DID HURRICANE IRENE DO DAMAGE TO THE HOME YOU ARE SELLING?

So you have your property listed for sale and then came Hurricane Irene...now you have water in the basement or tree damage to your garage roof...what now? 

It is now time to call your agent and update your Seller's Property Disclosure.  Although requirements are different from state to state, most states do require sellers of real estate to disclose some facts about a property they are selling. 

Sellers Property Disclosure - A statement of facts made by the seller about the condition of a property being sold 

 
© Copyright Dominic Robinson
and licensed for reuse under
this Creative Commons Licence

Property disclosures originally became a requirement to protect buyers, but it has turned out they have often protected the seller.  For example - A buyer purchases a home where the seller disclosed there had been water in the basement after storms.  Several months later after a summer storm, the buyer ends up with water in the basement.  They call their agent insisting that they were never told of a water problem and that they plan to sue the sellers and agent.  In this case the agent or agents involved could pull the property disclosure from the file.  In most states both buyer and seller are required to sign this document.  If the document is produced and does in face state there had been water in the basement, the seller has some protection that they would have not had without that written document!

As you can see, making disclosure of required items up front could be a benefit to you as a seller.  Do you need to update your disclosures?  Call your agent to see what disclosures are required in your state!

Do you think Open Houses work?

Interest Rates and Home Buying

If you have been waiting for the right time to buy a home...it might be time with today's low interest rates!

Why are interest rates such a big deal when purchasing real estate? A change of only 1/2% interest will not only change your monthly payment substantially, but can save you thousands of dollars over the life of your loan!

For example...if you took out a $150,000 loan for 30 years





Who couldn't use an extra $35.00 a month? And who would want to pay an extra $15,000?

It was only a few years ago that we thought a 6% interest rate was low. At 6% interest on a $150,000 loan your monthly payment would be $899.33.

$193.97 more than at today's 3.875% rate!

The bottom line is that not only have prices come down, but with today's lower interest rates, you can often get more for your money! So what are you waiting for? You could own a home and stop paying rent in just a few weeks!

Buying vs. Renting in Today's Market

Are you still writing those checks to your landlord every month to keep a roof over your head, but not accumulating any home equity? If you are still renting because you think you still need a fortune to get into your own home, you should investigate today's real estate market.

image by http://workingtaxcreditcalculator.co.uk/

Interest rates are still low, which means that mortgage loans are affordable, with payments potentially in the range of your current monthly rent. There are a number of government programs and mortgage packages which require small down payments. Think about it the next time you write a rent check.

Consider looking at "fixer-uppers". A property with incredible potential may be in a great location, have large rooms and a big yard, but it may also have dated wall paper & worn carpet. If you can look beyond the surface, you may see a house that could be transformed by a little "elbow grease", paint, and fresh flooring.

A house that is structurally sound with all the systems in good condition may be only a few cosmetic repairs away from being your dream home! Better yet, home that does not show well is usually priced accordingly.
Are you ready to stop renting and look into buying? Now is a great time!

Check Your Credit Report...for Free!

Photo by Alan Cleaver

You know your credit report and credit score are important when you are purchasing a home, but do you know how to check them? Did you know you can check your credit reports for FREE?

There are a lot of websites that claim to offer a free credit report, but the truth is that most of them are really trying to sell you something. Annualcreditreport.com offers consumers the chance to check their credit reports from Equifax, Experian & TransUnion once a year for free...without having to purchase anything! Each report will probably slightly different, so it is a good idea to check all three to make sure there are no mistakes. If there is a something incorrect on your report, checking it in advance will give you the time to have it corrected without holding up your home purchase.

Keep in mind your credit report and credit score can change on a regular basis so don't be alarmed if the information is slightly different when your lender checks your credit report.

Your credit score is usually not something you can look up for free, but you will have the option to purchase that information for a small fee.

Once you have spoken with a lender for your loan pre-approval, you should avoid taking out loans, moving around money or charging purchases. If your credit score changes drastically, it could jeopardize your loan approval.

Click here for more information about your credit and purchasing real estate!

What's the difference between a Short Sale & a Foreclosure?

Please enjoy this month's episode of Your Real Estate Solutions

This month's episode discusses Web based marketing when choosing a real estate agent (ranking of websites, unique visitors, linking domains, etc.) Dan Roux from Roux insurance in Lewiston discusses flood zones and their impact on homeowner's insurance. Kim Fowler discusses short sales. Mike Lepage, 2011 President of Maine Association of Realtors, gives advice for buyers in this market, which is getting recommendations working with your Realtor and lender and understand value.

Why Don't Some Homes Sell?

Has your house been sitting on the market and not selling?

Are you wondering why?

In order to sell your house, you need 4 basic things...

 

1. Good Communication

Selling a home is a team effort. You and your real estate professional need to communicate openly. You need to provide your agent with the information they need about your home & financial situation honestly in order for them to properly represent you and your home. In return, your real estate agent should provide you with timely feedback about your showings, changes in the status of the market and information about comparable properties.

2. Proper Pricing

Nothing will cause your home to sit on the market without selling quite like not pricing it properly. You have to get buyers through the door in order to sell a house. If your home is priced to high, you may be limiting the number of showings you are getting. Remember the buyers who do view your home are also viewing other homes in the same price range...they know what else is on the market for a similar price. If your price is high, they may think you are not serious about selling and not even make an offer. Pricing your home in line with comparable homes that have sold quickly will increase your chances of selling quickly!

3. A Great Marketing Plan

When buyers were asked where they learned about the home they purchased in 2010, 38% said the Internet; 37% said a real estate agent according to the National Association of Realtors. Make sure your Agent has a strong internet marketing plan to increase the exposure of your home. Only about 1% of buyers said they found their home in a print ad and only about 11% found the home at and open house or by seeing a yard sign, so if your agent is still stuck on open houses and real estate magazines, you are hurting your chances of selling for the best price in a reasonable timeframe!

4. A Showing Ready Home

Are buyers able to see themselves in your home once they enter? One of the hardest things about selling your home is trying to remember that not everyone lives like you do. Your goal should be to have the home "show ready". Make sure the house is clean and uncluttered. Remove personal items. Take care of those minor repairs that may make the potential buyer think you have not maintained your home. You hear a lot about "staging to sell" because it does work.

Selling your home does not have to be a mystery. Just follow these 4 steps and you should be moving in no time.

No Money Down Home Loans - Do they Still Exist?

Believe it or not, there are still options available for home loans with no money down or low money down!

Great news in today's economy!

Photo by Bill Ward's Brickpile

NO MONEY DOWN OPTIONS:

VA Loans Basics

• Available to Veterans, active duty military, some reservists & National Guard members, some spouses of active duty personnel
• Borrower must qualify in terms of income/credit worthiness
• Borrower must occupy home as primary residence
• No private mortgage insurance
• Borrower is required to pay a VA funding fee but this can often be folded into the loan
• Seller is permitted to pay closing costs on behalf of buyer
• Borrower may be required to pay some fees charged by lender

Click here for more information on VA loans

Rural Development Loan Basics

• Borrower must meet income/credit worthiness
• Borrower must occupy the home
• Home must be located in rural ares
• Single family homes only
• New or existing homes
• Loans may include customary closing costs
• Borrowers may be responsible for some fees required by lender or not covered by appraised value

Click here for more information on VA Loans

photo by Bill Ward's Brickpile

LOW MONEY DOWN OPTIONS:

FHA Loans Basics

• Borrower must meet FHA qualifications for income/credit worthiness
• Borrower must occupy property
• Single family homes - 4 units
• New or existing homes
• Down payment as low as 3.5% of loan amount
• Seller is permitted to pay closing costs on behalf of buyer
• Borrower may be required to pay some fees required by lender

Click here for more information on FHA Loans

Closing on Your New Home - Step #10

10 STEPS TO PURCHASING A HOME IN MAINE

Closing on Your New Home - Step #10

photo by Steve Snodgrass

This is the moment you have waited for, worked for and worried about for the past few weeks....closing day! Today the property will officially transfer from the seller to you, the buyer and you will become a Homeowner!

So what should you expect? A typical closing usually takes about an hour and involves a lot of signing for the buyer. If you are interested in reading all the documents, make sure you ask your broker or lender to provide you with a copy in the days before closing. If you read them all at the closing table, the closing will take several hours. The title is usually conducted by an attorney who will explain to you the documents and answer any questions you may have.

In most cases you will need to bring some money to closing to cover your down payment, closing costs or appraisal. Remember that you will need a certified check. You can have a certified check made out right at your bank before heading to closing. Most title companies will not accept a personal check or cash.

You will also need to provide one and sometimes 2 photo IDs so bring your driver's license and whatever photo ID you have.

Once the paperwork is done, you can head to your new home with your new keys and start unpacking! Congratulations...You are a Homeowner!

Final Walk-Through - Step #9

10 STEPS TO BUY A HOME IN MAINE

Final Walk-Through - Step #9

Before you close on your new home, you typically have the right to do a final walk-through. This is most often done within the last 24 hours prior to closing. The final walk-through has several purposes:

1. To make sure the property is in the condition that you agreed to purchase.

2. To make sure that any repairs negotiated have been completed.

3. To make sure that nothing has gone wrong with the property.

4. To make sure any personal property or appliances that were to stay with the sale are still there.

In the busy days just before your closing there is a lot going on. You may be tempted to skip the final walk through. Doing this walk through before heading to the closing table gives you a chance to address any issues before hand. If you skip the walk through you may find an unwelcome surprise on move-in day.

Your buyer's agent will accompany you on your walk through. Their expertixe can help you decide what you should be checking.

Some examples are:

Turn on the lights.

Turn on the water.

Make sure the agreed upon appliances are there.

Turn on the heat.

Make sure trash and debris has been removed.



photo by doortoriver

Usually the final walk through goes fine, but it is always better to err on the side of caution...and aren't you excited to see your new home one more time before closing?

Homeowner's Insurance - Step #8

10 STEPS TO BUYING A HOME IN MAINE

Homeowner's Insurance - Step #8

Congratulations! You found a home that you love, made an offer that was accepted, did your inspections and now you are packing up with dreams of your new home in your mind. In the midst of the daydreams, don't forget to obtain homeowner's insurance on your new purchase!

If you are financing your property, your lender will require that you have a policy in place before closing. It is a good idea to get quotes from several companies before making your final decision. Check to be sure you are being offered comparable coverage at each company. Once you choose the company you want to use, they will need some information about your new home. Having the disclosures you received for the property with you, will make answering the questions easier!

The company you choose will provide you with an insurance "binder" that you will need to provide to you lender before you can close. The lender will let you know when they need that, but be prepared so you have time to shop around and choose the right coverage and company to meet your needs without being rushed! After all...you need to finish packing!

Home Inspections - Step #7

10 Steps to Buying A Home In Maine

Home Inspections - Step #7

In most cases, once you have found a home and make an offer to purchase it, you will want the professionals to check it out!

When you and your agent write the offer, you will specify which items you would like to inspect or test. Common inspections in Maine include a general building inspections, septic inspections, water tests and radon tests - but there are numerous other investigations that are available. You and your agent will decide what should be checked out on your chosen home.

• If your home does not have a septic inspection, you will probably skip the septic inspection.
• If the home has a well, your financing might require a water test.
• You may decide you are not worried about lead paint, but another buyer may have small children and a lead paint inspection might be important to them.
• What you decide to inspect will be decided by what is important to you.

Keep in mind, no house is perfect, but if an issue does arise...DON'T PANIC! You have options! You can try to negotiate having the seller do the needed repairs before you close, renegotiate the price or even walk away from the house. Just keep in mind, there are deadlines and time frames in your contract for resolving inspection issues, but your agent should keep you on track.



The bottom line is that spending a few hundred dollars before you close on a home could save you thousands later!





photo by Wonderlane

Click the picture to meet the Realtors of Fontaine Family - The Real Estate Leader!

Financing Your Home - Step #6

10 Steps to Buying a Home In Maine

Financing Your Home - Step #6

Once your offer is accepted, it is time to finalize your financing! Since you got your pre-approval before looking for a home, you are on the right path. Now is the time to take the next step and get your formal loan application started! Your chosen lender will need a copy of the accepted Purchase & Sale contract to set the process in motion. They will also probably need a lot of additional information and documentation from you such as tax returns, copies of your paychecks and information about your debt. It is important to get the requested items to your mortgage officer in a timely manner to keep the mortgage process moving forward.

Your loan officer will verify the information you provided to them at your pre-approval, check your credit report and order the title work and appraisal. It is important to be cautious and not do anything that will change your financial situation until closing. Don't buy a new car, go on a shopping trip with your credit card, skip any scheduled payments or quit your job. A change in your finances can impact your eligibility for the mortgage.

  Photo by AMagill

Negotiating the Deal - Step #5

10 STEPS TO BUYING A HOME IN MAINE

NEGOTIATING THE DEAL - STEP #5

Negotiating every deal is different. Your agent will help you decide the best course of action for each situation depending on lots of factors.


How long has the property been on the market?

Has the price been reduced?

Are there other offers or interest?

What have comparable properties sold for recently?

Photo by Mr TGT

Your negotiation strategy will be different if the house is fresh on the market than if it has been listed for a year. If there are multiple offers you will have to be more aggressive than if you were the only interested party.

You might end up with an offer and counter offer several times before you come to an agreement. Don't be discouraged...it is all part of the process. Compromise is usually necessary from both buyer and seller to reach a successful agreement. Rest assured that if you did decide to have a Buyer Agent represent you, they are doing what they can to get the offer accepted...they are working for you!

If your offer isn't accepted on a property, there are more properties being listed every day, so something else will come along!

WRITE AN OFFER - STEP #4

10 STEPS TO BUYING A HOME IN MAINE

Write and Offer - Step #4

You found a house that you love...now what?

It is now time to write an offer! In the state of Maine, the offer becomes your contract to purchase your chosen property once the offer signed is accepted by all parties. For that reason, it is important to specify all conditions of the sale in the original offer. Financing, investigations, the amount of earnest money and the desired closing date are just a few of the items you will need to address in your offer. It is a good idea to look over a blank "Purchase and Sale" at the beginning of your home search so you can be prepared for what information is needed when you are ready to make your offer. Your agent can provide you with a copy and discuss any questions you have about the "Purchase & Sale" in advance so you are able to act quickly when you find a home to purchase.

When you do sit down to make your offer, your agent should be able to advise you about the selling prices of similar properties in the area to help you decide what to offer, as well as what investigations you may want to consider and the amount of earnest money you may want to offer...among other things. Remember, if you signed up to have a Buyer's Agent represent you, they are working for you...talk to them so they can best assist you!

SHOP FOR HOMES - STEP #3

10 Steps to Buy a Home in Maine

Step #3 - Shop for Homes

Now the fun begins…looking at properties that are listed for sale!

In order for your agent to provide you with listings that will make you happy, you must share with your agent your NEEDS as well as things you would like to have in your new home. Discuss location, the amount of bedrooms you need, as well as anything else important to you. The agent will provide you with listings of homes that are on the market that meet your criteria. Once you decide which homes you want to see, your agent will set up appointments for you to view the homes.

It may sound like a lot of fun to see lots of different homes, but it can also be time consuming so it is important for you to tell your agent what you do and don’t like about each property. The more you share, the easier it will be for them to provide you with listings that suits your needs and wants and the sooner you will find your dream home! Remember, if you signed up with a Buyer’s Agent, they are working in you best interest, but they need to hear what you think.

Photo by futureatlas