Archive for the 'Information for Buyers' Category
Top 10 Reasons to Fire your Real Estate Agent
Kenny Rogers had it right when he sang “You got to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run”. Same holds true in real estate. Not all agents are equal. And not all relationships are happy. Sometimes you just have to end things, and here are 10 reasons why:
1. Believe it or not, years in the business doesn’t always translate to competency. I’ve known some green agents who are absolutely wonderful, and some very ripe ones who are most certainly not. Experience counts. But sometimes you just need an agent who is able to focus in on the task at hand (you!) and one in possession of some simple common sense. This isn’t a “bash the new agent” rant. We were all new once. Make sure that you are first and foremost in your agent’s mind.
2. Market Updates. Are you getting them? Anyone can set you up on an automatic search. Heck, you can do it yourself. What you need is an agent looking out for you! That means culling through the listings on a daily, if not hourly Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #6.
Step #6. Final Walk Through.
Just prior to settlement you should plan to do a “final walk through” at your soon-to-be new property. Why? To play it safe! You want to make sure that it’s in the same shape (or better, depending on your inspection negotiations) it was at the time of your offer. And, if you’ve negotiated for repairs or replacement items, this is your chance to see that that the work was done properly and all items are in good working order. Last reason… stuff happens. Vacant houses can spring leaks, burst a pipe, or god forbid, catch on fire (this has happened a couple of times in my office!).
What happens if something is wrong? Take some pictures. Have your agent call the selling agent. Consult your settlement attorney. In the end, most of these things can be ironed out, but it will take some determination and patience, and it’ll likely fray a few nerves. My mother used to say (an old time agent) “there’s nothing that can’t be fixed by a big ol’ check”. Amen to that. The problem is, checks aren’t allowed as often as they once were. Especially now that a lot of home loans are through the FHA.
For the first 8 or 9 years of my career an FHA loan crossed my path exactly one time. Now they are quite common. For properties being purchased with FHA loans, the walk through should happen 3-5 days prior to settlement if at all possible. Why? If things go wrong on the walk through, you really have to get them repaired prior to settlement, or check with your lender to see if they will allow you to escrow money for the repair. Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #5.
Step #5. Home Warranties.
Home Warranties. What are they? For roughly $450/year a home warranty provides coverage (usually for a nominal service fee) in the event that one of your appliances or HVAC fails. 
Some of the policies even cover roofing and/or swimming pools. In theory, they will either repair or replace your failing item/system. As a new homeowner, already stretched by your new mortgage, this can be a real lifesaver.
Who pays for it? Depends. In a slow market some sellers will offer up a one-year home warranty as an enticement. If, during your inspection, a few items are revealed to be at the end of their life cycle (but still working) this might be something you ask for from the seller- either in the contract or as part of your home inspection negotiations. Or, you can buy it yourself.
Why get a home warranty? I can’t help but think of my poor neighbors who within the first year of owning their house had to replace the washer, the dryer, the AC and the water heater. A warranty would have saved them a bundle. Hindsight is golden. But like all insurance, it’s painful to pay if you don’t ever get a chance to use it.
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
Condo Docs. It’s your responsibility to read them. Boring, but also chock full o’ good information. Avoid special assessment or pending lawsuit properties.
Termite Inspection. Pay a professional.
Homeowners Insurance. Again, required by the bank. I recommend a low deductible. Oh yeah, and never use it for the small stuff.
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #4.
Step #4: Title Insurance
Title insurance is a good thing. It protects you from claims from others on your new house (and these things do happen). But it’s bloody expensive.
One way around the expense is to get a “re-issue” rate on title insurance. If the current owner has been in the house for less than 10 years and they are able to put their hands on the physical title insurance policy, you just might be entitled to a discount. You can save a chunk of change if you are able to explore this route. Doesn’t happen all that often, but it’s out there. It requires the full cooperation of the sellers (another reason to play nice).
There are two parts to title insurance. There’s the bank side- absolutely required (assuming you are taking out a loan on your new property). And there is the purchaser’s side- this is optional. I don’t recommend that you wave this option, but I’ve had clients do so. Why get it? Screwy things can happen in real estate. Long lost divorcees can come out of the woodwork and lay claim to your property. Illegitimate children can wreak havoc with estates. A crazy seller might later dispute the sale. An unrecorded lien on the property pops up. You name it, it has happened. And a few folks have seen “their” homes disappear. For a couple thousand bucks, you purchase peace of mind. Depends what type of player you are.
There are two options available on the purchaser’s side of title insurance. Basic title insurance (we’ll call this option A) is available at X price. What I like to call “souped up” title insurance (option B) is available at a higher price (XX). It has a few more bells and whistles. There are a lot of great reasons for choosing B over A, but best to let the settlement attorneys go into detail. And it’s really important that you have a discussion with them about this prior to settlement. You don’t want to make a snap decision about this at the settlement table. I’d much rather have you digest the information beforehand.
If you’ve got questions about title insurance before you buy, I’d be happy to put you in touch with a settlement attorney to discuss the particulars. Just give me a call.
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Home Warranties. Like all insurance, it’s a crap shoot. Can add peace of mind to purchase.
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
Condo Docs. It’s your responsibility to read them. Boring, but also chock full o’ good information. Avoid special assessment or pending lawsuit properties.
Termite Inspection. Pay a professional.
House Hunting Wish List: hints to help you figure it all out.
What’s on your wish list?
If you’re hunting for a new home, hopefully you’ve figured out what you can spend. Now you need to focus in on what you want… within your budget, of course. Items to consider:
Location (town, subdivision, zip code)- Colonial or ranch? Hate splits? Love, love, love bungalows!
- Walk to Metro, playgrounds, school, dog parks, neighborhood swimming pools, restaurants, etc.
- Minimum number of bedrooms
- Minimum number of baths
- Fixer upper or Move-in condition
- New construction or an older home? Older home with addition…
- School district(s)
- Facing S, W, E, or N?
- Must have items: eat-in kitchen, home theatre, garage
- Deal killers: galley kitchens, main floor powder room, lack of a basement
- Off street parking or driveway
- Stairs to front door or level entryway
- Fenced yard
- Renovated kitchen or baths
- Lot size
- Busy street, quiet cul-de-sac
- Urban, city, woodsy, golf course view…
- Size of house. Big and cavernous or a cozy feel?
- Fireplace (wood burning or gas?)
- Screened porch, deck or patio?
- Neighborhood vs. house. Do you want the neighborhood more than the house, or are house amenities more important?
- House Rich-Money Poor, or visa versa? Some studies have suggested that if you buy into a community that you can easily afford, you will feel comfortable and blessed with abundance, whereas buying into a community that you can only marginally afford will leave you wanting and feeling deprived.
Before heading out to look for houses, take the time to figure out what you want. And share this with your real estate agent. Trust me, we don’t want to waste your time showing you things that just won’t do. And maybe you don’t know what you want… yet. That’s o.k., too. The ultimate goal is to get you to a place where you can recognize what will work, and what won’t. Chances are this will evolve as you get serious about looking. Just be sure to share your new requirements with your agent, and cast out any old ideas that no longer fit the bill.
Remember, too, that it’s really hard to find a house that has everything. It’s all about balancing your priorities. Determine what is truly important, and what is secondary. If you cannot abide by a house with a galley kitchen, understood. But… if the swimming pool in the backyard more than makes up for the small kitchen, well, it’s good to understand that, too.
You will find that the more specific you are in your search requirements the fewer the homes there will be to show. Ease up on some of the secondary items, and you’ll have a lot more from which to choose.
So, what’s on your list? If you’re looking to buy, or just want some friendly advice about real estate, give me a call.
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #3.
Step #3 Choosing a Settlement Company:
You’ve made it through the inspection, financing is chugging along smoothly… You’re on your way! So, now what? It’s time to choose a settlement company. In Maryland and DC the buyer gets to choose the settlement attorney- though keep in mind the settlement attorney will end up working for both the buyer AND seller (no taking sides here!). Their job is to insure the successful transfer of title from seller to purchaser.
Settlement takes place on or before (as long as it is mutually agreed to) the date identified on the contract. Small note: 4 parties need to agree on the settlement time (buyer, seller, and both agents)- so start talking timing early, before calendars get filled up.
Sometimes there is a financial incentive to use one settlement attorney over another (typically because your chosen lender has a deal going with a specific attorney). The discount can be substantial and is usually found as a reduction to title insurance fees. (Note: for short sales, foreclosures and the like, sometimes the ability of a “specialty” settlement attorney will far outstrip the savings found at another. I’ve learned this the hard way). Be sure to ask your lender if they have such a deal in place. If there is no affiliation your real estate agent will gladly offer up some competent suggestions.
Most, but not all, settlement companies will have a website where you can easily figure out your settlement costs (I like to suggest that you do this prior to placing an offer… just so that there aren’t any surprises! As a buyer, one should allow for between 2-3% of the purchase price). And, if they don’t, they’ll be very glad to provide you with an estimate.
Important: be on the look-out either via e-mail or snail mail for a packet/questionnaire from the settlement company (both seller and buyer). It’s important to respond promptly to their questions so that the title work can proceed in a timely manner.
A day or two before your scheduled settlement you will be given a preliminary HUD-1. The final HUD-1 won’t be available until the day of when the banks finalize their numbers. The HUD-1 will give you a very good estimate of the money you are to bring to the table, (in the form of a cashier’s check, or a wire), or the money you will receive as a seller. It also breaks down all of the costs involved in the purchase or sale. It can be a little confusing to understand, so if you have any questions ahead of time, fire away.
Last thing. Don’t forget to bring some i.d. with you (drivers license or passport), and a checkbook (to make up for miscalculations in the preliminary HUD-1).
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Title Insurance. Banks make you get it. Probably a good thing. It’ll cost you.
Home Warranties. Like all insurance, it’s a crap shoot. Can add peace of mind to purchase.
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
Condo Docs. It’s your responsibility to read them. Boring, but also chock full o’ good information. Avoid special assessment or pending lawsuit properties.
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #2.
Step #2 Financing
Though I usually request that my buyers get approved for financing before placing an offer, there are occasions when this is not possible. So, let’s say you put in an offer on a new home and everyone has agreed to a loan contingency allowing for 30 days or less to secure financing. Now what? In years past, you could sneeze and qualify for a loan (ever hear of no-doc loans?). These days I’m afraid it’s a lot tougher, regardless of your qualifications. Full document (”full-doc”) loans are the standard now, and will provide ample opportunity for you to become fast friends with your mortgage lender. Why? Because she/he will be asking you for your income, asset and debt information at the beginning of the process, probably in the middle of the process, and quite possibly toward the end of the process. It takes time, patience, and a lot of documentation.
About documentation… Keep copies of what you send… all of it! Not all documents copy well or are easy to read. Send low quality copies, and you will surely hear from the bank requesting new ones. Take a few days to provide these replacement copies and the loan process will take that much longer.
Let’s go into more detail:
Income: You’ll need to collect your most recent pay stubs (30-days worth), and W-2’s/1099’s and tax returns for the last two years.
Debt: Found in your credit report are all the open lines of credit in your name: payment history, late payments, collections and foreclosures. By starting the approval process early (before your offer), mistakes or problems can be remedied, possibly raising your credit score, potentially allowing you to qualify for a better interest rate.
Assets: Here’s where you get to share 2-months’ worth of bank statements (every single page) for each account you have open. Are you receiving gift money in order to make your purchase? Your giver (generally a family member) needs to fill out a form (get one from your lender so you hit on all the right topics) and show his/her ability to give the gift by… you got it… providing a bank statement. I know. It gets tiresome.
Identity: You’ll need a legible copy of your driver’s license along with a social security card or possibly a passport. The loan officer needs to see that the name on your i.d. matches your documentation and loan application.
Loan Process: During this period you may be asked to provide more documentation (pay-off information, recent bills… whatever the Underwriter deems necessary). Be ready. You might be asked to provide a bank statement hi-lighting the line showing your earnest money deposit exiting the account. Similarly, if you are receiving gift funds, you’ll have to show the funds coming into your account. Why is this all necessary? The law requires that the banks show proof that you are using your funds to purchase a house, and this is how they do it. These laws apply across the board, so don’t feel singled out.
Now, all of this needs to be accomplished in 30 days (give or take, according to your contract). And guess what… they can turn you down. If you have the opportunity to get approved (not just pre-approved… we want you 100% fully approved), please do so. You’ll be saving yourself a lot of time and energy, and … you’ll know exactly how much money you can or cannot spend*. Don’t get caught by surprise. Your realtor will thank you!
*a note of caution. After you’ve been approved for a loan, please don’t run off to Vegas and gamble away all of your savings. Or, have a mid-life crisis and buy a Corvette. Or write a big fat check on that home equity line of credit. If you choose to waive that financing contingency because you’ve been approved, and then you can’t perform on the loan, you’ve just created a really big problem for yourself.
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Settlement Attorneys. Cheaper is not always better. Buyer usually chooses. HUD-1 confusing. Get one. Ask Q’s.
Title Insurance. Banks make you get it. Probably a good thing. It’ll cost you.
Home Warranties. Like all insurance, it’s a crap shoot. Can add peace of mind to purchase.
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #1.
Step #1 Home Inspections:
You’re sick of it. For months now you’ve been looking for the elusive perfect place to call home. At long last, an offer sticks, and the house/condo/co-op of your dreams will become yours within a few short weeks (hopefully). Yahoo. Are you done yet? Not quite.
Home Inspections. During the height of the market (the build up to 2005), home inspections were either waived or done prior to presenting an offer. Fast forward to 2010 and the climate has changed. If you’re working with me you absolutely will have an opportunity to inspect your future property, usually within 7 days of contract. By including an inspection contingency you will have the option to either remedy current problems in the home or walk away without penalty.
Why get a home inspection in the first place? Buying a home is probably the single largest purchase you will make in your lifetime. You need to protect yourself from that “investment” before it turns into your own personal nightmare. Would I let my adorable husband tell me what was wrong (or right!) with my car? Are you nuts! I need to Read the rest of this entry »
Moving? Important Telephone Numbers, etc…
DC and Maryland Telephone Numbers, etc:
Pepco (MD/DC) 202-833-7500
Allegheny Power 800-255-3443
Washington Gas 800-752-7520
Frederick Gas 301-662-2151
WSSC (MD water) 301-206-4001
WASA (DC water) 202-787-2000
Poolesville Water 301-428-8927
Rockville Water 240-314-8420
Verizon- MD 301-954-6260
Verizon- DC 202-954-6263
The Washington Post 202-334-6100
The New York Times 800-631-2500
The Wall Street Journal 301-680-2990
US Post Office: Change of Address on-line
U-Haul: click here
Boxes, etc… Used Boxes on-line
Once you are in your new house, give me a call for any other recommendations you might need: carpenters, painters, gardeners, handyman, decorators, architects, etc… I’ve got a long list of tried and true vendors that have been put to the test by Evers & Co. agents. Happy to share.
Love thy neighbor? 5 tips to help you find a good one!
A lot of my newer buyers are concerned about the “quality” of their new neighbors. Are they nice, mean, carry a big gun, have a bigger dog, play music at night, scare the mailman?, etc…
Here are a few sure fire ways to figure out if they are good guys or complete nimrods … well, you know what I mean.
1. Hang out in the neighborhood.
That’s right. Take some time to hang out around the house/condo that you hope to live in, and see what sort of activity goes on in the area. Is parking a nightmare come 5pm? Does the local bar start blasting thumping Greek (Irish, African…) music from 9pm-2am? Do cars go racing down the street at rush hour? Will street cleaning on Saturday mornings be a problem? Your time to find out is right now.
2. Talk to the neighbors.
Now is not the time to be shy. Hang out in front of the property, or walk around the block 3 or 4 times. See who you run into. Is the neighbor’s lawn mowed. Are there a lot of plastic toys in the front yard (kids)? Yappy dog? Start up many conversations. Say “Hey- I’m considering putting in an offer on “X” property, and I’m wondering what you can tell me about the neighborhood.” Play dumb. Ask them what they like best, like least, etc… Ask what their favorite restaurant might be. The favorite dry cleaner. Dog walker. Citizen’s Association. Local legends. You get what I mean.
3. Check with the police.
Call them up to see if any crime has been happening in the neighborhood, specifically what kind and with what sort of frequency. Ask about your specific block. As a real estate agent, I can’t tell you. I’ll go to real estate jail (really). If you’re buying in Montgomery County you can check with the police, or the Thursday Post prints the local crime report in the paper. In DC you can go to DC Crime Watch.
4. Talk with your friends at work, acquaintances, etc…
I ended up in my neighborhood because it was close to metro and I liked the house, but mostly because my husband’s sister had suggested that we talk with her colleague who happened to live in the neighborhood where we hoped to put in an offer. This guy really raved about the neighborhood and we were 100% hooked. We felt like we had true insider information. As a real estate agent, I can usually come up with a few people who can praise (/complain about) a specific neighborhood… but it’ll feel more authentic if you seek it out yourself (and find it). Ask around.
5. Walk the walk.
In the DC metro area, sometimes it’s all about the commute , or access to a playground. If this is an issue for you, test it out. Walk to the metro, bus, elementary school, Starbucks, and/or local park, before you put in an offer on the place. I try to be pretty specific about walk/commute times when listing a property, but everyone walks at their own speed. If it’s of importance to you, take the time to check it out. One great source for rating the “walkability” of a neighborhood is: http://www.walkscore.com (on the right column of my website… yup, just over there).
If there is something I’ve missed, please let me know by commenting below. I’m always looking for ways to improve my articles! And, if I can be of help in buying or selling your property, I’d love to hear from you.
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