Easy Agent Blogs

One of the choices you may be faced with when you decide to buy a home is whether to buy a newly-built home in a new home community or an existing house. Sure, you can remodel an older home to suit your needs, but do you have the time and the money to do so? A new home, on the other hand, can be built to your specifications.

Building a home isn’t without its drawbacks, however. There are many decisions to be made along the way and if you aren’t careful you may end up spending more than you’d anticipated.

There is something to be said for both choices, so let’s take a look at some things to consider while making up your mind.

What you’ll spend

Although most homebuyers claim they want a brand new home, according to a Harris Research poll, few said they were willing to pay a 20 percent premium for it.

What these respondents failed to understand is that a new home may cost them less over the long haul.

Most new construction features energy efficient appliances, windows and other items. These help save money on heating and cooling bills. Then, because the home is new, maintenance won’t be as expensive as it is with an older home, at least for the first few years.

Builders often offer incentives if the buyer uses the in-house lender. If the builder offers a discount on points for the loan, the savings over the life of the loan may just be enough to offset that new construction premium.

Your lifestyle

If you need space for hobbies or if you work at home you may appreciate the perks of being able to choose how your home is laid out while it’s being built. If, on the other hand, you enjoy the charm of tree-lined streets and mature landscaping, an older home may fit the bill.

When deciding whether to buy a newly-constructed home or an existing home, it all boils down to your lifestyle. Existing homes are typically in closer proximity to city conveniences so if you enjoy walking to your favorite eatery you may want to consider an older home closer to downtown.

If the thought of an after-work dip in the community pool gets your pulse pounding, a new-home community may be your answer.

Whichever you decide, we’re happy to show you homes that fit the bill.

The real estate industry loves to harp on “location;” so much so that we repeat it three times to let you know how important it is.

Location, location, location not only determines a home’s value but the homeowner’s enjoyment of the home as well.

For instance, if you can’t tolerate noise, don’t buy a home near an airport or railroad tracks. If traffic drives you nuts, avoid looking at homes on busy streets.

We know how easy it is to focus on the homes you view and ignore the location. So we’ve come up with three things for you to consider before you sign on the dotted line of that purchase agreement.

1. “There are no homes on either side of this one!”

Yes, open space nearby is an attractive enticement, but beware. If the land isn’t a government set-aside (meaning that it’s privately owned), you’ll need to do some investigating.

A few years ago, the residents of a peaceful, 25-year-old Minneapolis suburb were shocked to find out that the open space nearby was zoned for commercial development.

They learned about it while reading news reports that the city approved construction of a 24-hour superstore directly across the street from the subdivision’s entrance.

Imagine living there after the store’s completion—the traffic, the huge trucks making deliveries in the middle of the night and glaring parking lot lights pouring through their windows.

The lesson here? Check the zoning of all vacant land in the vicinity of the home you have your eye on.

2. How’s the neighborhood?

If that adorable house you’ve fallen in love with is the only adorable house in the neighborhood, you may want to think twice about it.

The condition of surrounding homes has an impact on the value of all of them. Nearby homes with peeling paint or trashy yards drag down the value of those nearby.

Then there are the bigger impacts on nearby home values. These include homes near:

• Foreclosed homes
• Power plants
• Funeral homes
• City dump
• Noise pollution
• Sex offenders
• Poor-performing schools

When you tour a home that you’re interested in, drive through the neighborhood at different times of the day, weekdays and weekends.

Then, drive around the area surrounding the neighborhood to check for anything that may impact the home’s value now and down the road when you sell. This includes railroad tracks, airport noise, dumps, etc.

3. Crime rates

Especially if you’re a single woman or a family with children, checking the area’s crime rates is critical. Even the cutest neighborhoods could be in high-crime areas.

You can find crime statistics online at various websites. Neighborhood Scout offers reports for a fee but many police departments offer them free, online.

The United States Department of Justice offers, at no charge, a way to search for sexual predators on its National Sex Offender Public Website.

Knowledge is power, especially when shopping for a home. Ensuring that the location of a new home fits your needs and desires is part of your due diligence. Neglect it, and you may be sorry.

It’s hot out there, and we don’t just mean the weather. The real estate market is one of the fastest moving in the country’s history and, although there are signs it may be slowing, we aren’t holding our breath.

Sellers are large and in charge and know it. They have the luxury to be uncompromising in what they want for the homes, both in price and terms.

This, in turn, helps fuel bidding wars on homes in good condition and located in decent areas.

Getting swept away in a multiple offer situation is common, but be on guard. It’s ok to compromise on the lesser important aspects of the purchase, but carefully consider any decision to waive the home inspection.

What a Home Inspection Won’t Do

Just as a professional home appraisal won’t let you know about the problems with a home’s systems, a professional home inspection can’t determine a home’s market value.

Not directly. It may impact the value if something major comes to light, but it isn’t something a lender requires before lending money for a home.

Because a home inspection is visual, it won’t give a potential buyer any information of anything that may be hidden behind the walls or beneath floors. It won’t tell a homebuyer if there are dangerous levels of toxins in the air, such as radon.

The inspector will look at the home’s roof, structure and major systems, such as electrical, heating and cooling, ventilation and plumbing. Even among these items, if there is a defective part or component that can’t be seen with the naked eye, it won’t end up in the report.

The home inspection is also not a guarantee that the home will be in the same condition when you take possession as it was when the inspection was performed.  Anything can happen between those two periods.

What a Home Inspection Will Do

Most of all, a home inspection provides the homebuyer with at least some peace of mind.

Inspectors who are worth hiring are those who have extensive experience and know the signs of hidden problems. They don’t hesitate to recommend additional inspections by a specialist.

For instance, if she notices evidence of wood destroying pests, such as termites, she may recommend that you have the home looked at by a pest inspector.

Should you Skip the Home Inspection?

In a multiple offer situation, with price and all other terms being equal, the offer from a buyer who waives the home inspection is most likely going to be the one the seller chooses.

If you have a hefty home maintenance or emergency fund, it’s worth considering waiving the inspection contingency. If not, doing so is a gamble.

Buying a home without having it checked out by a qualified inspector is the same as buying a home as-is. Understand that you may be buying someone else’s problems.

This isn’t the same as buying a used car as-is because the potential problems you inherit with a home can cost into the tens of thousands of dollars.

While it’s true that a home inspector can’t possibly tell you about all of the problems a home has, or is about to have, the peace of mind that you’ll get with at least knowing that the home’s major systems are in working condition is something to carefully consider before giving it up.

 

 

Let’s face it, looking at homes for sale is a lot more fun that sitting down with a lender to find out how much you can spend on a home. Unfortunately, the latter is the very first step you should take and, sadly, not doing so is the biggest mortgage mistake homebuyers make.

Secondary to that is the assumption that once someone is approved for a mortgage, nothing else can go wrong.

Loan preapproval isn’t a loan guarantee. The preapproval is conditional on a number of factors and it can be revoked at any time during the process – including just before closing.

Do yourself a favor and avoid some of the more common mistakes homebuyers make when it comes to getting a loan for a home.

Mistake #1: Not checking their credit reports

Did you know that nearly 34% of Americans’ credit reports contain errors? According to the experts at consumerreports.org, these errors often result in a lower credit score and the denial of credit.

Mortgage experts recommend that homebuyers check their credit reports before visiting a lender for loan preapproval. Find a list of the most common errors on credit reports at consumerfinance.gov.

Get your free copy of your credit reports (once a year) at AnnualCreditReport.com. This is the only source that is authorized and recommended by the U.S. government to provide free credit reports with no strings attached.

Dispute any issues on your report before applying for a mortgage.

Mistake #2: Not being honest on the mortgage application

Prior to the Great Recession, lenders were busily providing what have come to be known as “liar loans.” These were mortgage loans to people that couldn’t afford them and were obtained by means of a “no document” process, meaning the applicant didn’t have to prove his or her income or verify assets.

Those days are over and obtaining credit is nowhere near as easy as it once was. Although you may be tempted to stretch the truth on your application to ensure you get the loan, don’t give in to the temptation.

More than half of the mortgage fraud cases that the FBI deals with are those with lies on the mortgage application, according to a FBI special agent at fbi.gov.

There is no such thing as a “little white lie” on a mortgage application. Mortgage fraud penalties, by the way, can be … “… as high as 30 years in prison and a $1 million fine,” according to Kirk Haverkamp at credit.com.

Lenders verify everything on the application.

 Mistake #3: Taking a new job before the close of escrow

One of the first things the lender will look at is your employment history, looking for a minimum of two years with your employer or in your current line of work.

While switching employers during the loan application process may not derail the loan, it will most likely delay the process while the new employment and salary are verified.

Mistake #4: Making major purchases on credit during the escrow period

When you finally get an offer accepted on a home, it’s normal to think about shopping for furnishings and appliances.

Don’t do it.

Lenders typically pull a borrower’s credit history one last time just before closing to ensure that the financial picture hasn’t changed.

The new debt will raise your debt-to-income ratio and you may no longer qualify for the loan.

Put the credit cards away and save the shopping for after the loan closes.

The mortgage process isn’t nearly as fun as house hunting, but it’s the most important step in the process.

Don’t make any major financial or life changes between applying for the loan and closing escrow and you should have no problems.

 

If you’re thinking that finding the perfect real estate to help you sell your home is akin to finding a white cat in a snowstorm, you’re not alone. In fact, ask Google “how to find a listing agent” and you’ll get 189,000 answers.

The task isn’t quite as challenging as it seems when you understand that the listing agent’s primary job is to market your home. So, yes, you want to find an agent you feel comfortable with and one with experience listing homes.

Beyond that, there are three important qualities to look for as you interview agents (and please interview more than one) for the job of selling your home.

Communication is so important

One thing I hear most often from my clients is that their last agent was unresponsive. I understand that selling your home is stressful and that you’ll have questions along the way.

It’s a pity that not all agents feel the same, so ensure that the one you choose will respond to your calls in a timely manner and keep you updated on the progress of the sale.

You, on the other hand, should communicate to the agent you choose exactly how often you expect to hear from him or hear and through which medium (text, phone, email, etc.).

Pricing your home to sell takes experience

Yes, determining an accurate market value for a home and suggesting a strategic listing price is very much a part of an agent’s marketing plan. Homes priced right sell faster and the quicker your home sells, the more money you’ll get for it.

Despite the booming sellers’ market that we find ourselves in, beware of the agent who suggests a price considerably higher than others you interview.

This is an old, dishonest trick known as “buying the listing.” Thankfully, not many agents attempt this but those who do will price your home high at the outset, just to get the listing, and then continually ask you to drop the price. All while your home sits languishing on the market.

The bottom line: Marketing

Homeowners hire a real estate agent to not only list their home but market it as well. The listing aspect is merely sticking a sign in the yard and information in the Multiple Listing Service database.

Marketing it is how he or she will get the word out about your home to other agents and unrepresented homebuyers.

Ask the agent to explain his or her approach to marketing homes and exactly how your home will be marketed.

And, since most homebuyers start their search online, clear, compelling photographs act as bait to get them off the couch and into your home. Take a good look at the photos from each agent’s previous listings.

Yes, homes are selling quickly right now. If you’re thinking of selling, don’t hire the desperate agent, hire the one with the skills it takes to get the most money in your pocket.

Hiring the right listing agent is critical to the successful sale of your home. Take your time and don’t rush the process.