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Pre-Listing Inspections

Posted by on Jan 12, 2021 in Uncategorized | 0 comments

Imagine what happens when there is not a pre-listing inspection. The buyer contracts for the home with a provision for professional home inspection. When it is made, there could be things that the buyer didn’t expect or even, anticipate. If it doesn’t trigger an action to terminate the contract, the buyer will inevitably, ask the seller to make all the repairs. When presented with the buyer’s request, the seller may take the opposite position of not wanting to do any of the repairs. The buyer could accept the property in its...

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Would you move if it was to your advantage?

Posted by on Jan 5, 2021 in Uncategorized | 0 comments

A much-repeated investment strategy is to buy low and sell high. Some people who purchased around the financial crisis of 2010-2012 are poised to make considerable profits. The median home price in America is now $295,300 up from $155,600 in February 2012 which calculates close to an 8% annual increase. The median equity that homeowners have earned during the same period is $140,000. Inventory is in short supply while demand is high which has caused prices to increase. Factors that continue to contribute to the lower number of homes on the...

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Debt-to-Income Ratio Affects Approval & the Interest Rate

Posted by on Dec 29, 2020 in Uncategorized | 0 comments

Debt-to-Income ratio is a tool that lenders use to qualify buyers for a mortgage and is an important factor in determining loan approval. It provides an indication of the amount of debt that a potential borrower is obligated to in relation to how much income they have. Total monthly debts are determined by adding the normal and recurring monthly debt payments such as monthly housing costs, car payments, minimum credit card payments, personal loan payments, student loans, child support, alimony, and other things. By dividing the monthly income...

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Buyer’s Closing Costs

Posted by on Dec 22, 2020 in Uncategorized | 0 comments

Ideally, each party will pay their own closing costs associated with the purchase and the sale of a home, but they can be negotiable based on lender requirements and market conditions. The fees are usually paid at the settlement and will be itemized on the closing statement. Buyers should be aware of them before contracting for a home. If a mortgage is involved, the lender will want to verify that the borrower has ample funds available at closing to pay for them. Buyer’s closing costs can range between two to five percent of the sales...

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Where Did the Assumptions Go?

Posted by on Dec 15, 2020 in Uncategorized | 0 comments

Mortgage assumptions have not been a practical matter for the last 30 years because mortgage rates have been on a steady decline. Even if the seller had a rate lower than the current rate, the new purchaser must qualify to assume the loan. In the case of conventional loans, the lender has the right to increase the rate to the current rate which neutralizes the reason for assuming the loan. This change took place in the early 1980’s when lenders added due on sale provisions so lower rates could not be assumed. FHA and VA loans can be...

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Vacation Home Sales Up 44%

Posted by on Dec 8, 2020 in Uncategorized | 0 comments

Vacation home sales are up 44% year-over-year according to the National Association of REALTORSĀ® based on sales during the July to September period. Not only are the number of units up, but they are also selling faster than in previous years. On a national basis, 72% of existing vacation homes closed in October were on the market for less than one month. The increased desirability and affordability of vacation homes, according to the National Association of Realtors, seems to be influenced by the pandemic and low mortgage rates. The ability...

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Home Inspections

Posted by on Dec 1, 2020 in Uncategorized | 0 comments

A home inspector is another key professional involved in a real estate transaction. Many times, the sales contract will have a provision that allows the purchaser to have inspections made to discover issues that are not readily apparent or have not been disclosed by the seller. It is important to have a qualified individual perform the inspection. Regardless of whether a license is required, buyers should ask about the inspector’s experience, training, years in business and if they are familiar with the area and type of property...

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First Things First

Posted by on Nov 24, 2020 in Uncategorized | 0 comments

If you are making a particular meal for the first time, it is essential to have a recipe so that it turns out the way it should. Knowing the ingredients and preparation can guide you through the process. Buying a home is really no different than making a new recipe. There are certain things that need to be done, many of which should occur in a particular order to save time, money, effort and disappointment. Your first inclination may be to start searching the Internet for homes and schedule some showings or possibly visit open houses. Even...

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More Time at Home

Posted by on Nov 17, 2020 in Uncategorized | 0 comments

We are all spending more time at home and will probably need to continue to do so for a while longer. Depending on the makeup of your family, your home is now a home office, a gym, a virtual classroom and considerably more meals have been prepared in your kitchens in the past six months than normal. Some businesses have undergone a metamorphosis that has shown them that maybe they do not need the big commercial spaces for their employees. They realize that they can be just as productive with their work force offsite which will cut expenses....

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Moving “Down” in an “Up” Market

Posted by on Nov 10, 2020 in Uncategorized | 0 comments

Selling a home and buying a lower priced home that meets your current needs can be to your advantage in an “Up” market like the current one with low inventory. The advantage is that you can maximize the price for the home you’re selling and not have to reinvest it all in your replacement. Just to illustrate the point, let’s say there is a 10% premium in the sales price of a home currently. If you’re selling a home for $750,000, it would be $75,000. If you replaced the home with a $500,000 home, the premium would...

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