Are you debating  whether or not to make an offer on a home before the New Year begins? Well....STOP deliberating and get out there and submit the offer!  Between changing lender rules, mortgage rate hikes and the 2013 tax benefits;   closing before the end of the year can mean significant financial benefits.  

Here are five ways you WILL benefit by closing on a home before the end of the year.

1)  New Year means new lending rules.  Lending rules are changing on Jan 1st, and that means it could become more difficult to get a loan. The new rules will allow you to borrow less, at your same income level! The current 2013 mortgage borrowing rules allow for a 45% total debt-to-income ratio.  This ratio does go down to 43% in 2014,  meaning you will have to make or reduce your debt in order to buy the same house you are currently living in.

2) Avoid rising interest rates. Although mortgage interest rates are still pretty attractive, they are up 1-2% over last year during the same time period.  The Mortgage Banker's Association is predicting that mortgage rates will rise to around 5% in 2014.  If you decide to buy now and the rates drop...you can always refinance, but if you wait...you are stuck.

3) Maximize tax deductions.  Although this is the most commonly thought reason for closing on a home before years end, it is an important one.  You can start deducting mortgage interest and building equity immediately.  Also, because some closing costs and points are deductible, you can start deducting them the year you purchase the home,....and that means they are included in your 2013 tax return!  If you wait even 3 days into the new year,  you will not be able to take any deductions until years end of 2014.

4)  Easier financing.  Are you waiting for home prices to decrease?  Don't!  It is quite possible that the mortgage rule changes for 2014 will make it more difficult to get financing.  So if you are waiting to "save" a few bucks hoping for home prices to drop, you may put your ability to purchase a home in jeopardy,  if you cannot secure a mortgage at all!

5) Lower Sales could mean higher inventory.  Look at it this way...it's the "After Christmas" sale...before Christmas!  Even though 2013's theme was low inventory and higher home prices, the fourth quarter has always seen a slowing down of the housing market, and 2013 is no exception.  Housing sales have declined since September, so the inventory has increased, but the constrained inventory still means double digit year-over-year gains.  What does that mean to you...you may secure a GREAT DEAL IN DECEMBER!

At Team Lynch Real Estate Consultants, we are here to answer any and all of your real estate questions, provide you with a unique, successful, personalized marketing plan to help sell your home or utilize our expertise to help you find the home of your dreams.

Source:  RISMedia

Home Warranties are a service contract to complete future repairs/ or replacement on household appliances and systems. The interest in Home Warranties seem to go in cycles, but bottom line- they do help both the seller and buyer. Once misconception about Home Warranties is that they are only available for "single family" homes. Untrue- they can also be purchased to protect appliances and systems in condo's, townhomes, vacation homes, multi-family homes and rental properties.

What do Home Warranties typically cover? Most policies cover the cost to repair/ or replace the following:

*Furnaces

* Air Conditioning Systems

* Plumbing & Electrical Systems

* Dishwashers

* Ovens

* Garbage Disposals

* Refrigerators

* Water Heaters

and so much more.

Because these items are not typically covered in a Homeowners Insurance Policy, the cost to repair/replace even one item, more than pays for the cost of the warranty itself.  And having one in place gives your buyer an added level of protection and comfort knowing that if something should go wrong with any of these....that it will be covered.  This is another enhancement to the Homeowners Insurance Policies.

If you're a seller, you should know that research from the National Home Warranty Association estimates that, on average, listings with home warranties sell 50% faster than homes without warranties. And Business Week Magazine indicated that homes with home warranties sell at a premium of 3% in higher price.

Even better...these claims are extremely easy to use! Here are the simple steps you would take to file a claim:

* When a covered appliance or system fails, the home owner calls the Home Warranty company.

* The Home Warranty company then confirms that the failure is on a covered system or appliance.

* If the system is eligible, the home warranty company selects a pre-screened service provider from its roster and asks them to make an appointment with the homeowner.

* When the service provider arrives at the home they will diagnose the problem and call the Warranty company who will then authorize the claim.

* The homeowner usually pays a service fee to the contractor, and the Home Warranty company pays for the balance of the repair.

​For more information on Home Warranties or any of your Real Estate questions or needs, give us a call and we'll be happy to assist you!
 

Any homebuyer or seller who peruses news outlets for information can become quickly confused by the news headlines regarding real estate.  There is no doubt that conflicting information about the industry is reported on a daily basis.

The reality is real estate is a very local business. What is happening in regards to sales, pricing, and inventory nationally or even state-wide, may not be happening in your local community.

Understanding how the information you read impacts you directly can also be difficult to navigate.  Do interest rates impact the buyers looking to purchase in your neighborhood? Do inventory levels impact housing prices in the community you want to move to? Can you qualify for a mortgage? What is the optimal price that your home will sell? 

Working with Team Lynch real estate professionals can provide you with the solid facts that are relevant to you in your local area, and can guide you through the glut of information. 

Team Lynch sales professionals not only have the professional experience and knowledge to assist, but they deal in their local marketplaces every day and have access to pertinent local data that can help you make sound home buying and selling decisions.

Your Team Lynch agent can help you analyze the market data and explain explicitly what it means to you. They can provide you with a competitive market analysis and give expert guidance on current market conditions that impact you and your neighborhood directly. 

Whether you are home seller who needs professional guidance to price a property appropriately, or a home buyer who needs a responsible representative who will lead you through the process, your Team Lynch Realtor expert can advise you, dissect those national headlines, and give you the right kind of information to help you make the decisions that are right for you.