Answers to Home Buyer & Seller Questions – Cynthia Malmquist
On this episode of The Closing Table, we sat down with Cynthia Malmquist!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Cynthia Malmquist…
The conversation began with a fill-in-the-blank icebreaker on the key to longevity as a realtor, how to add value to your home, and more. When asked to define herself outside of real estate, Cynthia finds it challenging due to the all-encompassing nature of her involvement in the industry. Her dedication to her work is evident as she devotes seven days a week and nearly every waking hour to real estate-related efforts.
Despite her intense focus on real estate, Cynthia and her husband share a love for fishing. Interestingly, their enthusiasm for the sport extends beyond catching fish for consumption. Instead, they prefer to release the fish back into their natural habitat. Fishing serves as a recreational activity that allows her to momentarily detach from the demanding world of real estate and indulge in the tranquility of nature. Alongside her professional pursuits, Cynthia has a genuine passion for technology and social media. These interests highlight her desire to stay connected and engage with the ever-evolving digital landscape. If she were to pursue an alternative career path, she admits that exploring opportunities in technology and leveraging social media platforms would be an enticing endeavor for her.
When considering the choice between buying and renting a property, there are several pros and cons that Cynthia addressed. One of the significant advantages of buying a property is that it allows you to build equity over time. However, she highlights that this benefit may not apply if you plan to stay in the property for less than two years, such as in the case of job relocations or other circumstances. Another pro is the ability to write off certain expenses on taxes, such as capital improvements and property taxes, which can provide financial benefits. Additionally, homeownership can provide a morale boost and a sense of confidence in owning something tangible, while also building your net worth.
On the downside, one common pitfall is when individuals get pre-approved for a mortgage and opt for the maximum loan amount without considering the potential challenges that come with homeownership. It’s crucial to carefully assess the financial responsibilities associated with a mortgage. Moreover, annual increases in property taxes can be a significant drawback, especially in areas like the greater Lansing area where taxes can be high. Understanding all the various aspects and complexities of purchasing a property is key to avoiding unexpected hurdles.
Cynthia then acknowledges that the rental market can be challenging, with high rents and limited availability. In some cases, she advises clients to consider renting temporarily, allowing them to wait for potential improvements in the market, such as lower interest rates and increased stability due to inflation. Renting, however, offers a carefree lifestyle, as tenants do not have to worry about mowing lawns, repairs, or maintenance. Many rental properties also come with amenities, which can be significant advantages for tenants.
One of the primary drawbacks of renting is that it does not allow for building equity in a property. Renters do not have the opportunity to accumulate ownership in the same way that homeowners do. In apartment complexes, tenants may have to deal with neighbors and noise, which can be a downside for some individuals. It is essential to assess the building and speak with potential neighbors to understand the environment and the responsiveness of the landlord. In some cases, landlords may not manage the property effectively, particularly if they are absentee landlords or out-of-state investors. It is crucial to consider factors such as personal financial situation, lifestyle preferences, and the local real estate market when making the decision on the type of property that would suit you best.
When aiming to increase your return on investment, Cynthia emphasizes the importance of maintaining porches and decks, as they are often visible when entering a house. Neglected decks with ripped boards, peeling paint, or instability can give a negative impression to potential buyers. Regular maintenance, such as repairing any damages and giving them a fresh coat of paint, can significantly improve the overall appeal of your property.
Another common oversight in home maintenance is neglecting to powerwash the exterior. Cynthia observes that many properties do not undergo regular powerwashing, which can leave them looking dull and dirty. Fortunately, there are numerous service companies that offer powerwashing services. Alternatively, if you choose to tackle this task yourself, be cautious with vinyl windows, as using high-pressure water can potentially void their warranty. For a no-frills upgrade, investing in new lighting fixtures can greatly enhance the aesthetics of your home’s exterior. Cynthia suggests that incorporating smart home features, such as security cameras, can also be a worthwhile investment. These upgrades not only improve safety but also appeal to potential buyers who value modern and technologically advanced homes.
Kevin then asked Cynthia about the CLUE insurance report and what it entails. Cynthia acknowledges that she is unsure if CLUE is an acronym, but she emphasizes its necessity in real estate transactions and advises her clients to contact the insurance company to know more about the property. A CLUE insurance report contains information about insurance claims made on a property. It records incidents such as damage caused by hailstorms or burst pipes, which can impact future insurance coverage and rates.
Next, the two talks about the difference between condos, apartments, and townhouses. Cynthia explains that a condo can either be part of a complex or a standalone unit resembling a house. Condos often have an association, although some may not. One notable characteristic of condos is the requirement to pay a monthly fee to cover maintenance of the exterior, snow removal, lawn care, and other shared amenities. In some cases, the association fee may also include liability and fire insurance. In contrast to condos, townhomes are individual properties that are connected to neighboring units. On the other hand, apartments are rented spaces where tenants pay monthly rent for the right to occupy the unit
Cynthia also mentions another type of property found in the area called cooperatives. Cooperatives share similarities with condos, but there is an outstanding balance that residents still owe. When selling a cooperative unit, the balance is factored into the transaction, and the seller adds the desired profit on top of that balance. Additionally, cooperatives typically have various fees associated with them, but these fees are generally lower compared to other housing options.
When considering residential solar power, Cynthia expresses her belief that residential solar power is a phenomenal idea and has significant advantages for tremendous savings on electricity bills. However, it is important to carefully consider the financial implications, including the separate cost of the solar panels and the need to pay off the outstanding balance at the time of selling the property. Cynthia also mentions that in certain cities or townships, there have been controversies and conflicts regarding the use of agricultural land for industrial solar panels. This raises ethical considerations and causes disputes among affected residents. The decision to prioritize solar energy generation can sometimes conflict with other land use priorities and create tension within communities.
Following that, Cynthia discussed three mortgage mistakes that buyers often make. She highlights that the number one mistake buyers make is solely focusing on finding the best interest rate online. Instead, she advises choosing a local lender over larger state banks. Local lenders often provide personalized service and have a better understanding of the local real estate market. It’s important to be cautious of hidden conditions that may be attached to lower interest rates. Cynthia also shared that buyers are increasingly reliant on online real estate pages, but she cautions against relying solely on them. Online estimates of property values may be inaccurate or outdated. By sitting down with a realtor and setting up a personalized property search using the Multiple Listing Service (MLS), buyers can access accurate and up-to-date information on available properties. Another common mistake that Cynthia points out is making significant credit purchases before closing on a home. It is essential to avoid taking on additional debt or making large purchases, such as buying a car, during the mortgage process. These actions can affect the buyer’s creditworthiness and financial stability, potentially jeopardizing the mortgage approval.
The conversation wraps up with Cynthia expressing her love for podcasts, particularly the Bigger Pockets podcast. She describes it as mind-blowing and a valuable resource, especially for individuals starting their journey in the real estate industry. She shares how she has gained valuable knowledge and inspiration that has helped her in her own real estate endeavors.
Check out Cynthia Malmquist:
https://www.facebook.com/cynthiaavalos86
https://www.facebook.com/cynthiamalmquist1
https://www.instagram.com/cynthiamalmquist/
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