Ideal home buying or selling experience

In the real estate world, buying and selling properties can be both stressful and worthwhile depends on how you will handle the situation. Just like in everything in this world nothing is perfect, so you have to be able to adapt to the things around you may it be good or bad. Your view and attitude towards the situation will define your actions specially your experience.

Ideally, the process of buying or selling a property should be just easy. Having the following scenarios would make it look like as easy as A-B-C.

• Have the best agent who will represent you throughout the process, who has your best interest in mind and will makes sure that you know and understand all your rights and responsibilities throughout the process and the contract.

 

• Easy house hunting or searching on different portals on the location you want with the price range you have.

• Smooth and readily available financial methods to close the transaction right away.

 

• Trouble-free inspections, title search, maintenance and warranties, so no delays.

 

• Complete and no issues on all legal documents necessary on the transaction.

 

• Constant and clear communication to all parties involved in the process, everyone is update on what is happening and everyone is complying with their responsibilities and timelines.

 

But yeah, we are in the real world, so it is safe to say that the ideal home buying and selling process we featured above doesn’t happen every day.

 

• Bad agents, not responsible or doesn’t have your best interest as their top priority.

 

• Tiring house hunting, can’t find a house you like on the area you want that will fit in your budget.

 

• Buyers not capable or ready to finance the home. Delays on financing institution processes.

 

• Incorrect or missing documents necessary on the transaction

 

• Inconsistent and unclear communication between the people involved.

 

• Tiring leg work, endless follow-ups, so many revisions, legal problems, etc.

 

More often than not these are the things that usually happen in a transaction so you just have to be ready for it. We cannot avoid issues like cancelled showings, miscommunications, delays and all but we can do something about it.

• Always be on top of the situation. Plan a head.

– Know what you want, what you have and what you need. Your budget, the processes, the people you need to be able to be equipped before getting into any transaction like agents, transaction coordinator, vendors, lawyers, lender, etc.

 

• Be responsible and be involved

– Get an agent, be sure that you tell him/her what you want and need. But you have to be hands on, whether you are a seller or buyer; make sure that you just don’t let the gent do all the work/task. Be responsible and be involved, in that the agent would know that you are a team with one goal, buy or sell the property.

 

• Work and hope for the best but be ready for the worst

– Organize, stick with the plan, have the timeline of events. Expect delays and hiccups along the way but those are just minor set-backs, as long as you know your goals, you have prepared for the things that might not go well, and be ready to have back-up plans or even allowances for those delays. You will be fine.

At the end of the day, nothing is really easy; it is how you handled it that matters. So you make the experience yours! 🙂

What you want to know about loan types that can help you in getting your new home

Planning to buy your dream house? One of the most critical questions you will ask yourself is “how are you going to pay for it?” If you have the cash then go for you but more often than not, people use loans or mortgages as their means of financing their dream house. So the following information may come very useful in knowing more about different types of loan.

 

Conventional Loan

– First the conventional loans, these are loans that are from private lending companies, banks or private financial institution and not from any government agency. It is a direct agreement between a lender and a borrower. The borrower needs a good credit score and history and a 10% to 20% down payment to secure this type of loan.

Here’s more information based on: http://www.diffen.com/difference/Conventional_Loan_vs_FHA_Loan

“Conventional loans are not guaranteed by any government agency but generally comply with the guidelines set by Fannie Mae and Freddie Mac. After the lender loans money to a borrower who wants to buy a home, the lender usually sells the loan to either Fannie Mae or Freddie Mac. Because of this, lenders must ensure that borrowers meet Fannie and Freddie’s guidelines for loans.

Conventional loans are of two types: conforming and non-conforming. Conforming loans adhere to Fannie and Freddie’s guidelines and are for amounts less than $417,000 (or higher in some areas that have a high cost of living). Non-conforming loans either are above the lending threshold Fannie and Freddie set (see jumbo mortgage) or are made to borrowers who do not otherwise qualify for a conforming loan (e.g., someone with a lot of debt). Non-conforming loans usually have a much higher interest rate than conforming loans. ”

 

 

Federal Housing Administration (FHA) Loan

– this type of loan is backed by the Federal Housing Administration (FHA), an office under the Department of Housing and Urban Development’s (HUD) Office of Housing. FHA will help the borrowers get their loans from FHA accredited lenders. They usually allow 3.5% down payment to buy their new home using this type of loan.

 

 

Here’s more information based on:  http://www.diffen.com/difference/Conventional_Loan_vs_FHA_Loan

“FHA loans are guaranteed by the U.S. Federal Housing Administration (i.e., the FHA). This guarantee reduces the risk lenders face when issuing loans, thus allowing lenders to lower their qualification criteria. This sometimes makes FHA loans the only way that borrowers with a poor credit score (<600) or low down payment (as little as 3.5%) can buy a home.

In exchange for this guarantee from the FHA (which is practically a guarantee from the U.S. government), the borrower must purchase mortgage insurance through the FHA. This increases the long-term cost of the loan for the borrower but enables the purchase of a home that might have otherwise been impossible without more upfront help.

The application process is similar for both FHA-insured and conventional mortgages. A pre-approval from a lender is usually the first step in the loan application process.”

 

U.S. Department of Veterans Affairs (VA) loan

– This type of loan is backed by U.S. Department of Veterans Affairs. VA will help the veteran get their loans from VA accredited lenders. VA allows 0% down payment for this type of loan but the veteran should have a co-maker, who should be financially stable to sustain the loan in case the veteran dies.

 

Here’s more information based on: http://www.diffen.com/difference/Loan_vs_Mortgage#Types_of_Mortgages

“The U.S. Department of Veterans Affairs guarantees the home mortgage loans taken out by military veterans. VA loans are similar to FHA loans, in that the government is not lending money itself, but rather insuring or guaranteeing a loan supplied by another lender. In the event that a veteran defaults on his or her loan, the government repays the lender at least 25% of the loan.

A VA loan comes with some specific benefits, namely that veterans are not required to make a down payment or to carry private mortgage insurance (PMI). Due to tours of duty having sometimes affected their civilian work experience and income, some veterans would be high-risk borrowers who would be rejected for conventional mortgage loans.”

 

There are a lot more information online about the other types of  loan that you can use in financing your way to your new home. I suggest that you research more information on which type is best for you, know more about it so you are well informed and equipped once you apply for it. Good luck! 🙂

 

Tips and to dos before you buy a newly constructed house

Buying a newly constructed house or pre-construction house is really exciting and enticing that most of the people are willing to just jump into signing the contract right away. Doing this will mostly lead to disappointments, unexpected and unanticipated costs, worst may lead to termination of the agreement and legal issues. So if you are a buyer looking to buy a newly constructed house or pre-construction house, do yourself favor and read the following tips and to dos before you sign the agreement for you dream house.

 

Get a Real Estate Agent

– hire a Real Estate professional who has experience in new construction properties and has no ties to the builder/seller. You need this person to represent you and your best interest as buyer throughout the transaction. This agent will help you draft the best offer you can give the builder/seller; legal confidante and helps you understand the clauses, fine prints and everything on the contract to ensure that all your rights as buyer are well taken care of.

 

 

Research

 

– About the builder, the surrounding area and neighborhood. Research on testimonials, feedback online about the builder/seller, at least you have a pretty good idea on how they take care of their customers, bear in mind that you will get feedback from customers, so it will be a mix of satisfied and unsatisfied customers. For you to be able to use them wisely, any concerns or not so good feedback, make sure cover it on your purchase agreement. About the surrounding area and neighborhood, you may want to know any planned development on the surrounding area, any traffic planning, development of neighborhood parcel, new establishments, etc.

Everything should be in writing

– make sure that everything you have talked about and agreed upon are in writing. Don’t sign the contract immediately, make sure you read all the fine prints, clauses, ask for your agent’s help in making sure that all the agreements, concessions, contingencies, dates, timelines are clearly stated on the contract to ensure that you will not have any issues throughout and after the sales transaction. It is better to be sure than sorry.

 

Know what is included and what isn’t

 

– Most of the finished homes or model houses looks picture perfect and it definitely adds to the excitement of the buyer quickly jump into the deal. Just always have in mind that what you see there doesn’t mean that’s what you are going to get when you get the deal since model houses are a mix of standard materials and fixtures as well as upgrades and add-ons so don’t get too excited to sign the deal and be disappointed later on. Ask the builder what are the things included on the deal, the standard inclusions as well as the upgrades and add-ons so if you really want your home to be just like that, and you will not be surprise of the additional costs.

Also for home warranty, make sure you have a very clear agreement and understanding on what is covered and what isn’t, time of coverage and who to contact once you need assistance on the warranty. It is better to know and be fully aware of all these now for your own protection.

 

Get a Home Inspection

– Not because it is a newly constructed house, means it doesn’t need a home inspection. Remember you and your family will be living inside this house so you need to have the peace of mind that everything will be safe for you and your family not just now but in the long run. Hire a professional who will be able to inspect the house, the quality of materials used as well as check for potential future issues, at least as early as now, you may need to request for repairs if need be.

Doing the list above just saved you a lot of future headaches and money. Just like in everything else in life, don’t be overly excited to do things that you overlook the details, make sure that you think about it, plan head and always make sure that it is worth your time and effort. It is not just another investment, or project it is your home that we are talking about so you may want to get your hard earned money’s worth. I believe you are now equipped and ready to get into the deal for your new home! 🙂

Tips before buying a historic home

House hunting? Do you love vintage designs? Do you love history and looking and considering of buying a historic home or a house within a historic area? I really can’t blame you; historic houses have this beauty and charm added to it. Plus the historical value and significance of it, feels like it is really a great investment but wait you may want to check and go through the following tips before sealing the deal so you fully know and understand what you’re getting yourself into.

First let’s define historic home, here’s what Wikipedia says.

“A historic house generally meets several criteria before being listed by an official body as “historic.” Generally the building is at least a certain age, depending on the rules for the individual list. A second factor is that the building be in recognizably the same form as when it became historic. Third is a requirement that either an event of historical importance happened at the site, or that a person of historical significance was associated with the site, or that the building itself is important for its architecture or interior.” – https://en.wikipedia.org/wiki/Historic_house

Here are several things you may want to know and make sure you understand before buying a historic home.

Know what you can and can’t do to the house

–  Historic homes have strict home rehabilitation guidelines that its homeowners should follow. Carefully study and have a full understanding of these guidelines imposed by local/state laws on owners of historic structures. You may have remodeling/expansion plans that you will not be able to fulfill. You may repair things but not rebuild or replace. You need to know what you can and cannot do on the house you re eyeing to buy. Unlike any regular house, you can’t just change the house, the interior design, paint or what not, remember since it is a historic home, your goal is to preserve it.

Hire a professional home inspector

 

– Since these are old houses that we are talking about, we definitely need to have a professional home inspector who specializes on old structures to thoroughly check on it. Make sure that there are no serious structural problems, as well as the house meets safety and health standards like mold, asbestos, lead paint tests. You are investing in this property so more that the historic and aesthetic value of it, you have to make sure it is safe of your family to live in it.

Ask local contractors for an estimate of how much it will cost you in repairs and restorations

– Get price estimates from contractors regarding all necessary repair work. If ever you need to replace something based on the guidelines it has to be the same construction material that you will use, hence this may be an additional expense you need to anticipate. You may also need to secure a special permit in renovating the place since the government and other historical organizations are making sure that we preserve the home’s true nature and original construction.

So once you are done with list above, your expectations are clear. You are ready to decide whether you will buy a historic home or not. Happy Hunting!

 

 

Listing Photos Matter

Photos have very essential role in marketing and advertising products or services. It is a means of targeting the people’s interest in getting to know more about your product, making them curious about it, getting your fancy to buy it. It is your visual weapon in making the market feel your product or services exist. But not using its full potential can also do your business more harm than good. It can be a double edge sword if your photos do not reflect the kind of product you want your market to see, so be careful and make sure that you use photos to your advantage.

We live in an era of digital world, everything is fast paced and digital even selling and marketing products, this include house in the real estate industry. Unlike before if you want to do house hunting, potential buyers would really invest time in dropping by and personally checking out the property but due to time constraints, most of the buyers now would go house hunting online and would just give efforts in checking the property further once it is in their short list or already got their interest and their fancy.

How do we capture their fancy… through your Listing Photos!

By having great photos of the property, you are making your online presence in digital marketing. Potential buyers will be able to see the property, highlight the best part of the house, and even see detailed designs and the condition of each part of the house without exerting much time and effort in the early stage of house hunting.

Great photos will give you competitive edge on the property you are selling; it will attract and get the interest of more potential buyers. Getting the buyers’ interest in checking out the property is something that your photos can do, once they check on the photos, buyers would know if they would want to know more about the property or not. Furthermore it will create traffic to your websites, or hype on your advertised property whether they are potential buyers or not, it help on your marketing strategy.

Here’s one story of how listing photos affected the period of time the property was on the market.

The property was on the market for eight months and when a real estate photographer Harry Lim re-photographed the property it was sold in eight days. Same house, same rooms and furniture but notice the difference on the photos.  Check this link and be amazed on how the photos made the difference: https://www.buzzfeed.com/rachelwmiller/these-photos-show-just-how-much-real-estate-photography-matt?utm_term=.hrOk76elN#

See how it made the difference; imagine being in the market for several months and being sold in just couple of days is one of the major effects of photos on marketing this property. So let’s make sure that we are on top of our game in using photos as our main marketing weapon, use the best photos of the house, proper lighting, good angle, great gears, get professional help if you must since it is really a good investment in showing the world the best photographs of your property.

 

Enjoy the benefits of home warranty

A home warranty is a contract that covers costly home repairs and replacements due to normal wear and tear usually for a period of one year. The price and its coverage widely vary so homeowners should make sure that they choose the home warranty that fits their needs.

Home warranties cover your basic home system and appliances, repairs and replacements of these systems/appliances are covered given that they are working properly when you get into the contract and also given that the reason for the breakdown is wear and tear.

Home warranty companies give a variety of Home warranty plans, prices and even add-on options so it is best that you truly understands the coverage and all the clauses in the contract so you will be able to get your money’s worth and maximize the benefits of home warranty.

 

Here’s a list of some benefits of home warranty.

Peace of mind

– You can relax, be stress free and just gain peace of mind knowing that once the unexpected happens like break down of your systems or appliance, you got it covered. It is like an investment that you made to ensure that your home will have a well-functioning system and appliance every time.

For example, your air conditioning just suddenly stop and needs replacement, your home warranty vendor company will be happy to replace it for you as long as it is part of the coverage plan of your home warranty. Just call them and they will be the ones to ensure that you will have a new functioning air conditioning on your home in no time. Isn’t that amazing?

 

Save Save Save!

– Time, Energy and Money.

Save time and energy, in case you need repairs or replacements, no need to search for companies who will do it for you. Just call your home warranty company and they will fix or replace it in no time as long as it is covered in your contract.

Money – instead of you shelling out a huge amount of money on repairs, worse on replacements. you will not even need to give a dime, your appliance or home system will be fix or repairs with no cost so long as it is part of the coverage plan. No unexpected repair or replacements cost, no hassle on your budget. 🙂

 

Attracts more buyers

– If you’re selling your home, it attracts more buyers since they will be able to have  peace of mind if something bad went wrong on the home system or any appliance, there is no need to worry since it it covered of the warranty contract. It adds value to the home you are selling.

Avoid Delays in selling your home

– selling your home turnaround time varies, sometimes it’s fast but there are times that it is slow too. That is just for the listing time, you also need to consider the time the selling process itself, 15, 30 45 days, depends. But let’s say that during that period something went wrong… something broke down and it will definitely cause delay and hassles in the entire transaction but if you have home warranty, it will be just a call away from your vendor company and they will take care of the situation in no time so long as it is covered in your contract.

I have written down “…as long as it is covered in your contract.” several times already, that is because it want to reiterate its importance. Make sure that you know and understand the contract, what is covered, what is not. It will save all the parties involved a lot of hassle and you will be able to maximize the very reason why you get the home warranty, to gain peace of mind and save time, energy and money once that unexpected happens.

Let’s learn more about loan pre-approval

First let’s check the meaning of it. Based on Wikipedia this is the meaning of PRE-APPROVAL-

 

 “People interested in buying a house can often approach a lender, who will check their credit history and verify their income, and then can provide assurances they would be able to get a loan up to a certain amount. This pre approval can then help a buyer find a home that is within their loan amount range. Buyers can ask for a letter of pre-approval from the lender, and when shopping for a home can have possibly an advantage over others because they can show the seller that they are more likely to be able to buy the house. Often real estate agents prefer to work with a buyer who has a pre-approval as it demonstrates that they are well-qualified to receive financing and are serious about buying a home. A pre-approval is based on the documentation the borrower supplies at the time of application, and any actual eligibility to receive the pre-approved loan depends on the terms and conditions of the pre-approval and ability to secure the loan before the pre-approval expires. ” https://en.wikipedia.org/wiki/Pre-approval

Remember in the Real Estate world, when you are buying a property you have different financing terms to use, cash or loan. Most of the time people tend to use the latter in financing their dream to buy their new home. Hence Pre-Approval is very important in the Real Estate process. It is the way you can convince the seller of the property that you are capable of providing the financial aspect of the sale. That is how we see it on the borrower’s side.

 

On the lender side, here’s how it goes. Prior to helping anyone with buying their dream house, they need to do several things, checking the information of the borrower, their financial history, credit report and score and other financial information to check if they will qualify and pass their guidelines in providing grant to their loan request. This is to ensure that the person has the ability to pay them back, there are even times that borrowers may need a co-maker or even a co-lateral just to be approved for the loan for the lender’s assurance that they will be able to get their money back plus the interest and other fees, after all it is the nature of their business.

Once you have a pre-approval letter from your lender, you already have a pretty good idea of how much you can get to finance your house hunt; this can help in filtering the number of houses as your options. You already have a price range of the house that you are looking for. Also some sellers may ask for a copy of pre-approval letter together with your offer so that they are secured that you are a serious buyer and has the means to get to the closing of the transaction.

Remember, especially in a transaction with multiple offers, you have to make sure that your offer stands out and having a pre-approval letter is plus for you.

That’s why my tip for you if you are looking into buying a property, before getting your mind so much into house hunting, secure a pre-approval first. Trust me it will save you, time and energy even heartache, ha-ha! Happy House Hunting!

Home-buying process

Buying a new home? I understand that this event is really exciting and can make you very impulsive when it comes to decisions and all. But we don’t want to ruin your life’s milestone just because of a single mistake of being unaware of the process. So here is the home buying process you might want to check on first before getting your new house.

Buyer searches for a property through various portals
-First of course you will look for houses, designs, sizes, location, neighborhood, prices. You can check different portals in looking for your new home. It’s like doing a window shopping; take your time in checking different houses, the more options you have the better. Then get into a shortlist of the houses that you liked best, from that list you will move to the next step of filtering which is the best for you until you came up with your best choice.
Buyer gets a loan pre-approval or obtains proof of funds

-Now that you already know which house to buy, get a loan approval if you are going to use mortgage or just obtain proof of funds for Cash payment. This will be needed in the process of buying your new home so secure these documents from your financial institution.
Buyer gets a buyer’s agent to represent them and assist in offers

– Now you need to get an agent who will represent you throughout the whole process. This person will not only help you with all the leg work but will also provide you legal advice, walk you through laws and legal documents that are necessary in the process, and help you draft your offer on the house that you want to buy. Also part of his responsibility is to make sure that your rights as a home buyer are secured and the standard processes and procedures are followed.

 
Respective agents will exchange offers and /or counter offers
– After much Marketing effort, we expect buyer’s offers to come in. There could be just one or multiple buyer’s offer for a property. It is the seller’s agent duty to gather them and submit it to the seller for review and approval. We can technically call this the negotiation phase, wherein the seller’s agent and the buyer’s agent are in communication and discussion through offers and counteroffers. The price, conditions, requests, timelines are discussed until the buyer and seller come into an agreement.

Purchase agreement is signed Escrow phase begins

– Once the contract has been signed by the seller and all parties involved in the transaction, it is called the contract ratification. Escrow Phase begins. This is the process in which documents are being kept by a third party administrator and is held until the closing of the transaction. The turnaround time for this phase depends on how the buyer will pay for the property.
The mode of payment that you will use will determine the turnaround time you will have in the escrow phase.
Cash – 15 days
Loan – 30 days
Renovation Loan – 45 days
Escrow closes once a new deed is recorded in the buyer’s name
– This is the end of the sale process. There are a lot of events before we can finally close the transaction. Exchange of keys, all financial terms and obligations are settled- to the seller, the agents
(buyer’s and seller’s), the Escrow Company, and all the other vendors and the deed or the title is now under the name of the new owner.

Home-selling process

There are a lot of things you have to consider before deciding to sell your property like the pros and cons of selling your home, financial status, where to move from here and the list goes on and on and on…

Now that you have finally come up with the decision to sell your property there’s another list you have to know, the process of home selling. This is a must know list in order for you to ensure that the sale will be smooth, fair, legally binding and hassle free.
Here’s the step by step home selling process every home seller must know:

 

First, look for an agent who will represent you

– Get a Seller’s Agent also known as Listing Agent. This will save you a lot of time, money and effort. This agent will represent you throughout the transaction process. He/she will be responsible in marketing, listing your property on MLS and other different portals which will help in getting potential buyers for your property.

 

 

 
Title Search, Property Inspection and Valuation
– In this process, there will be several tasks to be done by vendors who will help you provide a fair price for your property. Title search is also very important to ensure that the title is clear of any issues and ready to be transferred to a buyer anytime.

 
Now, Seller’s Agent lists the property in MLS
– Marketing of the property begins, listed in MLS and other portals, creating flyers and video tours that will help in getting more people, potential buyer’s interest in getting/buying the property.

 
Respective agents will exchange offers and /or counter offers
– After much Marketing effort, we expect buyer’s offers to come in. There could be just one or multiple buyer’s offer for a property. It is the seller’s agent duty to gather them and submit it to the seller for review and approval. We can technically call this the negotiation phase, wherein the seller’s agent and the buyer’s agent are in communication and discussion through offers and counteroffers. The price, conditions, requests, timelines are discussed until the buyer and seller come into an agreement.

Purchase agreement is signed Escrow phase begins
– Once the contract has been signed by the seller and all parties involved in the transaction, it is called the contract ratification. Escrow Phase begins. This is the process in which documents are being kept by a third party administrator and is held until the closing of the transaction. The turnaround time for this phase depends on how the buyer will pay for the property.
The mode of payment that you will use will determine the turnaround time you will have in the escrow phase.
Cash – 15 days
Loan – 30 days
Renovation Loan – 45 days

 
Escrow closes once a new deed is recorded in the buyer’s name

– This is the end of the sale process. There are a lot of events before we can finally close the transaction. Exchange of keys, all financial terms and obligations are settled- to the seller, the agents
(buyer’s and seller’s), the Escrow Company, and all the other vendors and the deed or the title is now under the name of the new owner.

Signs of an overly priced home

 

Shopping a home is a really exciting task, especially for first time buyers, they tend to be very excited and become an impulsive buyer. In the real estate world being an impulsive buyer is a big NO-NO. It’s not like your usual shopping day in a mall, in buying your real property, you need to make sure that every course of action is well thought of, research- know about the details of the property, about the neighborhood, market trends and status. Take time to look on other houses on the market. I no you can’t wait to move in to a place you can call your own, but of course you have to make sure that every hard earned money that you will use to buy it is worth it, thus you have to know if the house you are eyeing for is fairly priced.

 

Here are some signs that can tell you that a property is over priced.

The time the property is in the market

– this is one of the very obvious sign that you can see in checking the listing details. The longer the time the property sits in the market, the higher the possibility that it is over priced. There are a lot of properties that gets sold in just few days or weeks. So if there are very few to none interested buyer of the property, it only indicates that something is wrong with the price.

 

 

The property already had home improvements

– sometimes the seller based their listing price to the amount they have paid for the home improvement. Home renovations or updates like remodeling the bathrooms, land escaping, new recreational room or kitchen cost lot of money, yes it will help in getting more potential buyers but take note that those improvement may also boost the price of the property making it over priced.

 

The property price is higher than most of the property in the neighborhood.

– When we mentioned research earlier, this is part of it. Having a comparative market analysis is great help in knowing if the property you are looking for is fairly priced. Check the prices of the properties in the neighborhood that is also on listing as well s the recently sold properties, this way you will have a better understanding of the price range of the properties on the said neighborhood.

The property location

– Location has a great impact on your property’s value, it can either boost it or pull it down.
There are a lot of factors to consider and be aware of the area where the property is at so you can have better idea if it is fairly priced.
> any near by establishments like school, church, mall, convenience store
> near to main road or highways
> close access to public transportation
Hope the list above can help you be more aware and knowledgeable in choosing your new home. Also another tip is to get help from a buyer’s agent who can help you out in checking if the property is fairly priced.