To maximize your home buying experience this fall/winter there are a couple things you should know. The first and most important thing is to become familiar with the market. Your real estate agent should be able to guide you through this, and explain what you may already know in more detail.
Things you should be aware of:
market conditions
shortage of homes?
surplus of homes?
All of this is crucial in deciding the offer you submit.
Be aware that your selection may be limited. Although there are less homes on the market, that doesn't necessarily mean they are of less quality or any less desired. If the house has been lagging on the market for quite some time, you may have a great chance of acquiring it at an lower price than a peak season sale. It is more likely you will be able to negotiate a far better price, than if there were more competition. We all know what competition does...it drives the price UP.
For more tips on buying homes please visit www.GrandTraverseRealtor.com
Hope you have found this information helpful! If you have any further questions please do not hesitate to contact me.
Nikole
nikole@realestateone.com
231.620.0201
Friday, November 7, 2014
Wednesday, June 4, 2014
Closing Cost Relief
Has closing cost money put your real estate dreams at bay? If so, you should check out the MSHDA program, which could be incredibly helpful. The program is offering up to $7,500.00 for closing cost money that you may not have. There are some eligibility requirements (of course) but it looks like a very promising program that could help you get into a home sooner than later! Check out https://www.michigan.gov/mshda/0,1607,7-141-45866_45870-175332--,00.html for details. I have a client using this program right now, whom otherwise would be waiting up to a year to come up with the required closing costs.
Friday, May 23, 2014
Are there ANY deals left out there!
Some of you who are actively (or passively) exploring homes to buy are probably wondering if there are any deals left out there. It was only a short year (or 2) ago that they were a dime a dozen, flooding the market, and allowing you the opportunity to ponder the purchase. Times have certainly changed since then. There seems to be more of a buyer frenzy now than ever before. If you see a house you are interested in, it is important that you schedule a showing asap. Chances are there are plenty of other people thinking exactly the same. While you are in there take pictures. That is a quick way to refer back to the things you forgot about the home (like, was there a closet there or not?). If its the winner, be prepared to write an offer! Get in there before the rest of the competition. Home values are going up, and are predicted to keep rising, so the sooner the better! There are still some pretty good deals out there. In most cases, some TLC is going to be involved, but that is a great way to add instant equity to a home!
Have a GREAT day :)
Have a GREAT day :)
Wednesday, April 9, 2014
Multiple Offers and how to Handle Them
With the lack of AFFORDABLE inventory and the high volume of qualified buyers, it is so important to be fully prepared when starting your home search. Below are tips to help keep you on top of every opportunity that presents itself and how to handle a multiple offer situation (which is unavoidable in our current market).
1. Assemble a strong financial package. Get a solid pre-approval letter from preferably a local lender. If possible, opt for a conventional loan.
2. Present an irresistible offer. This does not mean you need to offer more than you feel comfortable with. I actually believe you need to come up with a number(purchase price) in your head, and not go over it. This will prevent buyer remorse and feeling you overpaid for a property because you were in a competition. This simply means to keep your offer as "clean" as possible. Go for a realistic, but timely close date, and don't ask the seller for everything under the sun.
3. Have your agent educate you on the housing market in that particular part of town, and give you the history on that particular home. The more knowledge you have on the home, the better prepared you can be for offer time.
Always remember that your Realtor is there to help guide you through the process, making suggestions along the way. We are experienced in these areas and can give your offer the competitive edge it will need through this buying season!
1. Assemble a strong financial package. Get a solid pre-approval letter from preferably a local lender. If possible, opt for a conventional loan.
2. Present an irresistible offer. This does not mean you need to offer more than you feel comfortable with. I actually believe you need to come up with a number(purchase price) in your head, and not go over it. This will prevent buyer remorse and feeling you overpaid for a property because you were in a competition. This simply means to keep your offer as "clean" as possible. Go for a realistic, but timely close date, and don't ask the seller for everything under the sun.
3. Have your agent educate you on the housing market in that particular part of town, and give you the history on that particular home. The more knowledge you have on the home, the better prepared you can be for offer time.
Always remember that your Realtor is there to help guide you through the process, making suggestions along the way. We are experienced in these areas and can give your offer the competitive edge it will need through this buying season!
Wednesday, March 26, 2014
Home Buying "needs" and "wants"
Before you start your search for the perfect home, it is important that you make a realistic "shopping list" in attempt to narrow your choices of properties. Hunting for a home can be a time consuming process, especially if you have not determined in advance the parameters of your search. Do not make the mistake of misinterpreting your WANT as a NEED.
Take some time to evaluate just what you NEED and what you WANT first.
Take some time to evaluate just what you NEED and what you WANT first.
Example of Needs
- Enough square footage for comfortable living for you and your family
- Enough bedrooms to accommodate your family
- Adequate number of bathrooms
- Garage and/or basement for storage needs
- Lot size to accommodate children/pets
- Proximity to a specific school
- Main floor living versus multi-level living
Example of Wants
- Carpeting color, paint color, exterior color etc.
- Wood flooring, ceramic tile flooring
- Bay windows
- Built-in entertainment center
- Finished basement
- Skylights
- A view
- Specific brands of appliances
Saturday, March 22, 2014
The Home Buying Process (Simplified)
Many first time home buyers have no idea what to do and/or when to do it. Below is a simplified list (in order) of the process and what to do when...
* Arrange financing-
Buyer can explore options for financing, and obtain a pre-approval letter.
* Select a real estate agent-
Using a real estate agent will significantly reduce the buyer's research time, and will almost always result in the buyer having more homes to select from. The reason for this is simple. During any given week, it is estimated that only about 1% of available homes are advertised. They will also help the buyer get the best deal possible for any given home on the market.
* Select homes to view-
Select the homes that you are interested in and would like to see. Your Realtor can arrange for the homes to be viewed.
* View homes-
This would include the area and land around the home, and the inside as well. Make notes on what you like and dislike, then compare after all have been viewed.
* Make offer-
A purchase agreement is setting forth all of the terms and conditions desired by the buyer. They are prepared , and then signed. Michigan law requires that all real estate purchase agreements be in writing, as verbal agreements are not enforceable.
* Get sellers acceptance of offer
* Arrange for financing, title work, inspections, and other details-
If a buyer is obtaining a new mortgage, an appraisal will be required and is usually paid for by the buyer. The seller is usually required (at sellers expense) to provide a "Title Insurance Policy" to guarantee a marketable title.
* Closing of sale
*Possession-
Yay! You get to move in to your new home!!
* Arrange financing-
Buyer can explore options for financing, and obtain a pre-approval letter.
* Select a real estate agent-
Using a real estate agent will significantly reduce the buyer's research time, and will almost always result in the buyer having more homes to select from. The reason for this is simple. During any given week, it is estimated that only about 1% of available homes are advertised. They will also help the buyer get the best deal possible for any given home on the market.
* Select homes to view-
Select the homes that you are interested in and would like to see. Your Realtor can arrange for the homes to be viewed.
* View homes-
This would include the area and land around the home, and the inside as well. Make notes on what you like and dislike, then compare after all have been viewed.
* Make offer-
A purchase agreement is setting forth all of the terms and conditions desired by the buyer. They are prepared , and then signed. Michigan law requires that all real estate purchase agreements be in writing, as verbal agreements are not enforceable.
* Get sellers acceptance of offer
* Arrange for financing, title work, inspections, and other details-
If a buyer is obtaining a new mortgage, an appraisal will be required and is usually paid for by the buyer. The seller is usually required (at sellers expense) to provide a "Title Insurance Policy" to guarantee a marketable title.
* Closing of sale
*Possession-
Yay! You get to move in to your new home!!
Wednesday, March 19, 2014
TOP 10 MISTAKES TO AVOID WHEN BUYING A HOME
1. Looking for a house without getting pre-approved
2. Not understanding the role and duties of the Realtor-
Understanding who represents whom in a purchase transaction is critical. Buyers and sellers have opposing interests. A sellers's agent works only for the best interest of the seller. A buyer's agent works solely for the buyer. A dual agent works for both the seller and the buyer during a transaction.
3. Making verbal agreements-
Buying a home is a complex process, and only those items that are agreed to in writing are part of the agreement. If something is not in writing it does not exist.
4. Choosing a lender just because they advertise the lowest rate-
While rate is important, you have to look at the overall cost of your loan. This includes looking at the rate, loan fees, as well as the discount and origination points.
The cost of the mortgage, however, should not be your only criteria. You must also feel comfortable that the loan officer you are dealing with is committed to your best interest, and will deliver what they promise. Often times, the company that offers the lowest quoted rate, may not be the best company for your mortgage business. Ask for referrals from friends and family.
*ALWAYS GET A GOOD FAITH ESTIMATE IN WRITING FROM THE LENDER. THIS WILL TELL YOU WHAT COSTS, POINTS, AND FEES YOU WILL BE CHARGED
5. Not getting a rate lock in writing-
When a mortgage company tells you they have locked your rate, get a written statement which details the interest rate, the length of the rate lock, and details about the program.
6. Buying a house without a professional inspection-
Unless you are buying a new house where you have warranties on most equipment, it is highly recommended that you get a property inspection done by a professional. By doing this, you will know what you are buying. Inspection reports are a great negotiating tool when it comes to asking the seller for repairs. If a professional home inspector states that certain repairs need to be made, the seller is more than likely going to agree to fix them.
7. Not shopping for home insurance before you close-
Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around for the best terms and price.
8.Not paying attention to the time frames of the contract-
A real estate contract has deadlines for certain actions that must be followed. You will need to formally apply for a loan for the home you have chosen within a specific number of days, and inspections need to be completed within a certain time frame as well. If you miss the dates, you may lose the home that you chose. Pay attention to the dates of the contract.
In addition, you will need to provide your lender with information in a timely matter as well.
9. Signing documents without reading them-
Do not sign documents without reading and understanding them. Ask questions about the things you do not understand. Do not expect to read all the documents during closing. There is rarely enough time for that.
10. Make your moving plans too tight-
Try to allow for a 5-7 day overlap between the closing and moving. By doing this you are giving ample time for the seller to vacate the home and for you to move in.
2. Not understanding the role and duties of the Realtor-
Understanding who represents whom in a purchase transaction is critical. Buyers and sellers have opposing interests. A sellers's agent works only for the best interest of the seller. A buyer's agent works solely for the buyer. A dual agent works for both the seller and the buyer during a transaction.
3. Making verbal agreements-
Buying a home is a complex process, and only those items that are agreed to in writing are part of the agreement. If something is not in writing it does not exist.
4. Choosing a lender just because they advertise the lowest rate-
While rate is important, you have to look at the overall cost of your loan. This includes looking at the rate, loan fees, as well as the discount and origination points.
The cost of the mortgage, however, should not be your only criteria. You must also feel comfortable that the loan officer you are dealing with is committed to your best interest, and will deliver what they promise. Often times, the company that offers the lowest quoted rate, may not be the best company for your mortgage business. Ask for referrals from friends and family.
*ALWAYS GET A GOOD FAITH ESTIMATE IN WRITING FROM THE LENDER. THIS WILL TELL YOU WHAT COSTS, POINTS, AND FEES YOU WILL BE CHARGED
5. Not getting a rate lock in writing-
When a mortgage company tells you they have locked your rate, get a written statement which details the interest rate, the length of the rate lock, and details about the program.
6. Buying a house without a professional inspection-
Unless you are buying a new house where you have warranties on most equipment, it is highly recommended that you get a property inspection done by a professional. By doing this, you will know what you are buying. Inspection reports are a great negotiating tool when it comes to asking the seller for repairs. If a professional home inspector states that certain repairs need to be made, the seller is more than likely going to agree to fix them.
7. Not shopping for home insurance before you close-
Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around for the best terms and price.
8.Not paying attention to the time frames of the contract-
A real estate contract has deadlines for certain actions that must be followed. You will need to formally apply for a loan for the home you have chosen within a specific number of days, and inspections need to be completed within a certain time frame as well. If you miss the dates, you may lose the home that you chose. Pay attention to the dates of the contract.
In addition, you will need to provide your lender with information in a timely matter as well.
9. Signing documents without reading them-
Do not sign documents without reading and understanding them. Ask questions about the things you do not understand. Do not expect to read all the documents during closing. There is rarely enough time for that.
10. Make your moving plans too tight-
Try to allow for a 5-7 day overlap between the closing and moving. By doing this you are giving ample time for the seller to vacate the home and for you to move in.
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