Most consumers are excited after buying a home and eager to begin personalizing their new property to their tastes. But owning a home is a large responsibility, and some individuals become nervous after the sale is completed and begin to have doubts about their new investment. Buyer’s remorse is a common occurrence after making such a large transaction, but just because individuals may have some reservations does not mean they made the wrong choice.
There are several benefits to owning a home and consumers who are regretting their purchase can overcome these feelings by adopting a new mindset about their new house.
Address the source of the problem
One of the first steps new owners should take when they’re feeling remorseful about their decision is to address why they feel the way they do, according to AOL Real Estate. Buyer’s remorse can occur for several reasons, ranging from dissatisfaction with the layout or features of the home to stress over mortgage obligations. By knowing which aspect of the purchase is making them nervous, new homeowners can find solutions to their fears.
Take action
There are several ways to overcome buyer’s remorse, and many of them just require a change in a homeowner’s mindset. For example, individuals who are flustered by the financial obligations associated with owning a home may be looking at the costs as a burden. However, taking time to think about the positive financial aspects of homeownership, such as building equity, strengthening their credit and bolstering their retirement, can demonstrate to homeowners that their purchase will work to their advantage in their futures.
In cases where homeowners are dissatisfied with the tangible features of their home, it’s important to design the house to their tastes to make it feel more personal. For example, some consumers may think rooms are too small and fixtures are too old. But knowing how to decorate and paint to maximize space, and replacing fixtures and appliances to give them a fresher feel can make new buyers feel at home. In addition, homeowners should remember that there is nothing about their home that must stay the same. Individuals may want to spruce up the house by upgrading the floors in their living room or counters in their kitchen. Even the most modest improvements can give a room a new look.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Friday, March 29, 2013
Identify your wish list vs. your must have list
When dreaming of a first home the options are endless. From a backyard oasis with a patio and swimming pool, to a gourmet kitchen with the most up-to-date appliances, plenty of space to entertain friends or a gorgeous master bedroom suite, no first time home buyers wish list is the same. However, in reality, it is not always possible to find a first home with everything, so buyers must decide in advance what items are “must-haves” and “nice-to-haves” on a first home wish list.
To help first-time home buyers, the professionals at Coldwell Banker Real Estate have provided the following five tips to help determine what they will need vs. what is nice to have in a first home.
Know your budget: The first step to creating a list of “must-haves” is to be realistic about what is affordable and determine a budget. Buyers should enlist a local real estate agent to help with the home search. An agent with years of expertise understands the local market and can help buyers find comparable home prices and determine what is affordable in their budget.
Find that perfect “location, location, location”: Everyone has heard this phrase before when it comes to real estate, and while the surrounding neighborhood and home itself may improve over time, the physical location will remain the same. Buyers should determine in advance how close they would like to live to their work, schools or extended family. A short commute to work, proximity to family or having easy access to highways and mass transit are often “must-haves.” The location will also determine some home amenities that are possible or difficult to have within the buyer’s budget. For example, if a buyer has to live close to work in a big city, they may have to cross a garage or outdoor space from their wish list.
Determine non-negotiable accommodations: A comfortable place for everyone in the family is always a “must have.” For a family of four, three bedrooms may be non-negotiable. For a family with grandparents living at home, an extra bedroom on the first floor may also be non-negotiable. After determining the budget and neighborhood, the most important factor is that everyone living in the home has a comfortable place to stay.
Pick a lifestyle fit: After fulfilling the most important needs, buyers should find out what features of a home will best fit their lifestyle. For example, buyers who love to cook and entertain may want a home with a gourmet kitchen and decide to give up the large master bedroom. Or, buyers who love to spend time outdoors may compromise a large family room for a big backyard.
Have a vision: When looking at a first home, buyers should avoid getting distracted by decorations, paint or flooring that may not fit their taste. Items such as paint color or carpeting are easy to fix and always worth compromising on. If everything else about a home fits the wish list, a new coat of paint and a little redecorating are easy finishing touches on a dream home.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
To help first-time home buyers, the professionals at Coldwell Banker Real Estate have provided the following five tips to help determine what they will need vs. what is nice to have in a first home.
Know your budget: The first step to creating a list of “must-haves” is to be realistic about what is affordable and determine a budget. Buyers should enlist a local real estate agent to help with the home search. An agent with years of expertise understands the local market and can help buyers find comparable home prices and determine what is affordable in their budget.
Find that perfect “location, location, location”: Everyone has heard this phrase before when it comes to real estate, and while the surrounding neighborhood and home itself may improve over time, the physical location will remain the same. Buyers should determine in advance how close they would like to live to their work, schools or extended family. A short commute to work, proximity to family or having easy access to highways and mass transit are often “must-haves.” The location will also determine some home amenities that are possible or difficult to have within the buyer’s budget. For example, if a buyer has to live close to work in a big city, they may have to cross a garage or outdoor space from their wish list.
Determine non-negotiable accommodations: A comfortable place for everyone in the family is always a “must have.” For a family of four, three bedrooms may be non-negotiable. For a family with grandparents living at home, an extra bedroom on the first floor may also be non-negotiable. After determining the budget and neighborhood, the most important factor is that everyone living in the home has a comfortable place to stay.
Pick a lifestyle fit: After fulfilling the most important needs, buyers should find out what features of a home will best fit their lifestyle. For example, buyers who love to cook and entertain may want a home with a gourmet kitchen and decide to give up the large master bedroom. Or, buyers who love to spend time outdoors may compromise a large family room for a big backyard.
Have a vision: When looking at a first home, buyers should avoid getting distracted by decorations, paint or flooring that may not fit their taste. Items such as paint color or carpeting are easy to fix and always worth compromising on. If everything else about a home fits the wish list, a new coat of paint and a little redecorating are easy finishing touches on a dream home.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
A Short Guide to Real Estate Lingo and Acronyms
Sponsored By Realtor.com
Real estate ads are usually full of acronyms and terms that are unfamiliar to first-time buyers. Here’s a cheat sheet to let you in on the lingo.
4B/2B — four bedrooms and two bathrooms. “Bedroom” usually means a sleeping area with a window and a closet, but the definition varies in different places. A “full bathroom” is a room with a toilet, a sink and a bathtub. A “three-quarter bathroom” has a toilet, a sink and a shower. A “half bathroom” or powder room has only a toilet and a sink.
assum. fin. — assumable financing
closing costs — the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid through escrow.
CMA — comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
contingency — a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer’s contractual right to obtain a professional home inspection before purchasing the home.
dk – deck
expansion pot’l — expansion potential mean that there’s extra space on the lot or the possibility of adding a room or even an upper level, subject to local zoning restrictions.
fab pentrm — fabulous pentroom, a room on top (but under the roof) that has great views
FDR — formal dining room
fixture — anything of value that is permanently attached to or a part of real property. (Real estate is legally called “real property,” while movables are called “personal property.”) Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.
frplc, fplc, FP – fireplace
gar — garage (garden is usually abbrevated as “gard.”)
grmet kit — gourmet kitchen
HDW, HWF, Hdwd — hardwood floors
hi ceils — high ceilings
in-law potential — potential for a separate apartment, subject to local zoning restrictions
large E-2 plan — this is one of several floorplans available in a specific building
listing — an agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owner’s home. The word “listing” is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn’t a “listing.”
lo dues — low homeowner’s association dues. But find out how “low” the dues are compared to other dues in the area.
lock box — locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent
lsd pkg. — leased parking area. May come with additional cost.
MLS — Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listings Web sites. MLSs are local or regional. There is no MLS covering the whole country.
nr bst schls — near the best schools
pot’l – potential
pvt – private
pwdr rm — half bathroom or powder room
REALTOR® — a real estate broker or sales associate who is a member of the National Association of REALTORS®. Not all real estate agents are REALTORS®.
title insurance — an insurance policy that protects a lender’s or owner’s interest in real property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.
upr — upper floor
vw, vu, vws, vus — view(s)
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Real estate ads are usually full of acronyms and terms that are unfamiliar to first-time buyers. Here’s a cheat sheet to let you in on the lingo.
4B/2B — four bedrooms and two bathrooms. “Bedroom” usually means a sleeping area with a window and a closet, but the definition varies in different places. A “full bathroom” is a room with a toilet, a sink and a bathtub. A “three-quarter bathroom” has a toilet, a sink and a shower. A “half bathroom” or powder room has only a toilet and a sink.
assum. fin. — assumable financing
closing costs — the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid through escrow.
CMA — comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
contingency — a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer’s contractual right to obtain a professional home inspection before purchasing the home.
dk – deck
expansion pot’l — expansion potential mean that there’s extra space on the lot or the possibility of adding a room or even an upper level, subject to local zoning restrictions.
fab pentrm — fabulous pentroom, a room on top (but under the roof) that has great views
FDR — formal dining room
fixture — anything of value that is permanently attached to or a part of real property. (Real estate is legally called “real property,” while movables are called “personal property.”) Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.
frplc, fplc, FP – fireplace
gar — garage (garden is usually abbrevated as “gard.”)
grmet kit — gourmet kitchen
HDW, HWF, Hdwd — hardwood floors
hi ceils — high ceilings
in-law potential — potential for a separate apartment, subject to local zoning restrictions
large E-2 plan — this is one of several floorplans available in a specific building
listing — an agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owner’s home. The word “listing” is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn’t a “listing.”
lo dues — low homeowner’s association dues. But find out how “low” the dues are compared to other dues in the area.
lock box — locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent
lsd pkg. — leased parking area. May come with additional cost.
MLS — Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listings Web sites. MLSs are local or regional. There is no MLS covering the whole country.
nr bst schls — near the best schools
pot’l – potential
pvt – private
pwdr rm — half bathroom or powder room
REALTOR® — a real estate broker or sales associate who is a member of the National Association of REALTORS®. Not all real estate agents are REALTORS®.
title insurance — an insurance policy that protects a lender’s or owner’s interest in real property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.
upr — upper floor
vw, vu, vws, vus — view(s)
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Home Buying for Young People: Plan Ahead
By Marcie Geffner
Here are five recommendations for young people who want to position themselves for homeownership.
Granted, few young people spend much time day-dreaming about buying their first home. They’re naturally preoccupied with academics, athletics, parties, dating and future career possibilities. Nonetheless, there are a number of good reasons to start learning early in life about the costs of buying a home and the responsibilities of homeownership. For example, a college student’s misuse or abuse of credit cards can preclude his or her buying a home later on.
Here are five recommendations for young people who want to position themselves for homeownership:
1. Establish good credit habits and a favorable credit history. Get a credit card and use it responsibly. Apply for an automobile loan and make your payments on time every month. If you’re renting an apartment, put your own name on the lease and the utility bills and make sure the rent and the bills are paid every month. If you’re already struggling with credit card debt or have large student loans, take a free workshop from the non-profit Consumer Credit Counseling Service. Call (800) 388-2227 for information.
2. Start saving for a down payment and closing costs. It’s possible to purchase a first home in many parts of the country without much in the way of savings. But in high-cost housing areas, starting to save early can be enormously beneficial because you’ll get the advantage of compounding interest and have a longer period of time to grow your investments. Open a savings account or a stock brokerage investment account and make regular deposits.
3. Read some books. Your local library and bookstore probably have at least a few shelves of books about financial management and buying a home. Take notes. Make a financial plan for yourself. You can learn a lot about real estate, budgeting and credit on REALTOR.com® too.
4. Research where you’d like to live. Many young people assume they’ll continue living in their own home town when they get older, but people are more mobile than ever and chances are good you’ll one day live in another city or even another state. Again, the library, bookstore and Web can be excellent resources for information about housing costs and homeownership opportunities around the country.
5. Tap your real estate agent relatives for advice. Parents, grandparents, aunts, uncles or older cousins in the real estate business can give you good information about the cost of housing in the area where you want to live and what it takes to buy a home. Questions to ask: Is housing affordable in this area? How much money would I need to save in order to buy a home? What advice would you give me about planning my financial future? Would you recommend some books that I might like to read about buying a home? Don’t be shy. If you have a question, ask someone in a position to know the answer.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Here are five recommendations for young people who want to position themselves for homeownership.
Granted, few young people spend much time day-dreaming about buying their first home. They’re naturally preoccupied with academics, athletics, parties, dating and future career possibilities. Nonetheless, there are a number of good reasons to start learning early in life about the costs of buying a home and the responsibilities of homeownership. For example, a college student’s misuse or abuse of credit cards can preclude his or her buying a home later on.
Here are five recommendations for young people who want to position themselves for homeownership:
1. Establish good credit habits and a favorable credit history. Get a credit card and use it responsibly. Apply for an automobile loan and make your payments on time every month. If you’re renting an apartment, put your own name on the lease and the utility bills and make sure the rent and the bills are paid every month. If you’re already struggling with credit card debt or have large student loans, take a free workshop from the non-profit Consumer Credit Counseling Service. Call (800) 388-2227 for information.
2. Start saving for a down payment and closing costs. It’s possible to purchase a first home in many parts of the country without much in the way of savings. But in high-cost housing areas, starting to save early can be enormously beneficial because you’ll get the advantage of compounding interest and have a longer period of time to grow your investments. Open a savings account or a stock brokerage investment account and make regular deposits.
3. Read some books. Your local library and bookstore probably have at least a few shelves of books about financial management and buying a home. Take notes. Make a financial plan for yourself. You can learn a lot about real estate, budgeting and credit on REALTOR.com® too.
4. Research where you’d like to live. Many young people assume they’ll continue living in their own home town when they get older, but people are more mobile than ever and chances are good you’ll one day live in another city or even another state. Again, the library, bookstore and Web can be excellent resources for information about housing costs and homeownership opportunities around the country.
5. Tap your real estate agent relatives for advice. Parents, grandparents, aunts, uncles or older cousins in the real estate business can give you good information about the cost of housing in the area where you want to live and what it takes to buy a home. Questions to ask: Is housing affordable in this area? How much money would I need to save in order to buy a home? What advice would you give me about planning my financial future? Would you recommend some books that I might like to read about buying a home? Don’t be shy. If you have a question, ask someone in a position to know the answer.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
House-Hunting Tips
By Marcie Geffner
Buying a home? These eight tips can help make your house-hunting experience positive and rewarding.
1. Location counts. You’ve probably heard the old real estate joke about “location, location, location,” but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it’s in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years.
2. Make a list. Do you (and your spouse, if you’re married) really know what you need and want in your home? You’ll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don’t want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn’t suit your needs. Tip: Start compiling your wish list by thinking about what you like and dislike about your current home.
3. Do your homework. Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Web. Go surfing. Get educated. Become empowered.
4. Get preapproved for a mortgage. Your top-dollar home price is a function of your household income, your creditworthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you’re qualified to borrow. The true amount may be much more or much less than you think.
5. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.
6. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you’re relocating to a distant community and want to see a dozen homes in one day. There’s no sense in torturing your feet unnecessarily.
7. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you’re not really emotionally or financially ready to buy a home. If you’re not ready, don’t put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you’ll know what decisions you’ll face when you make an offer.
8. Relax. Granted, buying a home is a major life-altering event. But it’s not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Buying a home? These eight tips can help make your house-hunting experience positive and rewarding.
1. Location counts. You’ve probably heard the old real estate joke about “location, location, location,” but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it’s in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years.
2. Make a list. Do you (and your spouse, if you’re married) really know what you need and want in your home? You’ll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don’t want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn’t suit your needs. Tip: Start compiling your wish list by thinking about what you like and dislike about your current home.
3. Do your homework. Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Web. Go surfing. Get educated. Become empowered.
4. Get preapproved for a mortgage. Your top-dollar home price is a function of your household income, your creditworthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you’re qualified to borrow. The true amount may be much more or much less than you think.
5. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.
6. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you’re relocating to a distant community and want to see a dozen homes in one day. There’s no sense in torturing your feet unnecessarily.
7. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you’re not really emotionally or financially ready to buy a home. If you’re not ready, don’t put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you’ll know what decisions you’ll face when you make an offer.
8. Relax. Granted, buying a home is a major life-altering event. But it’s not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
Thursday, March 28, 2013
Common Questions from First-time Homebuyers
Why should I buy, instead of rent?
Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours - a home where your own personal style will tell the world who you are.
What are “HUD homes,” and are they a good deal?
Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.
Can I become a homebuyer even if I have I’ve had bad credit, and don’t have much for a down-payment?
Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local home buying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can’t find it, contact your mayor’s office or your county executive’s office.
Are there special homeownership grants or programs for single parents?
Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won’t have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won’t have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can’t find it, contact your mayor’s office or your county executive’s office.
Should I use a real estate broker? How do I find one?
Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don’t have to pay the broker anything! The payment comes from the home seller - not from the buyer.
By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.
How much money will I have to come up with to buy a home?
Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That’s why many first-time homebuyers turn to HUD’s FHA for help. FHA loans require only 3% down - and sometimes less.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise. If you buy a HUDhome, HUD may pay many of your closing costs.
How do I know if I can get a loan?
Answer: Use our simple mortgage calculators to see how much mortgage you could pay - that’s a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don’t you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you’ll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.
How do I find a lender?
Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they’re offering. Or you can look in your local newspaper’s real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lendersin the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you’re interested in an FHA loan.
17. In addition to the mortgage payment, what other costs do I need to consider?
Answer: Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
19. So what will my mortgage cover?
Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you’ve borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.
21. What do I need to take with me when I apply for a mortgage?
Answer: Good question! If you have everything with you when you visit your lender, you’ll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years’ income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information.
I know there are lots of types of mortgages - how do I know which one is best for me?
Answer: You’re right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran’s Administration’s programs and the Department of Agriculture’s programs. Most people have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
When I find the home I want, how much should I offer?
Answer: Again, your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it’s been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
What if my offer is rejected?
Answer: They often are! But don’t let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don’t get so caught up in negotiations that you lose sight of what you really want and can afford!
So what will happen at closing?
Answer: Basically, you’ll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you’re signing. After all, this is a large amount of money you’re committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a “good faith estimate” of how much cash you’ll have to supply at closing, and a list of documents you’ll need at closing. If you don’t get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don’t hesitate to ask questions.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, andMortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
55 Tips for First-Time Home Buyers
By Quicken loans
The number of people searching for a new house has increased dramatically, especially with the first-time homebuyer tax credit. With the number of foreclosures, short sales, and standard sales, looking for a house has become overwhelming with various terms and conditions in each type of sale. Home buyers need to watch for a variety of factors including time, conditions of the home, and stringent inspections. So, if you’re looking for a house, or plan to in the near future, here are 55 tips every home buyer should know about before buying a home.
1. Short sales that have not been pre-approved generally take much longer than foreclosures or standard sales to close.
2. You should look at many houses before choosing one. So don’t feel bad if you haven’t found the right one yet.
3. In the case of foreclosures, looking at over 30 homes before deciding is not excessive.
4. When looking at a potential house, look in the basement first, see how old the water heater and furnace are, and if there’s any rust.
5. Check for mold along the edges in the basement.
6. Check for water damage along the walls of the basement, it may be as simple as making sure the gutters flow down further away from the house.
7. Before deciding against the house, make sure it’s because of large factors and not cosmetic issues such as the wall being dirty.
8. Remember, if you find a house that’s structurally sound, but needs improvement – a FHA 203k loan can give you up to $30,000 for repairs on the home, making it great for investment property to turn around in a few years.
9. If you find a house with a damaged pool, remember this depreciates the house by around $10,000. Taking an above ground pool out will require quite a bit of dirt to fill it in if they buried it a couple feet in — which may cost you thousands in loads of dirt.
10. Don’t be turned off by paint colors – this is such an easy fix that it shouldn’t deter you from a great bargain.
11. If you need to buy appliances for the house, consider buying Energy Star certified ones to get the tax credit and be green.
12. If you’re looking at investment properties, always think about cheap ways to improve curb appeal, such as building a porch or deck.
13. Mentally compare the square footage between homes you’ve already seen. Seems too small? Think about the size after you add furniture and a dog.
14. Don’t shy away from homes that are not in move-in condition. If a few weekends of work will increase the value by $20k – it might just be worth the work.
15. Compare homes in terms of how much you’re paying per square foot in homes that have similar features, your realtor will give you the comparables before bidding.
16. Don’t place all damages on the same comparison level, for example a broken tile is far less serious than a leaking roof.
17. Be sure to weigh your options in terms of price to fix it, or how much the feature is worth.
18. Remember tubs can be re-glazed for relatively cheaply if one doesn’t fit your standards.
19. Look at the neighborhood to gauge the worth of the home, bad next door neighbors can depreciate the value of the neighborhood.
20. Drive by the neighborhood at different times to understand the community and noise level.
21. Don’t be afraid to talk to your potential neighbors and get some tips on what it’s like to live there.
22. Try to choose an area with good schools – this will come in handy even if you don’t have kids in terms of reselling.
23. Get pre-approved first (not pre-qualified), so that when you’re ready to buy, the underwriting process is already underway.
24. Be flexible about your wants. Limiting your search to a set amount of features can prevent you from seeing other comparable properties.
25. Always check out the comparables for an idea of how much to bid. Your realtor can hook you up with info about how much similar homes have sold for in that neighborhood in the past 6 months.
26. If you’re getting an FHA loan, keep in mind that the inspection is stringent, so water in the basement or cracks on the driveway may not pass inspection.
27. Keep in mind, in this market, many homes are being bought up with the incentive of the first-time home buyer tax credit, so don’t think that you won it just because you bid on it.
28. Realize that finding a home could take some time, while some realtors say it only takes 2 weeks, it could take a month or more.
29. Make a list of all possible locations you can live at.
30. If you want to find listings, check out In-House Realty.
31. Verify home listings are current with state sites such as Move in Michigan by pasting the MLS number.
32. Have your realtor print out profile sheets for all the homes you’re going to see that trip so you can make notes and keep track while you’re inside the home.
33. Look at the roof to make sure it was built properly and that it’s not caving in any way.
34. Check the cement sidewalks for cracks and hazardous areas. Many inspectors will look for those issues.
35. Make sure your furnace and water heater are in an easily accessible area. If previous owners built around that to finish the basement, you may be looking at the cost of knocking down a wall to get it out when the time comes to replace it.
36. Calculate how much home you can afford first. Remember, your mortgage payment should be 25% of your income, so buying the most home now may make you financially stressed later.
37. If you don’t have at least 5% of your down payment saved up, look into how “FHA loans”:/home-loans/fha-loan can help.
38. If you have low credit, look into FHA loans to help.
39. Get your “free credit score and report”:https://www.quizzle.com/ at Quizzle so you have an idea of what loans are available with your credit.
40. Do your research and go prepared with an idea of what things you’d be willing to fix and what you’d have to hire out, and also what repairs you want to avoid.
41. Have a good understanding of your finances, what you can afford, and how much property taxes are before looking.
42. Don’t be blinded by a well painted house, try to envision the house as plain white on the inside to focus on structural flaws.
43. HUD are FHA loan foreclosures, and often take less time to find out if your bid won. Your realtor has to bid for you through the HUD website for these homes.
44. Use amortgage calculator to find out how much home you can afford.
45. Ask your banker for a Good Faith Estimate to have a solid idea of how much money to bring to closing.
46. Get multiple pre-approvals so you are ready to bid at multiple prices.
47. Know the difference between biweekly and bimonthly payment plans. Biweekly will allow you to pay off your home earlier.
48. If you want to be on the safe side, get a longer period to pay back the loan, and make extra payments to get it paid off earlier.
49. If you plan on moving within 5 years out of the home, make sure there’s a good renter’s market in case you can’t sell immediately.
50. Research if paying for points is beneficial to you.
51. Don’t forget about title insurance fees, survey charges, escrow fees, and loan origination fees, all of this is due at closing so it’s good to know ahead of time what you’ll be paying for.
52. Look into what home improvements have the highest return on investment so you know which projects you want to take on.
53. If you’re curious what homes around the neighborhood are selling for, try Google Real Estate to see pricing on the surrounding homes for sale. The birds-eye view gives you a good overview of the area quickly.
54. If you tend to spend extra cash at the end of the month, consider having a shorter loan and making larger payments.
55. Check out 10 Cheap Ways to Increase Your Home’s Valueto see what repairs you can handle. Get finance planning tools from Quizzle.
My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.
The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, andMortgage Tips. For a personal consultation please visit our Office.
It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.
Email me at scott@gerharterrealtors.com.
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