Can you negotiate rent? While rental leases may appear set in stone, they’re more flexible than many tenants think—so if you think your rent is too damn high, it’s definitely worth speaking up.
Negotiating rent with a landlord might seem like a hard battle to win, but it’s entirely doable if you can prove two things: 1) the rent being charged is higher than similar units elsewhere, and 2) you’re a model tenant who pays rent on time. Such negotiations can be done whether you’re applying to rent a new apartment or just want cheaper rent where you currently reside.
Here’s how to negotiate rent and help your landlord realize you’re worth the sacrifice.
How to negotiate rent before you move in
As a prospective tenant, it’s a bit harder to persuade a new landlord to accept lower rent, since you two have no history together. A competitive market counts here: Landlords who’ve been struggling to fill apartments will be far more willing to negotiate than most.
Here are some ways to stand out.
- Prepare a stellar application. “The best way I’ve seen renters negotiate rent is to be an amazing applicant,” says Glenn Carter, a real estate investor at Condo.Capital. That means submitting your application quickly and including tax returns, proof of employment and references from previous landlords saying you pay rent on time. “This will show potential landlords you’re diligent and will treat the property well,” Carter says.
- Show a high credit score. If possible, also bring a recent document showing your high credit score, which indicates you reliable pay your debts on time. “As a landlord, I would accept lower rent from a dependable source,” says Boston landlord Steve Silberberg.
- Gather rental statistics. Comb through online listings to find out the rents of comparable properties in the area. Also research how long the property you’re interested in—or a similar unit in the area—has been on the market. When you speak to the landlord, have a print-out of comparable units that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well. Then point out how these factors make the rent he’s charging too high for the market to bear.
- Suggest a realistic rent reduction. Be sure to have a realistic rent reduction ready based on your research. Don’t lowball, but let your first offer be one your landlord can haggle with you on. Make your case in a non-confrontational way. Say something like, “I love this place and am looking for a long-term commitment. Unfortunately, my budget is X. Would you be willing to meet that in exchange for signing a longer lease?”
How to negotiate rent as a current tenant
As a current tenant, you’ll have more leverage—that is, if you’ve paid rent on time and otherwise proved to be a good tenant.
Here’s how to negotiate rent when you’re already living there.
- Time it right. Start the conversation shortly before your lease is up for renewal. Begin by saying you’re not thinking of moving out but rather want to stay—for the right price. Then state the facts: You like your current apartment, but you’re seeing cheaper rents elsewhere.
- Point out the benefits of your staying. Remind the landlord that keeping you as a tenant saves him the hassle of listing a vacancy, showing the apartment, screening applicants, and losing potential rental income during the time the property is unoccupied.
- Offer something in return. Ask your landlord what he wants in exchange for a lower rent—a longer lease commitment or prepaying a month or two—to make your request fit his needs.
- Demonstrate you’re a model tenant. Frame your reduction in rent as a return on investment, because you have a stellar payment record and value as a tenant. Remind your landlord you pay rent on time, keep your place in good condition, and help your neighbors. “If less reliable tenants miss even a half-month’s rent during their lease, that translates into a loss,” says Silberberg. “I recently accepted $150 less per month on a year and a half lease for very stable renters, instead of a year lease with less stable tenants.”
- Point out repairs. You may also want to tactfully bring your landlord’s attention to anything in your unit that’s worn out or needs painting. Then suggest that the current condition of the items in question merits a proportionate reduction in rent. You can also offer to repair or replace these items yourself in exchange for reduced rent.
- Suggest a temporary rent reduction. If you suspect your landlord won’t budge on a permanent rent reduction, consider suggesting a temporary reduction instead—say, during off-peak seasons when it’s harder to rent places out. “I’m most open to price negotiations anytime between November and January,” says landlord Domenick Tiziano of AccidentalRental.com. “If I have a vacancy, a good candidate has a pretty good chance of talking me down a few bucks.” For a $900 property, Tiziano will consider a $50 reduction but only for a six-month period.
By: Zillow #millenniumsales #piecuadrado #waterfront #buying #homebuyers
Everything you need to know about buying a home — on one index card.
A home is often the biggest financial investment you’ll make in your lifetime. In fact, a recent Zillow analysis reports that the typical American homeowner has 40 percent of their wealth tied up in their home.
Several years ago, I wrote a complete guide to financial planning on one index card, which went viral and later became a book: “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated” (co-written with Helaine Olen).
Now, following up on my original index card, I’ve written a guide on buying a house. Below is the housing index card — a handy resource to print out and take with you as you look at houses or think about buying one, plus some additional advice as you contemplate making the big decision.
1. Buy for the long run. Assume you’ll own your home for at least five years.
A home is a significant investment, not to mention a linchpin of stability. According to the Zillow Group Consumer Housing Trends Report 2017, the majority of Americans who sold their homes last year had lived in their home for at least a decade before selling.
Some are even staying for the long haul. Almost half (46 percent) of all homeowners are like me — living in the first home we ever purchased. In short: Buy a home you want to live in — one equipped (or ready to be equipped) with the features and space you need, both now and in the future.
2. Buy to improve your life, not to speculate with your money.
Your home is more than a financial investment; it’s where you sleep, eat, host friends, raise your children — it’s where your life happens.
The housing market is too unpredictable to buy a (primary) home purely because you think it will net a big short-term financial return. You will most likely be living in this home for several years, regardless of how it appreciates, so your first priority should be finding a home that will meet your needs and help you build the life you want.
3. Focus on what’s important to you. Don’t be distracted by features you don’t need.
Today’s housing market is short on inventory, with 10 percent fewer homes on the market in November 2017 than November 2016.
So, focus on finding a home you can afford that meets your needs — but don’t get distracted by shiny features that might break your budget. Nice-to-have features often drive up the price tag for things you don’t particularly value once the initial enjoyment wears off.
Make a list of your basic needs, both for your desired home and for your desired neighborhood. Stick to finding a home that meets these needs, without buying extra stuff that adds up.
4. Determine a budget and stick to it. Don’t look at houses above that budget.
It’s important to set a budget early — ideally before you even start looking at homes. In today’s market, especially in the more competitive markets, it’s incredibly easy to go over budget — 29 percent of buyers who purchased last year did.
The most common culprit? Location. Zillow’s data indicates that urban buyers are significantly more likely to go over budget (42 percent) than suburban (25 percent) or rural (20 percent) buyers.
There’s nothing inherently wrong with that. Local schools matter, and psychologists tell us that a short commute improves your life. But be realistic about your local market and about yourself. Know what you’re willing to compromise on — be it less square footage, home repairs or a different neighborhood.
5. A 20 percent down payment is ideal. If you can’t afford that, consider a smaller down payment, or lower your budget.
If you can afford it, a 20 percent down payment is ideal for three reasons:
- Buyers who don’t put a full 20 percent down pay a premium, most commonly in the form of private mortgage insurance (PMI). This is less financially punishing than it used to be, given today’s low mortgage rates. A monthly mortgage payment (with PMI) may be lower than a monthly rental payment in many markets — but still.
- Buyers who put more down upfront typically make fewer offers and buy faster than those who put less down. Zillow research found that buyers with higher down payments make 1.9 offers on average, compared to 2.4 offers for buyers with lower down payments (after controlling for market conditions).
- A higher down payment reduces your financial risk. You don’t want to owe more money than your house is worth if local markets dip when you need to sell.
6. Keep a six-month strategic reserve after down payment. Stuff happens.
While a down payment is a significant expense, it’s also important to build up a strategic reserve and keep it separate from your normal bank account.
This reserve should cover six months of living expenses in case you get sick, face an unexpected expense or lose your job. A strategic reserve will not only save you from financial hardship in the event of an emergency but also provide peace of mind.
When we accumulated a strategic reserve, my wife and I finally felt ready to build for our future. Without it, we were living from paycheck to paycheck, anxiously managing our cash flow rather than saving or budgeting.
7. Get pre-approved, and if you want to avoid uncertainty down the road, stick with a boring 30- or 15-year fixed-rate mortgage.
The pre-approval process requires organizing all your paperwork; documenting your income, debt and credit; and understanding all the loan options available to you. It’s a bit of a pain, but it saves time later. Getting pre-approved also shows sellers that you’re a reliable buyer with a strong financial footing. Most importantly, it helps you understand what you can afford.
There are a variety of mortgage types, and it’s important to evaluate all of them to see which is best for your family and financial situation. Those boring 30- and 15-year mortgages offer big advantages.
The biggest is locking in your mortgage rate. In short: A 30-year fixed mortgage has a specific fixed rate of interest that doesn’t change for 30 years. A 15-year fixed mortgage does the same.
These typically have lower rates but higher monthly payments, since you must pay it off in half the time. Conventional fixed-rate mortgages help you manage your household budgeting because you know precisely how much you’ll be paying every month for many years. They’re simple to understand, and current rates are low.
One final advantage is that they don’t tempt you with a low initial payment to buy more house than you can afford.
8. Comparison shop to get the best mortgage.
I certainly didn’t. This did save me some annoying phone calls and hassle, but it cost me $40 or $50 every month, for years. The difference of half a percentage point in your mortgage rate can add up to thousands of dollars over the lifetime of the loan. It’s important to evaluate all the available options to make sure you’re going with the lender who meets your needs — not just the first one you contact.
The three most important factors to buyers are that the lender offers a loan program that caters to their specific needs (76 percent), has the most competitive rates (74 percent) and has a history of closing on time (63 percent).
9. Spend no more than a third of your after-tax income on housing (unless you live in an especially pricey market).
It’s better to regret spending too little on your home than spending too much. One-third of your after-tax income is a manageable amount. This isn’t always possible if you live in a place like San Francisco or New York, but it’s still a good yardstick for where to be.
10. When getting ready to buy, always be willing to walk away.
Buying a home is a time-consuming, stressful but ultimately rewarding endeavor — if you end up closing on a home that meets your needs. But it’s important to manage your expectations in case you don’t immediately find a home you can afford with the features you need.
Always be prepared to walk away if the sellers don’t accept your offer, the home doesn’t pass a rigorous inspection or the timing isn’t right. Hold fast to your list of must-haves, stick to what you can afford and don’t overreach or settle.
It’s no tragedy to miss out on any particular house. Remember that you’re playing the long game. You want to be happy 10 years from now.
by: Harold Pollak 3
#buyingahome #msi #purchasing #waterfrontproperty #homes #homebuying #selling
Despite a red-hot real estate market, most aspiring buyers can still afford to buy a home—if they can find one. But it may not be that way for much longer.
Households bringing in at least $68,000 a year, the national median, could afford about 59.6% of all newly constructed and existing (previously lived in) homes sold in the fourth quarter of 2017, according to a recent National Association of Home Builders report. But that doesn’t take into account the most expensive coastal markets such as San Francisco and New York City, where buyers need six-figure salaries for even the smallest and oldest of residences.
The quarterly report looked at three figures: home prices, mortgage interest rates, and the median household income, across the nation and in 238 metropolitan markets. It did not take into consideration down payments, and the struggle that many would-be buyers face accumulating a lump sum to pay upfront.
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“Buyers should be prepared,” says the association’s chief economist, Robert Dietz. “It’s going to be more expensive to afford a house over the course of 2018. … Interest rates went up a little bit, and home prices went up as well.”
Thank the lack of homes on the market, and of construction to build new ones, for the price bumps. The lack of inventory has led to bidding wars, offers over asking, and a whole lot of frustration.
Buyers have more peace of mind in Syracuse, NY, and Youngstown, OH, which tied for the most affordable major housing markets. In focusing on individual markets, the report used local median figures for household income and home price.
About 88.3% of homes sold were affordable to folks earning the areas’ respective median incomes of $54,600 and $68,000. These areas have struggled as manufacturing jobs, and then residents, have left in recent decades.
The rest of the most affordable markets were Indianapolis; Scranton, PA; and Columbia, SC.
Cumberland, MD, was named the most affordable smaller market in the country. Residents bringing home the area’s median income of $53,900 could afford about 96.9% of homes sold.
There were even several abodes under $20,000 for sale—including a three-bed, two-bath, single-family house going for $17,900.
The least affordable metros were all in California, with San Francisco topping the list. No surprise there as the median home list price in the city limits is a jaw-dropping $1,200,000, according to realtor.com® data. It was followed by Los Angeles, Anaheim, San Jose, and Santa Rosa.
BY:Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor. She previously wrote for a Financial Times publication and the New York Daily News.
buying, selling, financing Millennium Sales.
The zero-down loan? It’s making a comeback
NEW YORK – June 16, 2017 – Buyers may soon be able to bring less to closing. They were blamed for precipitating the housing crisis years ago, but major lenders are giving no- and low-downpayment loans another shot.
Several major lenders are reportedly offering loans with just 1 percent down. Navy Federal, the nation’s largest credit union, offers its members zero-down mortgages in amounts up to $1 million. NASA Federal Credit Union markets zero-down mortgages as well.
Quicken Loans, the third highest volume lender, offers 1 percent downpayment options, as does United Wholesale Mortgage. And the Department of Veterans Affairs has offered zero-down loans to eligible borrowers for many years.
Also, Movement Mortgage, a large national lender, has introduced a financing option that provides eligible first-time buyers with a non-repayable grant of up to 3 percent. As such, applicants can qualify for a 97 percent loan-to-value ratio conventional mortgage, which is basically zero from the buyers and 3 percent from Movement. For example, on a $300,000 home purchase, a borrower could invest zero personal funds with Movement providing $9,000 down. The loan also allows sellers to contribute toward the buyer’s closing costs.
So far, the delinquency rates on these low- to zero-down payment loans have been minimal, according to lenders. Quicken Loans says its 1 percent down loans have a delinquency rate of less than one-quarter of 1 percent. United Wholesale Mortgages told The Washington Post that it has had zero delinquencies from the borrowers on its 1-percent down loan since debuting it last summer.
For Movement’s new loan product, the lender will originate the loans and then sell them to Fannie Mae, which remains under federal conservatorship. Fannie officials released the following a statement:
“(We’re) committed to working with our customers to increase affordable, sustainable lending to creditworthy borrowers. We continue to work with a number of lenders to launch (test programs) that require 97 percent loan-to-value ratios for all loans we acquire.” They add that there “is no commitment beyond the pilots,” which are “focused on reaching more low- to-moderate income borrowers through responsible yet creative solutions.”
During the housing crisis, zero-down loans were among the biggest losses for lenders, investors and borrowers. However, housing experts say the latest versions are different from years ago. Applicants must now demonstrate an ability to repay what’s owed. They also must have stellar credit histories and scores, and lenders require a lot more documentation to prove borrowers are in good standing.
Also, many of the programs are charging higher interest rates. For example, Movement’s rate for its zero-down payment option in mid-June was 4.5 percent to 4.625 percent, compared with 4 percent for its standard fixed-rate mortgages.
Some critics say that the borrowers who really could benefit from such options aren’t able to qualify for them. Paul Skeens, president of Colonial Mortgage Corp. in Waldorf, Md., told The Washington Post that “it seems like people without excellent credit scores and three months of [bank] reserves don’t qualify.”
Source: “No Down Payment? No Problem, Say Lenders Eager to Finance Home Purchases,” The Washington Post (June 14, 2017)
Buy a home, Millennium Sales, Berta Correa, Investing in Real Estate.
Vacation in Fort Lauderdale – with your dog.
Did you know that a recent survey showed that 90% of dog-owning travellers consider their pet when booking accommodation? If you’re one of that huge number of people, then allow me to introduce to you our Fort Lauderdale vacation paradise – and yes, your dog is most welcome too.
In fact, we have special treats and amenities that are especially for him or her. But first, let’s look at your gorgeous home-from-home.
Yes, that’s your apartment on the right – upper floor. It has direct views over the wonderful Rio Grande canal. Right from your apartment, you can watch the water traffic go by. From the upper balcony or from the dock, enjoy your morning coffee or your evening glass of wine watching yachts, cruisers, paddle-boarders and more.
The apartment is located midway between the famous Fort Lauderdale Beach and the fabulous Las Olas Boulevard with its incredible boutiques, galleries and dining options – and many of those restaurants and cafés are dog-friendly.
Your vacation apartment is close to the very best Fort Lauderdale can offer – art museums, theatres, concert venues, historical sites, fine dining and so many attractions and events. And for your dog? In your apartment you’ll find:
- A beautiful, ultra-soft microfibre dog bed
- Organic dog treats
- Feeding and water bowls
- Custom-prepared book showing all the local facilities available to your pet
- Aromatherapy dog shampoo and conditioner (great for after the beach)
- Dog towel
- Collapsible dog bowl for when you’re out sightseeing
- Um … waste bags
And for the human guests?
- A cute Mid Century Modern apartment right on the water
- Free wifi and cable TV
- Free designated parking right in front of the building
- Central air conditioning (so important in Florida)
- Beach chairs, beach umbrella, cooler for your snacks
- Onsite manager to answer your questions / supply extra provisions
- Tourist guides and money-off coupons
- Top quality linens and towels