What Influences Home Value?

The Value of your home can be influenced by a number of factors. As a homeowner, you want to do everything you can to keep that property value up high. Why, you ask? Because when you are ready to expand your family and move into a larger home, or when you become an empty nester and you’re looking to downsize, the best way to ensure you have a good chance at selling is making sure that your home still has value that you can profit off of. So then, what can positively affect your home value?

How Up to Date is Your Home?

Adding renovations and modern improvements are a great way to keep your home up to date with those that are currently on the market. You’ve got to keep up with the competition.

What Neighborhood are you in?

What kind of people live in your neighborhood? The surrounding environment is often a large factor in the value of your home. An elderly couple who may be looking to buy their final home most likely isn’t going to want to move into your neighborhood if there is a Frat house on the block.
What kind of homes are in your neighborhood? The type of homes that are built in your area is also a factor. A newlywed couple who is looking to start a family may not want to move into a neighborhood where the houses are limited to one or two bedrooms.
Other things that can influence the value of your home are the crime rate in the area as well as the schools that your house is zoned for.

Location, Location, Location

Are you in the city or the suburbs? Maybe you’re in the country with corn fields all around. Wherever you are, the value of your home can go up or down depending on the quality of your location.

Market Conditions

The market changes all the time. Rates go up then they go down, and sometimes they even mellow out. Remember, a good pumpkin means nothing to a farmer in the spring time. What that catchy little saying teaches us is that the season has to be right in order for good to really sell. You could have an excellent house that still may not sell if the market isn’t right and buyers aren’t buying.

5 Important Points To Consider When Looking To Borrow.

There’s almost no greater time that citizens are looking for commercial loans other than a down economy. Simultaneously, lenders have the opportunity to be selective about who they lend to when only a small portion of people will fit all of their needs to borrow.

One could seek out a commercial loan for a variety of reasons, be it a home loan, car loan, or other significant life event that simply cannot be avoided. It’s important that lenders and borrowers alike know the key components that will be considered when considering a loan.

According to Scotsman Guide, a resource for mortgage originators, there are five important points to consider when looking to borrow:

Credit score and history
Net Worth
Ownership Experience
Free Cash Flow
Liquidity

Many lenders will begin by evaluating your net worth and liquidity, which involves more than just subtracting liabilities from assets. In order to present yourself as a valuable borrower, lenders will want to see detailed financial statements of your spending and properties. These financial statements should also include all liquid assets, such as stocks and bonds.

In addition to these assets, it will also be important to show a potential lender your various types of ownership in the past. These past ownerships combined with past spending will amount to the ever-important credit score, which will be evaluated in any type of borrowing situation. The last important factor will be free flow cash, or, cash that’s left over once necessary expenditures have been attended to. A lender wants to know that borrower can have many options for supporting themselves, increasing they’re reliability to pay back the loan.

Worried that you might not meet all of these requirements? Stay tuned for our next piece on how to improve your credit and net worth.

Las Vegas Home Prices Go Higher, Competition Getting Worse.

Imagine you're sitting at an auction. An item comes up for bid. You really want this item. When the auctioneer mentions the name of the item, you look around the room to see that no one was paying attention. You get this sense of adrenaline by thinking you're going to be the only bid. The auctioneer starts with "I'll be starting this bid for the item at $20. Do I hear $20"? Your hand shoots straight up towards the sky. Paddle in hand and a smile on your face. You take another glance around the room, and realize that everyone else has their paddle up. The only difference is that their opening bids start at $100,000 and their paddle is more attractive looking. That's what the housing market in Las Vegas feels like at this exact moment in 2014.

In cities like Las Vegas, San Francisco, San Diego, prices have climbed by as much as 20% or more in the past year, well above the national average of 13%, according an article posted on CNN's Money Blog earlier this morning. What this means is that home buyers, not to mention first time home buyers, are being thrown into the professional leagues of home purchasing right out of the gate. A game that used to only be played when a house was being sold at prices above $400,000. Now you have more than 90 bids, especially in the Las Vegas Housing Market, for homes being sold for under $150,000.

Why are we seeing the competitiveness in the Las Vegas Housing Market? The underlining fact is that most homes are being held onto by the home owners until the housing market improves. This means that fewer homes are available for purchase than ever before. The irony here is that now, more than anytime, is the best time to put your house up for sale.

Imagine yourself holding a garage sale. You price an item. You have two individuals dueling for the chance to own this item. All the sudden, a third and fourth individual step in increasing the competition. Now, the price for the item has risen well above
your asking price. You just hope it keeps going, until one is left standing. Well, you could have that right now in the housing market in Las Vegas. You put up your home for $210,000. Because there are only a handful of homes available, everyone is going to put in their bids. Are you going to get the price you wanted? No. You're going to get more.

If you read our last article, you would understand what is going on a bit more. In San Francisco, giant Tech companies like Google and Facebook are buying houses, left and right, and then selling them to their new hires who are relocating to SF for their new job. They are also providing a ride to work with streaming wifi and all the bells and whistles. This is causing a huge issue with the residents of San Francisco, mostly because they do not want to see their housing values depreciate because the 20 something next door knows nothing about maintaining a lawn.

Whats worse about this whole housing market situation in Las Vegas is that roughly 35% of offers on home purchases were cash. Not Credit, not a loan. Cold hard cash. And they still were outbid. So you get these cash in hand offers coming in. It's really hard for a first time home buyer, or any home buyer for that fact, to buy a home. Not their dream home. That was bought many years ago by an even wealthier individual that has had perfect credit since 1982. We're talking about a house that is just big enough and still needs some TLC to bring it up to code.

So if, you're looking to buy a home, this year, get on it. Save your pennies, and be ready for some mean girls kind of trickery to take place.

How Up to Date is Your Home?

What Neighborhood are you in?

Location, Location, Location

Market Conditions

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