Nov 1, 2013 | Home Buyer Tips, Home Seller Tips
It never fails. After a potential buyer’s home inspection of what is otherwise the perfect property, there are issues that require the seller’s attention. Whether it is a faulty furnace, double tapped electric circuit breaker, rotten steps or mold, inspection defects like these can bring a screeching halt to the simplest of transactions.
A home buyer has the right to expect certain defects to be addressed by a seller, and often a seller will give a concession by reducing the sale price or providing a closing cost credit. But when a concession is not an option, a seller can always agree to repair or correct the defects at the seller’s expense prior to closing. (more…)
Oct 30, 2013 | Home Buyer Tips
With the economic downturn, anyone dealing in real estate quickly became familiar with previously little-known terms such as foreclosure and short sale. Now that the housing market is picking back up and people are moving on, a new term is coming to light — zombie titles.
The Zombie Title
This is when a home has been vacated because the owners defaulted on their loan and their bank started the foreclosure process. However, for some reason or another the bank never completed the foreclosure and sold the home.
So, when the city starts fining someone for the overgrown grass and dilapidated structure, the homeowner who thought they were finished with the property gets the bill.
A Home That Keeps Haunting
Homeowners think they don’t own the property any longer and therefore try to move on by rebuilding their credit score and finding a new place to live. It can be a rude awakening to find out that not only do they still own a home they could have been living in, but also its long vacancy has caused it to fall into disrepair.
It‘s Spooking The Neighborhood
These vacant homes can decrease the value of a neighborhood. If the bank or the un-suspecting homeowner are neither one taking care of the property, then it can become overgrown and an eyesore on the block. It becomes a problem with no solution because the owner won’t want to invest any money in fixing up the property when the bank could come back with the foreclosure at any time.
Nail Shut The Foreclosure Coffin
Homeowners who have foreclosed on a home should double check that their bank actually followed through to closing on a sale. They could contact their lender or check public property records just to make sure. Otherwise, they could be haunted by their housing nightmare all over again.
Don’t let the zombie title of a past property haunt your future! Check with your bank to make sure you’re free and clear of your foreclosure. If you’d like more information on zombie titles or have other questions about local real estate, please contant your trusted real estate professional.
Oct 15, 2013 | Home Buyer Tips
By the time you get to the final walkthrough on your property, the home buying process is almost complete. However, it is still important to pay close attention to this final step, as it will be crucial in the success of your home purchase.
The final walkthrough is your last opportunity to ensure that everything in the home is in working order and that there are no potential problems waiting for you when you take over ownership of the property.
While conducting a final walkthrough of the property, give yourself enough time to look carefully at everything and not be rushed. You are looking for any new issues that might have arisen since the last time you viewed the home.
Once you close on the purchase the previous owners will not be obligated for fixing any damage. For this reason, you should schedule your walkthrough approximately 24 hours before closing on a home.
What You Should Look For?
When you are performing your walkthrough, here are some of the important issues that you should be watching out for:
- Are all major appliances in working condition? Do they all have their warranties and owner’s manuals?
- Do all of the light switches and outlets work?
- Have any of the fixtures or appliances gone missing, even though the seller agreed to leave them behind?
- If you have agreed on any repairs, has the seller had these repairs completed?
- Are there any signs of damage (i.e. scratched walls or floors) as a result of the previous owner moving out?
- Do all of the water faucets and toilets function as they should?
- Check the exterior of the house, especially if there has been a storm or strong winds since your last visit.
- Did the previous owner leave any garbage, extra furniture or unwanted items behind?
What To Do If You Spot A Problem?
If you find a problem when you are going through your walkthrough, there are a few options of what you can do. If the issue is very serious, you might choose to walk away from the deal completely. However, if the issue is not that significant you might decide that it is not worth losing your dream home over.
You could simply pay for the repair yourself, or postpone the closing until the seller fixes the problem. If the repair was agreed upon during the negotiations, you have a legal recourse.
To find out more about buying property, feel free to contact your trusted real estate professional.
Oct 8, 2013 | Home Buyer Tips
If you are looking to buy a home, you might be wondering whether you should be looking for properties that are right in the center of the city or whether a better option would be to buy a property on the outskirts or in a rural area a short drive away.
The rural or urban decision will ultimately be up to you, as there are advantages and disadvantages to either option. The main difference will lie in your priorities – what type of lifestyle is most important to you?
Living In The City
One of the main perks of buying a property that is located in the heart of the city is that you will be able to enjoy convenient public transportation and you won’t have to use a car to get everywhere.
You are likely to have a shopping center and a supermarket within walking distance of your home, as well as other important amenities such as a doctor’s office, a pharmacy, a post office and more.
Also, if you enjoy attending concerts, visiting art galleries or enjoying other artistic events, you will find much more of these concentrated in the city center. You will also enjoy more options when it comes to shopping.
Of course, living in the city center means that property prices are usually a lot higher and you will likely end up with a lot less space for your money. Your kids might not have as much room to run around (unless you find a home near an urban park or a playground). Also, the hectic pace of the city, with all the traffic and high rise buildings, can be stressful for some.
Living Outside Of The City
When you buy a home just a few miles outside of the city, you will find yourself experiencing a completely different lifestyle. You will be a lot closer to nature, with plenty of walking trails and wild areas right outside your back door. The air will be cleaner and you will be able to see the stars better at night time.
Many people feel safer letting their children play outside in the countryside and the cost of housing is usually lower than in the high density downtown core. Some people also prefer the peace and quiet of the city and would much rather go for a walk in the woods or have a campfire than attend a cultural event – so the country is the right place for them.
Of course, the disadvantages of rural life is that it can be inconvenient and time consuming to drive into town to get supplies to meet up with friends. You must own a car in order to get around, as the public transport system will not be as good as it is in the inner city.
These are just a few factors to consider when determining whether you would choose the city life or the country life.
For more information on buying a home, whether in the heart of the city or on the outskirts, contact your trusted real estate professional.
Sep 26, 2013 | Home Buyer Tips
Investing in property at a young age seems like a bit of a daunting prospect sometimes. Most young people don’t have a lot of disposable income, often have poor credit and perhaps even student loans.
When you are in your early 20s, you are not likely thinking about investing in property and are probably focusing on other things. However, investing in property at a young age can bring you a lot of advantages.
It requires a different approach and style and you might be the only one of your peers who is doing so, but you will definitely reap the benefits later on in life. When you invest long-term, you will start building your financial independence.
Some might believe that it is impossible for a young person to start investing so early in life, but investing in your 20s is completely possible.
You are not “too busy”, in fact you will find that you have even less spare time as your responsibilities grow when you get older. You will need a little bit of money to get started, but often you can purchase your first property with as little as 3.5% down.
If you want to get started early, here are some tips that will help you along the way:
- Get into very good saving habits from a young age by putting aside your money from first jobs. When you want to take out a mortgage, you will typically need to be able to show savings of 3% of your purchase price.
- Maintain a clean credit history and pay all of your bills on time in order to build a great credit rating, so that you can obtain a mortgage with a good rate.
- Make the most of technology and social media to learn more about investing in property and to find the best opportunities. You have a wealth of information on investing, all at your fingertips.
- Find an older mentor – someone with successful experience who can give you tips on how to choose the right investment.
Another main advantage to investing when you are young is that if anything goes wrong, you will have more time to make mistakes and still recover without affecting your retirement. You have nothing to lose and everything to gain, so why not get started?
Sep 20, 2013 | Home Buyer Tips
You’ve been searching for the perfect home for quite a while, and finally, you’ve found it! You get all of your finances in order and place an offer on the house.
However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.
Cash buyers are seen as desirable because they’re almost always a guaranteed quick close. They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.
Follow the steps below to beef up your offer and get your foot in the door.
Less Expensive Homes
If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
20 Percent Down Payment
Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.
Take-It-Or-Leave-It Home Inspection
This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.
Fees
Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.
Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.
So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!
