Making Room in Your Rooms

The more things you have, the more you have to take care of.  And in this case, the more that you have to store that gets in the way of finding the things that you actually use.  Periodically, you need to go through every closet, drawer, cabinet and storage area to get rid of the things that are just taking up space in your home and your life.

Every item requires the decision to retain or remove.  Consider these questions as you examine each item:

• When was the last time you used it?
• Do you believe you’ll use it again?
• Is there a sentimental reason to keep it?

You have four options for the things that you’re not going to keep.  If you know someone who needs it or will appreciate it, you can give it to them.  You can sell it in a garage sale or on Craig’s List.  You can donate it to a charity and receive a tax deduction or you can discard it to the trash.

Start with your closet. If you haven’t worn something in five years, get rid of it.  Then, go through the things again and if you haven’t worn it in two years, ask yourself the real probability that you’ll wear it again.

Another way to do it is to move it from your active closet to another closet.  If a year goes by in the other closet, the next time you go through this exercise, those clothes are on their way out.

If the items taking up space are financial records and receipts, the solution may be to scan them and store them in the cloud.  There are plenty of sites that will offer you several gigabytes of free space and it may cost as little as $10 a month for 100 GB at Dropbox to get the additional space you need.  It will certainly be cheaper than the mini-storage building.

What's My House Worth?

 

If you aren't sure what your house is worth give me a call or email me and I would be happy to help you price your home.

As a Listing Agent I help homeowners price there house to the current market.

To do this we comparable the past 6 months in sales in your neighborhood.

 

For your FREE MARKET ANALYSIS

 

Call Me

CALL ME AT 240-483-7556

OR

EMAIL ME AT Coni@ConiOtto.com

 

and I would be happy to work with you to determine your homes worth.

 

www.facebook.com/ConiSells

 

www.Talk2Coni.com

 






Listing Agent and Buyers agent Coni Otto sells Real Estate in Laurel, MD, Burtonsville, MD, Columbia, MD Beltsville, MD, Silver Spring, MD and sourrounding areas... Call me today for a FREE Consultation... C: 240-483-7556 or O: 301-384-8700 http://www.Talk2Coni.com follow me on facebook http://www.facebook.com/ConiSells pinterest: http://www.pinterest.com/coniotto

New Listing at 506 Clays Lane, Laurel, MD

 

Listing Agent

Coni Otto

Lists another house in Laurel

 

This house needs total renovation, with 3 bedrooms, 2 bathrooms, in the heart of Laurel

 

If you are interested in purchasing this home please contact me on my cell phone at 240-483-7556 or email me at Coni@Coniotto.com

 

If your interested in selling your home please contact me for a Free Consultation for What your home is worth.

 

 

 

 

 

 

Listing Agent, Coni Otto

Just sold this home for $539,000

 

If you are interested in selling your home, please contact me anytime at 240-483-7556 or email me at Coni@ConiOtto.com

 

 

Rate/Payment Relationship

A ½% increase in interest rate may not sound like much but it is roughly equivalent to a 5% increase in price.  It becomes obvious when you compare the payments.

If you financed 100% of the cost of a $250,000 home at 4.5% interest for 30 years, the payment would be $1,266.71 per month.  If the mortgage rate went up to 5%, the payment would be $1,342.05.  If the home increased 5% in value, the $262,250 loan at the lower 4.5% rate would have payments of $1,330.05.

The two payments are close enough to justify the statement that a ½% change in interest is approximately equal to 5% change in price.

Each time interest rates go up, fewer people can qualify to buy a seller’s home.  The mortgage rules that went into effect this year require buyers to meet specific payment to income ratios.  As demand picks up for the seasonal market, most experts expect rates to increase.

Buyers will be doubly challenged in the current market because prices are rising (NAR reports 11% last year) along with the anticipated mortgage rates.  Buyers who wait will inevitably be paying more to live in the same home had they acted sooner.

Check out on how Interest Affects Price for a home in your price range.

Rent or Buy - the cost is going up

Whether you continue to rent or decide to buy a home, according to recent Zillow 2014 housing projections, the cost is going up.  Zillow projects home prices to increase nationally by 3%, mortgages to rise to 5% interest rate by the end of the year and rents to go up by 2.5% on average.

If it will cost a person more whether they rent or buy, the conclusion can be made that one way or the other, they will pay for the house they occupy.  The question will be whether they buy it for themselves or their landlord? Will they benefit from the equity build-up and the appreciation?

The following analysis looks at a $200,000 home that can be purchased with a 30 year FHA mortgage at 4.3%.  The assumption uses 3% appreciation and tenant currently paying $1,750 a month in rent.

The house payment, principal, interest, taxes and insurance would be about $1,609 a month.  However, once you consider the benefits of the principal reduction each month, the appreciation and the tax savings and the increased cost of maintenance, the net cost of housing is closer to $630 per month.

Even if you ignored the tax savings, the net cost of housing would only be $919.06 per month.  The tenant would pay considerably more to rent than to own the home.  Over time, the decision to buy a home could result in a considerable financial asset that the tenant will not benefit from.

To estimate your cost of housing, use the Rent vs. Own.

Rent or buy? The cost is going up!

Rent or Buy - the cost is going up

Whether you continue to rent or decide to buy a home, according to recent Zillow 2014 housing projections, the cost is going up.  Zillow projects home prices to increase nationally by 3%, mortgages to rise to %5 interest rate by the end of the year and rents to go up by 2.5% on average.

If it will cost a person more whether they rent or buy, the conclusion can be made that one way or the other, they will pay for the house they occupy.  The question will be whether they buy it for themselves or their landlord? Will they benefit from the equity build-up and the appreciation?

The following analysis looks at a $200,000 home that can be purchased with a 30 year FHA mortgage at 4.3%.  The assumption uses 3% appreciation and tenant currently paying $1,750 a month in rent.

The house payment, principal, interest, taxes and insurance would be about $1,609 a month.  However, once you consider the benefits of the principal reduction each month, the appreciation and the tax savings and the increased cost of maintenance, the net cost of housing is closer to $630 per month.

Even if you ignored the tax savings, the net cost of housing would only be $919.06 per month.  The tenant would pay considerably more to rent than to own the home.  Over time, the decision to buy a home could result in a considerable financial asset that the tenant will not benefit from.

To estimate your cost of housing, use the Rent vs. Own.

To purchase your next home call Coni Otto of Long and Foster - I would be happy to help you purchase your next home in the DC Metropolitan area. My office is in Burtonsville, MD but I travel all over Maryland and the District of Columbia. Call today for your free consultation, Cell: 240-483-7556 or Office: 301-384-8700 

When hiring a Real Estate Agent, look for a CRS Agent ** Certified Residential Specialist

You’ve heard it many times. “The purchase of a home is one of the most important decisions you’ll make in your lifetime.” In today’s market, selling a home is equally important—getting the most out of your investment.  So whether buying or selling, you want a specialist—a residential specialist. Someone who understands the complexities of the housing market, how to best position your interests, and someone who will get to know you and what you want from the transaction. You want success. You want a Certified Residential Specialist.

CRS Success

Certified Residential Specialist (CRS) agents have proven record of success—3X success, in fact. Compared to the average REALTOR®, CRS agents have been in the business nearly three times longer, have three times the number of annual transactions, and generate three times the amount of gross sales.

No Coincidence

There’s no coincidence when it comes to CRS success. CRS agents must meet stringent education and experience requirements. That’s why only 3% of REALTORS® are Certified Residential Specialists. CRS agents are dedicated professionals. They work to ensure success for their home-buying and selling clients by tapping into their superior training, exceptional professional referral network, and timely and cutting edge industry resources.

Make the Right Choice…Choose Success

CRS agents made the right choice when deciding to become a Certified Residential Specialist. Now it’s your turn. Make your first home-buying or selling decision be to work with a member of the Council of Certified Residential Specialists. I have been a CRS since 2010, choose success. I would love to work with you when buying or selling your home. 

Since 2010

Buyer Questionnaire from Coni Otto - Fill it out today and let's get started

Buyer Questionnaire 

If your looking to purchase a new home please fill out my buyer questionnaire, helps me start to know what your looking for and at what stage you are at in the process. Click on the link below and lets get started.

https://docs.google.com/forms/d/1F16RZ4xhmF5IzliM-LOZ08822iqBJx_NIsbf_we4-go/viewform

Find a Better Return

A certificate of deposit will generate a cash flow based on the interest rate that it pays which is the only way it generates a return for the investor.

An investment in a stock that doesn’t pay dividends, would need to be worth more than you paid for it to earn a profit.  On the other hand, a stock that paid dividends could make the investor a profit even if it sold for the same price that he paid for it.

Investors can profit four different ways with an investment in rental real estate.

1. Cash flows that result from having a surplus after collecting the rent and paying the expenses.

2. Equity build-up results from a portion of each monthly payment reducing the unpaid balance.

3. Tax benefits can result from the depreciation allowed on the property and the preferential long-term capital gains tax rate.

4. Appreciation benefits the investor when the value of the property increases.

The most conservative investors in real estate make decisions to purchase a rental property based on its ability to generate a cash flow and reduce the mortgage through normal amortization.  If the property can offer an acceptable rate of return compared to other available investments, the tax benefits and possible appreciation become an added bonus.

With increased rents and low mortgage rates for investors, rental property can offer significantly higher returns than many of the available alternatives.  Contact me for more information- coni.otto@gmail.com; you may be amazed about what is available in the market.