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The Differences in Home Value

The Differences in Home Value

We often get asked by clients what the value of their home is, however, there are many different answers as to what this truly means! While this may seem confusing at first, we’re here to make sure you have a simple breakdown so you can understand what the variant discrepancies in your home’s “values” are and why! Here are just a few ways your home can be valued: Fair Market Value This value is probably the one you are most familiar with and is important to know if you plan on selling. Fair market value is the price both a buyer and seller can agree upon. This value is generally determined by performing a Comparable Market Analysis by a real estate professional. Through this analysis, real estate professionals look at comparable comps in the surrounding market and well as any features in your home that may make it more desirable to home buyers. Insured Value This type of value is generally produced for insurance companies and coverage. As a homeowner, having home insurance is crucial in order to protect your assets. In most cases, homeowner policies typically have replacement clauses which include cost of demolition, clean up, new construction, and the added complexities of matching existing construction that could exceed the cost of new construction. This value can be higher or lower than the market value depending on the location of your home and its amenities. Investment Value Sometimes when it comes to real estate, owners use it as more of an investment tool than a place of residence. The investment value is created to indicate the income the property can generate during its useful life. This value is dependent on what kind of yield the investor requires to capitalize on the value overtime. How this value is created is by dividing the net operating income by the capitalization rate required by the investor. Assessed Value The assessed value of a home is determined by property taxes the owner is required to pay by the responsible state government agency. When trying to get a comprehensive idea of how much your home is truly worth, it’s important to understand and consider the different values and their definitions. The professionals at Albuquerque's Team Sedoryk Properties can discuss the differences with you and help you gain a better idea of what your home is worth. For more information, please give us a call at (505) 985-5905.[...]
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Student Debt Holding You Back from Homebuying?

For many, getting their college education was a great experience. Not only were they able to continue their education, but obtaining a degree has allowed them to pursue careers that may have otherwise been inaccessible. While all of this sounds positive, many college graduates have a great deal of student debt. Student debt not only makes daily living a struggle, but it also hinders those who want to start building their lives from taking the next steps. In a 2017 Aspiring Home Buyers survey, 59% of non-homeowners are not comfortable with taking on a mortgage with their student debt. Many college graduates are plagued with playing off student loans for several years after they’ve graduated. It is estimated that college graduates today have an average of $37,172 in student debt, thus, making the idea of owning a home a pipe dream for many, or at least until the debt is payed off. However, we’re here to tell you buying a home in Albuquerque while still paying off student debt doesn’t have to be a dream for the future! Many lenders have loan programs with as little as three to five percent down payments, but now, lenders have announced changes to how student loan debt is treated, which can make a world of difference in qualifying for a mortgage! For the 5 million borrowers who participate in the reduced payment plan, actual payments are considered for calculating debt-to-income ratio rather than maximum payment amount. Basically, what all this means for you, is that lenders will look at your annual income and the percentage of debt-to-ratio income without all the other factors, thus making your payments more affordable. However, non-mortgage debts are paid by another party of at least 12 months, will not be calculated into the debt-to-income ratio. For instance, if your parents are contributing to loan payments, they would not be counted against the DTI ratio for the student. With all these changes, students still paying debt now have a great opportunity to make homebuying a reality instead of waiting years before they are able to purchase a home. Best practice is to consult a trusted mortgage professional to find out if these new changes apply to you, and get pre-approved for a home loan. If you are ready to take the next steps towards become a homeowner, give Team Sedoryk Properties a call today: (505) 892-1000. We’ll help you find the perfect home and lend you a helping hand to find a trusted mortgage professional that fits your needs.[...]
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Better Home Buying: Must Be This Tall to Ride

As a child, for many people, going to an amusement park was something you looked forward to. However, we’ve all been at a stage in our lives when some of the roller coasters were just a bit out of reach, so you were forced to go on the “little kid rides”. Then finally, you think you’ve grown enough to make the height requirement to go on the “big kid” rides. You wait in line with your family and friends, and make it all the way to the ride entrance, just to find that that you are not quite tall enough to get on the ride. Not only are you saddened to have waited all the time to go on this amazing ride, but you are also a tad embarrassed. Whether this has been your experience or not, we’ve all likely have encountered this feeling at some point in our lives, and it’s not a feeling we’d like to repeat. When it comes to home buying, a similar situation can occur. Many people start the search of finding their dream home, find the perfect house, and begin negotiating the contract. They make an offer on the house, only to find that they don’t have the finances to obtain the home. Not only do people going through this process feel embarrassed, but they are also disappointed to not be moving into their dream home. Avoid the frustration of finding the perfect home only to find out you are unable to afford the mortgage payments. Best practice is if you are buying a home with a loan, make sure you visit with a trusted mortgage professional before you start the home buying process. By speaking with a trusted mortgage professional, you’ll be able to find out how your credit score will affect your mortgage rate, discover any issues with your credit that you may be able to correct, and even get a pre-approval letter that you can submit when you make an offer on a home. This can dramatically affect the negotiation process in today's market, and make for an easier home buying experience. If you are serious about getting into the home of your dreams and starting the home buying process, contact Team Sedoryk Properties today! We can help you sift through the list of current Albuquerque homes for sale to help you find the perfect one, as well as guide you to finding the right mortgage professional for you![...]
Save Money on Your New Home this Winter

Save Money on Your New Home this Winter

You’ve just purchased your new home in Albuquerque or Rio Rancho, and now winter is around the corner! With the temperatures dropping outside, it’s important to save a few dollars when it comes to staying warm inside. After all, you just spent a large investment on the home of your dreams. Here are a few cost-savings tips to keep you and your family comfortable this winter! Watch the Windows If your heater is on overtime, don’t waste the effort by letting it all leak out the windows. This applies especially to older homes that haven’t had new windows in a while. One way is to buy a indoor window insulator kit, which is basically a clear film that goes over the window and blocks heat from leaving and cold air from leaking in. If you are looking for a more stylish approach, checkout your local store for insulating drapes or shades to do the trick. Blankets Are Your Friend It’s best to turn back the thermostat about 10 degrees, which means it might be chillier than you want. Placing a handful of blankets and throws around your house is a great way for your family to stay warm while avoiding that thermostat. Best of all, there’s no greater pleasure than relaxing under a warm blanket with a cup of hot chocolate! Don’t Forget About the Water Heater According to the US Department of Energy, water heating makes up 18% of the energy consumed in your home. It’s recommended that you turn down the water heater to about 120ºF, which will be considered a ‘warm’ setting. If you have kids, try to encourage them to take quicker showers to make sure the costs don’t keep going up and up this winter. Other little things like washing your clothes on cold and only running the dishwasher when it’s full will make a big difference. When it comes to the cold in New Mexico, you have to be ready to save on energy. When you buy a new home, these factors are important to keep in mind so you don’t get caught off guard by huge bills that throw off your holiday savings. If you have any questions about this or about buying and selling a home in Albuquerque, please contact Team Sedoryk Properties today![...]
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