Eric Mitchell Real Estate

Is Home Flipping for You? While you may think that home flipping went the way of the dinosaurs after the real estate bust, flips actually rose 3.1 percent from 2015 to 2016, with gross profits averaging $62,624, according to research from ATTOM Data Solutions. Home flipping enjoyed a boost last year thanks to low inventory in many areas of the country and an infusion of foreign and domestic capital, says ATTOM, who reported that roughly 6 percent of condo and single-family home sales in 2016 were flips - the highest share in three years. Hot markets in California - like San Jose, San Diego, and San Francisco - along with cities such as Baltimore, Md., Boston, Mass., New York, N.Y. and Seattle, Wash. earned more than $100,000 in profits. The most flipping took place Florida and Tennessee, where it comprised 11.7 percent of all sales in Memphis, Tenn. Are you ready to get into the flipping game? Consider these pros and cons from The Balance: Pro:  Home flipping can be...

Figuring Out How Much Monthly Mortgage You Can Afford When applying for a home loan, it’s important to keep in mind how much monthly mortgage you can afford. Through the approval process, lenders will factor in your credit score, income and other financial data to determine the maximum loan amount you’re eligible for, and you may qualify for more than you can afford. Consider how much you should borrow to keep your monthly expenses and family budget manageable. To start that calculation, find an online mortgage calculator. It should show you the total costs of owning a home beyond the principal and interest of a mortgage. Other expenses can include private mortgage insurance, home insurance, property taxes and HOA fees. Once you have that total number, you can determine if it fits within your monthly budget. If not, then you may have to find a lower-priced house to buy. 28 percent, a good start The Mortgage Reform and Anti-Predatory Lending  Act  requires mortg...

How to Sell Your House on a Tight Deadline Selling a house could be somewhat stressful under normal circumstances, but if you’re facing a tight deadline, your stress level could go through the roof. For example, if you or your spouse needs to start a new job on a specific date, you’ll need to list your house, find a buyer, pack, close, and move out in time to get settled into your new home. If you need to sell your home fast, it’s critical to work closely with a real estate agent who has experience selling a bunch of comparable homes in the same area, and who knows how to do so quickly. Setting the Right Price To quickly attract a buyer, your house needs to be priced just right. If you list it too high, buyers may not bother to schedule a viewing. If you price it too low just to sell it fast, you may leave money on the table. Because your real estate agent will understand the local market and how your home compares to others in the area, the professional can help you set an a...

Boomers Share 5 Lessons on Retirement The unanimous advice from Baby Boomers when it comes to retirement? Expect the unexpected. A survey of 1,200 investors conducted by Capital Group, revealed the many facets of retirement, including what causes sticker shock, the factors that affect why people end up retiring earlier or later than they had planned, and what keeps Boomers up at night when it comes to financial security in retirement. Here are five of the biggest lessons Boomer investors have learned when it comes to saving for a secure retirement: Be in it for the long-term —   Don’t expect much from quick hits. Nine in 10 (92 percent) retired Boomer investors stress the importance of getting and staying invested in the market. When markets fluctuate, stay put; only three in 10 (32 percent) say they would adapt their strategies based on market conditions. Know your fees —  Being able to easily understand fees is crucial to your peace of mind and financial se...

How to Save Big on Mortgage Costs While a myriad of expenses go into buying and owning a home, the biggest nut for most is the mortgage payment. Here are five great tips from Bankrate for reducing mortgage costs—both before and after you purchase a home. First, get pre-approved for your mortgage, not just pre-qualified. Preapproval involves the lender doing their due diligence by pulling your credit report, verifying your income and taking other steps to determine your maximum loan amount. For a preapproval, the lender also commits to making the loan if you buy the home within a set amount of time. The lender doesn’t review your information for a prequalification and, therefore, there’s no guarantee the loan will be approved. If you’re looking to buy a newly built home, ask about builder incentives, such as discounted upgrades or reduced closing costs when you use an affiliated lender. According to Bankrate, instead of cutting the price of a new home, the homebuilder will som...

4 Exterior Renovations That Increase Your Home's Value If you're considering selling your home, you're likely looking into improvements that bring the highest return on your investment. Should you revamp the kitchen or the bathroom? Finally finish the flooring in the basement? According to a new study from the Appraisal Institute, the home improvement that offers the greatest bump in home value is actually the exterior. "The latest research shows that home renovations focused on the exterior of a property are most likely to generate a positive cost-to-value ratio," says Appraisal Institute President Stephen S. Wagner, MAI, SRA, AI-GRS. "However, not all home improvement projects offer a full return on investment – cost doesn't necessarily equal value." According to Remodeling magazine's most recent Cost vs. Value report, the projects with the highest expected return on investment are: Garage door replacements.  Garage door looking sh...

Kitchen Upgrades Worth Their Weight in Resale Value If a kitchen renovation is on your radar screen, and you plan to stay in your home long-term, you can figure on spending $20,000 or more – especially if you plan to rip out counters and re-configure your space. But if you’re thinking of upgrades that increase your home’s resale value, as well as your own enjoyment, there’s a lot you can do at minimal cost to bring your kitchen up to date. Designers advise putting your money into six specific areas to get the most bang for your update buck: Appliances  – Replace basic white or black appliances with stainless steel, which will not only update the look of your kitchen but will likely be more energy efficient. Cabinets  – It’s amazing what a coat of white paint will do to make your kitchen pop. But if tired, old cabinets are beyond painting, re-facing them will save you big bucks over replacing them. Hardware  – Replacing standard cabinet hardware with fres...

How to Get Extra Cash in Your Pocket No matter what you’re saving for, having some extra breathing room in your budget is important. Whether you’re putting money away for a down payment or a new car—or looking to build an emergency fund that can get you out of a financial jam—we could all use a little extra cash in our pocket. While saving a chunk of change can seem daunting if you’re just getting started, setting money aside can make life easier. Here are some simple ways to get some extra money for whatever your savings goal is: Get a side job.  Working 10 hours a week at a nearby coffee shop, department store or delivery service can earn you a few hundred dollars a month to get your emergency fund going. Or, it can help pay a child’s expenses at college—or make retiring in a few years easier. Walk dogs, drive for a ridesharing company or search for other jobs where you can set your own hours. Host a garage sale.  There are probably too many things around you...

Should You Use Home Equity for Retirement Expenses? Many Americans don’t save as much as they need for retirement and find themselves strapped for cash or working longer than they would’ve liked. If you haven’t spent decades investing in a 401(k) or individual retirement account (IRA), you may be able to use your home equity for retirement expenses, but you should be careful. Selling Your House Could Help You Cut Expenses or Invest for Retirement If you have significant equity, or if your mortgage is paid off, selling your house could allow you to access the equity you have built up. If you bought a smaller house, you might be able to pay cash. In addition to eliminating a mortgage payment, you’d likely spend less on utilities, property taxes and maintenance. If you decided to rent, your landlord would cover taxes and maintenance. Taxes on home sales generally don’t apply to the first $250,000 of capital gains or to the first $500,000 for a married couple filing jointly,...