Home Improvement: Financing Your Project and Mechanic's Liens

NORFOLK, VA, Dec 02, 2013—If you're currently looking to remodel your home but aren't sure how to finance it, you're in luck. There are many ways to finance a remodeling project, explains Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty. If you have equity in your home, a good credit rating, and steady income, you can refinance your mortgage and borrow a percentage of the equity to cover remodeling costs. “Refinancing is a good option if you can get a mortgage interest rate at least two percentage points below your current home loan rate,” says Eisenberg. Other options include a second mortgage, a home equity loan, or an unsecured loan. Less popular options: margin loans, which are taken against securities you own; and loans from retirement plans, life insurance policies and credit cards. Remember that if you're hiring contractors for work, you need to be able to pay them. “If for any reason you can't, they can take out a mechanic's lien – a “hold” against your property that provides contractors and suppliers legal recourse to assure payment for services,” notes Eisenberg. The liens vary from state to state and allow for a cloud on the title of your property and foreclosure action. Also, if you paid the contractor, but he failed to pay the subcontractors and laborers – who do not have a contract with you – then the workers may file a mechanic's lien on your home. “This could result in a double payment by you for the same job,” explains Eisenberg. “You can protect yourself from unwarranted liens by selecting your contractor carefully and managing your construction project responsibly. “Also, most construction lenders will specify a payment distribution process that involves the securing of lien waivers,” Eisenberg continues. The remodeling contract should address this as well, assuring that the general contractor is responsible for all payments as well as any costs required to remedy lien disputes that may arise. For more information on refinancing, please contact Louis Eisenberg, REALTOR, ABR, SFR, Associate Broker, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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Home Maintenance for the New Home Owner

NORFOLK, VA, Nov 25, 2013—Becoming a homeowner for the first time is one of the most fulfilling moments you may ever experience. Owning a home offers a myriad of benefits. However, it can also be costly, especially when you factor in maintenance and repairs over the lifetime of your home. To help reduce stress and costs, Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty offers several tips for keeping up with home maintenance. “From the day you move in to the day you sell your home, there will always be something that will need to be repaired or remodeled,” says Eisenberg. Some changes will be simple; you may want to undertake certain updates simply to elevate your comfort level – like installing central air conditioning – or spruce up the home’s aesthetics, such as adding a few stained-glass windows. “Others will be more critical, like replacing a hazardous roof, fixing broken windows, and repairing leaky pipes,” says Eisenberg. These are all necessities. Left undone, they can lead to major problems and damages within the home. One of the top ways, according to Eisenberg, to keep up with your home is to take inventory. “From the very beginning, get in the habit of taking an inventory at least once a year of every nook and cranny in your home to check for potential problems,” says Eisenberg. “Examine the roof, foundation, plumbing, electrical wiring – basically everything. Try to fix trouble spots as soon as you uncover them. This proactive approach will help you avoid larger expenses later on, so leave no stone unturned when taking your inventory.” In terms of preparing for expenses, you can expect to spend an average of one percent of the purchase price of your home every year to handle a myriad of tasks, including painting, tree trimming, repairing gutters, caulking windows, and routine system repairs and maintenance. “An older home will usually require more maintenance, although a lot will depend on how well it has been maintained over the years,” notes Eisenberg. Tell yourself that the upkeep of your home is mandatory, and budget accordingly. Otherwise, your home’s value will suffer if you allow it to fall into a state of disrepair. It can be helpful to adopt the attitude that the cost of good home maintenance is usually minor compared to what it will cost to remedy a situation that you allowed to get out of hand. For example, unclogging and sealing gutters may cost a few hundred dollars, but repairing damage to a corner of your home where gutters have leaked can potentially cost several thousand dollars. “Remember, there is usually a direct link between a property’s condition and its market value: The better its condition, the more a buyer will likely pay for it down the road,” says Eisenberg. For more information on keeping up with your home, please contact Louis Eisenberg ABR, SFR, Realtor, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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De-Stress Your Home Buying Process

NORFOLK, VA, Nov 19, 2013—For many, buying a home is one of the most stressful endeavors you will ever take on. While you may never erase all of the stress associated with home-buying, with the right mindset, and the right toolset, you can certainly minimize the stress of finding and buying your dream home.

1. Get pre-approved. Making sure you are able to get a mortgage will reduce the stress of the home buying process, because you know you're eligible before you even begin hunting, automatically taking that stress factor off your plate. That's not the only way pre-approval will reduce stress – it also makes the home search easier. “Many sellers won't even work with a buyer who is not pre-approved, so you automatically open up your housing pool when you get pre-approved,” says Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty.

2. Find the right budget and stick to it. Money is a huge source of stress when buying a house. “Figure out exactly how much house you can afford, and refuse to even consider a home outside of that budget,” says Eisenberg.

3. Make a Needs vs. Wants list. Similar to sticking to a budget, understanding your needs (three bedrooms) in relation to your wants (a gourmet kitchen) can save you time and energy during the home hunt.

4. Hire an agent you trust. A real estate agent is the number one way to reduce the stress of buying—or selling—a home. “Find an agent who specializes in your market and similar clients—first-time buyers, move-up clients, vacation homes, etc,” Eisenberg suggests. While many think hiring an agent will make the home-buying process costlier, agents can help save money in the negotiating process. Regardless of money saved, working with an agent—who knows the process inside and out—will save you a great deal of stress.

For more information on buying a home, please contact Louis Eisenberg, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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Average Annual Home Appreciation

Infographic Courtesy of KCM Blog