Featured Blog Posts | 1st Time Home Buyer ATL

What you need to prepare for your first house

4 Steps to Prepare for Homeownership

Buying a home is a big undertaking. From finding the right property and negotiating to sorting out the legal details and moving in, there are dozens of important steps along the way. And for many first-time buyers, it can seem overwhelming.

Fortunately, there are a few things you can do to make the process easier, even if you’re still in the planning phase. If you know buying a home is on the horizon, you’ll want to tackle these tasks before you get too far into your search:

1. Get pre-approved for your mortgage.
Research lenders, choose your mortgage company and apply for preapproval. This will give you an idea of what you can afford so we can point you toward homes in the right price range.

2. Give your budget a test run.
Once you have a rough estimate of what your monthly payment will be, give that budget a trial run. Are you still able to afford all your monthly bills and expenses? If not, let’s have a chat with your lender to see what the monthly payment could look like if we target a lower price point.

3. Start saving.
It’s never too early to start saving up for your down payment and closing costs. Cutting out unnecessary spending and setting up automatic deductions from your paychecks are two easy ways to give your savings a boost.

4. Create a wish list.
What do you want in your future home? Jot down your must-haves concerning size, location, and features. You can also include some deal breakers to help guide you in your search.

Are you looking to buy your first home soon? With the right help, the process will be less overwhelming. Reach out today for step-by-step guidance or a referral to a trusted lender in our area.

2019’s Trendiest Colors for Your Home

Colors have the ability to evoke emotions and change our attitudes. They can inspire and motivate us to try something new and bold. They can alter our moods and appetites, or even make a room feel small and cramped.

If you plan to redecorate a few rooms in the new year, the right color choices can make all the difference in the feeling you’re trying to achieve. Better yet, it’s one of the simplest and most affordable decor changes you can make. Not sure which colors to choose? Here are 2019’s best color palettes for home interiors, according to the Pantone Color Institute:

Meanderings
This palette is a mix of leisurely, rich shades like Island Green, Aurora Red, and Wild Orchid. Pulled from diverse cultures, they tell the story of world travel and are great for spaces where you’ll be entertaining guests.

Proximity
Proximity shows the connection between technology and nature and speaks to the challenges of modern life. These vivid blue-greens, green-blues, and silver-grays are perfect for rooms with abundant natural light.

Cravings
These culinary-inspired hues call to mind delicious tastes and exotic cuisines with colors like Cappuccino, Chili Pepper and Cayenne. This sensory experience is ideal for dining rooms or quiet spaces like reading nooks.

Cherish
These soothing pastels evoke calm and serenity and are the epitome of comfort. The soft, nostalgic floral tones would be great in a powder room or master bedroom.

Are you planning a new look for your home? Think of these palettes as a focused road map for capturing your desired style.

If you’d like some guidance for a more substantial home renovation, or you’re interested in finding a new home this year, please reach out today.

How to Create a Master Bedroom Retreat

Turn Your Bedroom Into a Sanctuary

Since we spend about a third of our lives sleeping, we should place high importance on the look and feel of the master bedroom. Follow these tips to transform one of the most important rooms of your home into a relaxing sanctuary.

What to Bring In

• Neutral Colors — Light, neutral hues like creams, taupes, grays, and blues provide a tranquil atmosphere. Use soft, coordinating colors for your bedding and walls.

• Soft Lighting — Overhead lighting can sometimes be harsh or too concentrated. Create a soothing mood with soft, balanced lighting throughout the room. Add lamps 1o brighten dark corners and illuminate each side of the bed.

• Window Treatments — A sense of privacy is essential to any sanctuary. Window treatments offer coverage from the outside world and can be a beautiful design element If outside lighting disrupts your sleep, consider blackout curtains.

What to Take Out

• Outdated Bedding — A relaxing bedroom begins with a comfortable bed. Most experts recommend replacing your mattress every eight years. Pillows should be replaced every two to three years or every six months if you have asthma or allergies.

• Excess Furniture — Get back to basics by paring down your bedroom to just the essentials. Most people require little more than a bed frame, a couple of matching nightstands and a dresser or chest of drawers. Anything more can quickly become clutter.

• Unnecessary Electronics — From more sleep to better family relationships, there are numerous benefits of having a technology-free bedroom. Reserve your master bedroom for rest and relaxation, and keep electronics out.

Makeover your master bedroom into a serene space you look forward to at the end of a long day. These tips can help you get started.

What if you want to keep the seller’s furniture?

When you buy a pre-owned home, do you know what will come with the house? Do you get to keep all the appliances, the art on the walls or the outdoor pizza oven on the patio?

Determining what will stay with the home and what will go with the previous owner will vary by seller and contract. Here’s how to determine what conveys with the home you’re considering, as well as tips to safeguard yourself when negotiating those extra items.

1. Check the listing. Start at square one and look at the original listing. Hopefully, the seller specified the items included in their home’s asking price.

2. Know the screwdriver rule. For the most part, if it takes a screwdriver to remove, it’s considered a part of the home. This includes shelves, light fixtures, and even curtain rods. But, if it’s hung on a nail, it’s removable and likely not included in the sale.

3. Negotiate with the seller. If there’s something you’re interested in that isn’t part of the listing, we can negotiate with the seller.

4. Talk to your lender. If the seller agrees to include big-ticket items, you’ll want to tell your mortgage lender. Depending on the type of loan you have, it could affect the appraisal or change the value of the property.

So, unless the seller specified the washer and dryer in the listing, you should assume they’re not included. As for the pizza oven? If it’s built into the patio, it’s probably already built into the listing price.

Have more questions about what’s included with a home? Get in touch today.

Is it time to replace your front door?

Your front door is one of the first things guests notice when visiting your home. In addition to providing security and protection, your front door can make a bold statement and reflect your personal style.

But whether or not your current front door matches your home’s interior and your taste, if you feel a draft, see any cracks or hear squeaky joints or scraping sounds, it may be time to replace it. Consider your options with some of the most common front door materials and features.

Materials

Wood: Though beautiful, solid wood doors are expensive and sensitive to the elements. Some modern wood doors come with steel cores to minimize warping and reduce cost.
Fiberglass: A durable and cost-effective option is a fiberglass composite door. Their foam cores are good insulators, and they can withstand harsh climates.
Steel: Strong but subject to dents, steel doors are the least expensive of the three. They have shorter lifespans and aren’t well-suited for extreme climates, but depending on their core, they can be energy efficient

Styles

There are multiple styles to choose from, including:

• Solid panel doors

• Arched doors

• Dutch or split doors

• Double doors

• Decorative doors with glass inserts

• Frosted glass doors with ornamental wrought iron overlaid for added security

You could even complement your front door with sidelights or a transom window while also letting in more outside light

Colors

The color of your front door should depend mostly on the exterior style and colors of your house, your personal taste and the type of door chosen. If your house is mostly neutral in color, don’t be afraid to go bold with your front door.

Use these tips to help make your front door an inviting entrance that not only offers protection from the elements but also reflects your personal style.

4 Tips for Competing With Cash Buyers

You can compete with all-cash offers. Here’s how.

In today’s hot market, bidding wars have become the norm. With many out-of-state buyers and property investors looking for a great deal, all-cash offers are also becoming common.

A cash offer can seem tempting for sellers since it offers the possibility of a faster closing. But despite this perk, cash buyers don’t always win. Many times, they make low offers or demand costly extras, both of which will mean lost cash for the seller.

Want to boost your chances of getting the home you want when competing with cash buyers? Here are some things to consider:

1. Include a preapproval letter. Get your financial documents in order, find a mortgage lender and get preapproved. Additionally, a note from your lender stating that you’re a well-qualified buyer can go a long way.

2. Work with a fast-moving lender. Average closing times vary significantly from lender to lender. Choosing one known for fast transactions shows sellers that you’re willing to move at their pace. Get in touch if you’d like a referral to a trusted lender.

3. Offer more earnest money or a bigger down payment. More money down means you’re serious about purchasing their home, which gives sellers more confidence in your offer.

4. Make an appropriate offer. We’ll discuss local comps to assess the home’s value, allowing you to make a solid bid right off the bat. Low offers are likely to be dismissed without a second glance.

Are you planning to purchase a new home soon? Get in touch today to discuss the right strategy for your home search.

Your GaPeach & YellowJacket Atlanta Realtor, Your referral is the greatest compliment.

Hire an Agent When Building a House

Many homebuyers think they don’t need to hire an agent when building a new home. After all, you’re buying directly from the builder and they already have contractors, lenders, and inspectors. Why should someone else be brought into the mix?

The truth is, buying any home without an agent can be a costly mistake. It can mean paying more than you should, missed opportunities for upgrades, contract errors that aren’t in your favor or a delayed closing.

Thinking of buying a new construction home? Here are three reasons to have an agent on your side before visiting the sales office:

1. Expert Negotiation: While their advertising would have you believe otherwise, builder’s prices aren’t always set in stone. Agents are skilled negotiators who can likely get the price dropped slightly or have a few upgrades thrown in.

2. Preferred Vendors: Your builder might have an affiliate mortgage lender or title company, but chances are they aren’t going to offer the best deal. It’s important to shop around, and what’s better than a vendor your agent already knows and trusts?

3. Guidance and Support: The homebuying process can be complicated, with lots of twists, turns, and steps along the way. When buying new construction, you also have design reviews, electrical work, and other construction needs. An agent can guide you through all of these, making sure your purchase stays on track, on time and on the budget from start to finish.

It’s important to note that while you may be working with an agent or representative from the builder, they may not have your best interests at heart. Enlisting your own trusted agent can give you an advocate from the very first meeting to closing day.

Are you interested in buying a new construction home? Get in touch today for more info about builders in the area.

Hottest Bathroom Trends for Any Budget

A bathroom remodel is one of the most rewarding projects you can undertake as a homeowner. When well-planned, it can improve your home’s aesthetics while adding convenience. And it usually offers a significant return when it comes time to sell.

Remodels don’t have to break the bank, either. With just a few hundred dollars and a little elbow grease, you can make a remarkable impact to your space — both in value and style.

Not sure where to start on your bathroom remodel? Here are some of today’s hottest trends.

Bold Metal Fixtures

Budget: Low

Forget those old handles, faucets, and drawer pulls that blend in. Today’s designers are making these small details stand out. Think bold brass, matte black, or even rose gold.

Modern Wallpaper

Budget: Low

Wallpaper is back — especially intricately illustrated designs and bright, bold patterns. It’s low cost, easy to DIY and makes an immediate impression.

Smart Tech

Budget: Low to Medium

Savvy consumers are using smart tech in their powder rooms for a touch of luxury. Some of the most popular features include auto filling bathtubs, voice-activated mirrors and sound systems, and LED-enhanced showerheads.

Exposed Concrete

Budget: Medium

Concrete floors, walls, counters, and sinks are popular with celebrity designers and new home builders. they offer a minimalistic, contemporary look that goes with any color palette.

Freestanding Tubs

Budget: Medium to High

Freestanding tubs may date to the Roman Empire but they’re making a stylish comeback. Tuck one into a corner or under a skylight to create a beautiful focal point to relax in.

If you’re interested in remodeling your home or if you want to learn more about the latest trends and how your home compares, get in touch for a local market report.

Tax Bill Explained

Tax Cuts & Jobs Act: How will the new tax laws affect you?

Part 1: The new brackets

Part 2: Deduction Changes

Part 3: The Big Winners

Disclaimer: The examples provided are for illustrative purposes. Individuals should consult a tax professional regarding their unique financial position

The Brackets:

In comparison to the old tax brackets, the new rates are slightly lower and the brackets are broader. In simple terms, the new tax brackets as a whole, will save most people some money, which is always great. What’s important to look at is where you were last year (what tax bracket) and if this year was a mirror image, what would happen under the tax cuts and jobs act.

For example, if you were filing single and earned $157,000 under the new tax brackets, you would pay 24% in taxes, or $37,680, giving you a net of $119,200. Last year you would have paid 28%, ($43,960) netting you $113,040. So now in 2018, you have $6,160 more in your pocket. That’s a new car payment, a vacation or money you can put into a retirement account, all good stuff that will trigger spending and/or investing which boosts the overall economy. However, by making just 3,000 more, $160,000, you fall into the 32% tax bracket in 2018 and were still in the 28% bracket in 2017. So by making $3,000 more, you only bring home $108,800 in 2018 ($160,000 – $51,200 )versus $111,200 in 2017. In this case, you took a 4% hit in net income ( 2017 income on 160k= $111,200 vs. 2018: 108,800). In that scenario, you would earn $2,400 less under the new tax brackets.

Here’s another quick example:

Johnny made $40,000 as a single tax payer in 2017. His tax rate was 25%, paying $5,739 in taxes. Under the 2018 tax bracket, Johnny is now only paying $4,740 in taxes (22%), giving him an extra $999 to save or spend. That’s just on the tax bracket side of things as Johnny will also benefit from the increase in standard deductions.

As you can see in the diagram, they have doubled the standard deductions and eliminated the personal exemptions. Being that 70% of American’s don’t itemize their deductions, this is also an added savings for most.

Deductions

Tax brackets, rates and credits play a large role in how much a taxpayer will pay, but the amount of taxable income plays an EVEN BIGGER role. So here’s a very simple reference for my readers to know and understand about the new law:

Personal and dependent exemptions are eliminated. However, child tax credits have increased through 2025. The TCJA increases the maximum child tax credit from $1,000 to $2,000 per child. The refundable portion of the credit increases from $1,000 to $1,400. So taxpayers who don’t owe tax can still get a credit of up to $1,400. The higher child tax credit will be available for qualifying children under the age of 17 (as under current law). In addition, the TCJA allows a new $500 credit for dependents who do not qualify for the child tax credit. These are children who are too old for the child tax credit, or non-child dependents. No social security number is required, you can cliam the credit using an Individual Tax Identification Number (ITIN) or and Adoption Tax Identification Number (ATIN).
Standard Deductions Increase
1. $12,000 (single)
2. $18,000 (head of household)
3. $24,000 (married filing jointly)

This means you don’t have to file a schedule A. That said, you may want to continue to track your expenses so you know whether or or not the standard deduction or itemized deduction process favors you more.

Changes to Itemized Deductions:

Fully eliminated:

Employee business expenses
Tax preparation fees
Investment interest expenses
Personal casualty and theft losses (with the exception of federally declared disasters)
Moving expenses (minus US military required relocation)
Alimony- no longer deductible AND the spouse receiving alimony does not have to report alimony as income

Limitations put on old deductions: it’s very evident, one is encouraged to use the new standard deductions offered vs itemization. If you’re one of the 30% of American’s that used itemized deductions, you need to know what has been modified or eliminated.

Limited:

SALT Tax (state and local tax): still deductible but only up to a combined total limit of $10,000 ($5,000 if MFS). This can make a difference in high taxed states like New York or California
Mortgage Interest
- Limited to interest paid on up to a $750,000 mortgage ($375,000 if MFS) on a mortgage taken after 12/14/2017
- Home Equity Loans- The final bill repeals the deduction for interest paid on home equity debt through 12/31/25. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.

If you’ve taken out a mortgage prior to 12/15/2017, you can deduct mortgage interest up to a $1MM mortgage moving forward. That applies if you refinanced your mortgage prior to 12/15/2017 ($550k if MFS)

Modifications

Medical expenses- still deductible to the extent they exceed 7.5% of AGI (adjusted gross income)
Charitable contributions: These have expanded. You may contribute up to 60% of your AGI, up 10% from the former 50% number

Unchanged

IRA deduction
Health Savings Account deduction
Student loan interest
Educator expense deduction ($250 for unreimbursed classroom supplies)
Deductions for the self-employed (self-employment tax, health insurance, qualified retirement contributions etc)

Notables:

You can continue to claim the American Opportunity Credit of up to $2,500 per year for the first 4 years of college education. In addition, you can still earn the lifetime learning credit of up to $2,000 per year for education expenses
529 plans may now be used for K-12 expenses- plans can distribute up to $10,000 each year for tuition related to public or private education
The Obama administration’s health care penalty for those not enrolled in a health care plan has been eliminated

The Biggest Winners of the Tax Cuts & Jobs Act: Businesses

There are two primary types of businesses:

Corporations- C-Corps. These businesses pay corporate tax using the corporate tax brackets. They pay dividends to their shareholders who are then taxed on their gains
Pass Through entities: LLC’s, Sole Proprietors, S-Corps and Partnerships. In this business structure, the business does not pay taxes. The profits of these businesses are “passed through” to the owner(s) whom are taxed on the individual tax bracket schedule.

Corporations “C-Corps”:

With the intent to create more jobs and keep American businesses from moving offshore, C-Corps will go from paying 35% to 21% in corporate taxes. Truly the top win in the new bill, corporations are encouraged to deliver more jobs, keep their businesses on US soil and subsequently a greater overall tax base for this country. One set of beliefs is that this needed to be done to grow America; that doing business in America was costing many American businesses millions and in some cases, billions of dollars; vs heading overseas and employing foreign employees while paying substantially less in taxes. The flip side argument is that it’s merely taking away entitlement programs and supplying the top 1% with a substantial boost in income and shareholder wealth. The fact, which is what I present to my readers is from a historical perspective, growth in American business means growth to main street USA. Growth in Main-street USA is undeniably critical to balance our economy.

2n Place Prize: Pass-Through Business Owners: pass-through businesses will receive a 20% deduction on their income. So if you are Suzie Creamcheese LLC and you, after all of your legal business expenses, show a $100,000 profit to your business, you now get an additional 20% tax savings; taking your adjusted income to $80,000.00. In addition, at $80,000 income are also saving an additional 3% on the newly introduced tax brackets. If you’re a small business owner, I encourage you to click on the link below in addition to having a clear meeting with your accountant. You should learn some of the particulars and restrictions as certain industries have limitations to this new law, it’s not a blanket 20% for all small business owners:

https://www.kiplinger.com/article/taxes/T049-C032-S014-small-business-owners-win-big-with-new-tax-law.html

Summary:

Overall we will be paying less in taxes. This should in turn generate spending and the opportunity for businesses to employ more people, which historically equates to a stable economy. These changes as it relates to the real estate and mortgage industries should end in:

Increased prices on homes
More inventory
Higher interest rates

To my readers that are considering buying, my recommendation is to do it sooner than later. For my sellers, know the market value of your home, contact me if you don’t know it and I will help you. Your home is a tremendous asset and being informed always provides you with the knowledge you’ll need to make educated decisions. Thank you very much for reading my blog; I hope you find value in my research.

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