Buyers March 20, 2019

Five Key Areas to Pay Attention to When Buying a Home

Looking for a new home is exciting and overwhelming. There are so many things and details to pay attention to. Focus on these five most important areas: electrical, foundation, plumbing, the attic, and landscaping. According to Don Walker, inspector and owner of Ace Home Inspections, these are the five areas in homes that he frequently reports problems with.

  • Electrical

    Most people assume that if they buy a newer house, they won’t have electrical problems anytime soon. “I inspected a brand new house — four years old but the electrical was all done incorrectly,” says Walker. Through a complete home inspection, potential problems are detected early on.

  • Foundation

    Walker said he inspected a four-year-old home that was already showing signs of major damage that is expected to cost you a lot of money in repairs. “It was a model home. What [the homeowners] did was plant trees for shade to make it look really nice, but they planted the wrong trees and they’re going to crack the foundation and it’s going to cut the property value down by $50,000,” says Walker.

    Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. “As you walk through the house, 21 feet in and 30 feet deep, there’s just too much root invasion and it’s going to ruin their tile,” explains Walker.

    He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, “which means the foundation is moving.”

    But not all cracks is an indication of a foundation problem. Walker said, “Most people don’t understand that there are natural cracks in a house. That’s why when we do an inspection report we have to look at it and say ‘Okay, this is a typical crack and this one is an untypical crack.”

  • Plumbing

    According to Walker, is another area that poses a big concern yet often goes undetected. “Mold forms underneath sinks when people have a leak and they fix the pipe but they don’t take care of the mold,” says Walker. He said caulking the sink can help prevent mold. “That’s my number one thing I always find — bad sinks.”

    He says, “When you look at the sink, look behind it and most of the time you will discover a little crack. What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it’s in a perfect position to create mold.” When it’s dark and damp, it becomes a perfect breeding ground for molds.

  • Attic

    Walker says, “You can tell everything about the house by the attic.” When you fix other parts of the house, you can already mask the problem. Take for example a wall damaged by leaks. You can have it fixed and repaint it to make it look new. But Walker says the attic is sort of the eyes to the soul of the home. “In the attic you can tell where all the damage has been.”

    “If you’re in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced,” says Walker. He adds, “You can tell if the roof is good because you can look right at the wood.”

  • Landscaping

    “There should not be moisture or plants next to your house,” says Walker. He says there should be a 12 inch barrier between the landscape and the house. If not, the foundation might crack. If the landscape is too close to the home, when the plants are watered, the foundation and soil expand. And when the they’re not, the foundation dries up and shrinks which causes it to crack.

    Acquiring the money to pay for a house is not the only preparation you need to buy a house. Learn what you can about the house and how to take care of them. It will save you a alot of money in the near  future.

Buyers March 20, 2019

Five Keys to Successful Negotiation

Your success in the realty market lies in how well you negotiate. But negotiation is a complicated matter. All the parties involved want things to go their way. Given these conditions, how can you make things work for your favor? How does one become a succesful negotiator?

Based on experience, these five aspects determine a successful negotiation:

  • What the market says

    Study the market. There will be times when it’s more favorable for buyers and there will be other times when it will lean towards sellers. The key is to strike when the time is favorable for your side. For example, as a buyer you are in a position to offer the seller a quick deal and you know that the seller is in a hurry to sell the property. Take it as an opportunity to make things work in your favor.

  • Determine who has leverage

    If word has gotten out that the seller has gone bankrupt, you are in a position to make reasonable demands. On the other hand, if you know that the house is a hot item, expect many competition. Therefore, you are in no position to dictate the terms or ask for “extras”. The owner has the liberty to choose the buyer they want; usually to the highest bidder with the best terms.

  • What are the details?

    What are the other costs (or savings) involved? Most people think that the price of the house is all there is to it. But in fact, there are other things to consider. For instance, Both house A and house B cost $275,000. However, house A is an older house that needs costly repairs. Plus the seller of house A agreed to pay  a portion of the closing costs. On the other hand, house B also costs the same. But cost of  necessary repairs will not be covered by the seller.

    Think about all the costs and savings involved and determine where you can get better value for your money.

  • Financing

    All transactions involve money. Money affects negotiations in so many ways.

    Is the buyer pre-qualified or pre-approved by a lender? Finding your ideal house does not guarantee that financing will also be available. Your loan application can be denied because of several reasons; among them: appraisal problems, title issues, survey findings.

    One of the advantages of being pre-approved is that buyers already know how much they could afford. Sellers like buyers who are pre-qualified. They pose less risk to the seller. They won’t have to worry about waiting for the buyer to find a loan to seal the deal. Being pre-qualified means that you have the financial capacity to pay for the loan.

    Lower interest rates mean a broad market – a lot of potential buyers.

    Nowadays, downpayments are made easier. Now you can find loans with as low as 5% downpayment or even less. 100 percent financing or no downpayment plans is even an available option. 

  • Broker expertise

    Brokers are now representing not only sellers but buyers as well. If you have competition, being represented by a reputable broker gives you an edge.

Buyers March 20, 2019

New House or an Old One?

When you think about buying a home, one of the first questions that come to mind is whether you buy an old house or a new one. A new house may be attractive because everything is new. Nothing has been used yet. The walls are clean, the closets have never been used before, they come with energy-efficient appliances and you won’t have to spend on repairs because of wear and tear. On the other hand, you may fall in love with traditional look and feel of an old house.

When you’re at a crossroad, these points can help you decide:

Old homes

  • Neighborhood.
    Some people prefer a home in an established neighborhood. Another plus factor are the full-grown trees and mature landscaping you can’t get from brand new houses.
  • Maintenance and repair.
    Existing homes need to be inspected by a proffesional home inspector. There might be existing damage or potential problems that will costly to repair or maintain. Old appliances may need to be replaced. All this needs to be considered in the purchase price.
  • Home improvement.
    If you’re into home improvement projects, an older house present opportunities to put your DIY (do-ityourself) skills to action.
  • Freebies.
    Existing houses come with features, furnitures and appliances that are already there. You can consider them freebies.
  • Land.
  • Location.
    Older homes are situated in or near business centers. But newer houses are usually in far suburbs.
  • Opportunity to remodel.
    There are some homebuyers who are excited at the opportunity to customize an old home according to their liking.
  • Price.
    In general, existing homes cost less than brand new ones.  Buyers can even get more for their money because of existing features that count as freebies – drapes, carpet, landscape.
  • Track record.
    With an existing home, you’ll already have an idea of the property’s value based on how much it has appreciated or depreciated over the years.
  • Tax savings.
    Existing houses have lower property tax rates (depending on your state). Plus you could save on local bonds associated with new development, such as schools, parks, or road or transportation improvements.
  • Traditional layout.
    People who love classic, formal dining and living areas will love older homes.
Buyers March 20, 2019

Should I buy a Condo or a House?

Buying a home is a big move. It leads to a series of things to think about. 

One of them is whether you want to live in a condo or a single unit family house? Each choice comes with their own set of advantages and disadvantages. Only you can determine what’s best for you.

Michelle and Kevin Millsom, 31 and 36, is a newlywed couple living in Boston. Choosing to live in a penthouse apartment was the best thing for them. They don’t have any children, both have high-powered financial careers, and they love the excitement that the city had to offer.

“We enjoy everything the city has to offer—the restaurants, theatre, outdoor concerts. We walk everywhere and find the easy access to the airport to be a plus since we travel frequently for work,” said Kevin. “When we have children, we may think about a house in the suburbs, but for now this is where we want to be.”

They wanted to be at the heart of the city. So they bought a penthouse apartment overlooking Boston’s famous esplanade and Charles River.

Sounds to good to be true? As with all things, it also comes with its own share of disadvantages. They live in a two-bedroom/two-bath condo that costs way more than a home three times the size of their condo. And it’s just 20 minutes away. They share the building with fourteen other tenants which means that decision-making  with regards to the building need to be consulted with them. They also need to pay $300 per month for a parking spot for a car which they seldom use because of the convenience of their location. To most people the cost may sound unreasonable. But to Kevin and Michelle, who appreciate the convenience and the good location, the cost is all worth it.

Condo living is not for everyone. Adriana Forte, 62, chose to live in a “condex,” (a two-family home with a shared wall) in the Boston suburb of Arlington. After her divorce she chose to live in a condex thinking that taking care of a home will be too much to handle. However it turned out to be a wrong decision. “It’s difficult to live with neighbors so close,” Forte said. “First there was the noise. My neighbors are night people, and every night they are just getting geared up when I’m trying to sleep. Then I found myself handling 100 percent of the finances and maintenance of the duplex—without compensation. I may as well be living in my own house!”

She missed out on a lot of things that a single-family house can offer – fresh air and private outdoor space. Forte loves maintaining a home and a garden.

Consider these things to help you decide what is most important to you.

  • Location – Where do you want to live? Are both the condo and house in the same area?
  • Privacy – Are you comfortable about living closely with neighbors? How much do you value your privacy?
  • Responsibility – Do you want to have full control over decision-makings for your home? Or do you want to share that responsibility with other neighbors?
  • Maintenance – Do you enjoy taking of your home and garden? Or are you the type who is just not into plants?
  • Budget – How much can you afford? A condo might be more reachable right now.

Life is dynamic. People change and situations change. Whatever you decide now, can still be changed to suit your current lifestyle and preferences.  

Sellers March 20, 2019

Smart Questions to Ask Your Realtor

  • Do you work full time as a real estate agent? How long have you been working full time in this field? What professional associations do you have? By asking if they’re working full time allows you to determine how commited you can expect them to be in your transactions. The length of time they’ve spent on this field can give you confidence knowing that they know what they’re doing, but it is not guaranteed. And tenure does not guarantee a good service.
  • Do you have an a staff or assistant? Or a team that can take care of the various parts of the process? What are their roles in the transaction? What are their names and contact information? Brokers usually work with other people to carry out all the necessary work and achieve a succesful transaction. The more clients they have, the more staff they’ll need to have. It’s okay to ask if you want to find out who are the people wotking with them and what their roles are. You could also ask questions like: To whom will I give the payment? Who will be there in closing?
  • Do you have a website where properties for sale are listed? Can i have the web address? Does it have a hotline or customer service email? Who responds to them and how quickly are they handled? Being online does a lot to marketing. Most people turn to their internet when they look for something. It can give them a lot of information in their convenience. Try searching for your agent’s website and see how visible they are online.
  • How often will you contact me? How will you contact me? Establish a communication system with your agent so you will have an idea on how often to expect to hear from them. And ask how they will contact you – by your home phone? mobile? email? So you can be ready for them.
  • What sets you apart from other realtors? Is there something you do that other agents don’t that can give me the best deal for my home? Sometimes the key to selling a home in a short time is dependent on your agent’s research, marketing skills and delivery.
  • Can you give me names of past clients? Selecting an agent is like hiring an employee. Asking about them from references can give you an idea of how they are in their profession.
  • Do you have a performance guarantee? Can I terminate our listing agreement if I am not satisfied with your service? It can be difficult for an agent to offer a performance guarantee. But this does not mean they are not capable of providing a high quality service. The agent should however be able to tell you what you could expect from them.
  • How will you get paid? How are your fees calculated? Can I have this in writing? In most cases, the seller has the responsibility of paying agent commissions. There may be other small fees, such as administrative or special service fees, that are charged to clients, regardless if they are the buyer or seller. Before you hire an agent, ask for an estimate of costs.
  • How will you develop pricing strategies for our home? The price of a house is one of the major factors in selling it quickly. Current property information is important. Ask your realtor how they made the market analysis, and if they included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.
  • In terms of advetising and marketing, what do you plan to do to sell my home? Who determines where and when my home is marketed? Who will pay for advertising? Ask your agent for a clear plan on how money for marketing and advertising will be spent. Ask for samples or case studies of the types of marketing strategies that your agent has in mind (such as Internet Websites, print magazines, open houses, and local publications).
Sellers March 20, 2019

8 Steps Involved in Selling Your Home

  • Take time to think about why you want to sell your home. It can be from a need to move to another place or you need to find a bigger home for your growing family. Ask yourself what you want to accomplish from this sale. As you think about this, you need to also define the time frame and profit margin that you have in mind. Discuss these goals with your real estate agent.
  • Set your price. In setting the selling price, you need to be fair. You need to research the selling price of comparable homes in your area as well as the real estate climate in your area. Most homeowners set a price based on the personal value of their home. Don’t make this same mistake. Take into consideration the condition of your house – the age, wear and tear, and damage. It’s usually hard for sellers to set a realistic, unbiased price so you’ll need to consult your real estate agent. This is why you must find an agent you can trust. Your agent should be able to provide you with information about the selling price of comparable houses in your neighborhood and the average time they waited to be sold. You could also ask someone to do an appraisal on your house so you could have a second opinion and a more objective one. Setting a fair market value price on your house is important. Studies show that houses priced higher than 3 percent of their market value, took a longer time to sell. When a property takes a long time to sell, buyers start to think there’s something wrong with it. This leads sellers to become desperate and sell the property for far less than its actual market value.
  • All sellers want to sell their homes quickly. But only some are willing to make their houses look salable. Take away eyesores to make your house attractive to buyers. Check every area of the house, especially the garage, and make sure to remove clutter or stored boxes. Fix what needs to be fixed – broken light, hard-to-open windows and doors. The appearance and condition of your house will influence its price and salability. Cleaning up doesn’t only mean wiping away the dust or scrubbing the floors. It also means putting away most of your personal stuff. It will be hard to sell a house that has so many family photos and mementos. When there’s too much of the seller’s stuff, the buyers will have a hard time thinking about making it theirs. Ask your real estate agent for some suggestions on how you could make your home attractive to buyers.
  • Market your home. Get as many people to know that you have a house for sale. The internet is the best way to do this. It allows you to reach potential buyers from anywhere in the world who are probably planning to move to your city. But yard signs and local paper advertisements are still effective ways of reaching buyers. Your agent will know how to bring in qualified buyers. The first three to six weeks are the busiest.
  • Receive offers. When you receive an offer, your real estate agent will first check if the potential buyer is prequalified or preapproved. The next step would be to review the contract. The contract should include the following: Legal description of the property, Offer price, Down payment, Financing arrangements,  List of fees and who will pay them, Deposit amount, Inspection rights and possible repair allowances, Method of conveying the title and who will handle the closing, Appliances and furnishings that will stay with the home, Settlement date and Contingencies. As the seller you have three options: to accept the contract as it is; accept it with revisions; or reject it. You need to be careful in dealing with contracts. It is legally binding. If there is anything at all that is unclear, ask your agent or lawyer before signing it.
  • Negotiate. Most offers have to undergo negotiating so both parties can get what they want. Real estate agents are experienced when it comes to this and they should be able to look after your interest and lead you throughout the bargaining process. These are the negotiable items: Price, Financing, Closing costs, Repairs, Appliances and fixtures, Landscaping, Painting, and Move-in date. As soon as both parties have agreed to the terms of the sale, your agent will prepare the contract.
  • Preparing to close. When you accept an offer, the next thing to do is to think about all the things that you and your buyer need to do before you can close the sale. The house may need repairs, or the property needs to be surveyed and appraised. Your agent can act as your spokesperson and deal with the buyer’s agent and service providers. It depends on your negotiation if you as seller need to pay for the cost of the services or a portion of it or even none of it. If the terms of the contract are fulfilled, then you can proceed with the sale. If however, there are problems in fulfilling the terms, you or the buyer can opt to revise or walk out. If you both decide to push through with the sale, make sure to prepare the papers. A few days before the signing, check to be sure that the necessary documents are there.
  • Closing the deal. This is when the whole process of selling your house will end. After the signing of contracts, you are no longer the owner of the property. Your agent should be there to guide you through the process. You may also invite a lawyer to be present. Some states require this. After the closing, there are still a few things you will need to take care of. You will need to cancel services like electricity, gas, lawn care, cable, and other routine services. If the new owner decides to keep the services, change the name on the account.
Sellers March 20, 2019

How to Price Right

The price you set for your home is very important. It will determine how long it will stay in the market and how much profit you will get. The knowledge of your real estate agent with regards to this matter is crucial. He or she should be able to inform you in terms of the current market condition, what sells and what doesn’t. Your goal is to price your house that fits its arket value but not too much.

Time. In real estate selling, time is against you. There are several factors involved that can determine the outcome. But time can be a good barometer to gauge your profit. Studies have shown that the longer a house stays in the market, it’s price decreases. So if you want to sell your house for as high as your asking price, do what needs to be done to sell the house quickly.

You need to be objective when you come up with an asking price. How much you value your home may not translate to how much it’s really worth. Don’t spend so much on home improvements and raise the price because of these renovations. Potential buyers might not like the improvements and find your house overpriced.

Because you are running against time. Try to keep things as simple as possible. Keep an open mind and be flexible to your buyers’ requests. As mush as possible do not include contingencies on the sale. This might drive buyers away. 

Sellers March 20, 2019

Dressing Up Your Home

Sixty seconds is all you have to create a good first impression. Here are detailed ways on how you can make your home attractive to potential buyers.

Outside the house:

  • Cut the grass and make sure it stays that way. Make the yard look neat by taking away clutter.
  • Pull out the weeds and put fresh mulch to flower beds.
  • Wooden fences must be painted new.
  • Make sure door handles are tight and clean.
  • Windows should be cleaned inside and out.
  • Powerwash the home’s exterior
  • Gutters and downspouts should be firmly attached and functioning.
  • Paint the front door.
  • Put a new welcome mat.
  • Place potted flowers near the front door.

Inside the house:

  • Look at the furnitures in each room. Remove anything that looks “off” or anything that disrupts the design/theme. Take out any furniture that makes the room look smaller. Rent a storage unit if you have to.
  • Clean and organize cabinets, closets and bookshelves.
  • Inspect light fixtures and ceiling fans. Make sure they’re clean and functional.
  • Wash the carpets.
  • Take away too many “personal stuff”; including wall hangings and knick-knacks.
  • Inspect plumbing system to make sure they’re not leaking; and if so, have them fixed.
  • Repair torn screens, sticking doors, cracked caulking.
  • Clean and repaint if necessary walls and ceilings.
  • Replace worn cabinet and door knobs.
  • Replace discolored grout.
  • Replace broken tiles and worn countertops.

Additional details for showings:

  • Turn on all the lights.
  • Open drapes and shutters during the day.
  • If you have pets, secure them outside.
  • Use new towels for bathrooms.
  • Use new beddings for bedrooms.
  • Replace old lamps or lampshades.
  • Play soft background music.
  • Light the fireplace.
  • Use a comforting scent, such as apple spice or vanilla.
  • Set the dining room table for a fancy dinner.
  • Do not stay in the house while it is being shown.
Sellers March 20, 2019

How to Keep Good Seller Etiquette

When you put up your house for sale, you will come across different people – both pleasing and difficult to deal with. You will be meeting potential buyers, unqualified buyers, agents and unknown vendors. There is an unwritten protocol to how sellers, buyers and their respective agents interact. If you are having a hard time dealing with people, let your agent know so they could help you solve the problem.

  • The aggressive agentWhen you hire an agent, they become the primary contact person with regards to the sale of the house. But there are some cases when the buyer’s agent tries to contact you directly. Do not negotiate with them directly especially if you do not have much knowledge in terms of real estate. They might take advantage of this or they probably do not want your agent to be part of the deal. This is not the right way to do business. Inform your agent if this happens.
  • The unscrupulous vendorWhen you put your house on the market, there is chance you’ll get tons of junk mail.  Some companies find ways to use information on MLS and bombard you with junk mail. If this happens to you, let your agent know so he or she can get in touch with appropriate organizations.
  • The naïve buyerWhen you start to market your home, expect some buyers to simply drop by without an appointment. You might be tempted to show them around but even if they are nice and easy to talk to, you might not be able to handle the situation well. you might get carried away with the easy conversation and discolse information that might compromise your house. If this happens, talk to them politely and refer them to your agent. Give them your agent’s number and tell them that your agent will gladly arrange a tour for them.
Sellers March 20, 2019

Tips for Self Moving

Self-move means that you take care of packing and coordinating with people who can help you move your things to your new place. Since you have to take care of all these on your own, it can be overwhelming. Below is a list of things you’ll need to think about when you’re considering self-moving along with tips you might find very helpful.

  • Moving truck – find one that’s as big as your need.Be prepared to drive the truck that you rent. Study the truck and its controls. Just because you can drive a car doesn’t mean you can drive a truck just as easy. They are bigger and heavier so they should be driven slowly and carefully. Braking distances are longer and they have large blind spots. Some trucks do not have power steering and power brakes and automatic transmission may not be available.
  • Towing a vehicle – When you rent a truck, let the company know that you will tow a vehicle. Give them details like the make and model of the vehicle so the comoany can provide you with a truck that’s most appropriate for it.
  • Dollies and Pads – they can protect your appliances and furnitures from friction and bumps. Straps are also necessary to keep your load in place. Refrain from using bungee cables. You might need to use hand trucks to move big and heavy things.
  • Fuel – It’s a wise idea to refuel the truck before bringing it back. If you don’t, the rental company will charge you for the gas you used and usually it is more costly.
  • Packing supplies – boxes, tape, bags. These things add up and will cost much when you buy everything at once. You might find it easier to gradually accumulate them. Rental facilities and package stores have them available.
  • Reservations and Deposits – When you have finalized the date of your move, reserve the rental truck so you can be sure it’s available when you need it. Usually rental companies require a deposit.
  • Rental Insurance Protection – Most insurance companies do not cover your things while you’re moving. Verify this information with your current insurance agent. Ask the self-move dealer or the rental company what protection they could offer you. When you pick up the paperwork for the truck, review to see if the rental protection is included there.

When you pick up the truck, the dealer should be able to show you everything you need to know about it. Ask questions if anything is unclear. Keep all the receipts and paperwork relating to your move like rental, gas, food and lodging expense. You might need them, especially if your move is required by your employer.