5 Traps To Avoid When Getting A Mortgage.
This is Super Important for All Home Buyers!!!
Heeding This Advice Can Mean The Difference Between Approval and
Rejection!
Congratulations!
You have begun the house-hunting process! Soon, you will find
the house of your dreams. You will make a bid, and have it accepted
by the seller. You’ll have all the inspections done on the
house. At some point, you’ll have signed, and re-signed,
and initialed, and re-initialed all the paperwork.
Then, you will go through the mortgage application process. You
will gather all the information the loan originator wants. You’ll
satisfactorily explain all the little glitches and questions on
your credit report. It looks as if you’ll qualify. Before
you know it, the closing will only be weeks away, and you will
be feeling pretty good.
It’s smooth sailing from there, right? Probably. However,
more than one buyer has had the wind taken out of his sails at
this point in a real estate transaction. This is not a time for
alarm, but just a period for a little extra caution. The span
between the day you receive the approval of your mortgage from
the originator, and the moment they actually give you the money,
is a tricky one!!! Listed here are five circumstances that can
affect your ability to close on your loan in a timely fashion.
Being aware of these situations can mean the difference between
getting your loan or having your approval rescinded.
One more reason to heed these warnings is to make certain you,
as the buyer, are not cited for default! Many purchase contracts
contain the stipulation that the buyer is in default if he or
she does anything intentionally that causes the mortgage to be
denied. Default by the purchaser means that the buyer not only
does not get the house, but also is liable for damages suffered
by the seller up $5,000 by Washington State Law or Earnest money
forfeited IF your agent writes purchase & sale to protect
you as buyer. Jeff Maurice has over 13 years experience represented
buyer's interests ONLY in over 500+ purchases for military families
Prior to Joining Re/Max Parkside Affiliates Olympia WA as there
Military Relocation Specialist & Consultant .
While Waiting For Your Mortgage To Be Approved…
Do not take on new debt. The temptation is strong. There are
so many big purchases people potentially want to make in connection
with a move. They want new appliances, window treatments, and
furniture, for example. When you add to this the fact that, today,
everyone offers easy terms and no money down …well, why
not just do it? The answer is that you will change what the industry
calls your ‘back-end ratios’ (the relationship of
your income to your debt).
Do not change jobs. If at all possible, try not
to make a career move during the time between your mortgage application
and the closing on the home you are purchasing. “But,”
you ask, “what if it is a BETTER job, for MORE money, in
a DIFFERENT field?” Still, try to wait until AFTER closing.
One of the factors mortgage companies consider is length of present
employment; they are partial to stability. At the very least,
changing jobs initiates the need for more paperwork, and maybe
a delay in closing. For Active Duty Military Do Not Put Your Retirement
Papers in Prior to Buying and Closing on Your Retirement Home.
Rich retired after 23 years in Army Aviation so Call to find out
how to do the Right Way!!!
Do not pack too soon. Well, go ahead and pack
your clothes and pictures. However, do not pack away your bank
statements, tax returns, or other important paperwork. Most especially,
do not pack away your checkbook! More than one buyer has had closing
delayed while a friend or relative hurried over with additional
funds because the checkbook was in the moving van.
Do NOT " Lease or Buy a New Car"! This
should go under the general heading of “no new debt”.
It is highlighted here because, for some strange reason, many
buyers do run right out and lease a new car during the intervening
time between mortgage application and closing! As with any debt,
this will change your ‘back-end ratios’, and may cause
you not to qualify for your mortgage.
In short, do nothing that negatively impacts your ability to
qualify for your mortgage loan, or initiates a new round of paperwork.
No one is saying, flat out, that bad things will necessarily
follow if you do any of the above. They are offered as cautions.
Many buyers seem to think of the mortgage application procedure
as a static entity. That is, they view the proceedings as a snap
shot of their financial lives at a given moment in time. It is
not. It is an on-going process that can take into account everything
you do… right up until the day of closing.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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Biggest Mistakes That Cost Sellers Money:
What NOT To Say To Buyers!
The door bell rings, you grasp the knob, and throw one last glance
around. As your daughter quickly puts the vacuum cleaner away,
you open the door with a big smile. There stands an agent, with
buyers.
“Hi! ... How are you?... Come In."
Those are probably the last three unsolicited comments that should
pass your lips for the remainder of the visit. The real estate
field is littered with stories of potential sales that were killed
by sellers who inadvertently uttered the wrong thing.
Before continuing, you should understand that the types of 'better
left unsaid' things discussed here have nothing to do with the
"Seller's Disclosure" Addendum, or hiding anything from
a potential buyer. To the contrary, all of the suggested "DON'T
SAY IT!" topics presented here are based on personal preferences.
Being human, sellers often find it difficult, if not impossible,
to keep from offering opinions or information that they think
makes them appear “credible” to the buyer. Without
knowing the life's experiences and propensities of each buyer
you see, how can you keep from opening your mouth and inserting
your foot?
Please don’t talk about...
1. How many kids are or are not in the area.
(Even if the buyer has children, you have no way of knowing whether
or not they want gangs of them banging down their door on Halloween.)
2. The huge stone birdbath in the backyard that
is visited by HUNDREDS of birds each year. (How could you know
the spouse is deathly afraid of birds?)
3. How great your church is. (They might be of
different faith)
4. How quiet the neighborhood is. (They may want
a more social atmosphere, and look forward to making new friends.)
5. The 'newness' of items in the home. (‘New’
is most definitely a relatively term! What you consider 'new’
may be ‘old’ to others. For example, an item that
is two years-old may be 'new' to someone who has lived in the
house for 15 years, but may be ‘old’ to a buyer who
thinks of ‘new’ as anything in place for less than
6 months.)
6. Information on existing warranties (They may
expire before the new owners close on the house, or they may not
non- transferable.)
7. How many 'showings' you’ve had. (Buyers
could interpret this as "No one else wanted the home, why
do I? Or “I wonder what’s wrong with this house?”)
Please do not OFFER the following statements as the reason
you are selling:
1. The death of a family member. (Some people
have a phobia about moving into home where someone died.)
2. How you’ve outgrown the house. (If buyers
have the same number in their family, they may have second thoughts
about their need for such a large home.)
3. How the home is too small for you. (Your comment
may give them the push to look for more expensive (bigger) homes.)
4. Your recent divorce. (Potential buyers may
be having marital problems. This could easily turn them off.)
5. That you bought another home. (If a buyer
knows there is urgency, this can be used against you in negotiating
)
If you get the distinctive impression that everything you say
to a potential buyer could get you into trouble down the road
… then you have correctly interpreted this article. Since
you are under contract with a real estate agency, the best course
is to make yourself scarce after the greeting. In fact, a good
course of action might be to say.
“Please take your time viewing my home. And if I do not
see you before you leave, thank you for coming. You’ll have
to excuse me, but: (important phone call, helping kids with project,
deadline at work, etc.)"
This extricates you from a potential “foot-in-mouth”
encounter later, and does not make you appear to be avoiding the
buyers' questions.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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What Is A Credit Score And What Does
It Mean?
With the advent of computers, and especially of the Internet,
borrowers no longer hear what they sometimes did a generation
ago, "Your mortgage approval is being held up because it
takes a few weeks to get your out-of-state credit report."
These days, some lenders even boast that they can approve mortgage
applications in as little as 15 minutes.
All sorts of programs have been developed to use Internet resources
and to replace human decisions with computerized judgments. One
widely used aid nowadays is a system of credit scoring. Various
factors are evaluated automatically (as they have been for some
time by the issuers of credit cards) and the borrower ends up
with a numerical score, with 900 the highest possible rating.
The use of such scoring not only shortens the time needed for
mortgage approval, but also reduces the lender's cost for the
work, which should eventually be reflected in lower application
fees. In addition, fair housing experts feel it reduces the danger
that a loan officer might be influenced by racial bias.
Critics say that the process doesn't allow for extenuating circumstances,
and that applicants who score below 620 may be unfairly refused
lending. In most cases, human underwriters review would be mortgage
borrowers who score between 620 and 660 individually. In addition,
some mortgage lenders will proceed to offer mortgage loans with
higher interest rates to higher-risk and "sub-prime"
homebuyers.
There's nothing new about much of the advice on how to keep one's
credit score high when anticipating a mortgage application.
"This is no time to go out and buy a car on credit"
has always been useful advice. But applicants may not realize
their numerical score goes down if they simply apply for new credit
cards, run up their present cards, or keep many credit cards on
which they don't carry balances. Even unused credit cards will
impact a credit score. To get them off the record, anything more
than a couple of cards should be cut up and officially returned
to the card companies.
As always, the amount of total debt presently carried is of prime
importance, whether a human or a computer is making the decision.
And as always, the borrower's outstanding judgments will almost
certainly need to be paid off before a mortgage loan is granted.
Paying them off well in advance, however, can save points on a
credit score.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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Ten Secrets That Save Money When Shopping
For A Loan!
DO NOT SIGN FOR A MORTGAGE BEFORE YOU READ THIS!
Some of the biggest misconceptions held by buyers relate to the
belief that all lenders, and all mortgages, are pretty much the
same. Also, buyers tend to think that the mortgage process doesn’t
start until AFTER you find the house you want, and negotiate a
successful offer. These misunderstandings are not surprising when
you realize that the vast majority only experiences the mortgage
process once or twice in their lives.
Unfortunately, in this situation, Ignorance is certainly NOT
bliss! If you fail to ask the appropriate questions of your potential
lender, you may do serious damage to both your negotiating position
and your pocketbook.
Questions You should Ask EVERY Lender BEFORE you shop
for a house.
1. Will you fully pre-approve my loan? This
is very important. Negotiating is much easier for the buyer when
the seller KNOWS, ahead of time, that you will get your mortgage.
2. How quickly can my loan go through? Again,
if the seller knows you can close quickly, this may sway the negotiations
in your favor. For VA Loan Rich expects 7 to 10 Business Days
from Acceptance of Offer to Close & Record. For Conventional
Loans 5 to 7 Business days from Acceptance of Offer to Close and
Record. This Time Line normally Requires Local Lenders. Can take
easily up 8 times longer with Out of State Lenders. Ask Your Realtor
or Title Companies what they are seeing for Time to Closing with
Lender Your thinking of using? Most Military Only are reimbursed
up 10 days by government and it's only part of true cost to pay
lodging and eat out. So Speed and Hassle Free Fast Closings are
a Important Considerations. A Great Buyer's Agent will know who
will save You Time & Money.
3. Do you carry Adjustable Rate Mortgages? The
lower the rate (Adjustable Rate Mortgages have initial rates lower
than fixed mortgages) the more you can qualify for. While you
may not opt for this mortgage in the end, knowing it is available
is like putting an extra ‘line of credit’ into your
pocket. If You only plan keep home for 3 to 5 Years many Arms
have up to 5 or so Years at Fixed Rate. Make sure there are No
Early Pay Off Penalties.
4. Do you have Convertible Loans, or loans with
a conversion option? If you do find the need to use the Adjustable
Rate Mortgage, can you change it to a fixed rate in the future?
At what cost?
5. Do you carry fixed-rate VA or Conventional
Mortgages with 30-yr. terms? With 15 yr. terms? This is “vanilla”
in the mortgage world. However, comparison shopping of items like
interest rates, application fees, points, and other lender closing
costs can yield you substantial savings. Ask Your Agent for their
advice.
6. Are you an FHA DIRECT lender? If this is an
option (and many first-time buyers go FHA), then this is a good
question to ask. Sometimes the processing time can really be shortened
with a direct lender. Again, this is a good negotiating tool,
since it may get you to the closing sooner.
7. Are you a VA DIRECT lender? For those who
qualify, a VA loan can be a wonderful option. Again, dealing with
someone who is a Direct Lender for this type of loan can really
streamline the approval process, and help you with the seller.
Means the lender is a LAPP Approved VA Lender and this cut about
6 to 8 weeks off closing Time for Your Loan.
8. Do your mortgages carry a pre-payment penalty?
Pre-payment penalties, which had all but disappeared from the
industry, have recently reared their ugly heads again! ASK! And
make certain you fully understand the circumstances under which
you may trigger that penalty.
9. Are you a portfolio lender? Some lenders keep
the loans they make “in-house”, and some sell the
loans to other institutions. While it does not impact you (or
the terms and conditions of your loan) if it is sold, there is
a good reason for asking this question. Portfolio lenders often
have more leeway during the approval process, and can tolerate
past credit problems that others may not want. VA Loans usually
are NEVER Loans Not Sold on Secondary Market. They Usually are
sold to other Financial Institutes many Times within weeks after
Your Loan Closes. This is Totally NORMAL. Your Payment for Priciple
& Interest is set for life loan on Fixed VA Loan. Adjustable
VA when availiable are set Up by Adjustable Terms. Loans are sold
regularly by Lenders so they can make more loans. Nothing to worry
about. Ask Lender to Explain in more detail.
10. Are your fees negotiable? Let the lender
know you are comparison-shopping. Politely asked, this question
will appear to be just one more factor in your decision-making
process. If the lender really wants your business, you may be
surprised by the answer! In any case, if you don’t ask,
you can be certain that no one is going to just offer to drop
his or her fees. VA have Set 1% Origination Fee But check total
closing cost & MAKE SURE Pre-Paid are quoted the same. Not
under stated! There is a Big difference between different Bank
& Lenders. A Sharp Realtor can look at Truth in Lending Form
and tell you which is best fro You. Always Ask Your Realtor for
help reading these. A good agent will spot Junk Fees and especially
Higher Discount Fees for Interest Rate the loan be at. This can
be both Big savings Up Front and Bigger Savings over Life of Loan
when get lower interest rate at same or lower closing costs.
Taking a few minutes to ask these questions of a number of lenders
can pay off big time. These benefits may come in the form of a
more favorable negotiating position for you with the seller, and/or
as a direct saving in relation to your loan. In either case, doing
your groundwork with lenders is a smart and important way to begin
your home buying process. Rich recommends You ask for a "Fully
Approved Pre-Approval" from a Lender with NO Loan Application
Fees Up Front. If won't do it call Jeff Maurice to get a Competitive
Lender that will. If lender want a Fees Up Front (Loan Application
Fee) they may well just want to Lock You into Using Only them
for Your Loan. Always Ask For Truth in Lending Statement. Interest
goes Up & Down slightly Daily like stock market. You can only
lock Your Interest Rate Normally after You have a Accepted Offer
on a Home or property. Remember when buying "Any Real Estate"
there are NO DUMB Questions? Just Questions that need a honest
straight foreward and knowledgable answer.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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You Need To Discover
Real Estate Investing
Today most people have become aware that there is more to investing
than savings accounts and stocks. Many people now take advantage
of diversified investments such as mutual funds and we hear more
and more stories about how the average trader is now making their
own stock picks, often through on-line trading systems. The investment
world is changing and the knowledge that people have about investing
is on the rise.
However, one proven area of wealth creation is still very much
uncovered. Over the years, real estate has been at the foundation
of many fortunes and great wealth building. People who have discovered
real estate investing have uncovered the power of the investing
formula that sees investors making a small down payment and then
having tenants pay off their investment for them. These investors
have discovered that by investing in real estate they can be rewarded
in three ways:
1. Immediate cash flow from the investment
is available
2. Tenants pay off the bulk of the investment
over time
3. Real estate appreciates and rents increase,
thereby allowing their investment to increase in value while their
cash flow from the investment increases.
The mathematics are simple. Just purchase one average property
in a strong or emerging market and your have an investment that
makes a meaningful contribution to your investment portfolio.
The initial investment can be as little as $5,000 and the gains
can be substantial.
Accumulate 7 of these properties over a period of years and you
may be able to create an income you may never outlive. In fact,
some investors find that by investing in a well-diversified selection
of residential real estate properties they can actually create
an income at retirement that is larger than when they were active
in the workforce!
Real estate provides one of the few investing styles in which
someone else pays off the lion’s share of your investment.
It is a style of investment that gives you title to a physical
asset and it has proven its role in wealth building strategies
over centuries, not years or decades. Today is a good time to
discover the power of real estate investing!
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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How To Create an Income You May Never
Outlive
When we invest in stocks, we usually start by looking for equities
with strong growth prospects. Capital gains are the apple of our
eye. As we grow older our focus usually shifts to dividend stocks.
Fixed income securities become more appealing because they throw
off a regular income, which is what we look for in retirement.
Real estate offers the best of both worlds. Investing early in
real estate provides for real capital appreciation, particularly
because the tenant pays off most of the investment, but you own
all of it. And, as you hold your real estate investment over time,
its cash flow potential increases. The reason for this is that
the rents usually increase over time, while the mortgage payments
go increasingly toward paying off the principal. When the mortgage
is fully paid off, the bulk of the rent then goes directly to
the owner in the form of income cash flow.
Usually our clients set up mortgages that range from 15 to 25
years. If a person is buying properties at age 45, by the time
they reach retirement age the mortgage will be paid off and they
will have a steady income from the property - maybe for as long
as they live. If they have used this proven system for real estate
investing, they may have an income that exceeds the income they
had during their working career. And, they always have the option
of selling the property and realizing the gains available to them.
I believe that real estate is a powerful wealth-building tool
because it offers the best of both worlds - strong capital appreciation
potential and a powerful income stream over time that lasts as
long as the investor wants it to.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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How To Accumulate Wealth by Power
of Leverage !
Leverage is the key that unlocks the powerful wealth-building
potential of real estate. This is because real estate investing
only requires you to put down a percentage of the asset's value
- but you still participate in the growth of the entire asset
- magnifying the potential return on your investment.
When the $16,000 is invested in the 4% fixed income product,
it returns $640 in one year. However, when that same $16,000 is
invested as a 20% down payment on an $80,000 property, it earns
$2,400 growth in the first year despite the fact that we are only
assuming the property grows at 3%. That's actual growth on invested
capital of 15%!
Now look at a home purchased with VA funding. Normally You have
Put Zero or Very Little Down. VA has strict requirements that
require that the home being purchased be lived in initially by
the service member. (One year for active duty and two years for
retirees or prior service buyers) Now assume that you get PCS
orders. Many times in some areas, homes have gone Up in Value
during the time you have lived in that house, enough to Re- Finance
your home conventionally, freeing Up your VA for another zero
down home Purchase at the next location So Now your equity is
money You have invested like in the example above. VA is a more
liberal loan which allows You to Purchase about 40% more Purchase
Price than most Conventional Loans. Make sure ANY Conventional
Loan you get allows you to rent house later when PCS or buy another
home for you & your family.
Here's Why Leveraging Works So Well?
Even though we assumed a lower growth rate on the property compared
to the fixed income product, the investor's down payment is rewarded
with the return on the entire property asset value, not just the
return on the $16,000 invested. You might say "Yes, but didn't
that investor have to make mortgage payments?" A legitimate
question. Fortunately, in the case of real estate investing, the
tenant often pays most or all of the mortgage payment. Rents increase
normally annually and more than Property Taxes Go Up. Leverage
is the key to the long-term wealth-building power of real estate.
Leverage lets you participate in 100% of the gain on the overall
growth of the property while only putting up a small percentage
of the value. There are significant tax advantages from your real
estate purchases. Contact your local CPA for details.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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How Choosing the Right Agent Can
Save You Money When Shopping for New Construction
In an earlier report, you learned that most builders’ advertised
sale price already includes a commission for the buyer’s
agent. This means You Pay Your Agent Nothing, But By Washington
State Law You HAVE FULL Representation. An Experienced Buyers
Representative / Agent works Solely for You and Your Interests.
You want an Agent that knows the Market and possesses Great Negotiating
Skills. Your goal is to get the Best Price, Concessions, and Terms
available in current market conditions. WARNING: If you walk into
a sample home yourself (without an agent who represents YOU),
and buy a house, the builder KEEPS all this extra money! ALL Site
Agents are the Builder/Seller Agents and By Washington State Agency
Law can tell You as a Buyer ONLY the Incentive the Builder gives
Their Agents Permission to Offer any Buyer. Also By Washington
State Law ( "The Law of Real Estate Agency" that went
into effect 1 Jan 97 and Chapter 18.85 RCW. ). They REPRESENT
"SELLER", Not Your Interests!!!
The reason for this is simple. Builders need real estate agents
to sell their houses. Since 80% of all people who buy homes use
an agent, no builder in his right mind would try to sell out an
entire sub-division without cooperating with the professional
real estate community. To insure that agents introduce their community
to a qualified buyers, the builders usually offer commissions
at least equal to the ‘going rate’ for that area.
However, since commissions can only be legally paid to a properly
licensed Broker, and NEVER directly to an Agent in the State Washington,
the builder has every right to just keep the extra money and WILL,
if NO Buyer’s Representative is representing you. Also
builders normally never discount off listed sales prices.
Because this adversely effects appraisals and many Past Builders
that did this destroyed Their Real Estate Comps for Their Homes.
They ended Up unable make a reasonable profit and ended up over
time going bankrupt.
If you plan to use Your Own Agent, NEVER register at a Site with
the Builders Agent/Site Reps unless You tell them Name and Company
Your Buyer's Agent is working for. MAKE SURE the Builder Site
Rep/Agent registers them Under YOUR AGENTS Name & Company.
This is Super Important. Don't let them talk You out of this or
try to tell You they can get You a Better Deal. It is simply Not
True !! They are SELLERS Agents, Not Buyer's Agents By Agency
Law in Washington State. Once a couple wanders into a model home
by themselves, and register with the Builder’s Representative,
they will find themselves hard-pressed, later on, to persuade
many builders to pay for their Buyer’s Representative. Always
have your agent take You themselves. If your agent cannot take
you when you want to go, ask them for 10 or so of their business
cards. You will need to give a card to each Site Agent. Then ensure
that the site agent has registered the name of your buyer's representative
that represents you and your interests. DO NOT let them pressure
you into registering with the site agent! YOU THEN WOULD HAVE
NO REPRESENTATION!! You need a "Very Experienced Buyers Representative"
with at least 250 new construction sales as buyers rep if want
get best possible terms. Builders like agents that get homes sold
& closed quickly and know how to make closing go smoothly
for both sides.
Ask agent how many buyers they have sold homes to themselves
as buyers representative? Homes that they were NOT the Listing
Agent of that property? How many years of experience in Real Estate
as a Full Time NOT Part-time Agent? Ask for references you can
talk with. You should find an Experienced Buyer’s Representative
BEFORE you begin looking at new construction. If they have the
experience listed above, they will save you thousands over all
gimmicks and incentives on the complete purchase & financing
of your new home. You want service and honest answers so you and
your family can make the best choice that meets your needs.
Here are some other reasons you should work with a Buyer’s
Representative when purchasing new construction:
SAVE MONEY ON OPTIONS. Many buyers believe the
sale price on a new home, as well as the listed price for options,
are "written in stone". Builders are very unlikely to
give any discount on price but rest is all negotiable. An experienced
Buyer’s Representative knows which items may be open to
negotiation and how get the most. Remenber this all depends on
your area market strength and demand. Most agents do a lot of
listing in their early years and because of that, many think more
as Seller's Agent! Ask the right questions to find out your prospective
agents background and experience level. You should expect great
help before, during and after the sale when You need it! Buyers
Agency for most agents is a total shift in gears of their thought
pattern. Ask the same question in different ways and You will
see how they think. It takes time to acquire the experience &
knowledge to provide Buyer Agency Representation effectively.
Hundreds of dealings with Builders and Sellers as a Buyers Representative
is what You should be looking for.
PROTECT YOURSELF. The standard builder’s
agreement of sale is notoriously one-sided, in favor of the developer.
While some of the terms of the contract may be justified, considering
the risks builders have to take, many of the clauses can be modified
to better protect the buyer. An experienced Buyer’s Representative
will be aware of the clauses that can and should be changed. A
Buyer’s Representative will be acquainted with filling out
and using the right forms in addition to some of builder addendums.
Washington State is a "Consumer Protection State", Over
17 States have adopted Using Washington State NWMLS Forms. The
Forms are used By Most Agents of Northwest Multiple Listing Service
( NWMLS Forms ). It may seem like allot of forms but You want
Your Agent to use All Forms that Best Protect Your Interest as
well as the Builders. Both parties need Equal Representation in
a transaction.
GET ALL THE FACTS. An experienced Buyer’s
Representative will provide you with the Objective Information
you should have regarding the properties and neighborhood of any
house that interests you. To make an educated decision, you need
all the facts concerning the schools, the area, and the comparative
value of the home you are contemplating (not just the ‘good’
stuff the builder supplies).
The bottom line is… when purchasing new construction; many
reasons exist for using your own Buyer’s Representative.
It will usually cost you NO MORE, and you may actually SAVE thousands
of dollars, time, and worry. A really good Buyers Representative
will make the whole process go smoothly. Take the Stress out of
This or Your Next PCS Move. If need help Call Rich!! You have
"No Obligation" and Thru Re/Max Rich can interview and
find You a Experieced Agent in Your area anywhere in USA and 46
Countries that Re/Max has Offices in.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
Neat Homes Sell FASTER and for
MORE MONEY: The BEST and WORST places for Sellers To Hide Things
From Buyers!
Your house is on the market, and you're a motivated owner. Translation:
you REALLY want to sell. Because you have instructed your Realtor
to “Show me the Buyers” you are getting a ton of showings.
Prospective homeowners arrive on your doorstep with a moment’s
notice.
In addition, you are driving your family crazy. You have decreed:
"No dishes in the sink, no crumbs on the kitchen counter,
no dirty clothes on the floor! No one will eat, drink, sleep,
or brush the dog again until this house is sold!"
Take a deep breath, sit down, and relax. While it is true that
‘You don’t get a second chance at a first impression’,
most buyers ARE human and realize that Sellers have to live, too.
Just for the fun if it … and because it might actually
come in handy one day … here are the FIVE places buyers
are LEAST likely to look when viewing a house for the first time.
Therefore, these are the best last minute hiding places:
1. Under the bed. You probably didn’t
need to be told about this hiding place, and you may have trouble
squeezing any more ‘stuff’ under there. What makes
this an ideal place is that it is big, and usually centrally located
in the room. Therefore, clothes, toys, shoes…whatever…
can be flung from all directions with a good chance of finding
their mark. Any last minute items can usually be kicked under
the bed.
2. In the washer & dryer. Buyers rarely,
if ever, open a washer or dryer. These make them ideal last-minute
hideaways for toys, books, and boots, as well as dirty clothes.
When utilizing this hiding place, it is a VERY good idea to tell
the rest of the family. You never can tell when someone will get
ambitious and turn on the dryer, or start to fill the washer.
3. Trunk of your car. This, at first glance,
might seem a little drastic. But, if the Realtor is pulling into
the driveway, and you are standing with two paper bags filled
with household items, the trunk could come in very handy!
4. Refrigerator. Again, while this might appear
far-fetched, buyers will NOT open your refrigerator. This makes
it an ideal place for the last minute stashing of anything that
won’t suffer from being a little cold!
5. Behind the sofa. Another old standby that
could already be seeing some ‘active duty’, the sofa
usually has a wall behind.
The other side of this issue deals with those areas buyers are
MOST likely to inspect during a house tour. Try not to use any
of these locations for your last minute secret hiding places.
1. Oven. Do not store your pots and pans in
the oven. This makes it appear as if you are short on kitchen
space. If possible, the oven should be totally empty, and, of
course, clean.
2. Bedroom closets. One of the things buyers
tend to remember about the houses they see, and to either comment
favorably or unfavorably upon, are the closets. Avoid cramming
the bedroom closets with extras; the more space that shows in
your closets, the better.
3. Kitchen drawers. The same buyers, who would
not dream of opening your refrigerator, will think nothing of
pulling out a drawer. Try to keep kitchen drawers as uncluttered
as possible. If need be, utilize bedroom drawers for all the kitchen
utensils and junk you have to put someplace.
4. Laundry room. A nice, neat laundry room is
often a pleasant surprise in a home, and something that buyers
tend to remember.
5. Kitchen pantry. Like the laundry room, the
kitchen pantry is often the ‘dumping ground’ for all
kinds of odds and ends. The less cluttered the pantry is, the
bigger it looks, and the more buyers will remember it, favorably.
As you can probably tell, the secret to ‘hide & don’t
seek' is to keep those places that are USUALLY used for storage
as clear as possible. This gives the buyer the distinct impression
that he/she will have plenty of room for all the stuff they need
to put somewhere. In order to do this; you may need to move your
items to unusual places that are not normally of concern to a
buyer.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
What Are The Disadvantages of Condominium
Ownership?
For some homebuyers, condominiums are a godsend. They provide
a means of building equity without the hassles of yard work and
other outdoor maintenance projects, as well as many of the indoor
chores and financial responsibilities that single-family homeowners
typically face.
But condo ownership isn't for everyone. And before you sign on
the dotted line and enter into this agreement of communal ownership
-- which is exactly what you're doing when you purchase a condominium
-- you'll need to consider a few factors first. Not to burst your
bubble, of course, but life in a condo brings with it a few hassles
with which single-family homeowners feel grateful they don't have
to contend.
For starters, as we alluded to last week in a related article,
condominium owners share common walls. How many common walls you
share depends upon whether you purchase a flat (meaning you have
a neighbor living either underneath you or above you, as well
as on one or both sides of your unit) or a town home (which you
gives you the reassurance that both upstairs and downstairs are
yours -- although some high-rise-style town homes are built in
a manner in which residents may still have neighbors living either
above or below their own units).
Common walls are reminiscent of apartment life, which is something
that homebuyers often are anxious to flee when they've reached
the life stage at which a home purchase is attainable. If you
have quiet and considerate neighbors, common walls become a non-issue.
But it's a game of Russian roulette when you sign on the dotted
line. You have no idea how considerate those neighbors will be
until you spend your first night in that unit you're considering.
And unfortunately, if your neighbors are obnoxious, you have little
recourse as a condominium owner but to call the police.
Unlike apartment communities, in which renters may often pick
up the phone and call a leasing office or an on-call security
staff to report excessive noise, condominium owners have no such
protection. They're faced with the sticky dilemma of going downstairs,
upstairs or next door and democratically working out the problem
neighbor to neighbor (which, let's face it, isn't easy to muster
up the courage to do -- particularly if you're new to the condominium
community) or calling the police. That's quite a way to introduce
yourself to your new neighbors if they determine who blew the
whistle on their late-night revelries.
Aside from the common wall issue, you'll also need to consider
that if your local real estate market experiences a downturn,
condominiums usually are the first casualties in those sagging
economic times. Condominiums sometimes are pigeonholed into a
"niche" market, and when the real estate market slows
to a trickle, the few transactions taking place usually involve
single-family homes. And of course, during slow periods, asking
prices for single-family homes drop, making it possible for many
aspiring homebuyers who previously thought a condominium was the
maximum they could afford to move up to a single-family home,
instead.
Then, of course, there's the entire issue of the condominium
association. Their effectiveness and cost varies greatly from
property to property. In a single-family home, you'll never be
presented with a sudden fee that you must pay for communal property
repairs. Take the case of a condo owner with whom I recently spoke,
who told me her condo association recently informed her that,
in order to pay for roof repairs to the entire complex -- her
building included -- she and every fellow condominium owner in
her development would have to cough up $650 on the double. That
was in addition to her $120 monthly condo association fees --
and, of course, her mortgage.
A condominium association, in theory, is an excellent insurance
policy for the continued maintenance of your exterior property
-- not to mention a protection for keeping the property values
high. On occasion, however, these associations become quite political,
governing everything from the Christmas lights you string on your
porch to whether or not you can keep a 50-pound dog in your unit.
This communal lifestyle holds you accountable to a mini government
of sorts. As an owner, you may, of course, make your views heard
during monthly meetings, but there's no guarantee as to whether
or not you'll be successful and affect change.
If you're informed about all of your obligations as a condominium
owner before you sign the contract and are agreeable to them,
you just may have found yourself the home you've always wanted.
As with every major financial commitment, you'll have to weigh
the pros and cons of the agreement you're preparing to enter.
Perhaps the most important thing to remember as you make your
decision is to take your time. Demand full disclosure of condo
association fees and exactly what they cover. Know up front what
your monthly expenses are expected to be; it can vary considerably
among different condominium developments. Shop around, and get
some perspective on how different properties approach their residents.
Ask your REALTOR® if he or she has sold units in this development
before, and what kind of feedback he/she has gotten from his clients
after they moved in. If your Realtor hasn't conducted a transaction
at this development, ask him/her to call fellow Realtors and find
out if they've sold units at the condominium complex you're eyeing.
First-hand reports are invaluable tools during your home search
process, and you'd be wise to take them to heart.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
Did You Know That You Have the Right
to Remain Silent?
Anything you say, can and will be used against you in the negotiating
process.
You have the right to be represented by your own agent.
As a Seller, try never to talk with Buyers. What You say could
and probable will be used to help Buyers NOT Seller. Should you
choose to waive this right not talk to Buyers and Buyers agent,
You will have No Representation Present . Best just leave house
or go for walk or Ride when agents are showing Your Home. If Your
Agent is acting with Your consent as a "Dual Agent"
will be trying to get the highest and best price for the seller.
By Washington State Agency Law a Dual Agent can do nothing without
Your permission that Lower Sellers Net Proceeds at Closing.
Do you understand these rights as they have been explained to
you, Mr. & Mrs. Buyer?
You have the right to work with an agent trained to be a buyer's
agent: An agent who has the skills to negotiate with the seller
to get the best price and terms for you.
You wouldn't go into a courtroom without a "bar-certified"
attorney, why enter negotiations for the biggest purchase of your
life without a trained specialists working for you?
Homebuyers need to be careful when purchasing there home that
they are getting the full value of having a BUYER'S AGENT on their
side. According to a 1983 Federal Trade Commission study, most
buyers fail to understand that the agent who shows them homes
is actually working on the seller's side. Consequently, buyers
often reveal too much information to the real estate agent that
is showing them homes. Few buyers realize that anything they say
will be told directly to the seller and will be used to help the
seller obtain the maximum price from the buyers.
According to Alice and Denise Fields, authors of Your New Home,
the buyer's best protection is to hire a buyer's agent. Most real
estate experts agree. A buyer's agent can open more of the market
to the buyer, including for-sale-by-owner properties and properties
that are not yet listed. Beware of agents who say that they will
offer you Buyer agency and then do business the same way they
always have. According to Fields, buyers should never hire a Real
Estate agent without a written contract that spells out the details
of how the agent will work.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
What Are the Nuts and Bolts of
Homeowners Associations?
New Disclosure Statute in Effect!
As of July 1, 2003, Florida Statute (F.S.) 689.26 is now in effect.
This is a brand new Homeowners Association and Community Disclosure
that must be provided to the potential client prior to executing
a Contract For Sale. This F.S. is to protect you! For more information
e-mail me today.
What is a Homeowners Association and why do they exist?
Condominiums, cooperatives, planned communities and other forms
of homeowners associations ("HOA") are to allow the
owners to administrate and manage their community. One of the
main purposes of the HOA is to enforce a set of covenants (promises)
that bind all owners. The covenants are usually contained in a
document called a Declaration of Covenants, Conditions and Restrictions
("CC&Rs"). Many HOAs include common property, such
as pools, greenways and private roads and in the case of condominiums,
usually building structure, walls, roofs, plumbing, wiring and
other aspects of the building. Individual property owners are
required to pay assessments (usually monthly) to enable the HOA
to operate the association and maintain the common property.
Who serves on homeowners associations, what do they oversee
and how are such associations governed?
A board of volunteer owners elected by the remaining owners usually
governs HOAs. The board holds regular meetings to enforce the
CC&Rs, to establish a budget, authorize expenditures, collect
assessments, problem solve, and oversee maintenance of the common
property. The board acts in much the same way as a corporate board
of directors. Many HOAs also utilize committees to help administer
the association. For example, Architectural Control Committees
are commonly used to maintain architectural consistency in the
neighborhood.
What kind of legal power do such associations have to
enforce their rules?
The main source of legal authority allowing an HOA to enforce
its rules comes from the recorded CC&Rs and Bylaws. Because
the documents are recorded on the county real estate records,
the valid provisions of these documents legally bind homebuyers
when they purchase their homes. Condominium and Planned Community
HOAs also have the additional backing of state law, which clarifies
legal authority in many ways. HOA laws may also provide additional
legal authority not contained in the HOA's documents. Specific
state law governs all condominium HOAs and many subdivision HOAs.
HOA actions are usually upheld in court if the authority is provided
in the documents or by statute and the board acts reasonably in
carrying out the authority.
If I buy property in an area governed by a homeowners
association, how will I know the rules? And what is my recourse
if I disagree with a rule?
The CC&Rs and Bylaws are recorded documents and potential
buyers should obtain a current copy and read them before buying.
The CC&Rs permit the HOA to make rules and regulations governing
the conduct of the members and the use of the common property.
The HOA should have copies of all its current documents available
for review, or sometimes you can get a copy from a title insurance
company.
Homeowners that disagree with a rule should address concerns
to the board. Rules can be amended or revoked if they are unreasonable,
unnecessary or simply unwanted by most owners. The amendment or
revocation will likely require a member vote. Voting requirements
are usually found in the documents. If owners disagree with a
rule and are unsuccessful in getting it amended or revoked after
following the proper procedures within the HOA, the owners can
always bring a legal action to declare the rule unenforceable.
However, this could become very expensive, especially if you lose
since most HOA documents require the owner to pay the HOA's attorney
fees if the owner loses.
What are some of the common problems faced by HOA boards?
Do you have any suggestions for how such associations might be
run more smoothly?
Rule creation and enforcement are an area of concern. Owners
need adequate notice of any alleged rule violation, including
an opportunity to be heard before any fines are imposed. When
owners fail to pay assessments, the board often struggles on how
best to get payment. When conducting meetings, it is recommended
that the board use a guide like Roberts Rules of Order. This will
allow orderly participation of HOA members and assist the board
to reach decisions on important issues.
It is not uncommon for volunteer board members to have little
experience in running an HOA. For this reason, it is important
that all directors become familiar with the governing documents.
While the documents often outline the steps necessary for proper
action, some situations may require some guidance from someone
with more experience. Many HOAs hire management companies to assist
with administrative duties. Experienced attorneys also provide
needed assistance in interpreting and amending documents, assessment
collection, internal dispute resolution and other complex issues.
Finally, and perhaps most importantly, harmony can be sustained
by encouraging open communication and cooperation between owners
and the board.
Where can I get more information about Homeowners Associations?
Community Associations Institute (CAI) is a national organization
with many state chapters that specialize in HOA issues. CAI publications
provide a variety of interesting and relevant information, including
tips and guidelines in problem solving. CAI hosts seminars, vendor
fairs, and other activities that provide valuable education and
information.
CID (Common Interest Development) Network provides vast HOA information
including relevant state and federal legislative issues, service
provider directories and discussion groups. CID will soon premiere
a powerful new web homeowner association concept called Disclosure
Line (stay tuned).
Regenesis is the largest homeowner association resource in the
world. Among its pages, are links to all available state HOA statutes,
books, videos, software, sample policies and forms and much more.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
Ways to Help Clean Up Your Credit
If you suspect that you cannot get a decent loan because of your
credit, or would like to qualify for a better interest rate than
you would with a cloud on your credit, there are steps that you
can take right now.
A number of credit services, some funded by debt carriers, offer
personalized service to help you organize your funds and reduce
or pay off your debts. Depending on the exact nature of your credit
problem, you may be able to get quick help, or you may need counseling,
assistance, and a plan to follow.
Taking the first step is the important thing. The worse your
credit is, the longer it may take, but you will definitely feel
better when you whittle away at your mountain of debt and unpaid
balances. The trick is to manage your credit rehabilitation in
a way that improves your credit score, one of the means your credit
is rated.
The Consumer Credit Counseling Service (CCCS) provide free professional
counseling and some low cost services including budget counseling,
debt management planning, educational services, housing counseling,
and phone and mail counseling.
Debt management counseling will help you determine how much you
really can afford to pay on your billss; arrange affordable repayment
plans that creditors will accept; and develop a personalized budget.
Of particular interest is housing counseling that the service
offers. The CCCS is HUD-Certified on the home ownership readiness;
default resolution; delinquency and foreclosure prevention, and
rent/lease delinquency.
You can find more help at Debt Counselors of America, which has
an extensive list of free editorials and suggestions about controlling
debt and offers numerous programs that assist in debt restructuring.
They offer a variety of publications and debt restructuring programs,
including programs for people who are current on their bills as
well as for those who are behind.
Like the CCCS, the National Foundation for Consumer Credit is
funded by lenders, credit unions, community groups and other contributors.
This nonprofit network also provides credit and debt education
and counseling for repayment and debt restructuring.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
Buying from a ‘For Sale By Owner’
May Be Hazardous to Your Health
Many circumstances may lead homeowners to try and sell their
houses by themselves, without agent representation. Maybe the
seller finds himself strapped for cash, and needs to save on the
commission.
Perhaps he has a relative or friend who successfully sold his
home and who tells the seller, "There’s nothing to
it!" Most likely, the seller can’t see turning all
that commission money over to an agent who ‘just sticks
a sign in the yard’, and ‘puts an ad in the paper’!
For Sale By Owners, more commonly known as "FSBOs,"
invariably under-estimate the amount of time, work, and skill
necessary to successfully negotiate and coordinate a real estate
transaction from start to finish. A large number of people who
start out as "FSBOs" do eventually end up listing their
homes with a real estate agency, but not without first experiencing
a good deal of frustration, disappointment, and inconvenience.
Having said all that, the potential rewards awaiting homeowners
are high enough to insure that the "FSBO" will be around
for a long, long time. However, with the advent of the Accredited
Buyer’s Representative, (an agent who solely represents
the buyer during the entire real estate transaction), the idea
of BUYING a home directly from a FSBO, without an agent, could
now be a foolish, and costly, mistake.
Buyers would do well to opt for a Buyer’s Representative
relationship when purchasing ANY property, but most especially
when dealing with a FSBO. Here’s why:
Negotiating Power. Because a Buyer’s Representative works
ONLY for the buyer, having such an agent by your side during negotiations
can save you thousands of dollars. Your agent will be armed with
ALL the relevant comparable sales (not just the really favorable
ones that the seller may provide for you), as well as any other
financial information you may need. For instance, your agent can
arrange for you to be pre-qualified by a mortgage company. This,
alone, makes you much more desirable to a FSBO and greatly increases
your negotiating position. Since FSBOs, by definition, do NOT
have agents representing them, the use of a Buyer’s Representative
gives you a tremendous advantage at a serious and financially
important moment in your life!
Protection. Even if the seller is the most honest, most forthright
person on the face of the earth - he or she may still fail to
disclose something important, or inadvertently discriminate --
through ignorance. The old saying goes: If you shoot me, and I’m
dead, it doesn’t matter if you meant to do it!" A Buyer’s
Representative, as a trained professional who knows the area,
protects your interests. For example, would you be happy to discover,
one month after settlement, that a purposed highway is to be built
in your backyard, and the seller hadn’t received a formal
notice, so he hadn’t disclosed it to you? A good Buyer’s
Agent could uncover this fact BEFORE you buy.
Objective, Professional Opinion. Primarily, you come across
a FSBO by riding around and seeing a sign on the lawn. The house
looks good; you get out of the car and knock on the door. The
people are nice, the home is great, and, before you know it, you
are mentally placing your furniture in the living room, and you
are totally, emotionally involved. While loving your potential
‘new home’ is a good thing, the addition of a more
objective, professional opinion is certainly a valuable asset.
Your agent can either reinforce your emotional decision, or bring
you back to reality, depending upon the facts. Either way, you’re
a winner.
Experience, Expertise, Information. A Buyer’s Representative
can fill in all the gaps, and answer all the questions you have.
Your agent can provide you with information on the school district,
the neighborhood demographics, the cost of living, shopping, transportation,
job opportunities, and much more. Through today’s technology
and the Internet, as well as your agent’s intimate knowledge
of the selling area, you can cross the threshold of your new home
for the first time without feeling like "the new kid on the
block"!
Cost you no more to Utilize a Buyer’s Representative.
In many instances, FSBOs have already "built in" an
agent’s commission when pricing their homes, and will gladly
accept a written offer from you that contains provisions for them
to pay your Buyer’s Agent’s fee. This is not unlike
"new construction". When you walk into a sample home,
do you see two different price sheets: one for those who are alone;
a higher price sheet for those accompanied by a real estate agent?
Of course not. If the builder is "lucky" enough to have
you walk in by yourself, then he/she keeps the portion of the
commission that was earmarked for the Buyer’s Representative,
he does not rebate it to you! The same holds true for the majority
of FSBOs. While they are looking for as much money from the sale
of their homes as possible, they also realize (or, at least, the
rationale ones do) that many buyers will be uncomfortable without
representation, and they - like builders - plan accordingly.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
Secrets That Reveal How Buying
MORE Can Cost Less!
When looking for real estate, buyers often discover that no matter
what price range they explore, the house they REALLY want to buy,
the house containing EVERYTHING on their current ‘wish list’,
is always just out of their reach. Amazingly, this phenomena occurs
whether the couple is settling for a $150,000 home, while yearning
for a $200,000 property; or inspecting a $500,000 house, while
longing for a $600,000 residence.
With interest rates low and housing prices on the rise, justifying
that ‘stretch’ to get your dream house may be easier
than you think. In the long run, after factoring in appreciation
and tax benefits, you might just end up putting out LESS money
for MORE house.
Here are some reasons to contemplate increasing the price range
of your home search:
Advantage #1… O.P.M.
The leverage you gain using Other People’s Money is one
of the nicest parts of buying a home. With interest rates attractively
low, you may find you have the ability to qualify for a higher
mortgage amount than you originally thought. A small down payment,
(usually no more than 10 - 20 % of the purchase price), is all
the cash you may need to contribute to the purchase price. Even
so, as the property increases in value, you reap the benefits
of the total asset. Therefore, if you buy a house for $150,000,
with $15,000 down, and that home appreciates 10% a year for the
next two years, you will have amassed $30,000 in additional equity.
That’s a 200% return on your original investment. If you
stretch a bit, and buy the $200,000 home, your gain would be $40,000
in two years.
Advantage #2… More Tax Benefits
The interest you pay on your mortgage is tax deductible. So, the
more you borrow, the greater your tax shelter. Think of it, at
the same time your larger house is making you more money through
appreciation, the government is also allowing you a bigger tax
allowance. It doesn’t get much better than that!
Advantage # 3… More Stability
If you are like most people, you HATE to move. Besides all the
packing and unpacking, there are the other costs -- financial,
physical, and emotional -- associated with relocating. The ‘closing
costs’ alone involved with selling and re-buying a home
can account for thousands of dollars (real estate commissions,
transfer tax, and various ‘certificates’ on the seller
side: points, title costs, etc. on the buyer’s side). Add
to this the time and stress involved with settling in at a new
location, and you have powerful reasons for trying to stay put
as long as possible. Buying that bigger (more expensive) home
may allow you to do just that.
Advantage # 4… Getting What You Really Want
The most compelling argument for stretching your purchasing power
might well be the joy you will feel each time you come home to
the house you REALLY wanted!
Since few things in life are simply black or white, here is the
flip side: Reasons you may NOT want to stretch your price range:
Disadvantage #1… What Goes Up…
While housing prices may continue to rise, they may also fall.
Past history has shown that the law of gravity certainly applies
to the housing market. Interest rates, regional economies, even
weather conditions can drastically alter the value of a home.
At the very least, you need to look at the possibility of that
$600,000 dream house being worth $500,000 … or less, and
ask yourself the question, "What if this happens, and I have
to sell?"
Disadvantage #2... Job Security?
Gone are the days when the average person can count on working
for a company for 25 years, retiring with the pension and a gold
watch. Taking on a larger mortgage probably means you have to
continuously produce income at the same level (or higher) for
many years to come. You need to ask yourself the following question:
"How secure is my job?". Look at the company, the industry,
and the region. While no one can predict the future, don’t
let the possibility of downsizing, or out-souring, or consolidation
catch you completely by surprise. In addition, ask yourself, "Do
I like what I am doing?" The ability to just pick up and
pursue a new career might be severely limited by the financial
pressures of a larger mortgage.
Disadvantage #3… And Baby Makes Three…
Many young couples purchase a home as the first step to starting
a family. Stretching the limits of your qualifying range often
means that both the husband’s and wife’s salaries
are needed to meet the demands of an increased payment. This is
true not only at the time of the purchase, but for years to come.
You need to ask yourself the question; "Do future plans include
both partners continuing to work after the child/children are
born?"
So, there you have it. Whether you choose to go for the larger
house, or opt for a more conservative purchase will depend upon
your personal make-up. Specifically, your ability to tolerate
risk. As always, seeking the advice of a financial advisor before
making any real estate purchase is a wise move.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
^ Back to top
What Builders Hope Buyers NEVER
Learn. FREE Report Reveals Secrets About New Construction That
Can Save You Thousands of Dollars!
If you are in the market to buy a house, one of the first things
you will probably do is check out all the new construction in
the area. Studies show that, given their "druthers",
most people would rather buy a brand new home than purchase a
resale. Like a new car, a new house has a special feeling attached
to it, right down to that ‘new house smell’.
The average couple begin shopping for new construction in this
way: they buy the Sunday newspaper, circle all the big ads, climb
into the car, and plan a day of visiting sample homes. They are
excited and in high spirits. After all, this is going to be great
fun!
They drive up to the first sub-division. (Finding the sample
home in one of these developments is never difficult. You just
look for the flags in the driveway, the sign on the lawn, and
thousands of dollars in professional landscaping.) They pile out
of the car, go through the door, and are greeted by an attractive,
smiling salesperson.
"Just looking," they tell the Builder’s Representative.
"No problem," says the salesperson. "If you’ll
simply register here, I’ll give you a brochure, and point
you in the right direction."
They dutifully fill out the registration form, get the brochure,
and tour the house. More likely than not, to exit the sample home,
they have to go right back past the Builder’s Representative.
The salesperson, still smiling, stands ready to answer any and
all questions they may have.
If the home they saw holds any interest for them, they will probably
view the plot plan. The salesperson points out which lots are
still available, which have premiums, and which are ready for
immediate delivery. He or she will sincerely confide to our couple
that a small, totally refundable, deposit will "hold"
the lot they like best. This will give them a chance to think
about it, without running the risk of someone else grabbing "their"
lot.
The couple, feeling very comfortable with this pleasant and non-aggressive
salesperson, and very appreciative of the special "insider-information"
about the lot, decides to leave the deposit.
After all, they have nothing to lose and everything to gain,
right?
Wrong.
What the couple did when they first walked in and registered
was to sign away their opportunity to have their own agent represent
them if they buy from that builder - with the builder footing
the Wayne for that representation! When they left the deposit
on the lot, they further sealed their fate.
Here’s the truth that builders hope you never discover:
In today’s competitive market, most developers realize
that the buyer for their home may already be working with a real
estate agent, and THEY BUILD A COMMISSION FOR THE AGENT INTO THE
SALES PRICE OF THE HOME. That’s right, the commission to
pay YOUR agent is ALREADY figured into the price that the salesperson
quoted you. And the house is the SAME price, even if you walk
into the sample home all by yourself, without an agent.
How much money are we talking about? Well, if a house is $200,000,
the builder may be offering anywhere from 2%, to a full 6%, for
the agent who brings a buyer. That’s $4,000 -- $12,000 that
you are going to pay, whether an agent represents you or not!
What happens to all that extra money if you walk into the sample
home yourself, as the couple above did? You guessed it, the builder
keeps it!
And that is not even the WORST part. While you are going to pay
that extra money even if you do not have representation, the risks
you run by just having the Builder’s Representative "take
care" of everything could end up costing you a whole lot
more!
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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Little Known Secret: How To
Find The Best Buys In Housing In Every Market. Buyers Learn How
To Sniff Out Bargains!
When it comes to prospective purchasers viewing properties, there
is much truth in the old saying, "One never gets a second
chance at a first impression." A house that shows signs of
personal neglect immediately turns off many buyers. While everyone
is, of course, more attracted to a well-kept home than to a pigsty,
some of the best bargains to be found in the housing market are
often discovered underneath a mountain of newspapers, old clothes,
and just plain ‘junk’. For the savvy buyer, a house
that needs a little TLC could turn out to be the buy of a lifetime.
Just to be certain we are on the same page, a cluttered house
is not necessarily a ‘handyman special’. While most
fixer-uppers ARE cluttered, not all cluttered homes fall into
the ‘handyman special’ category. The largest difference
between them is that the former normally needs structural and
cosmetic repairs, while the latter usually requires a few large
trash bags and some soap and water.
The biggest error that slovenly sellers commit is in not realizing
how much their sloppy habits will cost them when they go to sell
their homes, and the biggest mistake naive buyers make is in thinking
that careless housekeeping automatically means negligent maintenance
of the major components of the home.
Some of the most conscientious and responsible homeowners in
the world may also just be pigs … or pack rats! The smart
buyer will see past the personal habits and living style of the
inhabitants, and concentrate on the dwelling itself. That is not
to say that buyers must disregard the condition and appearance
of a house when making a bid. To the contrary, a house that has
not had a good cleaning, or seen a patch of empty floor space,
since Bush was president is a good candidate for a lowball offer.
Buyers can logically argue that they have a great deal of work
ahead of them to make the place habitable. They can, legitimately,
point to a "cream-puff" comparable home and deduct not
only the cost of the actual work to be done, but also the value
of the labor they will have to expend. This "sweat equity"
is usually calculated at a rate far in excess of the actual cost
of getting the work done.
It is not unusual for a cluttered home to bring thousands of
dollars less in a sale price than does a house in move-in condition.
Most buyers steer clear of properties that need a little work.
Clutter gives buyers a reason to pause. If a buyer needs fast
possession, he may think: "How are they (the sellers) ever
going to be out of here in two months?" Or, a buyer may wonder,
"Maybe there isn’t enough room for my stuff,"
since clutter makes rooms and closets look smaller.
To make certain you properly assess the merits of every home
you see, here are two tips that may help you see past the clutter,
and give you a glimpse at a true diamond in the rough!
The Tape Measure Is Mightier Than The Eyeball. Do not rely upon
your eyesight to judge dimensions. Get accurate measurements.
You may be pleasantly surprised to discover that a room you believed
to be small was, in actuality, much larger than it appeared to
be, simply because it was loaded to the gills. By the way, taking
accurate measurements is a good way to avoid being disappointed
on the other end of the scale. Sometimes smaller rooms are artfully
decorated to give the appearance of being larger. This is especially
true in model homes, where the 3rd or 4th bedroom may be more
diminutive than it appears.
Happiness Is A Home Inspection Firm. Having all the systems
and components of the property checked out by a professional home
inspector means you don’t have to wonder if this is simply
a cluttered house, or a true fixer-upper. Concentrate on the features
of the home, and leave the technical stuff to the experts!
When all is said and done, keeping an open mind about houses
that are less than perfect may ultimately buy you a lot more home
for a lot less money.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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How to Balance Your Portfolio
The advantages of a balanced portfolio should be self-evident
- unfortunately for many they aren't. In fact, many investors
either don't understand the concept and importance of a balanced
portfolio, or if they do they have not put the concept into practice.
What do we mean by a balanced portfolio?
It's very simple - don't put all your eggs in one basket. If you
have your eggs divided amongst a variety of baskets and something
terrible happens in one or two of those baskets, then you still
have eggs intact. If they were all in one basket, you'd have nothing
left to carry on with. Seems simple enough.
So why doesn't everybody do it? That's an easy question with
an easy answer. It's because of the agenda of our advisers. If
you go to a banker for investment advice you are usually going
to wind up with your money in a savings account, GIC or mutual
fund. If you ask your insurance man you'll most likely wind up
owning a lot of whole life insurance. If you ask a stockbroker
in some cases you may wind up with whatever it is that he gets
the highest commission from selling. In short, they are motivated
to sell specific products, not necessarily to create an ideal
portfolio for you.
You diversifying your portfolio may not serve their immediate
purposes. The one thing that you can always trust people to do
is to follow a course of action that they perceive to be in their
self interest. You almost never find an altruist in this world
and this holds true in the field of investment advice.
That doesn't mean that you can't specialize. There is no need
for you to be in a category of investment that you don't have
faith in just for the sake of diversifying. You pick the category
you like the best and then you diversify within the framework
of that category.
That's what I do at regarding real estate investments. And whether
you invest with me or by yourself that's what I believe you should
do. And, I don't suggest that you put all of your eggs in the
real estate basket. Real estate is appropriate for part of your
portfolio and as a real estate coach I can help determine the
proportion that is right for you.
Once you have determined the amount of your eggs that are appropriate
for the real estate basket, then you need to narrow your perspective
on the appropriate real estate investment.
You do this by selecting your best choices and then ordering your
priorities among those choices. I believe that real estate should
often play a meaningful role within a balanced portfolio.
Well-selected and well-managed real estate investments provide
a nice balance with the other assets that people typically invest
in, including their own home, stock portfolios, retirement savings
plans, and private businesses.
Real estate investments have a different profile than many of
these other investments and are effected by different factors,
which place them in a truly different basket. Therefore they really
do help diversify a portfolio and create balance through both
good and tough times.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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The 5 Questions That Agents HOPE
Sellers WON’T Ask!
Thinking of selling your house?
You'll probably interview one or more agents. You'll have them
out to your house, receive their opinion of value, and talk about
market conditions. Among these agents may be your next door neighbor,
your sister's best friend, or some other family acquaintance,
who just happens to have a real estate license.
Before you sign a listing contract with anyone, you should ask
the following important questions. This list grew out of an informal
survey in which Sellers and Agents identified those areas that
caused the most friction or problems in their relationship. By
having the answers to these questions up front, you can avoid
misunderstandings, save yourself some grief and aggravation, and
make certain that what you get from your agent is the same as
what you expected.
Warning: When first asking these questions, you might encounter
"the squirm." Some agents may not be prepared to answer
such straightforward inquiries. Don't be uncomfortable. As a seller
you have every right to know these things, and any professional
agent should be happy to provide you with the answers.
1. Are you a full time professional, or do you have
another job besides selling real estate? Many, many people
sell real estate "part time". While this is no crime,
it's no great virtue, either. In most cases, a family’s
home represents a substantial portion of their financial assets.
Such an important matter deserves to be entrusted to a full time
agent.
2. Do you have a specific marketing plan for my house,
and will you commit to it in writing? Find out, ahead
of time, exactly what your agent will or will not do to sell your
house. Does the agent's plan include featuring your home on the
Internet, as well as aggressively marketing the property in your
local area? The real reason for asking this question is to make
certain that your agent definitely has a plan, and is not ‘shooting
from the hip’.
3. Who determines how much money will be spent on advertising
my home, and what is that figure? If seeing your house
in print every week is important to you, then ask - up front -
if your agent makes those decisions. In many cases, the owner/manager
decides which properties are advertised. If this is so, then your
home may only be featured sporadically, if at all. While most
experts agree that the amount of time a house is on the market
is not directly related to the number of times the home appears
in ads, you should still have a fair idea of the type and number
of ads you can expect. In today's Market ensure You also have
Internet Marketing. With Multiple Listing Services giving Agents
the ability to send Your Listing to clients literally all over
world it is very important to have experienced agent present Your
Home
4. What financial resources or connections do you have
for assisting marginal or unusual buyers? While all sellers
want buyers with whistle clean credit and a 20% down payment,
experience shows that many viable buyers do not fall into that
category. Find out if your agent is knowledgeable, and prepared,
to work with all buyers, whether AAA or marginal. This is just
one of the areas where sellers will find experienced, full time
agents are much more knowledgeable than beginners or part-timers.
5. Do you have letters of recommendation from past clients,
and may I call them? Get the references and make the
calls. One of the best ways to discover how someone will perform
in the future is to investigate how they have acted in the past.
Including this short list of questions in your initial interview
with a real estate agent can be an eye-opener. The purpose of
raising these issues, however, is not to embarrass the real estate
agent, but rather is to make absolutely certain that you, as the
seller, understand the qualifications and strengths of the person
you are retaining for the important job of selling your home.
Hopefully, the answers given will raise your comfort level with
the agent, and contribute to a profitable and enjoyable real estate
relationship.
Contact or call 360-888-2088 if have any questions or need answers pertaining
to home buying or custom home buying. No obligation for free help.
That includes selling a home anywhere in USA!
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