Lake Havasu Real Estate

02/03/2024

The truth is that if you want good money for your home, you have to do a little work to get it "show ready." Buyers expect to be able to walk in to a clean, decluttered home - at the very least. If it's not updated, it better at least look like it's move-in ready.

01/24/2024

Some really good info here if you are thinking about moving up.

The starter home. It was so cute and quaint and sweet when you bought it, right? But, that was before kids and dogs and overnight quests and holiday dinners that require mathematician-level logistics to finding everyone a seat in a dining room that bursts at six people.

10/22/2021

Real Estate News You Can Use - Getting Help with a Down Payment

A down payment is something you’re likely going to need to get a mortgage to buy a home unless you’re using a Veterans Affairs (VA) loan. Saving up for a down payment is one of the more significant barriers for many people that prevents them from achieving homeownership.

A down payment is an initial payment you make when you buy a house. Down payments are usually calculated as a percentage of the purchase price. The amount can be as little as 3%, but conventional mortgages are generally around 20%.

The specifics of a down payment requirement depend on the type of mortgage you’re applying for, the kind of property you’re buying, and your financial situation.

If you can make a larger down payment, you might be able to get a lower interest rate or buy a more expensive house. Large down payments can also mean you’re responsible for smaller monthly mortgage payments.

Lenders require down payments because it helps reduce their risk exposure. You’re investing in the home, so if you were to stop making your mortgage payments, you’d be walking away from a lot of money. Down payments also reduce how much a lender has to give you to make the purchase.

Not everyone has a large chunk of cash sitting aside to use to buy a house, however. There are down payment assistance programs available, some of which are detailed below.

The Basics of Down Payment Assistance Programs

Down payment assistance programs usually come from state housing finance agencies. Sometimes these programs are also managed and offered by cities and counties and nonprofit organizations.

Types of assistance might include:

• Grants, which are a gift of money that doesn’t need to be repaid.
• Forgivable, zero-interest loans, which don’t have to be repaid as long as the borrower still owns the home and lives in it after whatever the period is—usually somewhere around five years.
• Deferred payment, zero-interest loans, often require no payments until the home is sold, the mortgage reaches the end of its term or the mortgage is refinanced.
• Low-interest loans are available and have to be repaid over a certain period of time. These help homeowner spread their down payment and closing costs over a more extended period rather than having to come up with the money all at once.

Who Can Access Down Payment Assistance?

Most programs offering down payment assistance are geared toward first-time buyers, but not all.

Even if you’ve already owned a home and a program says it’s for first-time buyers, often the program will define a first-time buyer as someone who hasn’t owned a home in the past three years.

There are also programs for specific demographics, like teachers or first responders.

Most down payment assistance programs will require that you complete specific steps, which vary depending on the program itself. For example, you might have to meet income limits or take a homebuyer education course. You could be required to buy in a particular location or stay below a certain maximum purchase price. Sometimes you’ll have to contribute your own money to your down payment too.

How Can You Find a Program?

If you’re interested in learning more about down payment assistance programs, you can contact the housing finance authority in your state or your local city or county government. The U.S. Department of Housing and Urban Development (HUD) also has state-specific information.

The Consumer Financial Protection Bureau has a tool that will link you to housing counselors where you live.

If you are going to apply for a mortgage and use down payment assistance, you’ll have to find a list of mortgage lenders who are approved to work with that particular program. Often, the local agencies and programs assisting can connect you with experienced loan officers.

05/21/2020

5 Tips to Save in Your Kitchen Remodel:

The kitchen is the hub of the household. It is where the family gathers daily to socialize and create delicious cuisine.

Without a doubt, the kitchen is also one of the most important rooms to remodel to potentially increase the value of your home. In fact, a home that has undergone a kitchen remodel sells 8% faster, according to realtor.com studies.

Historically, the kitchen was once hidden away from the main house for several reasons, such as to reduce excessive heat and to control smells. Nowadays that is no longer the case. The kitchen has made its debut as an integral part of the home and perhaps the most important room, which is why many homeowners are looking to upgrade the space. In this article, we will explore tips to save in your kitchen remodel.

Top Ways to Save in Your Kitchen Remodel

The average cost of a kitchen remodel in the United States is between $8,500 to $25,000. The figure might seem a bit wide-ranging, but if you are looking for ways to pinch your pennies, then rest-assured that with frugal decisions, you can cut costs to keep the total amount in the lower end of the spectrum.

1) Choose mid-range efficient appliances

Sure, it is tempting to pick only high-end appliances for your kitchen, but such high-dollar items are usually unnecessary. You can choose practical, energy-efficient appliances that boast acceptable warranties and look fabulous.

A factor to consider when picking appliances is longevity. Refrigerators usually last only 15 years or less but a cooktop and range function last considerably longer. Also, if you have a large family then you are constantly washing dishes, so a large, efficient dishwasher becomes a mandatory investment.
Whichever appliances you choose, try to stick with one brand and appearance. Stainless steel remains the most popular finish choice. If you want your home to appear modern, then you will want to pay close attention to design and appearance while still trying to avoid paying premium prices. Instead, settle for moderate workhorse appliances that provide you with looks, function, energy-efficiency, and longevity.

2) Opt for affordable yet durable counter materials

When you walk into a kitchen, you might believe your focal point is the cabinets but most people zero in on the countertops first. Perhaps it is the clean, sleek design or the sparkle of the surface. A showpiece countertop dictates the cabinetry, room furnishings, and color scheme.

When picking countertop materials, remember you can pick granite with a rating of a level 2 grade (mid-grade) versus a level 3 (premium grade). The differences are subtle and usually missed by a novice who does not work in the granite business. Choosing a lovely, mid-grade granite countertop offers a greater return-on-investment. The cost of granite countertops runs from $35 to $500/sq. ft.

Laminate countertops are another option. They mimic the appearance of granite without the high cost. Historically, you could not install an under-mount sink in a laminate countertop, but designs have changed and now you can. Laminate hovers at an affordable $5 to $30/sq. ft.

Quartz (an engineered stone) and concrete countertops are other cost-saving options. The average cost of quartz is $55 to $200/sq. ft. and concrete runs $75 to $200/sq. ft.
Resurfacing an older countertop with tile is another option. This project typically costs around $10 to $70/sq. ft.

3) Go for a cosmetic upgrade instead of a whole cabinet replacement

It’s tempting to purchase all new cabinets for the kitchen but that can become expensive with 30 linear feet of average cabinets costing from $6,412 to $11,400 for installation. However, resurfacing the existing cabinets is a great way to provide an instant facelift to the room. Many opt to carry out refinishing cabinets as a DIY project to save even more.
You can also replace kitchen cabinets with veneer models instead of real wood. Budget cabinets range from $70 to $100 per linear foot. Handles, k***s, and pull are the crowning glory on your kitchen cabinets. However, that does not mean that you must spend a fortune on the hardware.

K***s can range from $1 to $100 and hinges from $1 to $15. There is a huge range of prices so you can find your comfort zone within your budget.

4) Install a backsplash with attractive, long-lasting materials

Backsplashes look good and showcase not only the kitchen cabinets but also the countertops. There are a lot of different backsplash materials you can choose to create your perfect backsplash, but they aren’t all created equally. Depending on how much cooking you do, you’ll want to find a material that’s durable, stylish, and long-lasting.

Ceramic tile is very popular but it’s also costly, with the average price hovering at $5 to $100/sq. ft. However, you can pick a porcelain tile for $5 to $20/sq. ft. Also, why not cut costs by using large tiles that would usually be laid on floors as a backsplash? The bigger tiles require less grout and costly cutting. Deco-pieces like glass tiles are easy to fashion into eye-catching mosaics.

5) Plan ahead by shopping around and doing some work yourself

Feel out your contractor’s schedule and get him at a slower time of year. Typically the middle of summer and the middle of winter are a little slower and could get you a better rate.
Next, check your local tile, stone, flooring, and bathroom fitting showrooms for odd lots. Odd lots are often left over or returned items. They’re just as good quality, but they go for rock bottom prices. The only catch is that what you see is what you get, so if you need 150 square feet of something, and they have 140, it won’t work. But, many times you can get lucky and find a thousand feet of something discontinued that you can get for pennies. This also goes for sinks and faucets - it really pays to check around, especially if you aren’t picky.

If you need a small piece of stone for a vanity top, bar top, or table, also be sure to ask about remnants at the stone yard.

Final thoughts

Yes, you can create the kitchen of your dreams on a shoestring budget with just a few of the ideas above. These tips to save in your kitchen remodel help you create an upscale remodel without spending an excessive amount of money. You can enjoy your beautiful kitchen while feeling good about the fact that you have potentially increased the value of your home, which is a great return on your real estate investment.

05/06/2020

Should I Sell Now in the middle of a Global Pandemic?

The Covid-19 pandemic has put the world on pause. Should you put your real estate plans on pause, too?

This article reaches a sizable audience, so there’s not just one answer to this question. In direct conversation with you—one-on-one—this question could be answered with specific reference to your location, property, finances, and desired outcomes, but there would still not only be one answer to this question.

Real estate, by its nature and its tremendous location-driven diversity, makes that question open-ended, with many possible answers:

• Each option has many perspectives.
• Each property is unique.
• The reasons homeowners love, or are ready to leave, their real estate are unique, too.

The greatest challenge can be uncovering and understanding the full range of options open to homeowners, not just during these bizarre times, but in any market—before making the decision to sell or not.

The seemingly-simple “sell or not” question can only be answered after tackling a series of other questions. Even without the pandemic, making the decision to sell your home is complex and usually involves significant emotional elements:

• If you had planned to list your property this spring, before you abandon that project, take a fresh look at that decision to sell. Identify your crucial criteria and how they may have changed during the pandemic.

• If you are now asking yourself whether you should sell because of the pandemic, the first step is deciding which are the crucial criteria involved in making a good decision to sell now or not to.

Don’t just let conflicting thoughts rattle around in your head. Jot down ideas to get your brain going. Identify issues and goals. Keep track of what you discover.

What’s driving you?

1. The Heart: Why do you want to move from this home right now?.

Is the motivation based on location, family changes, finances, work, or other issues important to you and your family? Prioritize these criteria. For instance, do record-low interest rates provide an exciting opportunity to buy your “dream home?” Has your work shifted permanently online, so where you live is no longer a work-related issue? Has your family situation changed, so that this home is no longer an ideal fit? How is the pandemic affecting your thinking? Will your decision be valid after the pandemic is resolved?

2. The Head: Why do you consider this the right time to cash in your main financial asset?

Pre-pandemic real estate values made many homeowners feel “house rich.” The pandemic has created stock market volatility and unexpected financial pressures that have devastated savings, investments, business assets, job security, financial prospects, and lives. Will real estate values in your area remain at, or return to, pre-pandemic levels? This financial pressure or its related uncertainty may be a driving force in your decision to sell. Does that make it the right decision?

No one knows the future, but a lot of people talk like they do. Be skeptical.

Real estate professionals are excellent resources and are experts at decision making. Real estate markets are local. Locate knowledgeable local professionals who understand the type of real estate you are interested in. Ask them what all your options are since their broad experience has taught them a degree of creativity that will amaze you.

Stick to the original sell decision?

Once you’ve re-examined your original decision to sell this spring, talk to your local experienced professionals to add a broader real estate perspective. Ask a lot of questions to understand exactly what has changed or improved in your local real estate market:

• Are current buyers intent on significant price declines which may conflict with your selling goals?
• How much could selling in this market net you?
• Are lenders receptive to mortgage lending in your area? Will deals close?
• In uncertain times, planning to close the deal months down the road can be risky. Would it be possible for you to close relatively quickly? How important is that for you?

Real estate professionals can help you separate fact from fiction.

Cash-in in the current market?

If you hadn’t planned to sell this spring, but now feel you should, what’s behind this dramatic change? With so much rumor, unsubstantiated opinion, and fraud out there, take care you don’t fall prey to flawed thinking or fraudulent scams that can take your property from you. Real estate decisions are not easily reversed.

Local real estate professionals can bring you up-to-date with what’s really going on in your area. They can share analysis of local sales and listings to provide solid information on what you could expect from the sale of your home and how quickly. They can explain the “nuts and bolts” of safely showing and selling in this altered “social-distance” market. They’ll also reveal risks that should be considered, including:

• What benefits to selling now do you want to cash-in on? Perhaps, you are concerned real estate values will drop and you’ll lose out on pre-pandemic values. Or, do you see advantages in what you could buy as your next home because of price depression in other markets?
• If you haven’t had time to renovate or modernize the most dated areas of your home, would low listing inventories cause buyers to overlook these failings just so they can now buy a home in their price range?

Real estate professionals can help you separate fact from fiction.

What’s the next step?

Before you get too involved in selling, take time to evaluate what your choices will be once your home is sold and you must move:

• Are you intent on taking cash out of the sale to invest or save? Is this the right time to take advantage of these financial strategies? Be cautious of a financial advisor who encourages the sale or mortgaging of your home to “make a killing” from stock market volatility. Be skeptical. If you lose everything, that advisor would still have made commission on the trades. What will you be left with?
• If you intend to rent once you sell, investigate your preferred rental market to be sure you can find what you want at the price you can afford. The pandemic has had devastating impact on many communities with no end in sight.
• Investigate the market you intend to buy into. What if inventories are so low that your choices are limited? This scarcity may inflate prices. On the other hand, low interest rates should enhance your purchasing power. Less competition from other buyers may give you a chance at property that might otherwise have been out of reach.

Should you sell now? Your decision should be based on research and thoughtful consideration, not fear. Relax into the decision. You’ll only be 100% sure in hindsight. Choose the answer that you can live with and thrive on.

05/05/2020

5 Outdoor Projects for a Beautiful and Fun Homecation Space

As the weather warms up, more families are starting to look forward to getting outside of the home to have some fun or just relax in the sun. And while a vacation may seem like the ultimate goal, most people find that by creating a better outdoor living area, they can have even more fun “homecationing” in their own yards.
There are numerous projects that you can do to add some fun and recreation to your yard. The following 5 projects can help you maximize your space, improve your property, and increase your enjoyment of your space with the good weather.
Patio: Affordable and Versatile
When you think about your outdoor living area, your patio should be home base. Patios are one of the most versatile things to add to your yard in terms of enjoyment and use, as well as style and appearance.
Your patio can be covered or open, have a fire pit or fireplace for gathering around in the evenings, host a grill and table, or be the base for a pool deck. You can even add bigger projects to the patio itself, like a hot tub, pergola, or outdoor kitchen. Basically, adding a patio adds a blank slate to your yard that can give you endless ways to customize it to your needs. Start with leveling and adding some pavers, then add furniture, lights, and a gathering place such as a fire pit or picnic table to start using the area right away.
Project cost: Most homeowners spend around $4,000 for a living room-sized patio of 12 x 18 feet made of stamped pavers.
Pool: Perfect for Kids and Hot Climates
If you’re planning on staying home all summer, a swimming pool may be a good investment. Pools can be tricky, as a large, inground pool needs a lot of space while an above ground pool doesn’t add a lot to your home’s value.
However, any pool can add a great way to cool off on a hot summer’s day, and can give you a way to relax and have some fun. Pools come in a wide variety of shapes and sizes. You can add an inflatable pool that’s big enough to cool off in just for the summer or you can go further and add a small inground pool like a plunge pool or an endless pool that will give you the chance to cool off without taking up your whole yard.
Project cost: The cost of building a pool varies greatly depending on the type of pool you choose. Above-ground inflatable pools start at $200, while you would pay around $20,000 for a plunge pool and $29,000 for an endless pool.
Court: for Sports Lovers
If you’re a sports-minded family and you want to use your yard to play regularly, consider adding a sports court to your yard. Many basketball court materials can be used to create a more generic sports court - you can install hoops for a true basketball court, or put up a volleyball net or other game materials to get more use out of the space.
Sports courts don’t require landscaping or a lot of maintenance, which can be attractive for homeowners that want to use their space, but don’t want to spend a lot of time watering, fertilizing, and caring for it in the long term.
Project cost: Installing a full-sized basketball court costs around $30,000. For a more affordable option, you can have a half-court over concrete for $15,000.
Deck: for Enjoyment and Increased Home Value
Decks are a great addition to any home. Decks give you a place to relax, gather, entertain, cook, eat, and more. Decks are also incredibly versatile - they can be a low wooden platform on a one-story home or an elevated backyard oasis on a larger property. Wood decks also have a fairly good ROI, so you’re not only increasing your enjoyment in your property, you’re also increasing its value at the same time.
Think about what things you would do on the deck before building to get the most out of the project. A deck built for entertaining might include a gas fire pit, built in benches, and a bar, while a deck made for the family might include a table, shade, and some built in swings underneath.
Project cost: Homeowners usually spend $17,200 to $19,000 for a 16' x 20' composite deck.
Front Porch: for Trendy Curb Appeal
One of the biggest trends of the last few years has been the farmhouse. The modern farmhouse has commanded great prices at time of resale and has everyone clamoring for one. One of the things that every farmhouse needs and that helps make the style is the extra wide front porch. The front porch not only helps create the look of a farmhouse, it’s also practical and highly sought after for its use. The porch enhances your entry to the home, gives you a place to relax and unwind on beautiful spring mornings and long summer evenings, and is often big enough to fit the whole family along with furniture and a porch swing. Adding a front porch will add utility and enjoyment to any home, farmhouse or not.
Project cost: Homeowners spend around $21,440 to build a porch.
Enhance Your Home and Your Enjoyment this Season
These outdoor projects will not only increase your property’s appearance and value, they’ll also increase your enjoyment in being at home. Whatever your family’s idea of a good time is, it’s possible to add things to your home that can help you achieve your goals. Consider tackling one of these 5 projects and get more from your homecation.

05/04/2020

3 Tips For Cleaning Out Your Garage

Many of us homeowners have something to hide. It is a disaster we spend our lives hiding from. It is something we often go through great lengths to prevent our guests from seeing. If you haven't guessed it by now, it is the garage; we all have garages. Now, if you have a nice, neat and tidy garage then this article is not for you, but if you are like the rest of us, meaning the garage area of your house is a disaster, then go ahead and continue reading. It's time to step up and finish that project that has been hanging over your head for years, and we're providing you with three tips that can help to clean out the garage.

1. Storage Space

For many, the garage turns into a "throw it anywhere" place, and this problem usually occurs due to a lack of storage space. Step one to start the tidying process is to make space. Whether that means adding shelving units to your garage or utilizing color-coded bins, the important part is that everything has a space. Having a storage spot for everything makes organizing less stressful. Next time you will need to store a random object you will know exactly where it goes.

2. Organize and Prioritize

After you have cleared space in your garage to store all of your items, the next step is to organize and prioritize. Everything will need its own spot or the system will fail. Carefully go through and organize a section for each of the different item categories you use. How you organize the categories is entirely up to you, just be sure it is a system that makes sense to you. Consider moving items you use frequently to easily accessible shelving units and bumping the Christmas bins toward the back, for instance. Also consider taking a good hard look at items you haven't used in years. Is that dusty, unused wedding gift something you really need to hold on to? Or can you perhaps donate it or sell it online instead? This process can be challenging for many people as they must face the facts that not everything is worth keeping, but it'll work wonders on decluttering.

3. Sell, donate, trash

If that previous step leaves you with a mountain of items to offload, it might be time to hold a garage sale. After all, one man's trash can often be another man's treasure. After the garage sale, consider donating whatever items are left, or checking if a local thrift shop may be interested in buying anything from you. Of course, it goes without saying that anything that is broken, too rusty, or simply too old might be best left for the trash.

12/09/2019

Should You Buy a Fixer-Upper?:

Home prices continue to rise, which is keeping many a renter out of the market. But, fixer-uppers present a potential opportunity. For starters, the lower prices create the affordability that is lacking in other segments of the market. So should you be looking for one? We’re breaking down the pros and cons.

The ability to buy a house

Median home prices are at a record high, while affordability is at one of its lowest points. The reality for many people is that there seems like there is no end in sight to renting. A fixer-upper may present an opportunity simply because of the lower price point that gets you in the door.

Pride of ownership

Pride of ownership is a real thing for homebuyers. And that pride grows even stronger when you’ve had a hand in making improvements.

Expecting the unexpected

You know how on every episode of every renovation show on HGTV there’s something in the wall or under the floor or in the attic that makes taking down a wall impossible, or at least price-prohibitive? Get ready for a whole lot of that.

Saving money

Certain renovations can seem expensive because the labor is factored in. If you’re doing the work yourself, you’ll be amazed how far your money can go.

Deciding what you can handle

If you’re handy—or merely patient and a quick learner—there may be no limit to your ambition as it relates to buying and fixing up a home. But it behooves you to be realistic, and painfully honest with yourself. Do you have the patience for a massive project? Are you the type who always finishes what you start or is it more likely that you’ll end up in a half-done construction zone for months (or years!) on end? How strong is your marriage (because it WILL be tested)? These are just a few of the questions you’ll want to ask yourself before you take the fixer-upper leap.

Growing your skills can be lucrative

The more you learn, the more you can apply to your home. But have you thought about how those skills can translate outside of this one home? Maybe buying and fixing up homes sets you on a new career path.

Paying the right price

Figuring out what to pay for your fixer-upper might not be so easy because you can’t make an apples-to-apples comparison with a home in better condition based on the standard price-per-square-foot equation.

Unlike buying a house that’s move-in ready, figuring out the market value of a fixer-upper isn’t a simple matter of comparing it with nearby houses that have the same number of bedrooms and bathrooms and so forth. This makes working with an experienced real estate agent even more important. Knowing how much a property is worth and where to start when it comes to negotiations is key to getting a good deal.

Increasing your home’s value

Greater affordability may be the immediate driver when it comes to buying a fixer-upper, but the potential for appreciation is just as important.

11/26/2019

1031 Real Estate Tax Exchange Basics:

Real estate is, by far, the best generator of wealth that you can invest in. But liquidating that wealth can be tricky, and there are few things more dismaying than watching the taxman take a big bite out of your investment profits.

Luckily, there are ways to shelter your profits from taxes, even as you upgrade and expand your investment holdings. One of the most powerful methods to do this is the 1031 exchange.

What, Exactly, Is a 1031 Exchange?

To put it simply, a 1031 Exchange allows you to “exchange” your investment property for another property of similar value, without paying taxes on the sale of the initial property.

Technically, you’re only deferring those capital gains taxes until you sell the newer, exchanged properties. But here’s what makes the 1031 exchange such a powerful tool: you can use further 1031 exchanges to defer taxes on those new properties by simply exchanging them for different, more valuable properties. In this way, you can keep expanding your holdings, tax-free, until your portfolio dwarfs the amount of deferred taxes.

Sound too good to be true? It’s not. But there are rules and restrictions.

What Properties Qualify for a 1031 Exchange?
There are two main rules governing 1031 exchange properties. First is the “like-kind” rule.

That term “like-kind” can be confusing, but it really boils down to two rules:

1. An exchanger’s primary residence is not considered like kind

2. Property held “primarily for resale” or “dealer property” are excluded from tax deferral

In other words, the property needs to be an investment, not a flipping project or where you’ll be living.

You can exchange that single-family home for another single-family home, or upgrade to a duplex. And down the line, you can exchange that duplex for another duplex, multi-unit building, or even an office building!

In this way, you could theoretically use 1031 exchanges to upgrade from a single-family home to an office building, all without paying a cent of taxes.

Timelines and Replacement Value

While the 1031 exchange swaps one property for another, you will be under certain time restrictions. You have a 45-day “identification period” after you close on your initial property to identify the next property you’re exchanging for. Because finding a perfect one-to-one match would be difficult, the law allows you to identify up to three replacement properties.

You don’t have to buy all three properties, but you are obligated to buy one or two of them for the tax-sheltering effects of the exchange to be activated. And the value of these properties (or property) must be equal to or greater than the sale price of your initial property.

How Long Do I Have to Buy My Next Property?

You must complete the sale of your replacement property within 180 days of closing on your initial property. The 45-day identification period runs concurrently with this 180-day
closing period.

How Much Will This Cost You?

The rules of the 1031 exchange require you to use a neutral third-party intermediary to execute the exchange of properties. If you use an Institutional Qualified Intermediary (the industry term for a vetted, credentialed third party), they’ll likely charge you a set-up or administration fee on each 1031 transaction. These fees vary, but will probably be in the neighborhood of several hundred to a little over a thousand dollars.

But the lion’s share of their fees will come in the form of interest earned on the exchange funds they hold in escrow between the initial sale and the purchase of the replacement property. This is a good deal for everyone involved, as the intermediary is compensated for their financial exposure, and you don’t have to pay most of their fee out of pocket.

All in all, it’s a small price to pay for one of the most powerful resources in a real estate investor’s toolkit.