Aug 29, 2014 | Home Buyer Tips
Whether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs.
It’s perfectly normal to feel anxious about whether or not you’ve found the right property. Here are some things you can do to make yourself feel more secure with your decision.
Do The Math
You’ve probably already done this, but it’s okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add everything up.
It sounds like a stressful activity, but when you look at the numbers and realize that buying a home is actually doable, it can be a liberating feeling.
When you know for sure you can make it as a homeowner without getting underwater, you will feel more confident.
Meet The Neighbors
If you haven’t had the chance to knock on a couple of doors yet, you should spend some time saying hello to people in the neighborhood.
The more you can get to talking with families that are just like yours, the more you will be able to picture yourself as a member of the community. If you have kids, find out if there are other kids the same age nearby. That will help to ease their anxiety about moving as well.
Ask Your Agent
Don’t feel like you are being overly cautious if you ask your real estate agent your lingering questions. Make sure you’re getting a good price for the area, and make sure you know about any issues with the condition of the property. You should be able to trust that they’re excited for your decision, not just for making the sale.
Familiarize Yourself With The Neighborhood
Take a drive and figure out which stores you’re nearest to, the route you can take to get to work, and which other amenities you might take advantage of. Home buyers often underestimate how important living in a safe neighborhood with plenty of accessible businesses can be. The more you can imagine yourself living at your new address, the better you will feel.
Remember, never sign the papers on a new home unless you feel one hundred percent secure in your buying decision. If you need more answers, pick up the phone and contact me. I can introduce you to the finest real estate professionals (Realtors and Mortgage Lenders) in the area. David 978-728-5104.
Also remember when buying, selling or refinancing real estate, start with a real estate attorney.
Aug 27, 2014 | Home Buyer Tips
When the sale of real estate takes place, a certain amount of time might be allotted after a contract is created but before the transaction is finalized. During this time the buyer may decide not to follow through with the deal set forth in the contract. This ‘option period’ allows buyers to have a property inspected and its value ascertained without the risk of losing the property to another buyer.
What Happens When The Option Period Takes Place
Typically, a buyer must pay an option fee in order to be able to enjoy the luxury of an option period. During the option period, property inspections are typically carried out on the property in question so that the buyer can be sure that the proposed offer is appropriate.
The nonrefundable option fee that the buyer pays the seller (so that the seller agrees not to follow through on a transaction with another prospective buyer) compensates the seller for the time during which the property is off of the market.
Differences Between Various States
It is not always possible for a buyer to have an option period during which he or she can finalize plans to make a purchase on a property. Regulations and procedures between different states vary significantly.
It is worth noting that the state of Texas has a real estate market that is particularly well known for granting option periods. In Texas, the option period usually lasts between seven and 14 days and serves as a period of time during which inspections are carried out; however, other states have different ways of dealing with option periods and scheduling inspections.
Associated Expenses
The particular laws applicable where a sale takes place will often dictate how much a buyer needs to pay to the seller in option fee charges. In the state of Texas, for example, the option fee is usually no greater than 1 percent of the sale price of the home. The option fee is normally applied to the transaction at escrow closing in the event that the buyer decides to proceed with the sale.
Buyers who decide not to purchase a property after the option period has already begun will usually be responsible for paying the option fee to compensate the buyer for lost time. However, the buyer will be under no further contractual obligations.
If you have questions on the processes and regulations involved in a real estate transaction, contact an experienced real estate agent to learn more.
Aug 20, 2014 | Home Buyer Tips
The purchase agreement is a vitally important document that outlines the provisions, terms and conditions for the transfer of property.
It should be read carefully and any ambiguities should be clarified prior to signing. It is a legally binding contract between the buyer and seller.
The purchase agreement may vary depending on the location. Most real estate agents use a form that has been approved by a state Realtors® Association.
The seller may have a different version that was drawn up by an attorney. It should not be assumed that they are all the same.
Typically, the purchase agreement will include an inspection period. This allows the buyer time to verify the conditions stated on the purchase agreement. Three of the most important stipulations in the contract are listed below.
All Owners Must Sign the Purchase Agreement
In most cases, the purchase agreement should be signed by the legal owner of the property.
If there is more than one owner, each owner should sign the agreement. In many states, both parties in a married couple have an interest in a property even if the title is held in one party’s name alone. Therefore, the purchase agreement should be signed by both parties of a married couple.
In the event the property is being sold by a corporation, verify that the person signing the agreement is authorized to commit the corporation to the sale.
List All Fixtures to be Transferred with the Sale
The purchase agreement should list all items that are to convey with the property. “Fixtures” are considered items that are attached to the property.
Legally, they should be included with the sale, but more than a few buyers have been dismayed to find the property stripped of countertops, appliances and window coverings. Any fixtures and personal property that are part of the sale should be included in the purchase agreement.
Verify Zoning Ordinances
The purchase agreement may contain various stipulations. One should include the right to cancel the contract if zoning prohibits the use of the property as planned.
Zoning ordinances may restrict the use of buildings or land. This may prove to be an obstacle for someone who intended to include a workshop on the property. The buyer should be able to withdraw from the contract if they discover that zoning prohibits the intended use.
These agreements can be complicated, so be sure to check with a local real estate agent if you’re unsure about how to proceed.
Aug 12, 2014 | Home Buyer Tips
Buying a home is one of the most exciting times that an individual will undertake in life. However, a property purchase is not without its challenges, and these can cause frustration. In this article we’ll share five potential setbacks that home buyers will need to understand and come to terms with to make a successful purchase.
Homeowner’s Insurance is Necessary
Most lenders will require insurance before financing is approved. To fulfill these requirements, the policy should be for at least one year and proof that the policy has been paid for must be presented. Purchasing the policy is something that must be done before closing can take place, so if you’re sure that this is the home for you, don’t delay.
Some Sellers Are Firm, No Matter What
In an ideal situation, the buyer and the seller come to a mutual agreement very easily. However, in most cases negotiation of some type is likely to be a part of the process. As with most negotiations, to reach success both sides will need to compromise.
Probate Properties Have Special Terms
When the original homeowner has died, there are certain considerations to keep in mind that do not typically apply to other types of property. One is the fact that there is a special process that must be completed before the property can be sold, even though the heirs may advertise the property as being for sale ahead of time. Another factor to keep in mind is that a recently probated property may have been uninhabited for some time and will be sold ‘as is’.
Loan Offers May Not Be Set in Stone
A common pitfall for many buyers is the assumption that home financing will be approved without issue. Unexpected circumstances may arise that cause a mortgage loan to be denied, which can cause an unprepared buyer numerous issues. Many sellers, in anticipation of such problems, have a contingency requirement.
Expect Caution from Sellers
If a seller treats your offer with caution or trepidation, don’t take it personally. Many homeowners have been burned during previous sales, and you have no idea what the seller has been through with potential buyers this time around. If someone is exercising caution, there’s likely a good reason for it.
In closing, remember that the best way to purchase a home is through a real estate agent. When you’re ready to jump into the property market, contact a trusted local agent and they’ll be ready to assist.
Aug 7, 2014 | Home Buyer Tips
Buying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by the lowball offer and is ready to negotiate to make sure everyone wins.
Make a List of Necessary Improvements
One of the best ways to validate a lowball offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a lowball offer stating additional expenses of making sure the home is move in ready.
Explain Any Issues with the Location
Another option when considering a lowball offer is to point out problems with the location. If the home is on a busy street or close to a manufacturing district, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.
Provide Pricing for Comparable Homes in the Area
A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lowball offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.
Consider the Seller’s Reasons for Selling
Finally, the seller’s situation can also be key in getting a good deal on a home. If the seller is desperate to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a low offer and take the home off the seller’s hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.
Buying a home can be stressful and getting a good deal on the property without insulting the seller can take some negotiating. Working with a knowledgeable real estate agent will make the experience more enjoyable. Call today to make your dreams come true.
Jul 31, 2014 | Home Buyer Tips
When you are looking for a new property, you might find yourself booked into looking at 5-6 properties in one day. In these situations, it can be difficult to remember all of the features that each property had.
You will be left wondering which one had the balcony with the great view, or the extra-large closet space in the bedroom.
If you want to be able to look back on the homes you visited and remember their features more easily, it can be very helpful to bring a camera with you to the showing and to take photos of the property.
It can also be helpful when only one partner is able to attend the viewing, so that way they can show the other partner the details of the house. However, could this be considered an invasion of privacy and offensive to the home owners?
Public Or Private Space?
Some homeowners have absolutely no problem with you taking photos of the house when you view it so that you can reference those photos later. However, other home owners really don’t like it when buyers take photos inside the home – because they consider this an invasion of their private space.
If you just bring out your camera and start snapping away, you might make them very uncomfortable.
It Never Hurts To Ask
When you go to a house showing, it is always a good idea to ask whether or not the owner would mind if you take a photo. If they say no, you shouldn’t push them too much or you might make a bad impression – which will decrease your chances of your offer being chosen.
Instead, you can simply make notes on the features of the house so that you can remember later.
Remember, when you are viewing a property it helps to take photos – but make sure that you ask first! If you have any other questions about buying a home, or are looking for real estate advice, contact your trusted real estate professional today.
