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Archive for August, 2009
Tips for Making an offer on a Home
You may have been shopping around a while and gone to several open houses, and considered your options with your family, and now you have found the house that is best for all of you. Now, you have to make an offer on the house. This can get tricky, because you do not want to offer too low and offend a seller, but you also do not want to overpay. Here are some tips and information to get before making an offer. This may make the process easier and you and your family will be living in your new home in no time.
Ask your real estate for advice
Even though an agent should not recommend an asking price for various reasons, they do have plenty of knowledge about homes and the market and will be a good resource in helping you get the information you need.
Check out the Market
If you are in a seller’s market, the seller may not be willing to go lower than the listed price, but if you are in a buyer’s market, you may be able to talk a seller down to the price you want. Your agent may be able to help you gather this information.
Find out how much the seller paid
The seller may have bought the home in a down market, so conditions may be more and less the same and the asking price may be close to what the seller paid for the home. This may help you determine a good asking price.
Look at comparable sales
If you look at comparable sales, be sure to only include the homes that are similar in features to get a better estimate. Your agent should be able to help you with this information as well. If you know what other homes are going for, you may be able to offer a reasonable asking price.
Ask for a home’s history
A home may have been taken off the market and then relisted, if this is true and the home was on the market for more than a month, a seller may be willing to accept a lower offer.
Once you have gathered this information as home buyer, it will help narrow down your asking price options and hopefully help you in making a decision. That way you can be in that dream home in no time and enjoying your future.
Number of Views :45Short Sales: What You Need to Know
Short sale was a fairly unknown term, unless you were part of the real estate industry, until just recently. Although they are not a new concept, they weren’t as talked about as regular home sales or foreclosures. Of all the ways to buy a home, they are often the most misunderstood and confusing, but they can be one of the best ways to save money on buying a home.
A short sale is the purchasing of a home that is at risk for foreclosure for usually less than the home is worth. The current homeowner makes no money from the sale, but does get to escape with less damage to their credit score. It’s a complicated process because, unlike most home sales, the bank currently holding the mortgage has the ultimate say in whether or not a short sale can go through.
Here’s how it works. A current home owner is having difficulties keeping up with their payments, or maybe their home is worth considerably less than they are paying for it. At this point, they contact the bank and ask about the possibility of a short sale. If the bank gives the okay, the owner begins filling out the paperwork and then contacts a real estate agent to get the process started.
In a short sale, the bank accepts less than is actually owed on the home in order to avoid a costly foreclosure. A foreclosure can cost a bank thousands of dollars, not counting the time and effort that goes into it. To avoid this, many banks are willing to at least talk to a home owner about the possibility of a short sale. This is an excellent opportunity for buyers, allowing them to purchase a home for less than it is worth, in most cases.
There is a catch, however. Short sales are notoriously difficult to get accepted. The banks don’t want to lose any money on a home, and may stop a short sale if they feel that the amount offered is too low. Short sales also fail because of incorrectly filed paperwork and other small mistakes. It is important to know what to expect before you enter into a short sale, as either a buyer or seller. A buyer has to be dedicated to the home, and willing to work to get it. They must also be patient; a short sale can take months to go through, as opposed to a few weeks for a traditional home purchase.
New government incentives, offering banks stimulus money for each short sale they accept, have made banks more willing to accept a short sale. One of the best ways to successfully buy, or sell, a home through a short sale is to do some research and understand how the process works. Here are a couple sites to get you started:
How to Handle Real Estate Short Sales
Would you consider buying through a short sale?
Number of Views :44Afraid to Buy? Don’t Be!
Despite tax incentives, first time home buyer assistance, and low interest rates, it’s easy to understand why you might be afraid to buy a home right now. The market is still fairly unstable, and house values are still falling in some areas.
Buying a home is always risky, but it’s a risk that very commonly pays off. Real estate works in cycles—some years, the prices are up, during others the prices are down. It can be hard, not to mention frustrating, to try guessing what the next year or two will be like. Remember that buying a home is a long term investment. There might be a short term loss, but housing prices will go back up, and the home you buy this year will probably be worth more than you paid for it a few years from now.
Still, there are several fears that many first time, and second and third time, homebuyers face when considering purchasing a home, and they are all very valid. Let’s take a look at some of the most common fears, and see why you don’t really have to worry.
Fear 1: I might lose my job.
This is one of the biggest fears of potential homebuyers, and, in today’s economy, it is certainly valid. One of the best ways to alleviate this worry is to have a rainy-day fund in place before buying a home. Have enough money set aside to cover at least three month’s of mortgage payments while you look for a new position. And, while this is not a guarantee, and certainly no reason to be lax about payments, most lenders will not start foreclosure proceedings until you are two or three months behind. For those who are currently renting, this means that staying in a home after a job loss will be easier than staying in an apartment.
Fear 2: I won’t be able to afford my mortgage payments.
The easiest way to avoid this problem is to not buy a home that you can’t afford. Consider the amount of your payments, after taxes, interest, and any other applicable fees are added in. This amount should not equal more than 1/3 of your total monthly income. If you can get that amount down to ¼ of your take home income, that’s even better.
When you start looking for a mortgage, keep this number in mind. If you bring home $4000 a month, try to keep your mortgage payments around $1000, or less. Don’t take accept a mortgage with monthly payments over this amount. Also, make sure you have that rainy day fund saved, outside of what you used for a down payment. Having a cushion for tough times will make you feel more secure.
Fear 3: I’ll lose money.
This, unfortunately, is a risk common to any type of investment. The home you buy today for $150,000 might have sold for less three months from now, or may now be worth less after you’ve bought it. Unfortunately, it is hard to know when real estate values have hit bottom until after it has passed. If you wait too long to buy a home, you could very easily end up losing even more money, by paying considerably more for the home you by a year or two from now.
Buying a home is a long term investment. Even a short term dip in value doesn’t mean much, unless you are planning on selling. The market has dips and rises, but the overall trend is that home values do, eventually, go up. The average price for a new home in 1980 was $72,400. Today, that same home would cost $274,330. There are not many investments that go up $200,000 in value over 30 years.
There are definitely things to worry about when buying a home, but don’t let those worries automatically stop you from buying. Learn a little bit more about those fears, and see how you can alleviate them. Interest rates just hit a record low, averaging right around 5%. In the central NY area, some lenders are offering even lower rates. There will probably not be a better time to buy within the next 20 years.
So, what are you waiting for?
Number of Views :41Travel around Syracuse: Finger Lakes Wine Country
If you are looking for something different to do this Labor Day Weekend or during the school year for a nice get away with a loved one and you would rather not cook, clean, or do those other million chores on the to do list, then send the kids to a friend’s house for a sleepover and head to Finger Lakes Wine Country. There is plenty to taste, see and do, and it may just be the getaway you have been searching for.
Finger Lakes have wine trails that you can go on or tour and participate in various different wine tastings such as their international Riesling. Also at the Finger Lakes Wine Country are museums about glassmaking or experience the west at the Rockwell Museum of Western Art or get a taste of Broadway at the Clemens Center. There are also farmer’s markets that you can visit and get fresh fruits and vegetables or experience some auto-racing history at the Watkins Glen International, which features IndyCar, NASCAR and Watkins Glen Grand Prix. There are also different tours that can be taken for this as well (http://www.fingerlakeswinecountry.com/Things-to-Do.aspx).
There are also antique shops to explore, shopping centers, local vendors, and more museums about flight such as National Soaring Museum or the Glen H. Curtiss Museum where you can see vintage airplanes and much more. If wine is not your thing, Finger Lakes also has many breweries and distilleries where you can taste and sample of kinds of different whiskey and beer.
If you need a place to stay Finger Lakes also offers many choices from bed and breakfasts, hotels and motels, to country Inns and Vacation Rentals as well as campgrounds and cabins. There are also many places to eat from fine dining to casual dining and winery restaurants. There is a little something for everyone at Finger Lakes Wine Country.
So put off that to do list and that cleaning for one more day or maybe a few, send the kids to a friend’s and prepare for a nice getaway to Finger Lakes Wine Country. There is so much to taste, see and do, you’ll be glad you decided to get away.
Number of Views :49Now’s the Time to Buy in Real Estate
Investors are returning as the real estate market recovers.
BusinessWeek’s real estate guru Marc Roth points out these opportunities, which he says make sense if investors are willing to look over the property carefully and ask tough questions.
Options they should consider include:
- Buying a single-family house. This could be a first home or a dream home or a home to rent out.
- Buying a multi-family investment property.
- Snapping up a vacation property. There are deep discounts to be found in high-end resort areas.
- Investing in a Real Estate Investment Trust. REITs were hit hard in the downturn, but many are on their way back.
Source: BusinessWeek, Marc Roth (08/26/2009)
Number of Views :49Movers or Do it Yourself?
Buying or selling a home usually means one thing: time to pull out boxes and start packing.
For some, packing for a move is a great opportunity to look through the memories and treasures they have gathered throughout the year. For the rest of us, it is a stressful task that we would just as soon get over as soon as possible. Finding boxes, wrapping breakables correctly, and then carting everything to your new home can be stressful, especially if you’re already busy with work and family responsibilities.
The alternative, of course, is to hire a moving company to pack and move for you. Although this is the more expensive option, it can save a lot of time, which is why most people choose to hire a moving company. However, they can be expensive, and it is sometimes easier to move on your own.
So, should you hire a professional, or do it yourself? It depends on a few factors:
1. How Much Stuff Do You Have to Move?
If you are moving from a small apartment into your first home, and you don’t have a lot to move, it’s probably going to be easier to pack on your own, and then ask some friends to help you. If your family is moving, including children and all of their things, it is probably better to hire a mover, unless you have a lot of extra time and patience. This is especially true if you have a lot of heavy, bulk, or difficult to move items, such as furniture.
2. How Far Are You Moving?
Are you just going across town, or are you going across the country? A short move, even if you do have a lot of stuff, can probably be done with the help of family and friends, if you don’t mind making a lot of trips. However, if you are moving a long distance, even more than 30 miles away, it is probably smarter to hire a moving company, or at least rent a moving truck. Being able to move everything in one load will be much easier, and won’t take as much gas.
3. How Much Time Do You Have?
If your time is at a premium, consider hiring a moving company. Professional movers can do the job with very little input from you while you continue on with your busy day. While you will need to be home while the movers do their initial estimate and while they are packing, you won’t be spending the weeks leading up to the move trying to do all of the packing yourself.
4. How Comfortable Are You With Someone Packing and Moving Your Belongings?
The chance of something getting broken by a mover is small, but it is still a possibility and one that should be considered. Even if you hire someone to do the packing and moving for you, you should still take the time to package any irreplaceable belongings yourself, and drive them to the new home in your own vehicle. Many moving companies ask you to pack any jewelry, antiques, or other valuable items yourself, to avoid something being broken accidently.
You should also consider how comfortable you are with someone going through all of your belongings as they pack. Some people are comfortable with this, but many aren’t. Instead of hiring movers to pack everything, pack all of your personal items, such as clothing, yourself, and let the movers handle things like dishes, books, and bedding.
5. How Much Help Can You Get?
If you live in a town surrounded by family and friends that can help out during a move, you may not need to hire a mover. This is especially true if you have friends with pick-up trucks. Spending a day moving as a team may even be fun. However, for those who do not have anyone nearby that can help, hiring a moving company might be the only way to move.
Hiring a moving company is a great idea, if you can afford it and can use the extra help. But don’t discount the benefits of moving yourself, especially if you can get help for free. Renting a moving truck might be all that you need to get everything moved.
Have you hired movers in the past? Were they worth the expense?
Number of Views :123Reverse Mortgages
If you are a home owner or getting ready to be a home owner and you know that money is tight especially with the economy the way it is, it is important to think of all your financial options. There are all kinds of options, borrowing money from friends and family, loans, and mortgages. You may be wondering what type of loan is best for you though because there are so many. If you are a home owner and have been one for quite awhile, reverse mortgage may often you many benefits. This way you can make sure your home and family is well taken care of. Here are some benefits of these mortgages to help get the process started for you.
Ask your real estate agent for advice
If you are an older home owner, planning to buy or even sell your home, it’s a good idea to ask your agent about the types of mortgages that would best benefit you. They have experience seeing all different buyers and sellers and are a great resource.
Reverse mortgages mean the lender pays you
If you are the borrower with a reverse mortgage the lender owes you payments instead of the other way around. These payments can be made as a lump sum, monthly, periodically, or in any combination of those.
Older home owners with equity benefit from these mortgages
If you are 62 or older and have equity in your home you may benefit more from reverse mortgages. Your existing home could be paid off, FICO scores do not apply and credit history does not apply.
Costs vary but are not too bad as with other mortgages
As with any mortgage a borrower has some fees to pay but these fees are not as pay or as high as some. Some fees may include: insurance premiums, monthly lender fees, application fee, and closing costs.
The longer you have owned a home the more you may be able to borrow.
How much a person can borrow with reserve mortgages depends on how much equity is in their home, the type of program you choose, and the age of the borrower. So, these mortgages may benefit older home owners or home buyers with more equity.
Knowing these benefits about reverse mortgages can help you as a home owner or buyer; decide which type of mortgage is best for you. This way you can know that you are safe and secure in your home and have fewer worries in the future.
Number of Views :62Marketing Mistakes to Avoid When Selling
When you have decided to sell your home and move on to your new future, it is important that buyer’s get a good first impression of your home. You want them to see it as a good comfortable, safe, nice place for them and their family. You want them to see it like you did when you first bought the home. This requires good marketing such as open houses, pictures, tours, networking, and more. If you know about marketing at all, you know there is good marketing and then there is marketing mistakes that can be bad. Here are some tips to help you avoid bad marketing when selling your home. This way you can sell your home faster and for the price you want and get on to that future.
Ask your real estate agent for tips
As your agent, they have experience in what sells a home and what may not be such a good idea. If you are looking to avoid bad marketing ideas, agents are an excellent first resource of information.
Avoid taking pictures that are too dark or cluttered
You want a buyer to see your home as bright, spacious and comfortable. Taking pictures in bad light or of a cluttered room may give off the wrong first impression and make a buyer lose interest.
Avoid withholding important information
If there are tons of homes for sale, it is important to include important descriptions and details that make your home stand out first the rest. If it does not, a buyer may look elsewhere before giving your home a chance.
Try not to be too restrictive about showing your home
If an agent cannot get in to show a buyer a home because of too many time or other restrictions, a buyer may not even want to do business with you as a seller. Try to be as cooperative as possible.
Avoid not including incentives for buyers
Buyers like knowing that there is an incentive to buying your home such as an allowance or credit toward home repairs, home protection plans, weekend getaways, and more.
Avoiding these marketing mistakes and talking about alternatives with your agent, will help you to sell your home faster in any market. That way you can get on to your new future with fewer worries and holdups and a new buyer can enjoy your home sooner too. So everyone wins.
Number of Views :89Making Purchase Offers in a Buyer’s Market
Right now, with the economy having problems and people having to save up and worry about money more than before, there are in certain locations more houses for sale than there are buyers, so it is a buyer’s market. This is good news for you has a home buyer, but if you have searched all over and finally picked the home you would like to make an offer on, but are not sure to go about it, you may need a little help getting things exactly right. Here are some tips on making purchase offers to help make the process a little easier for everyone. This will help you get on your way to living in that new home of your dreams.
Ask your real estate agent for advice
Real estate agents have plenty of knowledge and experience about purchase offers and they know what a seller may like or dislike so they can offer some tips and advice to you on how to make that first purchase offer.
Tour price reductions
If you want to make a low ball offer, you will have a better chance with houses that have been on the market longer and have had to reduce the asking price. So tour recent or fairly new price reductions before writing a purchase offer.
Find Comparable Sales
When you have found that home you want to buy, it’s a good idea to obtain information from sales in the same neighborhood and see what they sold for. They can be active listing, pending sales or sold homes. Your agent should be able to help you with this information.
Ask for a contingency
This will help protect you as a buyer that the agreed upon price at the appraisal will stay the same and that the seller will not be able to change anything without notifying you first.
Ask for an allowance or credit
If you and your family have found the home you want but you do not like the carpet or something, ask for an allowance or credit toward new carpeting in your offer. If a seller wants to sell, they should agree.
These tips about writing an offer in a buyer’s market should help you as a buyer know what to ask for and what to leave out and this will help make the process easier for everyone. This way you may be one step closer to that new home.
Number of Views :77