Second Mortgages on Tampa Bay Homes: What You Need to Know

Second mortgages on Tampa Bay homes are used by people who need to access the equity on their homes. Here’s some information to help you decide if a second mortgage is right for you.

What is a Second Mortgage?

A second mortgage is taking out a second loan on top of the existing mortgage on your home. The collateral for the second mortgage is your home. The loan process is similar to getting a primary mortgage, including the need to pay for appraisals and closing costs.

The maximum amount of the second mortgage is determined by the equity in your home. The equity is the difference between what you owe on the home and the current fair market value of your home.

Why Get a Second Mortgage?

People take out second mortgages on their Tampa Bay homes to:

• Finance home improvements
• Consolidate other debt for a lower monthly payment
• Pay for college tuition
• Invest in a business
• Pay medical bills
• Avoid paying for Private Mortgage Insurance

What Should I Consider Before Getting a Second Mortgage?

Taking out a second mortgage is a big risk because your home is your collateral on the loan. Second mortgages on Tampa Bay homes are riskier for the lender, so they usually have a much higher interest rate than your first mortgage.

According to an article in the Wall Street Journal, almost 40% of homeowners who took out second mortgages are underwater on their loans. This is more than twice the rate of owners who didn't take out second mortgages.

Make sure that you can afford the monthly payments as well as the costs associated with getting a second mortgage including the appraisal fee, closing costs, etc. Before signing on the dotted line, investigate financially safer alternatives such as refinancing, selling or renting out.

If you’re considering getting a second mortgage, please think it through very carefully and weigh all your options before making a final decision.

Would you like help determining if refinancing, selling or renting out your home is the best option for you.

Show Your Tampa Bay Home Some TLC this New Year 2012

Within the walls of your house, you’ve probably raised a family, made future plans and created years of memories. Take time this month to be thankful for everything your home has given you by giving it some green TLC this New Year 2012.

With Christmas just passed, I know it’s hard to justify spending a lot of money on your Tampa Bay home. Below are a few easy and affordable green projects for you to do this New Year 2012— and they’ll start paying off immediately!

• Buy compact florescent light bulbs. You don’t have to do this all at once. As your light bulbs burn out, replace them with these energy savers for around $3 a piece. They last about ten times longer than incandescent light bulbs and can save you close to $40 over their lifetime.
• Use faucet aerators. These only cost about $10 and are incredibly easy to install. Just unscrew your faucet nozzle or showerhead and slip the aerator in. It can cut your water bill in half by making the water squeeze through tiny holes, which makes it feel like there is more pressure. You’ll also reduce water heating bills because the less hot water you use, the less you’ll have to heat.
• Put in ceiling fans. If you don’t have these in your house, then you’re missing out on a huge energy-saver. Starting around $50, ceiling fans push hot air down and help equalize each room’s temperature — just switch the blade rotation for summer and pull cool air up.
• Replace your old toilet. Older toilets can dispense almost 3.5 gallons per flush, while modern low-flow toilets dispense as little as 1 gallon. If you’re in for more of a handyman challenge, you can purchase these for as low as $150. The more people you have in your house, the more savings you’ll see.

Not only will your Tampa Bay home and finances thank you for the green upgrades, but the environment will too.

Single with No Children: Tips for Buying a Tampa Bay Home

If you’re single with no children, it does not mean that you shouldn’t buy a Tampa Bay home. In fact, statistics from the National Association of REALTORS® and an MSNBC article indicate that 32 percent of all home buyers are single and 20 percent are single women. That’s a much higher percentage than most people would ever imagine.

Here are several advantages to buying a Tampa Bay home as a single person:

• Build equity: The sooner in life you buy real estate, the longer period of time you have to build equity.
• Save money by buying a fixer-upper: You typically have more time to work on a fixer-upper than homeowners who are married with kids.
• Buy what you want: As a married person, you have to compromise with your spouse which means you may not get the exact home that you want.

In addition to following all the typical home buying tips you read, here are some tips to implement specifically when buying a Tampa Bay home solo:

• List your wants and needs: When coming up with your list of wants and needs, think not only about today, but about what you’ll be doing in the next few years. Will you stay single? Will you be changing jobs or moving to a new area?
• Ask yourself a few questions: How long do you plan to stay in this home? Do you want or need a roommate to share the expenses? What size home do you want or need? If you don’t want a roommate, a studio condo may be the right choice for you. If you do want a roommate, a minimum of two bedrooms is going to be important.
• Consider a variety of homes and neighborhoods: As a single person, you can buy a traditional single-family home, or you can buy something less traditional such as a loft, townhome or condo. You can live in the suburbs, an urban area or somewhere in between.
• Think about the resell value: Although you don’t have children, if you purchase a single-family home in the suburbs, buy one that is in a good school district and neighborhood in order to get a good resell value. If you purchase an urban dwelling more favorable to a single lifestyle, buy one that has easy access to restaurants and nightlife.
• Choose a lifestyle: Do you want a single-family home that requires lawn maintenance or a condominium where all the exterior maintenance and repairs are done for you?
• Buy an investment property: Instead of purchasing a property for your own use, you could buy one and rent it out. Or, you could do a combination by living in part of the home and renting out the rest. If that sounds of interest to you, consider buying a multi-family home – you can live in one apartment and rent out the rest.

If you’re interested in buying a Tampa Bay home, I can help.

Space-Saving Tips for Your Tampa Bay Home

If you feel like you need more space in your Tampa Bay home, consider reconfiguring the space you already have, rather than building on an addition. Not only does working inside your existing footprint save money up front, but smaller homes are cheaper to heat, cool, furnish and maintain. You’ll also save on taxes and insurance. Here are some ideas.

• Evaluate your space. How do you really live in your Tampa Bay home? Walk through it and make notes on high-use zones that should be reconfigured and underperforming areas that could be put to use.
• Open it up. Simply opening up a wall may help your flow. A minor remodel that makes your home function better will pay you back if you sell in the future. Opening up a small kitchen by combining it with adjoining rooms is among the most common remodels today, and the trend is likely to continue. An open floor plan means reduced material use, better space utilization and better light penetration, as well as more accessible space.
• Go vertical. To make a small bedroom more efficient, consider a loft bed. This will free up floor space and keep sleepers warmer at night. Space-saving bunk beds in the kids’ room or a trundle bed can accommodate overnight guests.
• Store it away. To keep clutter at bay, invest in storage systems such as built-in shelving, wall units or under-bed bins.
• Fold it away. Remember the old-fashioned ironing boards that used to attach to the wall? Now you can get a fold-out desk area that disappears when not in use.

If you need more space than these tips can provide, you may want to move to a larger Tampa Bay home. I can help you find one and purchase it at a great price.

Tips for a Successful Open House for a Tampa Bay Home for Sale by Owner

If you’re selling your property as a Tampa Bay home for sale by owner (FSBO), you'll likely be planning an open house to show it off to prospective buyers. The task of setting up, publicizing, and running your own open house can be daunting. Here are some tips to make the most of the big day:

• Advertise your Home – Put a notice in your local paper to run the weekend of the open house. Update websites where you have your Tampa Bay home for sale by owner advertised to note the time and date of your open house.
• Post Signs! - If your buyers can't find your home, they won't be buying it. Post signs at busy intersections and in front of your home. Some neighborhoods have guidelines about posting signs; be sure to follow those rules. When your open house is over, be a good neighbor and collect and save your signs. You may need them if you decide to run another open house.
• Clean Up and Hide the Clutter – Show your Tampa Bay home for sale by owner at its tidiest.
• Send Fluffy and Fido to a Friend's House – Relocate all your family pets to a different location for the day of the open house. You don't want prospective buyers’ allergies or fear of animals interfering with their enjoyment of your home.
• Remove Extremely Personal Items – Put as many family photos and portraits out of sight as you can. The idea is for your potential buyers to imagine themselves living in your home. This is harder to do if grandma's portrait is glaring at them from the mantlepiece.
• Pass the Smell Test – If your home smells musty and dusty, potential homeowners will wonder why. Smells are also a key way to evoke emotional memories. Consider simmering cinnamon sticks to give your home that cozy, fresh-baked smell. If you have the time, take it one step further and bake cookies for prospective owners to enjoy - a well-fed buyer is a happier one.
• Use a Sign-In Sheet and Fliers – Ask visitors to fill out a sign-in sheet and give them a flier listing the highlights of your home. Include answers to common questions as well as your contact information.
• Be Available, Be Polite, or – Best Option – Be Elsewhere – If you overhear snickering on the choice of wallpaper in the bathroom, keep in mind that your style isn't everyone else's taste. You are trying to sell your home, not argue the finer points of aesthetics. Answer questions if asked, but don't hover, and do not volunteer information that puts you at a disadvantage in terms of negotiations (e.g. “We must sell in a month as we're relocating to Tahiti”).

Good luck with your open house! If you’re considering hiring a real estate agent to get your home sold, I’d love to be interviewed for the job. Schedule an appointment or to get more information on how I can help.

What Do Buyers of Tampa Bay Homes Want in a Neighborhood?

To sell Tampa Bay homes, you have to get buyers to want them. So, what do they want? Based on the data just in from the 2011 National Association of REALTORS® Profile of Home Buyers and Sellers, here are what buyers want in a neighborhood in order of importance:

1. 67 percent favor a quality neighborhood
2. 49 percent of buyers said they want convenience to jobs
3. 45 percent look at the overall affordability of Tampa Bay homes in the neighborhood
4. 39 percent prefer to live close to family and friends
5. 28 percent of buyers are interested in having shopping close by
6. 27 percent want a quality school district
7. 22 percent ask for a neighborhood that is convenient to schools
8. 21 percent like to live close to entertainment or leisure activities

Assess your neighborhood. Which of the attributes most desired by buyers does your neighborhood have? Showcase those features in the marketing materials for your home:

• Mention the schools, shopping, entertainment and leisure activities that are close to your home.
• Give statistics on the quality of your school district.
• Take photos of your neighborhood that flaunt its quality.

Need help marketing your home? I specialize in selling Tampa Bay homes in your neighborhood. If you’re ready to sell your home, let me market your neighborhood and home to get it sold now.

Top Ten Reasons to Invest in Tampa Bay Short Sales

Now is a fabulous time to take advantage of today's real estate market and boost your investment portfolio with Tampa Bay short sales. Here are the top ten reasons why investing in short sales might be beneficial for you:

1. Short sales benefit buyers, sellers and investors. You get to help a lender and homeowner out of a tough financial situation.
2. You can make a nice profit because Tampa Bay short sales are priced at or below market.
3. Banks are closing them faster than ever before and, from start to finish, it’s not as painful as it used to be.
4. There is a huge inventory of short sales from which to choose.
5. The competition is low because there aren’t enough investors to gobble them all up.
6. It doesn’t take a ton of time. You’ll spend even less time when you work with a real estate agent who specializes in short sales.
7. Short sales are generally in better condition than foreclosures.
8. You can work with luxury home short sales. Luxury short sales require the same amount of time and work as short sales on less expensive homes, but the profit margins are much higher.
9. In some cases, the banks will pay closing costs and Home Owner Association transfer fees.
10. You can work real estate short sales in all markets: urban, suburban and rural areas.

Top 4 Facts You Need to Know If You’re Considering Selling Your Tampa Bay Home for Sale by Owner

Should you try to sell your home on your own as a Tampa Bay home for sale by owner (FSBO)? The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers has new information about FSBOs that can help you decide if you should try to sell your home without the help of a real estate professional.

Here are the top 4 facts you need to know if you’re considering selling your Tampa Bay home for sale by owner:

1. It’s harder to sell your Tampa Bay home for sale by owner in today’s market. FSBO transactions accounted for 10 percent of sales. That’s slightly above the record low of 9 percent in the 2010 study, but well below the record high of 20 percent set in 1987. The share of homes sold without professional representation has trended lower since 1997.
2. If you know someone who wants to buy your home, you’ll be more likely to be able to sell it on your own. Many FSBO properties are not sold on the open market. Factoring out private sales between parties who knew each other in advance, the actual number of homes sold on the open market without professional assistance was 6 percent.
3. If you’re good at attracting buyers, pricing your home and filling out paperwork, selling your [city] home for sale by owner may be the way to go. The most difficult tasks reported by unrepresented sellers are attracting potential buyers, getting the right price, and understanding and completing paperwork.
4. Hiring an agent still gives you the best chance of selling your home. 89 percent of buyers used real estate agents and brokers. 7 percent bought directly from a builder, and 4 percent purchased a FSBO.

Ready to hire a real estate professional to get your home sold? Give me a call today to discover how I can help you.