Pennsylvania Real Estate News, Views and Rants

Are YOU Ready to Buy in Today's Market??

John Rainville — Fri, 05 Oct 2012 20:55:00 GMT

By using a mortgage-qualifying calculator (mortgage-info.com), find out how much house you can afford. You typically will need a down payment of at least 20 percent, plus another 6 percent for closing costs, lawyers’ fees, etc.

When you put less than 20% down, you have to pay for some kind of insurance to protect the lender from the higher risk that you may default. With FHA loans, mortgage insurance is built into the payment. With conventional mortgages, you will have to buy private mortgage insurance, but some private mortgage insurers are not willing to do business.

With credit issues and foreclosures running rampant, you should maintain a credit score of 760 or more. It is the minimum you need for a mortgage with the best interest rate. For free credit scores, try quizzle.com or creditkarma.com; see your credit report at annualcreditreport.com.

All financial experts agree that the important message for all home-buyers is that “you can’t afford not to save.” If you have nine months of expenses in the bank to protect yourself in case of job loss or disability, then purchasing a home will be worry-free for you and your family.

How long will you be in your home? If you will not have to move in the next five to seven years for work or any other reason, then you are ready to buy. Make sure you think through career change possibilities, whether you will be moving when you are done with school, or whether additions to your household will necessitate an upgrade soon.

If you move too soon, the costs you pay up front could result in a not-worth-it situation. If you are prepared to maintain the house in terms of time, labor, and expense and are able to set aside 1 to 2 percent of its value per year for upkeep, as well as emergency repairs or upgrades, then you are ready for home ownership.

Knowing the loan approval process can take weeks–if not months–to be completed will certainly test your desire to own a home. If you are on a tight deadline or looking to avoid any hang-ups, have all the necessary documents ready and completed. Having all of the paperwork in advance will ensure there are no delays which can be costly.

You should not assume a mortgage broker or lender will find or create the ideal loan for their financial situation. Mortgage brokers and loan officers will typically look at the usual programs available. You need to know what your goals are and all of your financing options with your lender or broker.

Are you prepared for additional costs? Understand all the fees that are included, what will be due at closing, or before closing, and the payment and amortization schedule. Sometimes there are fees that may come as a surprise to you. Lenders are required to provide borrowers with a “Good Faith Estimate” which lists the anticipated costs for the loan.

However, sometimes fees and other costs become an issue and inflate the total loan cost. You should compare costs with several lenders because the processing charge for collecting and packaging the loan information can cost between $500 and $1,000, while the underwriting fee can hit $800 to $1,500. Remember, though, the origination fees, application fees and the underwriting fees can be negotiated.

Do you have a stable budget? Is your income stable enough to make regular mortgage payments? Make sure that you can keep up with your payments, and that the reliable portion income can handle your mortgage. Do a mock budget with home ownership that includes estimated taxes, HOA fees, maintenance costs, utilities, repairs and other expenses on top of your monthly principal and interest payment.

Weekend Mortgage Rates from American Advantage (LOOK HOW LOW THEY ARE!)

John Rainville — Fri, 05 Oct 2012 20:53:00 GMT

HAPPY FRIDAY EVERYONE. You are welcome to call my cell 577-2468 for pre-quals on the weekends.

· FHA Mortgages closed in 14 days with 640+ credit score

· FHA: 530 score with 10% Down; 560+ score with 3.5% Down

Above rates are based on 640+ credit score. Interest rates will be adjusted for lower credit scores.

15 Minute Pre-Qualifications

Call Michael Howington

Office 717-755-0004

Cell 717-577-2468 (Nights & Weekends)

NMLS #110116

Kara Griffiths

Mortgage Assistant

717-755-6217

Click here to be removed

NMLS #51492

American Advantage Mortgage Services, Inc.

FHA 30 yr fixed 3.25% 4.375% APR

FHA 203k Rehab 3.75% 4.837% APR

FHA Construction 3.75% 4.873% APR

VA 30 year fixed 3.25% 3.437% APR

USDA 3.25% 4.437% APR

Conventional 3.625% 4.463% APR

We are Now Licensed in Maryland!

John Rainville — Fri, 05 Oct 2012 20:47:00 GMT

After several months of jumping thought hoops we are up and running in Maryland.

Right now we are concentrating on HUD Homes and Commercial Listing and Sales.

We can now help folks on both sides of the Mason Dixon line. Now our buyers coming up over the border

can work with the same agent to buy and sell if needed.

Our commercial agents are already listing up Hospitality Properties in Maryland.

The SECOND Best Day of the Year To Place an Offer

John Rainville — Sat, 30 Jun 2012 16:07:00 GMT

There are times when you can actually get a jump on other buyers and get your bid in when others simply don’t think they can do so. Unfortunately, or perhaps fortunately, these days tend to be holidays and in particular big holidays.

While others are busy celebrating they simply put home buying out of their minds but when the holiday’s over the time comes once again to think about that house they looked at and loved.

If you’re serious about a house and don’t want to lose it then it may truly be in your benefit to put your bid or offer in on one of the best days of the year to make an offer.

Proven to be the second best day to put in an offer on a home is Easter Sunday. Most buyers won’t be thinking of buying on a holiday and most sellers are generally home celebrating the day. The day after is just another day for most and everyone will go back to business as usual; which means buyers get back to looking and bidding. Because Easter falls in the spring time it’s also a great time of year to have your pick of homes. Spring is the busiest season for the real estate market and you’ll see for sale signs popping up even quicker than the tulips and lilies in front yards.

Knowing that spring is the busiest time of year for real estate is also one of the biggest reasons to get a little edge on your competition. Putting in a bid on Easter will most probably make you the only person with an offer in. This can be especially beneficial to you if you have your heart set on a home you just looked at and it’s in a neighborhood that’s desirable or a type of home that will sell fast.

Getting your bid in as soon as possible is always to your benefit but beating out the typical person who would make an offer the day after a holiday is good sense. While people may celebrate on Easter most celebrate with a religious ceremony and then a family dinner. Unlike holidays such as Christmas the celebration is fairly low key and doesn’t involve loads of people visiting for long periods of time so the seller probably won’t feel put out that you put your bid in on a holiday.

There are always risks with bidding on a holiday. The biggest risk, especially if it’s on a religious holiday, is that you will offend the seller. You don’t want to offend the seller because the answer to your bid will most likely be no unless there is no other way they can get out of your offer. You also should let your lawyer know when you want to place your bid, even if it’s the Saturday before Easter, to assure that your agent will work on that day and put the offer in to the seller.

You have a better chance of not offending anyone on Easter than you do on other holidays, simply based upon the fact that most celebrations are somewhat less elaborate for the day and unlike Christmas tend to last for that day only and not a series of days when friends and family visit and so on. However you should also understand that interrupting anyone’s holiday can be offensive, especially a religious holiday; that’s probably the biggest problem with putting in a bid on Easter Sunday. You don’t want to offend anyone, including your agent.

If the timing and holiday issue isn’t something that you really have to worry about then you are definitely putting the odds in your favor by putting in your offer Easter Sunday. Most people simply don’t think to make their offer on Easter Sunday and on homes that are going to sell fast you want to get the edge. Generally the day after Easter or within that week is when a lot of offers are made. There are so many buyers and sellers in the market during the spring that it’s truly the busiest time of year for most agents. Taking advantage of the normal day off could truly be to your benefit especially if the home is one that will sell quickly. Perhaps this is the year to fill your basket with tons of joy and happiness with something that won’t even fit your new home.

Here We Grow Again! Welcome Wanda Lesh

John Rainville — Wed, 27 Jun 2012 18:45:00 GMT

Wanda Lesh has joined BrokersRealty.Com and will be affiliated with the Lewsiberry Office and serving her customers in the Harrisburg Area.

Wanda has severl years of full time real estate experience and is excited to make the change. She was formerly with a local independent firm and a franchised operation before that.

Wanda can be reached at 888-774-8488 x 733 or her e-mail is wanda@brokersrealty.com

WELCOME!

It's MOVING DAY Are you ready??

John Rainville — Tue, 15 May 2012 18:46:00 GMT

So the closing is completed and now you have to move on to the last and final step: moving day. Okay, perhaps we shouldn’t make it sound so exciting and thrilling but it honestly is one of the biggest days ahead.

The best thing to do is to be prepared. Chances are you have a date for when you take possession of your new home so you can plan well for the move.

There are so many pros and cons for each side of the story when it comes to moving.

On the pros list for having a movers do the job is the fact that you can choose to have them move you completely from packing to moving you into your new house or choose to just have them move the sealed boxes and large furniture you have. You don’t have to beg friends to help, rent and drive your stuff yourself or worry about anyone dropping and destroying stuff. You’re covered by the moving company’s insurance.

On the con list is the pure and simple fact that it costs a substantial amount to have professional movers move you. You can choose how much you want the movers to do and it is obviously cheaper to pack your own boxes and move as much as you can a little at a time as opposed to leaving it all up to the moving company. Many people choose to move their own boxes and just pay for the movers to move the big stuff; saving them having to find extra help and a lot of hard back breaking work.

Remember if you are utilizing a moving company read the contract thoroughly. You don’t know how many times professional movers have entered a home and seen open boxes with stuff thrown in them and have to tell the person they can’t take those boxes because they only move sealed boxes with lids, nothing open so things can fall out. There are also those who forget to show the movers everything they want move and then realize grandma’s old buffet that weighs a ton, because it is beautiful hand cut maple and needs moved also. That’s fine but what happens is the cost of the move increases.

So make sure you’re absolutely certain about what you want moved, where you want it moved from (it’s more expensive if they have to remove items from an attic, so if you can move stuff to the first floor or even second floor area you can save money), and also if there are conditions you need to know about in the paperwork. Most people are quite astounded at the cost of having professional movers do the work and end up doing at least some of the work themselves.

However, as most of us know from experience, it can be even worse to wake up Saturday morning with 2 dozen doughnuts ready for your “helpers” who never show up or call you with a reason why they can’t make it. Many times it’s worth the price to utilize a moving company for at least the heavy work. You may find that it’s easier to ease into your new house box by box also; starting with the items you absolutely can live without.

Here are a few quick moving tips that you may or may not already know but can help make the move easier no matter how you are handling it.

Keep one large box available for the last morning you are there at your old house and mark it “LOAD LAST PLEASE!” In it you will want to put your bedding items that you will need that first night at your new place. Put all of your bedding, pillows, and if you have kids their favorite sleepy bear to go to bed with.
Mark all boxes as to what is in them and which room they go to. Mark the rooms in LARGE PRINT so there’s no question where anything goes.
Try to keep like items in the same boxes; for example – living room decor items or kitchen utensils and spices, etc. all in the same box so you aren’t trying to figure out what you need to put where or what’s inside each box.
Weeks ahead start cleaning out your food items. Use all you can and anything that can’t be used think about donating to your local food bank instead of hauling them with you if you really don’t need them. Check dates on them too because that can of pork and beans in the far back of the cupboard has probably been there awhile.
Don’t just put items into boxes as they are; dust them, wash them and have them clean and ready to use when you unpack them.
Anything you take apart keep the screws, nuts and any other items that are small with it by putting them in plastic zipper bags labeled what they belong to and taped onto the item so they don’t get lost. When you’re ready to put it back together you won’t be looking all over for the parts and pieces.
Don’t forget to leave your garage door opener for your old house for the new buyers. All too often people drive off, close the door, and don’t realize that they’ve kept the opener. Usually it’s only a matter of taking it back but it can be a bit of an inconvenience for both parties since you’re both in the process of a crazy time in life when things are a bit chaotic to say the least.

Most of all be careful and use your common sense. Take the time to figure out if you can afford to have professional movers help you at least with the large stuff. Utilizing professional movers could end up saving you both money and aggravation in many ways:

You don’t have to worry about hurting yourself or pulling something while moving and missing days of work which ends up costing you even more money in the end.
You don’t have to worry about anything being broken or dropped – if it is the movers will be covered for it and replace its value because they are insured.
You don’t have to worry about all those “friends” who promise help but never show up and you don’t owe anyone else a reciprocal move since they’ve helped you. As terrible as it sounds it saves you from owing one and from being stuck with little to no help when you really need it; it also saves friendships and hard feelings.

If you can’t afford to have professional help moving, even for a portion of the move, then make sure you take your move slowly. Don’t expect to be completely moved in and complete within a single day or even a single weekend if you can’t physically do it.

Give yourself a decent amount of time to move out of your house that is at least a good week or more after your move in date for your new home. Most of all don’t procrastinate and put off packing things. Start by packing up the items you absolutely don’t need and getting tons and tons of boxes (sturdy ones!) to get your move started.

Make sure even if you’re not utilizing professional help that you seal each box up. In many cases people like to use those plastic bins that you can purchase in various sizes with lids and simply put a piece of masking tape or a label on each bin to let you know which room it goes to and what is inside.

Most of all, celebrate your move when it’s finished and throw yourself a little home warming party.

John Rainville, Broker, Realtor, CSP, LTRS Certified

BrokersRealty.Com

PA LIC# RM-419701
Best # is my cell 717-554-7430 or 570-580-0760
Fax (888) 770-6993

My blog www.JohnRainville.Com

Incentives to Help YOU Close the Deal!

John Rainville — Tue, 15 May 2012 18:44:00 GMT

A buyer’s market can really make things challenging for home sellers. However, this does not mean that you won’t be able to make a good deal on your property.

There are certain inducements and concessions you can offer to help the interested party decide in your favor and close the deal. You have to consider the market condition and adjust accordingly.

In the present market, it is necessary for you to make a bigger effort to get some results without having to create the perception that you are a hard sell.

You have to fight against the market forces to get the deal you want, and for this you have to plan properly and make concessions so you can offer more at the negotiation table.

So what are the incentives you can give to the buyer? Here are some of the inducements and concessions you can consider when selling your property.

Closing Cost – You can consider giving a concession by offering to pay for the cost of closing the transaction. This way, you will be helping the buyer in reducing the equity he/she has to raise for completing the property purchase. Majority of the time, realty deals are easily closed if the seller offers this concession to the buying party.

Add-on Furnishings – Add-on furnishings are a viable inducement in the case of a property situated in an area where relocation is frequent. The deal becomes appealing to the buyer when the property has been partially or completely furnished. In some cases, the buying party may find a particular furnishing to be interesting. If this is the case, you may want to consider throwing in this furnishing as an additional feature for convincing the buyer to seal the deal of the house.

Warranties – Using warranties should be a judgment call. By covering a part of the house with your own warranty, you will be making the buyer more comfortable. The cost of ownership can be on a variety of things. You may have to give a warranty on the dryer, dish washer, or bigger things such as the roof.

Gym Memberships, Condo Fees – If you are selling an upscale property, you may have to throw in a membership, condo fee to make the agreement work with a prospect who does not way to make any additional payments outside the property purchase. A decent offer may be a prepayment for six months.

Rent-to-Own – One method of closing a deal in a bad market is to enable the buying party to “check” your property. With this option, you provide the prospect the opportunity to live in the property for a fixed period of time before finally buying the house. When considering this option, keep in mind that you may have to take care of repair and maintenance during the time you have rented the house.

Seller Financing – In case you already have considerable equity on the house, you may want to consider the option of seller financing. The advantage of this option is that it defrays the capital that the buying party has to raise to get the house. However, there are important things that need to be considered before offering this option.

It is recommended that you seek the advice of legal counsel specializing in real estate for handling the legal side of things. These are some real estate selling tips that you can consider to sell your property in a down market. Who knows, by offering something extra to the buyer, you may be able to get a great deal on your property.

For Sale Signs and How They Help Sell Your Home

John Rainville — Wed, 02 May 2012 18:24:00 GMT

If you are putting your property on the market then you might be wondering how a simple “For Sale” sign could impact your listing.

While some people aren’t too keen on putting up such a sign, it does have a number of advantages. Now, in some neighborhoods such signs are forbidden, while other communities sometimes place restrictions regarding the size and the placement of the sign.

In order to find out how to pursue signage for your home, you should make sure you are following regulations put in place by your local homeowner’s association.

Homemade For Sale Sign – Some sellers do not have formal representation meaning they are not represented by realtors, who would usually hate to spend even more money for the signage. They prefer to sell their properties on their own without tacking on additional expenses. To your advantage, some buyers are simply looking for a good buy, so you might get some inquiries just by having a sign on your lawn!

Real Estate Agent “For Sale” Sign – There are two common types of signs used for selling real estate. One such sign is pounded into the ground and the other type is placed on a post. Materials may be made from wood, plastic or metal.

The Content of your For Sale Sign – A “For Sale” sign is not just eye catching and a good way to tell people that the property is on sale but it also acts as an advertising tool that helps promote your real estate brokerage, as well as the agent representing the property. You can include the name of your brokerage firm, your office number with your area code and your website. Consequently, you can also add your company logo as well as the brokerage address.

There are some real estate agents who like to maximize the space of the signage by adding smaller posts such as the address to their online virtual tour site, the asking price of the property, the price discounts and a slogan. Some agents like to include the home warranty benefits and other benefits to attract more buyers.

Apart from this, some agents may also include a sign rider that is usually hooked below the signage. These signs riders may include the agent’s cellphone numbers, his or her co-agent’s name and contact details, highlight features of the property such ranch, pool, number of bedrooms and baths, etc.

Now, if you are thinking about where to place the signage, it is important to place it in an area that is highly visible from the street. Sometimes cars parked in the vicinity, trees and even telephone poles may block the view of your signage from the street. You have to make sure to avoid these scenarios in order to maximize visibility. That’s part of the reason why you may want to consider placing the signage near the sidewalk or the street.

If the property that is up for sale is located on a corner, you might want to consider placing two signs on both streets. If your home is located in a secluded area, or an area out of the street or where the traffic is considerably low, you can ask some homeowners who live near the busy street if you could place a sign on their property, as well.

Median Home Sale Prices Rise!

John Rainville — Wed, 02 May 2012 18:23:00 GMT

For the first time in four months the median sales price for homes has risen to $156,600. This rise in home sale prices, along with a steady rise in the sales of homes is a plus-plus situation for the industry as a whole.

Sellers are finally beginning to see multiple offers on homes and seeing a definite change in pace of how quickly homes are selling in what used to be a very stagnant and long term wait for the sale of most homes in most areas.

Houses that were previously on the market for often up to a year or more are now selling at an average of 4 months or less. Some areas are seeing faster improvements than others and as always there are some areas that don’t quite fall into any one category of “normal” terms and standards of the industry as a whole; but for the most part these changes are being seen and felt throughout the housing industry. This is definitely one of the biggest signs of improvements in the U.S. Housing Industry for 2012.

New home constructions have seen a moderate increase for the first time in years as request for permits to build have risen substantially. February of 2012 saw the most significant number of permit requests to build new homes since October of 2008. This increase in new home building and permit requests are a definite sign that the future of the housing industry is finally taking an upturn in the United States.
Mortgage rates have been at or near record lows but are now rising slightly, giving a healthy boost to the market while not inundating the market with outrageous mortgages being handed out like candy on Halloween night as it once was and also what most believe was the beginning of the end of the housing industry’s strength. Mortgages rates are rising ever so slightly and lenders are much tighter with their standards; even making it difficult for some potential home owners to obtain mortgages with near perfect credit at times.
The housing supply has fallen to record lows; falling in January to the lowest supply of homes on the market within the past seven years. As a typical case of supply and demand takes over, fewer houses means higher prices for the homes that are on the market and sellers are slowly seeing chances to bring in fair prices on their homes instead of watching their homes literally sink under water as their resale values fall faster than their mortgage balances. Now that there are fewer homes on the market the number of high quality homes should increase and while we are still seeing numerous foreclosures and short sales still entering the market due to the backlog of homes waiting on foreclosure we will also see more and more homes coming into the market that are not distressed homes forcing prices of quality homes to decline.
Unemployment rates are falling and have reached their lowest point in three years. At 8.3% the job market is definitely seeing a strengthening and with that confidence in home buyers increases. This past winter, marked by the months of December 2011 through February 2012, the economy has seen an increase of approximately 245,000 jobs per month. This bright light at the end of the employment tunnel has people feeling more relaxed and at ease when making large purchases such as homes and cars.
Foreclosures have seen a very small decrease from 35% of the sales in January to 34% in February; but experts say there is still a backlog of homes to be processed and this will slow some of the positive attributes we need to see to bring the housing industry back into a healthy state.

While all of these positives are happening there are still some concerns that have to be addressed before the market is back in good position. Some of the negative issues that need improvement include:

First time home buyers has seen a slight decline and made up only 32% of all home purchases in February. Most economists like to see a minimum of 40% of home purchases being made by first time home buyers in order to feel that the industry is in a healthy state but 32% is definitely a closer number than what we had previously been experiencing.
Foreclosures & Short Sales have to sell out their backlog and slow back down to “normal” numbers again.
Lenders aren’t handing out many mortgages to buyers; even ones with near perfect credit. They’re going to have to continue to be cautious but also start allowing more mortgages go through so people with moderate to good credit can purchase homes again.

The numbers were extremely mixed across the country; with some areas seeing decent sized increases in sales and amazing seasonal numbers while others saw unimpressive numbers or even pessimistic numbers in their area of the country. This is definitely not unusual during any market but it is also a sign that the market has a way to go before it’s considered healthy again.
The Midwest and South both saw a seasonal rise in sales; the West and Northeast saw a substantial drop in sales of slightly more than 3%. What we want is to see an increase in sales and new construction across the line throughout the entire country before we feel “safe” and can say the industry has recovered and is once again healthy.
In markets that were slightly more stable foreclosures were making up less than 10% of housing sales; however agents in other markets that weren’t so lucky saw anywhere from 30% to over 65% of their sales being foreclosures. Again this could be based upon the backlog of homes to be processed but in either case the distinct difference across the line throughout the country definitely needs to be more consistent before we can breathe a sigh of relief that the industry is recovered.

While each of these positive effects on the industry seems to be good news both agents and economists alike agree that we have a long road to haul before we see a full recovery from the deep wounds of the past few years. However, there is always a positive effect of seeing light at the end of a tunnel, no matter how long the tunnel may be or how dark it is until you reach the light.

Understanding Making an Offer

John Rainville — Tue, 01 May 2012 17:03:00 GMT

Although you will be guided by your Buyer’s Agent if you have one, it’s always good to understand the process.

Obviously, once you’ve reached the point where you are making an offer on a house you’re at the final stages of the home buying process.

Hopefully the seller can accept your offer or make a counter-offer that is acceptable to you and you will end up with the home of your dreams.

Contingencies are often placed into the offer in order to protect or make sure that if things don’t go as planned the buyer and/or the seller are protected. These contingencies can vary according to the type of home you’re purchasing, where you are purchasing, and what you and the seller want to happen.

An example of a contingency could be that the offer depends upon financing. This is often a common contingency to have written into an offer; obviously written in to protect the buyer from being legally bound to buy a home when they can’t get financed. This is easily something that is avoidable though when you get pre-approval for a mortgage. Either way, most offers keep the contingency in place to cover themselves legally.

Other types of contingencies may include the sale being contingent upon the home passing an inspection or the sale of your home if you own a home and are trying to sell. These are all common types of contingencies that you can have added to the offer. Your agent will guide you as to what it is you should have the sale contingent upon.

There are certain forms that are used to write up an offer and these forms may vary from state to state. Your agent will obviously know and have the proper forms; this is yet another reason to work with a Buyer’s Agent as opposed to doing a “For Sale By Owner” type of sale/purchase. Depending upon the form and the state you are working in there are various parts of the Offer that will be on the form. These parts may include the following information, terms, and items:

Deposit – often referred to as a “good faith deposit” that is made to assure that you are truly interested in purchasing the home. In most all cases if you pull out of the deal once the seller accepts your offer you lose your deposit.
Offered Purchase Price – this is obviously the price you are offering the seller for their home.
Closing Date & Occupancy Date – there has to be an agreed upon date for the closing and when you can take occupancy in most cases; however this is also dependent upon if you have contingencies that may actually make these dates determined by the contingencies. For example it may say 10 days after the home inspection is accepted or 30 days after the loan is approved, etc.
Properties Included in Sale – this is actually an important part of the offer because you list the items that you want included in the sale of the home itself. Everything from appliances to carpeting to draperies, window dressings and even ceiling fans can be included. Again, your agent should guide you about what needs to be included and should be looking out for your best interests to assure that everything that needs to be listed is listed.
Fees – this part discusses who is responsible for what fees that are going to be applied to the sale of the home. While you may just assume any fees are paid by the buyer this is not always true. You can often have the seller pay for points or other fees that may be involved.

While your agent puts together the offer you make and presents it to the Seller’s Agent, it’s always good to know what all is included in the offer. While the listing above is a very condensed version it gives you a general idea of what happens when you put in an offer. It’s always best to feel confident with your Buyer’s Agent and know that they have you covered when writing up your offer but understanding what’s happening may also help you to assure that nothing is overlooked.

If you have questions about the offer you have every right to question your agent and ask for an explanation. By the time you’re at this point of the buying process you’re probably anxious to get things completed and finally have the home buying process finished!

Creative Marketing Ideas for Realtors

John Rainville — Tue, 01 May 2012 17:02:00 GMT

It can be a very difficult task to get noticed in a crowded housing market. With so many properties listed in local areas, real estate agents are fighting to get the attention of the small pool of buyers.

In such a situation, one of the steps you can take as an agent is to get creative with your marketing. Given below are some ideas for selling a house in a creative way.

These ideas have been used successfully by agents and may help you achieve your goal:

Create and Optimize a Website – A lot of people are using the internet to find their dream home. Use this to your advantage by creating a site for your listings. However, creating a website is not enough – you have to optimize it as well. You need to optimize the website for the keywords people are using to find property. Optimization will help your website rank higher in the search engine search results for the optimized keywords. You can search online for companies providing SEO (search engine optimization) services.

Start a Networking Group – Creating a networking group is not as difficult as a lot of people think. By investing under $20 per month, you can create one on Meetup.com. The group will enable agent and investors to come together regularly for networking, discussing new marketing strategies, etc. Meetup.com sends an email notification to people who have shown an interest in your type of group. However, for attracting even more people, you should write a press release to announce the date of a meeting many days/weeks in advance. This way, you may have a room full of agents looking to network and grow their business.

Hold an Agent Open House – A lot of agents are no longer interested in attending a traditional open house. They’re learning that the people coming there are not buyers, but nosy neighbors. Instead of organizing an open house for customers, organize one for realty agents. Create interest by offering a small prize to the agent who comes through the home. By holding an agent open house, you will be able to display your property in front of those who are most important – agents who have customers searching for property in a certain price range. In addition, you will be able to get valuable feedback regarding any problems with the listed property. To inform agents about the open house, create a press release and submit it to an online PR distribution site and also send the press release to local real estate offices.

Create a Coupon – Couponing has practically become a sport with TV shows highlighting how you can save some cash. You can take advantage of this to sell your house. Instead of decreasing the price of the listed property, create a coupon and place it in the local newspaper, property magazines or even on the info sheet of the home. While big discount coupons are the best, you don’t have to create one for $10,000. Consider giving a discount between 3-5% of the asking price. This will enable you to cut down the time spent haggling and you just might get a good offer. Remember to submit your PR to online PR distribution websites as well as local media outlets to get publicity.

These are just four of the many creative ways in which you can market your property, even if the market is down. By having a creative approach, you can make sure that your property will get the publicity you need.

Low Down Payment Home Mortgages - Is One Right for You?

John Rainville — Mon, 23 Apr 2012 21:32:00 GMT

With so many other costs associated with a buying a home, it’s no surprise that a lot of people are looking to have low down payment on their home loan.

A common belief is that there needs to be down payment of 20% at the minimum. This was the standard for a long time; however, now, more flexible options are available.

As a matter of fact, there are loan programs with a down payment of 3.5% of the property’s price. A low down payment loan is generally a loan that has a down payment of less than 20%.

However, low down payment loans come with certain conditions. For example a lot of lenders normally require that the loan be insured in some manner. This type of insurance is known as mortgage insurance.

Mortgage Insurance – Mortgage insurance provides financial protection to the party doing the lending in event that the borrower defaults on the mortgage. Lenders normally ask home buyers to have mortgage insurance on any loan that has a down payment of 20% or less. So the borrower almost always has to have some type of mortgage insurance to get a low down payment loan. The borrower normally has to bear the cost of the insurance. There are two types of mortgage insurance – government and private. Here are some details of both of these options.

Government Mortgage Insurance – This type of mortgage is normally insured by one of the following federal authorities: the Federal Housing Administration (FHA); the Rural Housing Service (RHS) of the Department f Agriculture; or the Department of Veterans Affairs (VA). Each agency has its own standards for insuring loans. For example, RHS normally provides loans to people living in the rural areas, and VA loans are reserved for military veterans and their spouses.

To get insured by the FHA, there should be a down payment of at least 3%. They also consider your geographic area when deciding the amount of the loan. This is how you can obtain government mortgage insurance for purchasing a house with a low down payment. By getting one of the above-mentioned federal organizations to back your loan, you can have a down payment of less than 20%.

Private Mortgage Insurance – Private mortgage insurance, or PMI, can also enable you to get a home loan with a low down payment. This type of insurance is on offer to a much greater number of people compared to the government mortgage insurances mentioned above. For instance, the availability is not limited to rural residents or the military.

PMI is on offer for a lot of different low down payment mortgages. There is also no pre-set limit on the amount. These days, you can definitely find a home loan with a low down payment – payment of less than 20%. With this type of loan, you will need to have mortgage insurance, provided either by the government or a private insurer.

AVOID Foreclosure!

John Rainville — Mon, 23 Apr 2012 21:26:00 GMT

While the economy has seen a bit of an upturn and home foreclosures and short sales are starting to level out there are still many who are looming in the dark halls towards facing foreclosure.

What should you do? Do you ignore it and just let it happen? Do you call the bank? Do you contact anyone? Can anyone help?

The answer to the final question is the answer to all of the others. YES! Yes, there is someone who can help and that someone is a qualified, certified realtor.

Finding a realtor who deals with foreclosures and short sales and has true experience may not be as hard as you think nowadays. Many agents are currently stating that 65% or more of their sales are short sales. While some areas are seeing more and some are seeing less it’s no surprise that the previous few years have had a vast amount of foreclosures and short sales. Needless to say these vast amounts of foreclosures and short sales have given many agents some very intricate and valuable experience to utilize in this particular area.

What Other Options Are There to Foreclosure?

First, you have to act quickly. Once the foreclosure proceedings begin it’s very hard to stop them or get a change in actions. So if you know you’re going to be up against foreclosure in the near future, now is the time to act. Contact an agent and assure that they’ve handled short sales before. While you will still lose your home, the damage done to your credit history isn’t nearly as hard as when a foreclosure goes through.

Many times your agent can negotiate with your lender and talk them into doing a short sale. Generally, lenders lose less money with a short sale as opposed to a foreclosure. They take ownership of the home and now the agent sells it; however, the agent doesn’t necessarily sell it for a huge bargain price but instead at the price of what the home is assessed at by a professional.

The amount will be well under what you owe the bank but whatever the amount is that it sells for is what the bank will take to pay off your loan and consider you out of the picture. There is less damage made to your credit history and you can often go out and purchase another home in a reasonable length of time. Some have even purchased a new home almost immediately depending upon the individual situation.

Other options are also now available to home owners who are underwater with their homes; also known as owing more than the home is currently worth. Once you have contacted an agent ask them what your options are. Some things you may want to ask about are federal government-sponsored programs that have recently come into place to help the numerous home owners who have been faced with this same dilemma.

These options are often various forms of loan modification program and can vary depending upon your situation. If your agent doesn’t feel comfortable guiding you in this area, ask them to suggest a Broker or Lawyer that can help you. These loan modification programs may or may not help; but either way it can’t hurt to look into them.

Another possibility is working with your lender through an agent to sell your home while you live in it. There are advantages to this because the home is maintained for the lender and they don’t have to worry that the home will be vandalized and the value of the home depleted even more, making their loss even greater. Often agents know lenders’ styles and which buttons to push to get them to say yes, as opposed to trying to deal with a lender on your own. If you can get this type of agreement you need to get prepared for moving and handle the situation as a positive move towards getting you out of a situation that could get or could have become much uglier; instead of seeing it as a negative part of your life where you are losing your home.

You are being given a chance to sell your home under nearly “typical” conditions with minimal damage. You are also being given the chance to prepare for your move and your future. Of course not all lenders will agree to this type of sale and will instead want a Short Sale where they take ownership and you must move, but in either case it is a much more positive action than facing a foreclosure.

The Most Important Things to Remember

Act Quickly – waiting just makes your situation worse.
Contact an Agent/Realtorâ¢ as soon as possible for guidance.
Be open to various suggestions and options – chances are that any option will be better than foreclosure.
Ask questions, especially when it comes to programs put in place to help people just like you in the same position. Find out what governmental programs or even lender programs may be available to you.
Most of all try to keep a positive attitude towards it all even though it seems a dire situation it may end on a positive note.

The Home Inspection Process

John Rainville — Thu, 12 Apr 2012 21:20:00 GMT

As a buyer the home inspection process is probably one of the most important aspects of making the purchase of your home.

While you will be required to have a home inspection by most lenders; it is highly recommended that you hire your own home inspection and make the sale of the home pending your home inspection.

Each state handles home inspections differently but for the most part they are all generally the same. Check with your agent as to how inspections are handled where you are buying. As a buyer it takes only a few hundred dollars on average to have peace of mind and know that there shouldn’t be any sudden uninspected issues that pop up; at least in the near future.

The home inspection will give you a fairly extensive picture of the overall condition of the home you are looking to buy. Many lenders require the inspection but if not, make sure you don’t pass up this ability to get a professional look at the home to avoid any issues. Your agent can refer you to at least one company you can utilize for your home inspection. Depending upon the number of inspection agencies available in your area you may have to wait your turn to get the inspector to come do your inspection, especially during the busiest times of the season.

While the term itself is very generic, the home inspection can include various types of inspections within the inspection. You want to be sure what type of inspections you are getting with your inspection and if there is something you feel want included, be sure to ask for it when you order the home inspection. There are different types of inspections available to you.

Depending upon the state you live in the inspection could be a requirement by the state or by the lender. If it is not a requirement you want to be sure to get the inspection for your own peace of mind and as part of the sale make the inspection one of the pending items of sale. If the home doesn’t pass inspection then you have the choice of nullifying the sale or the seller has the ability to fix the items that won’t pass inspection in order to make the sale.

The Standard Home Inspection – This type of inspection is an overall inspection of the home and will usually include exterior surfaces, basement, crawl space, lawn & grounds, roof, electrical, plumbing, appliances, garage, any outer buildings that aren’t attached to the home (sheds, etc.), attic, fireplace or wood burning stoves, air conditioning (generally only central air & won’t include window units that may come with the home), and foundation. This is a standard home inspection and leaves ample room for additional types of inspections to be added on to and include with other types of inspections.

Many of the standard home inspection will also include other types of inspections while others will require that the following inspections be requested. Depending upon your area you may or may not want to include the additional inspections mentioned here. Generally, it’s best to be safe and have as much and as many of the inspections as possible to lower the possibility of any problems with your new home.

Termite Inspection – while in certain areas where termites are common this may be included in your standard inspection; other times it could be an additional inspection you order with your standard inspection. Termite inspection looks for anything that damages wood; this could include everything from organisms such as mold or fungus and any insects or animals. This particular type of inspection often varies by state as to what the inspection requires.

Well Inspection -If the home you are buying is not connected to a city/local water system then you will want to have the well tested. The well testing involves both testing the water with a sample sent to a lab and the flow of the water from the well enough to supply the home with water. This test may or may not also involve an inspection of the septic system also. If it does not include the septic system you want to assure that the septic system is inspected also.

Pool/Hot Tub Inspection – This inspection obviously only applies when you have a hot tub and/or a swimming pool involved with the sale. The inspection covers the overall condition of the items and assures that all parts involved are in working order. They also will conduct an inspection of any decks or attached areas that could become rotted or lose integrity due to the possibility of water damage or any other wood damage.

UST Inspection – This is an inspection of any underground storage tanks. These tanks could be anything from oil tanks for home heating and although not necessarily a part of this inspection it can include the septic tank. Most often the septic tank is part of your well inspection because you generally have a septic tank involved when you have a well; but make sure if you have a septic tank that it is either part of the well inspection or part of the UST inspection. You need to be assured of the integrity of these tanks because they are underground and are subject to the elements; often rusting, being worn from time and elements.

Generally these tests are done with a vacuum test that assures the tank is not leaking. Leakage, cracks, or any compromising of the integrity of the UST could cause everything from contamination of water to hazardous contamination of the grounds around it. Not only is there the safety factor but there’s the factor of having the expense of replacing these tanks, which can be quite expensive.

Lead Paint Inspection – A lead pain inspection is now, in many states, a required inspection for any home built before 1978. This inspection is a must if you have pets or children especially; but the lead in the paint can be harmful to everyone, including adults. We recommend that if the home was built after 1978, but within a few years of that date, that you take the extra time and money and have a lead pain inspection. The only time you really don’t have to worry about the lead inspection is the home is truly a newly constructed home or a home that was constructed and verified not to have used any lead paint in the construction process.

These are just a few of the additional types of inspections that can be conducted or may be conducted as part of your standard inspection process. There are so many more and your agent should guide you as to whether you need to have additional inspections added on to your standard inspection.

One type of inspection to consider is an Asbestos Inspection which determines if there is asbestos in any part of the house, inside or out. There is a Stucco Inspection which is for homes with stucco siding, generally found in the south west, and the inspection determines if there is any problem with the finish or if there may be any moisture issues with the stucco. Stucco can often experience breakage that can allow for water intrusion, resulting in problems with the finish and/or mold and fungus issues.

There is also an inspection designed specifically for Composition Board Siding. CBS is a paper based siding that is man-made to look like wood siding for less money. The condition of the siding can be compromised if there are tears, breaks, hits, dents, etc. that would allow for moisture to seep in and ruin the siding. Of course this inspection would only be needed on a home that has Composition Board Siding so it’s not included in a typical standard home inspection.

As you can see, there are many different types of inspections that can be needed, depending upon the area you live in, the year your home was built, and the type of home you’re buying. What can’t be argued is the importance of having a home inspection done on any house that you are considering buying. What’s just as important is to make the sale of the home dependent upon the results of the home inspection to assure that you are not going to be buying a house that may need thousands upon thousands of dollars worth of repairs or fixes to make it safe and/or livable.

Other Costs to Consider When Buying a Home

John Rainville — Tue, 10 Apr 2012 19:22:00 GMT

While it’s easy to remember the typical costs of buying a home such as legal fees, points, and so on there are actually quite a few other costs you may incur as you purchase a new home that you never thought of.

Costs that you could incur range from obvious things like cleaning costs to prep the home for moving in to costs that involve getting the house ready and decorated to fit your needs and wants.

Some of these expenses may be obvious to you and you’ve already thought about while others may seem obvious but in the rush and craziness of the entire home buying procedure you may not realize the extra money involved in making a purchase.

While it’s obvious you’ve thought about moving you may not have realized the costs involved with that move. If you’re lucky enough to have a friend or a few friends with trucks to help you haul your furniture and boxes that’s great; but don’t forget you’ll have to give them gas money for their truck too. If you don’t have anyone with a truck you can borrow you will have to rent a truck to haul your items in which will cost you not only the fee of the truck but a deposit and of course gasoline for the hauling truck or van you rent.

Along with transportation to move your items you’re going to need a group of friends or hire a group of professional movers to help you out. In either case there are generally costs involved. Obviously professionals have a fee they are going to charge and usually their fee will include the costs discussed above of a truck and gas. If you get a group of friends and family together to help you move you’re going to want to provide beverages and food to keep them nourished during the move.

Generally people will keep large cooler of cold water and/or soda on hand for the workers and at some point provide at least one meal during the move to keep them nourished and strong. Of course it depends upon what you decide to keep on hand. Either way you’re going to have to have some money kept aside for the friends or family that will help you move.

In some cases you may be moving into a condominium or an area that has a Home Owners Association which carries a monthly or annual fee. If these fees were not a part of your original paperwork, and generally they are not, you will have to be sure to have the money set aside to pay them for this month or depending upon how often they are paid even for the year. This can often be a substantial amount and if you’re not thinking ahead about paying these fees for the first month or at the beginning of the “year” or pro-rated year it can really be a not so thrilling surprise.

Luckily, in many cases when you have your services transferred the utility companies will often add the fees to your bill. However, if you haven’t had certain utilities in your name before you may have to pay a security deposit or connection fees up front because you don’t have an account set-up with them. These fees can add up quickly and be a surprise if you’re not expecting to have to pay to have gas, electricity, oil/fuel, internet, cable or satellite television, and water/sewer either connected or put into your name.

In some cases window treatments will come with the home but in other cases you may buy a home with bare windows that will need covered immediately unless you don’t mind living in a “fish bowl” type atmosphere. The less expensive way to start is to purchase window shades for each window but that can end up being a nice chunk of change, even if you buy inexpensive styles, once you realize how many windows you have to cover.

After you have each window covered with at least shades then you’re going to have to work on dressings such as curtains or other decorative ideas to dress the windows. While this is an expense that you may be able to put off and do a little at a time it can get costly

Remember you can start with inexpensive or even used dressings in the beginning and upgrade as you find the funds to decorate. Just make sure you realize ahead of time if you are going to have to provide shades and dressings for windows and which windows you’ll need to buy them for. In many cases it’s easiest to get the measurements, purchase and install the window dressings before the initial move in; not to mention it helps to make the house less visibly empty to those going by. A house with no window dressings is an obvious empty house that can invite vandals so you will want to dress the windows even before that big move day.

These few expenses are just the tip of the iceberg. Homeownership is not without costs. You will find that you’re going to need many different items as a homeowner that will cost you anything from a few dollars to a few hundred or so each time. Remember you now need lawn tools such as a mower, rakes, shovels, and such if you’ve never had to keep your own yard up as a renter. You may need to invest in a small tool box of tools you’re going to need to make minor repairs or updates to the house; things like a hammer, a few screw drivers, a utility knife, and various other utility tools.

While you don’t want to panic at the new costs you may incur, you definitely want to be prepared. All too often people use every last cent they have to make their original down payment and pay final fees a closings; leaving them literally broke until the next pay period. This could definitely cause some issues when you’re ready to move and in most cases you’re pretty anxious to get to that part of your life where you’re moving in to your new home.