Real Estate Information Archive

When you become a homeowner who just made one of the most expensive purchases in your life, you are starting out on an exciting new adventure.  You just bought a great home in Baton Rouge, Prairieville, or a nearby city and you are now  surprised to realize that you are pretty much on your own in learning to be a homeowner.  If a major system goes wrong, you may have recourse, especially if you have a homeowner’s warranty, but that’s only one of the challenges.  Here are some tips to keep in mind to help you make the transition.

When you rented, whether there was a leak in the room or a window didn’t open, you called the landlord. (You may have even mumbled aloud that the problem wouldn’t have happened if he had only done some preventative maintenance.)  Now, you need to fix what’s broke and plan ahead.  Aside from anticipating possible repairs, you need to schedule time to mow the lawn, fix the screens, and clean the gutters.  If you don’t have the time, money, or interest to do these things or hire them out, then perhaps a condo would have been a better choice for you.

If you are like most new homeowners, you will want to make a million changes in your new home to make it yours.  These projects range from painting to adding an addition and everything in between.  If you are qualified to do these things, great, you can save some money.  If not, depending on how much is involved, you can learn to do many projects.  For major projects involving plumbing, electrical, or major remodels, you are better off hiring a licensed contractor.  It’s safer, often cheaper, and more likely to increase resale later in comparison to an amateur job.

When you got your mortgage you probably had to get homeowner’s insurance, to protect the bank’s interest, but buying a home is a good time to reassess all of your insurance.  The coverage on the home itself and on your possessions should include replacement value if you can get it, and should have high liability limits that can cover you if some litigation-happy person slips on your walk or is bitten by your dog.  You should also consider whether you have enough life and disability insurance to protect your partner and children in case of your death or illness or an accident that could limit your ability to work.  Even your car insurance deserves a look – minimum state limits won’t protect you enough if you are sued.

When you buy a home, your days of the form 1040EZ are probably over.  There are many deductions you can take as a homeowner, especially the first year; for other things, like improvements, there is no deduction until you sell.  Even if you usually do your taxes yourself, you might want to use a professional tax preparer the first year to make sure you take the deductions you are entitled to without over doing it.  Make sure to keep all your receipts on anything you do in the house so you can take the proper credit later.

Buying a home can be daunting experience but at RE/Max Excellent Properties, Sandy Ogburn-Sandlin and her team will prepare you for home ownership and follow up afterwards, as our testimonials attest. Sandy’s Team can show you new and resale homes in homes in the Greater Baton Rouge area that offer great values for first time buyers and repeat buyers available under the home buyer’s tax credit. AND that are right for you and your situation.

Louisiana citizens are happy folk –i n fact, according to a recent survey by the Centers for Disease Control and Prevention (CDCP), they are the happiest people in America! The pleasant, sunny climate mixed with a lifestyle that includes great cooking and Dixieland music beat out near rivals Hawaii, Florida, Tennessee, and Arizona. 

Economists Andrew J. Oswald of the University of Warwick, England and Stephen Wu of Hamilton College in Clinton, NY then matched the CDCP results with studies that rated states on criteria such as climate, crime rates, air quality, schools, local taxes, commuting time, and the availability of public land.  Their report found that people who perceived their quality of life as good also report themselves as “happiest.”  Even though part of the research was done before Hurricane Katrina and part after, the findings hold up.

Oswald noted: "We wanted to study whether people's feelings of satisfaction with their own lives are reliable, that is, whether they match up to reality — of sunshine hours, congestion, air quality, etceteras — in their own state. And they do match."  Perception is reality!

Among the lowest states in satisfaction are New York (50^th) and California (46^th).  The researchers theorized that people moved to these states assuming they would be great place to live but congestion, housing prices, taxes increases, and corruption offset the advantages and made people unhappy with their environment.

The research findings are played out in our recent blogs about the Greater Baton Rouge area:

The economy in Baton Rouge is growing despite the recession.

Baton Rouge is among the hottest housing markets.

The home buyer’s tax credit will get you plenty in Greater Baton Rouge and Ascension.

Area schools are among the top performers in the state.

Sandy Ogburn-Sandlin and her team at RE/Max Excellent Properties can share more reasons to be happy with you, as well as show you the best new and resale homes in Ascension Parish as well as neighboring cities in the Baton Rouge market.  It’s likely that homes will move quickly with the new incentives in place, so contact Sandy's Team today to jumpstart your housing search!

Short sales sound like they could be the answer to a distressed Baton Rouge seller’s prayer, while offering buyers a great deal. They offer real promise to avert foreclosures.  However, often the time to process them is lengthy and the ultimate success rate, low.  Since the Making Home Affordable program came out in February, the Obama Administration has been announcing that new rules to make short sales quicker and easier were on the way. Recently, the Treasure Department has released these new rules to expedite short sales

Basically, the new guidelines offer financial incentives for borrowers, mortgage companies, and investors to participate in the program.

• $1000 to lenders for administrative costs
• $1500 to sellers to cover closing costs or for moving expenses
• Up to $3000 towards paying the junior lien holders to release their lien.

In order to qualify:

·         The property must be the home owner's principal residence.

·         The homeowner is delinquent on the mortgage or default looks likely.

·         The loan was made before Jan. 1 this year and is less than $729,750.

·         The borrower's total monthly mortgage payment exceeds 31 percent of before-tax income.

The new program standardizes paperwork and gives the lender 10 days to approve or turn down a request for a short sale. When it’s done, the short sale must release the borrower from the debt.  During the process, the lender cannot foreclose on the property or charge fees. The new rules come at a time when at least one major bank has adopted improved software to streamline paperwork for short sales. (Click here for the full text of the new rules.)

Mortgage servicers have 10 days to approve a request for short sale, and when done, the transaction must fully release the borrower from the debt. The deadlines remove a lot of the uncertainty from short sales, a relief to buyers as well as the seller and their agents.  Now sellers (and real estate agents) will have a clearer idea of how to proceed and buyers will know if they got the house in a timely manner too!

If you are at risk of foreclosure on your Baton Rouge home, Sandy can help you arrange a short sale. If you are looking for a home,  Sandy and her team can also help you find a short sale property in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also answer any questions you might have about the home buyer’s tax credit - $8,000 first time buyers or $6,500 for repeat buyers.