Real Estate Information Archive

Blog

Displaying blog entries 1-10 of 49

Your Real Estate Resource

by The Mike Parker Team

Being a better homeowner is a full-time job.  It's not just about making better decisions when you buy and sell; it's making better decisions throughout the time you own the home.

It takes good information to make good decisions.  Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things.  Imagine how nice it would be to have a real estate information line you could call whenever you have a question.

During the purchase or sale, the obvious place to get real estate answers is your agent but where do you go the rest of the time? Since homeowners are now staying in their homes for ten to twelve years or more, they need a reliable resource for good information and advice.

Our objective is to move from a single purchase or sale to customers for life; a select group of our friends and past customers who consider us their lifelong real estate professional.   We believe that if we help you and your friends with all their real estate needs not just when they buy or sell but for all the years in between, we can earn the privilege to be your real estate professional.

Throughout the year, we'll send reminders and suggestions by email and social media that enhance your homeowner experience.  When we find good articles to help you be a better homeowner, we'll pass them along.  You'll discover new ways to maintain your property, minimize expenses and manage debt and risk. 

We want to be your "Go-To" person for everything to do with real estate.  If you have a question, please call us at (859) 647-0700.  If we don't have the answer, we'll find it for you or at least, point you in the right direction.

We're here for you and your friends...now and in the future.  Please let us know how we can help you.

Ideal Investment

by The Mike Parker Team


Rental homes are the IDEAL investment
because they offer a higher rate of return than other investments without the volatility of the stock market. With certificates of deposit and bonds at less than 2%, people need an alternative investment that they understand and with a reasonable amount of control.

In this case, IDEAL is an acronym identifying the advantages of rental properties.Ideal Investment-2.png

  • Income from the monthly rent contributes to paying the expenses and a return on the investment.
  • Depreciation is a non-cash deduction that shelters income for some investors.
  • Equity buildup occurs with amortized mortgages because each payment is composed of interest owed and principal reduction to retire the loan by the end of the term.
  • Appreciation is achieved as the value of the property goes up.
  • Leverage can increase the return on investment by using borrowed funds to control a larger asset.

These individual benefits working together make rental real estate a good investment for today’s economy. Increased rents, high rental demand, good values and low, non-owner occupied mortgage rates contribute to positive cash flows and very favorable rates of return. 

To find out more about how rentals might complement your current investment plans, contact your real estate professional.

Six Reasons to Consider Rental Homes

by The Mike Parker Team

Single-family homes offer an investor the ability to borrow large loan-to-value amounts at fixed interest rates for long terms on appreciating assets, tax advantages and reasonable control. Some of these characteristics are not available through other investments.rental advantages-2-250.png

75-80% loan-to-value mortgages are available on most residential properties up to four units. Comparatively, the stock market allows you to borrow up to 50% on a stock but if the price goes down, they will require additional cash to keep the ratio at or below 50%. If it isn’t available, your stock can be sold to satisfy the loan.

Real estate investors call getting a long-term mortgage putting an investment to bed. The fixed-rate and the 20-30 year terms are exceptions to loans for most other investments, if they’re available at all.  

Real estate tends to go up in value over time. There can be a lot of variables that affect the price like supply and demand, condition and available mortgage money, in addition to the general economy.

Rental real estate has several different tax advantages. The profits are taxed at lower, long-term capital gains rates for investors who have owned the property for more than 12 months. While the property is being rented, investors are given a non-cash deduction based on cost recovery of the improvements. Tax deferred exchanges can also be available if specific conditions are met which allow an investor to postpone paying the tax on the gain. 

It isn’t necessary to have a partner with most rental homes if the investor can qualify for the mortgage. This allows investor control to make all the decisions that an owner is entitled such as setting the rent, making improvements and determining when to sell.

Rental real estate can earn a much higher rate of return than other available investments while providing income during the holding period. It certainly is worth investigating the possibility with a real estate professional who understands and works with rental properties.

Friday HOME MATTERS

by The Mike Parker Team

Our weekly round-up of real estate-related tips and advice from around the web- Enjoy! 

 

Having pet odors inside your home can turn off potential homebuyers and keep your home from selling. Ask your real estate agent for an honest opinion about whether your home has a pet smell. 


If your agent holds her nose, here’s how to get rid of the smell... 


Easy and Inexpensive Ways to Fix Up Your Home Like a Flipper – Christina El Moussa 

If you’re anything like me, you may find that it’s all too easy to get caught up in the rush of flipping houses. I’ll admit — buying an old house, fixing it up, and flipping it for a profit is pretty exciting. But if you get too distracted by flipping houses, it’s easy to let your own home fall by the wayside. 

 

While profitable remodeling projects can be more tempting to work on, you can still benefit from tackling projects in your own home. Remodeling your home will not only up its value, but also improve the way you feel about it. After all, who wouldn’t love to cook in a newly remodeled kitchen? 

 

Here are five easy, inexpensive projects that will really make a difference in how you feel about your home. 

 

Enjoy beautiful, healthy roses with these easy tips. 

 

When you’re selling your home, you must be ready for people to pop in at a moment’s notice. And no, it’s not like when your neighbor drops by to ask you to water her plants while she’s on vacation, and leaves in five minutes without noticing how many dishes are stacked in your sink or the layer of dust on your coffee table. 

 

Nope, these people will scrutinize. And they will judge. But you’re still living in your home—how do you keep it clean enough to make a good impression, no matter the time or day? 


Some of us are just born creators. The thought of sitting still and binging a Netflix show, while nice in theory, isn't possible in reality. We'd be bored. We'd rather be out and about exploring.  

 

If this description fits your personality, then you'll feel like you already know Austin Cameron. He's a 27-year-old software developer based out of Louisville. When he's not working, electric skateboarding (huh?), and working on his next startup, he's practicing photography. And that's why we reached out to Austin. He is this month's featured Photographer Spotlight. 

What Would You Give?

by The Mike Parker Team

Yogi Berra said he’d give his right arm to be ambidextrous. While most first-time home buyers are not going to that extreme, it is interesting to see what sacrifices are being made according to the National Association of REALTORS® 2016 Profile of Home Buyers and Sellers.42271463-250.jpg

  • 43% - cut spending on luxury or non-essential items
  • 34% - cut spending on entertainment
  • 27% - cut spending on clothes
  • 14% - canceled vacation plans
    9% - earned extra income through a second job
  • 7% - sold or decided not to purchase a vehicle
  • 44% - did not need to make any sacrifices

Forty-percent of first-time buyers experienced some difficulty during the mortgage application and approval process. Single, male buyers expressed a higher incidence of difficulty than single females and married or unmarried couples.

Pre-approval from a qualified mortgage lender before the home search process begins is still considered the best advice for all buyers who will purchase with a mortgage. Your real estate professional can make recommendations for a loan officer that could help you avoid unnecessary aggravations.

Friday HOME Matters

by The Mike Parker Team

The Mike Parker Team's weekly round-up of real estate-related news & advice and homeowner tips from around the web...

photo_4818_20080128

Sales in the Snow: 5 Home Staging Tips for Wintertime

While winter isn't traditionally considered the best time to sell your home, there's no reason you can't get an offer during the colder months with the right staging. In fact, a study found that homes sold faster and for more money in the winter months, even in cold cities like Chicago. Here are five winter home staging tips that can increase your appeal to potential buyers. HouseCall (click on the source to read more)

5 Ways You Didn’t Know You Could Save for a Down Payment

Buying your first home conjures up all kinds of warm and fuzzy emotions: pride, joy, contentment. But before you get to the good stuff, you’ve got to cobble together a down payment, a daunting sum if you follow the textbook advice to squirrel away 20% of a home’s cost. HouseLogic

Trends We Love: Dark Sinks

White sinks are a classic choice we'll always love, but we've been crushing hard on all the dark sinks lately! When paired with a lighter countertop, the contrast is stunning. With dark counters, they add a rich moodiness to a kitchen or bath that is sleek and modern. It's hard to venture off to the dark side, but we love these examples of dark sinks done beautifully! Studio-McGee

15 Organizing Tricks for Inside Your Most Clutter-Prone Spots

Inside the Closet… OneKingsLane

How Much Does It Cost to Sell a House? Here's a Reality Check

Show me the money! Admit it, that’s what you’re thinking when you consider selling your house. In fact, chances are good you’ve mentally spent much of the proceeds already—on a new house you’re buying, and maybe even a nice vacation this summer. Slow down there—while selling a home can indeed bring in some sweet profits, not every dollar goes into your pocket. You also have to pay the professionals who help you unload your property. So now the question in your mind is probably: How much does it cost to sell a house? Really? Realtor.com

Rental Real Estate is Preferred Choice

by The Mike Parker Team

Real estate is the overwhelming preferred choice by Americans as identified in a recent survey. With the Dow Jones industrial average reaching record highs, it might be expected that the stock market would be the favored choice but that wasn’t the outcome.

Analysis of the report suggests that the popularity for houses could be that they are tangible assets that you can see where your money is actually invested compared to stocks and bonds which tend to be unclear where the money is invested.Best way to invest.jpg

There are several distinct advantages of homes as investments over other popular alternatives.

  1. High loan-to-value mortgages available
  2. At fixed interest rates
  3. For long periods of time
  4. On appreciating assets
  5. With definite tax advantages
  6. And reasonable control.

Another advantage of rental homes is that most people are comfortable with them. It is the same type of property that they live in but used as a rental. They have a tendency to understand the key components such as value, appreciation, rent, maintenance and financing.

Resource Central

by The Mike Parker Team

Homeowners should recognize that the same trusted professional who helped them buy or sell their home can be a valuable resource while they own their home too.

 

Think of your REALTOR® as an indispensable homeowner’s resource who can make recommendations about a variety of services that homeowners will use throughout the tenure in their home. This experience far exceeds personal experience because of the day-to-day activities working in the industry.

  • To recommend reputable and reasonable service providers.
  • To offer information about your community, nearby businesses and local agencies.
  • To solicit general homeowner knowledge such as protesting your property tax assessment, determining fair market value, determining the best improvements and other things.
  • To assist with advice and suggestions about maintenance, protecting value and saving money.

Our goal is to have a long-term relationship with you. We want to help you be a better homeowner not only when you need to buy or sell but all of the year’s in-between. We want to earn a recommendation to your friends. We want you to consider us your REALTOR® for life.

Your Best Investment

by The Mike Parker Team

According to a Federal Reserve report on Consumer Finances, homeowners' net worth is 36 times greater than that of renters. Building on that study, the National Association of REALTORS® believes that by the end of 2015, the factor will grow to 41 times greater.

 

There can be several factors that contribute to this disparity but an important one is the forced savings that is achieved due to an amortized mortgage. A portion of the payment goes to the reduction of the principal balance of the mortgage which increases equity in the home.

Appreciation is also a major contributor to homeowners’ equity. Homes, in most areas, have consistently increased in value over the long term and during the past four years have experienced solid growth. Many economists expect home prices to increase in the next five years.

Let’s look at a scenario where a qualified buyer considers three different options to see what their investment would be in five years: purchase a certificate of deposit, invest in the stock market or buy a home. The following assumptions are made: a $250,000 home with an $8,750 down payment with a 4.5% mortgage for 30 years and 3% annual appreciation; CD rate at 2% and a 5% return in the stock market.

The $8,750 would grow to $9,661 in the certificate of deposit, to $11,167 in the stock market and to $69,900 in equity with a home purchase. That is over a six times growth in the same period of time due to the amortization of the loan and the appreciation.

Check out Your Best Investment to compare possible differences in your price range. 

Talking Points with a Real Estate Agent

by The Mike Parker Team

A list of talking points can be very valuable to guide the conversation with an agent that will lead to a decision to have he or she represent you in the sale of your home.  If you haven’t been through the process before or it has been a while, the answers to these questions can reveal things about the experience and where-with-all of your candidate.

Even if you only intend to interview one agent and maybe they are a trusted friend, it is appropriate to understand how different issues will be handled.  Professionals should not feel challenged to discuss these important concerns.

1. Tell me about your experience and training.

2. Do you work real estate full-time?

3. Are you a REALTOR® and a member of MLS?

4. What is the average price of the homes you have sold and how many did you sell last year?

5. Which neighborhoods do you primarily work?

6. How many homes have you sold in my neighborhood?

7. What is your list price to sales price ratio?

8. How many buyers and sellers are you currently working with?

9. Tell me about the positives and negatives of my home?

10. Describe your marketing plan for my home and if you will use outside professionals. 

11. Specifically address Internet exposure, open houses and showings.

12. Describe how you’ll keep me informed all along the way.

13. Will I work directly with you or with team members?

14. Can you provide me with three recent references?

You might have noticed that price was not in the list of talking points.  The seller sets the price but the market and the buyer determine the value.  The agent can advise you about the proper range that will insure activity and ultimately affect your final proceeds.  The advice should be based on facts that are available to all agents as well as the prospective buyers and the appraisers.

The decision to list a home with a particular agent and company should never be based on the listing price suggested by the prospective agent

Displaying blog entries 1-10 of 49

Syndication

Categories

Archives

Share This Page

Contact Information

Photo of Mike Parker - CRS Real Estate
Mike Parker - CRS
HUFF Realty
60 Cavalier Blvd.
Florence KY 41042
859-647-0700