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November 2008
• November 21, 2008 - Make it Sell
Selling your home during a recession-like climate certainly brings extra challenges. One of the best ways you can raise to the occasion is to make your home a marketplace standout. In a competitive real estate marketplace first impressions are paramount. When potential buyers turn the corner, you want them to feel a strong, emotional connection. You want them to think, "I want to live here!" not, "What else is for sale in the neighborhood."
Here are five things you can do to make your home shine:
* Debris Buster: A home overgrown with trees, bushes, and yard knick-knacks is not appealing. Instead adopt a less is more approach. You want an exterior that is neat and tidy. Edge all walkways and beds. Trim landscaping and remove unruly growth. A fresh application of mulch or rocks helps too.
* Walk the Walk: Carefully inspect your walkway and driveway. Are there things you can do to improve them? Powerwashing paths and sealing driveways can make a big difference. If either are in very bad shape, price out a professional repair.
* White Glove Test: Give your home�s exterior a thorough cleaning. This may include powerwashing siding and painting your shutter and doors.
* Let the Light Shine: Be sure to clean windows and storm doors
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• November 19, 2008 - Hello Inspector
There are many variables at play during a real estate purchase; so when you have the chance to control one of those factors, it can be very appealing. That may be one of the reasons most buyers choose to "lock in" their mortgage rate.
Now the question becomes, "How do I find a qualified inspector?" Referrals are probably the best bet. Ask your real estate professional, friends and family who they recommend. But no matter who you choose, you need to ask a few key questions.
1. Are they a licensed home inspector? Most states require inspectors to hold a professional license. Ask to see the license or that a copy is faxed to you.
2. What are your qualifications? Find out if they take continuing education courses, how long they have been in the business and how many inspections they have completed. You may also ask for a list of references.
3. Are they a member of a professional association? There are national and many state associations for home inspectors. Ask to see their membership ID.
4. Are they insured? Inspectors or their employers should carry Errors & Omissions (E&O) insurance as protection in case something is missed or overlooked.
5. What process do they follow for the inspection? Here you want to find out if you will be able to attend the inspection. (Note: this is a great time for you to learn about the property first hand.) Also inquire about the cost and when the final inspection report will be ready. |
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• November 17, 2008 - All Locked Up
There are many variables at play during a real estate purchase; so when you have the chance to control one of those factors, it can be very appealing. That may be one of the reasons most buyers choose to "lock in" their mortgage rate.
As part of your home search process, you likely examined your own finances and then researched the different loan products available. Your preparation probably included analyzing varying rates and terms and talking with mortgage brokers, lenders and your real estate professional. After all that leg work you have finally identified a mortgage provider and a product that meets your needs. The next big question is when to lock in or secure that interest rate.
By locking your rate you are guaranteed that if the percentages rise by the time of your closing, you will pay the lower rate. The idea is to lock your rate while the numbers are falling, gaining the protection before they begin to rise.
It is important to note that there may be a cost for this security, as well as associated risk. For instance, locking your rate 30 days in advance may cost you one half of a point. A point is one percent of the mortgage loan amount. So that means on a $500,000 loan locking in 30 days before would cost $2,500. This fee is paid at your closing. In addition, if you lock in your rate and the rate drops below the locked-in rate, you may be stuck with a higher rate. The value of securing a low interest rate, however, even if it’s not the lowest interest rate, gives buyers peace of mind. |
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• November 10, 2008 - Legal Eagle
Buying a home is a highly emotional purchase. People usually choose one home over others because they feel a strong connection to the property. But a home purchase is also a serious legal undertaking with real deadlines, criteria and procedures. That is why many buyers retain the service of a real estate attorney.
When you are buying a home your lawyer should do the following:
• Consult with you and review the purchase contract. In some states, once the contract is signed by both parties, it is a binding legal document. In other states, such as New Jersey, a grace period called attorney review lets the buyer's lawyer review the document for three days and then accept or reject the agreement. It is always a good idea to include a contingency in your offer that says you would like an attorney to review the contract. The contingency should allow you to walk away from the deal if your attorney advises against the purchase.
• Conduct a title search. A real estate attorney should oversee a title search for the property in question. You must be sure there are no liens, easements or other claims on the property. An attorney may also arrange for title insurance. This is protection most lenders require. Title insurance protects the buyer and / or the mortgage company should a defect in the title be discovered.
• Oversee your closing. A real estate attorney should ensure that all filings, documents and payments are in order for your closing. In addition to preparing this paperwork, your attorney should offer explanations for all the required documents and signatures.
The breadth of work performed by a real estate attorney varies from purchase to purchase. It's a good idea to discuss the scope of work you want performed up front. This will help you gauge how you will owe in attorney fees, which are payable at the closing. |
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• November 9, 2008 - Certain Expectations
Selling a home puts you in a unique position. You are parting with what is likely your greatest asset. Some people are sad to sell, while others are ready to move on. No matter what your circumstances, your buyer will have certain expectations of you.
First, you are expected to be courteous and professional. If you can put some emotional distance between yourself and the property it is helpful. For instance, if you are selling the family home it is likely to be an emotional transaction. However, your buyer probably does not want to walk down memory lane each time you meet.
Next, you are expected to have an understanding of the current real estate marketplace. You need to know what a reasonable asking price is and have realistic expectations for the terms and conditions of the sale. Expecting to sell for twice what you paid is not helpful if the marketplace does not support that type of transaction. Your real estate professional will be instrumental in helping you gauge the temperature of the market.
When possible, buyers will expect you to be fair and flexible. You should certainly feel empowered to stand up for your best interests, but if you can accommodate certain requests, it can make for a smoother transaction.
Buyers expect you to be honest and up front about the condition of your property. A home inspection and seller disclosure documents help ensure that potential defects are identified, but a buyer also expects that you will not purposefully hide areas of concern.
Finally, buyers expect you to leave the home in a respectable condition. Moving day is certainly a hectic one, but it is no reason to leave behind unwanted items for the buyer to deal with. You are expected to leave the home broom swept and cleared of all items except those identified in the contract as transferring with the property. |
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Paul & Randy are the Homes2Know Team & this is our Blog. Our Blog is designed to be a resource for buyers, sellers, homeowners, and those relocating to the Phoenix area.
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