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2420 L & N Drive
Huntsville, AL 35801
Direct - (256) 508-0211
Toll Free - 800-803-0053
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January 9, 2009

How Huntsville Home Buyers Save Their Down Payments

Filed under: Buyers, Financial Center, Huntsville AL Real Estate — Huntsville Real Estate Expert Mike Manosky

How Huntsville Home Buyers Save Their Down Payments

This is a great time to think about buying a Huntsville home. Huntsville home prices have dropped and interest rates are at all time lows. The biggest hurdle for many Huntsville home buyers is saving money for a down payment. Here are 25 things to do on a regular basis to save money:

  1. Make it automatic. Before you see your paycheck, have a percentage of it automatically deposited into your 401(k) and savings.
  2. Keep minimum funds in checking account. Transfer extra funds into your savings account where it will earn more interest than in our checking account.
  3. Don’t pay banking fees! Use your bank’s free bill pay, automatic deposits, free checks, and free reimbursements for all ATM fees.
  4. Use rewards credit cards. Use a credit card offering cash back on every purchase and pay the card off each month to eliminate interest fees.
  5. Actively search out deals. It never hurts to try and find a better deal, or request a better deal from your service providers.
  6. Use a programmable thermostat. Programmable thermostats save you an estimated 10-20% on your heating and cooling bills.
  7. Use ceiling fans, floor fans, and space heaters. Turn your thermostat down, close the doors to unused rooms and use a space heater for heat. Use ceiling fans and floor fans to assist with heating and cooling - depending on the season of course!
  8. Install CFLs to save energy. Compact fluorescent lights use about a quarter of the electricity of normal incandescent bulbs. They also need replaced much less often.
  9. Drive smoothly. Accelerate smoothly and at a reasonable rate, and coast to a stop as often as possible and use cruise control on the highway.
  10. Plan and research major purchases. Take the time to research the best deals when planning a vacation.
  11. Buy quality products. Quality items may cost more up front, but they last longer and generally provide better results than cheaper, inferior products. Examples of items you should buy higher quality - furniture, clothes and shoes, vehicles, and other items that will see a lot of use.
  12. Buy generic where applicable. You can save a lot of money on generic items for which the brand name product is essentially the same as the store brand. Food and medicines come to mind as items where generic products are good deals.
  13. Use coupons and rebates. Use coupons for oil changes, groceries, books, on-line purchases, and just about anything else we can find.
  14. Use store rewards cards. Many grocery stores have their own ‘reward cards’ saving you money each time your shop. If you are a senior, shop on designated senior citizen discount days.
  15. Cook at home.  Limit restaurant dining to once a month.
  16. Eat leftovers. You can save a minimum of $20 a week by bringing your lunch to work. It is also healthier. On the rare occasion you go out to lunch with coworkers, you’ll enjoy it more.
  17. Use the library. Borrow books and movies from the library. New movie releases aren’t always available, but there are usually plenty of classics from the 40s and 50s.
  18. Use parks. They are great for hiking and outdoor recreation.
  19. Take care of things. Treat the tings you own with respect and take good care of them. This includes doing things such as cleaning the house, washing your cars, and polishing shoes. Things last much longer when you take good care of them.
  20. Buy insurance. Health insurance, home owner’s insurance, auto insurance, and other types of insurance are designed to save you money! Sure, you may end up paying premiums for years and never file a claim, but in the event you need to file a claim, your premium will likely be small compared to what you would have had to pay. You’ll be very happy if you ever need it!
  21. Bundle cable and internet. You can save a lot of money by bundling these together rather than purchasing the separately. You can save more if you bundle your phone as well.
  22. Use cell phones - skip the landline. Depending on your plan, it can be a real cost saving.
  23. Cancel subscriptions. Almost everything you want can be found on-line for free.
  24. Home improvement. Try making your own repairs before calling a professional.
  25. Avoid debt. If you don’t have the money for it, don’t buy it.

Saving money and watching your savings account grow is a rewarding experience…especially if it can help you purchase a Huntsville home of your own.

Learn more about buying a home at HuntsvilleHomesOnline.com or give me a call for more personal service.

Search all Huntsville homes for sale.

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November 11, 2008

How Huntsville Home Buyers Position Themselves To Make Offers

Filed under: Buyers, Huntsville AL Real Estate — Huntsville Real Estate Expert Mike Manosky

How Huntsville Home Buyers Position Themselves To Make Offers

huntsville home buyerThe current Huntsville real estate market is challenging for both buyers and sellers. Many sellers have not accepted the fact that their home has decreased in value and are trying to sell at peak 2006 prices. At the same time, buyers want to make sure they don’t overpay, fearing prices will continue to drop even more.

Of course, there are exceptions. Well priced homes in desirable neighborhoods or foreclosed properties selling at ‘yard sale’ prices may generate multiple offers. But all in all, it is a buyer’s market.

So how do Huntsville home buyers prepare to make an offer and put themselves in the best negotiating position? Here are some suggestions made by Dian Hymer in a recent Inman news article:

1. Before you make an offer on a listing that’s priced over market, try to find out as much as possible about the sellers’ motivation, and if there’s any flexibility in their price. If the seller owes more than the house is currently worth, they may not have any negotiating room. They may want to sell the house, but really can’t sell at today’s prices.  A lot of time and emotional energy goes into making an offer. Save your efforts for listings where the sellers are motivated. That is, they don’t just want to sell — they need to sell.

Some sellers want to test the waters at a price that’s higher than the market will support. They usually feel that someone will appreciate the added value their home offers and pay more for it. However, these sellers will often negotiate with a legitimate buyer who offers a price that is less than the list price.

2. Make sure that your financing is in order and that you are able to show the seller that you are capable of closing the deal. The fallout ratio is high in the current market. Many of these transactions fail to close because the buyers couldn’t get financing.

It’s always a good idea to be preapproved for the financing you’ll need to buy a home before you make an offer. Preapproval involves making a formal loan application, having your credit checked, as well as verifying your funds for down payment and closing costs, and validating your income and employment. Lenders often want to know that you have enough surplus cash to make house payments (mortgage, property taxes and insurance) for two to three months.

3. Buyers who make an initial low offer and who aren’t in competition should make as clean an offer as possible. This means omitting anything that’s not necessary. However, you should include contingencies for loan and appraisal approval and an inspection contingency.

It’s a good idea to include a copy of your preapproval letter with your offer. If you are approved for a higher price than you are offering, ask your lender or mortgage broker to issue a preapproval letter for the price you’re offering.

4. Be prepared to negotiate. It may take several rounds of counter-offering back and forth to reach a mutually acceptable price.

Are you thinking about buying a Huntsville home? We are glad to help you with your preapproval process, show you homes with motivated sellers and craft an offer putting you in the best possible light with the seller and results in getting you the best possible deal.

Search all Huntsville homes for sale.

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October 21, 2008

Should I Buy Huntsville Real Estate In These Troubling Economic Times?

Filed under: Buyers, Financial Center, Huntsville AL Real Estate, Mortgage Information — Huntsville Real Estate Expert Mike Manosky

Should I Buy Huntsville Real Estate In These Troubling Economic Times?

huntsville real estateThe Huntsville real estate housing market has never been better for many potential buyers. In fact, more often than not, it is less expensive to own your own home rather than rent. 

The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area. 

With all the news these days concerning the economic crunch and these tumultuous economic times, you might think I’m crazy saying it is a good time to buy a Huntsville home. Of course, home buyers with strong credit are best positioned to take advantage of today’s opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved. 

For example, a home buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month. 

FHA loans, VA loans and government backed first-time buyer loans are all available to qualified buyers. With the current low interest rates and affordable home prices, it is a great time to buy your Huntsville home. 

It is also a time to keep in mind that buying Huntsville real estate is a long term investment…and an investment you and your family can enjoy for many years!

Learn more about Huntsville real estate at HuntsvilleHomesOnline.com.

Search all Huntsville real estate and homes for sale.

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October 10, 2008

To Fix Or Not To Fix When Selling Your Huntsville Home

Filed under: Huntsville AL Real Estate, Sellers — Huntsville Real Estate Expert Mike Manosky

To Fix or Not To Fix When Selling Your Huntsville Home

That is the question all Huntsville home owners should ask themselves when they consider selling their home.

huntsvilleThe first item on the fix-it list: clear the clutter! If your closets, attic, basement, garage, and other storage areas appear neat, half-full and organized, your house will seem to have more storage space. To accomplish the clutter - clearing task, empty the house, hold a garage sale, and use the profits to help offset the next set of fix-it priorities.

Check your house for “curb appeal”. The exterior is the first impression a prospective buyer has of your home. Make it as inviting as you can. Think of it as outside decorating. Clean (or paint, if necessary) the exterior, re-sod brown spots and crab grass, mow the lawn, pull weeds, remove dead trees or plants, and trim the shrubs.

Flowers give warmth and personality to a home. Plant them tastefully in pots or beds at the entrance, on decks and around patios. If it isn’t flower season, at least clean the beds, remove the dead leaves, and cover the ground with fresh wood chips or other clean looking mulch.

If you have a limited budget, make the most of it. Put the money where it is most obviously needed and the return the greatest and most visible.

Fix Little Things

Take care of the little obvious things: fix leaking faucets, stop running toilets, replace broken windows, kill pet or mildew odors, repair holes in screens, remove mildew from tile, and re-caulk around bathtubs and sinks. Walk around; look at your house with a prospective buyer’s eyes. Small things tell buyers whether or not a house has been maintained. 

Paint it! 

A coat of light-colored, neutral paint-white or off-white-will make your home’s interior look crisper, cleaner, and also larger. Many buyers may not be able to imagine their sofa in your decor. White interiors work for the greatest number of people without their having to redecorate immediately. If you just moved, would you want to redo every room?

Your Carpeting

If the carpet is in reasonable condition, have it shampooed. If it is worn, threadbare or a non-neutral color, consider replacing it with beige or gray. You do not need to purchase the best quality money can buy. Lifetime wear is not required. You want it to look great now. Neutral walls and carpet do not offend anyone. Almost all furnishings look good with them. Rental property managers know this and have been doing it for years.

Professional Inspection

Consider having your house inspected by qualified inspector. Safety- and health-related items, such as radon and electrical problems could kill a sale if not properly attended to. It is much better to fix these items on your own time schedule and financial terms than hurriedly during a contract negotiation. Roof leaks, even if inactive, are also deal breakers.

What else do you fix amongst the inspector’s flagged items? Unless you can realistically get money back, fix only the problems with major systems. You want to keep your home’s selling price as low as possible to increase the pool of buyers.

Do not undertake any major remodeling in preparation for sale. It places more limitations on the size of your buyer pool. Tastes vary, and some people will dislike the results of your efforts. You will have to raise your selling price to reflect your fix-up investment, thereby pricing your home out of the range of other potential buyers.

A neutral color scheme in a house that sparkles brings you the highest return in the shortest time. 

Learn more about Huntsville real estate at MoveToHuntsville.com or give us a call, 256-508-0211.

Search all Huntsville homes for sale.

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October 3, 2008

Fees Reduced on Huntsville Home Loans

Filed under: Buyers, Financial Center, Huntsville AL Real Estate, Loan Programs, Mortgage Information — Huntsville Real Estate Expert Mike Manosky

Fannie Mae and Freddie Mac both announced they will not impose the loan fee increase scheduled to go into effect next month. Fees were to have increased from .25% to .5%, making it even more difficult for Huntsville home buyers. The biggest obstacle many ­­­­­­­­­­­­­­­­Huntsville home buyers face is the necessary cash needed for a down payment and closing costs.

Both companies, now controlled by the federal government, had decided to increase fees to boost their finances during difficult times.

Freddie Mac, however, will raise fees next year for riskier loan products, including mortgages that allow interest-only payments for the first few years. Freddie also will require higher credit scores for “piggyback” loans that allow borrowers to make smaller down payments by taking out two mortgages.

Taken together, Freddie Mac said the changes would provide “some relief from the challenges in the current market environment,” but added that it is following lending practices “that are prudent and largely applicable in all market conditions.”

To learn more about buying a Huntsville home, visit MoveToHuntsville.com.

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September 15, 2008

Huntsville Home Buyers Can Be Choosers

Filed under: Buyers, Huntsville AL Real Estate, Real Estate News — Huntsville Real Estate Expert Mike Manosky

Buying a Huntsville home is one of the biggest investments people make, and the process usually begins with choosing a real estate agent. 

home buyerAccording to the 2007 NAR Profile of Home Buyers and Sellers, 79 percent of recent buyers used a real estate professional, while only 7 percent bought the house directly from the owner.

When choosing an agent, 43 percent of all buyers relied on friends, relatives and neighbors for referrals; that percentage jumped to 54 percent among first-time buyers. 

Nearly eight of 10 first-time buyers said the most important benefit of a real estate agent was helping them understand the process. Agents also help buyers become more educated consumers - almost half of all buyers said their agent pointed out unnoticed features/faults with properties they were considering. 

The relationship between a Huntsville home buyer and his or her buyer’s agent must be based on trust, mutual goals and understanding. The buyer entrusts the buyer’s agent with putting his or her interests first and foremost. Here are some things to consider when choosing a Huntsville real estate agent, compliments of LendingTree.com.

Some things to look for in a Huntsville buyer’s agent

  • An understanding of your needs.
  • A willingness to work with you until your needs are fulfilled.
  • Professionalism.
  • A familiarity with the neighborhoods you like.
  • Experience with the price range in which you have an interest.
  • Professional designations: for example, GRI, Graduate of the REALTORS® Institute or CRS, Certified
  • Residential Specialist.
  • Strong references from previous buyers.

Some questions to ask a prospective Huntsville buyer’s agent

  • How long have you been in real estate?
  • Are you a full-time buyer’s agent?
  • Are you familiar with the area in which we want to look?
  • How many home sales did you participate in last year?
  • What is the average sold price of the homes you sold last year.
  • Do you normally work with sellers or buyers?
  • How many buyers are you presently working with? How many sellers? Where do you feel your strengths lie?
  • What three buyers that you have worked with can you give me as references?
  • Will you handle the appraisal, inspection and insurance?
  • Will you be present at closing?  

If you are a Huntsville home buyer and looking for a real estate professional to represent you, give us a call, 256-508-0211. We understand how important buying a home is and are glad to spend as much time interviewing with you as you need.

Learn more about Huntsville homes and the home buying process on our website, MoveToHuntsville.com.

Search all Huntsville homes for sale.

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September 11, 2008

When Its Wise To Downsize Your Huntsville Home

Filed under: Huntsville AL Real Estate, Real Estate News, Relocation & Huntsville Information, Sellers — Huntsville Real Estate Expert Mike Manosky

I wanted to follow up our blog post, Is Downsizing Your Huntsville Home For You?  with a reprint on a Money Magazine article from CNNMoney.com, When It’s Wise to Downsize. The article discusses the pro and cons of downsizing, pricing in today’s market, carrying costs involved and lesions learned from other empty nesters. 

Here is the article in its entirety (but don’t hesitate to visit the link to the original article to see the interesting graphs): 

“(Money Magazine) — Last year Rick and Suzanne Pepin moved from the four-bedroom 3,400-square-foot house in Minneapolis where they lived with their three (now grown) kids to a luxury condo that’s a third smaller and offers only a Murphy bed for guests. Still, the couple couldn’t be happier.

“The location of our old home dictated that we drive to the grocery store, pharmacy and cleaners,” says Suzanne, 57, a retired lawyer. Their new digs are across the street from Whole Foods and within easy walking distance of other stores and restaurants. They love the low-maintenance life.

“We have no worries about upkeep. No worries about lawn care. No worries about snow removal,” says Rick, 68, also an attorney.

Maybe you too have caught the bug. After decades of hankering after the most expensive and enormous house you could afford, owning a smaller place is starting to look appealing.

Imagine the possibilities! You could move into a posh new condo with everything from a fitness center to a concierge - or into an energy-efficient little cabin on a lake Your commute could be shorter, giving you time in the evening to do something more than watch TV like a zombie.

And, maybe, just maybe, downsizing could save you some dough. Chuck Petitti, a Boston-area real estate agent, says many of his clients right now are empty-nesters who realize, “Hey, I could be traveling or doing something else with all the money I am paying for utilities and property tax on this big house.”

If that’s what you’re thinking, you’re by no means alone. A 2006 survey by Hanley Wood, a market research firm, found that 58% of affluent baby boomers say they are very likely or somewhat likely to move to a smaller home within the next 10 to 15 years.

And therein lies a big fat problem. With millions of boomers competing for smaller homes, you may find it hard to catch a break on price. Even though the downsizing trend is in its infancy, over the past five years smaller homes (under 1,200 square feet) have shown a greater rise in value than larger houses (over 3,000 square feet) - 5.2% a year as opposed to 3.5%, according to Zillow.com.

On top of that, you have to get money out of your old house - not an easy proposition with prices in the 20 largest metropolitan areas down 18.4% from their July 2006 peak, according to the S&P/Case-Shiller index. As of July there was an 11-month backlog of existing homes on the market nationwide. The happily downsized Pepins have yet to receive an offer close to the $1.25 million asking price on their old home.

What’s more, smaller isn’t necessarily cheaper. Depending on where you move, you may face carrying costs that are as high as or even higher than you pay now.

The trade-offs are complicated. You may cut gasoline costs by moving closer to your job in the city and using public transportation, but those savings could be eaten up by costlier car insurance. You could move to a small condo nearby but be unprepared for the dues and fees that condo living entails.

So you have to plan carefully, sizing up the finances underlying both new and old houses, or the savings you’re counting on could be skimpier than you anticipate.

Get the prices right

To start you need a clear-eyed assessment of the two markets that make up your downsizing, the one in which you’re selling and the one in which you plan to buy. A real estate agent can give you an idea of your home’s value, but you should also check how much houses in your area are selling for on Zillow.com, which lists sales prices of comparable houses.

Hanging on to past high prices only delays a sale. Dodi Christiano, 55, a psychotherapist, and her husband, Paul Waldrop, 56, a producer of TV public-service announcements, put a price of $850,000 on their 4,000-square-foot Fairfax, Va. colonial last year - about what nearby homes had fetched a couple of years earlier.

For six months they received nary a nibble. Finally, after slashing the price by more than $100,000, they were able to sell. “We had to face the fact that not everybody loved our home as much as we did,” says Christiano.

You can’t assume that a home’s price is simply a function of its square footage. The national median sales price for condominiums, which are typically smaller than single-family houses, is now 5% higher than that for houses, according to the National Association of Realtors.

If you hope to reduce costs dramatically, you may have to buy your new place in another town or state. Think Decatur, Ill. or Mishawaka, Ind., where single-family houses cost just $79,400 and $80,900, respectively.

George Pollock, 67, a retired engineer, and his wife Marian, 66, wanted to get rid of the mortgage on their house in suburban San Francisco. Pollock worried that if he died before his wife, she wouldn’t be able to meet mortgage payments with the 50% portion of his pension that she would receive.

No matter how much they shopped, however, they couldn’t find a place they could afford in the Bay Area (median price: $701,700) without a mortgage. So they moved to much less pricey Sacramento (median price: $258,500), where their two grown children live. There they bought a 1,400-square-foot home for $380,000, leaving them with nearly $250,000 extra.

Says Pollock: “My wife is closer to the kids, and I know she has long-term financial security.”

Downsize carrying costs

Buying without taking out a mortgage would certainly reduce expenses. At the very least you should look for a house whose price is low enough to allow you to buy with a mortgage that’s smaller than what you have now.

If you’re at or near retirement, taking on a new 30-year mortgage is overwhelming. You may be long gone before you can repay. Consider one with a 15-year maturity; the payments may look daunting, but you will save money. The interest rate is only about 0.10% lower than that of a 30-year mortgage, but over the life of the loan, you would save about $141,000 in interest.

Another option: Take out a traditional 30-year fixed-rate loan that does not charge a prepayment penalty. Then just send in extra payments each month as if you were on a 15-year repayment plan. You’ll be saving by paying the mortgage off quicker, but if you run into unforeseen financial trouble, you’ll be able to make lower payments.

Runzheimer International, a management consulting firm, estimates average annual savings of $1,300 in utility costs and $2,600 in property taxes from down-sizing from a 2,800-square-foot house to one with 1,800 square feet.

But the devil is in the downsizing details: You need to crunch the numbers to calculate your net savings. Start by totting up the annual cost for ongoing expenses such as property tax, utilities, lawn service and snow removal. As you shop for a new place, you should be gathering comparable information.

Other potential cost savings: If you move from suburb to city, you may be able to ditch one of your cars and its trailing expenses - insurance, financing, taxes, maintenance and fuel. If you gave up your 2006 Honda Accord, for example, you’d save nearly $26,000 in the first five years, according to Edmunds.com.

On the other hand, some costs could rise. In a condo or a house that is part of a homeowners association, there are monthly maintenance fees, and every so often you’ll be on the hook for assessments to replace the roof or carpet the lobby.

Before buying, ask how much fees have risen over the past five years and whether new assessments are in the offing. If your new place is appreciably smaller, make room in the budget for new purchases to replace an oversize sectional or a king-size bed that won’t fit.

Sell before you buy

Tempting as a pristine new condo looks next to your drafty old five-bedroom Victorian, don’t plop down earnest money until you have a buyer with solid financing. Otherwise you could get stuck with two mortgages, two property tax bills and - well, you get the idea.

At least have your lawyer include a contingency clause in the sales agreement that obligates you to close only if you manage to sell your home by a set date. In the bubble-licious sales frenzy of yesteryear, sellers could make bidders do somersaults and had no incentive to agree to such a clause. But with so many homes on the market for months, sellers may now show mercy.

What downsizers learned

  • Don’t price your house like it’s 2006. Paul Waldrop and Dodi Christiano of Haymarket, Va. asked the same amount that nearby houses had sold for two years earlier. “We had to realize that what had happened during the boom was not the norm. It took six stressful months to sell,” says Dodi.
  • Get the old place sold first. Rick and Suzanne Pepin of Minneapolis moved into their dream condo but now can’t sell their house. “Don’t wait to put your home on the market if you decide to buy. We waited for renovations on our new condo to be complete, and by then we couldn’t sell,” says Rick.
  • Plan for smaller rooms. John and Polly Smart of Houston had the wrong stuff. “Smaller rooms may not accommodate your old things. We spent about $20,000 on new furniture and more on a smaller Silverado because the old one stuck about two feet out of the garage,” says John.

Do you (and your spouse) make more than $170,000 annually and worry about tax-efficient retirement planning? If so, send your name, age, occupation, income and questions, along with a recent photo, to makeover@moneymail.com. We will be providing advice to a family in this situation in an upcoming article - and it could be you! ”

Interested in learning more Huntsville home prices and possible downsizing? Visit our website, MoveToHuntsville.com or give us a call at 256-508-0211.

What’s my Huntsville home worth?

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September 4, 2008

Is Downsizing Your Huntsville Home For You?

Filed under: Huntsville AL Real Estate, Real Estate News, Sellers — Huntsville Real Estate Expert Mike Manosky

You just dropped your youngest child off at college and have officially joined the ranks of the empty nesters. One of the first questions that usually comes to mind is should we downsize our Huntsville home. The kids are gone and we probably don’t need this big house. But is buying a smaller home right for you?

There are pros and cons to downsizing. Consider your finances and lifestyle before making a decision.

Reasons not to downsize your Huntsville home:

  • You want a place for your children and grandchildren to stay when they visit. The family is spread all across the country and you want to have a place for everyone to gather for the holidays and vacations.
  • You can’t bear to part with your cherished belongings. You have been in your current home for many years and have filled it to the gills with mementos you don’t want to part with.
  • You aren’t you emotionally ready to leave? You are not ready to pack up and leave a lifestyle you worked hard to create. Leaving family, friends and familiar surroundings is more than you can bear.
  • You enjoy the prestige that goes along with your luxurious home. A smaller home will not portray the correct image of success.

Reasons to downsize your Huntsville home:

  • The lower house payments that accompany a smaller home would give you more discretionary funds to travel and enjoy other recreational activities.
  • A smaller homes means less to maintain and more time to play.
  • You or your spouse, are not able to navigate the stairs like you use to and a single level home is more desirable.
  • A smaller, newer home is more efficient and better for the environment.
  • You need to be closer to a spouse who is in a nursing home?

Make sure downsizing your Huntsville home is affordable:
If you decide to downsize, make sure the place fits both your pocketbook and your lifestyle.

Talk with a real estate professional about how much money you will net from the sale of your current home, as well as the costs of buying another one. This will help you determine if the move benefits you financially.

Under current tax rules, up to $500,000 (if you are married and file jointly) in profits from the sale of your principal residence are not taxable as long as you’ve lived there for at least two of the previous five years. Up to $250,000 in profits are not taxable if you’re single. Consult a tax advisor to discuss your situation.

Look into how much it would cost to move and to maintain a smaller home. Make sure it really is cheaper to live there.

Decide to downsize only once you’re satisfied that the finances make sense.

Buy into your new lifestyle
A smaller house in your current neighborhood could be the right decision if your priority is maintaining close ties to neighbors. Just make sure there are amenities like public transportation and stores nearby if your health begins to deteriorate.

A condominium or a unit in a retirement community could be perfect if you never want to mow again, or if you want to focus on travel, hobbies and perfecting your golf stroke in the company of other seniors. Just remember you’ll have to pay maintenance fees for the upkeep of the common areas. Talk to current residents to see whether they’re happy with the way things are run. Also investigate the rules. If the association forbids pets and you’re a devoted dog-owner, be prepared to move on.

You may prefer to purchase a duplex or something similar. Renting one of the units will bring in extra income, and you’ll have built-in neighbors.

Thinking of downsizing your Huntsville home and want to talk with a real estate professional? We are glad to provide you the information you need to help you make the right decision for you. Give us a call at 256-508-0211.

Search all Huntsville homes for sale.

What’s my Huntsville home worth?

Also read:
Huntsville/Madison County Real Estate Sales Statistics-July 2008
How Does Housing Recovery Act Help Huntsville Home Buyers
Huntsville AL Real Estate: Wall to Wall or Buy it All?
Re-capturing the American Dream With Huntsville AL Real Estate

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April 11, 2007

Gorgeous Huntsville Home For Sale

Filed under: Huntsville Information — Huntsville Real Estate Expert Mike Manosky

1304 Leafmore Circle, Huntsville, AL 35803  

 

Come check out this 2-story home in Huntsville home for sale. The classic floor plan delivers 5 bedrooms and 2.5 bathrooms and is located on a quiet cul-de-sac.

The gracious living room is over-sized with hardwood floors for an air of sophistication. You’ll be able to host all the family get togethers in the large, beautifully appointed dining room and the informal family room with gas fireplace is warm and inviting.

The roomy kitchen with granite counter-tops, work island, abundance of cabinets and desk area will please the family chefs as there is plenty of room for more than one person to cook at a time.

The distinctive master suite with vaulted ceiling is sure to delight with it’s built-in wall cabinet and entertainment center. There is room for comfy chairs to sit and read or watch TV. The master bath includes a separate shower, whirlpool tub for tired bones, dual sinks, and a beautiful leaded glass window.

A screened porch overlooks the inground pool house with it’s slide and diving board. There is a 1/2 bath in the pool house, eliminating wet foot prints in the house. With the pool and play-set in the yard, you will always know where the kids are!

Visit my website to view a Virtual Tour of this home and for all Huntsville real estate. For more personalized service, call 800-239-4749 #4932.