1. 
   Make the Most of that First Impression
   A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future Dividends
   Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home really looks than hear how great it COULD look, “with a little work.”
3. Check Faucets and Bulbs
   Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned out bulbs leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
4. Don’t Shut Out a Sale
   If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
5. Think Safety
   Homeowners learn to live with all kinds of self-set booby traps: rollerskates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
6. Make Room for Space
   Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your Closets
   The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathrooms Sparkle
   Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats and shower curtains.
9. Create Dream Bedrooms
   Wake-up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful beadspreads and fresh curtains are a must.
10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at Night
    Turn on the excitement by turning on all your lights – both inside and outside – when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they’re likely to hurry through. Keep the company to a minimum.
13. Watch Your Pets
    Dogs and cats are great companions, but not when you’re showing your home. Pets have a talent for getting underfoot. Do everybody a favor: keep Kitty and Spot outside, or at least out of the way.
14. Think Volume
    Rock-and-roll will never die, but it might kill a real estate transaction. When it’s time to show your home, it’s time to turn down the stereo or TV.
15. Relax
    If you must be present at the time of your showing, be friendly, but don’t try to force conversation. Prospects want to view your home with a minimum of distraction.
16. Don’t Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home’s appearance, let your REALTOR handle the situation.
17. Keep a Low Profile
    Nobody kows your home as well as you do. But your REALTOR knows buyers – what they need and what they want. Your REALTOR will have an easier time articulating the virtues of your home if you stay in the background.
18. Don’t Turn Your Home Into a Second-Hand Store
    When prospects come to view your home, don’t distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to Experience
    When prospects want to talk price, terms, or other real estate matters, let them speak to an expert.
20. Help Your Agent
    Your REALTOR will have an easier time selling your home if showings are scheduled through our office. You’ll appreciate the results!

Share this:

What Is An Escrow?

When opening an escrow, the Buyer and Seller of a piece of property establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a third party known as the Escrow Holder. The Escrow Holder has the responsibility of seeing that the terms of the escrow are carried out. The escrow is an independent, neutral account, and the vehicle by which the mutual instructions of all parties to the transaction are complied with.

How Does The Escrow Process Work?

The escrow is a depository for all monies, instructions, and documents necessary for the sale of your home. This includes the Buyer providing funds for a down payment with the Escrow Holder, and Seller depositing the Deed and any other necessary papers with the Escrow Holder. Prior to the close of escrow, the Buyer deposits the funds required and agreed upon by the parties to the sale with the Escrow Holder. The Buyer instructs the Escrow Holder to deliver the money to the Seller when the Escrow Holder:

1.         Records the deed and,

2.         Delivers to the Buyer a policy of title insurance which shows title to theproperty vested in the name of the Buyer.

The Escrow Holder is authorized to deliver the Deed to the Buyer when the Buyer has deposited the agreed upon purchase price and fulfilled any other conditions specified in the escrow instructions. The Escrow Holder effects the prorations and adjustments on any fire/hazard insurance, real estate taxes, rents, interest, etc., based on the escrow instructions of both parties.

The Escrow Holder thus acts for both parties, and protects the interests of each within the authority of the escrow instructions. Escrow cannot be completed until the instructions have been satisfied and all parties have signed escrow documents. The Escrow Holder takes instructions based on the terms of the Purchase Agreement and Lenders requirements.

How Do I Open An Escrow?

Generally, the Buyers Real Estate Agent will open the escrow. As soon as you execute the Purchase Agreement, the Selling Agent will place the Buyers initial deposit, if any, into the escrow account.

What Information Will I Have To Provide?

You may be asked to complete a Statement of Information as part of the necessary paperwork. Due to the fact that many people have the same names; the Statement of Identity is used to identify the specific person in the transaction through such information as date of birth, social security number, etc. This information is kept confidential.

What Do I Need To Do Before My Appointment To Sign The Deed?

All parties signing the documents must bring proper identification. Please bring either your valid drivers license, state identification card, or current passport with you to the escrow company. This item is needed to verify your identity by a notary public. This is a routing, but necessary step for your protection.

When Do I Sign Escrow Instructions And Where Do I Do This?

Generally, your escrow instructions are emailed to you.

How Long Is An Escrow?

The length of an escrow is determined by the terms of the Purchase Agreement and can range from a few days to several months. An escrow often averages 60 to 90 days.

What Is Close of Escrow?

An escrow closing is the culmination of the transaction. It signifies the legal transfer of title from the Seller to the Buyer.

Generally, both the Grant Deed and the Deed of Trust are recorded within one working day of the Escrow Holders receipt of loan funds. This completes the transaction and signifies the close of escrow. Once all conditions of the escrow have been satisfied, the Escrow Officer informs you or your agent of the date escrow will close, and takes care of the technical and financial details.

Share this:

1)      Remember to put away valuables and lock up expensive personal belongings.  Although most people looking at your home to purchase will be legitimate home buyers.  Some people maybe on the prowl to see what you have.  Make sure you don’t provide any type of opportunity for the wrong person to see items of interest.

2)      Have the proper forms ready to go.  You are selling your home on your own and it is important to remember that some buyers are ready to buy on the spot and if you wait too long the interest could cool down and buyers remorse could set in.  If you are planning on being a for sale buy owner you need to be ready for the proper forms to be completed and signed so that your potential buyer can be locked in place before they find another property.  Make sure your attorney prepared the sellers disclosure, contract for sale, lead based paint addendum if your home was built prior to 1978 along with all of the other state and local disclosure and form requirements.

3)      Don’t lock yourself into contingencies issues the buyer might have.  Most contracts normally have contingency clauses and paragraphs for the buyer.  For example, how long do they have to apply for a loan?  How long do they have to get loan approval?  Is the contract contingent upon the sale of another sale and if so how long and is their home under contract?  These are all areas you should research and investigate prior to signing any legal document prior to locking yourself into a lengthily contract and possible loosing another qualified good purchaser

4)      Complete a seller’s disclosure in advance.  Although this may not be a requirement in every state or local municipality it is a good idea to provide the potential buyer with a detailed seller’s disclosure about your home.  Make sure that you have the proper forms prepared by your attorney and completed in an honest and detailed manor so that there is no chance the buyers could come back at a later date requesting you to correct or repair.

5)      Have a detailed marketing flyer placed in a flyer box outside your property.  Sometimes good prospects will drive by your home with and interest or unwell to call or notify you if you are working with an agent.  It only makes since that most real estate agents will be promoting or pushing properties they have listed since that is their fiduciary obligation and will avoid for sale by owners since there is a fear that they may not be paid a fee if that is the home the buyer chooses.  By having a flyer out front you can encourage potential prospects to stop and pick up a marketing brochure that might entice them further to call you to look at your home.  Because of the complexity and time it takes to construct a marketing brochure I am making available to you twenty five free copies and my services to build marketing flyer for your property.  I have several flyer templates that I can use to help build this marketing flyer for you and again there is no cost and no obligation for you to list your property with our company.  It is just a small token of appreciate that I want to show and to have the opportunity to visit with you about my marketing ideas and strategies should you decide to list your real estate with the firm in the future.  I would need to schedule a short appointment to take an outside picture and to get a few details for the flyer at your convenience.  Again, the flyer template and the first twenty five copies are FREE and on me.

Share this:

Tips on How to Price Your Home

_ Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, up keep, and amenities?

_Consider competition. How many other houses are for sale in your area? Are you competing against new homes?

_Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?

_Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (www.AppraisalInstitute.org) or ask a REALTORÒ for some recommendations.

_Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.

_Be accurate. Studies show that homes priced higher than 3 percent over the correct price take longer to sell.

_Know what you’ll accept. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.

Share this:

Eight steps to buying your home

1. Decide to buy.

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best “accidental investment” most people ever make. But, we believe when it is done right, home ownership becomes an “intentional investment” that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

1. If you are paying rent, you very likely can afford to buy

2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run

3. The lack of a substantial down payment doesn’t prevent you from making your first home purchase

4. A less-than-perfect credit score won’t necessarily stop you from buying a home

5. The best way to get closer to buying your ultimate dream home is to buy your first home now

6. Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way

2. Hire your agent.

The typical real estate transaction involves at least two dozen separate individuals – insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent

A Buyer’s Real Estate Agent:

1. Educates you about your market.

2. Analyzes your wants and needs.

3. Guides you to homes that fit your criteria.

4. Coordinates the work of other needed professionals.

5. Negotiates on your behalf.

6. Checks and double-checks paperwork and deadlines.

7. Solves any problems that may arise.

Eight important questions to ask your agent

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

1. Why did you become a real estate agent?

2. Why should I work with you?

3. What do you do better than other real estate agents?

4. What process will you use to help me find the right home for my particular wants and needs?

5. What are the most common things that go wrong in a transaction and how would you handle them?

6. What are some mistakes that you think people make when buying their first home?

7. What other professionals do you suggest we work with and what are their credentials?

8. Can you provide me with references or testimonials from past clients?

3. Secure financing.

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to Financing a Home

1. Choose a loan officer (or mortgage specialist).

2. Make a loan application and get preapproved.

3. Determine what you want to pay and select a loan option.

4. Submit to the lender an accepted purchase offer contract.

5. Get an appraisal and title commitment.

6. Obtain funding at closing.

4. Find your home.

You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long – if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

1. What do I want my home to be close to?

2. How much space do I need and why?

3. Which is more critical: location or size?

4. Would I be interested in a fixer-upper?

5. How important is home value appreciation?

6. Is neighborhood stability and priority?

7. Would I be interested in a condo?

8. Would I be interested in new home construction?

9. What features and amenities do I want? Which do I really need?

5. Make an offer.

When searching for your dream home, you were just that – a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies (or “conditions” in Canada).

Price – the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.

Terms – the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

1. Schedule – a schedule of events that has to happen before closing.

2. Conveyances – the items that stay with the house when the sellers leave.

3. Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.

4. Closing costs – it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.

5. Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.

6. Earnest money – this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

6. Perform due diligence.

Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.

A home owner’s insurance policy protects you in two ways:

1. Against loss or damage to the property itself

2. liability in case someone sustains an injury while on your property

The property inspection show expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.

· Your major concern is structural damage.

· Don’t sweat the small stuff. Things that are easily fixed can be overlooked.

· If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

7. Close.

The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few preclosing responsibilities:

1. Stay in control of your finances.

2. Return all phone calls and paperwork promptly.

3. Communicate with your agent at least once a week.

4. Several days before closing, confirm with your agent that all your documentation is in place and in order.

5. Obtain certified funds for closing.

6. Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:

1. Finalize your mortgage.

2. Pay the seller.

3. Pay your closing costs.

4. Transfer the title from the seller to you.

5. Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

8. Protect your investment.

Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.

Even after you close on your house, you agent can still help you:

1. Handle your first tax return as a home owner.

2. Find contractors to help with home maintenance or remodeling.

3. Help your friends find homes.

4. Keep track of your home’s current market value.

Attention to you home’s maintenance needs is essential to protecting the long-term value of your investment.

Home maintenance falls into two categories:

1. Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.

2. Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.

What is a CMA and Why Do You Need One?

CMA is real estate shorthand for “Comparative Market Analysis”. A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.

The first thing an agent will need to do to provide you with a CMA is to inspect your property. Generally, this inspection won’t be overly detailed (she or he is not going to crawl under the house to examine the foundation), nor does the house need to be totally cleaned up and ready for an open house. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, inform the agent at this time.

The next step is for the agent to obtain data on comparable properties. This data is usually available through MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.

The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.

CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. Owners who are upgrading or remodeling can benefit from a CMA when it’s used to see if the intended changes will “over-improve” their property compared to others in the neighborhood.

Types of Mortgages

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.

· Fixed-Rate Mortgages

· Adjustable-Rate Mortgages

· The Convertible ARM

· FHA and VA Loan

Fixed Rate Mortgages

Consider a fixed rate mortgage if either of the following describes you:

· You plan on living in your new home for many years, and/or

· You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you’ll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low, you’ll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

15-Year Fixed-Rate:

o Pay off the loan in half the time of a 30-year loan.

o Equity builds up more quickly than in a 30-year loan.

o Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

o Pay off the loan in 2/3 the time of a 30-year loan.

o The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:

o The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualify for.

o Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.

o More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.

o For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs)

If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate.

Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.

Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up.

Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means.

Fortunately, the amount an ARM can increase is limited. There are “caps” on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Plan ahead, and have your lender calculate what the maximum payment would be if your rate went to the highest amount allowed by the cap for your particular mortgage. If you are not confident you’ll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.

Convertible ARMs

If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.

Government Loans

Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

o VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.

o FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase “FHA approved” when looking at ads for homes.

How to Negotiate with Sellers

Buying a home is one of the most important purchases most people will make. In order to make the right decision the first time, potential buyers need to be prepared. Consider the following before starting negotiations:

· Be prepared

Research the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:

1. Why is the homeowner selling? (If they’re moving because they find the area undesirable, you might want to consider this issue.)

2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)

3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)

4. What is the seller’s time frame for selling and moving? Does it fit within your needs?

5. Are there any defects in the home or problems with the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)

As the potential buyer, you want the advantage. While you want answers to all your questions to the seller, reveal very little about your circumstances. Do not give the seller personal information such as your income, the maximum you are able to pay for a down payment or the home, or when you want to move. Make sure that your agent knows not to reveal any such information to the seller or his/her agent.

Also, do not let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller then has the stronger bargaining position. When meeting with the seller or listing agent, keep your emotions in check.

· Establish a Timeline

Find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, use that to your advantage in negotiating. Even if you, the buyer, are the one with the deadline for purchasing a home, don’t let yourself be rushed into making concessions or a purchase you may regret later.

Share this:

For the first time home buyer, buying your first home is one of the most exciting things you will ever do. If you have spent years living in apartments, there is nothing more satisfying than owning your own property. The process can be a little lengthy and you might hit a few bumps in the road to home ownership. The following tips will help the first time homeowner avoid some of the hiccups.

Step one is to talk to a real estate agent about the home buying process. It should not be a sales meeting and you should be able to find an agent that will agree to meet with you about the basics without having to sign a sales agreement with them. If you cannot find a good agent to talk to, you might want to consider talking to a loan officer at your bank or a mortgage broker.

An equally important tip is to get your finances in order before you apply for a mortgage. Order a copy of your credit report so you can check it for accuracy. Mistakes are common and you want to make sure that there is no fraudulent activity. You have the right to dispute errors on your credit report. If you come across something that you know is an error, circle it and send it to the reporting agency along with a letter of dispute.

Next, you should really study the mortgage industry. You need to be able to find the right loan and lender most suitable for your needs. Familiarize yourself with industry terms like debt to income ratio and adjustable rate mortgage. Learn the difference between pre-approval and pre-qualified. It will all seem foreign at first, but taking the time to learn the business will spare you from headaches in the future.

Also, you need to figure out what your wants and needs are. What kinds of amenities are you looking for? How many bedrooms? One story or two story home? You also need to consider the size of the down payment and figure out what you need to do to come up with the money for it.

You must learn about how real estate agents work. There are buyers agents and sellers agents. A buyers agents responsibility is to negotiate the best deal for the buyer. The goal of the sellers agent is to get the price that the seller most desires. The best way to find the right agent is to ask your friends for suggestions. They have all probably been in the same boat, so they can probably recommend a good real estate agent.

When meeting with a potential agent, pay attention to how they treat you. Make sure they listen to you when you talk about what you want. Also, how are their follow up skills? Do they take the time to return your calls or emails? If they do not take the time to respond, move on. There is a better agent out there for you.

When looking for a home, consider all of the possibilities. Look up real estate agents websites. Do not rule out For Sale by Owner Properties and foreclosed homes. Housing and Urban Development (HUD) homes can often be found for very reasonable prices. You do need to find an agent that is approved to sell HUD homes if you choose to take that road to home ownership.

Before you even think about making an offer, you need to consider the resale value. You might plan on being there for a long time, but you just never know. You might opt for a different climate to alleviate your allergies or you could simply be transferred by your company. You want to pick a good location that will be attractive to others as well.

Another issue that cannot be ignored are the deed restrictions, which govern what you can and cannot do with the property. If it has always been your dream to have a pool, you want to make sure that you do not buy a home in a subdivision that will not allow it because of deed restrictions.

Home inspections are an important part of the equation. Talk to your agent to find out when the inspection will be performed. It varies state to state. Sometimes the inspection will be right before the contract is signed and other times, they are performed right after an offer is made.

Finally, make sure you stay on top of things. Any number of problems can crop up at the last minute and delay the purchase of your home. If you are not sure about something with the paperwork, do not be afraid to ask questions. You might think of something that everyone else has overlooked.

Purchasing a home is a time consuming and sometimes frustrating task, but it is worth it when you have your backyard barbecues.
Read more: http://www.articlesbase.com/advice-articles/first-time-home-buyer-tips-74678.html#ixzz0peDG62d2
Under Creative Commons License: Attribution
Original Picture Source: http://www.flickr.com/photos/uberculture/4006812170/

Share this:

I’ve always been interested in property, having completed studies in interior design and have had a few lucky purchases when it comes to houses.

I picked up a bargain with my first house, an ex-local authority end terraced place that I purchased for an absolute snip. After the usual updates eg. new kitchen, bathroom and windows etc, I was able to sell it with a profit margin enough for a decent deposit on a beautiful Victorian property that needed a fair bit more work, albeit cosmetic.

I did become quite attached to this house but due to a nasty divorce, I found myself in the position of having to sell up again. I was sorry to put it on the market but got used to the idea and have been looking at my options.

The one that appeals to me most at the moment is buying an auction property. The house sale has gone through relatively smoothly and I have convinced my parents to let me move in with them. My father keeps stressing at the thought that I might get fleeced with an auction property but I believe I’ve done sufficient research, and that I can be restrained enough, to not go over budget or do anything silly.

I’ve been devouring property papers, I’ve even been to see what goes on at the auction and how to bid. I have to say, it’s very exciting. Watching the professionals bid on auction property is gripping stuff and totally absorbing. I see some of the houses sell for next to nothing and I’m sure I can grab a bargain of my own.

I’ve read enough to know that when I buy an auction property, I will need a 10% deposit on me on the day so I wait until the money comes through from my house and find the excitement is building. I’ve received my listing from the auction house and narrowed my choice down to three houses. I’ve made arrangements to view all of them this weekend and, at my father’s insistence, will be taking a builder with me, just in case there is anything wrong that I don’t pick up.

By the day of the auction I have one house that I have set my heart on. More like setting myself up for a fall, according to my father but he’s always scornful of everything he doesn’t understand.

The builder is concerned about a crack in the wall but it looks old to me so I’m not going to worry. He’s also making noises about something called ‘asbestos’ in the garage roof. Like I’d be concerned about the garage! Anyway, I’m hoping I’ll have enough cash to buy it outright so I don’t have to worry about a mortgage.

The auction gets under way and it takes about an hour to get round to the property I want. Bidding begins and I feel sick with anticipation, and sick with the thought of ‘what if I don’t get it’. I hold back to start to see how the bidding goes but I’m soon waving my hand in the air like I’m trying to guide a plan into landing.

It’s all over so quickly and within minutes, I am the proud owner of my first auction property. If only I had the money I could do this all day – it’s such a buzz! Money exchanges hands and I set off with my keys to show my father the house.

He, also, is concerned about the crack in the wall. To ease his concerns I’m getting in a structural engineer, just to make sure everything is above board and my investment is safe.

Oh dear, he says, scratching his head and sucking in his breath. Don’t you just hate it when they do that, it doesn’t mean anything! However, it turns out that due to a coal mine that used to be active in the area many years ago, the house has suffered some subsidence. It has been left derelict for some so nobody was bothered about it.

Looks like I’ll be staying with my parents for a little longer after all! While the workmen are underpinning the wall against the garage, they dislodge the makeshift roof and find this asbestos stuff. After downing tools, they tell me I have to get this stuff professionally disposed of before they will continue.

So, that’s just under 25,000 pounds for all the structural work before I even think about the cosmetics! I couldn’t get a mortgage on the property because of the structural problems so I’ve had to borrow it from my father. I can’t believe that my bargain auction property has become such a problem and now it looks like, once I’ve done all the hard work on it, I’ll have to sell it on again just to pay my father back.

Read more: http://www.articlesbase.com/real-estate-articles/lessons-learnt-when-buying-auction-property-342733.html#ixzz0peDlhdYC
Under Creative Commons License: Attribution
Original Picture Source: http://www.flickr.com/photos/avlxyz/4085252776/

Share this:

The cost of maintaining a real estate property is indeed treated an expense that must be spread over the asset’s useful life even if it depreciates. In real estate, when you shed a sum for maintenance, repairs, and other property necessities to be used to generate sales, you treat the item as an expense. Let’s put things in a much comprehensible example: let’s say you purchased a van to be used for your business. The van losses its value the very minute you drive it out of the dealership and the measure of the loss in value is known as depreciation expense. This happens on both vehicle and property investment. But in the case of an asset, when what you’re indebted cost more than the original value of the house, this only calls for one thing: a short sale.

Now how do you go about short sale investing? The following may answer this query in both an investor and a seller’s end:

Learn the trades of a short sale like the back of your hand. Or to put simply, you should learn the dealings from inside out. Short sale is the process by which a homeowner deals with a bank or a lending firm concerning a property on the brink of foreclosure. This usually happens when the property is no longer a marketable one and the homeowner out of negligence or incapacity to pay the mortgage owe more than the entire cost of the house. Therefore, to make it simple and comfortable on both end, it is a must that short sale is well elucidated and detailed for the benefit and understanding of both parties.

Short sales are not a speedy course of action. If you’re a homeowner who’s in the process of short selling, you have to realize that this isn’t a speedy process. This isn’t the same as a 30-day release of results. It takes more than that and certain things would probably dishearten you. So for the faint hearted, this isn’t the way to go. You have to deal with painstaking paperwork and formalities, red tape considerations, and a lot of other hindrances that may come along the way. So it pays that you brace yourself for the inevitable.

Consider your figures. You do not just invest on short sales without doing the math. This is of course on a buyer’s perspective. On average, if the property you’re rooting for has a value of no more than $150,000, aiming for at least $20,000 in the sale is already a sound number. However, if it goes the other way around, and basing on your calculation, you wouldn’t be netting $15,000 at least, then it’s not going to be worth it. Keep in mind, the property may require renovation and reconstruction cost that would perhaps cost you more, so you really have to weigh your options.

Finally, just take it easy. If you’re a homeowner, expect to meet stumbling blocks that will stand between the short sale procedures. If you’re the buyer, be emphatic. Understand that a homeowner is going through a difficult time. Make the homeowner comfortable in own your pace. When you’re able to do this, you’ll most likely end up getting the sale.

Read more: http://www.articlesbase.com/wealth-building-articles/short-sale-investing-guidelines-on-both-a-buyer-and-a-homeowners-perspective-1473343.html#ixzz0peFF6L4P
Under Creative Commons License: Attribution
Original Picture Source: http://www.flickr.com/photos/andrewbain/3899715321/

Share this: