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All Posts By

Raeann Abbott

Oct 30
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Interest-Rates-In-Real-Estate-Sarasota-Realty

Effects of Rising Interest Rates on Real Estate

By | For Buyers, For Homeowners, For Sellers

The Impact of Rising Interest Rates on Real Estate

As we approach the late months of 2023 and into 2024, the real estate market is poised for potential changes due to rising interest rates. Whether you’re considering buying or selling a property or have an upcoming mortgage renewal, understanding the effects of these interest rate shifts is crucial. This article delves into what rising interest rates mean for buyers, sellers, and homeowners during this period.

Effects on Buyers: Navigating Affordability Challenges

The increasing interest rates can have a significant impact on prospective home buyers. Higher rates mean increased borrowing costs, potentially reducing affordability for new buyers. However, strategies such as locking in rates and exploring different loan options can help mitigate the challenges.

Effects on Sellers: Adapting to Changing Market Dynamics

For sellers, rising interest rates can mean a potential slowdown in demand as higher mortgage costs may deter some buyers. To adapt, sellers must strategically price their properties and focus on marketing efforts to attract serious buyers.

Mortgage Renewals: Evaluating Financial Plans

Homeowners with mortgages up for renewal during this period should carefully consider their options. Rising interest rates could lead to higher monthly payments upon renewal. Exploring early renewal or refinancing can help homeowners manage potential financial impacts.

As the effects of rising interest rates can vary depending on your role in the real estate market, it’s essential to be prepared and informed. Let’s delve deeper into each scenario:

Effects on Buyers: Navigating Affordability Challenges

The prospect of higher interest rates may impact your purchasing power. To mitigate affordability challenges:

  • Consider Fixed Rates: Fixed-rate mortgages can provide stability by locking in your interest rate. This shields you from potential rate hikes during the term of the loan.
  • Explore Loan Options: Different loan types, such as adjustable-rate mortgages (ARMs), may offer lower initial rates. However, be cautious of potential rate adjustments in the future.
  • alculate Your Budget: With higher rates, calculate how much you can afford in monthly payments, factoring in potential rate increases over time.

Effects on Sellers: Adapting to Changing Market Dynamics

Selling a property in a rising interest rate environment requires careful planning:

  • Set Realistic Prices: Understand that buyers’ purchasing power might be reduced due to higher rates. Price your property competitively to attract serious buyers.
  • Highlight Unique Features: Emphasize the unique selling points of your property to differentiate it in a potentially more competitive market.
  • Be Patient: The sales process might take longer as buyers assess their options. Patience and effective marketing will be essential.

Mortgage Renewals: Evaluating Financial Plans

Homeowners facing mortgage renewals can take proactive steps:

  • Review Terms: Understand the terms of your current mortgage and any potential rate adjustments upon renewal.
  • Explore Early Renewal: Consider renewing your mortgage early to secure a lower rate before further increases.
  • Refinancing: If you’re concerned about higher payments, explore refinancing options to secure a more favourable rate.

As interest rates rise in late 2023 and into 2024, the real estate landscape is set for changes. Buyers, sellers, and homeowners should be aware of the effects these shifts can bring. Buyers need to navigate affordability challenges, sellers must adapt to changing market dynamics, and homeowners should evaluate their financial plans. By understanding these impacts and being prepared, you can make informed decisions in the evolving real estate market. Remember, staying informed and seeking professional advice are crucial steps in making the best choices for your real estate journey.

Oct 30
0
Free Home Staging for Sellers - Sarasota Realty

Benefits of Staging Your Home When Selling

By | For Homeowners, For Sellers, Home Staging & Interior Design

Selling your home is a significant endeavour, and in today’s competitive real estate market, making a lasting impression is crucial. One strategy that has gained immense popularity is home staging. In this blog post, we’ll delve into the numerous benefits of staging your home when selling. But what sets us apart is that we offer home staging free of charge! Unlike other realtors who burden you with hefty fees, we believe in helping you maximize your home’s appeal without breaking the bank.

Staging Homes For Lasting Impressions

 

First impressions matter, and that’s where home staging comes into play. By strategically arranging furniture, decor, and personal touches, you can showcase your home’s best features and create a welcoming atmosphere. A well-staged home captivates potential buyers from the moment they step through the door.

 

Elevating Visual Appeal

 

Professional home staging enhances your property’s visual appeal in listing photos and during in-person showings. Bright, airy spaces with carefully curated furnishings make it easier for potential buyers to visualize themselves living in the space, increasing their emotional connection to the property.

 

Showcasing Functional Spaces

 

One of the key benefits of staging is its ability to highlight the functionality of different spaces. Whether it’s turning an underutilized corner into a cozy reading nook or transforming an empty room into a home office, staging demonstrates the versatility of your property.

 

Standing Out in a Competitive Market

 
The real estate market is competitive, and staged homes stand out. They leave a lasting impression on potential buyers, making your property more likely to be remembered among a sea of listings. Staging can help your home shine brighter and command attention.

Sarasota Realty FREE Home Staging

 
Unlike many other realtors who charge significant fees for home staging, we take a different approach. We believe in your home’s potential and are committed to helping you present it in the best light possible. That’s why we offer comprehensive home staging free of charge!

No Hidden Costs, No Monthly Fee

 

Other realtors may present home staging as an attractive option, only to burden you with hidden costs. Consultation fees, staging fees, and monthly rental fees for furniture can quickly add up. With us, you can enjoy the benefits of staging without financial stress. Our free home staging covers all aspects, from initial design to final setup.
Unlock the Power of Home Staging In the competitive world of real estate, home staging emerges as a powerful tool that can make all the difference. Some advantages are creating a captivating first impression, elevating your property’s appeal, and showcasing functional spaces. While other realtors charge significant fees for home staging, we stand by our commitment to helping you succeed without financial strain. Say goodbye to hidden costs and hello to a beautifully staged home that captures hearts and sells quickly!
Don’t miss out on our exclusive offer of free home staging. Contact us today to learn more about how we can help you maximize your home’s potential and stand out in the market.
Jul 23
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sarasota-realty-tips for home maintenance

The Ultimate Guide to Home Maintenance

By | For Homeowners
Maintaining a home is a responsibility that comes with numerous benefits. By investing time and effort into routine maintenance tasks and undertaking do-it-yourself projects, homeowners can ensure their properties remain in top condition and potentially increase in value. This blog post will provide valuable guidance on various aspects of home maintenance, including routine tasks, seasonal Upkeep, and DIY projects. By following these recommendations, you can protect your investment and enjoy a well-maintained home for years to come.

 

Routine Maintenance Tasks

Regular maintenance tasks are essential for preserving the functionality and longevity of your home. This includes inspecting and cleaning gutters, changing HVAC filters, testing smoke detectors, and checking for leaks or water damage. Dedicating time to these tasks can prevent minor issues from escalating into costly repairs. Maintaining a well-functioning home ensures your safety and comfort and demonstrates your commitment to preserving its value.

Seasonal Upkeep

Each season brings unique maintenance requirements for your home. During the spring, focus on tasks such as cleaning windows, servicing your air conditioning system, and inspecting your roof for any winter damage. In the summer, pay attention to outdoor maintenance, such as lawn care, trimming trees, and cleaning your patio or deck. Fall is ideal for gutter cleaning, inspecting and maintaining your heating system, and sealing gaps to prevent drafts. Winter calls for tasks like protecting pipes from freezing, maintaining a clear pathway for snow removal, and ensuring your heating system is in proper working order. By staying on top of seasonal maintenance, you can address issues promptly and preserve the condition and value of your home.

DIY Projects for Home Improvement

Engaging in do-it-yourself (DIY) projects can be a rewarding way to enhance your home’s appearance and functionality. Simple projects like painting walls, installing new light fixtures, or upgrading cabinet hardware can give your space a fresh look without breaking the bank. DIY landscaping projects, such as creating flower beds or installing a drip irrigation system, can boost your home’s curb appeal. Additionally, small repairs like fixing leaky faucets or replacing damaged tiles can prevent further deterioration and preserve the value of your property. Remember to research and plan your DIY projects carefully, using appropriate tools and techniques, or consider seeking professional advice when necessary.

 

Exterior Maintenance and Curb Appeal

The exterior of your home is its first impression, so maintaining curb appeal is crucial. Regularly inspect your home’s exterior for signs of wear and tear, such as peeling paint, cracks in the foundation, or damaged siding. Repairing these issues keeps your home looking its best and prevents further damage. Enhancing curb appeal can be as simple as cleaning the driveway, trimming shrubs, or adding colourful potted plants. Consider power washing the exterior surfaces and maintaining a well-manicured lawn. These small efforts can significantly improve your property’s overall appearance and value.

Investment in Long-Term Upgrades

Beyond routine maintenance and DIY projects, consider investing in long-term upgrades to enhance your home’s value. This may include energy-efficient improvements like upgrading insulation, installing a programmable thermostat, or replacing old windows with energy-efficient ones. Upgrading outdated appliances and fixtures with more modern, energy-saving options can also positively impact. Additionally, renovating key areas such as kitchens and bathrooms can significantly increase your home’s value and appeal. Before undertaking any significant upgrades:

  • Conduct thorough research.
  • Consult professionals if necessary.
  • Ensure that your investment aligns with your long-term goals.

 

Home maintenance is an ongoing commitment that pays off in numerous ways. By diligently addressing routine tasks, seasonal upkeep, and engaging in DIY projects, homeowners can protect their investments, increase property value, and enjoy a well-maintained home that provides comfort and peace of mind.
Jul 13
0
sarasota-realty-sustainable-homes

Sustainable Homes: Enhancing Energy Efficiency, and Value

By | For Buyers, For Homeowners, For Sellers
In an era of increasing environmental awareness, sustainable homes are gaining traction as a vital component of a greener future. This blog post explores current best practices in creating sustainable and energy-efficient homes. By discussing renewable energy options, energy-efficient upgrades, the impact on property values, and the role of green features, we’ll shed light on how homeowners can embrace sustainability while reaping multiple benefits.


Harnessing Renewable Energy:

Renewable energy sources offer an eco-friendly alternative to traditional energy generation methods. Among these, solar power has emerged as a leading contender in the quest for sustainable homes. By installing solar panels, homeowners can tap into the sun’s abundant energy, reducing reliance on fossil fuels and minimizing their carbon footprint. Integrating solar panels contributes to environmental sustainability and offers long-term financial advantages. Through incentives and subsidies, homeowners can significantly offset the upfront costs, potentially achieving substantial savings on energy bills over the system’s lifespan. Additionally, solar-powered homes can enjoy increased resilience during power outages, as they can continue to generate electricity even when the grid is down.


Embracing Energy-Efficient Upgrades:

Energy-efficient upgrades are crucial in reducing a home’s energy consumption and environmental impact. Homeowners can significantly enhance energy efficiency and improve comfort by implementing various measures. One notable area for improvement is lighting, where transitioning to energy-efficient LED bulbs can yield substantial energy savings while providing superior quality and a longer lifespan. Another valuable upgrade is the installation of smart thermostats, enabling precise temperature control and optimized energy usage. Energy-efficient appliances like refrigerators, washing machines, and HVAC systems can reduce energy consumption. Moreover, investments in proper insulation and energy-efficient windows can enhance a home’s thermal performance, minimizing heat loss during winter and heat gain during summer. These upgrades reduce utility costs and create a more comfortable living environment.


Positive Impact on Property Values:

Integrating sustainable features in a home can positively impact its value and appeal to prospective buyers. Increasingly, homebuyers prioritize energy efficiency and environmental considerations when making purchasing decisions. Homes equipped with energy-efficient features, such as solar panels, high-performance insulation, and smart home technologies, often command higher resale values and enjoy shorter time on the market. Certifications such as LEED (Leadership in Energy and Environmental Design) or ENERGY STAR provide a stamp of approval, assuring potential buyers of a home’s sustainable credentials. These certifications validate a property’s energy efficiency, indoor air quality, and overall environmental performance, bolstering buyer confidence and contributing to a premium price. The growing pool of environmentally conscious buyers actively seeking sustainable homes makes investing in energy-efficient upgrades a wise choice for homeowners aiming to maximize property value.


The Role of Green Features:

Beyond renewable energy and energy-efficient upgrades, incorporating green features further enhances sustainability and environmental stewardship in homes. Water conservation measures, such as low-flow fixtures, rainwater harvesting systems, and drought-resistant landscaping, can significantly reduce water consumption. Furthermore, sustainable materials and practices in construction and renovation, such as recycled or locally sourced materials, eco-friendly paints, and energy-efficient building techniques, contribute to a home’s sustainability profile. The presence of green features, such as green roofs, living walls, or permeable pavement, reduces environmental impact and enhances a property’s aesthetic appeal and uniqueness. These features can create a harmonious blend of sustainability, functionality, and beauty, attracting environmentally conscious buyers who appreciate the holistic value proposition of a green home.


Sustainable homes are at the forefront of environmentally responsible living. Homeowners can make a positive difference in the environment and their financial well-being by harnessing renewable energy, embracing energy-efficient upgrades, recognizing the impact on property values, and integrating green features. Embracing sustainability in housing paves the way for a greener future and a more sustainable way of living.
Dec 28
0

What is the Impact of Canada’s Rising Interest Rates on Real Estate?

By | For Buyers, For Sellers, Real Estate

Homeowners and potential buyers closely watch the Bank of Canada’s interest rates. The interest rate rose for the first time in four years in March 2022, and another wasn’t far behind in October 2022.

The interest rate after the October and December increases was at 4.25%, and homeowners can expect a significant impact. Here are a few ways homeowners and prospective buyers will feel the pinch.

 

Why is the Interest Rate on Borrowing Going Up?

Several factors are contributing to the increase in the interest rate. At the start of the pandemic, the Bank of Canada offered some relief by dropping the interest rate to 0.25%. Borrowers then didn’t have to pay as much interest on their loans and mortgages.

However, in June 2022, we saw inflation of 8.1% – the highest it’s gone in thirty-nine years. So experts think there’s a link between the reduced interest in 2020 and 2021 and rising inflation.

Add both those factors to several mortgage providers’ stocks going down, and it’s a perfect recipe for costly mortgages.

Homeowners and prospective buyers will see the impact firsthand in their mortgages.

 

What Does the Interest Rate Increase Mean for New Buyers?

Before being approved for a mortgage to start shopping for your home, you must pass a stress test if your down payment is less than 20%. The purpose of the stress test is to make borrowers prove they can pay their mortgage expenses.

Borrowers need to prove that they can pay either the rate offered by their mortgage lender or the Bank of Canada’s five-year fixed rate – whichever is higher. High-interest rates make the stress test more challenging to pass.

Happy property owners shaking hands with real estate broker after a deal. Young couple handshaking real estate agent after signing contract.

What Does the Interest Rate Increase Mean for Mortgage Renewal?

The interest rates will affect your financial plans if you’re due for a mortgage renewal. Depending on your mortgage type – variable or fixed – the interest rate increase will affect you differently.

Interest Increase for Variable Mortgages

If your current mortgage is at a variable rate, you’ll notice the increases right away. While it’s possible that your mortgage payment won’t increase, you’ll be paying more towards interest rather than principal.

Interest Increase for Fixed Mortgages

With a fixed mortgage rate, you’re locked in at the interest rate you agreed upon at the beginning of your mortgage term. The rate won’t change until you’re up for renewal – that’s when you’ll see the increase.

 

How to Overcome the Interest Rate Increase?

Even though prime rates are on the rise, there are options for securing financing. Regardless of who your lender is, you can talk to other lenders to find the lowest rate possible.

When you change lenders, however, you’ll have to go through another stress test, and if you break your current term early to switch lenders, they can charge a fee.

When it’s time to renew your mortgage, and you’re optimistic about interest rates going down, a shorter mortgage term of three years can let you reassess sooner. A fixed-rate mortgage would lock you into this high-interest rate. A variable mortgage renewal will be a favourable decision if the rates go down, but if they continue to climb, you’ll be stuck paying less against your principal.

 

Bottom Line

There’s no right or wrong mortgage term to choose – no one can see the future. In the next few years, the interest rates look promising and will go down again. If you have a mortgage broker you trust, they can guide you through the possible outcomes of either option or explain how it can affect you.

Need a resource to point you in the right direction? Sarasota Realty knows the market and the professionals you need to transform you into a homeowner. Contact us to explore listings and get started on the homebuying journey.

Nov 25
0

How to Prevent Crime in Your New Home

By | Lifestyle

Moving into a new home is exciting – you can redecorate, do renovations, and make your house your own. You’ll want to protect this space and deter would-be lawbreakers from targeting your home.

 

Whether you’re moving to a brand-new neighbourhood or staying close to where you know, you need to protect your home from theft and damage. You can prevent breaking and entering with the right tools.

 

Crimes against property are crimes of opportunity. Limiting opportunities can make your dream home safer because the last thing you want is damage or safety issues.

 

Homeowners can take some simple steps to keep their homes off the radar of would-be thieves. We’re detailing top tips from high-tech to low-tech to make your home less vulnerable.

 

1.    Monitor Your Doors

 

Shockingly, your front door could be your home’s most vulnerable point of entry. Front doors with windows and glass detail might look stunning, but if you choose this design, protect your door in other ways.

 

Coded locks are increasingly popular. With no need to use keys, you won’t have to hide a spare under your ceramic planter in your yard. Adding a video doorbell doesn’t only protect your home but can help deter porch pirates from stealing your Amazon packages.

 

Basic strike plates that attach your deadbolt use basic short screws to secure it. Someone strong with a lot of leverage might be able to break through. Replacing the standard screws with several long screws makes your deadbolt stronger.

 

2.    Lock Your Windows

 

Especially in the summer, it’s easy leave windows unlocked even when they’re closed. But adding the extra step, particularly on main floor windows, adds an additional protection element.

 

Window sensors are a more technologically advanced option for window security. But you don’t need an authentic security system to deter would-be burglars. Adding an alarm sticker in the window without a security system can offer the illusion of an alarm to scare anyone off.

 

3.    Set Up Lights Outside Your Home

 

Motion sensor lights in your back and front yard and other doors can deter thieves from targeting your home. They’re easy to install yourself and an affordable option for a simple security solution.

4.    Set Up a Home Security System

 

Home security systems are simple to install in even the oldest homes. Almost all major telecom companies offer security solutions to your home that can be easily tracked and monitored through mobile devices, whether you’re snuggled up in the house or away on vacation.

 

There are several tiers of home security systems, so you don’t have to get complicated technology you don’t need. Videos, sensors, and alarms are just the beginning of the security system industry.

 

Bottom Line

 

Safe bedroom communities aren’t immune to the occasional bored teenage delinquent or opportunistic individuals. Protecting your home has never been easier; with products you can easily set up, from the hardware store to intense high-tech solutions managed by outside companies. With all the options, you can feel better knowing your home is as secure as possible.

 

At Sarasota Realty, we’ll help you find your next home in a safe community you’ll love. Contact us to explore our listings and ask the experts about unfamiliar communities to find what’s right for you.

 

Oct 18
0

How to Prepare for Moving Day

By | For Buyers, For Sellers, Lifestyle

Packing up your whole life for moving day can be stressful. It’s more about strategy than you may think, and something always seems to go wrong. But there are some secrets to lifting the stress of moving day and making it manageable.

 

Moving is the Perfect Time to Purge

 

Moving day starts long before the day circled on the calendar. Going through all the books, art, plants, or odds and ends is a project. In the weeks up to moving day, it’s the best opportunity to see everything in front of you and ruthlessly donate, recycle, or give away.

You don’t need to bring everything you own with you. This is a vital thing to keep in mind when you’re downsizing.

 

What Moving Supplies Will You Need?

 

Free boxes you scrounged up from your favourite stores and tons of packing tape and bubble wrap are often the go-to packing supplies. While they’re a trusty option and are popular for a reason, they’re not the only option anymore.

Stackable bins are a great reusable option and are also great for storage when you get to your new home. They also have handles that cardboard boxes don’t have, so you are less likely to hurt yourself if you’re doing the moving yourself.

 

 

What’s the Best Moving Strategy?

 

Beyond the packing process, transport hacks make the move easier.

  • Have dollies handy. They make the process go a lot faster with fewer accidents or injuries.
  • Label everything. When everything’s packed up, it all looks the same. Differentiating between your kitchen items versus your office supplies will be challenging when you get to the new place, causing a dent in your morning coffee routine.
  • Make a list of everything you have to do. It’s easy for things to fall through the cracks when juggling every aspect of moving. A list will help you remember all the moving day essentials and miscellaneous tasks, like forwarding your mail and changing your address.

The most important thing to remember is that what you pack in the truck first will come out last. You should pack a box with all the necessities you’ll need right away last, so it’s the first box out.

 

Should You Hire a Moving Company or Do It Yourself?

 

Moving yourself can be miserable, but it can also be a significant money saver. If you want to round up your friends and pay them in food, that’s a budget-friendly way to move.

Hiring a moving company is more efficient. Movers are professionals. They carry out moves daily, are experts at taking care of large items, and have insurance. If hiring movers fits your budget, it’s a great option to save yourself time and potential injuries, and you won’t have to force your friends to help.

 

Bottom Line

 

While packing up and moving is stressful, home buying can be fun. Sarasota Realty has a wide variety of listings to suit your preferences and budget, so your home shopping is smooth and straightforward. Contact us, and our realtors can help you find the right property for you.

Sep 26
0
10192 88 Street-1

How to Maximize Your Space With a Storage Shed

By | Lifestyle

Making the most of the space in your home is one of the best ways to create a comfortable, calming space. But no matter how organized you are, there are always ways to make the most of the space on your property.

Whether you’re turning your unfinished basement into a workout room until you complete it or make a mini oasis in your unused detached garage, there’s always more space to maximize. The storage shed in your yard is one of those spaces.

It has far more potential than just a place to store your lawn mower. It can be so much more with a little imagination.

 

What to Do With Your Storage Shed

 

When you live somewhere that’s below freezing for half the year, it can be tough to imagine your shed as an actual living space. But with space heaters, some insulation, and dedication, you can transform your shed into an extension of your home. If you’re struggling to decide how to use the space, here are some ideas.

 

Make Your Storage Shed a Home for Your Hobbies

 

Whether you’re a major crafter, collector, or artist, your shed can be a convenient place to house your hobby essentials and work on your projects. It’s a dedicated space away from your partner or kids where you can disappear and work undisturbed and without distractions.

 

Use Your Storage Shed as a Gardener’s Haven

 

When you’re an avid gardener, you know how many tools, pots, and accessories can accumulate in your garage. By turning your storage shed into a gardener’s paradise, you can make a convenient potting station, storage for soil, pots, and watering cans, and hooks for your aprons and gloves.

 

Convert Your Shed to a Mini Gym

 

Having a home gym isn’t always feasible inside your house if you have kids, pets, and are low on space. But a gym that’s within feet of your home makes it infinitely easier to stick to a workout routine. By converting your storage shed to a mini gym with basic equipment and weights, you’ll have everything you need to keep your exercise schedule on track.

 

Turn Your Storage Shed into the Ultimate Playhouse

 

Give your storage shed over to your kids to play in, house their outdoor toys, and leave them a place to make their imagination soar. You can design the inside to match a theme – outer space, a castle, or anything else they love – to make it a place they love to be. As a bonus, it gets them outside and encourages them to play off their electronics.

 

Bottom Line

 

When searching for a home, it’s not always about the house itself. You should also pay attention to the property for other ways to make the most of this space where you’ll be spending so much of your time. Your dream is to make a home that your whole family can enjoy and feel safe in, and that includes the storage shed, garage, and other structures on the property.

To think creatively about your next home, reach out to Sarasota Realty to explore premium listings with exciting opportunities to make the house your own.

Aug 18
0

Fixer-Upper vs. Move-In Ready Homes: Which is Better?

By | For Buyers, Lifestyle

Hunting for a new home usually comes with a checklist of must-haves and features to avoid. One of the items at the top of that list is the state of readiness you want your new home to be in. Choosing something turn-key or a home that will require renovations both have their benefits and drawbacks.

To make your home search a little more focused, here are some of the pros and cons of shopping for fixer-uppers and move-in-ready homes to guide your search in the right direction for you.

 

What is a Fixer-Upper Home?

 

If you watch home renovation shows or have looked at fixer-upper homes before, you can picture what they likely look like. There are varying degrees of fixer-uppers. Sometimes the fixes are aesthetic because of dated styles, while others need complete overhauls.

While most fixer-uppers are completely livable, sometimes you need to do immediate updates for safety or comfort. Whether you need to install new windows before winter or want to knock down walls for flow, some fixes need priority over others.

 

Pros of a Fixer-Upper Home

 

  • You can personalize the house. When you’re buying a fixer-upper, it’s the perfect opportunity to add features that fit your specific needs.
  • It’s often a better value. Buying a home that needs a lot of work tends to be priced better than move-in-ready homes. If you factor in the time and money that will go into making your home complete, it’s often a better value.
  • It can be an investment opportunity. Flipping a fixer-upper can have excellent resale value if you follow home trends and stay on budget with fixes.

Cons of a Fixer-Upper Home

 

  • You never know what hidden problems lie. Even the most thorough home inspection can’t see through walls. If you’re buying older, there’s more significant potential for unexpected problems – asbestos, structural issues, code violations, and other problems need to be addressed immediately and can be costly.
  • You may not be able to move in immediately. Depending on the problems discovered and the intensity of the work that needs to be completed, living on-site may not be possible. Having an alternative temporary living situation may be necessary, but it can also be costly.
  • It’s a lot of work. Doing the whole project yourself can take up a lot of time and sweat equity – it’s a commitment to sacrificing nights and weekends to invest in your new home. Even if you hire contractors, you’ll be responsible for managing the renovations, which can be a time commitment.

 

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What is a Move-In Ready Home?

 

A move-in-ready home can mean as little as it’s immediately ready for occupancy, but more commonly, it means there are no significant renovations or cosmetic updates needed. Turn-key homes tend to have everything a homebuyer wants or needs already, so there’s no additional investment of time or money to put into the house.

 

Pros of a Move-In Ready Home

 

  • Easier to stay on budget. With a move-in-ready home, you don’t have to keep room in your budget for repairs or renovations.
  • It may be easier to get financing. Fixer-uppers can be riskier, so when applying for a mortgage, it’s more straightforward for you and your lender to secure financing on your home purchase.
  • Ready for move-in immediately. The home buying process can be long and tiring, so being able to move in right away and reap the benefits of your home is incredibly appealing to buyers.

 

Cons of a Move-In Ready Home

 

  • There’s lots of competition in the move-in ready market. A lot of other home buyers are looking at move-in-ready homes too. The sale of these homes can move at a fast pace. Be prepared to make decisions quickly, so you don’t miss out.
  • Less chance for customization. When shopping for move-in-ready homes, buyers don’t have the opportunity to customize their homes beyond decoration, basic painting, and furniture.
  • More costly to buy move-in ready. When shopping for a move-in-ready home, you’re paying for convenience. Buying a home that’s turn-key is more expensive than buying a fixer-upper.

 

Bottom Line

 

Whatever you choose, Sarasota Realty has listings to show you the move-in-ready home you’ve been seeking or a fixer-upper that needs some extra attention. Contact us to discover all of our current listings.

 

Jul 25
0

5 Hidden Costs of Home Buying That First-Time Buyers Should Know

By | For Buyers

So, you’ve scraped together a down payment and are ready to get mortgage approval – once the bank gives you the okay, you can start actively house shopping! But hidden costs jump out at you throughout the process, even after you’ve secured and moved into your new home.

If you’ve purchased a home before, these costs aren’t a secret, but the associated fees are not so obvious when you’re taking your first steps into the housing market.

Here are a few major costs to factor into your home budget.

Home Inspection

Home inspections are necessary and worth every dollar – professionals have a trained eye for deficiencies and can help guide your negotiations. Once you have an inspection report, you have a greater sense of the home repairs you need to do sooner rather than later.

Did the inspector point out rotting shingles on your roof but only slight damage on your patio? It makes sense to follow the inspector’s recommendation and reference their report when making repairs.

Home Repairs and Updates

As perfect as your home is to you when you buy, things are bound to go wrong. Lived-in homes need repair and cosmetic updates from time to time. Experts recommend having 1%-4% of the home’s value stashed away for home repairs.

Emergency repairs can be expensive, so it’s vital to have a cushion at hand to soften the financial blow. There’s nothing worse than having your furnace go out on a -40° day and having to put it on a credit card.

Home Appliances

If the previous owner of the home is taking their appliances with them when they leave, you need to factor replacement costs into your budget.

  • Washer and dryer
  • Oven and stove
  • Dishwasher
  • Refrigerator, and
  • Microwaves

Appliances can be costly, especially if you’re going for high-end models for longevity. It’s a substantial up-front investment that will take up a significant portion of your budget.

 

Utilities

Going from renting or condo living to home ownership? For many renters, at least a portion of utilities are included, or they’re not in your name. If you’re in a condo, your condo fees take care of specific utilities.

Some utility costs to keep in mind are:

  • Internet
  • Electricity
  • Water and sewer
  • Natural gas
  • Garbage pickup, and more.

If you’re moving into a more rural property, major utility companies may charge more or not offer services altogether.

Home Insurance

Homeowner insurance differs from renter insurance – instead of simply insuring your belongings, you must insure your property for any possible damage. Your premiums can vary depending on any environmental hazards that your home is risking. And with the changing climate, premiums are going up.

You might need additional coverage for wildfire protection, flood protection, and any other hazards the insurance company deems appropriate.

Bottom Line

Buying a home costs more than the home itself. Small fees, purchases, and costs spring up during the homebuying process.

For guidance and professional knowledge of all the potential costs, Sarasota Realty is here to help you understand the costs that come with buying a home for the first time. Contact us to begin your home buying journey and use our expertise to plan for your finances.

SARASOTA REALTY p. (780) 460 2222 f. (780) 458 4821 25 Carleton Drive St. Albert, Alberta T8N 7K9