Showing posts with label Search Homes for sale in MLS Montgomery County PA. Show all posts
Showing posts with label Search Homes for sale in MLS Montgomery County PA. Show all posts
Thursday, July 11, 2013
Sellers: Itemize What You’re Taking With You
Sellers:
Itemize What You’re Taking With You
Believe it or not, after months of searching countless homes, finding the perfect one, negotiating price and finally agreeing to a deal, a sale can fall apart over a disagreement about curtains.
When striking a deal to sell a home, it’s important that you are perfectly clear about what you are taking with you and what you are leaving behind. The general rule is that if something is attached to the structure or the ground, it is real property and stays with the house. If removing the item would ruin or disfigure the walls, the item generally stays.
If you need a tool to remove it, it stays. Legally, these are called fixtures, which include everything permanently attached to the property such as a fence, built-in appliances, ceiling fans, flowerbeds and shrubs. Conversely, if you can disconnect, unhook or detach an item from the home with bare hands, it’s free to leave when you do. This is known as personal property and should never be assumed to be part of the sale. Items that fall into this category are furniture, potted plants, free-standing appliances and an outdoor grill.
A good rule of thumb is to not show your home with any fixtures you are planning to take.
Replacing them is the better option.
Every real estate agent has a story about a deal falling through because of an argument about what a buyer thought was staying. For this reason, you should walk in each room with your agent and make a list of things that you will be taking with you. If you decide to leave the curtains, chandeliers or are open to giving up some of the outdoor furniture, it may just help with a sale. People appreciate the notion of getting something for free, and a savvy agent will hint to a prospective buyer that fixtures and furnishing may be negotiable. Unless the items are really important to you, let them go with the home. Use them to get the price you want and then replace the items in your new home.
By itemizing and discussing all the things that stay and go at the outset, there will be no miscommunication on closing day.
Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential.
Wednesday, May 8, 2013
How to Buy and Sell a Home at the Same Time
AOL Real Estate
Now that the real estate market is picking up again, many people are looking to sell their homes at last. But when you sell, you have to move somewhere -- which usually means buying another home. Buying and selling at the same time brings up a whole new set of challenges, but those who plan well in advance can make it happen smoothly. Here are five ways to successfully buy and sell a home at the same time.
1.
Prepare to be stressed. Buying a home is stressful. Selling a home is stressful. When you do both at the same time, the experience is super stressful, not to mention emotional and difficult on many levels. You're potentially carrying two mortgages or trying to time the purchase with the sale. There will be a lot of sleepless nights, worrying over finances and pressure to make a decision. It's enough to ignite a family war.
Accepting upfront that this process will be extremely stressful will help in the long run. Know that most homeowners go through this, and there is success at the end of the long, dark tunnel. Plan everything as much as possible in advance. Do your homework. And take care of yourself. You're going to be busier than usual.
2.
Meet with your agent early on. Owners often believe their home is worth less than what the current market will bear. That's why it's important to meet with your real estate agent early on, even months before you plan to buy or sell. Researching online valuation tools or doing basic research will help to guide you. But a local agent will help you understand your home's true current market value and marketability. A good agent is in the trenches daily and knows your neighborhood and market inside and out.
3.
Learn the market where you want to purchase. After getting some hard numbers for your home's sale you need to do the same on the purchase side. What's on your wish list? What are your priorities? Determine your needs and understand what you will get for your money on the purchase side. You need to know this to factor in how financing will work with the buy/sell. Also, understand that market. Is it more or less competitive than where you live now? How long can you expect to search for a home? This will factor into your sale timing. If you're moving within the city or town where you live, your listing agent will likely serve as your buying agent. If you're moving just outside your area, you may need to ask your agent to refer you to an agent knowledgeable about that area.
4.
Know your numbers. Once you understand the numbers on both the purchase and the sale, you need to know your financing options. Many people today don't have a strong-enough financial foundation to purchase another home before selling their own, so knowing this upfront can help you plan more appropriately.
Engage a local mortgage broker or lender and understand what kind of down payment you'll need to make a purchase, given the price point and type of home you seek to buy. How much equity do you have in your current home, and is the equity available? Do you have enough of a down payment liquid and would a lender allow you to make the purchase before selling the home? Find out by going through the loan pre-approval process. A good, local mortgage professional is as valuable as a good real estate agent.
5.
Make a plan. Now that you know your numbers, it's time to come up with a plan and execute. The plan can vary greatly, depending upon any number of conditions. Some examples: Buying in a competitive market? Adding a contingency that your current home must sell before you buy probably won't work.
• Selling in a competitive market? You may be able to negotiate with the buyer for a longer escrow or even a rent back. This would buy you time on the purchase side.
• Selling in a slow market and buying in a competitive market? Need the sales proceeds in order to do the purchase? Unfortunately, you're in the worst-case scenario. Consider the option of selling your home first and moving into temporary housing. While not the most physically convenient, it could be less stressful.
• Need temporary housing? Start researching those options now well in advance
Understanding the variables: There are so many variables that can come into play when buying or selling. Each one may affect your decision-making process. Identifying and planning for the variables as much as possible early on will help you avoid sleepless nights, stressful days, or fights with your spouse or partner.
By Brendan Desimone AOL Real Estate
Thursday, January 24, 2013
Selling in Colder Months
Selling in Colder Months
While the warmer months are generally regarded as the time for home sellers to get their property ready for sale, marketing the home in winter and early spring is just as important. Homebuyers are out looking for homes 12 months a year and there’s no reason to drop the ball on sprucing up a home December through March.
Here are some tips for selling a home in the winter months.
Heat it up: If you are planning an open house or have showings scheduled, turn up the thermostat and make the home warm and inviting. A cold home shopper will race through a house and start questioning the windows and insulation.
Light it up: For homes with fireplaces, this is the perfect opportunity to show the potential buyer how cozy a fireplace can be. Leave some marshmallows and sticks nearby and invite those seeing the home to test it out.
Take care of snow and ice: For those selling in heavy wintry climates, make sure that the walk is clear, the driveway is shoveled and put down salt to control any icy surfaces. If a buyer pulls up to the house and has to slush through inches of snow, they may not even bother to enter. For those who aren’t currently living in the home that is for sale, make sure to hire someone to clear it for you.
Use photographs: If you have a beautiful lawn, stellar landscaping or an outdoor pool or deck, many times these are quickly overlooked or passed by because of snow. Take some eye-catching photos of these amenities during the warm months and display them during a winter showing so buyers can get a better understanding of what the outside truly offers.
Schedule Open Houses: There are still many who don’t believe that selling in the winter is a good idea, so it’s a great time to take advantage of less competition. Many serious buyers often come out during the winter months, including corporate clients who usually need to relocate within the first quarter of the year.
Emphasize the Positives: Does your street get plowed quickly? Is it near public transportation to make it easier to get to work in the snow? Is it within walking distance of stores? Does it have a great hill for the kids to sled down in a safe environment? If so, accentuate these features.
Since a lot of people are waiting until spring to put their home on the market, having a home ready in winter is a great way to beat the rush.
Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
Wednesday, February 1, 2012
Wednesday, January 4, 2012
Fireplaces Provide a Warm Glow to a Home on the Market
Fireplaces Provide a Warm Glow to a Home on the Market
With winter weather gripping most of the country the fireplace takes on greater importance in the sale of a home.
The National Association of REALTORS® recently conducted a survey that found nearly two-thirds of homebuyers had a fireplace on their wish list. The fireplace has become a coveted amenity and homes boasting this feature see its benefits during resale.
“The fireplace is a focal point when people come to see your home,” said Hillary Staats, an interior designer for Sanctuary on Church in Vienna, Va.
That’s why it’s important to make sure that the look of your fireplace has been updated and is working properly. An older looking fireplace that seems an eye-sore can be easily updated.
“There is a lot you can do to enhance the fireplace before a sale. A lot of times, if it has older brick, I will re-stone a fireplace. Other times it could be as simple as changing mantels, adding a fancier screen or placing a beautiful piece of art above it.”
Transformation materials that are inexpensive and easy to work with are tile, manufactured stone, granite, marble and wood. Sometimes even painting over old, ugly brick will make a huge improvement.
“A masonry fireplace can really set a home apart from the rest and significantly improve resale value,” said Larry Kett, owner of Kett’s Hearth and Home in Grand Rapids, Mich. “Adding a mantel also helps. An engaging fireplace and mantel can provide grandeur for an otherwise ho-hum room.”
Keeping the mantel clean and uncluttered is also a must. “You want the fireplace to look inviting but not cluttered, so keep the mantel clear of all photos and knickknacks,” Staats said. “It’s fine to decorate with accessories, but they shouldn’t distract from the fireplace itself.”
If you want to add a fireplace to improve your home’s resale value, consider an electric fireplace as it’s often the least expensive option and reasonably easy to install.
Gas fireplaces are more common today and easy to use, plus they can be installed just about anywhere. There is no need for a chimney, wood or even matches with this type of fireplace and there is no mess to clean up either. Ceramic log kits are efficient and look like the real deal, without ashes to clean up.
Finally, regardless of the season, a fireplace should be kept clean and in working order. “You want your buyer to go home feeling really great about that room and knowing they can move in and sit in front of that wonderful fireplace and hearth,” Staats said. “There are few things as warm and inviting as a burning fire on a wintry day.”
Prudential Fox & Roach is an independently owned and operated member of BRER Affiliates Inc. Used under license with no other affiliation with Prudential. Equal Housing Opportunity. Source.
With winter weather gripping most of the country the fireplace takes on greater importance in the sale of a home.
The National Association of REALTORS® recently conducted a survey that found nearly two-thirds of homebuyers had a fireplace on their wish list. The fireplace has become a coveted amenity and homes boasting this feature see its benefits during resale.
“The fireplace is a focal point when people come to see your home,” said Hillary Staats, an interior designer for Sanctuary on Church in Vienna, Va.
That’s why it’s important to make sure that the look of your fireplace has been updated and is working properly. An older looking fireplace that seems an eye-sore can be easily updated.
“There is a lot you can do to enhance the fireplace before a sale. A lot of times, if it has older brick, I will re-stone a fireplace. Other times it could be as simple as changing mantels, adding a fancier screen or placing a beautiful piece of art above it.”
Transformation materials that are inexpensive and easy to work with are tile, manufactured stone, granite, marble and wood. Sometimes even painting over old, ugly brick will make a huge improvement.
“A masonry fireplace can really set a home apart from the rest and significantly improve resale value,” said Larry Kett, owner of Kett’s Hearth and Home in Grand Rapids, Mich. “Adding a mantel also helps. An engaging fireplace and mantel can provide grandeur for an otherwise ho-hum room.”
Keeping the mantel clean and uncluttered is also a must. “You want the fireplace to look inviting but not cluttered, so keep the mantel clear of all photos and knickknacks,” Staats said. “It’s fine to decorate with accessories, but they shouldn’t distract from the fireplace itself.”
If you want to add a fireplace to improve your home’s resale value, consider an electric fireplace as it’s often the least expensive option and reasonably easy to install.
Gas fireplaces are more common today and easy to use, plus they can be installed just about anywhere. There is no need for a chimney, wood or even matches with this type of fireplace and there is no mess to clean up either. Ceramic log kits are efficient and look like the real deal, without ashes to clean up.
Finally, regardless of the season, a fireplace should be kept clean and in working order. “You want your buyer to go home feeling really great about that room and knowing they can move in and sit in front of that wonderful fireplace and hearth,” Staats said. “There are few things as warm and inviting as a burning fire on a wintry day.”
Prudential Fox & Roach is an independently owned and operated member of BRER Affiliates Inc. Used under license with no other affiliation with Prudential. Equal Housing Opportunity. Source.
Thursday, December 1, 2011
Looking to Buy a Home
Looking to buy a home? Checking out homes for sale is a lot of fun … but it’s also work since you want to choose a home that’s not only going to meet your needs but your budget too. So, what should you do to effectively view homes when you are looking for a house to buy?
First, consider how the home meshes with your wants and desires. The home you purchase needs to be functional for your family when you move in, since major renovations can be very costly. More weight should be given to things that cannot be changed, like location and floor plan. I advise my clients to look at it like a pie chart. 35% location (neighborhood, city, schools, etc) and 35% floor plan. Then move on to secondary items that can be changed such as price and condition and weight them at 15% each. Price can be negotiated and condition can be fixed.
As for the technical aspects of the home, leave that to the professionals. “Also consider that a licensed inspector will be brought in during the Option Period negotiated in the contract. Rely on the professionals and don’t make big decisions based on assumptions. But be sure to work with professionals you are comfortable with and don’t be afraid to ask for references.”
That said, buyers should be cognizant of the work that the home might need. “Aging systems like plumbing or electrical can quickly and easily turn a dream home into a money pit for a buyer who’s been lured in by some great curb appeal or staging.”
–Move.com Sarah W. Caron, Contributing Writer
First, consider how the home meshes with your wants and desires. The home you purchase needs to be functional for your family when you move in, since major renovations can be very costly. More weight should be given to things that cannot be changed, like location and floor plan. I advise my clients to look at it like a pie chart. 35% location (neighborhood, city, schools, etc) and 35% floor plan. Then move on to secondary items that can be changed such as price and condition and weight them at 15% each. Price can be negotiated and condition can be fixed.
As for the technical aspects of the home, leave that to the professionals. “Also consider that a licensed inspector will be brought in during the Option Period negotiated in the contract. Rely on the professionals and don’t make big decisions based on assumptions. But be sure to work with professionals you are comfortable with and don’t be afraid to ask for references.”
That said, buyers should be cognizant of the work that the home might need. “Aging systems like plumbing or electrical can quickly and easily turn a dream home into a money pit for a buyer who’s been lured in by some great curb appeal or staging.”
–Move.com Sarah W. Caron, Contributing Writer
Thursday, November 17, 2011
Costs for First-Time Buyers
Costs for First-Time Buyers
Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.
In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home.
“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”
First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.
Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.
Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.
While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.
Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.
As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.
To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.
In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home.
“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”
First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.
Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.
Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.
While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.
Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.
As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.
To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Wednesday, October 12, 2011
Selling an Ugly Home
Selling an Ugly Home
Let’s say that you inherited an old house in a distant location and want to put it on the market. You may not have the time, resources or energy to make it perfect and just want a quick sale.
Or, maybe you had renters at your property who did substantial damage and you don’t have the money to make necessary renovations.
Fear not. Just because the house needs work doesn’t mean you can’t sell it. Many homebuyers today are shopping for deals and want to see the potential in your home. In that case, leave brochures for new cabinets in the kitchen, color palates around the bedrooms and even create computerized images of what updates could look like.
In addition, secure bids from licensed contractors on necessary fixes and provide them to your potential buyers. People may overestimate the cost of a new roof, shower stall or drywall repair and fresh paint. Estimates will bring the home into clearer perspective.
Work with your real estate agent to make the home as presentable as possible for the least amount of money. Make a room or two inviting so you have the photos that will attract buyers to what you can call “a fixer upper.”
Of course, nothing is going to attract people more than a low price. Obviously, you will need to discount the sales price to gain an advantage over comparables in better condition.
A down-and-out house doesn’t mean you’re stuck. With small repairs, research and practical pricing, you can turn that “Ugly Betty” into a sale.
Prudential
Let’s say that you inherited an old house in a distant location and want to put it on the market. You may not have the time, resources or energy to make it perfect and just want a quick sale.
Or, maybe you had renters at your property who did substantial damage and you don’t have the money to make necessary renovations.
Fear not. Just because the house needs work doesn’t mean you can’t sell it. Many homebuyers today are shopping for deals and want to see the potential in your home. In that case, leave brochures for new cabinets in the kitchen, color palates around the bedrooms and even create computerized images of what updates could look like.
In addition, secure bids from licensed contractors on necessary fixes and provide them to your potential buyers. People may overestimate the cost of a new roof, shower stall or drywall repair and fresh paint. Estimates will bring the home into clearer perspective.
Work with your real estate agent to make the home as presentable as possible for the least amount of money. Make a room or two inviting so you have the photos that will attract buyers to what you can call “a fixer upper.”
Of course, nothing is going to attract people more than a low price. Obviously, you will need to discount the sales price to gain an advantage over comparables in better condition.
A down-and-out house doesn’t mean you’re stuck. With small repairs, research and practical pricing, you can turn that “Ugly Betty” into a sale.
Prudential
Sunday, October 2, 2011
Thursday, September 29, 2011
5 Ways To Make Your Home For Sale Stand Out
With so many homes on the market, it's important to make your home for sale as attractive to potential buyers as possible. Even if your home isn't perfect, following these five guidelines can improve the appeal and value of your home for sale.
1. Clean your home thoroughly and keep it clean!
According to real estate professionals, doing a very thorough deep-cleaning of your home, inside and out, is a great way to make your home appeal to buyers. And just to be clear, by "clean," they don't mean the typical cleaning you might do on a regular basis. Go the extra mile by cleaning every window, every baseboard, cabinets, ceiling fans, etc. Maintain this level of cleanliness until closing, if at all possible. Once you do the majority of the deep cleaning, keeping it clean will be easier as long as you keep up with it regularly. Another option would be to hire a professional cleaning service to do this for you.
2. Have quality, relevant photos on your home's listing.
Since most people browse home listings online first, it is essential to have a good selection of quality photos of your home. Dark or blurry pictures will not do a property justice, and may give the impression that you are trying to hide something. Make sure you or your real estate agent photographs your home's interior AND exterior. Listings that only show one or the other will not make a great online impression. A good rule of thumb is, if there aren't pictures of something, buyers are going to presume it's not worth seeing. Also, it is important to make your photos relevant to what you really want to show off. As nice as your furniture may be, most people don't want to see a photo that makes it the main focus of the picture. Take photos of the entire room, not just one wall or corner.
3. Keep your yard well-maintained.
Curb appeal is a big selling point, especially once a potential buyer visits your home in person. Having a tidy, well-landscaped yard will give your home a nice presentation. If you don't have much or any landscaping in your yard, just do the best you can with what you've got. Spread some fresh mulch around shrubs or flower beds, keep your yard mowed and free of weeds, and invest in a lawn edger if you can. Make sure your yard isn't cluttered by lawn ornaments and decorations. When it comes to presenting a home for sale, less is more. And speaking of clutter...
4. De-clutter your home.
Some real estate agents suggest getting a head start on the packing you'll have to do anyway by going ahead and packing things you won't need for everyday use. You can even rent a storage facility to house any non-essential furniture pieces. Whatever you decide to do, just make sure your home is free of clutter. Don't feel like you have to make your home look like a motel room; a few knickknacks can give your home a "lived in" feel to it. The important thing to remember is not to hide your home's potential. Buyers will want to envision their furniture and their things in your home. This will be much easier for them to do if they aren't distracted by a lot of art on the walls or collections of bric-a-brac.
5. Upgrade, update away!
Take stock of your home's appliances and interior features. Wherever possible, update or upgrade anything that you think is outdated. It will cost money, but not always as much as you think. And remember, whatever you put into your home is an investment and a selling point. This is especially true when it comes to kitchen appliances. If your stove, refrigerator or dishwasher is more than 10 years old - you should seriously consider an update. Many appliances these days are also more energy-efficient, which is something more and more buyers are looking for. In addition to appliances, look at the condition and age of your floors. If you have hardwood, perhaps getting them refinished would be a good idea. If you have old linoleum in your bathrooms, check prices on some new laminate or tile. This principle doesn't just apply to floors and appliances, of course. If you see anything in your home that could use some spiffing up, do it. And you can do it without breaking the bank. Even replacing old carpet with new carpet (even if it isn't top grade) will make a difference.
These are just a few ideas to help your home make a great impression on buyers. Talk to your real estate agent for more ideas, or to get a specific list of things you can do for your property.
Article Alley
1. Clean your home thoroughly and keep it clean!
According to real estate professionals, doing a very thorough deep-cleaning of your home, inside and out, is a great way to make your home appeal to buyers. And just to be clear, by "clean," they don't mean the typical cleaning you might do on a regular basis. Go the extra mile by cleaning every window, every baseboard, cabinets, ceiling fans, etc. Maintain this level of cleanliness until closing, if at all possible. Once you do the majority of the deep cleaning, keeping it clean will be easier as long as you keep up with it regularly. Another option would be to hire a professional cleaning service to do this for you.
2. Have quality, relevant photos on your home's listing.
Since most people browse home listings online first, it is essential to have a good selection of quality photos of your home. Dark or blurry pictures will not do a property justice, and may give the impression that you are trying to hide something. Make sure you or your real estate agent photographs your home's interior AND exterior. Listings that only show one or the other will not make a great online impression. A good rule of thumb is, if there aren't pictures of something, buyers are going to presume it's not worth seeing. Also, it is important to make your photos relevant to what you really want to show off. As nice as your furniture may be, most people don't want to see a photo that makes it the main focus of the picture. Take photos of the entire room, not just one wall or corner.
3. Keep your yard well-maintained.
Curb appeal is a big selling point, especially once a potential buyer visits your home in person. Having a tidy, well-landscaped yard will give your home a nice presentation. If you don't have much or any landscaping in your yard, just do the best you can with what you've got. Spread some fresh mulch around shrubs or flower beds, keep your yard mowed and free of weeds, and invest in a lawn edger if you can. Make sure your yard isn't cluttered by lawn ornaments and decorations. When it comes to presenting a home for sale, less is more. And speaking of clutter...
4. De-clutter your home.
Some real estate agents suggest getting a head start on the packing you'll have to do anyway by going ahead and packing things you won't need for everyday use. You can even rent a storage facility to house any non-essential furniture pieces. Whatever you decide to do, just make sure your home is free of clutter. Don't feel like you have to make your home look like a motel room; a few knickknacks can give your home a "lived in" feel to it. The important thing to remember is not to hide your home's potential. Buyers will want to envision their furniture and their things in your home. This will be much easier for them to do if they aren't distracted by a lot of art on the walls or collections of bric-a-brac.
5. Upgrade, update away!
Take stock of your home's appliances and interior features. Wherever possible, update or upgrade anything that you think is outdated. It will cost money, but not always as much as you think. And remember, whatever you put into your home is an investment and a selling point. This is especially true when it comes to kitchen appliances. If your stove, refrigerator or dishwasher is more than 10 years old - you should seriously consider an update. Many appliances these days are also more energy-efficient, which is something more and more buyers are looking for. In addition to appliances, look at the condition and age of your floors. If you have hardwood, perhaps getting them refinished would be a good idea. If you have old linoleum in your bathrooms, check prices on some new laminate or tile. This principle doesn't just apply to floors and appliances, of course. If you see anything in your home that could use some spiffing up, do it. And you can do it without breaking the bank. Even replacing old carpet with new carpet (even if it isn't top grade) will make a difference.
These are just a few ideas to help your home make a great impression on buyers. Talk to your real estate agent for more ideas, or to get a specific list of things you can do for your property.
Article Alley
Thursday, September 15, 2011
Weighing 30 and 15 Year Fixed Rate Mortgages
Weighing 30- and 15-year Fixed-Rate Mortgages
One important decision homebuyers face is whether to secure a 30-year, fixed-rate mortgage or go for a 15-year one, which carries a lower interest rate.
“All things equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest,” explains Mark Crosby, a mortgage expert in Wilmington, Del. Still, “I think the 30-year mortgage is a logical choice for most people because it has more advantages.”
For starters, mortgage payments are less expensive with a 30-year mortgage, enabling more consumers to qualify for home purchases. “With a 30-year mortgage you are almost always free to make additional principal payments necessary to pay off your loan [faster] without penalty,” Crosby says. “With the 15-year loan, you are committed to giving that extra money to your lender each month, whether you can really afford to at the time or not.”
Higher payments that come with a 15-year mortgage make little sense if they keep you from building savings or contributing to a 401(k) plan, IRA, and perhaps your kids’ college funds, adds Dan Green, a loan officer with Waterstone Mortgage in Laurel, Md. “You could be needlessly tying up too much of your money into your house.”
Green said another reason people favor a 30-year fixed mortgage is the tax benefit that can be achieved. “This is because the amortization schedule of 30-year fixed is back-heavy, with early-term payments big on interest and light in principal,” he explains. “By contrast, the 15-year fixed is always light on interest which lowers its taxpayer benefits.”
While it’s true you gain more of a tax break from a 30-year loan, it shouldn’t be the main consideration when deciding on a term. The 30-year borrower pays less in yearly taxes because he or she pays significantly more in interest.
Sot it all comes down to choice and circumstances. Choose the 15-year loan if you have the financial wherewithal to assume the payments. Your interest savings will be substantial and you’ll own your home faster. Opt for the 30-year loan for lower payments and greater flexibility. You can always choose to pay more on your mortgage when the money is available.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
One important decision homebuyers face is whether to secure a 30-year, fixed-rate mortgage or go for a 15-year one, which carries a lower interest rate.
“All things equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest,” explains Mark Crosby, a mortgage expert in Wilmington, Del. Still, “I think the 30-year mortgage is a logical choice for most people because it has more advantages.”
For starters, mortgage payments are less expensive with a 30-year mortgage, enabling more consumers to qualify for home purchases. “With a 30-year mortgage you are almost always free to make additional principal payments necessary to pay off your loan [faster] without penalty,” Crosby says. “With the 15-year loan, you are committed to giving that extra money to your lender each month, whether you can really afford to at the time or not.”
Higher payments that come with a 15-year mortgage make little sense if they keep you from building savings or contributing to a 401(k) plan, IRA, and perhaps your kids’ college funds, adds Dan Green, a loan officer with Waterstone Mortgage in Laurel, Md. “You could be needlessly tying up too much of your money into your house.”
Green said another reason people favor a 30-year fixed mortgage is the tax benefit that can be achieved. “This is because the amortization schedule of 30-year fixed is back-heavy, with early-term payments big on interest and light in principal,” he explains. “By contrast, the 15-year fixed is always light on interest which lowers its taxpayer benefits.”
While it’s true you gain more of a tax break from a 30-year loan, it shouldn’t be the main consideration when deciding on a term. The 30-year borrower pays less in yearly taxes because he or she pays significantly more in interest.
Sot it all comes down to choice and circumstances. Choose the 15-year loan if you have the financial wherewithal to assume the payments. Your interest savings will be substantial and you’ll own your home faster. Opt for the 30-year loan for lower payments and greater flexibility. You can always choose to pay more on your mortgage when the money is available.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Tuesday, August 2, 2011
The 203K Mortgage
The 203k Mortgage
Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.
Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.
“FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”
There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.
“The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”
Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.
“After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”
Since the 203k mortgage is based on the home’s potential value after repairs -- not its existing value -- you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.
Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.
Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.
“FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”
There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.
“The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”
Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.
“After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”
Since the 203k mortgage is based on the home’s potential value after repairs -- not its existing value -- you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.
Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Monday, July 25, 2011
AVOID FORECLOSURE WITH A SHORT SALE
A short sale is one of the common alternatives used to avoid a foreclosure. It can be an advantage to a homeowner facing foreclosure and who desires to avoid having a foreclosure on a credit record. Short sales are exactly what the term sounds like. When a home is sold for less than what is owed on it the difference between the amount the home sells for and the mortgage loan amount on the home is called a short sale. Thus, if a home's mortgage amount is $400,000 but is sold in a short sale for $200,000 the amount short is $200,000.Getting approval from a lender involves a process of filling out certain documentation and submitting it to the bank or lender's loss mitigation department for consideration and approval of the short sale. It is the bank that has the final say over whether the short sale is approved rather than the homeowner who is selling the property.
The first decision that should be made by a homeowner considering a short sale is whether a short sale is the best solution? If the homeowner simply wants to walk away from the home a deed in lieu of foreclosure may work better. The homeowner simply deeds the property back to the bank. In many cases the bank, in return for a deed in lieu of foreclosure, will pay the homeowner money called "cash for keys". This process allows the bank to avoid substantial fees and costs that would be involved in a foreclosure and provides the homeowner with money that can be used to assist with moving expenses or to begin to rebuild a financial standing. Follow the guidelines below in order to obtain the best results, if a short sale is determined to be the best solution in resolving a foreclosure problem.
1.GET THE BANK OR LENDER'S SHORT SALE PACKAGE.This can be done by simply going to the lender's website and finding it's criteria for submitting a short sale package. Download the package and fill it out. If the homeowner will be represented by a real estate agent, this function and the rest of the steps in this article will generally be handled by the real estate agent. If the homeowner chooses representation by a real estate agent, the homeowner should ensure that the agent is experienced in handling short sales.
2.SHORT SALE DOCUMENTATION.The short sale package should contain at minimum an authorization to release information authorizing the real estate agent to represent and speak on behalf of the homeowner; a completed financial statement, copies of the homeowner's last two years tax returns; the most recent two months bank deposit statements and a hardship letter written by the homeowner that clearly and accurately explains the homeowners' hardship circumstances that justify an approval for a short sale.Without hardship circumstances justifying a hardship it is unlikely the lender will be motivated to approve a short sale. The bank also generally requires the homeowner to submit an IRS Form 4506T which permits the bank to obtain copies of past tax returns. These documents generally make up the short sale package. Some banks or lenders may require additional documents in which case they should simply be provided.
3. MAKE THE SHORT SALE PACKAGE ATTRACTIVE FOR MAXIMUM RESULTS!Presentation of the short sale package is an important step. Appearance and perception of the package is crucial. The package should be submitted with a cover letter requesting short sale consideration with a table of contents and tabs separating the various documents. This presents a professional appearance and is helpful to the negotiator assigned to review the package and to determine whether to recommend approval or declination of the short sale.Take care to make the negotiator's job as easy as possible and not have to search for information within the package. Tabulation serves this purpose well and will be appreciated by the negotiator.Although not always required, it is also a good idea to wait until there is a bona fide offer from a qualified buyer before submitting the short sale package. The offer should also be accompanied with a HUD-1 statement also. A HUD-1 statement will show the bank what it can likely expect to receive as a final amount resulting in a short sale.An experienced real estate agent will know what to do in submitting these documents. If the homeowner chooses to handle it personally, help should be sought directly from an escrow company or closing agent who will usually be glad to assist in preparation of the HUD-1 in return for the fees in closing or handling the escrow.
4.ESTABLISHING AND MAINTAINING RAPPORT WITH THE SHORT SALE NEGOTIATOR.Once the short sale package is submitted to the bank's loss mitigation department a negotiator will be assigned. It is important to establish a good relationship with this person because the success or failure of the short sale rides on an approval recommendation from the negotiator.Be courteous and professional at all times and provide additional documentation when requested so long as it is reasonable and it makes sense. Most negotiators are professional and courteous and will be helpful when they perceive the same from the homeowner's side.
5.CLOSING THE DEAL AND WALKING AWAY.If all goes well the short sale will be approved. The homeowner will be able to walk away without a foreclosure on the record and to commence rebuilding a favorable financial record.
copyright article alley
The first decision that should be made by a homeowner considering a short sale is whether a short sale is the best solution? If the homeowner simply wants to walk away from the home a deed in lieu of foreclosure may work better. The homeowner simply deeds the property back to the bank. In many cases the bank, in return for a deed in lieu of foreclosure, will pay the homeowner money called "cash for keys". This process allows the bank to avoid substantial fees and costs that would be involved in a foreclosure and provides the homeowner with money that can be used to assist with moving expenses or to begin to rebuild a financial standing. Follow the guidelines below in order to obtain the best results, if a short sale is determined to be the best solution in resolving a foreclosure problem.
1.GET THE BANK OR LENDER'S SHORT SALE PACKAGE.This can be done by simply going to the lender's website and finding it's criteria for submitting a short sale package. Download the package and fill it out. If the homeowner will be represented by a real estate agent, this function and the rest of the steps in this article will generally be handled by the real estate agent. If the homeowner chooses representation by a real estate agent, the homeowner should ensure that the agent is experienced in handling short sales.
2.SHORT SALE DOCUMENTATION.The short sale package should contain at minimum an authorization to release information authorizing the real estate agent to represent and speak on behalf of the homeowner; a completed financial statement, copies of the homeowner's last two years tax returns; the most recent two months bank deposit statements and a hardship letter written by the homeowner that clearly and accurately explains the homeowners' hardship circumstances that justify an approval for a short sale.Without hardship circumstances justifying a hardship it is unlikely the lender will be motivated to approve a short sale. The bank also generally requires the homeowner to submit an IRS Form 4506T which permits the bank to obtain copies of past tax returns. These documents generally make up the short sale package. Some banks or lenders may require additional documents in which case they should simply be provided.
3. MAKE THE SHORT SALE PACKAGE ATTRACTIVE FOR MAXIMUM RESULTS!Presentation of the short sale package is an important step. Appearance and perception of the package is crucial. The package should be submitted with a cover letter requesting short sale consideration with a table of contents and tabs separating the various documents. This presents a professional appearance and is helpful to the negotiator assigned to review the package and to determine whether to recommend approval or declination of the short sale.Take care to make the negotiator's job as easy as possible and not have to search for information within the package. Tabulation serves this purpose well and will be appreciated by the negotiator.Although not always required, it is also a good idea to wait until there is a bona fide offer from a qualified buyer before submitting the short sale package. The offer should also be accompanied with a HUD-1 statement also. A HUD-1 statement will show the bank what it can likely expect to receive as a final amount resulting in a short sale.An experienced real estate agent will know what to do in submitting these documents. If the homeowner chooses to handle it personally, help should be sought directly from an escrow company or closing agent who will usually be glad to assist in preparation of the HUD-1 in return for the fees in closing or handling the escrow.
4.ESTABLISHING AND MAINTAINING RAPPORT WITH THE SHORT SALE NEGOTIATOR.Once the short sale package is submitted to the bank's loss mitigation department a negotiator will be assigned. It is important to establish a good relationship with this person because the success or failure of the short sale rides on an approval recommendation from the negotiator.Be courteous and professional at all times and provide additional documentation when requested so long as it is reasonable and it makes sense. Most negotiators are professional and courteous and will be helpful when they perceive the same from the homeowner's side.
5.CLOSING THE DEAL AND WALKING AWAY.If all goes well the short sale will be approved. The homeowner will be able to walk away without a foreclosure on the record and to commence rebuilding a favorable financial record.
copyright article alley
Saturday, July 2, 2011
FIVE TIPS FOR A GREEN HOME
Five Tips for a Green Home
Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:
Change Your Light Bulbs
By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.
Buy ENERGY STAR® Appliances
ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.
Seal Up
Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.
Use Less Water
Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.
Adjust the Thermostat
When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.
Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:
Change Your Light Bulbs
By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.
Buy ENERGY STAR® Appliances
ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.
Seal Up
Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.
Use Less Water
Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.
Adjust the Thermostat
When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.
Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Friday, June 3, 2011
Work with A Realtor When Purchasing in an Active Adult Community
Most prospective buyers do not know the answer to this and we need to get the word out to retired folks that are in the market. Finding the perfect retirement community is a process and the more knowledge you have the better your experience will be.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
Wednesday, March 9, 2011
Why work with a Realtor for an Active Adult Community
Most prospective buyers do not know the answer to this and we need to get the word out to retired folks that are in the market. Finding the perfect retirement community is a process and the more knowledge you have the better your experience will be.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
Friday, March 4, 2011
Good Faith Estimate Vs HUD-1
Good Faith Estimate Vs HUD-1
There are a couple of documents you will hear about when you are buying a home. One is the Good Faith Estimate and the other is the HUD-1 Settlement Statement. Aren't they the same thing you may ask? No they are not, although they are used for figuring the closing costs on the home you are about to buy. Let me explain the difference between these two documents.
The Good Faith Estimate
Very simply, the good faith estimate (also know as the GFE) is a list of estimated items and their fees to close on the mortgage. You use this to compare apples to apples in deciding which lender you want to go with. Once again it is just an estimate of the closing costs associated with the mortgage. You are to be given this estimate within three days of completing the loan application.
Now to compare apples to apples you will need another document. This document is called the Truth in Lending Disclosure Statement (TIL). This document discloses all the costs associated with making and closing the loan. This document is also to be given to you within three days of the loan application.
With both these documents you can now compare lenders to find the best deal for you.
The HUD-1 Settlement Statement
This is a form listing the FINAL settlement of those closing costs you will need to pay to close on your mortgage and buy that home you are looking forward to.
You should get a copy of this form a day prior to closing to inspect according to the Real Estate Settlement Procedures Act (RESPA). Now you can compare this final document with the estimate document and the TIL document. This gives you the opportunity to question your lender or broker about any differences you may find.
No one is perfect so errors do happen. That is why you want to look at this document closely. If you have any questions, ask the closing agent to explain the item to you. Unfortunately, you don't have a lot of time before the closing to do this. So ask away and be persistent to be sure your final settlement statement is accurate.
What items are on a HUD-1
You will find items like the commissions paid to the real estate agencies, your home closing costs, those items required by the lender, title charges, recording fees, the gross sale price of the home and the total amount due the lender to name just a few.
You will also see a section that lists the items paid outside of closing (POC). These particular fees can include what are sometimes called "junk fees." Take a close look at these charges to be sure they match what you agreed to on the Good Faith Estimate. Many times this is where you might find those "unnecessary" fees. Be sure you understand these.
Conclusion
Although both the Good Faith Estimate and the HUD-1 Settlement Statement are similar, their purposes are very different. Remember, one is an estimate of those fees you will need to pay to close on your loan and the other is a list of the actual final fees you must settle close on your mortgage.
Article Alley
There are a couple of documents you will hear about when you are buying a home. One is the Good Faith Estimate and the other is the HUD-1 Settlement Statement. Aren't they the same thing you may ask? No they are not, although they are used for figuring the closing costs on the home you are about to buy. Let me explain the difference between these two documents.
The Good Faith Estimate
Very simply, the good faith estimate (also know as the GFE) is a list of estimated items and their fees to close on the mortgage. You use this to compare apples to apples in deciding which lender you want to go with. Once again it is just an estimate of the closing costs associated with the mortgage. You are to be given this estimate within three days of completing the loan application.
Now to compare apples to apples you will need another document. This document is called the Truth in Lending Disclosure Statement (TIL). This document discloses all the costs associated with making and closing the loan. This document is also to be given to you within three days of the loan application.
With both these documents you can now compare lenders to find the best deal for you.
The HUD-1 Settlement Statement
This is a form listing the FINAL settlement of those closing costs you will need to pay to close on your mortgage and buy that home you are looking forward to.
You should get a copy of this form a day prior to closing to inspect according to the Real Estate Settlement Procedures Act (RESPA). Now you can compare this final document with the estimate document and the TIL document. This gives you the opportunity to question your lender or broker about any differences you may find.
No one is perfect so errors do happen. That is why you want to look at this document closely. If you have any questions, ask the closing agent to explain the item to you. Unfortunately, you don't have a lot of time before the closing to do this. So ask away and be persistent to be sure your final settlement statement is accurate.
What items are on a HUD-1
You will find items like the commissions paid to the real estate agencies, your home closing costs, those items required by the lender, title charges, recording fees, the gross sale price of the home and the total amount due the lender to name just a few.
You will also see a section that lists the items paid outside of closing (POC). These particular fees can include what are sometimes called "junk fees." Take a close look at these charges to be sure they match what you agreed to on the Good Faith Estimate. Many times this is where you might find those "unnecessary" fees. Be sure you understand these.
Conclusion
Although both the Good Faith Estimate and the HUD-1 Settlement Statement are similar, their purposes are very different. Remember, one is an estimate of those fees you will need to pay to close on your loan and the other is a list of the actual final fees you must settle close on your mortgage.
Article Alley
Saturday, February 5, 2011
Home Sellers: Five Tips to Make Your Bathroom Stand Out
Home Sellers: Five Tips to Make Your Bathroom Stand Out
Every homebuyer has a vision of their perfect house and the rooms that are most important to them. Because of their relatively small size in comparison to the rest of a home, bathrooms are often overlooked in the staging process, but for many, it could be the most important room in a buying decision. A bathroom is more than just a place for grooming; it’s a sanctuary. It’s a place one can relax in a hot bath and escape the stresses of daily life for a few moments at a time. Updating a tired-looking bathroom is one of the best things you can do to increase a home’s resale value and the fixes are not too costly or labor intensive. Easy fixes include adding new, luxurious-looking towels, replacing the shower curtain and adding candles around a bathtub. However, with a little more money and effort, your bathroom can become a talking point of the house. Here is a look at five great ways to upgrade a bathroom.
Every homebuyer has a vision of their perfect house and the rooms that are most important to them. Because of their relatively small size in comparison to the rest of a home, bathrooms are often overlooked in the staging process, but for many, it could be the most important room in a buying decision. A bathroom is more than just a place for grooming; it’s a sanctuary. It’s a place one can relax in a hot bath and escape the stresses of daily life for a few moments at a time. Updating a tired-looking bathroom is one of the best things you can do to increase a home’s resale value and the fixes are not too costly or labor intensive. Easy fixes include adding new, luxurious-looking towels, replacing the shower curtain and adding candles around a bathtub. However, with a little more money and effort, your bathroom can become a talking point of the house. Here is a look at five great ways to upgrade a bathroom.
1. Beautify:
By adding decorative glass, stone tile or accents to the bathroom, it will stand out among the other houses in the neighborhood that are for sale. Extra-wide wall tiles are popular these days and wood cabinets can be beautifully embellished with intricately carved wooden inlays.
2. Lighting:
Add more lighting options around the room, especially around the vanity to reduce shadows and glaring. This is something that isn’t too expensive and can really highlight the positive features of a bathroom. Mood lighting around the tub area is also increasing in popularity.
3. Bath/Shower:
It’s not too often you hear someone complaining about a bathtub being too large, and that’s because there’s nothing better than coming home from a hard day’s work and relaxing in a big soothing tub. By putting in a new tub and creating more of a spa-like atmosphere, you will have buyers imagining themselves washing their cares away. Adding a massage element to the showerhead or one that replicates rain showers is also something that will appeal to buyers.
4. Update Fixtures:
Not as costly as some of the other tips, changing out the fixtures in a bathroom can add a great deal. From cabinet handles to faucets, the addition of brushed nickel or other metals that are polished and elegant are always a huge hit. And if space permits, add a second sink.
5. Think Green:
The bathroom is a prime place to start putting those environmentally friendly devices to work. Installing fixtures that save water, such as a low-flow showerhead, a low-flow faucet aerator, and a dual-flush toilet, can save thousands of gallons of water each year. Adding energy-efficient windows is another easy option, since the size of bathroom windows are relatively small. Another fix that is both decorative and energy efficient is the addition of natural stone flooring, which helps keep cool in during the summer, and heats the bathroom longer during the winter. When buyers walk into a renovated bathroom that exudes quality and offers an intimate, contemporary feel, it’s one of the top things that people will remember about a home.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc.
Wednesday, February 2, 2011
Short Sales, Reos Or Motivated Sellers, Which Is More Profitable?
Short Sales, Reos Or Motivated Sellers, Which Is More Profitable?
In a market full of mortgages going into default, a lot of real estate investors are never sure which way to go to get the best deals.
Do you get foreclosed REOs from the bank? Should you negotiate short sales to buy the houses for less than the mortgage balance? Or should you buy directly from the motivated sellers?
We will analyze these 3 situations here.
These 3 methods all have their pros and cons; let's analyze each one:
1) Buying foreclosed houses from banks - REOs Banks have too many foreclosed properties and they increase in number every day. As soon as they acquire them, they then try to sell them quickly.
Buyers are few and these properties can take a long time to sell.
Banks can therefore offer great discounts, especially if they need to be fixed up.
As a real estate investor, shop carefully for good REO deals because not all them will meet your buying criteria or equity margin for you to make a profit.
2) Short Sales Banks foreclose on homes when home owners are unable to pay. Before they foreclose, they are often willing to take less than the mortgage balance. This is called a short sale.
A bank will order an appraisal to get the true market value of the property. Then they can give you a discount on the mortgage based on their numbers.
A bank that holds a first mortgage is likely to offer very little discount on the mortgage, usually not more than 20% especially if it does not need major repairs.
A bank that holds a second mortgage can lose 100% of their investment in a foreclosure, so they are more willing to negotiate much lower. It is not unusual to get 80-90% discount on a second mortgage.
A property with more than one mortgage is therefore the best candidate for a short sale.
Short sales can also take a long time, usually 3 to 6 months. You must therefore have enough patience and capital to last you through such long waiting periods.
Banks can reject your short sale application even when all numbers look good. You must therefore be ready for rejection.
You must close fast as soon as you get an approval. Banks will not accept creative financing on short sales.
When all is said and done, you can create a lot of equity and profits as long as you select the right deals, have patience to wait for a long time, can take rejection and you can close fast.
3) Motivated sellers You can employ a wide variety of techniques to buy houses from motivated sellers.
This includes creative financing.
This is always a great way to buy investment houses as long as the sellers are in need of selling their houses.
Article Alley
Author: Kahethu
In a market full of mortgages going into default, a lot of real estate investors are never sure which way to go to get the best deals.
Do you get foreclosed REOs from the bank? Should you negotiate short sales to buy the houses for less than the mortgage balance? Or should you buy directly from the motivated sellers?
We will analyze these 3 situations here.
These 3 methods all have their pros and cons; let's analyze each one:
1) Buying foreclosed houses from banks - REOs Banks have too many foreclosed properties and they increase in number every day. As soon as they acquire them, they then try to sell them quickly.
Buyers are few and these properties can take a long time to sell.
Banks can therefore offer great discounts, especially if they need to be fixed up.
As a real estate investor, shop carefully for good REO deals because not all them will meet your buying criteria or equity margin for you to make a profit.
2) Short Sales Banks foreclose on homes when home owners are unable to pay. Before they foreclose, they are often willing to take less than the mortgage balance. This is called a short sale.
A bank will order an appraisal to get the true market value of the property. Then they can give you a discount on the mortgage based on their numbers.
A bank that holds a first mortgage is likely to offer very little discount on the mortgage, usually not more than 20% especially if it does not need major repairs.
A bank that holds a second mortgage can lose 100% of their investment in a foreclosure, so they are more willing to negotiate much lower. It is not unusual to get 80-90% discount on a second mortgage.
A property with more than one mortgage is therefore the best candidate for a short sale.
Short sales can also take a long time, usually 3 to 6 months. You must therefore have enough patience and capital to last you through such long waiting periods.
Banks can reject your short sale application even when all numbers look good. You must therefore be ready for rejection.
You must close fast as soon as you get an approval. Banks will not accept creative financing on short sales.
When all is said and done, you can create a lot of equity and profits as long as you select the right deals, have patience to wait for a long time, can take rejection and you can close fast.
3) Motivated sellers You can employ a wide variety of techniques to buy houses from motivated sellers.
This includes creative financing.
This is always a great way to buy investment houses as long as the sellers are in need of selling their houses.
Article Alley
Author: Kahethu
Monday, January 24, 2011
Tips for Buying a Home in a 55 plus Community.
Buying in a 55+ community will be very similar to buying in any community but there are some differences to be aware of.
Assuming you already know the 55+ community you are interested in, just looking within the community itself, here are some questions to explore when buying a home:
1. Find out about the monthly homeowner's association fee; what does it cover, how much is it and when is it expected to go up. If the community is older, find out if any special assessments are coming up or expected.
2. Get a copy of the homeowner association documents. Before you buy, review the rules of the association. Find out the rule for any areas of special interest to you, like pets, additions like building a patio or fence, visitors, children, leasing your property, etc.
3. Find out about the amenities. Remember in this economy many clubhouses and other amenities that were planned will not get build for some time, if ever.
4. Find out about activities offered. How often, what types, any extra fees?
5. Look at resales, not just brand new properties. Maybe you can get a deal on a resale that has been upgraded substantially. Preview listings with a resale real estate agent and ask questions about the property and the community as well.
6. Talk with the current owners/residents to see how happy they are living in the community and how happy you will be living with them. Are they your age? People love to talk, so ask questions.
7. Find out about the cost of utilities and any related cost of ownership.
8. Find out the cost of any upgrades, which appliances, counter tops, floor coverings, etc come with the property.
9. For newer communities, how strong is the builder and/or developer of the community? Is the community just getting started and right after you buy if goes in to foreclosure, will the community be a ghost town? There is less risk in a community that is further along in its development.
10. Remember buyer's agents also handle 55+ homes.
I hope these questions will help in your search process.
Copyright 55communityguide.com
Assuming you already know the 55+ community you are interested in, just looking within the community itself, here are some questions to explore when buying a home:
1. Find out about the monthly homeowner's association fee; what does it cover, how much is it and when is it expected to go up. If the community is older, find out if any special assessments are coming up or expected.
2. Get a copy of the homeowner association documents. Before you buy, review the rules of the association. Find out the rule for any areas of special interest to you, like pets, additions like building a patio or fence, visitors, children, leasing your property, etc.
3. Find out about the amenities. Remember in this economy many clubhouses and other amenities that were planned will not get build for some time, if ever.
4. Find out about activities offered. How often, what types, any extra fees?
5. Look at resales, not just brand new properties. Maybe you can get a deal on a resale that has been upgraded substantially. Preview listings with a resale real estate agent and ask questions about the property and the community as well.
6. Talk with the current owners/residents to see how happy they are living in the community and how happy you will be living with them. Are they your age? People love to talk, so ask questions.
7. Find out about the cost of utilities and any related cost of ownership.
8. Find out the cost of any upgrades, which appliances, counter tops, floor coverings, etc come with the property.
9. For newer communities, how strong is the builder and/or developer of the community? Is the community just getting started and right after you buy if goes in to foreclosure, will the community be a ghost town? There is less risk in a community that is further along in its development.
10. Remember buyer's agents also handle 55+ homes.
I hope these questions will help in your search process.
Copyright 55communityguide.com
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