FHA and Investor Specialist

Last week, we started taking a look at a checklist of items that every buyer should focus on when getting a home. The priority list should include location, size of home and lot size. Why are those the first and most critical pieces to buying a good investment? Go ahead and reread Part One of this series at www.coloradodreamhouse.com/denverpost.

Today, I want to focus on the things that you could live without and probably could sacrifice if you are buying a home on a budget.

1) Condition: Believe it or not, condition of the property does not make the top three in the priorities list. The reason is simple and that’s because even the worst properties can be fixed up. Now, I know that you are buying a home on a budget and may not have the resources to fix it up, but it doesn’t have to be done all at once. A project can happen slowly overtime, and if you are even remotely handy, it can be done with some classes at a home depot, a small budget, and a little hard work.

2) Garage: It’s always nice to have a big garage. These days it seems like the three-car garage is the norm and some people can’t even fathom living with a two-car garage or no garage at all, but it doesn’t make the priority list. If you have to make some cuts and you can’t get everything you want, think about sacrificing here. Would you want a smaller house, but a bigger garage? Or a smaller lot and a bigger garage, or even a three-car garage, but a bad location? The answer is no, no, and no. Location, lot size, and size of the home will trump a garage any day.

3) Layout: I hear this more often than you would think, “I don’t like the layout.” Layouts for the most part can be changed as long as you are not attempting to move a load bearing wall. Plumbing, electric, HVAC, and yes, rooms can be changed or moved.

Remember, stick with the big three priorities: location, lot size, and size of the home. If you did well in those three categories, you got a great buy and a home that will be a good investment.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Ok, so you only have so much money to spend on a new home. You are realistic about what you can buy with that money and after looking at quite a few places, you know that you are not going to be able to get everything you want. The question now becomes: ‘What things do you sacrifice and what characteristics are critical for a good investment?’

Here’s a quick checklist of how you should evaluate buying a home on a limited budget. I have broken it up into two categories, “Must have’s” and “Not Necessary.”

First, if you stick with these “Must Have’s,” you’ll never go wrong and your house will not only be an enjoyable place to live, but a good investment should you decide to sell it.

1) Location, Location, Location: The critical things to look for are: Is it in a desirable neighborhood where people want to live? Are homes always in demand in this neighborhood? Is it in a good school district? Is it at the end of the cul-de-sac or a non busy street? Does it have a view: back to the mountains or a greenbelt? And how are the other homes in the neighborhood?

2) Size: You should always be looking to buy the biggest home for your money. There is no such thing as too many bathrooms and bedrooms, but it is a problem when there are not enough.

3) Land: Yard size is still a big deal. At least it is in Denver, Colorado. Everyone wants more yards and it’s hard to come by so get the biggest lot you can. If you bought a home that sits on a 3200 sq ft lot, you may have a tough time reselling that home.

There are a variety of things that you can live without and shouldn’t be a top priority if you are buying a home on budget. Next week, we’ll take a look at the checklist of items that you might consider sacrificing before buying a new home.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

So you’ve seen your umpteenth infomercial with the guy in his neatly pressed button-upped white T-Shirt grinning ear to ear waving his rock-solid no-money-down rags-to-riches real estate investment course for 3 easy payments of a gazillion dollars (but only if you call now) and now you are thinking, "wow this looks like a great deal, I better get it fast before the special offer expires." You notice how there’s always a special offer? Anyway, I am not saying this guy isn’t telling the truth, however regardless of which course or school of thought you buy into there are several key areas that one must avoid when engaging in any real estate related transaction.

Pitfall Number 1: Don’t Overpay! The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the market you are looking after, and of course identify what is considered a good buy.

Pitfall Number 2: Know the Market Yes, you are actually going to have to do more work! This part is really common sense though, but executing it where the beauty and the payoff comes in. How do you make money in real estate? The most basic way is to buy low and sell high. So from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes. Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well there are many ways. For one, most markets appreciate in value over time so if you want a longer term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it; you are trying to sell it to someone else for a higher price than you bought it.

Pitfall Number 3: Know Your Budget It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek, however you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades, and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before actually going forth with investing in real estate.

HOW TO KNOW IF A GOOD AGENT IS A GOOD FIT

"I happily referred a couple of agents who came highly recommended and whom I thought would be a good fit for clients moving out-of-state who didn't want a previously bad home-buying experience repeat itself.  In a follow up email they asked me how to know if he or she would be a good fit.  Thus the following excerpt from an email: 

"Some traits of a good buyer agent (some I'm sure will dictate a better fit than others):

• Honesty
• Respect
• Listening skills
• Organized
• More interested in helping you find the right home than racking up a sale
• Specific knowledge of the neighborhood (and sale history - e.g., median price over last year) of the area(s) you target
• Negotiating skills
• Experience
• Detail-oriented
• Follow-up
• Conscientious
• Takes your questions seriously and addresses concerns
• Accommodates to your schedule (and you to theirs)
• Not blinded by curb appeal - tells you the good, bad, ugly
• Runs comparables of homes under consideration
• Provides referrals to reliable attorneys, home inspectors, tradespeople, etc.
• Experience working with sellers

BUT:

• Make a list of pros and cons (another one!) of agents you speak to
• Would both of you feel comfortable working with that agent?
• Does the agent hold realtor designations? E.g., CBR, ABR and/or CRS designation - which means they've taken the time to be the best buyer's agent they can be
• Do they have the Realtor designation?  Some good agents may not hold that designation (but it does mean they've taken ethics training).

ASK:

• Particulars of the transaction process in CA which are different from MA
• What does the buyer agency agreement entail
• How they usually work with buyers

"When I first meet, email or speak to a potential buyer, I want to get a sense of them to see if we'd be a good match:

• Why they are buying
• Their lifestyle - which goes a long way toward explaining what homes would be a good match and directs the rest of the search
• Have they been pre-approved?  If not, I recommend reliable lenders before our first meeting.
• Amount and flexibility of down-payment
• Time frame
• If children are (or will be) in the picture (e.g., lead paint law, schools, etc.)
• Have they met with other agents
• How much do they want me to be involved in the transaction
• Knowledge of the local market
• Best way to communicate
• Plus the usual as to location, schedules, and anything they can think I should know to make it the purchase of their home a pleasant experience

"Personally, in the past, I shopped around for agents by talking with them at open houses (if they weren't too busy) mostly because I like to collect as much information as possible before I commit - but as we both know you can garner a lot from the web.  I wouldn't recommend signing in at open houses until you secure an agent or everyone will be calling you - some aggressively.  I suggest taking a listing sheet and/or business card instead to take quick notes on the agent.

"Name a time if you want to talk!"

 

 

 

 

 

 

 

Home Buyer's Agent | Gloucester County Realtor

Why bother hiring a Home buyer's agent when there is a perfectly good phone number on the sign!?

The benefits of hiring your own agent are overwhelming.

1.  You have someone negotiating for only your best interest.  When you hire a Home buyer's agent they work only for you, the buyer.  Your interest and well being are their only concern. The listing agent's main goal is to service the needs of the seller.   

 2.  The cost of hiring your own agent - FREE.  The commission due to the Home buyer's agent will be paid directly from the seller's funds at settlement.  There is no charge to the buyer. 

3.  Up-to-date knowledge on financing options.  A good Home buyer's agent will be up-to-date on financing options available to buyers.  They will also have information regarding grants and loans for first time home buyers.

4. Exposure to more home choices.  Is a buyer's search on sites such as Realtor.com or Trulia the same as a Realtor's detailed search, market knowledge, and professional experience? Certainly not.

5.  Notification of new properties on the market.  A Home buyer's agent will sometimes know of homes before they are available on internet home sites or even the MLS.  This will allow the buyer to be the first person to tour the property. 

6.  Confidentiality.  A buyer's agent can NOT disclose any information you have shared with them to the sellers or seller's agent without the consent of the buyer.

7.  Reputation.  A good buyer's agent will have a good reputation behind them.  This can help drastically when presenting offers. 

Hiring a buyer's agent is a win-win situation.  You have someone in your corner, holding your hand through out the entire transaction.  They will use their market expertise to find your "perfect" home and the best part; It won't cost you a dime!

 

 For additional information contact Andrea Kappre - 856-419-3560.

Andrea Kappre is a Realtor in Gloucester County NJ, helping buyers and sellers to successfully accomplish their real estate goals. For your own customized MLS search of homes for sale in Gloucester County or other South Jersey areas, call or e-mail Andrea Kappre now.

Contact Andrea Kappre at 856-419-3560 or AndreaKappre@yahoo.com

 

    

Many of you showed interest in this post, and I thought it might make some sense to "flesh out" terms and conditions  a well-drafted Tenancy in Common Agreement or Joint Tenancy Agreement (the "Uncoupling Documents") might contain. There is nothing magic here: common sense and simplicity should always be the ruling impulses.

Here are some ground rules.

     1. Both parties should have counsel. If people are willing to enter into an agreement like this, they want it to be enforceable somewhere down the road. It is perfectly acceptable for one attorney to take the laboring oar in drafting, with the other attorney serving in a "review" status. That will obviate the ability of a party to say, "I did not understand" or "I signed but I didn't know what I was getting into." The cost of a reviewing attorney should be minimal.

     2. There is no need to record this document. At least in Massachusetts, where I practice, recording serves the function of giving notice to the world of a certain set of circumstances affecting a property. It is title driven. The Uncoupling Documents do not affect title. They are simply some understanding the parties have with regard to their ownership. As a point of fact, recording the Uncoupling Documents may complicate title review.

     3.  Basic "Exit Approaches" I have used.

          a. Notice to the other person with an Offer to purchase at a price. The other person has thirty (30) days to accept or say that he or she will buy the offering person's interest at the price in the first offer. This keeps the offers from the first person honest and fair.

       b. The same Notice as Paragraph 3a, but no price. Each party then selects an appraiser, and the price is the average of the two appraisals. There is a variation of this approach which has the appraisers selected by the parties selecting a third appraiser, andthe thrid appraiser doing the appraisal, and it is binding. This appraoch has the merit of having the price be accurate. I still like to give the "non-offering" party a chance to buy at whatyever price has been determined.

       c. Whoever ends up withdrawing, at whatever price, there is a provision for delayed payment. I usually suggest a down payment of at least 20%, with the balance to be paid over three (3) years at prime plus 2%. There is obviously no magic in this, but some formula should be included to give the other person time to buy out the withdrawing person. A sale of the dwelling would trigger payment in full at that time.

       d. Sell the property and split the proceed. This may be the easiest, and cleanest, solution. Each party should be able to require this. It clears the air, and gives eachparty the ability to "move on" and not have to deal with the other on any continuing basis. I have found it helpful to make some provision for slecting a firm or person to market the property is another good provision for the Uncoupling Document.

Most people will honor a written agreement that they understand and have signed. The problem in the Uncoupling Scenario is that people have a real problem agreeing on what is "fair". There is hurt or deception mixed in to their relationship. The ability to have a well-drafted and easily to understand exit strategy can ease the pain for both sides. That is what I have found in my more than forty (40) years of trying to help people protect themselves.

In Massachusetts, where I have been practicing real estate law for more than 40 years, many unmarried couples purchase real estate together. Some engaged people are trying to take advantage of the current low interest rates, and market indecision, to get something "we own before we marry". Other couples, whio never intend to marry, have the inclination to pool their assets to make joint ownership  a part of their personal relationship.

When I assist people in purchases who are in this situation, I explain to them their two ownership options; tenancies in common and joint owners with right of survivorship. Only the extremely practical even consider tenancies in common, whereby at the death of one of the owners, his or her undivided one half interest in the property passes to the person's estate. Almost everyone chooses "joint ownership with right of survivorship" I might add that in each of these situations, I strongly suggest that the parties enter into Tenancy In Common Agreements or Joint Ownership Agreements to provide in advance for the possibility that they may part company from each other while owning the property in both names.

Very few clients are willing to enter into the Agreements I outline above. I may write a future post on what  terms and conditions these documents contain. In any event, most couple says "No", so when a couple breaks up, the "fun" really starts. One party moves out, and says "why should she continue to make the mortgage payments, I no longer live here".  And "by the way, I put down most of the down payment, and I want my money back, NOW" "I will only pay the mortgage payment if I can claim ALL the deductions on my tax return."  "I will not sign for a refinancing, even at better rates, unless you buy me out on my terms" "OK, if you have moved out, I am changing the locks, and you cannot have access to the property" I can honestly tell you I have heard all these statements and more.

There is a judicial solution for these situations. It is called a "Petition for Partition" and it is an equitable proceeding, wherein all the factors involving the Tenancy are examined. It is not cheap!!! It is not fast!! It rarely reaches a conclusion that addresses all the concerns of the parties!!!

When you, as real estate professionals,  see an unmarried couple buying real estate, urge them to enter into some kind of "exit strategy" agreement. It is truly for their own good. A failure to have something in place can only exacerbate the drama of the break up. This piece of advice could be the single most important thing you do for these customers; they will thank you somewhere down the line. Topkins & Bevans are there to help, if any of your customers wish to discuss this entirely sensible, and prudent, strategy.

Most consumers do not realize that the listing agent represents the seller. They go to open houses on their own, sign in with wrong names and telephone numbers and ask the agent information about seller's motivations.If the buyers are really serious buyers, they will benefit by signing a Buyer's agent contract.

The seller's agent will not divulge any information that the seller has confided in them.The agent's job is to get the highest price for the property.If the seller's are getting a divorce, they will not tell you about it, because you will make a low offer.They are only permitted to give you information that the seller has agreed to.If the seller has said they would list at say $350,000 and said they would go as low as $325,000 the agents  will not tell you about it.They will give you a seller's disclosure about material defects but that is all.

A Buyer's agent is usually paid by the seller's agent based on an offer to cooperate, through the multiple listing service.You should read your Buyer's Agent contract carefully.If the agent is not expecting you to pay , why would you not want a Buyer's Agent to represent you?

Here are the advantages of hiring a Buyer's Agent:

1. The Buyer's Agent will show you properties that meet your set criteria and guide you every step of the way.Yes you can look on the internet, but the agent finds out first through the multiple listing.

2. The Buyer's agent will do a market analysis for you ,to help you determine a fair price, so that you will not overpay.

3. The Buyer's agent will negotiate good terms and price on your behalf. Some people think that the agent will try to sell a property at a higher price to get more commission, because the fees are a percentage of sale price.If you really calculate the extra fees an agent gets by selling for say $5000 more , it is negligible, ,compared with what the agent gets from referrals by helping a buyer get a good price for a property.

 4. The agent can also represent you when you buy new construction. The sales person at the model home represent's the builder. If you are thinking of buying new construction and are thinking of hiring a Buyer's Agent,please do so before you go to the new construction.The agent should accopnay you on your first visit and register you.

5. You might be tempted to go to sale by owners, to save money. Yes sometimes the seller who sells on his own may not know market price and sell cheap.But most often they sell on their own to save the money and not to give you a bargain. If you do buy from a owner selling on his own, please get an attorney to protect your interests and make sure you get a seller's disclosure. Some real estate agents also help with paperwork for a fee..

 

Your home is the probably the biggest investment you might make . Wouldn't you want someone to represent you?

If you are looking for a home in Philadelphia area, Bucks or Montgomery counties please call me.I am an accredited buyer's representative and hold the ABR designation. If you are looking to buy anywhere else I will be glad to help you find a good agent.

Visit my web site www.GitaBantwal.com. and view 1000s of listings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Many prospective buyers who have been sitting on the real estate fence will be thinking more seriously about a home purchase in the year ahead. And why not? Interest rates are still very attractive, prices are still competitive, and more buyers than ever may qualify for a substantial tax credit just for making a purchase.

With a little planning, inexperienced buyers can sidestep some common mistakes and make their home purchase a successful one.

Here are four home-buying mistakes you don't want to make:

● Not getting prequalified by a reputable local lender.

Until you sit down with a reputable lender and tell him or her all about your financial situation, you are not in a position to even consider buying a home.

You can't know what you can afford, and you can't know how much you can likely borrow. In addition, a good lender will match various loan products to your personal needs. For example, if you only plan to stay in Atlanta for the next five years, you may save money with a 5 /1 ARM rather than pay a higher rate for a 30-year fixed loan.

● Not working with a real estate professional.

After you have met with a local lender, your next stop should be the office of a seasoned real estate professional.

Trying to buy a home without representation is like trying to tune up a car engine by yourself. Yes, it can be done, but there is no benefit in doing so.

If you end up buying a listed home, the seller will pay for all commissions. And if you end up buying from an owner, both of you will be fighting over the same dollars. Take my advice and ask someone you trust to recommend a veteran real estate broker.

● Failing to shop and compare.

The primary purpose of seeing more than one available home is to match your wants and needs with the features of the properties that meet your criteria. Because each house is unique, it pays to take some time to shop and compare until you find the best possible match.

In other words, don't rush the process.

● Not buying by April 30 and missing a federal tax credit.

The $8,000 First Time Homebuyer Tax Credit and the $6,500 Repeat Homebuyer Tax Credit are both set to expire at the end of April of this year, although if you have a signed contract by that date, you can have until the end of June to get it closed. Don't miss the deadline.

Follow these simple guidelines and your home buying experience will be a pleasure.  And don't wait--Congress has vowed that the tax credit will not return!