Understanding What “Appreciation” Means in the Real Estate Industry
Appreciation is the increase in the worth or value of property. Investors generally buy property for two reasons – income production and appreciation potential.
The purchase of a home usually is the single greatest investment most people make in their lives. It’s important to look at one’s home as an investment, and understand what drives the value of the property in order to find opportunities that maximize wealth. Given the unpredictable nature of the real estate market, what should you know about home appreciation before you buy?
Location, Location, Location
As the population steadily increases, the demand for land grows as well. The supply of land on this planet is limited, and its price increases as the population does. Home buyers should focus more on how purchasing a property in a specific location will appreciate over time, versus the physical attributes of the home itself. This is a difficult task for buyers who are expecting to spend a significant amount of time in the home. However, almost all homes can be improved as time goes by and can provide a significant return on the investment – if they’re located in an area of high demand.
Current & Future Amenities
Local amenities are great, and definitely a key factor when choosing a property to purchase. But what about the future prospects for commercial and/or governmental development in the area? Future schools, hospitals, traffic patterns and other public infrastructure will have a big influence on land values, as well as current and future development of commercial amenities in a particular location.
Unfortunately, whether your home will appreciate over time is mostly out of your control. The residential real estate market has a natural ebb and flow between being a buyers’ markets and a sellers’ markets.
With so much information and advice out there, it’s hard to know for sure where your property fits into the mix. The JS Realty Team is a great resource when it comes to buying and selling residential real estate. If you’re curious about the appreciation of your current home, contact our Expert Realtors today! They proudly offer FREE Home Analysis and Consultations for Buyers, Sellers, and Investors.
Main Level
Partially amortized loans are a series of amortized payments followed by a “balloon payment” (or lump sum) at the loan’s maturity. The balloon payment is the entire remaining balance. A partially amortized mortgage provides much lower monthly repayments, however a massive final payment is due at the end of the contract. Under a partially amortized mortgage, the final payment is larger than any previous payment as it “balloons” on the last installment. This type of payment is often found in commercial lending arrangements. The lower monthly payments can be helpful while the commercial project grows and, the developer hopes, appreciates.
Not sure which type of amortization is right for you? Contact our good friend and Lender, 
This spacious 3 level, 3 bedroom townhome in Ashburn Village is located at 
A separate Dining area is located just off the kitchen. 
In the Master Bathroom, find a beautiful single vanity sink and tiled shower/tub combination. A bright windows allows lots of natural light to fill the room.
In addition to the Master, 2 additional bedrooms are located on the Upper Level. Also found on this level is a 2nd shared full bathroom featuring a single sink vanity with a tile shower/tub combination.
Our Expert Realtors offer a 
You can get an idea of what you can afford based on monthly income and monthly debt. Most loans have a maximum debt-to-income ratio for qualification purposes. The mortgage industry uses a borrower’s GROSS monthly income as a basis for this ratio. Most borrowers don’t know their monthly debts and usually think it is higher than what the industry may calculate. For example, if a borrower has 3 credit cards with a total outstanding balance of $900, what is their monthly debt? Many consumers might think their monthly debt is $900. In reality, it would be the total of the monthly minimum payment for all three cards and could be as little as $25 per card – or $75.
Once a credit report is run, a number of potential issues may surface. You may have a score that is preventing you from qualifying for certain loans due to a creditor reporting inaccurate information on your credit report. You may have a high balance on a credit card that is impacting your credit score. If you need time to remedy these issues, you can address them early on so that a purchase settlement is not delayed.
There are potentially many loan programs available to you as a borrower. A sample list may include Conventional, High-Balance, VA, FHA, VHDA, USDA, Jumbo, primary residence, investment properties, etc. Some of these require little or no money down, whereas some may require a minimum down payment of 20% or more. It is not fair to assume that your Realtor will know all of the requirements for loan qualification. Perhaps you had a short sale 3 years ago – if that’s the case, you may only qualify for an FHA loan based on that information.
You may have a competitive advantage over other buyers if there are multiple offers on a property. If you have filled out a loan application and your lender has run your credit report, you can obtain a conditional loan approval letter from your lender. If you are interested in a sought after property, you may be able to submit an offer with a closing date weeks earlier than if you had not spoken to a lender. The approval letter can also be strong enough to convince the seller that your offer is the best and safest of all the competing offers.
If you need to liquidate funds for closing, obtain a gift from a family member or provide documentation that is not readily available, you can be made aware of these needs well in advance. We all have enough stress in our daily lives to not have to have added pressure of trying to get qualified for a loan in a short period of time.