Author: admin

A Few Points About Interest Rates

by admin0

A Few Points About Interest Rates

Less is more!
If you’re new to investing or real estate and don’t know the first thingabout interest rates, here’s a good tip: the higher the interest rate,the more expensive it’s going to be. High interest rates mean you willhave to pay back more on the money you borrow. Another good rule ofthumb is that affordability increases if you use an adjustable ratemortgage (it’s easier to qualify this way). Of course, there will be awide range of prices that you can choose from, depending on what kind offinancing you choose..

Not even the Fed knows for sure
The Fed holds a considerable amount of power, but they can’t controleverything. Mortgage interest rates are affected by many unpredictablepolitical, economic and social events. So there is no guarantee whatdirection interest rates will go, despite the forecasts of the experts.Therefore, make your financial decision based on where things are todayincluding your budget, your needs and your future plans.

Locking in rates assures your lowest interest
If you do decide you want to lock in at a certain interest rate, youwill need to complete a loan application and send it to your lender assoon as possible. This must be done so that your commitment doesn’trunout before your loan is approved. Follow up and be se sure that thelender is receiving all of the necessary documentation. Get a propertyappraisal, which usually costs about $300, through your loan agent assoon as possible.

Don’t obsess and miss a good real estate deal
Although rising interest rates can create more problems for home buyers,waiting and hoping for low rates is not necessarily a smart move. Youmay end up paying a higher price. Also, refinancing is always an optionin the event that interest rates come down.

Visit again soon! I have more information that you will need!

Finding the Best Agent For You

Finding the right real estate professional requires doing a littleresearch and asking a few questions. You need to know everything aboutthe selling process. What is the marketing strategy? What kind ofadvertising will be done? Is the REALTOR® capable and willing tocommunicate effectively? Can the REALTOR® effectively present and sellthe less-noticeable assets of the property?

Real estate professionals also need to be knowledgeable about thecommunity. They need to have a feel for the history of the area and theapproximate price that people will be willing to pay. Also, real estateagents should know what the competition is and how much it will effectyour sale.

NEVER choose a REALTOR® on price alone. Remember that a REALTOR®cannot magically raise the selling price of the house. Consider thebuyer. The purchaser won’t willingly pay too much; it’s most likely thathe or she will do research on the market and try to find the bestproduct for the best price. The facts simply cannot be changed, nomatter which REALTOR® you select. In spite of these unchangeablefactors, the REALTOR® you select must still be diligent andknowledgable.

If your property does not elicit attention within several weeks, thecause can most likely be attributed to one of these three factors:location, condition, and price. The location obviously cannot bechanged. You should consider examining the conditioning of your propertyand reevaluating the marketing strategy. Ask your REALTOR® to offer anexplanation of the competition and your pricing strategy.

How to Make Money in Real Estate Investing

Lower Your Taxes
Tax incentives for real estate investors can often make the differencein your tax rates. Deductions for rental property can often be used tooffset wage income. Tax breaks can often enable investors to turn a lossinto a profit.

For which items can investors get tax breaks? You could claimdeductions for actual costs you incur for financing, managing andoperating the rental property. This includes mortgage interest payments,real estate taxes, insurance, maintenance, repairs, property managementfees, travel, advertising, and utilities (assuming the tenant doesn’tpay them). These expenses can be subtracted from your adjusted grossincome when determining your personal income taxes. Of course, thesedeductions cannot exceed the amount of real estate income you receive.In addition to deductions for operating costs, you can also receivebreaks for depreciation. Buildings naturally deteriorate over time, andthese “losses” can be deducted regardless of the actual market value ofthe property. Because depreciation is a non-cash expense — you are notactually spending any money — the tax code can get a bit tricky. Formore information about depreciation and various tax alternatives, askyour tax advisor about Section 1031 of the U.S. Tax Code.

Have a Positive Cash Flow
There are two kinds of positive cash flows: pre-tax and after-tax. Apre-tax positive cash flow occurs when income received is greater thanexpenses incurred. This sort of situation is difficult to find, but theyare usually a strong and safe investment. An after-tax positive cashflow may have expenses that outweigh collected income, but various taxbreaks allow for a positive cash flow. This is more common, but it isgenerally not as strong or safe as a pre-tax positive cash flow.

Regardless of what kind of real estate you choose to invest in,timely collections from your tenants is absolutely necessary. A positivecash flow — whether it be pre-tax or after-tax — requires rentalincome. Be sure to find quality tenants; a thorough credit andemployment check is probably a good idea.

Use Leverage
One of the most important factors in determining a solid investment isthe amount of equity you are purchasing. Equity is the differencebetween the actual worth of the property and the balanced owed on themortgage.

Benefit from Growing Equity
While investing in real estate is relatively complex, it is often worththe extra work. When compared to other financial investments, like bondsor CD’s, the return on investment for real estate purchases can oftenbe greater.

The key to real estate investing is equity. Determine an amount ofequity that you want to achieve. When you reach your goal, it’s time tosell or refinance. Determining the proper amount of equity may requirethe assistance of a real estate professional.

Moving Tips

Easing the Transition to Your New Home
Use the right boxes, and pack them carefully. Professional movingcompanies use only sturdy, reinforced cartons. The boxes you can get atyour neighborhood supermarket or liquor store might be free, but theyare not nearly as strong or padded, and so can’t shield your valuablesas well from harm in transit.

Use sheets, blankets, pillows and towels to separate pictures andother fragile objects from each other and the sides of the carton. Packplates and glass objects vertically, rather than flat and stacked.

Be sure to point out to your mover the boxes in which you’ve packedfragile items, especially if those items are exceptionally valuable. Themover will advise you whether those valuables need to be repacked insturdier, more appropriate boxes.

The heavier the item, the smaller the box it should occupy. A goodrule of thumb is if you can’t lift the carton easily, it’s too heavy.Label your boxes, especially the one containing sheets and towels, soyou can find everything you need the first night in your new home.

For your family’s safety and comfort
Teach your children your new address. Let them practice writing it onpacked cartons. You can lighten your load and reduce any storage spaceyou need to rent by hosting a garage or yard sale.

Fill two “OPEN ME FIRST” cartons containing snacks, instant coffee ortea bags, soap, toilet paper, toothpaste and brushes, medicine andtoiletry items (make sure caps are tightly secured), flashlight,screwdriver, pliers, can opener, paper plates, cups and utensils, a panor two, paper towels, and any other items your family can’t do without.Ask your van foreman to load one of these boxes, so that it will beunloaded at your new home first. Why the second box? In case the moversare delayed getting to your house on the day of the move.

Keep your pets out of packing boxes and away from all the activity on moving day.

Let all your electrical gadgets return to room temperature before plugging them in.

Since you may need to call old neighbors or businesses from your new home, pack your phone book.

Work hand in hand with your mover
Give the mover’s foreman your reach numbers and email addresses so you can stay in contact.

Read the inventory form carefully, and ask the mover to explainanything you don’t understand. Make a note of your shipment’sregistration number, and keep your Bill of Lading handy.

If you’re moving long distance, be aware that your property mightshare a truck with that of several other households. For this reason,your mover might have to warehouse your furniture and belongings forseveral days. Therefore, ask your mover whether your goods will remainon the truck until delivered. If they have to be stored, ask whether youcan check the warehouse for security, organization and cleanliness.

10 Important Tips to Successful Real Estate Investing

10 Important Tips to Successful Real Estate Investing

by admin0

Buyer’s Reports

As real estate professionals, it’s our job to make the real estate buying and selling process as easy as possible for everyone involved. That means providing quality information that can benefit you immediately. We care about this community and whether you’re buying or selling. We want to share some important information with you that will help you in your next move.

The following reports will not only SAVE you money, but can make you money in real estate!

Please let us know if we may be of any further assistance!

10 Important Tips to Successful Real Estate Investing

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be careful – Tax laws may change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financingis what you should look for as an investor.

3. Specialize in something you Know

Start in a market segment you know. Whether you focus on fixer-uppers,foreclosures, starter homes, low-down payment properties, condominiums,or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know the Costs going in!

Know the financial statements inside out. What are operating expenses?What are loan payments? Vacancy costs? Taxes? What does the cash flowstatement look like? These are key issues that must be addressed before making a solid investment.

5. Know where your tenants are coming from

If the last rent increase was recent, your tenants may be considering amove. If tenants have a short-term lease, they may be living theresimply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess the tax situation

Taxes are an integral part of successful real estate investing, and Theyoften make the difference between a positive cash flow and a negativeone. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage

If seller’s coverage is based on lower-than-current replacement value,your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so besure to find an accountant who is well-versed with the constantlyevolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the propertybefore buying it. Never, ever buy any property without at leastexamining the site. In some cases, hiring professional inspectors toexamine the structural mechanical system may be a sound investment.

Questions to Ask Your REALTOR®

by admin0

1. Are you a full-time professional Realtor®? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?

Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.

2. Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?

It is not uncommon for agents who sell a lot of houses to hire people to work with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more people.

You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?

3. Do you have a Website that will provide me with useful information? Can I have your URL address? Who responds to emails and how quickly? What’s your email address?

Many home buyers prefer to search online for homes because it’s available24 hours a day and you can do it in the privacy of your own home. By searching your real estate agent’s Website you will get a clear picture of how much work you would be able to accomplish online.

4. Will you show me properties from other companies’ listings?

Some real estate companies do offer their buyers’ agents a higher commission if they are able to sell “in-house” listings. In such circumstances, there can be added incentive to limit the range of homes you are shown. This may impact your home search and how much your buyer agent’s fee will be.

5. Will you represent me or will you represent the seller? May I have that in writing? How will you represent me, and what is the direct benefit of having you represent me?

The goal here is to ascertain to whom the real estate agent has legal fiduciary obligation, which may vary from state to state or even locale to locale. In the past, agents always worked for sellers. Then the listing broker was responsible for paying the agent or sub-agent that brought a suitable buyer for the home. And even though the buyer worked‘with’ an agent, the agent still represented and owed their fiduciary duty to the seller.

Although seller agencies still exists in certain areas, agents today almost always have a sense of moral obligation to buyers. Find out what is common in your area and understand what kind of agent you have before you begin to work with them.

6. How will you get paid? How are your fees structured? May I have that in writing?

In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements.Ask for an estimate of buyer costs from any agent you contemplate employing.

7. What distinguishes you from other real estate agents? What is your negotiating style and how does it differ from others? What geographic areas do you specialize in?

Each agent has unique methods of overcoming obstacles and negotiating deals. The most important thing is to make sure your agent is an effective advocate for you.

8. Will you give me names of past clients?

Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to underst and how he or she works, and whether or not this style is compatible with your own.

9. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our Buyer Agency Agreement?

In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards.Typically, he or she will verbally outline what you can expect from their performance. New Era Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.

10. How will you keep in contact with me during the buying process?

Some agents may email, fax or call you daily to tell you about properties that meet your criteria, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent’s systems.

5 Powerful Buying Strategies

by admin0

1. Get “Pre-Approved” – Not “Pre-Qualified!”

Do you want to get the best property you can for the least amount ofmoney? Then make sure you are in the strongest negotiating positionpossible. Price is only one element in the negotiations, and notnecessarily the most important one. Often other terms, such as thestrength of the buyer or the length of escrow, are critical to a seller.

In years past, I always recommended that buyers get “pre-qualified”by a lender. This means that you spend a few minutes on the phone with alender who asks you a few questions. Based on the answers, the lenderpronounces you “pre-qualified” and issues a certificate that you canshow to a seller. Sellers are aware that such certificates areWORTHLESS, and here’s why! None of the information has been verified!

Many times unknown problems can come to the surface! Some of theproblems I’ve seen include recorded judgments, alimony payments due,glitches on the credit report due to any number of reasons bothaccurately and inaccurately, down payments that have not been in theclients’ bank account long enough, etc.

So the way to make the strongest offer today is to get“pre-approved”. This happens AFTER all information has been checked andverified. You are actually APPROVED for the loan and the only loose endis the appraisal on the property. This process takes anywhere from a fewdays to a few weeks depending on your situation. It’s VERY POWERFUL anda weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buy the House

If you have a house to sell, sell it before selecting a house to buy!Contingency sales aren’t nearly as strong as one that comes in with aready, willing and able buyer. Consider this scenario: You’ve found theperfect house – now you have to go make an offer to the seller. You wantthe seller to reduce the price and wait until you sell your house. Theseller figures that this is a risky deal, since he might pass up a buyerwho DOESN’T have to sell a house while he’s waiting for you. So he saysOK, he’ll do the contingency but it has to be a full price offer! Youhave now paid more for the house than you could have because of thecontingency, and you have to sell your existing house in a hurry!Otherwise you lose the house! So to sell quickly you might take an offerthat’s lower than if you had more time. The bottom line is that buyingbefore selling might cost you THOUSANDS of dollars.

If you’re concerned that there is not a house on the market for you,then go on a window-shopping trip. You can identify possible houses andlocations without falling in love with a specific house. If you feelconfident after that then put your house on the market.

Another tactic is to make the sale “subject to seller findingsuitable housing”. Adding this phrase to the listing means that WHEN YOUDO FIND A BUYER, you will have some time to find the new place. If youdon’t find anything to your liking, you don’t have to sell your presenthome.

3. Play the Game of Nines

Before house hunting, make a list of things you want in the new place.Then make a list of the things you don’t want. You can use this list as aguide to rate each property that you see. The one with the biggestscore wins! This helps avoid confusion and keeps things in perspectivewhen you’re comparing dozens of homes.

When house hunting, keep in mind the difference between “STYLE ANDSUBSTANCE”. The SUBSTANCE are things that cannot be changed such as thelocation, view, size of lot, noise in the area, school district, andfloor plan. The STYLE represents easily changed surface finishes likecarpet, wallpaper, color, and window coverings. Buy the house with goodSUBSTANCE, because the STYLE can always be changed to match your tastes.I always recommend that you imagine each house as if it were vacant.

Consider each house on its underlying merits, not the seller’s decorating skills.

4. Don’t Be Pushed Into Any House

Your agent should show you everything available that meets yourrequirements. Don’t make a decision on a house until you feel thatyou’ve seen enough to pick the best one.

A decade ago, homes were selling quickly, usually a few days afterlisting. In that kind of market, agents advised their clients to make anoffer ON THE SPOT if they liked the house. That was good advice at thetime. Today there isn’t always this urgency, unless a home isdrastically underpriced, and you’ll know if it is.

Don’t forget to check into the SCHOOL DISTRICTS of the area you’reconsidering. Information is available on every school; such as classsizes, % of students that go on to college, SAT scores, etc. You can getthis information from this web site.

5. Stop Calling Ads!

Please note – ads are sometimes created to make the phone ring! Many ofthe homes have some drawback that’s not mentioned in the ad, such astraffic noise, power lines, or litigation in the community. What’s notmentioned in the ad is usually more important than what is.

For this reason, I want you to be very careful when reading ads.Remember that the person writing the ad is representing the seller andnot you! The most important thing you can do is have someone on yourside looking out for your best interests. Your own agent will critiquethe property with an eye towards how well it meets your needs and willpoint out any drawbacks you should know about. So whether you decide towork with me or not, pick an agent you feel comfortable with and enlistthe services of that agent as a buyer’s broker. Then you become a clientwith all the rights, benefits, and privileges created by this agencyrelationship, and you’re no longer just a shopper. Did you know thatmany homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUTIN THE PAPER? These “great deals” go to those people who are committedto working with one agent. When an agent hears of a great buy, who doyou think he’s going to call? His client, who he has a legal obligationto work hard for you, or someone who just called on the phone and said“keep your eyes open”? So to get the best buy on a property, I alwaysrecommend that you hire your own agent and stick with him or her.

Selling Mistakes You Don’t Want to Make!

by admin0

Mistake #1 — Pricing Your Property Too High

Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property.Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually longtime to sell, and they end up being sold at a lower price.

Mistake #2 — Mistaking Re-finance Appraisals for the Market Value

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encouragere-financing. The market value of your home could actually be lower.Your best bet is to ask your REALTOR® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 — Forgetting to “Showcase Your Home”

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.

Mistake #4 — Trying to “Hard Sell” While Showing

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling.Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

Mistake #5 — Trying to Sell to “Looky-Loos”

A prospective buyer who shows interest because of a “for sale” sign he saw may not really be interested in your property. Often buyers who do not come through a REALTOR® are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.

Your REALTOR® should be able to distinguish realistic potential buyers from mere lookers. REALTOR®s should usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. If your REALTOR® fails to find out this pertinent information,you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people.If you have to do this work yourself, consider finding a new REALTOR®.

Mistake #6 — Not Knowing Your Rights & Responsibilities

It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws will affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.

Mistake #7 — Limiting the Marketing and Advertising of the Property

Your REALTOR® should employ a wide variety of marketing techniques. Your REALTOR® should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your REALTOR® is working on selling your home during these hours. Chances are that you have a job, too, so you may not be able to get in touch with many potential buyers.

Should You Work With a Buyer’s Agent?…A Seller’s Agent?

by admin0

In the past, real estate agents always represented the seller,whether the agent helped a seller to market and sell a home or helped a buyer find and purchase a home. In other words, agents were at one tim elegally bound to represent the seller in a residential real estate transaction. In that scenario, the seller paid both the listing agent and the agent who brought the buyer.

Today, agents either represent the buyer, or the seller. If you want to sell your home, you can work with a “seller’s agent.” If you want to buy a home, you can work with a “buyer’s agent.” Most states require real estate agents to disclose to consumers who they represent.Sometimes an agent will represent the buyer and the seller. A buyer who elects this situation should receive full disclosure on representation.The real estate agent you choose should fully disclose how they work with individuals and the options available to you.

Keep in mind that real estate laws differ from state to state and even from locale to locale. For more in-depth answers, talk with a knowledgeable real estate professional and ask about local practices. Be sure you understand and are comfortable with the services of the real estate agent you engage.

How to Make Your Move Easier on Your Family

by admin0

People generally have two kinds of needs during a home purchase.First are the transactional needs, such as searching for a home, obtaining financing, negotiating the terms of purchase, completing paperwork and legal documents, and arranging the move. The second are emotional needs, which can be more stressful than the financial ones.The following are some tips to help ease the stress.

PREPARE YOUR CHILDREN

Although you may have lived in your current home for just a few years, four years is half the lifetime of an eight-year-old. Your home may be the only home your children remember. It’s where they feel safe and it’s probably the center of your son or daughter’s world.

Be sure to announce the move in a completely upbeat way. You might talk about how beautiful the new neighborhood is and how good the schools are. Bring your children to the new house, if that’s possible or positively describe it to them. Find out what your children’s favorite things are in your current home, and then try to re-create them in the new house. Keep your children actively involved. For instance, take them shopping for paint, bedspreads, carpets, and other items for their new room.

Your children are bound to have worries during the move. Help lessen these anxieties by finding ways to make parting pleasant. For example,plan a going-away party or create a photo album with pictures of neighbors, their house and the neighborhood.

GAIN KNOWLEDGE

As you begin the process, you may start to feel out of control, as though other parties to the purchase transaction are running the show.Your mortgage company, the appraiser, the inspector, and the seller all have certain powers to approve or disapprove of your overall plan to purchase this home and move successfully. To alleviate your feelings of helplessness, one of the best things you can do is to understand as much of the purchase process as possible. Work with your real estate agent to prepare yourself for the unknown and tie down loose ends.

TRUST THE PROCESS

There can be so much to do that it’s easy to panic. Buying a home may feel risky, but the truth is it’s an opportunity for you and your family. Even though you can’t predict what will happen every step of the way, your real estate agent helps people buy and sell homes as a profession! Your agent has been there before and understands that this is a major upheaval in your life. Trust that your agent is looking out for you on your way to a successful closing and move.

BE FLEXIBLE

Although your agent will do everything possible to prepare you for your home purchase, there is no such thing as a perfect world. The property inspection may reveal areas of concern, or closing may be delayed for some reason. Try to take a deep breath and be flexible in your thinking.

SEEK ENTERTAINMENT

Whenever you feel things are spinning out of control, find a diversion! Take a walk around your new neighborhood; go out of town or to a movie with your family. Whatever outlet works best for you, this is a good time to engage in it! Remember to take one “move” at a time.

10 Steps to Buying a Home

by admin0

Top 10 Signs That You Are Ready to Buy a Home

1. You’re ready to stop paying your landlord’s mortgage payment, and start building wealth of your own.

2. You could use the property tax and mortgage interest deductions.

3. You want a vested interest in your community.

4. It’s mid-August and you can no longer tolerate waiting for your landlord to send someone to fix your air conditioner.

5. You are working at a job where you won’t leave the country every other year.

6. You want to provide your family with a sense of stability and plant roots.

7. There are more than twice as many people as bedrooms in your current residence.

8. You want to paint the walls of your bedroom any color you please.

9. You are tired of saving all your quarters for the laundromat.

10. When you say you are “going home,” you want to really mean it!

 

10 Steps to Buying a Home

STEP 1 – DEFINE NEEDS FOR YOUR NEW HOME

Congratulations on your decision to purchase a new home! Your first step toward buying your new home will be to analyze your needs. Your real estate agent can help you determine exactly what you want your new home to look like and how it should function for you and your family.

First, write down why you are looking for a new home. For example,are you currently renting and would like to begin building equity? Maybe you recently married and have outgrown your current residence. Or,maybe you received promotion that requires you to move to a new city.These factors will all have a bearing on how you approach your home search.

Second, establish a time frame for buying your home. Depending on your reasons for wanting a new property and the current state of the market in the area you are looking to buy, you should be able to come up with a rough guideline.

Finally, you probably have a mental picture of what your dream house looks like. Turn these ideas into two lists: one should describe your dream home and the other should list features that are absolute must haves. In a perfect world, your new home would fulfill both lists 100percent, but it is more likely the two lists will turn into a list ofpriorities, as you get clearer about what you want and what isavailable.

STEP 2 – PRE-APPROVAL VS. PRE-QUALIFICATION

Now that you know what you want in a home, you need to find out whatyou can afford. There are two ways to go about this: prequalification orpre-approval for a loan. Either way, you can contact your agent aboutchoosing a mortgage company. Prequalification is the simpler of the twoprocesses. It can even be done online or over the phone. When youcontact a mortgage company, they will ask you for some basic informationabout your finances ? how much money you earn, your debt load, etc.They will take this information and give you a rough estimate of howmuch of a loan you might qualify for.

Pre-approval is more a more in-depth process. The lender will performan extensive check of your finances including your credit rating,whether or not you’re a first-time buyer, what your debt load is, howmuch money you have to put as a down payment, etc. This figure will be amuch more reliable estimate of what you can afford.

In most markets, pre-approved buyers are preferred over those thatare merely pre-qualified. Being pre-approved lets the seller know youhave gone through an extensive financial background check and thereshould be no unexpected obstacles to you buying their home.

STEP 3 – NEIGHBORHOOD INFORMATION

Now that you have your list of needs and wants and know how much youcan afford to spend, it’s time to look at some houses, right?! Well,don’t forget, people don’t just buy a house; they buy the neighborhoodthe house is in. Think about that…if you found the perfect house but itwas in a neighborhood that was not to your liking, would you make anoffer on it?

You will need to make another list for the type of area you want toinvest in. Consider things like drive time to work and majordestinations, amenities such as swimming pools, tennis courts, parking,etc., area schools and the demographics of the surrounding area.

STEP 4 – HOME SEARCH

At this point you will have a good idea of what you can afford andthe type of area you will want to invest in. Taking that informationinto consideration, you are ready to embark on your home search. If youdon’t know much about the city to which you are moving, you will want tostart by finding areas that meet your criteria and then narrowing yoursearch to particular properties in those areas.

There are a few ways to go about this. Possibly the most efficientway to find homes is to allow your real estate agent to keep youup-to-date on available properties that meet your criteria, and thenallow your agent to screen them for you. When your agent presents youwith a home that interests you, he or she can arrange for you to tour itat your convenience.

You can find available homes by reading local real estatepublications, contacting local Neighborhood Associations, visiting thelocal Chamber of Commerce, looking on the Internet, or driving throughneighborhoods that meet your needs. Driving around a particular arealooking for a home that is for sale is good because you can actually seethe house, but it can be very time consuming and very “hit or miss.”

STEP 5 – MAKE AN OFFER

Now that you’ve found your dream home, it’s time to make an offer.Your real estate agent will help you determine the offer price byreviewing recent sales of homes that are similar in size, quality, andconveniences and amenities. Your real estate agent will advise you onhow to create an offer that will have the best chance of being accepted.

After consultation with you, your agent will create a writtencontract with your offer that meets all the local and national legalrequirements. This document details what needs to be done by bothparties to execute the transaction. It should protect the interests ofboth parties and will ensure your financial position as the buyer.

The contract should include, but is not limited to, the following:

  • Legal description of the home
  • Offer price
  • Down payment
  • Financial arrangements
  • List of fees and who will pay them
  • Amount of the deposit
  • Inspection rights and possible repair allowances
  • Appliances and furnishings that will stay with the property
  • Settlement date
  • Contingencies

Remember the legalities of this phase are very important. If you haveany questions or concerns, be certain to address them with your realestate agent right away.

STEP 6 – NEGOTIATING TO BUY

Once your offer is made you may need to negotiate with the seller toreach an agreement. Keep in mind almost everything is negotiable whenyou are buying a house. This can give you a great deal of leverage inthe buying process, that is, if you have adequate information and youuse it in an appropriate manner.

Some things you may negotiate:
* Price
* Financing
* Closing costs
* Repairs
* Appliances and fixtures
* Landscaping
* Painting
* Occupancy time frame

Counter offers happen frequently. Remain in close contact with yourreal estate agent so you can quickly review any changes from the seller.Remember…bargaining is not a winner-take-all deal. It is a businessprocess that involves compromise and mutual respect.

STEP 7 – SERVICE PROVIDER COORDINATION

After your offer is accepted, your agent will help you coordinate theactivities of service providers and serve as your advocate when workingwith them. Your agent will make sure these vendors have access to theproperty to perform their procedures and will oversee the execution ofthose procedures on your behalf.

One service you may need is a home examination. An inspection of theproperty, the foundation, and the surrounding environmental may beneeded to make sure the property meets the standards set forth in yourwritten agreement. If there are issues or inconsistencies brought tolight during this time, it may delay or even nullify the contract.

Insurance is another item that will need to be taken care of. Expertsrecommend you obtain title insurance equal to the full replacementvalue of the home. This kind of insurance is purchased at closing andprotects the buyers in the unlikely event that the title to the propertybecomes invalid. Homeowners insurance protects against theft, fire andliabilities. It often includes things such as bicycles, furniture andjewelry. Flood insurance is generally only necessary for flood-proneareas. The federal government issues this kind of insurance.

In addition to aforementioned types of insurance, you may wantadditional assurance for your new home. Home warranties are one way toprotect yourself after you buy. Warranties for new homes protect againstplumbing, wiring and structural defects. Existing home warranties coverthings like major appliances and structural problems.

Having these procedures done in a timely and professional manner is amust. Investigate each service provider to make sure they are reputableand have a clean operational history. Your agent’s experience in thisarea will be invaluable.

STEP 8 – BEFORE YOU CLOSE

As the closing date (otherwise known as settlement or escrow) drawsnear you will need to be in contact with the escrow company or closingattorney and your lender to make sure all necessary documents are beingprepared and will be delivered to the correct location on theappropriate date. Find out what form of payment you will need to bringto the closing for any unpaid fees. Make sure that your payment is madeout to the appropriate party.

These days, buyers and sellers don’t even have to be in the same roomto close a deal. Thanks to computer automation, signed paperwork can bedelivered overnight to both parties.

STEP 9 – CLOSING ON A HOME

Closing is where ownership of the home is legally transferred fromthe seller to the buyer. It is a formal meeting that most partiesinvolved in the process will attend. Closing procedures are usually heldat the title company’s or lawyer’s office. Your closing officercoordinates the document signing and the collection and disbursement offunds.

In order for the closing to go smoothly, each party involved shouldbring the necessary documentation and be prepared to pay any relatedfees (closing costs). There may be more than one form of acceptablepayment for your closing costs so ask the closing officer which form ofpayment will be required and to whom it should be paid.

Sellers sometimes pay for a portion or all of the closing costs,depending on local market conditions, terms of the purchase contract,and the seller’s cash and timing considerations. Any such concessionsshould be acknowledged in writing. Most lenders will allow a credit fromthe seller to the buyer for the non-recurring closing costs. However,they usually won’t allow a credit that reduces the amount of the buyer’sdown payment or any of the buyer’s recurring costs, such as expensesfor fire insurance premiums, private mortgage insurance (PMI) orproperty taxes.

STEP 10 – POST-CLOSING

Congratulations on the purchase of your new home!

Now that you have taken ownership of it you will need to have yourelectricity, cable and phone set up. Also be aware of typical homeownerexpenses such as Neighborhood Association fees, landscaping costs, andannual taxes and budget for them accordingly.

Find Real Estate in Charlotte NC, Lake Norman Real Estate

by admin0

Finding real estate is easy with our Charlotte NC, Lake Norman MLS property search. It is updated continually to ensure the most complete and accurate results possible.

Welcome to the Chris Angel Reators website! You have found the best website for the most up to date information on Charlotte NC, Lake Norman real estate and Homes for Sale in Charlotte NC, Lake Norman and surrounding areas. We update this website constantly so you get all the available home listings with any updates in price or status changes immediately. We pride ourselves in our state-of-the-art facilities and technology. This helps us give our clients the best Charlotte NC, Lake Norman Real Estate experience possible and helps us ensure superior service second to none.

Sign up to get a custom home search made for you and get sent automated emails with Charlotte NC, Lake Norman homes for sale that fit your exact criteria. Moving from another city? We would be happy to send you a free relocation package full of information on local Charlotte NC, Lake Norman homes for sale, new builder homes, townhomes, and condominiums, public and private schools, daycare facilities, and things to do about town.

Contact us with any questions. We would love to hear from you!

Featured Listings

Below are the newest listings from Chris Angel Reators in Charlotte NC, Lake Norman

Reduced Listings

Below are recently reduced properties in Charlotte NC, Lake Norman. There are many great Subdivisions and Communities in Charlotte NC, Lake Norman. Chris Angel Reators can help you find or sell your home.

New Listings

Below are the newest listings in Charlotte NC, Lake Norman. There are many great Subdivisions and Communities in Charlotte NC, Lake Norman. Chris Angel Reators can help you find or sell your home.