The Home Buying Blog

Home Appraisal Industry is in the News

noreply@blogger.com (Real Estate Pro) — Wed, 27 Aug 2008 12:01:00 +0000

Right now people are looking at the home appraisal industry since the Associated Press and other group turned a critical eye on home appraisers.

In this less that stellar real estate market, appraisals are being increasingly important. Most lenders want to see the results of an appraisal before they will agree to give a buyer a loan.

Note that an appraisal is not a home inspection. Home inspectors are more concerned with function--does the air conditioning system work properly, will the drainage system drain rainwater as it should? An appraiser is looking more at form--how many square feet, how does this home compare to others on the market? Home inspectors are concerned with you ability to live in a home after you buy it. An appraiser’s work is more connected to the actual sale of the home.

An appraiser is tasked with making sure they come up with an unbiased assessment of a home’s market value. Unfortunately, some appraisers say they have been pressured by a bank or a real estate agent to assign a home a higher value than it may be worth.

What Defects Must You Disclose?

noreply@blogger.com (Real Estate Pro) — Mon, 25 Aug 2008 11:58:00 +0000

As a seller, you are responsible for informing a buyer of your home’s problems or defects. If you decide to not to inform a buyer of serious defects, you leave yourself open to be sued later. Even if you sell your house “as-is” you still have to tell the buyer about serious problems with the property..

While it is not necessary to give potential buyers a list of every possible defect in your home, there are some major issues that you must disclose. One of the best litmus tests for disclosures (outside of those things that are required by state and federal law) is to ask yourself if this is something you would want to know about a property you are considering. You can also ask seek the advice of a qualified real estate professional. In fact, some real estate companies will ask you to fill out a disclosure form before they agree to represent you.

One thing you really cannot keep from potential buyers is the possibility of a toxic substance. You need to be honest if the following are present in your home:

Lead
Radon
Carbon Monoxide
Formaldehyde

Home Staging Your Kitchen

noreply@blogger.com (Real Estate Pro) — Fri, 22 Aug 2008 12:29:00 +0000

When it comes to home staging, you must consider every room in your home. So don't neglect the kitchen. It is the heart of the home. People spend a lot of time in their kitchens (whether they actually cook or not). If your house has an open kitchen, then you really cannot afford to leave it untouched as you set the stage in other parts of the house.

The thing about home staging is balance. If you clear everything out, the rooms will look barren. And if you get too fancy, potential buyers will be turned off and unable to see themselves actually living in the house.

Here are some tips:

-Give the kitchen a thorough scrubbing, so it shines.

-Avoid cooking odors. Go out or bring food home before open houses.

-Don't leave cleaning products in sight.

-Clear the refrigerator of excess notes, magnets, etc.

-Put new handles or knobs on cabinets to give the room a lift.

-Don't leave dirty dishes in the sink or dishwasher.

-Arrange cups and plates in a pleasing way. When buyers open cabinets (and they will) orderliness will have a positive effect on them.

-Put out a bowl of fresh fruit or a pretty bottle of oil, vinegar or wine.

Don’t Hesitate to Approach Your Bank to Negotiate

noreply@blogger.com (Real Estate Pro) — Wed, 20 Aug 2008 12:14:00 +0000

Real estate experts advise sellers who think they are headed toward foreclosure to get in touch with their lender. It is in these seller’s best interest to come to some sort of agreement with the lender, be it forbearance or an agreement that in some way lets you get more time to pay.

When you are afraid of losing your property, you may start to see the bank as a predator who wants to come in a rob you of your home. But what you have to remember is that banks are not real estate companies. A bank’s primary concern is money, not property. Financial institutions want to make sure that the money they lend is repaid. In these hard economic times, banks have a higher number of homes because of so many foreclosures. For this reason, a bank may be more willing to work out a deal with you. The bank may not want to have yet another home that it must find a way to sell.

You do not have to approach your lender alone, however. Get the assistance of a qualified real estate professional. If you are in Maryland and need help, send an e-mail John Day.

Trump Helps McMahon Avoid Foreclosure

noreply@blogger.com (Real Estate Pro) — Mon, 18 Aug 2008 11:41:00 +0000

A little while back I reported that Ed McMahon was one of the celebrity faces connected to the foreclosure crisis. And now I am happy to report that Ed McMahon will most likely be able to keep his home.

Donald Trump has stepped in to save the day. But he is not paying for McMahon's home outright. Instead, Trump has agrees to buy McMahon's home and lease it back to him. Although the impending deal has yet to be completely finalized, the fact that the two parties are talking about it in the press means that it is very likely to go through.

At one time, the home's estimated value was $7 million; it was recently listed for a $4.6 million price tag.

Many people out there do not have the celebrity cache to attract the attention of Donald Trump, but that does not mean you have to lose your home. Seek the advice of a qualified real estate professional. If you are facing foreclosure in Anne Arundel County, Calvert County, Charles County, or Prince George's County call John Day at 410-507-2909--he and his team are happy to help.

Changes to the Laws for Reverse Mortgages

noreply@blogger.com (Real Estate Pro) — Fri, 15 Aug 2008 11:51:00 +0000

Homeowners who are at least 62 years old can borrow against the equity in their homes using a reverse mortgage. Instead of having monthly mortgage payment, they would not have to pay the money back unless they sell, move somewhere else or pass away. In order to get a reverse mortgage, one must own the home or have a rather low balance left on a mortgage.

Once it has been arranged, the borrowers can get the loan money in several ways: as a lump sum, in fixed monthly installments or as a line of credit that they can tap into at will.

This year's Housing and Economic Recovery Act has altered the rules for reverse mortgages in an attempt to help seniors who may need such a mortgage to buy long-term health insurance or to increase their incomes. The loan amount has been increased and there is special consideration for those who live in areas where the cost of housing is above average.

You can visit the National Reverse Mortgage Lenders Association website to learn more.

Finance Expert Finds He Needs Real Estate Expert

noreply@blogger.com (Real Estate Pro) — Wed, 13 Aug 2008 12:31:00 +0000

I recently read an article by a personal finance reporter who was loathe to admit that he felt helpless with the recent changes in the housing market. He felt as if he was the one who should have had all the answers, but he didn't. It turns out that his wife, who was not the expert in personal finance knew a thing or two that he did not. But even his wife was unpleasantly surprised at how they much they had to lower their price.

He balked when she wanted to spend money on what he felt were unhelpful plants and other cosmetic touches. As it turns out, those extra touches were something that the family who eventually bought the house really appreciated.

Both the reporter's real estate agent and a friend who worked in real estate advised lowering the price. The reporter and his wife resisted, but they gave in and the house did sell.

Sometimes real estate takes a team approach. The writer says that he real estate agent left no stone unturned. The real estate agent's work, combined with his wife's extra touches (things he thought were unnecessary) were what got the house sold.

Condo Foreclosure

noreply@blogger.com (Real Estate Pro) — Mon, 11 Aug 2008 12:07:00 +0000

When the owner of a condominium can no longer make mortgage payments, that property can go into foreclosure just as any other property can. For condos and other properties tied to an association, one owner's loss can have a big effect on others. This is not to say that a block or neighborhood remains unaffected by foreclosure, far from it. But when a condo unit goes into foreclosure, the rest of the unit owners lose money immediately in the form of condo fees and the ability to collect special assessments.

If you live in a condo and find that a unit owner is headed towards foreclosure, be aware that the association does not automatically get ownership of the foreclosed unit. The condo association still has to come to some kind of agreement with the bank who lent the unit owner the money to purchase the condo. More often than not, the bank will be willing to accept the deed to the property to avoid going through with the foreclosure process. So the condo no longer belongs to the unit owner; the property is now in the hands of the bank until it is sold to another owner.

If you decided to buy a bank-owned condo, you should investigate whether the former owner still owed the condo association in assessments and fees.

An Experienced Realtor Can Help in A Slow Economy

noreply@blogger.com (Real Estate Pro) — Fri, 08 Aug 2008 12:10:00 +0000

Depending on where you live, you may have bought your house during a housing boom. You might have paid more than you wanted to with the hopes of selling it at an even higher price in the future. Or you may have purchased your home before the boom, but you watched its value rise steadily. You held onto your home and for whatever reason did not sell because you knew it would be worth even more in the coming years.

Now that property values are not rising as they were, you find that it is time to sell your home. But you don't think you can get the price you really want. What do you do?

Some real estate experts are telling people to cut their losses. Their advice is to accept that your home will probably sell for less than you'd like. Because of overbuilding and stricter lending practices, home sales have gone down.

All is not lost. There is a good chance that your home will not sell for a price that meets your highest ideals. But your home does not have to sit on the market forever and you don't have to sell it for pennies on the dollar. Seek the advice of an experience real estate agent, like John Day. You'll be able to maximize your profits, even in a slow economy.

Trading Spaces, pt. 2

noreply@blogger.com (Real Estate Pro) — Wed, 06 Aug 2008 12:00:00 +0000

On Monday, we discussed an incentive that builders rarely used in the past, but are employing more and more: the trade-in. It is something like when you really want or need a new car and are willing to hand it over to the dealer for a low price.

Trading in or selling your home to a builder in exchange for a new one is a deal that is sealed at a simultaneous closing." So you sign papers to sell the builder your old home and sign papers to buy a new one from them at the same time.

As with any real estate deal, you should do your homework and work with a competent real estate professional if you want to trade in your home. Be certain that the price being offered as part of the trade is something you can live with. Make sure you know what your home is truly worth on the market and be wary if they offer to take it off of your hands for a price that is extremely low. If the builder wants you to use a certain financial institution, check out the costs of the loan and look for any hidden fees.

Trading Spaces, pt. 1

noreply@blogger.com (Real Estate Pro) — Mon, 04 Aug 2008 11:48:00 +0000

For anyone who is contemplating a new home purchase, the thought to having to carry two mortgages at once is quite daunting. This is why some builders are offering to let home buyers trade-in their former homes. Builders realize that although you may be in a position to buy the home they've recently built, you may be not be able to do so if you cannot sell your current home in this market.

Most often, a builder will agree to buy your home for a specified price once you close on a home they've built or sign a contract to have them build you a new home.

You should know that trade-in incentives for home sales aren't standard practice. But in these uneasy economic times, people are getting very creative.

You should also know that when you agree to let a builder buy your home, the price you'll have to agree to may be less than ideal. At the same time, some buyers are willing to take the guarantee of a (most likely) lower price if they have spent or foresee spending months being unable to sell their home.

Remember That the Customer is Always Right

noreply@blogger.com (Real Estate Pro) — Fri, 01 Aug 2008 12:13:00 +0000

You've heard that saying "the customer is always right." And when you are in a store, you definitely want the merchants to go by this rule. But are you doing the same as you prepare to sell your home?

In your desire to sell, you may forget the people on the other end of the transaction. Some sellers make the changes that they wish they had already made in their homes, assuming that buyers will share this view. But you really cannot be sure about what will entice potential buyers.

Before you make major repairs or do a huge renovation on your home, take the time to find out what people in your area are looking for in a home.

You can:
-ask your real estate agent and other agents you know to talk to you about what buyers tell them they want

-Go to an open house yourself and take note of how the houses look. Pay attention to what you like and what you don't like.

-Drop by some model homes and see what amenities and layouts they feature and seem to really push.

Home Office Deduction

noreply@blogger.com (Real Estate Pro) — Wed, 30 Jul 2008 11:56:00 +0000

April isn't the only time to think about taxes and tax deductions. In fact, it is probably a good idea to look at your tax situation and possible deductions at other times of the year. This way you will not be scrambling right before the tax deadlines loom.

For example, if you work from home, either for yourself or for a company, you may be able to take a home office deduction. More and more people are opting to telecommute these days to save on commuting costs. If you have decided to telecommute, make sure you take full advantage of the situation.

According to the IRS, you can only claim this deduction if you use part of your home as your main place of business or if you meet clients, patients, etc. in your home.

You may be able to deduct of the money you spend for real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.

There are different rules and different forms depending on whether or not you are working for yourself of for someone else.

To learn more go to irs.gov and look at IRS Publication 587. You can also call 1-800-TAX-FORM (1-800-829-3676).

It Doesn't Hurt to Look

noreply@blogger.com (Real Estate Pro) — Mon, 28 Jul 2008 11:42:00 +0000

Last week the National Association of Realtors released a report that stated that the sales of existing homes have fallen nationwide. However, this storm cloud does have a bit of a silver lining: Washington DC and the areas surrounding it have not been hit quite as hard as other parts of the country.

The National Association of Realtors also conducts an online survey and one of the conclusions that came out of this was that a good number of potential homebuyers—about 25%—are sitting out in the real estate market.

Why sit out when this is a great time to buy? The economy is not great, but if you really want to have a home, you should not let that keep you from getting out there and looking at homes.

The best time to buy is when you are ready. Sure, some times are better than others, but conditions will never be perfect. If you feel that you are ready and financially prepared for the responsibilities of home ownership, explore it. It doesn’t hurt to look and you are not obligated to buy.

If you want to look in Anne Arundel County, Calvert County, Charles County, and Prince George's County, call John Day at 410-507-2909.

Why You Need a Real Estate Agent, pt. 2

noreply@blogger.com (Real Estate Pro) — Fri, 25 Jul 2008 11:56:00 +0000

On Wednesday we talked about how it is tempting to try to sell your house without a real estate agent, especially in an uneasy economy. Getting the help of a real estate professional will cost you money. However, the costly mistakes you could make trying to sell a property on your own could cost you even more. Here's why:

Experience, Experience, Experience: You are probably very knowledgeable and yet you have not spent years dealing with real estate matters. A real estate agent can look at your house and quickly assess what will make it more marketable.

Legal Hassles: A home sale is not a simple transaction. There are any number of legal issues that may trip you up of you are not aware of them. This is why it helps to work with an expert.

Screening: If you put up flyers or advertise your home on your own, you are the first point of contact. When you work with a real estate agent, you have someone there to weed out potential buyers who aren't serious.

John Day has more than 30 years of experience and a proven track record. Visit his website to learn more about how he can help you sell your home.

Why You Need a Real Estate Agent, pt. 1

noreply@blogger.com (Real Estate Pro) — Wed, 23 Jul 2008 11:21:00 +0000

In a time when everyone is trying to cut corners, there are some things you should not skimp on and hiring a real estate agent is one of these things.

If you have a DIY (Do-It-Yourself) approach to many other things, you may think that you can go ahead and put your house on the market and take care of the sale on your own. But you really ought to consider hiring a professional.

Selling a home is not a hobby or something to throw a little effort at here or there. It takes work. And while you are out there working, you can have a real estate agent working for you to sell your home. If not, you will have to become a multi-tasking superhero to do your job, take care of your personal obligations AND sell your home.

In this buyer’s market, you need all the expertise you can get. Your negotiating skills make have gotten you a bargain or two, but you will find that negotiating a real estate deal is no easy task. Even though you want to sell, you may still be emotionally attached to your home and this may get in the way as you attempt to broker a deal.

Check back on Friday for more on why you need a real estate agent.

When You're Ready to Leave Your First Home, part 2

noreply@blogger.com (Real Estate Pro) — Mon, 21 Jul 2008 11:18:00 +0000

You may have no control over which comes first. Yes, the market seems tough, but it is entirely possible that your first home may sell before you purchased your next home. Then what? While the thought of not having a home may make you anxious, this is a better position to be in. True, you have no fixed placed to lay your head, but you also do not have two mortgages.

If this happens you can:
-Go to a residential hotel. While they feel temporary, they are designed for extended stay and are better equipped for everyday life than a regular hotel.

-Ask the owners to let you rent your (former) house. Consult with professionals and create a contract that allows you to rent the house and pay expenses for a set period of time (maybe a month). Note that this idea will be much more acceptable to the new owners if you have a contract in place for your next home.

-Stay with a friend/relative. This may mean placing some of your belongings on storage and having to move them twice, but you don't want to sign a lease on an apartment if you intend to buy another home.

When You're Ready to Leave Your First Home, part 1

noreply@blogger.com (Real Estate Pro) — Fri, 18 Jul 2008 12:11:00 +0000

At one point some of you were first-time home buyers, moving from a place you did not own into one you purchased. There were a lot of decisions to make, but you made it.

Now you are thinking it is time for another home. With your first home purchase, you simply left. With your next home purchase there is a new set of decisions to make. Unless you are holding onto your former home, you will have to sell or rent it.

You may be wondering how exactly this will work. If you are not prepared to take on two mortgages at once, you will need to have a plan.

If you need the money to make a down payment on your new home, but the old one hasn't sold yet you can:

-Considering taking money from your 401K. Consult with your personal financial adviser before making this move. Only do this if you have not plans to leave your job.

-Use the equity in your home. This is strategy that has to be put into place before your home is on the market. You cannot tell a lender that you intend to sell the home and then ask them to give you a loan on its equity.

We'll be looking into this issue further next week, so check back for more.

The Save the Dream of Homeownership Event

noreply@blogger.com (Real Estate Pro) — Wed, 16 Jul 2008 11:59:00 +0000

NACA is the Neighborhood Assistance Corporation of America and the group behind the Save the Dream of Homeownership Event. It is a non-profit, HUD certified organization that assists homeowners who are at risk of losing their homes. They work with lenders and loan services to get them to lower interest rates so that at-risk homeowners can stay in their homes. Sometimes they can also negotiate a reduction in mortgage debt as well.

Starting this Saturday, July 19, 2008, you can meet with NACA advisors at a 5 day event that will be held in Washington DC and the Capital Hilton Hotel. There is no charge to meet with someone from NACA and staff will be on hand from 9am to 9pm for each of the 5 days.

NACA started in 1988 and since then has worked to make homeownership possible for many. They are committed to helping cities build strong, stable neighborhoods. NACA is also a strong advocate against predatory lending, a practice that not only harms individuals, but communities as well.

To learn more about NACA and about the Save the Dream of Homeownership Event, visit www.naca.com.

Container Gardens, part 2

noreply@blogger.com (Real Estate Pro) — Mon, 14 Jul 2008 11:44:00 +0000

Last week, I wrote about container gardening. You can use small spaces in and around your home to provide food for you and your family. Even if your thumb isn't green, you can give it a try because it isn't like you'll have to till a lot of soil.

Last week, I wrote about container gardening. You can use small spaces in and around your home to provide food for you and your family. Even if your thumb isn't green, you can give it a try because it isn't like you'll have to till a lot of soil.

As you can imagine, one very important aspect of container gardening is the container itself. Do you just get a regular flower pot? How do you choose?

The space you choose will dictate the size of the container, as will what you want to grow. No matter what kind of container you pick, it is important that it provide for adequate drainage. Try not to select a container with a narrow opening.

Avoid using flimsy plastic posts, as the sun will take its toll on them. Many plastic pots are inexpensive, but not the best choice if you want your container garden to thrive. If you live in an especially hot area, pick containers that are light in color so your plants won't take in too much heat.

You can use: gallon cans, wooden boxes, planter boxes, bushel baskets or ceramic pots.

Container Gardens, part 1

noreply@blogger.com (Real Estate Pro) — Fri, 11 Jul 2008 12:03:00 +0000

With the recent economic downturn, people are looking at creative ways to save money and get what they need. Some people who would not have thought about gardening before are starting to grow food in their own gardens in an effort to cut costs.

Those of you who live in small spaces will not be left out of this trend. You can opt for a container garden. What is a container garden? It is simply a garden that is housed in some kind of container, rather than on a plot of land.

It may come as a surprise, but any vegetable that can grow in a backyard can be grown in a container on a porch or window sill. Still, some vegetables are much better suited to containers. Among these are: eggplant, peppers, tomatoes, beans, lettuce, squash, and radishes.

Although the vegetables that grown in container gardens can grow in regular soil, you are advised to use synthetic soil for your container garden. You want something that will drain well and does not have any seeds for weeds.

Check back on Monday for more tips on container gardening.

Home Selling Basics

noreply@blogger.com (Real Estate Pro) — Wed, 09 Jul 2008 12:32:00 +0000

On Monday, I talked about how a home sale is a business transaction. In light of some recent news stories about people attempting to sell their home and relationships at the same time, it is time to remember some home selling basics. Remember, nothing can beat a well-maintained home that is groomed for sale. Here are some other tips:

Price your home to sell
Making sure that your home is priced competitively is very important. If it is priced very differently from similar homes, buyers will be wary. You want the price to be worthy of the home and its amenities, but also in the range of the other homes in the neighborhood.

Try traditional incentives
Stick with incentives that are a part of the real estate negotiation. These include: paying some of the buyer's closing costs, an allowance for certain repairs, including major appliances in the deal.

Make the most of marketing
Use both traditional and more innovative techniques to market you home. Have an open house and make your home available for viewing. Work with your real estate agent on a personal web page.

Remember that a Home Sale is a Busines Transaction

noreply@blogger.com (Real Estate Pro) — Mon, 07 Jul 2008 11:33:00 +0000

Last month, a woman in Florida was in the news because she decided to put both her house and her heart up for sale as a package deal.

The woman is willing to sell her almost 2000 square foot home along with her hand in marriage. She was having trouble on the dating scene and anticipated trouble with selling her home in the current housing market.

A man in Australia has also made the news because he decided to sell his entire life, including his house, vehicles and introductions to his friends.

A while back, I wrote about some other unusual home selling incentives and it seems that these incentives are getting quirkier and quirkier.Selling a house is a business transaction. Yes, there is an emotional side to it, but it is best to remain professional.

With the expert advice of a good real estate agent, you should be able to sell your home, without offering friendship or romance along with it. If you are having trouble selling your home, feel free to contact John Day at: john.day@longandfoster.com.

Buying a Model Home, part 2

noreply@blogger.com (Real Estate Pro) — Fri, 04 Jul 2008 12:13:00 +0000

Earlier this week, I mentioned that it is possible to buy the model home in a housing complex. If you decide to go this route to get a better deal, make sure you look out for your best interests. At best, a model home has been built with the best of everything. At worst, a model is sloppily built since it is intended for show.

If you buy a model home, you should:
Ask for credits. Since it is used, you’ll want to get as many credits as you can. You may need to request new paint, flooring or carpets because people have been trooping through the model for months.

Get an inspection. Make sure the structure is indeed sound. Be certain that the builders did not cut any corners in constructing this home.

Verify the warranty. Find out what kind of coverage you have before you agree to purchase.

Get it in writing. Like any other home purchase, you'll want to get all agreements in writing. And you want to make sure that everything is included down to the finest details.

Safe Grilling

noreply@blogger.com (Real Estate Pro) — Wed, 02 Jul 2008 12:17:00 +0000

If you are grilling outside of your house this Fourth of July holiday, make sure you are doing so safely. Your yard is an extension of your home and it pays to take precautions before throwing stuff on the grill.

Here are some tips for safe grilling:

-Place your grill on a spot where the ground is even.

-At a minimum, you should set the grill up four feet away from any structures. Of course you'll place the grill away from your house, but you also need to keep it four feet from lawn furniture and swing sets.

-Be careful with oven mitts because you don't want them to catch fire. If you can, get a high-heat silicone mitt and avoid cloth.

-Use utensils designed for grilling.

-Keep a spray bottle filled with water nearby to quickly dampen any flames that shoot up. If a flame shoots up, aim the spray under the food.

-Make sure people playing games that involve running/jumping steer clear of the grill.

-Start the bug patrol early. Spray for insects or put out citronella candles, bug zappers, etc. the day before your outside event.