Research shows that for most of us, the equity in our homes is more than three times greater than the value of all our other investments combined. In spite of the cyclical volatility in the housing market, you can increase the long-term equity in your home through regular maintenance and well-planned improvements.
Postponing needed maintenance can substantially reduce your home’s market value when you decide to sell it. The three types of maintenance most commonly deferred are water damage, pests and roof repair or replacement.
Remodeling can add improvements that will make your home more functional and pleasurable to live in now as well as more valuable when you do put it on the market. Updating your kitchen and bathrooms are your best remodeling investment while converting a basement into a family room, adding a sport court or swimming pool provide the lowest return in terms of increased equity.
Prospective buyers are looking for a home that best fits their living needs with a minimum of work before they move in. While you may not be ready to sell right now, making sure your home is properly maintained and tastefully updated can provide a handsome return on your investment when you do decide to sell.
Please contact us if we can answer any questions or provide you with additional information.
Tuesday, January 29, 2008
Friday, January 18, 2008
We Won 2007 NCW Realtor “Rookie” of the Year!
It’s hard for us to believe that just over one year ago we were teaching real estate agents how to be successful in their businesses and developing products to support their efforts. Now we’re implementing the same business model, systems, processes and cutting edge technology in our own business, and couldn’t be any happier doing it.
Thank you for making our first year in Wenatchee and in business a special one. In fact, we were named the North Central Washington Realtor Association’s Realtor “Rookie” of the Year. We’ve also been nominated to receive Realtor Magazine’s 30-Under-30 award, given to the top 30 Realtors in the United States under 30 years of age. We’re very proud of these accomplishments and recognition, and appreciate your business and friendship!
We are blessed to be enjoying so many amazingly positive experiences, business and personal learnings, and new friends! Warm regards and happy New Year!
Wednesday, January 16, 2008
Developer pushes big plans for resort on Columbia
Today's Wenatchee World reports exciting plans for a new resort and golf course on the Columbia, between Rock Island and Trinidad:
"Resort plans, which have been approved by Douglas County commissioners, call for 497 single-family homes and 628 condominium and townhouse units, ranging from about $250,000 to $1 million in price. About 85 percent of the units will have river views. Work on utilities, including a $12 million sewer plant, is expected to begin this summer."
Click below to see the entire story:
http://wenworld.com/apps/pbcs.dll/article?AID=/20080116/NEWS04/373562478
"Resort plans, which have been approved by Douglas County commissioners, call for 497 single-family homes and 628 condominium and townhouse units, ranging from about $250,000 to $1 million in price. About 85 percent of the units will have river views. Work on utilities, including a $12 million sewer plant, is expected to begin this summer."
Click below to see the entire story:
http://wenworld.com/apps/pbcs.dll/article?AID=/20080116/NEWS04/373562478
Monday, January 7, 2008
Cut Your Closing Costs
Closing is the point at which a contract between a buyer and a seller is executed, and the title to the property changes hands. This process has a variety of associated costs, most of which are paid at closing.
Normal Closing Costs
Closing costs can be highly variable since they're dependant on the size of the mortgage and the value of the property. Typically, closing costs are between three and five percent of the property's value, and may include the following:
* Loan origination fees - also called points (one point equals one percent of the mortgage). The standard fee is one point. Paying more points can secure a lower interest rate.
* Title search and insurance - a title search examines a property's historical records to ensure that the seller is the legal owner of the property. Title insurance protects the buyer if tax liens or unpaid mortgages are overlooked in the examination.
* Inspection fees - includes pest and property inspection.
* Mortgage broker fee - applicable only if you use a broker.
* Tax service fee - if the lender chooses to hire an independent service to monitor property tax payments.
* Document preparation and administration fees.
Payable in Advance
Most closing costs are paid when the sale of the property is finalized. However, some fees must be paid in advance, including:
* Application fee - the cost of processing the loan, usually payable at the time of application.
* Credit report fee - the buyer's credit history is reviewed as part of the application process.
* Appraisal fee for the property.
* Pre-paid interest - the interest on the loan from the day of closing until the first monthly mortgage payment.
* Escrow account funds - may include two months' worth of advance payments for mortgage insurance, hazard insurance, homeowner's insurance and property taxes.
Hidden Costs
So-called hidden costs are those which lenders are not required to disclose in the Good Faith Estimate. These can include:
* Courier fees * Notary fees * Documentation fees * Overnight delivery fees * Processing fees
You can save money on these hidden costs by asking lenders to send documents by regular mail rather than by overnight delivery, or by asking if they can transfer documents electronically.
Who Pays?In a typical situation, the buyer of a property will pay closing costs. However, you can sometimes persuade the seller to pay for some or all of the closing costs. If your immediate finances are tight, reducing the amount of cash you need to pay at closing can be very helpful.
If you ask the seller to pay some or all of your closing costs, it is essentially the same as negotiating a lower sale price for the property. To a seller who is asking $200,000 for their property, there is no difference in accepting an offer of $190,000 and accepting an offer of $195,000 which includes agreeing to pay $5,000 in closing costs. To you as the buyer, however, it means that you've reduced the amount of cash you need by $5,000. You may not save any money overall, but if the seller pays for closing, it means you pay less cash up front. If you want to ask the seller to pay for closing costs, it can be as simple as deciding what you want to offer for the property, adding your estimated closing costs to it - and then making that offer contingent on the seller paying for closing. Note that if the market is slow or the seller needs to sell quickly, you stand a better chance of negotiating successfully.
Normal Closing Costs
Closing costs can be highly variable since they're dependant on the size of the mortgage and the value of the property. Typically, closing costs are between three and five percent of the property's value, and may include the following:
* Loan origination fees - also called points (one point equals one percent of the mortgage). The standard fee is one point. Paying more points can secure a lower interest rate.
* Title search and insurance - a title search examines a property's historical records to ensure that the seller is the legal owner of the property. Title insurance protects the buyer if tax liens or unpaid mortgages are overlooked in the examination.
* Inspection fees - includes pest and property inspection.
* Mortgage broker fee - applicable only if you use a broker.
* Tax service fee - if the lender chooses to hire an independent service to monitor property tax payments.
* Document preparation and administration fees.
Payable in Advance
Most closing costs are paid when the sale of the property is finalized. However, some fees must be paid in advance, including:
* Application fee - the cost of processing the loan, usually payable at the time of application.
* Credit report fee - the buyer's credit history is reviewed as part of the application process.
* Appraisal fee for the property.
* Pre-paid interest - the interest on the loan from the day of closing until the first monthly mortgage payment.
* Escrow account funds - may include two months' worth of advance payments for mortgage insurance, hazard insurance, homeowner's insurance and property taxes.
Hidden Costs
So-called hidden costs are those which lenders are not required to disclose in the Good Faith Estimate. These can include:
* Courier fees * Notary fees * Documentation fees * Overnight delivery fees * Processing fees
You can save money on these hidden costs by asking lenders to send documents by regular mail rather than by overnight delivery, or by asking if they can transfer documents electronically.
Who Pays?In a typical situation, the buyer of a property will pay closing costs. However, you can sometimes persuade the seller to pay for some or all of the closing costs. If your immediate finances are tight, reducing the amount of cash you need to pay at closing can be very helpful.
If you ask the seller to pay some or all of your closing costs, it is essentially the same as negotiating a lower sale price for the property. To a seller who is asking $200,000 for their property, there is no difference in accepting an offer of $190,000 and accepting an offer of $195,000 which includes agreeing to pay $5,000 in closing costs. To you as the buyer, however, it means that you've reduced the amount of cash you need by $5,000. You may not save any money overall, but if the seller pays for closing, it means you pay less cash up front. If you want to ask the seller to pay for closing costs, it can be as simple as deciding what you want to offer for the property, adding your estimated closing costs to it - and then making that offer contingent on the seller paying for closing. Note that if the market is slow or the seller needs to sell quickly, you stand a better chance of negotiating successfully.
How to Avoid 8 Costly Moving Mistakes
If you have a move in your future, there are definite ways to make the process go as smoothly as possible. Plan ahead and you'll avoid these 8 costly moving mistakes.
1. Scheduling your move on the same day of closing
While most buyers take possession of their new home on the day of closing, there are a lot of conflicts that can arise unexpectedly. Be sure to keep in constant communication with your escrow company so as not to delay your moving plans.
2. Not requiring a written estimate
It's fine to have moving companies give you an estimate over the phone or Internet. But to get a firm price, you need to ask the company to send a representative to walk through your home while you point out exactly what you want transported. Be sure you understand the conditions of the estimate - can they raise your bill on delivery? Does the contract allow them to bill you for more later?
3. Choosing a moving company based on price alone
You could end up spending more time and money in the end trying to fix a moving disaster. Check out the company's references (try to get two), licensing, insurance and length of time in business.
4. Not making a first night survival kit
Better to be safe than sorry. If your shipment hasn't arrived or you're simply too tired to unpack everything, you'll be thankful to have an accessible overnight bag with some essential items you'll need for the first night in your new place. Don't forget toiletries, medication, children's and pet's necessities - and maybe even a bottle of champagne to celebrate.
5. Not using a dolly or a hand truck
Whether you're moving yourself or just rearranging things after a professional move, the money you spend to rent or buy moving equipment will pay for itself by dodging back strains and chiropractic visits.
6. Refusing extra coverage for loss and breakage
The basic limited liability coverage offered to you, free of charge, by the movers will not be sufficient. And most homeowners' policies don't cover items broken or lost in a move. Extra insurance can be purchased through an independent insurance company, which will cover you for the duration of the move. Your mover will be able to direct you to a company that will bind your move.
7. Not labeling boxes
When packing boxes, make sure you label the top and sides of boxes with contents, location of contents in your house and any special instructions, such as "fragile" or "open first." Also, by keeping a list of the contents on the outside of the box, you won't have to dig through several boxes marked "kitchen" just to find a pan.
8. Not keeping your receipts
If you're moving closer to a job, your moving costs may be tax-deductible. Keep receipts for moving household goods, utility change fees and lodging and travel expenses. However, if your employer covers those costs, you won't be allowed to deduct them.
1. Scheduling your move on the same day of closing
While most buyers take possession of their new home on the day of closing, there are a lot of conflicts that can arise unexpectedly. Be sure to keep in constant communication with your escrow company so as not to delay your moving plans.
2. Not requiring a written estimate
It's fine to have moving companies give you an estimate over the phone or Internet. But to get a firm price, you need to ask the company to send a representative to walk through your home while you point out exactly what you want transported. Be sure you understand the conditions of the estimate - can they raise your bill on delivery? Does the contract allow them to bill you for more later?
3. Choosing a moving company based on price alone
You could end up spending more time and money in the end trying to fix a moving disaster. Check out the company's references (try to get two), licensing, insurance and length of time in business.
4. Not making a first night survival kit
Better to be safe than sorry. If your shipment hasn't arrived or you're simply too tired to unpack everything, you'll be thankful to have an accessible overnight bag with some essential items you'll need for the first night in your new place. Don't forget toiletries, medication, children's and pet's necessities - and maybe even a bottle of champagne to celebrate.
5. Not using a dolly or a hand truck
Whether you're moving yourself or just rearranging things after a professional move, the money you spend to rent or buy moving equipment will pay for itself by dodging back strains and chiropractic visits.
6. Refusing extra coverage for loss and breakage
The basic limited liability coverage offered to you, free of charge, by the movers will not be sufficient. And most homeowners' policies don't cover items broken or lost in a move. Extra insurance can be purchased through an independent insurance company, which will cover you for the duration of the move. Your mover will be able to direct you to a company that will bind your move.
7. Not labeling boxes
When packing boxes, make sure you label the top and sides of boxes with contents, location of contents in your house and any special instructions, such as "fragile" or "open first." Also, by keeping a list of the contents on the outside of the box, you won't have to dig through several boxes marked "kitchen" just to find a pan.
8. Not keeping your receipts
If you're moving closer to a job, your moving costs may be tax-deductible. Keep receipts for moving household goods, utility change fees and lodging and travel expenses. However, if your employer covers those costs, you won't be allowed to deduct them.
Increase Your Home’s Value through Energy Efficient Upgrades
Increasing energy efficiency in the home is becoming more important for several reasons. It is, of course, a great way to reduce your monthly utility bills, but it's also important because the world's sources of energy are not infinite, and more people are recognizing this and looking at ways to make their homes more energy-efficient. Lastly, remodeling your home with energy efficiency in mind increases its value due to the resulting lower monthly utility costs.
Insulation
Good insulation is perhaps the most effective way of improving the energy efficiency of your home. However, some insulators are better than others. Fiberglass, once the most commonly-used insulator, is no longer as popular as it once was. Most fiberglass insulators are made using formaldehyde, and can release gas which decreases your air quality. Cellulose is a more efficient option; however some cellulose insulators may be treated with formaldehyde, so it pays to check before you by. Superior cellulose insulators are treated with ammonium sulfate or borates, both of which are non-toxic. Cotton insulation has been increasing in popularity, due to its efficacy and the fact that it is environmentally-friendly. Cotton insulation is treated with boron, and is fire-retardant, pest-repellant, and completely non-toxic.
Windows and Doors
The average home loses up to 30% of its heat (or air-conditioning) energy through windows. Well-sealed windows and exterior doors are just as important as insulation for preventing energy loss. However, many frame materials require maintenance and choosing framing material that provides greater energy efficiency is often a trade-off in which more frequent maintenance is required. Wood frames are the most efficient in terms of energy loss and cause less condensation than other materials, however they will require painting or staining to keep them looking attractive. Aluminum frames, on the other hand, need very little maintenance but they are at the bottom of the list in terms of energy efficiency. Aluminum-clad windows are much more efficient. These are wood frames with an aluminum exterior, and combine the efficiency of wood with the low maintenance requirements of traditional aluminum frames.
Cooling
Many of the measures you take to prevent heat loss in your home will also help keep it cooler during warm weather. In addition, consider installing ceiling fans in your home. These are a more energy-efficient way of cooling than air-conditioners.
Efficient Lighting
When it comes to installing energy-efficient lighting, there are two main options - light dimmers and motion sensors. Light dimmers are switches which allow you to control the intensity of lighting in a room. Motion sensors turn lights on and off automatically by sensing when people enter and leave a room. These are particularly effective in rooms which are used irregularly, and in outdoor areas.
Outdoors
In the outdoors, trees and large shrubs are a less obvious way of making your home more energy efficient. With the additional advantage of adding appeal to your yard, careful planting of trees can add windbreaks which shield your house from wind, helping to prevent heat loss. Trees can also provide shade during the summer months, and help keep your home cool.
Using an Energy-Efficient Mortgage to Finance Remodeling
Major remodeling jobs that are planned with energy efficiency in mind can be expensive. This kind of remodeling will save you money in the long term, but the start-up costs are high. One way of financing such remodeling is with an Energy-efficient Mortgage. To qualify for an EEM, the money you save on your monthly utility bills must be greater than the monthly repayment of the EEM, and your total savings must also be more than your total costs (including maintenance). When you are granted an EEM, you have 90-180 days to carry out the remodeling work. Additionally, you cannot be granted an EEM if you apply after remodeling has started, or if you apply after any other financing has been granted.
Insulation
Good insulation is perhaps the most effective way of improving the energy efficiency of your home. However, some insulators are better than others. Fiberglass, once the most commonly-used insulator, is no longer as popular as it once was. Most fiberglass insulators are made using formaldehyde, and can release gas which decreases your air quality. Cellulose is a more efficient option; however some cellulose insulators may be treated with formaldehyde, so it pays to check before you by. Superior cellulose insulators are treated with ammonium sulfate or borates, both of which are non-toxic. Cotton insulation has been increasing in popularity, due to its efficacy and the fact that it is environmentally-friendly. Cotton insulation is treated with boron, and is fire-retardant, pest-repellant, and completely non-toxic.
Windows and Doors
The average home loses up to 30% of its heat (or air-conditioning) energy through windows. Well-sealed windows and exterior doors are just as important as insulation for preventing energy loss. However, many frame materials require maintenance and choosing framing material that provides greater energy efficiency is often a trade-off in which more frequent maintenance is required. Wood frames are the most efficient in terms of energy loss and cause less condensation than other materials, however they will require painting or staining to keep them looking attractive. Aluminum frames, on the other hand, need very little maintenance but they are at the bottom of the list in terms of energy efficiency. Aluminum-clad windows are much more efficient. These are wood frames with an aluminum exterior, and combine the efficiency of wood with the low maintenance requirements of traditional aluminum frames.
Cooling
Many of the measures you take to prevent heat loss in your home will also help keep it cooler during warm weather. In addition, consider installing ceiling fans in your home. These are a more energy-efficient way of cooling than air-conditioners.
Efficient Lighting
When it comes to installing energy-efficient lighting, there are two main options - light dimmers and motion sensors. Light dimmers are switches which allow you to control the intensity of lighting in a room. Motion sensors turn lights on and off automatically by sensing when people enter and leave a room. These are particularly effective in rooms which are used irregularly, and in outdoor areas.
Outdoors
In the outdoors, trees and large shrubs are a less obvious way of making your home more energy efficient. With the additional advantage of adding appeal to your yard, careful planting of trees can add windbreaks which shield your house from wind, helping to prevent heat loss. Trees can also provide shade during the summer months, and help keep your home cool.
Using an Energy-Efficient Mortgage to Finance Remodeling
Major remodeling jobs that are planned with energy efficiency in mind can be expensive. This kind of remodeling will save you money in the long term, but the start-up costs are high. One way of financing such remodeling is with an Energy-efficient Mortgage. To qualify for an EEM, the money you save on your monthly utility bills must be greater than the monthly repayment of the EEM, and your total savings must also be more than your total costs (including maintenance). When you are granted an EEM, you have 90-180 days to carry out the remodeling work. Additionally, you cannot be granted an EEM if you apply after remodeling has started, or if you apply after any other financing has been granted.
Thought Provoking: 1/7/08
The Wooden Bowl
A frail old man went to live with his son, daughter-in-law and four-year old grandson. The old man's hands trembled, his eyesight was blurred and his step faltered. Even in this frail condition, he ate his meals with the family at the dinner table.
But the elderly grandfather's shaky hands and failing sight made eating difficult. Peas rolled off his spoon onto the floor. When he grasped the glass, milk spilled on the tablecloth.
The son and daughter-in-law became irritated with the mess. "We must do something about Grandfather," said the son. I've had enough of his spilled milk, noisy eating and food on the floor.So the husband and wife set a small table in the corner. There, Grandfather ate alone while the rest of the family enjoyed dinner. Since Grandfather had broken a dish or two, his food was served in a wooden bowl.
When the family glanced in Grandfather's direction, sometime he had a tear in his eye as he sat alone. Still, the only words the couple had for him were sharp admonitions when he dropped a fork or spilled food. The four-year-old watched it all in silence.
One evening before supper, the father noticed his son playing with wood scraps on the floor. He asked the child sweetly, "What are you making?" Just as sweetly, the boy responded, "Oh, I am making a little bowl so you and Mama can eat your food when I grow up." The four-year-old smiled and went back to work.
The words so struck the parents that they were speechless. Then tears started to stream down their cheeks. Though no word was spoken, both knew what they had to do.
That evening the husband took Grandfather's hand and gently led him back to the family table. For the remainder of his days the old man ate every meal with the family. And for some reason, neither husband nor wife seemed to care any longer when a fork was dropped, milk was spilled or the tablecloth was soiled.
- - Author Unknown
We've all heard it said that we should never judge another man until we have walked a mile in his shoes. Hopefully, the story of the Wooden Bowl has again reinforced the concept of giving consideration to other people's circumstances before we pass judgment on their activities.
Wouldn't it be best, when we become irritated with another person, to pause for a moment, give thought to his/her situation and then take action only after having done so. The world would become a much better place if we all made this a rule by which we live.
A frail old man went to live with his son, daughter-in-law and four-year old grandson. The old man's hands trembled, his eyesight was blurred and his step faltered. Even in this frail condition, he ate his meals with the family at the dinner table.
But the elderly grandfather's shaky hands and failing sight made eating difficult. Peas rolled off his spoon onto the floor. When he grasped the glass, milk spilled on the tablecloth.
The son and daughter-in-law became irritated with the mess. "We must do something about Grandfather," said the son. I've had enough of his spilled milk, noisy eating and food on the floor.So the husband and wife set a small table in the corner. There, Grandfather ate alone while the rest of the family enjoyed dinner. Since Grandfather had broken a dish or two, his food was served in a wooden bowl.
When the family glanced in Grandfather's direction, sometime he had a tear in his eye as he sat alone. Still, the only words the couple had for him were sharp admonitions when he dropped a fork or spilled food. The four-year-old watched it all in silence.
One evening before supper, the father noticed his son playing with wood scraps on the floor. He asked the child sweetly, "What are you making?" Just as sweetly, the boy responded, "Oh, I am making a little bowl so you and Mama can eat your food when I grow up." The four-year-old smiled and went back to work.
The words so struck the parents that they were speechless. Then tears started to stream down their cheeks. Though no word was spoken, both knew what they had to do.
That evening the husband took Grandfather's hand and gently led him back to the family table. For the remainder of his days the old man ate every meal with the family. And for some reason, neither husband nor wife seemed to care any longer when a fork was dropped, milk was spilled or the tablecloth was soiled.
- - Author Unknown
We've all heard it said that we should never judge another man until we have walked a mile in his shoes. Hopefully, the story of the Wooden Bowl has again reinforced the concept of giving consideration to other people's circumstances before we pass judgment on their activities.
Wouldn't it be best, when we become irritated with another person, to pause for a moment, give thought to his/her situation and then take action only after having done so. The world would become a much better place if we all made this a rule by which we live.
The Buying Process
Buyers are a huge part of our business model and we're finding that the average home buyer doesn't know the basic systems and processes for buying a home. I thought it would be helpful to list the HIGH LEVEL steps normally taken during the buying process:
1) The buyer holds an initial consultation with a Realtor.
2) Buyer meets with a lender for Loan Qualification. Buyer obtains a prequalification letter.
3) Buyer meets with his/her Realtor to shop for a home.
4) Buyer finds the "ideal home" and writes an offer.
5) The offer is presented and is negotiated.
6) An "escrow" is opened.
7) Buyer submits a loan application.
8) Buyer completes inspections and approves of disclosures.
9) The loan is underwritten and the home is appraised.
10) Contingencies are removed.
11) All title documents are searched and reviewed.
12) The loan is approved.
13) Buyer obtains homeowners insurance.
14) Documents are signed.
15) Down payment is submitted and the loan is funded.
16) Title transfers.
There are certainly additional, more granular steps when buying, but the above process will give you a high level idea for process and flow.
1) The buyer holds an initial consultation with a Realtor.
2) Buyer meets with a lender for Loan Qualification. Buyer obtains a prequalification letter.
3) Buyer meets with his/her Realtor to shop for a home.
4) Buyer finds the "ideal home" and writes an offer.
5) The offer is presented and is negotiated.
6) An "escrow" is opened.
7) Buyer submits a loan application.
8) Buyer completes inspections and approves of disclosures.
9) The loan is underwritten and the home is appraised.
10) Contingencies are removed.
11) All title documents are searched and reviewed.
12) The loan is approved.
13) Buyer obtains homeowners insurance.
14) Documents are signed.
15) Down payment is submitted and the loan is funded.
16) Title transfers.
There are certainly additional, more granular steps when buying, but the above process will give you a high level idea for process and flow.
BUYING A NEIGHBORHOOD/COMMUNITY
When searching for a new home, don't forget one of the most important considerations: location, location, and location.
Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.
Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!
Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.
Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!
Home Inspection Thoughts
When buying a new home, please don't just accept the seller's word that the residence is in good condition and that it is free of problems. It is very possible defects exist that are less than obvious to an untrained eye and of which the seller is unaware. It is in the buyer's best interest to, at the buyer's expense, hire a professional home inspector.
In most locations, the seller is required to provide for the buyer a Disclosure Form that details the property's features. This form also notifies the purchaser of any defects in the home of which the seller has knowledge. The buyer should take the time to read this completed disclosure form carefully. If there are flaws indicated that he/she finds unacceptable, the seller should be asked to correct the problems. If the seller refuses to fulfill the buyer's request, the buyer should be under no further obligation to complete the transaction.
To discover hidden or less obvious defects, a buyer can hire a professional home inspector to scrutinize the property. These professionals are trained to examine a house in detail and to find any problems that may affect a home's value. To find a quality home inspector, simply ask your Realtor for a list of recommendations.
As a value added benefit for listing and selling your home with The Davidson Team, you will receive a FREE home inspection as a part of our services. Additionally, we also provide tips on how to gain the most out of the inspections.
In most locations, the seller is required to provide for the buyer a Disclosure Form that details the property's features. This form also notifies the purchaser of any defects in the home of which the seller has knowledge. The buyer should take the time to read this completed disclosure form carefully. If there are flaws indicated that he/she finds unacceptable, the seller should be asked to correct the problems. If the seller refuses to fulfill the buyer's request, the buyer should be under no further obligation to complete the transaction.
To discover hidden or less obvious defects, a buyer can hire a professional home inspector to scrutinize the property. These professionals are trained to examine a house in detail and to find any problems that may affect a home's value. To find a quality home inspector, simply ask your Realtor for a list of recommendations.
As a value added benefit for listing and selling your home with The Davidson Team, you will receive a FREE home inspection as a part of our services. Additionally, we also provide tips on how to gain the most out of the inspections.
The Importance of the Internet When Selling A Home
There is a direct correlation between the number of "lookers" a For Sale home attracts and its final selling price. More potential buyers viewing a home result in a larger net proceeds check for the seller.
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!Find an agent who does these things and you are one step closer to maximizing your net profits!
Have an outstanding week!
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!Find an agent who does these things and you are one step closer to maximizing your net profits!
Have an outstanding week!
OVERBUILDING IN A NEIGHBORHOOD
The old adage, "The three most important things to consider when buying a home are location, location and location" will always hold true. The value of an individual piece of property or home is usually dictated by its location. However, the surrounding area and neighboring homes play a major role in determining the value of an individual property as well.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
Thursday, January 3, 2008
Tips for Getting Pre-approved for a Mortgage
In a competitive market, getting mortgage pre-approval is essential. It gives you a great bargaining tool when you're negotiating with sellers. Regardless of the market situation, pre-approval is also handy because it means that before you even start house-hunting, you've got a good idea of what you can afford.
Pre-approval versus Pre-qualification
Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.
Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.
Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.
Increase Your Chances of Pre-approval
Pay Your DebtsAny debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.
Don't Create New DebtYour pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.
PreparationWhen you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.
What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?
* Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
* If you can manage a larger down-payment, it may help your chances of getting pre-approved.
* Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.
Pre-approval versus Pre-qualification
Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.
Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.
Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.
Increase Your Chances of Pre-approval
Pay Your DebtsAny debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.
Don't Create New DebtYour pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.
PreparationWhen you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.
What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?
* Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
* If you can manage a larger down-payment, it may help your chances of getting pre-approved.
* Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.
GOOD TIME OR BAD TIME?
With all the "good news" and "bad news" that we see on in the media about today's economy, it is hard for the homeowner to decide if now is the time to buy and/or sell real estate. We are often asked, by homeowners who want to move up or move down to a different home, if now is the right time to sell and purchase.
The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.
When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.
Now is a great time to buy and sell real estate.
The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.
When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.
Now is a great time to buy and sell real estate.
Thought Provoking: 1/3/08
The great and glorious master-piece of man is how to live with a purpose. -Michel de Montaigne
Not long ago, a friend was in the final minutes of a flight into Chicago. Through the window, as the plane aligned with the runway, he saw thousands of commuters inching along, in bumper-to-bumper traffic. Each driver's goal was to just escape the city and return home from a hard day's work. No one, in that snarled mess of cars, could have been enjoying life at that moment in time.
It often amazes me the obstacles people are willing to overcome to accomplish a task. Why would anyone subject themselves to a lifestyle that requires so many hassles to get to and from work. The obvious answer is that they need their job to earn a living. I think the true motivation goes a lot deeper.
As a child, I used to spend hours watching ants working around an anthill. Each ant worked at its task with very definite purpose. If I put an obstacle into an ant's path, to disrupt its work, it would go into a complete frenzy until the obstacle had been removed. What is it about an ant that makes the completion of a task so important? What is it that drives nearly all living things to be task oriented? Why are most human activities, even our sports, based on the successful completion of a task? Could it be that life comes with an inborn need to have purpose, to have a reason to exist?
I believe the answer to this question is a definite "yes." The happiest people I know are the ones who have taken a task, worked hard to accomplish whatever it is the task required and then stood back to admire and appreciate the end result of their effort. There is a direct correlation between having purpose and being happy.
When we start our day tomorrow, what will our purpose be? Will we end the day having done nearly nothing and living with the resulting frenzy of negative emotions? Or, will we end the day feeling great because of all the things we've accomplished?
We are in control of our lives! We have the power to choose between being happy and just being. We can matter or just be matter. If we are uncomfortable with who we are, we have the power to change. By finding a purpose, finding a task and doing it well, we will experience happiness as we have never experienced it before. We are made to establish goals and to persist until they are reached. That is how we find out who we are. That is how we build a life.
We have a choice...we can't buy happiness but we do have the power to create it. If we find something we want to do and do it well, we will have improved self-esteem, self-acceptance, and happiness.
Not long ago, a friend was in the final minutes of a flight into Chicago. Through the window, as the plane aligned with the runway, he saw thousands of commuters inching along, in bumper-to-bumper traffic. Each driver's goal was to just escape the city and return home from a hard day's work. No one, in that snarled mess of cars, could have been enjoying life at that moment in time.
It often amazes me the obstacles people are willing to overcome to accomplish a task. Why would anyone subject themselves to a lifestyle that requires so many hassles to get to and from work. The obvious answer is that they need their job to earn a living. I think the true motivation goes a lot deeper.
As a child, I used to spend hours watching ants working around an anthill. Each ant worked at its task with very definite purpose. If I put an obstacle into an ant's path, to disrupt its work, it would go into a complete frenzy until the obstacle had been removed. What is it about an ant that makes the completion of a task so important? What is it that drives nearly all living things to be task oriented? Why are most human activities, even our sports, based on the successful completion of a task? Could it be that life comes with an inborn need to have purpose, to have a reason to exist?
I believe the answer to this question is a definite "yes." The happiest people I know are the ones who have taken a task, worked hard to accomplish whatever it is the task required and then stood back to admire and appreciate the end result of their effort. There is a direct correlation between having purpose and being happy.
When we start our day tomorrow, what will our purpose be? Will we end the day having done nearly nothing and living with the resulting frenzy of negative emotions? Or, will we end the day feeling great because of all the things we've accomplished?
We are in control of our lives! We have the power to choose between being happy and just being. We can matter or just be matter. If we are uncomfortable with who we are, we have the power to change. By finding a purpose, finding a task and doing it well, we will experience happiness as we have never experienced it before. We are made to establish goals and to persist until they are reached. That is how we find out who we are. That is how we build a life.
We have a choice...we can't buy happiness but we do have the power to create it. If we find something we want to do and do it well, we will have improved self-esteem, self-acceptance, and happiness.
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