tips

Buying a Home With a Significant Other

September 5, 2017 By Chris

Domestic bliss looks a lot different today than it did even ten and twenty years ago. It’s no secret it’s been the norm for many couples to live together before they were married but now there are more couples who have no intentions of ever saying “I do”. While society is changing, laws are slow to catch up and that can leave many non-married people in a precarious position when it comes to their homes. If you’re thinking of buying a home with a significant other we have some things you should consider before you go house hunting.

Buying a Home With a Significant Other

Balance the Budget

Like any other perspective home buyer, we recommend you and your significant other analyze your financial situations and draft a budget. This should include how much each party will put towards the down payment, the mortgage payment, utilities, and home maintenance. You should also consider how much of a mortgage to take out. Should one of you get hurt or lose a job, will one person’s salary be enough to cover monthly payments, utilities, and basic necessities? These considerations will be helpful to your Realtor as well.

Ownership

Unlike a married couple, unmarried couples need to consider how they will title the home. There are three options:

Sole ownership: this is not recommended for a domestic partnership as it vest all of the ownership and equity into just one person’s name. If qualifying for financing is a concern for one party, we recommend speaking with an attorney and your mortgage representative to come up with a resolution to protect both parties;
Tenants in common: this form of ownership allows each party to hold an equal interest in the property (unless otherwise agreed upon and stated on the deed); each party has the ability to sell or lease their interest in the property without approval from the remaining party; it also means should one owner pass away their interest would be divested to their legal heirs not the remaining homeowner;
Joint tenants with the right of survivorship: holding title in this manner is most often used for couples who want the benefits of survivorship, meaning should one owner die by law their shares and interests in the property would be divested to the surviving owner.

Protect Yourselves

While Florida laws has specific statutes in place for divesting property during a divorce, domestic partnerships (different from civil unions) do not have the same precedence. With that in mind, we recommend partners with the help of an attorney, draft a cohabitation agreement and a property agreement. A cohabitation agreement will state each person’s obligations when it comes to the home. Some couples go so far as to list out not only financial obligations but also tasks necessary to keep the home in good order. A cohabitation agreement may also cover plans for who would move out should a breakup occur and a timeline for said plan. A property agreement will spell out what each person brings to the property and how the property and items within it will be divested should the relationship come to an end.

In the end, with these tips we hope you and your partner will find home sweet home.

Tips for Successful House Hunting

July 11, 2017 By Chris

Home buying can seem like a daunting process and while it is a large financial and emotional undertaking it doesn’t need to be as daunting as some would have you think. Starting your house hunting off on the right foot can make all the difference between smooth and successful and frustrating and tedious.

What’s the reason for your move?

Moving isn’t the same. Different reasons for the move determine a myriad of things like your timeline, options, type of home you’re searching for, and your budget. Once you figure out what your reason is and share that reason with your Realtor, you’ll be in a better place to start your search.

Know thy budget.

We’ve said it multiple times before but before you ever set out to looking for a new home, you should know what your budget is and have a pre-approval for a mortgage in hand. The amount you are pre-approved for a mortgage doesn’t necessarily mean that is your budget. You need to determine what a comfortable monthly payment is for your financial situation. From there you’ll need to take into account not only a property’s sale price but also items like taxes and insurance.

Tips for Successful House Hunting

What really matters to you?

There’s no such thing as a perfect house. There is always going to be an aspect about a property that you dislike and will want to change and that’s okay. Deciding what your deal breaker items are is important. Try to limit your must have list to five items and let your Realtor sort through listings that meet these qualifications. Also don’t discount a house on sight alone. It may have the things you really want and the cosmetic hang-ups can be changed.

What’s your timeline?

Are you selling one home and buying another? Has your current home gone under contract yet? Are you looking to be in a new school district in time for classes to start? Are you a first time Buyer with a flexible schedule? These are points to consider when you go to make an offer and negotiate a closing date. Most listings will include a closing time frame that the Sellers are looking for, your Realtor can find this information in the multiple listing service or by calling the listing agent directly.

These tips aren’t rocket science but they are a good foundation on which to start you home search.

How to Run a Successful Garage Sale

June 27, 2017 By Chris

One of the big things we stress with all of our listings is to “stage” a home. Staging requires you to clear out many of your personal effects and items that to you make the home looked lived in but to potential Buyers may it look cluttered. The best advice we’ve heard when it comes to deciding what you should do with that “stuff” is to ask yourself if you’ll keep it, sell it, or trash it.

When it comes to the “sell it” things, we’ve all heard the saying “One person’s trash is another person’s treasure”. There’s a huge resurgence in the idea of upcycling and a demand for vintage items. Many people are getting back into the garage sale method of selling items they no longer want and cashing in on the demand. But a garage sale can be a waste of time if you don’t take the right steps. So how do you set yourself up for a successful garage sale?

Do Your Research

First find out if you can have a garage sale on your property. Some homeowner’s and condominium associations may restrict garage sales. Likewise, municipalities may have restrictions on the days you host, where you hold it, and may even require you to purchase a permit.

Research the market price for many of your big ticket items such as furniture, electronic equipment, tools, etc. You don’t want to price yourself out of the market before you even set up.

Pick Your Day and Time

A good day can be a deciding factor in the success of your garage sale. Garage sales used to be held on weekends only but they are starting to trend to include Thursday and Friday afternoons as well. Avoid holiday weekends such as Memorial Day, Fourth of July, and Labor Day. Be mindful of when your local schools are hosting graduation ceremonies and consider avoiding those dates as well. Consider also when people get paid. Is there a large local employer that pays on the 15th and 30th of each month? Schedule your sale for the weekend immediately following pay day.

Just like a party, set an end time so you don’t have stranglers at your house until it’s dark or worse people knocking on your door well after you’ve closed up shop.

Successful Garage Sale

Advertise

It used to be that garage sales were only advertised in the newspaper for a few days immediately before the sale date. If a seller was feeling motivated they would put flyers up around the neighborhood. With the advent of the social networks like Facebook, Instagram, and Craig’s List, a seller can advertise to more people within a geographic area and target people looking for specific items. The best part about all three of these methods is they’re free! Don’t overlook the more traditional avenues of advertising though. Places like grocery stores and libraries may also have neighborhood bulletin boards that you may be able to place a flyer on.

Get Organized and Get Prepared

Now comes the most tedious part of any garage sale: physically preparing for it. You should have like items grouped together. Price tags should be affixed to the item or a sign near as possible to the item in question. Some people hand write each price tag, others buy the pre-typed tags at a dollar or office supply store, still others go by a color code system with each color assigned a price. Figure out what system you want to use and stick to it.

Set up all of your items ahead of time so on the day of your sale all you need to do is open up your garage door or pull out your tables into your driveway, yard, or sidewalk.

One of the most overlooked items needed for a garage sale is money. Make sure you have enough variety of bills and coinage to make proper change.

The Day Of

Be ready to meet an assortment of people. As more people start shopping, get up and walk around. It may help a person to ask questions about an item they’re considering and it may help deter shoplifters. You should also be prepared to negotiate on many items or know which ones are non-negotiable.

Keep your money to close to you at all times and secure large amounts of money inside your home instead of carrying them on your person or storing it in a money box out in the open.

At the end of your sale, filter through the items you have left and decide what you will do with them. Will you try to sell through online venues or will you donate them to a charity?

A successful garage sale isn’t something you can put together overnight but it is worth the effort when you’re able to clear out unwanted items from your house and make a tidy profit.

How to Screen Potential Tenants

March 7, 2017 By Chris

The process of obtaining a tenant for your rental property seems straight forward. You need to market the property, check out the potential tenant, and then sign the lease. But what exactly should you do when you’re checking out your tenant? Is a credit check enough? Let’s walk through how to screen potential tenants.

Check Everyone

Your tenant application should be filled out by every adult 18 years of age and older. This works to your advantage for several reasons including obtaining every adult’s contact information and making each adult liable and responsible for the lease obligations. Children and those adults with incapacities are exempt for background checks, however. Don’t request a simple credit score but rather a full credit report with details for both positive and negative factors. This will help you understand any patterns of late payments and delinquencies.

How to Screen Potential Tenants

Credit Reports Alone Aren’t Good Enough

It seems like a reasonable assumption that if a potential tenant has failed to make payments on their financial obligations they’ll have a less than desirable credit score. That may be true but what if a previous landlord didn’t report to the credit bureaus or the tenant has worked to clean up their credit score? As part of your research, you should search the local (in relation to their previous addresses) court records for eviction proceedings. You’ll also want to run a criminal search for each applicant.

Make the Calls

Asking for references does you no good if you do nothing with the information. You should verify current employment status as well as the likelihood for continued employment. Contact other landlord references to confirm that timeliness of payments and if the tenant’s behavior was in line with the lease.

A thorough tenant screening puts you in the best position possible to decide whether to approve or decline your applicants. You don’t need to do all the leg work yourself though. There are services you can order the necessary credit, criminal, and eviction reports and have them delivered right to your inbox. All you’ll need to do is make the phone calls to confirm employment and prior rental history. If a potential tenant is hesitant or refuses to submit to the screening process you’ve put in place should be an automatic disqualification for consideration.

Protect Your Home While on Vacation

May 24, 2016 By Chris Leave a Comment

Memorial Day is less than a week away and the sizzling summer’s heat and humidity is closely lurking here on the west coast of Florida. If you’re like many of us, you’re planning a vacation, a much-needed break from the norm complete with a full-body and mind attitude adjustment.

Once you’ve set your budget, destination, time away and how to get there and back, take some time to protect what you’re leaving behind. Sure, vacation will be sensational, and you probably won’t want to come home. Yet, eventually you will, and you’re going to want to find your house and belongings intact or in at least the same condition as when you left. Anything less can really kill the great vacation buzz you’ll still be floating on.

Take time to protect your home and all the things in it that you hold dear. Whether you’ll be gone for a week or a month, the most important thing you can do while you’re gone is to make your house look lived in and active.

Protect Your Home While on Vacation

Consider taking care of some of the following to tighten your security and protect your home while on vacation:

Schedule improvements. Vacation is a great time to have work, especially exterior work, done on your house, and the constant activity is a bonus. If you’re designing a new patio, maybe installing a pool, even redoing your landscape and irrigation plan, schedule it for while you’re away. It’s so much easier to come home to completed work, and not be under foot while everything is topsy-turvy. Plus, the activity discourages the bad guys.
Exterior lights on motion sensors. Most people have at least one or two exterior lights around their homes. Motion sensors to turn lights on when someone, or thing, comes too close for comfort are likely to discourage intruders and are simple to install.
Interior timers. These are great because you can place them throughout the house to turn lights on and off at specific times during the day and night. The only drawback is that if a savvy thief watches your house for a day or two, the schedule becomes obvious. If you have someone checking on the house, say, two or three times each week (make sure you trust this certain someone), ask them to move the timers around so there’s no clear pattern. Or, now available are apps for Smart Phones and tablets that you can use to turn lights on remotely, or even create a changing lighting schedule for the time you’re gone.
Trusted friends. Ask a trusted friend or nearby family member to periodically check on your home while you’re on vacation. Their activity will deter anyone nefarious. A friend can also take in your mail and any deliveries you may receive.
Hold your mail. Cascading mail out of your mailbox can be an “I’m out of town and the house is ripe for a rip-off” tip-off. If you don’t have a friend to help manage your house while you’re away, the easiest solution is to have your mail held. Check with the USPS to see how long they will hold mail. You can do the same with any newspapers you may receive. Be sure to have the publication credit your account for the copies you don’t receive.
Security Systems. Security systems can be as simple or as complex as you liked; some systems even let you watch a live feed of your home from your cell phone. Having one installed can have multiple benefits including peace of mind on vacation and a discount on your home owner’s insurance.
Say “no” to Facebook and Twitter. As much as you may want to tell the masses about all the fascinating events of your life, don’t broadcast to the world that your home will be empty or you may come home to a, well, empty home. Avoid “checking-in”, posting your travel dates and time, and upload photos once you return from vacation
Hire a sitter. A house sitter is someone who will live in your home while you’re on vacation. Obviously, you’ll want to be extremely selective when it comes to turning your keys, your house and your belongings over to someone else, so take every precaution before making this decision. Whomever you choose to live in your house, be very clear about how you expect your home to be treated while you’re away and what responsibilities they are to handle (pet care, lawn maintenance, etc.). It’s best to lock up anything of high or irreplaceable value.

Above all, once you’ve buttoned up your home, start your vacation knowing you’ve done all you can to keep your home and belongings safe – so go have a great, memorable time. Summer is just around the corner!

Editor’s note: This post was originally published in May 2013. It has since been updated and edited for clarity and cohesiveness.

Practice Water Safety

May 10, 2016 By Chris

As temperatures heat up and summer quickly approaches, many people in the Tampa Bay area will be jumping into pools or taking a dip in the ocean. We’ve previously discussed how homeowners can develop good practices to keep their personal swimming pools safe but we’re going to expand on that topic and talk about staying safe in any body of water. May is National Water Safety Month. It should be everyone’s responsibility to practice water safety no matter their age or their location to the water.

Educate Yourself and Your Family

The American Red Cross recommends that all family members take the age appropriate swim lessons. Your family should have set rules and every family member should abide by them at all times. Swimmers should be aware of the location of safety devices and how to use them. Swimmers should also be aware of the general mechanics of the pool (drains, filters, water intake valves, electricity, etc.) and avoid swimming too close to anything that may entrap or otherwise injury them. If swimming in a natural body of water, swimmers need to be aware of water currents and the effect temperatures may have on a person.

Practice Water Safety | Hounchellrealestate.com

Stay Together

Swimming should never be a solitary activity, no matter the swimmer’s experience. Using the buddy system will provide a measure of safety should the swimmer experience an emergency. Children should never be expected to monitor another child’s swimming. To prevent unauthorized access to water, barriers, safety covers, alarms, and locks should be used at all times when pools and hot tubs are not in use. Children should not be allowed to explore areas with water without adult supervision.

Vehicles In the Water

Boaters and people operating other watercraft need to be just as mindful of rules and regulations as they would be driving a car. Operators should know how to safely pilot their vehicle and learn the best conditions under which to operate. It is important to have a way to contact the authorities should you need help and also be able to direct them to your location. Operators should also refrain from drinking alcohol before and while operating a watercraft. All occupants should wear a Coast Guard approved life jacket at all times.

Prepare For Emergencies

Whether you plan on enjoying your summer in your private swimming pool or head to one of the many beaches in the area, familiarize yourself with property emergency procedures. Know your exact location (address and easy to identify landmarks). The American Red Cross also recommends every person learns CPR/AED and proper first aid techniques.

We feel following these simple and easy to implement water safety practices will allow for you and your family to enjoy the water all summer long.

How to Avoid Becoming a FoMO Buyer

May 3, 2016 By Chris

You’ve heard of FoMO or “fear of missing out” right? With the heavy influence from social media and celebrity worship culture, some psychologists say it’s quickly becoming an epidemic. What is fear of missing out? It’s anxiety that you’re missing something if you’re not partaking in the same activities or owning the same possessions that others are. This fear leads to the compulsion to seek out the things that are the “latest and greatest” or events that are popular. This phenomenon isn’t limited to just wearing the hottest trends in clothing, never missing a happy hour, or checking your smartphone every thirty seconds. It can also trickle it’s way into larger decisions, like buying a home.

If you find yourself asking “Am I missing out on a better deal?” “Am I going to make a mistake if I don’t act now?” you may be a FoMO Buyer and you may have to deal with potential regrets later on. So how do you avoid becoming a FoMO buyer?

Be Realistic

It may seem like we say this over and over again but being realistic about your financial situation and lifestyle will prevent a myraid of problems for you in the long run. It may seem like every one of your peers are moving into the hottest section of town but if you don’t have the available income to pay the mortgage, you’ll quickly experience regret, if not more dire consequences. While finances may not be an issue, your lifestyle may be. If you work eighty hours a week and travel extensively, you may not have time to maintain a large swath of land. Purchasing in a managed community or a property such as a condominium may be a better fit.

How to Avoid Becoming a FoMO Buyer

Be Decisive

The FoMO can lead a lot of Buyers to second guess their choices. This usually relates to current trends and styles. If you like a bungalow style home but fear that you’ll make a mistake investing in a home that no one else will want to buy in a few years remember that trends come and go. There’s also the old saying “there’s a lid for every pot” and there will be a buyer for every house. Quality and tradition almost always trump fleeting trends. Purchasing a home that matches your needs and desires instead of the latest trends will almost guarantee you’ll appreciate your decision. Further, once you make a decision stop yourself from continuing your search. You’ll drive yourself crazy with second guessing what could have been.

Don’t Listen to the “Experts”

All those talking heads on television may be saying it’s a great time to buy because interest rates are low and housing prices are moderate but it may not be exactly true. Any time is a good time to buy in an ideal, controlled market but most markets aren’t controlled and steady. They fluctuate during the year depending on local events and factors. Further, individual circumstances, such as debt and credit scores, may affect the “low” interest rate mortgage a Buyer may be able to secure. Bottom line is don’t listen to the talking heads and their urging that those who don’t buy during the current conditions will miss out for years to come. Talk with a local expert, someone who is experienced and entrenched in your local market.

Keeping a level head and objective view about your home buying decision will help you avoid becoming a FoMO buyer and the regrets that eventually come with it.

4 Tips For Being a Good Neighbor

April 12, 2016 By Chris

You’ve spent a lot of time, not to mention money, on finding the perfect house for you in your ideal neighborhood. You’re going to spend a large amount of time in the same area with the same people, namely your neighbors. Getting along with your neighbors can either make or break your living experience. We have four simple tips to make you a good neighbor.

Be Friendly.

Whether you’re the new face in the neighborhood or just saw a moving van pull up across the street, take a few minutes out of your day and say “hello” and introduce yourself. It doesn’t take much effort and it can go a long way to make a good impression on your new neighbor and set the foundation for an amicable relationship. Some neighbors will open up and you may end up developing a friendship, others may value their privacy. Read the situation and go from there.

Be Considerate.

Many neighbor related disputes arise because of inconsiderate behavior. Think before you act. Avoid allowing your dog to bark unchecked early in the morning or late at night. Same goes for doing lawn maintenance or construction. If you’re having a party, make an effort to leave some free parking spaces for your neighbors. If your property shares an amenity such as a fence or tree, talk with your neighbor about maintenance or replacing these things.

4 Tips For Being a Good Neighbor

Address Issues Head On.

If you’re on the receiving end of inconsiderate behavior, don’t immediately jump to complaining to the HOA or filing a grievance with the police. Approach the offending neighbor one-on-one don’t gang up on one person, even if it is a neighborhood-wide offense, and simply ask them to rectify the issue. While it may seem obvious to you, some people aren’t bothered by loud noises early in the morning or mind having to clean up after someone else’s dog.

Take Pride in the Neighborhood.

Everyone in the neighborhood has the right to enjoy a clean and safe place. If the garbage pickup isn’t until Monday, don’t set your garbage out on the front curb until Sunday evening. Make sure that your pets are secured at all times, either on a lease or behind a locked gate. Also make sure your pool is gated and locked to prevent curious kids from taking an unsupervised dip. Taking pride in your neighborhood also means keeping the exterior of your property tidy. Manicured lawns, clean flower beds, and exteriors in good condition will help maintain home values throughout the neighborhood, something that benefits everyone.

What tips do you have for being a good neighbor?

Home Ownership: How to Take Hold of Your American Dream

March 15, 2016 By Chris Leave a Comment

Many Americans feel that one of the cornerstones of the American Dream is home ownership. It’s not secret the market is still recovering from the recession years but with considerable improvements in home values over the last two years coupled with still incredibly low mortgage interest rates, now is a fantastic time to take hold of your American dream.

Get Started

Check your credit history. You want your credit score as high as possible and your report needs to be squeaky clean. Aim for a score of at least 620. Remember – errors are not uncommon. If you find mistakes, contact the credit agencies immediately, as resolving them can take a lot of time and effort on your part.
Set your home buying budget and lifestyle budget and try it on for size for a few months. If you find that a larger mortgage payment makes your financial situation too tight for your liking, consider putting down a larger down payment or shopping in a lower price range. Only you know what you can afford, but the rule of thumb is approximately 2.5 times your annual gross income.
Get your mortgage pre-approved. Before you begin looking for your home, meet with a lender, review your finances and find out how much you can borrow. This will further help you determine a realistic price range, and could speed up the closing process.
Be sure you have ample funds available for a down payment. Lenders prefer 20 percent, but some will accept as little as 3.5 percent of the purchase price.

Seek Out Professional Help

Buying a home is complex. One of the key components to buying is working with an experienced, reputable and trustworthy real estate agent. He or she will be familiar with the local market and its fluctuations. They’ll also be familiar with different neighborhoods, local schools, and have on hand recommendations for inspectors, contractors, and engineers you may want to hire to thoroughly analyze the property before you make an offer. By working with a trusted and experienced real estate agent, you’re hiring a professional to help guide you through the buying process.

Once you have hired a Realtor, he or she will help you search for properties, advise you on how to make the best possible offer, draw up the necessary documents once an offer has been accepted, and guide you through the steps necessary to reach the closing table. Your relationship with your agent is a partnership so don’t feel hesitant to ask questions, voice your concerns, and have the Realtor advocate on your behalf.

Hounchell & Associates stands ready to provide you with unparalleled product knowledge, in-depth industry analysis, professional service and the honesty that has earned us a reputation for being a leader in the general real estate, pre-foreclosure, short sale and foreclosure markets in the Pinellas County area. Contact us today at 727-642-9107.

Editor’s note: This post was originally published in January 2011. It has been updated to reflect the most current information and edited for clarity and cohesiveness.

Claim Your Home Mortage Interest Deduction

December 15, 2015 By Chris Leave a Comment

Since 1913, American homeowners have been able to claim a mortgage interest deduction from their federal income taxes. There are limitations however; interest paid on first & second mortgages, lines of credit secured by real estate, and home equity lines of credit valued up to $1,000,000.00 or $500,000.00, if married and filing separately, is able to be deducted. After those limits are reached the remaining interest is not deductible.

Claiming Your Mortgage Interest Deduction

What do I need to do it claim the deduction?

First, fill out IRS Schedule A to determine whether your itemized deductions, including your mortgage interest, exceed your standard deduction. If they do, you’ll need to file the 1040 long form. Second, you’ll need Form 1098, your Mortgage Interest Statement, from your mortgage lender. This details the amount of interest and mortgage-related expenses you paid during the tax year you are filing for. Third, if you bought the property in the year for which you are filing, you’ll need the HUD-1 Settlement Statement form from your lender. This itemizes the fees you paid when you closed your loan.

If you prepare your own taxes, check out IRS Publication 936, the Home Mortgage Interest Deduction, and the instructions for filing Schedule A. If you use an accountant, he or she may simply need Form 1098 and the HUD form, but double check whether any additional documents are necessary.

Who qualifies for the deduction?

In order to qualify you must be legally liable for the loan. In other words, you’re not able to deduct mortgage payments you’ve made for someone else unless you’re legally liable to make the payments. Also, a qualified home, i.e. your primary or second home, must secure the mortgage. And, be sure to double-check that the mortgage interest deduction you claim on Schedule A and the amount on Form 1098 are the same.

Additionally, keep your 1098 Form and any worksheets you use to figure the amount of your deduction along with a copy of your return for as long as is legally necessary. If you need additional information, check the IRS for their guidelines.

Editor’s note: This post was originally published in January 2011. It has been updated with the latest information and edited for cohesiveness.

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