joseph-scuteri

Twelve Tips for Hiring a Remodeling Contractor

Wed, 29 Jan 2025 20:43:46 GMT

Get at least three written estimates
Get references and call to check on the work. If possible, go by and visit earlier jobs.
Check with the local Chamber of Commerce or Better Business Bureau for complaints.
Be sure that the contract states exactly what is to be done and how change orders will be handled.
Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
Be sure that the contractor has the necessary permits, licenses, and insurance.
Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it.
Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
Get the contractor to indemnify you if work does not meet any local building codes or regulations.
Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
Guarantee that materials used meet your specifications.
Don’t make the final payment until you’re satisfied with the work.

Remodeling That Pays

Wed, 29 Jan 2025 20:41:55 GMT

Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it’s time to sell? A 2002 survey by Remodeling Magazine and REALTOR® Magazine has the answer. To see the complete article, visit http://www.realtor.org/rmomag.nsf/pages/costvaluedec02

Twelve Tips for Hiring a Remodeling Contractor

Get at least three written estimates
Get references and call to check on the work. If possible, go by and visit earlier jobs.
Check with the local Chamber of Commerce or Better Business Bureau for complaints.
Be sure that the contract states exactly what is to be done and how change orders will be handled.
Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
Be sure that the contractor has the necessary permits, licenses, and insurance.
Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it.
Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
Get the contractor to indemnify you if work does not meet any local building codes or regulations.
Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
Guarantee that materials used meet your specifications.
Don’t make the final payment until you’re satisfied with the work.

Does Moving Up Make Sense?

Wed, 29 Jan 2025 20:35:59 GMT

The answers to these questions will help you decide:

How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
Has your income increased enough to cover the extra mortgage costs and the costs of moving.
Is the neighborhood still a good one for your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited? Also, do you want to undertake the headaches of remodeling yourself?
How is the home market? If it’s good, you may get top dollar for your home.
How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Understanding Capital Gains in Real Estate

Wed, 29 Jan 2025 20:34:33 GMT

When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain

In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:

Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.
Add Adjustments:
---Cost of the purchase—including transfer fees, attorney fees, inspections, but not points you paid on your mortgage
---Cost of sale—including inspections, attorney’s fee, real estate commission, and money you spent to fix up your home just prior to sale.
--Cost of improvements—including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
The total of this is the adjusted cost basis of your home.
Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.

A Special Real Estate Exemption for Capital Gains

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria

You have lived in the home as your principal residence for two out of the last five years.

You have not sold or exchanged another home during the two years preceding the sale.

Also note that as of 2003, you may also qualify for this exemption if you meet what the IRS calls “unforeseen circumstances” such as job loss, divorce, or family medical emergency.

What is Appraised Value?

Wed, 29 Jan 2025 20:31:34 GMT

It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.

For buying and selling purposes, appraisals are usually based on market value—what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.

Appraised value doesn’t consider special considerations, like the need to sell rapidly.

Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.

Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.com .

Twenty Low-Cost Ways to Spruce Up Your Home

Wed, 29 Jan 2025 20:28:02 GMT

Make your home more appealing for yourself and for potential buyers with these quick and easy tips.

Trim bushes so they don’t block windows and cut down on light
Buy a new doormat.
Put a pot of bright flowers (or a small evergreen in winter) on your porch.
Put new doorknobs on your front door
Put a fresh coating on your driveway.
Edge the grass around walks and trees.
Keep your garden tools out of site.
Be sure kids put away their toys
Buy a new mailbox
Upgrade your outside lighting.
Use warm, incandescent light bulbs for a homey feel.
Polish or replace your house numbers.
Clean your gutters.
Put out potpourri or burn scented candles
Buy new pillows for the sofa
Buy a flowering plant and put in a window you pass by frequently
Make a centerpiece for your table with fruit or artificial flowers.
Replace heavy curtains with sheer ones that let in more light.
Buy new towels
Put a seasonal wreath on your door

Six Items to Have on Hand for the New Owners

Wed, 29 Jan 2025 20:25:23 GMT

Owner’s manuals for items left in the house
Warranties for any items left in the house
A list of local service providers—the best dry cleaner, yard service, etc.
Garage door opener
Extra sets of house keys
Code to burglar alarm and phone number of monitoring service if not discontinued.

Moving Tips for Sellers

Wed, 29 Jan 2025 20:23:25 GMT

Give your forwarding address to the post office, usually 2-4 weeks ahead of the move.
Notify our charge cards, magazine subscriptions, and bank of the change of address.
Develop a list of friends, relatives, and business colleagues who need to be notified of the move.
Arrange to have utilities disconnected at your old home and connected at your new one.
Cancel the newspaper.
Check insurance coverage for moved items. Usually movers only cover what they pack.
Clean out appliances and prepare them for moving, if applicable.
Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.
Check with your condo or co-op about restrictions on using the elevator or particular exits.
Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town:

Get copies of medical and dental records and prescriptions for your family and your pets.
Get copies of children’s school records for transfer.
Ask friends for introductions to anyone they know in your new neighborhood.
Consider special car needs for pets when traveling.
Let a friend or relative know your route.
Carry traveler’s checks or an ATM card for ready cash until you can open a bank account.
Empty your safety deposit box.
Put plants in boxes with holes for air circulation if you’re moving in cold weather.

Six Items to Have on Hand for the New Owners

Owner’s manuals for items left in the house
Warranties for any items left in the house
A list of local service providers—the best dry cleaner, yard service, etc.
Garage door opener
Extra sets of house keys
Code to burglar alarm and phone number of monitoring service if not discontinued.

What You’ll Net at Closing

Wed, 29 Jan 2025 20:04:47 GMT

To find out how much money you’ll net from your house, add up your closing costs and subtract them from the sale price of the house.

Seven Terms to Watch for in a Purchase Contract

Wed, 29 Jan 2025 19:55:41 GMT

The closing date. See if the date the buyer wants to take title is reasonable for you.
Date of possession. See if the date the buyer wants to move in is reasonable for you.
The earnest money. Look for the largest earnest money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer.
Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final.
The contract expiration date. See how long you have to make a decision on the offer

Ten Ways to Make Your Home Irresistible at an Open House

Wed, 29 Jan 2025 19:52:35 GMT

Put fresh or silk flowers in principal rooms for a touch of color.
Add a new shower curtain, fresh towels, and new guest soaps to every bath.
Set out potpourri or fresh baked goods for a homey smell.
Set the table with pretty dishes and candles.
Buy a fresh doormat with a clever saying.
Take one or two major pieces of furniture out of every room to create a sense of spaciousness.
Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.
Lay a fire in the fireplace. Or put a basket of flowers there if it’s not in use.
Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.
Turn on the sprinklers for 30 minutes to make the lawn sparkle.

Seven Steps to Preparing for an Open House

Wed, 29 Jan 2025 19:51:02 GMT

Hire a cleaning service. A spotlessly clean home is essential; dirt will turn off a prospect faster than anything.
Mow your lawn, and be sure toys and yard equipment are put away.
Serve cookies, coffee, and soft drinks. It creates a welcoming touch. But be sure the kitchen has been cleaned up; use disposable cups so the sink doesn’t fill up.
Lock up your valuables, jewelry, and money. Although the real estate salesperson will be on site during the open house, it’s impossible to watch everyone all the time.
Turn on all the lights. Even in the daytime, incandescent lights add sparkle.
Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (a basement or bath), and let the salesperson know where to find them.
Leave. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

Five Ways to Speed Up Your Sale

Wed, 29 Jan 2025 19:50:05 GMT

Price it right. Set a price at the lower end of your property’s realistic price range.
Get your house market ready for at least two weeks before you begin showing it.
Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.

Ten Ways to Make Your House More Salable

Wed, 29 Jan 2025 19:48:35 GMT

Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.
Wash your windows and screens to let more light into the interior.
Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.
Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.
Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.
Make minor repairs that can create a bad impression. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.
Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.
Patch holes in your driveway and reapply sealant, if applicable.
Clean your gutters.
Polish your front doorknob and door numbers.

Tips for Holding a Yard Sale

Wed, 29 Jan 2025 19:45:52 GMT

Use a yard sale to reduce the clutter in your home and get rid of items you don’t want to move.

Check with your city government to see if you need a permit or license.
See if neighbors want to participate and have a “block” sale to attract more visitors.
Advertise. Put an ad in free classified papers, put up signs and balloons at major intersections and in stores near your home.
Price items ahead and attach prices with removable stickers. Remember, yard sales are supposed to be bargains, so don’t try to sell anything of significant value this way.
Check items before the sale to be sure you haven’t including something you want by mistake.
Keep pets away from the sale.
Display everything neatly and individually so customers don’t have to dig through boxes.
Have an electrical outlet so buyers can test appliances.
Have plenty of bags and newspaper for wrapping fragile items.
Get enough change, and keep a close eye on your cash.

Five Things to Do Before You Sell

Wed, 29 Jan 2025 19:14:15 GMT

Get estimates from a reliable repairperson on items that need to be replaced soon, a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.
Have a termite inspection to prove to buyers that the property is not infested.
Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.
Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.
Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.

Understanding Agency

Wed, 29 Jan 2025 19:10:51 GMT

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transactions. Ask your salesperson to explain what type of agency relationship you have with him or her and with the brokerage company.

Seller's representative (also known as a listing agent or seller's agent). A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.
Subagent . A subagent owes the same fiduciary duties to the agent's principal as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not representing the buyer as a buyer’s representative or operating in a nonagency relationship, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.
Buyer's representative (also known as a buyer’s agent). A real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or by a commission split with the listing broker.
Disclosed dual agent . Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them is legal in most states.
Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.
Nonagency relationship (called, among other things, a transaction broker or facilitator). Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Tips for Packing Like a Pro

Fri, 24 Jan 2025 21:51:04 GMT

Develop a master “to do” list so you won’t forget something critical.
Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.
Don’t throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you’d feel if you no longer had it.
Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.
Decide what if anything you plan to move yourself. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you.
Use the right box for the item. Loose items encourage breakage.
Put heavy items in small boxes so they’re easier to lift. Keep weight under 50 lbs. if possible.
Don’t over-pack boxes and increase the chances they will break.
Wrap every fragile item separately and pad bottom and sides of boxes.
Label every box on all sides. You never know how they’ll be stacked and you don’t want to have to move other boxes aside to find out what’s there.
Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.
Keep your moving documents together, including phone numbers, driver’s name and van number. Also keep your address book handy.
Back up your computer files before moving your computer.
Inspect each box and all furniture for damage as soon as it arrives.
Remember, most movers won’t take plants.

What to Keep from Your Closing

Fri, 24 Jan 2025 21:44:20 GMT

The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need for income tax purposes and when you sell the home.
The Truth in Lending Statement summarizes the terms of your mortgage loan.
The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
The deed transfers ownership of the property to you.
Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
Insurance policies provide a record and proof of your coverage.

Common Closing Costs for Buyers

Fri, 24 Jan 2025 21:40:42 GMT

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

Downpayment
Loan origination fees
Points, or loan discount fees you pay to receive a lower interest rate
Appraisal fee
Credit report
Private mortgage insurance premium
Insurance escrow for homeowners insurance, if being paid as part of the mortgage
Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
Deed recording fees
Title insurance policy premiums
Survey
Inspection fees—building inspection, termites, etc.
Notary fees
Prorations for your share of costs such as utility bills and property taxes.

A Note About Prorations . Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

What Not to Overlook on a Final Walk-through

Fri, 24 Jan 2025 19:47:15 GMT

Be sure that:

repairs you’ve requested have been made. Obtain copies of paid bills and any related warranties
all items that were included in the sale price—draperies, lighting fixtures—are still there.
screens and storm windows are in place or stored.
all appliances are operating.
intercom, doorbell, and alarm are operational
hot water heater is working
HVAC is working
no plants or shrubs have been removed from the yard
garage door opener and other remotes are available.
instruction books and warranties on appliances and fixtures are there
all personal items of the sellers and all debris have been removed.

Five Things to Understand about Homeowners Insurance

Fri, 24 Jan 2025 19:37:41 GMT

Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.
Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.
Understand replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.
Understand actual cash value. If you chose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.
Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.

Ten Ways to Lower Your Homeowners Insurance Costs

Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.
Buy your homeowners and auto policies from the same company and you’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.
Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.
Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.
Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.
Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.
Stay with the same insurer. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.
See if you belong to any groups—associations, alumni groups—that offer lower insurance rates.
Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.
See if there’s a government-backed insurance plan. In some high-risk areas, such as coasts, federal or state government may back plans to lower rates. Ask your agent.

Choices that Will Affect Your Loan

Fri, 24 Jan 2025 19:32:10 GMT

Mortgage term. Mortgages are generally available at 15-, 20-, or 30-year terms. The longer the term, the lower the monthly payment if the same amount is borrowed. However, you pay more interest overall if you borrow for a longer term.
Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate for as long as you hold the mortgage and is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that interest rates will rise as interest rates increase; however they usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. ARMs are a good choice when interest rates are high or when you expect your income to grow significantly in the coming years.
Balloon mortgages offer very low interest rates for a short period of time—often three to seven years. Payments usually cover only the interest, so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
Government-backed loans, sponsored by agencies such as the Federal Housing Administration (www.fha.gov) or the Department of Veterans Affairs (www.va.gov), offer special terms, including lower downpayments or reduced interest rates-- to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment.

For help in determining how much your monthly payment will be for various loan amounts, use this online calculator.

http://www.realtor.org/realtororg.NSF/pages/FMCalculators?OpenDocument&Login

Ten Things a Lender Needs from You

Fri, 24 Jan 2025 19:28:06 GMT

W-2 forms or business tax return forms if your self-employed for the last two or three years for every person signing the loan.
Copies of one or more months of pay stubs for every person signing the loan.
Copies of two to four months of bank or credit union statements for both checking and savings accounts.
Copies of personal tax forms for the last two to three years.
Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account. .
Copies of your most recent 401(k) or other retirement account statement.
Documentation to verify additional income, such as child support, pension, etc.
Account numbers of all your credit cards and the amounts of any outstanding balances
Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.
Addresses where you lived for the last five to seven years, with names of landlords if appropriate.

Six Creative Ways to Afford a Home

Fri, 24 Jan 2025 18:47:01 GMT

If your income and savings are making home buying a challenge, consider these options.

Investigate local, state, and national downpayment assistance programs. These programs give loans or grants to cover all or part of your required downpayment. National programs include the Nehemiah program (http://www.getdownpayment.com/) and the American Dream downpayment fund from the Department of Housing and Urban Development. http://www.hud.gov/news/release.cfm?content=pr02-014.cfm
Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do a mortgage.
Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family or friends or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors’ names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.
Get help from your family. Perhaps a family member will loan you money for the downpayment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history
Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your downpayment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.
See if you can qualify for a short-term second mortgage to give you the money to make a higher downpayment. This may be possible if you have a good income and little other debt.

Ten Questions to Ask Your Condo Board

Fri, 24 Jan 2025 18:44:38 GMT

Before you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive—and organized—its members are.

What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you.
How much does the association keep in reserve? How is that money being invested?
Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
What does and doesn’t the assessment cover—common area maintenance, recreational facilities, trash collection, snow removal?
What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.
How much turnover occurs in the building?
Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.
Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

Five Property Tax Questions You Need to Ask

Fri, 24 Jan 2025 18:39:59 GMT

What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.

Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.

Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?

Does the current tax bill reflect any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.

How Comprehensive is Your Home Warranty?

Fri, 24 Jan 2025 18:36:45 GMT

Check your home warranty policy to see which of the following items are covered. Also check to see if the policy covers the full replacement cost of an item.

Plumbing

Electrical Systems

Water Heater

Furnace

Heating Ducts

Water Pump

Dishwasher

Stove/Cooktop/Ovens

Microwave

Refrigerator

Washer/Dryer

Swimming Pool (may be optional)

What Your Home Inspection Should Cover

Fri, 24 Jan 2025 18:32:22 GMT

Siding: Look for dents or buckling

Foundations: Look for cracks or water seepage

Exterior Brick: Look for cracked bricks or mortar pulling away from bricks

Insulation: Look for condition, adequate rating for climate (the higher the R value, the more effective the insulation is)

Doors and Windows: Look for loose or tight fits, condition of locks, condition of weatherstripping

Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts

Ceilings, walls, and moldings. Look for loose pieces, dry wall that is pulling away.

Porch/Deck: Loose railings or step, rot

Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room.

Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation

Water Heater: Look for age, size adequate for house, speed of recovery, energy rating.

Furnace/Air Conditioning: Look for age, energy rating. Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs. However, other factors such as payback period and other operating costs, such as electricity to operate motors.

Garage: Look for exterior in good repair; condition of floor—cracks, stains, etc.; condition of door mechanism.

Basement: Look for water leakage, musty smell.

Attic: Look for adequate ventilation, water leaks from roof.

Septic Tanks (if applicable): Adequate absorption field capacity for the percolation rate in your area and the size of your family.

Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling near edges, stains.

Hidden Home Defects to Watch For

Fri, 24 Jan 2025 18:29:01 GMT

No home is flawless, but certain physical problems can be expensive. Watch for:

Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.
Shifting foundations. Look for large cracks along the home’s foundation.
Drainage. Look for standing water, either around the foundation of the home of in the yard.
Termites. Look for weakened or grooved wood, especially near ground level.
Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.
Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.
Plumbing problems: Very low water pressure, banging in pipes

Ten Questions to Ask A Home Inspector

What are your qualifications? Are you a member of the American Association of Home Inspectors?
Do you have a current license? Inspectors are not required to be licensed in every state.
How many inspections of properties such as this do you do each year?
Do you have a list of past clients I can contact?
Do you carry professional errors and omission insurance? May I have a copy of the policy?
Do you provide any guarantees of your work?
What specifically will the inspection cover?
What type of report will I receive after the inspection?
How long will the inspection take and how long will it take to receive the report?
How much will the inspection cost?

Ten Tips for First-Time Homebuyers

Fri, 24 Jan 2025 18:25:11 GMT

Be picky, but don’t be unrealistic. There is no perfect home.
Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.
Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.
Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

Five Common First-Time Homebuyer Mistakes

Fri, 24 Jan 2025 18:21:50 GMT

They don’t ask enough questions of their lender and miss out on the best deal.

They don’t act quickly enough to make a decision and someone else buys the house.

They don’t find the right agent whose willing to help them through the homebuying process.

They don’t do enough to make their offer look good to a seller.

They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)

Seven Reasons to Own Your Own Home

Fri, 24 Jan 2025 18:18:05 GMT

Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you, pay, as well as some of the costs involved in buying your home.
Gains. Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there’s no guarantee of appreciation, a 2001 study by the National Association of REALTORS® found that typical homeowner has approximately $50,000 of unrealized gain in a home.
Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Predictability. Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

To calculate whether renting or buying is the best financial option for you, use this calculator courtesy of Ginnie Mae.

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH

How Big A Mortgage Can I Afford?

Fri, 24 Jan 2025 18:12:58 GMT

Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 and 7 percent of the home price.
Get your credit in order. Obtain a copy of your credit report.
Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
Organize all the documentation a lender will need to preapprove you for a loan.
Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
Find an experienced REALTOR® who can help you through the process.

Ten Steps to Prepare for Home Ownership

Fri, 24 Jan 2025 18:09:55 GMT

Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 and 7 percent of the home price.
Get your credit in order. Obtain a copy of your credit report.
Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
Organize all the documentation a lender will need to preapprove you for a loan.
Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
Find an experienced REALTOR® who can help you through the process.

Five Reasons You Need a Real Estate Agent

Fri, 24 Jan 2025 17:47:03 GMT

A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of ____ days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.
Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.
REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
REALTORS® provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, home selling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

The Pros and Cons of Condos

Thu, 23 Jan 2025 01:31:21 GMT

Condominiums and townhouses offer an affordable option to single-family homes in most areas. But consider these facts before you buy.

Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongs.

Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you hate yard work, this may be perfect option for you.

Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home.

Security. Many condos have keyed entries and or even doormen. Plus, you’ll be closer to other people in case of an emergency.

Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.

Resale. The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar. Single-family homes are usually more individual, so ever if there are others for sale in your area, they probably won’t be exactly like yours.

Freedom. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

Proximity. You’re much closer to your neighbors in a condo or town home. Look at profile of other owners be sure you’ll be comfortable. If possible, try to meet your closest prospective neighbors.

Tips on Buying in a Tight Market

Thu, 23 Jan 2025 01:25:47 GMT

Increase your chances of getting your dream house instead of losing it to another buyer, with these easy steps.

Get prequalified for a mortgage. In this way, you’ll be able to make a firm commitment to buy and make your offer more desirable to the seller.

Stay in close touch with your real estate sales associate to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.

Scout out new listings yourself. Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you’ll see a brand-new “for sale” sign before anyone else.

Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won’t be unsure when you have the chance to make an offer.

Bid competitively. You may not want to start out offering the absolutely highest price you can afford, but don’t try to go to low and get a deal. In a tight market, you’ll lose out.

Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell you house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.

Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy anything. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.

Tips for Finding the Perfect Neighborhood

Thu, 23 Jan 2025 01:19:13 GMT

The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.

Make a list of the activities—movies, health club, church-- you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.

Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future. Another source is www.scorecard.org

Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area? Another source is www.homestore.com

Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising? What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

See if you’ll make money. Ask a local REALTOR® or call the local REALTOR® Association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. A REALTOR® or the government planning agency may also be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.

See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

Your Property Wish List

Thu, 23 Jan 2025 01:17:18 GMT

While your opinions on the type of home you want to own may change during the homebuying process, use this easy checklist to help you set your prioritize and make the shopping process less time consuming.

How close do you need to be to (a) public transportation _____ (b) schools _______ (c) airport ___________ (d) expressway _________ (e) neighborhood shopping________ (f) other________.

What neighborhoods would you prefer?

What school systems do you want to be near?

What architectural style(s) of homes do you prefer?

Do you want a one story or two-story house?

How old a home would you consider?

How much repair or renovation would you be willing to do?

Do you have special facilities or needs that your home must meet?

Do you require a fenced yard or other amenities for your pets?

Five Factors that Decide Your Credit Score

Thu, 23 Jan 2025 00:36:50 GMT

Scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

Your Payment History. Whether you paid credit card obligations on time.

How Much You Owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.

The Length of Your Credit History. In general the longer the better.

How Much New Credit You Have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

The Types of Credit You Use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, go to http://www.myfico.com/?lpid=NARI3.

Eight Ways to Improve Your Credit

Thu, 23 Jan 2025 00:07:12 GMT

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
Don’t charge your credit cards to the maximum limit.
Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
Don’t order items for your new home you’ll buy on credit—such as appliances—until after the loan is approved. The amounts will add to your debt.
Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit http://www.homebuyingguide.org/

Budget Basics Work Sheet

Wed, 22 Jan 2025 23:59:19 GMT

The first step in getting yourself in financial shape to buy a home is to know what you make and what you spend now. List your income and expenses below.

Eight Steps to Getting Your Finances in Order

Wed, 22 Jan 2025 23:29:43 GMT

Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses such as car repairs, illnesses, etc., as well as predictable costs such as rent.
Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to a between 8 and 10 percent of your total income.
Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
Increase your income. It may be necessary to take on a second, part-time job to get your income at a high enough level to qualify for the home you want
Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20-percent downpayment.
Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. pay of the entire balance promptly.

joseph-scuteri

Twelve Tips for Hiring a Remodeling Contractor

Remodeling That Pays

Does Moving Up Make Sense?

Understanding Capital Gains in Real Estate

What is Appraised Value?

Twenty Low-Cost Ways to Spruce Up Your Home

Six Items to Have on Hand for the New Owners

Moving Tips for Sellers

Six Items to Have on Hand for the New Owners ﻿

What You’ll Net at Closing

Seven Terms to Watch for in a Purchase Contract

Ten Ways to Make Your Home Irresistible at an Open House

Seven Steps to Preparing for an Open House

Five Ways to Speed Up Your Sale

Ten Ways to Make Your House More Salable

Tips for Holding a Yard Sale

Five Things to Do Before You Sell

Understanding Agency

Tips for Packing Like a Pro

What to Keep from Your Closing

Common Closing Costs for Buyers

What Not to Overlook on a Final Walk-through

Five Things to Understand about Homeowners Insurance

Ten Ways to Lower Your Homeowners Insurance Costs ﻿

Choices that Will Affect Your Loan

Ten Things a Lender Needs from You

Six Creative Ways to Afford a Home

Ten Questions to Ask Your Condo Board

Five Property Tax Questions You Need to Ask

How Comprehensive is Your Home Warranty?

What Your Home Inspection Should Cover

Hidden Home Defects to Watch For

Ten Questions to Ask A Home Inspector ﻿

Ten Tips for First-Time Homebuyers

Five Common First-Time Homebuyer Mistakes

Seven Reasons to Own Your Own Home

How Big A Mortgage Can I Afford?

Ten Steps to Prepare for Home Ownership

Five Reasons You Need a Real Estate Agent

The Pros and Cons of Condos

Tips on Buying in a Tight Market

Tips for Finding the Perfect Neighborhood

Your Property Wish List

Five Factors that Decide Your Credit Score

Eight Ways to Improve Your Credit

Budget Basics Work Sheet

Eight Steps to Getting Your Finances in Order

Six Items to Have on Hand for the New Owners

Ten Ways to Lower Your Homeowners Insurance Costs

Ten Questions to Ask A Home Inspector