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Money Saving Tips for Homeowners

by Melissa Thompson


There are a lot of perks to home ownership, but let’s face it; it can be expensive.  You’re not only making a mortgage payment every month, but you are also responsible for maintaining your home.  But there are lots of easy ways to save money without ever leaving the house. Follow these tips and start saving today!

  1. Save money on your electric bill by utilizing natural ways to cool your house.  During the spring and summer, open your windows and use fans to get the air circulating through your home.  Ceiling fans will help too. Moving the air through the house will help cool it down quite a bit.
     
  2. Another way to save on your electric bill is to line dry your clothes.  Dryers use a lot of electricity, and there are many good reasons to choose line drying.  Not only is it an energy saver, but it may extend the life of your clothing! Top 10 Reasons to Line Dry Laundry
     
  3. Get rid of cable television. With all the options for streaming shows on apps like Hulu and Netflix, you could save a lot of money by ending your relationship with cable and using apps to stream your favorite programs.  You might be surprised to discover that even after upgrading your internet, you will still pay less per month than you did for cable television.
     
  4. Always unplug.  Even when you are not using an appliance, if you keep it plugged in, it is still pulling electricity.  It may not seem like much, but over years you can save quite a bit by unplugging when not using things.  Chances are you are not going to want to be bothered with walking around your house to unplug everything, but to make it a little easier, consider using power strips so you can just unplug that at the end of the day.
     
  5. Use a shopping list.  This may sound silly, but when you go shopping without a list you often come home with way more than you need.  Make a list and stick to it. It will not only make shopping more efficient, but it will save you money in the long run.
     
  6. Learn how to do basic home maintenance.  You can save a ton of money over time by being able to take care of home maintenance yourself.  By doing small tasks like replacing filters and cleaning out dust, you can lengthen the lifespan of many appliances, thus saving money that way as well.  Home Maintenance for Dummies Cheat Sheet
     
  7. Bundle up and save on heating costs.  Invest in quality, warm blankets so you can turn the heat down and still be warm and cozy when you sleep at night.  Decreasing your heat by just a few degrees can save you a lot of money over time.
     
  8. Create a budget and try to stick to it. By creating a budget, you will be more conscientious about your spending.  It will not only help you to see where you are spending too much, it will also assist you in prioritizing your spending.

Saving money is important.  Whether you’re saving for retirement or for a special family vacation, it’s the little things you do that make a big difference in the long run!

If you are in the market to buy or sell a home in the Memphis area, contact professional Realtor, Melissa Thompson, and let her help you with all your real estate needs. Give her a call at 901-729-9526 today!

Don’t Get Blindsided by Unexpected Expenses!

by Melissa Thompson

Buying your first home is exciting.  After getting approved for a mortgage loan, working with a professional realtor and finding your dream home, it’s time to settle in and start enjoying your new digs.  Then BAM!  The shock of an unexpected expense slaps you in the face.  Don’t let that happen to you.  Being informed about the possible expenses of being a homeowner will not make spending the money any more fun, but at least you will be prepared.  Here are some ancillary costs of homeownership that you should be aware of:

  • CLOSING COSTS - When closing on your mortgage you will be presented with a long list of costs: mortgage taxes, lender application fees, attorney’s fees, title insurance, recording fees and any potential real estate tax reimbursements if the seller has paid them up front.  Altogether, closing costs are an average of 2 to 5 percent of the total cost of the home.  They will vary state to state.  Closing cost information for Tennessee can be found here: Tennessee Average Closing Costs
     
  • HOME MAINTENANCE - Now that you are a homeowner, you are solely responsible for the maintenance and upkeep of your property.  Everything from yardwork to cleaning; pressure washing to clearing the gutters…it’s all in your hands and on your dime.  Oh…and fixing things.  Yeah.  When the AC isn’t working or there is a leaky faucet, you will be footing the bill for repairs.  This all sounds a bit scary, but the key is to be prepared.  Go into your home purchase knowing that you will likely be spending about 1% of the purchase price of your home on maintenance annually.
     
  • PROPERTY TAXES - Property taxes vary by state and can also vary based on city, ordinance, and even specific house.  You can utilize a Property Tax Calculator  to get an idea of what your taxes will be when planning for your expenses.
     
  • UTILITIES - If you’re coming from a rental where your utilities were included with the rent, you may not have considered how much you will need to set aside to pay for electricity, gas, water and sewage costs.  Added to internet, cable and phone bills, it can be quite a chunk of change.  Planning for utility costs is crucial to making sure you can afford to live in a home of your own.
     
  • HOMEOWNER'S INSURANCE - When you get a mortgage, you must get homeowner's insurance as well.  Be sure to do your homework and shop around for the best possible price.  You can get discounts for things like security systems, working from home or bundling coverage for your home with your auto insurance policy.  Educate yourself on what your insurance policy covers so that you’re not left disappointed when you must pay for something you thought would be taken care of.

Don’t let these expenses scare you off from purchasing a home.  Again, the key is to be aware of them going in so that you won’t be caught off guard when they come up.

If you are ready to purchase your first home, let professional Realtor Melissa Thompson  assist you in your home search. Give her a call at 901-729-9526 today!

Photo Credit: moneyweek.com

5 Reasons Millennials Choose to Buy

by Melissa Thompson

Some Highlights:

- “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”

- The top reason millennials choose to buy is to have control over their living space, at 93%.

- Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.

Contact your local expert’s at The Melissa Thompson Team 901-729-9526 or [email protected] for all your Real Estate needs!

By: KCM Crew

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Free Yourself from Debt and Become a Homeowner!

by Melissa Thompson

As a Realtor, I love helping people purchase their first home.  However, there are two major challenges that I see time and time again with first time home buyers:

- They often carry too much debt.
- They don’t have enough cash for a down payment.

These two issues are strongly related in that people need to reduce debts that inhibit them from saving money.

We all know that we shouldn’t spend more than we earn, but falling into the debt trap is easy to do.  You see an expensive item that you must have and you think, I will use my credit card now and pay for it with my next paycheck.  It sounds reasonable at the time, but next thing you know you’ve done something like that often enough that there is a beastly credit card balance hanging over your head.

So, now you’re in debt.  You have regrets, but no use doing the “should have, would have, could have” dance.  Now it’s time to move forward and take the steps needed to reduce your debt.  Here is a list of things to do to change the way you manage your money.  Follow these steps and before you know it you will be on your way to saving for a down payment on your first home!

- Stop adding to your debt. The first step to getting out of debt is to stop adding to your outstanding balances. To remove temptation, carry only one credit card with you…and make sure it is the one with the lowest limit so that it is impossible to get into serious trouble with it.  Leave any other credit cards in a safe place at home to keep yourself from going on an impulsive shopping spree. 

- Take an inventory of your spending habits. This may not be a fun activity, but it is helpful to see how you are spending.  Create a list of where your money goes each month including rent, utilities, car payments, food, credit cards etc. Once you have done this, split the list into two categories: bills you must pay every month and debts you need to pay off.  The second list then can be organized in order of urgency, either based on outstanding balance or highest interest rate.  Now you will have a clear picture of your debt situation. Financial Inventory

- Eliminate the largest debts first. Make a minimum payment for each of your credit card bills, but then make an extra payment on the bill that is at the top of your list. Do this monthly until that bill is paid in full.  Now take the money you were using for that bill and start applying it to the second item on your list.  Continue this until all of them are paid off. 

- Cutting expenses and making the payment.  If you are already in debt, how are you going to find money for an extra payment?  Well, some sacrifices must be made.  Cutting back on extras like trips to Starbucks, entertainment and eating out can free up cash that can go toward that extra payment each month.  Ways to Cut Monthly Expenses

- Prepare for the Unexpected. Sometimes life is a struggle and unexpected challenges such as car repairs or medical expenses will pop up from time to time.  As you cut expenses and start to save money, set up an emergency savings account just for these occasions.  That way you will be prepared and won’t have to use a credit card and add to your debt.

- Lower your interest rates. Give your credit card company a call to see if they will lower your interest rate. If they say no, shop around for a card with a lower rate and transfer your debt (be careful of transfer fees to make sure the transfer benefits you). You can also seek out a consolidation loan from your bank. They will pay off your debt and you can pay them back at a lower interest rate. How to Lower Credit Card Interest Rates

- Stick to it!  As you see your debt decrease and see your cash increase, don’t fall back into old spending habits. As you have more money available, put it right into your savings and soon you will have the money you need for a down payment on your first home!

When you are ready to start your home search, contact the professionals at Your Key to Memphis to assist you with all your real estate needs!

http://www.yourkeytomemphis.com/Blog/Buying-or-Selling-in-2018-5-Reasons-to-Resolve-to-Hire-a-Pro

http://www.yourkeytomemphis.com/Blog/Housing-Prices-are-NOT-Heading-for-Another-Crash

http://www.yourkeytomemphis.com/Blog/Debunking-Real-Estate-Myths

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Tips for Preventing Electrical Safety Hazards

by Melissa Thompson

Electricity is a beautiful thing.  It provides warmth in the winter and cools you off during hot summer months. It gives you light in the dark and makes chores like washing/drying clothes and doing dishes so much easier.  You take it for granted because you’ve always had it and you certainly can’t even imagine what life would be like without it.  Because it is such a normal part of your life, you probably don’t stop to think about how dangerous it can be.  It is important to be educated about possible electrical problems in your home so that you will know how to deal with them before they happen.

  1. Do you know how old your home is?  Often older homes don’t have the capacity for electricity that current technology uses.  If you have never had an electrical safety inspection by a professional, now is the time to do so.  If your home’s electrical wiring has not been updated to safely handle all the current that your family uses, it is crucial to have it done.
  2. Is your electrical panel hot to the touch?  It shouldn’t be.  Check the brand of your panel. Several brands are outdated or faulty and should be replaced.  A faulty electrical panel can lead to a fire.  That is not something anyone should risk.
  3. Outlets should not be hot either.  If you feel an electrical outlet and it is warm or hot, it means there could be a problem.  There are dangerous issues indicated by a warm/hot outlet. Whether it’s too much demand on the outlet, faulty or melting wiring, or other precarious situations, you don’t want to ignore it.
  4. Keep plugged in appliances away from water.  This seems obvious, right?  But sometimes limited space forces us to use electrical appliances near sinks or bathtubs.  Whether you are blow-drying your hair at your bathroom vanity or your kitchen only has one plug for your toaster and it’s right by the sink, be extra careful.  If a plugged-in appliance gets wet, don’t unplug it. Go to your electrical panel and unplug the power source for the outlet you’re using.  Then you can unplug it.
  5. Make sure you are using the correct wattage light bulbs.  Using a higher wattage than can safely be accommodated by a lamp or light fixture may overload its wiring, which is a fire hazard.  It’s ok to use a light bulb with wattage equal to or less than that called for on the lamp’s socket.  If you want brighter light, look for a lamp that uses a higher wattage bulb.
  6. Use an experienced, licensed electrician to handle your home’s electrical repairs and/or replacements.  Professional electricians are well-trained and have years of on-the-job experience before being granted a license.  They will know current codes and regulations and can safely navigate any problems they might come across.

It’s easy to prevent electrical hazards if you are informed and educated about what to be aware of.  So, don’t take electricity or your family’s safety for granted!

http://www.yourkeytomemphis.com/Blog/Tips-for-How-to-Make-Your-Home-Feel-Secure

http://www.yourkeytomemphis.com/Blog/Home-Maintenance-Projects-You-Should-Start-Now

http://www.yourkeytomemphis.com/Blog/Luxurious-Laundry-Rooms

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Happily Ever Homeowner

by Melissa Thompson

Married couples once again dominated the first-time homebuyer statistics last year at 66% of all buyers, according to the most recent Profile of Home Buyers & Sellers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

Many couples are deciding to use what would otherwise be their wedding fund as a down payment on their first home, as unmarried couples made up 8% of all first-time buyers last year. If you’re single, don’t fret; you can still buy your dream home! Single women made up 17% of first-time buyers in 2016, while single men accounted for 7% of buyers.

According to a survey by the Wedding Report, the average cost of a wedding in the United States at the start of the year was $25,961, which equates to a 10% down payment on a median priced home.

A recent article from the New York Times found that many singles are now asking their parents to allow them to use the money they’ve saved up for their wedding day to instead buy a home.

In the case of Carrie Graham, a Protestant minister from Austin, TX, her parents had saved a ‘five-figure sum’ for her wedding and were more than willing to give her that money as a down payment on her dream home. Graham told The New York Times,

“Buying the home wasn’t me saying, ‘I’m never going to get married’ or I am going to get married.’ My own home had way more than equity benefits. It was a real gift to have a home in an extremely desirable neighborhood in a city that I love. It’s brought me joy.”

Bottom Line

More and more first-time homebuyers are finding a way to purchase their dream homes, even if that means delaying their dream weddings.

Contact your local expert’s at The Melissa Thompson Team at 901-729-9526 or [email protected] to find your dream home! 

BY: KCM Crew

The 5 Greatest Benefits of Homeownership

by Melissa Thompson

Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”

  1. Homeownership can help you build equity over time.
  2. Your monthly payments will remain stable.
  3. You may have some tax benefits.
  4. You can take pride in ownership.
  5. Homeownership improves your community.

Let’s expand on each of Freddie Mac’s points:

Homeownership can help you build equity over time.

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.

Your monthly payments will remain stable.

When you purchase a home with a fixed rate mortgage, the majority of the payment (principle and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.

You may have some tax benefits.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items from the Briefing Book:

  • Mortgage Interest Deduction
  • Property Tax Deduction
  • Imputed Rent
  • Profits from Home Sale

You can take pride in ownership.

Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.

Homeownership improves your community.

The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study explained:

“Homeownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”

Bottom Line

There are many benefits to homeownership. That is why it is still a critical piece of the American Dream.

Contact your local expert’s at The Melissa Thompson Team 901-729-9526 for all your home buying needs. 

By: KCM Crew

The Cost of Renting vs. Buying in the US

by Melissa Thompson

The Cost of Renting vs. Buying in the US [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Historically, the choice between renting or buying a home has been a tough decision.
  • Looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the percentage needed to buy a median-priced home (15.8%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!

Thinking about buying your own Memphis TN home, Call your local expert’s at The Melissa Thompson Team 901-729-9526.

 

 

Four Reasons to Buy a Home Now!

by Melissa Thompson

You may be wondering if this is the best time to buy a home.  Spring is a busy time in general for real estate transactions and right now it’s a seller's market, meaning supply is low and demand is high. But the truth is, there are always excellent reasons to buy a house, regardless of market activity.

First, buying is cheaper than renting. The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

Another benefit of homeownership is that it forces you to save money. The financial commitment you make when you buy a home means that your monthly housing cost must be paid, no matter what.  When you take on this responsibility, it may inspire you to be more frugal and to save more.

Tax deductions are also a perk of owning a home. There are many tax advantages, including (but not limited to) reducing your taxable income by deducting interest paid on a home mortgage and deducting property taxes paid.

Finally, experts expect home price appreciation to continue. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

The bottom line is that buying a home now will prove to be a sound financial decision for years to come. Don’t wait!  Contact Melissa Thompson at Your Key To Memphis to find your dream home today!

Financial Planning: 4 Reasons to Buy a House Today

by Melissa Thompson

Financial Planning: 4 Reasons to Buy a House Today | Keeping Current Matters

Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educationalhealthsocial) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

2. Homeownership “Forces” You to Save

According to SavingAdvice.com, homeownership is a great way to save. Their advice is quite simple:

“Homeownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Homeownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”

3. Homeownership Offers Several Tax Deductions

According to the Tax Policy Center’s Briefing Book -“A citizen's guide to the fascinating (though often complex) elements of the federal Tax System” - there are several tax advantages to homeownership. Here are three:

  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Experts Expect Home Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

Bottom Line

Some are afraid that home values may have already peaked. However, we believe that purchasing a home now will prove to be a sound financial decision for years to come. As Warren Buffet said, “When others are greedy, be fearful. When others are fearful, be greedy.”

Learn more about buying Memphis Real Estate at yourkeytomemphis.com. 901.729.9526 or [email protected]

 

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Melissa Thompson
Crye-Leike Realtors
6525 N Quail Hollow Road
Memphis TN 38120
(901) 729-9526
(901) 756-8900
Fax: (901) 435-0620