October 31, 2006, 8:03 pm : Why You Should Make Repairs Before Selling Your Home
Filed Under: Real EstateDiscussion: C[0]mments
Unless you are the most detailed and disciplined person, your home has some problems with it. When you decide to sell, should you fix the problems first or make the buyer
Make Repairs or Not Before Selling Your Home?
The age old quandary for sellers is the condition of their property before they list it for sale. There are always a number of small defects or problems. Simply put, they need to be fixed. The question, however, is should you go ahead and do it or have the buyer do it by selling the home “as is?” Obviously, the choice is subjective, but it usually pays to make the repairs ahead of time. There are a number of reasons for this approach.
When you go to sell a home, you have to keep in mind that you are competing with other homes that have been listed. Buyers often see the potential in a property, but the need for repairs can sabotage this. The small problems consciously or sub-consciously tell the buyer the home has not been maintained. They often start to wander whether there are other problems they just haven’t found. When push comes to shove, they may take a home in better condition over yours. In short, making the repairs before listing the property is a good way to beat the competition and get a quick sale.
A secondary issue with the decision on repairs is control. Simply put, you are in a much better position to control the cost of repair if you do it before the listing. If you leave the process to the buyer, there is some risk that the buyer may come back and complain that much larger and more expensive repairs are needed. Once you give control of the repairs over to the buyer, you could end up seriously regretting doing so.
The final reason to do repairs prior to listing a home is the valuation of the property. You might be surprised to learn that a home in tip top shape is going to be valued higher than others in the area. Appraisers are human beings. A home that is in excellent shape generally is going to get a better appraisal than one that has problems.
At the end of the day, only you can decide the best course of action on repairs. In most situations, it makes sense to do them ahead of time.
October 28, 2006, 8:43 pm : Tips for First Time Home Buyers
Filed Under: Real EstateDiscussion: C[0]mments
Buying your first home is an exciting yet daunting experience. Here are several easy steps you can follow to simplify the process and get you on the way to finding your perfect dream home.
Inside the Home
Start by making a list of items within the home that are most important to you. Examples include number of bedrooms, number of bathrooms, kitchen features and other required amenities. This list should be things that you cannot compromise on due to your lifestyle. Second, make a list of items that things are “nice-to-have”. This list should be other desirable features within the home that you may compromise on later if necessary. As you view homes on the market, compare each home with your two lists. Using this approach, you will soon find a starter dream home that fits your lifestyle and family.
Outside the Home
When looking at a home, looking outside the home is equally as important as looking inside the home. If you have children, be sure to assess the school system of the neighborhood. Visit the school and talk with the teachers and principal. Research crime rates in the area as this may affect your lifestyle and the resale value of your home. Assess development work and future city plans to ensure you understand what will happen to the surrounding neighborhood and the extended area over the next several years. If the city plans to construct a water tower in the neighborhood, you need to evaluate the impact this tower will have on the resell value of the home before you consider making an offer. If you find a beautiful starter home sitting on a nice cul-de-sac that will be flanked by a new four lane street in five years, you probably want to look elsewhere. Further, if there is a nearby company that will be closing a significant office nearby in two years, home values could trend downward as people leave to find new jobs.
Consider Comparables
It’s also imperative that you look at recent home sales in the neighborhood. Evaluate the cost per square foot of each recent home sale in the area and compare this to the cost per square foot of any home you are considering. You should also consider supply and demand in the neighborhood or suburb. Supply is the number of homes that are for sale in the neighborhood you are considering. Demand is the number of people looking for homes in that area. Supply is relatively easy to determine, but demand is more difficult to assess. As supply increases and demand decreases, prices in the area trend downward. Conversely, as demand increases and supply decreases, home prices trend upward. Location is one of the most important factors to consider as you think about the future value of your home. Great locations are in high demand, but you can find affordable homes with good future resale value if you are patient, understand comparables in the area, and consider supply and demand within the neighborhoods.
Get Expert Advice
It is highly recommended that a first time home buyer use a real estate agent. An agent has the professional knowledge and experience to find your dream home. They have access to market and home comparable data that is otherwise difficult to obtain. A good real estate agent can help you assess both supply and demand for homes in the areas you are considering. They also will have developed contacts over the years that they can share with you. Whether you need a plumber, inspector or appraiser they will be able to put you into contact with individuals they trust. As your agent, they are acting on your behalf and will protect your interests.
Use a Mortgage Broker
Many couples and individuals rent because they do not think they can qualify for a mortgage or come up with a sufficient down payment. In most cases this is a myth. Most lenders have loan programs tailored specifically for first time home buyers, those with little cash down and those with less than perfect credit histories. Seek out a good mortgage broker. They will have access to mortgage programs from multiple competing lenders. While you may have a great relationship with your local bank mortgage lender, working solely with him or her may limit your capabilities and the loan programs offered to you. Your real estate agent should be able to recommend a good mortgage broker. You can also search online.
October 27, 2006, 8:42 pm : Considering Landscaping When Buying a Home
Filed Under: Real EstateDiscussion: C[0]mments
When shopping for a home, buyers often look for properties they can spruce up with landscaping that fits their taste. This makes sense, but make sure it is possible.
Considering Landscaping Whey Buying a Home
It is a rare day indeed when you pull up to a property for sale and think it is perfect. Every person has different tastes and these tastes are reflected in a variety of ways. While the style of home is a big issue, the landscaping for a property comes in close second. Simply put, most people prefer their own “look” and tend to form a mental vision of the home with their style of landscaping. This makes sense on many fronts, but can cause problems on others.
When we talk about landscaping for a home, we are using a broad version of the term. It can include everything from the plants used to adding decks and so on. This definition is being used because many real estate investors use landscaping as a method to flip rental properties. One of the oldest investment strategies in the book is to by a small apartment complex with no landscaping, spruce it up with landscaping, new paths and then sell it for a very nice profit. Since you will eventually be selling your home, you should take this approach as well.
When visualizing a home with your improvement ideas, the first thing to consider is whether you will be allowed to make the change you like. Many homes these days are within developments and that means rules, rules, and rules. Many developments have strict rules regarding landscaping and additions to properties such as hot tubs, decks and such. These rules all tend to go one way – you can’t do anything! Before you rush off to make an offer on a property, make absolutely sure you understand what you can and cannot change.
A classic area where landscaping also becomes an issue has to do with views. When it comes to views, it is all about creating them and getting them blocked. If you are looking at a home that would have tremendous views if you cut down those large trees in the backyard, you might be surprised to find out that local restrictions prevent you from doing so. Obviously, you want to know this before buying. On the flip side, the fact a home has a view today does not necessarily mean it will next year. You need to ascertain if the properties between you and the view have the right to build vertically. Nothing kills the equity in a home more than buying when you have a view and then trying to sell when you don’t.
At the end of the day, it is important to evaluate the potential of homes you are considering buying. That being said, it is also important to understand how much you can and cannot change them.
October 26, 2006, 8:47 pm : Considering Windows When Home Buying
Filed Under: Real EstateDiscussion: C[0]mments
Purchasing a residence is very much a visual experience. One tends to look for overall aesthetics and usability, but it is important that you focus more closely on certain aspects.
Considering Windows When Home Buying
In real estate, the term curb appeal is bandied about frequently and rightly so. Curb appeal refers to visual appeal of a home and highlights a very important aspect of the buying process. Simply put, many people have an emotional reaction to a property and choose to make an offer or not make an offer based on that emotional tie. While you obviously want a home you find attractive, paying close attention to the details is extremely important.
One of the tricks to evaluating a home is to closely inspect the windows. They say that eyes are the paths to a person’s soul. Windows serve the same function when it comes to homes. Windows can tell you the overall quality of a home based on their type and construction. They can also give you insight to how the home has been maintained by focusing on their current condition. It is a rare day that windows on a property do not reflect the overall quality of the structure.
When looking at windows, you want to focus on a number of things. The first is the type of window that exists, to wit, single or double pane. Double pane windows offer far more insulation properties than single pane. Unless the area of the country you are living in is perpetually hot, such as Arizona, double pane windows are signs of quality. Also ask to see the documentation on the “R” rating of the windows. This term refers to the ability of the window to act as an insulator with a rating of 7 being excellent.
If you are buying a home that is not new, the maintenance provided by the previous owner is an important aspect to take into account. Windows are good place to evaluate this subject. If the windows have screens, are they in good condition and have they been washed? Do the windows slide open and closed easily? Do they canter when they slide, to wit, catch on the top and bottom as they move across? Is there a seal around the tracks and what condition is it in? Finally, do the windows seal when they close? If the answer is no to any of these questions, issues with maintenance should be raised. Specifically, one has to ask whether the home was maintained throughout the period of ownership or just when the owner tried to get the home cleaned up to sell it.
While it is easy to fall in love with a home at first site, it is vital that you pay attention to the details of the structure. Inspecting the windows closely is one way to do that.
October 25, 2006, 8:43 pm : The Benefits of Getting a Professional Home Inspection
Filed Under: Real EstateDiscussion: C[0]mments
What is a professional home inspection?
Professional home inspections are becoming an important factor for everyone seeking or planing to buy or sell a home. A home may look to be in very good condition but if we go through the things that can’t be seen with the eye we may find issues that need to be addressed. The need of a professional home inspection is increasing day by day because of increasing litigation due to unknown or undisclosed defects.
A normal individual is not supposed to be the expert of all these technical details. This leads to the need a professional home inspector who inspects the home. A typical home inspection will take several hours to complete. If testing is being done for things such as mold, radon, etc it could take several days to get these results back from the lab.
There are many advantages or benefits to hiring a professional home inspector, some of these benefits are:
Benefits for the buyers
With a professional home inspection a buyer can calculate the most realistic price of the property he is going to buy. However, in most cases, the inspection is done after negotiating the price. The home inspection results can be used in negotiating repairs or if the repairs are extensive a buyer may want to back out of the transaction if the contract allows it. The buyers can compare the features and drawbacks with the similar properties available in the same condition.
Ridding the buyer from the stress of legal or documentary formalities as the inspector will provide a written report.
A Buyer can better guess the possible lifetime of the structure; this will enable him in planning the prospective use of this structure.
A buyer can better understand the impact of any unknown natural disaster on the home structure.
This could also save hundreds of dollars by making the buyer aware of repairs needed at the surface, fitting, flooring or roof of the structure as well as electrical and plumbing.
It satisfies a buyer by familiarizing them with all the maintenance and repair details, well in advance.
Benefits for the sellers
A professional home inspection gives the sellers a better idea about the current condition of their property. This is most important in cases where seller has not lived in the house and isn’t very familiar with it. Such as rental property, inherited property, etc.
With the better understanding of the main features of the home seller can bargain more confidently about the pricing by making any necessary repairs prior to putting the house on the market.
Gives you confidence of well-trained, professional helping hands with you.
October 24, 2006, 8:41 pm : Purchase Cheap Real Estate From Public Auctions
Filed Under: Real EstateDiscussion: C[0]mments
If you are looking to acquire your own home or invest in real estate property, you might want to consider checking out public real estate auctions in your area. In auctions you will usually find foreclosed properties that you may get at lower than market value if you are the highest bidder.
You must however keep in mind that these are previously owned properties so you may not actually be sure about the state of these properties until after you’ve purchased them. That means that before participating in public real estate auctions, you must have the correct set of expectations.
Remember that if you have gotten the property at the auction for a price way lower than market value then you might have to be prepared to do some investment in refurbishing the property. There also may be legal ramifications when you’ve purchased properties from real estate auctions so it is advisable to consult a real estate lawyer for instances such as these.
Now, if you have made up your mind about participating and purchasing from real estate auctions, the next step is to decide which real estate auctions to check out. The U.S. government, through its Treasury department usually holds hundreds of public real estate auctions a year on properties that have foreclosed.
These means that these are real estate properties that have been previously owned and for one reason or another, its owners have been unable to continue paying for the property, which has caused it to foreclose. On some instances, the properties at real estate auctions from the government are seized properties due to criminal causes.
To check out on these real estate auctions by the U.S. government, you can look at listings from the Department of Housing and Urban development (HUD), or even IRS foreclosed properties, and properties from the General Services Administration (GSA). There are sure to be public real estate auctions in your area where you can register to bid and purchase that dream property that you have been hoping for.
October 23, 2006, 8:57 pm : How to Buy Cheap Government Seized Houses
Filed Under: Real EstateDiscussion: C[0]mments
Countless assets owned by private entities are being seized by the government every single day. These assets range from cars to boats and furniture to homes.
Among these things, nothing has more value than government seized houses. Almost all the other items depreciate in value; unlike government seized houses which actually increase in market price over a period of time. It is therefore a good idea to include government seized houses in one’s options in buying a home.
Buying government seized houses is advisable not only to people who want to acquire a home, but to people who want to make good money out of reselling houses.
Here are some tips that can help you in finding your ideal home among the numerous government seized houses out there.
1. Consult The Experts
Always consult with an accredited licensed real estate broker when you are planning to buy from the many government seized houses. While you certainly have to incur commission expenses if you make use of their expertise, the good thing is you will have a worry free purchasing transaction.
Besides, the total acquisition cost of government seized houses including the broker’s commission is still not that huge when compared to buying a new house.
2. Seeing Is Believing
Check out the government seized houses that are on your list. Remember that government seized houses are sold at bargain-based prices because the government does not normally repair or renovate them before being floated in the market.
The government has no disclosure policy as to the condition of the houses. And so the structural and aesthetic order of the house could be found wanting. So beware!
3. Learn The Ropes
While looking at government seized houses is a good way to find the house of your dreams, it can also be a good source of income.
Many people have raked in a fortune by just buying government seized houses, spending a little on repairs and improvement, and finally, selling the newly renovated house for a hefty profit.
Largely, the government has to contend with rising deficits, hence, its need to immediately dispose of the things it has confiscated or seized. The logical strategy is for the government to drive down the prices particularly of government seized houses.
So if you take advantage of this concept, you can actually earn a lot by reselling sequestered properties you won at auctions.
Truly, a road to take when you are looking for your dream house is to scout for the latest auctions for government seized houses. Good luck on your house shopping!
October 22, 2006, 9:01 pm : How to Buy a Cheap VA Repossessed Home
Filed Under: Real EstateDiscussion: C[0]mments
A VA repossessed home is actually a home that has been foreclosed due to the owner’s failure to pay the loan.
Contrary to the other types of foreclosure, VA repossessed homes were previously possessed by members of the military or a veteran in the United States. These homes are actually insured under the provisions of the Department of Veteran Affairs or VA.
With steep prices on newly built homes today, buying a VA repossessed home can actually give you more benefits than you can imagine.
Here is a list of some of its advantages:
1. Cheap at its best definition
Nowadays, people can define cheap as something that is way below the current price in the market. With VA repossessed homes, you get a better definition of the word cheap.
That is because VA repossessed homes are usually sold in the market by as much as 50% below the usual price of houses in the market.
The reason behind this is that Department of Veteran Affairs would like to dispose VA repossessed homes as fast as they could, hence, the lower price.
The main purpose here is to get the money back not to actually earn additional profits from VA repossessed homes.
2. Quick home equity
With VA repossessed homes, you get quicker home equities. This means that you can start reaping equity right away because the values of these types of houses are actually less than the actual price in the market.
Home equity refers to the current value of a particular home where the total debts indexed against it are subtracted.
You can start building your home’s equity by repairing some of the much-needed repairs. In this way, you can present your VA repossessed home as something worth reaping profits.
3. More benefits
One of the best things about buying a VA repossessed home is that you can get all the benefits that veterans are enjoying, and to think that you are not even a member of the military or a veteran.
With this, you can even start using a VA repossessed home immediately even if you do not have the money yet because one of the benefits that you can enjoy is the no-money-down advantage.
All of these things are boiled down to the fact that buying VA repossessed homes are not just great bonuses to life’s simple pleasures. These homes are definitely worth evaluation especially if you really wanted to have a house of your own but cannot financially buy a new one.
October 15, 2006, 10:56 am : Home Sales Slack Cause Loan Fundings Fall
Filed Under: Real EstateDiscussion: C[0]mments
Here’s an interesting article from Businessweek. It’s talk about the loan fundings dropped 22 percent in September. I think it’s a sign that the home sales already slack. The real estate is a tight market. Now the house price are very high and most of people cannot afford the house, especially youngsters.
Here is some posts about the real estate market.
Realtors is Dying in Boom Real Estate Market
October 10, 2006, 9:31 pm : How to Sell Luxury Home
Filed Under: Real EstateDiscussion: C[0]mments
Selling a luxury house is a kind of art. The luxury house buyers are wise and gentlemanly. They look for a house which can equal his identity. he or she doen’t care the price, but care your creativity. They must make sure your interest is similar with him before they buy the house. Then they will comfortable inside the house.
Usually, the luxury house buyers have similar requirements. Such as elaborate security systems, gourmet or designer kitchens, home theaters.