Home Warranty:

A home warranty is a service contract that provides coverage for repairs or replacements of major household systems and appliances. It acts as a form of protection against unexpected breakdowns due to normal wear and tear. Home warranties are typically purchased for a specific period, usually one year, and can be renewed annually.

Home warranties typically cover a range of systems and appliances, such as HVAC (heating, ventilation, and air conditioning), plumbing, electrical systems, water heaters, kitchen appliances, and more. When a covered item malfunctions or breaks down, the homeowner can contact the warranty provider, who will arrange for a qualified technician to repair or replace the item, usually for a small service fee

Benefits:

01. Financial Protection: Home warranties provide homeowners with peace of mind by offering financial protection against unexpected repair costs, which can be a significant relief, especially for older homes or appliances.

02. Convenience: With a home warranty, homeowners can rely on a network of pre-screened service providers, saving time and effort in finding reputable technicians. The warranty company handles the coordination of repairs, simplifying the process for the homeowner.

Limitations:

01. Limited Coverage: Home warranties have specific coverage limits and exclusions. Pre-existing conditions, improper maintenance, or neglect may not be covered. It is important to read the contract carefully to understand the terms and conditions.

02. Service Fees: While the warranty covers the cost of repairs or replacements, homeowners often have to pay a service fee or deductible for each service call, which can vary depending on the warranty provider.

Homeowners Insurance:

Homeowners insurance, on the other hand, is a type of insurance policy designed to protect the structure of your home and your personal belongings from covered perils, such as fire, theft, vandalism, or natural disasters. It is typically required by mortgage lenders and provides coverage for unexpected events that cause damage or loss to your property.

Homeowners insurance covers the physical structure of your home, including walls, roofs, and other attached structures, as well as personal belongings such as furniture, appliances, and electronics. It also provides liability coverage in case someone is injured on your property and you are legally responsible for their injuries.

Benefits:

01. Dwelling Protection: Homeowners insurance provides coverage for repairing or rebuilding your home in the event of covered perils, ensuring financial protection against significant damage or destruction.

02. Personal Property Coverage: In case of theft, fire, or other covered events, homeowners insurance can help replace damaged or stolen personal belongings, such as furniture, clothing, or electronics.

Limitations:

01. Specific Perils: Homeowners insurance typically covers specific perils mentioned in the policy. It may not cover damage caused by floods, earthquakes, or routine wear and tear. Additional coverage or separate policies may be required for such events.

02. Deductibles and Premiums: Homeowners insurance policies usually have deductibles, which means homeowners are responsible for paying a certain amount out of pocket before the insurance coverage kicks in. Premiums can also vary depending on factors like location, coverage limits, and the homeowner’s claims history.

A home warranty primarily covers the repair or replacement of major systems and appliances due to normal wear and tear, while homeowners insurance protects against specific perils that can cause damage to the structure of the home and personal belongings. It is essential for homeowners to evaluate their needs and consider both options to ensure comprehensive coverage for their valuable assets. Ready to take the next step into homeownership? Visit us here to connect with a S&C agent!

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5 ways to increase your homes value

01. Make a Larger Down Payment – Building equity starts right from the moment you purchase your home. By putting down a substantial amount upfront, you reduce the loan amount and decrease the interest you’ll pay over time. A higher down payment also means starting with a lower loan-to-value ratio, which can help you avoid PMI and reduce your monthly expenses.

02. Home Renovations and Improvements – One of the most effective ways to increase your home’s value and build equity is through renovations and improvements. Focus on upgrades that offer a high ROI. This could include kitchen and bathroom remodels, adding a deck or patio, updating flooring, or enhancing curb appeal with landscaping.

03. Regular Maintenance and Repairs – Maintaining your home in good condition is not only essential for your comfort and safety but also for preserving and increasing its value. Conduct regular inspections and address any necessary repairs promptly. Simple tasks can go a long way in maintaining and enhancing your home’s equity.

5 ways to help build equity

04. Pay Down Your Mortgage Faster – If your property has additional space or a separate unit, consider renting it out. Another effective strategy for building equity is to accelerate your mortgage payments. Consider making bi-weekly or additional monthly payments to reduce the principal amount faster. Before making additional payments, confirm with your lender if there are any prepayment penalties or restrictions.

05. Take Advantage of Appreciation – In a growing real estate market, property values tend to appreciate over time. By keeping an eye on market trends, you can capitalize on the natural appreciation of your home’s value. By monitoring market trends, you can choose the right time to sell or refinance, maximizing your equity gains.

Building equity in your home requires a combination of strategic planning and consistent effort. By making a larger down payment, undertaking smart renovations, maintaining your property, paying down your mortgage faster, and taking advantage of market appreciation, you can steadily increase your home’s value and your equity position. Ready to connect with a S&C agent, stay informed about local market trends, and make informed decisions that align with your long-term financial goals? Connect with us here!

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You Don’t Need to Put Down 20% to Buy a Home

Gone are the days when a 20% down payment was the norm for buying a home. With the evolving real estate market and the advent of new financing options, potential homeowners now have more choices than ever before. Lenders understand the diverse financial situations of buyers and have developed alternatives that require a smaller upfront payment.

Lower Down Payment Options

01. Federal Housing Administration (FHA) Loans: Backed by the government, FHA loans offer down payments as low as 3.5%. This option is particularly advantageous for first-time homebuyers who may have limited savings or lower credit scores.

02. Conventional Loans: While conventional loans traditionally required 20% down, there are now options available that allow for as little as 3% down. Private Mortgage Insurance (PMI) may be required, but this allows buyers to enter the market sooner.

03. Veterans Affairs (VA) Loans: Exclusive to eligible military service members, VA loans often require no down payment, making homeownership more accessible to those who have served their country.

04. United States Department of Agriculture (USDA) Loans: Designed for buyers in rural areas, USDA loans offer low or zero down payment options to promote homeownership in underserved communities.

Down Payment Assistance Programs

Numerous down payment assistance programs are available across the country, providing financial support to qualified homebuyers. These programs, offered by state, local, and nonprofit organizations, can offer grants, loans, or deferred payment options to bridge the gap between what buyers can afford and the traditional 20% down payment.

All this to say, the notion that a 20% down payment is an absolute requirement for buying a home is no longer accurate. With the availability of various loan programs, down payment assistance options, and alternatives such as PMI, prospective homeowners have more flexibility in achieving their dreams of homeownership. By understanding these alternatives and working closely with lenders and real estate professionals, you can embark on your homeownership journey with a smaller down payment, making it more accessible and achievable than ever before. Remember, it’s always wise to consult with a mortgage professional to determine the best course of action based on your specific financial situation. When you’re ready to take that next step, visit us here to set up a buyer meeting!

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What the new FICO scoring system means for homebuyers

Recently, FICO, one of the largest credit scoring companies in the world, announced that it will be rolling out a new credit scoring system in 2023. This new system, called FICO 10 T, aims to provide a more accurate picture of a consumer’s creditworthiness by taking a more holistic approach to credit scoring.

So, how will the new FICO scoring system affect home buyers? Let’s take a closer look.

What is FICO 10 T?

FICO 10 T is the latest version of FICO’s credit scoring system. It will use the same 300-850 point scale as previous versions of FICO, but it will take a more nuanced approach to credit scoring.

FICO 10 T will look at trends in a consumer’s credit behavior over time, rather than just their current credit utilization and payment history. This means that if a consumer has a history of responsible credit behavior, but experiences a setback like a missed payment or a high credit utilization rate, their score may not be as negatively impacted as it would have been under previous FICO scoring systems.

Additionally, FICO 10 T will differentiate between consumers who have revolving credit (like credit cards) and those who have installment loans (like mortgages or car loans). This is designed to recognize that consumers who have successfully managed installment loans may be better credit risks than those who only have revolving credit.

How will FICO 10 T affect home buyers?

The new FICO 10 T scoring system could have several impacts on home buyers.

First, consumers who have a history of responsible credit behavior but have experienced a setback (like a missed payment or high credit utilization rate) may see less of a negative impact on their credit score under FICO 10 T than they would have under previous FICO scoring systems. This could make it easier for these consumers to qualify for a mortgage or secure a better interest rate.

Second, consumers who have successfully managed installment loans (like mortgages) may see a boost to their credit score under FICO 10 T. This could make it easier for these consumers to qualify for a mortgage or secure a better interest rate.

Third, lenders may be more willing to work with consumers who have less-than-perfect credit under FICO 10 T. This is because the new scoring system takes a more nuanced approach to credit scoring and recognizes that consumers who have had setbacks can still be good credit risks.

FICO scoring system and homebuyers

The new FICO 10 T scoring system could be good news for home buyers. Consumers who have a history of responsible credit behavior may see less of a negative impact on their credit score if they experience a setback, and those who have successfully managed installment loans may see a boost to their credit score. Additionally, lenders may be more willing to work with consumers who have less-than-perfect credit. However, it’s important to remember that credit scores are just one factor that lenders consider when evaluating a mortgage application, and other factors like income and debt-to-income ratio will also play a role in the lending decision.

Interested in starting the home buying process? Click here to connect with a Sage & Cedar agent!

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Spring Home Maintenance Checklist

01. Check Your HVAC System – Before the summer heat arrives, make sure your HVAC system is working properly. Replace your air filter and schedule a professional maintenance appointment to make sure everything is in good working order.

02. Inspect Your Windows and Doors – Check your windows and doors for any cracks or leaks. Replace any damaged weatherstripping, and consider installing new windows or doors if they are old and inefficient.

Follow these tips and you can ensure that your home is in top shape for the rest of the year

03. Clean Your Outdoor Space – Finally, spring is a great time to clean up your outdoor space. Sweep your patio or deck, and remove any debris from your yard. Plant some flowers or vegetables in your garden to enjoy throughout the summer.

Below is the full spring home maintenance checklist. Use it every year to help keep your home in tip top shape! Ready to work with an S&C agent? Click here to get started!

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Check out what Rob Downs with Southstate Bank has to say about lowering rates in 2023!

“Mortgage rates go the way of mortgage bonds. Bonds sold = higher rates. Bonds purchased = lower rates. There was a big selloff the later half of December, but there was very little volume, or liquidity, behind this move, i.e. fewer trades happening with many traders taking off for the holidays. So far, with traders rolling back into the office in 2023, we’ve recovered about 30% of those losses.

We probably won’t see a significant rally in advance of December CPI being released on Jan. 13th, which is a key inflation metric, but this is a really good start.

Lower rates are coming? Are you ready?

But… there’s a trap set! Home buyers expecting to wait for lower rates will be met with much more competition as these lower rates bring back a lot of buyers priced-out from the 2022 rising rate environment. While a lower rate can save you quite a bit in monthly payment, you can save THOUSANDS negotiating seller credits to cover your closing costs. That opportunity will be going to the wayside as lower rates bring back more buyers, increasing demand on a still limited supply of homes. And increased demand with still limited supply? Well, we’ve seen that game play out! Sale prices are expected to increase 5-10% in the Atlanta metro area this year as we remain one of the strongest markets nationwide.

Is now a good time to buy? That depends on what amount of home you can afford to buy while staying within a comfortable payment (made even more comfortable when you refi into a lower rate) and using no more than the amount of cash you’re comfortable with.”

Interested in learning more about your mortgage options in 2023? Get intouch Rob Downs here! Ready to start the

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5 Things to do in Atlanta this January

01. “Hadestown” at the Fox Theatre – “Hadestown” winner of eight 2019 Tony Awards including “Best New Musical”, hits the Fox Theatre January 10-15th 2023. What to learn more or grab tickets for you and your favorite people? Do so here! 

02. Illuminights Chinese Lantern Festival – Stroll Zoo Atlanta to view 80+ Chinese lanterns depicting the worlds plants and animals from now through January 15th. To learn more and get your tickets, visit Zoo Atlanta here! 

03. Atlanta Hawks vs. Miami Heat – Watch as the Miami Heat and Atlanta Hawks take each other on at the State Farm Arena January 16th. Click here to learn more and snag your tickets before they sell out! 

Which activity are you most excited for this January?

04. Winter Wine Festival – Sample more than 50 wines and beers and enjoy live music and a DJ at City Winery on January 21st! Your ticket price includes a souvenir acrylic wine glass, entertainment, and all of your wine, cider, & beer samples. Food will cost extra. Learn more here! 

05. Atlanta Wedding Extravaganza – ‍Spend an afternoon seeing your Pinterest boards come to life this January 29th. See Atlanta’s award-winning wedding pros demonstrate their talents. Discover (and even WIN!) the perfect wedding venue, photographer, caterer, bridal party attire, honeymoon, and more. Taste treats from Atlanta’s top caterers and cake designers, browse florals, tablescapes, and celebration décor, hear live music for ceremonies and celebrations, view fashions for the whole wedding party, and meet innovative vendors who can make your wedding fantasies a reality. Learn more here! 

Whatever you decide to do this January, Atlanta can offer it all! So step away from your devices and take in all the winter wonders this January 2023! Visit us here to stay up to date on all the latest news and resources! 

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How much does it really cost to list your home for sale?

01. Home Repairs- Before you list, your agent will walk your home with you and suggest repairs. Some sellers may even do a prelisting inspection to keep any inspection hurdles from slowing down the escrow process. If a buyer finds a repair needed through inspection, and you were not previously aware of it, it could be a cost you were not expecting.

02. Staging – Is your home vacant? If so, your agent may suggest staging it. It’s much easier for a potential buyer to imagine themselves in a home that is already staged. There are different types of staging from a “Home Edit”, where the stagers use the sellers furniture to create a welcoming space, all the way to a partial renovation. Including paint, flooring, and so much more.

03. Property taxes – If your tax bill has not come out for the year, the closing atty will estimate and prorate the taxes at closing. You will pay your portion of the taxes from Jan 1 until the closing date to the buyer. When the tax bill comes out for that year, the buyer will already have your portion escrowed along with what they owe!

Learning about the cost of listing your home ahead of time will keep you organized and prepared for what’s to come!

04. Commissions – Agents work on commission. Typically this commission is 6% of the home sale price with 3% going to listing broker and 3% going to selling broker. Once the broker gets paid, your agent will get a split of this amount which pays for the marketing they did, the signage, the photos, potential staging, an fmls fee and their time working for you. 

05. Capital gains – When you sell a home for more than you paid for it, that counts as a capital gain and may need to be reported on your tax return. Many homeowners can exclude up to $250,000 of profit ($500,000 for married couples filing jointly) if it was your primary residence for at least two out of the previous five years.

Other costs can include Seller paid closing costs, repairs needed to be made after the inspection and other various costs. Consult with your agent to get a better idea of what your specific home sale will cost! Interested in listing your home with Sage & Cedar? Click here for a free listing guide or to reach out to a Sage & Cedar agent. 

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6 steps to buy an investment property

01. Decide on a price point – A good rule of thumb is to use the 1% rule. For example if you purchase a home for $100,000, you’ll need a minimum monthly rent of $1,000. $200,000 must rent for $2,000 and so on.

02. Pick a location(s) – Plenty of things to consider here. Airbnb guests aren’t worried about the school district and long term renters may not need walkability 24/7. Decide which way you’d like to go and pick a location that way.

03. Determine rentability – What are your target renters looking for? Long term renters may say creature comforts like 2-3 bedrooms, washer/dryer, dishwasher, storage. Short term renters usually want to be close to(or far from) the action.

Don’t wait to buy real estate, buy real estate and wait.

T. Harv Eker

04. Purchase the Property – This process will be similar to purchasing your primary residence. Your lender may require a higher down payment and loan requirements may be a bit different, but the steps are the same here. Offer, escrow, closing, rent!

05. After Closing – You may want to consider hiring a property manager to take care of renting and maintaining your income property. These will typically run you 15-25%.  Keeping this in the hands of professionals will keep those gray hairs at bay a little longer.

06. Offset Additional Mortgage – For an investment property you will need 20% down but the great thing is that you can include rent as part of your income, so this will offset the additional mortgage.

Interested in starting your home buying process? Click here to set up a one on one consultation with a S&C agent! Just getting your feet wet? Click here to see what’s on the market in your area!

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5 questions to ask as a buyer before hiring a real estate agent

01. Are you a full time agent? – How available will they be for you? If they are part time it may affect their availability. If they are not available to show a property do they have someone that can meet you?

02. How long have you been an agent? – It’s important to have an agent who knows the ins and outs of the business, and that level of knowledge only comes with experience. Look for someone with at least a few years in the business.

03. Do you work with a team? – Will I be working with you or will I be handed off to someone on your team? How about once we have a property under contract? Do I still connect with you? You’ll want to make sure you know who exactly you’re working with before jumping in!

These questions will help decide if that agent is a good fit!

04. Do you work with Buyers and Sellers? – Some agents only represent buyers, some focus solely on sellers, and some do both. Working with both buyers and sellers allows your agent to peek on the other side of the curtain. In an ever changing market, seeing the kind of offers that are getting accepted is a wonderful way for an agent to craft an offer that is appealing to the listing agent, and vice versa.

05. How do you get paid? – Most buyers’ agents get paid by the seller. If the seller’s agent does not share the buyer’s agents desired commission with them, are you responsible for the difference? This could mean thousands of dollars.

Interested in starting your home buying process? Click here to set up a one on one consultation with a S&C agent! Just getting your feet wet? Click here to see what’s on the market in your area!

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