The Real Estate Sage

On the surface level, it seems as though you might be getting a good deal when you buy short sale but there are times when you’re better off not doing that. Here are a few reasons why you might not want to buy short sale.

The seller borrowed too much. Some banks allow borrowers to overmortgage their home, especially for appreciating markets. This means that the loan balance of the borrower exceeds the property’s value.

The house is not qualified to be a short sale. Some unethical real estate agents might convince sellers to do a short sale when he or she does not even qualify for a short sale.

Lenders change the condition. There are lenders who have the right to renegotiate the short sale’s terms at the last minute, especially when new laws have been passed or if the market changes. They’ll have a lawyer at their disposal while you, the ordinary buyer, won’t.

There are many websites with experts who claim to be able to protect you from foreclosure, but all they are after is to get the title away from you. Here are some ways you can recognize a foreclosure rescue scam.

The company offers to pay your back payments to your lender for you. There is no such thing as a company who will bail out home owners form their foreclosure by giving money to the lender.

The company lets you take out a mortgage to pay off your lender. If your current lender won’t give you money to refinance your mortgage, other reputable lenders won’t do so either.

The company says that you can remain in the property as a tenant then reclaim the title later on. No other company will let you buy your property back after you deed away your interest.

Paying an upfront fee will make the company stop the foreclosure for you. No matter how much money you pay, there are no guarantees that anyone can stop your foreclosure.

According to statistics from the Joint Center for Housing Studies, there are more single women buying homes today. More than one out of five home buyers are single women, and there are twice the number of single women buying homes than single men. Single women also make up over one third of the growth in real estate since 1994. Women of all ages, sizes, and shapes buy homes because they have the strong desire to own something that’s entirely hers. They also need to be closer to their work, school, or family, or they want more space or a smaller home. So if you’re a single woman who’s looking to buy a house, don’t hesitate because the market is open for you.

People get attracted to short sales because they think they might be getting a good deal. A short sale is when the seller’s lender gets a discounted payoff so the existing mortgage gets released. However, just because a house is listed with short sale terms does not necessarily mean that the lender will accept the offer you make, even if the seller does. Buying homes in short sales is not as easy and there are few that closes in 30 days or less.

Remember that a seller does not have to have stopped making mortgage payments before his or her lender makes it a short sale. The lender can give the property short sale terms if the value has fallen, or if the seller owes more money than what the home is worth. At a discounted price, the property will be more in line with its market value, and not fall below it.

You better move fast once you find the right home. Call your agent and have him/her compute similar sales in the neighborhood and then use this information to base your initial offer. Before your agent put the offer into writing, he should make a way to find the sellers’ motivation. It’s important to know where they are moving, why they will sell the house, how long has the home been out in the market or if they offer another house. And the agent should consider other aspects before writing up a smart offer, like, if the property is still for sale or are there pending offers, if it is a probate or foreclosure sale and how much the sellers owe the loan.

In buying a home you are entering in a legal binding contract that ought to be clearly understood in terms of both the rights and obligations. And today’s real estate contracts are pretty drawn out. Agents are trained to comprehend with the terms and explain the contract together with the reports involved in a real estate transaction. Ask for a sample contract to read over before making a first offer. If you have questions, let your agent explain. It will be usable during the negotiation period. Put everything into writing when it comes to contracts. Every word should be specific and chosen carefully.

The new capital gains law permits home owners to avoid paying taxes on the first $500, 000 of profit if they are married and if they are single, $250, 000. You must have occupying the house for two of the last five years as your primary residence. You are allowed to use the provision as frequently as you like so long as it fits in the two year period. Any gains above the limit will be charged and taxed to you at the new 20% capital gains rate which is down from the current 28%. In the old law you could roll over gains if you bought a much expensive house, if you sold a more expensive house and purchased a cheaper one you are liable to gain tax; but under the new law this provision is no longer in effect.

After house hunting, the final tackle you have to do is getting a loan. The first thing to do is look and find out for the current rates that can be available in the internet, newspaper or from your real estate agent. Then consider the loan options that the lender is offering. You better check how the rates are calculated and if charges are entirely amortized over the life of the loan or if you have to pay points at the end. Decide the best terms for you which should depend on factors such as your income changes. And of course you have to consider the service and its speed. You should not be waiting for approvals and weeks for closing because of slow service.

Appraisal is an objective supported opinion of value and worth of a satisfactorily described piece of property made by an appraiser who has ample knowledge, training and experience to accurately estimate its value. Appraisals are made to reduce property taxes, estate planning purposes, divorce settlements, probate and more. But the most common is to acquire mortgage. The most significant thing you have to put in mind when previewing is to look at the house like it is empty. Look objectively at it, not subjectively. Do not let the furniture and decorations influence you. Houses are often appraised more if it is well maintained inside and out, located near a school district, properties are well maintained and you have permits for everything you’ve done in your house. But these are just the basics.

Before selling the house, you better groom it first before you put it in the market. The way you present it to potential buyers can make a difference. First impression is important so make your house especially your driveway as appealing as possible. It’s what they’ll first see. Make sure the lawn is mowed and shrubs are trimmed. Have some flowers around the yard, the more colorful the better. If the exterior looks great, you need to focus on the interior. Everything should be spotless and if possible, glimmering. Every part of your house should be thoroughly neat and organized, and well decorated for extra points. In short try to look at your house through the buyer’s house and for sure buyers will line up fast in front of you.