ARMLender

How to Stop Paying Rent and Own Your Own Home - Don’t Pay Another Cent in Rent to Your Landlord

2007-02-06T15:07:00.000-08:00

How to Stop Paying Rent and Own Your Own Home - Don’t Pay Another Cent in Rent to Your Landlord

It’s a dream we all have — to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it, when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.

Don’t Feel Trapped Anymore

It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is there are some little known facts that can help you get over the hump and transfer your status from renter to home owner. With this in mind, you will begin to see how clearly you really can:
* Save for a down payment
* Stop lining your landlord’s pockets, and
* Stop wasting thousands of dollars on rent

6 Little Known Facts That Can Help You Buy Your First Home

The problem that most renters face isn’t their ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following six important points.

1. You Can Buy a Home With Much Less Down Than You Think
There are some local or federal government programs (such as first-time buyer programs) to help people into the housing market. You can qualify as a first-time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your option.

2. You May Be Able to Get Your Lender to Help You With Your Down Payment and Closing Costs
Even if you do not have enough cash for a down payment, if you are debt free and own an asset free-and-clear (such as a car for example), your lending institution may be able to lend you the down payment for your home by securing it against this asset.

3. You May Be Able to Find a Seller to Help You Buy and Finance Your Home
Some sellers may be willing to hold a second mortgage for you as a “seller take back.” In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.

4. You May Be Able to Create a Cash Down Payment Without Actually Going Into Debt
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

5. You Can Buy a Home Even If You Have Problems With Your Credit Rating
If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

6. You Can, and Should, Get Pre-Approved for a Home Loan Before You Go Looking For a Home
Pre-approval is easy and can give you complete peace of mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over the phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for.

Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage and being stuck in the renter’s rut forever. Typically, there is no cost or obligation to enquire.

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands of dollars by throwing it away on rent when, with your agent, you could discuss your specific needs so that you can stop renting and start owning?

This conversation costs you nothing …and, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.

11 Things You’ll Need to Know to Pass Your Home Inspection

2007-02-06T15:02:00.000-08:00

11 Things You’ll Need to Know to Pass Your Home Inspection

Home buyers want to know your home inside and out. While home buyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be.

Will the roof end up leaking? Is the wiring safe? What about the plumbing?
These, and others, are the questions that the buyers looking at your home will seek professional help to answer.

According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection. We’ve identified the eleven most common of these and, if not identified and dealt with, any of these eleven items could cost you dearly in terms of repair.
In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. And knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

11 Things You Need to Know to Pass Your Home Inspection

1. Defective Plumbing
Defective plumbing can manifest itself in two different ways: leaking and clogging. A visual inspection can detect leaking and an inspector will gage water pressure by turning on all faucets in the highest bathroom and then flushing the toilet.
If you hear the sound of running water, it indicates that the pipes are undersized. If the water appears dirty when first turned on, this is a good indication that the pipes are rusty, which can result in severe water quality problems.

2. Damp or Wet Basement
An inspector will check your walls for a powdery, white material deposit a few inches off the floor and will look to see if you feel secure enough to store things right on your basement floor. A mildew odor is almost impossible to eliminate and an inspector will certainly be conscious of it.
It could cost you $200 to $1,000 to seal a crack in or around your basement foundation depending on severity and location. Adding a sump pump and pit could run you around $750 to $1,000 and complete waterproofing (of an average 3-bedroom home) could amount to $5,000 to $15,000. You will have to weigh these figures into the calculation of what price you want to net on your home.

3. Inadequate Wiring and Electrical
Your home should have a minimum of 100-amps service and this should be clearly marked. Wire should be copper or aluminum. Home inspectors will look at octopus plugs as indicative if inadequate circuits and a potential fire hazard.

4. Poor Heating and Cooling Systems
Insufficient insulation, and an inadequate or a poorly functioning heating system, are the most common causes of poor heating. While an adequately clean furnace, without rust on the heat exchanger, usually has life left in it, an inspector will be asking and checking to see if your furnace is over its typical life span of 15 to 25 years. For a forced-air gas system, a heat exchanger will come under particular scrutiny since one that is cracked can emit deadly carbon monoxide into the home. These heat exchangers must be replaced if damaged — they cannot be repaired.

5. Roofing Problems
Water leakage through the roof can occur for a variety of reasons such as physical deterioration of the asphalt shingles (e.g., curling or splitting), or mechanical damage from a wind storm. When gutters leak and downspouts allow water to run down and through the exterior walls, this external problem becomes a major internal one.

6. Damp Attic Spaces
Aside from basement dampness, problems with ventilation, insulation, and vapor barriers can cause water, moisture, mold, and mildew to form in the attic. This can lead to premature wear of the roof, structure, and building materials. The cost to fix this damage could easily run over $2,500.

7. Rotting Wood
This can occur in many places (door and window frames, trim, siding, decks, and fences). The building inspector will sometimes probe the wood to see if this is present — especially if the wood has been freshly painted.

8. Masonry Work
Rebricking can be costly but, left unattended, these repairs can cause problems with water and moisture penetration into the home — which, in turn, could lead to a chimney being clogged by fallen bricks or even a chimney that falls onto the roof. It can be costly to rebuild a chimney or to have it repointed.

9. Unsafe or Over-Fused Electrical Circuits
A fire hazard is created when more amperage is drawn on the circuit than was intended. 15-amp circuits are the most common in a typical home, with larger service for large appliances such as stoves and dryers. It can cost several hundred dollars to replace your fuse panel with a circuit panel.

10. Adequate Security Features
More than a purchased security system, an inspector will look for the basic safety features that will protect your home such as proper locks on windows and patio doors, deadbolts on the doors, smoke (and even carbon monoxide) detectors in every bedroom and on every level. Even though pricing will vary, these components will add to your costs. Before purchasing or installing, you should check with your local experts.

11. Structural / Foundation Problems
An inspector will certainly investigate the underlying footing and foundation of your home as structural integrity is fundamental to your home.

When you put your home on the market, you don’t want any unpleasant surprises that could cost you the sale of your home.

By having an understanding of these 11 problem areas as you walk through your home, you’ll be arming yourself against future disappointment.

6 Things About Mortgages You Must Know Before You Buy - Mortgage Regulations Have Changed

2007-02-06T14:56:00.000-08:00

6 Things About Mortgages You Must Know Before You Buy - Mortgage Regulations Have Changed

Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.

Get the Right Information

Whether you are about to buy your first home or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved.
Industry research has revealed that there are six common mistakes most home buyers make in mortgage shopping that can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a mortgage that will cost you less over a shorter period of time.

6 Things You Must Know Before Obtaining a Mortgage

Before you commit your hard-earned dollars to monthly mortgage payments, consider these six issues. Effective consideration of these important areas can make your payments work much harder for you.

1. You Can, and Should, Get Pre-Approved for a Mortgage Before You Go Looking For a Home
Pre-approval is easy and can give you complete peace-of-mind when shopping for your home. Your local lending institution can provide you with written pre-approval at no cost and no obligation, and it can all be done quite easily over the phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for.

2. Know the Monthly Dollar Amount You Feel Comfortable Committing To
When you discuss mortgage pre-approval with your lending institution, find out what level you qualify for, but also pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working back and forth with your lending institution to determine what this monthly amount is, and what value of home this translates into at today’s rates, you won’t waste time looking at homes that are not in your price range.

3. You Should Be Thinking About Your Long Term Goals, and Expected Situation, To Determine the Type of Mortgage That Will Best Suit Your Needs
There are a number of questions you should be asking yourself before you commit to a certain type of mortgage. How long do you think you will own this home? What direction are interest rates going in and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your mortgage? The answers to these and other questions will help you to determine the most appropriate mortgage you should be seeking.

4. Make Sure You Understand What Payment Privileges and Payment Frequency Options are Available to You.
More frequent payments (For example weekly or biweekly) can literally shave years off your mortgage. Simply by structuring your payments so they come out more frequently, you will significantly lessen the amount of interest you will be charged over the term.

For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.

These two payment options can cut years off your mortgage and save you thousands of dollars in interest. However, not every mortgage has these prepayment privileges built in, so make sure you ask the proper questions.

5. Ask If Your Mortgage is Both Portable and/or Assumable
A portable mortgage, where available, is one that you carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home. An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table making it much easier and more desirable for a buyer to buy your home, and again saves you any discharge penalties.

6. You Should Seriously Consider Dealing With a Mortgage Expert
Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example, they can make the process faster, thereby avoiding costly delays. Typically, there is no cost or obligation to enquire.

6 Mistakes to Avoid When Trading Up to a Larger Home

2007-02-06T14:44:00.000-08:00

6 Mistakes to Avoid When Trading Up to a Larger Home

Unlike the experience of buying a first home, when you’re looking to move up, and already own a home, there are certain factors that can complicate the situation. It’s important for you to consider these issues before you list your home for sale.

Not only is there financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.

6 Strategies

In this report, we outline the six most common mistake home owners make when moving to a larger home. Knowledge of these six mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market.

1. Rose-Colored Glasses
Most of us dream of improving our lifestyle and moving to a larger home. The problem is there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home - you fall in love – then you find out it’s already sold or it’s more than what you are willing to pay. Most home owners get caught in this hit-or-miss strategy of house hunting when there’s a much easier way of going about the process. For example, find out if your real estate agent offers a “Buyer Profile System” or “House Hunting Service,” which takes the guesswork away and helps to put you in the home of your dreams. This type of program cross-matches your criteria with all available homes on the market and supplies you with printed information on an ongoing basis. This type of program helps home buyers take off their rose-colored classes and — affordably — move into the home of their dreams.

2. Failing to Make Necessary Improvements
If you want to get the best price for the home you’re selling, there will certainly be things you can do to enhance it in a prospective buyer’s eyes. These fix-ups don’t even necessarily have to be expensive. But even if you do have to make a minor investment, it will often come back to you ten-fold in the price you are able to get when you sell. It’s important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.

3. Not Selling First
You should plan to sell before you buy. This way, you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below market-value because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home, but haven’t made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later — particularly if you are selling a smaller, starter home. You’ll have to investigate the tax rules if you choose this latter option. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see Point 5 below).

4. Failing to Get a Pre-Approved Mortgage
Many home owners fail to take advantage of pre-approval and it is a very simple process. While it doesn’t cost or obligate you to anything, pre-approval gives you a significant advantage when you put in an offer on the home you want to purchase because you know exactly how much house you can afford, and you already have the “green light” from your lending institution. With a pre-approved mortgage, your offer will be viewed far more favorably by a seller — sometimes even if it’s a little lower than another offer that’s contingent on financing. Don’t fail to take this important step!

5. Getting Caught in the “Real Estate Catch 22”
Your biggest dilemma when buying and selling is deciding which to do first. Point 3 above advises you to sell first. However, there are ways to eliminate this dilemma altogether. Some agents offer a “Guaranteed Sale ‘Trade-Up’ Program” that actually takes the problem away from you entirely by guaranteeing the sale of your present home before you take possession of your next one. If you find a home you wish to purchase and have not sold your current home yet, they will buy your home from you themselves so you can make your move free of stress and worry.

6. Failing to Coordinate Closings
With two major transactions to coordinate together with all the people involved (such as mortgage experts, appraisers, lawyers, loan officers, title company representatives, home inspectors, and/or pest inspectors), the chance of mix-ups and miscommunication goes up dramatically. To avoid a logistical nightmare, ensure you work closely with your agent.

Home Buyers: How to Save Thousands of Dollars When You Buy

2007-02-06T14:41:00.000-08:00

Home Buyers: How to Save Thousands of Dollars When You Buy

If you’re like most home buyers, you have two primary considerations in mind when you start looking for a home. First, you want to find a home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.

When you analyze those successful home buyers who have been able to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge. Although your agent’s negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.

These Steps Will Help You Save Thousands When You Buy a Home

Make Sure You Know What You Want
As simple as this sounds, many home buyers don’t have a firm idea in their heads before they go out searching for a home. In fact, when you go shopping for a place to live, there are actually two homes competing for your attention: the one that meets your needs and the one that fulfills your desires. Obviously, your goal is to find one home that does both. But in the real world, this situation doesn’t always occur.

When you’re looking at homes, you’ll find that you fall in love with one or another home for entirely different reasons. Is it better to buy the 4-bedroom home with room for your family to grow, or the one with the big eat-in kitchen that romances you with thoughts of big weekend family brunches? What’s more important: a big back yard or proximity to your child’s school?

Far too often, people buy a home for the wrong reasons, and then regret their decision when the home doesn’t meet their needs.

Don’t shop with stars in your eyes: satisfy your needs first. If you’re lucky, you’ll find a home that does this and also fulfills your desires. The important thing is to understand the difference before you get caught up in the excitement of looking.

Find out if your agent offers a “Buyer Profile System” or “House Hunting Service,” which takes the guesswork out of finding just the right home that matches your needs. This type of program will cross-match your criteria with all available homes on the market and supply you with printed information on an ongoing basis. A program like this helps home buyers take off their rose-colored glasses and — affordably — move into the home of their dreams.

To help you develop your home buying strategy, use this form:

What do I absolutely NEED in my next home:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

What would I absolutely LOVE in my next home:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

How Sellers Set Their Fair Asking Price
For you to understand how much to offer for a home you’re interested in, it’s important for you to know how sellers price their homes. Here are four common strategies you’ll start to recognize when you begin to view homes.

1. Clearly Overpriced
Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over-inflate the value of your home. This is done far too often, with many homes that are priced 10 to 20% over their true market value.

This is not in your best interest because, in most cases, the market won’t be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks:

* Your home is likely to be labeled as a “troubled” house by other agents, leading to a lower than fair-market price when an offer is finally made.

* You have been greatly inconvenienced with having to constantly have your home in “showing” condition …for nothing. These homes often expire off the market, forcing you to go through the listing process all over again.

2. Somewhat Overpriced
About three-fourths of the homes on the market are 5 to 10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: whether your home is really worth this much despite what the market has indicated (after all, there’s a lot of emotion caught up in this issue), —or— you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received.

3. Priced Correctly at Market Value
Some sellers understand that real estate is part of the capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time-frame and very close to the asking price.

4. Priced Below the Fair-Market Value
Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast — usually in a few days— at, or above, the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.

Sell Your Own Home - For Sale By Owner

2007-02-06T14:37:00.000-08:00

Sell Your Own Home - For Sale By Owner

If you ask anyone who has ever tried to sell their home themselves, they’ll tell you that from the moment the “For Sale By Owner” sign goes up, the phone begins to ring. Unfortunately, many of those calls will not be from prospective buyers, but rather from real estate agents looking to obtain your listing. Obviously, the idea of not having to pay commission to a real estate agent is attractive to any home seller. But because of all the issues involved in the process, selling a home on one’s own can be challenging (as many home sellers will attest to).

The key is to be properly prepared. If you are not, your home could remain on the market longer than you expect because you are not attracting and getting offers from qualified buyers.

This can be a point where many home owners become frustrated and consider giving up their dream of selling their home themselves. However, there are sellers who accomplish selling their own homes very well. You can be one of them.

This industry report has been especially prepared to assist home sellers, such as yourself, understand the elements involved so you — on your own — can sell your home quickly and for the most amount of profit. To help you prepare, here are ten inside tips that you should be aware of before you make the decision as to whether or not this is the right approach for you.

10 Inside Tips for Selling Your Home Yourself

1. Price it Right
Correctly setting your asking price is critical. Setting your price too high can be as costly as setting it too low. Home prices are determined by fluctuations in the marketplace, not by your emotional attachment or by what you feel your home is worth. In order to establish a realistic price for your home, objectively compare the price, features, and condition of all similar homes in both your neighborhood and other similar ones that have sold in recent months. It is also important for you to be familiar with the terms of each potential sale. Terms are often as important as price in today’s market. Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will take away from your home sale. Prospective buyers may also request this kind of analysis of buying costs.

2. Prepare Your Home for Sale
The first impression is crucial. Make sure your home makes a positive statement by carefully inspecting all details and viewing it through the objective eyes of a buyer. Don’t gloss over needed repairs and fix-ups, as your prospective buyers won’t. Your job is to ensure that your home stands out favorably from the competition.

3. Prepare Yourself with All Necessary Legal Documentation
Not surprisingly, there are many important legal contracts and documents that you must assemble, complete, and understand. A partial checklist of forms that you will require for prospective buyers and for legal documentation is as follows:
* seller disclosure
* mortgage payoff
* deposit receipt
* buyer’s cost sheet
* personal property
* property survey / plot plan
* purchase contract
* loan application
* property profile fact sheet
* closing and settlement
* exclusion list
* seller’s statement of representation

4. Market Your Home Effectively
Beyond the sign you will put on your lawn, you should find effective ways to spread the word about your home. Local buyers can be reached through the newspaper, but this is only a small part of the market you’re after. Be sure you include the many buyers who could already be working with a Realtor®. To locate them, target as many top agents as possible in your market to see if the criteria of their buyers matches that of your home. Because out-of-town buyers are also an important target, you should create a strategy to reach these people as well. Above all, you should be very service-minded and make it easy for pre-qualified buyers to view your home. Ensure there is always someone available to answer the phone, pick up messages promptly, and be ready to give qualified prospects a tour of your home as soon as possible.

5. Remain Objective During a Showing of Your Home
Keep emotion out of the sale of your home, and the best way to do this during a showing is to remain physically in the background. If a prospective buyer says something negative about your home, it is better to counter-balance this point of view by illustrating the positives rather than becoming defensive.

6. Pre-Qualify Your Prospects
Don’t waste your time entertaining buyers who could never afford your home. Research their financial steadiness with respect to job security, salary, debts, liabilities, and credit standing.

7. Negotiate Effectively and Knowledgably
There will be many details to resolve before a sale can be considered final: price, terms, inspections, possession date, buyer concerns, and objections. Make sure you fully understand the contract you have drawn up so you can, in turn, explain details and ramifications to the buyer and make any amendments to the sale that are necessary. The contract you use should be thoroughly examined by your real estate attorney. Some real estate brokers may be willing to help you do this. While this is going on, manage the buyer’s interest in your home so that it doesn’t wane during negotiations.

8. Know Your Buyer
Your objective during negotiations is to control the pace and set the duration. Try to determine what your buyer’s motivation is. Does he or she need to move quickly? Do they have enough money to pay your asking price? Knowing this information will give you the advantage in the negotiation because you will know up front what you will need to do in order to get what you want.

9. Don’t Move Out Before You Sell
Studies have shown that it is more difficult to sell a home that is vacant. It looks forlorn, forgotten, and simply not appealing. It could even cost you money. If you move, you’re also telling buyers that you have a new home and are motivated to sell fast, which can — of course — give them an advantage at the negotiating table.

10. Know Why You’re Selling and Keep It To Yourself
The flip side of “understanding your buyer” is to “understand yourself.” Your reasons for selling will affect everything from your list price to how much time and money you’ll invest in getting your home ready for sale. Your motivation will help you determine what is more important to you: the money you walk away with or the length of time your property is on the market, or both. Different goals will dictate different strategies. As someone who wants to sell without a real estate agent in an effort to save the commission, it is likely that money is one of your primary considerations (see below). Whatever your reasons, however, it is important to keep them to yourself so as not to place yourself at a disadvantage at the negotiation table. When asked, simply say your housing needs have changed.

How to Assess Your Net Gain

To analyze whether or not you’ll end up ahead by choosing to sell on your own, consider the fact that most buyers do use a real estate agent because it doesn’t cost them anything for this service (i.e., the seller pays the agent’s fee). Be cautious; as buyers, investors, and speculators who seek out For-Sale-By-Owners are typically those in search of a bargain. The low-ball offers from these types of buyers will often net you much lower in the long run. What you’ll have to judge for yourself is the following:

Be prepared as possible with your marketing, negotiations, evaluations, showings, and all legalities.

Consider what it will cost you to effectively market your home and assemble all necessary materials from the “for sale” sign to any contracts.
What price will a buyer offer you as a “For Sale By Owner” minus the costs identified in Point 2 above? Is this net price higher than the price an experienced agent could net for you minus his/her commission?

9 Buyer Traps and How to Avoid Them

2007-02-06T14:33:00.000-08:00

9 Buyer Traps and How to Avoid Them

Buyer Beware!

No matter how you look at it, buying a home is a major investment. For many home buyers, it can be an even more expensive process than it needs to be because many people fall prey to at least a few of the many common (and costly) mistakes that trap them into either:
a. paying too much for the home they want
b. losing their dream home to another buyer, or
c. (worse) buying the wrong home for their needs.

A systemized approach to the home-buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.
This important report discusses the nine most common and costly of these home buyer traps , how to identify them, and what you can do to avoid them.

The 9 Buyer Traps

1. Bidding Blind
What price should you offer when you bid on a home? Is the seller’s asking price too high or does it represent a great deal? If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much or fail to make a competitive offer at all on an excellent deal.

2. Buying the Wrong Home
What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find they are now the owner of a home that is either too big or too small. Maybe they’re stuck with a longer-than-desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time up front to clearly define your wants and needs. Put it in writing and then use it as a yardstick with which to measure every home you look at.

3. Unclear Title
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases, or the like.

4. Inaccurate Survey
As part of your offer to purchase, make sure you request an updated property survey that clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g., additions to the house, a new swimming pool, a neighbor’s new fence that is extending a boundary line, etc.). Be very clear on these issues.

5. Undisclosed Fix-Ups
Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investments. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

6. Not Getting Mortgage Pre-Approval
Pre-approval is fast, easy, and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

7. Contract Misses
If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

8. Hidden Costs
Make sure you identify and uncover all costs — large and small — far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the “subtotal” — fees such as loan disbursement charges, underwriting fees, etc. Understand these in advance by having your lender project total charges for you in writing.

9. Rushing the Closing
Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last-minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

Find out if your agent offers a “buyer profile system” or “house hunting service” that takes the guesswork out of finding just the right home that matches your needs. This type of program will cross-match your criteria with all available homes on the market and supply you with printed information on an ongoing basis. A program like this can help you to affordably move into the home of your dreams.

27 Valuable Tips You Should Know to Get Your Home SOLD FAST and for TOP DOLLAR

2007-02-06T14:30:00.000-08:00

27 Valuable Tips You Should Know to Get Your Home SOLD FAST and for TOP DOLLAR

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life.

To better understand the home selling process, this guide has been prepared from current industry “insider” reports. Through these 27 tips, you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, andmake the most profit possible.

1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at; to how much time, money, and effort you’re willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer, thus determining a different approach.

2. Keep the Reason(s) You Are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself, you don’t provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you would be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason(s) you are selling is only for you to know.

3. Before Setting a Price, Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high, you run the risk of not being taken seriously by buyers and their agents and pricing too low can result in selling for much less than you were hoping for.

Setting Your Home’s Sale Price

If you live in a subdivision:
If your home is comprised of similar or identical floor plans and built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.

If you live in an older neighborhood:
As neighborhoods change over time, each home may be different in minor or substantial ways. Because of this, you will probably find that there aren’t many homes truly comparable to your own. In this case, you may want to consider seeking a Realtor® to help you with the pricing process.

If you decide to sell on your own:A good way to establish a value is to look at homes that have sold in your neighborhood within the past six months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also, a trip to City Hall can provide you with home sale information in its public records for most communities.

4. Do Some “Home Shopping” Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location, and other features. Particularly note, not only the asking prices, but what they are actually selling for. Remember, if you’re serious about getting your home sold fast, don’t price it higher than your neighbor’s.

5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you’ll hear.

6. Tax Assessments — What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home’s true value.

7. Deciding on a Realtor®
According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn’t do it again themselves. Primary reasons include setting a price, marketing handicaps, liability concerns, and time constraints. When deciding on a Realtor®, consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm, and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.

If you choose to sell on your own, you can still talk to a Realtor®. Many are more than willing to help do-it-yourselfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily rely on.

8. Ensure You Have Room to Negotiate
Before settling on your asking price, make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you’ll price high to maximize your profit or price closer to market value if you want to sell quickly.

9. Appearances Do Matter — Make Them Count!
Appearance is so critical that it would be unwise to ignore it when selling your home. The look and “feel” of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell, even though you may have priced your home to sell.

10. Invite the Honest Opinion of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don’t be shy about seeking the honest opinions of others. You need to be objective about your home’s good points, as well as the bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.

11. Get it Spic’N’Span Clean and Fix Everything — Even if it Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn’t work, and the tiny crack in the bathroom mirror because these can be deal killers and you’ll never know what turns buyers off. Remember, you’re not just competing with other resale homes, but brand-new ones as well.

12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone’s life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige, and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-décor magazines are great for tips.

13. Deal Killer Orders — Must Go!
You may not realize it, but odd smells (like traces of food, pets, or smoking odors) can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they’ll start being aware of odors and seeing stains that may not even exist. Don’t leave any clues.

14. Be a Smart Seller — Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.

15. It’s Better with More Prospects
When you maximize your home’s marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.

16. Keep Emotions in Check During Negotiations
Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.

17. Learn Why Your Buyer is Motivated
The better you know your buyers, the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly? Armed with this information, you are in a better position to bargain.

18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his or her down payment is. If their offer is low, ask the Realtor® about the buyer’s ability to pay what your home is worth.

19. When the Buyer Would Like to Close
Quite often, when buyers would “like” to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.

20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you’re still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.

21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it’s more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, and no longer an appealing sight. Buyers start getting the message that you have another home and are probably motivated to sell. This could cost you thousands of dollars.

22. Deadlines Create a Serious Disadvantage
Don’t try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.

23. A Low Offer — Don’t Take it Personally
Invariably, the initial offer is below what both you and the buyer knows he or she will pay for your property. Don’t be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date, and any special requests. This can simply provide a starting point from which you can negotiate.

24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.

25. Maybe the Buyer is Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure and suggest they compare your price to the prices of homes for sale in your neighborhood.

26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs, and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, the address of the property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, any contingencies that remain to be settled, and what personal property is included in (or excluded from) the sale.

27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.

Now You Can Realize the Dream of Owning Your Own Home with Zero Down Payment

2007-02-06T14:28:00.000-08:00

Now You Can Realize the Dream of Owning Your Own Home with Zero Down Payment

The Zero Cash Down Payment Program offers you a way to buy a home with no down payment. That’s right, zero down payment.

You may have owned a home before and are presently renting, or are a first-time home buyer and need a way to break into the housing market but held back because you thought you required a substantial down payment. Or you may be in the position where you do not want to liquidate your financial assets to use as a down payment on a home. Regardless of your present situation, you want a way to get into (or to re-enter) the housing market without having to make a cash down payment. The Zero Cash Down Payment Program may be just the answer you need. Here’s what’s required for the Zero Cash Down Payment Program.

Program Qualifications:

1. An excellent credit history:No recent history of bad debts.Consistent and timely payment of current liabilities.

2. Limited liabilities.You will be required to disclose all the current liabilities you have in order to determine how much more debt you can carry (i.e., present car loan, credit cards, etc.).

3. At least three years of employment stability.You will be required to show proof of employment for the past three years, i.e., a letter of employment from your employer or financial statements for the past three years if self-employed.

4. The financial ability to carry larger monthly payments.Without a down payment, you will be required to meet the obligation of larger mortgage payments. Your monthly payments could vary from a few to several hundred dollars more per month.

Under the Terms of the Program, You CAN Purchase Many Types of Properties. This could include:
a. Detatched, or semi-detached homes
b. Free-hold townhomes
c. Condominium townhomes

It is important to note that not all properties qualify for the Zero Cash Down Payment Program.
To ensure you get an accurate picture of what properties may or may not be included in this program in your particular area, it is advisable to review the terms of the program with your Realtor®.

Buy a Home with Zero Down

2007-02-06T14:21:00.000-08:00

Buy a Home with Zero Down

If you are looking to purchase a home but find that you either do not have enough saved for a down payment or you do not want to liquidate financial assets to use as a down payment, this report reveals how you can purchase a home with no money down.
This special “insider” industry report has been prepared to outline what you need to know in order to take advantage of this innovative program and allows you to get into the housing market immediately with zero down payment.

Benefits of the Zero Cash Down Payment Program

1. No Down Payment
If you are renting, why pay your landlord’s mortgage? Why not reap the benefit of building your own equity? Are you renting because you are held back from owning your own home because you think you need a substantial down payment?
The general perception of many would-be homeowners (and even some Realtors®) is that a substantial down payment is required in order to purchase a home. This is simply not true. Because of this perception, many would-be home buyers feel they have to save for years before they have enough money for a down payment so that they can finally enter the housing market. In the meantime, they are lining someone else’s pockets while waiting a long time before they can start building their own equity. Well, with the Zero Cash Down Payment Program, you don’t need a down payment to buy a home.

2. Buy a Home Now!
If needing a down payment is keeping you from owning your own home, this new program offers you an immediate way to get into the housing market. With the Zero Cash Down Payment Program, you don’t have to wait to purchase a home.

3. Approved Bank Program
It is important to know that the Zero Cash Down Payment Program is an approved bank program. Review this program with your lender or Realtor® who has specialized knowledge in financing and can assist you with the Zero Cash Down Payment Program.