Purchasing your largest investment, your home, can be a trying time. One mistake could cost you thousands, or worse- your dream home. That’
s why utilizing a buyer’s agent agreement is the best way to make sure that you are properly represented throughout the entire process. When you see all of the advantages of a buyer’s agency agreement, its easy to see why having one makes good sense.
The main point of having a buyer’s agency agreement is simple: it ensures that your interests are professionally represented to the highest possible level. What does that entail? It covers everything through the entire buying process. For a seasoned homeowner looking to move, this is still an invaluable service that provides a great deal of direction. But to a first-time homeowner, it is an essential part of making sure that your home buying experience is as pleasant, and as hassle-free, as possible.
When you enlist the services of a buyer’s agent, you are getting your own personal specialist who will not only know all of your intricate needs, but how to bring those needs to fruition in your new home. Their job is to leverage their resources, knowledge and experience in order to place you in the perfect home. They treat your purchase as if it were their own.
In the ever-changing world of real estate, you have to be abreast of all changes in guidelines, procedure and protocol. This are not areas where you can afford to make a mistake. In real estate, there are no second chances. If an error is made, you risk losing your home to another buyer.
Putting a buyer’s agent in place means that they can handle the details and you can focus on what is most important- picking out your dream home. As an added bonus, since buyers agents are paid from the proceeds of the seller, it costs you nothing to utilize their services. So, in essence, they are working for you at no cost. Where else can you take advantage of a professional, and their skills, for free?
Aside from the various ways that you save money, when looking at the advantages of a buyer’s agency agreement, you have to look at the most important one: peace of mind. Knowing that every detail is being handle with precision care takes unnecessary worry, confusion and stress out of the equation. This then allows you to concentrate on your new home and the years of wonderful memories that you can look forward to making there.
Homeown
ers all across the country find themselves in the uncomfortable situation of slowly losing the grip on their home. This is no different for residents of Boise, Idaho. But there is an answer. Boise short sales offer a chance for homeowners to walk away without suffering the paralyzing effects of foreclosure.
Simply put, a short sale means that a bank is willing to accept a payoff that is short of what is owed on the loan. By labeling a home as a short sale, they are advertising their intention to the public. This draws in a much larger crowd of potential buyers and gives the bank a much greater chance of selling it sooner.
Why would a bank make such an offer? Because in the end, it saves them money. Foreclosures cost banks an obscene amount of money, in holding costs, maintenance, repairs (when applicable), attorneys fees, lost revenue and lost return on their investment. The quicker they can stop the “financial bleeding”, the better off they will be. While this is bad news for them, it translates into good news for sellers.
Now, buyers are being told that they can not only buy a nice home, but that they have the opportunity to purchase it at less than the market value. This gets the home off of the bank’s books and the buyer walks in with a good deal. Not to mention that you, the seller, eliminates a foreclosure from your credit. Everyone wins.
But there are other benefits to a short sale. When a home is foreclosed, the bank then comes after the seller for the difference between the sales price and the loan balance. This could represent a considerable amount of money. But a short sale is different. The bank agrees to take what is offered for the home as final payment. That takes the seller out of further obligation and they walk away owing nothing more.
Another important consideration for Boise short sales is that it prevents the occurrence of a foreclosure on the seller’s credit. Even though there is no way to avoid late payments from appearing, it is still a much better scenario than a foreclosure. Being able to start rebuilding your life, without the shadow of a foreclosure, and without additional debt on a home that you no longer own, is a golden opportunity that any distressed seller should seize.
Selling a home involves a careful blend of specialty areas, some of which include marketing, follow-up, market information and negotiating skills. Even with so much importance riding on the sale, many Americans still make the decision to try to sell their home themselves. Thats why its important to know the benefits that are derived from using a selling agent.
When sellers are asked why they would take on such a monumental task, the most common answer is always to save on the commission. But when you break down a deal, the truth is that there really isn’t any money being saved. In fact, sellers typically end up actually losing money- sometimes considerable amounts of it.
Take a look at marketing. A selling agent contracts to show your property and answer any questions or concerns. They are professionals at marketing homes and have access to venues, professional associations and marketing features that the general public simply does not. This gives them an incredible edge on exposing your property to the maximum number of potential buyers.
Next is showings. Buyers want to look at homes on their schedule, not yours. When a seller is responsible for showings they have to work it around their schedule. But if a home is too complicated to make arrangements to see, a buyer will simply pass on it and move on to the next one. If a seller is at work, on vacation, running errands,etc., this will undoubtedly be the exact time that someone wants to come by. A selling agent is always available to seize the opportunity to showcase your home- no matter when it is.
Who are these people? When a seller shows their own home, they have no idea who they are letting in. There is no real way to screen callers except to ask key questions. But what are those questions? The truth is, a seller has no idea who is calling, what their intentions are and how serious of a buyer they are. Buyers agents are trained to recognize serious buyers and separate them from the “lookers”. Only qualified buyers who are ready, and most importantly able, to purchase should see your home.
But this is not only important from a convenience factor, but as a safety measure, as well. In regards to convenience, it is a well-known fact that buyers will not spend as much time in a home if they are being followed around by the seller. However, a selling agent can be in place to answer questions and assist with the showing without creating an uncomfortable situation. They are merely there to inform.
As for safety, no one should be allowed into your home unless they have been thoroughly screened. How will a seller do that? There really isn’t a viable system in place for them to adequately accomplish this, either. Selling agents, on the other hand, know how to make sure your home, your family and your possessions remain safe.
Negotiating is the final reason to hire an agent. They know the ever-changing real estate industry and all of the guidelines, amendments and stipulations that go with it. Paperwork, standards, and criteria change constantly. Not being abreast of these changes could cost you a sale. Leave this to the professionals. Just like you would never trust a medical issue to anyone but your doctor, you should always place the sale of your largest investment in the hands of someone who does it for a living.
Selling a home can create some tense situations. But nothing is more stressful than a home that has been on the market and not sold. Unfortunately, when potential buyers continue to see your home on the market week after week, their first impression is that something must be wrong with it. In reality, if a home is marketed properly, in good condition and priced right, there is no reason why it shouldn’t sell.
So, the questions is: how do you properly market a home, what do you classify as “good condition” and what is the “right price”? The reality is when a home has been sitting the seller and/or the agent does not know the real answers to each of these question.
Marketing: There are many different ways to market a home. But you can’t go with cheap marketing: it has to be something that produces results. Publications are outdated, as are newspaper classifieds. Take advantage of the Internet and all its possibilities since this is where buyers are starting their searches. Listing services are important, too. If there is more than one in your area, it needs to be in each one.
Good condition: Sellers need to look at their home from the viewpoint of a potential buyer. That bright purple bedroom might have gone perfectly with little Becky’s bedroom set, but to the potential buyer it looks like a lot of priming and painting. Three words of advice: neutral, neutral, neutral.
Buyers like homes that are “move-in ready”. Go through the home and make sure that it is as close to that as possible. Bring a friend or neighbor over and let an unbiased set of eyes take it all in. Clean carpets and patched holes go a long way. Even little things like running a bead of fresh caulk around the bathroom sink, a new shiny mailbox or new flowers planted in front of the home shows that you care about your property. If a buyer sees a lot of little projects throughout the home that need immediate attention, they begin to wonder what else is lurking that they can’t see…
Price. The single most argued point in real estate. Sellers need to understand that it doesn’t matter what they paid for their home, what they have done to it, what their neighbor claims they paid for their home or what they want or need to get out of it. None of that determines the overall price. The market determines what a fair asking price is. Period.
While upgrades are a great idea, it does not constitute a price increase for that amount. For example, if a seller spends $40,000 to remodel a kitchen, that does not give them automatic clearance to increase the price by $40,000. The key word with pricing is comparables. A selling agent has to look at the comparable properties that have sold. That is what a good buyer’s agent will do when they conduct their search and that is exactly what the appraiser will do when they are asked by the bank to appraise the home for a new loan.
Short sales offer buyers an excellent opportunity to snag a nice home at a great price. The problem is that any other potential buyer looking at homes in your price range has the same idea. So what do you do? To avoid losing the home of your dreams, the most important thing that you should undoubtedly ask yourself is: “what price should I offer on a short sale home”?
A short sale occurs when a homeowner notifies the bank that they can no longer afford their home. Instead of immediately foreclosing, the bank agrees to take less, or “short” of what is owed on the loan as payoff. While this can produce great deals for buyers, the competition is fierce. So pricing is everything.
In order to find the right price, you will want to employ the services of a buyers agent. Since they normally are compensated from the proceeds of the seller, their expertise, knowledge and experience cost you virtually nothing. For short sales, a buyer’s agent is compensated by the bank- not the seller.
Your buyer’s agent will need to run comparables for the neighborhood. This is important because if the home goes under contract, this is the exact information that will be used to justify the loan amount to the bank.
Often a bidding war will break out between several buyers. For a great home in a great location it is not uncommon for the bank to receive as many as 15 offers. At some point, the bank may have to cut off accepting offers due to the sheer volume that they are receiving so you want to get your offer in as quickly as possible.
When you submit your offer, it is vital that you submit what is referred to as your “highest and best offer”. For homes with multiple bids, sometimes the bank will come back and ask for “highest and best”, but there is no guarantee that they will. Often, the bank won’t go back to all of the buyers and ask them to resubmit another offer because this ties up the bank’s time and can create a bidding frenzy.
Making the right offer the first time means taking the comparables into account and seeing how much room there is between the asking price and what the home would typically be worth. But don’t waste time dickering over a small amount of money. A home can be lost for a difference as little as $100. Remember: for every $1000 you pay for a home it only increases your monthly payment by approximately $7. If you are contemplating adding an additional $1000 to your offer you have to ask yourself if you want to risk losing your dream home over $7 a month?
A buyer’s agent does not do appraisals so they can never guarantee what a home’s value is- only an appraiser can do that. But they can tell you a close proximity of what a good offer price would be, based on the comparables.
When banks look at offers they are looking at what they will net when all of the deductions are made. Banks do not only take the offer price into consideration, they have to look at everything else that is going to cost them money For example, most buyers ask for closing costs to be paid by the seller (bank). If two offers come in at the same price and one is asking for $1000 less in closing costs to be paid, they will get preference.
Selling your Idaho home takes some time and effort, but here are a few tips and suggestions to help improve the look and appeal of your home when selling.
Throughout the house
1. Open the draperies, pull up the shades and let in the sunlight.
2. Create a positive mood. Turn on all lights, day or night, and install higher wattage light bulbs to show your home brightly.
3. Remove clutter from each room to visually enlarge the room.
4. If you have a fireplace, highlight it in your decorating.
5. Keep your home dusted and vacuumed at all times.
6. Have a family “game plan” to get the home in order quickly if necessary.
7. Air out your home for one-half hour before showings, if possible.
8. Lightly spray the house with air freshener so that it has a chance to diffuse before the buyer arrives.
9. Put family photos in storage.
10. Replace carpet if it does not clean up well.
11. Improve traffic flow through every room by removing unnecessary furniture.
12. Create the feeling of a spacious entry area by using decorative accents and removing unnecessary furniture.
13. Putty over and paint any nail holes or other mishaps in the walls.
14. Paint all interior walls a neutral color to brighten the home and make it look bigger.
15. Repair or replace any loose or damaged wallpaper.
16. Clean all light bulbs and light fixtures to brighten the home.
17. Repair or replace any loose or damaged wallpaper.
18. Use plants in transitional areas of your house.
19. Make the most of your attic’s potential.
20. Remove and/or hide excess extension cords and exposed wires.
21. Open doors to areas you want potential buyers to see such as walk-in closets, pantries, attics, etc.
22. Remove all smoke and pet odors
23. Repair or replace banisters and handrails.
In The Kitchen
24. Microwave a small dish of vanilla twenty minutes before a showing and place it in an out-of-the-way-place.
25. Highlight an eat-in area in your kitchen with a table set for dinner.
26. The kitchen and bathrooms should always be spotlessly clean.
27. Expand your counter space by removing small appliances.
In the Bedrooms
29. Create a master suite effect in your decorating.
30. Depersonalize bedrooms and decorate in a neutral scheme.
31. Make sure that the beds are made and the linens are clean.
32. Organize closets, remove unnecessary items and put them in storage.
In the Bathrooms
33. Do not leave towels around and wipe down the sinks and shower areas after each use.
34. Re-caulk the tub if the caulk is not sparkling white
35. Repair or replace broken tiles in the shower/tub
36. Replace shower curtains and keep them clean
37. Put out fresh towels and decorative soaps
Outside
38. Keep the yard mowed and raked at all times.
39. Use flowering plants to dress up the yard, walkway, and patio.
40. Remove all toys, bicycles, tools, unsightly patio furniture, and trash from the yard.
41. Porches, steps, verandas, balconies, patios, and other extensions of the house should be kept uncluttered, swept and in good condition.
42. Paint all entrance doors.
43. Make sure the garage door opens easily. Fix and paint the garage door if necessary.
44. Trees and shrubs should be trimmed and pruned.
45. Clean and shine all hardware and accessories indoors and out (door knobs, knockers, lamps, mail box, address numbers, etc.)
46. Use a new doormat
47. Be sure front doorbell is in good working order
48. Be sure front door and screen door works perfectly.
As a home buyer, you may not have any idea that it is a great time to purchase right now. There are many different reasons why buying a home during this particular real estate market could be of great benefit to you. Let’s take a look at some of the top reasons you should be in the market for new property right now.
One of the best reasons to purchase right now is that sellers are highly motivated to sell their homes. In fact, experts believe that prices won’t get any lower in most markets. There is an overabundance of inventory which means that sellers are more willing to negotiate with you. The inventory of homes for sale is at a 15 year high. Home sellers know that the competition is stiff, so they must be willing to create a win-win situation for all parties.
Another great reason to buy right now is because FHA loans are set to increase. Many first-time home buyers understand the importance of FHA home loans. The Federal Housing Administration insures the loan which means that your lender can offer you a great deal including low down payments, easy credit qualifying and the low closing costs.
When it comes to mortgage interest rates, you can hardly beat the historically low rates being offered right now. This gives buyers a unique opportunity to purchase a larger house for less money and a lower interest rate. It’s the perfect storm for buyers!
Contrary to what many people believe, real estate values over the long term will continue to increase. Real estate has always been a long-term investment, so this dip in the market will not affect the viability of putting your money into real estate over the long haul. In fact, over the past 30 years, the median price of existing homes has gone up an average of 6%+ every year.
The benefits of homeownership have always been important to buyers. The American dream is owning a home. Not only do you get fantastic tax benefits, but you also get the security of knowing that you are investing your hard earned dollars into a piece of real estate.
Even the Federal Reserve did a study showing that the average homeowner’s net worth is 46 times the net worth of the average renter. The question comes down to whether or not you want to put your money into a long-term investment or pay off someone else’s mortgage? Every month, you still have to make a payment on a property. Wouldn’t you rather that your money goes into your own pocket by paying your own mortgage?
You are currently standing in the middle of a fantastic buyer’s market. There has never been a better time to buy a house! With mortgage rates at an all time low, highly motivated sellers and housing prices more reasonable than ever, now is the time to find your perfect piece of the American dream.
People are often perplexed when trying to decide between renting and buying a house. There is no question that the American dream is to buy a great home in a great area for a great price. Several studies have shown that home ownership not only adds value to communities, but it has positive effects on children and even increases voter participation rates.
Over two thirds of American households own their home. These people know the financial benefits of owning property. Not only do you accumulate home equity, but you will have the pride of owning your own home. So what are some of the best reasons to buy a property instead of renting?
You have to remember that when renting a property you are paying off someone else’s mortgage loan. Instead of putting that money into your own pocket each month in the form of home equity, you are paying toward the American dream for someone else. You don’t get any of the tax benefits associated with homeownership either. Instead, your landlord gets to reap those benefits.
Over the past decade, the cost of rental housing in the United States has gone up on average about 3.5% each year. If the trend continues upward, that means that an apartment or home rental that costs $1000 per month now will increase to about $1300 per month in 10 years. As an example, if you rent the same home for 10 years the total amount you would pay in rent would be $140,777.
If you think about that for a moment, the amount is staggering. None of that money comes back to you as an investment. If you had owned a home, you would be getting the tax advantages plus the investment of paying towards your own property. Your own money circles back to you in the form of tax savings.
Owning your own property also reduces your federal income tax bill. As you pay down your mortgage loan, your equity increases. This means you are increasing your wealth each time you make a payment. If home prices rise, you have even more equity to add to your nest egg. Because of the growth potential of real estate and the historical proof, buyers usually come out ahead of the game.
Even when the real estate market is down, owning property is still a less volatile investment than most stocks. In the end, you always have your property. It is well known that home ownership builds wealth in families.
If you’re wondering whether or not you should buy right now, you need to understand that there has never been a better time. Home prices are at an all-time low along with interest rates. In addition, sellers are more willing to negotiate than ever before. This puts buyers in a prime spot for being able to negotiate the best price and terms. Renters don’t have this capability. Renting a property will never put you on the path to wealth. Owning real estate gives you your share of the American dream.
If you are interested in Boise real estate, you need to know more about the area and why so many people are attracted to it. Boise has a perfect combination of small-town living mixed with the access of a big city.
People who live in Boise are accustomed to living in a safe place around lots of friendly people. There are all kinds of different businesses in Boise ranging from small mom-and-pop shops to large industries. From agriculture to high tech, Boise has something for everyone. In fact, the city is home to campuses of companies such as Microsoft and Hewlett-Packard.
With historic sites to see and abundant nightlife, Boise really offers a lot to potential home buyers. You can take in a movie at our local multiplex or grab a meal at the popular Cheesecake Factory. There truly is something to do for everyone.
If you’re in the market to purchase a home, Boise real estate is something to consider. If you’re looking for that small-town feel without being too far from civilization, Boise offers that and more. The first step to purchasing a home in our lovely area is connecting with a real estate professional who knows Boise inside and out.
With reasonable property prices and low interest rates, we can help you find the perfect home at the best price. Just like any other area of the country, Boise also has opportunities such as foreclosures and short sales that you can purchase for a fraction of the value. This means that you can get more house for the money!
Before you start looking for a home, we can point you in the right direction by connecting you with a top-notch mortgage professional who will look at your financial situation. Our mortgage professionals will be able to pre-qualify you for the best loan that meets your needs. They will then give you a prequalification letter that will allow you to prove to potential sellers that you are serious about buying a home.
Once you have your loan squared away, we will be able to pull up a myriad of different homes that meet your criteria. Our goal is to find the perfect home in your price range. We can sit down with you and determine the best home that meets your needs. By providing up-to-date market data, we will also make sure that you make the best offer on your dream property. You will pleasantly surprised at the wide variety of options you have when it comes to Boise real estate.
With more home sellers having problems making their monthly mortgage obligations, the idea of doing a loan modification has become pretty tempting. However, some new statistics released from Moody’s Investors Service are leading some people to believe that loan modifications are only a temporary fix to a long-term problem.
The new statistics released showed that most sellers are only delaying the eventual foreclosure or short sale of their home. According to the report issued in February, Moody’s found that modified loans were three times as likely to go into default over the next 12 months when compared to a non-modified loan that was current.
The agency looked at 2 million loans backing residential mortgage-backed securities pools securitized after 2005. They found that 47% of all loans in the sample were shown as current after modification but still defaulted within 12 months. This is compared with only 16% of unmodified current loans.
The statistics also showed that unmodified jumbo loans defaulted at a lower rate than subprime loans. However, modified loans defaulted at about the same rate across all types. Defaults on modified loans are primarily directed by the borrower’s ability to pay. Moody’s says that the terms of a modification can determine whether or not a borrower is able to be successful in repaying the loan.
Looking at modified subprime loans, every 20% reduction in the monthly payment causes the 12 month default rate to drop by 10%. Some modifications include principal forgiveness which creates an average payment decrease of 34%. The agency said that this resulted in the least amount of delinquent borrowers at the end of their first year. Other parts of a loan modification usually include rate reduction, forbearance modifications and term extension. The average payment reduction is typically between 20% and 25%, but those modifications have resulted in higher levels of delinquency.
The lowest delinquency rate seems to come from modifications that have a balance capitalization to achieve the lowest possible average payment reduction.
Moody’s looked at all of the major lenders to see how they were doing when it came to loan modification delinquencies. Bank of America experienced the highest level of default within a six-month period at 33%.
