The big day is fast approaching and your moving into your new home. Despite the excitement though, you are likely faced with the daunting task of packing and moving. What should you pack and when? What should you throw away? What should you give away? And what should you put in storage (if your new home isn’t as large as your current home)?

Professional organizers agree that systematically approaching your belongings will help make the process easier. All you need to start is three boxes labeled:

—————————–

Keep

Trash

Donate

——————————

Now start with the biggest area first like the master closet or the storage room. Pick up something and ask yourself, “When was the last time I used this?”

If your answer is more than six months and it isn’t a seasonal item, ask “Is it broken or usable?”

If it is broken, put it in the ‘Trash’ box.

If it is usable, put it in the ‘Donate’ box.

———————————

When your ‘Keep’ box is full, tape it up, label it, and set it off to the side. Also, make sure you label specifics on each box. This will make moving the boxes into the new house easier.

Examples:

Living Room

Picture Frames & Knick Knacks

____________

Kitchen

Cleaning Supplies

____________

Bathroom

Toilet paper

____________

Taking the time to label your boxes with specifics will keep you from having to open 10 boxes just to find your toothbrush and toothpaste.

As you fill the ‘Donate’ box, transfer the items to a garbage bag and put them in your trunk. Stick a sticky note on your steering wheel to drop off at Goodwill or another. By doing this gradually through the packing process, you will keep your loads smaller and more manageable and you will keep your donations under $250. Remember, if your donation is over $250, your will be required by the government to turn in a receipt. Make sure you jot down the items you are donating and if you itemize your taxes, use one of the free services like ‘It’s Deductible’ through Turbo Tax to calculate your donations.

Before you know it, you will have packed up your house and relieved yourself of some clutter.

There is nothing like moving into a new home organized and clutter free!

That is where Arlington comes in (more information about Arlington).

Nestled close to the Memphis city limits (45 minutes from downtown), but not inside, Arlington offers a close knit community for those tired of city life.

From lakes to walking trails, HOA’s to community playgrounds, and numerous community events, Arlington offers something for everyone. Arlington offers great public schools, local stores, and a higher safety rating than some of the other communities nearby. Additionally, homes in Arlington can be found to accommodate all budgets, especially given the economy and the way many homes are priced below appraisal value.

What are the various neighborhoods in Arlington and which ones have homes for sale?

North of I-40

(as of 4/10/2012)

South of I-40

(as of 4/10/2012)

If you want a neighborhood with a small lake and walking trail, Hidden Meadows is the place for you. There are other neighborhoods that have voluntary or mandatory HOAs (read more about HOAs).

Bottom line . . . whatever you are looking for, you can find a home that fits your budget and needs in Arlington.

Give me a call and let me help you find the home of your dreams (Learn about finding your dream home here).

Jon Moultrie

901-867-1000

Image: Idea go / FreeDigitalPhotos.net

It is fun to dream and imagine a post-renovated home and it is easy to think, “I can do that.” Some projects, though, should be left to the professionals regardless of how many episodes of Sweat Equity you have watched. Projects involving electrical or plumbing elements should involve a licensed contractor.

Also, some renovations* – while trendy and fun – will not add value to your home.

According to the National Association of the Remodeling Industry (NARI), you should take a little quiz before taking on a remodeling project.

To DIY or NOT?

Answer Yes or No:

1. Do you enjoy physical work?
2. Are you persistent and patient?
3. Do you have reliable work habits—meaning that once the project is started, will it get finished?
4. Do you have all the tools needed and, more importantly, the skills required to do the job?
5. What quality level do you need for this project? Are your skills at that level?
6. Do you have the time that will be required to complete the project? (Always double or triple the time estimated for a DIY project, unless you are highly skilled and familiar with that particular project.)
7. Will it matter if the project remains unfinished for a period of time?
8. Are you prepared to handle the kind of stress this project will create in your family relationships?
9. Do you know all of the steps involved in the project?
10. Have you gotten the installation instructions from the manufacturer to determine whether this is a project you still want to undertake? (Most manufacturers will send you installation instructions before purchase to determine whether the product will meet your needs.)
11. Is this a job you can do completely by yourself or will you need assistance? If you do need assistance, what skill level is involved for your assistant? If you need a professional subcontractor, do you have access to a skilled labor pool?
12. Are you familiar with your local building codes and permit requirements? (Some jurisdictions require that the work be completed by a licensed and bonded professional in order to meet code.) It’s best to check these requirements before beginning work on the project.
13. What will you do if the project goes awry? (Most contractors are wary about taking on a botched DIY job, and many just won’t take them.)
14. Is it safe for you to do this project? (If you are not familiar with roofing or do not have fall protection restraints, you may not want to venture into a roofing job. Similarly, if you know nothing about electricity—leave it to the professional. Some jobs can be fatal if not performed correctly. Your health and safety should be the primary concern. Never enter into a DIY project that would jeopardize either.)
15. Will you be able to obtain the materials you need? Who will be your source of supply? Will they deliver?
16. Are you attempting to do-it-yourself for financial reasons? If so, have you looked at all of your costs, including the cost of materials, your time, and the tools you need to purchase? If you are new to the DIY game, you may also want to look at the cost to correct any mistakes you may make—i.e., the damage factor. Will it still be a cost-saving venture?
17. If you are trying DIY for the satisfaction of a job well done—can you ensure that the job will be “well done”? If it doesn’t come out right, how will you feel? Will you be able to afford to redo any unsatisfactory work?

If you answered yes to eight or more of these questions, you might attempt a DIY project. But before you run for the nearest hardware store, revisit those questions you marked “No” and carefully consider the potential problems you will face in those areas if you proceed with the project. Hiring a professional might still be your best choice. NARI suggests that you be prepared and take your time in selecting a home improvement partner and reminds consumers that such a project can be one of the most important investments that a homeowner can make.

(Source: NARI, “Do it yourself or hire a contractor?”)

____________________________________________________________

For those of you who answered yes to eight or more questions, the following projects will give you the biggest bang for your buck:

1. Steel Entry Door Replacement (129% return)

A steel entry door adds energy efficiency, security, and instant curb appeal to your property. An average steel door costs $139 – $350.

2. Attic Bedroom (82% return)

Adding additional livable space to your property means being able to charge more for rent and improving the appraisal value. Although this project is expensive, it can have significant returns.

3. Wood Deck (81% return)

Just like building an extra bedroom adds more living space, building a wood deck expands the living space into the yard. In areas where there are many rentals available, having a deck and comfortable yard space can give your property an edge over other rentals.

4. Vinyl Siding (80% return)

Vinyl siding is a great investment for investors because it makes an old house look new and requires very little maintenance, such as painting that is required for wood siding.

5. Wood Window Replacement (77% return)

Energy efficient window replacement qualifies for a tax credit, and the windows improve the appearance and efficiency of the property.

_______________________________________________________________

Five Worst Bangs for the Buck

1. Home Office Remodel

2. Backup Power Generator

3.Sunroom Addition.

4. Master Suite Addition.

5. Bathroom Addition.
(Read more)

_______________________________________________________________

If you would like to sell your home in the near future, give us a call and we will help you decide which projects will bring you the most return and help sell your property.

Jon Moultrie

Owner/Broker

901-867-1000

*Renovations that are home owner specific usually will not add to the value of your home. These types of renovations could make it more difficult to sell in the future. (Examples: spas with exercise pools, caterer kitchens, art rooms, yoga studios, motorcycle garages, dog spas, wine cellars and tasting rooms, helicopter pads, 3-D murals, built-in teppanyaki grills, sewing rooms and meditation rooms.)

Answer: In an economy where property values have fluctuated greatly over the past year, an HOA often provides more security to property value than neighborhoods that don’t have one.

What is an HOA?

A Homeowners Association is created by the developer of a neighborhood in order to control the appearance and maintenance of the homes and common areas. Many HOAs have guidelines for landscaping, yard sales, signs, vehicles in front of the home, noise, paint color and even window coverings. This assures a common aesthetic throughout the neighborhood making it more appealing to future buyers.

What are the fees?

The fees vary from HOA to HOA and homebuyers should take the time to review the fees and guidelines prior to purchasing in that neighborhood. Some HOAs also enforce fines if the guidelines are broken and require that each homeowner participate in neighborhood improvements. An example could be a new community pool being built, which based on the square footage of your home; you would be required to pay a percentage of the pool installation and maintenance cost.

Is a HOA right for you?

Your Realtor can work with you to best understand your personality, finances, and future goals. He will help you determine if an HOA is right for you and guide you in making the best decision for today and tomorrow.

Next week we are going to evaluate the subdivisions (subdivision map) in Arlington, Tennessee and explain to you which ones have HOAs, lakes, walking areas, and more.

It is our job to help you find your dream home!

Contact Jon Moultrie to get started.

901-867-1000

Additionally, young entrepreneurial-sorts are buying homes, living in them, and renting out the extra rooms. For some, this means having a free place to live and profiting from the rents received.

Before running out with your checkbook and a plan to buy a home, though, young people need to take a step back from their dreams and build a solid foundation for home buying.

1. SAVE

Image: David Castillo Dominici / FreeDigitalPhotos.net

While you can often purchase a home with very little out-of-pocket expense, you will get a better interest rate if you have a sizable down payment (10-20% of the purchase price). It is also recommended by Dave Ramsey and other financial advisers that you have 3-6 months of estimated mortgage payments saved. This protects you in the event that you become ill or lose your job. (Read more about getting your finances in order here.)

2. READ

Image: adamr / FreeDigitalPhotos.net

Visit your local library and study up on real estate and home ownership. The more you know, the less likely you will be to make one of the common first-time home buyer mistakes.

3. ASK

Image: Master isolated images / FreeDigitalPhotos.net

Talk to other home owners and Realtors that you know. Ask them for advice on where to buy, how much to save, and mistakes to avoid.

4. Get CREDIT

Image: Master isolated images / FreeDigitalPhotos.net

Establish good credit. Buy a car or make other purchases on credit and make the payments on time. This will establish a solid credit score, which means you won’t have to pay for credit points to get a better interest rate. A good credit score could save you as much as $5,000 on a loan.

If you think you are ready to become a home owner, get started by giving us a call and we will help steer you toward the home of your dreams.

It is often at this point, that rookie homebuyers rush the process and make multiple mistakes that they later regret.

1. Not Using a Buyer’s Agent

With the internet and the prominence of online real estate search engines, many first-time homebuyers take to searching for themselves or they drive around neighborhoods they like until they see a home they like. Once they find a home they like, they contact the listing agent to get a showing.

What’s the problem with this approach?

The listing agent is looking out for the best interest of the seller. He isn’t necessarily going to tell you the reasons that property may not be the best for you. Instead, he is going to “sell” the house – after all, that is his job.

A buyer’s agent, on the other hand, works for you and your interests. It is his job to find a home that meets the needs of your family and your budget. It is also his job to consider future moves and market values of the home you purchase. A buyer’s agent also knows how to recognize problem properties – and, yes, there are some out there.

Every rookie homebuyer needs an unbiased person who can tell them when to walk away.

2. Getting one mortgage quote

Prior to looking for a home, you will likely get pre-approved for a line of credit. But when it is time to sign a mortgage, don’t just go with the first package you find.

“Why it’s a mistake: Mortgage rates can vary a lot between lenders. According to MIAC, a mortgage and financial services industry analytics firm based in New York, N.Y., the variance can be 0.25 to more than 0.50 percentage points, depending on the loan type.

It’s definitely worth your time to do a bit of comparison shopping now. How worth it? A mortgage calculator doesn’t lie: On a $300,000 home loan at 5%, you’d be paying $279,767 in interest over 30 years. But at 5.35%, you’d pay an additional $23,320 in interest over the life of the loan.”

Always get multiple quotes and ask for referrals from friends and your agent.

3. Biting off more than you can chew

Don’t just consider your mortgage payment when deciding how much home you can afford. You must include every additional expense that will be required to maintain your home. Such expenses include: insurance, pest control, utilities, lawn care, yearly maintenance and upkeep, and more.

Also, it is fun to look at fancy homes outside of our price range, right?

Well, yes and no.

It is fun at the moment, but you risk tempting yourself with something you can’t afford. Many first-time homebuyers stretch themselves beyond their means in order to buy the “dream.”

Be a realistic and wise shopper and talk to your Buyer’s Agent about what you want and what you can afford, create a realistic budget that won’t overburden your family, and make a purchase that won’t hinder you in the future.
4. Compromising on the Important Things

Know what you want and don’t compromise.
Don’t get a three-bedroom home when you know you’re planning to have kids and will need four bedrooms. If you need an office for at-home work, make sure the home you purchase has a room that can be used as office space. Don’t buy a zero lot home if you want a large yard one day for kids to play in.

It’s true that you’ll probably have to make some compromises to be able to afford your first home, but don’t make a compromise that will be a major strain.

Another thing people often compromise on is getting the home inspected. Whatever you do, do not become emotional about a property prior to inspection. A full inspection can help you avoid purchasing a money pit or a major headache. Remember . . . know the facts before you buy.

5. Not Thinking About the Future
It’s impossible to perfectly predict the future of your chosen neighborhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.

Some questions you should ask about your prospective property include:

• What kind of development plans are in the works for your neighborhood in the future?
• Is your street likely to become a major street or a popular rush-hour shortcut?
• Will a highway be built in your backyard in five years?
• What are the zoning laws in your area?
• If there is a lot of undeveloped land? What is likely to get built there?
• Have home values in the neighborhood been declining?

Conclusion
Buying a home is the largest purchase that most people will ever make, which is why it should be done with much careful consideration. Give us a call today and we would be happy to help you avoid these mistakes as you look for your dream home.

901-867-1000

For first-time home buyers, though, all of the loan options can be a bit overwhelming. How do you choose the loan program that works best for you and your economic situation?

So let’s look at some of the options.

1. HomePath Mortgage

If you want to purchase Fannie-Mae owned properties, which are often priced below market value, this is a great option. Fannie Mae offers this financing in order to get qualified buyers into the thousands of empty properties in its possession. In addition, HomePath offers both a traditional mortgage and a renovation mortgage for home buyers.

HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed. Benefits to You, the Borrower Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only). Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. No lender-requested appraisal. No mortgage insurance; ask your lender for cost details on loans without mortgage insurance. Expanded seller contributions for closing costs allowed. Available for primary residences, second homes and investment properties. Many condo project requirements are waived; ask your lender for details.

HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000. Benefits to You, the Borrower Low down payment and flexible mortgage terms (fixed- rate or adjustable-rate). Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. Renovation amount based on appraisal “as completed” value. No mortgage insurance; ask your lender for cost details on loans without mortgage insurance. Expanded seller contributions for closing costs allowed. Available for primary residences, second homes, and investment properties. Many condo project requirements are waived; ask your lender for details.

(source: HomePath.com)

2. FHA 203k

This loan program allows home buyers to buy a home and improve it with any renovations that are necessary or desired. This loan covers renovations such as new flooring, mold removal, lead-based paint abasement, new appliances, new windows, and deck installation, but it does not include some luxury improvements.

(source: Hud.gov)

3. USDA Rural Development

If you would like to purchase a home, but don’t have money for a down payment, you need 100% financing. If the house falls within the guidelines for “rural” you can purchase the property with 100% financing. It is important to note that “rural” doesn’t mean living in the country. Instead, under these guidelines, many smaller towns and communities are eligible. Arlington, Tennessee, Fayette County, and northeast Shelby county.

Would you like more information about buying a home as a first-time home buyer? Contact us today for more information.

What has contributed to the change?

1. Housing Market

The housing market has experienced a lot of ups and downs the past few years, and as a result many people are staying in their homes rather than taking a loss when trying to sell.

2. Economics

With unemployment staggering at some of its all time highs and many homeowners having experienced layoffs, upgrading to a larger home – as was formerly the custom – is not as popular of a trend.

3. Age

As families age, older members of the community are less likely to sell and move as it is a hassle.

In spite of that, though, many people are still motivated to sell their homes. Things like having a home that is too small, getting a new job, not being able to pay the mortgage, home upkeep is difficult, and family structure change (i.e. divorce) are just a few of the reasons people decide to move in this market.

Would you like to sell your home?

Whether you need to downsize or upgrade, the Jon Moultrie Team can help you find the home that will fit your needs for tomorrow and perhaps the next nine years.

Contact us today to get started.

In addition, if you find a foreclosure with sizable equity built-in, you will profit on the future sale of your home.

Consider that 1 in every 624 homes is a foreclosure. That is a lot of homes, which means there are tons of great deals.

Foreclosures come As-Is

When you consider purchasing a foreclosure, you first must understand that most foreclosures come ‘as-is’. You can bargain with the bank about fixing the roof or repairing the plumbing, because usually the price is already below what they would like to get for the property.

Although sometimes structural damage or combined needs outweigh the value of the home, in most cases all of the renovations will be cosmetic in nature – a new coat of paint, new carpet, etc. is often all that is needed to spruce up a foreclosure.

What do I need to know?

Yes, you could go online and find various foreclosures, contact the listing agent, and go look at the property yourself. If you contact the listing agent, the property is ‘always’ going to be a great deal. After all, it is their property and they want to make a commission. Additionally, they aren’t going to go out of their way to help you evaluate the home for your current needs as well as your future selling needs.

As a buyer, remember, it doesn’t cost you anything to use an agent. They get paid on the sale of a property. So choosing not to use a buyer’s agent can be a costly decision.

If you tell your agent that you want to look at foreclosures, he will likely start by interviewing you about the areas you want to live in, how much work you would be willing to do yourself on renovations, and other information that will help him narrow your searching field. Then, rather than scrolling through hundreds of listings online, your agent will present you with a few options that are best for you. Just imagine all the time you will save on Internet searches and looking at homes. What a time saver!

Financing A Foreclosure

Purchasing a foreclosure means using non-traditional financing such as FHA 301k and 301b to get the money needed to make renovations on the home. Regulations for these loans are often changes, so check with your lender to determine which loan is best for you. Visit HUD.gov to learn more about FHA loans.

Know When to Walk Away

Once your agent starts finding foreclosures in your area, you can expect that he will be looking at a few things:

1. Are there any addition inspections that should be done on the property, such as termite, mold, or radon inspections?
2. How is the flow – functionality of the home? Although it may work for your family today, is it a floor plan that will be compelling when you try to sell in the future.

Remember . . . the average home owner moves once every seven years.

What’s next?

Contact us and let us help you find the foreclosure that is right for you.

(Photo credit: t0msk)

Whatever you flowerbeds hold, do they contain mulch?

While not necessary if you use a lot of ground cover, mulch serves a five-point purpose in your flowerbed and a three-point purpose in the value of your home.

What is the purpose of mulch?

1. Decorates and unifies your landscape. Additionally, choosing a color mulch that contrasts well with your plants will add depth and color to your flowerbeds.
2. Weed stopper. A healthy layer of mulch prevents weeds from growing saving you time and money for removing them throughout the spring and summer.
3. Retains moisture. This one is important for those of us living in the South who experience rather harsh and sometimes dry summers. Mulch helps plants have the time they need to absorb water before it evaporates.
4. Insulates the soil. Like a blanket, mulch protects the roots of tender plants and trees from harsh cold and heat.
5. Improves Soil. If you choose shredded wood or pine straw for you mulch, it will naturally break down into organic matter that is a beneficial food source for your plants, and conditions your soil.

How does mulch improve the value of my home?

1. Improves the aesthetic/curb appeal. A well-maintained yard with mulch is attractive to buyers.

Although there are many colors of mulch to choose from, if you are staging your home to sell, many professional home stagers agree that using black wood mulch provides a clean, unified look to any landscape. This mulch can be purchased by the truckload or by the bag.

If you need assistance staging your home, give us a call. We are happy to assist.

Remember our guarantee . . . sell your home in 90 days, or sell it free!

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