“What it takes to buy your dream home”

Posted on May 27, 2013 by

The Dream

It all starts at the minute you have a dream to own a home.
No doubt, home ownership is not for everyone. There may be cases or moments in your life when renting could be a better option for any one of various reasons.
But once you have the seed in your mind, it all starts to sprout.

This is time to make a reality check.

So the next step is to find out what your financial and economic situation is and how soon you can make that dream a reality.

Many times it helps to consult with a financial adviser. This expert can help you figure out not only how and when you can buy a home but also he/she can give you great advice about how you can do it in a financially healthy way for you and your family.

The Goal

How much house can I buy?

If in so far it all indicates this is a doable dream, it is the time to hire a real estate agent.

Your real estate professional will guide you through the process all the way looking for your best interest with loyalty.
The first thing your real estate agent will suggest you to do is to get a pre-approval.

It is okay, For most people it is necessary to obtain a loan for the bulk of the money to buy a house. This is a mortgage loan because the house will be the asset to secure the loan.  That is, if for any reason you are unable to repay the loan, the lender will take the house to secure payment.

But we know now that this is not your case. Therefore, you will be getting a mortgage loan from a lender. And as always, it is good idea to shop around for the best loan terms, etc.

But at this initial time it is only necessary that you get a preapproval from any lender.

A preapproval is just a statement (not a commitment) that this lender will lend you money to you to buy a house based on an analysis of your current financial situation. That is, so far the lender has been able to see that yes in fact you would be able to repay the loan.

The Strategy

Now you are ready to start your quest to search and find the home of your dreams.

At this point you will confer again with your real estate agent on regards to what types of homes and what areas of town you will want to live and that you can afford.

You will plan your house hunting efforts in earnest. Chances are you would have to go through several properties before spotting the house that meets most of your needs and wants. It would have to be a compromise that satisfies you best. So you will need to put time aside for house hunting with your real estate agent.

Contracts

As soon as you see a house that meets the majority of your requirements you will make an offer to the seller to purchase it.

Based on the strategy that you and your agent have planned you will decide the price you are willing to pay for this property and consider what other conditions to include with the offer.

As you can see the offer is a statement in which you notify the seller your intentions to buy his /her house, the price you will pay and some protections  for yourself (or contingencies) that would allow you to make the offer contract void without any penalties for you if need be.

The seller’s reply to your offer it may be an acceptance, a rejection or a counter-offer. But once both sides agree on the terms and sign the offer it becomes a contract.
By the way, the two most common contingencies included in an offer are the home-inspection and the mortgage protection.  You will have the option to bring a professional home inspector to determine the condition of the property and the mortgage protection releases you of the contract in case the lender decides not to approve the loan for any reason.

Since the offer is a contract, the seller is committed to sell you the property and you in turn demonstrate your commitment by including some dollar amount, called earnest money, with the offer that is part of the payment you will make in buying the house.
Also in the offer it is stated a date and time when all contingencies would have to be fulfilled and when a purchase and sales agreement (P&S) must be signed. Your attorney will preparer the P&S agreement and confer with the seller’s attorney to get it approve and signed by both parties. Your attorney, also looking after your wellbeing, will conduct a title search to confirm who else has a stake on the property (the seller may have had his/hers own mortgage from when he/she bought the property), etc. You will also include some earnest money in the P&S to show your seriousness to this contract.

Last Step

Once every single condition stated in the P&S agreement is fulfilled, a date is determined to perform the closing and finish the execution of this contract. In fact the closing date is actually already stated in the P&S document itself although there could be extensions for any lagging issue not being ready so far.
The closing is the time when the property title is transferred to you and the act registered at the Registry of Deeds for the county that the property lies in.

It is also the time when monies are given to whoever should get it based on a document called HUD-1 that your attorney will also prepare beforehand (usually the day before closing). In this document are listed dollar amounts and charges and to who is paying what and to who is receiving how much, etc.
All this processes are going on under the watchful eyes of your real estate agent who at every step makes sure all t’s are crossed and every i’ie is dotted. He/she coordinates that everybody does its part on time so you can get up to this moment with no problems.
This is also the moment when you receive the keys to your dream home. You own now your own home. Congratulations!

End.

Posted in Buying a Home, First Impressions, Home Improvement, Homes for Sale, Listing your house, Real Estate, Selling a house, Why to sell a home now | Tagged , , , , , , , , , , , , , | 1 Comment

Tips on Hiring a Contractor (home improvement, etc.)

Posted on May 20, 2013 by

While looking for relevant information for my clients and friends I came across this note published last Sunday in the Boston Globe. It is about the best way to hire a contractor to perform improvements and repairs to your home. Prudence dictates some of these tips but it is better to have this reference handy for when time comes to start your home project. It was written by Mitch Lipka.

Mitch Lipka has been helping consumers for the past two decades. He also writes the Consumer Alert blog on Boston.com. Mitch can be reached at ConsumerNews@aol.com. Follow him on Twitter @mitchlipka.

Take steps to protect yourself when hiring a contractor

“Spring has sprung and homeowners across the state are gearing up for home improvement projects. So, it’s worth more than a gentle reminder that when those projects involve hiring a home improvement contractor, it’s important to follow guidelines to protect yourself.

Massachusetts has a program that can help in situations when a consumer is left in the lurch. But you’ve got to play by the rules first. And playing by those rules can save you by ensuring that you’re dealing with a registered contractor with insurance.

It’s easy to check. Their registration number should appear on their advertising materials, contracts, and permits.

To verify registration— and see if any cases have been brought against them— the state has a searchable contractor registration database that can be found on the website of the Office of Consumer Affairs and Business Regulation (www.mass.gov/ocabr).

Using a registered contractor gives you the ability to turn to the state if you run into a problem.

And, in the worst case, allows you to apply for compensation from the state Guaranty Fund, which can provide up to $10,000 to cover certain uncollectible losses.

Before choosing a contractor, you will want to have three bidders provide you with detailed written estimates. Consumer Affairs recommends providing each of the contractors, in advance of getting the estimates, with a detailed description of the work to be done.

Ask them to provide a list of references and call them. Compare the differences between the bids, noting types of materials they propose using and other details that could account for price variations.

Then choose one. Before you sign the contract, Consumer Affairs recommends that it include the contractor’s name and registration number, the total price and payment schedule, a detailed list of the materials and specifications, the start and end dates, how changes will be handled, a copy of the contractor’s insurance, and a warning that if you get your own building permits, you’ll be disqualified from collecting from the Guaranty Fund.

One more thing: State law prohibits contractors (with limited exception) from charging more than one-third of the job’s price before work begins.

Using an unlicensed contractor means tossing away your safety net.”

19 May 2013 – The Boston Globe

For next week (5/27/13) be expecting a new article on “What it takes to buy your dream home”.

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Process of Buying a Home Explained: 03/28/2013

Posted on April 1, 2013 by

Dear Friend,

I’m always looking for ways to help my clients and very often I try to answer questions posted in Trulia.com advice page
http://www.trulia.com/voices/qa/

But last week I came across this answer from one of my real estate agent colleagues that got a mark for best answer to that question.

You can go the original posting to view it and many more too (
http://rem.ax/ZwPnAB
 ) but I still quote it here below because it deserves to be viewed.

Greer, Agent, Newton, MA

All below are all great advice, but didn’t actually answer your question did it? Just pointed you at ways to get at the answer. That is because the exact answer can vary depending on a number of situations.

That said … a general ballpark would be:

You’d need to put earnest money down at the time of offer … that could range from $500-$5000 depending on your negotiation strategy. ( Legally, it can be as little as $1 but that isn’t commonly accepted in our market.)

In Massachusetts, we have a 2 phase offer process. After the initial offer is negotiated and accepted, there is a Purchase & Sale process. That could be as simple or complicated as you want to make it and would take anywhere from a day to 10 days to get through. Upon signing the Purchase and Sale Agreement (P&S) then the expectation is that you will have put around 5-6% deposit into Escrow counting the money you already put as earnest money. (This amount can also vary).

Depending who you use as your buyer/closing attorney … you’d probably be out another $2000 or so on closing fees (title search, processing paperwork, insurance binder) Depending on the complexity of the deal and the title issues … you could close as quickly as 2-3 weeks upon an agreed upon deal at which point you’d need to pay the balance of the purchase price as well as any additional closing costs.

As a cash buyer, accredited proof of funds would be expected at the time of offer.

I hope that gives you a better idea of what you’d be up against. Of course, working with an experienced relocation agent, like myself and the other agents here who have responded to your question, could only expedite and facilitate a smooth transaction(s) for you. I also know resources for property management, repairs, insurance … etc that may be helpful to you if you do not plan to remain local after your purchase.

Good luck!

Web Reference:
http://www.HomesWIthGreer.com
“

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Seller’s Disclosure: Not a good idea, or . . . Yes it is better

Posted on May 4, 2012 by

Okay, you are ready to sell your house. Right? What’s next?

In a previous blog “Un-Decorate Now . . . We are ready to sell”, among other things I mentioned it is a good idea to have ready a seller’s disclosure. However some people have argued that since in Massachusetts it is not required then it is not a good idea.

-         Have not you heard about all those horrible lawsuits brought in by buyers after the transaction is closed? This is just calling for it.</quote

What are they talking about?

After examining some of those horror stories one thing surfaced.  There is a 93A law to protect consumers against misrepresentations, fraud, etc. However, this law is intended to bind every real estate professional not the home owner selling their home.  Does it mean you have to get rid of your agent immediately? NO, please do not. It is just to make sure agents don’t tell buyers things like “this is the most beautiful house in the block” and such. In the end your agent must provide to you a valuable service and useful help on the process of selling your property.

So what is this disclosure about?

Well, it is just a list of items that are considered relevant to any home and it is called the “Seller’s Real Estate Information Statement”.  There are preprinted forms just to check off things like if the house has central A/C, pool, etc., and if they are functional.

Let’s remember that during the selling process you, the seller, allow the buyer to inspect your property, the famous home-inspection. So many of these items (if not all) will be included on the inspection report made by the buyer.

So the question again is “why should I do it?”

And the answer is twofold; it will help in the selling process to go faster and smoother, but more important still it will help you to review the condition of your house. The exercise in completing such a statement will give you the opportunity to review what things you are willing to leave behind in that house.

So at this time we start looking at the chandelier you always loved for example and decide if it is going to stay on the home. Same goes for paintings and other artwork. And what about the flat panel TV’s on the walls? Well again you decide if they stay or no.

An important note here, you cannot assume that because you are leaving all those treasures your home’s appraisal will increase its value. As a matter of fact, appraisers (and lenders) do not assign value or consider any of those items in their valuation process because in the end they can be removed or stop working, etc. But they have (or had) some value to you. So by preparing the information statement these things come up into your attention.

Anything attached to the house becomes part of the real estate you are selling!

While we are reviewing what things stay or what you take with you before selling let’s keep in mind that by definition (legal that is) any fixture or item attached to the house becomes part the real estate that is your house.  That is why almost always the range/stove remains in the home, etc.  Even the trees and shrubs in the yard fit this and that beautiful rhododendron that flowers every summer must stay unless you remove it before putting the house for sale. (Oh yes, the little lion sculpture at the front steps too).

Okay, let’s review, if you have a real estate information statement, you could indicate in it that (regrettably for this buyer) the little lion sculpture is not included in the sale. And so, and so for. Get the idea.  That’s why it is helpful and important to have such a disclosure. It also serves to indicate what you are not including in the sale.

So remember, if you did not remove the chandelier or made a clear disclosure that it was not included in the sale, do not remove it just before giving possession to the new owner. By Then It Is Too Late.

Good luck selling your house.

Posted in First Impressions, Homes for Sale, Listing your house, Real Estate, Selling a house, Why to sell a home now | Tagged , , , , | Leave a comment

Happy Earth Day!

Posted on April 22, 2012 by

Today is Earth day and Realtors most that anyone else should celebrate it. Let me remind you that “realty” or “real estate” refers to anything attached to the land, so our own homes are part of this earth (Dahh?).

Currently the biggest concern is how drastically our actions have altered this world. In a relatively short time (planetary time that is) humanity, like an army of ants, has caused what we now call Global Warming.

But a bigger question still is how we can correct, preserver, conserve, avoid a disaster to our habitat. It is really a great toll enterprise. And it will definitely take the entire human beings in this world to act in harmony towards a common goal: Save the Earth.

Until that day comes, we all should think globally and act locally to improve our Earth.

For example, today walk to the grocery store instead of driving – before starts raining.

Happy Earth Day!

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Un-Decorate Now . . . We are ready to sell

Posted on April 8, 2012 by

Congratulations, you have just made the great decision to put your house on the market. It was not easy but now it is the time to start thinking on how to get the most out of its sale.
The first thing to do is to start thinking that this cozy place where you have been living so far is not your home anymore. It is the house you are selling. As such, you want to rid off any personal and emotional attachments in this place.

Similarly, it goes for all the family pictures and any other personal decorations that have made this place a reflection of you. All those mementos are of private nature so need not to be shown to strangers looking to buy the house. Find a safe place to store them while you go through the sale. But they have to go out.

Same thing goes for the red walls, dark ceilings or any other sophisticated decoration you so hard worked on from The Decorista or from This Old House among others.

By-the-way – In the May 2012 issue of This Old House magazine you can find a good article about how to checkup your home. In Massachusetts it is not mandatory to do a house condition declaration (only material defects must be disclosed) but it is a good idea to have one ready. It helps for a smoother transfer to include a real estate information statement document.

Next, and perhaps more important, you have to clear any clutter in the place. Try to keep only the most important pieces of furniture that may show someone lives here but not more. You want to show how much potential this place has.

So now we are ready to present our product to the buying public. And as you know, first impressions are lasting impressions so we want to present your house at its bests. That is called “staging” in RE jargon. Experts recommend these main points for staging both re-sale homes and for new homes:

Staging for the residential re-sale
- Take down draperies to highlight windows and play up the availability of natural light
- Strip wallpaper and paint the walls a neutral color
- Swap out furniture to make the space appear larger
- Accessorize. For instance, set the dining room table and put out bowls of fruit in the kitchen. When coupled with de-cluttering these small touches give warmth without being overly distracting.
Staging for model homes
(The rules for success are almost completely opposite to staging a re-sale)
- Place photos of families throughout to convey a lived-in feel
- Use themed items to connect the amenities of the surroundings to the property
- Assist the builder in selecting custom wallpaper or specific paint colors to inspire byers and help them visualize potential decorating pallets
- Advise the builder to install custom draperies that accent the carefully selected furniture placed in the home

(From Bay State Realtor Magazine, March/April 2012)

Then, in the end, we expect to wait not too long for offers to start to come in.
Good luck and profitable returns to you.
Jaime Fernandez-de-Castro
April 8, 2012

Posted in First Impressions, Homes for Sale, Listing your house, Real Estate, Selling a house, Why to sell a home now | Tagged , , , , , , , , , , , , | 2 Comments

Why should I sell my house now?

Posted on March 24, 2012 by

This is a very good question, no doubt about it. And in fact, the chances to have a good experience selling your house now are much greater than ever before. Even after all the bad news in the press.

Well, the problem with the Press is that they have to give a broader view to be relevant to everybody. So they lump together all areas in the country, but real estate is always local.

Location, location, location

Yes, real estate is always local and in the greater Boston area the activity in the housing market has not let up. Moreover, in some areas the market is hot and there has been home appreciation as we speak as well.

That is the first indicator that very likely you can sell well your house now. It is known that when a home is priced right buyers will snatch it from you.

Mortgage Interest Rates

Another factor is that mortgage interest rates are at record low. And lenders are trying to qualify more people without getting into the lending frenzy of prior the burst of the real estate market bubble.  As far as the FED is concerned they have promised to keep rates low (interbank lending, that is) but the mortgage rates can still go up at any time.  People looking to refinance or for a mortgage to buy a home are watching out. And similarly as in the stock market, no one can time it. But lately, I have not seen many purchase offers going down due to a buyer not securing the mortgage. So your house will sell.

The Economy

The economic indicators signal that the economy is moving slowly, yes the recovery is on its way.  Therefore, anybody thinking not to sell their property because it may go up in price will have to wait a much longer time. So might as well, sell it now.

No one knows exactly how many more foreclosures are expected, but the reality is that banks are not willing to lose in this one. All the homes they take are being put back on the market at fair market value prices. But if there are more homes to come into the market you do not want to compete with those properties, so it is better to come out first and make the buck.

Housing Spring Market

It is also in the news that the spring housing market started hot. Oh yes, it has started and this must be your best time to put your home in the market. Do not wait.

Sellers should not forget that once you sell your property you will also be able to take advantage of whatever the state the real estate market may be, and get a better deal when buying your next home. After all that is why you are selling in the first place. Right? To buy a bigger and better home or to downsize to a more cozy empty-nester home.

To help sell your house best a detail property analysis must be done and your Realtor can do that for you very well.

This The End

But in the end, the answer to why should I sell my house now is that we do the things that we do when we have to do it. “A man got-o-do what a man got-o-do”.

Make your decision now and do not look back, you will be glad you did it now.

Cheers,

Jaime Fernandez-de-Castro


http://www.jaimefdec.remax-newengland.com/

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