Blog – Sarasota FL House Values | 941-321-3916 Beverly Bowen

Welcome Home: 10 Tips to Turn Your Sarasota Area Neighborhood Into a Hometown Haven

Welcome Home Sarasota FL Homes

“Communities work better (students perform better, crime rates are lower, kids are safer, people live longer) when neighbors know one another better. Knowing your neighbor on a first-name basis…is a surprisingly effective first step.” 
Robert Putnam, Harvard Public Policy Professor and author of Bowling Alone

While advancements in technology have made it possible for us to connect with people from around the world, numerous studies show that it has led to a decline in face-to-face interactions.1

Places where we used to strike up casual conversations—such as a doctor’s office waiting room, bus stop or grocery line—are now filled with people looking at their smart phones, barely acknowledging those around them.

Even many families dining together or relaxing in the evenings can be caught spending more time focused on screens than each other. Is it any surprise that we’ve experienced a steady decline in community involvement?

In his book Bowling Alone, Harvard Public Policy Professor Robert Putnam “draws on evidence including nearly 500,000 interviews over the last quarter century to show that we sign fewer petitions, belong to fewer organizations that meet, know our neighbors less, meet with friends less frequently, and even socialize with our families less often.”2

How is this shift impacting our overall well being? A study by Oregon Health & Science University researchers found that having limited face-to-face social contact nearly doubles an individual’s risk of depression.3 

CONNECTING WITH YOUR COMMUNITY
If you’re considering a move to a new city or neighborhood, you may be worried about replacing the comfort and support of family and friends you’ll leave behind. Or perhaps you have completed a move but would like to meet more people, build friendships and strengthen your support system.

In this blog post, we’ll explore 10 ways you can utilize technology to foster in-person connections with your neighbors, make friends and get engaged in your local community. 

  1. JOIN YOUR NEIGHBORHOOD’S SOCIAL NETWORK

A growing number of neighborhoods are utilizing private social networks like U.S.-based Nextdoor and Canadian-based GoNeighbour. These platforms are designed specifically to connect neighbors and include an address verification process.

Residents post about a variety of topics, including neighborhood news, recommendations for local businesses, lost pets, etc. These platforms are a great way to stay up-to-date on what’s happening in your neighborhood, but don’t just use them to connect virtually. Extend an invitation to your neighbors to attend an in-person event, such as a park playdate for families, an informal soccer game or a potluck block party.

  1. ATTEND A PLACE OF WORSHIP

If you have a religious affiliation, joining a local place of worship is great way to meet people and get involved in your community. Aside from attending services, most religious institutions also host extracurricular activities to foster fellowship amongst the congregation.

Whether you are looking to join a church, synagogue, mosque or temple, there are a variety of online resources available to help you find a match in your area, including:

To make the most of your affiliation, look for opportunities to meet in smaller group settings. It’s a great way to form interpersonal relationships with people who share your beliefs and values.

  1. FIND AN INTEREST GROUP

Whatever your favorite hobby or pastime, you’re guaranteed to meet people who share your interests when you join an interest group!

The website Meetup.com has over 32 million members in 288,000 groups in 182 countries. You can search for a group in your area that appeals to you … from book clubs to running groups to professional networking, they have it all.

If you don’t find what you’re looking for, you can start your own group for a monthly fee. The site makes it easy to ask (or require) members to pitch in to cover the cost. It also enables you to promote a corporate sponsor on your page, so you may be able to find a local business to cover the cost.

Most people who join Meetup are there for the same reason you are … to meet people who share their interests. So it’s a great place to make like-minded friends in your community.

  1. LEND A HAND

Volunteering your time and talents is another good way to get engaged in your community and meet those who share a similar mission.

Most nonprofit organizations rely heavily on volunteers. Find one with a cause you’re passionate about by visiting VolunteerMatch.

You can search by cause, location and keywords, and filter your results to include opportunities that are suitable for kids, seniors or groups. Another option is to search for volunteer positions that require specialized skills. Perhaps you’re musical or maybe you’re good with computers. There could be an organization in your area that needs your talents or skills.

Lotsa Helping Hands is another site focused on connecting volunteers with those in need. Members can request help or search for opportunities to assist others in their area. Most of the volunteer opportunities involve aiding neighbors who are ill or elderly by delivering meals, offering rides to appointments or just stopping by for a visit. This can be a great way to make a direct impact on your neighbors who need a helping hand!

  1. TAKE A CLASS

Taking a class is a wonderful way to develop a skill while meeting people who share your interests and passion for learning.

Whether you want to brush up on your Spanish, finish your novel, or learn how to tango, most community colleges offer inexpensive, non-credit classes on a variety of topics.

And if you are pursuing a degree, forego taking your courses online. Opt for the traditional route instead. There’s no substitute for being part of a live community of your peers.

To search for a community college in your area, visit the American Association of Community Colleges or SchoolsInCanada.com. 

  1. ATTEND AN EVENT

Attending a live event is another way to engage with members of your community. From festivals to fundraisers to retreats, Eventbrite is a great place to search for events in your area. You can filter your search by category, event type, date and price to find something that fits your interests, schedule and budget.

Be strategic about the type of event you choose. For example, while attending a large festival might be a fun way to feel engaged with your community, it might also be harder to meet people. A retreat or a networking event may offer more opportunities for one-on-one interaction. 

  1. SHARE YOUR STUFF

Everyone’s talking about the rise of the “sharing economy” with the popularity of Uber and Airbnb. But there’s also been a rise in “sharing communities,” which facilitate the free exchange of goods among neighbors to reduce consumption and keep usable items out of landfills.

Nonprofit groups like The Freecycle Network are made up of people who are giving (and getting) stuff for free in their own towns and neighborhoods. Members can post “offers” of free items or “wanted” items they need.

The company Peerby has a similar goal of reducing consumption by encouraging neighbors to lend and borrow items they don’t often use. For example, you can offer to share your blender, rake or ladder. Maybe you need to borrow a drill, cake pan or moving trolley. Peerby enables you to request items to borrow from your neighbors and encourages you to register items you are willing to lend.

The Little Free Library is another innovative way neighbors are participating in a sharing community. Stewards build or purchase a box to house the library and fill it with books they are willing to give away. The library is usually placed in their front yard or in a public outdoor space. Visitors are encouraged to take a book they’d like to read, and in exchange leave a book for someone else to enjoy. With over 60,000 libraries in 80 countries, the organization estimates millions of books are exchanged annually among neighbors.

  1. SUPPORT A COMMUNITY GARDEN 

Community gardens have become increasingly popular in both urban and rural areas across North America. Not only do they beautify a neighborhood, they also foster community, encourage self-reliance, reduce family food budgets, conserve resources, and provide opportunities for recreation and exercise.

The mission of the American Community Gardening Association is to build community by increasing and enhancing community gardening and greening across the United States and Canada. The organization’s website enables you to search for existing community gardens in your area. If there isn’t one nearby, you might consider starting one. The site provides helpful tips and resources for organizing a garden in your neighborhood.

  1. CARPOOL WITH A COWORKER

In the spirit of joining a “sharing community,” carpooling offers many similar benefits. It presents an opportunity to form a bond with coworkers and/or neighbors during your daily commute. Additionally, you can save money on gas, reduce wear-and-tear on your vehicle, lower carbon emissions, and in many cities reduce your commute time by taking advantage of high-occupancy vehicle (HOV) travel lanes.

The success of ridesharing companies like Uber and Lyft has spurred a new wave of carpooling websites and apps that aim to revolutionize the way we commute by making it easier and more convenient to carpool. While many of these are still in their infancy stages, they are expanding into new markets and improving functionality at a rapid pace.

Kangaride Local, Scoop and Waze Carpool are just a few examples, and more are popping up every day. They are currently available in limited markets throughout the United States and Canada, but are becoming prevalent in more cities as residents opt-in. Check to see if any of these are available in your local area.

Alternatively, you can try posting on your neighborhood’s social network to see if one or more of your neighbors are commuting to a nearby location. Take turns driving and start benefiting from all that carpooling has to offer!

  1. PARTICIPATE IN WORLD NEIGHBORS DAY

The organizers behind World Neighbors Day promote it as “an invitation to share a moment with your neighbors, to get to know each other better and develop a real sense of community.”

In Canada it’s held on the second Saturday in June, and in the United States it’s held on the third Sunday in September. Participants are encouraged to organize gatherings with their neighbors to build relationships that “form the fabric of our communities.”

You can participate by attending or organizing a gathering in your neighborhood. Examples include: a block party, outdoor movie screening, book exchange, charity bake sale, volleyball game, etc. Anything that brings neighbors together in a fun and relaxed setting is a good choice!

Gatherings can be promoted through your neighborhood’s social media network, blog or listserv, or you can go the old-fashioned route and hand out flyers door-to-door. Whatever you do, be sure to make your gathering inclusive and welcoming to all. 

BE A GOOD NEIGHBOR 

As with anything in life, you will get out what you put in. It can take time to build lasting and meaningful friendships with your neighbors, but the effort you make is likely to pay off tenfold.

The tried-and-true way to make friends, expand your circle, grow your support system and get engaged in your community? Be a good neighbor yourself.

What are the best ways you’ve found to meet and engage with your neighbors? Share your success stories or challenges in the comments below!

 

Sources:

  1. Lengacher, L. (2015) Mobile Technology: Its Effect on Face-to-Face Communication and Interpersonal Interaction. Undergraduate Research Journal for the Human Sciences –
    http://www.kon.org/urc/v14/lengacher.html
  2. Putnam, R. (2000) Bowling Alone. New York: Simon & Schuster –
    http://bowlingalone.com/
  3. Bergland, C. (2015 October 5) Face-to-Face Social Contact Reduces Risk of Depression. Psychology Today
    https://www.psychologytoday.com/blog/the-athletes-way/201510/face-face-social-contact-reduces-risk-depression

 

 

Why Real Estate Investing Makes (Dollars and) Sense


Turn on the television or scroll through Facebook, and chances are you’ll see at least one advertisement for a group or “guru” who promises to teach you how to “get rich quick” through real estate investing. The truth is, much of what they’re selling are high-risk tactics that aren’t a good fit for the average investor. However, there is a way to make steady, predictable, low-risk income through real estate investing. In this blog post, we’ll examine the tried-and-true tactics that can be used to increase your income, pay off debt … even fund your retirement!

WHY INVEST IN REAL ESTATE?

One of the basic principles of real estate investment lies in this fact: everyone needs a place to live. And according to the Bureau of Labor Statistics’ most recent Consumer Expenditures Survey, housing is typically an American’s largest expense.1

But there are other reasons why real estate is a great investment choice, and we’ve outlined the top five below:

1. Appreciation

Appreciation is the increase in your property’s value over time. History has proven that over an extended period of time, the value of real estate continues to rise. That doesn’t mean recessions won’t occur. The real estate market is cyclical, and market ups and downs are natural. In fact, the U.S. housing market took a sharp downturn in 2008, and many properties took several years to recover their value. However, in the vast majority of markets, the value of real estate does grow over the long term.

The S&P CoreLogic Case-Shiller National Home Price Index, which tracks U.S. residential real estate prices, released its latest results on August 29 with the headline “National Home Price Index Rises Again to All Time High.”2

Source: ZeroHedge3

While no investment is without risk, real estate has proven again and again to be a solid choice to invest your money over the long term.

2. Hedge Against Inflation

Inflation is the rate at which the general cost of goods and services rises. As inflation rises, prices go up. This means the money you have in your bank account is essentially worth less because your purchasing power has decreased.

Luckily, real estate prices also rise when inflation increases. That means any money you have invested in real estate will rise with (or often exceed) the rate of inflation. Therefore, real estate is a smart place to put your money to guard against inflation.

3. Cash Flow

One of the big benefits of investing in real estate over the stock market is its ability to provide a fairly steady and predictable monthly cash flow. That is, if you choose to rent out your investment property to a tenant, you can expect to receive a rent payment each month.

If you’ve invested wisely, the rent payment should cover the debt obligation you may have on the property (i.e. mortgage), as well as any repairs and maintenance that are needed. Ideally, the monthly rental income would be great enough to leave you a little extra cash each month, as well. You could use that extra money to pay off the mortgage faster, cover your own household expenses, or save for another investment property.

Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase, until you own the property free and clear … leaving you with residual cash flow for years to come.

As the owner, you will also benefit from the property’s appreciation when it comes time to sell. This can be a great way to save for retirement or even fund a child’s or grandchild’s college education. Purchase a property when the child is young, and with a little discipline, it can be paid off by the time they are ready to go to college. You can sell it for a lump sum, or use the monthly income to pay their tuition and expenses.

4. Leverage

One of the unique features that sets real estate apart from other asset classes is the ability to leverage your investment. Leverage is the use of borrowed capital to increase the potential return of an investment.

For example, if you purchase an investment property for $100,000, you might put 10% down ($10,000) and borrow the remaining $90,000 in the form of a mortgage.

Even though you’ve only invested $10,000 at this point, you have the ability to earn a profit on the entire $100,000 investment. So, if the property appreciates to $120,000 – a 20% increase over the purchase price – you still only have to pay the bank back the original $90,000 (plus interest) … and you get to keep the $20,000 profit.

That means you made $20,000 off of a $10,000 investment, essentially doubling your money, even though the market only went up by 20%! That’s the power of leverage.

5. Tax Advantages

One of the top reasons to invest in real estate is the tax benefit. There are numerous ways a real estate investment can save you money each year on taxes:

Depreciation

When you record your income from a rental property on your annual tax return, you get to deduct any expenses associated with the investment. This includes interest paid on the mortgage, maintenance, repairs and improvements, but it also includes something called depreciation.

Depreciation is the theoretical loss your property suffers each year due to aging. While it’s true that as a home ages it will structurally need repairs and systems will eventually need to be replaced, we’ve also learned in this post that the value of real estate appreciates over time. So getting to claim a “loss” on your investment that is actually gaining in value makes real estate an appealing investment choice.

Serial Home Selling

Even if you’re not interested in owning a rental property, other types of real estate investments offer tax advantages, as well. Generally, when you own an investment property you pay a capital gains tax on any profits you make when you sell the property.

However, when you sell your principal residence, you are exempt from paying taxes on capital gains (up to $250,000 for singles and $500,000 for couples). The Internal Revenue Service (IRS) only requires that you live in the house for two of the previous five years. That means you can purchase an investment property, live in it while you remodel it, and then sell it for a tax-free profit two years later. This can be a great way to get started in real estate investing.

Section 1031 Exchanges

In addition to profiting off of your personal residence tax free, it is possible to sell an investment property tax free if you do it through a 1031 Exchange. If structured properly, the IRS Tax Code enables an investor to sell a property and reinvest the proceeds in a new property while deferring all capital gains taxes.

Tax-Deferred Retirement Account

It’s a common misconception that you can only purchase financial instruments (i.e. stocks, bonds, mutual funds, etc.) through an Individual Retirement Account (IRA) or 401(k). In actuality, the IRS allows individuals to invest retirement funds in real estate and other alternative types of investments, as well. By purchasing your investment property through an IRA, you can take advantage of all of the tax savings these accounts offer.

Be sure to consult a tax professional regarding all tax matters related to your real estate investments. If structured correctly, the profits you earn on your real estate investments can be largely shielded from tax liability. Just another reason to choose real estate as your preferred investment vehicle.

TYPES OF REAL ESTATE INVESTMENTS

While there are numerous ways to invest in real estate, we’re going to focus on three primary ways average investors earn money through real estate. We touched on several of these already in the previous section.

1. Remodel and Resell

HGTV has countless “reality” shows featuring property flippers who make this investment strategy look easy. Commonly referred to as a “Fix and Flip,” investors purchase a property with the intention of remodeling it in a short period of time, with the hope of selling it quickly for a profit.

This is a higher-risk tactic, and one for which many of the real estate “gurus” we talked about earlier claim to have the magic formula. They promise huge profits in a short amount of time. But investors need to understand the risks involved, and be prepared financially to cover additional expenses that may arise.

Luckily, an experienced real estate agent can help you identify properties that may be good candidates for this type of investment strategy… and help you avoid some of the pitfalls that could derail your plans.

2. Traditional Rental

One of the more conservative choices for investing in real estate is to purchase a rental property. The appeal of a rental property is that you can generate cash flow to cover the expenses, while taking advantage of the property’s long-term appreciation in value, and the tax benefits of investing in real estate. It’s a win-win, and a great way for first-time investors to get started.

And according to the U.S. Bureau of Labor Statistics, rents for primary residences have increased 21.9 percent between 2007 and 2015 as demand for rental units continues to grow.1

3. Short-term Rental

With the huge movement toward a “sharing economy,” platforms that facilitate short-term rentals, like Airbnb and HomeAway, are booming. Their popularity has spurred a growing trend toward dual-purpose vacation homes, which owners use themselves part of the year, and rent out the remainder of the time. There are also a growing number of investors purchasing single-family homes for the sole purpose of leasing them on these sites.

Short-term rentals offer several benefits over traditional rentals, which many investors find attractive, including flexibility and higher profit margins. However, the most profitable properties are strategically located near popular tourist destinations. You’ll need an experienced real estate professional to help you identify the right property if you want to be successful in this highly-competitive market.

DOES REAL ESTATE INVESTING SOUND TOO GOOD TO BE TRUE?

We’ve all heard stories, or maybe even know someone, who struck it rich with a well-timed real estate purchase. However, just like any investment strategy, a high potential for earnings often goes hand-in-hand with an increase in risk. Still, there’s substantial evidence that a well-executed real estate investment can be one of the best choices for your money.

Purchasing a home to remodel and resell can be highly profitable, as long as you have a trusted team in place to complete the remodel quickly and within budget … and the financial means to carry the property for a few extra months if delays occur.

Or, if you buy a house for appreciation and cash flow, you can ride through the market ups and downs without stress because you know your property value is bound to increase over time, and your expenses are covered by your rental income.

In either scenario, make sure you’re working with a real estate agent who has knowledge of the investment market and can guide you through the process. While no investment is without risk, a conservative and well-planned investment in real estate can supplement your income and set you up for future financial security.

If you are considering an investment in real estate, please contact us to set up a free consultation. We have experience working with all types of investors and can help you determine the best strategy to meet your investment goals.

Our areas of specialization include Sarasota real estate, Osprey real estate, Nokomis real estate and Venice real estate. 

Give Beverly and John a call at 941-321-3916.

Sources:

Bureau of Labor Statistics Consumer Expenditure Survey Annual Report  – https://www.bls.gov/opub/reports/consumer-expenditures/2015/home.htm

S&P Dow Jones Indices Press Release –
https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/574349_cshomeprice-release-0829.pdf?force_download=true

Durden, T. (2016 November 29). US Home Prices Rise Above July 2006 Levels, Hit New Record High [blog post] ZeroHedge  –
http://www.zerohedge.com/news/2016-11-29/us-home-prices-rise-above-july-2006-levels-hit-new-record-hig
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October 5, 2017

The Top 12 Things to Do on a Rainy Day in Sarasota and Venice

Ca'D'Zan Sarasota Florida


We have family coming into town this weekend and the weather report is looking dismal. Okay – more than dismal – rainy is the term.

So we started thinking about what activities there are for rainy days in our area. So many of the things we love to do revolve around being outside and generally we have wonderful weather for that.

It is not that it never rains here – it is just tricky when they are just coming for the weekend and the whole weekend forecast predicts rain.

So here are some things we came up with to do in Sarasota, Venice and surrounding areas.

  1. John Ringling Museum of Art – 5401 Bay Shore Road, Sarasota, FL, 34243
    Set on 66 acres right on the Bayfront in Sarasota. Includes Museum of Art, Circus Museum, and the Ca’D’Zan – John Ringling’s 56 room mansion. There are ever changing exhibits and events.

  2. Mote Marine – 1600 Ken Thompson Parkway, Sarasota, FL, 34236
    (941)388-4441. Research facility and Mote Aquarium. The working aquarium hosts more than 100 species of marine life including manatees and sharks. There are two touch tanks and a 135,000 gallon shark habitat.

  3. The Sarasota Classic Car Museum – 5500 N. Tamiami Trail Sarasota, FL 34243 (941) 355-6228.  Travel back in time and view over 75 immaculately restored automobiles including classic and muscle cars, including Bentleys, DeLoreans, Edsels and Ferraris. There are cars that were owned by the Ringlings, John Lennon and Paul McCartney.

  4. Burns Court Cinema – 506 Burns Ct, Sarasota, FL 34236. (941) 955-3456. Small theater that offers first-run foreign, independent and art films along with beer, wine and popcorn.

  5. The Mall at University Town Center – 140 University Town Center Drive, Sarasota, FL 34243. (941) 552-7000. This mall is located at I-75 and University Parkway and is considered a world-class fashion and dining destination with more than 150 stores and restaurants many of which are not found anywhere else in the local area.

  6. Venice Little Theatre – 140 W. Tampa Ave., Venice, FL 34285. (941) 488-1115. Since 1950 The Venice Theatre has been providing entertainment, education and outreach to the community. It is one of the largest and most active community theaters in our country.

  7. Clyde Butcher Gallery – 237 Warfield Ave., Venice, FL 34285 (941) 486-0811. Clyde Butcher is a legendary nature photographer, often called a modern-day Ansel Adams. We are so fortunate to have one of his studios here in Venice where his photographs and books are on display and for purchase. Clyde Butcher’s 2000 square foot darkroom is also located here.

  8. Historic Venice Train Depot - 303 E. Venice Ave., Venice FL 34285. The train depot was built in 1927 and renovated in 2002-2003. You can learn interesting key events in Venice history and the history of the train depot.

  9. Military Heritage Museum – Fishermen’s Village. 1200 West Retta Esplanade, Punta Gorda, FL 33950. (941) 575-9002. This is located further south in Punta Gorda and is another very worthwhile experience. “The mission of the Military Heritage Museum is to promote an understanding and respect for the rich military heritage of the United States and the sacrifices made by our country’s veterans, living and dead, emphasizing that freedom is not free”

  10. South Florida Museum – 201 10th St. W. Bradenton, FL 34205. (941) 746-4131. This museum is located just north of Sarasota and it both the Bishop Planetarium and the Parker Manatee Aquarium. It is the largest natural and cultural history museum on Florida’s Gulf Coast and has ever changing exhibits in addition to the permanent exhibits.

  11. Chihuly Collection – 720 Central Avenue, St. Petersburg, FL 33701. Located even further north is this outstanding collection of world-renowned glass artist Dale Chihuly. Nearby is the Morean Arts Center Glass Studio & Hot Shop where you can watch glassblowers create one-of-a-kind pieces, have your own personal glass blowing experience and shop for unique glass art created by local and regional artists.

  12. Salvador Dali Museum - One Dali Blvd, St. Petersburg, FL 33701. This is also north of Sarasota. Fascinating architecture, gardens and the works of famed artist Salvador Dali.

Of course there are many other things like the Opera House and Antique stores east of us in Arcadia, museums south of us in Fort Myers, and a 2 hour ride north-east to the many attractions of Orlando.

Soon we will be back to our beaches, sunsets, water sports, golf, and other outdoor activities.

Siesta Key Sunset
October 1, 2017

Sarasota Hosts 2017 World Rowing Championships

World Rowing Championships 2017

The world class 2017 World Rowing Championships were held in Sarasota, Florida from September 24, 2017- October 1, 2017 at Benderson Park.  

We were excited to attend on Thursday and found the event extremely well organized and a first class, professional venue. It was a huge operation with athletes and fans representing 69 countries. There were 930 athletes.

It was just the second time ever that this event has been held in the United States.

It is now being said that the event has put us on the map on par with the top rowing facilities in the world. Sarasota is on the West Coast of Florida one hour south of Tampa and two hours from Orlando.

The park includes grandstands to hold 3,600 people, picnic tables, beach chairs on the sandy lake shorefront, and the six story Benderson Finish tower. There were at least 4 huge Jumbotron sized screens so you could view all the details up close which was really fabulous.

It all started in 2009 with a hole that was dug for material used to build the I-75 interstate and other roads. Adjustments were made in the roads so the lake that was formed could be the necessary 2000 meters for rowing. A 30 acre island was created to allow room for events. In 2013 a bid was made and accepted to host the 2017 World Championships and then the race course and needed facilities were built.

Nathan Benderson Park was built to FISA racing standards and has 8 x 13.5 meter lanes. The race course specifications include 2,180 meters in length, 630 meters wide and on average 6 meters deep. In addition to the race course the lake has multiple 1500 meter warm-up and cool down lanes.

The park also has a state of the art floating wave attenuator platform that doubles as a dedicated TV lane for broadcast requirements, and exclusive 3m wide paved coaches cycle path.

In conjunction with the Rowing Championships, the book “The Boys in the Boat”  by Daniel James Brown was showcased throughout our area and by our library system. We both read the book and it was a wonderful way for us to learn more about the sport prior to the event.


The book is an inspiring true story of the University of Washington rowing team and the incredible story of the nine young men who rowed to victory in the 1936 Olympics in Germany. It begins during the fourth year of the Great Depression when the country was in deep despair. Rowing was a very popular sport then and sports were a way for people to feel optimism and have something to celebrate.

We learned how extremely challenging rowing is both physically and mentally. There was great emphasis on how the respect and love of teammates form powerful bonds. It reminds us of how much can be accomplished when everyone pulls together.

The story is not only heartwarming and encouraging – but it also reveals a fascinating glimpse of history at that time.

The boys beat the odds in desperate times and brought joy to our country when it really needed it.

We highly recommend this book. It really helped us appreciate the immense efforts and sacrifices that the athletes and their families, coaches and sponsors put forth for their sport.

We have several local teams in our area and we hope this venue will help to expand the sport and provide additional opportunities for those involved.

Bravo for Sarasota and all those who put this event together.

Let us know if you would like a world class effort to help with your real estate needs.

Top 12 Apps for Homeowners and Renters

More than 77 percent of people own a smartphone.1 The average person checks their smartphone 46 times a day, with people under the age of 24 checking it an average of 74 times a day.1 We check it while we’re waiting in line and during our leisure time, whether we’re scrolling through social media, reading emails or getting up-to-date on the latest news.

Smartphones are not only a useful tool for communication. With the following apps, you can get organized (whether you plan to buy or sell), save money, learn about the homes in your neighborhood and get inspired for your next renovation project. If you’re like 81 percent of people, you have your smartphone with you during most of your waking hours; let it help you stay organized and make your life easier.3

Apps For Homeowners: Get Renovation Inspiration

These apps not only offer ideas for your next remodel or home décor project, some of them even give you a preview of what your home may look like once it’s finished. 

1.) Houzz (Free)

The Houzz app is the number one app for home design and it’s no wonder; the app gives you access to all the inspiration, blogs and design ideas from the Houzz site on your phone or tablet. The app features View in My Room 3D, which allows you to view products in your home before you buy. Just take a photo of the space and a 3D version of the product will appear. Browse products, save photos of designs you’d like to view later and connect with local professionals in your area. Whether you’re gathering ideas for your next renovation and décor project or you’re just browsing, the Houzz app will satisfy all your design needs.

(Android, iOS) 

2.) iHandy Carpenter ($1.99)

Make sure the photos, shelves, mirrors and other artwork you hang are even and aligned with this helpful app. It’s an all-in-one tool kit that features a plumb bob, surface level, bubble level bar, ruler and protractor. No need to purchase these tools separately; just hold your smartphone up to the wall and the app will take care of the rest.

(iOS, Android) 

3.) Color911 ($3.99)

If you’re thinking of changing the color scheme of your home or want to find the right shades for lamp shades, rugs or throw pillows to match your vintage sofa, the Color911 app provides pre-selected color palettes to match any color scheme. Take a photo of the room or the furniture and the app will create a custom palette full of complementary colors. Write notes about your palette and organize it all into folders to share with family, friends or your design professional.

(iOS)

Bonus Apps for Homeowners:

AroundMe (Free)

Hungry and looking for a local hotspot? Meeting friends at a coffee shop nearby? Or just need to find the closest ATM? AroundMe allows you to search for the nearest restaurants, banks, gas stations, book a hotel or find a movie schedule close to where you live. Open the app and start learning more about your neighborhood. (iOS, Android, Windows) 

BrightNest (Free)

From keeping things clean to making them colorful, Brightnest, developed by Angie’s List, is loaded with suggestions on how to make your home a better place to live. With categories of customized tips (money-saving, cleaning, eco-friendly, healthy, cooking, and creative) there are plenty of great ways to pull inspiration from the app. BrightNest will help you tackle important home tasks with easy-to-follow instructions, a personal schedule and helpful reminders. (iOS, Android, Web) 

Apps For Sellers: List & Sell Your Home Quickly

Are you a homeowner who is thinking of selling? If you’re preparing to sell, you know there are a lot of tasks to complete before putting your home on the market. These apps help you manage your to-dos so you can list and sell your home more efficiently with fewer distractions.

4.) Homesnap (Free)

Using the Homesnap app, you can snap a photo of any home, nationwide, to learn more about it. When you’re ready to sell, snap a few of the homes in your neighborhood to find out their valuation. This app isn’t perfect, which is why you should always consult with a local real estate agent. However, it can give you a general idea of the value of your home compared to others in the neighborhood. (iOS and Android devices) 

5.) Docusign (Free)

Use the DocuSign app to complete approvals and agreements in hours—not days—from anywhere and on any device. Quickly and securely access and sign any documents. The benefit to using the app (over your desktop computer) is you will receive push notifications when a document is waiting for your signature and you can view and organize all your docs on-the-go. Using the easily downloadable app, receive and sign documents for free. You can receive and sign documents for free, but will need a paid account to send documents; pricing starts at $10 a month. (iOS, Android, Windows, Web).

6.) Wunderlist (Free)

Designed for use on the Web and mobile devices, Wunderlist is a well-designed to-do list and task management program that makes it easy to create a list and add tasks, due dates and reminders. Organize your ideas or focus into separate lists or create tasks within one list. You can also email them with whomever you collaborate, such as a spouse or your real estate agent. (Android, iOS, Windows Phone, Web)

Bonus App for Sellers:

Real Estate Dictionary (Free)

Not sure what all those industry specific terms mean? We always say “real estate” is like a foreign language and you aren’t expected to know it all. Here you can  search thousands of words and phrases from real estate, mortgage, and financial dictionaries for clear, in-depth definitions. This is a handy app for anyone who’s buying or selling and wants to learn more about the process. (iOS, Android)

Apps For Renters: Get Ready to Buy

Not ready to buy a home just yet? These apps will help you get into the perfect rental while you save money, build a budget and get on track for homeownership.

7.) Mint (Free)

Do you know where your money goes each month? Manage your bills, budget and credit score all in one place. Mint is a free app that helps you view your complete financial picture and track your spending. We recommend this app to anyone, but it’s especially useful for renters who need to crack down on their spending in order to save for a down payment. Use Mint to look for areas you can cut spending in order to save a little extra each month. (iOS, Android)

8.) Acorns ($1 a month to start)

Acorns is modernizing the practice of saving loose change with their automated savings tool. The app rounds up your purchases on linked credit or debit cards, then sweeps the change into a computer-managed investment portfolio. Acorns is free for four years for college students and everyone else pays $1 a month until their account balance hits $5,000, then 0.25% of their account balance per year. This is a useful tool for those who have a hard time saving. (iOS, Android)

9.) Neighborhoods & Apartments

Built for the on-the-go apartment hunter, this app from Walk Score takes the hassle out of finding your next home or apartment and helps you live near the people and places you love. They collect listings from top rental listing sites and we like them because they share how walkable each address is, determined by access to public transit, things to do, bike trails, shorter commutes, etc. (iOS, Android) 

Bonus Apps for Renters: 

Wally (Free)

Wally is a personal finance app that helps you compare your income to expenses, so you can understand where your money goes each month, and set and achieve goals. Wally lets you keep track of the details as you spend money: where, when, what, why, & how much. We love how simple it is to set a personalized savings target and scan receipts. (iOS, Android) 

Credit Karma (Free)
If you’re preparing to buy, boosting your credit score is likely a goal you’ve set. Credit Karma is a free app that allows you to safely monitor your score and receive updates on ways you can improve it over time. They provide financial calculators and educational articles to help you better understand what credit is all about. Check as often as you want, and it doesn’t hurt your score.  (iOS, Android, Web)

Apps for Buyers: Find the Perfect Home

When you’re ready to buy, there are several apps that can help you stay on top of the process. Whether you’re browsing online at different neighborhoods and homes and can’t seem to remember where all your saved data and information went or you want to save an important task or a neighborhood or listing clipped from the Web, these apps help you keep it all straight. 

10.) Dwellr (Free)

Dwellr is run by the U.S Census Bureau and provides demographic information about the neighborhoods you are considering moving to. You get a variety of education/school, real estate, transportation, and population statistics to give you an idea of what it would be like living there. If you want to get the feel of a potential neighborhood, then Dwellr may just be the app to help you find the best home.  (iOS, Android) 

11.) Evernote (Free for the Basic version, $34.99 per year for Plus and $69.99 per year for Premium)

Collect ideas, notes and images in one place to access later on your computer, tablet or smartphone. Categorize your notes so you can find them quickly and easily and share them with others in a group notebook. Add the Web Clipper feature to your browser and clip and save articles, blogs and images from the Web. Whether you’re collecting research on a business idea or you’re looking for inspiration for a home renovation, Evernote can help you keep it all together. (Web, iOS, Android) 

12.) Mortgage Calculator (Free)

There are a lot of free mortgage calculators available for download that will help you quickly determine what your monthly payment will be while you’re house hunting. We recommend picking your favorite and using it to help you shop in your price range. These numbers should be used as a guide, work with your agent and mortgage professional to learn exactly what type of loan you’ll qualify for. (Web, iOS, Android)

Bonus App for Buyers: 

Google Maps (Free)

Google Maps is a must-have for anyone who’s house hunting. When you’re ready to visit a property or check out a neighborhood, you can use Google Maps to give you turn by turn directions to the house. You can use their satellite view to get a good idea how far important things like schools, parks, shopping, bus stops, and restaurants are to a home you are interested in and check out the other houses on the street. (Web, Android, iOS,)

Ready to move beyond the app?

If you’re thinking of buying or selling your home, or know someone who is, keep us in mind because we’re happy to help! Give Beverly and John a call or text to 941-321-3916, or send an email

Source: 1. Pew Research Center, January 12, 2017 http://www.pewresearch.org/fact-tank/2017/01/12/evolution-of-technology/

  1. Deloitte, 2016 global mobile consumer survey: US edition https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/global-mobile-consumer-survey-us-edition.html
  2. Gallup, July 9, 2015 http://www.gallup.com/poll/184046/smartphone-owners-check-phone-least-hourly.aspx

 

 

 

Just Sold – 413 Rubens Dr Nokomis FL

We have SOLD this home and we are ready to sell yours next.

If you are thinking of selling and/or buying give us a call and we will see if we can be of help to you.

What Has a State Park in Your Backyard and is a Short Drive to the Beach?

Savor this private and peaceful setting with the 1400 acre Oscar Scherer State Park as your rear neighbor.413 Rubens Dr Nokomis FL 34275 back yard

Discover this updated home in popular Sorrento East, a very friendly neighborhood.  This home offers 6 rooms, with a sensible split plan.
The foyer leads to a formal living room and dining room, however you may use the rooms however it suits you.

413 Rubens Dr_Nokomis_FL_34275_dining_room

413 Rubens Dr_Nokomis_FL_34275_living_room

The kitchen has just been updated with new maple cabinets, Hawaii granite counters, stunning back-splash, new sink and faucet. The kitchen has a bright breakfast nook and is open to the family room.413 Rubens Dr_Nokomis_FL_34275_kitchen

The kitchen/family room and living room all spill over onto the spacious lanai –  and provide ideal places to entertain family and friends.

The master bath has new maple cabinets, Hawaii granite counters, linen storage, new tub, tile, plumbing fixtures and Travertine floor.

Master bedroom at 413 Rubens Dr Nokomis FL 34275

The main bath has a new shower stall with tile up to the ceiling, new fixtures and new shower door.

413 Rubens Dr Nokomis FL 34275 bedroom 2

Surround yourself with nature on the screened lanai or paver patio and enjoy the fenced yard teeming with butterflies and birds.
413 Rubens Dr Nokomis FL 34275If you like to walk early in the morning you will see awe-inspiring sunrises and likely meet your neighbors out walking with their dogs.
413 Rubens Dr Nokomis FL 34275

Then be sure to head over to the beach for stunning sunsets – just 5 miles away.
Sunset Nokomis Beach Nokomis FL

Nokomis is conveniently located between Sarasota and Venice.
413 Rubens Dr Nokomis FL 34275
Offered at $267,000. Call us for a private showing – 941-321-3916

Bringing Families Together is Our Joy

Nokomis FL real estate. Waterfront home recently sold by Beverly Bowen and John Schnackenberg

Want to hear a wonderful story? This story starts with a family in the cold northeast – Pennsylvania specifically.

A couple of years ago a young couple contacted us about one of our listings and we met them and showed it to them. The wife had been an “Apache” helicopter pilot in Desert Storm and we so appreciated her service to our country. That initial house was not right for them however we continued to work with them showing more houses, writing a few offers and eventually finding them the right house, complete with a pool. Soon after they had a baby and then the fun starts.

The wife’s father came for a visit and of course, loved it here. “Paradise” he calls it and we agree. Serendipity – we had listed a house within walking distance of his daughter and new grandbaby. We helped him buy it last year and he is loving it.

The next chapter is when his other daughter and her husband decided they love it here too. They have a little daughter the same age as the other grand-daughter. Their dream was to give up the big house in the cold Pennsylvania weather and have a house here on the water, with a pool, near the beach. So we helped make that happen just recently and now all 3 families live quite close to each other.

Pool at Waterfront home in Nokomis FL

The grandparents now get to enjoy the 2 toddler girl cousins playing together and growing up together.

They have all been such a joy to be with and to work with – we would love to clone them.

Our work helping families is very rewarding. This story really has no end.

Our relationships continue to flow and to grow.

So who is next – whom do you know that does not want to spend another cold winter up north? Or what other families can we bring together?

Give us a call or message us so we can see if we can help. 941-321-3916

Real Home Value Calculator: Assessed Value vs Market Value

Assessed Value vs. Market Value

Understanding a home’s true market value is about more than pictures, software assessments and price-per-square-foot. Whether you’re a current homeowner thinking of selling or are house-hunting, it’s crucial you understand what factors affect home valuation. By partnering with a local market expert, sellers will avoid pricing their house out of the market (the kiss of death in real estate) and buyers will ensure they get a good deal on their next home.

So, how do you accurately calculate a home’s value? After all, the value a home is assigned by its town or county and the one it’s given when it’s listed are often dramatically different from one another. Which one is accurate and what does it all mean? Read on to learn more.

Assessed Value vs Market Value: What’s the difference?

When it comes to home value, you’ll often hear two terms, assessed value and market value.

A home’s assessed value is often the lower number of the two, and is the value given by your municipality or county. Investopedia defines assessed value as “the dollar value assigned to a property to measure applicable taxes.”1 Although property tax laws vary, assessors commonly arrive at this number by taking into account the following:

  • What comparable/similar homes are selling for in your area.
  • The value of recent improvements.
  • Income from renting out a room or space on the property.
  • How much it would cost to rebuild on the property.

A home’s market value, or Fair Market Value, is the price a buyer is willing to pay or a seller is willing to accept for a property. Skilled real estate professionals, like us,  will arrive at the value using a variety of metrics, including:

  • External characteristics, such as lot size, home style, the condition of the home and curb appeal.
  • Internal characteristics, such as the number of rooms and their size, the type and condition of the heating or HVAC system, the quality and condition of construction, the flow of the home, etc.
  • The sales price of comparable homes that have sold in your area.
  • Supply and demand; that is, how many buyers and sellers are in the area.
  • Location; that is, the quality and desirability of your neighborhood and other community amenities.

Why are these values often so different? An assessor usually estimates your property’s market value during a reassessment or if you make a physical change or improvement to it.2 As a result, a property may not be reassessed for many years. While your home’s market value may fluctuate with the market, your home’s assessed value is more likely to remain steady.3

What Determines a Home’s Value?

You’ve likely heard the motto of real estate: “Location, location, location.” This means a home’s value relies on its location. While the home and structures on the property will likely depreciate over time, the land beneath it tends to appreciate. Why? Land is in limited supply and a growing population puts increased demand on the housing supply. As a result, values increase.4

Other factors that affect your home’s value include the function and appearance of the property, how well the home and other structures are maintained and whether the home is a lifestyle property, such as a ranch style with mountain views or beach bungalow.

Ultimately, the best indication of a home’s value is the overall supply and demand of the market. This is why we recommend you partner with real estate professionals, like us, who take all of these factors—the assessed value, local market conditions, home features and has physically walked through and experienced your home— into consideration to determine the most accurate market value.

How to determine if a property is comparable to yours.

Both assessed value and market value are partially determined by the sales price of similar, or comparable, homes in the area. To determine if a home is comparable to yours, look for the following characteristics:

  • Lot size
  • Square footage
  • Home style or similar architecture
  • Age
  • Location

While you may not find a home with the same exact characteristics as yours, you’ll likely find a few that are close. To account for any disparity, adjust the sales prices of the comparable properties. Look at the differences between your property and the one in question and determine if the differences increased or decreased the sales price and by how much. For example, if your home has two bathrooms and a similar home only has three, estimate how much that extra bathroom increased the sale price of the similar home. The adjusted sale price is the estimation of what the property would sell for if the properties were exactly the same.2

Where can you find comparable sales?

Fortunately, you can find comparable home sales in a variety of places.2

  • Your local assessor’s office is able to provide a list of recent sales you can browse and compare or a sales history of a particular house, home style or neighborhood.
  • Your municipality. Many cities keep local sales information in their offices or post it online.
  • Online databases, such as a real estate database
  • Your local newspapers may offer some real estate information in the form of quarterly sales reports in the business or real estate sections of the newspaper.
  • Contact us. We regularly do Comparable Market Analysis of homes in our local area. Call 941-321-3916

How to calculate your home’s value.

By answering a few questions about your home, property and the local market, you can begin to estimate your property’s value. We’ve also included a worksheet for you below…

Home Value Questions:

When was your home last assessed?

What was its CMA assessment value?

What is your area’s average sales price?

What is your area’s average price/square foot?

Structure:

  • Is the architecture and exterior structure of the home consistent, superior or inferior to other homes in the area?
  • Does the era or genre (Modern, Victorian, Ranch, Cottage, etc.) add a premium based on current design trends?
  • How does the floor plan and room size proportions of the home compare to other homes on the market?

Interior Structure:

  • How does the kitchen compare to others on the market?
    • Updated or outdated
    • Floor plan
    • Appliance packages
  • How does the Master Suite compare to others on the market?
    • Size
    • First/second floor
    • Updated or outdated
    • Access to Master Bath
  • How does the Master Bath compare to others on the market?
    • Updated or outdated
    • Shower and bath
    • Flooring

Outside Areas:

  • Are there views, outdoor living areas or recreational areas?
    • Pools
    • Ponds
    • Patios
  • How does the landscaping and hard-scaping compare to the market? (e.g., built elements such as walkways, patios, decks, etc.)

Overall Condition of Home

  • What is the level of repair needed to compete with other homes?
  • Does the home need to be staged? How does it show?
  • What curb appeal projects are necessary to be consistent with others on the market?

Beverly and John’s

Home Assessment Worksheet

Home Assessment Worksheet

 

If you want to accurately assess a home’s value, it’s crucial to know about the market activity of our local area. We can help! Give us a call to get the scoop on the local market.
Call 941-321-3916 or Send us an email at SellingFL@gmail.com

 

Sources: 1. Investopedia http://www.investopedia.com/terms/a/assessedvalue.asp

  1. New York State Department of Taxation and Finance https://www.tax.ny.gov/pubs_and_bulls/orpts/mv_estimates.htm
  2. Realtor.com http://www.realtor.com/advice/sell/assessed-value-vs-market-value-difference/
  3. Investopedia, http://www.investopedia.com/articles/mortgages-real-estate/08/housing-appreciation.asp?lgl=myfinance-layout

 

June 18, 2017

What’s With All the Wooden Stakes on the Beach in Florida?

Sea Turtle Nest on Beach in South Florida

This post is written by our dear friend Carol Jacobus. Thank you Carol for enlightening all of us and for the work you do to preserve our sea turtles.

Have you ever wondered while walking on our beautiful beaches what all the stakes and neon colored ribbon was all about?  It’s to mark and  identify sea turtle nests that are here in record numbers this year.

I started training this spring to be permitted to do my part in protecting this fascinating, ancient creature who has laid eggs on our beaches for eons.  We hit the beach at 6:15 each morning and start looking for  their distinctive tracks or crawl marks. She can weigh over 300 pounds so the marks are easy to spot. Following the crawl marks up the beach will hopefully lead us to her nest.  For many reasons there are “false crawls” where she turns around and goes back out to the water.

We do our best to pinpoint the location of her egg chamber and stake it off.  45-60 days later the hatchlings break through their shells and make their way to the surface.  This can take a few days as they wait for all the hatchlings to leave together.  They look for the moonlight or starlight on the water’s surface and scramble to the Gulf to swim away.

This is where turning out or shielding all lights along the beach is important as they can become disoriented and walk away from the water, falling prey to many predators or ending up on the road or drowning in a pool.  This is also when it’s important for all toys and furniture to be removed from the beach so they have clear access to the water.

Recently I watched a female loggerhead come to shore to lay her eggs.  It takes a little over an hour for her to pull her enormous body up the beach, lay her eggs and return to the water.  She digs a perfect hole about 2 feet deep, slowly and methodically switching back and forth between her 2 back flippers, resting between sets.  She lays about 100 eggs that look like ping pong balls then covers them back up, patting down the sand.  When finished, she throws sand over the entire area with her front flippers to possibly disguise the nest. She slowly pulls her way back to the Gulf. I’ve been told she repeats this process 3-4 times during the season and is so exhausted she won’t lay eggs again for 3 years!

Baby Sea Turtles Venice Florida

There are thousands and thousands of hatchlings this season but with the odds of only 1 in 1000 surviving to adulthood and adulthood being 25 years old (that’s before she can reproduce!) you can see why they are endangered.

Florida is the #1 place for sea turtle nests in North America!  We can all do our part to help with the survival of our sea turtles by keeping our beaches clean, turning out beachfront lights during nesting season and leaving the beach exactly as you found it.

This week I ran across my first nest with hatchlings struggling to get to the surface.  It was 11 in the morning so the bright sun was disorienting to them and the heat of the day was dangerous for dehydration. My fellow turtle patrol people and I put them in a bucket and took them to the water where we watched them run to the waves and swim off to the complete unknown. Completely overwhelmed with emotion, I thought about them all night long, wondering if they survived.  Wondering if my small part will have anything to do with the 1 in 1000 that will survive.  I do hope so!

June 9, 2017

What’s Your Home Buying Power?

Home Buying Power Sarasota FL

If you’re in the market for a new home or investment property, one of the first questions you’ll probably ask is, “What can we afford?” Many buyers become so caught up in how much they can afford that they don’t realize their total buying power—that is, the total amount of purchasing potential they actually have.

Buying Power Defined

Your buying power is comprised of the total amount of money you have available each month for a mortgage payment. This means the money you have each month after fixed bills and expenses. Any money you’ve saved for a down payment, the proceeds from the sale of your current home, if applicable, and the amount of money you’re qualified to borrow all impact your buying power as well. When you take all of this into account, you may find you are able to purchase a larger home or a home in a more desirable neighborhood, or you might realize you should be looking for homes in a lower price range.

What About Housing Affordability?

Housing affordability is a metric used by real estate experts to assess whether or not the average family earning an average wage could qualify for a mortgage on the average home.1 Although this figure is essential to creating a comprehensive overview of the real estate market, it’s not a factor you should consider in your home search. What may be considered affordable to you based on your income and other factors may be different than what’s affordable to the average buyer.

Why Buying Power Matters

A common misunderstanding is that a home’s list price determines whether or not you can purchase it. Although it’s important to look at the price tag, it’s essential to consider what your monthly payment will be if you own the home. After all, the purchase price doesn’t include the housing-related expenses, such as annual property taxes, homeowner insurance, associated monthly fees and any maintenance or repairs. Figuring out the payment will prevent you from overestimating or underestimating your buying power. After all, you’ll live with your monthly payment, not the sales price.

Once you have clarity on your buying power, you’ll be able to buy the home you want, instead of settling for a home because you feel it’s the only one you can afford. It will also prevent you from becoming “house poor,” a common term for someone who’s put all their money toward the down payment, leaving them nothing left over for fees outside of their monthly house payment. Both scenarios can negatively impact the lifestyle you want to live. Understanding your buying power can help you get the home you want without sacrificing the lifestyle you desire.

If you haven’t sold your current home yet, a Comparative Market Assessment (CMA) will give you a general idea of how much you may get for your home based on what other homes have sold for in your area. Contact Beverly and John for a FREE Pinpoint Market Analysis! Call 941-321-3916

Calculating Your Buying Power

You might be wondering, “How do I know what my buying power is?” Buying power is calculated by adding the money you’ve saved for a down payment and/or the money you made from selling your home (minus fees and mortgage payoff) to all of your sources of income and investments that could be used to make your monthly payment. Make sure to include your monthly pay, commissions or tips, dividends from investments, payments from rental properties or other monthly income you receive as well as the loan amount you’re willing to finance and qualify for.

Most lenders advised buyers to spend no more than 35 to 45 percent of their pretax income on housing, meaning all your income and sources of revenue prior to paying taxes. Make sure you factor in not only your mortgage payment, but also property tax and home insurance to the cost of housing.2 However, other financial experts advise spending no more than a very conservative 25 percent of your after-tax income on your housing expenses.2  Whether you plan to spend the average, play it conservative or split the difference is up to you.

Traditionally, mortgage lenders have targeted the ideal housing expense amount to be a ratio of 28 percent or less.3

However, these figures bring up an important point: you don’t have to spend all of your savings and available monthly income on a mortgage payment. It’s important to set money aside for regular home maintenance, unexpected repairs and monthly fees, such as a condominium or homeowners association fee. While the above ratios are commonly accepted, a lender will look at your total financial picture when they decide how much they’re willing to lend. It may be tempting to take out a large loan in order to purchase the home of your dreams, but keep in mind the less money you have to borrow, the stronger your buying power may be.

4 Things That Impact Buying Power

  1. Credit score. A great score can help you lock into a lower interest rate.
  2. Debt-to-income ratio. The lower the ratio, the better risk you may be to lenders as long as you have an established credit history.
  3. Assets, including the documentation of where the money for the purchase is coming from and the mix of your investments.
  4. Down payment. The more you’re able to put down, the less you will have to borrow. With a down payment of 20 percent or more, you won’t have to purchase private mortgage insurance (PMI) and you may also be able to negotiate a lower interest rate.

How to Save for a Down Payment

If you’re thinking of buying a home one day, one of the first steps to take is to start saving for a down payment. Here are some tips to make saving easier.

First-time buyers:

  1. Set a savings goal. One way to figure out how much to save is to use the average sales price for homes that are similar to what you want and figure out your target down payment percentage. For example, if homes are selling for $200,000 in your area and you want to put 20 percent down, you’ll have to save $40,000. Set a goal to save that amount within a specific time frame; just keep in mind the longer you save, the more the average selling price will change. Although the majority of buyers saved for six months or less, 29 percent of all buyers (and 31 percent of first-time buyers) saved for more than two years for a down payment.4
  2.  Cut back on expenses. Review your monthly expenses and look for ways to save. Twenty-nine percent of buyers cut spending on non-essentials items and 22 percent cut spending on entertainment while they were saving for a home.4 Think about items you can live without or cut back on temporarily while you’re saving. 
  3. Look for ways to boost your income. Get a side job or sell items online or at a garage sale to increase your income in a short amount of time. Be sure to save any windfalls you get, including your annual income tax refund or work bonuses.
  4. Check out home-buying programs. Your state, county or local government may offer special programs, such as grants, for first-time buyers to use.
  5. Ask your family. Thirteen percent of all buyers, and 24 percent of first-time buyers, were given money from family or friends to use toward the down payment of their home.4

Repeat buyers:

More than 52 percent of repeat buyers used the proceeds from the sale of their primary residence toward the down payment on their next home.4 Similarly, 76 percent tapped into their savings accounts.4 If you’re thinking of buying another home, here are more ways to save more money, in addition to the tips listed above:

  1. Rent a room. If you have an income flat (or mother-in-law unit) attached to your home, rent it out and channel the income into a high-interest savings account. 
  1. Make your money work for you. If you don’t plan to buy for at least five years, invest it and let the compound interest work for you. Discuss this option with your financial planner or broker to see if this is ideal for you and your goals. 
  1. Tap into your 401(k). If you have a 401(k) plan, you may be allowed to borrow a portion of it, the lessor of up to $50,000 or half of its value, for your down payment. Remember, it’s a loan so you’ll have to pay it back. If you leave or lose your job before you’ve repaid the loan, you’ll have between 60 to 90 days to repay the balance or face stiff taxes and penalties.

If you want to buy an investment property

Whether you’re buying a second home or a rental property, here are a couple tips to save for a down payment.

  1. Tap into your equity. If you’ve paid off or paid down your mortgage on your primary home, you may be able to tap into your equity to purchase another property. Contact your lender to learn more about a HELOC or home equity loan.
  1. Get a partner. Find a friend or relative who’s willing to purchase property with you. Typically, you’ll split the costs and profits equally. Just make sure to work with an attorney to create a partnership agreement to fit your situation.

Work Out Your Buying Potential

What’s your buying potential? Fill out this worksheet to get an estimate.

 

Housing Expense Ratio:
1. Monthly income before taxes $
2. Multiply line 1 by 0.28 X 0.28
3. Monthly mortgage payment (PITI) should not exceed this amount = $
4. Monthly income before taxes $
5. Multiply line 4 by 0.36 X 0.36
6. Total monthly payments on all debts (including mortgage) should not exceed this amount = $
7.  Subtract the total monthly payments on all outstanding debts (e.g., car loans, credit cards, student loans, etc.) – $
8. The monthly mortgage payment should not exceed this amount $
9. Look at line 3 and line 8. The lower figure is an estimate of the maximum mortgage payment in consideration of your income and debts. $
10. Multiply line 9 by 0.80 X 0.80
11. This equals portion of your mortgage payment that is the principal and interest only $
12. Use the table below to see the size of the loan you may be able to obtain with this monthly mortgage payment.

Source: Iowa State University Extension, What is your house-buying power?

 

Monthly Payment on 30-Year Fixed Rate Mortgage

Loan amount 3% 3.5% 4% 4.5% 5% 5.5% 6%
$50,000 211 225 239 253 268 284 300
$75,000 316 337 358 380 402 426 450
$100,000 421 449 477 506 536 568 600
$150,000 632 674 716 759 804 852 900
$200,000 842 898 954 1012 1072 1136 1200
$250,000 1052 1123 1193 1265 1340 1420 1500
$300,000 1263 1347 1431 1518 1608 1704 1800

 

Didn’t see your desired loan amount? Use the table below to estimate your monthly payment (principal and interest) per $1,000 of your loan. To figure out an estimated loan payment, multiply the factor by the number of thousands in the amount of your mortgage.

For example, if you intend to borrow $400,000, with a loan term of 30 years at 4% interest, multiply 4.77x 400 = $1908 per month.

Interest Rate 15-Year Term 30-Year Term
Monthly Payment Monthly Payment
3% 6.90 4.21
3.5% 7.14 4.49
4% 7.39 4.77
4.5% 7.64 5.06
5% 7.90 5.36
5.5% 8.18 5.68
6% 8.44 6.00

Source: HSH.com http://www.hsh.com/mopaytable-print.html) 

Don’t forget to factor in property taxes and insurance. These are often added to your principal and interest of your mortgage payment—the money used to pay down the balance of your loan and the charge for borrowing the money. Since these numbers vary, contact your county assessor’s office for the current property tax rate and your insurer for a home insurance quote. Once you have these figures, divide each by 12 to estimate how much they’ll add to the above payment amounts.

Do you want a clearer picture of your buying power? Would you like to see what kind of homes you can get with your buying power? Give us a call!

Sources: 1. National Association of REALTORS https://www.nar.realtor/topics/housing-affordability-index/methodology

  1. Moneyunder30.com https://www.moneyunder30.com/percentage-income-mortgage-payments
  2. Credit.com https://www.credit.com/loans/mortgage-questions/how-to-determine-your-monthly-housing-budget/
  3. National Association of REALTORS, 2016 Profile of Home Buyers and Sellers
  4. Iowa State University Extension, What is your house-buying power? https://store.extension.iastate.edu/product/pm1460-pdf
  5. HSH.com http://www.hsh.com/mopaytable-print.html
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