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Posts Tagged ‘real estate’

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.

REAL ESTATE!

Single Women Focusing On Real Estate

July 15, 2011 — Realty Times Feature Article by Phoebe Chongchua

In 2010, unmarried women made up 20 percent of all home buyers, according to the National Association of Realtors. That figure is higher than the 12 percent of single men who purchased homes during the same year.

It’s unclear exactly why the discrepancy between single men and women. However, some experts contend that a home of their own and a sense of belonging are two important factors that cause single women to focus and buy real estate.

And those experts are right. The Joint Center for Housing Studies reports that the three main reasons that are driving single women to buy homes now are: relocation for job or family; a larger space; and to have a home of their own (nesting).

The new trend of female buyers is causing builders to add some extra features geared toward attracting single women. New home construction is featuring gourmet kitchens, more security features, and yards that require little or no maintenance.

Of course, the other compelling reason for anyone, including single women, to buy a home, is the historically low interest rates.

Experts understand that buyers are more educated than ever before. They’ve studied the market and generally have a good idea of the type of home and neighborhood they want.

So, what are single women buyers looking for? It’s not solely location that seduces them. Single women buyers want a great location, good price, a property that’s in good condition, and a home that is rentable. It doesn’t have to be new, but it needs to have been given some TLC by the owner.

They want a good price. They’re looking for a price that won’t stop them from enjoying their single lifestyle. Experts recommend that a monthly mortgage should not exceed 28 percent of a borrower’s pre-tax monthly income.

Another interesting point, is that single women buyers are from all different age groups and phases of life. Some are just out of college and pre-marriage, others are divorced, widowed, or never married, and still others have grown kids who’ve left the home (thus a downsize).

That causes this group of homebuyers to pay careful attention to things like rental properties in the neighborhood, proximity to retail and entertainment, and, the all-important concern, would the mortgage payment equal the monthly rent that could be collected on the home?

Single women buyers know that their circumstances may change so they want to be prepared. Making sure that the home can be rented out is often a key interest to this group.

Finally, even though single women are buying homes on their own doesn’t mean that they’ll shop alone. They may visit the property with friends, family members, colleagues, and of course, their agent. It’s likely they’re very savvy, so they’ll be stopping by the home, not once, but probably several times and at different times of the day to get a feel for the home’s exposure to the sun.

As single women focus on real estate, it’s likely we’ll see more builders and sellers catering to the needs of this buying group–and this group is all about getting exactly what they want.

By Monique de la Torre

Residential real estate is gaining stability in concert with the recovering U.S. economy. Consumers, drawn by one of the most attractive buyers’ markets on record marked by historically low interest rates and lower home prices in many areas, are returning to the market to move up, trade down, improve location and otherwise enhance their share of the American Dream.

When it comes to home buying, the ideal situation would be to find a new home, just as you receive an offer on your existing home. You would then be able to close concurrently and move into your new home a few days prior to closing on your previous home. This does happen more often than not, but anyone looking to buy a new home needs to consider all the possible scenarios. 

Should you buy or sell first? There are many schools of thought on this subject.  Ultimately, it depends on you and your situation. For instance, can you afford to pay two mortgages in the event your previous home does not sell by the time you move? Would you consider a bridge loan (a short-term, high-interest loan that lets you borrow against the value of your old home to covers the bills until you secure the new, larger loan)? Are you willing to move twice to find the home of your dreams if you sell first and can’t find the dream home fast enough? 

This is where the advice of a real estate sales professional is invaluable. Real estate sales professionals know the current market conditions. They are trained and experienced in working with home buyers and sellers to determine an ideal time to buy and sell.

It is generally less stressful to sell your home first, because you won’t have to worry about owning two homes at one time. The market will dictate how long it will take for your home to sell, as will the property’s location and the time of year. As a rule of thumb, it is a good idea to put your home of the market as far in advance as possible when purchasing a new one. But, since interest rates are low and confidence is returning to the market, there’s a good change your home will sell faster if priced properly. (Again, your real estate professional’s advice is critically important here.) In that case, you may want to purchase a new home first.

What if your present home sells before you find a new one, putting pressure on you to find the right house more quickly? You may then decide to make an interim move or request to rent back your home for a specified amount of time as you continue to look for your new home. Those may be worthwhile options if you have your heart set on a specific location or type of home or if you are purchasing a home that is under construction.

If you buy a home before selling your present home, you may end up with two mortgages. Under those circumstances, you may be able to apply for a bridge loan to assist you in making two mortgage payments until you sell your first home. Your real estate sales professional can assist you in finding a lender. 

So should you buy or sell first? This is a challenging question regardless of real estate cycles, yet your own circumstances and a knowledgeable real estate professional will help you make the right decision.

Monique de la Torre can be reached at 573-825-2843.  Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial 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.