Gabriela Rico
In the heart of California, Sacramento is a city that effortlessly blends rich history with modern charm. From the bustling streets of Midtown to the serene beauty of the American River Parkway, Sacramento offers a diverse and vibrant lifestyle for its residents. With historic roots in the gold rush, too many parks to choose from, and a close proximity to wine country, Sacramento is a city that truly has something for everyone.
Whether you’re searching for apartments in Sacramento, homes for sale, or just learning more about what Sacramento is known for, this article is the comprehensive guide you’ve been looking for.
Sacramento is known for being the capital of California and is home to the impressive California State Capitol. The Capitol is a stunning example of neoclassical architecture and is surrounded by beautiful gardens, making it a must-see for visitors and a point of pride for locals.
The Gold Rush of the mid-19th century was a pivotal event for Sacramento, rapidly transforming it from a modest settlement into a thriving commercial and supply hub for gold miners. This influx of population and wealth laid the groundwork for Sacramento’s development, establishing its significance within California’s political and economic landscapes.
Old Sacramento Historic District is a charming area that showcases the city’s history. Visitors can explore the cobblestone streets, historic brick buildings, and museums that offer a glimpse into Sacramento’s past as a bustling Gold Rush town. This is a great opportunity to explore the areas past and see the lasting effects it has on the city today.
The iconic Tower Bridge is a symbol of Sacramento and is known for its distinctive Art Deco design. Spanning the Sacramento River, the bridge offers stunning views of the city and is a popular spot for locals and tourists to kick back and soak up the beauty surrounding them.
Sacramento is home to the impressive Crocker Art Museum, which houses a massive collection of art spanning from classical to contemporary. The museum’s many exhibits and educational programs make it a hub in the city for everyone from young families to aspiring artists to retirees and everyone in between.
The American River Parkway provides a natural escape within the city, offering opportunities for hiking, biking, and more. The scenic beauty of the parkway is a beloved feature of Sacramento’s landscape and one of the many unique perks about calling Sacramento home.
Sacramento’s craft beer scene is growing, reflecting the city’s passion for locally brewed, innovative beers. With a focus on quality and creativity, the area boasts a ton of breweries that contribute to Sacramento’s reputation as a destination for beer lovers of all persuasions. Two of the most beloved local breweries are Track 7 Brewing Co., known for its diverse range of styles and community-focused approach, and Bike Dog Brewing Company, which combines a love for cycling with the art of beer making.
Sutter’s Fort is a historic landmark that played a significant role in the early development of Sacramento. The fort offers guided tours and living history demonstrations, allowing visitors to step back in time and experience California’s pioneer era in its purest form.
Sacramento is the City of Trees thanks to its wide variety of foliage, from native oaks to exotic species planted over the decades, provides not only aesthetic beauty but also significant environmental benefits, like improved air quality, reduced urban heat island effect, and enhanced outdoor spaces. The city’s tree-lined streets, parks, and green spaces contribute to its identity and quality of life, making it a welcome green getaway in the heart of California.
As the local NBA team, you’re likely to see some Kings gear around town as you get to know the city. Since relocating to Sacramento in 1985, the Sacramento Kings have become a central part of the city’s identity, fostering a strong sense of community and pride among residents. Their presence has significantly impacted the local economy by way of new jobs and downtown revitalization, particularly with the construction of the Golden 1 Center.
Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
This legal document transfers ownership of the property from you, the seller, to the buyer.
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
Source: crediful.com
As painful as it can be to see interest rates topping 7% when they hovered over 2% in late 2020, waiting for them to come down again could bite would-be homeowners. Although today’s rates mean homebuyers can expect to spend more on interest over their loan’s lifetime, they’re actually close to the 50-year average — and besides, if they plummet again, the market will once again be flooded by buyers who have been sitting on the sidelines.
Still, interest rates are a big deal when it comes to how much home you can comfortably afford — and the ongoing health of your personal finances. In this article, we’ll walk through a little bit of mortgage rate history and context, as well as offering ways to decide whether you’re ready to buy or not, regardless of the market.
Since Americans just witnessed a historic mortgage interest rate drop in 2020, today’s 7% and 8% rates seem astronomical. (And, to be fair, coupled with a median national home sales price over $400,000, they can pack a powerful punch: After interest, a 30-year mortgage could easily cost twice the amount of the loan.)
Still, it’s important to remember that when you look at the big picture, today’s rates are actually not that big a deal. Yes, they’re the highest they’ve been since the year 2000, but they’re about on par (or slightly under) the rates buyers saw in the 1990s — and less than half of the 17% and 18% interest rates buyers paid in the early 1980s.
The rise and fall of mortgage rates is tied to complicated economic factors, including inflation, the Federal interest rate, and the yield of 10-year Treasury bonds. It’s not totally predictable, but one thing’s for sure: It will continue to undulate over time. What’s more, attempting to time the market to purchase a house might not be the best financial move, even if it does save you money on interest.
💡 Quick Tip: SoFi’s Lock and Look + feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.
While no one can fully predict the future, experts do weigh in with their predictions for the mortgage interest rate. In 2024, projections suggest a mortgage interest rate drop to about 6%, or slightly lower — but still, we’re likely to stay far from the 2% and 3% free-for-all we saw a few years ago.
So how much do interest rates really impact how much house you can afford? Glad you asked! Let’s do some math.
Say you’re going to buy a $400,000 home — which is just a little less than the U.S. median sale price right now. You’ve saved up a 20% down payment, or $80,000, and plan on taking out a 30-year mortgage.
With a fixed interest rate of 7%, your monthly payment would be about $2,129 per month, before additional costs like homeowners insurance and property taxes. At 6.5%, that payment goes down to $2,023, and at 6% it drops to $1,919. (So a percentage point drop equates to $210 per month in savings, or $2,520 per year.)
However, it’s over the long term that interest really has the opportunity to add up. In the exact same scenario, over the 30-year lifetime of the loan, you’d pay approximately the following amount in total interest:
• 7%: $446,428
• 6.5%: $408,142
• 6%: $370,682
As you can see, just a single percent difference can save you nearly $100,000 in the long run. So while it’s not possible to perfectly time the market, it is worth shopping around for the lowest possible interest rates you can qualify for.
(Keep in mind, too, that you can always pull your own customized numbers using a mortgage calculator.)
💡 Quick Tip: Don’t have a lot of cash on hand for a down payment? The minimum down payment for an FHA mortgage loan is as low as 3.5%.1
The question of whether you’re ready to buy a home — or if it makes more sense to wait — is one that depends on far more than the going market interest rate. Here are some ways for first-time homebuyers to decide what might be the right move, right now.
These are good reasons to consider going ahead with the homebuying process, high interest rates or no:
• You’re financially (and emotionally) ready. Your credit score is in tip-top shape, you’ve saved up a down payment, and you’re planning to stay in your new home for at least five years — which means you could feasibly refinance once interest rates drop substantially and still break even on closing costs. (A home affordability calculator can help you figure out just how much house you can reasonably afford.)
• The market looks good to you. These higher interest rates mean the housing market is moving far more slowly than it used to, so the amount of available inventory may give buyers who are ready to buy more time to shop around and find something they really like. This dynamic can also drive home prices down, creating more value for you as the property appreciates over time.
• It’s time to move. Regardless of the housing market, life goes on — and if you’re expanding your family or relocating, you may not have a choice about moving. If the opportunity is presenting itself and you’re financially ready, this could be a great time to get started on building equity and generational wealth as a homeowner.
On the other end of the spectrum, there are some good reasons to wait on buying a home, even when interest rates are low:
• You’re not financially (or emotionally) ready. If a monthly mortgage payment would leave you cash-poor, you don’t have a substantial emergency fund saved up, your job security is in question, or you’re not quite sure you’re ready to commit to a given locale, buying a home might not be the right move for you — yet.
• You can’t get prequalified by a mortgage lender. Perhaps you’re in a decent amount of debt or have an iffy credit history. If you can’t qualify for a loan right now, take the time to work on those factors and get ready for the future.
• The market looks meh to you. If you can’t find a home you like, you probably shouldn’t buy one. After all, it’s a major investment — and while we’re not suggesting you have to wait for an absolutely perfect house to come along, you should be happy with your purchase!
While interest rates are of course a relevant factor for would-be homeowners, so long as you’re financially prepared and planning on staying in your new home for at least a few years, higher interest rates shouldn’t deter you. After all, you can always refinance once rates drop.
Waiting for interest rates to drop can be a bit like waiting for Godot: You might get stuck in the in-between. If your finances are in shape and you’ve found your dream home, now could still be the right time to take the leap and become a homeowner.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
Not necessarily. While lower interest rates can subtly lower a monthly mortgage payment — and save buyers potentially hundreds of thousands of dollars over the lifetime of a loan — it’s not the only factor to consider if you’re otherwise ready to buy a home. (Plus, qualified buyers can always refinance their purchase down the line when rates drop again.)
It’s probably as good a year to buy as any. Many experts expect interest rates to drop a bit this year, from their current position between about 7% and 8% to somewhere between 5.5% and 6.5%. And it’s unlikely that interest rates will plummet back down to 2% or 3% as they did a few years ago.
November and December tend to be favorable times to buy a home for buyers looking for the best deal possible. That’s because the holidays and winter weather may keep some buyers from shopping during this time, which means sellers might be more motivated to make a deal. You won’t get to see your new home in the height of its summer beauty for months — but you’ll get to find out whether it’s well insulated!
Photo credit: iStock/Andrii Yalanskyi
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
+Lock and Look program: Terms and conditions apply. Applies to conventional purchase loans only. Rate will lock for 91 calendar days at the time of preapproval. An executed purchase contract is required within 60 days of your initial rate lock. If current market pricing improves by 0.25 percentage points or more from the original locked rate, you may request your loan officer to review your loan application to determine if you qualify for a one-time float down. SoFi reserves the right to change or terminate this offer at any time with or without notice to you.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com
Let’s talk about how sublets work and outline everything you need to know about subletting.
Subletting is a process where a tenant rents their apartment to someone else for the duration of the lease. The terms and conditions of the original lease stay the same and the original tenant’s name remains on the lease, but the new tenant moves in and becomes responsible for paying rent and utilities. Subletting allows the original tenant to move while renting out their old space to someone new.
Before we explain how sublets work in more detail, here are a few keywords defined.
Ideally, when you rent an apartment, you can commit to the terms of the lease. However, life happens and you may find yourself needing to move out prior to the end of the lease. Some situations for moving out early and needing to sublet may include:
Regardless of the reason, subletting is a viable option to consider.
So, you’ve found yourself in a situation where you need to move, you don’t want to break the lease and you’ve decided to sublet your apartment. Here’s how to go about subletting an apartment.
Before you start interviewing candidates for a sublessee, you need to take some time to thoroughly review your current lease agreement. You’ll want to check that subletting is allowed in the first place and fully understand what you can and can’t do.
If you need help understanding the legal jargon of your lease agreement, talk to a lawyer or your landlord. This is a scenario when the fine print matters.
In some states, subletting is legal, and in others, it’s not. Laws vary state by state so you’ll need to conduct research to understand if subletting is legal in your state.
Once you’ve done your homework, reviewed the lease and state laws, it’s time to talk to your landlord and let them know you’d like to sublet the apartment. It’s polite to ask, and not tell them, what you’re doing. Schedule a meeting to let the lessee know your intentions and go over any and all details that are necessary to formally sublet the space.
You can also send them a formal letter requesting permission to sublet.
Once you’re in agreement with your landlord that you can sublet the apartment, it’s time to find a sublessee. This is your responsibility, not the landlords. You can place ads for a sublessee on social media groups or check out different apps that help you search for roommates or sublessees. Just make sure you find someone you trust as your name is still legally on the lease and your reputation is on the line.
When you’ve found someone to sublet the apartment, schedule a meeting to go over the details of the subletting agreement. How long will you sublet for? Will the sublessee be responsible for all rent and utilities? When can they move in? Do they need to pay you a security deposit? Get all of the details worked out ahead of time.
Verbal agreements are not sufficient when it comes to subletting. Get all of the details written down so you have a paper trail should things go awry.
Have everything in order with your landlord and sublessee? Now it’s time to coordinate the details of when the transition will happen.
As with everything in life, there are pros and cons to subletting an apartment. Because a lease is a legally binding contract, you want to take it seriously and really understand the repercussions — both good and bad — of subletting your apartment.
Now that we’ve reviewed how sublets work, you’ll know how and what to do should you ever need to sublet an apartment yourself. Or, if you’re looking for a place to rent but don’t want to sign a lease yourself, being a sublessee may be the right option for you.
Source: rent.com
While spring and summer are typically the most active home-buying seasons, things tend to cool down by September, much like the weather. But that doesn’t mean you should put off your home search. In fact, the fall can be the golden time to find a home.
Let’s explore why autumn can be one of the best times of the year to buy a home.
The spring and early summer frenzy of buyers wanting to get into a home before school starts has settled down. You’ll have less competition as homes hit the market.
Sellers are often motivated due to less competition from buyers. They may also be eager to sell before the holiday season, which can translate into a good deal for you.
Leaf colors aren’t the only things that peak in the fall. Typically, so does starter home inventory, which can be good news for first-time homebuyers. These homes tend to be in the lower-third price range of available houses, making them a potential option for those taking their initial step into homeownership.
Sunny summer weather can hide water-related issues such as roof or window frame leaks. Autumn rains make it easier for your home inspector to see potential water problems firsthand. Cooler fall weather also allows you to evaluate the heating system more effectively.
Uncovering issues that need repair may help you bring down the price of a home, or you may want to consider rescinding an offer if the fixes are too extensive or expensive.
With fewer homebuyers in the market, you may be in a good position to negotiate a more favorable price. Plus, sellers may be tired of waiting for a sale if the home has been on the market since the summer. They may be more open to making a deal and hoping to close before the holidays and the winter.
Need to move in earlier or later? Motivated sellers may be more willing to accommodate your schedule.
Plus, demand for moving companies wanes in the fall. With more crews available, scheduling your move may be easier, allowing for more flexible move-in dates. Moving costs may also be lower, thanks to off-peak pricing.
Historically, home prices are highest in the spring and summer and drop during the fall. This is especially true for homes that have been on the market throughout the summer; sellers may lower the asking prices to encourage a sale.
Milder fall temperatures mean a home’s winterization isn’t yet an issue, but you’ll have time to address any concerns. Prepare for winter’s chill by maintaining the furnace and water heater, sealing cracks and adding insulation, all of which cut energy costs.
Spring and summer are busy seasons for contractors, but things tend to slow down in autumn. Contractors, subcontractors and skilled laborers may be more readily available to take on your new home’s renovation or repair projects.
Taking advantage of homeowner tax deductions on next year’s returns may save you money, too. Write-offs may only be a percentage of a full year’s deductions (when you’ve been residing in the home continually), but getting in before the December 31 tax deadline means you’ll be able to write off some of this year’s mortgage interest, along with deductions for points, property taxes and home offices.
There are still homes on the market from summer that some sellers may remove during the holidays and relist next year.
Spring and summer may traditionally be the peak home-buying periods, but the autumn months present several overlooked benefits — from reduced competition to lower prices to greater starter home inventory. Whether you’re a first-time homebuyer, relocating, moving up or downsizing, autumn can be the perfect time to begin your search and find a home you’ll “fall” in love with. Contact a Pennymac Loan Expert to explore our wide range of financing options for your home loan needs.
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Source: pennymac.com
A local home goods store that stocks recycled glass and furniture as well as merchandise from nonprofit groups is now open for weekend shoppers.
Diggs, at 228 S. Tucson Blvd., recently leased a 1,200-square-foot shop, south of Broadway.
From tables constructed from discarded doors to bottle scrubbers made from coconut shells and potholders crafted with corks, owner Dawn Elliott has hand-selected the inventory.
Indoor houseplants are a central theme in the shop, and she hopes to eventually add an outdoor plant area for shoppers.
A thrift store frequenter, Elliott buys glassware that she finds and makes decorative plants with rock décor.
She also shops flea markets and estate sales, and her husband, Patrick Trimarco, has found some throwaway gems in brush-and-bulky piles to transform into furniture.
The store also sources items from nonprofit groups and friends have brought Elliott items from estate sales.
“My ideal customer is someone who wants to make their home cozy,” Elliott said, “And, do some good.”
Already working full-time, she hopes to grow and expand the business hours. Currently, Diggs is open on Saturdays and Sundays from 10 a.m. to 6 p.m.
Other local commercial activity includes:
Information for Tucson Real Estate is compiled from records at the Pima County Recorder’s Office and from brokers. Send information to Gabriela Rico, [email protected]
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Source: tucson.com
The real estate market is often characterized by ups and downs, with certain seasons being more popular for buying and selling homes than others. While the spring and summer months may traditionally steal the spotlight, homebuyers increasingly recognize the advantages of purchasing a home during the off-season. These are the often-overlooked benefits of buying a home during the real estate off-season.
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One of the most significant advantages of buying a home in the off-season is the reduced competition. With fewer buyers actively searching for homes, you’re less likely to find yourself in bidding wars or facing multiple offers on the same property. This diminished competition allows you to negotiate more effectively and potentially secure a better deal.
During the off-season, sellers are often more motivated to close deals quickly. Whether they are relocating for work, downsizing, or have personal reasons prompting the sale, motivated sellers are likely to be more flexible when it comes to negotiations. This increased willingness to negotiate can translate into a lower purchase price, additional concessions, or favorable terms for the buyer.
Historically, home prices have been known to dip during the off-season due to decreased demand. Sellers may be more willing to lower their asking prices to attract potential buyers and facilitate a faster sale. This affordability factor can be particularly appealing for budget-conscious homebuyers looking to maximize their investment.
The off-season often means a more streamlined real estate process. With fewer transactions taking place, mortgage lenders, real estate agents, and other professionals involved in the home buying process may have more time and resources to dedicate to your transaction. This can result in a smoother and faster closing process, saving you time and reducing stress.
Off-season homebuyers have the advantage of inspecting properties under less-than-ideal weather conditions. This allows for a more accurate assessment of the property’s condition, including its performance during colder months. From checking the heating system to evaluating insulation, winter or rainy season inspections provide a comprehensive understanding of the home’s functionality throughout the year.
While the idea of house hunting in the off-season may seem unconventional, it comes with benefits that can make the experience more enjoyable and financially advantageous. By exploring the market during the off-season, you may just find your dream home at a dreamier price!
Are you looking for a home this winter? Give us a call today! One of the experienced real estate agents at Zoocasa is happy to help you along your exciting home-buying journey!
Looking for a home this off season?
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Source: zoocasa.com
While it is possible to take out a Federal Housing Authority (FHA) loan to purchase a second home, it’s only allowed in a handful of specific scenarios. Many first-time homebuyers choose an Federal Housing Authority (FHA) loan because of its lower credit score and down payment requirements, so when they need to purchase a second home the natural instinct is to look at financing with a second FHA loan. Read on for more details on how FHA loans work and the few exceptions that allow borrowers to qualify for more than one at a time.
An FHA loan is a type of mortgage that’s insured by the federal government and issued by a lender. FHA loans were created in 1934 at the height of the Great Depression to make homeownership more accessible. Since the FHA assumes the risk in case of default, lenders are able to offer more favorable loan terms to borrowers who might not otherwise qualify for conventional home mortgage loans.
With an FHA loan, borrowers with credit scores of 580 or more may qualify for a down payment of 3.5% of the home purchase price. (Borrowers with credit scores between 500 and 579 will be required to put 10% down.) These FHA loan requirements are helpful for first-time homebuyers who haven’t built up their credit or borrowers with less savings to put toward a down payment. FHA loans are one of several options for low-income home loans so consider all your options, whether you are thinking about taking out a first or second FHA loan.
Borrowers must also get mortgage insurance with an FHA loan. FHA mortgage insurance involves an upfront premium and an annual payment that’s added to monthly mortgage payments. The upfront premium is equivalent to 1.75% of the loan, while the annual payment is calculated based on the loan-to-value ratio and loan terms.
Besides the purchase of a home, FHA-insured loans are also available for home renovations and refinancing an existing FHA loan.
Recommended: How Do FHA 203k Loans Work?
It’s possible to get an FHA loan more than once. For instance, if you’ve sold a prior home and haven’t owned a home for three or more years, you’d qualify as a first-time homebuyer and be eligible for an FHA loan. (And if you have a conventional mortgage on your first home, you may be able to get an FHA loan for a second home provided your credit score is adequate and your budget can handle the cost of a second mortgage; you would also have to occupy the second home as your primary residence.)
Meanwhile, qualifying for a second FHA loan is more complicated. For one, the purchased property must become the primary residence for at least one borrower. This includes a requirement to occupy the property within 60 days and have it be their primary residence for at least one year. These occupancy requirements mean that an FHA loan can’t be used to buy vacation homes or rental properties.
Here are details on the exceptions that permit borrowers to get an FHA loan on a second home:
• Relocation: If moving for employment-related reasons, borrowers who financed their current home with an FHA loan may qualify for a second FHA loan on a new home before or without selling their first property. However, to qualify, the job must be performed on-site and the new home must be located at least 100 miles away from the primary residence that was previously purchased with FHA-backed financing.
• Increase in Family Size: Borrowers may qualify for a second FHA loan to purchase a larger home to accommodate their growing family. This is evaluated on a case-by-case basis but typically requires proof of an increase in legal dependents and having at least 25% equity in the home.
• Vacating a Jointly Owned Property: Borrowers who are getting divorced or permanently vacating a home they inhabited with a co-borrower may qualify for a second FHA loan.
• Cosigning: A borrower who cosigned an FHA loan but didn’t live in the property could qualify for another FHA loan to buy their own home.
Recommended: FHA Loan Mortgage Calculator
For borrowers who can satisfy one of the exceptions outlined above, the next step is meeting financial eligibility requirements for a second FHA loan. With any loan, and especially a second mortgage, lenders will consider the borrower’s ability to afford monthly payments when determining if they qualify. FHA loans can allow a debt-to-income (DTI) ratio of up to 50%, meaning that half of a borrower’s income is going to debt payments. Lenders, however, may look for a lower DTI of 43%, accounting for the cost of both mortgages, to approve a second FHA loan.
Borrowers will need to meet FHA loan credit score criteria to determine whether they’ll need to put 3.5% or 10% down. Besides the down payment, lenders also factor in savings for covering closing costs and monthly payments.
There are advantages and drawbacks to having FHA loans for borrowers to keep in mind.
Pros
• A smaller down payment
• No income limits
• Lower credit score requirements
• Can be used to purchase duplexes, triplexes, quadplexes, or condominiums
• May have lower mortgage insurance premiums than private mortgage insurance
Cons
• Loan limits of $472,030 to $1,089,300 for a single-family home, depending on the cost of living by state
• May require an inspection and higher property standards
• Can only be used for buying a primary residence
• May require mortgage insurance for the life of the loan
Consider these tips to be prepared to apply for a second FHA loan: To lower your DTI, you’ll either need to increase your income or lower your debt. Using your first home for rental income can demonstrate to lenders that you can afford having two mortgages. When evaluating debt, remember that established credit that’s in good standing is viewed more favorably than newer credit accounts.
Building more equity in the home you currently own is another option to help qualify for a second FHA loan. If possible, aim for at least 25% equity before applying for a second FHA loan, as this is the minimum required if you are citing an increase in family size as the exception.
Can you get an FHA loan if you already have an FHA loan? Yes, but there are specific exceptions you’ll need to meet in order to qualify, and the new property must be used as a primary residence for at least one year. Not able to take out two FHA loans at once? Don’t worry. There are other options for borrowing that may suit your needs.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
Borrowers could be disqualified from an FHA loan based on a high debt-to-income ratio, poor credit, or insufficient funds to cover the down payment, closing costs, and monthly mortgage payment.
Yes, you can get a second FHA loan if you are relocating for a new job, move at least 100 miles away, have an increase in family size, or vacate a jointly owned property. Borrowers who previously co-signed on someone else’s FHA loan may also qualify for FHA twice.
The 100-mile rule allows borrowers to get a second FHA loan without having to sell an existing property with a FHA-backed mortgage if they’re moving for employment-related reasons or buying a new primary residence that’s at least 100 miles away.
Photo credit: iStock/nazar_ab
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com
Strained affordability and challenges to remote work opportunities have contributed to the lowest share of home buyers relocating in 18 months, Redfin reports.
The 23.9% share of movers between September and November, down from 24.1% a year earlier, is the first annual decline in Redfin records dating back to 2017, the brokerage said. Relocations fell for the third consecutive month and are down from a record high of 26% over the summer.
Besides lofty mortgage rates and weighty principal and interest payments, Redfin pins some of the migration slowdown on employer constraints on remote work, which enabled more home buying moves during the coronavirus pandemic. Prices have since risen in cheaper destinations like Florida and Boise, Idaho, and locales like Sacramento and Las Vegas now top the top metros homebuyers are looking to move to.
“Prices in Sacramento — the most popular destination this month — are up about 35% since before the pandemic, compared with an 8% increase in the Bay Area,” wrote Dana Anderson, data journalist at Redfin.
Los Angeles for the first time topped Redfin’s rankings of metros buyers are looking to leave, followed by San Francisco and New York. The 10 most popular migration destinations by net inflow of searchers all had lower home prices than the most common origin of buyers coming in.
The brokerage determined the coveted destinations through its data of over 2 million Redfin users who viewed homes for sale online across over 100 metros.
Homeowners are also showing less interest in leaving their city limits — while there was a 4% drop annually in searches for a new metro, there was a 3% decrease in queries within the homebuyer’s city. Despite the negative trends, migration rates are still well above pre-pandemic levels around 19%.
Source: nationalmortgagenews.com
Combined into a series of federal, state and local laws, your specific renter’s rights get dictated by where you live. They’re in place to prevent things like housing discrimination and rent gouging. These basic rights ensure you have a safe, clean place to live as well as detailed courses of action when things are going wrong.
Landlord-tenant law helps you live peacefully in your rental. Do you know your tenant’s rights?
Before even taking a tour of a potential apartment, it’s your right to have fair access to housing. This means your rental application will not get rejected based on:
Your renter’s rights in this case receive protection at the federal level by the Fair Housing Act. State and local laws may reinforce the Fair Housing Act and even add more categories to this list to ensure everyone has equal access to apply for housing.
Not only can your rental application not get refused based on these factors, but, if you have a disability, landlord-tenant law requires they make reasonable accommodations for you to access the apartment. This could mean installing ramps or making a unit on a lower floor available.
Another piece to your renter’s rights is the lease. It’s the responsibility of the property manager to give you a legal rental contract to sign that abides by all laws.
In addition to specifics about the property, and breakdowns for processes like requesting repairs, using common areas and more, a lease must clearly indicate the leasing period and your monthly rent. It should also have your name, and any roommates, on the document.
The lease should also include a series of general disclosures. The law requires these, although it varies by state which specific ones must get listed. A few common disclosures you may see in your lease if they’re applicable to the rental unit, include:
A variety of rules govern your living space when you’re a renter. This ensures you have somewhere to live that’s actually livable. Tenants’ rights, when it comes to your actual apartment get pretty involved, so make sure you know the highlights.
It’s not enough for a property manager to provide you with an apartment; the apartment must be safe for you to live in it. This means more than a lack of dangerous conditions. Your renter’s rights entitle you to a home with usable utilities, including heat, electricity and water.
This area of your renter’s rights also means you have a home that’s safe and livable in other ways. Specifics within these guidelines require an apartment to have functioning locks on doors and windows, smoke detectors and a dedicated way to escape in case of fire.
This area of landlord-tenant law requires action on both sides. To ensure you have a habitable home, it’s up to you to report any maintenance issues using the process that’s outlined in your lease. Find out the best way to report issues like this to your landlord (such as through email or an online portal).
On the management side, their responsibility is to complete repairs in a timely manner. Your lease will define what this means, but different repairs rank higher in priority. For example, failure to repair a heater in winter can quickly lead to an uninhabitable living space for safety reasons, whereas a garbage broken disposal doesn’t create that serious of an impact.
If your property manager fails to make repairs in a timely manner, you have additional rights. Check with state and local laws about what’s within your rights.
Although you’re only renting a home, and someone else owns it, your rights as a tenant mean a certain level of privacy. Once your rental agreement is in place, a property manager cannot come into your home without proper notice.
Notice is also required for more than just repairs. If you’re getting ready to move, and the property manager wants to start showing your unit to prospective tenants, for example, they must give you notice each time.
Each state usually handles security deposits differently as far as how much you’re required to put down. It’s normal for you to pay a security deposit though since that protects the property manager from having to pay out-of-pocket for any damages you may cause while living in your rental.
As far a payment goes, some states set caps on how much a property manager can ask for. They also can’t impose a higher deposit for your rental, when compared to other units in the building, without a specific reason, like having a pet.
It’s also within your renter’s rights to get the security deposit back, in a timely manner, if it’s not covering any damages. Most state laws set the time frame at 30 days, and you’ll not only receive your security deposit back but any interest that accrued as well.
If any of your deposit is withheld, you can ask for written documentation of the damages it’s paying for, and the property manager must comply.
The situations where your property manager has the right to evict needs clear stating within your lease. Make sure to review them before you sign it.
Standard landlord-tenant law states that you can get evicted if you break your lease in specific ways, such as:
As a renter, your tenant rights enable you to address evictable issues within a specified time frame before an eviction can take place. You will receive notice of a pending eviction from your property manager. If you fail to fix the issue, they can then file an eviction with the courts resulting in legal removal from your rental.
Although you’ll find many standard regulations associated with renting if you move between states, expect additional laws everywhere you go. Since renter’s rights get regulated on both the state and local level, if you’re relocating to a different part of the country — familiarize yourself with local tenant laws.
Some unique landlord-tenant laws include:
As you can see, some states have pretty extreme rules. Being aware of them can help you maintain a positive relationship with your property manager while also protecting your own rights as a renter.
No matter how great, or rocky, your relationship is with a property manager, you should always follow the law as it pertains to your situation. This not only protects you, but it ensures your property manager gets held accountable when anything isn’t up to par.
Familiarize yourself with state and local landlord-tenant laws, read your lease thoroughly before signing and do your research when faced with a potential issue. Protect yourself by knowing your tenant’s rights.
Source: rent.com