Tag Archives: First-time Home Buyer

10 Things to Check Before You Buy a Home

Reposted from ApartmentTherapy.com – 10 Things to Check Before You Buy a Home

We’ve learned the hard way that there’s some very important things that should be checked before signing the papers to buy a new home. Sure you can have someone do an inspection and look over the place to make sure you’re termite and flood damage free, but these things fall into a different category — the immediate honey-do list!

Even though there will always be cosmetic changes to make to a new home, trying to avoid costly repairs upon first moving in is always a bonus. Being able to save that money for the dining table of your dreams, or even just for gas and groceries can be extra beneficial. Here’s a few things we suggest checking before you sign the papers and inherit all of the previous tenants past problems.

1. Check The Drains: This might sound silly, but we’ve had two homes with the same issues in the last several years. Somewhere between the house and the sewer line, there’s a backup. Usually tree branches or a collapsed pipe, but either way, it’s hard to spot unless you run a load of laundry, fill up the tub and sinks and let them all attempt to drain at the same time.

2. Open All The Windows: Replacing windows isn’t fun and it isn’t cheap either. Open them all to find out if they stick, are stuck or just plain old won’t open.

3. Turn On All The Faucets: Although changing out faucets isn’t exactly rocket science it’s always a pain to lay under a cabinet and reach for the sky with funny tools to get things removed. Just check to make sure they all work before buying to eliminate the back ache.

4. Light A Fire In The Fireplace: Even though chimneys are usually installed by professionals, that doesn’t mean they’re always in pristine shape. Cleaning them is as simple as a phone call to a local chimney sweep, but finding out if all the fireplaces in the home draft correctly is another.

5. Taste The Water: This lesson is always learned the hard way. Even if your city has great water, your pipes might be old enough that they’ll send a little extra something out of the tap and into your glass. Knowing up front if you’ll need to install a whole house filter or invest in a few Brita pitchers is always helpful.

6. Flush The Toilets: Knowing that all the toilets in the home can handle toilet paper is a bonus. Although they’re easy enough to replace or fix, finding ones that flush well are a bonus. If you’re dissatisfied they could issue you money back to make the replacement in order to get you to sign on the dotted line!

7. Open The Electrical Panel: A clean and labeled panel is a happy panel. Something that looks like squirrels got up inside can signal trouble. Look for loose wires or ones that simply don’t connect to anything. It could signal that there’s live wires inside the walls!

8. Turn On The Heat/Air: Knowing that both of these things work prior to actually needing them can be a serious bonus. Check to make sure they blow their respective temperatures in addition to just turning on.

9. Pull The Carpet Back: Before you move in, you’ll want to find out if there’s hardwood floors and also any mold or mildew under the carpets. Look for the lowest side of the room and if possible pull a corner back. Many homeowners will have a section of carpet removed in a closet to allow you to see the condition of the floors below.

10. Moisture: Although most home inspectors will sniff this one out for you, look for signs of dampness. Even if the walls aren’t apparently wet, look for things like dehumidifiers, bucks of silica or other things that grab moisture from the air and keep it at bay. If the home owners are smart enough to move these things, look for places near outlets that look clean (or leave a dust ring) where something like this might have sat.

Do you have one to add to the list? Share your tip (and story behind it) in the comments below!

Avoid Foreclosure with Short Sales

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

* A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
* A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

* Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
* Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
* Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

For more information on foreclosure solutions visit our website at www.batonrougeforeclosurehelpnow.com

"When is a Good Time to Buy?"

It is a Great Time to Buy!

Owning a home is an investment in your future.  A home not only provides financial benefits but it also provides shelter and security to families.  Here are some of the reasons why now is such a good time to buy:

Motivated Sellers and Inventory – In the Baton Rouge, LA area affordability is high and there is an abundance of inventory.  There are many options out there for buyers and sellers who are willing to negotiate and work towards a win-win situation that works for both parties.

Home Buyer Tax Credit for first time home buyer up to $8,000 until April 30, 2010.  Also expanded to include a credit up to $6,500 to home owners who have lived in their primary residence for 5 of the last 8  years and purchase a new or existing home between November 7, 2009 and April 30, 2010.  Other factors affect the size of the credit and purchaser eligibility so talk to your real estate agent or visit www.realtor.org/home_buyers_and_sellers , and consult a tax expert for full details.

Mortgages are at Historically Low Rates for buyers who qualify.  Go to ww.FreddieMac.com and view the primary mortgage market survey for more information on the latest rules.  In addition, low interest rates, coupled with recent price declines, give people looking to upgrade a unique opportunity to take advantage of market conditions.

So why wait?  It is a great time to buy!

"Should I Sell First or Buy First?"

Homeowners who are planning to make a move wrestle with the dilemma of how to get the home sold so that they can purchase a home.  Which comes first depends on the market — is it a buyer’s or a seller’s market — and your personal motivation.  However, for most sellers and buyers, the smart thing to do is to sell before you buy.  Currently the Baton Rouge real estate market has several months of inventory that is not selling right away and buyers are wanting to negotiate.

Let’s first talk about what would be some good reasons to sell first and then buy:

Negotiate Your Terms

First, by selling before you buy, you get to take your time and do not necessarily have to take the first offer that comes along.  You have the ability to negotiate terms without as much pressure since you have a place to live.  It is your home.  Also, since you are not under pressure to sell, you often obtain a higher sales price because the buyer does not think you are desperate.

Closing Contingent on New Purchase

When you do get a buyer for your home, make sure you negotiate that the sale is contingent on you closing on your new purchase.  That way if you can’t find a home to buy, you are not under any obligation to sell your home.  You may be required to put a time period of 7-21 days for you to locate a replacement home or cancel the contract.

Renting After Closing

If you want to wait for that perfect home, another alternative is to opt to rent after closing.  If the buyer does not require immediate occupancy, you might want to request to rent back your home for the amount of the buyer’s new mortgage payment.  One other choice is to move out, put your belongings into storage and rent a furnished, short-term apartment.

An Offer You Can’t Refuse

If the deal is too good to pass up, it may be especially good to buy before selling your home.  There could be a number of reasons that the sellers are extremely motivated to sell, and you might want to be the first offer before word spreads across town.  In this case it makes sense to buy before you sell, because the money you make walking into the deal is worth making double payments until your home sells.

If a seller is not willing to accept a sale-contingent offer, you may want to then consider if your home could sell soon enough for you to be able to close on the new purchase or look for alternative financing.

Each sale faces different circumstances and it is not always easy to know what is the right choice.  If you gather enough information, you can be comfortable in negotiating your contracts to state what is in your best interest.