Your credit score; that magical little number that tells lenders how big of a risk you are when they take you on as a borrower. It can literally mean the difference of getting a loan or not. Your credit score can also affect your interest rate and how much you’ll be paying monthly in a mortgage payment or any type of loan. You’ll want to protect your credit score and increase it if possible and here are some ways to do that.
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When selling your home the last thing you want to do just turn off of a potential homebuyer. I mean, you are probably doing everything you can to appeal to the vast majority of homebuyers out there. You’ve cleaned, swept, maybe even done some home improvement projects but if you’ve done these five things or your home has these five things, you may be turning off homebuyers and not even know it. Here are five things that completely make homebuyers run for the hills.
I’m sure that you love your animals, whatever they may be, but many homebuyers may be allergic or simply not like animals. It also depends on what type of animal you have. If the first thing homebuyers see when they walk through the front door is a giant aquarium with an enormous live snake, they may turn right around and not even get past the front entrance. Dogs, cats, and a fish tank maybe one thing, even though homebuyers may be allergic. Many people can look past the simple dog or cat but even if you have these domestic pets, it’s best to take them out of the house and any and all evidence that they exist before a showing. If you have something more exotic such as a rabbit, bird, small rodent, reptile or another type of animal, it may be best to remove them completely while your home is on the market.
[Read More: How to Market a Luxury Home in the Bay Area]
This might be any type of trophy including a dead animal head on the wall. But, people also don’t want to see bookcases filled with sports trophies, awards or other items as they mean nothing to the homebuyer and only detract from the look and ambiance of the room.
I know, I know, we are getting into a solution society where sometimes even the American flag can turn people off but I’m not saying that you should take down your American flag if it’s on a pole in the front yard. However, I have run across several homes that you may have a teenagers room with a swastika flag on the wall, Confederate flag or maybe something as simple as a sports flag from a team that the homebuyer hates. Simply best to put anything that might give away the homeowner’s personal beliefs whether it’s political, religious or even sports related away until the home sells.
[Related Post: 5 Simple Tricks to Make Your Home Look Like a 5-Star Resort]
Nothing is more uncomfortable than walking into a house where there are naked pictures of people on the wall. I’m not even kidding, we have walked into homes with naked baby pictures on the wall, erotic pictures, and wallpaper patterns with nude women. Anything that is remotely offensive should be removed. You never know when kids, families or people that are simply offended by this will be touring your home. You don’t want them to quickly leave and never return.
This could go for a lot of different things; cigarettes, drugs, alcohol, pills etc. Homebuyers don’t want to see your vice, regardless of whether it’s prescribed or not. It gives an uneasy vibe to the house regardless of whether items are legal or not.
[Read More: Here’s What to Do When Your House Isn’t Selling]
These are on things but we wouldn’t be talking about them if we hadn’t come across them at some point. The best way to set your home up for the majority of homebuyers is to have your real estate agent go through the house offering tips, suggestions and advice for each room before listing and marketing the property.
Would you like to set that up? Give us a call today and I’d be happy to set up a listing presentation to find out how much your home is worth and how quickly it could sell. [Article adapted from Bankrate.com]
It all depends on where you are in life, financially and physically. Should you downsize or invest? Move out or move up? These can be a lot of scary questions as baby boomers hit their retirement age. You may have made a lot of money over the past 30 years but with the drop in home prices over the last 8 years you may have lost a lot of it too. So where does that leave real estate investments today?
Many baby boomers have actually been delaying retirement for the basic fact that selling and downsizing just isn’t an option. They may owe more than the home is worth and this keeps them hanging onto it until it bounces back. Well, it has. Maybe not with the vengeance some would like but stronger certainly than we have seen in the past 4 years. The number of existing homes sold is up about 8% nationwide according to the S&P and prices have reached over 12% higher than they were this time last year. So now baby boomers are toying with the idea of selling or renting out and downsizing. Which is the best option and which makes the most sense financially? – How to Choose the Right Lender
[Related Post: Do Tiny Homes Make Good Retirement options?]
Generally speaking, we know it’s better to own than rent but that’s usually if you are going to stay in your home more than 5 years. Is that something baby boomers want to consider at this time? It all comes down to ease of living which has many implications as far as maintenance, finances and responsibility. If age 65 is no longer the retirement age, keeping a home or investing in new real estate may be well within the realm of possibility for baby boomers. Buying a new home is sometimes a strain on the cash flow, not just in the down payment but in monthly taxes, insurance, fees and the mortgage payment. Even if buyers plan on paying cash, they must consider the inevitable costs associated with owning real estate. One smart plan may be to buy a good rental investment, live in it for a while, and then rent it out when you are ready to move on. The equity remains and collects while the retirees are off enjoying the freedom.
[5 Things to Know Before Buying a “For Sale By Owner” House]
So what makes the most sense for you? It really comes down to all the many variables associated with your specific retirement plan. I would love to talk to you about the options that might work when it comes to real estate in San Ramon, Pleasanton, Danville or Dublin. Call me today and let’s talk.
When it comes time to shopping for a mortgage, I would strongly encourage you to start with a local and trusted lender. – Jonathan Fox – Washington Post
You can’t get any clearer than that.Big business, large corporations, and big banks have been selling and buying mortgages for decades but when it comes to the individual homebuyer, going local, and going personal is always best.
It’s surprising how little value many homeowners, especially first-time homeowners, put into shopping around for the best home loan. They should be just as careful about this process as they are the home itself. However, many people simply go with whomever the real estate agent suggested or the local bank. While this might work out just fine, you can really benefit from shopping around for the best loan, the best rate, and the best terms. These really do change and you want to make sure that the lender knows you are shopping around. People get competitive when they know that they have others to compete against.
Terms, interest rates and details of a mortgage loan are not always set in stone. You would be surprised at what you can actually negotiate with. Everything is important when it comes to dealing with contracts including inspections, timelines and of course who you are dealing with.
Mortgages in today’s society are getting easier but we still need to be cautious about applying for the right home loan and only applying for a mortgage we can actually afford. In order to avoid a housing bubble burst, living within our means is really the key to maintaining our home and living comfortably with the mortgage we have.
Large banks, credit unions, and even hometown banks can be a great partner in managing basic financial details such as your checking and savings accounts or even credit cards. But when it comes to borrowing money for a large purchase such as a house, finding a mortgage officer the deal specifically with this type of loan is essential to getting the best rate.
Competitiveness also plays a big factor in getting the right loan for your needs. Shop around to a couple of different loan officers or mortgage brokers as well as your own bank or credit union. Find out what terms you can expect and different programs that different mortgage brokers can provide. Housing markets are competitive so lender should be as well.
Terms and price are not the only factors when it comes to choosing the right lender. Large banks that have multiple mortgage officers can tend to bog down the system, extending out timelines and deadlines that could cost you your home. Individual and private mortgage lenders and personal loan officers have more invested in the game, so that are more likely to pay attention to timelines and get things done in a timely fashion.
It’s Okay to shop around. Don’t worry about your credit getting hit. Having the loan officer run the numbers for you and then offer you the best plan and wait for your needs is essential to getting the right loan and saving you as much money as possible.
Feel free to give me a call as I have a lot of mortgage lenders in the Bay area and the Tri-Valley area that might work for you. Remember, shop around to get the best loan and the best deal for your needs.
Buying a house with the idea of selling it isn’t usually something most homebuyers think about when browsing properties and looking through listings. However, there are things that you might not think about as being bothersome as a homeowner but could be someone else’s nightmare when it comes time to sell. Here are five resale issues many buyers don’t think about when purchasing property.
Myths, perceptions and superstitions carry enough weight to make a buyer back out. Power lines are one of those issues. You might not have considered power lines being a problem when you moved in but many people feel that living too close to high-voltage power lines could make them sick or even give them cancer. However, there has been no research found that supports this claim. However, perception is an issue and if people don’t like power lines, you may have a heckuva time selling your home if you live close by. You might want to consider this before purchasing a property close to high-voltage power lines.
This is a tricky one; studies have shown that homes close to a Starbucks or Trader Joe’s actually increase in value but being too close could have the opposite effect. Living close to a grocery store that gets its deliveries all night long could be a nightmare for people trying to sleep. Businesses can be loud and disruptive so take this into consideration when purchasing a home close to just about any type of business.
This again might not seem like an issue at all. Many homebuyers love brand-new properties but, they can also be a drawback if the development is still being constructed. Construction noise, construction workers, large trucks and dangerous equipment could be a drawback to many potential buyers. If you’re planning on buying and then selling within a couple of years, you might face a lot of problems, especially if the subdivision is still being developed. Many buyers will simply go to a brand-new home in the development rather than a resale home in the same neighborhood.
It’s important to consider privacy when purchasing a home and how future buyers would perceive it as well. A home that backs to a busy road or highway might be private but you also have to deal with the noise. Some buyers prefer a long, private drive but this can also have it’s issues with safety; a well-lighted neightborhood may seem much safer than a dark and quiet road.
This all depends on where you are located, but things to consider would be a home in a forest it area could run the risk of forest fires or downed trees during windstorms; and exposed home with no trees and a west facing backyard that gets blisteringly hot in the summer. These are subtle features for sure, but they can be a big deal once you’ve lived there for a while.
It’s not my job to choose the home for the buyer but I do want them to know that if they purchase a home with an unchangeable adverse situation, it could potentially sell for less than similar homes. Buying with the idea of selling can help you make a wise decision not only now but for your future.
The seller’s disclosure report or form will be filled out by the homeowner/a seller before listing the property explaining in detail any known issues, remodels, renovations or problems that the house currently has or has had in the past and has been fixed. Anything that the seller knows about a property must be disclosed on this form. Seller’s disclosure forms vary from state to state will have some of the basics that buyers will need to know or understand before purchasing the property.
This is more than simply knowing that the roof is 10 years old; it’s knowing what type of roof it is that you know the lifespan of that material. If you are only 10 years into a 40 your roof, you know that the roof will have some life left to it for quite some time. If you are unsure about the life of a particular roof material ask your real estate agent or home inspector. They can give you tips and advice as to how long a particular roof will last.
Sellers should be able to explain any and all plumbing issues that they know what. You want to know the age and type of the pipes, whether it’s copper, galvanized steel or brass. Some of these can last up to 100 years but polybutylene or lead pipes could mean trouble. Some of these materials may need to be replaced before you move in.
Related: Buyer Negotiating Tips and Strategies
Most gas water heaters usually last about 10 years and electric ones about 15. Most water heaters don’t need to be replaced until the leak or fail. HVAC systems or heat pumps work harder the older they get so a 20-year-old HVAC system will be working about 50% harder and less efficient than a new system. While this may not be something to replace, it is something to be aware of for your future in the home.
If the seller had conducted any remodels or major renovations they should be able to produce a building permit. If no permit was done on a major remodeling issues that require a permit for your city or state, you could be liable for mistakes in the future. Anything that was done that should have had a building permit needs to be signed off on before you agree to purchase the property. This is for your safety and liability.
Read more: Should you buy a Flipped property?
Cracks can be structural damage but they also could simply be a settling. Newer homes are notorious for getting cracks in the ceiling, walls and corners simply because they have settled now that people have moved into the home or the foundation and ground around the home has settled. While this may not be cause for concern it is something to ask your home inspector about. Read more: Do New Homes Need Inspections?
Sellers should be able to tell you if there’s been any major animal damage while the home was under their ownership. This could mean past issues, where they have hired an exterminator, major damage, rats, mice, snakes or other issues that may have caused damage to the house under the seller’s ownership. Make sure all of these items have been addressed and taken care of before you take ownership.
Sellers need to answer honestly of they know that the home has asbestos or lead paint. But, most homeowners have not owned the home for the last 40 years total so whether or not the property has lead paint in it or not, the seller is not going to know. The seller may know if there is asbestos but anything that they do know, they have to disclose.
Understanding the seller’s disclosure form doesn’t have to be difficult but if there is anything you don’t understand don’t hesitate to ask your real estate agent or the listing agent. They can identify and explain any detail and unfortunately if the seller simply does not know about an item dues to issues happening before they owned or if it is an investment rental property, there’s not much the buyer can do about it.
We see them all the time these days; fix it or flip it, love it or list it etc. This new trend of buying homes and flipping them is certainly not a new idea but broadcasting it on reality TV has only hit the airwaves in the last few years. More and more sellers and investors are watching the shows thinking they can definitely do it but when it comes to buyers, are buyers apprehensive about purchasing a flipped property?
The challenge is finding a home that has had just a little bit of cosmetic work done versus a home that has undergone major surgery. Finding a home that has undergone major repairs or replacements is not a bad thing but you want to make sure that the work was done properly and up to code. Simply repainting a wall and repairing a patch or two is not something you’ll need permits for but rewiring the house, redoing plumbing or installing a major household appliance such as a furnace or heat pump should be monitored and approved by a qualified professional.
Read more: 10 Important Things to Do Before Buying a House
Other items that you may not be aware of include precautionary materials. For instance: if a vanity was replaced, the vanity might look great but if the Hardy backer board was not installed properly or is not waterproof, you could be faced with mold and mildew later on down the road. You’ll need to verify that all the materials used were up to code and properly installed. You certainly wouldn’t want the floor to buckle due to improper plumbing underneath the sink. Remodeling or renovating things on the outside might look pretty as long as the inside work was also completed properly.
Aesthetics are of course important when you’re dealing with a remodel or rehab but you also want to make sure that the work was done professionally and not just completed on the surface. Any wood rot, foundation problems, or items behind the scenes may not be visible on the outside door on the surface. These are items that could cause major problems in just a few weeks after purchasing the property.
Related: Do New Homes Need Inspections?
Having an inspection can certainly alleviate some of these concerns, however, not everything is visible or can be inspected. Verify that your home inspector will check the crawlspace and the attic in order to confirm that the bones of the home is just as sturdy and durable as the aesthetics.
All in all, buying a flipped property is a great way to get a home that is usually all put together but it is important to be aware of the concerns that flipped properties could present. Talk to your real estate agent, make sure you understand what work was completed and that it is been properly inspected and permitted.
We always want the best deal; and even better when we can find a great deal on a great house that we really love. If you’re ready to get into the real estate search game, know all you can about the business, the market and prepare yourself for getting a great deal. Here are 5 ways to get the very best real estate deal.
The knowledge really is power and if you’re planning on getting the best deal, this is not something that you decide on a Tuesday afternoon and then put in an offer Wednesday morning. You need to do the research in order to get the best deal. Take some time; maybe even a month or two to really find out where you want to live, get a good list of communities, subdivisions or neighborhoods that you’d like to choose and then the research over the last six months for that area. How is the market doing? Are homes increasing in value rapidly or gradually? Are homes dropping in value? What about the crime rate for a particular area? Are there good schools in the area, something to consider for resell value? Home selling quickly? If homes in a particular area are selling fast you may need to come up with an escalation clause or deal with multiple bids for the same property. If there are 300 homes in a subdivision yet only two or three are listed at a particular time, chances are that’s a very popular neighborhood and you might end up paying more than the asking price in order to get the home. If there are dozens of homes in a smaller neighborhood, people may be moving for a particular reason. Is there new construction going to be happening in the area? Talk to the neighbors about why they’re moving. And of course, talk to your buyers agent about a particular neighborhood, why you want to live there and if they have any concerns or advice they can share about the subdivision, community or area in general.
After you’ve done the research on a particular neighborhood and you have a good idea of the area you want to live in and the price range, set yourself up for homebuying success. This means doing the financial homework necessary in order to purchase a home. If your financing the property, talk to a lender about the type of loan that works best for your situation. Get a preapproval letter and set aside some funds either for a down payment and/or earnest money deposit. The larger the earnest money deposit the more serious sellers take you. They may be more inclined to accept your offer then another similar offer that has a lower earnest money deposit.
Another way you can be an attractive buyer is to minimize your contingencies. If you need to sell a particular property, have tough financing contingencies or too many conditions that need to be completed before you finalize the purchase, sellers just see you as a hassle and may decline your offer altogether. Of course we always recommend a home inspection but in a slower market you might consider a home inspection prior to making an offer. This could waive the inspection after the offer is accepted, speeding up the process and making you more attractive to the seller.
Foreclosures and short sales are still out there and they can be great deals. There are keys to look for though in a foreclosure or short sale property:
You can negotiate pricing from just about every party involved in the real estate transaction. This could include your real estate agent, appraiser, lender, inspector, escrow and title company. You might be surprised at how much you can save simply by negotiating everybody’s fees in an amicable and reasonable way.
Knowing when to pull the trigger is something that you and your buyers agent should discuss. Once you’ve done everything prior to this point, knowing when NOT to wait is crucial. By determining all the factors above, understanding the area and the market, you should be able to pull the trigger on an offer at the right time.
ALSO – know when to walk away. This is just as important as knowing when to go for it. Your agent will be able to talk you through the plan and when not to get your emotions too involved. Sometimes, buyers can get so wrapped up in the process, they overpay when it’s all said and done. Don’t let the idea of “winning” become the focus over getting the right house at the right time.
Ready to get started? Ready for step one? Let’s talk!
In today’s real estate world more and more homebuyers are being informed and educating themselves on the process, the transaction and the details. This is great and it helps buyers understand and feel more comfortable with their purchase. Before looking and buying a home there are some things that you should do so that you are prepared, well-informed and assured you are ready to buy. Here are 10 things all potential homeowners should do before buying a house.
Before applying for a home loan, looking at homes or touring open houses, understand your credit history, score and your own finances. You certainly don’t want to be surprised when a lender discovers that you have a low credit score and that loan you took out 10 years ago never got paid off. Make sure there are no surprises and if you find any errors on your credit history correct them or write a letter of explanation before applying for a home loan.
There are lots of lenders out there and you should be shopping them just as much is you would shop for a house. The rates, points, fees and costs can all vary from lender to lender so let them know your shopping them so that you get the best deal.
There are a lot of zero down home loans or low-cost home loans out there making it fairly easy for first-time homebuyers to purchase a property however, there are expenses that you need to know about such as out-of-pocket earnest money costs, appraisal fees and home inspection costs. It’s important to have several thousand dollars for these items but talk to your lender and your real estate agent about how much exactly you’ll need in order to buy a house.
Find a buyers agent that has this profession as a full-time business. It’s fairly easy to get your real estate license so many people real estate and have a full-time day job however, they may not understand the changes, rules and regulations of purchasing property so it’s best to go with an experienced and seasoned real estate agent so you have someone on your side throughout the process.
Just because you can’t afford a $500,000 house, doesn’t necessarily mean you need to max out that budget. Looking for a home around $450,000 will give you a little bit of breathing room and allow you to save money for those home repairs that will now need to deal with in the future.
I’ve dealt with many people that fall in love with the house and want it at all costs even though after the home inspection the property is in dire need of repairs and could even be hazardous. Try not to let your emotions get the better of you and try not to completely fall in love with the house until you know it’s going to be yours.
HOA, or homeowners associations are very common in the bay area and Tri-Valley area so you want to double check on how much you’ll be paying monthly for the homeowners association. Single-family homes, residential neighborhoods and condo associations can all have an HOA, so make sure you agree with it before signing on the dotted line.
For first-time homebuyers it can be difficult to think long-term but the home you by now probably will not be your only home. Consider resale value, location, school districts, and what it would take to sell the property in the future if need be.
Some of the best homes with the greatest deals out there may have peeling, outdated wallpaper, older appliances and wood paneling. But, you can get a great deal and if you look past the cosmetics and see the house for what it really is, you may be getting a diamond in the rough.
Once you’ve applied for a home loan do not make any large purchases or take out another loan. This can greatly affect your interest rate and even your ability to get the loan at all. Consider putting all of your finances on hold and freeze them until the transaction is complete.
For more information or to get started on any of these steps contact my office today.
To really get the most out of your house hunting experience you may have done little bit of research, scoured the market and read real estate articles ad nauseam. You might think you’re an expert at this point but no one is an expert better than a professional that buys and sells real estate on a day-to-day basis. Gaining insights and secret tips from real estate agents and brokers could be the key to saving money and finding the home you really are going to love for years to come. Here’s our five secrets of every house hunter should know before jumping in the market.
Our bay area market is hot and there are new developments popping up all the time but it may not be fast enough. Buyers, especially first-time homebuyers need to think strategically in order to land a house in a hot market. It can be so frustrating looking at multiple houses only to be bid out time and time again. However, there’s always a way to gain an advantage over the competition. One way is for your agent to pull tax records of sellers to get information to use on a personal letter to the seller. This personal letter could be the ideal way that you get the home. Also, ask your real estate agent to share your needs on social media and with other agents for insight on homes that may be have yet to hit the market.
Read more: How a Personal Letter Landed Sarah the House of Her Dreams
Before making an offer on a particular home, check out the neighbors and the neighborhood around that home. Perhaps they’re having a garage sale in your desired neighborhood and you can ask the homeowner questions as your shopping. You can also sometimes find neighbors out watering the lawn and you can simply asked them about the neighborhood, the marketand what they like or dislike about a particular area.
Pricing a house is very similar to pricing just about anything. $5.99 seems like a better deal than $6, even though we know that it’s basically the same. Pricing a house works very similar. If the property is listed at $625,000 and you know that the property has already received several offers, you may be tempted to go over the highest asking price with a flat number such as $650,000. However, raising it with an odd number such as $648,000, or $647,000 etc., may be the unique bidding number that will get yours noticed over the others.
Related: Key Questions to Ask at an Open House
Don’t be a lowball buyer that insults the seller at every turn. Sellers are more attracted to buyers that they like and that may share some interests. The personal letter can offer an insight into your personality and character and if you’ve already seen the inside of the home you might make notice of some of the things that stood out to you such as their baseball collection, unique design taste or complement them on or remodel they’ve recently completed.
Try not to let outside stigmas alter your perception of the home. Many people feel that a home where a senior citizen may have lived and even perhaps have passed away in is a reason to discard the property but chances are the the person that lived here took very good care of the property even though they may still have pink Formica, vinyl floors and original wallpaper. Keeping an open mind could give you a better chance at success and keep competitors away.
Read more: How to Get a Great Deal on a House
These five tips can make it a lot easier to find and purchase the home of your dreams. For more information please contact me today and let’s get started looking at a variety of homes in your desired area.