Buy-a-Home vs. Rent-a-Home Choice has Great $ Impact!

The answer to the question about whether any individual or family would be better off if they rent or buy a home can differ depending upon when the question is posed as well as the particulars of the available properties in either category. Even when the financial calculations make it clear that to buy a home in Metairie would result in significant savings, it’s possible that credit problems or simple cash inaccessibility render the choice moot—for the moment, anyway.

The reason a family budget is universally recognized as the single best way to get a handle on finances is because if you don’t know how much you’re spending in any given area, you won’t know when it needs to be curtailed. Given the size of monthly rent or mortgage outflows, it’s a pretty good idea for anyone with a long term outlook to know what the rent vs. buy a home trade-offs are. The answer to that can be spectacular enough that a change in plan is called for.

For some time, one of the national real estate web sites—Trulia—has posted a calculator that yields an approximate answer to the rent or buy question. It is aimed at metro areas only, and concedes it’s at best an approximation, but when you enter “US Average” for the location, it comes up with a percentage difference. Right now, for the U.S. median home price of $180,800 and median rent price of $1,545, “buying a home” comes up as 44% cheaper than renting!

Now, there are a whole bunch of assumptions that should have us taking that answer with a shaker or two of salt. This assumes, for instance, that were you to buy a Metairie home with the national parameters you would be the happy beneficiary of “today’s mortgage rate,” which Trulia presents as 3.6%. Yes, this rate is actually being offered in some places to borrowers with spotless credentials, but counting on it would be iffy for most folks. Yet if you substitute 3.9%, buying a home is still 43% cheaper; a 4.2% loan makes the answer 41% cheaper.

Likewise, because the tax advantage gained when you buy a home is so stark, your income tax bracket can tip the buy vs. rent comparison greatly. If you move down from the assumption of a 25% tax rate (seems unlikely for the $180,000 median home buyer), even with a 15% tax rate, buying is 41% cheaper.

Sooooo, it looks like it’s always a very good idea to buy a house instead of renting it, right?

Wrong! The most important factor is the one that makes the most sense: “how long you intend to live there.” Its starting point assumption begins at 7 years. Move that down to 3 years and—all else being equal—the calculator comes up with buying being only 19% cheaper. Assume 2 years, and the buy vs. rent answer is that the costs are about the same. And at 1 year, renting is 37% cheaper than buying!

The precision of these percentages are unlikely to be spot-on for any given local individual or family, but the answers are probably useful anyway. It does indicate that for anyone planning on staying put locally for at least 3 or 4 years, taking a closer look at the rent a home/buy a home financial impacts will be worthwhile. I can help with current realistic Metairie specifics, so why not give me a call?

Want to know your homes value?   Click here:      Smart Home Price

Terez B. Harris

Keller Williams Realty New Orleans

504 975 1033

TerezHarris@KW.com

TerezSellsNolaHomes.com

8601 Leake Ave., New Orleans, La 70118

 Free Reports:

 7 Seller Tips for 2015

Home Trends

Smart Home Price

 Name Your Selling Price

Would you like more information?

We would love to help you with your Real Estate questions.

There is one overriding quality you must demand when you hire the Metairie agent who will be your partner and representative. It’s a quality you and you alone are qualified to judge. And it should be the final determinant—the last factor you consider before you make your final agent choice.

Now it’s true that in many instances, this quality isn’t even one you have to think about. That’s true when you have previously worked with a Metairie agent who did what she or he had promised. When you’ve bought a home or sold one, been helped through successful negotiations, dealt with the unexpected snags with a minimum of disruption—and finally wrapped up the closing paperwork on schedule—you probably need search no further. It couldn’t be easier: pick up the phone, and voila! Your agent is on the job!

But if you’re new to Metairie; or previously had only a so-so experience with a Metairie agent; or if your Metairie agent is no longer available for some other reason, Job One before any selling or buying begins in earnest is the only part of the process that you will have to undertake completely on your own: identifying the agent who will serve you best.

When you choose a lawyer or accountant to represent you, a number of factors come into play that isn’t involved in choosing a real estate agent. With other professionals, their fee structures can be crucial. Although hiring the best lawyer in town can be out of reach for strictly financial reasons, that’s not true in real estate. If you’re buying, your agent’s fee come out of the seller’s proceeds—in other words, all town real estate agents, from best to worst, cost you nothing! If you’re selling, most agents work on substantially similar percentages. Another factor that plays a greater role in choosing candidates in other professions is convenience—where their offices are located. With real estate, everyone who actively works in the Metairie area will make your location (or the addresses of your prospective next home) the focus of activity. The agent’s own location isn’t a determining factor.

So what is that final determinant? After you have interviewed the agents who seem initially qualified—what should be the decisive factor?

It’s trust.

In the momentous enterprise that lays before you, the overriding factor has to be the degree of trust you feel in the individual who will be your teammate. It’s why you are the only one qualified to make the choice.

The process of buying or selling a home involves laying out your highest hopes and deepest reservations about home ownership—and trusting that between the two of you, the best opportunities will be uncovered, the best bargains struck, and all will be protected by properly executed documentation. Trust is the feeling you have for how the two of you interact—how the chemistry is there or is not. It’s how comfortable you feel when you are communicating, because you should trust your agent’s insight into your needs and goals, so that you can depend on the guidance he or she provides.

I hope when your next real estate venture is close at hand, you’ll make me one of your interviews. And if we’ve worked together before—welcome back! 

Selling Your Metairie House in Fall includes Planning for Success!

            It’s October­­­; a time of year that has a lot to recommend it. In many parts of the country, it’s the season when Mother Nature goes full throttle with the Technicolor. Sunsets can be outrageous. In some parts of the country, leaves can bid adieu with displays that put rainbows to shame. Fall weather turns the air a bit crisper. All in all, to a lot of folks, fall is the favorite time of the year.

            Selling your Metairie house in the autumn, on the other hand, can present some special challenges. Selling your house in the springtime, for instance, doesn’t include clearing the garden of the remnants of summer growth (that is, unless you let it go the previous year!). The plusses and minuses of selling your house after the peak spring-summer real estate rush is over can be debated at length. What isn’t debatable is that to take full advantage of selling your house this time of year, you should be aware of a few specifics:

• Keep up with the season

… leaf fall for yards with deciduous plants can require almost daily attention during some periods. You’re the best judge of when the debris crosses the line from pleasantly natural into downright unsightly­­—but in any case, it’s a good idea to make a quick inspection part of your daily routine.

• Keep up with the weather

… leaf fall is one thing, but windy fall storms can turn a well-kept garden inside-out in a few hours. After a storm passes, be prepared to hose off the traces of muddy puddles and do some organized sweeping. It can make a big difference when you approach a house with a clear walkway (vs. one that looks like a typhoon just passed!).

• Pet areas

…they can be more difficult to manage in autumn and winter when Mother Nature can keep them indoors for longer periods or make their favorite hangouts less accessible. Being more flexible and attentive to their needs than in summertime is often necessary.

• Prepare the mechanicals

…if sudden chills descend, knowing that your heating setup is ready to go into action assures a welcoming environment for prospective buyers. If it hasn’t been in use since last spring, a system may produce some unpleasant side effects the first time it’s fired up. If yours one that needs a yearly checkup by the utility company, better not wait!

• Anticipate success!

Selling your Metairie home in fal­l­ and winter may take a little extra vigilance when the weather acts up, but buyers at this time of year can be more eager to close on their new home. Be organized for success, which can mean everything from having a year’s worth of utility bills ready to show­, to scoping out where you’re headed next.

Selling your Metairie home efficiently takes some organization and planning. A good first step is to get in touch with a Metairie real estate professional who will pitch in and help every step of the way. In other words—call me!

Want to know your homes value?   Click here:      Smart Home Price

Terez B. Harris

Keller Williams Realty New Orleans

504 975 1033

TerezHarris@KW.com

TerezSellsNolaHomes.com

8601 Leake Ave., New Orleans, La 70118

  Free Reports:

 7 Seller Tips for 2015

Home Trends

Smart Home Price

 Name Your Selling Price

Would you like more information?

We would love to help you with your Real Estate questions.

Reverse Mortgage Pitches Draw Consumer Group’s Ire...

Whenever the words “reverse mortgage” are uttered, any Metairie TV viewer immediately makes the connection with one of several celebrity spokesmen who blanket the airwaves with commercials touting the concept. If you listen carefully, those reverse mortgage ads do actually describe the product with legal accuracy. If you have the standard degree of sales resistance most of us have developed after years of exposure to Madison Avenue pitches, you probably guess that instead of relying solely upon the celebrity spokesman’s trustworthiness, you’d better investigate further before running out and applying. Most people do.

So it was surprising when the government’s Consumer Financial Protection Bureau found it necessary to issue a special advisory on the subject. Potential Metairie reverse mortgage applicants—that is, Metairie homeowners who meet the minimum age requirement of 62 ½—were warned “not to be deceived” by the “late night TV ads that seem too good to be true.” Without quibbling with the CFPB about when those commercials appear (you can see them almost any time after about 3 p.m.), it is easy to see how they might create broadly mistaken impressions on at least two counts. And it’s too bad, because although a reverse mortgage can be a useful instrument, it really can have nightmarish consequences for someone who doesn’t fully understand the concept and its ramifications.

The warnings were the result of the consumer watchdog organization’s focus group study that showed many viewers coming away with misimpressions following screenings of the ads. Many did not understand that a reverse mortgage is a loan. Others got the impression that a reverse mortgage is a government benefit—and worse, some thought it guaranteed that consumers could stay in their homes for the rest of their lives.

The fact is, these loans are simply a specialized way seniors can tap into their home’s equity: the value that has built up over the years. It’s true that they are designed so that the homeowners do not have to repay the loan until he or she passes away, sells or moves out—but it’s no guarantee that other factors (like taxes, homeowner’s insurance, and maintenance expenses) might not still cause a default should the borrower run out of money.

There are other fine print details that are not mentioned in most of the ads…and they’re every bit as important as the terms of any loan. Among those that are barely touched upon are the facts that there are costs and interest provisions attached to reverse mortgages—and the CFPB finds them to be relatively expensive.

Most Metairie homeowners are probably skeptical enough of any “too good to be true” pitch to automatically take a harder look—especially when it involves their Metairie home’s equity. If you have questions about financial matters having to do with that equity, your best bet is to discuss the details with a trusted financial advisor or a federally-approved housing counselor. And for any other questions about Metairie real estate, you needn’t hesitate to give me a call!

Want to know your homes value?   Click here:      Smart Home Price

 Terez B. Harris

Keller Williams Realty New Orleans

504 975 1033

TerezHarris@KW.com

TerezSellsNolaHomes.com

8601 Leake Ave., New Orleans, La 70118

  Free Reports:

 7 Seller Tips for 2015

Home Trends

Smart Home Price

 Name Your Selling Price

Would you like more information?

We would love to help you with your Real Estate questions.

Metairie Bookshelves Hold Crucial Real Estate Information!

When it comes to understanding the factors that come into play when buying or selling home— or any practical real estate information at all—Metairie high school (or even college) graduates are on their own. If any real estate information has even been touched upon, it will have been in the most cursory manner: at best, one line item in a Home Economics budgeting discussion.

That’s one reason why everyone from first time Metairie homebuyers to itinerant real estate investors can benefit from the best of today’s how-to real estate books. Here are some of the popular oldies—as well as some valuable newcomers:

100 Questions Every First Time Home Buyer Should Ask is Ilyce Glink’s compilation of insights from top brokers across the country. Town first time buyers aren’t the only readers who will find this general reference valuable— Metairie home sellers who want insight into the concerns of potential buyers will find it a useful resource. The “100 Questions” don’t address every Metairie real estate information topic; but on the whole, this book is concise and informative.

Solid, practical information for homeowners readying their property for the Metairie market can be found in Rhoney and Richard’s Smart Essentials for Selling Your Home. In the same way that 100 Questions book is also useful to sellers, this one would make excellent reading for prospective home buyers who recognize the importance of understanding sellers’ priorities. Smart Essentials is mercifully short: just 92 pages!

For more seasoned readers who might be considering an Metairie residential investment, the bookshelves have plenty to offer:  

The second edition of Gallinelli’s What Every Real Estate Investor Needs to Know about Cashflow has been around for a while, but comes highly recommended for its textbook-level explanation of how economists digest real estate information for investment purposes. The formulas are all there, as well as examples that demonstrate how to apply them. Reading it won’t encourage prudent Metairie non-CPAs to do their own business tax returns—but will acquaint them with valuable foreknowledge on how their tax advisor approaches maximizing their refund. Its description of four different ways to make money from real estate can be eye-opening.

J. Scotts’ The Book on Flipping Houses (how to buy, rehab, and resell residential properties) is a roadmap from start to finish on how to go about a lucrative house flip. There are many books on the subject, but this one is the leader of the pack. First published in paperback in 2013, it’s been a real estate information best seller ever since. Part of its wide appeal is the author’s (he’s a veteran flipper) candid step-by-step descriptions of how he executes his own projects. The author’s other book (with co-author Brandon Turner) is:

The Book on Estimating Rehabs. This is a book Metairie real estate information-seekers should find well worth its hefty paperback price tag ($22.49 on Amazon). It details a variety of different approaches to projecting a rehab budget, including a breakdown of the 25 components that need evaluating.

Books can provide invaluable background information for real estate newcomers and veterans alike. Another essential is the assistance of a knowledgeable agent: good reason to give me a call!   

Want to know your homes value?   Click here:      Smart Home Price

Terez B. Harris

Keller Williams Realty New Orleans

504 975 1033

TerezHarris@KW.com

TerezSellsNolaHomes.com

8601 Leake Ave., New Orleans, La 70118

  Free Reports:

 7 Seller Tips for 2015

Home Trends

Smart Home Price

 Name Your Selling Price

Would you like more information?

We would love to help you with your Real Estate questions.

Chance Metairie Open House Visits can Spark Interest!

More than one Metairie home sale has resulted from a couple’s chance encounter with a Metairie open house. It still happens that they just drop in on the spur of the moment.

         “Oh look! They’re having an open house down the street!” turns into curiosity, then interest, excitement—and ultimately, a life-altering change in where they call home.

         Today that still happens, but a good deal less frequently than in the past. Part of the reason is the demotion of the open house in the pecking order of Metairie real estate strategies. At this point, a Metairie open house is simply never the central element in a home’s marketing blitz. The web has seen to that.

         Let’s face it: if you can visit any listed home via its online virtual tour, the whole idea is that it requires a fraction of the time and effort an in ­person visit takes. A home’s virtual tour is where you’ll head first. If you are aware of a Metairie open house scheduled for the weekend, chances are you may also check it out online first. If you like what you see there, you might even be tempted to call your agent or email the selling agent to schedule a private showing. Getting there ahead of the masses can give you an edge if the property draws a crowd.

          If the online media (including the rapidly-expanding mobile universe) weren’t so ubiquitous, it’s a cinch we’d be seeing a whole lot more ‘Open House’ signs just driving around town. But it’s not a completely extinct phenomenon. For the house hunter who is just initiating the effort—anyone who suspects that a less virtual, more three-­dimensional excursion is the best way to get a feel for what’s out there—look for notices in the newspaper classifieds, and even check the old-­fashioned places—like grocery store bulletin boards. And Sunday is still the day you’ll find the most “Open House” signs in town front yards—as well as their cooperative neighbors’ corner lot lawns.

          Open houses can offer a leisurely weekend way to wade into this fall’s residential offerings, but for those who have advanced to a stage where a more concentrated and efficient effort is called for, there’s no substitute for the assistance of an experienced town real estate agent. And there is also no need for such a substitute—I’m right here, ready for your call!

Want to know your homes value?   Click here:      Smart Home Price

Terez B. Harris

Keller Williams Realty New Orleans

504 975 1033

TerezHarris@KW.com

TerezSellsNolaHomes.com

8601 Leake Ave., New Orleans, La 70118

 

  Free Reports:

 7 Seller Tips for 2015

Home Trends

Smart Home Price

 Name Your Selling Price

  

 

 

 

Would you like more information?

We would love to help you with your Real Estate questions.

Metairie Listing Lingo may Link to Sales Performance!

If 90% of home buyers use the internet at some point in their search, the percentage who go to the Metairie listings has to be close to the same ballpark. It’s hard to imagine anyone NOT wanting to take at least a peek at the current listings. Even if they have already settled on a target property, curiosity would send most of us to check out the way it’s described in its Metairie listing.

When you begin your house-hunting project online, the chances are you just scan the listings’ major features to narrow down the candidates, leaving out the majority of the finer details until later. Some of that information might turn out to be decisive—but most likely not until you’ve settled on the major contenders, and possible already toured them in person.

What can be more important than you’d think might be the descriptive language that describes the overall property: the ‘blurb’ that’s up there at the top of Metairie listings. Just as a good salesman in any field strives to present the most attractive facets of their product, a Metairie listing’s descriptive paragraph can be as important as the glamour photo that accompanies it.

In pursuit of facts that might support that idea, Zillow’s writer Catherine Sherman took a look at some research that dissected the language used in some 24,000 listings. They all resulted in sales—but some brought higher sale prices than did others. Her summary of the findings is pretty interesting:

Luxurious, Captivating, Impeccable (and Spotless) were among the adjectives that appeared most often in listings that resulted in above-average sale prices. That stands to reason: adjectives pointing to higher-end features would be apt to set a superior tone.

Less obviously, some of the nouns that accompanied larger price tags were Basketball, Pergola, and Granite. “Granite” will surprise no one who has been exposed to home design over the past 20 or 20 years—granite counters are the default go-to material that’s come to symbolize quality in kitchen décor. And pergolas are landscaping plusses…

But…“Basketball”?

Apparently for lower-priced homes with listings that mention ‘basketball,’ selling prices are 4.5% more than expected. You have to suspect that the word gives some color to a run-of-the mill listing—yet I’d be surprised if just setting up a hoop over the garage door made much of an impact. When Author Sherman writes “Among lower-priced homes…an indoor basketball court is a huge selling point,” I have to think, “DUH!” How many Metairie listings for lower-priced homes have indoor basketball courts (or bowling alleys or soccer stadiums, either)?

More practically, Upgraded and Updated were listing words that coincided with slightly higher sale numbers—at least in mid-priced homes. And Gentle was a surprising winner, too, as in “gentle rolling hills.”

I think ‘gentle’ highlights the most important take-away that I believe is relevant and true. Thoughtfully composed, accurate descriptions are what give Metairie listings a working advantage over cookie-cutter summaries—especially those weighed down by cliché-studded vocabularies. I work hard to insure that my clients’ online presence stands out from the crowd. If you plan to be listing a Metairie aproperty soon, I hope you will give me a call to demonstrate what I mean!

 Would you consider selling YOUR home? Name your price!

The culture of our city has so much to offer... Love our city, New Orleans.

Questions about buying or selling a home?
Call Terez B. Harris 
504.297.2619

View Homes For Sale in Metairie
View Homes For Sale in New Orleans

Terez B. Harris
Terez Harris NOLA Realtor Group

(504)297-2619

                                                    www.TerezHarris.com
                                                              TerezHarris@kw.com

See what your neighbor's home sold for...

See What Your New Orleans Home is Worth!

See What Your Metairie Home is Worth!

Metairie For Sale By Owner? 

 New Orleans For Sale By Owner?

      

Terez B. Harris   Terez Harris NOLA Realtor Group   504-297-2619   www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100

Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.

How-to Books Can’t Guarantee Metairie Real Estate Agent Success!

 

There is an interesting theory about why some Metairie real estate agents complete so many more home purchases than do others. It isn’t that ‘success breeds successes (although the thing we call “momentum” is certainly real enough). It has to do with being able to harness two somewhat opposing character traits.

In any business, there seldom seem to be any irrefutable rules that guarantee prosperity…or if they do crop up from time to time, they don’t work for long. Since that’s the case, it’s odd that there are so many best-sellers proclaiming roadmaps to success. If all those books were simply rip-offs, you would think they’d quickly develop a backlash (which would kill the market for books about succeeding in business).

I’d be willing to bet that the answer lies in the commitment it takes to buy and read the book in the first place. If you don’t finish it, you feel guilty enough that you won’t blame the author. If you do finish the book, you probably already possess the energy and stick-to-it-ness that means you’re more likely to succeed in the first place.

That self-validating quality applies to Metairie real estate agents—and most of us would probably place it at the top of the list of what makes a good agent: Persistence. Dogged single-mindedness. Tenacity. They’re traits that true go-getters possess. Those are attributes that don’t reward only real estate agents: they apply in any walk of life. Leaders tend to have them. When others falter, lose faith, or simply run out of steam, success can result from nothing more than simply not giving up.  

So what’s the ‘contrary’ attribute that doesn’t automatically belong with that first one? It has to do with teamwork. It’s the ability to make the most of the unique role that a real estate agent plays in the ‘team’ that is created with the client—the one who wishes to sell or buy a Metairie home.

Being a true team player is what is called for, because an agent is called upon to play multiple roles. Sometimes it is to act as a crew member, whose greatest attribute will be the ability to listen well and follows the direction of the client (the captain). At other times, the agent has to become the functional team leader—the authoritative voice and consensus-maker. That’s often necessary for the many transactional real estate details. Performing both roles with good cheer and equal vigor calls for someone who relishes team collaboration—who enjoys the rewards that go with team membership. It also calls for the kind of flexibility that makes for a great substitute teacher or a great backup player in any sport. Not a character trait that automatically belongs to a never-say-die individual achievement-oriented performer!

I greatly enjoy what I get to do as a Metairie real estate professional. It’s a team effort, all right—one that rewards perseverance with the bona fide thrill of a successful closing. If you’ll be making a real estate transition in the coming months, I hope you will consider me for your team!

 Would you consider selling YOUR home? Name your price!

The culture of our city has so much to offer... Love our city, New Orleans.

Questions about buying or selling a home?
Call Terez B. Harris 
504.297.2619

View Homes For Sale in Metairie
View Homes For Sale in New Orleans

Terez B. Harris
Terez Harris NOLA Realtor Group

(504)297-2619

                                                    www.TerezHarris.com
                                                              TerezHarris@kw.com

See what your neighbor's home sold for...

See What Your New Orleans Home is Worth!

See What Your Metairie Home is Worth!

Metairie For Sale By Owner? 

 New Orleans For Sale By Owner?

      

Terez B. Harris   Terez Harris NOLA Realtor Group   504-297-2619   www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100

Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.