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GOVERNMENT
REAL ESTATE RESOURCES
Try the US
Census Bureau, FedStats.com,
or the Bureau of Labor
Statistics for useful information. The HUD
web site is full of resources. Don't forget Fannie
Mae, Freddie Mac,
or Ginnie Mae. Get
home buying tips from the Federal
Consumer Information Center.
LOCAL
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Pacific Information
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of Commerce.
OTHER
USEFUL SITES
OurBroker.com
is from the original AOL Real Estate host. Try RealEstateABC.com.
About.com
has a nice real estate center too.
It
is important to know how much you can afford before you begin looking at
homes in Central Vermont. You should also talk with a lender and get
pre-approved for a loan. This puts you in a stronger negotiating position
with a seller.
As
a rule, your monthly housing costs should not be more than 28% of your
monthly pre-tax income, including the mortgage payment, real estate taxes,
and insurance. If you have long-term debts, such as student loans or car
payments, your monthly payments, including your housing costs, should be
less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA
loans, are more flexible with these basic guidelines.
Depending
on which type of mortgage you select, you can consider houses in various
price ranges. An adjustable-rate mortgage will usually enable you to qualify
for a higher loan amount. Your Realtor can help you make the basic
calculations. And remember, buying at the top end of your price range gives
you more time to outgrow your home, and can save you money in the long run.
The
Realtor calls with great news! Your offer has just been accepted.
Congratulations--you are about to become a homeowner!
Your
initial euphoria may be short-lived, however, as you begin to have second
thoughts about the purchase. First, it's the mortgage. It seems like so much
money, and it will take thirty years to pay for it. You look over the cash
you will need for the closing and feel like you will never be able to afford
to dine out again! Finally, you stare at the inspector's report and convince
yourself that the roof will blow off and every major system will fail the
day after you move in. You're in a frenzy. You ask yourself, "What have
I gotten into?"
The
best thing to do if you begin having "second" thoughts is just
relax! These feelings are so common that they have even been given a
name--"Buyer's Remorse." "Buyer's Remorse" is almost
always a temporary malady, but call your Realtor if you are having an
extreme attack. We have experience in helping our clients through the
home-buying jitters.
There
is probably some kind of small, leggy creature that makes its home with you.
Whether they are termites, fleas, roaches, ants, or spiders, it is a good
idea to serve them with an eviction notice before you put your home on the
market. If home remedies like ionized boric acid don't work, paying a
professional exterminator will be money well spent.
Most
standard sales agreements require that a property be inspected before the
closing and treated for termite infestation, if necessary. It is a good idea
to check for insect problems as soon as you sign a listing agreement, so
that they don't become an issue of contention in the sale. Some insects may
not physically damage the house, but may reduce its chances of selling for
top dollar. Constantly having to push back spider webs while touring the
house or seeing roach antennae tweaking could seriously undermine a
prospective buyer's ability to fully appreciate your house.
When
you decide it is time to move, it is important to engage your children in
the process. Depending on the reason for the move and the distance, moving
can cause some concerns for children that parents may not pick up on right
away. It often means going to a new school, leaving favorite playmates, and
a lot of uncertainty about what the new neighborhood will be like.
Things
will go a lot easier if your children support your efforts to get your
current home sold. It is important to engage the children in keeping their
toys and clothes picked up. Teenagers may be especially touchy about
strangers invading their space, and may resist keeping their room in
"showing" condition. It is also important for the family to stay
out of the way when the house is being shown.
How
can you get the whole family involved in the sale? Include everyone in the
discussions about the move and invite the children to participate in
house-hunting trips. Work with a Realtor who is comfortable with children
and can remain sensitive to your children's needs and concerns.
You have probably figured out how much you will need at the closing for your
down payment, but don't forget about the closing costs. These additional
costs can add up to a significant amount.
Closing costs will vary, depending upon the
financing costs and the time of the month that you close. Your Realtor will
be able to give you an estimate of all these costs, including the points on
your loan, private mortgage insurance (if required), the title search, title
insurance, attorneys' fees, and any transfer taxes or recording fees changed
by local government agencies. There may also be property taxes, homeowners'
association fees and insurance that must be prepaid.
The final closing date is usually an important item in the negotiation of
the purchase agreement on a home. This is the day when the buyers get their
ownership papers and the sellers get their money. It is important to
remember that most standard contracts don't pinpoint a specific date, and
closings can be delayed due to factors beyond the buyer's control.
The closing will usually be set as soon as
the title search and lender's paper work can be completed, however, anything
can upset the closing schedule. Questions can arise about liens that were
paid, but not properly recorded. Something in the buyers credit history may
have to be cleared up. These situations rarely cause the transaction to fall
apart, but they can wreak havoc with your moving schedule. Your Realtor will
keep you up to date on the progress of your closing in order to avoid delays
and minimize the inconvenience, if one occurs.
To take much of the guesswork out of your consideration about whether a
particular property in Newport Beach, Huntington Beach and Corona Del Mar is
a good investment, you can check on the actual selling price of similar
homes in the neighborhood.
Some sales information, such as the selling
price, the financing terms, and the transaction dates, is public
information. Your Realtor will have record of all recent sales. You can find
out how properties have been appreciating, based on actual sales, rather
than from the neighbors (they could be wrong!). Driving by comparable homes
can give you an idea about how they compare with the property you are
considering. Your Realtor may have seen these homes and can give you
additional information to help you make a decision.
Sellers may be reluctant to accept an offer that is contingent on the sale
of another property. However, such a sale can be structured to minimize the
risks.
The seller should put a limit on the amount
of time that the buyers have to accept an offer, and they should keep their
home on the market. They should also reserve the right to require that any
contingencies be met within a short period of time, (24-48 hours), if they
get a second offer. This is called a "First Right" contingency.
Contingent sales can work well for the
sellers. The buyer is not in a position to ask for concessions on price or
terms and may be able to get interim financing. Each situation is different,
however, so go over the terms with your Realtor before accepting a
contingent offer.
When you are faced with multiple offers on your home, how do you choose the
right one? Your Realtor can help you compare and contrast the terms of each
proposal.
First, there is the price. Consider the
closing costs you may be asked to pay, and be sure that you understand any
other terms that might reduce your net profit. Can you work out a mutually
agreeable date for you to move out and for the buyers to move in? How
"clean" is each offer? Do the buyers have another property to sell
before they can close on yours? Can you get reasonable assurances that the
buyers will be able to qualify for the financing they will need?
Your Realtor can help you weigh the relative
merits of each offer, so that you can accept--or counter--the best one, and
line up one as an alternative.
What is the best price for a piece of real estate? Mortgage lenders,
appraisers, and real estate brokers use what is called the "fair market
value" (FMV). FMV has been defined as "the price that a buyer is
willing to pay and the seller is willing to accept, when both parties are
knowledgeable about the property and neither is under any time pressure to
buy or sell". Sounds great, but how is this price determined?
The starting point for determining a fair
price may be an opinion of the value or "competitive market
analysis". Such an analysis uses information on similar properties
which are: 1) currently for sale, 2) already sold, or 3) expired properties
(those which did not sell). Local, national and international trends and
market conditions must also be evaluated.
By comparing similar properties in each of
the three categories and the market conditions, appraisers, lenders and
agents come very close to the maximum price that buyers would be willing to
pay for a house.
If you are in default on an FHA-insured mortgage, and the lender intends to
foreclose, you should know about the Mortgage Assignment Program. You will
have to provide certain information to the FHA to apply for this program. To
be considered eligible for assistance, the home must your primary residence,
you must be at least three full payments behind on the mortgage, and the
reason for your failure to make the mortgage payments must be due to
circumstances beyond your control, such as unemployment. The FHA must be
reasonably certain that you can resume making the payments at the end of 36
months and that the accrued deficiencies will be paid back before taking
over the loan.
The Veteran's Administration also has a
mortgage assistance program for those who have VA mortgages.
Before you close on your new home, you will make a "walk-through"
inspection to ensure that the property is in the same condition as it was
when the purchase agreement was drawn up.
Some sellers convey the appliances and major
systems "as is," offering no promise that they will be in working
order. Other agreements require all of the major mechanical systems, such as
heating, plumbing, and air conditioning, to be operational. It depends on
the terms that are negotiated between the buyer and seller.
During this inspection you should check the
appliances by turning each one on and letting it run a full cycle. This
gives you a chance to make sure that any repairs that were to be made by the
seller prior to the closing have been made. These details are much easier to
work out before or during the closing than after you have taken possession
of your new home.
Selling a home is one of the most complex transactions that most people are
ever involved in. Finding a buyer is often the easy part! When you find
someone who wants your home and who has the money to buy it, it is still a
long way to the closing table.
You must first negotiate a purchase contract
that covers the price and all the terms of the agreement. How much of a
deposit will the buyer put down? When and how will the transfer of title
occur? Under what conditions can either the buyer or seller back out of the
contract? There should always be a complete home inspection. Having a good
agent to handle the details after a home inspection can make the difference
in a successful transaction or a failure. The buyer must obtain financing,
and the lender's appraiser will have to agree with the sale price. When
clear title has been established, you can sign all the necessary papers to
finalize the sale.
Now that you have found the perfect home and negotiated the price and terms
with the sellers, you come to the most difficult part of the
transaction--finding the perfect loan.
You should do some comparison shopping among
lenders. Your Realtor can refer you to several reputable lending
institutions which should be able to complete the loan process before your
proposed financial approval date. The loan officer will take your
application and have you sign all the necessary papers to authorize credit
and employment verifications. You and the Realtor should get periodic
progress reports to make sure that all of the details are taken care of.
Such reports will help to ensure that any potential problems are discovered
and addressed before they can threaten the transaction.
Finding a good Realtor whom you like and trust is the first step in locating
your new home in Newport Beach, Huntington Beach and Corona Del Mar.
Call or stop by a real estate office and ask
to speak with the manager. Describe what type of home you are looking for.
The manager can refer you to an agent who knows that market very well. You
might also use weekend "open houses" as opportunities to look for
a Realtor, as well as a new home. It is really a matter of chemistry! If you
meet someone who is knowledgeable and with whom you feel comfortable, call
that person!
Once you establish a good working
relationship with a Realtor, your agent can show you the homes for sale,
even if they are listed with other companies. Often they can show you a
property as soon as it is placed on the market. (Many of the best homes
never even make it to the weekend classified section of the newspaper).
Are you considering taking out hazard insurance on a property before you
actually take title? It may be a good idea!
Even though you are not yet the owner of
record, as the buyer, you have an insurable interest in a property the
moment that you and the seller execute the sales agreement. As a matter of
practice, however, buyers do not usually take out insurance until the papers
change hands, and it should not be necessary if the agreement of sale is
properly executed.
It is very important to both parties that the
agreement states that the property will be insured for a specific amount.
From the buyer's point of view, it is important that an adequate sum be
stipulated, and that the agreement not read "as now
insured"--which can indicate that the seller may not want to increase
the insurance.
As a general rule, the amount of insurance on
the buildings on a property should equal the sales price, less the value of
the lot.
If you have been house-hunting on your own in Newport Beach, Huntington
Beach and Corona Del Mar, you may have been relying on the classified ads or
driving through your favorite neighborhoods in search of "For
Sale" signs. A good Realtor can save you time and gasoline by making
your search easier and more efficient.
Realtors learn about homes as they go on the
market, and the best values may sell before they are ever advertised! Good
Realtors often beat the sign installation crews to the scene! An agent who
has seen the homes available in the area can save you time and effort. By
using the Multiple Listing Service, an agent can also show you his or her
company's listings, as well as those of other firms. The agent can also give
you any information you need about nearby public transportation, schools,
shopping, and recreational facilities.
Your dog or cat can pose a problem when your property is listed for sale.
Even if prospective buyers have pets of their own that smell just like
yours, they may be repelled by animal odors. If you have a pet odor problem,
you should remove the offending furniture or carpets or hire a professional
to clean them. Check the cat box frequently and keep the litter fresh.
Some people have allergies or irrational
fears of certain animals, so it is a good idea to put dogs or cats outside
or confine them to one area when your house is being shown. It is hard for
buyers to appreciate your home through puffy, watery eyes or in between
sneezes! Even if the house is exactly what they want, your chances of
selling it are less if the buyers are afraid of being eaten by Fido.
You have just spent the entire day looking at homes in Newport Beach,
Huntington Beach and Corona Del Mar, and now they have all become a giant
blur. Which house had the great dark room? Was it the same one with the
small kitchen? You saw so much that you can't remember anything! Realtors
have developed little tricks to help them remember the thousands of
properties they see.
Carry a notebook with you when you are
house-hunting, and give each house its own page. At the top of the page,
note the address and price. Write down the exterior construction, style and
color, as well as the color of the living room carpet and walls and any
other major feature that will jog your memory later. You can nickname the
houses--"the white cat house" or "copper pots
house"--anything to help you retain a mental picture of the property.
This will enable you to recap the day and give your Realtor important
feedback that can speed up your search for the perfect home!
Many purchase offers today have a contingency clause which allows the buyers
to have an inspector or professional expert to inspect the property. If
there is a significant defect in the property, the buyer can cancel the
contract without losing the earnest money deposit. Such contingencies may
make a seller nervous, but they are an excellent procedure for both the
buyer and the seller.
The time period for inspection contingencies
is negotiable. In most parts of the country, the buyers have about a week in
which to cancel the contract if the structural inspection reveals a serious
and consequential defect.
The positive side to such contingencies--the
inspection usually addresses--and overcomes--the buyers' misgivings and
confirms their decision to move ahead with the purchase.
Individuals who invest in real estate are doing very well these days. The
potential for income, appreciation and possible tax savings makes investment
property especially attractive.
It is important for you to get professional
advice before you decide to buy investment property. You may want to start
with a personal financial advisor who can help you set your investment
goals. Your Realtor can help you select a competitively-priced property that
meets these goals and can answer questions about why a particular property
would be a solid investment. What features would make it easy to rent? What
kind of maintenance expenses are you likely to incur? What will your cash
flow be, and how will the tax savings affect your bottom line? While we
cannot predict how much a particular property will appreciate, we can give
you the history of price trends in our market area.
Many sellers think that the price of their home is determined solely by what
they are willing to accept and what the buyer is willing to pay. There is
one more variable that can complicate the sale of a home--the lender's
appraisal.
To protect the interest of their investors,
the mortgage lender hires an appraiser to give an independent, objective
evaluation of what the property is worth. If the appraised value is lower
than the selling price, the seller will be glad that he has enlisted the
services of a professional Realtor. The agent can give the appraiser
information about neighboring homes that have recently sold that support the
seller's price. If an appeal to the appraiser is not successful, some
delicate negotiations will follow. Both the seller and the buyer may have to
make concessions to make the transaction work. The bank may ask the buyers
to increase their down payment or ask the sellers for a reduction in price.
Many lenders help prospective buyers get pre-approved for a mortgage loan
before they begin a serious house-hunting effort. Give the loan officer all
of the information about your assets, income, and debts so they can tell you
how much money you will be able to get under the available loan options. The
loan officer will do a credit check and work with the lender to straighten
out any problems with your credit rating.
Pre-approval from a lender can make you more
attractive to the seller when you find the home you want. Occasionally
multiple offers come in on a house, and you find yourself competing with
other buyers. In that case, it is helpful if you have included a letter from
the lender with your offer stating that you have an approved loan and are,
indeed, qualified to buy. This will also save you time by eliminating from
consideration any homes that you would not be able to afford.
It is a well-known axiom that location is one of the most important elements
in the value of a property. Let's take that one step further. A good
investment buy would be a sound property in a "so-so" area that
will increase in value in the future. Buying into an area that is strongly
on the comeback is one way to shorten the odds for success.
Trend is everything. The trick is not to get
in so early that you are one of the earliest pioneers, but early enough that
there is still plenty of appreciation left. Being a pioneer is fine if you
are a gambler with a lot of patience. It is safer to buy into an area after
the restoration trend is unmistakably established.
A neighborhood that is a good candidate for
restoration must have an intrinsic location advantage, such being in a
school district that has high test scores or in a good walk-to-work
location. It must also have good basic homes. Can we help you find a winner?
Today the interest rates charged on fixed-rate mortgages are almost the
lowest they have been in two decades. That's good news for potential home
buyers. Even better news is the fact that the interest charged on some
Adjustable Rate Mortgages (ARMs) is at a level not seen in four decades.
However, you should be cautious if you choose an ARM.
First, keep in mind that the ridiculously low
rates offered on ARMs usually are guaranteed just for the first year.
You should also be aware that, because of the
potential for volatility, lenders will usually require that you qualify for
a mortgage loan several percentage points above the actual initial rate
charged on the ARM. This is intended to eliminate marginal borrowers from
becoming overburdened by debt. You should also be on the alert for lenders
who charge special fees or caps that can increase the cost of the loan to
you.
The first step you take when putting your home on the market is establishing
the price. A professional market analysis can help you determine what the
property is worth. Contact a Realtor who is familiar with your area to get
prices on the homes that are for sale and to see how long they have been on
the market.
Your Realtor will be able to provide you with
information about the actual sale prices of homes that are similar to yours.
He or she can also tell you about the features that influence the value of
each property, such as the number of rooms, the overall condition, and the
extras--family room, finished basement, wall-to-wall carpeting.
You can establish a market value for your
home in Newport Beach, Huntington Beach and Corona Del Mar by putting all of
this information together. If you price your home within 5% of the
established market value, it should sell quickly.
Multiple Listing Services
THE MULTIPLE LISTING SERVICE
In the last decade Multiple Listing Services
have revolutionized the way real estate is sold all over the country. When
listing your home in Newport Beach, Huntington Beach and Corona Del Mar, a
Realtor enters the pertinent information about your property into a
computerized inventory bank.
Having your home placed on the Multiple
Listing Service provides the most effective advertising available because
agents all over town have immediate access to information about the price,
location, number of bedrooms and baths, the kitchen equipment and other
appliances that convey with the home, as well as the size of the yard, the
type of heating and air conditioning systems, and a host of other features.
The MLS allows agents to feed in their buyers' basic needs and match them up
to the listings of all area Realtors. When you list your home, you are
employing not only the listing agent to market your home, but hundreds of
the agent's colleagues all over town who will work cooperatively to get your
property sold as quickly as possible.
No matter how much storage space they have, most people feel that it's never
enough. Most buyers put storage space high on their list of priorities for a
new home, and all sellers must face the minor indignity of having
prospective buyers open all of their closets to determine the size of each
one.
Even an enormous closet looks small if it is
cluttered. Your closets should be as organized as possible while your
property is on the market. If you have too many things, have a yard sale,
rent a storage unit temporarily, or make a tax deductible donation to a
local charity. When you finish putting all of your closets in order, then
attack the other storage areas. The areas that you have for storage will
look much more spacious and attractive if they are neat and well-organized.
Purple..."
If you are considering buying a home in a planned community, be sure that
you understand the owners' association rules. These covenants usually cover
a wide range of subjects, including exterior paint, where campers can be
parked, where you can walk your dog, and sometimes even the kind of shrubs
or flowers you may plant.
Such restrictions are attractive to many home
owners because they don't have to worry about their neighbors doing things
that they find offensive. If you are an individualist, however, and don't
want community interference in your lifestyle, such restrictions could cramp
your lifestyle. Be sure that you read and understand the rules and
regulations governing a planned community before you make an offer on a
property.
Very few people will buy a house because they are attracted by fantastic
bathrooms. Buyers do react to bathrooms that are not cared for, however,
because they view them as a reflection of the overall condition of the
property.
Many buyers know that plumbing repairs
potentially represent a major expense. They get nervous about dripping
faucets, loose tiles, and running toilets. Your pre-marketing preparations
should include making sure that your plumbing is working properly and that
any cosmetic damage caused by former leaks has been repaired.
Keep the bathroom spotless while your home is
on the market. Get out the scouring powder, mildew remover, glass and tile
cleaner and a scrub brush. Re-caulk around the tub and shower, if necessary.
A new shower curtain, bath mat, and nice smelling soap can help give the
buyer one more positive reason for liking your home!
When you have decided on a mortgage lender, you begin the loan process by
filling out a loan application. You should be fully prepared to go over your
current financial situation and credit history with the loan officer.
Have a record of all of your current bank
accounts, including the name and address of bank(s), type of account(s), and
approximate balance(s). Be prepared to provide details about outstanding
loans or credit accounts, such as student or car loans and major credit card
accounts. You will also need information about your assets, such as car
title, stocks and bonds, and life insurance policies. If you foresee any
credit problems, discuss them with the loan officer for advice on how to
keep them from interfering with approval of the mortgage. That person can
usually give you a prompt opinion about your chances for obtaining a
mortgage.
Year 1
After just a week on the market, your Realtor has brought you a terrific
offer to purchase your house--it is less than the asking price, but more
than you expected. The buyers were reasonable and well qualified. After
talking with your agent, you decide to accept the offer.
After the agent leaves, you start thinking
about what you have just done and feel terrible. You wonder if you acted too
quickly--maybe you could have gotten more! You fear that the buyers will let
your garden go to seed and pull down all the beautiful wallpaper that you
just put up.
These fears are such a common phenomena that
they have been given a name--"seller's remorse"! It is perfectly
normal to feel this way, especially if you are selling a home where you have
lived for many years and which holds many memories. "Seller's
remorse" is almost always temporary. It is quickly replaced by the
excitement of moving into your new home!
Occasionally a seller will be surprised to learn that a contractor's or
mechanic's lien must be paid on their house. To challenge such a lien, the
buyer can release it by posting a bond pending adjudication. In other cases,
a title search may disclose other claims against the property by an
ex-spouse, past heir, or a former owner. A simple quitclaim deed may be used
in such a case. A quitclaim deed allows the person involved to sign over
whatever rights he or she may have had in the property without laying any
claim to it.
If the seller will not be receiving the
proceeds from the sale of their present home in time to close on a new home,
it may be possible to arrange a swing loan. Most real estate transactions
involve some hesitation and questions on the part of the seller and the
buyer. The real estate agent can provide answers or alternatives so that
matters can be resolved and the sale concluded.
Interest rates fluctuate as changes occur in the general economy. If you
purchased your home when interest rates were higher, you may want to
consider re-financing your loan at a lower rate.
You will have to apply for the new mortgage
and have your current income eligibility assessed. Depending on how long you
have had your present loan, a current appraisal may be required. There are
closing costs, such as attorney, title fees, recording and notary fees, and
appraisal charges.
The biggest factor in your decision should be
the length of time you plan to remain in your home. If you will be there for
only a year or two, it may not pay to re-finance. If you will be in your
home longer, re-financing could provide you with lower mortgage payments.
Your Realtor can help you work out the numbers and can refer you to
reputable lenders.
Your family has outgrown your home in Newport Beach, Huntington Beach and
Corona Del Mar, but you have roots in the community that make it difficult
to leave. Is remodeling the solution?
Get professional advice before you jump into
a major renovation project. Decide what changes you want to make, and get
bids from several contractors. When you have an estimate on the cost of the
project, talk to your Realtor to determine if these changes will be
cost-effective. Over-improving your home may make it difficult to get your
money back if you sell it soon.
It is a good idea to talk with friends who
have remodeled to get a realistic picture about working with contractors and
to determine how disruptive the project will be to your family life.
Remodeling a home is a major undertaking, so be sure that it is the best
solution for you.
When you get serious about selling your home, the chances of your selling it
quickly for top dollar will improve considerably if you list it with a real
estate sales professional. If you doubt this, consider the fact that eight
out of ten homes sold today--more in some markets--are listed with a
professional Realtor.
Listing your home places it on the local
Multiple Listing Service that is subscribed to by a majority of real estate
sales professionals. Through the MLS listing, your home is assured of
getting the widest possible exposure to the market place.
Some buyers shop the home market on their
own, but most save time and money by using the services of a real estate
sales professional. Ask yourself which homes the real estate sales
professional is going to show the prospective buyers--homes listed on the
MLS or those that are not?
If you still want to try to sell your own
home, you should know that you will face stiff competition when it comes to
attracting qualified buyers!
Sometimes the need for a move is obvious. For example, if your work requires
you to transfer to a new city. The impact of other life changes, like having
twins, your last child leaving home, or a big salary increase, may not be so
obvious.
When you notice that your house or
condominium in Newport Beach, Huntington Beach and Corona Del Mar is no
longer serving your needs, it may be time to call in a professional Realtor
for some expert advice. Your agent may suggest that you remodel your present
home or find one that is more suitable to your current lifestyle.
If you decide that a move is necessary, what
should you consider before listing your present home for sale and beginning
the search for a new one? You will want to know how much you can expect to
get for your present home and what you can afford to spend on a new one. You
will also need information about financing and the many loan programs that
are now available. A professional Realtor can be an invaluable asset to you
as you make these important decisions.
Most of our buyers rate a good kitchen very high on their priority list when
they are looking for a new home in Newport Beach, Huntington Beach and
Corona Del Mar. The layout of the kitchen, the amount of counter space and
storage, and the age and overall condition of the appliances are all
important to them. The kitchen area is basically viewed as the center of
nourishment and as a place where they will share many meals.
Take a discriminating look at your kitchen
and consider what you can do to make it a real asset. Repair any plumbing
leaks or broken appliances. Scrub the room thoroughly, paying special
attention to the range and oven. Clean the refrigerator and place a box of
baking soda inside. Little fix-ups can sometimes do wonders--hang some
pretty pot holders over the stove and get some new curtains. You don't need
a brand new, high-tech kitchen to impress buyers, but do whatever you can to
make your kitchen look as shiny and well-maintained as possible.
The concept of "do-it-yourself" is "as American as apple
pie". While this approach can pay dividends in many endeavors, it can
cost you unnecessary time and money when you are trying to sell your home.
The overwhelming majority of homes that sell
are listed with a real estate sales professional. In most markets, over 90%
of the homes sold are listed with a Realtor.
Most people try to sell their own home in
order to save the commission, while those who tend to buy homes that are
"for Sale by Owner" homes also want to save!
Rarely does anyone actually save money by
selling their own home. By listing your home with a Realtor you will save
the cost of advertising your home, the inconvenience of showing, and all the
time you might spend talking to people who couldn't qualify to buy. Realtors
can help you get top dollar for your home and are experienced in all of the
complex legal details involved in transferring title.
When you are involved in the process of buying a home, it is safe to assume
that you will probably find one that you like, make an offer, and purchase
it. There are many steps along the way, and more and more buyers in the
market today want guarantees. Inspections by structural engineers and
environmental specialists often turn up something wrong with the property
you want to buy. Many sales have been halted or delayed because asbestos,
lead, or radon was found on the property.
If a problem has been found with the property
you want to buy, ask yourself two questions: 1) Can the problem be fixed? 2)
If so, what will it cost to repair it? Some of the following problems could
keep you from purchasing a property, if: 1) the house rests on a fault line;
2) the water supply is contaminated; 3) there is a severe crack in the
foundation; or 4) the house is located under electro-magnetic power lines.
We want the properties we market to look spotless and wonderful. However,
the sellers eventually find that keeping their house in prime showing
condition begins to wear thin after a few weeks for even the most impeccable
housekeepers.
It is a lot of work to keep the beds
perpetually made, the kitchen and bathrooms spotless and closets neat. Is it
worth it? It is--if you want to sell your house for top dollar in a
reasonable amount of time. Buyers often see normal clutter, and what
registers is "this house hasn't been maintained." They see bathtub
rings and think "plumber's bills." Dirt under the radiators causes
them to imagine having to replace the entire heating and air conditioning
system. People are often functioning more on emotion than logic when
selecting a house. You can help your broker by minimizing the amount of
imagination that buyers will need in order to fall in love with your home.
Buying a home is a good idea for a number of reasons, and one of the most
important is the tax savings. At first glance, it may look like the monthly
costs for your mortgage and taxes are much higher than the rent for a
comparable home.
If you are planning to buy a $200,000 home,
for example, with a fixed-rate 30-year mortgage at 7.5% with annual taxes of
$1800, your monthly cost (principle, interest, and taxes) would be
approximately $1,548. The good news comes when you consider your tax bracket
and calculate the amount you save each month. During the early years of your
loan, almost all of the mortgage payment and all of your local real estate
taxes can be deducted on your federal returns. If you are in the 28% bracket
for Federal taxes, you can save about $433 each month, bringing your net
monthly housing bill down to $1115. When you take into account your state
and local taxes, you may save even more.
If you are thinking of selling your home and your house has risen in value
since you purchased it, or you have accumulated a lot of deferred profit
from previous sales, the new tax law passed in August of 1997 could be of
tremendous value.
Prior to this new law, when a homeowner moved
to a smaller home, relocated to a less costly area, or made a decision to
rent, they were left with unfavorable tax consequences. The old tax law
allowed people who sold their homes to defer tax on any profit by buying a
replacement home of at least equal value within two years. At age 55, they
could permanently escape tax on up to $125,000 of profit, but any profit
over that was taxable unless a new home was bought. The good news is,
starting with homes sold after May 6, 1997, homeowners will be able to make
as much as $500,000 tax-free profits on the sale of a principal residence
for joint filers or $250,000 for single filers. The $500,000 capital gains
exclusion will remove taxes as a consideration for most home sellers by
giving them flexibility to trade up or down. It will also allow them to
preserve the savings value of a home when they sell, provided they used the
property as their principal residence for two of the prior five years.
Consult your tax advisor for your particular circumstance.
Most of our sellers make a profit when they sell their homes. They often
have questions about how capital gains tax will impact them.
If you are selling your primary residence,
you do not have to worry about paying taxes on your profits if your gain
does not exceed $250,000 as a single taxpayer (or $500,000as a married
couple filing jointly). This new tax law comes from The Taxpayer Relief Act
passed in August of 1997. Regardless of your age, you are now free to roll
from none to all of your gain into another home without further tax
consequences.
Different rules apply when you sell income
property. If you sell one property then purchase another, the taxes will be
due for the year the sale occurred. On the other hand, if you arrange to
exchange one investment property for another, you can defer the capital
gains tax. To ensure complete tax deferment you must acquire a replacement
property which is equal or greater in price than your exchange property, and
move all of your equity from the old property into the new. It is not as
complicated as it sounds, but you do need professional help. Many Realtors
and attorneys specialize in helping their clients put these1031 tax-deferred
exchanges together.
Every purchase of a home involves a certain amount of compromise. When you
are working with a Realtor, it is important that you give your agent a clear
idea which of your criteria are flexible and which items you really must
have in your new home.
If you prefer a specific location, for
example, discuss why you want to live in that neighborhood. The agent might
be able to suggest alternatives areas which offer the same amenities or
convenience to your office. How important is size? Do you really need four
bedrooms or would three bedrooms work, if there is a den for your home
office? How much are you willing to correct with redecorating or remodeling?
Are you willing to expand your price range by using an adjustable rate
mortgage to increase your buying power?
We ask buyers a lot of questions so that we
can use their time most efficiently and show them only houses that are real
possibilities for them.
You have finally found the home in Newport Beach, Huntington Beach and
Corona Del Mar that is right for you, but you have some questions about the
structure and condition of the home. A home inspection is the best place to
get answers to your questions. There are companies that specialize in
inspecting new and used homes. Most sellers allow a reasonable amount of
time to have the property inspected after the purchase agreement is agreed
upon and prior to closing. It is wise to have a home inspection, even if the
house is new or everything appears to be in perfect condition.
The inspector can provide important
information about the house. Where are the gas and water shut-off valves?
How do the circuit breakers operate? What type of routine maintenance should
be done for each system? The inspector's fee is an investment that can save
you money later!
It's the day that you close on the sale of your home, and the buyers are a
little cranky. During the walk-through inspection, your dependable old
dishwasher stopped midway through its cycle, and the powder room toilet
flunked its flush. These situations may cause some anxiety for the buyers
and sellers, but such problems are quite common and usually easy to resolve.
Most purchase agreements require that the
major mechanical systems and the appliances being conveyed are in working
order at the time of the closing. Defects are often discovered during the
structural inspection, allowing the sellers have plenty of time to have the
repairs made. Occasionally there are last-minute breakdowns or defects that
are not spotted until the walk-through inspection. In that case, an
agreement can be made with the sellers at the closing to escrow funds for
the repair or replacement of the items in question.
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Loan? Contact: BorrowToday.com
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