Repairing Your Black Hills Home Before Listing

Often my clients, ready to sell their Black Hills home, call me to ask if they it will sell “as is” for the price they want. They are also armed with other questions such as, if not, what type of home improvements should be made, how much should they spend on repairs and can they put the repair cost in the asking price. I recently came across an article on The Huffington Post from Jack Guttentag, Professor of Finance at the Wharton School with some suggestions for would-be home sellers.

There are two common situations in which to make the fix before listing your home. The first is when there are many variables in determining the final cost of the repair. The best example of this is replacing a septic system where the final cost of the project is determined by many factors including the condition of the soil which can be beyond your control. If you have gotten the soil tested and it is good, the cost will be relatively low and the septic system will be worth replacing before listing your home.

The second situation is when you are sure the fix will be costly and you know the buyers may not be in a position to make the repair themselves or will opt for a home without extensive repairs needed. An experienced Realtor®, such as Integrity Realty, can help you determine how to set your selling price to help offset the cost of the repair.

You may want a pre-listing home inspection. Yes, this is typically done by the buyer during the transaction. However, if you are convinced there are multiple defects in the home and you are concerned about what may pop-up in the buyer inspection, having an inspection completed now will help you decide which repairs to complete before listing. It can also help in the negotiation process to arm yourself with the knowledge of what the repairs will cost, before the buyers start lowering the price.

The best way to make decisions about whether to fix it first or just sell “as is”, is to enlist the services of a real estate professional you can trust. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience in selling your Black Hills Home. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Get the Best Mortgage Option for your Black Hills Home

Finding a great home in the Black Hills is the easy part – finding the right mortgage that fits your needs may be a bit more complicated. However, with some good planning and the right Realtor®, it doesn’t need to be overwhelming.

Listed below are some tips to help you find the perfect mortgage for your needs:

Get Pre-approved Early
You may think you do not need to get pre-approved if you aren’t buying for the next six months, but in reality, now is the perfect time to start the pre-approval process. Not only will you find out just how much you can afford, you’ll also discover any potential hassles and be able to address them before you find your dream home. If you’re a couple, file paperwork for both of you to give the lender a complete financial picture.

Stay with Fixed Rate Mortgages
Regardless of the hype you hear about ARM’s, fixed-rate mortgages are still the way to go. Rates remain near the historic lows we’ve seen in the recent past, and you’ll lock in that rate for the life of the loan. Adjustable-rate mortgages may seem like a better option in the short-term, but after the low-rate tease, they will increase with changes in the economy.

Consider the Terms of the Mortgage Loan
Lenders like to push 30 and 40-year mortgages showing off their lower monthly payments. Well of course!  The longer the loan, the more interest they will be pocketing from you! You can keep yourself from paying tens of thousands of dollars in interest by shortening the term of the loan to a 15 or 20-year mortgage loan.

Say No to PMI
The simplest way to make your mortgage work for you is to plan to make a down payment of at least 20%. You’ll most likely be exempt from private mortgage insurance (PMI), which protects the lender in case you default and increases your monthly payments without decreasing the amount you owe. It can really add up over time. If your down payment is less than 20% on the home you’re considering, have a look at some less expensive options. The money you save now may help you customize that home over time, giving you just what you wanted a little further down the road.

Of course, the best way to make the most of your Black Hills home buying options is to retain the services of an experienced Realtor® like Integrity Realty. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Achieve Financial Success Before Buying Your First Hill City Home

If you have decided that buying a Hill City home is your next big purchase but feel that you have too much debt to buy a home, don’t despair. There is a way out of your burden of debt. Becoming and staying debt-free will put you in a better position to find the home of your dreams and be able to comfortably make your new mortgage payment. 

There are many financial coaches and systems out there to show you how to achieve success. Here are some steps to help get a handle on your debt, relaxing your financial stress and ways to streamline those extra costs that add up each month:                  

Say Goodbye to High Interest Credit ~ Paying your high interest credit cards off first will save you money in the long run. Take the time to give your credit card companies a call to find out if you may qualify for lower interest rates. If possible, consolidate all the balances onto a single card; ideally, the one with the lowest rate.

Keep Accounts Current and Credit Score Good ~ Check your credit score at least once a year to ensure your credit score is good. If you have a low score, you can start to repair it by paying your bills on time. If you already have balances that have gone to collections, call the debtor and make payment arrangements that fit into your budget. Some level of payment, no matter the amount, is better than nothing.

Don’t  be too quick to close those cards ~ Closing credit card accounts can damage your credit-to-debt ratio, which is one of the key factors in determining your credit score. Also, closing an account can erase any good payment history you may have had, decrease your available credit and increase your debt ratio.

Track your monthly spending ~ This one may be a real eye opener to you! Many of us don’t realize where our money goes each month. It’s important to stick to this and for one entire month, record every dollar you spend. Categorize your spending such as, “groceries”, “clothing”, “automobile”, and “dining out”. You may be pleasantly surprised that there is room to cut expenses. Your morning coffee fix at the local coffee shop or your impulse buys online can all be reduced once you admit there’s a problem!

For those inevitable expenses such as gift giving, buy small, inexpensive items you know you will need even if it’s months ahead. Buying things on clearance now to use at a later date can save you money.

Lower your bills by conserving energy ~ Lowering your monthly household bills by turning off lights in unoccupied rooms, washing clothes in cold water and wearing a sweatshirt if you get a chill instead of turning on the heater can add up yearly to a lot of money. Also, on yearly renewals of your car insurance, make sure you are paying the best possible rates available.

Cash & Carry ~ This may seem hard in today’s age, but stop charging and switch to “cash and carry”. It’s all too easy to whip out a credit or debit card to pay for something. Instead, only carry cash and keep those credit cards at home. You will find yourself being much more aware of what you’re spending when you have to part with that hard-earned cash.

Save and SAVE some more ~ So you have taken my advice from above, you’ve cut back on the splurges and impulse spending and saved on household bills by conserving. All this doesn’t do much good unless you now take that savings and SAVE IT! Decide how much you can save from each check, even if it’s just $50, and immediately put it into savings. Some banks will even do a transfer withdrawal bi-monthly from your checking to savings. Before you know it, you will have accumulated a nice bit of savings which you can invest or use to help pay off that debt.

Buying a Hill City home is one of the largest, but proudest, purchases you will ever make. Ensure that you are ready for that mortgage payment before you begin the buying process. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs.

Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Protect Your Black Hills Home from Severe Weather

Large Hail, high winds, thunderstorms, even a brief touch down by a tornado! In light of all this severe weather we’ve been having this summer, I felt compelled to write about preparing your Black Hills home to help prevent damage during the severe weather.

Your vegetable garden and trees aren’t the only things in danger from a sudden afternoon thunderstorm. According to the Insurance Information Institute, there was over $30 billion in U.S. property damage from 2009 through 2011 caused by thunderstorms.

Here are some tips to weatherproof your Black Hills property and home from severe weather:

1. Trim trees and remove loose or dead branches to keep these branches from breaking and ending up through a window.
2. Routinely inspect exterior caulking and wood for sign of wood rot. Recaulking and replacing storm damaged wood can save you from filing an insurance claim for repairs – and a hefty deductible.
3. Keep gutters and drains clear of leaves, twigs, and other debris. If the water cannot properly drain, it can back up causing costly repairs down the road.
4. Inspect your roof for loose shingles. Taking care of loose or damaged shingles before the storm can stop major leaks and damage inside your home.
5. Once you get that warning a storm is on its way, move all your trash cans, patio furniture, kids play equipment and other loose items into a shed or garage. If you have a pool, make sure the cover is securely fastened.

Understand that not all storm damage can be avoided. Once the storm passes, be sure to assess any property damage as soon as possible. Most damage can be repaired by you, but if there’s any major damage you will want to report it to your agent immediately.

One of the best tips is to be familiar with your homeowners insurance policy and which coverage is provided. Speak to your agent at least annually to make any necessary changes to your policy and know which severe weather situations are covered by your policy. Typically, standard homeowner insurance policies cover losses due to windstorm, hail, tornado and similar weather.

If you are looking to downsize your Rapid City home, upsize to accommodate your growing family or are ready to buy a Custer vacation property, I’d love to talk with you. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

A Thorough Home Inspection Can Save You Money on Your New Black Hills Home

Finding your new Black Hills home is an exciting time! However, it’s important to get a good home inspection before signing those closing papers to forgo any major issues that could arise in your new home.

Yes, a typical home inspection of the house’s structural and mechanical condition can bring up some minor or major issues. It’s the major issues that need to be considered and possible will put you back to the negotiating table to ask the seller to make repairs; or to walk away from the deal before you  are knee deep in trouble.    

Check out these red flags that may warrant further action from the seller:

Drainage Problems: If the drainage from the home is not properly graded or there are missing, clogged or damaged gutters, this can lead to wood rot, mold, or flooded basements. Be sure to check out further issues and the cause of the drainage problems before dismissing it as a minor issue. Replacing or repairing gutters is an easy fix but if problems have already set in, you will want to speak with the seller about repairing the issues depending on the damage.

Invasive Mold: Mold can grow wherever moisture collects, becoming a health threat to you and your family. If mold is found, an inspector can find and have mold tested to ensure that it is contained and not dangerous. Persistent mold issues can be signs of ventilation or more serious structural issues.

Unwanted Pests: You may not be the only one in love with your potential new home. Making sure the home is free from termites and other harmful pests is important to providing a safe and secure environment for your family and making sure your potential new home is not falling apart from inside the walls. An expert can help to eradicate them from the home, make sure the wood in the home is not compromised, and educate you on what needs to be done in order to prevent them from returning. Initial clean-up and treatment can be expensive though and may need to be negotiated in the sale of the home.

Roof Check: If the roof on the house is aged or made of material not conducive to harsh South Dakota winters, be prepared for a home inspector’s report. It may come with recommendations of major repair or possibly even replacing the roof. If this is a historic home, be aware that in the late 1930’s, asphalt strip shingles, coated with asbestos granules in a wide variety of colors, were the most popular roof covering.

Damaged Foundation: If a home inspector comes upon broken, crumbling or cracked points in the foundation, repair can be very extensive and very expensive. This can kill any transaction so take the home inspectors findings very seriously and look at all options before deciding to sign those papers.

Electrical Wiring: Your potential new home doesn’t have to be historic to have faulty wiring. Bad contractors or overzealous homeowners can be the culprit of overloaded circuits, improper grounding or unsuitable wiring that can be a major fire hazard. Checking out the main electrical panel can be the first tell-tale sign of underlying issues.

If you are ready to buy your new home in the Black Hills Area, I’d love to talk with you. Whether you are interested in homes in Hill City, Custer homes for sale, or Rapid City new homes, we can give you the most comprehensive listings that meet your criteria. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!