Tips For Buying A Foreclosure Home
Oftentimes buyers may hear that a particular home is a bank or government owned home which is also known as a foreclosed home. A foreclosed home is a home that the prior homeowner has stopped paying the mortgage on and the lender takes the homeowner to court in order to take possession of the home in to try and recover money that is owed to them. Foreclosed homes must go through a full foreclosure hearing in a court in order to make sure the debt is valid and the homeowner has legitimately stopped paying back on the mortgage. Once back in the possession of the mortgage lender they may or may not make some repairs if needed and will put the home on the market for a new buyer to purchase. For some mortgage loans that are backed by government mortgage programs (like FHA, VA, USDA) the government will ultimately take possession of the home and eventually sell it back on the open market.
If you are considering buying a home that has been foreclosed upon this article is article is for you as it will provide tips on how to make the best of buying a foreclosure home.
Where Do You Find Foreclosure Homes For Sale
Just as most homes are found on the Internet via the Multiple Listing System (MLS) many foreclosure homes make it to the MLS as well when being listed for sale. On occasion depending on the lender and the condition of the home sometimes homes make it to select auction sites in order to limit who can buy the home and as a result may not be found on the MLS. Foreclosure homes in very poor condition sometimes will be sold with cash offer only requirement since the condition will not meet appraisal standard for traditional...
Tips For Choosing The Right Neighborhood
Finding the right neighborhood is just as important as finding the right house, as the right house in a neighborhood that does not work for you can lead to eventual dissatisfaction with the house. Neighborhoods encompass many different aspects so it pays to do your research fully and understand what a particular neighborhood may or may not offer. The perfect neighborhoods for a family with kids may not be the perfect neighborhood for an empty nest couple or a single person looking for a home. This articles looks at some of the things homebuyers should be considering in a neighborhood when shopping for a home.
The location of a neighborhood is key. Living in a great neighborhood fifty miles away from your workplace may leave you with little time to enjoy your neighborhood since you have to spend more time driving back and forth to work. So while there may be a great neighborhood fifty miles away that does not mean you should be considering it unless your employer offers benefits like working from home rather than having to come into the office every day. Long commute times can be stressful and result in many wasted hours that should instead be spent enjoying time with your family or enjoying your neighborhood.
The neighborhood location in terms of the community amenities and features are also something to consider. Being in a more rural area you are less likely to find recreation centers, shops, malls and...
5 Smart Tips For Buying An Investment Property
With the recent boom in real estate markets all over the US many people are looking to real estate for investment purposes. Buyers are looking to buy commercial and residential properties with the goal in mind of renting out those properties and generating cash flow. Investment in real estate can generate good cash flow with better rates of returns than stocks and other similar investments. This article provides a number of great tips for the new real estate investor or the seasoned investor to make sure when the right property comes up they are ready to take advantage.
Having Your Funds Or Pre-approval In Order
While this is often repeated when it comes to buying any type of real estate it bears repeating since it is so important. In many markets real estate is selling fast (even investment real estate) and if buyers do not already have a mortgage pre-approval ready to go they will lose out to other buyers who do have a pre-approval. No seller wants to add extra time to a transaction for a buyer to get pre-approved when they get offers with buyers who may not only be pre-approved but may even be an all cash buyer.
When it comes to an offer where a buyer must get pre-approved versus a cash offer the cash offer will win every time assuming everything else is the same. Cash buyers often forgo asking for an appraisal as they are comfortable with the purchase price since they have usually run their numbers and know a good investment when they see one. If a buyer is not pre-approved that means there are two areas to cause a deal to fail, the buyer can fail to...
Smart Tips For Buying A Waterfront Home
Waterfront properties for some are highly desirable either for the ability to use a boat or some sort of other water recreation vehicle or for the great views. Waterfront views can add significantly to the price tag of a luxury home with a great view of a lake, river or ocean. While waterfront properties may offer excellent views and offer more value there are still some things to be aware of when considering the purchase of a waterfront home as this article explores.
New Construction vs. Existing Home
If you are building a new home with waterfront access the build method may be different when it comes to the foundation. Depending on the condition of the sub-surface where the house will ultimately rest upon different kinds of supports may be needed to ensure the house is stable after being built. Also depending on whether the water levels can come up to or beyond the house the house may need to be raised in order to limit its exposure to the water. In order to make sure the house is setup properly from the start homebuyers should make sure their builders are using qualified engineers to analyze the ground below where the house will be built in order to make sure the right type of foundation support is used.
If you are considering an existing waterfront home then in addition to having a regular home inspection it would be wise to have a structural engineer look over the home to make sure the foundation is strong and secure so that your investment does not go floating off into the water or get damaged due to a shifting foundation. Depending on when the home was built and whether there are any plans still available that show...
Should You Transfer Your Real Estate Into An LLC?
An LLC or Limited Liability Company is a business structure similar to a corporate form like S Corporation found in many states that allows for a business owner to run a business and limit their liability exposure to just the business assets itself. If the business owner were to be sued for something that the business did then the business owner’s personal assets should be protected from the lawsuit if they were to lose the case. Where a business owner runs a business without an LLC, then they run the risk that if they are sued a court can use any and all of their assets to satisfy a lawsuit judgment. LLCs are commonly used by small business owners, are sometimes used by real estate owners and investors. This article explores whether it makes sense to have your real estate in an LLC.
How Is Real Estate Usually Owned?
All real estate is registered to the owners (can be individual, LLC, corporation, trust and more) name with a deed. The deed is generally put in the name of the buyers as the current owners of the property and recorded at the local government office where records of deeds are kept. In order to get the best protection, deeds should be registered with the local registrar/recorder but it is not a requirement to do so when purchasing real estate with cash. If the real estate is purchased with a loan the lender will require the purchaser to have the deed registered and recorded in their name with the local government in order to put everyone on notice that the property is subject to a mortgage lien. By providing notice of a mortgage liens lenders can be assured that the homeowner...
What Is An Escrow Holdback?
During the final stages of buying or selling a home generally the homebuyer will be performing a final walkthough and the home sellers should be in the final stages of moving everything out of the house. If certain repairs were not completed prior to closing or maybe the seller has been slow in moving out there are options that can be used to help protect the homebuyer and make sure the home seller completes the requirements called for by the contract. One of the options a homebuyer may be able to use is called an escrow holdback. This article looks at the escrow holdback and some of the situations where it may make sense to use it.
Escrow Holdback Explained
An escrow holdback is simply money held from a real estate transaction in an escrow account. The escrow account used is usually owned by the title company since they are a neutral party to the transaction. So for instance a home is being purchased by homebuyers for $200,000 dollars. The home sellers owe $150,000 on the mortgage and are expecting to receive $40,000 directly back to them (after commissions and closing costs). So in a transaction without any escrow holdback the title company will transfer $150,000 of the total sale amount to the mortgage company who holds the mortgage on the property being sold and then will provide the remaining amount from the sale to the sellers.
If the sellers were not able to complete some agreed upon repairs prior to closing, have not fully moved out of the house yet or caused some damage to the home while moving out for which they have agreed to...
Does An Open House Make Sense When Marketing A Home For Sale?
In the past when there was no Internet for marketing homes the open house was a great way to get many people into a home at one time in order to help get it sold. Advertising in local newspapers could be expensive so not many pictures of the home would be able to get published. Advertising in local magazines also would be expensive but would be generally slow since magazines published usually no more than once a month. As a result many agents would advertise their open houses or host open houses at one time in one neighborhood in order to maximize on homebuyer foot traffic.
Since the internet has taken over as the go to source for home marketing the use and need of open houses has declined greatly. This article explores why open houses are no longer commonly used and some reasons why homeowners may want to completely pass on it.
How Are Homes Marketing On The Internet Today
With over 90% of home shopping starting online it makes sense for the home seller and their agent to focus on the place where most of the buyers will be looking. Starting with a clean and de-cluttered house the pictures of a home online are what will make or break a sale. Clean freshly painted rooms that show the space available in a home make for great photographs that allow homebuyers to see the potential of a house. Using great photo gear to help take great photographs will translate into interested buyers so make sure the photographs are taken during the best time of day with the best quality equipment in order to show the features of a home.
Video is another huge selling point for many homes especially...
Buying A Home As A Single Parent
Buying a home can be a challenging task that requires plenty of attention to detail and the ability to research homes, neighborhoods and schools. There are many different housing styles, different locations and more to consider when looking for a home. Add to that being a single parent and there is a lot more that one person has to handle on their own in order to make sure they get the right home that meets all of their family needs. This article explores some tips and ideas for the single parent to help make their home buying decision easier on them and their family.
Hire A Realtor
First and foremost hiring a Realtor will set you on the right track towards finding a home. The Realtor or real estate agent helps home buyers and sellers on a daily basis with their real estate needs. It is their job to know local markets and to help get homebuyers the information they need during all crucial stages of the home buying process.
Don’t get offended though when the real estate agent starts asking for you to get pre-approved for a mortgage. While you may have a price range in mind for a home or have an idea of what monthly payment you can afford, until you go through the pre-approval process you will not know if your assumptions are correct which could lead to a big disappointment if you find a home you like and find out it was out of your mortgage pre-approval range. A mortgage pre-approval is a deep dive into your credit and income history. You may have a great job but not a very long credit history which could hinder your getting a mortgage for the amount you can truly afford. Or there...
Great #RealEstate People To Follow On Twitter
As much as some like to claim Twitter is no longer relevant compared to other social media platforms most active users know that is far from the truth. Twitter still has many active users with plenty of information to share. This list represents some of the top real estate related bloggers, social media experts and all around great people and companies to follow on Twitter. Not only are they sharing their own informative well written content they are sharing great real estate articles, tips and tricks from many different sources thus truly embracing the social nature of Twitter. If you are not following any of the accounts below be sure to add them to your feed and you won’t be disappointed!
1. Bill Gassett. One of the top 5 RE/MAX agents in MA for the last decade. Social media/SEO junkie. Maxrealestateexposure.com
2. Kevin Vitali. Tewksbury MA- Realtor. Serving the Merrimack Valley home buyers and sellers. MerrimackValleyRealEstate.com.
3. Chris & Karen Highland. Frederick MD Realtors, Agent/Owners with eXp Realty. FrederickRealEstateOnline.com
4. Michelle Gibson. Michelle...
Great Tips For Improving The Curb Appeal Of Your Home
Curb appeal generally means how a home looks while seeing it from the street. A home’s curb appeal is one of those things that a home has or either does not have. While technically there can be an in between status of curb appeal where it is not completely bad that is not what makes buyers stand up and take notice. Homes with great curb appeal present well in photographs which do grab the attention of homebuyers online as well as in person when they come to visit. This article will help you learn how to boost the curb appeal of your home so everyone takes notice.
Cleanliness Of The Landscape
One of the easiest things to do with your yard to improve your home’s curb appeal is make sure it is clean. What that means is making sure no dead plants or trees are present anywhere in the yard. Trash as well should be picked up otherwise the home may have more of an abandoned property look than one of a lived in and cared for home. Often times the trash may not necessarily be the homeowners doing as based on the traffic from the street others may throw trash onto the property for “convenience” sake. Regardless of who put the trash in the yard in the first place the homeowner still should strive to keep the yard clean as that adds to the appeal of a home.
Especially right after winter time or during periods of drought grass, bushes, shrubs, plants and trees may die out. Leaving the dead vegetation in plain view is a major detractor of curb appeal. Potential homebuyers may think since the homeowner did not care enough to clean up their yard how must the rest of the home look and would be more likely...
4 Things That Can Sap Your Cash Flow And Your Wealth
There are a number of factors that can affect your cash and wealth position. One of the big things that can have a great impact on your cash and wealth is real estate. Real estate can both positively and negatively affect your ability to build wealth and can be a slow grind on your finances if you are not careful. It is your wealth that will sustain you when the economy is down and will keep growing when the economy is great. This article explores some of the major expenses that can quickly sap your cash flow and hurt your overall wealth position.
What Is Wealth And Cash Flow
Cash flow is a term often used in real estate investor circles to describe how much money a rental building is bringing in after all expenses have been paid. Cash flow for an individual is similar in that it is how much money are you saving at the end of the month after all bills have been paid. Wealth is the accumulation of resources including cash. So if you do have a positive cash flow at the end of the month overtime as you accumulate that cash (whether as plain old cash, investments in stocks, bonds, real estate or something else) you build wealth. Now keep in mind if you have more debts than you have cash or assets that does not necessarily mean you have much wealth. The type of debt is also a big factor. More credit card debt is not a good thing. Debt that was used to purchase investment real estate is not a bad thing so long as the cash flow from the real estate can keep up with all the expenses.
Things That Can Destroy Your Cash Flow And Wealth
Owning More Home Than You Can Afford
While the mortgage lenders...
Tips For Hiring The Best Contractor For Your Home
When it comes to home improvement or home repair hiring the right contractor can mean the difference between getting a quality final product or possibly losing money and having to find someone else to complete the work. Some unsavory contractors are more than ready to collect money upfront and promise to complete the job only to never show up again. Other contractors may stick around to do the work but after everything is completed the quality of their workmanship is revealed to be not that great. So how are homeowners able to find the best contractors who will do a good job and won’t take the money and run? This article explores the topic in detail.
Determine Your Actual Needs First
Determining your actual needs first can help you narrow down the type of contractor you need to get in touch with. Does your home need plumbing work like installing a new toilet or are you looking for new lighting to be installed in your kitchen? Sometimes the work one contractor does will also require another contractor to fix up. For instance many electricians will need cut into drywall in order to run wires, switches and fixtures. Once done most electricians are not able to make the drywall repairs nor offer painting services so that will require a call to one or more additional contractors. Similar would happen in the case of a plumber who had to cut into drywall in order to access the pipes behind the wall, they may not have the skill set nor desire to get into drywall repair.
What Is A Notice Of Sale?
Homeowners who fall too far behind in their mortgage payment may find a Notice Of Sale or Notice Of Sheriff’s Sale mailed to them or posted on their front door. Often times the mortgage companies will attempt to contact the borrower and make arrangements for the mortgage to be paid back with some different terms that make it easier for the borrower to pay. On the other hand some lenders due to lack of ability or resources do not do or say much of anything until the late payments are sufficient enough to file for foreclosure which results in the Notice of Sale of Notice of Sheriffs Sale. Even when such notices are delivered to a homeowner there still may be a few options homeowners can consider in order to prevent their home from being sold out from underneath them.
What Is A Foreclosure?
Foreclosure is a step lenders take to obtain possession (title/ownership) to a house so they can sell the home and attempt to recover money owed to them under a mortgage. Foreclosures happen generally only after the homeowner has stopped paying on their mortgage and has not attempted to work out something with the lender. As the foreclosure process is expensive for both the lender and the homeowner it is better for the homeowner to try and sell the home well before the foreclosure process has started. With easy credit and easy money for buying a home sometimes homeowners get in over their head and end up in a house poor situation. Especially where some major repairs have been deferred and the homeowner cannot maintain the condition...
Tips For Selling Your Luxury Home Safely and Securely
When selling a luxury home there is the chance you will get people who are interested in the home that are not qualified nor are they interested to buy the home but instead due to curiosity have a desire to tour what a luxury home actually looks like. Even more so if the owner is a local or national celebrity the desire becomes even greater for those who wish to see how that celebrity lives rather than any true interest in buying the home they live in. This article explores some of the ways luxury homeowners can help ensure those who come to see the home have an actual interest in buying the home and can afford it.
Require A Mortgage Pre-approval Letter Prior To Showings
This is one of the sure fire ways to make sure only those who want to see your luxury home can actually afford to purchase the home if they like it. While pre-approval letters are not 100% guaranteed in that buyers have been known to lose their pre-approval status prior to closing based on things they do they do serve as a good guide that the buyer who has a pre-approval letter for your million dollar luxury home can indeed afford to purchase it and therefore should be allowed to view it. This will keep non-serious buyers and those just wanting to tour luxury homes for the sake of saying they have been in a luxury home from wasting a home seller’s time. Home sellers have to go through a lot of preparation work in order to make sure their home is presentable to buyers so that the buyers leave impressed. Getting a home ready for buyers who are touring the home for curiosity sake and have no interest...
How Is The Cincinnati and Northern Kentucky Real Estate Market Doing For Residential and Investment Properties?
The real estate market in general all over the United States has been experiencing gains with houses in and around many large cities selling at a quick pace once they hit the market. The Cincinnati and Northern Kentucky markets are no different and have been seeing rapid sales of homes in areas where demand is high. Residential and investment property have been seeing brisk sales and price gains over the past few years. Even with the increase in mortgage interest rates the market has not slowed down much.
Residential Real Estate In The Cincinnati and Northern Kentucky Markets
The Greater Cincinnati, Ohio and Northern Kentucky markets generally go hand in hand with each other and many residents of Northern Kentucky commute daily into Cincinnati as well as vice versa. The south east portion of Indiana is also considered part of the Greater Cincinnati tri-state area and is connected to the region by the I-275 loop which goes through all three states. On the Indiana side homes tend to have more land available there and the area is not as densely populated as the Cincinnati and Northern Kentucky areas are.
The Greater Cincinnati, Ohio consists of Hamilton, Clermont, Warren and Butler counties. In Northern Kentucky Boone, Campbell and Kenton counties are the northern most counties closest to Cincinnati. Due to more land availability new construction homes are more readily available in the Clermont, Warren and Butler counties as well as in Boone and Campbell counties. Hamilton and Kenton county being more established counties don’t have as much land available...
Common Expenses New Homeowners Need To Plan For After Buying A Home
Many first time homebuyers in the excitement of getting their first home may not be aware of some common expenses they can expect with the purchase of a home and could neglect to budget for that. Some of those expenses like closing costs are an absolute requirement that must be paid otherwise the homebuyer will not be able to close on their home and move into it. Other expenses may vary but do need to be considered by the homebuyer so that they have the money ready to do certain things when the time comes.
One major expense of purchasing a home, and that is usually due right up front upon the final transfer of a home, are closing costs. Closing costs represent the fees associated with getting a mortgage and registering the new house in the buyer’s name. If the buyer is using a low down payment or zero down payment mortgage they may be in for a surprise if they don’t have enough money to pay for closing costs. Even with a zero down payment mortgage (VA, USDA) the homebuyer may be required to bring a check to the closing table in order to pay for the closing costs. If the buyer cannot pay for the closing costs they cannot complete the sale for the home.
The money used to pay for closing costs also generally must come from income sources of the homebuyer and cannot come from credit cards or other forms of loans. Gifts of money from parents or other relatives can be used to pay closing costs but the lender will generally want to trace the source of the funds well before closing date...
What Does It Mean That A Home Is Available For Short Sale And Should You Buy Such A Home?
Ever run across a home listed for sale and the words in the marketing remarks mention short sale? Often times there is no room to explain what a short sale is or what it involves so homebuyers may be left confused by the term and unsure if they should consider buying a short sale home or not. This article explores what a short sale home exactly is and discusses whether homebuyers should consider purchasing a home that is being sold as a short sale.
What Does Short Sale Mean With Regards To Selling A Home?
A short sale is the process whereby the mortgage lender agrees to allow the homeowner to sell their home for less than the amount that is owed on the mortgage. A mortgage lender does not have to agree to any sale of home unless they are getting paid in full everything owed to them. Mortgage lenders generally have a first position lien (generally the highest priority in rank unless taxes are involved) meaning they must be paid off first with the proceeds from any sale.
A homes value may be less than the amount of the mortgage due to factors such as a decline in the overall value in a neighborhood, the homeowner owing more than the home is worth (this is not as common as it was in the past when lenders allowed 125% mortgages but can happen with multiple loans like a regular mortgage and home equity loan), a condition issue with the home or the land, lack of upkeep or something else. Where the homeowner plans up making up the difference between a ...
What Sorts Of Environmental Issues Can Affect Your Home
When you own real estate you own a piece of land that really cannot be moved. As a result when certain environmental hazards present themselves it is not as easy as jumping in a car and driving off to avoid the hazard. Instead with land being locked in place it is subject to whatever happens to come by. As a result environmental issues can have a great impact on real estate affecting everything from its value to its livability. This article explores some common environmental issues that can affect real estate and what if anything can be done about it.
While most don’t think of air pollution as something that can affect land it can. Directly air pollution can affect the health of those living on the land and can affect vegetation on the land as well. If someone wanted to farm the land yet the air pollution resulted in chemicals being deposited on the land (think airborne soot or aerosolized droplets of chemicals that eventually settle on the ground) could have a huge impact on any animals or vegetation on the land used for farming. The quality of the soil and the health of any farms animals will slowly go down over time.
Unfortunately there is no cost effective way to avoid air pollution with regards to real estate. Humans could attempt to seal up their home air tight and install air filtration systems so that outdoor air pollution effects are minimized but the expense to do so would be quite high. Additionally the residents would be forced to confine themselves indoors almost 24 hours a day in order to avoid air pollution effects. ...
Why Do Homes Return Back To The Market After Having Accepted An Offer
Once a homeowner has accepted an offer on their home there is still a process to undergo before the actual transfer of ownership takes place. There are a number of contingencies that must be met prior to closing where the actual ownership of the home is transferred to the buyers. Once an offer is accepted the status of the home in the Multiple Listing Service is usually changed to “Pending” to reflect that an offer has been accepted and closing is waiting on certain things to happen before it finally can close. This article explores some of the common reasons a home may fall out of pending status and come back to the market for sale.
One of the more common reason a home falls out of contract is due to inspection issues. A majority of homebuyers opt to have a home inspection performed after an offer is accepted. A home inspector will inspect a home to check for any major issues and provides a report to the buyers detailing the overall condition of the home. Some of the common major home inspection issues uncovered can cause a buyer to walk away from their purchase if they feel the cost of dealing with the issues are too high and/or they could not come to agreement with the seller to either have the seller make repairs or reduce the price.
In some situations like foundation or structural issues, roof in need of replacement, mold issues or more homebuyers may feel like the costs of dealing with such an issue is too much for...
Real Estate Investment Scams To Be Aware Of
With interest rates as low as they are and mortgages easy to obtain to buy real estate many people are considering real estate as an investment. While many invest successfully in real estate when they work with the right team there are others who are not so fortunate and may end up losing quite a bit of money due to scams that seek to steal money from real estate investors. This article looks at some of the common real estate investment scams and provides advice and guidance on how to avoid them.
One of the more common scams involving investment real estate are lending scams. Due to higher requirements for down payments and limited ability to finance investment properties that need rehab with conventional mortgages many real estate investors turn to alternative lending resources in order to seek financing. Many of these alternative lenders may do not have the same standards for property condition as a conventional lender would and are willing to offer lend additional money with the loan for which the investor can improve the property and thereby improve the value of the property as well. Often times these loans come with higher interest rates and shorter payback periods than conventional mortgages will offer.
Scams with these types of loans are more frequent since a majority of these lenders do not have to be licensed and are not vetted by any state or national agency since the money they lend is not a conventional mortgage loan that has licensing requirements. Sometimes called private money lenders or hard money lenders these lenders use money from private individuals to fund the loans they are making. While there are many legitimate private money lenders there...