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Buying Your First Home? Here’s What You Need to Know

By Michelle Fradella, Broker – Pinnacle Real Estate Services, LLC

You’ve made the decision to make one of the largest investments you’ll ever make in your life-buying your first home. You’re excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?

The homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before making the plunge.

Getting a mortgage-Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.

Mortgage Payments-The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a real estate professional, you can calculate out how much they you be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.

Down-Payment-The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. Your real estate professional will be able to explain the different options available to you.

Closing Costs-First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 10 percent of the home sale amount is not unusual. Add that to the down-payment and you’ll have quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.

Making offers-Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

Condition of the Home-Buying a “problem” home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your real estate professional may advise you to hire a home inspector before making a serious offer. That way, you know what you are getting into.

Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.

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20 Steps to Help You Sell Your Home

  1. MAKE THE MOST OF THAT FIRST IMPRESSION – A well-manicured lawn and shrubs, and a clutter free porch welcome prospects. So does a freshly painted or a freshly scrubbed front door. If it’s autumn, rake the leaves. If it’s winter, make sure there’s no ice on the sidewalk or steps. The fewer obstacles between prospects and the true appeal of your home, the better.
  2. INVEST IN A FEW HOURS FOR FUTURE DIVIDENDS- Here’s your chance to clean up in real estate. Clean up in the bedroom, the bathroom and the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home looks than hear how great it could look with a little work.
  3. CHECK FAUCETS AND BULBS – Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned-out bulbs leave prospects in the dark. Don’t let little problems detract from what is right about your home.
  4. DON’T SHUT OUT A   SALE – If cabinets or closet doors stick in your home, you can be sure they will also stick in the prospect’s mind. Don’t try to explain sticky situations when you can easily plane them away. A little effort can smooth the way towards a closing.
  5. THINK SAFETY – Homeowners learn to live with all kinds of self-set booby-traps: roller skates on the stairs, festooned extension cords, slipperythrow rugs and low-hanging overhead lights. Make your residence as non-perilous as possible for visitors.
  6. MAKE ROOM FOR SPACE – Remember potential buyers are looking for more than just comfortable living space. They are looking for storage space too. Make sure your attic and basement are clean and free of unnecessary items.
  7. CONSIDER YOUR CLOSETS – The better organized a closet, the larger it appears. Now’s the time to box those unwanted clothes and donate them to charity.
  8. MAKE YOUR BATHROOMS SPARKLE – Bathrooms sell homes so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, use your best towels, mats and shower curtains.
  9. CREATE DREAM BEDROOMS – Wake up prospects to the cozy comforts of your bedroom. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
  10. OPEN UP IN THE DAYTIME – Let the sun in. Pull back your curtains and a drape so prospects can see how bright and cheery your home really is. Be sure your windows are sparkling clean too.
  11. LIGHTEN UP AT NIGHT- Turn on the excitement. Turn on all your lights, both inside and out, when showing your home in the evening. Lights add color, warmth, and make prospects feel welcome.
  12. AVOID CROWD SCENES – Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they are likely to hurry through. Keep the company present to a minimum.
  13. WATCH YOUR PETS – Dogs and cats are great companions, but they are not when you’re showing your home. Pets have a talent for getting in the way. Do everybody a favor: keep your dog or cat outside if you can, or at least out of the way. Also, be sure your home does not have any pet odor that could make the buyer feel uncomfortable.
  14. THINK VOLUME – Rock ‘n roll will never die, but it might kill a real estate transaction. When it’s time to show your home, it’s time to lower the volume on the stereo or TV.
  15. RELAX – Be friendly, and don’t try to force conversation. Prospects want to view your home with a minimum of distractions or interruptions.
  16. DON’T APOLOGIZE – No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory remark about your home, let Michelle handle the situation.
  17. KEEP A LOW PROFILE – Nobody knows your home as well as you do, but Michelle knows the buyers. She will know what they need or what they want. Michelle will have an easier time articulating the virtues of your home if you stay in the background.
  18. DON’T TURN YOUR HOME INTO A SECOND-HAND STORE – When a prospect comes to view your horne, don’t distract them with offers to sell your furnishings. You may lose the biggest sale of all; that is, your home.
  19. DEFER TO EXPERIENCE – When prospects want to talk about price, terms and conditions, or other real estate matters, let them speak to the expert, Michelle Fradella. That’s when a good agent earns his or her pay by putting highly effective negotiating and training techniques to use.
  20. HELP MICHELLE – Michelle will have an easier time selling your home if showings are scheduled through the agent’s office. You’ll also appreciate the results. If a prospect contacts you directly, get their name and number and give it to Michelle.
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Can You Afford to Sell your Home?

by Michelle Fradella, Associate Broker – Keller Williams Realty Professionals

With the market changing drastically over the past few years, there is a new question that must be asked – “Can you, Mr/Mrs Seller, afford to sell your home?”  Now this question may be a bit alarming to some people, but the fact of the matter is sellers are finding that the market is not able to sustain the amount of money they owe on their homes (if they have refinanced in the past 5 years), and they may not be able to get enough for their home to actually close without bringing money to the table.

Many sellers may have heard about, and think they are in the position to consider a “short sale”, but unfortunately not everyone realizes the intricacies of doing one.  It’s important for a seller to notify their Realtor AT THE TIME OF LISTING, that they will come short of the amount they need to pay off their loan, and will need to ask the lender for the possibility of a short sale.  Keep in mind, however, that the lender is never, in any way, obligated to actually take less than what is owed on the house, and that there are specific circumstances that must be present, in order for this to be considered.

A short sale is not something that can be handled overnight, either.  The process will all depend on many variables that are not the same in each case.   A short sale can take as short as a few weeks, or a few months, to over a year to get approved.  A buyer may not be willing to wait for you to get that approval, or their lender may not let them wait, either.

Another important factor to know is that (even if you are in the process of working a short sale with your lender, and have a buyer ready to buy) if you don’t make your regular payments to your lender, they can, AND WILL, foreclose on your home.  If you aren’t able to make the payments during this time, your Realtor needs to know this, so they can also be in touch with the Foreclosure Department for your lender, and communicate with them constantly to assure that the house isn’t taken in foreclosure.  It’s standard practice that the foreclosure department and short sale department of a lender do not communicate with each other, and things can go wrong very quickly.

When putting your house on the market, you have to disclose to all Realtors and parties that your home can only go to closing if the lender approves a short sale.  You will also need to get all the contact information for your lender to your Realtor so they can be in constant contact with the lender to assure that things are moving in the right direction.  Be aware that not all Realtors are experienced in the intricacies of short sales.  It’s very important for your Realtor to know and understand the process, to be able to assist you in the best way possible.  Look for a Realtor that has the “SFR” designation (Short Sale and Foreclosure Resource).

Remember to always disclose to your Realtor, up-front, what your true situation is, and be prepared to be in the process for the long haul.

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How To Avoid The Most Common Mistakes Made When Buying A Home

Buying a home is one of the most important and significant financial decisions that most people ever make. And because of the large sums of money that are involved, there are definite pitfalls and problems that you want to do your best to avoid as you make your decision.

One of the most common mistakes that many home buyers make is not getting pre-approved or pre-qualified for their mortgage loan in advance of starting their home shopping. As a result, if they put in an offer on a home at the same time that another prospective buyer makes an offer, and that buyer has been pre-qualified, the other buyer will almost always get the house because of having their financial arrangements already in order. So avoid this mistake by arranging for your mortgage loan in advance.

Another common mistake that is made is not enlisting the help of a qualified realtor in the home buying process. Buying a home these days is becoming more and more complex and involved. So having your own realtor who is looking out for your best interests and is knowledgeable about all the real estate requirements for your area can save a lot of headache and hassle.

Sometimes home buyers also rush into buying a home too soon. So its very important to take your time in the buying process, and not allow yourself to feel as if you are under pressure to buy a particular home quickly. New homes go on the market all the time, so be patient and you’ll be able to find a home you want, at the price you want, soon enough.

The opposite of that scenario can also be a big mistake. There are some home buyers who have such stringent requirements for their dream home, that they often pass up excellent homes that are very good bargains simply because their demands are unreasonably high. In a rising market, this can often cost them very dearly in the process. So although you may have very definite ideas about a home you would like to purchase, try to realize that some small compromises are usually necessary when buying a new home.

Sometimes home buyers get carried away emotionally and become attached to a home that is actually out of their price range too, and then saddle themselves with a huge debt that is difficult for them to pay. Most often financial institutions will help try to prevent such a situation, but buying restraint needs to start with the home buyer first. A good practice is never to even look at a home that falls outside of your affordable price range to begin with.

Whenever you are seriously looking at any home, be sure to inspect it thoroughly before you agree to the sale and sign the papers. It’s usually best to hire a quality home inspector on your own to go through the property and give you an unbiased assessment of its condition. If major problems are found, it can save you a lot of money by making this small investment.

One other common mistake that you want to avoid is not being aware of all restrictions that may be placed on your property by local zoning laws or homeowners associations. You may have specific plans for improving your property after the purchase, but you need to make sure that there are no restrictions on the plans that you have in mind before you buy.

These are some of the more common mistakes that homebuyers have made in the past that you can learn from. So before you buy your next home, review this list of tips and ideas to help make your home buying experience a successful one.

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Home Security Advice When Selling Your Home

When you decide to sell your home, and it’s going to be vacant, you may be thinking of installing an home security alarm system. But before you do, you have to make sure you understand a few things. For starters, the secret code won’t be a secret for long. Whether it’s published on the MLS, or given to all potential buyer’s agents via phone or email, the secret will be out.

Alarms provide protection while your home is vacant or not. But you have to remember that the alarm can actually become a nuisance when instructions aren’t followed, whether it’s the instruction on the listing page stating that the buyer’s agent should call beforehand for the code (and they don’t) or if the step-by-step instructions hanging on the wall directly next to the alarm seem to be written in some other language.

To avoid these mishaps, selling agents can opt to show the house by appointment only, since too many times buyers agents don’t call for the code and the proper authorities are contacted, the alarm company is contacted and eventually the selling agent is contacted. But there are other options too. That’s why you have to decide whether or not the alarm system is actually a good idea.

Here are some tips you can utilize if you don’t want the hassles of an alarm system:

Again, these are just some ideas to help you get through the joys of home selling, with hopefully, less stress. Alarm systems are a great way to secure your home, however sometimes they’re more of a hassle than a luxury.

If you like what you’ve read here about <a href="http://www.homesecurityadvice.com/systems” rel=”nofollow”>Home Security Systems When Selling Your Home visit our website www.homesecurityadvice.com to learn even more!
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