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Archive for the ‘Buyers’ Category
Buyer’s Credit — Eight Weeks Left
The revised and extended Home Buyer’s Credit has eight weeks left. You need to enter into contract to buy the home by April 30th, and close by the end of May, if you want to take advantage of this program.
First time buyers, or buyers who have not owned a home in the past three years, can claim $8,000 for the purchase of a home. Current home owners can claim $6,500. This is a tax credit, meaning that the amount is applied to your 2010 taxes, either reducing the total amount you owe or increasing the amount of your refund. There are income limits, $125,000 for singles or $225,000 for couples. The amount you receive is determined by the price of the home; homes over $800,000 are not eligible. There are bridge loans available for this credit, allowing you to put the money towards your down payment, although you will probably still need to pay for a portion of the down payment on your own.
If you want to take advantage of the buyer’s tax credit, and you haven’t started your search for a new home yet, it’s time to contact a Syracuse real estate agent to get the process started. Don’t wait until the last minute, and then rush to find the perfect home with only a few weeks left. Give yourself the time you need to find the property that best fits your needs. Remember that you also need to have your offer accepted and an initial contract for the purchase of the home signed before time runs out.
This isn’t the only government refund you can take advantage of as a new, or soon to be new, home owner. New York’s Great Appliance Swap-Out, designed to replace older appliances with more efficient models, is still going. This program started a few weeks ago, and offers significant rebates for the purchase of new washers, refrigerators, freezers and dishwashers. The rebate amount for each appliance varies, and dishwashers are only available for a rebate when purchased with other appliances. If you pay to have your current appliances removed and recycled, you can qualify for a larger rebate. This program lasts until the funding runs out. For more information, visit New York’s Great Appliance Swap-Out.
A lot of appliance stores are offering their own discounts or rebates on appliances, further reducing their cost. If you take advantage of both programs, you could be in a new home, with brand new appliances, with a discount worth nearly $10,000.
Simple Fixes for Your New Home
Finding the perfect home is tough. There are a lot of properties available in the Syracuse area right now, so there are a lot to choose from. What happens, though, when you finally find the perfect home, only to find that it’s not quite as perfect as you were hoping for? Do you walk away, or just accept the home as it is? What you need to do is figure out if the problems are fixable. Here are some common problems with simple fixes.
- Fleas, ants or other pest problems. Although this is more common in the warmer summer months, some homes have pest problems year round. The current owner should take care of the problem before you move in, but if they don’t (or if the problem returns) hire a professional exterminator. There are a lot of safe and effective ways to get bugs and rodents out of your home, and to keep them out, and a professional will be able to get it done quickly.
- No air flow. If the property has a closed floor plan, meaning that rooms are closed off with doors, it can be hard to get air moving between rooms. Stuffy rooms are no fun, especially when the weather heats up. Consider installing ceiling fans; it sounds a lot harder than it really is, especially if you already have overhead light fixtures. Alternatively, purchase some floor fans to keep air moving in and between the rooms.
- Dark and dingy. You love the home, but it feels like the bat cave. This is a really, really easy fix. Start by painting the rooms lighter colors, and putting up light-colored curtains that let in the light. Clean the windows, floors, walls and other surfaces really well. If the room is still dark, install extra lighting and use higher-quality light bulbs to give the room a more natural glow.
- Outdated… everything. Maybe the home looks like it fell out of a 1970’s Better Homes and Gardens magazine. Older homes, especially if they were owned by older couples, might be in need of a serious make-over. Tear out the shag carpeting and replace it with something more modern. Hardwood floors give the home a timeless look. Paint the walls and ceilings, and consider replacing any older fixtures. Kitchen cabinets can be transformed by a coat of paint and new handles. If you’re looking at new appliances, you might be able to get some great deals (and rebates) on Energy Star models, thanks to new green government initiatives.
If the home is almost everything you wanted, and there are no huge problems, don’t let a few small issues chase you off. Small problems can be fixed, usually with less of a hassle than you might first assume. Ask your Syracuse real estate agent for advice, or visit a local hardware store for information on how to handle the problem. Chances are, with a little bit of effort, the almost perfect home can be the home of your dreams.
Buying a Bank Owned Property
There are more homes in foreclosure right now than ever before. Homes that do not sell during the foreclosure process become the property of the bank that was holding the mortgage. These homes can be a great bargain, if you know where to look and what to look for.
A bank owned property (also known as REO- Real Estate Owned- property) can sell for as much as 20% off the actual value of the home, and the bank may allow a lower down payment, and discounts for repairs needed. They can be a great opportunity for investors or first time home buyers who don’t mind a challenge. With the help of a Syracuse real estate agent, buying an REO property can be a low-stress, easy way to achieve your home ownership goals.
Bank owned properties are sold “as is,” or in whatever condition the previous owners left it. Sometimes, the home is left in great shape; other times, you’ll be facing major repairs. If the bank will give you access to the property, make sure you hire a home inspector to give you a list of problems that will need repair. Keep these repairs in mind when making your offer to the bank. The bank will probably counter-offer with a higher price, and then you can either accept it, walk away, or try to reduce their asking price. You might be more successful with getting the price dropped if the home needs extensive work.
The bank will take care of all prior debts against the home, and evict the previous owners (if they haven’t already done so). If you have decided to buy the home, a contract will be drawn up. Review it carefully, and make sure you know exactly what you will be responsible for. Have your real estate agent or lawyer review the contract with you.
A bank owned property can be a great bargain, but you need to do your homework. Add up the cost of repairs, and get an accurate picture of the value of the home, both before and after the repairs have been completed. It is not unusual for a buyer to spend more on a bank owned property than they would have to buy a traditionally sold home. To avoid that, know what the home is worth, hire a great property inspector, work with a Syracuse real estate agent that will put the time into making sure your decision to buy a bank owned property is the right one.
Basics of the Closing Process
Many of us know what goes into looking for a home and even getting the sellers to sell their home to you, but when it comes to the actually closing process, many of us turn to our real estate agents and other professionals for help. Well, if you are tired of being lost and confused while closing on the house of your dreams, there is something you can do. Here are some simple basics of the closing process to get you started so you will know exactly what it is you are doing and will be less confused now and in the future.
Ask your Syracuse real estate agent for advice
If you have any questions about any part of the closing process, do not be afraid to ask your agent. It is their job to know all about the closing process and how to help possible buyers and clients through the process.
Offer to purchase
This is when you make an offer to the seller to buy their home. It is best to move fast and maybe ask eight to ten percent below the asking price depending on the area and market. It is okay to ask your real estate agent for help if needed.
The Deposit
This is money of good faith and commitment given to the seller by the buyer. It usually includes one percent of the purchase price of the home and lets the sellers know how serious you are about purchasing their home.
The Contract
This is the acceptance of an offer by the seller and it is legal and obligates the buyer to purchase the property. It also outlines all the details of the transaction, including price, closing date, possession date, and more.
Final arrangements
Before you can take possession of and move into your new home, you need to make arrangements about the payment of utilities and the first mortgage payment.
These basic tips will help you to know and better understand what is going on during the closing process of your new home. This way you can make sure you understand everything about your new home and future and will avoid confusion and worries in the future. This will help you be free to relax and enjoy your new home for years to come.
Greener Homes at the Right Price
It is becoming a popular trend to want to buy a “greener” home or a home that is safer and more efficient for the environment. At the International Builders Show in Las Vegas, “green” home products were on display with products such as: solar panels, energy efficient appliances, and even water conservation fixtures in the bathroom and kitchen. People are definitely going “green” these days more than ever before.
A survey from Better Homes and Gardens, found that eighty-seven percent of consumers or home buyers, want high energy efficient heating and cooling systems in their next home. Eighty-six percent just want energy efficient appliances and approximately twenty-five percent of consumers want to have geo-thermal heat.
Even if they cannot afford or have “green” products in their next home, many consumers plan to make improvements in their current homes that will support the “going green” movement. Thirty-four percent of people that took the survey said they wanted to install energy saving windows and doors. Also, thirty-eight percent said they wanted to replace carpeting or flooring within the next year.
It seems that this “going green” movement is really starting to catch on and real estate agent’s and home sellers need to be aware of the home buyer is going to want and focus more on within the next few years as this movement continues. It is important to stay on top of trends and new developments in the housing market that way you can know what will sell and what may struggle now and in the future.
Buying an Older Home
Older homes have a lot of character, and are usually a smart buy. Even if the home could use a little repair, the majority of older homes are still in great condition.
There are a few pitfalls you should be aware of when purchasing an older property. Although many homes stand up well over time, some can develop serious problems. One of the most common issues in older homes occurs in the roof. If shingles fall off, or are in need of replacement, moisture can get into the main part of the roof and cause serious damage. If the roof appears to be sagging, or if you notice that the wood along underside of the roof, where it comes off from the front of the home, is in poor condition, have a home inspector take a closer look. Another sign is discoloration in the ceilings or walls within the home; this cold mean that there has been water damage from a leaking roof.
One of the most costly problems an older home can have a defect in the foundation. Cracks, bulges and indentations can be the warning signs of serious problems. Foundation repair is a long, complicated and expensive process. You might be better off letting that home go, and looking for another property you like.
The floors of an older home should also be examined closely. Current building codes state that floor support beams can only be a foot or two apart. In older homes, however, there might be four or five feet between each beam. This can lead to serious sagging and warping in the floor boards, and fixing this problem can be costly.
Like the roof, wooden exterior walls need to be covered with a protective coat of paint to keep them in good condition. If the exterior goes too long between paint jobs, or if a termite or carpenter ant problem develops, there can be a mass amount of damage to the wood. Replacing siding is an expensive repair. Check for “soft” or “crumbly” looking wood, especially along the lower edges and sides of the home.
Electrical systems are another problem area in many older homes, and they can be very difficult to detect. Faulty wiring is the cause of the majority of residential fires. You might also run into problems with ill-fitting outlets or too small of a power supply for modern usage. A home inspector will check for any obvious wiring problems, but you will want to be cautious when doing any repairs or remodeling. Also, if lights or outlets begin to flicker or seem to not be working correctly, call a certified electrician.
Many older homes also have inefficient windows and insulation. You may also be facing doors that do little to keep the home insulated. While making a large home more efficient can be costly and may not be essential to your ability to life in the home, it will save you a significant amount on your utility bills.
Buy or Rent?
Last year’s housing market fiasco has some people looking at real estate as a waste of money. What’s the point in buying when you can rent a nice apartment for the same price? Why go through the hassle of finding and paying for the perfect home?
Buying a home is an investment. There are disadvantages, but there aren’t many. You have to mow your own lawn, or pay someone else to do it for you. You have to handle snow removal and utility costs. You’re also responsible for repairs and maintenance.
On the other hand, your monthly mortgage payment is actually helping you. A renter is throwing money down the drain; there’s never any return for what they’re paying. They can rent the same apartment for 20 years, and they still won’t have anything to show for it. If you buy a home, you not only get the home itself, you get equity.
Equity is the total worth, or market value, of your home minus what you owe on your mortgage. For example, if you buy your home for $220,000 and take out a loan for $200,000 to pay for it, you start with no equity. Five years later, you’ve paid $40,000 towards what you owe. Your home value has also gone up from $220,000 to $230,000 (difference of $10,000). Added together, you now have $50,000 worth of equity. Equity can be borrowed, used for home repair or remodeling loans or for other expenses. It can also be used for a reverse mortgage. If you later sell your home for a less expensive property, you have “earned” the difference between the two homes.
Buying a home is less expensive than renting. You might be surprised by how much home you can afford. An easy way to get a rough estimate of this is to multiply your current rent payments by 200. You could buy a home at that price for the same monthly payment. If your rent is $900, you could buy a home worth $180,000. Obviously, this depends on your income and credit rating, but this quick exercise will give you an idea. Remember that the home you can get for this price is probably considerably bigger than your apartment is now.
Another bonus to buying a home is that there are no unpleasant landlords or building managers to deal with. If you keep up on your payments, you can’t be forced to leave your property. It’s yours.
As with any purchase, there’s always a risk. More times than not, though, buying a home is going to pay off. Don’t spend your life renting; you’ll be missing out on one of the best parts of life: owning your own little place in the world.
Tips for Choosing the Best Retirement Place for You
Many people spend many hours every day throughout their working lives thinking and dreaming about their retirement and where exactly they can retire or where they want to retire. Making this decision can be even more difficult than just choosing the right home because for many people it will be the final place they may live. Here are some tips to make choosing the best retirement place easier for you and everyone. This way you can enjoy your future and have peace of mind.
Ask your Syracuse real estate agent for advice
Real estate agents know the places for retirement that are good locations and do not cost as much and they also know the places that cost more. They are a great resource in helping you decide which retirement place is the best for you.
Cost of living
Depending on where you want to live, depends on the cost of living there will be. Moving to Hawaii may be more expensive than moving to California or Kansas. This will determine how much you need to save or how much your retirement covers.
Low Taxes
Also, depending on where you choose to retire will depend on the property taxes you will have. It is important to research all your property tax options and see which places have low tax options that will fit your budget.
Healthcare Facilities
It is important to pick places with healthcare facilities that meet your needs or will meet your needs in the future. As you get older, your health will become more of a concern so it is important to take this into consideration when choosing a place to retire.
Close to family
When people retire, it is a major consideration for many people to want to be close to family members and friends. It is important to think about this will planning a place to retire.
These tips and advice will help you decide on and pick the best place to retire for you and your loved ones. This way your real estate agent can help you pick the best place for you based on your needs. Then you can enjoy retirement and peace of mind long into the future.
Buying on a Budget
Saving up for a down payment is hard. With the new FHA regulations, if your credit score is below 580, you need to have at least 10% of the purchase price of the home set aside before you’ll qualify for a loan. Even if you do have good credit, you still need at least 3.5%. Depending on the home you’re thinking about buying, that could still be close to $7,000. Not exactly pocket change, for most people anyway. If you don’t want to pay for costly PMI (Private Mortgage Insurance), you need 20% down.
If you’re struggling to find the extra money to set aside for a down payment, you’re not alone. A lot of buyers, especially first time buyers, have a hard time finding the extra money in their budgets. There are, fortunately, some quick and easy steps you can take to make it easier to save the amount you need.
- Set aside your tax return. If you’re lucky enough to get a decent amount back, have it automatically deposited into a savings account. Don’t start making plans for the money; it’ll make it harder to leave it alone. Let it sit and collect interest, and you might be several thousand dollars closer to your goal without even touching your current budget.
- Use a change jar. Empty out your pockets, purse or wallet every night when you get home. When the jar is full, put the money into your savings account. It’s surprising how quickly a handful of change here or there can turn into some serious cash in a month or two.
- Ask about automatic deposits for your paycheck. Most employers offer this plan, and banks can take out a percentage or set dollar amount every week, and put it right into your savings account. You won’t have to do anything once it’s set up, and the money will be set aside well before you even see it. Even $30 a week can add up; over a year, you’ll have an extra $1,560 in your account.
- Rework your budget. Or, if you don’t have a budget, now’s the time to make one. Figure out how much you earn in a month, and subtract any necessities (rent, utilities, vehicle expenses, credit card payments, ect.). Look at what’s left. How far can you make that amount stretch? What are you currently paying for that you don’t really need? Can you use coupons to save money on your grocery expenses? Do you need your daily latte fix, or can it be a special treat? If you can find a way to cut $25 from your expenses each week, that’s an extra $1,300 a year towards your down payment.
Saving up for a down payment isn’t impossible. It might take a year or two of concentrated saving, but you’re building a habit you’ll thank yourself for later on. Keep in mind that you’ll end up needing more than just the initial down payment amount; keep some money set aside for a couple mortgage payments (as a back-up), closing costs, and as actual savings.