Can You Afford That House?

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer's current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

Utilities

The most obvious of additional housing expenses are utilities-gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.

Taxes

As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is 1.57 percent. That means for a home with a market value of $200,000, yearly taxes will run $3140.00.  To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.

Association Dues

Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance

You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.

Insurance

Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades

Unless the home you purchase is picture perfect, you'll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to "Remodeling Magazine's" 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.

Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

Can You Afford That House?

Mike Gambino is part of Prudential Patterson Realtors® and can be reached at (800) 321-8586 or contacted by e-mail at WeCanSellHomes@sbcglobal.net . You may also visit us at http://www.wecansellhomes.com/

Prudential Patterson Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

While the contents in this article will apply in most states, they may vary in your particular locale. Mike Gambino is a licensed salesperson in Missouri.

Avoid These Seller Mistakes

You want to get the best price for your home, plus sell it in the least amount of time. In a buyers' market such as the one emerging now, homes will take longer to sell. Therefore, it's important that you make the right moves at the very beginning of your homeselling process to remain competitive. Here are some common traps that many homeowners fall into and how to avoid them.

1. Over-pricing - It's easy to think your home is worth more than the current market may support, particularly after the long run-up in home prices. Since home prices have cooled in markets around the country, home sellers must be prepared to negotiate on price and terms, and stay flexible to other stipulations benefiting the buyer. Sellers must also keep their emotions in check during the process. After all, your home is special to you and your family, and you're proud of the improvements you've made over the years. But, how does your home really stand up to the others? And are those improvements important to a potential buyer?

To determine a reasonable listing price, get sales statistics on homes in the neighborhood including listing prices and actual sales prices, how long it took for the homes to sell, and government valuation comparisons. You'll also want a market appraisal on your property. Visit homes for sale in your area and compare what you see in terms of sales appeal.

2. Negligent Housekeeping - Buyers need to be able to envision themselves living in the home. Take a good, objective look at the condition of your home. Clean, well-kept homes with an updated appearance always stand out, and a little decorating appeal can go a long way. You don't have to buy new furniture to create charm, but you can put toys and clutter away, freshen up paint and carpet, make the most of window coverings, and add a few key accessories in order to send out welcoming signals.

3. Failing to Fix-It - Buyers, unless they are looking for a fixer-upper, would prefer to move into a home that is in perfect or near-perfect condition. If they have to fix the roof, a broken tile floor, the garage door, worn carpet or just about anything, this may give them pause about buying. At the very least, it may lower the value of the home in the prospective buyer's mind.

4. Not Identifying Exclusions - This can be a cause of contention just at a critical point in the sale. Be sure to specify any special sales considerations or exclusions from the fixtures and furnishings list. Generally, anything permanently fixed to the house is an asset that stays with the home after the sale. So if you intend to take your grandmother's antique chandelier that's hanging in the dining room, clearly specify that the chandelier is not included in the sale price, or better yet remove it prior to listing your home.

5. Not Understanding the Agent Agreement - Your sales endeavor will go smoothest when all parties have a clear understanding of what is expected. Understand the types of agency agreements when you sign with a real estate professional or company.

Be sure to check on fees, commission percentages, marketing plans and timeframes. Most importantly, get everything in writing. 

Mike Gambino is part of Prudential Patterson Realtors® and can be reached at (800) 321-8586 or contacted by e-mail at WeCanSellHomes@sbcglobal.net . You may also visit us at http://www.wecansellhomes.com/

Prudential Patterson Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

While the contents in this article will apply in most states, they may vary in your particular locale. Mike Gambino is a licensed salesperson in Missouri.

Where's Waldo in the Real Estate World?

In many parts of the country, selling your home right now can seem a little daunting.  There are many more homes on the market and many of these are foreclosures, though not always in the droves that the media talks about.  At least not in many markets.  This attention to real estate has in many ways traumatized buyers into hiding in the cave till the news gets better.  This is not a wise choice from a financial standpoint or an investment standpoint and has many shaking their heads as to why more people are not purchasing during this opportunity period.

If you are trying to sell your home and are facing limited showings, low or no offers, I would have to ask you to stand back and reassess your home.  Is everything being done wisely and to the best of your ability and the same would apply to your Realtor?  This is a time when you have to have things perfect or really, really close to perfect, priced properly for the market and have great appeal to even get the buyers out of the cave.

Brighten up and add color to the front of the home to enhance the curb appeal.  Your first goal is to make buyers want to stop.  Once at the front door, is the first room they enter bright, cheery and inviting.  It should be as this is your homes handshake with a potential buyer and in their eyes the decision to continue though the home.  Your home should smell clean and fresh.  Try using natural scents such as Apple Spice or Cinnamon.  Stay away from floral smells as they are not as welcomed by the general public.  Make sure all your lights and lamps have the brightest bulb allowed for each fixture.  Consider having a professional home stager work with you to give your home the most "POP".  Keep the yard clean, grass cut and leaves raked.  Empty trash cans that are in your home regularly, keep litter boxes constantly clean if you own a cat, and always place the toilet lids down.  When your home is going to be shown, the curtains and blinds should be open and allow as much natural light into the home as possible.  Having your windows sparkling clean will make it seem even brighter in a room.  When cleaning windows, clean them horizontally on the outside and vertically on the inside to make any streaking almost invisible.  It also helps you determine if you missed a spot which side of the glass it is on.

Pictures that are taken of your home and yard also need to enhance and embellish your features.  An example of a yard picture as seen below shows how most pictures are posted and below that is the polished product.  Which would catch your eye and appeal to you?

On this property both photos were used to show how much park property lay just outside the yard.  The same was done for this properties Master bedroom which is enormous compared to others in the area.  These are just a few ideas on better attracting the offer you want on the home you have to sell.

When listing your home for sale, you have to be the outstanding, priced right home and not have buyers looking for you like the Where's Waldo book.  Your home should stand out amongst the rest and not be so difficult to locate that actually finding Waldo would be easier.

Mike Gambino is part of Prudential Patterson Realtors® and can be reached at (800) 321-8586 or contacted by e-mail at WeCanSellHomes@sbcglobal.net . You may also visit us at http://www.wecansellhomes.com/

Prudential Patterson Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

While the contents in this article will apply in most states, they may vary in your particular locale. Mike Gambino is a licensed salesperson in Missouri.

Dealing with Stress!

Ah, how true it is.  We all have stress at different times in our lives and in our professions, but the ways we deal with it vary from person to person.  Some deal with it with what I call the short fuse, meaning it doesn't take much to set them off.  Others the long fuse which are the people that let their stress build up over a period of time and then go off.  Then there is that person that like me (for the most part) use the stress to motivate them to excel.  Don't get me wrong, I started out as a short fuse and then migrated to a long fuse and now I am fuse-less (again, for the most part).

I have found that going off on someone because you are stressed about something never fixes the reason you are stressed in the first place.  Sure, it may offer some temporary satisfaction that you vented your woes, but in the end you still have the situation that is causing the stress.  Channeling your stress to excel and resolve the stressful situation always works best for you and for those around you.  Remember sharing your stress with someone in a negative way can lead to adding a stressful situation to that person who may be a short or long fuse person.  If you set them off, it may just compound your stress as you have now alienated another person.

So tonight before you hit the sack, make a commitment to divert your stress into a positive way of accomplishing the task at hand and worry less about the troubles that got you there.  You just may find out it wasn't so bad after all.  Remember, trying times are only temporary and this too shall pass. 

If you can change the situation - Don't stress

If you can't change situation  - Don't stress

Coming Soon!

Coming Soon!  Have you seen this a lot in your neighborhood?  In my area many agents have sign in the yard announcing a new listing coming on the market soon.  I have actually done this myself to build anticipation in the market and also to get calls on the property prior to it actually being available to show.

Many agents have mixed views on this subject.  One problem is agents that announce coming soon and the home is not available to show for several months.  I do find that to be an injustice, but for those that may want to announce the upcoming event while the homeowners are making those last minute touch-ups that we've recommended, I see no problem.  Certainly you need to have your listing contract in place prior to placing a sign in the yard.

As an agent or consumer are you bothered by seeing a Coming Soon sign?  What does this say about the listing agent?  Personally, it does not offend me and I actually believe the agent is doing the best for the client to fully market their property.  So the next time you see the sign announcing another property will be available soon, line up your buyers to be the first one in. 

Coming soon can lead to a contract coming soon and that is never a problem for any of us.

Mike Gambino is part of Prudential Patterson Realtors® and can be reached at (800) 321-8586 or contacted by e-mail at WeCanSellHomes@sbcglobal.net . You may also visit us at http://www.wecansellhomes.com/

Prudential Patterson Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

While the contents in this article will apply in most states, they may vary in your particular locale. Mike Gambino is a licensed salesperson in Missouri.

Great Commercial Property with Tons of Exposure

Building on the left is now SOLD!  Still have the one on right available.

Great exposure and frontage on Mexico Rd just West of Mid-Rivers * Possible uses: small office, insurance agency, chiropractor, dentist or similar business * Great traffic exposure. Use AS-IS or get in and remodel to your need. Stop here and make this your new location * Property will be sold AS-IS with sellers making no repairs, nor having any inspections performed or provided * Buyer to assume all inspections for occupancy * Great price for a commercial location.  2 Separate buildings.  You may purchase 1 or both.  $165k each. 

Call Mike Gambino for more information or to schedule a showing @ 314-506-6700

Mike Gambino is a licensed Real Estate Agent in Missouri with Prudential Patterson REALTORS

Beautiful Home In Hazelwood, Missouri

Wow! Really neat 3 Bedroom, 2 Bath Home with LOTS OF UPDATES... some of which include: Furnace, a/c, roof, 200 amp electric, windows, gutters, appliances * This home also has Beautiful HARDWOOD FLOORS and loads of CUSTOM MILL-WORK throughout * A Huge and CUSTOM FINISHED Lower Level shows more of the intricate millwork and has a CUSTOM BAR AND GAS FIREPLACE * The yard has a patio and is fenced and level * First Come, First Sold!!!  Priced at just $129,900 for approximately 1160 sq. ft. of home and sits on approximately 9450 sq.ft. lot.

Sellers will also consider a lease or lease purchase.

For your personal showing, call Mike Gambino @ 314-506-6700.

Mike Gambino is a licensed Real Estate agent in Missouri with Prudential Patterson Realtors.

Yes, I Scan and so Scan You!

How many boxes of old files do you have sitting in your basement, garage, office, attic, storage building, or in the trunk of your car.  For those of us in the real estate business, we are told to hang on to all of our files for a minimum number of years.  Well, if you have been in the business awhile, the boxes pile up.  Once in awhile you even have to go back through them to find a document that a client needs and can't seem to locate.

Do you want a better way of handling this conglomerate of old paperwork?  Scan it.  Something I started doing a couple of years ago.  After a deal would close, I would scan every bit of paper related to that sale into a .pdf file and save it to my computer.  At the end of the year, I will take the folder with the years sales and save it to a CD.  Some of the benefits of doing this are, it makes it very easy at the end of the year to print-out and send copies of the clients HUD-1 to them for the purpose of tax preparation.  It also saves a ton of space.  If a client should call and say they need a copy of the survey that they can't find, I can locate it in a matter of minutes and print it or e-mail it to them.

Once I have everything saved, I generally only save the paper files for 3 years before having them shredded to protect any personal information that is contained in the file.  Using the office scanner makes the task very easy and takes very little time.

So if you want to make your life and business a little simpler and more efficient, Scan away.  You can even send your client a CD with all the paperwork related to their real estate transaction and they will love you for it.

                           - OR -      

                                                                  You Decide!

Good News, BAD NEWS

In preparing to write this blog, I was trying to find a picture to post at the top to emphasize something that has often troubled me.  Many of the posts on AR and other blog sites along with the media always seem to get the most attention from the bad news and not so much on the good.  When I looked for the picture that expressed my concern, I found it almost immediately.   Once again BAD NEWS is emphasized.

What is it in our make up that makes us crave the down side of almost anything in life?  We all profess to want to stay positive and be around positive people, help others, we want better for our kids, ourselves, the economy, the government.  The list goes on and on, yet in the same breath, we tend to do a lot of the opposite.

Maybe it's the sensationalism in the dark side of things or the suspense of not knowing what will happen next.  Could it be that we like to see how bad someone else has it so we feel better about ourselves?  I don't know the answer.

I reviewed all of the posts I have put on AR and found this to be evident.  If my post concerned a possible problem, everyone flocked to the post at nearly 5x the rate of a positive, uplifting or encouragement post.  So, now I'm confused as to if we all feel that if it is good information, while it may be great advice, I don't need to respond or if it is bad news or a trying situation, we just need to respond to help or offer advice.

While I say all this, please do not take it out of context.  If someone is in a pickle, the advice, support and encouragement is certainly welcome.  I just think that if we (and I mean the human race) paid less attention to all the bad news and focused on the good we'd be in a better place.  After all we have never heard of a serial do gooder. We can certainly get into bad situations on our own without having it compounded by spreading the gloom faster than we can finish this sentence.

Staying positive through difficult times will make you stronger and successful.  Experience is not measured in time, but in the ability to overcome our failures.

Wow! A Great Stapler to add to your Workstation!

Have you ever had one of those staplers that either never stapled properly or you had to hit it with your fist to get it to staple through more than 2 sheets of paper?  Well, no more!

I recently purchased a new stapler for my office because my electric stapler stopped working properly.  The replacement is made by PaperPro and is absolutely wonderful.  The company sells different varieties that will staple from 15 - 60 pages of paper with no more than a touch of 2 fingers.  They are spring loaded, somewhat like a staple gun but with a lot less pressure needed.  They also make a 3 hole punch that I may add to the workstation.  This is not a paid endorsement, but I felt it was worth sharing.  If your in need of a replacement or tired of fighting with the one you have currently, then give it a try.  One bit of caution.  Read the directions on loading the staples.  If you load them the way you think you should, the stapler will not function.  These staplers use standard staples.

If you own one, share your comments.  If you don't and decide to get one, let me know if you share my new joy of stapling!