Apr 28, 2023 | Home Buyer Tips
Many home buyers have found the perfect house, signed on the dotted line and may think they’ve watched enough home improvement shows to know if the home they’re getting is in good shape. Unfortunately, some buyers make the mistake of skipping a home inspection in order to save a little cash.
Even if a home has already stolen your heart and you’re ready to pay for it as-is, you need to bite the bullet and hire a home inspector to let you know what repairs and financial repercussions await you.
Why You Should Hire A Home Inspector
You might know a thing or two about home remodeling and repairs. However, most people are not experts on the inner workings of a home. That is why it’s important to hire a professional to search for potential furnace issues, electrical wiring mishaps, plumbing weaknesses or roofing deterioration to name a few.
While a home might look like it’s in perfect condition on the surface, there could be major issues hiding beneath its façade. That’s why it really is imperative for your safety that you hire an inspector to scrutinize the bones of your home. Understanding any imperfections may also help you budget for immediate and future repairs.
When to Schedule the Home Inspection
Once you’ve signed a purchase contract, you’ll want to schedule a home inspection before the inspection period has ended. Even though you’ve signed the offer, an inspector could just find something that you just cannot live with or afford to fix.
While you would normally schedule an inspection after you’ve signed a contract, it’s important to have an inspector or two picked out beforehand. Ask your real estate professional or friends and family for referrals and then contact the inspectors for pricing and a list of what they will and will not cover at the inspection.
Once again, remember that the cheapest price may not be the best deal on home inspections. Have a good understanding of what, and who, you are investing in.
Even if you do know a lot about the structure, plumbing and wiring of houses, don’t let your ego get the better of you. It’s important to shell out the additional money to hire an inspector and cover your assets. You’d hate to end up with a home that needs major renovations and not have known about it.
For more information on hiring a professional for your Worcester County area home inspection or for a referral, please call today!
Apr 21, 2023 | Home Buyer Tips
Are you buying a property as your second home? Perhaps you are looking for a small cottage or apartment where you can escape to for your vacations, or maybe you want to have another home closer to your relatives?
Maybe you want to rent out your second property and make a steady income from your investment. Whatever the reason, a second piece of real estate can be a fantastic investment. However, sometimes getting a mortgage on your second home can present a challenge.
Generally, a mortgage lender will have tougher standards for vacation home — or second home — loans than primary home loans. This is because usually when you are buying a second home your finances will be stretched thinner and you will have less money to spare due to already paying a mortgage on your primary home.
This additional risk may mean that your second home mortgage can be more difficult to close and likely could carry a higher interest rate.
Here are three tips to keep in mind that will help you to get the best mortgage on your second property:
Build up a decent amount of savings.
Your mortgage lender will want to be able to see that you have a large amount of savings in reserve so that you will have enough to pay for the mortgage even if you were to lose your job or other income source.
Pay off any credit card or installment debt.
Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.
Use your primary home as a resource.
If you have always made your payments on time and you are well on your way through paying off your first house, you may have equity to borrow against for some or all of your second home purchase. Be careful here though. There is a little known IRS regulation that requires the second home be financed under it’s own home loan within 90 days of closing to get the best tax advantages.
These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible.
To find out more about investing in a second home or vacation property, contact your trusted real estate professional today.
Apr 14, 2023 | Home Buyer Tips
You’ve got a new job offer across the country and you are planning to pack your things, buy a home and make the big move.
However, when you tell your 17 year old daughter your plans, she lets out a mournful wail and cries that it is not fair. How can you possibly take her away from all of her friends, her favorite hangout spots and the cute boy she just started seeing?
Moving is a difficult transition and it is often even more traumatic for teenagers. The teenage years are an important stage where young adults establish their individuality and independence and during this time their social circle is extremely important to them.
Being removed from that against their will can make any teen feel sad, confused, angry and resentful. Also, fitting into a new social scene in a different location can be a challenge for a teen that might be singled out as the “new kid”.
How can you help your teen during this transition so that the experience will be easier on them?
5 Tips To Help Your Teen Move More Smoothly
Here are some tips that will make the experience of moving a little bit easier on your teenager:
- Give them as much notice as possible so that they have time to adjust to the idea of moving. They will feel like they have enough time to say goodbye to their friends and close a chapter of their lives.
- Try to schedule the move around the school calendar, as moving in the summer is much less disruptive to your teen’s life than relocating in the middle of the school year.
- Make sure that they have ample time to spend with their close friends before they leave and once you arrive, understand that they might go through a grieving process of missing their old pals.
- When you get to your new home, make sure that your teen has plenty of ways to keep in touch with their old friends, such as an internet connection and a cell phone plan.
- Encourage your teen to get involved in the community of your new hometown, like joining sports clubs or attending events. This can help them to make new friends.
Moving to a new city is always exciting but offers challenges like this one for families. For more advice on moving to a new Worcester County area home, contact your trusted real estate agent today.
Apr 7, 2023 | Home Seller Tips, Uncategorized
It may seem like the hard part is over once you’ve received a few offers on your home and are preparing for the negotiation process. Unfortunately, anything can happen until the papers and signed and this means that potential homebuyers can back out. If you’re dealing with a wavering bidder and are wondering how you can win them back, here are some reasons they might withdraw and how you may be able to win them over.
The Price Is Too High
It’s possible that when it comes to negotiating, many interested parties will offer to put down a little more than they otherwise would have; however, when it comes to sealing the deal, they may realize the price is a little higher than what they wanted to spend. Instead of letting the negotiations fall through, consider lowering your price slightly to give the potential homebuyer a hook. You don’t have to lower your price by a significant margin, but it will let them know that you’re still interested in selling to them.
An Unresponsive Negotiation
The power may be in your hands when someone is interested in your home, but it’s still very important to stay responsive so that you can ensure a potential homebuyer won’t lose interest. If you may have rubbed someone the wrong way with a slow response time, ensure that you reach out and keep them aware of the process and your timeline. It may seem like a small gesture, but it means a lot to someone who is interested in your home and may be working under a time crunch.
Still Not Convinced?
There are a variety of reasons that a homebuyer may withdraw from negotiations, whether it’s the neighborhood or too much home or they’ve found a better deal. But, if you’re really interested in the offer you’ve received, you may want to consider offering a little extra in order to win them back. Whether you decide to pay their closing costs or provide a closer move-in date, there are plenty of little things you can do that will make them re-consider their options.
There are many reasons that a buyer might withdraw their offer on your home, but by being communicative and offering some extras you may be able to re-negotiate a deal. If you’re currently preparing to put your home on the market, contact your trusted real estate professional for more information.
Mar 31, 2023 | Uncategorized
The U.S. Secret Service has seen a sharp increase across the country in reports of fraud involving vacant land. A common scheme playing out in the current real estate market involves scammers posing as owners of vacant land, wanting to sell quickly for cash at below market prices who then disappear without a trace. An unknowing buyer winds up with no land and the loss of a lot of money with little to no chance of recouping those funds. This can occur with both residential and commercial land.
The recent tactics the scammers have implemented begins with scammers researching local land records to find vacant land with no liens or encumbrances. Once they have identified the owner of the land, they pose as that owner and contact a realtor to list the property for sale. It is common that they will list the property at below market value for a quick sale and indicate a preference for a cash sale. They typically communicate only by email or text. They will arrange for their own notary signing of documents and claim to be in another state or another country. The purported notary is likely to be one of the fraudsters using the identity of an actual notary. They may even be signing by power of attorney and the attorney-in-fact is not local. At the time of closing, the closing attorney or title company transfers the proceeds to the scammer. The fraud is typically not discovered until after the sale has been consummated.
We’ve heard that these frauds are happening in New England. In one such incident that was shared with us, the seller claimed to be in South Africa and obtained the identity of a notarial officer in the embassy consulate and produced a deed that appeared to be officially notarized. The fraud, in this case, was discovered after the deed was accepted by the local recording office and funds disbursed. Although unconfirmed, we have reason to believe someone at the local recording office, handling the deed as part of the office’s administrative tasks, recognized the name of the seller as a friend and contacted the true owner and asked if they had sold their property. This led to the discovery that true owner had no knowledge and had not put the property up for sale.
Another scammer claimed to be in California and was planning to sign the deed with a power of attorney. This was a near miss as the buyer had a question about a zoning issue and called the seller who knew nothing about the proposed sale.
The Rhode Island Association of Realtors recently published an article on this type of fraud. The article identifies several cases of vacant land fraud schemes attempted in Rhode Island and lists several actions a real estate broker or sales person can take to avoid becoming an unwitting facilitator in the schemes. To read the article, follow this link:
Here are some tips on how to prevent a loss from a vacant land scam:
1. Be on alert when your transaction is for vacant land.
2. Send an introductory letter to the seller at their address as it appears in the Tax Assessor’s database, confirming that they are selling their property. Stewart Title has a template for a seller letter available in this bulletin by clicking the “form” link: https://www.virtualunderwriter.com/en/bulletins/2022-4/sls2022004.html
3. Independently do an online search for the identity of the seller.
4. Require the seller to show ID over a virtual meeting.
5. Verify the notarial officer in the state or country they are from and contact that officer to confirm they notarized the document in question and reviewed the seller’s ID.
6. Subscribe to a service that can confirm wire instructions for your seller.
7. Pay attention to a feeling that all is not right with this transaction.
8. Make sure your staff is aware of this type of risk.
This list is not exhaustive, and awareness is key. Scammers are always looking for the next best way to part people from their money and this particular type of fraud is incredibly costly. In a challenging real estate environment, we are all at risk. Our diligence is the best tool for us to avoid this type of scam.
Stewart Title has a recent Bulletin regarding this topic that you should find helpful and, as always, please reach out to your local underwriter if you encounter any red flag or have questions.
https://www.virtualunderwriter.com/en/bulletins/2023-1/sls2023003.html
