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.
Jul 29, 2014 | Home Buyer Tips
If you’re thinking of buying a home, you’ve probably been thinking a lot about your credit score as well. Credit scores control so much of what we do in the world of finances, but what does your credit score really have to do with your mortgage? Here are three ways that your credit score could impact your mortgage application.
Your Credit Score Affects Your Ability To Get A Mortgage
The first thing your credit score tells a lender is whether they should lend to you at all. In some cases, if you have a very low credit score, you may not be able to obtain a mortgage at all.
Different lenders will have different criteria for determining safe and unsafe lending situations. Typically, if you have a score below the 600 mark, you’ll have trouble obtaining a mortgage.
If you’re worried about a low credit score, don’t despair – you can still get a mortgage, you just might have to work a little harder to get one. Some lenders will still lend to people with lower credit scores (just make sure you’re approaching legitimate lenders and not mortgage scam artists). Or, if time is on your side, you can work toward building up your credit score so that when it comes time to take out a mortgage, your score will be more appealing to lenders.
Your Credit Score Affects What Types Of Mortgages You Can Obtain
The second thing a lender learns from your credit score is which types of mortgages you qualify for. If a lender sees you as a higher risk, they won’t necessarily be willing to offer you just any old mortgage.
In most cases, if you have a credit score of less than 620, you won’t qualify for a conventional mortgage. In addition, if you have a lower credit score, you may have to make a larger down payment in order to qualify for the type of mortgage you want.
Your Credit Score Affects Your Interest Rate
The final thing that a lender learns from your credit score is what type of interest rate they’re willing to offer you. As a general rule, the higher your credit score, the lower the interest rate.
However, just because you have a high credit score, that doesn’t mean you’ll automatically get a great mortgage rate. There’s more that goes into the price of a mortgage than just the interest rate, so watch out for additional factors like extra fees, mortgage insurance, lock-in periods, and so on.
Your credit score tells a lender a lot about what type of borrower you are. Ultimately, a higher credit score means that you’ll be able to borrow money at a lower interest rate. But if your score is low, don’t worry – there’s a lot you can do to bring up that score before you apply for a mortgage, so don’t throw in the towel just yet!
Jul 17, 2014 | Home Buyer Tips
Knowing what you want before you start looking is a big help when house-hunting. Giving the list of ‘must-have’ items to your real estate professional a few days before you begin touring listings is a great idea because they can find homes that meet as many of your criteria as possible.
It also helps on a more personal level, since being organized and knowing what you want will help you quickly identify whether or not homes meet those standards.
Is it a ‘Must-Have’ or a ‘Nice-to-Have’?
The debate between “I need it” and “I want it” is as old as time. Thinking back to childhood, when the desire for a cookie was met with mom’s stern “not before dinner,” some children seem to develop a magical ability for reasoning that voiced a desperate need for cookies before dinner, but mom was never fooled. The same goes for the ‘must-have’ list for your home search.
There are items that you want and certain ‘deal breakers’ that you cannot live without. An absolute ‘must-have’ might be proximity to work or certain schools, whereas desirable features could include a shed or a built-in barbeque pit. Knowing the difference between something you want and something that is absolutely required can save you a lot of time and money.
How to Organize an Effective List
Write down everything your dream home would have, then ask yourself how necessary each item is. Rate them by priority, whether an absolute requirement, something you would definitely prefer, something for which you would consider a compromise, and something that you don’t really care that strongly about. That first group is your ‘must-have’ list. The second is your ‘nice-to-have’ list, which is a great guiding star for choosing between homes that meet all of your ‘must-have’ items.
Some Suggestions for a Great List
Location, location, location – The top of any good ‘must-have’ list should be location. No matter what else is changed in a home, the location will always remain a constant. Decide what you want to be close to or far away from and make sure the grounds and neighborhood are all acceptable.
Bedrooms and bathrooms – Does everyone need their own room? Do you need a guest room? Could everyone share one bathroom? Ask yourself what you need at a minimum to facilitate everyone in your home.
Energy-efficient windows and good insulation – It may seem technical, but an energy efficient home can save you a lot of money in the long run. Don’t let money seep through a poorly insulated home.
Space for pets – Not everyone has pets, but for those who do it is a good idea to think of them in your ‘must-have’ list. After all, your new home is going to be Fido’s new home too! A fenced yard or a dog run might be a good idea, but also consider whether the space would allow you to add your own later.
Call your real estate professional today to start house-hunting, and don’t forget your new list!
Jul 2, 2014 | Home Buyer Tips
Once you have found that perfect home with the right price and every little feature you were hoping for, it’s important to keep in mind that the home has been presented in a way that accentuates its highlights and shadows any flaws. For this reason, it is crucial that you get a home inspection before completing a purchase.
Many sellers also have inspectors investigate the home in order to determine its sale value. As such, they should be aware that a prospective buyer will want to request an independent inspection to verify the findings.
Reasons For Home Inspections
If you are the one purchasing the home, getting an inspection is likely to be the most important investigation you need to perform to ensure you are getting the best value. It can also help to know what reasons each party has for requiring a home inspection.
Buyers, for example, feel peace of mind knowing the home in question is safe. They also gain the ability to negotiate in the event a problem arises from inspection, or they can request repairs first. They can also opt out if the problems that arise are too overwhelming to deal with prior to or after the purchase. Finally, buyers can learn about the kind of maintenance and upkeep will be required for the home in the long run.
Sellers, on the other hand, want to make the transaction as smooth a process as possible to prevent issues that could slow down the sale. They can also learn about any problems they need to repair before putting the house on the market, and they can determine the sale price for the transaction. Lastly, this allows the seller to prove their transparency by having an inspection report available, even though he or she should expect that the buyer should be requesting an independent home inspection regardless.
It should be evident, having an inspection conducted is vital for buyers and sellers alike; though the price might seem costly at first, it is merely a small fee that is well worth the effort to solidify a home purchase.
Finding A Home Inspector
The first thing to keep in mind is that most states lack a licensing process for those who inspect homes. If your state does not have such criteria, finding an inspector in good standing with a nationally recognized organization can help as well.
It is very important not to take a seller’s inspection report at face value, no matter what kind of reputation they may have as a person. You might not even want to accept an inspector that someone else hires since they may have a vested interest that can influence the report.
Keep in mind that a general inspector is not typically licensed to check for specific issues like gas or pests. As such, you will need to either seek someone who is licensed for a full inspection or specificaly request inspection for pests, especially for those in high risk areas. For more information and for additional guidance on the process of buying a house or a condo, contact your real estate agent.
Jan 20, 2014 | Home Buyer Tips, Home Seller Tips, Interesting Stuff
An LLC is a valid and effective way to hold and manage real estate. An LLC is recognized 
as a separate legal entity for tax and liability purposes.
1. An LLC can provide certain tax and liability advantages. In certain circumstances, holding title to real estate in an LLC can provide a valuable tax advantage. However, if the main intent of forming an LLC to hold real estate is for its tax advantages, you should be sure to speak with a qualified tax advisor. Be certain that you obtain a specific tax identification number from the IRS for the LLC. Applying for an Employer Identification Number or tax id is a rather simple process and can be done online. You will need to provide a tax id number to the closing attorney.
2. There is a cost to create and maintain an LLC. The cost to file for and create an LLC in Massachusetts is around $500.00. This does not include the cost of legal counsel. An annual report will need to be filed with the Mass. Secretary of State each year at a cost of $500.00 per LLC. In most circumstances, if the intent of having an LLC is to avoid legal liability associated with the ownership of real estate, you should probably have two LLCs. One LLC to hold title and one to manage the property. Be certain that the application to create an LLC and operating agreement are prepared properly. Mistakes made in filing for an LLC can be costly and time consuming to correct. Don’t file for an LLC in any other state or jurisdiction unless you have a really good reason for doing so. Cost should not be the sole reason. Consult qualified legal counsel to assist you.
3. An LLC is not right for every situation. Although an LLC can hold title to real estate, it does not mean that it is the best way to do so. You should carefully consider the pros and cons of using a realty or nominee trust, a standard corporation, or individual ownership for each piece of real estate. We often find that sellers spend needless time and money to hold title in an LLC when it really was not necessary or proper for their situation. It may be considered “fashionable” to have an LLC, but it is not always prudent.
4. An LLC is not like a regular corporation. One of the primary differences between an LLC and standard corporation, or S Corp, is the way gains and losses are accounted for between members and shareholders. With an LLC, gains and losses can be allocated disproportionately between members, not so with an S Corp where it is shared between pro-rata shares of ownership. With LLCs, members are able to pass losses to their personal income reporting. This can’t be done with a regular corporation.
5. An LLC must be in good standing with the state in order to sell its real estate. If your LLC holds title to Massachusetts real estate you will need to prove that the LLC is in good standing with the State before you can actually close on the sale. The most acceptable way to show good standing is to obtain a certificate from the Secretary of State’s office. The Secretary will not issue a certificate if the LLC is not current with its annual report filings. The cost of a Certificate of Good Standing is about $25.00. Obtain it well in advance of an anticipated sale, the closing attorney will likely require it prior to closing.
