Can You Get an FHA Loan?

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Learn the basics and be ready when you sit down to talk to your lender!

Interest rate vs. purchase power

I dug deep into my video archives to bring back this video blog from November of 2010!The great thing about math is that it never changes. While viewing this keep in mind that the rates are currently UNDER 4%!!!

Meet the North Shore — Beverly

Beverly, MA 01915

Take a video tour of Beverly courtesy of the Beverly Chamber of Commerce

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Do you want a full report on the Beverly Community

December 2011– This Month in Real Estate

Start Bullet-Proofing Your Spring Market Sale!

So, your thinking about a taking on the market in the spring with everyone else?  What is going to make your house stand out in the crowd?  You know you have to take Location, Condition, and The Local Market Data into consideration to come up with a competitive price, but what else can you do to convince a Buyer that your home is a better financial risk?

You or your Listing Agent sometimes only have a few minutes to put your home into the front of a Buyers mind. All Buyers have different concerns and you need to be ready to answer any questions that come up. Having a showing package to hand out or to make downloadable for buyers with the following information will assure them that you are going to be delivering a home in the best condition possible.

No transaction is completely bullet-proof, but preparing for everything that is in your control is all that you can really do. Here are some tips to protect your sale in the three biggest stages of the transaction, getting the offer, passing the inspection, getting through your Buyer’s underwriting process.

You have the whole winter to get ready for your sale!  Take full advantage and get the first offer!

            10 ways to bullet-proof your Spring Market Sale

1. Deed and Plot Plan – These can be easily found at your county registry of deeds or on their website.  This will confirm ownership, make reference to easements  and define the lot lines so there is no confusion
2. Copies of Building Permits – A quick trip to the Building Inspectors office will go a long way.  Knowing what work has and has not had permits pulled will give the buyer piece of mind. It can also bring any major issues to the forefront, giving you time to clear them up before they become “last minute surprises”.
3.  2 year Utility cost history – Having a list showing the month-to –month history of the utility costs is a huge benefit for buyers.  Those that are upgrading tend to over-estimate the costs. Those that are downsizing are always happy to hear how much they will be saving.
4.  Appliance/System manuals and warranties – If you can locate the operating manuals, instructions and warranty information for any of the major systems and appliances you plan on leaving, the buyers will be appreciative. 
5. List of all Inclusions/Exclusions -- Particularly with first time buyers embarking on a huge financial lifestyle change, knowing that some of the necessities will be included can make the difference between your home and another similar home.   Leaving behind large appliances, older snow blowers and patio furniture that you won’t be needing in your next home will add to the buyer benefits and save you the hassle of moving and storing them.
6.   Seasonal Pictures – No one knows the best way to handle large snow amounts or where the spring tulips bloom better than you. Having pictures showing potential buyers seasonal features and how to navigate storms will show them what to look forward to and calm some fears that may creep in.
7. Updated System Cleanings –Having recent invoices and maintenance reports on the bigger items like heating systems, chimneys, air ducts, and central air/vacuum systems serve you well. Not only do they show “pride of ownership” but they will also deflect many of the usual problems that arise during a home inspection.
8. Smoke/CO detector upgrades. – You will have to pass an inspection by the local fire department before closing and having functioning smoke and carbon monoxide detectors isn’t enough anymore. The units can’t be more than 10 years old and there are specific types that need to be in certain areas of the house.  At $50/ inspection and $20 and up per unit, you want to be sure to check with the fire prevention office in your community to get it right the first time.
9. Pre-Sale Inspection – The worst thing that can happen to a listing is to have a failed inspection. When a house goes off the market for a week and then comes back on the question is always, “what happened at the inspection”.  Spending the $300-$500 to have a reputable local inspector write an inspection report on your home will give you time to determine what issues you want to clear up before going to market and which ones to take into consideration while coming up with the sale price. Buyers are always looking for ways to save money and may choose not to pay for an inspection themselves. If they do choose to have an inspection anything they find will have already been disclosed prior to their offer giving you no reason to negotiate further.
10. Read up on FHA guidelines – Many buyers, especially first timers, need to use FHA financing to take advantage of the low down payment requirements. You want to make your home FHA friendly and be sure that it will survive the FHA appraisal.  If you are selling a condo unit, you will need to have all HOA documents available including the budget for the association. Do some research, talk to a mortgage professional and if you have the pre-sale inspection, pick the inspector’s brain. 

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New Field

Buyers Love Storage

• 

  Small Home Storage: Maximize Your Storage Space

  Your small home has more storage space than you think. For relatively little money but a lot of common sense and ingenuity, there’s space to be found. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

The Best of the North Shore!

Share your favorite North Shore Business and Service Providers!! Click the “Boston’s North Shore” image to the left to take the quick 10 Service Survey! If I can get at least 100 responses I will post the results. Be sure to subscribe to the blog if you would like to see the results!!

This Weeks Open House! Sunday 1- 2:30

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Bridging the Generation Gap

  Let’s face it, the dramatic changes in technology have created a huge generation gap. When younger first time buyers are purchasing a home that the sellers have lived in for 35+ years, this gap becomes more obvious and your Realtor should be ready to work in both worlds.

Now to be fair, not all younger people are tech savvy and not all older people are computer illiterate. So how do you know which side you fall on?

 Here is a quick quiz.

 

1.What does being “Green” refer to?:    a) being ecologically responsible  or b) inexperienced

2. What is a widget?:   a) a theoretical product used in business classes   or b) a third-party application used to enhance a website

3.What is a text?:   a) a quick note sent to someones cell phone   or  b) a school book

4.Where do you go when you need to research something?:   a) Encyclopedia Britannica   or   b) Google

I think everyone sees where I’m going with this……

It doesn’t matter which side you are on as long as you have someone who can speak both languages and has the tools and know-how to communicate with all potential Sellers/Buyers.  Make sure your agent can help to bridge the generation gap!

Landlord/Renter Information

   Massachusetts is one of the most consumer friendly States in the Country. There is no better illustration of this than in a rental transaction. As time goes on, some of the actual standards and State requirements get blurred and are replaced by “folk-lore” versions that become widely accepted as fact.

I want to address a couple of the more common myths that have been tossed around enough to become “assumed” fact.

First of all, how much notice must a landlord give a tenant before entering the unit?  The most common answer is 24 hours.  In reality, the landlord must only provide “reasonable notice” and enter at “reasonable times”.

  Here is the explanation from the Landlords rights and responsibilities page on Mass.gov. (This should be a bookmarked page for renters and landlords)

The Right to Enter The Apartment

A landlord may generally enter the apartment at reasonable times and upon reasonable notice for these reasons:

• To show the apartment to prospective tenants, purchasers, lenders or their agents;
• To inspect the premises;
• To make repairs;
• To inspect within 30 days of the end of the tenancy to determine damages to be deducted from the security deposit;
• If the premises appear to be abandoned; or
• Pursuant to Court order

The other common misunderstanding is in relation to the last months rent and security deposit.  Many consumers and landlords treat these as the same type of fees and thus don’t handle them properly. The biggest difference between the last months rent and the security deposit is the ownership of the funds.

The last months rent is a prepayment and while the landlord is responsible for giving a receipt and paying interest on the money through out the life of the tenancy, the money is his to do with what he wants.

The security deposit is money that still belongs to the tenant and must be handled in a very specific way by the landlord.  Again I will give you the exact wording from the Landlord rights and responsibilities page.

Security Deposit

A security deposit is money, paid by the tenant to you, and held in a separate interest-bearing escrow account to indemnify you against losses due to the tenant’s failure to pay rent, failure to pay appropriate tax escalators, or if the tenant damages the premises. Because this deposit belongs to the tenant until properly applied by you, you must:

1. Hold the deposit in an interest-bearing Massachusetts bank separate from your own money;
2. Give a receipt to the tenant within 30 days of taking the deposit, identifying the bank, address, account number, and the amount of the deposit held; and
3. Pay 5 % interest or any lesser amount of interest actually received from the bank where the deposit is held, if the tenant resides on the premises for at least one year. Said payment is to be made on the anniversary date of the tenancy.

Payment of Interest on Security Deposit

On the anniversary date of the tenancy, you must send the tenant a statement of the interest owed with a check for the interest, or you must notify the tenant that s/he may deduct it from the next rental payment. If within 30 days of the anniversary date of the tenancy you have failed to pay the interest, the tenant may lawfully deduct it from the next rent payment. Upon termination of the tenancy, you must forward the interest due to the tenant within 30 days

There are many issues involved with a rental transaction that can be confusing and lead to friction between the landlord and tenant. Please contact us if you need any help locating the right answer.