Home buying is a big deal, but it doesn't have to be difficult.
People buy homes for many different reasons. Most buy for the sole purpose of living the American Dream, others use the home buying market as an investment tool, and some even use the margins inherent in real estate transactions as their daily income.
There are many factors one needs to consider when buying a house, whether to live in or as an investment opportunity.
First and most important is do the research. Know what you're buying.
One of the most important factors to research when buying a home is location. City, State, and, even neighborhood should all be considered carefully.
We've heard it said over and over again. "Location, Location, Location"
So why is location so important? Well, unless you plan to live in the house forever, eventually, you or your estate will want to sell it. You want the home to appreciate in value. You also want to be able to sell quickly. What you don't want is a house for sale sign sitting in your front yard for years.
It doesn't matter how wonderful your property is, you'll have a very difficult time trying to sell your home for top dollar in a bad neighborhood in a reasonable amount of time. This doesn't necessarily mean that it's a bad home. It simply means that there will be less demand. That's not what you want when you decide or have to sell your house.
One needs to apply a neighborhood litmus test when buying a home. Things to consider include schools, nearby growth and development, and convenience. Local governmental agencies often list a school district's rankings. This information can also be found on the Internet. If all else fails, real estate agents have access to this information and can be very helpful. The value of your home will appreciate much more if it is located in a neighborhood with good schools.
New construction nearby also plays a great role in improving the value of a house and should definitely be considered when buying a house. A neighborhood which is on the outskirts of a new development will benefit from the higher prices of the newly constructed homes. If, however, the neighborhood exhibits signs of decline, one should think twice before buying that house.
One other item to consider when looking for a house for sale is it's proximity to places of convenience like shopping centers, transportation hubs, and parks. Remember, someone else will be house buying from you in the future. It will happen. And... They will be looking at the same factors at that time.
Nov 25, 2007
Real Estate auctions online and offline.
If you are interested in either buying a house to live in or buying a house or property for an investment, you should look into real estate auctions. Many houses that have foreclosed are put up for auction, sometimes saving the buyer tens of thousands of dollars. If you would like to get into this business, here are a few tips. Contact your county or city sheriffs department. They usually have a listing of real estate auctions in your area and they can provide you with the date and time and exactly what is needed to place a bid. You can also look at your local paper under government auctions for information on where the next available auction is being held. If you really want to find the good deals, then you will have to do some research. Remember these auctions will save you tens of thousands of dollars so there is a lot of competition. You may want to sign up with a company that provides you with breaking news on which houses will be on the market. This way you can have plenty of time to analyze hundreds of properties to find the best property to bid on. There are also services that help you step by step find a great auction property, bid on it and then sell it immediately for a quick profit. These programs are usually inexpensive and can provide you great tips and tricks on how to get the most return on your investment. So if you're looking to get into the real estate investment business, take a look at real estate auctions. I was interested to find that there are online auctions and sales sites. You can see an example of an online auction by visiting http://www.newspecialsanddeals.com. Owning real estate is a basic desire in most of us. Buying it at a discounted price today is the way to go. As real estate prices rise, it becomes harder to 'find that deal'. Take care and do your research, you will be rewarded immensely.
Nov 23, 2007
Mortgages. Exit Fees To Be Capped.
In the last 3 to 5 years we have seen rises of up to 450% in the exit fees charged by lenders when borrowers redeem their mortgage. But at last the Financial Services Authority (FSA) ha seen the light and is going to crackdown on these increases.
Lenders have been telling new borrowers about the exit fees currently charged, but the lender has retained the right to increase those charges at any time and without advising borrowers. This amounts to a free hand to increase these charges and many lenders have taken the opportunity gladly.
Take the Woolwich for example; they've increased their exit fee from what was ?95 to ?275. The Cheltenham & Gloucester has increased theirs from ?50 to ?225. The lenders have clearly been trying to penalise those of us who regularly switch their mortgage to get the best interest rates ? the so called rate tarts ? and at the same time line their coffers.
However, the FSA is now in talks with the mortgage lenders to bring them to heal. The FSA wants fees to be fully disclosed at the outset and for the disclosed exit fee to be fixed for the duration of the mortgage. The FSA hopes to have agreed a binding undertaking from the lenders by June this year.
On a wider front, borrowers should always remember to take into account all the charges and money saving offers when working out which mortgage is cheapest for them.
To illustrate this point, let's say you wanted a 2-year fixed rate mortgage and were attracted by the offers from the Northern Rock and the Halifax.
Northern Rock currently charges an interest rate of 4.19% plus a 1.5% arrangement fee and an exit fee of ?250. Halifax's interest rate is 4.39% with an arrangement fee of ?499 and exit fee of ?175. Within Halifax's package there's also a free valuation and free conveyancing that typically could save around ?750. So which mortgage deal is the cheapest?
Taking a 25 year repayment mortgage for ?100,000 and costing it over the first two years with redemption at the end of the second year, The Northern Rock comes out at ?14,671. The Halifax comes out at ?807 cheaper at ?13,864. And this saving doesn't take into account the extra ?750 valuation and legal savings offered by the Halifax. Therefore, assessed on this basis, the 4.39% headline rate offered by the Halifax is in fact the cheaper deal.
Another issue that will affect the true cost of your mortgage is whether the interest is charged on a daily, monthly or annual basis. On an otherwise like for like basis, annually calculated interest will always work out more expensive because for 11 months of the year, you are charged interest on money you have already repaid.
The best advice is to read all the small print! And remember that the lenders use all sorts of words to describe charges - application, arrangement, reservation, booking, completion and early redemption are all words to described charges or fees. Keep your eyes skinned!
Lenders have been telling new borrowers about the exit fees currently charged, but the lender has retained the right to increase those charges at any time and without advising borrowers. This amounts to a free hand to increase these charges and many lenders have taken the opportunity gladly.
Take the Woolwich for example; they've increased their exit fee from what was ?95 to ?275. The Cheltenham & Gloucester has increased theirs from ?50 to ?225. The lenders have clearly been trying to penalise those of us who regularly switch their mortgage to get the best interest rates ? the so called rate tarts ? and at the same time line their coffers.
However, the FSA is now in talks with the mortgage lenders to bring them to heal. The FSA wants fees to be fully disclosed at the outset and for the disclosed exit fee to be fixed for the duration of the mortgage. The FSA hopes to have agreed a binding undertaking from the lenders by June this year.
On a wider front, borrowers should always remember to take into account all the charges and money saving offers when working out which mortgage is cheapest for them.
To illustrate this point, let's say you wanted a 2-year fixed rate mortgage and were attracted by the offers from the Northern Rock and the Halifax.
Northern Rock currently charges an interest rate of 4.19% plus a 1.5% arrangement fee and an exit fee of ?250. Halifax's interest rate is 4.39% with an arrangement fee of ?499 and exit fee of ?175. Within Halifax's package there's also a free valuation and free conveyancing that typically could save around ?750. So which mortgage deal is the cheapest?
Taking a 25 year repayment mortgage for ?100,000 and costing it over the first two years with redemption at the end of the second year, The Northern Rock comes out at ?14,671. The Halifax comes out at ?807 cheaper at ?13,864. And this saving doesn't take into account the extra ?750 valuation and legal savings offered by the Halifax. Therefore, assessed on this basis, the 4.39% headline rate offered by the Halifax is in fact the cheaper deal.
Another issue that will affect the true cost of your mortgage is whether the interest is charged on a daily, monthly or annual basis. On an otherwise like for like basis, annually calculated interest will always work out more expensive because for 11 months of the year, you are charged interest on money you have already repaid.
The best advice is to read all the small print! And remember that the lenders use all sorts of words to describe charges - application, arrangement, reservation, booking, completion and early redemption are all words to described charges or fees. Keep your eyes skinned!
Homes for Sale in Massachusetts
In your search, for a home Boston is a place you can find a home that will fit your family, your income and your every need. Boston, Mass was founded on September 17, 1630 by the Puritans. It was first known as Trimountaine, but then the settlers changed the name to Boston, England and then after the Revolutionary war, it was known as Boston, Mass. Boston is well known for the Boston Tea Party and by other events that happened in the war with England and the historical sites are available for your to see when you have the time. Many tourists will visit Boston to see many of these things. Massachusetts a great place to live because you will become part of the culture and history of the area. Massachusetts has some of the most famous happenings and is the center of the war. There are a lot of artifacts from the War that still exist in Massachusetts and all the culture makes Massachusetts (Boston in particular) interesting and alive. You can experience the culture in the homes that are found through out Boston, in the architecture and in the streets, even in the bars and clubs surrounding the area. In the area, you will find mostly Catholics, but there are still great amounts of Irish in the area. However, Massachusetts has a great diversity that makes Massachusetts great. Although you can see the Irish trademark (pubs) all over the state and especially in Boston, you can find other ethnic cultures in the area. As you are probably aware, Boston is the home of the Kennedy's. John F. Kennedy was raised in Massachusetts and was a prominent politic figure in the state, but that is evident since he became one of American's most known presidents. Homes for sale in Massachusetts and Boston are great for the average Joe or America's stars. However, as for the Boston area, you will want to find a Boston Real estate agency if you plan to relocate to the great city. The city has a total area of 90 miles and is almost fifty percent water. Boston is near other great areas like Rever, Chelsea, Cambridge, Watertown, Newton, Brookline, Canton, and Qunicy. Quincy should not get mixed up with Boston, but it is known as the Greater Boston. All these areas would be great to settle down and raise a family or live the bachelor life. When you begin your search for a Boston area home you will want to set yourself a budget. Boston real estate rentals or homes can be expensive, but it's all about the location. You can live in Boston, have a great job, and not have to pay much on the commute. Living in Boston, you can find one bedroom, to five bedroom homes, condos, townhouse, apartments and so many other variations you will just love living in Boston. They are located in the start line to America's history. Berkshires, ma real estate is also a great place for a person to look for a home or rental. By simply contacting a real estate agent in Berkshires, ma you can begin your search for your dream Massachusetts home or apartment. When it comes to homes for sale in Massachusetts you will want to realize that you are getting a good value for your purchase. Boston, Massachusetts is one of the most favorable cities in America, and by purchasing a home for sale in Massachusetts you are setting yourself up for great parties, views, and family fun times. When purchasing a home in Boston, be sure to purchase a home that you can grow into as your children grow, and your family grows. You don't want to have to move more than once so look for your dream house now while you have that perfect opportunity. Boston and other areas of Massachusetts offer many sites to see and many activities to do. If you don't recall Fenway Park is located in Massachusetts. Fenway is the most famous baseball field known to fans. Fenway Park has its own history from all the famous players that have hit home runs in the ballpark. Fenway is the one place that every Massachusetts family must go and see. Not only is it quality family time, but also Fenway is just as much as Massachusetts as Paul Rever. There are plenty of realty ventures pertaining to real estate in Massachusetts. Property in the Boston area or even just in Massachusetts is a good investment because many people from New York will have cabins or summer homes in the state. Massachusetts is a great getaway to many celebrities and politicians. Not to mention that the wholesome feeling and beautiful scenery that Massachusetts offers is just one reason for anyone to relocate or to purchase a summer cottage. Much of Massachusetts is secluded and is great for private getaways. That's why many celebrities try to take advantage of realty ventures in Massachusetts. It doesn't take much to become a success in Massachusetts's real estate because the real estates practically sell their selves. People go to Massachusetts because it one of the few places in the States that offer that good, wholesomeness that many towns or cities lack. Certain areas of Massachusetts's looks practically untouched by age and the cities still have that small town feel. As for Commercial Real Estate in MA, you will find that there are plenty of business opportunities in the cities, especially Boston, and you will find that perfect spot to open up a restaurant, bar, or other business. Since the area is packed with history, there of course is going to be high demand for Ma. Real estate. Because of the high demand, there are well over fifty schools located in Massachusetts so that the area can produce enough realtors. At these schools, you will find out what to emphasis about a MA real estate site and you will also lean how to obtain the real estate home values for Massachusetts. Many realtors who start their own business will offer multiple listing real estates for Massachusetts. This basically means that they allow other realtors and banks to post listings on their site so that you are sure to find your perfect home or apartment. When it comes to real estate in western ma you will want to look at the following areas: Agawam, East Longmeadow, Longmeadow, Southwick, Springfield, Westfield, Wilbraham, and West Springfield. Also great little commonwealth communities would be great to purchase a new home in Massachusetts. MA real estate property in Western Massachusetts and great, as well as most areas of the state, to find whatever you are looking for. If you want to raise a family, stay single, party with friends, or bond with your family, by simply spending a weekend in Massachusetts will make you want to relocate. It has something to offer any type of person in any type of living situation. The towns and cities of Massachusetts look very classy and upscale, but once you mingle in, you realize that it's just like your small town. The real estate appreciation in Massachusetts has some of the best numbers for those who are buying and selling a home in the state of Massachusetts.
Loan Fraud
Each year uninformed homebuyers, usually first time purchasers or seniors fall victim to predatory lending known as loan fraud. True, there are many lenders, appraisers, brokers and other real estate professional that legit ably want to assist you in obtaining a nice comfortable home with a great loan but always remember that trite phrase "buyer beware." Buying or refinancing a home is one of the most important financial decisions that we make, it is vital to learn as much as we can about the home loan process. That is why I decided to list the most important steps you can take so you won't become the next victim of loan fraud. Step one is to Beware of false appraisals. You should have a good idea of what houses appraise for. Step two is to take your time and shop around. Competition is great for consumers. If you don't appreciate one lender's offer, there is always another one waiting. Step three is be certain that the costs and loan terms at closing are what you originally agreed to. Step four is do not be talked into lying about lie about your income, expenses, or cash available for downpayments in order to get a loan. Step five is get several quotes from multiple brokers or lenders so you know you're being charged a fair interest rate based on your credit history, not your race or national origin. Step six is watch out for higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties. Step seven is be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases. Step eight is do not sign a sales contract or loan documents that are blank or that contain information which is not true. Step nine is don't strip your home's equity by refinancing again and again when there is no benefit to you. The Final step is do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
10 Important Questions To Ask Your Real Estate Agent
1. What makes you different? Why should I list my home with you?
It's a much tougher real estate market than it was a decade ago.
What unique marketing plans and programs does this agent have in
place to make sure that your home stands out favorably versus
other competing homes? What things does this agent offer you that
others don't to help you sell your home in the least amount of
time with the least amount of hassle and for the most amount of
money?
2. What is your company's track record and reputation in the
market place?
It may seem like everywhere you look, real estate agents are
boasting about being #1 for this or that, or quoting you the
number of homes they've sold. If you're like many homeowners,
you've probably become immune to much of this information. After
all, you ask, "Why should I care about how many homes one agent
sold over another. The only thing I care about is whether they
can sell my home quickly for the most amount of money."
Well, because you want your home sold fast and for top dollar,
you should be asking the agents you interview how many homes they
have sold. I'm sure you will agree that success in real estate
is selling homes. If one agent is selling a lot of homes while
another is selling only a handful, ask yourself why this might
be? What things are these two agents doing differently?
You may be surprised to know that many agents sell fewer than 10
homes a year. This volume makes it difficult for them to do full
impact marketing on your home, because they can't raise the money
it takes to afford the advertising and special programs to give
your home a high profile. Also, at this low level, they probably
can't afford to hire an assistant, which means that they're
running around trying to do all the components of the job
themselves, which means service may suffer.
3. What are your marketing plans for my home?
How much money does this agent spend in advertising the homes
s/he lists versus the other agents you are interviewing? In what
media (newspaper, magazine, TV etc.) does this agent advertise?
What does s/he know about the effectiveness of one medium over
the other?
4. What has your company sold in my area?
Agents should bring you a complete listing of both their own, and
other comparable sales in your area.
5. Does your Broker control your advertising or do you?
If your agent is not in control of their own advertising, then
your home will be competing for advertising space not only with
this agent's other listings, but also with the listings of every
other agent in the brokerage.
6. On average, when your listings sell, how close is the selling
price to the asking price?
This information is available from the Real Estate Board. Is
this agent's performance higher or lower than the board average?
Their performance on this measurement will help you predict how
high a price you will get for the sale of your home.
7. On average, how long does it take for your listings to sell?
This information is also available from the Real Estate Board.
Does this agent tend to sell faster or slower than the board
average? Their performance on this measurement will help you
predict how long your home will be on the market before it sells.
8. How many Buyers are you currently working with?
Obviously, the more buyers your agent is working with, the better
your chances are of selling your home quickly. It will also
impact price because an agent with many buyers can set up an
auction-like atmosphere where many buyers bid on your home at the
same time. Ask them to describe the system they have for
attracting buyers.
9. Do you have a reference list of clients I could contact?
Ask to see this list, and then proceed to spot check some of the
names.
10. What happens if I'm not happy with the job you are doing to
get my home sold? Can I cancel my listing contract?
Be wary of agents that lock you into a lengthy listing contract
which they can get out of (by ceasing to effectively market your
home) but you can't. There are usually penalties and broker
protection periods which safeguard the agent's interests, but not
yours. How confident is your agent in the service s/he will
provide you? Will s/he allow you to cancel your contract without
penalty if you're not satisfied with the
service provided?
Evaluate each agent's responses to these 10 questions carefully
and objectively. Who will do the best job for you? These
questions will help you decide.
It's a much tougher real estate market than it was a decade ago.
What unique marketing plans and programs does this agent have in
place to make sure that your home stands out favorably versus
other competing homes? What things does this agent offer you that
others don't to help you sell your home in the least amount of
time with the least amount of hassle and for the most amount of
money?
2. What is your company's track record and reputation in the
market place?
It may seem like everywhere you look, real estate agents are
boasting about being #1 for this or that, or quoting you the
number of homes they've sold. If you're like many homeowners,
you've probably become immune to much of this information. After
all, you ask, "Why should I care about how many homes one agent
sold over another. The only thing I care about is whether they
can sell my home quickly for the most amount of money."
Well, because you want your home sold fast and for top dollar,
you should be asking the agents you interview how many homes they
have sold. I'm sure you will agree that success in real estate
is selling homes. If one agent is selling a lot of homes while
another is selling only a handful, ask yourself why this might
be? What things are these two agents doing differently?
You may be surprised to know that many agents sell fewer than 10
homes a year. This volume makes it difficult for them to do full
impact marketing on your home, because they can't raise the money
it takes to afford the advertising and special programs to give
your home a high profile. Also, at this low level, they probably
can't afford to hire an assistant, which means that they're
running around trying to do all the components of the job
themselves, which means service may suffer.
3. What are your marketing plans for my home?
How much money does this agent spend in advertising the homes
s/he lists versus the other agents you are interviewing? In what
media (newspaper, magazine, TV etc.) does this agent advertise?
What does s/he know about the effectiveness of one medium over
the other?
4. What has your company sold in my area?
Agents should bring you a complete listing of both their own, and
other comparable sales in your area.
5. Does your Broker control your advertising or do you?
If your agent is not in control of their own advertising, then
your home will be competing for advertising space not only with
this agent's other listings, but also with the listings of every
other agent in the brokerage.
6. On average, when your listings sell, how close is the selling
price to the asking price?
This information is available from the Real Estate Board. Is
this agent's performance higher or lower than the board average?
Their performance on this measurement will help you predict how
high a price you will get for the sale of your home.
7. On average, how long does it take for your listings to sell?
This information is also available from the Real Estate Board.
Does this agent tend to sell faster or slower than the board
average? Their performance on this measurement will help you
predict how long your home will be on the market before it sells.
8. How many Buyers are you currently working with?
Obviously, the more buyers your agent is working with, the better
your chances are of selling your home quickly. It will also
impact price because an agent with many buyers can set up an
auction-like atmosphere where many buyers bid on your home at the
same time. Ask them to describe the system they have for
attracting buyers.
9. Do you have a reference list of clients I could contact?
Ask to see this list, and then proceed to spot check some of the
names.
10. What happens if I'm not happy with the job you are doing to
get my home sold? Can I cancel my listing contract?
Be wary of agents that lock you into a lengthy listing contract
which they can get out of (by ceasing to effectively market your
home) but you can't. There are usually penalties and broker
protection periods which safeguard the agent's interests, but not
yours. How confident is your agent in the service s/he will
provide you? Will s/he allow you to cancel your contract without
penalty if you're not satisfied with the
service provided?
Evaluate each agent's responses to these 10 questions carefully
and objectively. Who will do the best job for you? These
questions will help you decide.
Nov 21, 2007
How to Estimate Home Building Cost?
There are many factors that go into home building costs and it can be huge task to even come out with an estimate. The quickest way to estimate home building costs is to find similar houses in the area that has the same overall look and size of one that you want to build. Then take the selling price, minus the cost of the land and you will have a rough and quick estimate of the construction cost. This is, of course not an exact science, but by following this basic rule you will be able to get a rough estimate. If the house that you are comparing with was built a few years ago, then you should factor in the appreciation cost due to increase in the cost of labor and materials at between 2 to 5% per annum. Home building costs can be further influence by the interior feature of the home. Let's say you want a completely furnished basement and the house than you are using as a reference does not. You should factor this into the cost estimate. A little here and there can add up to thousands of dollars. Another way is to seek the help of a construction company. If you show them the type of house that you are interested in they should be able to respond to you with a quick estimate. Usually, due to expertise and experience, their estimate can be quite close to the actual building cost. What if the house that you plan to build is different from what is available in your vicinity? Here is a tip. Go online and type in the terms 'home plans' or 'house plans'. You will find many sites that offer thousands of house plans. You can search by type, size, number of rooms etc and for a small price you can download the blueprint. Then ask your friendly construction company to give you an estimate. Yet another way is to use home building kits. Again go online and type in 'home building kits'. There are many companies offering home building kits than contains everything (except labor) that you need to build a house. Then ask your construction company to quote for labor charges. Labor charges constitute a significant portion of the cost of building your own home and if you have the expertise, using a home building kit and building it yourself can reduce your estimate significantly. No matter how precise or detail oriented you are in the planning stages, you must keep in that there may be an unexpected cost overrun. It is a safe practice to put away about 10 or even 15 % for contingency to ensure that you have the money to cover any overrun. Home building costs can often times be very difficult to pinpoint. But if you use some of the methods described above, and by being precise and detail oriented, you will be able to come up with a very close estimate on your home building costs.
Boosting the chances for a trouble-free closing
Refinancing a mortgage for many times in a year creates enough stress. Add title problems, and etc. that you can hardly bear the anxiety.
It happened to John Park and his wife, Chinmaya Park. Both are homeowners in Washington D.C., and they bought a house three years ago. They wrestled with financing, and in about one year, they refinanced fours times, Mr. Park says. Each time, they did cash-out refinances, using the resulting cash to pay for more renovations.
Few homeowners invite trouble by refinancing four times in a year. But lots of people are afflicted by the problems they encountered: missing or incomplete paperwork that causes a delay - in the closing of a mortgage. Many observers blame today's title troubles on the refinancing boom of 2003 and 2004, then lenders, title companies and county recorders were overwhelmed with more paper than they could handle.
It's up to professionals to fix title problems, but you can do a few things to increase your odds of having a trouble-free closing, such as avoid the busiest days for closings, keep in touch with your lenders, settlement agent or both, and hire a fixer. Dan Green, a mortgage consultant of a Mortgage company in Chicago, lays down one rule to his clients: Never close on a Friday or the last day of the month, especially in the afternoon and especially in summer. Those days and times are when title agents and closing attorneys are at their busiest. They don't have as much time to deal with last minute problems. "When something goes wrong, you need to be sure that enough people are available," Mr. Green says.
By the American Land Title Association's reckoning, 36 percent of real estate transactions require some type of corrective action. Usually a document is missing or a new or corrected documents needs to be filed. The repairs are done in the background, and in most cases the consumer doesn't know about it. "We like to have the typical borrower believe that everything is going along hunky-dory," says James Maher, executive vice president of ALTA, the title industry's Washington-based lobbying group. "We don't want to have their confidence in the system undermined." "In the worst case, a seller could pull the deal or a buyer could pull the deal if you're not ready, willing and able to complete the transaction," Ms Bitton syas. Mr. Bitton's bete noir is the bank that loses documents that prove that a previous loan was paid off in a refinance, or that the loan was sold from one bank or investor to another. It can be an adventure to repair these problems in time for closing, because a real estate transaction is local but some of the players are national, and there are no national standards governing who gets what documents and when. A conscientious mortgage broker or loan officer will stay in contact with the settlement agent, making sure everything will be ready on time for closing. If you don't trust the lender to ride herd closely enough, you can try hiring a title fixer.
Howard Gold, a real estate attorney in Wellesley, Mass., started a company last year called National Homestead that promises to search a home's title and fix any problems well before the closing date. Now, that's exactly what the settlement agent does. Mr. Gold says his service is different because he guarantees that title problems won't delay closing, even if another lawyer or title agent handles the closing. "It gives the seller a great heads- up and eliminates the chance of a last-minute surprise," Mr. Gold says. He adds that his company is seller-oriented, while "there are so many title companies out there that are looking out for the lenders and banks and themselves."
It happened to John Park and his wife, Chinmaya Park. Both are homeowners in Washington D.C., and they bought a house three years ago. They wrestled with financing, and in about one year, they refinanced fours times, Mr. Park says. Each time, they did cash-out refinances, using the resulting cash to pay for more renovations.
Few homeowners invite trouble by refinancing four times in a year. But lots of people are afflicted by the problems they encountered: missing or incomplete paperwork that causes a delay - in the closing of a mortgage. Many observers blame today's title troubles on the refinancing boom of 2003 and 2004, then lenders, title companies and county recorders were overwhelmed with more paper than they could handle.
It's up to professionals to fix title problems, but you can do a few things to increase your odds of having a trouble-free closing, such as avoid the busiest days for closings, keep in touch with your lenders, settlement agent or both, and hire a fixer. Dan Green, a mortgage consultant of a Mortgage company in Chicago, lays down one rule to his clients: Never close on a Friday or the last day of the month, especially in the afternoon and especially in summer. Those days and times are when title agents and closing attorneys are at their busiest. They don't have as much time to deal with last minute problems. "When something goes wrong, you need to be sure that enough people are available," Mr. Green says.
By the American Land Title Association's reckoning, 36 percent of real estate transactions require some type of corrective action. Usually a document is missing or a new or corrected documents needs to be filed. The repairs are done in the background, and in most cases the consumer doesn't know about it. "We like to have the typical borrower believe that everything is going along hunky-dory," says James Maher, executive vice president of ALTA, the title industry's Washington-based lobbying group. "We don't want to have their confidence in the system undermined." "In the worst case, a seller could pull the deal or a buyer could pull the deal if you're not ready, willing and able to complete the transaction," Ms Bitton syas. Mr. Bitton's bete noir is the bank that loses documents that prove that a previous loan was paid off in a refinance, or that the loan was sold from one bank or investor to another. It can be an adventure to repair these problems in time for closing, because a real estate transaction is local but some of the players are national, and there are no national standards governing who gets what documents and when. A conscientious mortgage broker or loan officer will stay in contact with the settlement agent, making sure everything will be ready on time for closing. If you don't trust the lender to ride herd closely enough, you can try hiring a title fixer.
Howard Gold, a real estate attorney in Wellesley, Mass., started a company last year called National Homestead that promises to search a home's title and fix any problems well before the closing date. Now, that's exactly what the settlement agent does. Mr. Gold says his service is different because he guarantees that title problems won't delay closing, even if another lawyer or title agent handles the closing. "It gives the seller a great heads- up and eliminates the chance of a last-minute surprise," Mr. Gold says. He adds that his company is seller-oriented, while "there are so many title companies out there that are looking out for the lenders and banks and themselves."
Nov 20, 2007
55 Important Steps to Prepare First-time Homebuyers
55 Important Steps to Prepare First-time Homebuyers
1. First-time homebuyers may not recognize this fact, but they are very lucky to be searching for a home to buy now, rather than during recent months when the market was frenzied.
2. Now that the pace of the home buying process has slowed by much, new buyers to the real estate market can spend more time educating themselves about the financial aspects of purchasing a home, can search for the right property at a more leisurely pace and can review the results of a home inspection to be certain they understand how to maintain the new home and its systems.
3. Recent years, buyers were often forced to compete for a limited number of properties. Now more properties are for sale and fewer buyers are competing for the properties.
4. Buyers now have the time to educate themselves, the choice of plenty of properties for sale and the ability to have a home inspection.
5. First-time buyers in particular need to hire a buyer agent with time and experience to counsel them when looking for a property.
6. Before jumping ahead into the property search, renters who believe they are ready to purchase a home must meet with a lender and choose a Realtor to represent them and to provide guidance in what is, for most people, the largest investment they will ever make.
7. Whether it makes sense to find a lender first or to find a Realtor first can be sort of a chicken-or-egg question for first-time buyers. Many buyers find a Realtor first, and then follow the Realtor's recommendation of a lender. Other buyers meet first with a lender, and then follow the lender's recommendation for a Realtor or the recommendation of other professionals and colleagues.
8. The best referral for a Realtor or a lender is one from a satisfied friend. It's better not to just look on the Internet or at ads because it can be hard to get a feel for how experienced someone is.
9. Buyers who meet a real estate agent at an open house need to understand that the agent represents the seller of that particular property. Buyers need to find an agent who will represent their interests when it comes to negotiating the contract.
10. Buyers should interview more than one real estate agent to learn as much as they can about home buying and to find an agent with whom they will be comfortable.
11. Occasionally, buyer's agents charge a small flat fee directly to the buyer for their services, but the majority of the time the fee for the buyers agent is paid at settlement by the home seller.
12. For buyers, there should never be a reason not to work with a real estate agent who will be their educator and advocate without a cost to them. Buyers and their agents normally sign a contract that explains the relationship and commits the buyer to working with the agent to purchasing a home.
13. Mrs. Goldman often includes a lender at her first buyer presentation so that the buyers can get an idea of the financing right from the beginning. Buyers should plan to meet with a lender as soon as possible to obtain a pre-approval letter for a loan, since few sellers will consider accepting an offer without proof that the buyer can obtain a mortgage.
14. "At the first meeting with buyers, I take a loan application from them, asking them for information about their income and assets," says Jason Klein, president of Diamond Lending Corp. in Rockville. "Then we can almost immediately determine the maximum that they can afford for a property either as dollar amount for the purchase price or as a monthly mortgage payment. After we determine how much they can qualify for, we talk about the loan programs which are available to meet their needs."
15. Mr. Klein says most first-time buyers are unfamiliar with the loan products that are available and also have no feeling for what the monthly loan payment will be or for the process of going from the loan application to the approval to the closing.
16. In general, borrowers need to gather all the documentation they have for their income and assets such as bank statements, a recent pay stub and W-2 forms for initial loan approval.
17. "A strong loan commitment can be made based on the income and assets and check for the credit report, but the final loan approval must be made for a specific property after an appraisal of that property," Mr. Klein says.
18. A credit report will be viewed with initial loan application, which will provide information on current depts. And a credit score that can help determine the applicant's qualification for a loan.
19. Sometimes a credit report will show incorrect information, so it is best to clear up report before beginning to search for a home to purchase.
20. Mr. Klein says typically the best interest rates are available to borrowers with a credit score of 620 or higher, but homebuyers with lower scores can often compensate for the score with a larger down payment.
21. They can also qualify for loan programs with slightly higher interest rates.
22. "Consumers should be very careful in the year of so leading up to the purchase of a home to be sure their credit score is good," Mr. Klein says. "Basically this means not being 30 days late with any bills and making sure that any credit cards are not maxed out.
23. "If you have a card with a $15,000 limit and you have used all that credit, it can negatively impact your score," he says. "You can either try to pay down the credit card, or consolidate the debt onto another card with a higher limit to free up the credit on that card, or even call the credit card company and ask them to extend the credit limit to a higher amount."
24. In addition to the credit scores, income and assets, lenders determine a "debt-to-income" ratio as part of the loan approval process.
25. "In general, the standard back-end ratio is 45 percent, which means that the combined new mortgage payment and they minimum monthly payment for any other dept should be no larger than 45 percent of the gross monthly income," Mr. Klein says. "But these ratio are really a moving target. Borrowers with excellent credit scores and lots of down payment money can have a higher backend ratio."
26. First-time buyers also should be sure to ask their lender, their Realtor and their settlement attorney about special programs for first-time buyers. For example, in Maryland, first-time buyers can save money at settlement because they don't need to pay the recordation tax.
27. For first-time buyers, the biggest obstacle to purchasing a home is usually accumulating a down payment at all.
28. The popular loan programs right now are known as "80-20" programs, with borrowers taking out a first mortgage for 80 percent of the house's cost and a second mortgage for 20 percent of the value. The reason loans are structured this way is so that buyers avoid paying private mortgage insurance, which is normally required on homes with a down payment of less than 20 percent. PIM protects the lender, not the borrowers, in case of default on the loan.
29. Borrowers can also choose an "80-15-5" loan with a 5 percent down payment or an "80-10-10" with a 10 percent down payment.
30. While in the past borrowers often chose an adjustable rate mortgage in order to save money on the interest rates, today the adjustable rate loans and 30-year fixed rate loans have an almost insignificant difference in interest rates.
31. Borrowers are most often choosing the fixed rate loans so they are protected from increasing interests rates.
32. First-time buyers should discuss the various available loan programs for their particular situation in depth with their lender, who should offer a variety of potential loan scenarios and identify the advantages and disadvantages of each product.
33. In recent years, lenders have begun offering interest-only loans, which allow borrowers to pay only the interest for a certain number of years to lower the monthly payments. The principal will not be paid down during this period of the loan, after which the monthly payments will rise significantly.
34. I don't recommend interest only loans to first-time buyers because if the property drops in value, even if it is only by 1 percent, then the buyers could own more money on the loan than the home is worth. Interest only loans are all right if people are disciplined and pay additional money toward the principal, but typically, first-time buyers are stretching to make the payments, so they are not as likely to do this. It's important that homebuyers understand everything about the loan they choose.
35. During the entire process, from applying for a loan to approval to settlement, it is vital for buyers to stay in touch with their lender along with their Realtor. Either the lender or the buyer should initiate communication every few days just to be certain there are no missing documents or problems with the loan.
36. First-time buyers should spend time deciding whether they want to spend the maximum available mortgage amount for their home or whether they prefer to spend less money on their housing costs.
37. Even if the lender approves the buyer for a $500,000 mortgage, for example, the buyers should consider their future expenses when deciding how much they are comfortable borrowing.
Married couples may decide that one spouse will stop working to go back to school or to raise a child, so borrower a lesser amount would be prudent.
38. Lifestyle choices, such as taking vacations or spending on entertainment or a new car, should also be taken into consideration so buyers do not feel trapped by their mortgage payments.
39. Once buyer have determined how much they are comfortable spending, it is time to meet with their Realtor to develop a wish list for their home. At the first meeting with the real estate agent, the buyer and their agent should developed a list of priorities for their home, including a preferred neighborhood, whether they want a town house, condominium or single-family home, the number of bedrooms and baths required and preferred amenities such as outdoors space or a fireplace.
40. It's important to talk to people about their time schedule, to have them think about when they wan to move and developed a plan in an organized fashion. I use a global approach of identifying neighborhoods where they want to live, then looking at homes in each neighborhood to narrow it down.
41. Buyers often search the internet and visit open houses early in their search for a home, but, while this can be educational, it usually makes more sense to start with the financial plan and meeting with a Realtor to set priorities before actually visiting homes. This way the buyers are clear about what they can afford to spend.
42. Once a property has been found, buyers should work closely with their Realtor to understand the contract and to begin negotiations. While the market has shifted in recent months to allow for more negotiating, the process depends on each specific home.
43. Everything is function of how long a house has been on the market. Sometimes there's a great house that's priced right and so there is very little to negotiate by that's priced right and so there is very little to negotiate, but sometimes you can get a better deal. Buyers need to look to their real estate agent to determine what to ask for. The buyer's agent will get all the information needed to make a proper offer.
44. Most contracts include a clause with the offer contingent on a home inspection. Buyers should hire a home inspector recommended by their real estate agent or a trusted friend and should plan to attend the home inspection. Not only will the inspector be looking for flaws in the home and its system, but also will provide a valuable tour of the house and its maintenance requirements. The solution to problems uncovered during the home inspection can be negotiated with the sellers through the real estate agents.
45. In addition to a home inspection, buyers often choose to have a radon inspection and a termite inspection. An appraisal must be done on the property to determine whether the home's value is equal to or above the negotiated price.
46. Once these steps are taken and the contract has been accepted on both sides, the buyers need to obtain homeowners' insurance for their new home, arrange for utilities and a moving company.
47. The real estate agent will also recommend a settlement attorney and arrange for the closing, where the title of the home transfers to the new owners along with the keys to the home.
48. Just before the settlement, the buyers and the real estate agent will do a final walk through of the home to be certain that the property is in the same condition as then when contract was written.
49. The time period between the initial contract offering and the settlement is crucial, and buyers need to stay in close touch with their real estate agent. The real estate agent should make sure that everything is in writing between the buyers and seller so that there is no confusion at the settlement.
50. Settlement attorney suggest that the most important preparation for settlement day for buyers is having a good relationship with their lender.
51. Buyers need to reach a comfort level to make sure they have full disclosure on everything related to their loan. Buyers need to know before the closing what their interest rate will be, an estimate of their monthly payment and an estimate of what their escrow payments will b cover taxes and insurance. I've seen buyers come in totally confused about whether they have an interest only loan or an adjustable-rate loan, with no understanding of how long their rate is fixed.
52. While some lenders require taxes and insurance to be paid by an escrow account, which means that money is collected each month with the mortgage payment and held by the lender until insurance and tax payments are due, borrowers sometimes have the option of choosing to pay those bills on their own.
53. Buyers also have a choice of purchasing title insurance in addition to the title insurance that covers the lender. Buyers should discuss the pros and cons of purchasing title insurance with their lender and Realtor.
54. In preparation for the closing, buyers should go over a good faith estimate (HUD-1) of the closing costs that is provided by the lender. The HUD-1 form includes every payment due by the buyers at closing and every payment due by the seller at closing, plus any proceeds from the sale of the home that are given to the seller at the settlement.
55. Buyers need to arrive at the settlement with identification and certified funds for the estimated amount need for the down payment and closing costs. In addition, personal checks should be available to make up the difference between the estimated cost and any additional fees.
1. First-time homebuyers may not recognize this fact, but they are very lucky to be searching for a home to buy now, rather than during recent months when the market was frenzied.
2. Now that the pace of the home buying process has slowed by much, new buyers to the real estate market can spend more time educating themselves about the financial aspects of purchasing a home, can search for the right property at a more leisurely pace and can review the results of a home inspection to be certain they understand how to maintain the new home and its systems.
3. Recent years, buyers were often forced to compete for a limited number of properties. Now more properties are for sale and fewer buyers are competing for the properties.
4. Buyers now have the time to educate themselves, the choice of plenty of properties for sale and the ability to have a home inspection.
5. First-time buyers in particular need to hire a buyer agent with time and experience to counsel them when looking for a property.
6. Before jumping ahead into the property search, renters who believe they are ready to purchase a home must meet with a lender and choose a Realtor to represent them and to provide guidance in what is, for most people, the largest investment they will ever make.
7. Whether it makes sense to find a lender first or to find a Realtor first can be sort of a chicken-or-egg question for first-time buyers. Many buyers find a Realtor first, and then follow the Realtor's recommendation of a lender. Other buyers meet first with a lender, and then follow the lender's recommendation for a Realtor or the recommendation of other professionals and colleagues.
8. The best referral for a Realtor or a lender is one from a satisfied friend. It's better not to just look on the Internet or at ads because it can be hard to get a feel for how experienced someone is.
9. Buyers who meet a real estate agent at an open house need to understand that the agent represents the seller of that particular property. Buyers need to find an agent who will represent their interests when it comes to negotiating the contract.
10. Buyers should interview more than one real estate agent to learn as much as they can about home buying and to find an agent with whom they will be comfortable.
11. Occasionally, buyer's agents charge a small flat fee directly to the buyer for their services, but the majority of the time the fee for the buyers agent is paid at settlement by the home seller.
12. For buyers, there should never be a reason not to work with a real estate agent who will be their educator and advocate without a cost to them. Buyers and their agents normally sign a contract that explains the relationship and commits the buyer to working with the agent to purchasing a home.
13. Mrs. Goldman often includes a lender at her first buyer presentation so that the buyers can get an idea of the financing right from the beginning. Buyers should plan to meet with a lender as soon as possible to obtain a pre-approval letter for a loan, since few sellers will consider accepting an offer without proof that the buyer can obtain a mortgage.
14. "At the first meeting with buyers, I take a loan application from them, asking them for information about their income and assets," says Jason Klein, president of Diamond Lending Corp. in Rockville. "Then we can almost immediately determine the maximum that they can afford for a property either as dollar amount for the purchase price or as a monthly mortgage payment. After we determine how much they can qualify for, we talk about the loan programs which are available to meet their needs."
15. Mr. Klein says most first-time buyers are unfamiliar with the loan products that are available and also have no feeling for what the monthly loan payment will be or for the process of going from the loan application to the approval to the closing.
16. In general, borrowers need to gather all the documentation they have for their income and assets such as bank statements, a recent pay stub and W-2 forms for initial loan approval.
17. "A strong loan commitment can be made based on the income and assets and check for the credit report, but the final loan approval must be made for a specific property after an appraisal of that property," Mr. Klein says.
18. A credit report will be viewed with initial loan application, which will provide information on current depts. And a credit score that can help determine the applicant's qualification for a loan.
19. Sometimes a credit report will show incorrect information, so it is best to clear up report before beginning to search for a home to purchase.
20. Mr. Klein says typically the best interest rates are available to borrowers with a credit score of 620 or higher, but homebuyers with lower scores can often compensate for the score with a larger down payment.
21. They can also qualify for loan programs with slightly higher interest rates.
22. "Consumers should be very careful in the year of so leading up to the purchase of a home to be sure their credit score is good," Mr. Klein says. "Basically this means not being 30 days late with any bills and making sure that any credit cards are not maxed out.
23. "If you have a card with a $15,000 limit and you have used all that credit, it can negatively impact your score," he says. "You can either try to pay down the credit card, or consolidate the debt onto another card with a higher limit to free up the credit on that card, or even call the credit card company and ask them to extend the credit limit to a higher amount."
24. In addition to the credit scores, income and assets, lenders determine a "debt-to-income" ratio as part of the loan approval process.
25. "In general, the standard back-end ratio is 45 percent, which means that the combined new mortgage payment and they minimum monthly payment for any other dept should be no larger than 45 percent of the gross monthly income," Mr. Klein says. "But these ratio are really a moving target. Borrowers with excellent credit scores and lots of down payment money can have a higher backend ratio."
26. First-time buyers also should be sure to ask their lender, their Realtor and their settlement attorney about special programs for first-time buyers. For example, in Maryland, first-time buyers can save money at settlement because they don't need to pay the recordation tax.
27. For first-time buyers, the biggest obstacle to purchasing a home is usually accumulating a down payment at all.
28. The popular loan programs right now are known as "80-20" programs, with borrowers taking out a first mortgage for 80 percent of the house's cost and a second mortgage for 20 percent of the value. The reason loans are structured this way is so that buyers avoid paying private mortgage insurance, which is normally required on homes with a down payment of less than 20 percent. PIM protects the lender, not the borrowers, in case of default on the loan.
29. Borrowers can also choose an "80-15-5" loan with a 5 percent down payment or an "80-10-10" with a 10 percent down payment.
30. While in the past borrowers often chose an adjustable rate mortgage in order to save money on the interest rates, today the adjustable rate loans and 30-year fixed rate loans have an almost insignificant difference in interest rates.
31. Borrowers are most often choosing the fixed rate loans so they are protected from increasing interests rates.
32. First-time buyers should discuss the various available loan programs for their particular situation in depth with their lender, who should offer a variety of potential loan scenarios and identify the advantages and disadvantages of each product.
33. In recent years, lenders have begun offering interest-only loans, which allow borrowers to pay only the interest for a certain number of years to lower the monthly payments. The principal will not be paid down during this period of the loan, after which the monthly payments will rise significantly.
34. I don't recommend interest only loans to first-time buyers because if the property drops in value, even if it is only by 1 percent, then the buyers could own more money on the loan than the home is worth. Interest only loans are all right if people are disciplined and pay additional money toward the principal, but typically, first-time buyers are stretching to make the payments, so they are not as likely to do this. It's important that homebuyers understand everything about the loan they choose.
35. During the entire process, from applying for a loan to approval to settlement, it is vital for buyers to stay in touch with their lender along with their Realtor. Either the lender or the buyer should initiate communication every few days just to be certain there are no missing documents or problems with the loan.
36. First-time buyers should spend time deciding whether they want to spend the maximum available mortgage amount for their home or whether they prefer to spend less money on their housing costs.
37. Even if the lender approves the buyer for a $500,000 mortgage, for example, the buyers should consider their future expenses when deciding how much they are comfortable borrowing.
Married couples may decide that one spouse will stop working to go back to school or to raise a child, so borrower a lesser amount would be prudent.
38. Lifestyle choices, such as taking vacations or spending on entertainment or a new car, should also be taken into consideration so buyers do not feel trapped by their mortgage payments.
39. Once buyer have determined how much they are comfortable spending, it is time to meet with their Realtor to develop a wish list for their home. At the first meeting with the real estate agent, the buyer and their agent should developed a list of priorities for their home, including a preferred neighborhood, whether they want a town house, condominium or single-family home, the number of bedrooms and baths required and preferred amenities such as outdoors space or a fireplace.
40. It's important to talk to people about their time schedule, to have them think about when they wan to move and developed a plan in an organized fashion. I use a global approach of identifying neighborhoods where they want to live, then looking at homes in each neighborhood to narrow it down.
41. Buyers often search the internet and visit open houses early in their search for a home, but, while this can be educational, it usually makes more sense to start with the financial plan and meeting with a Realtor to set priorities before actually visiting homes. This way the buyers are clear about what they can afford to spend.
42. Once a property has been found, buyers should work closely with their Realtor to understand the contract and to begin negotiations. While the market has shifted in recent months to allow for more negotiating, the process depends on each specific home.
43. Everything is function of how long a house has been on the market. Sometimes there's a great house that's priced right and so there is very little to negotiate by that's priced right and so there is very little to negotiate, but sometimes you can get a better deal. Buyers need to look to their real estate agent to determine what to ask for. The buyer's agent will get all the information needed to make a proper offer.
44. Most contracts include a clause with the offer contingent on a home inspection. Buyers should hire a home inspector recommended by their real estate agent or a trusted friend and should plan to attend the home inspection. Not only will the inspector be looking for flaws in the home and its system, but also will provide a valuable tour of the house and its maintenance requirements. The solution to problems uncovered during the home inspection can be negotiated with the sellers through the real estate agents.
45. In addition to a home inspection, buyers often choose to have a radon inspection and a termite inspection. An appraisal must be done on the property to determine whether the home's value is equal to or above the negotiated price.
46. Once these steps are taken and the contract has been accepted on both sides, the buyers need to obtain homeowners' insurance for their new home, arrange for utilities and a moving company.
47. The real estate agent will also recommend a settlement attorney and arrange for the closing, where the title of the home transfers to the new owners along with the keys to the home.
48. Just before the settlement, the buyers and the real estate agent will do a final walk through of the home to be certain that the property is in the same condition as then when contract was written.
49. The time period between the initial contract offering and the settlement is crucial, and buyers need to stay in close touch with their real estate agent. The real estate agent should make sure that everything is in writing between the buyers and seller so that there is no confusion at the settlement.
50. Settlement attorney suggest that the most important preparation for settlement day for buyers is having a good relationship with their lender.
51. Buyers need to reach a comfort level to make sure they have full disclosure on everything related to their loan. Buyers need to know before the closing what their interest rate will be, an estimate of their monthly payment and an estimate of what their escrow payments will b cover taxes and insurance. I've seen buyers come in totally confused about whether they have an interest only loan or an adjustable-rate loan, with no understanding of how long their rate is fixed.
52. While some lenders require taxes and insurance to be paid by an escrow account, which means that money is collected each month with the mortgage payment and held by the lender until insurance and tax payments are due, borrowers sometimes have the option of choosing to pay those bills on their own.
53. Buyers also have a choice of purchasing title insurance in addition to the title insurance that covers the lender. Buyers should discuss the pros and cons of purchasing title insurance with their lender and Realtor.
54. In preparation for the closing, buyers should go over a good faith estimate (HUD-1) of the closing costs that is provided by the lender. The HUD-1 form includes every payment due by the buyers at closing and every payment due by the seller at closing, plus any proceeds from the sale of the home that are given to the seller at the settlement.
55. Buyers need to arrive at the settlement with identification and certified funds for the estimated amount need for the down payment and closing costs. In addition, personal checks should be available to make up the difference between the estimated cost and any additional fees.
How to Choose the Right Home Builder
How to Choose the Right Home Builder Building your own home is one of life's turning points. Who would pass up the excitement of putting up their very own abode? Everyone wants to build a home according to his or her taste and style. There are a lot of factors in building a perfect home and one of the keys behind it is hiring the right home builder to work for you. Your home is a major investment and a big part of that goes to your home builder. There is a myriad of choices with it comes to home builders, but are you sure that you are in the right hands? Here are some quick tips on choosing the right home builder. Types of home builders The first step in choosing a builder is to know what they do and what they build. There are two types of builders: custom and production home builders. Custom home builders usually build top quality houses on your preferred location. Each house is unique and rarely do two houses come out to be similar. If you do not have a design for your house, they can even provide you with one. Production home builders usually build town houses, condominiums and rental real estate. You can choose from different pre-made house plans they offer. If you are on a tight budget, you can commission them to help you out. It pays to work with a professional Although professional home builders can cost a lot more expensive than small companies, you can be assured of quality service. And quality is something you want on top of everything else. You might get proposals from people who build homes as a part time job and charges a fraction of the usual cost, don't fall for it. You might find yourself fixing your roof or changing your tiles a few months later. Home building takes dedication, commitment and experience. If an offer sounds to good to be true, it probably is. Make a Quick Background Check Hold a small interview with your home builder. Check out their portfolios and track records. Allot a few hours of your time to ask feedbacks from homeowners who were their previous clients. Take a look at the houses that they are currently working on. Their job site can give you an idea on how the team work together, equipments they use and how organized they are. These references can help a lot in making your decision. Customer Service and Warranties Hire a company that offers warranty programs. This will serve as a protection for your investment. Be sure to ask your provider what after-sales service they can offer. Good builders should offer to fix minor problems at no extra cost. Talk to at least three of your preferred home builders. Discuss your budget and tell them the exact details of what you want them to do for you. Remember that choosing a home builder is only step number one towards your perfect home. You need to tell them clearly what you want. Don't just give them your house plan and leave it at that. Communicate with them from time to time and check your house every so often. Isn't it just a wonderful to see your dream home unfold before your own eyes?
Nov 16, 2007
An Overview of Buying a Home in Las Vegas
Nevada, the silver state, best known for its gambling and gaming industry and is the fastest growing state. Las Vegas, Nevada is probably the most exciting and magnificent city in the country, covers 83.1 square miles and the metropolitan region includes North Las Vegas, Boulder City, Henderson, Mesquite and a large number of unincorporated communities. Las Vegas is one of the most dynamically developing city of the United States, has very strong economy, increased labor supply in hotel and gambling industry. Clark County, home to Las Vegas and Henderson, hosts the 2nd strongest job market in the nation. This is the reason why so many people move here every day. Owning a home is one of the best financial investments and there has never been a better time to invest in Las Vegas Real Estate. In the Las Vegas area property values seem to increase at a huge rate, most likely Real Estate values in this area will double in the next few years, because less and less new homes are built nowadays and this tendency continues. So, it's the best time to enter Las Vegas Real Estate market. Aside from the benefits of the investment, splendor of the nightlife and entertainment, hotels & casinos, thousands of flashing bulbs and neon, or the Las Vegas Eiffel Tower might be very attractive, too. Naturally all these curiosities make the region's Real Estate section more prosperous. From the quiet calmness of Painted Desert to the stylish community of Summerlin, the gorgeous splendor of Lake Las Vegas to the impressive beauty of Henderson, there are Las Vegas homes of all kinds. The home prices vastly range between $150,000 and $15 million. Condominiums are pretty popular because of their low prices. It is recommended to get information about prices from as many sources as possible, for instance with the help of Real Estate web sites. Compared to renting a home, financially it is more advantageous to buy it. Buying a home means to have the same monthly payment amount for many years, while in the case of rent it may change. What's more, homebuyer can stop making payments when the loan is paid off. If someone can afford and plans to stay in the house, it is better to buy it.
Buying a property
If you are going to purchase private real estate and not use a real estate agent there are certain things you should consider before looking at any private property.
There are 3 stages to purchasing a property:
1. Signing of the contract including conditions, known as conditional contract.
2. The date the contract conditions are met, known as unconditional contract.
3. Settlement date (the day that the buyer gains possession)
Before you purchase.
Purchasing property can be complex and you should consider including in your purchase conditions a qualified valuation. Other conditions should include a building and pest inspections and a finance clause where finance is required.
Costs
The purchaser of any property in Australia pays stamp duty on the
purchase. See the Planner on the No Agent property website to assist you to thoroughly assess costs before you get started.
Settlement
The date for settlement is set by both parties. When settlement takes place the balance of the contract price is paid to the vendor and the purchaser receives the title documents to the property and, of course, the keys.
When a mortgage is involved the mortgagee (the lender) pays the money (loaned) plus any additional accounts (such as rates, water etc.) to the seller and receives the title documents to the property. The lender retains the title and mortgage documents until the term of the mortgage is complete.
Inspecting
When you are dealing directly with the seller, arrange meeting times that are suitable to you. You will be establishing a relationship with the seller so remember to be flexible at all times as they wish to sell the property as much as you may wish to purchase the property. Don't feel pressured into making decisions. If you are genuinely interested in the property, ask for a guided tour, then ask to spend some time just browsing on your own.
Take a look at the surrounding area. Consider proximity of schools, transport, churches, shopping centres or other places of importance to you. Calculate any differences in cost or convenience that you may expect from different properties, as these factors can have a bearing on your selection of a property.
Private Sale | Private Real Estate | Homes for sale | Real Estate | Private Property
Negotiating a price
In most cases there is a negotiating system that will take place during the contract process, initially the buyer will sign a contract offering a specific price and in return the seller will either accept the offer or counter offer with another price. This process will continue until both parties agree on a price and any associated condition. At this stage the seller will sign and date the contract which then makes both parties bound by the contract. The contract and the buyers deposit cheque are then lodged with the seller's solicitor or conveyancer who will retain the deposit in a trust account until settlement takes place.
Property condition
Make yourself aware of structural problems such as cracks in the walls, termite damage or evidence of subsidence. Also take note of the condition of the wiring, plumbing and electrical fittings. It is highly recommended that you engage the services of a qualified building and pest Inspectors as their property report may highlight any serious and potentially costly problems.
Questions to ask the seller
? • Why are you selling?
? • How long have you lived here?
? • What improvements have been carried out to the property?
? • What are the rates?
? • Where is the nearest transport?
? • What are the neighbours like?
? • Have there been any price reductions?
? • How long has the property been on the market?
? • Which direction does the property face?
? • Which rooms get the Western sun in the afternoon?
? • What fixtures and fittings are included or excluded in the sale?
? • Are there any current issues with the property that they are aware of?
? • Where are the nearest schools?
DISCLAIMER
This information supplied is general in nature and is to be used and applied as a guide only. Seek professional advice for detailed advice and information regarding your specific circumstances. No Agent Property accepts no responsibility or liability for the use or application of the information provided.
There are 3 stages to purchasing a property:
1. Signing of the contract including conditions, known as conditional contract.
2. The date the contract conditions are met, known as unconditional contract.
3. Settlement date (the day that the buyer gains possession)
Before you purchase.
Purchasing property can be complex and you should consider including in your purchase conditions a qualified valuation. Other conditions should include a building and pest inspections and a finance clause where finance is required.
Costs
The purchaser of any property in Australia pays stamp duty on the
purchase. See the Planner on the No Agent property website to assist you to thoroughly assess costs before you get started.
Settlement
The date for settlement is set by both parties. When settlement takes place the balance of the contract price is paid to the vendor and the purchaser receives the title documents to the property and, of course, the keys.
When a mortgage is involved the mortgagee (the lender) pays the money (loaned) plus any additional accounts (such as rates, water etc.) to the seller and receives the title documents to the property. The lender retains the title and mortgage documents until the term of the mortgage is complete.
Inspecting
When you are dealing directly with the seller, arrange meeting times that are suitable to you. You will be establishing a relationship with the seller so remember to be flexible at all times as they wish to sell the property as much as you may wish to purchase the property. Don't feel pressured into making decisions. If you are genuinely interested in the property, ask for a guided tour, then ask to spend some time just browsing on your own.
Take a look at the surrounding area. Consider proximity of schools, transport, churches, shopping centres or other places of importance to you. Calculate any differences in cost or convenience that you may expect from different properties, as these factors can have a bearing on your selection of a property.
Private Sale | Private Real Estate | Homes for sale | Real Estate | Private Property
Negotiating a price
In most cases there is a negotiating system that will take place during the contract process, initially the buyer will sign a contract offering a specific price and in return the seller will either accept the offer or counter offer with another price. This process will continue until both parties agree on a price and any associated condition. At this stage the seller will sign and date the contract which then makes both parties bound by the contract. The contract and the buyers deposit cheque are then lodged with the seller's solicitor or conveyancer who will retain the deposit in a trust account until settlement takes place.
Property condition
Make yourself aware of structural problems such as cracks in the walls, termite damage or evidence of subsidence. Also take note of the condition of the wiring, plumbing and electrical fittings. It is highly recommended that you engage the services of a qualified building and pest Inspectors as their property report may highlight any serious and potentially costly problems.
Questions to ask the seller
? • Why are you selling?
? • How long have you lived here?
? • What improvements have been carried out to the property?
? • What are the rates?
? • Where is the nearest transport?
? • What are the neighbours like?
? • Have there been any price reductions?
? • How long has the property been on the market?
? • Which direction does the property face?
? • Which rooms get the Western sun in the afternoon?
? • What fixtures and fittings are included or excluded in the sale?
? • Are there any current issues with the property that they are aware of?
? • Where are the nearest schools?
DISCLAIMER
This information supplied is general in nature and is to be used and applied as a guide only. Seek professional advice for detailed advice and information regarding your specific circumstances. No Agent Property accepts no responsibility or liability for the use or application of the information provided.
Ready to Start Your Apartment Search? Make it Easy!
Apartments For Rent - there are so many apartments...so why is the apartment search process so difficult? While it's easy to turn a 6-month apartment lease into an interminable nightmare, it's not easy to turn a 6-month lease into something less than six months. A little advance planning can make your lease term a happy living experience. Your apartment search can be a valuable learning experience (you'll use these techniques in every real estate transaction you engage in from now on). "/www.hubbuzz.com"">Apartments For Rent - there are so many Denver apartments and Colorado Springs apartments...so why is the apartment search process so difficult? While it's easy to turn a 6-month apartment lease into an interminable nightmare, it's not easy to turn a 6-month lease into something less than six months. A little advance planning can make your lease term a happy living experience. Your apartment search can be a valuable learning experience (you'll use these techniques in every real estate transaction you engage in from now on). First of all, be sure of what you're looking for when you begin your /www.hubbuzz.com"">apartment search. If you're like other folks, you think you know what you want in your new apartment. So off you go, looking at new apartments and finding the place of your dreams. Then two months later, a friend's new apartment is the site of a popcorn and movie night. You think, "What did I ever see in my apartment? It's a terrible floor plan!" Or you can't get the apartment maintenance crew to come fix the leaky shower. You wonder how you overlooked service and the people running the community. Sound familiar? There are some steps you can take to help yourself make a good decision. 1. Calculate your budget before you do anything. Today, in Denver and Colorado Springs, people spend between one-quarter and one-third of their monthly income on rent/mortgage payments. So if you make $2,500 a month in salary, you can spend between $625 and $825 per month on your rent. If you can find a place with utilities included, that's a bonus. You'll have more money for take-out. 2. Figure out where you want to live — not just the city, but maybe the area of town or the neighborhood. That kind of information can be hard to come by, but be diligent. If you go to Hubbuzz.com, you can find neighborhood maps and descriptions to help you get a good view of Denver neighborhoods and Colorado Springs neighborhoods. And when you've got some ideas, drive the neighborhood or community you're thinking about. Stop and have a cup of coffee. Sit and watch people, traffic, the birds...anything that will matter after you've moved in. 3. Use a good apartment search website. The ability to search by area makes life a lot easier, so that capability, while not widely available, will shorten your time in front of the computer. At hubbuzz.com, you can search apartments by Denver communities or Colorado Springs communities (or by type or style of neighborhood), or be matched based on your interests and lifestyle. Also, on hubbuzz.com you can search for things you must have, for instance a pet-friendly apartment, and you wont spend time looking at communities that just won't work. 4. Prepare a list of apartment communities you'd like to look at. Plan your route and a checklist that will help you determine which place is right for you. (Don't have a list? Click here for an /www.hubbuzz.com"">apartment search tool you can print out and take with you. This apartment checklist will help you organize your search and prevent any big mistakes.) 5. Be realistic about your final decision. That fifth floor walkup may have an incredible view, but unless you're fond of the Stairmaster at the gym, you'll make all your decisions based on your five flights of exercise. So sleep on it before you sign the lease. As a final note, if you've never read a lease, or don't feel as though it's one of your talents, have someone review it for you. Most apartment leases are boiler-plate, but you should know what you're signing. Good luck on your apartment search!"
Condo Conversions
With today's high price of homes and rising price of new construction condos, one of the most attractive alternatives has become condo conversions. Conversions are old apartment buildings that have been remodeled and updated to be resold as condos. This has lead to a huge boom in the lower-priced condo market as conversions are ideally suited to supplying a more reasonably priced alternative to new construction condos and single family homes.
One of the main reasons that conversions have become so popular is the ready availability of old apartment complexes. Typically, conversions are aimed at the first time and entry-level buyers, so if you find yourself in this category; you may want to look into the possibility of a condo conversion. Most of these complexes offer a great array of extras and benefits that are associated with condo ownership such as strong community living, owners associations and shared cost of building upkeep. One thing that may be absent in a conversion is some of the newer "hot assets" that many new construction complexes offer such as health spas and the like.
This kind of condo is a favorite of real estate speculators and conversions are indeed tailor made for investing. The relatively cheap asking price (many for around 90K in some areas) is almost guaranteed to appreciate quickly as the demand for housing increases. In fact when this kind of condo goes on sale many times there are limits to how many one person can purchase. That is a great indication of the worth of these units for investment. Many investors purchase such units on the basis that they will appreciate and they will be able to resell them for a nice profit, however; many also purchase with the plan of renting the units out. This is a great way to build your equity and have a property pay for itself in the process. Condo conversions are not too hard to find so get out there and start searching, your new conversions could be waiting!
One of the main reasons that conversions have become so popular is the ready availability of old apartment complexes. Typically, conversions are aimed at the first time and entry-level buyers, so if you find yourself in this category; you may want to look into the possibility of a condo conversion. Most of these complexes offer a great array of extras and benefits that are associated with condo ownership such as strong community living, owners associations and shared cost of building upkeep. One thing that may be absent in a conversion is some of the newer "hot assets" that many new construction complexes offer such as health spas and the like.
This kind of condo is a favorite of real estate speculators and conversions are indeed tailor made for investing. The relatively cheap asking price (many for around 90K in some areas) is almost guaranteed to appreciate quickly as the demand for housing increases. In fact when this kind of condo goes on sale many times there are limits to how many one person can purchase. That is a great indication of the worth of these units for investment. Many investors purchase such units on the basis that they will appreciate and they will be able to resell them for a nice profit, however; many also purchase with the plan of renting the units out. This is a great way to build your equity and have a property pay for itself in the process. Condo conversions are not too hard to find so get out there and start searching, your new conversions could be waiting!
All About Real Estate Agents
Real Estate Agents.....
Who Are They...
Real estate agents are professionals instrumental in connecting the buyer with the seller.
Additionally, many real estate agents manage rentals wherein they introduce tenants to landlords and oversee the maintainance of the property on behalf of the landlords.
In most areas real estate agents are required to be highly educated, licensed and are regulated by a governing body.
Some real estate agents are also Realtors.
To use the title Realtor, a real estate agent must be a member of the National Association of Realtors which in addition to a number of other requirements, requires Realtors to adhere to a strict code of ethics and offers Realtors additional educational and designation opportunities.
Though not required by rule or law, it might be a wise decision to seek the services of a Realtor.
What Do They Do....
Real estate agents bring together two or more interested parties, perform those steps necessary to successfully conclude a transaction and charge a commission for their services.
For sales transactions, they charge commission to the seller while for rentals, commission is typically charged the landlord.
Real estate agents generally calculate their fee as a percentage of the selling price (in the case of a sale) and as part of the rent for rental units.
How Do They Do It...
People who want to sell or rent their property leave details of their property with the real estate agent.
Along with all property details the real estate agent will typically have keys to the house to facilitate showings.
The other interested party (i.e. the buyer/tenant), gets access to this information and to the property by contacting the real estate agent.
That's how the real estate agent becomes a hub of information.
Contrary to some common misconceptions, real estate agents typically represent the seller or the buyer but rarely both.
Why Should I Use One...
First and foremost, to protect yourself. Real estate transactions are highly regulated, highly paper (document) intensive transactions.
The real estate agent possesses an in depth knowledge of the laws, rules, regulations, disclosures and documentation necessary to successfully complete the transaction to the satisfaction of the buyer, the seller and the law.
Because real estate agents are most familiar with local real estate market conditions, it is wise and makes sense to seek the advice of one to get an idea of the current trends and pricing for properties within that market.
A good real estate agent will know the prices (or price range) of various properties of different types and at various locations within the region.
Because of the real estate agent's knowledge and expertise, property sellers often get a few thousand dollars more for their property.
Many home seekers, including seasoned real estate investors use the services of real estate agents to locate the best real estate bargains in the easiest and quickest manner.
Furthermore, the best agents analyze the wants and needs of a home buyer/tenant and provide valuable input as to the kinds of properties available to them within their budget. Therefore, a good real estate agent will not just present a list of available properties to the buyer/tenant but will actually discuss their needs and make suggestions.
The good real estate agent, working in this manner benefits in at least two ways...
First and most obviously, when the real estate agent is able to successfully complete the transaction the commission is earned and the real estate agent is paid...
and secondly, if they make the customer/client happy they earn a good reputation and often receive referrals (hence more business).
Worth Noting...
It is worth noting that there is a myth floating around that real estate agents only work on behalf of the seller, buyer beware.
This is not written in stone nor is it always the case. Real estate agents are, in most regions, highly regulated.
With few exceptions, real estate agents work either for the seller (as is the case with many listing agents) or for the buyer (as is the case for a buyer's agent).
Additionally, some areas allow for dual agency where an agent can work for both the seller and the buyer or as a transaction broker where the agent represents the transaction itself and neither the seller nor buyer individually.
However, in the case of dual agency/transaction brokerage, note that rule, regulation (law) and ethics do not permit the agent to act in favor of either party while in detriment to the other.
If you are unsure of the relationship between you and your real estate agent, do not hesitate to ask.
Who Are They...
Real estate agents are professionals instrumental in connecting the buyer with the seller.
Additionally, many real estate agents manage rentals wherein they introduce tenants to landlords and oversee the maintainance of the property on behalf of the landlords.
In most areas real estate agents are required to be highly educated, licensed and are regulated by a governing body.
Some real estate agents are also Realtors.
To use the title Realtor, a real estate agent must be a member of the National Association of Realtors which in addition to a number of other requirements, requires Realtors to adhere to a strict code of ethics and offers Realtors additional educational and designation opportunities.
Though not required by rule or law, it might be a wise decision to seek the services of a Realtor.
What Do They Do....
Real estate agents bring together two or more interested parties, perform those steps necessary to successfully conclude a transaction and charge a commission for their services.
For sales transactions, they charge commission to the seller while for rentals, commission is typically charged the landlord.
Real estate agents generally calculate their fee as a percentage of the selling price (in the case of a sale) and as part of the rent for rental units.
How Do They Do It...
People who want to sell or rent their property leave details of their property with the real estate agent.
Along with all property details the real estate agent will typically have keys to the house to facilitate showings.
The other interested party (i.e. the buyer/tenant), gets access to this information and to the property by contacting the real estate agent.
That's how the real estate agent becomes a hub of information.
Contrary to some common misconceptions, real estate agents typically represent the seller or the buyer but rarely both.
Why Should I Use One...
First and foremost, to protect yourself. Real estate transactions are highly regulated, highly paper (document) intensive transactions.
The real estate agent possesses an in depth knowledge of the laws, rules, regulations, disclosures and documentation necessary to successfully complete the transaction to the satisfaction of the buyer, the seller and the law.
Because real estate agents are most familiar with local real estate market conditions, it is wise and makes sense to seek the advice of one to get an idea of the current trends and pricing for properties within that market.
A good real estate agent will know the prices (or price range) of various properties of different types and at various locations within the region.
Because of the real estate agent's knowledge and expertise, property sellers often get a few thousand dollars more for their property.
Many home seekers, including seasoned real estate investors use the services of real estate agents to locate the best real estate bargains in the easiest and quickest manner.
Furthermore, the best agents analyze the wants and needs of a home buyer/tenant and provide valuable input as to the kinds of properties available to them within their budget. Therefore, a good real estate agent will not just present a list of available properties to the buyer/tenant but will actually discuss their needs and make suggestions.
The good real estate agent, working in this manner benefits in at least two ways...
First and most obviously, when the real estate agent is able to successfully complete the transaction the commission is earned and the real estate agent is paid...
and secondly, if they make the customer/client happy they earn a good reputation and often receive referrals (hence more business).
Worth Noting...
It is worth noting that there is a myth floating around that real estate agents only work on behalf of the seller, buyer beware.
This is not written in stone nor is it always the case. Real estate agents are, in most regions, highly regulated.
With few exceptions, real estate agents work either for the seller (as is the case with many listing agents) or for the buyer (as is the case for a buyer's agent).
Additionally, some areas allow for dual agency where an agent can work for both the seller and the buyer or as a transaction broker where the agent represents the transaction itself and neither the seller nor buyer individually.
However, in the case of dual agency/transaction brokerage, note that rule, regulation (law) and ethics do not permit the agent to act in favor of either party while in detriment to the other.
If you are unsure of the relationship between you and your real estate agent, do not hesitate to ask.
Nov 14, 2007
For Sale by Owner or Agent?
You have decided to sell their home and are debating whether to try to save the real estate commission by selling your home yourself. Rather than putting "For Sale By Owner" sign on the lawn, however, consider what you are getting into.
You want to sell your house for the right price at the right time. But what we do know a lot about the marketing of a property? Do you know what is the value of your home and what other houses similar to theirs have sold? Do you have the skills to negotiate and conclude an agreement? Selling a home requires expertise and in property law, funding for the mortgage and taxes, as well as wisdom.
Most home sellers are not experts in the sale of real estate, and selling your home is a decision too important and too large for a financial transaction coincidentally just try to do it yourself, without asking wish to participate in the first
References and Resources
If you decide to sell privately, it is likely to put up a "For Sale" sign and run some ads in your local newspaper. But the number of potential buyers do you think you came? Most real estate agents have access to the Multiple Listing Service (MLS) information system, which is operated by its members on the boards of the Canadian Real Estate Association (CREA) in Canada or the National Association of Realtors (NAR) in the USA The MLS system provides a list of homes for sale by MLS subscribers in each community and members MLS used this system to match buyers will sellers.
Moreover, large companies can use their national cross reference country, with a list of equipment and services to reach hundreds or thousands of potential buyers even thousands of miles away.
If you sell your house, your weekly classified ads in the local newspaper probably reach most of its potential buyers within a couple of weeks. Without professional affiliation and communication resources, it would have to spend hundreds or thousands of dollars in advertising to attract a sufficient number of potential buyers.
Most of the homes listed with a real estate representative fastest selling homes sold in private because most people do not have the resources. If you are selling your house yourself, you can set a time limit. If your house is not sold, for example, in five or six weeks, is likely to have a greater number of buyers of the most distant a real estate professional can bring.
Time and Expertise
Time and experience to do all the paperwork and negotiations related to the sale of a home are some other factors that most vendors do not have when it comes to negotiating the sale of their property.
Owners who run an ad in the paper are often not prepared to answer questions from potential buyers about taxes, much study, the cost of heating and surfaces, or do not have the telephone technique to achieve at unless, the caller to see the property. Aligerar callers from curiosity serious of which requires special expertise. Moreover, most people do not have the time to spend the night showing the house and organize open houses on weekends.
Suppose you manage to attract some potential buyers to your door. Now what? Unless you have the training and skills to "sell" from potential buyers of the house and ask good questions phrased to use them the right way, you can lose perspective of interest based on their communication skills alone . I do not underestimate the difficulty in proving a property with grace, either.
The negotiation of the sale face to face is one of the most difficult and crucial stages of the sales process. If you want to sell privately, do you know how to respond to the objections of the prospective buyer and precise enough to help them make a purchase decision? Will avoid overtalking or overselling?
If you sell your home yourself, there is a good chance that you will end up having too low an offer, either because they have exhausted their patience or do not know how to effectively negotiate with the buyer.
Conversely, it is possible that over-estimating the value of your home. You want $ 150000 and not a penny less, and the home does not sell. A representative of real estate knows the true value of the property and could have saved the effort. Or, perhaps the house is actually worth $ 170000 and that thought made a good acquisition at $ 150000. You may have saved a few thousand dollars commission, but also lost $ 20,000.
And what about other costs? Small expenses such as signaling added. By recruiting a representative of real estate, all expenses, including those of his experience and time, are addressed in the commission of real estate.
Advantages of Listing With Agent
Most homes are sold using the services of the representative of real estate, because it understands aspects of the real estate business and act as their negotiator. A representative of real estate make their living off the sale of houses in their neighborhood and knows well.
The most important service representative is able to provide real estate market analysis -- what properties are selling and how quickly they sell their products. Indeed, the announcement of a property at a reasonable price is probably greater task of selling his house.
If you decide to sell privately, you have to look at the real estate pages of your local newspaper to monitor your competition, reported sales and temperament of the market.
Moreover, a representative of real estate passes through all stages of the sale of his house ad, presentation, negotiation and closing with you. A representative of real estate may also be able to advise on real estate mortgages and the different types of transactions creative you may have to do.
If you decide to sell your home without an agent, you need to do some research, such as finding out how much annual income a buyer must have the requirements to obtain a mortgage on your house so you will be ready to talk money with a serious buyer.
Selling your home can also be emotionally draining. You must try to act impartially and separated from all the memories of your home. There is also the possibility of misrepresentation when trying to sell his own house. All information on the listing sheet (which contains essential information about your home), which will have to prepare for potential buyers must be accurate or it can lead to a lawsuit for you.
In general before considering launching a "For Sale by Owner", to know exactly how much work is required and the knowledge and whether or not you have what is needed. Selling a house is a huge undertaking and requires time, money, resources, marketing skills and experience. For what is probably the largest staff of business venture of his life, which he wants peace peace of mind knowing that received the maximum dollar for your home.
You want to sell your house for the right price at the right time. But what we do know a lot about the marketing of a property? Do you know what is the value of your home and what other houses similar to theirs have sold? Do you have the skills to negotiate and conclude an agreement? Selling a home requires expertise and in property law, funding for the mortgage and taxes, as well as wisdom.
Most home sellers are not experts in the sale of real estate, and selling your home is a decision too important and too large for a financial transaction coincidentally just try to do it yourself, without asking wish to participate in the first
References and Resources
If you decide to sell privately, it is likely to put up a "For Sale" sign and run some ads in your local newspaper. But the number of potential buyers do you think you came? Most real estate agents have access to the Multiple Listing Service (MLS) information system, which is operated by its members on the boards of the Canadian Real Estate Association (CREA) in Canada or the National Association of Realtors (NAR) in the USA The MLS system provides a list of homes for sale by MLS subscribers in each community and members MLS used this system to match buyers will sellers.
Moreover, large companies can use their national cross reference country, with a list of equipment and services to reach hundreds or thousands of potential buyers even thousands of miles away.
If you sell your house, your weekly classified ads in the local newspaper probably reach most of its potential buyers within a couple of weeks. Without professional affiliation and communication resources, it would have to spend hundreds or thousands of dollars in advertising to attract a sufficient number of potential buyers.
Most of the homes listed with a real estate representative fastest selling homes sold in private because most people do not have the resources. If you are selling your house yourself, you can set a time limit. If your house is not sold, for example, in five or six weeks, is likely to have a greater number of buyers of the most distant a real estate professional can bring.
Time and Expertise
Time and experience to do all the paperwork and negotiations related to the sale of a home are some other factors that most vendors do not have when it comes to negotiating the sale of their property.
Owners who run an ad in the paper are often not prepared to answer questions from potential buyers about taxes, much study, the cost of heating and surfaces, or do not have the telephone technique to achieve at unless, the caller to see the property. Aligerar callers from curiosity serious of which requires special expertise. Moreover, most people do not have the time to spend the night showing the house and organize open houses on weekends.
Suppose you manage to attract some potential buyers to your door. Now what? Unless you have the training and skills to "sell" from potential buyers of the house and ask good questions phrased to use them the right way, you can lose perspective of interest based on their communication skills alone . I do not underestimate the difficulty in proving a property with grace, either.
The negotiation of the sale face to face is one of the most difficult and crucial stages of the sales process. If you want to sell privately, do you know how to respond to the objections of the prospective buyer and precise enough to help them make a purchase decision? Will avoid overtalking or overselling?
If you sell your home yourself, there is a good chance that you will end up having too low an offer, either because they have exhausted their patience or do not know how to effectively negotiate with the buyer.
Conversely, it is possible that over-estimating the value of your home. You want $ 150000 and not a penny less, and the home does not sell. A representative of real estate knows the true value of the property and could have saved the effort. Or, perhaps the house is actually worth $ 170000 and that thought made a good acquisition at $ 150000. You may have saved a few thousand dollars commission, but also lost $ 20,000.
And what about other costs? Small expenses such as signaling added. By recruiting a representative of real estate, all expenses, including those of his experience and time, are addressed in the commission of real estate.
Advantages of Listing With Agent
Most homes are sold using the services of the representative of real estate, because it understands aspects of the real estate business and act as their negotiator. A representative of real estate make their living off the sale of houses in their neighborhood and knows well.
The most important service representative is able to provide real estate market analysis -- what properties are selling and how quickly they sell their products. Indeed, the announcement of a property at a reasonable price is probably greater task of selling his house.
If you decide to sell privately, you have to look at the real estate pages of your local newspaper to monitor your competition, reported sales and temperament of the market.
Moreover, a representative of real estate passes through all stages of the sale of his house ad, presentation, negotiation and closing with you. A representative of real estate may also be able to advise on real estate mortgages and the different types of transactions creative you may have to do.
If you decide to sell your home without an agent, you need to do some research, such as finding out how much annual income a buyer must have the requirements to obtain a mortgage on your house so you will be ready to talk money with a serious buyer.
Selling your home can also be emotionally draining. You must try to act impartially and separated from all the memories of your home. There is also the possibility of misrepresentation when trying to sell his own house. All information on the listing sheet (which contains essential information about your home), which will have to prepare for potential buyers must be accurate or it can lead to a lawsuit for you.
In general before considering launching a "For Sale by Owner", to know exactly how much work is required and the knowledge and whether or not you have what is needed. Selling a house is a huge undertaking and requires time, money, resources, marketing skills and experience. For what is probably the largest staff of business venture of his life, which he wants peace peace of mind knowing that received the maximum dollar for your home.
Where to Buy
For reasons ranging from comfort to the resale value, the location must be a paramount consideration in the search for a home. You want to choose a neighborhood where their property will increase in value.
A house near a mill, a bar, or even rental property rarely increases the value of a house, while increasingly homes in the communities may result in the potential wealth. If you are considering moving to a neighborhood you do not know, ask your real estate representative to provide information about recreational facilities, shops, schools and transportation routes.
Also inquire about future development plans in the area. High altitude can climb across the street that six months after moving in, thus blocking his view and decreasing the resale value of your home.
Find out if there are some major projects proposed for the area in the future. The area is prone to flooding, landslides or fires? What about the noise and traffic? Explore the area to see the proximity to roads, playgrounds and garages. They nearby recreational areas for residential use only? It shows the neighborhood 10 years from now.
Bring along a checklist
Once you have traveled a few homes, it is likely to forget that there was an additional bedroom and he had a big backyard. So along a notebook or camera to go home from hunting.
Most listing agents in the houses have opened a list of information detailing the number of rooms, many of the surfaces and the house, property taxes and the state of the aircraft and mechanical systems.
You will want to consider more than the size of rooms and color of the carpet. It is important to look beyond decoration and attention to the location, disposition, and the strength and the basic structure of the house.
Generally, when the trading house, keep in mind that you want to find an affordable home that suits your needs and lifestyle, which is located in a convenient and well-maintained neighborhood. And no mat
A house near a mill, a bar, or even rental property rarely increases the value of a house, while increasingly homes in the communities may result in the potential wealth. If you are considering moving to a neighborhood you do not know, ask your real estate representative to provide information about recreational facilities, shops, schools and transportation routes.
Also inquire about future development plans in the area. High altitude can climb across the street that six months after moving in, thus blocking his view and decreasing the resale value of your home.
Find out if there are some major projects proposed for the area in the future. The area is prone to flooding, landslides or fires? What about the noise and traffic? Explore the area to see the proximity to roads, playgrounds and garages. They nearby recreational areas for residential use only? It shows the neighborhood 10 years from now.
Bring along a checklist
Once you have traveled a few homes, it is likely to forget that there was an additional bedroom and he had a big backyard. So along a notebook or camera to go home from hunting.
Most listing agents in the houses have opened a list of information detailing the number of rooms, many of the surfaces and the house, property taxes and the state of the aircraft and mechanical systems.
You will want to consider more than the size of rooms and color of the carpet. It is important to look beyond decoration and attention to the location, disposition, and the strength and the basic structure of the house.
Generally, when the trading house, keep in mind that you want to find an affordable home that suits your needs and lifestyle, which is located in a convenient and well-maintained neighborhood. And no mat
Home Moving Tips, Facts and Information.
First you have to decide whether you want to use a moving company to make packaging for you, or if you want to do some or all of the packing yourself. In any case, this is a good time to remove the elements that do not need or want more. Do not move, if you are not going to use!
In packaging, packaging materials and advice
If you can afford to hire professional packers, do so for most of the items, especially if you are moving at great distances. Coordinate with them as to the date of commencement packaging.
Start packing a week ahead of schedule, and pack a few boxes every day. Stay organized, check the boxes as you go along with a large felt tip pen. State at the top of the box, which is in the box and the room that is a. In this way not to load more than yourself and maintain their physical and mental to a minimum.
Get packing materials quality as well as the use of professionals. Buying boxes, tape, bubble wrap packaging and paper.
Boxes
Do not try to save money by using used boxes from the shops or previous purchases. These are not adequate to the task at hand and does not move well.
Get a variety of sizes table; Or book small, medium, large, plate and wardrobe boxes. Getting the majority of small and medium-sized boxes.
Just putting books in boxes of books or small boxes of books are very heavy anything bigger than a small box will be too heavy to bring together.
Use wardrobe boxes you pack cloths. Even if it thinks it can happen to you use cloth.
Use plate packing boxes of paper or bubble wrap for the kitchen.
Only the use of large boxes of goods bulky light.
Place heavy items in small boxes
Packing Tape
Obtain and use only the packing tape!
Do not use; Duck tape, tape scotch, reinforced tape or electrical tape. This my sound funny but you will be amazed at what some people are trying to use.
Do not Fold the corner Banks A; Either recorded or not the tape-Not Do It. This weakness of the boxes to make unravel in the worst possible moment.
Fragile Topics
Articles fragile, as plaques and pictures should be placed vertically in the box with bubble wrap, packing paper or cloth stuffed under a glass. Cut boxes can also have a good buffer between topics.
Do you need to move their vehicles
It depends on their circumstances and the distance is moving you might want to hire a professional carrier to move your car, boat or recreational vehicle.
Be careful with your valuables
It gives a lot of information, can not be replaced. Put them in a safe place before reaching packers! . Then you take them by car or plane to its new location Do Not pack them in the movement of trucks.
Travel fabrics and personal items
Be sure to take essential items such as mack - up cloths, toiletries and essential documents it is possible that for a few days. Remember that you are using a moving company you can be the life of a case of demand as well as one or two weeks.
Get an estimate on the Move
Get an estimate on the ground before doing anything with a company on the move. This is being provided at no cost to a company renowned moving. Get several estimates on the ground before choosing a moving company. Be sure to identify all items to be relocated from an accurate estimate of time and price quotations. Make that all companies are using the same assumptions for each estimate.
Avoid hidden costs
The rates of local movements are generally labor cited at the time. Movements long distance was calculated using weight and distance. These measures are regulated by the federal government. Be sure to do your homework and ask your company on the move if there are any additional charges for: heavy such as a safe or piano, decompose and return property. Also check to see if the other party is a charge for stairs or distance from their hoses to the truck.
Its coverage for damage or loss
The moving company will offer two types of coverage:
1) Basic Liability - usually 60 cents per pound per item and should cost anything.
2) Declared Value-This coverage provides protection against loss and damage. The cost of this is based on the value of its shipping and may be subject to a deductible.
Estimated replacement value of their belongings in order to apply it to their own agents on the move. He provided detailed information about their options for coverage. His insurance policy homeowners can also provide coverage for a movement too, be sure to check with your insurance agent.
Moving services contract
Be sure to get a written contract that includes all items to be moved, move day, the date, time of delivery, date of arrival, delivery address, phone numbers, insurance coverage, all costs and charges, and a cost the total figure. Read the contract carefully before signing!
What to do in the days on the move
You need to be drivers of the house when they get to monitor their activities. Stay with the crew foreman on the move as it fills the chip inventory and monitor the loading of your articles in the moving van.
Before signing the sheet inventory, take your time and walk across the house to make sure that all items are accounted for accurately.
In packaging, packaging materials and advice
If you can afford to hire professional packers, do so for most of the items, especially if you are moving at great distances. Coordinate with them as to the date of commencement packaging.
Start packing a week ahead of schedule, and pack a few boxes every day. Stay organized, check the boxes as you go along with a large felt tip pen. State at the top of the box, which is in the box and the room that is a. In this way not to load more than yourself and maintain their physical and mental to a minimum.
Get packing materials quality as well as the use of professionals. Buying boxes, tape, bubble wrap packaging and paper.
Boxes
Do not try to save money by using used boxes from the shops or previous purchases. These are not adequate to the task at hand and does not move well.
Get a variety of sizes table; Or book small, medium, large, plate and wardrobe boxes. Getting the majority of small and medium-sized boxes.
Just putting books in boxes of books or small boxes of books are very heavy anything bigger than a small box will be too heavy to bring together.
Use wardrobe boxes you pack cloths. Even if it thinks it can happen to you use cloth.
Use plate packing boxes of paper or bubble wrap for the kitchen.
Only the use of large boxes of goods bulky light.
Place heavy items in small boxes
Packing Tape
Obtain and use only the packing tape!
Do not use; Duck tape, tape scotch, reinforced tape or electrical tape. This my sound funny but you will be amazed at what some people are trying to use.
Do not Fold the corner Banks A; Either recorded or not the tape-Not Do It. This weakness of the boxes to make unravel in the worst possible moment.
Fragile Topics
Articles fragile, as plaques and pictures should be placed vertically in the box with bubble wrap, packing paper or cloth stuffed under a glass. Cut boxes can also have a good buffer between topics.
Do you need to move their vehicles
It depends on their circumstances and the distance is moving you might want to hire a professional carrier to move your car, boat or recreational vehicle.
Be careful with your valuables
It gives a lot of information, can not be replaced. Put them in a safe place before reaching packers! . Then you take them by car or plane to its new location Do Not pack them in the movement of trucks.
Travel fabrics and personal items
Be sure to take essential items such as mack - up cloths, toiletries and essential documents it is possible that for a few days. Remember that you are using a moving company you can be the life of a case of demand as well as one or two weeks.
Get an estimate on the Move
Get an estimate on the ground before doing anything with a company on the move. This is being provided at no cost to a company renowned moving. Get several estimates on the ground before choosing a moving company. Be sure to identify all items to be relocated from an accurate estimate of time and price quotations. Make that all companies are using the same assumptions for each estimate.
Avoid hidden costs
The rates of local movements are generally labor cited at the time. Movements long distance was calculated using weight and distance. These measures are regulated by the federal government. Be sure to do your homework and ask your company on the move if there are any additional charges for: heavy such as a safe or piano, decompose and return property. Also check to see if the other party is a charge for stairs or distance from their hoses to the truck.
Its coverage for damage or loss
The moving company will offer two types of coverage:
1) Basic Liability - usually 60 cents per pound per item and should cost anything.
2) Declared Value-This coverage provides protection against loss and damage. The cost of this is based on the value of its shipping and may be subject to a deductible.
Estimated replacement value of their belongings in order to apply it to their own agents on the move. He provided detailed information about their options for coverage. His insurance policy homeowners can also provide coverage for a movement too, be sure to check with your insurance agent.
Moving services contract
Be sure to get a written contract that includes all items to be moved, move day, the date, time of delivery, date of arrival, delivery address, phone numbers, insurance coverage, all costs and charges, and a cost the total figure. Read the contract carefully before signing!
What to do in the days on the move
You need to be drivers of the house when they get to monitor their activities. Stay with the crew foreman on the move as it fills the chip inventory and monitor the loading of your articles in the moving van.
Before signing the sheet inventory, take your time and walk across the house to make sure that all items are accounted for accurately.
Selling your home in the current buyers real estate market
When I was growing up, the care of your PyQ's to be better in their behavior. While you do not hear this phrase a lot more, the concept is the goal for the current market purchasers of real estate. Today the house has to prove that it's better to face competition in the market today. So, what are the Ps and Qs real estate? - Price, problems or questions
Let's start with the Ps-Price and Problems:
Each vendor is willing to talk about their attributes of the home. Rarely do vendors want to address even think potential problems, let alone correct. Both attributes and problems that must be evaluated to determine the proper market value and price list to sell his house.
How to manage prices and problems?
The first thing needed is a list of all the possible problems that prevent the sale of the house.
Next, you need to decide which problems can and can not be fixed. While the location of the home can be a problem, which is not easy "fixable", however landscaping is a problem that can easily be solved. Other common problems are corrected easily uproar, unappealing smells too and customization of a home.
Now you need to determine which "Fixable Problems" the owner is ready to deal. Note that the postponement of the solution often postpone the sale.
In our current real estate market there is a strong probability that housing prices in some areas fall gradually over the next year or two. This means that the need for home prices correctly that the first time that the list! If a property is not sold within 30 days, you will have to re-evaluate a new market analysis.
Now, let's talk about the Qs - Questions
You need to ask ourselves what more can be done to sell the property. Ask yourself what a prospective buyer might be concerned about having these answers and ready. I often suggest that the vendors have made an inspection of the house before it goes to the market and correct any problems they find. In today's market can not afford to make assumptions that can respond to the concerns of the buyer later. With so many homes to choose from, later may never come!
Let's start with the Ps-Price and Problems:
Each vendor is willing to talk about their attributes of the home. Rarely do vendors want to address even think potential problems, let alone correct. Both attributes and problems that must be evaluated to determine the proper market value and price list to sell his house.
How to manage prices and problems?
The first thing needed is a list of all the possible problems that prevent the sale of the house.
Next, you need to decide which problems can and can not be fixed. While the location of the home can be a problem, which is not easy "fixable", however landscaping is a problem that can easily be solved. Other common problems are corrected easily uproar, unappealing smells too and customization of a home.
Now you need to determine which "Fixable Problems" the owner is ready to deal. Note that the postponement of the solution often postpone the sale.
In our current real estate market there is a strong probability that housing prices in some areas fall gradually over the next year or two. This means that the need for home prices correctly that the first time that the list! If a property is not sold within 30 days, you will have to re-evaluate a new market analysis.
Now, let's talk about the Qs - Questions
You need to ask ourselves what more can be done to sell the property. Ask yourself what a prospective buyer might be concerned about having these answers and ready. I often suggest that the vendors have made an inspection of the house before it goes to the market and correct any problems they find. In today's market can not afford to make assumptions that can respond to the concerns of the buyer later. With so many homes to choose from, later may never come!
Understanding the Real Estate Short Sale
Short sales are increasingly as a matter of overloading of real estate investors in Pensacola and Destin Florida to watch their needs for the top heavy mortgage obligations. Savvy investors know to be aware of the potential tax liabilities and the impact of short sales in their credit.
The owners will have to consider the effects short viewing will have on their credit rating. A lender usually a brief report to the sales transaction credit. While it may be better than a mortgage, a short sale will definitely leave a significant mark on your credit report.
Short sales occur when a lender accepts an amount less than the amount mortgaged as the total payments to settle the debt of real estate obligation. Essentially, the lender allows the homeowner to sell their property for less than what is owed on the mortgage. For example, let's assume the mortgage on her house is $ 200000 and has fallen behind in her mortgage. You decide what you need to sell your house to be relieved of the remaining mortgage. Your real estate agent tells based on recent sales in your area that sell similar properties for $ 170000 today.
The problem is that the owner of a house that sold his home in a short sale may be subject to a large tax bill based on the amount of the mortgage balance. After the lender to forgive the debt does not diminish the fiscal responsibility. The property will be taxed as if it were sold for the total amount of outstanding real estate loans, or selling price, whichever is greater. If the bank will forgive the $ 30000 shortfall of funds will be reported to the IRS as canceled mortgage debt on their behalf.
Short sales are considered by the IRS to be a cancellation of debt. The Bank will send an IRS Form 1099C-debt cancellation. The IRS believes that the mortgage canceled or forgiven as income to the borrower in fiscal year debt was canceled. You may end up with a large and unexpected tax bill on April 15 next year.
Banks are not always agree with the short sales and generally not considered a too early in the process. Short sales are easier to negotiate if you already have a contract for the purchase of a qualified buyer. The Bank will make its decision based on a number of factors, including the best interests of depositors and the misery of the homeowners. The owners are required to demonstrate that they are insolvent in an audit as a process which can take weeks or months to complete.
The taxability of gain and the deductibility of the loss depends on the nature of the property. The loss may be tax deductible if your property is a rental property. Talk to your tax advisor to see what options are available to you before you short sell their real estate.
Our dedicated Pensacola and Destin Realtors have highlighted the reputation of the services and results for buyers and sellers in Pensacola and Destin Real Estate markets.
The owners will have to consider the effects short viewing will have on their credit rating. A lender usually a brief report to the sales transaction credit. While it may be better than a mortgage, a short sale will definitely leave a significant mark on your credit report.
Short sales occur when a lender accepts an amount less than the amount mortgaged as the total payments to settle the debt of real estate obligation. Essentially, the lender allows the homeowner to sell their property for less than what is owed on the mortgage. For example, let's assume the mortgage on her house is $ 200000 and has fallen behind in her mortgage. You decide what you need to sell your house to be relieved of the remaining mortgage. Your real estate agent tells based on recent sales in your area that sell similar properties for $ 170000 today.
The problem is that the owner of a house that sold his home in a short sale may be subject to a large tax bill based on the amount of the mortgage balance. After the lender to forgive the debt does not diminish the fiscal responsibility. The property will be taxed as if it were sold for the total amount of outstanding real estate loans, or selling price, whichever is greater. If the bank will forgive the $ 30000 shortfall of funds will be reported to the IRS as canceled mortgage debt on their behalf.
Short sales are considered by the IRS to be a cancellation of debt. The Bank will send an IRS Form 1099C-debt cancellation. The IRS believes that the mortgage canceled or forgiven as income to the borrower in fiscal year debt was canceled. You may end up with a large and unexpected tax bill on April 15 next year.
Banks are not always agree with the short sales and generally not considered a too early in the process. Short sales are easier to negotiate if you already have a contract for the purchase of a qualified buyer. The Bank will make its decision based on a number of factors, including the best interests of depositors and the misery of the homeowners. The owners are required to demonstrate that they are insolvent in an audit as a process which can take weeks or months to complete.
The taxability of gain and the deductibility of the loss depends on the nature of the property. The loss may be tax deductible if your property is a rental property. Talk to your tax advisor to see what options are available to you before you short sell their real estate.
Our dedicated Pensacola and Destin Realtors have highlighted the reputation of the services and results for buyers and sellers in Pensacola and Destin Real Estate markets.
Nov 12, 2007
Buying a Second Home
At some point, you may decide to buy a second house to give additional revenues. An income-producing property has many advantages, especially if you only have a small amount of money to invest. In general, your money will be returned to real estate, though you may have to wait for the right time to sell. As a result, there is little capital is at risk.
Moreover, that the property will provide rental income, and its equity will appreciate at a rate that almost always has exceeded inflation in the last 50 years. And depending on the size of your down payment and the rental market, the income could cover their mortgage payments.
There are also a number of tax breaks involved in the property that you should talk to your financial advisor. Expenses incurred in the maintenance of the property, mortgage interest costs and depreciation of property are often all tax deductions. But the accumulation of wealth begins with the purchase of their first home, which can mean a small house, apartment or townhouse. Keep in mind that a fixer-upper house (in a good neighborhood), which does not require major structural work but cosmetic repairs offers profit opportunities.
It is possible that at this stage that now that you have been living in their first home for a couple of years and is thinking about what to do next. To make a real bonus, their property should be allowed to appreciate over several years. Therefore, you might want to rent your house, which will provide a second income, as well as tax breaks -- and buy another house and move to begin the update. After a few years, you can rent the house and buy another until it reaches its goal of, say, half a million dollars in equity, or an amount at which you can retire happily.
Remember, home ownership does not necessarily mean the house of their dreams right off the bat. Starting with a small house helping to build equity, and finally give the necessary financial clout to trade up to a larger home.
Take precautions
Because a home can be profitable, but it does not happen without the effort and wisdom. An inexperienced investor can find many pitfalls if you are not careful.
Here are some tips to keep in mind:
1.Buy a sound financial structure and income-producing property. Always take the time to thoroughly analyze the property.
2.As an owner, be prepared to find tenants, collect rents, manage and finance the periodic maintenance (or hire a property manager).
3.Over time, you should try to improve the property to increase its resale value.
4.With the passage of time and appreciated assets, you can gradually increase the income, resulting in a net income for you.
5.Eventually, you want to sell or exchange the home and reinvest their profits in other properties.
In general, investment in houses, apartments or other income-producing real estate is one of the best ways for the average person to get the highest possible return on the lowest possible investment. Ideally, you want to buy all revenue from the property when you are young can, and enjoy the benefits of income when older.
Moreover, that the property will provide rental income, and its equity will appreciate at a rate that almost always has exceeded inflation in the last 50 years. And depending on the size of your down payment and the rental market, the income could cover their mortgage payments.
There are also a number of tax breaks involved in the property that you should talk to your financial advisor. Expenses incurred in the maintenance of the property, mortgage interest costs and depreciation of property are often all tax deductions. But the accumulation of wealth begins with the purchase of their first home, which can mean a small house, apartment or townhouse. Keep in mind that a fixer-upper house (in a good neighborhood), which does not require major structural work but cosmetic repairs offers profit opportunities.
It is possible that at this stage that now that you have been living in their first home for a couple of years and is thinking about what to do next. To make a real bonus, their property should be allowed to appreciate over several years. Therefore, you might want to rent your house, which will provide a second income, as well as tax breaks -- and buy another house and move to begin the update. After a few years, you can rent the house and buy another until it reaches its goal of, say, half a million dollars in equity, or an amount at which you can retire happily.
Remember, home ownership does not necessarily mean the house of their dreams right off the bat. Starting with a small house helping to build equity, and finally give the necessary financial clout to trade up to a larger home.
Take precautions
Because a home can be profitable, but it does not happen without the effort and wisdom. An inexperienced investor can find many pitfalls if you are not careful.
Here are some tips to keep in mind:
1.Buy a sound financial structure and income-producing property. Always take the time to thoroughly analyze the property.
2.As an owner, be prepared to find tenants, collect rents, manage and finance the periodic maintenance (or hire a property manager).
3.Over time, you should try to improve the property to increase its resale value.
4.With the passage of time and appreciated assets, you can gradually increase the income, resulting in a net income for you.
5.Eventually, you want to sell or exchange the home and reinvest their profits in other properties.
In general, investment in houses, apartments or other income-producing real estate is one of the best ways for the average person to get the highest possible return on the lowest possible investment. Ideally, you want to buy all revenue from the property when you are young can, and enjoy the benefits of income when older.
Planning For a Smooth Closing
You are thinking about the kind of house you want to buy and location. At the same time you are also thinking about how much you can afford for their payment. But there is another issue that you must consider when starting to think about buying a home: the closing costs.
These closing costs, which are charged to the buyer and the seller of credit research, processing of applications, the transfer of ownership, legal fees and insurance-must be paid in cash, in addition to the payment, and at the time of the loan application or close (sellers have closing costs too, and these are deducted from their earnings in the closure).
But do not panic. The key to a good compromise is to know what to expect from the beginning. Since closing costs vary considerably, it is equally important for you to compare services such as legal services, insurance and home mortgage rates, as it can save you hundreds of dollars.
Closing Costs-What are they?
After signing the Contract of Sale, can be several weeks or months before the closure. The transfer of ownership is usually handled by a lawyer or notary public. This is done to protect their interests as well as the interests of the seller and the lender.
Custom Local determines what he pays the taxes, while the buyer is responsible for the bulk of them. As closing costs usually amount to two or three percent of the purchase price, you will have to plan for these additional payments early. In making his task and discover that you may need, for example, $ 5000 from its cash reserves for closing costs, you will not be proceeding blindly in the transaction. Your Realtor, will be happy to tell you how to divide the costs of closure and what you should expect to pay.
Here is a list of some of the services for which you may be responsible.
Title Search:
A review of all documents recorded that affect the property to make sure the seller is the true owner of the house. The search is usually performed by a lawyer. Make your own comparison shopping calling some lawyers or have their Realtor request quotes from fees.
Study Certificates / Plot Plans:
A map detailing the size and location of the house within the property boundaries. Your lender may require this. The buyer pays for the study must be conducted by a licensed surveyor.
Attorney's Fees:
You will have to pay for his lawyer, who also could work for the lender. You will be liable for attorneys' fees and expenses such as the cost of mailing, photocopying, recording and transfer of mortgage rates: These are basically the cost of registration and transfer of property (Fee Simple Estate) in its name and registration its new mortgage.
Buying property tax:
A provincial tax of 1% on the first $ 200000 of 2% later with a reduced rate for first-time buyers.
Bank Fees:
Paid to lenders to cover administrative costs. They may include fees for processing or CMHC application fees, assessment fees.
Building inspection fees:
As explained in the last two weeks columns.
Homeowner's Insurance:
Lenders require that you purchase insurance against fire, flood, theft and other calamities. Shop around for the best coverage and price.
Property Taxes and Water and Sewage Rates:
The taxes are based on a calendar year, but collected in July. If you bought on March 31 you will receive a credit from the seller for 3 months of the taxes they owe, but have not been charged. If you bought on September 30 that will pay the seller for the month of October to December for taxes they have paid.
Taxes on goods and services:
If you buy a new building or a piece of land newly created and defined with the pen of a comprehensive taxation department as a development package.
Sellers fees may include some of the following:
Attorney fees to clear title of the financial burden, such as mortgages, charges or taxes and outstanding judgments. Property Commission; And payments agreed for the repair work.
These closing costs, which are charged to the buyer and the seller of credit research, processing of applications, the transfer of ownership, legal fees and insurance-must be paid in cash, in addition to the payment, and at the time of the loan application or close (sellers have closing costs too, and these are deducted from their earnings in the closure).
But do not panic. The key to a good compromise is to know what to expect from the beginning. Since closing costs vary considerably, it is equally important for you to compare services such as legal services, insurance and home mortgage rates, as it can save you hundreds of dollars.
Closing Costs-What are they?
After signing the Contract of Sale, can be several weeks or months before the closure. The transfer of ownership is usually handled by a lawyer or notary public. This is done to protect their interests as well as the interests of the seller and the lender.
Custom Local determines what he pays the taxes, while the buyer is responsible for the bulk of them. As closing costs usually amount to two or three percent of the purchase price, you will have to plan for these additional payments early. In making his task and discover that you may need, for example, $ 5000 from its cash reserves for closing costs, you will not be proceeding blindly in the transaction. Your Realtor, will be happy to tell you how to divide the costs of closure and what you should expect to pay.
Here is a list of some of the services for which you may be responsible.
Title Search:
A review of all documents recorded that affect the property to make sure the seller is the true owner of the house. The search is usually performed by a lawyer. Make your own comparison shopping calling some lawyers or have their Realtor request quotes from fees.
Study Certificates / Plot Plans:
A map detailing the size and location of the house within the property boundaries. Your lender may require this. The buyer pays for the study must be conducted by a licensed surveyor.
Attorney's Fees:
You will have to pay for his lawyer, who also could work for the lender. You will be liable for attorneys' fees and expenses such as the cost of mailing, photocopying, recording and transfer of mortgage rates: These are basically the cost of registration and transfer of property (Fee Simple Estate) in its name and registration its new mortgage.
Buying property tax:
A provincial tax of 1% on the first $ 200000 of 2% later with a reduced rate for first-time buyers.
Bank Fees:
Paid to lenders to cover administrative costs. They may include fees for processing or CMHC application fees, assessment fees.
Building inspection fees:
As explained in the last two weeks columns.
Homeowner's Insurance:
Lenders require that you purchase insurance against fire, flood, theft and other calamities. Shop around for the best coverage and price.
Property Taxes and Water and Sewage Rates:
The taxes are based on a calendar year, but collected in July. If you bought on March 31 you will receive a credit from the seller for 3 months of the taxes they owe, but have not been charged. If you bought on September 30 that will pay the seller for the month of October to December for taxes they have paid.
Taxes on goods and services:
If you buy a new building or a piece of land newly created and defined with the pen of a comprehensive taxation department as a development package.
Sellers fees may include some of the following:
Attorney fees to clear title of the financial burden, such as mortgages, charges or taxes and outstanding judgments. Property Commission; And payments agreed for the repair work.
Inspect the Home Before You Buy
When shopping for a home, most people tend to only those cosmetic features, such as the size and cleanliness of the premises, and the color of the walls and carpet. However, there are many other important issues to be considered when looking for a house like the soundness and structure. Usually during the preliminary examination process of buyers spend 10 minutes in a house they are not interested in buying and surprisingly only 30 to 45 minutes in the home they select for the needs of their families for a good many years.
Many people today, following the selection of a house are serious about buying, select the rent of a professional home inspector to do a thorough investigation, this is a good idea. These professionals are well-educated and make a living by finding fault with the property purchase. Her report will in the future repairs and maintenance, for the immediate attention and long-term expectations. But until then, can and should be your own inspection, as it saves you a lot of time and money in the long.
If the House Permanent Straight?
Start by yourself, as the House. Are there signs of uneven settlement? A crooked house can cause big problems.
Check the foundation walls. Hair cracks are usually not serious, but large vertical cracks may mean settlement and potential moisture problems.
If there is a veranda, check the angle of him on the ground. If there is a slant, it can either mean that the porch constructed or bad is that the house is settling. Watch for the corridors that gap distance inside ballot as water can cause damage inside the house.
Look at the roof, binoculars work best, or let a professional inspector a thorough review later. Water is of a pitched roof, but it is also difficult to climb. A flat roof may not be the most attractive, but it is easier to access for repairs. However, make sure there are no visible sag in the roof and the chimney is straight and solid. Be sure not missing shingles, curled, suspended or ripped.
You should also look up to the attic to the state of the roofing material and radiation, that the roof. Make sure gutters are in a position around the house, and that they do not expire.
As for the wall coverings, it should be no signs of a bubbling paint or water damage. Do not be afraid to ask, what's under the siding.
While brick is a durable building materials for the exterior walls, the mortar, the stones together can dry, cracking or breaking. Repair costs high, so you can find out whether the mortar joints between the bricks were reinforced.
Shingles can be a lifetime and can easily be replaced, but they can be brittle with age. Aluminum siding has little care when replacement costs can be high. If the exterior is stucco, it should sound solid, not hollow when tapped with a wooden object. Note also that during an unpainted wood surface is resistant to abrasion, painted wood to be re-painted about every five years.
Exterior basement, go through cracks have serious problems, so keep your eyes open for all. The soil should also be built next to the outside walls, so water will drain away.
The road to the house is also the inspection. Cement hikes are usually the safest, while brick walks tend to catch dirt and can be more hazardous work should lose tiles.
In addition, high trees look attractive, the color of the house, reduce air-conditioning needs, and the value of the house, but they can also be annoying. If roots are growing under the sidewalks, they can cement. Verify that the overhead cables are free from interference from tree limbs, too.
If you are unsure of something, ask your real estate agent for his or her opinion, and for the names of reputable test.
Check for cracks, leaks and Patches
When inspecting the house, look at the size of the support beams in the basement. Any collapse could mean the entire structure is unstable. Cracks in basement walls where there is more moisture so make sure the basement is sufficiently waterproofed.
Pierce some of the wood with a knife. If the wood is soft, it could mean dry rot. While this may mean sawdust ants.
When looking at walls painted to look prominent cracks which may suggest poor construction or a pipe heating or water problem.
Tap on the wall surfaces, too. Half inch surfaces are preferable, but if the walboards sound thin and hollow is likely to have the cheapest one-quarter of an inch surface.
If the edges of the background image are curling bear in mind that you will have to replace them. And do not forget to look up. Watermarks on the ceiling may indicate problems of leakage.
If there are wall to wall carpeting to try to lift an edge to see the real state of the word. If there are signs of weakness or uneven wood floor you may need to establish a new floor. Squeaks not necessarily spell trouble, but may indicate poor manpower.
Do not overlook the parts of the house such as heating, insulation, air conditioning and plumbing systems, which can not see and can be difficult to inspect. How heats the house? Ask the seller about their fuel bills. Discover the extent of the insulation throughout the house as the garage, basement walls, crawl space and attic.
Make sure that doors and window frames are caulked and weather stripped, too. You can find the functioning of the fireplace draws blow some smoke in the chimney to see if it goes up easily. We also know whether the storm and screen windows come with the house. Without insulation is poor and you may have to spend a few thousand dollars to purchase them.
If the house has central air conditioning for signs of rust or deterioration in the condenser. As for plumbing, assessing the state of the pipes and drains. Copper, brass or bronze pipes are best, although the new plastics are gaining popularity. If the pipes are exposed in the basement to see if there are patches, wires or rags, or do all the clanking sounds when you turn on the taps again. If so, you know that something is wrong. Flush toilets to see how they are noisy and make sure that the water pressure is good spinning on several faucets at once.
To identify weaknesses before the signing.
When you sign a contract for a home to one of the titles is usually written in the contract is that the purchase is contingent on the report of an inspection service that is satisfactory to you. (His real estate representative will be able to help you with these details.)
In general, wait until after making a deal with the seller before you have to do because you do not want to spend money on an inspection of a house itself than ever. Note that the price of the buyer, the seller must reflect giving to the house of flaws.
In general, every problem is not a disaster and it does not want to turn a well-priced home because you need a few hundred dollars in repairs. But if you can identify weaknesses and determine what repairs will cost before you buy a house you will have the peace of peace of mind that has made the right decision and enjoy more of his house.
Many people today, following the selection of a house are serious about buying, select the rent of a professional home inspector to do a thorough investigation, this is a good idea. These professionals are well-educated and make a living by finding fault with the property purchase. Her report will in the future repairs and maintenance, for the immediate attention and long-term expectations. But until then, can and should be your own inspection, as it saves you a lot of time and money in the long.
If the House Permanent Straight?
Start by yourself, as the House. Are there signs of uneven settlement? A crooked house can cause big problems.
Check the foundation walls. Hair cracks are usually not serious, but large vertical cracks may mean settlement and potential moisture problems.
If there is a veranda, check the angle of him on the ground. If there is a slant, it can either mean that the porch constructed or bad is that the house is settling. Watch for the corridors that gap distance inside ballot as water can cause damage inside the house.
Look at the roof, binoculars work best, or let a professional inspector a thorough review later. Water is of a pitched roof, but it is also difficult to climb. A flat roof may not be the most attractive, but it is easier to access for repairs. However, make sure there are no visible sag in the roof and the chimney is straight and solid. Be sure not missing shingles, curled, suspended or ripped.
You should also look up to the attic to the state of the roofing material and radiation, that the roof. Make sure gutters are in a position around the house, and that they do not expire.
As for the wall coverings, it should be no signs of a bubbling paint or water damage. Do not be afraid to ask, what's under the siding.
While brick is a durable building materials for the exterior walls, the mortar, the stones together can dry, cracking or breaking. Repair costs high, so you can find out whether the mortar joints between the bricks were reinforced.
Shingles can be a lifetime and can easily be replaced, but they can be brittle with age. Aluminum siding has little care when replacement costs can be high. If the exterior is stucco, it should sound solid, not hollow when tapped with a wooden object. Note also that during an unpainted wood surface is resistant to abrasion, painted wood to be re-painted about every five years.
Exterior basement, go through cracks have serious problems, so keep your eyes open for all. The soil should also be built next to the outside walls, so water will drain away.
The road to the house is also the inspection. Cement hikes are usually the safest, while brick walks tend to catch dirt and can be more hazardous work should lose tiles.
In addition, high trees look attractive, the color of the house, reduce air-conditioning needs, and the value of the house, but they can also be annoying. If roots are growing under the sidewalks, they can cement. Verify that the overhead cables are free from interference from tree limbs, too.
If you are unsure of something, ask your real estate agent for his or her opinion, and for the names of reputable test.
Check for cracks, leaks and Patches
When inspecting the house, look at the size of the support beams in the basement. Any collapse could mean the entire structure is unstable. Cracks in basement walls where there is more moisture so make sure the basement is sufficiently waterproofed.
Pierce some of the wood with a knife. If the wood is soft, it could mean dry rot. While this may mean sawdust ants.
When looking at walls painted to look prominent cracks which may suggest poor construction or a pipe heating or water problem.
Tap on the wall surfaces, too. Half inch surfaces are preferable, but if the walboards sound thin and hollow is likely to have the cheapest one-quarter of an inch surface.
If the edges of the background image are curling bear in mind that you will have to replace them. And do not forget to look up. Watermarks on the ceiling may indicate problems of leakage.
If there are wall to wall carpeting to try to lift an edge to see the real state of the word. If there are signs of weakness or uneven wood floor you may need to establish a new floor. Squeaks not necessarily spell trouble, but may indicate poor manpower.
Do not overlook the parts of the house such as heating, insulation, air conditioning and plumbing systems, which can not see and can be difficult to inspect. How heats the house? Ask the seller about their fuel bills. Discover the extent of the insulation throughout the house as the garage, basement walls, crawl space and attic.
Make sure that doors and window frames are caulked and weather stripped, too. You can find the functioning of the fireplace draws blow some smoke in the chimney to see if it goes up easily. We also know whether the storm and screen windows come with the house. Without insulation is poor and you may have to spend a few thousand dollars to purchase them.
If the house has central air conditioning for signs of rust or deterioration in the condenser. As for plumbing, assessing the state of the pipes and drains. Copper, brass or bronze pipes are best, although the new plastics are gaining popularity. If the pipes are exposed in the basement to see if there are patches, wires or rags, or do all the clanking sounds when you turn on the taps again. If so, you know that something is wrong. Flush toilets to see how they are noisy and make sure that the water pressure is good spinning on several faucets at once.
To identify weaknesses before the signing.
When you sign a contract for a home to one of the titles is usually written in the contract is that the purchase is contingent on the report of an inspection service that is satisfactory to you. (His real estate representative will be able to help you with these details.)
In general, wait until after making a deal with the seller before you have to do because you do not want to spend money on an inspection of a house itself than ever. Note that the price of the buyer, the seller must reflect giving to the house of flaws.
In general, every problem is not a disaster and it does not want to turn a well-priced home because you need a few hundred dollars in repairs. But if you can identify weaknesses and determine what repairs will cost before you buy a house you will have the peace of peace of mind that has made the right decision and enjoy more of his house.
Owning a Home - the Investment of a Lifetime
Cool recently asked Nelson to make a weekly newspaper column, I was initially concerned that it would not be enough to write. That notion lasted about three hours, until I considered the seemingly endless supply of topics. So, where to start. Column on the properties should start with the obvious. "Owning a Home-on investment in life."
If you plan to become rich from bank savings, the dream of. The effects of inflation and tax sabotage any potential real growth in overall savings account. Real estate, on the other hand, provides a good opportunity to accumulate wealth in the future. Almost everything else you buy today, vehicles, equipment, furniture, begins to decline as soon as you buy it. But real estate has historically exceeded the rate of inflation.
Of course, the bad economic times, house prices may vary, but most well-located properties will appreciate in value over the long term. And while you can find at home today may seem to have outlandish price, the cost is likely to be significantly higher in the future. You have heard it before: "I could have bought the house 10 years ago for one-half of what is now." Where to invest in real estate, it is never too late.
For most people, owning their own is one of the largest investment life. For many retirees, a pay-out of the house may mean comfortable retirement. In Canada, 63 per cent of all households own their own home according to the 1991 Canadian census. And with today's low mortgage rates, more and more home buyers to take the opportunity to enter the housing market.
Advantages of Owning Home
To begin with, owning your own home is a sound investment. Your property will most likely increase in value, and you can sell it for a profit. Your capital (cash, the difference between the market value of your home, and the amount, but you must on your mortgage) will grow, and the value of your home is increasing, resulting in a stable home ownership and safe investment for you.
The surge in prices in North American real estate during this century has been phenomenal. Inflation is not the only factor that accounted for these increases. Other factors, such as population growth, which requires housing and offers limited land, resulting in an increase in the value of the land.
I do not want to dwell on the past, but I would be happy to pay the person who bought my grandmother's house on Stanley Street in the $ 14000 they paid in 1973.
A great time to buy a house is before or during the early stages of the housing boom in new home construction costs went to the time and energy prices on existing homes up.
Also, in real estate, you will not only come from their savings, but from borrowing more. Without the leverage (use of financing to allow a small amount of money to purchase a property investment), it is difficult to obtain a reasonable return on investment (not that many people can afford to buy housing today without the help of borrowed money).
For example, suppose you bought a $ 100000 house (hard to find great, but as an example), with 10 per cent advance, using 90% leverage ($ 90,000) and a year later, the value of homes has increased by 10% to $ 110000. Since he appreciates the $ 10000 and investments $ 10000 return on investment is 100%. On the other hand, if you bought in the same house for $ 100000 in cash, the return on investment would be only 10%. Therefore, getting more leverage, as can be when buying real estate offers you a lot more returns on invested dollars.
Finally, there is also the pride of owning your own home that can give you and your family a sense of security. Owning your own house offers you a private, as a rule, more living space and more flexibility to make changes to the house and grounds.
If you plan to become rich from bank savings, the dream of. The effects of inflation and tax sabotage any potential real growth in overall savings account. Real estate, on the other hand, provides a good opportunity to accumulate wealth in the future. Almost everything else you buy today, vehicles, equipment, furniture, begins to decline as soon as you buy it. But real estate has historically exceeded the rate of inflation.
Of course, the bad economic times, house prices may vary, but most well-located properties will appreciate in value over the long term. And while you can find at home today may seem to have outlandish price, the cost is likely to be significantly higher in the future. You have heard it before: "I could have bought the house 10 years ago for one-half of what is now." Where to invest in real estate, it is never too late.
For most people, owning their own is one of the largest investment life. For many retirees, a pay-out of the house may mean comfortable retirement. In Canada, 63 per cent of all households own their own home according to the 1991 Canadian census. And with today's low mortgage rates, more and more home buyers to take the opportunity to enter the housing market.
Advantages of Owning Home
To begin with, owning your own home is a sound investment. Your property will most likely increase in value, and you can sell it for a profit. Your capital (cash, the difference between the market value of your home, and the amount, but you must on your mortgage) will grow, and the value of your home is increasing, resulting in a stable home ownership and safe investment for you.
The surge in prices in North American real estate during this century has been phenomenal. Inflation is not the only factor that accounted for these increases. Other factors, such as population growth, which requires housing and offers limited land, resulting in an increase in the value of the land.
I do not want to dwell on the past, but I would be happy to pay the person who bought my grandmother's house on Stanley Street in the $ 14000 they paid in 1973.
A great time to buy a house is before or during the early stages of the housing boom in new home construction costs went to the time and energy prices on existing homes up.
Also, in real estate, you will not only come from their savings, but from borrowing more. Without the leverage (use of financing to allow a small amount of money to purchase a property investment), it is difficult to obtain a reasonable return on investment (not that many people can afford to buy housing today without the help of borrowed money).
For example, suppose you bought a $ 100000 house (hard to find great, but as an example), with 10 per cent advance, using 90% leverage ($ 90,000) and a year later, the value of homes has increased by 10% to $ 110000. Since he appreciates the $ 10000 and investments $ 10000 return on investment is 100%. On the other hand, if you bought in the same house for $ 100000 in cash, the return on investment would be only 10%. Therefore, getting more leverage, as can be when buying real estate offers you a lot more returns on invested dollars.
Finally, there is also the pride of owning your own home that can give you and your family a sense of security. Owning your own house offers you a private, as a rule, more living space and more flexibility to make changes to the house and grounds.
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