Real Estate Information Archive

Blog

Displaying blog entries 1-6 of 6

Financial Stretches for Buyers

Friday, December 20, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

Many prospective Home buyers, at one time or another, fall victim to the "kid-in-a-candy-store" mentality when they find the home of their dreams is available but happens to be priced just a little outside their price range. If you find yourself in this situation, there are some things to contemplate.

Sometimes financial stretches for buyers make sense. This is especially true when you consider that each additional thousand dollars on the overall Home Price equates to a mere $100 - $200 extra on the monthly mortgage payment.  Not only that, but Buying a nicer, larger home will often save you time and money in upgrades in the following years. This means that you can spend your years living in your home instead of working on it.

For a vast majority of people, the purchase of a new home is a long-term financial investment. So if you plan to be in the home for many years to come, then stretching financially may be a great buying strategy for you. 

However, everyone's financial situation is different and sometimes financial stretches for buyers are not a good idea.  For instance, if you are not planning on being in the home for more than 5 years, then you could lose a lot of money in the up and down cycles of the housing market. Also, if you do not have much job security for one reason or another, then you may not want to stretch to a more expensive home.

Financial stretches for buyers can be a calculated risk that pays off well over time. But if you’re a buyer with financial uncertainty, then you’re probably better off not pushing yourself to your financial limit. Talking with an experienced real estate agent is your best step for working out a buying strategy that works well for you.

Add Comment

Curb Appeal

Monday, December 2, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

One of the first things to think about when you are selling your Home is curb appeal. That is the magic that draws all eyes to your home when potential buyers are passing by. You want them to stop and take a long hard look as they slow down to pick up a flyer. Curb appeal is that critical element that brings your home to the front of the line. Here are a few tips to make sure your home invites them back:

An attractive entryway – Repainting or replacing the front door with a splash of color is like an engraved invitation that says, "Come on in." The path leading to the door and the lighting above or to the side both add attractive details that welcome visitors. Make sure the doorknob and hardware are painted or polished to complete the package.

Pristine yard – Whether your home has a carefully manicured lawn or desert landscaping, the key is a neat, trim exterior with no weeds, debris, or clutter of any kind. Nothing says "fixer–upper" like needless mess. Since many buyers enjoy creating their own gardens, many sellers find that potted plants provide a finished look to complete a positive vision without making permanent changes to the landscape.

Repair and update – Simple hardware replacements can bring a house forward in time by years. Shiny upgrades are inexpensive, attractive and send a message that the home has been well–maintained. Make sure all minor repairs are completed before you sell your home.

Add artistic flair – Fountains, bird baths and wind chimes all work to make the exterior pleasant and attractive. These are the finishing touches that make houses feel look unique and homey.

Shutters and accent trim – Shutters help control light and ventilation, as well as providing a measure of added security. They add another level of visual interest that stands apart from the rest of the neighborhood.

Gutters and downspouts – Replacing these and any fascia that are bent or peeling creates a visual frame around the front of the house that looks new.

When you think you are ready to list your home, take a few photos from different angles to help you spot details you might have missed. Be prepared to make more small changes your real estate agent may suggest to ready the home. In today's market, curb appeal is more important than ever before to help you get your asking price quickly.

Add Comment

Home Inspections

Monday, November 18, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

As you navigate through the process of Buying a Home, you will find that one of the more critical components is the home inspection. To understand the value of home inspections, buyers and sellers should both be aware of what they do and do not include. While there may be some variation from state to state, home inspections typically do not look for asbestos, radon gas, lead paint, toxic mold, or pest control. If the buyer has concerns, professionals specifically licensed for each must address these issues. The focus of the typical inspection is three-fold: structural, mechanical and electrical condition of the house. The goal is not a complete laundry list of necessary repairs, nor an appraisal of worth. It is an unbiased evaluation of the home’s condition.

Step One

The process begins with a visual examination of the front of the home from a distance sufficient to view the entire exterior surface. Starting at the top and systematically moving down the wall, the inspector will review the roof, the chimney, gutters, fascia and soffits. Next, he will look at windows, doors, porches, decks and all of the structural details down to the ground. He will consider the grade or slope of the surrounding ground, inspect flowerbeds, walkways and driveways. Moving closer to the building, he will continue the home inspection by investigating details that caught his attention. Repeating the process with each wall, he will work his way around the house.

Step Two

Inside the house, he will continue the home inspection starting at the lowest level and moving up. The review starts with the floor, moves up the walls and across the ceiling. Then he will check each appliance in the room. He will open each door and inspect closets and storage areas before moving to the next room. He will look at floors, heating sources, electrical panels, outlets and switches. He will look for water damage including stains and sagging. He will check all plumbing fixtures and visible pipes.

Step Three

The home inspection will follow a checklist to insure that it is complete. Then the inspector will provide a formal report of his findings. It will then be up to the buyer to accept the property as it is, request repairs, request reduction of price to cover repairs, or decline the property. Your real estate agent will work with you to help you with your negotiation and decision.

Add Comment

The Difference Between Pre-approval vs. Pre-qualified

Monday, September 30, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

In a meticulous, often confusing process like Home Buying, it's vital for you to understand at least the basic terms. Sometimes real estate professionals and loan officers will use terms like pre-approved and pre-qualified interchangeably when talking about a home loan. They are not, however, the same thing.

Pre-qualification is an estimate of how much money a lender would be willing to loan you, based on a general assessment of your relevant financial information, such as employment status, overall income and estimated value of assets.

The pre-approval process requires the lender to perform a more in-depth investigation and evaluation of your creditworthiness, culminating in a tentative commitment for mortgage funding up to a specific amount.

Here are some more details on each of these to further distinguish these similar but not synonymous terms.

Pre-Qualification

This process begins with you either meeting face-to-face with a loan officer or talking with one over the phone. You'll provide basic information about your personal credit and finances, including any outstanding debts, total income and a potential down payment amount. This data is then used by the lender to provide you with a written estimate of how much you could comfortably afford per month for a mortgage.

There is neither a commitment nor cost associated for either party in a pre-qualification procedure. Its primary purpose is to give you a realistic perspective on how buying a home will impact your month-to-month household budget.

Most real estate professionals will tell you that it's best to make pre-qualification one of the very first steps in your home-buying journey, even prior to looking at houses.

Pre-approval

In order to get a pre-approval, and the tentative commitment that comes with it, you must provide your desired home loan lender with the actual documentation (usually in paper form) of your financial details (assets, debts, income, etc).

You can expect to pay a fee for this part of the process, mainly to cover the lender's expenses incurred by running a credit check, as well as verifying your employment data and financial records.

Your pre-approval is then officially acknowledged via a commitment letter containing the amount the lender is willing to extend to you for your new home purchase.

A pre-approval is neither a guarantee of future mortgage loan approval, nor is it a legally binding contract, meaning you still have the option of choosing another lender.

Add Comment

10 Hardcore Staging Tactics

Tuesday, October 30, 2012
by Tom Stachler,ABR,CDPE - Group One Realty Team

Staging Tips for Sellers

Looking to get your Home ready to sell?  Check out these Tips for preparing your home including 10 Hardcore Staging Tactics used by professionals.  

Call us with any questions or to provide you with a FREE full service market report including comparable pricing for similar recently sold properties.  You can get started by clicking here after reviewing the link below.  

Click here for 10 Great Staging Tips for Sellers preparing their homes

Add Comment

Ways Buyers Can Save Money at Close

Wednesday, January 9, 2008
by Group One Realty Team - Real Estate One

Seller Concessions:

Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).

 

In addition to concessions, sellers can pay for the following:

1. Seller can waive tax pro­-rations from the buyer on the purchase agreement.

2. Disburse Use and Occupancy fee's (if any) to Buyer at clos­ing.

3. Pre-­pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.

Conventional

Down Payment

Allowable Concession

0 - ­10%

3%

11 - ­24%

6%

25% or more

9%

FHA and Non­-Conforming

Down Payment

Allowable Concession

3%

6% for costs/3% for down­payment (through 3/31-­2008)

VA

Down Payment

Allowable Concession

0%

6%

Investment Properties

Down Payment

Allowable Concession

All down payments

2%

Add Comment

Displaying blog entries 1-6 of 6

Syndication

Categories

Archives