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Month: July 2010

Top 10 Cities to Buy vs Rent

rent to own

We’ve already covered the top 10 cities to rent vs. buy, so now let’s look at the top 10 cities to buy vs rent. While there are plenty of advantages to renting an apartment or a home, there may be more upside to buying one, depending on where you live. Currently, mortgage rates are at… Continue reading Top 10 Cities to Buy vs Rent

Published July 8, 2010
Categorized as Real Estate News Tagged test
  • Best and Worst Home Improvements
  • Common Home Buying Mistakes
  • Earnest Money Deposit
  • Factors That Determine Real Estate Value
  • Functional and Economic Obsolescence
  • Home Staging: What It Costs and If It’s Worth It
  • How Much Should I Put Down on a House?
  • How to Avoid Foreclosure

    With foreclosure being all the rage these days, I thought it would be prudent to include some tips on how to avoid foreclosure in the event that you are underwater on your mortgage or unable to continue making payments. Luckily, mortgage lenders and servicers have stepped up efforts to help at-risk borrowers modify their existing mortgages, though not everyone in need is getting the help they need for obvious reasons. Repayment Plans This is the most common type of workout being offered via anti-foreclosure efforts like Hope Now. Under this type of workout, a borrower will have delinquent payments added onto the total loan balance in order to bring the loan current. This isn’t exactly ideal, as you’ll be required to pay your typical monthly mortgage payment plus a certain percentage of the delinquent payment each month. Your lender or servicer will also likely ask for a down payment for a portion of the outstanding debt, and you’ll need to prove you can make the new payments. Forbearance/Partial Claim Forbearance is a situation whereby the lender or servicer forgives past-due payments to bring the borrower current. To make up for missed payments, the loan payoff schedule is extended by “x”…

  • How to Get a High House Appraisal

    Real estate Q&A: “How to get a high house appraisal?” With home prices continually slipping, anxious homeowners are increasingly searching for ways to come up with better values when getting their homes appraised.   But one of the major dilemmas facing homeowners is the fact that real estate appraising is largely based on the properties around you, and not so much your own property. Replacing Light Bulbs? In other words, performing simple tasks like fixing light bulbs, repainting walls, planting flowers, and tightening leaky faucets will have little effect on how your home is appraised.  Sure it’ll boost curb appeal and make your home more attractive to buyers (assuming you’re trying to sell), but it probably won’t do much to boost your appraised value. Comparable Sales Real estate appraisers rely largely on “comparable sales,” homes in your immediate area that have sold in the past “X” number of months, maybe three to six months.  By comparable, I mean homes with similar square footage, age, view, amenities, number of bedrooms, bathrooms, and so forth.  And the more recent sales, the more opportunities your appraiser has to find that right value. That said, installing granite countertops or new cabinets could result in a…

  • Is Now a Good Time to Buy a House?

    Aah, the age old question, “Is now a good time to buy a house?” It’s never been a simple question to answer, though interested parties would have you believe it’s always the right to buy. Their logic being that real estate is always a good investment at any time because prices are sure to rise over the long term.  But that said, there are certainly better times to buy than others, though it’s not necessarily easy nailing down that right time. At the moment (this article was written in late April 2009), there are a number of factors working in favor of prospective homebuyers.  They include an $8,000 homebuyer tax credit that doesn’t need to be paid back, record low mortgage rates, and discounted home prices. So affordability is actually at its best level in nearly 40 years, but it’s a little skewed given the government’s intervention in pushing interest rates artificially lower.  Homebuilders are probably benefiting more than prospective buyers because they don’t need to lower their prices as much since the lower rates equate to more affordable monthly mortgage payments. Meanwhile, there is much uncertainty about the direction of home prices, despite already having fallen by the double-digits. …

  • Making an Offer on a Home

    Buying a home can be a tricky and lengthy process, and one of the most important aspects is making the right offer for the property in question.  So how much should you offer for that new home?  What’s the right amount?  Is it too much, is it too little?  All tough questions to answer, but here are some tips to navigate through this difficult portion of the home buying process. Gauge the Market Are properties in the neighborhood where your dream home is located selling quickly or slowly?  Are they selling above their asking price or below?  And what about the values of the homes in the area, are they appreciating or losing value?  Are there similar properties in the area or in nearby areas that you desire?  These questions should all be taken into account when coming up with your offer. Ask Your Agent If you need help setting an offer price, speak with your real estate agent, it’s their job.  They should know the area well and also have a good familiarity with the bidding process.  They can advise you on what price to offer first and how to handle counteroffers and the like.  They should also be…

  • Multiple Listing Service – MLS
  • Prepaid Interest | When to Close Escrow?
  • Pros and Cons of For Sale by Owner Listings
  • What It Costs to List a Home

    Whether you’re in the market for a new home, or looking to sell your existing home, it’s important to understand how real estate commissions work. First and foremost, if you’re buying a home, you will not have to pay any direct, out-of-pocket commission fees to your real estate agent. Conversely, it is the seller who must forfeit a chunk of the selling price to both the buyer’s and seller’s agent. The typical commission tied to the sale of a home these days is 5% of the sales price, though it can be as high as 6% or 7%, and lower than 5% in some cases. The seller’s agent typically sets the rate of commission, and then works out a deal with the agent representing the buyer. In many cases, the two agents will split the commission 50/50, though it can widely vary based on market demand and other factors. In fact, sometimes one agent represents both buyer and seller in a dual agency, collecting the entire commission. If one agent represents both buyer and seller, the total commission may be reduced. Real estate agents work for real estate brokers, who get a split of the commission as well, with newer…

  • Real Estate Supply and Demand
  • Seller Paid Closing Costs
  • Setting the Right Listing Price
  • Should I Rent or Buy a Home?

    The great debate of whether to “rent or buy” will never end, but I’ll do my best to add a little insight on the topic.  If you scour the internet looking for answers, you’ll likely come across biased answers from interested parties, namely real estate agents, mortgage brokers, and others who say it’s always a good time to buy. The thinking there is that home prices are always going to go up in the long term, even if they experience some fluctuation in the short term.  This may be true, but that doesn’t mean it’s always a good time to buy, especially if you can get the same house for $50,000 less if you just wait a year. The question of whether to rent or buy a home is especially pertinent now, with home prices much lower than they were a few year ago and affordability at all time highs.  Of course, one of the main reasons things are so affordable is because mortgage rates have been pushed artificially lower by the Fed.  Home prices are still quite high, which is why most prospective homebuyers are continuing to wait. Ok, that’s great to know, but should I rent or buy…

  • Types of Home Buyers and Home Sellers
  • Types of Residential Real Estate
  • What Is Curb Appeal?
  • What to Do If the Appraisal Comes in Low

    Once you’ve settled on an asking price, you’ll likely turn your attention toward financing your new home.  While you may think the deal is done, keep in mind that the asking price may not always align perfectly with the appraised value. The appraised value is what the mortgage lender is concerned with, as it protects the lender in the event you default on your loan.  After all, why would the bank want to give you anymore money than what your property is actually worth? That said, it’s not uncommon for a property to be appraised for less than the purchase price.  If that happens to you, here are some options to save the deal and close that mortgage. Renegotiate the Purchase Price If the appraised value comes in lower than the contractual purchase price, you may be able to renegotiate the asking price so that it falls in line with the appraised value of the home.  Here’s the kicker.  If you don’t have an appraisal contingency in the purchase contract, you’re obligated to buy the home regardless. If that’s the case, you’ll need to come in with extra money to make the deal work, which may require putting more money…