Having a financial game plan for your home will give you peace of mind

Creating a financial plan for your home can help you feel more secure in budgeting for the future. A financial plan will spell out how much you need to pay and when, so you know exactly how much money is going toward your home. Without a plan, you could find yourself overwhelmed by unforeseen expenses like emergency repairs that you didn’t budget for, or unable to make updates to your home because of a lack of savings.

Luckily, you can create your own financial planning checklist to get a better look at your expenses and savings in the years ahead.  

Where to start

First, write down recurring expenses like your mortgage payment, taxes, and homeowner’s insurance. Note when each of these payments is due, and how much it is.

• Follow that list up with more occasional expenses like seasonal lawn care and maintenance or replacement dates for major appliances, plumbing fixtures, and the roof. Note that these dates don’t need to be exact, but searching for the average lifespan of a water heater, for example, will help you identify future expenses you’ll need to save for.
• Lastly, write down any voluntary expenses like adding a pool or finishing the basement. By listing the things you want to add to your home and estimating their cost, you’ll be able to see what is financially possible and when. 

Ways to save

With an idea of how much you need to spend in the short and long-term of your home, you’ll be able to turn your attention to places you might save money in order to be prepared for the future.

If you’re planning on staying in your current home forever, pay more than the minimum monthly mortgage payment. Paying more upfront means saving thousands in interest later down the line. Plus, it just feels better to pay down your home sooner.

Another oftentimes overlooked area to save is by checking with your insurance agent to make sure you are covered enough, but not too much. Over-insuring your home means you’re paying more than you need to on a policy that you’ll never see the full benefit from. Likewise, under-insuring your home will leave you paying out-of-pocket should you need to make a claim. Everyone has to pay property taxes.  However, you may be able to reduce your tax burden by getting a reassessment. Do your homework first: Are comparable homes taxed less than yours? If so, you can contact the local assessor, challenge the assessed value of your home and possibly reduce your taxes..

With a little planning, you’ll have peace-of-mind knowing that you’re in good financial shape, and the fear of surprise expenses will be greatly reduced.  If you’re looking for a new home, contact the Three Rivers Association of Realtors at 815-744-4520 to start your search today.

The Difference Between a REALTOR® and a Real Estate Agent

Many people are not aware that the terms REALTOR® and real estate agent are different titles.  If you are entering the housing market for the first time, it’s important to know what you will get from a REALTOR® versus a real estate agent.  While they are both licensed to sell real estate, each professional offers different values for homebuyers.  

If you are browsing the housing market and want help from a professional, follow our tips for choosing between a REALTOR® or real estate agent.

What is a REALTOR®?

A REALTOR® is a real estate agent who is a member of the National Association of REALTORS®.  They act as an intermediary between sellers and buyers of real estate while also following the REALTOR® Code of Ethics.  As a member of the National Association of REALTORS®, a REALTOR® must uphold the standards of the association.  The NAR’s Code of Ethics consists of principles that require REALTORS® to cooperate with each other to further the best interest of consumers and clients.  This includes treating all parties fairly, giving equal opportunity and upholding fair housing standards.

More than 1 million members of the National Association of REALTORS® are employed across the country.  REALTORS® must hold a valid real estate license, be actively engaged in the real estate business and have no record of unprofessional conduct.

What is a real estate agent?

A real estate agent is anyone who is licensed to help people buy and sell commercial or residential property.  In order to obtain a real estate license, agents must complete a minimum number of classes and a pass an examination prescribed by the state.  State requirements vary but anyone who earns a real estate license can be called a real estate agent.

Many real estate agents join the National Association of REALTORS® and become REALTORS® because of the great reputation members are known for having throughout housing market.  

When you are looking for a real estate professional, it is wise to work with a member of the National Association of REALTORS® who is committed to maintaining the professionalism of the real estate business.  At Three Rivers Association of REALTORS®, we are a professional trade association of over 1000 licensed REALTORS®.  We strongly believe in what the National Association of REALTORS® stands for including honesty, ethics and superior service for both buyers and sellers.  If you are a REALTOR® in Illinois, contact Three Rivers Association of REALTORS® to learn more about our services!

Tax Benefits of Homeownership

Are you ready to own a home?  For first-time homebuyers, now is a great time to start looking for property!  The housing market is on the upswing and it’s easier than ever to secure a loan from the bank.  While buying your first home seems like a big step, there are a number of tax deductions available to homeowners that make it worth it!  If you are a first-time buyer or new homeowner, let us guide you through the tax benefits of homeownership:

Mortgage Basics:

A mortgage is a loan received to finance the purchase of a home.  A bank or mortgage lender will loan you a sum of money that you are required to pay back over a set period of time with an added interest rate.  A mortgage is typically made up of principal payments, interest charges, taxes and insurance.  

Tax Deductions:

A tax deduction is available to taxpayers of all income levels.  The purpose of a tax deduction is to decrease your taxable income and to decrease the amount of tax you owe to the federal government.  If you are a homeowner, you will benefit from huge deductions during tax time.

Homeowner Tax Breaks:

As a property owner, you receive big tax deductions on a number of home-related expenses!  For homeowners, the largest tax break you will benefit from is your mortgage interest.  You are able to deduct the interest of your mortgage up to one million dollars.  This is a big annual deduction that you will love come tax season.  Another deduction you will benefit from is property taxes.  Each year you will receive annual tax deductions if you own your home and pay property taxes.  

Three Rivers Association of REALTORS® is a non-profit organization serving the community with over 1,000 licensed real estate agents. www.trarealtors.net