. We simply carry out our free appraisal at no-risk to you and give you a competitive offer on your home that very same day! So, stop worrying about what your home doesn’t have and start considering the top 5 must-haves for your new home today.