Archive for the 'Buyers' Category

What “AS IS” Means

September 24th, 2008 categories: Buyers, Short Sales & Foreclosures

With the increase in banks owned properties it is becoming very common to see properties that are being sold in “as is” condition. 

For the most part “as-is” condition means that the property is being sold exactly as it is when you see it.  It is a safe assumption to believe that the bank has never actually seen the property they are selling and that they are selling it making no representations to it’s conditions. 

As a buyer, it is important that you do your homework.  You can still do a home inspection on these properties and always should make your purchase contingent on having it done.  Understand that your inspection is for informational purposes only but if you find something that you are not willing to pay to have fixed that you have a way out. 

If you are doing a home inspection, make sure that the water to the property is turned on in advance.  You cannot do a thorough inspection of the homes systems without running water.  Especially if the home has been sitting vacant for any time period.  If you are using FHA financing, the appraiser will not appraise the property if the water is turned off.   

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Vote For The Continuation Of Down Payment Assistance Programs

September 4th, 2008 categories: Buyers, opinion

Part of the new housing bill passed that goes in to effect October 1st is the removal of down payment assistance programs such as Nehemiah and Ameridream. 

These programs have been very helpful for buyers who do not have the full 3%, soon to be 3.5%, down payment required by FHA loans.  They allow the sellers of the property to contribute to the down payment required by the lender. 

On October 1st this will no longer be allowed.   Family members can still contribute to the required down payment, just not the sellers of the property.  Sellers can however still continue to pay for the closing cost of the purchaser.

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3 Reasons Why Right Now Is An Awesome Time To Buy

August 12th, 2008 categories: Buyers

When is the best time to buy?

You buy a car at the end of the year. 
You shop for clothes at the end of the season. 
And you buy a house when the market is down.  

Here are 3 reasons why RIGHT NOW is an incredible time for first time buyers to buy….

1.    Interest Rates Are Low.

For the past few years we have been spoiled by low interest rates in the 5’s or 6’s.  If you believe that this is normal, it is important that you realize that an average rate is much higher so don’t be upset if they shoot up by over a percent at any moment.

2.  Buyer Assistance Programs.

On October 1st down payment assistance programs such as Nehemiah and Ameridream which allow the seller of a home to pay the 3% down requirement for a home will be gone.  You can still receive this money from your family but if you do not have this option it would be a good idea to pull the trigger on a home asap.

3.  Tax Credits are Available.

First time home buyers can now receive UP TO 10% of their homes value up to $7,500 depending on when you purchase or purchased a home.  This is pretty nice bonus from uncle Sam. 

New First Time Buyer Tax Credit

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New First Time Buyer Tax Credit

August 7th, 2008 categories: Buyers

If you are a first time buyer Uncle Sam is offering a nice incentive of up to $7,500 for buying your first home or if you haven’t purchased a home in the last 3 years. 

The credit is more like a loan in that it does have to be paid back over 15 years.  However, with no interest compared to a 7% loan you could save up to $4,200 over a 15 year repayment period. 

Check Out This Site For More Information

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3 Ways To Know You Did Not Get Ripped Off…

June 23rd, 2008 categories: Buyers, Real Estate News

A few weeks ago my 2 year old camera decided to stop working all together.  I have to be in the top 5 list for thrifty shoppers in Loudoun so I went in to my 3 week long education mode of shopping sites, visiting stores, asking smart people, and then when it was time to pull the trigger on buying a camera I did what all thrifty shoppers do….. go to ebay. 

Before it arrived I boasted to my friends what a great deal I had gotten and that I would be happy to let them know how it turns out.  Well, last Thursday it arrived… I open up my new camera box to receive the fruit of my labor and there it was.  A camera… that would have been cool if I would have purchased it 5 years ago…. SLOW , LARGE , and needing AA BATTERIES.  So much for my great deal. 

Well, when it comes to purchasing homes in a market when there are a lot of great deals out there, how can you rest at night knowing that you received a good deal and didn’t get ripped off? 

This is actually a HUGE question so I will attempt to answer this with 3 tips I believe you find helpful and that I may expound upon in the future. 

1.  Don’t Purchase During Your First Time Out-  I know that I will be put in Realtor time out for this one because there is nothing greater for a Realtor than a quick and easy transaction.  But remember, this isn’t about me.  This about you sleeping good at night and knowing you didn’t miss an opportunity. 

It is sooooo important that you choose the neighborhood that you are going to live in for at least the next few   years based on at least a little research.  Pull the crime reports, check out the schools, talk to a few residents, find the nearest major roads, etc…  Listen, it is always tempting to pull the trigger during a huge builder sale and sometimes you should.  However, this is too big of a decision to make without a night of sleep between it.

2.  Know That Specific Market-  Apples and Apples, Oranges and Oranges…  But when it comes to striking a deal you had better know the Read the rest of this entry »

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Special Deals For Uncle Sam’s Loudoun Children

May 29th, 2008 categories: Buyers, Real Estate News

Loudoun’s County Chairman Scott York is planning to bring before the board of supervisors an item that would gauge the interest of a program that would allow county employees, including firefighters, teachers and deputies, to get a low interest loan for housing according to the Ashburn Today newspaper.  The details of a program are still being worked out. 

I love my job but there are some days when being a county employee sure are tempting.  If anything, I know the pain of paying for my own individual insurance.  Being apart of the governments benefits sure are appealing compared to what I pay. 

Fairfax and Prince William Counties are also working on plans to assist their employees and residents.  From my understanding they are seeking to figure out ways to assist with their own in purchasing foreclosed homes.  The money for Loudoun would come from a Housing Trust Fund.  Many area developers pay in to this fund when Read the rest of this entry »

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Fannie Mae Is Getting Another Facelift

May 27th, 2008 categories: Buyers, Real Estate News

I wrote an article a couple of months back concerning 100% financing going away for areas deemed a “declining market.”  Since most places are in this categorie it has become the norm to put at least 5% down on a home unless you were using non-conforming loans.  In fact 5% was the minimum you could expect, many have had to put down over 10%.   This stretch has forced some buyers out of the market until they were able to collect the needed assets before buying.  

The principle with loans for the last year has been to expect change hour by hour.   Things seem to change daily.  And, so that I don’t contradict that principle you should know that Fannie Mae is adjusting again.   Don’t be dismayed, this is a good one. 

The Associated Press says, “The government-sponsored mortgage finance company said Friday it will require minimum down payments of between 3 percent and 5 percent for all loans that it guarantees. That replaces a December policy that required a higher minimum if the loan was for a home in a zip code with declining real estate prices.”

Since neighborhoods can vary in value within zip codes they are allowing appraisers to make the determination of if a home is in a declining market. 

Related Articles

A Great First Time Buyer Option

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Earnest Money Deposit

May 21st, 2008 categories: Buyers

If you are planning on purchasing a home there are expenses that you need to know about in the beginning.  Expenses you can expect to pay depending on your specific transaction can range from hundreds to thousands of dollars. 

You can choose not to pay for a home inspection or radon test.  However, it is rare that you will be able to place an offer on a home without an EARNEST MONEY DEPOSIT (some times called a Good Faith Deposit).  When making an offer on a home a buyer will place an agreed upon amount of money in the hands of an agreed upon third party who holds the money until the ratification of the contract.  After ratification the third party will deposit the money in an account and hold until settlement. 

If the deal is never ratified (accepted by both sides) then the money will go back to the purchaser.  If it is ratified and falls through before settlement the money will be handled in accordance to the contract.  It is possible depending on where the deal is, that the purchaser will get the money back with no issues.  If all of the contingencies of the contract are removed  and the purchaser defaults and does not go to settlement then the purchaser may forfeit the money depending on the contract and state laws. 

If the deal goes to settlement the money will be forwarded to the settlement company to assist with the closing costs. 

If you are looking for more information read this article.

It is not my intent to give legal advice.  You should speak with an attorney if you need more information on the earnest money deposit.  Each state may different laws and contracts in how the deposit should be handled.

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The Dream Stays Alive

April 21st, 2008 categories: Buyers

I just returned from a settlement that I was very happy to be apart of. 

My clients just purchased their first home in Virginia after living here the last couple of years.  They are a wonderful hard working family of 5 who have been renting various homes while in the Northern VA area.  With the current market shift they were able to find a fantastic town house in a convenient neighborhood to call their own.  

They did not buy with the goal of an investment.  They simply wanted a place to settle down while their kids grow up instead of moving every year or two.  They are also excited about the money they will save on a monthly basis because of the tax benefits that come with home ownership.    Congratulations on your new home!

FYI… These clients found this home the first day it was on the market because they had signed up to be emailed homes that matched their criteria on my automated home search… You can try it for free also so that you never miss another listing. 

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Loudoun and Fairfax Investors. Don’t Miss Your Chance!

April 7th, 2008 categories: Buyers

It is one thing for me as a Realtor to motivate you about the times that we are in when it comes to buying.  It is another thing for an outside source with no vested interest to say the same thing. Time magazine published a great article called “Ignore The Headlines,” on the current real estate and financial market.  Here is a clip…

Let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.Consider a typical home that sells for $218,9 Read the rest of this entry »

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