Buying a Model Home, part 1

People who are looking for a deal may go into a furniture store and buy the floor model of a couch or dresser. Did you know that you can do the same thing with a home? Yes, you can buy the model home is a housing complex or condominium.

If you are buying home in a newly built housing complex and there is a model home there, you may be able to buy that home. Just know that you are not buying a brand-new home, since the model home will have seen some wear and tear. Since it is meant to be a showpiece, some builders put little thought into constructing a model and a lot of thought into decorating it. Other builders, however, put extra care into a model because they know that its quality will attract buyers.

Since the model home is not brand-new, you can use this as a bargaining tool when it comes to negotiating a price. Much of what is in the model is something that the builder can write off as part of their marketing budget, so don't be intimidated.

Check back on Friday to read more about how to successfully purchase a model home.

Make Your Move Earth-Friendly

Is it possible to move to a new home in an environmentally conscious way? Yes, it is. While you will still likely need a vehicle that consumes gas to move, there are other ways to consider the Earth as you transition to a new home.

Here are some tips to have a "Green Move"--

Recycle prior to moving
Get rid of things you don't want by donating them or having a garage sale instead of transporting it to your new home.

Use green cleaning products
Clean out your old and new residences with products that aren't harmful to the environment

Pack your stuff in used cardboard boxes
Many people do this to save money, but it also helps the environment. Just make sure the boxes are sturdy. Supermarkets and liquor stores often have boxes available

Pack with greener materials
Rather than use plastic bubble wrap, pack with old newspaper or moving pads made with recycled cotton.

Hire a green moving company
Some moving companies are committed to earth-friendly practices like operating bio-diesel trucks or providing packing crates that can be reused.

Be Careful About Your Closing Date

According to one real estate expert the worst day of the year to buy a home is the last Friday in May. You may wonder just how someone could come up with a certain day and name it the worst. I can tell you that after many years in any business, you start to see patterns.

After years in the business this real estate professional has seen how closings scheduled near Memorial Day end up being pushed back. Most people are not available for work. Even those that are have their minds elsewhere. Also, a delayed closing date could have an effect on your interest rate. If you have a locked-in rate for a certain time period, you do not want it to expire.

This expert feels that April is prime time for pending home sales. This makes for a larger number of closings in May. Real estate professionals feel extra pressure at this time of year because their workload is heavier.

Since the Memorial Day holiday has already past for this year, it is not a problem. Still, this is definitely something to think about. Overall, you should consider making sure that your closing date does not fall around any major holiday or three-day weekend. You want a complete and mindful staff working on your behalf.

Prepare for Home Ownership

While it is possible to wake up one morning and decide that you want to buy a home, the process may go more smoothly if you prepare.

If possible you should look at your finances a year before you want to purchase a property. This means looking at your credit reports, getting your FICO score and doing your best to eliminate debt. You may not be able to do this a year ahead of time, but that doesn't mean you cannot do some of these things in the months before you start home shopping.

Once you have a picture of your credit situation, think about how much house you can afford. Crunch some numbers and play with a few different scenarios. Look into the related costs of home ownership, not just the mortgage. Think about how much you'll need to save for emergency repairs and property taxes.

Seek the advice of experience real estate professionals, rather than laypersons. One young person told me that they were advised to buy the most house they could afford. This may not be the best strategy. If you go out and get the biggest mortgage you think you can afford, you can run into trouble later.

Documenting Your Home and its Contents for Insurance Purposes, p.2

On Wednesday, I wrote about the importance of document your home (inside and out) so that you have an inventory for insurance purposes in case of natural disaster or emergency. Here are more tips for documenting you home and its contents:

In addition to big ticket items, you may not even realize the amount of smaller items you have in your home collectively, they are quite valuable.

Here are some tips for photographing items in your home:

-Use the date stamp so you can demonstrate how recently the pictures were taken. You should update your photo inventory every five years.

-Take single pictures of high-priced items. Take close-ups to capture the make and model number of appliances.

-Take panoramic shots of rooms to capture all that they contain.

-Don't forget closets! You want clothes and other items to be taken into consideration when damages are calculated.

-Keep your photo inventory in a fireproof safe-deposit box that is not kept in your home. You can leave it with a relative or friend. Or you can keep it in a safe-deposit box at your bank.

Documenting Your Home and its Contents for Insurance Purposes, p. 1

Of course you'd rather not think about things like natural disasters or other emergencies that could hamper your ability to live in your home, but it is better to consider them when they have not occurred than to deal with them if they do.

One way to protect your assets is to photograph them. True, you may have receipts for big tickets items, but if for some reason you can't get to those receipts. you'll still want to have a record of what was in your home. Plus, the receipt may not tell the full story; information like the make and model number of an appliance, for instance may not be on a receipt. The more information you can give to your insurance adjuster, the better.

Besides photographing the contents of your home, you can also make a video of your home and of the home itself. This means that not only are you documenting what is inside, but you are also documenting how your home looks on the outside. Things on the outside like fences, gates, swings, gardens matter just as much as what is on the inside.

Feds Catch Up With $10M Mortgage Fraud Ring

Last week I read about how federal agents in Maryland arrested a group of people in a $10 million (or maybe more) foreclosure fraud ring. One government official referred to it as the worst mortgage fraud scam in Maryland history.

The Metropolitan Money Store promised to help people saved their homes from foreclosure, but instead they cheated people out of their homes and pocketed the profit. They allegedly told hopeful homeowners that they would find someone to buy their properties so these financially strapped homeowners could get their credit in order.

What they really did was take out overpriced mortgages on the homes. They allowed the homes to go into foreclosure by not paying on the inflated second mortgages, after they had gained money from the equity that remained in the home.

If you are afraid that you cannot pay your mortgage, seek the help of a trusted real estate professional. Someone who can help you talk to you lender, rather than taking out a second mortgage when the first mortgage is already in jeopardy.

You can always feel free to e-mail me with your mortgage concerns: john.day@longandfoster.com.

Going After Buyers who Fit the Bill

In a post earlier this week, we talked about how one way to get around neighborhood eyesores is to look for buyers who won’t mind that sort of thing. You may have thought, "What kind of buyer wouldn't mind an eyesore?" Well, beauty and eyesores are in the eyes of the beholder.

You may not like the hot pink house next door or the house down the street with all of the lawn statues, but someone else will think it's great. If your neighbors are going for a funky, artistic look, then you and your real estate agent can go after buyers with an eclectic sense of style.

When you are ready to sell, you may think that all you need is a reasonable offer from anyone. This is true, but you may sell faster if you know just who will be likely to buy your home. Think about what kind of buyer will be attracted to your home and the surrounding area. Then you can put up notices in coffee shops or grocery stores or whatever venues are frequented by people who fit your buyer profile.

Home Improvements that Will Help Sell Your Home

Experts say that more than anything, fixing the basics is what helps a home sell quickly. If you want to sell your home and there are basic things that need improving, start there first. If there are only a few basics that need improving, then you may want to upgrade some other areas just to add extra appeal.

Painting is the one improvement that helps whether you have a lot of work to do on the house or just a few adjustments to make. A fresh coat of paint will do wonders for any home.

The improvements you make will also depend on what is standard for where you live. So do your homework before diving headfirst into a lot of home improvements.

Here are some basics:
Replace leaky windows
New siding
Fix old gutters
Replace roof
Repair plumbing issues
Fix electrical system
Repair broken fence
New bathroom (if there is only one)

Here are some extras:
New Deck or sunroom
Additional bathroom (if home already have more than one)
New outdoor lighting
Swimming pool

Are You Your Neighbor's Keeper?

When a homeowner gets ready to sell a home, they spend a lot of time and energy on sprucing up their property. But be aware that your property is not the only on that potential buyers are looking at when they consider purchasing. They are looking at your neighbors' homes as well.
What do you do if a house on your street looks absolutely horrible or is unkempt in some other way?

You can try to talk to the owner, if you feel comfortable doing so.

You can rely on local laws that relate to a property's condition. For example, if your area has a law against someone parking multiple cars on their lawn or laws that prohibit certain exotic pets, you may consider calling the authorities.

We are not advocating these solutions, but merely presenting them as options. Another way to get around a neighborhood eyesore is to seek out the kind of buyer who will not mind that sort of thing. That way you don't have to concern yourself with the neighbor or the government.

Storm Safety Tips

A lot of older people used to cease all activity once a storm began. These days, we figure that modern technology and safeguards are so sophisticated, that we do not need to be so cautious. This probably is not a good idea.

If there is a storm, you should do what you can to make sure that you do not put yourself in unnecessary danger. The phone lines, plumbing and fixtures in your house can conduct electricity if lightning were to strike. Now you don't have to turn off all lights and remain completely still as some people used to do. But you should not take a shower or bath or talk on a corded phone during a storm. It is better to be safe than sorry. Once the storm is over, you will be able to do all of these things. Lightning can do terrible damage to a home, just as any electrician.

If you know a thunderstorm is coming, you can unplug as many appliances as you can before the storm hits. When you know you will be away and thunderstorms are likely, unplug appliances before you leave.

The Latest Celebrity Face of the Foreclosure Crisis

I was saddened to hear that Ed McMahon is the latest celebrity face of the foreclosure crisis. McMahon is 85 and you may remember him for his appearances on the Johnny Carson show and his time hosting "Star Search." McMahon is recovering from injuries and this hampered his ability to earn money pitching various products.

The good thing is that McMahon and his wife have taken a proactive approach to the situation. They have been in talks with their lender. This is the smart thing to do, rather than trying to take out additional loans or lines of credit.

If you are facing a similar situation because of illness or injury, be sure to get the advice of a professional. You should definitely get in contact with your lender, but don't do it all on your own. The advice of someone who is not emotionally or financially tied to your home can be invaluable. You can always contact me at 410-507-2909.

You can also seek the counsel of a HUD-approved expert. Go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 1-800-569-4287 to learn more about HUD-approved counselors.

Incentives for Home Buyers

Sitting in a restaurant the other day, I overheard a conversation about a home sale. One of the people involved was telling her companion about how they had decided to offer to pay a buyer’s rent for a few months to seal the deal. It seems that the buyer wanted to move in before she would be able to move out, so they reached a compromise. This way she did not have to leave before her new home was ready and the buyer got the home he/she wanted, albeit a little bit later than they’d hoped.

If you were not aware of this option, consider it. A while back, I wrote about some unusual homeselling incentives. Some of those methods were a little outlandish. But offering to take care of a few month’s rent for a buyer is not unheard of at all. Don’t let something like a move-in date keep you from selling your home. This is not the type of thing that should have you and a buyer walking away from the table.

An experience real estate agent can help you sort out these kinds of agreements. If you have questions about buyer incentives, call me and my team at 410-507-2909 or e-mail me at john.day@longandfoster.com.