Essentials for Spring Shopping 20154/6/2015
Spring has finally sprung for 2015. The daffodils are in full bloom. The trees are budding out to start their journey for providing us with summer shade from the sun. The kids can start to count the days till summer vacation begins. What are we missing. How a about a new home!
Interest rates are still incredibly cheap. I have a client now locked into 3.75%. $125,000. can be bought FHA with $600. a month base payments. Sure add property tax and insurance and the payment goes up some. Maybe $200.00 a month so the bank can escrow your annual taxes and insurance payments and have the amount saved to pay them for you.
There are still so many renters out there or move up buyers (buyers who bought something cheap during the real estate black hole years) who would serve themselves well to take advantage of this window of opportunity. The interest rates are still low and the housing prices typically have still not risen to the prices of 2007. There are programs out there for people to buy with no down payment! There are even first time home buyer loans that pays 3% of your loan for you! You should have money set aside for a property inspection when you find your dream home and the cost of the appraisal and credit report for the bank. If we find a home that is priced well, we can even add the closing costs into the offer on the house which means you could get a REFUND at closing to give you back the inspection and appraisal monies you paid up front. What a great deal!
Home ownership is not for everyone! You may feel you are not ready to settle down. You are thinking you will leave this area in the next 5 years. You may be at a place in your life where taking care of a house and a yard is not where you are right now. Do not buy!! You do not want to wind up in a position where you need to sell shortly after you buy. If you pay market value for your home and then need to sell shortly after, its just like a car, you could be upside down. When you sell, you typically have real estate brokers who charge a % fee to set your home up in a local Multilist service so all real estate agents have a chance to sell it after seeing it online, and all the other things a Realtor needs to do to sell your house for you. The fees are typically split between the selling agents broker and the buyers agent broker. Realtors are self employed and pay all their own expenses, so the brokers pay their agents a commission out of the commission you pay them.
Now, the most important part. You need a trusted adviser to guide you and advise you through this process. An average homeowner may buy 4 houses in their lifetime and become pretty experienced in the process. Every deal, home and circumstance is different. You should have an experienced agent to walk through the process with you. Having a third party person that only looks out for you and your interests is a plus. For the seller that person takes care of the the paperwork, marketing and negociating for the seller. For the buyers, having their own agent is money is their pocket. Most buyers drive around, see a house they like and call the phone number for the Realtor whose name is on the sign. If you are a buyer calling that agent or walking into an open house, you are generally talking to the SELLERS agent. They are under contract with the seller to sell their home and keep the sellers personal business a secret. A new home buyer may think that front yard sign agent is SO nice to you, and they going to look out for you and get you the best deal they can. Not true! They are under contract with the seller the get THEM the best deal they can. They are also obligated the share all the information you tell them with the seller. Example: " How about if we offer them $90,000? We can go up to $100,000. but first lets see if they will take $90,000." Here is a trade secret. Ready.....if you are a buyer you can have your own agent that just represents only you in a transaction for FREE! The seller is the one who pays the Realtor fees to the selling agents broker and the buyers agent broker!! Your experienced buyers agent will give you all the advise they are allowed to give. Previous sold sales prices of the properties, average area sales prices, and a multitude of other things like pointing out potential issues a house may have, or a list of trusted service providers like local lenders. An experienced agent usually knows a good lender professional that will complete your transaction with the eagles eye it deserves. All lenders, as in any other profession, are not created equal. I find internet lending to be the most difficult and sometimes the least honest. We find in our area we are very fortunate that our closing costs are typically kept to a minimal. We don't see a bunch a "junk" fees around here. Some lenders charge you for things that they have to invent a name for to have something to call it. Ex " Distributional Assignment Fee" LOL
Well, thats it for today. Off my soap box I jump. Remember I am not wanting to become your Realtor for one deal. I want to be the Realtor you refer your family and friends to for LIFE!!