What Factors Impact Property Values?

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When a house hits the market, listings tend to focus on physical details such as when it was built, architectural style, square footage, and the number of bedrooms and bathrooms.

But many other factors contribute to a home’s value — and some may be beyond your control.

These things can become important when you’re selling because they can influence the days on the market or DOM for short. Higher DOM will have a direct correlation to the sale price of your property. Unfortunately, a high DOM will usually lead to a lower selling price.

If you plan on flipping a house this could become vital to know.

Here are nine unique things that influence property values.

Things That Influence Property Values

1. Proximity to Stores and Restaurants

Homes located near good schools and green spaces have always been valued highly, but recent housing trends show properties close to popular chain stores and restaurants are also increasing in value.

For example, having a Starbucks or Trader Joe’s nearby is a big advantage.

2. The Neighborhood

Your neighborhood can positively impact your home’s value. There is no doubt it will influence the real estate appraisal.

If you have a homeowners association that provides lawn service, snow removal, a community swimming pool, or other services, it may boost your home’s value.

On the other hand, if you live in a neighborhood with dilapidated properties and numerous foreclosures, your property value could decrease. Neighborhoods with a high number of registered sex offenders also tend to have lower property values.

3. The Street Name 

Homes located on numbered streets, such as First or Second, tend to sell for less than comparable homes on streets with names. However, in major cities, such as New York, homes on numbered streets may sell for more because of historical or elite connotations.

Even an address’ suffix can play a role. Boulevards, places, and roads tend to sell for more than streets and drives.

4. Updates and Renovations

Although some prospective buyers are looking to flip a house, most are looking for a turnkey property. Homes with renovated kitchens and updated primary bedroom suites tend to be valued higher.

If you’re looking to list your home, consult with a local real estate expert to find out if the time and expense of a renovation will be worth the investment. Know the best questions to ask a Realtor before you call a contractor or tear down any walls.

5. Parking Accessibility and Garage

Homes with a garage and ample street parking tend to have higher values. Covered parking in particular commands more money than homes with only driveway or street parking.

If you own a home in a large city, your property will likely be more valuable if you live close to a train or bus station. Future buyers will appreciate the convenience, and they’ll be willing to pay for it.

6. Energy Efficiency and Smart Tech

There was a time when video-camera doorbells, voice-activated lighting, and heat activation from a cellphone seemed like features from a futuristic movie. But these smart-tech devices are becoming increasingly common and desirable in homes.

Beyond convenience, smart tech offers homeowners peace of mind, and buyers are willing to pay for that.

Buyers also want energy-efficient homes that reduce utility costs over time. Buying a home is one of the most significant purchases a person will make in their lifetime, and it pays to have long-term cost savings.

7. Trees and Landscaping

A home’s curb appeal can positively or negatively impact its value. A home with established trees and gardens will likely sell for more than a home with a patchy strip of grass.

If you’re looking to add value before selling, consider adding low-maintenance landscaping. Plant a couple of trees in strategic places. That will help make a good first impression on buyers.

8. A Haunted History

Some buyers may be fascinated by true crime podcasts or ghost-hunting shows, but that doesn’t mean they’ll want to buy a home with close ties to either.

Homes that were the site of hauntings, infamous crimes, deaths, or murders are harder to sell, which lowers their value over time. If you aren’t bothered by a home’s past, you may be able to snag a haunted house at a great price. 

Likewise, homes located next to a cemetery tend to linger on the market. But living next to a cemetery comes with perks you may not have considered. Not only are the areas quieter, but the grounds are also well maintained, making a cemetery a peaceful and beautiful neighborhood.

9. Market Competition 

The market will ultimately decide how much you can buy or sell a home for. Prices are based on the basic economic principle of supply and demand. If there are more homes on the market than buyers are looking to purchase, values will drop, making it a buyer’s market.

If there are more buyers than available homes, prices will rise, creating a seller’s market. If you’re a buyer struggling to afford a down payment in a seller’s market, it might be time to learn how a side hustle can help you buy a home.

Some sellers can’t wait for the market to turn in their favor. If you’re selling your home, take a look at the best websites for selling your home by owner for tips that can help your property stand out from the crowd and turn a large profit.

Final Thoughts

When buying or selling real estate there are numerous factors that can influence property values. It is crucial to have this information so you don’t make mistakes whether you are purchasing or setting a correct price when selling.

Hopefully, some of the tips we have provided here have been useful.

First Time Home Buying Priorities: 3 Vital Things to Know

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What to Know About Your First House Purchase

Buying your first home: It’s an exciting time, and a major milestone to be celebrated. But the road to homeownership can also feel overwhelming — saving for a down payment, getting approved for a mortgage, finding the right home in the right location, and everything in between. 

A successful experience for first-time buyers — one that ends with you holding the keys to your new home — starts with careful planning and smart strategies. Read on to learn more about priorities for first-time home buyers. 

There are many questions to be answered before you’ll be fully prepared.

Sometimes knowing what not to do is just as vital as following sound buying tips.

Priorities of First Time Home Buyers

1. Prepare for Your Home Buying Journey 

Before you start attending open houses, spend some time assessing your finances and getting organized. 

  • Start saving: Not only for a downpayment but also for closing costs and moving expenses. Some first-time home buyers can qualify for conventional mortgages with as little as a 3% down payment, but remember that a 20% down payment will help you avoid the added expense of Private Mortgage Insurance (PMI). Use a down payment calculator to set a savings goal, so you can start putting money aside. 
  • Know your credit score: If you’re not sure what your current credit score is, now is the time to find out. You can get a free credit report from any of the three leading credit reporting bureaus: Experian, TransUnion, or Equifax. Ideally, you should review your credit report at least once a year to ensure your report is accurate and up to date. 

Maintain your good credit score by continuing to pay bills on time. And hold off on opening new lines of credit, applying for loans, or making other major purchases at this time.

Potential lenders want to see consistent financial behavior, so avoid risking final mortgage approval by taking financial chances for now.

  • Get preapproved: A mortgage preapproval letter is different from prequalification.  Prequalification is a baseline estimate of how much of a home loan you may be able to secure, based on an assessment of your income and other information you’ve provided. A mortgage preapproval letter is a document from a lender stating the exact amount of loan they’re willing to lend you, based on a more rigorous process that includes evaluation of your W-2s, bank statements, and credit score. 

Home shopping with a mortgage preapproval letter in hand gives you the ability to make an offer with confidence knowing it’s within your budget. It also demonstrates to a seller that your offer is serious and backed by a lender. 

2. Understand Your Mortgage Options

Mortgage loans have a variety of options, each with its own parameters and eligibility requirements. 

  • Conventional mortgages are the most common type of home loan. Some eligible first-time home buyers are able to obtain a conventional mortgage with as little as 3% down. Conventional mortgages are not guaranteed by the government. 
  • FHA mortgages are backed by the Federal Housing Administration and allow eligible buyers with lower credit scores to put down 3.5%. 
  • VA loans are available through the Department of Veterans Affairs for current or veteran military service members or qualified spouses and typically require no down payment. 

A 30-year fixed-rate mortgage means the loan is paid off in 30 years at an interest rate that remains the same over time. A 15-year loan usually has a lower interest rate than a 30-year mortgage, but with a larger monthly payment. 

It’s also important to be clear with your own goals and assess how much house you can afford, according to the bank, and how much house you want to afford.

If you have other debt to contend with such as student loans, car payments, or credit cards, you may choose to spend well under budget in order to keep your debt-to-income ratio in check. 

3. Make Informed Buying Decisions

With your finances in order and preapproval letter in hand, it’s time to give serious thought to home shopping.  

  • Find the right agent: Working with an established real estate agent is a smart choice, especially for a first-time home buyer. A buyer’s agent works on your behalf, helping you find homes that suit your needs and budget, gives advice in crafting an offer and helps to navigate the negotiation process all the way through to closing.   

Depending on your needs, you might consider working with a flat-fee real estate agent or broker which could net you significant savings in commission rates or fees.  

  • Find the right location: The old real estate adage “location, location, location” still holds true. Research neighborhoods you’re interested in and attend open houses, either in person or virtually. Check out the neighborhood’s walkability score, research property value trends, crime rates, and other municipal information like economic trends or planned improvement projects. 

If you’re moving to an area you’re not familiar with, for a job opportunity. For example, make sure you understand the cost of living in the new location.

Use the expertise of a good local realtor who knows the area to help you find the right house in the right location at the right budget. 

  • Find the right home: In contrast to previous generations, many millennial home buyers are prioritizing shorter commutes in walkable communities with better schools and amenities. They’re seeking low-maintenance homes with smaller square footage. While single-family homes are the right fit for some, townhomes and condos offer affordable choices as well. 

You may have a mental list of must-haves for your first home, but zero in on three or four priorities to help you focus your search. What’s most important? Proximity to work? Having designated space to work from home? A home you can “grow into” with an expanding family? Urban setting or quiet suburb? Starter or forever home? 

First-time buyers who are handy and willing to take on a few projects might consider a fixer-upper as an affordable option, particularly if the home is in a desirable area. However, be realistic.

Don’t overestimate your skills, or underestimate the amount of time or money you’re willing to invest in updating an older home.

Make sure you understand the basics of the appraisal process so you don’t end up overpaying for a property or making improvements that have a low return on investment.

Knowing your priorities will help you determine what kind of home fits your goals for the next five years, the amount of time typically recommended when investing in homeownership. Staying put for a minimum of five years decreases your chances of taking a financial hit when it’s time to sell. 

Purchasing your first home is a process that takes planning, patience, and persistence, but it’s all worth it when you’re holding the keys to your new living space. 

Understanding first-time home buyer priorities are your first step to a successful purchase. Best of luck!

10 Cities Offering Incentives for Remote Workers

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The vast majority of experts say the preference for remote work is here to stay. This massive shift in where and when we work has granted many a newfound sense of freedom.

Not being forced into an office has translated into workers not being tied down to a specific neighborhood or city. 

Therefore, it’s not surprising that many workers are moving away from the nation’s dense urban centers like New York City and San Francisco in favor of suburbs and less developed areas.

Former city dwellers search for greener pastures, more space, outdoor activities, and lower taxes. Many second and third-tier cities have taken notice of this trend and are doing all they can to attract newly remote workers.

This article will cover tips for remote workers looking to relocate and ten cities currently offering various incentives for digital nomads.

Cities Offering Incentives For Remote Workers

Tips for Relocating to a New Town

While leaping to move a long distance on a whim may sound tempting, there are some things remote workers should know ahead of time in order to prevent headaches down the line.

Whether you are working for yourself or a company, you need to understand your average monthly income and expenses to know whether you can afford to live in a particular area.

Over half of Americans say they don’t track their expenses, with many of them adding that they don’t think budgeting is necessary. 

If you fall into this category, you should realize that moving to a new area without first understanding your budget can lead to problems depending on where you move.

For example, an $80,000 salary would go far in Kansas City, Mo., where there is an extremely low cost of living. Still, in San Francisco — where housing and groceries are significantly more expensive — it would be much more challenging to live comfortably.

Moreover, if you are trying to buy a home in a new city, be sure you really want to settle there for a few years.

If you decide to sell your home after less than a year of purchasing it, you’ll pay a short-term capital gains tax of 10%-37% on the home’s profit. After a year, that percentage goes down to a more manageable rate of 0%-20%.

Understanding real estate capital gains laws are always vital when buying and selling a home.

Finally, when moving to a new city, using a real estate agent can significantly help with finding a home, especially if you’re not familiar with an area.

A good agent will know about different neighborhoods and their overall vibe, schools, restaurants, property taxes, homeowners association (HOA) rules, and more.

Cities Offering Incentives to Remote Workers

1. Lewisburg, W.Va.

West Virginia offers remote workers up to a $20,000 value in cash and perks to relocate to Lewisburg. The program was created as a way to combat population loss. Participants will receive $12,000, plus other incentives like annual passes for whitewater rafting, golf, rock climbing, horseback riding, skiing, and ziplining. 

2. Ontario, Ore.

Sitting directly where the Oregon Trail meets the Snake River, this agricultural community attracts nature lovers from around the nation. The city is offering $10,000 towards new home construction, perfect for those interested in building a home from scratch.

3. Tulsa, Okla.

Tulsa currently has two programs to draw workers –  inTulsa and Tulsa Remote. Both of these organizations help newcomers establish social and professional networks in the area and cash incentives.

The inTulsa program matches out-of-state talent with employers, providing up to $10,000 in relocation incentives for those moving to Tulsa. Meanwhile, the one-year Tulsa Remote program gives $10,000 to remote workers that relocate to Tulsa and a free one-year membership to a co-working space and access to events.

4. Berrien County, Mich.

The Move to Michigan program started in October of 2020 in order to attract people to the state. It grants up to $15,000 towards purchasing a home in Berrien County, which is just 90 minutes from Chicago. Also, it includes potential perks such as a free airport shuttle, an annual pass for the Chicago commuter trains, annual memberships to a fitness club and golf driving range, and a free membership at a coworking space.

Applicants cannot be current residents of Michigan and must show that they are working remotely for a company outside of southwest Michigan.

5. Greensburg, Ind.

Greensburg, Ind., offers $5,000 in cash for moving expenses and an additional $2,000 in gift incentives for remote workers. Eligible applicants must relocate to Greensburg within 6-12 months, be at least 18 years old, and be eligible to work in the U.S.

6. Grafton, Ill.

Are you interested in free land? Then consider moving to Grafton, Ill. Right at the intersection of the Illinois and Mississippi Rivers, more than 20 lots are available, each approximately one-third of an acre. The landowner has three years to build a home on the property; otherwise, the city will buy back the land for $4,000.

7. Topeka, Kan.

The Choose Topeka program offers remote workers up to $10,000 toward buying a home or $5,000 toward paying rent their first year in Kansas. An applicant’s employer must be located outside of Shawnee County to qualify. There is a three-month waiting list.

8. Augusta, Maine

In Augusta, Maine, remote workers can qualify for a tax rebate totaling their entire state tax bill, as long as they live in Maine for the whole tax year and graduated college after 2008. There are additional benefits for those with degrees in specific fields, such as STEM. The website MakyMyMove.com estimates the total incentive value at up to $15,660. 

9. Honolulu, Hawaii

Remote workers can say aloha to Hawaii as part of its Movers & Shakas program. The deal is open to everyone, and it provides discounted airfare, hotel stays, and access to coworking spaces. 

10. Juneau, Alaska

If you’re after some true wilderness, then you might consider Alaska. Those that move can receive $1,000 per year from the Alaska Department of Revenue Permanent Fund Dividend Division.

Final Thoughts

After the covid pandemic, remote working has become far more popular. In some industries, it is here to stay. Hopefully, you can take full advantage of our guide on incentives for remote workers.