Real Estate Information

Looking for something to do with extra cash? If you own a home in Albuquerque, you could pay off your mortgage. Or you could invest your money in something else. Which option is better?

There's been no shortage of debate on this matter, with great arguments on either side. But in the end, it's a decision that will have a huge impact on your finances.

Which way should you go?

You need to consider these variables:

• Your home’s current market value
• Your mortgage interest rate
• Home appreciation in your area
• Your income tax rate
• Expectations for inflation
• An assumed rate of investment return

A certified financial planner named Justin Goodbread analyzed these variables by sung national averages in order to compare various scenarios between investing and paying off a mortgage.

As it turned out, the math favored investing. But the math isn’t the only thing you should consider. It also depends on your own situation. Goodbread offered two rules of thumb to decide:

You should pay off your mortgage early if you’re a conservative investor, in a low tax bracket with a high mortgage interest rate.

And you should invest if you’re a more aggressive investor, in a high tax bracket with a low, 30-year, fixed mortgage interest rate, and if you’re younger than 50.

What are some reasons to keep your mortgage?

• Maintaining liquidity.  Paying off a mortgage will leave you without a cash cushion in an emergency.
• Your home’s value isn’t affected by a mortgage.  The value of your home will increase over time. But this will not affect how much you owe on your mortgage.
• Mortgage interest is inexpensive. Your mortgage is secured by your home’s value, and this keeps interest rates much cheaper than credit cards and personal loans. Even better, the interest is tax deductible.

Of course, in the end, the choice of investing vs paying off your mortgage is one you should make carefully.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Whether you're moving to or from Albuquerque, it can be a very stressful and exhausting time, even if all goes as planned. And since things rarely go perfectly when you move, that stress can go through the roof. Even though you can't expect everything to go as planned, there are mistakes that can be avoided that will make it worse.

Try to avoid making these following mistakes during your move:

Not Planning

Planning for your move is realy key to avoiding stress. The moment you know you're moving, start planning. The more time to plan, the better. When it comes time to move, then you should be ready for the unexpected. If you fail to plan, this can lead to disaster. Sure, there are times when you have to move suddenly. But in most cases, you should have enough time to plan.

Moving Everything

You don't have to take verything you own to your new home. Most people accumulate items they don't need over time. So take this opportunity to declutter and get rid of extra things you won't need in your new home.

Separate those items into donations, items to sell, items to recycle or dispose of, and items to move. Then when moving day comes, you'll have less to deal with and more room on the moving truck.

Spending Money on Packing Material

If you're trying to save money, there's no good reason to spend a ton of money on packing materials that will only be used once and then disposed of. If you need boxes, check with local stores to see if they have any that haven't been broken down. If you can find newspapers laying around, that makes for great padding. You may still need to buy some materials, but you won't need as much.

Not Making a Moving Survival Kit

If you're moving a long distance, it's a good idea to put together a survival kit with a change of clothes, toilet paper, snacks, medication, water, and other essentials you may need.

Not Keeping Track of Expenses

You can write off your move from your taxes, so make sure you save receipts, bills of lading, and estimates to use on your tax return next year to deduct your moving expenses.

Keep these tips in mind, and hopefully you can relieve some stress during your next move.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

When you buy or sell a home in Albuquerque, the home inspection is a critical part of the process. A home inspection benefits all parties involved in the transaction, as it reveals what the condition of the home is and what needs work.

How can you get the most from your home inspection?  Here’s the steps of the process and how you can maximize the results.

Why Have Your Home Inspected?

If you’re selling a home in Albuquerque, the home inspection gives you the opportunity to make needed repairs, and as such, list your home for a higher value. Your home will also sell faster with fewer issues. Most people in Albuquerque want to buy a turn-key home rather than a fixer-upper.

Make sure you do your research when you hire a home inspector. The internet is a powerful way to look at reviews and work history. If you find a home inspector with a good track record, but they cost more, it’s worth it.

During the Home Inspection

Make sure you’re there during the inspection. This way, the inspector can show you the issues in person and explain options for repair. You can also ask questions and take photos. This will also help you learn about what to look for when you buy a home in Albuquerque.

Recheck and Take Notes

After your home is inspected, go back over the issues for a closer look. Whether you’re buying or selling a home, this will help with negotiations. Then you can increase or lower the asking price depending on the repairs needed.

Discuss and Negotiate Repairs

For home sellers, you can either do the repairs before the home is listed and ask for a higher price, or you can skip the repairs and lower the price. It all depends on how much time you have to put into it.

If you’re the buyer, you can ask for an asking price deduction that is equal to the estimated cost of repairs if you’re buying the home as-is. Another option is to suggest that the current owner get repairs done and then you buy it after a re-inspection following the repairs. This would be best for very expensive repairs such as for changing the entire roof or re-plumbing the entire home.

A good home inspection can make the difference between a smooth transaction and a disaster.  Make sure you find the right inspector and be involved in the process.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Is buying a second home in Albuquerque something you’ve considered? Buying a 2^nd home for retirement or a vacation home can be a great investment, as well as an indicator you’re planning well for retirement. And since finance rates are low, now is a great time to buy.

The big question though is why you should buy a 2^nd home in Albuquerque? Answering this question will help you see where your priorities are.

You Can Afford It

Can you really afford a 2^nd home in Albuquerque? Usually, people buy a 2^nd home after their children leave home and they’re headed for retirement. People tend to earn more or have more saved up by this point in life, giving them more financial freedom.

A Good Investment

Buying a second or retirement home in Albuquerque can be a great investment. But there are risks. Try to choose a home in an area that is growing, which can improve the property value over time.

Comfortable Retirement

As we’ve noted, usually its individuals in their 40s – 50s that tend to buy 2^nd homes. Most people are planning for retirement or at least thinking about it by that age. Owning a second home can be a great way to plan for retirement.

Let’s say you want to retire to a community with a sunny beach? Why not search for a home in the area you want to retire? That way you’ll already have the home and it will have increased in value until then.

Tax Benefits

If you own a home, you have to pay taxes on it, so of course we need to talk about the tax benefits. The good news is that you can write off the property taxes on a second home. And it doesn’t matter if it’s an investment, rental, or for your own use. You can also deduct interest, insurance, and depreciation against your home’s value.

Buying a second home may not be for everyone. But if it’s something you can do, take time to consider the advantages and disadvantages before you make the big move.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

It’s not rare that a person may feel they can sell their home on their own, which is called For Sale By Owner (FSBO). Many people believe that by not using a real estate agent that they’ll save money and have more control over the process.  But most of the time, they end up having more stress than those who hire an agent. What are some of the issues that people face when they sell their house on their own?

Setting the Right Price

People who chose not to use a real estate agent have a tough time setting the right price. They are emotionally attached to the house, and it’s not easy to separate those feelings.  So in many cases they set the price too high, which will drive away buyers and prolong the process.

Paperwork

Home sellers are never really prepared for all the paperwork it takes to complete a sale. In addition, some of the paperwork is hard to understand.  This is why real estate agents spend so much time training, so that they can comprehend all of that legal speak. And an agent will also handle all of the paperwork, so you do have to. This alone can be convincing enough to hire a real estate professional.

Selling in Your Desired Timeframe

Home sellers don’t always realize how long the process takes. You need to get your home ready to sell, show it to buyers, close the sale, and more. All of this can add up, making the process take longer than people expect. As such, many will set unrealistic deadlines and be disappointed and frustrated when they fall short.

Getting Your Home Ready to Sell

Most homes need to be prepared to sell.  There’s almost always some repairs to be made, along with cleaning and staging. This is a crucial part of the process that many homeowners overlook when they sell their own home. Home buyers typically will look at a home online and judge the home by the photos. If they don’t see a clean home, they will just go to the next listing.

Why go through all of these stressful obstacles on your own? Hiring an experienced agent will alleviate a great deal of stress and confusion during the selling process, as well as help you make more money in the end.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

If you have some extra cash on hand, what do you do with it? If you plan to make that money work for you, perhaps you've thought about investing or paying off your mortgage.

Which choice yeilds the best return? This has certainly been a heated debate, with passionate responses on both sides of the question.  Either way, it’s a decision that can have serious consequences financially.

Which way should you go?

You need to consider these variables:

• Your home’s current market value
• Your mortgage interest rate
• Home appreciation in your area
• Your income tax rate
• Expectations for inflation
• An assumed rate of investment return

Justin Goodbread, a certified financial planner, analyzed these variables, using national averages for these parameters to compare various scenarios between investing and paying off a mortgage.

As it turned out, the math favored investing. But the math isn’t the only thing you should consider. It also depends on your own situation. Goodbread offered two rules of thumb to decide:

You should pay off your mortgage early if you’re a conservative investor, in a low tax bracket with a high mortgage interest rate.

And you should invest if you’re a more aggressive investor, in a high tax bracket with a low, 30-year, fixed mortgage interest rate, and if you’re younger than 50.

What are some reasons to keep your mortgage?

• Maintaining liquidity.  Paying off a mortgage will leave you without a cash cushion in an emergency.
• Your home’s value isn’t affected by a mortgage.  The value of your home will increase over time. But this will not affect how much you owe on your mortgage.
• Mortgage interest is inexpensive. Your mortgage is secured by your home’s value, and this keeps interest rates much cheaper than credit cards and personal loans. Even better, the interest is tax deductible.

Of course, in the end, the choice of investing vs paying off your mortgage is one you should make carefully. Join us every week for more real estate advice and local Albuquerque articles.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Owning a home in Albuquerque can bring some anxiety when it comes to dealing with unexpected repairs. According to a recent report, most homeowners say that home repairs and maintenance top the list of worries when it comes to owning a home.

According to Holden Lewis, NerdWallet’s home analyst, “When you buy a home, you take a leap into the unknown. So it’s no wonder that homeowners say they’re anxious in our survey. Don’t spend your last dime on the down payment. Instead, set aside a few thousand dollars to take care of unexpected maintenance and repairs. Having an emergency stash will help you sleep better.”

You certainly can't plan for every contingency, but there are a few ways to reduce the stress of unexpected home repairs. Here's a few tips that can help.

Regular Maintenance

One sure way to reduce the chances of major repairs in the future is regular maintenance.  If you fix small problems right away, like a leaky pipe, it can prevent having to make more major repairs that could cost thousands of dollars. An annual maintenance budget that is around 2% of your home's value is an ideal goal. This budget could cover small repairs and regular servicing of HVAC and cleaning gutters and your chimney.  Basically, anything you can do to prevent accidents and problems is money well spent.

Save For Emergencies

Your parents probably taught you to save for a rainy day, and when it comes to owning a home, there can be some very raining days. Saving for unexpected damage from weather or other emergency repairs can keep you from going into further debt.  If you don't have an emergency fund, then you can try to build one by setting attainable goals. In the end, your goal should be to have several months worth of living expenses set aside.

Plan For the Worst

After buying a home, you may later realize you have larger problems to deal with, such as bad roofing or a sinking foundation. These could end up costing more than you have saved.  Before this happens, you may want to look into financing options for big ticket repairs.  This way you wan't be scrambling to finance anything beyond your savings.

Lewis says, “If savings and insurance don’t cover these high costs, your best bet might be to finance the repairs with a home equity line of credit, or HELOC. A HELOC acts like a credit card and is backed by your home’s equity. We’ve found that many homeowners get HELOCs just so they’ll have a readily available source of money in case of emergency.”

Unexpected home repairs don't need to keep you up at night. Make sure to plan now to save yourself heartache in the future.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.