Knowledge Center
I've assembled some world-class resources to answer some questions you may have about real estate. Please feel free to contact me to discuss your own unique needs and circumstances. I am happy to help you.
Buyer Information
Home Purchase Negotiation
Moving With Kids Does Not Have To Be A Struggle
Planning For Home Maintenance Costs
What Every 1st Time Home Buyer Should Know
Caught Between Buying and Selling a Home
Seller Information
Home Sweet Home Improvement
Looking Through The Buyer's Eyes
Make Sure Your Home Sells At The Right Price
Seller Services Guarantee
Financing
Here are ten important questions you should ask and why you should ask them.
Property Specific
1. HOW LONG HAS THE PROPERTY BEEN ON THE MARKET?
Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.
2. HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING
PERIOD?
Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.
3. HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY?
Why: It will be helpful to know what offers have been turned down and for what reasons.
4. WHAT IS THE MOTIVATION OF THE SELLER?
Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.
5. WHAT PERSONAL ITEMS ARE INCLUDED IN THE
Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.
Neighborhood Specific
1.WHAT IS THE
Why: This information is important since it will indicate the top and bottom of that specific market.
2. WHAT IS THE AVERAGE TIME ON THE MARKET FOR PROPERTIES IN THIS AREA?
Why: Short market times may indicate a seller's market. If this is the case, you may face competition from other buyers.
3. WHAT IS THE LIST-TO-SALE PRICE RATIO IN THIS AREA?
Why: This information will indicate sellers’ past willingness to negotiate and by how much.
4. WHAT IS THE AVERAGE PRICE PER SQUARE FOOT OF RECENTLY
SOLD PROPERTIES?
Why: This approach to establish value works best where there are similar homes, lot sizes and improvements.
5. WHAT OTHER FACTORS ABOUT THE PROPERTY AND/OR NEIGHBORHOOD COULD AFFECT VALUE?
Why: Review the Seller's Disclosure Statement very carefully.
Final Recommendation
If you will be financing the property, get pre-approved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Pre-approval can be extremely important in a sellers' market.
Moving With Kids Does Not Have To Be A Struggle
Summer is the busiest home moving time of the year, as families try to get settled before the start of the new school year. Many thousands of kids move each year. Scared, excited, angry — are just a few of the feelings kids have about moving. Moving isn't easy for anyone, even for adults. And while moving can be a time for some great new things — like your own room or a new place to explore — it can also be a time that's sad and stressful, too.
Carefully preparing children for the move will ease the transition and make the process smoother for the entire family. Here are some ways to make a move a little easier.
Communicate
Maintain an open dialogue with the children about the decision to move. Engage them at the beginning of the process to give them time to get used to the idea. Explain why you must move and answer questions truthfully.
Here are some helpful questions to begin the conversation:
How do you feel about moving to a new area?
What are you going to miss most about our current home?
What are you looking forward to at the new house?
Listen
Listening to your kids’ concerns is equally important. Pay close attention to statements so you can alleviate any fears. Avoid being dismissive of any social concerns; acknowledge them and remind the kids about the new opportunities ahead.
Check Things Out
Involve your children in exploring the new area. They will feel less nervous when they know what to expect, and second, they may start getting a little excited about the new place you're headed to.
Take them to see the new home. Exploring the inside would be ideal, however if you are unable to show them the inside at least drive by and explore the outside and the neighborhood. This will gives them a chance to think about how they want your room to look. And they may be able to run into kids who live on the street.
Stop by their new school. It is another important place to visit. Call the school and ask for a tour so they will know what it looks like inside. If they are into band, sports, or other clubs, it will give them the opportunity to ask which activities are offered at the new school.
If you're moving far away to another part of the country, or even a different part of the world, you'll need to check things out in a different way. You can do an Internet search and find out about your new town. You also can visit your library and check for books on that city or state.
Pack It Up
Before you move, your house will probably be full of chaos and boxes. Have the kids pack a special box of their favorite stuff - stuff they will want to have as soon as you get there. This can include personal items, such as stuffed animals, photos, and other stuff that will make them feel at home. It's also a wise idea to include stuff they'll need the first night, such as sheets for their bed, a pillow, pajamas, toothbrush, and other must-haves. Mark this box with their name on it, so they can get it as soon as it comes off the truck.
Once they taken care of their most precious stuff, have them help with other moving tasks.
Another suggestion would be to pack up the kids’ rooms last to minimize the feeling of any disruption. The longer they feel secure in their own rooms, the easier the transition will be. Then, set up their bedroom first so they feel like they’re back in familiar surroundings.
Preparing for Goodbye
It's sad to say goodbye to friends, family, and neighbors. Have them make it less sad if by grabbing an address book (or just a plain notebook) ahead of time and have everyone write down his or her address, phone number, and email address. You can also get them a big blank book so they can ask their friends to fill it with messages.
Have them take lots of pictures or videos of their friends, favorite places, and neighborhood. They can even put together a scrapbook or shoebox full of things that remind them of Their hometown and all their friends.
Moving Day
When moving day finally comes, let them know that it's OK to feel sad. Let them know what do your going to do when they get there?
Have them start with unpacking the special box of favorite stuff. That will help them feel more at home.
Surprise
Arrange for special treats to be waiting for everyone at the new house. New games or new cuddly friends will keep the kids busy during the unpacking and make the first memory of the new house a pleasant one!
Planning For Home Maintenance Costs
You don't think about future maintenance costs when buying a home, but you should. Whether buying an older home or a newly constructed home, equipment can be faulty and costly to repair.
Usually a home's purchase price can be used to project maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home's original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars, it is a good rule of thumb for the average home buyer.
Since most home buyers are focusing on making the down payment and not saving for future repairs, a home warranty provides a good back-up plan.
An American Home Shield home warranty will cover many major home systems and built-in appliances for one full year after closing. A home warranty will pay to either repair or replace a covered item, and the homeowner pays a minimal deductible rather than the full cost of repairs. It's an easy way to manage your home's finances and plan for those unexpected repairs.
To learn more about managing home maintenance costs with an American Home Shield home warranty, contact me.
What Every 1st Time Home Buyer Should Know
Buying a home is one of the largest financial commitments a person can make in his or her lifetime. It's especially critical for first-time buyers to make informed decisions about the investment that they are about to make.
As a Prudential Homesale real estate professional I offer these tips to first-time homebuyers to help make the process easier.
Define your wants versus your needs.
Making a list of wants and needs before beginning the search for a home can make the entire process less overwhelming and more enjoyable.
Get pre-approved for a mortgage
It is critical that a buyer be pre-approved for a mortgage before going too far in the home-buying process. This enables the buyer to make a very appealing offer to the seller and increases the buyer’s chances of having his or her offer accepted.
Investigate the neighborhood.
Where are the schools? How far is the nearest hospital or grocery store? Is commercial garbage collection available, or do homeowners dispose of their own trash? These are basic yet important questions that some first-timers may not think of until after closing on a property.
Insist on a home inspection.
Attend property inspections. Be aware of environmental concerns, and ask questions.
Get help with the details.
Coordinating these and the many details of a move can be overwhelming for even the most experienced homebuyer. I can help guide you through the process and even coordinate related services.
Caught In Between Selling and Buying a Home?
Consider bridge loans. A bridge loan means borrowing from the current home’s equity until the proceeds from its sale are obtained. Some bridge loans require that only the interest be repaid; others mandate a single payment of interest and principal when the loan needs to be paid back. If protracted, bridge loans can be expensive, so it is best to use them for overlaps of a short period of time between closings.
Buy on contingency. Have a prior-sale contingency included in the purchase contract of the new home. It provides the opportunity to withdraw from an offer if the current home does not sell by a certain date.
Evaluate whether to buy or sell first. You might still get “caught in between” even with a prior-sale contingency clause. Homeowners must consider which is better to do first. In a “seller’s market,” locating the new home and starting the buying process may be the best approach. It is important to note that most people need to sell their current home in order to qualify for a loan to buy the next one, which is often more expensive.
Review home equity options. For those who need to borrow for a longer period than just a few months, it is best to use a home equity loan or a fixed-rate line of credit, particularly if sizable equity has been built up.
Kitchen Makeover: Out of all the rooms in the house, the kitchen is the most popular to remodel. According to Remodeling Magazine, money spent to upgrade a kitchen produces the highest return on investment. "Hot" kitchen makeover trends include adding dual sinks, cooking stations, extra-long dishwashers, under-cabinet lighting, warming ovens and wine coolers.
Bathroom Fixer-Upper: Upgrading a bathroom is also a sound choice and will usually provide a significant return on investment. Large bathrooms are typically on the top of the list of priorities for those seeking to purchase a home. Adding skylights, glass block windows, ceiling fans and sunken whirlpool baths are also attractive selling features. If you don't have the room to expand or to accommodate larger appliances, or you don't think you'll be living in your home long enough to enjoy the changes and/or see a return on this kind of investment, stick with neutral, mid-builder level updated cabinetry, refreshed flooring and shower/tub, or a new sink and toilet.
Room to Grow: Adding a room or two, such as a spare bedroom or a study, is a significant home improvement that you will be able to take advantage of every day. In addition to the much-needed extra space, it can also potentially provide you with a good return on your investment when it comes to selling the property.
Landscaping: A professionally landscaped yard can certainly increase the "curb appeal" or desirability of a home. In fact, beautifying your lawn can be one of the most inexpensive home improvements. Additional simple landscaping projects include trimming and edging the grass, manicuring the trees and shrubs to open up the view of the house, removing any dead plants and planting flowers to brighten up the yard.
Repair Jobs: While many homeowners may want to update and remodel their kitchen, if the roof needs to bed fixed or if the chimney has to be repointed, then they should prioritize these necessary repairs over any cosmetic changes. This applies to both sellers and those who plan to stay in the home for years to come, as these essential repairs must be taken care of before they cause the house to lose value. It is vital to look after the minor problems such as a leaky faucet or a loose cabinet to ensure that your house doesn't undergo any long-term damage. As soon as you notice a problem, even if it seems minor, fix it right away.
Cosmetic Touch-Ups: A paint job, new double-paned windows and new carpeting will increase the price of a house virtually dollar-for-dollar. Neutral paint and eliminating clutter can make a world of difference. However, don't go overboard with home improvement projects that will push a house too much above the current average value of homes in your neighborhood. It is important to make sure that your home has standards that are in line with the other houses in the neighborhood, but you do not want to price yourself out of the market.
Home Improvement Professionals for Hire: Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and interview them - checking is critical. The most important quality to look for is trust, not initial price.
Looking Through the Buyer’s Eyes
Below are questions to ask yourself when preparing your home for sale to ensure it looks the best it possibly can in the buyer's eyes.
Exterior
Does your yard look well maintained?
Are the trees and bushes trimmed?
Is your lawn mowed and edged?
Is your lawn free of weeds?
Are the decks and patios clean?
Does your house need painting?
Are there any exterior holes or cracks?
Are your walks and porches clean and in good repair?
Does your roof leak or sag?
Are any shingles or tiles missing?
Is your chimney in good shape?
Carpeting/Walls/Ceilings
Are your carpets clean and in good condition?
Do your carpets need to be stretched?
Are there any pet or smoking odors?
Do your walls have any cracks or holes?
Do your walls need painting?
What about that wallpaper?
Do your ceilings have any water stains, cracks or peeling?
Do your ceilings need painting?
Kitchen
Are your appliances clean and in good working order?
Are your cabinets in good condition?
Are your countertops in good condition?
Is your tile grout clean?
Is your sink stained, chipped or in need of recaulking?
Bathroom
Do your faucets shut off completely?
Do your sinks drain freely?
Are your toilets in good condition?
Are your shower doors shiny?
Do your tubs need caulking?
Is your floor in good condition?
Are your vanities and mirrors in good condition?
Living Room
Is your fireplace clean?
Is the fireplace screen in good shape?
Are all drapes, shutters and shades clean and working properly?
Are any window screens bent?
Do all the windows open and close easily?
Are the windowsills clean?
Are your doors in good condition?
Do any doors sag or stick?
Do the locks work?
Is the paint in good condition?
Do the doors seal tightly?
Basement/Attic
Are your basement and/or attic organized?
Are they well lit?
Are they clean?
Are the stairs in good repair?
Do the doors open and close easily?
Are there any signs of insects or rodents?
Garage
Is your garage organized?
Is it well lit?
Is the floor swept?
Are there oil spots or other stains on the concrete?
Make Sure Your Home Sells At The Right Price
Establishing a reasonable and profitable listing price for a home is perhaps the biggest challenge for every home seller. Before coming to a final figure, many sellers ask themselves: “That home down the block went for a lot; can I just price my home in the same ballpark?” “Can I jack the price up in a hot market?” These and many other factors must be considered before settling on a listing price. As a Prudential Homesale real estate professional, I recommend taking the following steps before setting an asking figure.
Do The Homework.
Ask for a written comparative market analysis (CMA). This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale nearby and other important information. I will then provide a professional estimation of a legitimate selling price.
Take the Emotion Out of It.
While the seller likely has great affection for the home, I will not set the price based on the seller’s emotion. Instead, I will evaluate the location, condition and size of the home. A house in a secluded, exclusive area may appeal to some, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression (the ever important curb appeal)? Will it appeal to a growing family, or is it better suited to empty nesters?
Determine If It Is a Buyers/Sellers Market.
Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage. Interest rates remain at historically low levels even as the economy shows signs of improving, putting buyers in a good position to shoulder “good” debt of homeownership.
Do the Math.
Do not forget to figure in closing costs, legal fees and other selling expenses when determining the selling price. I can provide cost estimates, and negotiate with potential buyers to ensure a good sale price.
Give It the Once Over.
There is one more step to ensure that the house sells for your price, or more. Do as much as possible to improve the home’s appearance: touch up the paint, fix leaks, seal any cracks, clean up the clutter, and eliminate pet odors. The house has only one chance to make a first impression.
What is the difference between "pre-qualified" and "pre-approved"?
A pre-qualification consists of a discussion between a home buyer and a loan officer. The loan officer collects basic information regarding the customer's income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The pre-qualification is not a full mortgage approval but an estimate of what a home buyer can afford.
A pre-approval, on the other hand, is a comprehensive approach using basic information as well as electronic credit reporting. Pre-approvals, in most cases, are true mortgage commitments. The lender commits to financing your home and indicates the total mortgage amount available to you.
What types of mortgage programs are offered?
Currently, there are over 50 different mortgage products available, including: 15-, 20- and 30-year fixed-rate loans, adjustable-rate loans, new construction financing, VA and FHA loans, 5- and 7-year balloon loans and many more.
How long does it take to process a mortgage application?
Usually about 45 to 60 days, although it can take as few as seven days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.
What documents will I have to provide?
Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details on your long-term debt (credit cards, auto loans, child support, etc.). If you're self-employed, you may also be required to provide financial statements for your business.
In recent years, lenders have been required to obtain more specific information from borrowers in order to package and sell loans to investors. If you were lending someone such a large amount of money, you'd want detailed financial information.
Could anything delay approval of my loan?
If you provide the lender with complete, accurate information, everything should go smoothly.
You may face a delay if the lender discovers credit problems - a history of late payments or nonpayment of debts, or a tax lien. You may then be required to submit additional explanations or clarifications.
You should also be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it's funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your marital status, let the lender know promptly. You may be delayed if the home you selected fails to appraise for the agreed-upon purchase price.
What's included in my house payment?
Principal and interest on your loan. Depending on the terms of your loan, the payment also may include hazard (homeowners) insurance, mortgage insurance and property taxes.
Can I pay those other things separately?
Not if it's a FHA- or VA-insured loan. With most other loans, you can pay your own taxes and insurance if you’ve borrowed no more than 80% of the purchase price or appraised value of your home. Check with your lender to be sure.
What do the closing costs include?
Closing costs cover processing and administration of your loan. In addition to a loan fee, you'll usually be asked to prepay interest charges plus pro-rated property taxes, hazard insurance and mortgage insurance to cover the partial month in which you close.
When do my mortgage payments start?
Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents.
Pre-Approval versus Pre-Qualification
Pre-approval uses basic information as well as electronic credit reporting. It is a true mortgage commitment, which means a commitment to financing your future home and an indication of the total mortgage amount available to you. Mortgage lenders can help you through the pre-approval process.
Pre-qualification, on the other hand, is not a full mortgage approval, but an estimate of what you can afford. When you pre-qualify for a mortgage, the lender collects basic information regarding your income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount.
Of the more than 50 different mortgage types available, the two largest categories are fixed-rate and adjustable rate mortgages, each with advantages to consider.
A fixed-rate mortgage is the traditional method of financing a home. The interest rate stays the same for the entire term of the loan (usually 15 or 30 years). Your payments are stable and predictable, but initial interest rates tend to be higher on a fixed-rate mortgage than on adjustable-rate loans. A subsequent buyer cannot usually assume a fixed-rate mortgage.
Adjustable-Rate Mortgage (ARM)
Interest on an adjustable-rate mortgage is linked to a financial index, such as a Treasury security, so your monthly payments can vary over the life of the loan, usually 25 to 30 years. Most ARMs have a lifetime cap on the interest rate increase to protect the borrower. The lower initial payments on ARMs make it easier for buyers to qualify. Some ARMs may be converted to fixed-rate mortgages at specified times, usually within the first five years.
Documents Needed to Apply for a Mortgage
When you apply for a mortgage, you will need to furnish information regarding your income, expenses and obligations. It will save time if you have the following items available:
• W-2 forms for the last two years
• Federal tax returns for the last two years
• Last two months' bank statements
• Long-term debt information (credit cards, child support, auto loans, installment debt, etc.)
Repairing Past Credit Problems
Have you had situations in the past that have put blemishes on your credit? There are many reasons why credit problems occur. Some explanations are:
• You allowed someone else to use your credit cards
• You were a co-signer on a loan that wasn't paid on time
• You may have thought your spouse paid the bill
• You are divorced, but your former spouse has credit problems
It is in your best interests to keep your credit report in good standing. Here are some helpful hints for your credit report:
• Never go over 90 days past due on any accounts
• Keep your credit card debt below 50% of your monthly obligations
• If paying bills after the due date, always pay within the grace period
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