Condo Hunting? Don’t Make A Blind Offer!

You finally found the perfect condo unit in your price range. Let’s write the offer!!

Whoa!! You don’t even know what your buying into yet!  or If you can buy it?

The first thing you need to do is get a copy of the Condo Documents and read them.  What are the condo docs?

• Master Deed
• Declaration of Trust
• By-Laws
• Rules and Regulations
• Building and Unit Plans
• Recent Budget

If the listing agent doesn’t have these available, your Agent should be able to find them easily on the Local Registry of Deeds Website 

All condominiums are not set up the same. These documents will clearly spell out what you can and can’t do in regards to the complex and common areas. Do not assume that the information on the listing sheet is correct!

Make sure you understand the policies in regards to pets, parking, common area use, storage spaces and condo fees.

If there are any disagreements or disputes within the complex, these documents will be used to resolve them.

If you are financing your purchase, the bank will require these documents before approving the loan.

Things the Bank wants to see (your Agent should be able to locate these and highlight them for the lender)

• Master Insurance
• Arbitration Clause
• Right of First Refusal Clause (this is a negative in the eyes of a lender)
• Fidelity Bond Insurance (for larger complex)

Ok! Now you have read the docs, understand the rules and are ready to move forward.  If you are using conventional financing you can write the offer!  If you are using an FHA program, you will need to check a few more things.

FHA Loan Concerns (You Agent and Mortgage Professional should be able to help)

• # of owner occupied units
• Owner with multiple units
• # of FHA loans in building
• Budget Reserves
• Complex must be FHA Approved

This sounds like a lot of work but an experienced Realtor should be able to get the bulk of this together in short time and you will have confidence that, if your offer is accepted, you will be able to get to the closing table.

 

Mass Smoke/Carbon Monoxide Alarm Requirement Guidelines

One of the most overlooked tasks when Selling a home is the need to bring your smoke and carbon monoxide alarms up to code.  Even if you aren’t selling you may want to review this chart to make sure you have kept up with the recent changes.

Click on Smokey to get the Massachusetts Requirements for one and two family dwellings

 

 

This advice is give in “As Is” condition

In this new age of foreclosures and short sales, more and more homes are offered “as-is.” For the prospective homebuyer, it’s now essential to understand what this means. Buying a home as-is sounds like it would be a disadvantage, but it also has a number of benefits that could play to your favor.

First, what does it mean to buy a home as-is? It means that you are buying a home exactly in the condition that it appears, and the sellers aren’t making any warranties about the condition of the property. If there are things wrong with the house, from cosmetic damage to major structural issues, they will be the responsibility of the buyer to repair. In other words, as the house’s new owner, its problems are your problems.

Homes that are in foreclosure and short sales are typically sold as-is. In both cases, the seller is taking a loss on the property and understandably doesn’t want to sink more money into making repairs. In the case of foreclosures, the seller (usually a bank) hasn’t lived in the property and isn’t in a position to know everything that’s wrong with the house. Since foreclosures and short sales frequently occur below market value, it’s understood that the buyer will have to repair any issues at his or her own expense, adding to the costs involved when buying a house as-is.

When houses are considered teardowns or are otherwise in poor condition, it is common to present a purchase offer that is as-is. This communicates to the seller that the buyer is going to invest in the house and expects a lower price because they’re willing to assume full responsibility for everything that’s wrong with the house. For the same reason, it is also common to present an as-is offer when bidding well below the asking price, even if the house being sold is in good condition. In these instances, it indicates that the buyer has fewer hang-ups that may prevent a deal from going through. It also means that there won’t be ugly or expensive surprises for the sellers if issues are uncovered during the inspection period.

Just because a home is offered as-is, it doesn’t mean that the seller can lie outright as to the condition of the property. Regardless of the terms of sale, the seller is obligated to disclose any major issues with the house. Even if you purchase a home as-is, a major undisclosed issue can be found to be the responsibility of the seller, provided he or she knew of them prior to sale.

When a house is being offered as-is, there is always concern on the part of prospective buyers that something is wrong with the house. Once your offer to purchase a home as-is has been accepted, it is still essential to have a full inspection and to use your inspection period wisely. With the inspection report in hand, qualified tradesmen or contractors can come to the property to present you with bids to fix the issues that were uncovered. This will let you know exactly how much repairing your new house will cost and allow you to assess the purchase.

Even if your purchase agreement for a home states that you’re buying the home as-is, there is no reason that you can’t go ask the sellers to make repairs. If it’s an older home, you’ll certainly have uncovered things that they failed to disclose and some things that may cause the house to deteriorate if not addressed promptly. Sellers are not obligated to fix these issues. That said, pointing out nicely that they are sticking points in advancing the deal may encourage them to repair a few outstanding issues or provide a credit to you at closing.

Buying a house as-is with right to inspect can be a hornet’s nest, but most contracts are designed with clauses that allow the buyer to exit an agreement if the property proves to be uninhabitable or simply unappealing after the inspection period. Ultimately, this deal type has few drawbacks and can be a useful approach for getting a great deal on a home. Just be sure to budget carefully and consider all the costs involved when buying a house as is.

See this and other helpful Selling, Buying and Negotiation tips by becoming a Massachusetts Market Insider!

Mass Housing– The FHA Alternative

While FHA loans are very popular among home buyers because of the lower down payment requirements, there is an alternative option.

Mass Housing offers low down payment, fixed rate loans for qualified buyers. They also have a purchase and Rehab loan as well as their “Home For The Brave” no down payment loan for Veterans of the U.S. Armed Services.

Qualifications include income/loan limits, credit score limits and in some cases you will need to complete a home buyer education course.

Mass Housing is a non-profit agency that sells bonds to fund these programs. Not only do they not use tax payer money, but they contribute to maintain State budgets for housing programs. Here is a quick video introduction from Mass Housing.

February 2012 This Month In Real Estate

I need ME!!

So I have been bouncing around the idea of buying a vehicle when it occurred to me that I need someone who does what I do when working with a home buyer!

Wouldn’t it be great to have someone that knows the inner workings of the car selling industry to assure that I buy the right car at a fair price based on my specific situation.

A “Car Buyer’s Agent” to go over the fact that my Son will be getting his license within a year and help me weigh the option of buying a used car now that can become his or go new now and worry about his when the time comes.

It would be awesome to have them bring you to the various car lots to act as a buffer between me and the New/Used car salesman and to know that the answers I am getting are based on MY needs and not the need to meet a quota!

Even if I could manage to search and find a car on my own, it would be nice to have someone that knows how the dealer’s make their money to do the negotiating, help find a neutral mechanic to inspect the car, and facilitate the insurance/registry paperwork for me while I go back to work!

The best part of all would be having the car salesman compensate MY CAR BUYER AGENT out of his commission!

February Newsletter

FEBRUARY-2012 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.



Please click here to view the FEBRUARY-2012 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

The controversial Lock-box

This is one of those “you either get it or you don’t” issues. There is very little gray area between a Seller willing to use a lock-box on their home or not.

In fact, you have probably already made up your mind as to which side you fall on by this point.

Are you a “No way! I’m not letting people I don’t know in my house without supervision” or a ” ok,  that makes sense where should we put it?” person?

First of all, you need to know that having the Listing Agent at a showing is really a New England thing.  It’s not even an issue in other parts of the country because the practice just doesn’t exist.

Next, you need to realize that NOBODY should be allowed in your home without a licensed Realtor with them. If the people viewing your home are not using a Buyer’s Agent, your Realtor should meet them there to show the home.

Finally, there is a psychology to it. Buyers are more willing to talk openly about the property and show true emotions while viewing it when the Listing Agent isn’t in ear shot range.  They can “place their furniture”, suggest cosmetic changes and focus on the features that interest them, not your Agent.

While on some occasions, it can allow a Buyer’s Agent in on short notice, I am certainly not going to tell you that it will get more people in to see your home. As someone who has worked with Buyers, I will tell you that it will make a showing much more comfortable and productive.

Ready….Fire….Aim ???

Now we all know we have a better chance of hitting the target if we follow the Ready…Aim…Fire strategy, right?

In terms of searching for a home, the best way to achieve your goal is as follows:

Ready:   Get a pre-qualification letter from a lender, hire a buyers agent (if you are going to use one)

Aim:       Determine “Your Market” based on needs, wants and price.

                                                             Fire:       Look at only the homes that fit your profile and make an offer on the best one.

The internet makes it too easy to go right to Fire. When we bypass Ready and Aim, the chances of hitting our target is greatly reduced.

Can You Get an FHA Loan?

Can you qualify for an FHA loan? Click the image below to request to have My FREE FHA Requirement Guide sent directly to your inbox.
Learn the basics and be ready when you sit down to talk to your lender!