8 Tips for Finding Your New Home
January 28, 2011 by Westside Home Finder

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

Buying a Short Sale
Posted Thursday, February 3, 2011 by admin

Since many of the houses that are currently for sale are short sales, it is very possible that the home you end up liking will be one of them. Since buying a short sale is a complicated and uncertain process, it is important that if you choose to move forward with it, you do it with your eyes wide open.

First let’s talk about what a “short sale” actually is

When a lender agrees to a short sale, it means that the lender is willing to accept less than what is owed to them. For example, if the homeowners/sellers’ loan payoff amount is $200,000, and your offer price on the house is $150,000, the homeowners/sellers will have less than they need to pay off their loan. They will be short $50,000 – hence the word “short” sale.

A short sale is also known as a “negotiated settlement,” and it is a possible alternative to foreclosure for home owners that owe more than their home is currently worth. The transaction takes place between the homeowner and the lender. Depending on the home owner’s individual situation a short sale might offer some notable advantages to them.

How it works

When a property has lost its value to the point that it’s worth less than the loan amount, lenders know that taking back the property through the foreclosure process might further increase their loss. Often, homeowners can convince their lender that taking less than what is owed to them now via a short sale is better than going through the foreclosure process and trying to sell the home later.

How long will it take?

Don’t expect this to be a quick work; negotiating with lenders requires patience on all sides! It can be a lengthy waiting game of weeks, months and sometimes more than a year before an approval is granted. Don’t believe anyone who assures you of a set time line because every situation is different and there’s a lot involved; investors, bureaucratic regulations and insurers that must be handled and satisfied.

Short Sale Success rate

It’s important to understand that if the house is going into foreclosure, putting in your offer and requesting a short sale does not necessarily stop the process. However, though no-one can guarantee success, if you are willing to deal with the uncertainty, it does not hurt to try. All I recommend is that you know exactly what you are getting involved with.

Though the banks are getting better organized and more motivated to approve a short sale, the closing ratio is about two in ten industry wide. This means that if you put in an offer of a short sale you have a twenty percent chance of success.

Will you get a better deal?

Let me give it to you straight – NO! It is a common misconception that just because it is a short sale, it is a better deal. You have to understand that the bank is trying to minimize their losses, and they work very hard to net as much as possible from any transaction, be that through a short sale or an REO (bank owned property). This is not to say that you cannot negotiate a great deal, all I’m saying is that it is not a given and that your chances at a good deal are not increased simply because it’s a short sale you’re buying.

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Home Advantage Realty

2615 Devine Street
Columbia, SC 29205

P: 803 771-2424
C: 803-608-4663
F: 803-771-2422

JillRMoylan@gmail.com