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Posts Tagged ‘buying’

Home buying can be a long and tiring process.

It can be stressful physically, mentally and emotionally.  But once you step into a house that is ALL yours, you realize that it was definitely WORTH the strain.  Here are 10 things that you can keep in mind to help make sure you have all your hair by the end of the process.

1. Get your finances in order
“The seller wants to know that if they do accept the offer, that barring catastrophic title issues or inspection issues, the deal is going to go through,” said Gary Dwyer, broker-owner of Buyer Agents of Boston. Another expert recommends having a full pre-approval within the past 30 days: “Six months is no good anymore, because the rules keep changing.”

2. Know your timeframe
“As a shorter-term buyer, you might consider whether the place is a good investment, and if it’s the kind of property that’s going to be attractive for the next buyer…A house near train tracks, for instance, is probably not what most people are looking for. But for someone who’s planning to stay longer, a good school system or larger lot size might make up for the trains thundering past.”

3. Investigate market conditions
One of the benefits of working with a REALTOR® is that they will have an idea of this, and if not they have the tools to do the research.  Your REALTOR® will investigate what comparable properties have sold for over the past three to six months.

4. Search and buy within your means
“If the housing crisis has taught us anything, it’s that buying with the expectation that prices will continuously go up — and that if you can eke out the payments each month, you’ll be in a good spot in the long run — isn’t such a good idea.”

5. If you’re waiting for prices to go lower, think again
Real estate is continually changing.  There are many people waiting for prices to continue to drop, but they may be missing out on their dream home.

6. Don’t get too sucked in by appearances
Buyers should keep in mind that many sellers will try to present their homes in the best possible light. Don’t count on items that are in the house when shown to be there after you have purchased the home.  Many times a REALTOR® will have the home staged.  In that case, the “stuff” will be taken out when the sellers leave.

7. Have questions prepared
Be ready to answer questions regarding age of the roof, heating system, hot water heater, windows, etc.  Also be prepared to answer, if the basement has taken water in the time the seller has been there, if there’s a sump pump; and what utilities and homeowner insurance generally cost. If there’s been recent renovation work, buyers should find out if all building permits have been signed off, and if all of the contractors and sub-contractors have been paid in full. If there’s a pool, buyers should ask when the last inspection was done to check the back flow preventer.

8. If you’re thinking of buying a brand new house…
If buying a new house, take into consideration that no one has lived in the home to “test it out”.  If someone has lived in the house, they have been there to know if there is water that comes in the basement when it rains or if there are drafts in the house.

9. If you’re buying a condo, know the rules
Lenders have become more strict in this market.  Some would-be buyers have been turned away from getting financing.  Many lenders want buildings to be at least 50% owner-occupied.

10. Think about a home’s intrinsic value
Is this is an investment decision, consumption decision or both?  Think to yourself “Is this a house where I can see myself raising a family” or “Is this location good for me and my interests”.

To talk with a Prudential Vision Properties agent today, call 573.449.6200 or email info@PrudentialVision.com.

By: Karen Bataille

With spring in the air, the exterior of a home becomes even more important when putting your house on the market because buyers now will spend more time outside looking at your property and envisioning what their summer barbeques and family playtime will look like.

The addition of any amount of usable real estate to a property increases value. Customized decks and personalized outdoor living areas are a hot trend in home improvement upgrades, and a great-looking deck may entice more people to come see your home.

Building or updating an existing deck isn’t simply a great investment; it also provides opportunities to personalize your backyard and customize the look to your taste. And with many families staying home this summer to save money, why not think about creating the perfect location for entertaining?

Deck experts agree that multi-level decks are the most popular now. These are a series of decks connected by stairways or walkways, which are aesthetically pleasing and can be used for different purposes. One level can be used to catch the sun, one level can be positioned for shade and another can be set close to the house for entertaining and barbequing.

Wood decks have always been the most popular, but caring for them is tough. They will rot over time, are subject to insect infestation and require a great deal of maintenance to keep the wood from fading. Accordingly, people are embracing composite materials for their decks, which cost significantly more but will last longer with less maintenance.

For those homes that already have a deck, it’s important to make sure that it’s still in good shape and adds to the attractiveness of a property. You can change your deck’s appearance with interesting balusters to match other decorative accents on your house or in your yard and really add unique touches to make the deck a personal haven. Meanwhile, railings offer a good opportunity to pull in color and ornamental detail that complements the house.

By designing your deck with accents, lights and unique accessories, you can transform your backyard into an outdoor retreat one will never want to leave. Whether you’re catching up with friends over a grilled dinner in the evening or are curled up with a book in a lounge chair on a sunny afternoon, a deck is the perfect place to be.

Karen Bataille can be reached at 573.808.4480. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

October 27, 2009 — Realty Times Feature Article by Bob Hunt

The clock is ticking. Time is running out. To be exact, time runs out midnight, November 30, 2009. Many readers will know what I am referring to. Under the American Recovery and Reinvestment Act of 2009, November 30 is the last day for a home purchased by a first-time home buyer to qualify for the $8,000 tax credit. The purchase must be closed and title transferred by that date. It will not be sufficient simply to be under contract or in escrow.

By way of a brief refresher:

1. The tax credit is for first-time home buyers only. For the program, the IRS defines a first-time home buyer as someone who has not owned a principal residence for the past three years.
2. The credit does not have to be repaid.
3. The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.
4. The credit is available for homes purchased (closed) on or after January 1, 2009 and before December 1, 2009.
5. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
6. The credit can be taken for either 2008 or 2009 taxes. In the former case, an amended return can be filed.

By all accounts the program has been extremely popular – which is to say, successful. The National Association of Realtors® (NAR) estimated that, by September, about 1.1 million first time home buyers had used the program; and another 700,000 are expected to do so. Already, the Treasury Department has reported nearly 315,000 people have claimed the tax credit after filing an amended 2008 return.

As enacted, the program is set to expire at the end of November. A number of bills have been introduced to extend and/or expand it. Representative Eddie Johnson (D-Texas) introduced a bill to extend the program through 2010. Another would also expand it to all home buyers. In the Senate, a bill co-sponsored by Johnny Isakson (R-Georgia) and Chris Dodd (D-Conn.) would expand the tax credit to $15,000 and make it available to any buyer regardless of income.

One would think that at least the modest proposal for an extension would be a no-brainer. It is a government program that is working, for goodness sakes. But even that legislation is in doubt. Two obstacles are cited. One is the cost. Extending this program would result in reduced future revenues. The second problem is that such a bill will have a hard time receiving any attention while the Congress is – for the next foreseeable months – focused on considerably higher profile items such as health-care and Afghanistan.

The first so-called problem seems just crazy. Suppose an extension generated an extra 1 million sales. That would result in $8 billion in unrealized tax revenues. Now that is a lot of money; but it is chump change compared to the amounts that have been lavished on financial firms and auto makers, with yet to be determined beneficial effects. The tax credit program only costs money if it works. Its cost is proportional to its success. If it didn’t work at all, it wouldn’t cost a dime. Imagine that for a government program.

The second problem is realistic. There’s a lot of heavy-duty stuff going on. But, it would seem a simple extension of the program could be achieved with very little ado and virtually no distractions from the “big issues.”

Meanwhile, what should interested parties do?

1. If you are a first-time home buyer, you had better get off the dime. There’s certainly no guarantee the program will be extended.
2. If you are a real estate agent, pass #1 along to every potential first-time buyer that you know.
3. Whether you are a Realtor® or not, if you believe in extending the program, let your representatives know.
4. If you are a member of the Realtor® organization, respond to NAR’s call for action, supporting its lobbying efforts.

For more information, call Prudential Vision Properties at 573-449-6200 to speak with a real estate expert without any obligation or cost. You can also email your questions to info@PrudentialVision.com (email responses usually come back within the hour)

All offers to purchase must be reduced to writing. Verbal offers to a seller or the selling agent have no credibility and are not binding.

Your sales professional will use standard contract forms approved by the real estate commission for specific use. Your offer should be precise regarding terms, dates, and special requests. Since your sales professional is not licensed to practice law, only factual business details may be added. You may request that your offer be examined by your attorney.

All buyers should sign the initial offer. Your sales professional will take or fax the offer to the listing agent who will present it to the seller. The selling agent may be present at the time the offer is presented. Most times seller/agent location or schedules prevent this.

The listing agent will present the offer to the seller along with written proof of the buyer’s financial qualification. The seller will weigh the merits of the offer and the buyer, assess the bottom line, and make a decision. The seller can accept the contract ‘as is,’ reject the contract, or make a counter offer.

If the offer is accepted, all sellers should sign the contract and an effective contract date is set. If the contract is rejected, no further action is required except informing the selling agent.

If the offer is countered, the seller will change the terms that are unacceptable, initial all changes, and sign the contract. The countered contract is then delivered either in person or via fax to the selling agent for presentation to the buyer. The buyer can accept, reject, or make another counter offer. The offer does not become a binding contract until all parties have signed and all changes have been initialed by all parties.

For more information, call Prudential Vision Properties at 573-449-6200 to speak with a real estate expert without any obligation or cost. You can also email your questions to info@PrudentialVision.com (email responses usually come back within the hour)

Learn more about making the initial offer.

To reduce the risk of losing money, lenders select well-qualified buyers with a strong credit history, low income-to-debt ratio, and income stability.

Loan programs that help lenders reduce their risk are 80/10/10 or 80/15/5 loans. These combine a first mortgage and a second mortgage to spread the risk between two lenders. The numbers represent the first loan percentage, second loan percentage, and the down payment.

Here’s how it works. The first lender offers a mortgage for 80 percent of the value. Another lender offers a second mortgage for 10 percent of the value. The borrower puts down 10 percent. With 80/15/5, the second lender offers 15 percent and the buyer puts down 5 percent.

With only 80 percent of the loan invested, 80/10/10 and 80/15/5 loans reduce the first lender’s risk. The buyer makes a payment to the first lender and a second payment to the second lender.

Since neither lender lends more than 80 percent of the value, private mortgage insurance (PMI) is not required. PMI is only necessary when a lender lends more than 80 percent of the value. No private mortgage insurance means a lower monthly payment.

Ask your sales professional about 80/10/10 and 80/15/5 loan programs.

For more information, call Prudential Vision Properties at 573-449-6200 to speak with a real estate expert without any obligation or cost. You can also email your questions to info@PrudentialVision.com (email responses usually come back within the hour)