First Home Purchases
Real Estate Listing Contracts 12/24/2010
A listing contract is an agreement between you and a licensed real estate broker. The listing - as it is commonly referred to in the real estate industry - authorizes the broker to represent you in the process of selling your home. There are several different types of listing contracts, but very few of them are used. The most common one listing is the "Exclusive Right to Sell". But you'll find that there are a number of other types of listings, allowing you to choose the level of authorization to give to your agent. Here are some of those listing types: Open Listing A non-binding, implied (or handshake) agreement pursuant to which a home seller verbally authorizes a real estate broker to show his/her property to interested and qualified buyers with the mutual understanding that if one of those buyers make an offer on the property and subsequently signs a contract of sale (or purchase agreement, if you like) and closes on the transaction, the home seller will pay the real estate broker the commission they mutually agreed upon. This type of listing contract and is used by home sellers who wish to sell their own home while working with several real estate agents. One-Time Show This type of listing contract is pretty much the same as an open listing. It’s generally used by people trying to sell their own home and involving an agent for the home showings. The listing contract identifies the potential buyer and guarantees the agent a commission if that buyer buys the home. Just like open listings, this type lacks concerted marketing efforts and can cause an inexperience home seller to get into a sales contract with a buyer who may not qualify for a real estate loan to complete the purchase. Exclusive Agency Listing The terms of this type of listing contract is implemented pursuant to a signed document and permits the seller to find a buyer using his/her own resources (e.g. paid advertising, yard signs, prospective buyer interviews, etc.), effect a sale of the property and close the transaction without obligation to pay the broker a commission. What the exclusive agency listing does not permit is another broker selling the property without a commission paid to the original broker. In the event another broker sells the property, the seller will be obligated to pay a full commission to both brokers. Exclusive Right to Sell Listing The most popular type of listing with sellers and brokers is the exclusive right to sell. This contract provides authorization for your broker to do whatever it takes to sell your house. For obvious reasons, this is probably the type of contract where you can expect the most incentive from the agent – a good marketing effort can take place here, and the homeowners’ work is much reduced. Before you choose, always make sure you know every type of listing contract available to you. Keep in mind how much effort you would like to contribute to the home selling – this is often what distinguishes the listing types along with the amount of money you are willing to pay out for commission(s). Discuss the pros and cons of each type of listing contract. Remember, a listing contract is your first legal step in selling your house – take that step carefully. Add Comment Surviving a Down Real Estate Market 11/09/2010
Real estate has been regarded as one of the safest investments for quite some time. Despite the relative safety of real estate investments; however, there remains the possibility that the real estate market can fall like any other investment. Over the long term, real estate still remains relatively safe simply due to the fact that the population of the world continues to increase while land is a limited resource. When there is an occasional downturn in the real estate market, it is important to recognize certain strategies which can be used in order to keep a real estate investment from becoming a complete loss. The first thought that pops into the mind of many property owners when they realize the market has started a downtown is an attempt to sell the property as quickly as possible before the market grows worse. In reality, many investors have found that it is often better if they can manage to hold onto the property, take out the survival gear and prepare to outlast the market downturn. While the market might certainly dip lower before it rebounds, historically it always does come back. By selling the property during a down real estate market, you put yourself in a position of sustaining a loss for sure. If you are able to keep the property afloat you'll more likely to be a much better position of being able to make a profit on it when the market bounces back. Of course, holding onto a property during a down market sounds fine in theory but it can often be much more difficult in practice, that's the reason for dusting off the survival gear, pull out your plan "B" manual and dig in for the long haul. One plan "B" step is to rent out the property in order to attain a positive cash flow. Another is to refinance the property if interest rates are favorable so that you can tap into the equity for enough of a loan that will sustain the property maintenance in case of while you wait for the market to turn around. In addition, it is important to make sure that all of your accounts are correct. This is a time when you must pull out all the stops by utilizing all the benefits of home ownership to carry you through, because Plan "C" or "D" is not where you want to be. Many investors find they are not taking full advantage of all the tax benefits offered to them. Consulting your professional tax adviser in order to locate legitimate tax advantages you may have missed would certainly be a step worth taking under these circumstances. You may well find that the write-offs that are available to you could provide the assistance you need to hold onto the property until the anticipated market bounce back. If you find that you are facing a foreclosure on the property, then the best option would obviously be to go ahead and sell the property (Plan "C") in order to attain as much profit as possible rather than fall too far behind and sell at a complete loss (Plan "D"), file one of the chapters or lose the property to foreclosure (not in the plans). In this type of drastic situation, the key is to look for ways that you can make the property as valuable as possible. Selling real estate is not like selling any other type of product. When the product is a home or building there are elements involved that are not found when selling other products. Only in real estate must you deal with tenants. If you have had the property on the market for an extended period, it is important to look at why it has proven difficult to sell the property. You might consider making some changes in order to make it more desirable. Ultimately, holding out during a down real estate market, a market crash or crises like the one experienced in 2008, involves remaining calm and trying to avoid acting on emotional impulses. Making hasty decisions based on fear (dread?) will often cause you to take steps you would likely regret once the market bounces back. Before you take any action, make sure you have carefully considered all your available options. By doing so, you may well be able to turn a dip in the market into a big return once the market starts the climb back to peak levels. How and When Creative Became Destructive Is conventional real estate financing considered creative? A Conventional mortgage loan is considered the traditional type of mortgage loan and is the most straightforward type of residential mortgage available; It is the mortgage against which most other mortgages are measured, meaning that conventional mortgage guidelines are adhered to by every banking institution and licensed lenders that approve loans for real estate financing pursuant to Fannie Mae and Freddie Mac guidelines. These guidelines required that a borrower seeking approval for a conventional mortgage loan must document the ability to manage a 20% down payment (20% of the purchase price or appraised value, whichever is less); Enough monthly income, 28% of which must support payments of Principal & Interest plus Taxes & Insurance (PITI) and 36% must support a total monthly payment when all other monthly revolving & installment debt payments are added to PITI (e.g. credit cards, student & auto loans, etc.), excluding utilities; Creditworthiness (evidenced by a minimum credit score of 720). You could say that mortgage loans with guidelines other than the conventional (Fannie Mae & Freddie Mac) standards are creative real estate financing programs, but conventional financing would not considered as creative real estate financing. Even before the modern-day conventional loan existed in its present form, steps taken by potential homeowners requiring real estate financing to complete their purchases were long and hard; fraught with sacrifice and many would-be homeowners sustained great loss due to the lack of reasonable mortgage lending terms. Based on a Rob Alford article on the History News Network (HNN), a George Mason University website, "Fannie Mae was created in 1938 as part of Franklin Delano Roosevelt's New Deal. The collapse of the national housing market in the wake of the Great Depression discouraged private lenders from investing in home loans. Fannie Mae was established in order to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing". Non-FHA mortgage terms prior to Fannie Mae Mortgage required a borrower's down payment of 50% of the purchase price to qualify for a five year "Interest Only Balloon" mortgage loan. These terms were made available through private lenders, many of whom discontinued lending due to the collapse of the national housing market. Fannie Mae and later Freddie Mac are GSEs (Government Sponsored Enterprises) that "...controlled about 90% of the nation's secondary mortgage market..." and are the primary purchasers of conventional mortgage paper despite having been taken over by the federal government (conservatorship) in September of 2007. Other than conventional real estate financing programs, there is currently one other popular loan program that has been insuring mortgage loans since being created by congress in 1934. Read more... Housing Consumers Embrace Renting 10/07/2010
More and more housing consumers embrace renting in recognition that, at least for right now, they are better off - financially - by renting instead of buying. This is certainly a departure from the past when most consumers were taught and maintained the belief that the best financial option would be to buy their own home rather than rent a home (or an apartment in a home) so that their money would go toward creating and building equity in the home for their retirement years, children's college or a number of other worthwhile and necessary expenses they would incur. Today that is no longer the case due to the astronomical loss of equity in real estate properties (both owner-occupied and investment), rents have continued to rise in many areas across the country; But even in these occurrences consumers are still finding they are often able to rent for less money than what they would pay for a monthly mortgage payment, house maintenance and repairs, rising utility costs (especially home heating fuels) and the other home ownership expenses on a comparable property. Not to speak of uncertainty in the real estate market that threatens anticipated equity. In some cases, renters are able to save between 40% and 50% by renting instead of buying in today's market. One of the reasons for this is the rapidity of which property values rose a few years ago. Today, buyers who snatched up those homes without blinking have discovered they must now sell. The problem? They need to sell the homes at the prices at which they purchased them two to three years ago to recoup the balance they owe on the mortgage and are faced with mortgage balances that are higher than the value or price that they could reasonable sell for. This condition has taken on a new definition known as "underwater" and for many of today's homeowners there is no way out, so renters (would-be buyers) are just not willing to risk the extra money it takes to be a homeowner in an uncertain market. Even renters who are able to qualify for mortgages just do not feel as though they are getting enough assurances from market economist and other professionals and experts to risk their hard-earned money on a home purchase in today's market and would-be home purchasers who are uncertain about their jobs find themselves in an even greater dilemma where housing options are concerned. Of course they have to live somewhere, so the easy decision where monthly housing expenditures are concerned is to rent. As a result of the shifting market, many experts are quick to point out that today the market is no longer a seller’s market and it is not really a buyer’s market either. Instead, it has become more of a renter’s market. Other renters are holding off on the idea of buying because they are concerned that prices have not yet hit the lowest point. They are primarily concerned that if they purchase a home today it may not be worth the same amount just six months from now. They feel it is far more prudent to wait and see exactly where the housing market will land before they consider buying a home. Other renters in some specific areas are concerned about hurricane seasons. Few have forgotten the hurricane season of just a few years ago that devastated many areas. Homeowners in those areas, especially those without insurance, have yet to recover. While some areas are experiencing a deficit in supply of rental properties, in other areas homeowners have recognized the wisdom of holding off on selling their homes. They, too are reluctant to sell their homes now when it seems more prudent to wait and see when the market will stabilize. To help make ends meet, many of these homeowners are willing to rent out their homes to the scores of renters lining up to take advantage of the opportunity. Even homes that are on the market for sale are also available for rent. While renters must accept the reality that the home in which they are living must be available for showings, they still feel the trade-off is quite worth it. Would-be investors who attempted to get in on the quick profit potential of flipping homes have also discovered that it makes more sense to rent out their properties right now instead of trying to selling them. In some cases, investors are discovering they simply do not have any other options when they must meet mortgage payments and other home ownership expenses every month and are unable to sell their properties at a reasonable profit. In some cases, this means renting the properties at a loss, creating a negative cash flow. In fact, this situation has become so much of a problem that landlords in certain markets are finding they must cut rents in order to create even a small amount of cash flow. These investors have quickly discovered that it is far better to rent right away at a loss than wait several months to try and attain the amount of rent they really need in order to break even or make a small profit. Although landlords are often upside down on most of these properties, renting them out has proven to be the safest method; At least for now. How to Remain Competitive in a Down Market 09/19/2010
The real estate market was hot for so long (1998 to 2007) that many agents who entered the real estate industry during this time period did not have a clue of what a buyer’s market was. Until the recent real estate and mortgage crash, the market definitely favored sellers. Homes sold quickly and in many cases homes sold for prices above what they were listed for. As a result, buyers learned they had to move quite quickly. In fact, it became simple routine for buyers to waive inspections and other basics in a bid to move forward as quickly as possible. These buyers were well aware that it was common during this time for sellers to receive multiple offers, which In some cases escalated into a bidding war. As the real estate market continued to drop, however, the rules continued to change and buyers are now weilding a heck of a lot more power. Whereas they once wanted to move quickly, they now have the luxury of taking their time. In order to succeed in the current market, agents must be certain they understand the elements of this market. While it was quite possible to make a large sum of money by simply showing a few properties back when it was a seller’s market, an agent must now be prepared to face the realities of existing market conditions in order to survive. One of the realities that must be dealt with is the fact that current market homes will typically take at least six months to sell and in some cases, it may take much longer. Compare this to homes that sold in a matter of hours or days when it was a seller’s market, and it quickly becomes apparent how much the market has changed. There are steps that can be taken combat this problem, including steps taken to ensure that properties have the most exposure possible, including web exposure. Consider offering virtual tours and using multiple, high-quality photographs. You might also think about increasing commission fees to buyer’s agents who make your listings a priority. In addition, as you face the realities of current market conditions, you must also make sure that your seller clients face it as well. Many sellers continue to operate under the idea that they will be able to achieve the same level of prices that were typical not that long ago. It is critical that you gently introduce sellers to the reality of the current market. At any given time, the current market has about a six month back load of housing inventory. Even in markets which have not experienced as much of a downturn as other markets, it is essential for properties to be priced accurately or they will usually remain unsold. As the market shifts, you may also find that you need to shift your marketing plans. Specifically, it should be understood that since most areas are now in a buyer’s market, more time will need to be given to developing buyer leads in order to liquidate the bulk of inventory that is currently on the market. This is not to say, of course, that you should not take new listings to balance out those listings needed to bring in new buyers as well. One great place to look for buyer leads, especially first-time buyers, is actually rental properties. During a down market, there are usually more renters than homeowners. Most people do not rent out of choice. If they can see that it is to their advantage to buy and can be provided information that will help them in that respect, they will choose home ownership over renting. One disappointment sellers and their agents must avoid is entering a contract to sell their home and because of the fragile economy and dismal unemployment situation which resulted, find that the once-qualified buyer no longer qualifies due to a job loss or other disruption in earnings necessary to obtain mortgage financing. This is also a very real possibility. Real Estate Attorney 08/31/2010
The real estate attorneys Real estate industry is not expected to continue the decline of the last two years, although the most recent decline in home sales (27% second quarter 2010) may seem to contradict this statement. However, despite present market conditions, home sales will bounce back which in turn will have a positive effect on the values which should help to cure the "underwater" condition many homeowners currently suffer. It has always been a long-held belief on mine that people must live somewhere; In their own homes or rental homes/apartments. The US is a country of immigrants and as such allows anywhere from 700,000 to 900,000 legal immigrants into the country on an annual basis and that is not going to change anytime soon. As the population growth rate continues upward, so too will the need for housing. Having said that, the business of real estate attorneys will grow in direct proportion to the increased demand for housing. Although real estate attorneys will maintain active and successful practices whether the real estate industry is booming or not, it should be noted that a law office may have to hire additional help during boom real estate markets. Since shelter is one of the prime requirements of man, there would be property buyers and property sellers in any case at all times (and real estate attorneys would always be in demand). There are many different ways in which people utilize the services of real estate attorneys. Let’s take a look at what these different ways are: 1. Property dispute: This is one scenario where real estate attorneys are obviously the most involved. Not only do they try to get these property disputes resolved (by litigation or otherwise) but also help to get rid of the property (in certain cases) by selling it off and using the amount received for settlement. 2. Tenancy disputes: A real estate attorney also helps in resolving the disputes between tenants and landlords. 3. Settlement of property on account of death: Sometimes real estate attorneys also handle the property of the deceased. Here they sell off the property for settling it among the heirs. 4. Divorce settlements: Again real estate attorneys help in the settling of the jointly owned properties and the divorce settlement in general. 5. Don’t want a broker: Some people are just not comfortable with hiring a broker to sell their property, and hence they entrust this with real estate attorneys (some real estate attorneys do take this up). 6. As advisers/consultants: A lot of attorneys also work for real estate investors. In fact, hiring a real estate attorney is a very good option for a real estate investor. A real estate attorney can really make the transactions smooth for the investor. A real estate attorney will not only get it done correctly, but also quickly. And for a real estate investor time is very important since he can spend the time saved due to hiring a real estate attorney, into looking for really good deals. 7. Information provider: Some real estate investors use real estate attorneys as a rich source of information especially for getting the information about the properties that are up on sale due to disputes or settlement procedures. Here the real estate investors try to gain advantage by getting the information earlier than others (and they do sometimes get very good deals in this way). So whether the real estate business booms or not, real estate attorneys are always going to be in job (booming job).
Uncertain Times for "Property Flippers" 08/14/2010
The first thing that should be noted is that flipping houses is a great way to bring home a rather large profit in a relatively short amount of time when doing so in a so-called seller's market. The problem is that we currently seem to be experiencing what is known as a buyer's market from one end of the United States to another. Foreclosures are at an all time high, which means that the market has suddenly been saturated with properties for sale. While getting your hands on a low-priced property is excellent news, it also creates difficulty in convincing buyers to pay top dollar when there are better bargains down the road. This of course is one of the primary risks involved in the real estate investment venture that is known as flipping properties. The massive profits that most investors seek cannot be accomplished if the property cannot be purchased, rehabbed, and sold quickly. The smart property flipper approaches his/her business with the knowledge that certain financing program guidelines prohibits the reselling of a property within ninety to a hundred and twenty days of the seller's obtaining title, so s/he will approach the entire transaction (from the purchase to the closing table of the resale) with extra reserves to buffer the mandatory period. I'm sure this "wait-before-you-resell" period was not welcomed news to many property flippers when the FHA adopted the guideline in 2009. It's one heck of a "cooling off period", wouldn't you say? Unfortunately, at the moment, very few properties in any city are selling too terribly quickly. The worst case scenario in a situation like this is that you are forced to either absorb the loss (which can, in extreme cases, result in serious financial hardship or bankruptcy) or rent the property out (which will in most cases negate all the efforts that were made to rehab the property. An inability to sell the property that is being flipped is probably the worst fear of every property investor who engages in this sort of investment. In these cases it is often better to drop the price and take a loss than hold out for a better price risking further losses. These are not the only risks associated with flipping properties unfortunately. Another risk would be the risk of seriously underestimating the amount of money that will be required in order to do the necessary work. This is something that many first time-investors find is a fairly common occurrence. Most people have unrealistic expectations of exactly how far their dollars will go when it comes to investing in the materials and labor needed to properly rehab a property. Even minor cosmetic repairs throughout a house can easily run into several thousands of dollars in order to repair. The flip side is that once these repairs are made the potential profits run into several tens of thousands of dollars. The smart property flipper knows about the financing programs that provide rehab financing for his/her buyer and as such will structure the property resale in a way that would encourage potential buyers to purchase based upon their personal repair/rehab options. In other words, instead of fully repairing the property from their own funds, smart property flippers would price the property in a way that would allow qualified FHA buyers to finance the purchase utilizing FHA-203k and "Streamlined K" financing, both of which encompasses needed repairs. Another risk that isn't often considered is the risk of overestimating abilities. This is one risk that costs not only precious time but valuable money as well. Not only is material wasted in the process of discovering you aren't exactly skilled in any particular tasks but also there are further expenses (often unplanned) involved in hiring the professional to repair the damage and replace the material that was wasted. When in doubt, it is almost always best to hire a professional if at all possible. Not having a pro can also lead to missing deadlines, going seriously off schedule, and adding yet another mortgage payment (if not more than one) to the overall price of the project which could result in foreclosure. The final risk is often something that simply cannot be seen or anticipated. This was experienced in the days immediately following 9-11 and should not be forgotten. The unforeseen happens every day. Markets crash; local economies can be devastated by the announcement of a major employer that it is going out of business (think of the collapse of companies such as Enron and World Comm and what they did to local economies). In these instances, the market will take quite a while to recover from the shock to its system and 'flippers' among other investors are often left feeling just as lost and devastated as those that were victimized by these companies, both through no fault of their own. The smart property flipper knows that stuff happens and those things that we have absolutely no control over are almost always the things that affect us most profoundly. The same holds true when it comes to property investment. The state of the economy, the housing market in an area, and sudden announcements that affect either can often have the most profound impact on those who are investing in real estate property. It is for these reasons that the smart property flipper places a great deal of importance on decisions relating to acceptable risks.
The Real Estate Agent 07/31/2010
Free No-Money-Down & Creative Financing Techniques Whenever you buy or sell real estate and you think - like millions of other people out there - that you don't need a real estate agent you may be needlessly contemplating the elimination of an important service that could be beneficial to you. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Similarly, some of those same people who choose to buy a new home think that real estate agents only add to the cost of purchasing the home. The smart home buyer knows that the service(s) provided by a professional real estate agent could be the difference between a problematic and agonizingly long transaction and one that proceeds to closing smoothly and efficiently. Contrary to the belief of many potential home buyers, a smart home buyer knows that real estate agents are normally paid by the seller, not by the buyer, although there are a number of buyer's agents that a home buyer can hire. As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well. The smart home buyer will inquire about fees s/he is responsible to pay, where the agent's interest is placed; what s/he can expect from the real estate agency; what impact the appraisal report will have on the offer made and accepted; How a particular mortgage financing program will affect the mortgage repayments and whether an engineer's report or a home inspector's report is more suitable for the type of home s/he's about to purchase, among other inquiries. A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience working with buyers and transactions of all types. This way, you can count on your agent to be there when you need him/her the most - especially if you don't have a large down payment (15% to 20% of the purchase price). The smart home buyer knows that they are several mortgage financing options available through variuos sources, including commercial banks, credit unions, mortgage lenders that specialize in government programs like fha and VA (for veterans or veterans and their spouses), conventional first-time-home-buyers programs, PMI, programs and many State-subsidized programs with which to finance the home purchase. If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams. You can also make a list of real estate agents that you can interview based on referrals from friends, neighbors, and even relatives. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lender's referral can also prevent you from encountering any obstacles or surprises. The smart home buyer knows that long established relationships between lender and broker signify the existence of both entities doing business in their respective fields for a reasonably acceptable period of time and not a recently opened business that could close shop before the transaction closes. In addition, a satisfied friend or relative will normally have his/her interest at heart and therefore will not steer him/her in the wrong direction. The smart home buyer knows that ultimately the decision is his/hers to make and s/he would have done the necessary preliminary work (home buying research) which should correlate with all the positive referrals received. Choosing a real estate agent to working with is an easy task, providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind - and isn’t just after the money. The smart home buyer knows that many real estate agents advertise their services and their client's products in the local newspapers and an increasing number has a presence on the Web. More importantly, the smart home buyer knows that the area in which s/he wishes to purchase may be more familiar to real estate agents with offices established in that community and therefore may be better able to provide the kind of history about the neighborhood in general and the immediate neighbors in particular, because one of the best ways to have his/her interest protected is to insure that the long-term prospects for home ownership in the area are excellent. Mortgage Financing Information: Prime Mortgages Blog Borrower-friendly Loans FHA Rehabilitation Mortgage Termite Damage And Real Estate 07/17/2010
Termite damage, no matter how small the amount, is never good for a home. During a real estate inspection, if any termite damage is found, it must be reflected in the report and may affect the transaction. In most cases, the buyer is told that the seller will fix the problem. Although this may sound good to some buyers, other buyers remain skeptical until they are given proof that the work is done. Housing expenses made easy with assorted writing systems Of course it’s always nice to a buyer that the seller will pay to have the termite problem treated, which will normally cost between $300 to $1,000 depending on the amount of damage. Even though the termites will be gone, you have to wonder about the damage to the structure. In some of the more severe cases, damage to the structure can cost up to 50 times the cost of the treatment. The last thing you want is to move into a home that you know has been treated for termites, only to find the structure is in worse shape than was expected. If any type of damage was done to the wooden structure of the home, you may need to get immediate repairs done. While some damage may be visible, there are other types of damage that may seem invisible to the naked eye. To find out just how bad the damage is, carpets and rugs will need to be lifted, furniture and appliances moved, walls and ceilings will need to be opened, and even some types of excavation may be needed. This is the only way to adequately measure the extent of the damage caused by termites. If you don’t inspect every area of the home, you could be moving into a home that has severe structural damage - which can cost you thousands to repair. There could also be latent damage present as well. To determine this, you’ll need to have invasive and destructive testing performed on your home, which must be performed by qualified contractors and specialists. This will help to determine the extent of the damage and the cost of subsequent repairs. Be mindful of the cost involved in this process. Special bargains for the home computer! Destructive and invasive testing can cost you an arm and a leg, although you’ll need to have it done if you suspect termites or know for a fact that the home was treated for them. To protect yourself, you should always get a treatment and repair history before you purchase the home. If you are renting the home, you’ll need get written documentation from the specialist that details the damage to the home and cost of repairs. Discovery channel is stocked with new and excited deals! Before you buy a home, you should always have it checked for termites. Termite inspection and report is a standard clause in most real estate contracts. There are a lot of termite inspection companies out there, many of which go above and beyond to check the home for any type of termite damage. You don’t want to buy a home only to find out that it has been infested with termites. If you have the proper inspections performed before you make the purchase, you’ll know for sure that you don’t have to worry about termites or termite damage. If the inspector or contractor doesn’t find any termite damage, you should always have it documented. This way, if termite damage does exist, you’ll have the documentation to back you up. Termites can be very destructive to your home, especially if you are looking towards a log home. Termites can destroy wood in little to no time at all, which is why you should always do what you can to have your home treated as soon as you suspect any type of damage. If you know a home has been infested with termites before - you should really make sure that the structure isn’t damaged and the termites are gone before you commit to buying. The ultimate treat for the home! The Home Selling Process 06/28/2010
So many tips are being given on home selling. If only you knew where to begin you'd probably feel a little more confident about the whole process because it is certainly very easy to get confused because you don’t have a big picture of what exactly will happen during the home selling process. While it may differ from area to area, some general steps home sellers should expect are standard. The first thing to do is some preliminary planning. Though you may not feel like it, this is the step that kick-starts the whole home selling process. Your house needs to be fully prepared to accept a new owner. If you plan to sell your house and buy another one, always know for a fact that you’re qualified to buy a new one before selling your old home. When you feel like you and your house is ready, it’s time to find yourself a real estate agent. Interview agents in your local neighborhood or ones that have offered excellent service and have a proven track record. Ask how they would market your property, and what kinds of commissions are they willing to accept. This is someone that’s going to be with you throughout the process, so make sure the chemistry works. When you’ve made your decision about an agent, prepare the listing agreement. There are several types available, each one giving you a different level of involvement between you and the broker. Choose one that will reflect the amount of work you’re willing to contribute in the home selling process – and how much money you’re going to spend. The money you'll spend per your listing agreement should come from the revenue of your home price, so make sure you set the price ideally. A too high or too low price will not help sell your home, as this may create a bad image to potential buyers. Check some cost analysis to get a rough value of your property, and work from there. Don’t forget the costs you have to spend throughout the home selling process. If you set the price right, it’s very possible that potential buyers will start calling for home showings. Prepare for this as well as you can and make sure to prepare your house as well. If you’re using an agent, leave the house whenever a client comes over. If you’re selling on your own, check the points you’re going to show to the potential buyers and think about what you’re going to say. Make mental notes, and if necessary, written notes. Finally, if the home showings went well, the buyers will make an offer. Offers should be made in standard forms that would satisfy a lawyer. Make sure you know what the buyer wants to include in the sale and what should be excluded. Many of these forms (real estate purchase offer, real estate contract, real estate good faith deposit form, etc.) can be found online if you have access to the Web. You can choose to accept or reject the offer, or modify it and see if the buyer is willing to negotiate with your incentives. Once you’ve reached an agreement, that pretty much brings you to the end of the your home selling process. Chances are that if things were done properly, you'll be closing your home sale within 30 to 45 days barring any unforeseen delays. Good luck! |
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Hello I'm Tony, known also as Javeton among family, friends and a number of Web networks that I have a membership in. |
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