RSS Blog FeedHomebuying Checklist
Mar. 18, 2010Here is a great checklist for homebuyers published by the Home Buying Institute.
www.homebuyinginstitute.com/checklist/
View more entries tagged with: Home, Buyer, House, Hunt, First, TimeKeep Track of the Houses You Look At
Feb. 19, 2009
While you are searching for a house, it is very important for you to remain detached. Look at the bones of the house, not the cosmetics. What is the condition of the plumbing system? Is the electrical service adequate for the house? Are there cracks in the foundation? Is there unrepaired termite damage? Is the basement wet or moldy?
Don’t worry about the things that are personal choices like that purple carpeting with the pink walls in the kitchen. Yep, ugly, but a coat of paint and new flooring are personal choices not structural.
Look at the floor plan of the house. Does it flow well? Does it make sense? Is there room for you to grow some if your family requires it? If the basement isn’t finished, can it be?
Develop a rating system of some kind to keep track of the items that will determine if the house is adequate for your needs.
A list will help you make quick notations as you walk through for work that you decide is required, and all of your notes will aid you in the negotiation process later on during the contract writing phase.
Develop your own method of deciding what flaws will be rated how.
0-5 ranking system. For instance, if the lot size is completely too small, it would be a 0, but if the lot is small and it does not matter or if it is a huge lot that’s everything you want, you may want to give it a 4 or 5.
You may decide that to paint a room is more labor intensive than you want, so rank it higher. You may also find a slight detail that to you is something that far outweighs any other property.
Don’t be afraid to give it a minus number if you find an aspect that is negative When you are done, just add up the numbers. The higher the score, the better the house will fit you and your needs.
If you keep going back to one or two houses, but find their numbers are lower, look at the scores of the individual items. Maybe that big negative could be fixed.
The most important thing is to be consistent no matter what method you are going to use.
Know the Genealogy of Your House
Feb. 15, 2009I recently hosted an open house in Alton, Illinois that was one of the most educational that I've ever done. The homeowner had photos and small cards with information placed all over the house for visitors to familiarize themselves with the history of the house.
The history not only included how and when updates were made, but also included framed photos in strategically placed areas of the original family that built the home in the early 1900's with historical information on the family.
The information answered many of the questions for my visitors who became intrigued at reading each and every card on display. I picked up two good leads when I was able to add information that I was familiar with for the area surrounding the house.
As a former history teacher and a genealogy buff, I was intrigued by all of the information the owners were able to supply, and as with all genealogy, I was able to associate the house with a time period in historical events of our city.
Just a thought!
View more entries tagged with: Alton, Il, History, James, Genealogy, Linda, Wheaton, House, Realestate, GodfreyIt's February and Time for Some Gardenting
Feb. 13, 2009What? Gardening in the winter? Yes! If you have fruit trees, now is the time to prune and fertilize here in the Riverbend. All those beautiful trees full of fruit will entice any homebuyer.
First, trim out all all those watersprouts. The older varieties of trees will need to have plent of air circulating through them. So trim off the branches that grow at odd angles near the center of the tree. Think of the tree as a vase that's open in the center. Some of the old time fruit growers would say you should be able to stand in the center of the tree and swing your hat around and not touch any branches.
Be sure to burn your trimmings. If you mulch these cuttings you could be spreading bug larvae and various diseases to other trees and plants.
Now you should seal the entire tree and all of the branches with a coating of dormant oil. This oil is a bio-degradable oil that smothers disease, spores, and some insect larvae on your tree. Please read the labels and apply at recommended rates.
After you've cleaned up all of your cuttings spread a good 10-10-10 or 12-12-12 fertilizer around the drip line of your tree. For those of you who aren't familiar with this term, the drip line is the area that rain will drip from your branches onto the ground below. Most of the feeder roots will be in this area and the fertilizer will go directly into the ground with the help of Mother Nature.
A good measure of how much fertilizer is a three pound coffee can full for each tree.
Now your done with your winter fruit tree gardening. Be sure to have your selling agent take prospective buyers on a tour of the fruit trees this summer. It's a sure sell!
And for you homebuyers, don't let care of fruit trees scare you from purchasing a house. With proper care your family will benefit for years from the fresh fruit on those trees.
View more entries tagged with: Homebuyer, Yard, Cleanup, Housesales, Lindawheaton, Godfrey, Illinois
Checklist for Loan Applications
Feb. 12, 2009When you go to see your lender, you will need to have the following information with you, for each person listed on the loan.
* Photo ID. A driver's license or photo identification
* Proof of Residence. For the last 5-7 years.
o Rates notice if you are a home owner
o Rent receipts or rental agreement if renting
o Home loan receipt
o Written statement of board amount if you are renting a room.
* Proof of Income.
o Your three most recent pay stubs
o Financial statements for past two years if self-employed
o Pension
Child Support
* Proof of Savings. You must provide proof of any funds you may have available to use as a payment toward the purchase price of the house.
o ALL bank, savings account, credit union statements
o Term deposit statements
o Retirement fund statements
401k statements
* All Major Assets
o Brokerage Accounts
o Stocks & Bonds not held at brokerage
o RV's
o Boats
* Copies of personal tax forms for the last 2-3 years.
* Proof of Current Liabilities. You will be asked to provide all of your outstanding debt for the past 2-4 months.
o credit card statements
o Personal loan statements with lenders names, addresses, and account numbers.
o Student loans, car loans
If you choose to make an appointment with a lender and fill out an application in the office, having all of your information together in a file folder or envelope will aid your lender in getting the total picture of your financial ability and history of credit satisfaction. If your lender finds problems, with the right information they may be able to straighten out any faulty credit information. So be truthful and always remember your lender is there to help you.
Once this process is completed, your lender will be able to provide your Agent with a Pre-Approval letter. When you find the house you want to purchase, this letter will be included in the packet sent to the seller with your offer. The letter shows that you are a qualified buyer and your offer is legitimate.
If you get your letter early in the house hunting process, be sure to keep your lender updated on any changes in your income or expenses. You want to keep your letter as current as possible so you do not have surprises when you find that perfect house.
If you have time to wait for the perfect house, remember to check monthly with your lender so that your letter is not expired when you go to make an offer.
View more entries tagged with: Homebuyer, Tips, House, Real, Estate, Linda, Wheaton, Godfrey, IllinoisAlways Sign a Buyer's Agreement
Feb. 12, 2009
Most homebuyers sign what is called a buyer’s agreement with a Broker/Agent sometime during their search for a new home. The buyer’s agreement creates an agency relationship with you and the real estate brokerage. It will also list the name of your designated agent at that brokerage, what their responsibilities and duties are to you as the buyer, and if the buyer or someone else is responsible for compensation to the broker/agent.
Non-Exclusive Buyer Representation—This agreement can be either with or without dual agency and specifies that you do not want to enter into an exclusive agency relationship, but that they have acted on your behalf on a specific property . This type of agreement allows the agent and agency to represent other buyers for the same property and does not guarantee a minimum compensation from the buyer. The safeguards for full
Non-Exclusive Buyer Representation Contract—This document states that you do not want an exclusive agency contract but will sign a non-exclusive agreement allowing you to enter into Non-Exclusive agreements with other agencies.
Exclusive Representation/Exclusive Right to Purchase Contract – This document states that you want to enter into an exclusive agency relationship with the broker and states your designated agents name and that you will not enter into any agency relationship with another real estate brokerage.
The form you sign is with the Brokerage and your agent will be the designated agent or the one you will be working with. You will then be asked if you consent to Dual Agency. As stated before, this allows one person to represent both you and the seller In some cases, if a second agent in the same office represents the seller it could also be considered dual agency.
The third type of relationship you may have with an agent is called Ministerial Acts. In this relationship you hire the agent to fill out your forms. They do not technically represent you but are simply doing the paperwork for you.
This relationship is called Agency and you should always ask for and sign the type of agreement you wish. Your copy is proof of your relationship with an agent. Single agency is the most desired because Your own agent who owes you a fiduciary responsibility represents you.
What is a Real Estate Agent
Feb. 12, 2009
Real Estate Agents and Brokers are licensed in the state(s) in which they are selling and listing homes. To obtain their license they are required to take classes, pass a test and pay an annual license fee to the state. They are also required to take continuing education classes to renew their license each two-year period that they have an active license.
To obtain a Real Estate Broker license more classes are required and a different exam is taken. Both the broker and the agent must take 12 hours of continuing education each two year licensing period. The broker license requires additional CE credit. If the broker is not the office broker, their title must include the word Associate.
Licenses are displayed on the office wall of the agency where the Agent/Broker works. In
Agents belong to a local board, a state board, and a national board and pay dues much like a labor union. In addition, most pay monthly fees to belong to Multiple Listing Service (MLS) To search for listed homes. They work as independent contractors for a Real Estate Brokerage The buyer’s agent represents YOU the buyer and they have a duty to provide you with all known information about the house you want to buy and to make sure you get the house you want for the best price they can negotiate with the listing agent. A seller’s agent represents the seller.
If an agent has listed a house and is selling you the house, they are then called a
and they must represent you and the seller equally. They MUST tell you that they are acting as a dual agent and they cannot tell you personal information about the seller and they cannot tell the seller personal information about you.
Since the agent is representing both sides of the sale, they cannot reveal information if it would affect your offer being lower than what you might pay for the house. In other words, if the agent knows the seller will take less than the list price it is privileged information. If you do not know the seller would take less, you might offer more that you would have to pay if you were working with just a buyer’s agent.
The best agent is one that understands or can readily learn what your housing needs are. That said; do not be afraid to ask them any question that you feel is important. Also, keep them updated on your changing thoughts about your needs. Following are some examples of questions, but don’t limit it to this list. Like everything in home buying it ‘s based on your needs or wants.
· How will you find houses for me to look at?
· Do you mind if I suggest houses and can you find information for me about them?
· Do you have references?
· How many houses will you be willing to show me? How many can we look at on one day?
· May I contact you and if so, how? When?
· Will you give me copies of documents for review before closing?
· Will I be given access to MLS information on listed houses?
· Can you set up a MLS listing cart for me?
Do not interview multiple agents from the same office. Once you choose an agent, stick with them. Remember, that almost all agents can provide you with all the listings in your area through the MLS. If you go to an open house or if you talk with another agent, always be honest and reveal that you are working with another agent and tell them who you are working with. DO NOT interview multiple agents in the same office.
Agents work under the concept of “Procuring Cause”. This means that the agent that initiates the sale of a house is entitled to the commission. If you have worked with one agent and switch to another and buy a house that the first agent has worked with you on, your current agent might not be paid the commission. Kind of confusing? Yep… just don’t switch agents. It could be that you end up paying a commission out of your pocket.
If you decide to go to Open Houses without your agent, tell the Showing Agent that you are working with another agent. Some agents prefer that you not go to open houses without them. Check with your agent to make sure they don’t mind you attending open houses without them. Carry some of your agent’s business cards and give one to the showing agent. The showing agent will typically call your agent to find out your thoughts on the house. Do not call a Listing Agent if you are working with a Buyers Agent. This goes back to dual agency and procuring cause.
Do not question the showing agent about the seller’s motives. That is your buyer agent’s job and they may be able to find out more information than you can or they may already know the answer.
View more entries tagged with: Agents, Brokers, Estate, Homes
The Great House Search
Feb. 12, 2009
Now is the time to figure out exactly what kind of house you are looking for. Is it a one story, two story? How many bathrooms do you want? Do you absolutely have to have an extra large kitchen? You have to let your agent know so that they can search the MLS to find all the listings that fit your needs and wants.
What services do you want your agent to provide? Do you want them to search for and suggest houses or do you want to find them and call the agent to set up showings. If you do not let your agent know what you expect from them they have no way of knowing. If you want to be driven to your showings, tell the agent. You can always meet at the office. If you prefer to drive yourself, you can meet at the first house.
Set realistic goals for finding and buying your new home. When do you want to be in a new home? How many houses do you want to look at each time? How many days a week would you like to go see houses? Which days?
Always give your agent feedback on the houses you looked at. Not only might you decide that you don’t need that extra 1000 square feet, but you may decide that you won’t mind buying 10 gallons of paint for a price difference of $10,000.00.
Feedback also provides sellers information to adjust the asking price if they continue to get negative comments from buyers and then hearing the buyers have bought a different house If you do not like a house, tell your agent and tell them why. This will help your agent find houses that more closely meet your needs and wants.
View more entries tagged with: Homebuying, Feedback, Real, Estate, Linda, Wheaton, Homes
Don't Let an Agent Buy Your Listing...In the Long Run You'll Lose
Jan. 20, 2009You've decided to sell your house and you are ready to sign with an agent. ... The market is very slow ... price values are down in most areas ... You start interviewing potential agents and decide to go with the agent that says they will list it at the highest price. Do you think this is a very good idea? Realtor's call this "buying a listing". The strategy is that once you've signed on the dotted line you will eventually sell, but at a much lower price than you listed. The agent may even tell you the higher price will give you some room to reduce the price.
Well… I guess that sounds good, but here's what can happen:
1. Buyer's who set a top search price (that happens to be the amount your house will eventually sell at) will never look at your house because the price is too high.
2. Your house will help a buyer choose a different house that is priced the same but offers much more value for the dollar.
3. After you've reduced your house substantially, buyers in your price range believe there must have been something terribly wrong and you've had to reduce to adjust the problem.
4. You end up selling below the first offers you received when you first put your house on the market.
So don't let an agent buy your listing. Make sure the professional you are working with has used good comparisons in setting the value of your house. And listen to them when they tell you what your house should sell for in this new market.
View more entries tagged with: Seller, House, Real, Estate, Linda, Wheaton, PricingTime to Spring Back and what that means to home owners.
Oct. 15, 2008Time to spring back, but it is also time to get out the Boy Scout cookbook and make candy corn balls. I guess we can't hand them out to trick or treaters that we don't know, but we can surely eat them. One of my oldest memories is hearing kids yell up and down the street in the cool weather and scarey costumes to be sure to go to the Bucher house they had popcorn balls. What a thrill that was, not only were we known for our treat during this haunted night, but we too got to partake of our offering after all treaters were finished for the night.
What a night it was, living in a more rural area, we walked for several miles each way with our pillowcases and would come home with them filled half way up. 7 children in my family meant quite a bit of candy and oranges. Oranges were always a treat. My grandfather owned an orchard so we would always receive a bushel or two of different apples, so the apple treats weren't as happily accepted, but they didn't last eaither.
So many sights, sounds and smells could only bring excitement and anticipation to a small child and we wandered from door to door surely scaring our neighbors who would have absolutely no idea who those 7 little blonde haired children could belong to.... even though their own kids would laugh and giggle and call us by name. The parents always acted surprised or scared. We were alot of hobos, not having purchased uniforms. But we made do... we were proud of our ability to make something. anything into scarey.
Our shoes would stay fairly dry on the damp leaf covered pavment, and many times we shivered in the light drizzle, but I don't think we really could even fell it.
We have to all try to remember that freedom, the comradery, and the fun of Halloween nights with leaves flying on the just cooled wind at dusk. One of the wonderful moments in our chldhood.
Now I decorate my house with cob webs and strobe lights, maybe throw up a hanted house in the garage, and dress with green skin and a mole on my nose. I have a life size plastic skeleton I like to tie to the lite in the foyer with it's boney hand tied to the door... When the door opens, the small candy bar is pushed out the door to a waiting devil, who slowly takes the candy and thanks me. They may mind the plastic spider I tape to the door bell button, but somehow it gets rung.
So Many memories in my community.... I hope you have yours too... and are able to smile as you remember them
View more entries tagged with: Trick, Treat, Autumn, Leaves, Community, Memories