The Difference Between Your Mortgage Rate and the Annual Percentage Rate (APR)
Understanding the difference between an annual percentage rate (APR) and an interest rate could save you thousands of dollars on your mortgage. But most homebuyers might not know that the interest rate and the APR measure two different costs associated with your home loan.
FREE eBOOK: Your Guide to Home Buying
The Most Critical Steps to Take When Buying Your Dream Home
Interest Rate and APR
An interest rate is the cost of borrowing the principal loan amount. It can be variable or fixed, but it’s always expressed as a percentage. An APR is a broader measure of the cost of a mortgage because it reflects the interest rate plus other costs such as broker fees, discount points and some closing costs, expressed as a percentage
Why have both?
The main difference is that the interest rate calculates what your actual monthly payment will be whereas the APR calculates the total cost of the loan.
RELATED: 6 Mortgage Terms To Know
You can use one or both to make apples-to-apples comparisons when shopping for loans.
For example, a loan with a 4 percent rate will have a lower monthly payment than a loan with a 6 percent rate, assuming both are fixed for the same term. Likewise, the total cost of a loan with a 4 percent APR will be less than one with a 6 percent APR.
Where it gets tricky
Interest rates and APRs have limitations to helping you understand the true cost of your mortgage. But taken together, borrowers should be able to use both figures to determine their total costs. The trick is to understand the interplay between the two figures.
If you are only focused on getting the lowest monthly payment, then focus on the interest rate. But if you are focused on the total cost of the loan, then use the APR as a tool to compare the total cost of two loans.
This chart shows the interest rate, APR and total costs over time for a $200,000 mortgage in which 1.5 discount points cut the interest rate by one-quarter of a percentage point, and another 1.5 discount points cut the interest rate by a further quarter of a percentage point.
3 loans, same amounts, 3 APRs
Time horizon matters
If you plan to stay in your home for 30 years or more, it probably makes sense to go with a loan that has the lowest APR because it means you’ll end up paying the lowest amount possible for your house. But if your time horizon isn’t that long, it may make sense to pay fewer upfront fees and get a higher rate — and a higher APR — because the total costs will be less over the first few years.
APR spreads the fees over the course of the entire loan, so its value is optimized only if a borrower plans to stay in the home throughout the entire mortgage.
Figure the break-even point
If you’re planning to stay in your home for a shorter period, you need to do the math and determine your break-even point.
For example, if you chose a 0.25 percent lower rate for an additional 1.5 points because of the lower APR, but you moved in five years, you lost money. Your break-even on the points was seven years.
Unfortunately, those calculations can be confusing for many, which is why it’s crucial to pick the right lender. Your Buyer’s Agent should have excellent relationships with lender’s and can refer you to someone they trust.
Did you recently shop for a Mortgage? Do you have Buyer’s Remorse? What might you do differently now that you didn’t do then? We want to here from you! Sound off on our Facebook Page or on our Twitter, Instagram or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICEtm eNewsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
Why Is There So Much Paperwork Required To Get A Mortgage?
Why is there so much paperwork mandated by the lenders for a mortgage loan application when buying a home today? It seems that they need to know everything about you and requires three separate sources to validate each and every entry on the application form.
RELATED: 6 Mortgage Terms To Know
Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
FREE DOWNLOAD: Your Guide To Home Buying
The Most Critical Steps To Take When Buying Your Dream Home
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history:
1. The government has set new guidelines that now demand that the bank proves beyond any doubt that you are indeed capable of paying the mortgage.
During the run-up to the housing crisis, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.
RELATED: Will I Qualify For A Mortgage?
2. The banks don’t want to be in the real estate business.
Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.
However, there is some good news in the situation.
The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate around 4%.
The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process, but also paid a higher interest rate (the average 30-year fixed rate mortgage was 8.12% in the 1990s and 6.29% in the 2000s).
If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward to make the process much easier.
Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.
What is the Cost of Waiting Until Next Year to Buy a Home?
Over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.
FREE DOWNLOAD: Your Guide To Home Buying
The Most Critical Steps To Take When Buying Your Dream Home
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
Follow Patrick Parker Realty on Facebook, Instagram, Twitter and LinkedIn and subscribe to our monthly HOME ADVICEtm eNewsletter for articles like this delivered straight to your favorite media platforms.
40 Easy Moving And Packing Tips That Will Make Your Move Super Smooth
Congrats on your new home! Now you just have to figure out how you’re going to pack and move everything without breaking the bank, your fragile lamp, or your back. Good thing we put together this list of 40 easy moving and packing tips that will make your move dead simple.
How do we know these tips will make your move super smooth?
We asked expert movers, packers, and professional organizers to share their best tips.
So sit back, grab a snack, and dive in!
1. Get rid of everything
Okay, maybe not everything, but the more unused and unnecessary items you eliminate from your home, the less stuff you’ll have to pack up, haul across town, unload, and organize.
Clear any clutter from your home as soon as you know you’ll be moving.
Be ruthless with your stuff. That coat you think is cute but haven’t worn in four months? Donate it.
The very first coffee maker you ever bought that flavors your morning brew with little pieces of rust? Trash it.
Doing a massive preliminary purge will have the single biggest impact on the efficiency and ease of your entire packing process.
2. Sort things by category
Organize your belongings by category, not by room (note that the category part only applies to the organization process, not the unpacking — that’s a whole separate ordeal).
Instead of spending a day cleaning out your entire bedroom, spend an afternoon sorting through every article of clothing you own.
Scour every coat closet, dirty clothes hamper, and laundry room until you’ve got all your clothes in one place. Then sort.
Do the same thing for books, shoes, important papers, and the like.
3. Schedule a free donation pickup
In most markets and in most cases, you can schedule a donation pick-up online with the Salvation Army. The good news is, you don’t even have to be home so long as you properly label all bags/boxes that are being donated.
4. Set aside stuff to sell
You probably have a few items you no longer want, but would love to get a little money for. If that’s the case, set these items aside and determine where you can sell them.
If it’s furniture, Craigslist or Facebook Marketplaces are best bets. If it’s brand name clothing, you could try Poshmark or a local consignment store.
For specialty items like a gently used Coach purse or your collection of 90’s Beanie Babies, get on eBay.
5. Research professional moving companies
Research is never fun. Yelp and Google will overwhelm you with the sheer volume of choices for household moving companies to hire, but don’t give in to the pressure and pick the first four-star rating you see.
A moving company can often make or break your entire moving experience, so it’s important to get it right. The more effort you put into finding a reputable company with excellent customer service ahead of time, the less hassle you’ll have on moving day.
There are tens of thousands of people claiming to be a ‘moving company’ when in actuality it’s just some guy with a van trying to make some extra money. So it is important to make sure to do your due diligence.
Make sure to read the company’s list of services, fine print, and refund or damage policies, too. For example, some companies don’t lift items that aren’t in boxes (so your stuffed-to-the-brim duffel bags won’t make the cut), while others ask for full payment several weeks early.
Find out the specifics so there are no unwelcome surprises come moving day.
6. Pick the right moving day
Hire your movers at least a month out so you can plan accordingly. If you have a flexible schedule, play around with potential moving dates and try to find the cheapest time of month to make an appointment.
Moving companies are busiest on weekends, so if you can skip the Saturday chaos and schedule your move for a Tuesday, you might get a significant discount.
7. Map out the best way to get to your new home
Whether you’re moving to the Jersey Shore, across the country, across state lines, or just to a neighboring town, you’re going to need an efficient travel route so you don’t waste your move-in day sitting in traffic or pulling over three different times to type an address into your GPS.
Figure out the easiest, most efficient way to get where you’re going. Look up potential highway construction schedules ahead of time. And take traffic, detours, and necessary stops into account when you’re making your plan.
8. Create a master moving to-do list
When you move homes, you inevitably end up having 600 different things to do and remember. Don’t let all these tasks and important reminders, no matter how seemingly obvious, slip your mind.
Write them down somewhere. Put them in the Notes app on your phone, in a to-do list app such as Wunderlist, or go old-school with a giant yellow legal pad.
No detail is too insignificant. You just remembered the name of the little bookstore in town that will accept your used novels? Write it down.
You stuck that extra screw from the broken drawer next to the sink? Take note.
You have to return your cable box to your provider at least one day before you leave? Jot it down.
9. Put moving tasks on your calendar
Take your organization a step further and spend an evening mapping out everything you have to do. Get an oversized calendar and mark the empty white boxes with important daily tasks to prepare for your move.
Tuesday: Call moving company.
Wednesday: Sort through toiletries.
Thursday: Buy new sheets.
An added bonus to using the calendar method is that breaking up your tasks by day makes them seem more manageable.
10. Get moving boxes from your local liquor store
Pay a visit to your local liquor store to see if they recycle their used boxes. If so, ask if you can grab a handful so you’re saving a little paper in your moving journey.
Just make sure the boxes are very gently worn and that you only use them to hold lightweight items like linens and towels. You don’t want to deal with ripped boxes and broken valuables on the big day.
11. Check to see if you have original boxes for your electronics
You might think your flat screen TV could withstand a 30-minute drive across town in a cardboard box, but alas, it’s a fragile piece of technology. The best way to transport your electronics is in the original boxes they arrived in when you purchased them.
Check to see if you stashed these boxes somewhere — attic? Garage? If you don’t have them, make a list of what you’ll need to buy or borrow to properly cushion your stuff.
Quilted blankets, bubble wrap, and sturdy tape all work well to protect TVs and similarly delicate items.
12. Go to the hardware store
How, you might ask, is one trip to the hardware store even possible?
Here’s how: lists.
Make one and make it really thorough and detailed. Sit down with your family, partner, or roommates and brainstorm every possible item you will need to help you get through the moving process.
Again, nothing is too insignificant. Packing tape, cardboard boxes, packing paper, extra screws, putty, a measuring tape, a new industrial-size broom, you name it. Buy it all in one big haul.
13. Grab extra packing and moving supplies
Don’t forget the “just in case” items when you’re making your master hardware store list. Stock up now on extra supplies like light bulbs (check your lamps to verify the type you need), extension cords, and power strips so you’ll be set to go when you start moving things in.
14. Schedule disconnect times
Call your cable, internet, electricity, and gas providers at least a week ahead of your move to figure out when you need to shut everything off. Make sure you leave enough time in your schedule to gather any necessary items — like cords, remotes, or cable boxes — you may need to return.
15. Call in favors early
If you’re relying on friends and family to help with your move, be courteous and give them a month’s notice. Do the same with babysitters for your children.
Send out an email with the details of where to meet, what time, what to bring, and what to wear (read: no sundresses or uncomfortable shoes) so everyone is on the same page.
16. Pack ahead
Packing little by little is far less stressful than trying to tackle it all in one day. As early as a couple months out, start packing the stuff you know you won’t be using.
This can be anything from off-season clothing to books you’ve already read to mementos, pictures, and keepsakes.
17. Pack decorative items a few weeks out
Pack up all your art and decorative items several weeks before you move. These pieces can be some of the trickiest to store because they’re fragile and often oddly shaped, so having a bit of extra time to figure out how to properly cushion them is crucial.
Sure, your walls and mantels will look a bit stark, but when you’re running around the house a week before the move feeling like you’re about to lose your mind, you’ll be so glad your grandma’s landscape painting is already nestled in its precious bubble wrap.
18. Change your address a week before you move
This is one of those things everyone forgets to do until they’re two weeks into life in a new home and they realize their Amazon Prime shipment still hasn’t arrived. Change your address ahead of time so your bills, credit card statements, and packages can arrive on time and without hassle.
19. Label moving boxes like a boss
The key to finding your stuff easily is labeling all your packed boxes accurately and clearly. When you’re stacking boxes in a van or car you won’t be able to see their tops, so make sure you label the sides as well. But don’t stop there.
Label the boxes by category and by room (for example, Books, Library and Books, Bedroom) to speed up the unloading process.
If you’re more of a visual learner, use color-coded electrical tape to label your boxes.
20. Create a number system
If you want to take your box labeling a step further, create a number system.
As you pack up a box, take note of every single item inside of it. Write the list in a Google doc, or use a handy organizing app like Sortly, and then give the box a number.
This genius strategy has two major benefits:
1. You can go straight to box #16 with the plunger instead of digging through every “Bathroom” box just to find it.
2. You’ll know the total number of boxes you’re transporting so you can check to see if one goes missing or is stolen.
21. Use small boxes for heavy items
It sounds obvious, but if you’ve ever known the struggle that is carrying a large cardboard box stuffed full of college textbooks across a parking lot, then you also know this advice cannot be overstated.
Fill your small boxes with heavier items and use large boxes for light things like decorative pillows, towels, and linens.
22. Use packing tape
Not to be confused with duct tape, packing tape is the heavy-duty, insanely sticky clear tape you see at the post office.
Always make sure your boxes have tops, but don’t do the interlocking fold method with the flaps of your box tops — just tape them closed. It’s much more secure this way.
23. Protect fragile items with packing paper, bubble wrap, or blankets
Remember that packing paper you put on your master list when you stocked up on supplies at the hardware store?
Use it to pad all your fragile dishware and decorative items. Stuff it inside glasses, wrap it around vases and bowls, and shove it between your dishes and the side of your boxes.
Make sure you wrap each of your fragile items separately, so they’re fully cushioned. If you don’t have packing paper, opt for bubble wrap or a quilted blanket.
24. Pack dishes vertically
Don’t stack your dishes horizontally inside a box. Instead, wrap your plates and bowls in packing paper, gently place them into a box on their sides like records, and then fill the empty spaces with bubble wrap to prevent cracking and breaking.
25. Cover the tops of toiletry bottles with Saran Wrap
To prevent potential leaking and spilling (and crying), take an extra two minutes as you pack to secure your toiletry bottles.
Unscrew the cap of your shampoo bottle, wrap a piece of Saran Wrap (or a Ziploc bag) over the top, and screw the cap back on. Simple and surprisingly effective.
26. Pack a clear plastic box with things you’ll need right away
This can include toilet paper, a shower curtain, hand soap, towels, sheets, snacks, or whatever else you think you’ll need for the first day or night in your new home.
Having a few essential items on hand will make you feel more comfortable and prepared to tackle unpacking everything else.
27. Pack a personal overnight bag
Chances are you won’t get everything unpacked in the first day, so bring whatever you need to feel relaxed and settled on your first night.
A change of clothes, your toiletries, a water bottle, and your laptop can go a long way in making your new place feel more like home.
28. Stop buying groceries a week before you leave
To save you the guilt of throwing away perfectly decent food, stop buying groceries a week or two before you’re scheduled to move. Try to make meals at home to use all the food you have left.
If you don’t finish everything, invite a friend or two over to see if they need some half-finished spices or boxes of pasta.
For anything you can’t get rid of, toss it and don’t look back.
29. Take pictures of your electronics
Before you take them apart and pack them up, take a few pictures of the back of your electronic devices — the cord situations, if you will.
Having these pictures will make it that much easier to set up your TV or monitor as soon as you move in — no fretting necessary.
30. Put your storage bins and luggage to use
Instead of trying to figure out how to pack up all your woven seagrass baskets, linen bins, and carry-on suitcases, store stuff inside them.
Think clothes and shoes for sturdy suitcases, and hand towels and pillowcases for lightweight, open-top bins and baskets.
31. Make copies of important papers
Pack a separate box or briefcase with copies of all your important documents in case of an emergency.
Though it might be a tedious project to scan or copy every birth certificate, passport, social security card, proof of insurance paper, and tax claim, you don’t want to risk damaging the only version of your papers in transit. They’re too precious.
32. Set aside cleaning supplies for moving day
Build a mini cleanup kit so you can do one final sweep through your home on moving day.
Set aside a broom, mop, dustpan, duster, sponge, cleaning products, paper towels, and old rags for wiping the grimy, hidden surfaces you could never get to when all your stuff was in the way.
33. Defrost your fridge at least one day before you move
Who wants to wake up to a grungy, mildewy fridge in their new home?
No one. No one at all.
Take time to thoroughly clean your fridge and wipe away all the liquid before you haul it to your new home.
34. Load boxes from the same rooms together
Stack and load boxes in groups according to the rooms indicated on the labels. Put all the kitchen stuff together, all the bedroom stuff together, and all the living room stuff together.
That way, you can unload all the boxes from the same rooms at the same time, which makes unpacking everything a cinch.
35. Load heavy furniture into the moving truck first
Have the person with the highest Tetris score be in charge of figuring out how to fit everything in the back of the moving truck is the most efficient way possible.
Load your heavy furniture first, like sofas and sectionals. Then finish with lighter items, like your nightstand and side tables.
Be gentle with everything, as most seemingly wooden items are not actually made from wood, but particle board.
Don’t be afraid to flip things over, either — couches actually transport well on their sides and save a ton of space in the process.
36. Take pictures of your new home before you move anything in
This moving tip really only applies if you’re renting your new home:
Before your friends and family start stacking boxes in the entryway, or scuffing the doorway trying to shove your couch through, snap a few shots of your space so you can note any existing damage.
It’ll be more difficult to prove you didn’t cause that damage after you’ve moved in all your furniture.
37. Delegate tasks when you’re unloading the moving truck
Figure out ahead of time who will be the chief of moving day. Whoever feels comfortable taking charge of the unloading and organization process (and inevitably answering 400 different questions) should assume this position.
Delegate every little task so no one is wasting time or sitting around with nothing to do. With all hands on deck, your unpacking process will fly by.
38. Keep Ziploc bags handy
Keep a stash of Ziploc bags in your purse or backpack for the big moving day. You can use the bags to store doorknobs, tiny screws and brackets, luggage keys, or other small, easily forgettable items.
39. Make the beds first
Make your beds as soon as you move in. That way, instead of worrying about tucking in your dust ruffle, or finding the right set of sheets at the end of a long night, you can just crash right away.
40. Be a good host
Make sure you take care of the people who help you move, regardless of whether or not they’re being paid to do it.
Provide beverages and snacks for everyone, break for pizza, or pay for everyone’s dinner and get it delivered using a food ordering app errand-outsourcing service.
Did you recently orchestrate a smooth move? What tips to you have to add to our list? Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.
Understanding Real Estate Agency & Agency Relationships
The term “agency” is used in real estate to help determine what legal responsibilities your real estate professional owes to you and other parties in the transaction.
The seller’s representative (also known as a listing agent or seller’s agent) is hired by and represents the seller. All fiduciary duties are owed to the seller, meaning this person’s job is to get the best price and terms for the seller. The agency relationship usually is created by a signed listing contract.
The buyer’s representative (also known as a buyer’s agent) is hired by prospective buyers to and works in the buyer’s best interest throughout the transaction. The buyer can pay the agent directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split with the seller’s agent.
A subagent owes the same fiduciary duties to the agent’s customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. The subagent works with the buyer to show the property but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer customer can expect to be treated honestly by the subagent.
A disclosed dual agent represents both the buyer and the seller in the same real estate transaction. In such relationships, dual agents owe limited fiduciary duties to both buyer and seller clients. Because of the potential for conflicts of interest in a dual-agency relationship, all parties must give their informed consent. Disclosed dual agency is legal in most states, but often requires written consent from all parties.
Designated agents (also called appointed agents) are chosen by a managing broker to act as an exclusive agent of the seller or buyer. This allows the brokerage to avoid problems arising from dual-agency relationships for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties.
A transaction broker (sometimes referred to as a facilitator) is permitted in states where nonagency relationships are allowed. These relationships vary considerably from state to state. Generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.
Understanding Agency and Agency Relationships is an important part of how you perceive the success of your Real Estate transaction. What questions do you have about Agency Relationships? Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.
5 Things Real Estate Agents Wish You Knew About Buying a House
Buying a house isn’t like buying a Grande Americano at your regular Starbucks. Infinitely more money, thought, and prep work go into acquiring real estate – and given that it’s not a purchase you make often, it’s understandable if you might not be adept at wheeling and dealing.
But guess what? There is someone who can show you the ropes well within reach: your Real Estate Agent! Odds are (we hope), you’ve hired an Agent to help guide you through the home-buying process.
RELATED: How To Hire A Buyer’s Agent
But even then, there might be things you end up doing that make your Agent sigh deeply—and get a strong urge to sit you down and say, “Look, here’s the deal!”
Curious about what those things are? Read on for some of the things that Real Estate Agents really wish you knew, since it would save them – and ultimately you – a ton of aggravation seeing your deal through.
1. Know What You Can Afford Before You Start Looking
Finding the perfect home would be a snap if money weren’t an issue, but let’s get real. For most people, money doesn’t grow on azaleas, which means their finances must be taken into account. So don’t waste your time shopping for real estate before you know what price range you can afford.
FREE DOWNLOAD: Your Guide To Home Buying
One easy way to get your bearings is to type your income, savings, and other details into a home affordability calculator. Better yet, get a mortgage pre-approval letter; the process involves a lender checking out your finances and determining how much it’s willing to loan you for a home.
Plus, a pre-approval letter helps you move fast when making an offer. Since you now have it in writing that your loan is guaranteed, it removes any possibility that you won’t secure financing.
2. Don’t Call The Listing Agent
In case you didn’t know, buyers generally have their own Agent, and sellers have theirs. And ideally, it’s the Buyer’s Agent and Listing Agent who interact with each other, conveying their clients’ questions and concerns to see if a deal can be done.
As such, when you do an end run and contact a Listing Agent directly, this seemingly innocent move can cause a whole ton of trouble.
RELATED: About the Negotiation Process
While you main not mean this, it’s almost an implication that you do not trust your Buyer’s Agent and/or that you do not have a strong working relationship. These things will impede negotiation. You’re actually giving power away to the seller’s Agent.
3. Please Do Not Talk Around Other Agents
Another time buyers may put their foot in their mouth is during showings and open houses. Since the Listing Agent may be present, this is a time when loose lips can sink real estate deals.
You might say things you are not supposed to say, such as how many houses you’ve checked out, how much you like or dislike the house, and, worst of all, how much you can afford or are willing to spend.
Sharing such info is akin to tipping your cards while playing poker: It gives the home sellers a whole lot of info they can use as leverage during negotiations.
So when in doubt, say nothing. Let your Agent be your voice at an open house or in any conversation with the sellers.
4. You Do Not Need To See Every Home Within A 50-mile Radius
You don’t have to look at hundreds of properties to find the right one.
The truth is, if you have an Agent truly working for you, you won’t be looking at tons of homes. Your Agent will screen properties for you and make sure you’re only looking at the ones that fit your needs. So if the first home you see is the one, that’s OK, your Agent did her job.
If you feel the homes you are seeing are not a fit for you, talk to your Real Estate Agent again about your wishlist and revisit your must-haves vs. like-to-haves, etc. They are there to serve and satisfy you. There is no harm in revisiting this conversation.
5. Don’t Let Fear Of Commitment Give You Cold Feet
This tidbit you can file more under helpful advice because Agent’s have seen this before. Yes, buying a house is a big commitment. Yes, it’s scary, and your mind might race with all sorts of worse-case scenarios. What if you make an offer on a house, and that very day another house – even more perfect for you – crosses your path? Or, what if you move into a house you’re happy with, then a layoff leaves you unable to pay your mortgage?
Sure, these are all possibilities, but uncertainty is a part of life. It is normal to ask these commitment-phobic-type questions. Just don’t let them get in the way of this important and exciting life change.
And if the worse happens, you can always sell a house later on; this need not be a death-do-you-part endeavor.
Did you recently buy a home and would perhaps do things differently if you had to do it again? We’d love to hear from you! Sound off on our Facebook Page or on our Twitter, Instagram or LinkedIn feeds. And don’t forget to subscribe to our monthly eNewsletter for articles like this delivered straight to your inbox.
Is Every Offer Shown to the Seller? What to Do If You Think Your Offer Is Being Ignored
It’s unsettling to think your offer on a house is being ignored. After all, isn’t it only fair that every offer be shown to the seller? The real deal: While that might seem like a reasonable ask of the seller’s Real Estate Agent, it’s not necessarily required. Is it ethical for an Agent to present all offers to the sellers? Yes—and most do.
In general, written offers must be presented. This falls in accordance with the National Association of Realtors® Code of Ethics, which states that Realtors shall submit offers and counteroffers objectively and as quickly as possible. However, not all Real Estate Agents are members of NAR and required to abide by its code.
FREE DOWNLOAD: Your Ultimate Home Buying Guide
Why A Seller Might Not See Your Offer
Some sellers set a limit for how low they’re willing to go in price and ask their Real Estate Agent to dismiss any offers below that price.
If the seller has specifically instructed their Agent not to bring offers that do not meet a certain minimum requirement, the Agent may not need to present any offer that falls short of the minimum.
Every state’s laws are different, but generally, if the seller has instructed his Agent in writing to withhold certain kinds of offers, then the Agent won’t present those offers.
The Shady Side of Withholding Offers
A Listing Agent withholding offers could be less than fully ethical if she is acting as a transactional broker (also known as a dual Agent), representing both the seller and the buyer. (Keep in mind that dual agency is illegal in some states.)
The concern is that the Listing Agent might withhold one offer in favor of a higher offer that benefits the broker financially. Doing so is a big procedural breach and can put the Agent at risk of losing their license.
What To Do If You Think Your Offer Is Being Withheld
As a buyer, if enough time has passed and you suspect your offer is being withheld, talk to your Real Estate Agent about the situation. Agents deal with this kind of thing frequently and will know how to broach the subject with the Listing Agent. Advising you is your Agent’s job, right?
Here are some of your other options:
Ask for a rejection in writing. There should be a place on your written offer for the seller to formally reject your offer. You can request that your Agent ask for this formal rejection.
Contact the seller. It’s unlikely your Real Estate Agent will be happy with your doing this, but it’s not illegal for you to contact the seller directly to ask about your offer. However, be prepared: This might not go over well. If a seller wanted to work directly with the buyer, he wouldn’t have hired a Real Estate Agent in the first place. Proceed with caution, and maybe ask your Agent first.
Report the Agent. If you are truly convinced the Listing Agent is withholding your offer for selfish reasons, you can report the Agent to her brokerage or to the licensing agency in your state. Again, this is not an option to take lightly as it could have serious repercussions for the Agent in question. Seller’s are allowed to refuse offers for any reason they wish. So even if you feel your offer was fair, if the seller refused it and you didn’t hear back, it may have nothing to do with the Listing Agent at all. Accepting an offer is at the Seller’s discretion, not the Listing Agent.
Be fair. Remember the legal reasons why offers are allowed to be withheld. Do not report an Agent or leave a negative online review if you do not have all of the details about the situation.
Just move on. Whether there really are ethical issues or the Listing Agent’s communication style just isn’t working for you, it might be best to look for another house. And do you really want to work with an Agent you don’t trust? Unless this house is a picture-perfect, once-in-a-lifetime deal, it’s probably in your best interest to keep looking.
Are you a recent homebuyer who has experienced concerns over the status of your offer? Tell us about it on Facebook on the Patrick Parker Realty Facebook Page or sound off on Twitter, Instagram or LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICE™ eNewsletter for articles like this one delivered straight to your inbox.
What Is a Real Estate Agent’s Commission?
Ever wonder what exactly a Real Estate Agent does? Are they worth the commission? Ever wonder if you’re paying too much for commission? Even consider going it your own via FSBO?
You may have a great Agent and they don’t communicate with you all they’re doing. Or, you may also have a rock star agent and who’s doing so much it hasn’t even occurred to you all the fine details going into your home sale.
Here are a few facts that might help you sleep at night and have some peace about residential real estate commissions:
1. Real estate agents are sole proprietors
That means that even if they are a part of an agency, they are small business owners and cover all their own costs and carry all the risk. Do you own or have you ever owned your own small business? Then you know you wear ALL the hats and all the responsibility falls to you. Not to mention, your rather high tax rate!
They invest in you and your home. If they take on a listing, that means they’ve calculated the cost of marketing, photos, and time – lots and lots of time. High quality marketing – online and offline – and maybe even virtual tours. All that cost money. There’s considerable overhead if you are active in the field.
They have no salary and no real predictability in income. One deal may have to last them many months or maybe even longer.
2. The sale of your home may be covering for the loss of another
Deals fall through ALL. THE. TIME. Your particular sale may go pretty smoothly – great! I guarantee you it has ended up covering for a major loss on another deal. It’s the nature of business.
3. The real work begins once a contract is accepted
It may feel like all an agent does is show up sometimes for an open house here and there and put a sign in the yard. Or every time they come over, they’re telling you things you need to spend money on. But the real work is done behind the scenes and is intensified once an offer is accepted. Getting to the closing table is more and more challenging.
Pat Vredevoogd-Combs, a former president of the National Association of REALTORS, testified before the House Financial Services Committee on Housing to stark federal complaints about residential real estate industry pricing.
She submitted a list of 184 things that Listing Agents do in every real estate transaction as a part of her testimony to the committee. She stated, “By all accounts the general public is not aware of all the services that agents provide to sellers and buyers during the course of the transaction, probably because most of the important services are performed behind the scenes.”
Here is the list of (just) 184 things residential real estate agents do:
1. Make appointment with seller for listing presentation.
2. Send a written or e-mail confirmation of appointment and call to confirm.
3. Review appointment questions.
4. Research all comparable currently listed properties.
5. Research sales activity for past 18 months from MLS and public databases.
6. Research “average days on market” for properties similar in type, price and location.
7. Download and review property tax roll information.
8. Prepare “comparable market analysis” (CMA) to establish market value.
9. Obtain copy of subdivision plat/complex layout.
10. Research property’s ownership and deed type.
11. Research property’s public record information for lot size and dimensions.
12. Verify legal description.
13. Research property’s land use coding and deed restrictions.
14. Research property’s current use and zoning.
15. Verify legal names of owner(s) in county’s public property records.
16. Prepare listing presentation package with above materials.
17. Perform exterior “curb appeal assessment” of subject property.
18. Compile and assemble formal file on property.
19. Confirm current public schools and explain their impact on market value.
20. Review listing appointment checklist to ensure completion of all tasks.
Listing Appointment Presentation
21. Give seller an overview of current market conditions and projections.
22. Review agent and company credentials and accomplishments.
23. Present company’s profile and position or “niche” in the marketplace.
24. Present CMA results, including comparables, solds, current listings and expireds.
25. Offer professional pricing strategy based and interpretation of current market conditions.
26. Discuss goals to market effectively.
27. Explain market power and benefits of multiple listing service.
28. Explain market power of Web marketing, IDX and MLS.
29. Explain the work the broker and agent do “behind the scenes” and agent’s availability on weekends.
30. Explain agent’s role in screening qualified buyers to protect against curiosity seekers.
31. Present and discuss strategic master marketing plan.
32. Explain different agency relationships and determine seller’s preference.
33. Review all clauses in listing contract and obtain seller’s signature.
After Listing Agreement is Signed
34. Review current title information.
35. Measure overall and heated square footage.
36. Measure interior room sizes.
37. Confirm lot size via owner’s copy of certified survey, if available.
38. Note any and all unrecorded property lines, agreements, easements.
39. Obtain house plans, if applicable and available.
40. Review house plans, make copy.
41. Order plat map for retention in property’s listing file.
42. Prepare showing instructions for buyers’ agents and agree on showing time with seller.
43. Obtain current mortgage loan(s) information: companies and account numbers
44. Verify current loan information with lender(s).
45. Check assumability of loan(s) and any special requirements.
46. Discuss possible buyer financing alternatives and options with seller.
47. Review current appraisal if available.
48. Identify Home Owner Association manager is applicable.
49. Verify Home Owner Association fees with manager–mandatory or optional and current annual fee.
50. Order copy of Home Owner Association bylaws, if applicable.
51. Research electricity availability and supplier’s name and phone number.
52. Calculate average utility usage from last 12 months of bills.
53. Research and verify city sewer/septic tank system.
54. Calculate average water system fees or rates from last 12 months of bills.
55. Or confirm well status, depth and output from Well Report.
56. Research/verify natural gas availability, supplier’s name and phone number.
57. Verify security system, term of service and whether owned or leased.
58. Verify if seller has transferable Termite Bond.
59. Ascertain need for lead-based paint disclosure.
60. Prepare detailed list of property amenities and assess market impact.
61. Prepare detailed list of property’s “Inclusions & Conveyances with Sale.”
62. Complete list of completed repairs and maintenance items.
63. Send “Vacancy Checklist” to seller if property is vacant.
64. Explain benefits of Home Owner Warranty to seller.
65. Assist sellers with completion and submission of Home Owner Warranty application.
66. When received, place Home Owner Warranty in property file for conveyance at time of sale.
67. Have extra key made for lockbox.
68. Verify if property has rental units involved. And if so:
69. Make copies of all leases for retention in listing file.
70. Verify all rents and deposits.
71. Inform tenants of listing and discuss how showings will be handled.
72. Arrange for yard sign installation.
73. Assist seller with completion of Seller’s Disclosure form.
74. Complete “new listing checklist.”
75. Review results of Curb Appeal Assessment with seller and suggest improvements for salability.
76. Review results of Interior Decor Assessment and suggest changes to shorten time on market.
77. Load listing time into transaction management software.
Entering Property in MLS Database
78. Prepare MLS Profile Sheet–agent is responsible for “quality control” and accuracy of listing data.
79. Enter property data from Profile Sheet into MLS listing database.
80. Proofread MLS database listing for accuracy, including property placement in mapping function.
81. Add property to company’s Active Listings.
82. Provide seller with signed copies of Listing Agreement and MLS Profile Data Form within 48 hours.
83. Take more photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography.
Marketing the Listing
84. Create print and Internet ads with seller’s input.
85. Coordinate showings with owners, tenants and other agents. Return all calls–weekends included.
86. Install electronic lockbox. Program with agreed-upon showing time windows.
87. Prepare mailing and contact list.
88. Generate mail-merge letters to contact list.
89. Order “Just Listed” labels and reports.
90. Prepare flyers and feedback forms.
91. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability.
92. Prepare property marketing brochure for seller’s review.
93. Arrange for printing or copying of supply of marketing brochures or flyers.
94. Place marketing brochures in all company agent mailboxes.
95. Upload listing to company and agent Internet sites.
RELATED: Your Custom Home Marketing Plan
96. Mail “Just Listed” notice to all neighborhood residents.
97. Advise Network Referral Program of listing.
98. Provide marketing data to buyers from international relocation networks.
99. Provide marketing data to buyers coming from referral network.
100. Provide “Special Feature” cards for marketing, if applicable/
101. Submit ads to company’s participating Internet real estate sites.
102. Convey price changes promptly to all Internet groups.
103. Reprint/supply brochures promptly as needed.
104. Review and update loan information in MLS as required.
105. Send feedback e-mails/faxes to buyers’ agents after showings.
106. Review weekly Market Study.
107. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale.
108. Place regular weekly update calls to seller to discuss marketing and pricing.
109. Promptly enter price changes in MLS listings database.
The Offer and the Contract
110. Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents. 111. Evaluate offer(s) and prepare “net sheet” on each for owner to compare.
112. Counsel seller on offers. Explain merits and weakness of each component of each offer. 113. Contact buyers’ agents to review buyer’s qualifications and discuss offer.
114. Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible.
115. Confirm buyer is pre-qualified by calling loan officer.
116. Obtain pre-qualification letter on buyer from loan officer.
117. Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date.
118. Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent.
119. Fax copies of contract and all addendums to closing attorney or title company.
120. When Offer-to-Purchase contract is accepted and signed by seller, deliver to buyer’s agent.
121. Record and promptly deposit buyer’s money into escrow account.
122. Disseminate “Under-Contract Showing Restrictions” as seller requests.
123. Deliver copies of fully signed Offer to Purchase contract to sellers.
124. Fax/deliver copies of Offer to Purchase contract to selling agent.
125. Fax copies of Offer to Purchase contract to lender.
126. Provide copies of signed Offer to Purchase contract for office file.
127. Advise seller in handling additional offers to purchase submitted between contract and closing.
128. Change MLS status to “Sale Pending.”
129. Update transaction management program to show “Sale Pending.”
130. Review buyer’s credit report results–Advise seller of worst and best case scenarios.
131. Provide credit report information to seller if property is to be seller financed.
132. Assist buyer with obtaining financing and follow up as necessary.
133. Coordinate with lender on discount points being locked in with dates.
134. Deliver unrecorded property information to buyer.
135. Order septic inspection, if applicable.
136. Receive and review septic system report and access any impact on sale.
137. Deliver copy of septic system inspection report to lender and buyer.
138. Deliver well flow test report copies to lender, buyer and listing file.
139. Verify termite inspection ordered.
140. Verify mold inspection ordered, if required.
Tracking the Loan Process
141. Confirm return of verifications of deposit and buyer’s employment.
142. Follow loan processing through to the underwriter.
143. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale.
144. Contact lender weekly to ensure processing is on track.
145. Relay final approval of buyer’s loan application to seller.
146. Coordinate buyer’s professional home inspection with seller.
147. Review home inspector’s report.
148. Enter completion into transaction management tracking software program.
149. Explain seller’s responsibilities of loan limits and interpret any clauses in the contract.
150. Ensure seller’s compliance with home inspection clause requirements.
151. Assist seller with identifying and negotiating with trustworthy contractors for required repairs.
152. Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed.
153. Schedule appraisal.
154. Provide comparable sales used in market pricing to appraiser.
155. Follow up on appraisal.
156. Enter completion into transaction management program.
157. Assist seller in questioning appraisal report if it seems too low.
Closing Preparations and Duties
158. Make sure contract is signed by all parties.
159. Coordinate closing process with buyer’s agent and lender.
160. Update closing forms and files.
161. Ensure all parties have all forms and information needed to close the sale.
162. Select location for closing.
163. Confirm closing date and time and notify all parties.
164. Solve any title problems (boundary disputes, easements, etc.) or in obtaining death certificates.
165. Work with buyer’s agent in scheduling and conducting buyer’s final walkthrough prior to closing.
166. Research all tax, HOA, utility and other applicable prorations.
167. Request final closing figures from closing agent (attorney or title company).
168. Receive and carefully review closing figures to ensure accuracy.
169. Forward verified closing figures to buyer’s agent.
170. Request copy of closing documents from closing agent.
171. Confirm the buyer and buyer’s agent received title insurance commitment.
172. Provide “Home Owners Warranty” for availability at closing.
173. Review all closing documents carefully for errors.
174. Forward closing documents to absentee seller as requested.
175. Review documents with closing agent (attorney).
176. Provide earnest money deposit from escrow account to closing agent.
177. Coordinate closing with seller’s next purchase, resolving timing issues.
178. Have a “no surprises” closing so that seller receives a net proceeds check at closing.
179. Refer sellers to one of the best agents at their destination, if applicable.
180. Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.
181. Close out listing in transaction management program.
Follow Up After Closing
182. Answer questions about filing claims with Home Owner Warranty company, if requested.
183. Attempt to clarify and resolve any repair conflicts if buyer is dissatisfied.
184. Respond to any follow-up calls and provide any additional information required from office files.
Like Us on Facebook and Follow Us on Twitter, LinkedIn and Instagram. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this one delivered straight to your inbox. You may unsubscribe at any time.
7 Questions to Ask a Home Inspector Before Your Home Inspection Even Begins
Given a Home Inspector is charged with checking out a home for any flaws before you buy it, s/he’s an important safeguard who could protect you from purchasing a lemon—and squandering tons of cash in repairs.
So, how do you find a reputable home inspector?
It boils down to interviewing home inspectors to gauge how thorough a job they’ll do. To help, here are some of the best questions to ask.
Bonus: This will also help you know what to expect! Knowledge is power, my friends.
1. “What do you check?”
A lot of people don’t know exactly what a home inspector is going to do… it’s a lot! A home inspector scrutinizes a long list of more than 1,600 features on a home. They inspect everything from the roof to the foundation.
Going into the inspection with a clear understanding of what the inspector can and can’t do will ensure that you walk away from the inspection happy.
2. “What don’t you check?”
There are limits. For instance, inspectors are restricted to a visual inspection – they cannot cut holes in walls for that look behind the curtain.
As a result, an inspector will often flag potential problems in the report and you will have to get another expert – a roofer, HVAC person, builder, electrician, or plumber – to come back and do a more detailed examination.
3. “What do you charge for an inspection?”
Home inspections usually cost between $300 and $600, though it will depend on the market, the size of house, and the actual inspector. Generally, you’ll pay the inspector the day of the inspection, so you’ll want to know in advance how much and what forms of payment are accepted.
Beware of inspectors who quote you a very low price. That’s often a sign they’re having trouble getting customers.
Spending on a good inspector will more than pay for itself in the long run.
4. “How long have you been doing this?”
Or perhaps more important: How many inspections have you done? A newer inspector doesn’t necessarily mean lower quality, but experience can mean a lot—especially if you’re considering an older home or something with unusual features.
5. “Can I come along during the inspection?”
The answer to this should be a resounding yes! Any good inspector will want prospective owners to be present at the inspection.
Seeing somebody explain your house’s systems and how they work will always be more valuable than reading a report, and it gives you the opportunity to ask questions and get clarifications in the moment.
If an inspector requests that you not join him, definitely walk away. Run!
6. “How long will the inspection take?”
Inspections often take place during the work week, when the seller is less likely to be around. Knowing how much time you’ll need to block out will keep you from having to rush through the inspection to get back to the office. You’ll get only a ballpark figure, because much will depend on the condition of the house. But if you are quoted something that seems way off – such as a half-day for a two-bedroom apartment, or just an hour for a large, historic house – that could be a red flag that the inspector doesn’t know what he’s doing.
7. “Can I see a sample report?”
If you’re buying your first home, it can be helpful to see someone else’s report before you see your own. Every house has problems, usually lots of them, though most generally aren’t that big of a deal. A sample report will keep you from panicking when you see your own report, and it will give you a sense of how your inspector communicates. It’s another opportunity to ensure that you and your inspector are on the same page.
Always remember that your Patrick Parker Realty Real Estate Expert has a network of trusted home professionals and experts we’ve been working with for years. Don’t be afraid to ask us for referrals.
Do you have Home Inspector nightmare stories to tell as tales of caution? How about Home Inspection successes? Share your comments the Patrick Parker Realty Facebook Page, Twitter or LinkedIn, or on our Instagram feed. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this one delivered straight to your inbox. You may unsubscribe at any time.
10 Rookie Mistakes That Hurt First-Time Homebuyers
If you’re a first-time homebuyer, buying a house can definitely be overwhelming. With an Agent by your side to guide you through the process, you’ll make it through just fine – but you might want to be aware of these rookie mistakes.
FREE DOWNLOAD: The Ultimate Home Buyer’s Guide
If you’re searching for homes for sale on the Jersey Shore or Eastern Monmouth County where the market is ultracompetitive, making one of these mistakes could end up costing you big time.
Here are the Top 10 mistakes often made by first-time homebuyers:
1. Getting too emotionally attached
You’re about to purchase what’s probably the most expensive item you’ve ever bought. So try – as difficult as it is – not to get too attached. There will always be another house if you lose one.
A good tip would be to work with your Buyer’s Agent to find several homes you love so that you’re not too emotionally invested in one.
RELATED: How To Find The Right Buyer’s Agent
2. Finding the home yourself
We know you’re going to browse www.patrickparkerrealty.com and other real estate websites to find homes for sale in your desired location. But don’t rely on just your research skills. Finding your own home can be like diagnosing yourself of an illness.
Let your Agent vet homes for you. A good Real Estate Agent might find you properties that aren’t yet on the market. And of the homes that are on the market, your agent should be able to tell you what the home looks like, where it’s situated, the price per square foot in the neighborhood, and every other detail.
3. Going directly to the listing agent
If you’ve ever played Monopoly, there’s a card you might pick (a bad one) that says, “Do not pass go. Do not collect $200.” It means you did something wrong and now must pay the penalty.
The same applies if you go directly to a Listing Agent who is hired by and represents the seller, not you. Unless the Listing Agent is someone you have worked with or know personally and know they are an amazing agent, this is a big no-no. You need someone representing your best interests and your best interests only.
4. Assuming you have no rules to follow as a homeowner
One of the draws of homeownership is freedom: getting out from under someone else’s rules, whether those of your parents or your landlord. But some homes have deed restrictions that come with conditions.
Deed restrictions vary, depending on the community you’re buying in. Their purpose is typically to ensure the property holds its value, which is a good thing. But if you have plans that conflict with the restrictions, you won’t be a happy camper.
Get copies of the restrictions, read them, and ‘look under the hood’ at the internal health of a condo or homeowners’ association. Look for things like whether reserves are kept, the neighbors are paying their assessments, if there are pet restrictions, and whether you can run a business from the home.
5. Not saving enough money
If you saved up enough money for a down payment, kudos. That’s a huge accomplishment. Unfortunately, it’s only the tip of the iceberg. Transitioning from a renter or your parents’ home to your own home has incidental costs that may be overlooked.
Aim to have two to three months’ worth of mortgage payments in reserve. You should also count on paying closing costs (between 2% and 5% of the home’s price) and property taxes. After moving day, you’ll also need to buy household essentials you’ve never owned before, such as appliances, tools, and garden supplies.
Three to six months of expenses saved up in an emergency fund is even better. It’s not money to buy new furniture or remodel a room. It’s for the unexpected expenses, such as a leaky roof.
6. Not getting pre-approved for a loan
You’ve run the numbers several times now and know just what you can afford. That’s great. But if you want your offer to be taken seriously by the seller, get proof of income and assets in the form of a pre-approval letter from a lender.
This process can take just a few days and simply means that the lender has looked through your financial situation and is comfortable with the idea of lending you a certain amount of money.
7. Paying private mortgage insurance (PMI)
If you don’t put down at least 20%, you’ll have to pay PMI. Many first-time buyers pay this, she says. If you do, make sure you notify your lender when you pay down your mortgage and owe just 80% of the home’s value. Your lender will automatically cancel your PMI when you owe 78%, but you don’t want to pay a month more of PMI than you have to.
8. Not checking the price of homeowners’ insurance
Buying a home on the water is a dream come true for many people. But make sure you can afford to insure that home because it could be pricey. Being on the water means higher wind insurance and, of course, higher risk of flood. Other factors may increase your insurance, such as if your new home has a pool and more. Do your research ahead of time. Your Buyer’s Agent will have a network of experts you can ask about these things.
9. Not checking your credit score
Here’s a weird trivia fact: About 42 million credit reports contain errors. True, the error might be just a misspelling of your street address, which wouldn’t affect you. But some errors could hurt your score badly, such as showing you have late payments when you don’t.
Check your credit at least three months prior to house hunting. If there’s an error, ask the credit bureau to kindly fix it. Your interest rate depends on it.
10. Not getting a home inspection
All homes need inspections, even brand-new ones. But some homebuyers skip this step because they get emotionally attached to the home and want it no matter what. If the home does have issues, you’ll want the seller to fix them or to lower the price.
If you’re first-time homebuyers, you might be a bit shy about asking the seller to fix that stuck window or leaky faucet. But the reality is that the buyers who ask for more often get more. So don’t be afraid to speak up and get outstanding issues fixed before you sign those settlement papers.
Did you make any rookie mistakes and have tips to share? Sound of on our Facebook Page, or on our Twitter, LinkedIn or Instagram feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
Warning: Invalid argument supplied for foreach() in /home/patri034/public_html/wp-content/themes/parker/category.php on line 36