First quarter home ptrices strong

How to buy a group vacation home

 

NORFOLK, VA, Jul 25, 2013—It sounds like a dream; splitting the cost of a lakefront home or woodland cabin with your close friends. However, purchasing a group home can end up being more complicated, and that's before you throw in any possible falling outs or conflicting schedules. Below, Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty  takes us through a variety of things to consider before purchasing a home with others.

1. Discuss finances first

Can everyone afford to do this? “To minimize complication, it's best for everyone going in on the purchase to be able to put down equal funds,” suggests Eisenberg. In addition to discussing purchase costs, go over who will pay for furnishing the home, improvements, monthly bills, taxes, etc.

“It's important to really scrutinize the financial coverage, from little things like landscaping to emergencies like a flooded basement,” Eisenberg notes.

2. Write it down

After you have a clear plan that all parties agree to, get everything in writing. This will be helpful in the future should someone forget who agreed to pay for those new energy efficient windows. “It might be a good idea to bring in a lawyer to help come up with a contract everyone agrees to,” suggests Eisenberg. A lawyer will not only help document your decisions, but also map out any additional legal concerns – like what will happen to an individual's share of property should they pass away.

Although it may be uncomfortable, you should also talk about what will happen to a property share should someone want to sell or liquidate their assets.

3. Decide how the home will be used

After you've taken care of the legal and financial issues, it's time to talk about the fun stuff: how you will enjoy your home. Will you split up visiting dates throughout the year? Will you all visit at once, reunion style? “While it might seem silly to designate days up-front, it will ease any future tension should schedules clash,” says Eisenberg. Additionally, talk about what will happen to the property as your lives progress. A group of friends purchasing a home in their late twenties will surely use the property differently than a group of friends who are now in their forties.

“After you have your basics covered, celebrate with your friends and enjoy your new vacation home!” says Eisenberg.

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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Tips to simplify your kitchen revamp

NORFOLK, VA, Jul 16, 2013—Whether you're looking to sell your home, are trying to fix up a newly purchased one, or are simply aiming for your dream cooking space, redoing your kitchen is a lot of work. The kitchen has more appliances and fixtures than any other room in the house, and it takes a considerable amount of time, work, money and planning to power though a successful kitchen revamp. Below, Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty offers tips to simplify your kitchen remodel,

Appliances
It is tempting to discard existing appliances when you build new cabinets around them. Rethink the idea. If the appliances are workable, keep them – and save yourself from $1,000 to $5,000, according to the National Association of the Remodeling Industry.

Fixtures
If possible, resist the urge to move your stove to the other side of the room, or swap the location of your sink. “Consider keeping the present location of major fixtures, appliances and utilities relative to the plumbing, gas and electrical outlets,” says Eisenberg. Rearranging plumbing, wiring and jacks can be very expensive.

Cabinets
Refacing existing cabinets can reduce the cost of your kitchen remodel considerably and eliminate the need for new flooring, countertops and appliances. If you must get new cabinets, options such as spice racks and slide out wire baskets can be added later. Also, install cabinets without soffits to decrease labor cost; and avoid trim moldings, or use a simple trim. If you must have a new wood trim to match the new cabinets, order pre-finished trim to decrease labor cost; avoid having the painting or staining done on-site.

Stay Neutral
“If you're revamping your home for a sale, you probably want to choose neutral colors for fixtures, appliances and laminates,” says Eisenberg.

Refinish the Floor
Depending on your home, Eisenberg notes that you may be able to avoid the need for a new floor by sanding and refinishing a hardwood floor that may be underneath the existing vinyl flooring.

For more information on remodeling your 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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Understanding the difference: Home equity line of credit vs, Second Mortgage

NORFOLK, VA, Jul 10, 2013—At some point in life—maybe your oldest is off for college or you're finally ready to put on that home addition—you may want to tap into the equity of your home. You have several options here, and two that are commonly confused are the home equity line of credit, and the second mortgage. Below, Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty gives us a breakdown of the difference.

“A second mortgage is any loan that involves a second lien on the property,” says Eisenberg. “You receive a lump sum at the beginning of the loan, and every month you pay down the principal and the interest.” The second mortgage can be fixed or variable, and the available amount is often based on the difference between your home's current value and the outstanding principal balance on your first mortgage.

“As second mortgages are subordinate to first mortgages--meaning your first mortgage gets paid off first should the loan default—they are riskier for lenders and often come with higher interest rates,” says Eisenberg.

A home equity line of credit (HELOC), like a second mortgage, lets you tap up to about 80 percent of the appraised value of your home, minus your current mortgage balance. The way the money is distributed, however, is much different than a second mortgage.

“Similar to a credit card, you are given a limit and are able to borrow up to that limit for a certain period of time, which can be anywhere from 5 to 20 years,” says Eisenberg. However, because it is set up as a line of credit, you will not be charged interest until you actually make a withdrawal against the loan, although you will be responsible for paying closing costs.

Unlike a second mortgage which can be fixed or variable, a home equity line of credit is always adjustable.  “It's of the utmost importance that you understand the terms of the loan,” says Eisenberg. “If, for example, your loan requires that you pay interest only for the life of the loan, you will have to pay back the full amount borrowed at the end of the loan period or risk losing your home.”

So which option is better for you? A HELOC is best if your monetary needs will be spread out over a length of time, like if you're renovating your home or paying for a college tuition.  A second mortgage is probably best if you need all of the funds at once, as it's a fixed-rate.
For more information on taking out another loan, please contact Louis Eisenberg, Prudential Towne Realty, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com