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Should You Use Your Home Equity

by Tucker Robbins


If you have a good amount of equity in your home, and would like to make some home improvements, or need money to help you pay for a child’s college tuition, you may be considering using the equity in your home to help pay for these things.  Let’s look at 
the difference between the two so you can make the right decision before you sign on the dotted line. 

 

Home Equity Loan 

  • - Basically speaking, a home equity loan is a second mortgage on your home, which is used as collateral by the lender.  

  • - The lender usually bases the loan amount on the difference between the homeowner's equity and the home's current market value.  Investopedia can help you determine how much equity you have in your home. 

  • - Most lenders allow homeowners to borrow up to 85% of the home’s total value, but only based on what portion you actually “own.” If you haven’t finished paying your original mortgage off, your equity will be less than someone who has paid off their home loan. 

  • - A home equity loan will be paid as a lump sum and comes with a fixed interest rate. You will know how much you must pay every month, in addition to your current mortgage payment. 

  • - Just like the initial purchase of the house, your credit needs to be in good standing, so have all your financial records in order when you meet with your lender. 

 

Home Equity Line of Credit (HELOC) 

  • - HELOC’s are a second mortgage as well, but instead of a lump sum, the homeowner typically has a five-to-ten-year “draw” period where they have access to the amount of the credit. 

  • - During the draw period, some lenders allow interest-only payments on the amount, while some require principle-plus-interest payments. Either way, pay more than the minimum so the principal can be paid off before the repayment period. 

  • - Once the draw period is over, repayment of what credit you have used will begin.  Keep in mind that these payments will be higher than the earlier amounts you’ve been paying. 

  • - Your line of credit can be used for anything, but if you’re thinking about an island getaway, or some other non-essential purchase, you are better off starting a savings fund.  If you can’t meet the payments once the draw period is over, you could lose your home to foreclosure.  

  • - In some cases, a lender will close your line of credit early if your circumstances change.  If you’re using that money to pay your child’s college tuition, you’ll no longer have access to it, creating financial strain. 

 

Before deciding to use either of these types of credit, find out if using the equity in your home is the right way to go.  If you’re already having a hard time paying the bills, a home equity loan or HELOC will only put your further in debt.  Contact a HUD-certified financial counselor to help you get your debt and other financial matters under control. 

 

Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins

Photo credit: washingtonpost.com

Protecting Yourself From Moving Scams

by Tucker Robbins


It appears
 every week, we’re reading about a new scam to be watchful for, and sadly, moving scams are out there.  Some news reports have shown interviews with families who have never found their belongings months after a move!  Protect yourself by keeping these tips in mind when hiring movers: 

 

  • - Reputable moving companies charge a fee based on weight, along with their base fee.  If you’ve talked with someone who has given you a basic price without coming to your home to estimate, or who doesn’t look at everything you have, they may throw an extra fee on your balance before they’ll move your items into the new home. 

  • - If the movers ask for a deposit, find another company.  Paying money up front takes away your control over having your belongings delivered where and when you want them.   

  • - Before you or the movers start packing, take a written inventory of your things, and take photos of fragile, expensive, or irreplaceable items. 

  • - Get a contract, go over it with a fine-tooth comb, and once it’s signed, make your own copy so you won’t have and edited version with added charges once it’s time to deliver to the new home. 

  • - If you’re moving to another state, movers are required to give you a booklet called “Your Rights and Responsibilities When You Move,” according to the Office of Inspector General. If the company you’re interested in doesn’t offer it to you, ask for it, and if they don’t have it, find another mover. 

  • - Once things are packed, number your boxes and list them on your inventory, and once you’re moved in, unpack or at least look in every single box.  Your time for filing damages is limited, and the sooner you get that done, the better. 

  • - Most mover’s insurance only covers damage to items that they packed.  If you insist on packing some things yourself, take them with you in your vehicle or rental. 

  • - Stumped on finding a reputable company?  Head over to the American Moving and Storage Association’s website, where it’s easier to find a mover in your area. 

 

Remember, your RealtorⓇ knows all about the ins and outs of moving and can help you locate a good company who will take care of your worldly goods and treat you right. 

 

Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins

Photo credit: fewmoves.com

For Sale By Owner for Sellers and Buyers

by Tucker Robbins


Some homeowners think they’ll be saving a ton of money by choosing to sell their home themselves, and unless they’re a real estate agent, that may be so.  If you are interested in a house that is offered for sale by the owner (FSBO) what’s the risk for you
?  Read on to find out why it’s not a good idea for seller or buyer: 

 

Sellers 

  • According to realtor.comⓇ, the listing agent and buyer’s agent split about 6% of the home’s sale price.  You’ll need to calculate how much it costs you to stage and photograph your home, get an MLS number, market the house, take time from work to schedule showings as well as host the showings, do all of the paperwork involved, and contact and pay attorneys and others who are involved in a home sale, and compare it to the commission you believe you’ll give up to an agent.   

  • - To be fair, the seller should offer a 3% commission to the buyer’s agent.  Otherwise, most agents won’t bring anyone who’s interested to your home for a showing. 

  • - Sellers are responsible for any mistakes that have occurred once the transaction is in motion.  If you don’t purchase errors and omissions insurance, you may end up paying out of pocket in court or settle out of court for those mistakes. 

  • - Pricing your home takes more than just an online search for sold homes in your area, and not only can you overprice your house, but you can lose thousands by underpricing. 

  • - Scammers abound and can cost you in many ways.  These criminals target FSBO homeowners, because the scammers are savvy enough to make their offer look legitimate.   

 

Buyers 

  • - Beware the owner’s asking price.  Since the majority of FSBO sellers don’t have the experience to set a good market value on their home, their quote will likely be too high. 

  • - Be prepared to wait some time to see the home.  Most homeowners have full-time jobs, and you’ll have to view the home on their time, with them as your host. 

  • - If a seller tells you their house is in perfect condition, and you can save money by not hiring an inspector, walk away.  Every house even brand-new houses should be inspected before changing hands. 

  • - Ask the seller what fees they plan on paying, and in the case that they ask to share the costs with you, it’s time to find another house. 

  • - Do your own research on the house, make sure the person you’ve talked with is the actual owner, and proceed with caution.  There are scams that involve an empty house, FSBO signs, and scammers who will take your money and run, because they aren’t the rightful owner. 

 

The best advice: hire a RealtorⓇ.  Not only are they the ones taking the risk in selling your home (or not), licensed real estate agents know everything you don’t know about selling and purchasing, devote all their working hours to home-buying, and can protect your investment as well as a buyer’s interests. 
 

Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins

Cutting the TV Cable!

by Tucker Robbins


With cable and satellite costs rising constantly, many Americans are finding streaming television the way to go, and old school television antennas are taking the place of satellite dishes on rooftops.  Are you thinking about cutting the cord?  Maybe these
 ideas can help you decide: 

 

Wherever there is high-speed internet, there is the ability to use any streaming device or smart tv.  Most are affordable and have a monthly subscription fee. 

 

  • - Smart tv’s come pre-loaded with different streaming service apps.  Many need subscriptions, and most offer a free trial period to help you determine if their service is right for you. 

  • - Devices that plug into televisions from different streaming companies can be purchased, and for small monthly fees, you can stream movies, and many television series.  PCMag has the most recent information on these plug-ins, as well as cost, features, and reviews of each. 

  • - Major satellite companies are finally offering streaming services at the fraction of the cost of their monthly fees, and you can cancel at any time without fear of being charged for cancelling a contract.  Similar to their satellite services, you choose what channel package that fits your viewing choices, as well as your budget. 

  • - Are you afraid you’ll miss your favorite sports contests if you cut the cord? Don’t worry--you can stream live sports events, and GroundedReason tells you how. 

 

Cancelling your cable or satellite service may have you worried that you won’t be able to watch the major networks.  If you live in a large area with nearby local stations, (within twenty miles), an indoor antenna will work fine.  But for better reception, as well as more channels, you’ll need an outdoor antenna.  Read on to learn how this old-fashioned idea is more modern than ever: 

 

  • - Indoor antennas can be places almost anywhere in your home for good reception, or use a flat one that can be mounted on or near a window, out of direct sunlight. 

  • - Outdoor antennas still look like something from outer space, but are smaller and come with wireless remotes so you can control the direction that you need it to be pointing to pick up different channels. 

  • TechHive offers some advice on choosing an outdoor antenna, as well as their top picks. 

  • Installing an outdoor antenna can be done by anyone with a few tools, who is comfortable with climbing a ladder to get to the roof, making sure the antenna is grounded, and who has a few hours to devote to the job.  Otherwise, a good handyman with antenna installation experience should be hired for the job. 

 

If saving money is on your agenda, then choosing to watch television and movies with streaming services and antenna tv is one way to put money back into your pocket.  Not only will you no longer be paying for channels you never watch, you will be in control of what you watch, and how much you’ll pay.


Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins.   

Photo credit: wgno.com

Displaying blog entries 1-4 of 4

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Photo of Tucker Robbins Real Estate
Tucker Robbins
Berkshire Hathaway HomeServices
3838 Kennett Pike
Wilmington DE 19807
(302) 777-7744 (direct)