Qualifications
NY State Licensed Real Estate Broker
Broker / Co-Owner of Corcoran Legends Realty
Certified Buyers Representative (CBR)
Consumer Credit Expert (CCE)
Chairwoman of the Hudson Gateway Association of Realtors Education Council
Graduate of the Floyd Wickham S.M.A.R.T. Program
The S.M.A.R.T. program focuses on presentation, negotiation and selling skills, creating referral relationships, time management skills, and the principals of providing exceptional service. Graduates must complete an intensive 42-day training program and demonstrate mastery of the essential program skills.
Memberships
Member of the Hudson Gateway Association of Realtors - HGAR (formerly WPAR)
Member of the One Key/Hudson Gateway Multiple Listings Service - One Key HGMLS (formerly WPMLS)
Member of the New York State Association of Realtors - NYSAR
Member of the National Association of Realtors - NAR
Member of the Point2Homes National Listings Service
Member of the Top 5 Real Estate Network
Director of the Pocantico Hills Residents Association Board - PHRA
Awards
From Hudson Gateway Association of Realtors:
Numerous Top Sales and Outstanding Service Recognition Awards,
including Platinum Service Awards for 2007 and 2010
From Westchester Magazine:
Voted FIVE STAR Real Estate Agent from 2010 through 2024 (15 years in a row)
From Legends Realty Group:
Chairman's Elite Club from 2013 through 2024
Affiliations
Legends Realty Group is an independent affiliate of the Corcoran Group which has thousands of talented real estate professionals working out of over 120 offices serving clients throughout New York City, Westchester, The Hudson Valley, The Hamptons, South & Central Florida, Northern & Southern California, Chicago & Reno/Tahoe, and other locations.
The addition of the Legends offices to the Corcoran network shows their continued commitment to grow its affiliate program throughout Westchester County. Watch for more exciting and useful information about the real estate market, such as video shorts, downloadable brochures, proprietary articles, market news, Q&A libraries, and much more, all located at www.westchester-real-estate.us and www.phyllislerner.com.
I am committed to providing the best in information and support in all of your real estate transactions. For more information about working with me, I invite you to call or text me at 914-438-7556.
Office Locations
Bedford - Briarcliff Manor - Tarrytown - Irvington - Bronxville
"Phyllis, thank you for all your help and walking us through both the sale of our old home and the purchase of our newly built home. For us, it was an overwhelming process and your expertise and patience helped us every step of the way. You explained everything completely and your constant communication kept us updated. You gave us all the information we needed and we could see you were serious about craft. Your knowledge of the Westchester area and real estate, in general, was a Godsend. We were ready to give up and accept quite a bit less than we asked for our old home, but you advised us to hold firm and we benefited. You were also there every step of the way for the purchase of our new home, which was no easy feat. We were purchasing a new build which took much longer than expected and you made sure no detail was overlooked. We would not hesitate to recommend you as you are an honest, knowledgeable, and reliable person. Once again, thank you so much.” Lois & Angelo Arena
"Phyllis has been our agent on two homes that we bought/sold. She always keeps our interests in sight and is the most ethical realtor I have ever worked with. She is a pleasure to work with and our home sold in a very short time. Offers came in quickly and she was there to usher us through the process answering a lot of questions and instilling confidence. I would have no hesitation in recommending Phyllis to anyone in search of a home, or selling their home. She is the best!" Carrie Julian
"Thank you for all your efforts to sell our mother's apartment. Between you and your husband you were miracle workers! From knowing the right color to paint the walls, styling and staging the apartment, to making the most of the light and views of the river - and your negotiating skills - you made it an easy and thoughtful experience. I personally appreciate your support, engagement and experience. I couldn't have asked for a better partner - you are amazing. Wishing you continued success. You were a pleasure to work with." Elizabeth B.
"Phyllis was absolutely wonderful. She stuck with us through the several years that it took to finally find and obtain our perfect home. She did it all with patience, kindness, and sage advice along the way. I would not hesitate to recommend her to any one looking to buy or sell their own home, and we will absolutely turn to her again in the future." Kristen Troyansky
"We are repeat clients, we love working with Phyllis! We recently sold our house with Phyllis and she took such great care of us and our interests. She makes the process easy and low stress, very trustworthy. We highly recommend!" Alexis McGuffin
"I, and my family members, have bought and sold a number of residential and commercial properties throughout the years with the expert help of Phyllis Lerner, and will continue to do so in the future. All of us work only with her if it comes to real estate related matters because she is not only extremely knowledgeable, thorough, motivated and a top negotiator but also a very caring human being; in short an individual who represents the very best of her profession. She is one of the most respected and well known Realtors in Westchester County with impeccable and varied connections throughout and beyong her coverage areas. We can, without any reservations, recommend her services to anyone seeking to buy, sell, lease or rent in Westchester County. You will not be disapointed while working with her." DC
"Phyllis became part of the family. She listened to our needs and wants, patiently and attentively. With her advice and guidance we were able to really focus our search. Her listings were spot-on, she asked all the right questions, and she was a great sounding board. After 5 months of seeing countless homes, we are now in our forever home in a great community, all thanks to Phyllis." SC
"I am delighted to write this recommendation for Phyllis Lerner. I interviewed Phyllis as a possible real estate agent to help me sell my Father’s condominium on Martling Avenue in Tarrytown, New York. I live in Connecticut and needed a person that was reliable, trustworthy, and would not require me to consistently come to Tarrytown. Phyllis was caring, compassionate, knowledgeable, and understood my issues with the sale. During this time, Phyllis staged, showed, and offered advice about the sale. The transactions were completed smoothly and with very little conflicts which can occur with the selling of a home. I recommend Phyllis Lerner without reservation and encourage you to meet with her." Susan Sadowski
"After speaking to Phyllis for the first time, I had a feeling that it wouldn’t take very long before she sold my coop. In only a few weeks, many prospective buyers viewed the apartment and I accepted one of the offers. She was extremely knowledgeable, had good ideas and advice, and kept me always informed. I was impressed at how hard she worked. She treated the sale of my apartment the same as if it had been a large house. I would recommend Phyllis Lerner to anyone who was looking to buy or sell a home." Ed Kramer
"Thank you dear Phyllis! I can't believe how long ago we began our journey of seeing a million homes with you and all the back and forth it took until we fianally realized we had found our dream home! Thank you so incredibly much for all your long, hard work that you put in, and for all your patience. kindness and support along the way! You truly are a gem, and we will continue to refer you to all our friends and family for years to come. Wishing you and your family all the health, love and success this year?" Nina & Bryan Lubin
"Many people think they can sell their home without using a realtor. Personally, I can't imagine not having Phyllis Lerner as our partner on our recent sale and purchase. From her first viewing of our house before we listed it to the closing on our purchase a few months later, Phyllis was helpful, knowledgeable, accessible, responsive, accurate, pleasant and focused. Phyllis' professionalism and deep knowledge of the local area made what is a most stressful process almost easy and fun! I can't recommend Phyllis more highly. She expertly navigated and coordinated the different parties, the different opinions, and our daily interest in seeing houses of all shapes, sizes and price ranges. Phyllis' care for her clients goes above and beyond. Thank you for easing us out of our family home and into what will (eventually) be our dream home." Joan Waters
"Phyllis helped us sell our house when we moved out of the area. She gave us good advice about how to price our house and then marketed it to a wide variety of agents and buyers. When we ran into some bumps in the sale, she guided us through how to handle the issues. Phyllis is vey knowledgable and professional. She also obviously cares about providing excellent service to her clients. I recommend her to any friends who are looking to buy or sell a home in the area." Susan Burlazzi
"We worked with Phyllis Lerner for over three years to find the right house after leaving New York City. Of course, Phyllis' knowledge, network, and work ethic are impeccable. However, it was her patience, flexibility, and understanding of the pressures and concerns of new home buyers which were really amazing. Phyllis became our trusted advisor and friend, who took the time and care to work and help us make the right decisions. She also went above and beyond to ensure our process and move were perfect. We strongly recommend Phyllis Lerner when buying or selling a home." Mounir
"When my wife and I were looking to purchase our first home many years ago, we turned to Phyllis Lerner. She was so wonderful, that when we later decided to move again, years later, we again reached out to Phyllis. Despite the various logistical hurdles presented by Covid-19, Phyllis was absolutely terrific. She showed us countless homes and was always honest, fair and patient. Even when late stage hurdles presented, Phyllis wisely navigated us through those hurdles and helped develop pragmatic solutions. Put simply, we would never think of using any Realtor other than Phyllis (we love her husband Hans too!)." Heidi & David Lackowitz
"Thanks a lot Phyllis! It was truly wonderful getting to know you and work with you. Our house is really everything we were looking for, and we are very thankful for your help getting it. Very truly yours." Christine & Colin
"Thank you Phyllis for all your time, patience and advice! Mike and I are so happy where our family wound up. You are amazing!!" Melissa & Mike Sullivan
"Working with Phyllis was such a pleasure! I can’t gush enough about how much we appreciated her vast knowledge of all of Westchester and her willingness to go above and beyond on all our requests. Her upbeat attitude, patience and advice were invaluable assets along our home hunting journey. I would, and do recommend Phyllis to anyone considering moving to the Westchester area. She helped us find our dream home, now hire her to help you find yours!" Melissa Sullivan
"Dear Phyllis & Hans, thank you so very much for all that you have done - at least onethousand and one things - to facilitate the sale of my family home. With gratitude and appreciation, Michael." Michael Thatcher
"Phyllis is the only person you'll ever need to sell or buy your home. Phyllis is professional, personable and very knowledgable. She sold my condo in 8 days for above asking and was there for me every step of the way." Lauren Cozzolino
"Phyllis Lerner is the perfect real estate agent. She handled both our sale and purchase. She got us asking price on our sale and a great deal on our purchase. She was knowledgable, thorough, and completely trustworthy. She took all the anxiety out of the process! The whole thing couldn't have gone smoother. We highly recommend her for all your real estate needs!" Glenn Berger
"Phyllis was fabulous to work with. She met all obstacles head on and dealt with the process like a seasoned professional. I would recommend Phyllis and her team for all your real estate needs. She made a stressful situation not so stressful and I am now happy to have her as my friend." Tara Schjorring
"Phyllis is a consummate professional who goes above and beyond for her clients. Phyllis was our agent for two different house sales and in both cases she advised us on the best price to ask and did everything she could to ensure that our homes sold quickly and seamlessly. Phyllis responds immediately to your questions or concerns and truly makes the process of selling a home much less stressful." Sue & Michael Holzmann
"We were referred to Phyllis and she was an amazing real estate agent every step of the way. This was our first time buying a house so we had so many questions and concerns that she always addressed. To make things worse, we were very picky (champagne taste with beer budget) but she was extremely patient to help us through the long and difficult search until we found our perfect home. Houses were flying off the market at such a fast pace and it gave us an advantage to have someone as responsive and knowledgeable as Phyllis. We cannot thank her enough and would not hesitate to use her again if (hopefully not!!!) we are ever in the market for a new house again." Michael Farruggia
"Dear Phyllis, we are in our new house and couldn't be happier, thank you for all your hard work and support through this process! We really appreciate you always making yourself available, your fast communication with us as well as other agents and sellers, your sage advice, and great attitute. We always felt well supported and taken care of by you. We especially valued your willingness to get things done when other parties dragged their feet during our closing process. Despite the typical emotional roller coaster that is buying your first home, you made us feel comfortable the whole way through. Hans was great too! Thanks, Alexis & Tom." Alexis & Tom McGuffin
"Dear Phyllis, thank you so much for helping us find the perfect home and being so great throughout the home buying process! When we met, you instantly tuned into to what we were looking for and were able to advise on additional things to consider. Your advice was always genuine and catered to our best interest. Your thorough knowledge of Westchester was extremely helpful in picking an area that was best suited to our needs. Your dedication and support really assisted us in making a decision and placing an offer. Your expertise helped secure the house after it went into bidding and we felt comfortable and calm the entire time. In contract, the amount of follow up and detective work you did to answer any open questions was admirable and we were so grateful to have you in our corner. As first time home buyers, we could not have been in better hands. We are so extraordinarily happy in our home and couldn't have done it without you!!!" Yuliana Reilly
"Do you have a best friend in the Real Estate business? Well, we do now! Phyllis Lerner works for you as if you are one of her best friends. She makes sure your property is priced right, looks great, and is ready for market. Selling a home is stressful enough but having someone like Phyllis on your side helps in every way." Roger Chookazian & Gina Fazzinga
"Dear Phyllis and Hans, I don't believe there are to many couples around that can say that their Real Estate experiences in the Pocantico Hills community, which initiated over 30 years ago began and ended with the same wonderful person but that is exactly what our experience has been with you Phyllis. You first introduced us to Pocantico Hills back in 1982 and sold us our first home here and now with your knowledgeable, expert, professional advise, guidance and extremely diligent hard work helped us to sell our very loved home in Pleasantville. Both you and Hans were wonderful in all aspects of our transaction and helped us obtain maximum results in a very challenging market. The result of our sale will absolutely help set the course for what we hope will be many years of enjoyment and adventure as we enter our new and exciting lives in Sunny Florida. We can only express our deepest and sincere appreciation and gratitude for a job very well done. Once again, we will reiterate that you were the only Broker we ever considered for the sale of our home. Our advise for people looking to buy or sell a home in Westchester County and especially Pocantico Hills, the only person to call is Phyllis Lerner. Live and be well, with continued success in everything you do. Yours truly, Nancy and Jesse" The Goldsteins
"Phyllis faced many challenges in selling my house - seller living out of state, a divorce, and listing a house in the midst of a renovation. She gave us smart advice about where to focus renovation resources to command top return on investment. Her guidance on pricing the house meant we met our target price, sold the house quickly, and had multiple offers. Phyllis is a smart realtor and a great communicator. There was no B.S. and she got the job done in the exact way we asked. Thank you!" Jarah Meador
"Phyllis went above and beyond while handling the sale of our house. Everything she advised on and speculated about was accurate and it made the house selling process easier than I could have imagined. I will only work with Phyllis from here on out!" Laura Cassar
"Phyllis successfully navigated us through a complicated buy-sell. She cared to make sure we found a home that was right for us, and was a reliable sounding board throughout the entire process. Moreover, she knows all of the Rivertowns very well. All went smoothly, thanks to Phyllis!" Julie & Brad
"Thank you so much for all your guidance and help with the purchase and then the sale of our home. It was the perfect fit for our family for the last 5 years. We are so very grateful for all your efforts! Best of luck to you and your family. Love, the O'Donnell Family." O'Donnel Family
"We are happy to be home. Thanks for everything you did. Phyllis, you worked day and night - literally - by phone, text and email - and were always in touch when I needed you. Thank you. Your professionalism and dedication made the difference." Claire
"My family was in the process of relocating to Westchester County from Central New Jersey. Phyllis was highly recommended to us by a colleague of mine, and the recommendation could not have been a better fit for us. We started working with Phyllis several months before we put our house up for sale, as we wanted first to get a good feel for the housing market here in Westchester. Throughout the process, Phyllis was patient, informative, understanding, responsive and a true professional. After only a few outings, Phyllis was able to lock in on our needs and preferences. This made the searching more productive and saved us the trouble of looking at homes that did not fit our criteria. My wife and I feel that we have gained a friend as well as a Realtor. Even after months of being in our new home, I have contacted Phyllis for various recommendations or general information. She is always responsive and willing to help. In my line of work, I have dealt with many Realtors; and Phyllis is at the top of my recommendation list." Eugene Knowles
"Anyone who has sold a house or has purchased a home knows how time consuming and frustrating it can be. My situation was one where both needed to be done at the same time. Phyllis made the procedure pleasant and as stress free as possible. She not only talked me through every stage of the process but she also went above and beyond in helping complete each task. Phyllis took the time to get to know what I was looking for in my new home. She researched many places and sought out the kind she knew I would like. She was more than patient and understood how hard this process is on a personal level. On the selling side, she was right on target on what was needed to be done as far as updates to the home and other details for reselling a home. Phyllis was always reliable and was always available to either show the home I was selling or show me a place I wanted to see. I always felt comfortable contacting her about any part of either process and she always took the time to speak with me and explain everything in full detail. Phyllis was so dependable and such pleasure to work with. Her honesty and dedication to each client’s personal taste and situation is such a unique quality and made my experience pleasant and worry free. I would recommend Phyllis to anyone either selling or buying a home, I can assure you she will help you through every stage and make the experience a great one!" Sue Carissimo
"Dear Phyllis, we wanted to thank you again for helping us getting the house of our dreams in Briarcliff Manor. We are very grateful and happy to have moved to such a beautiful and relaxing home building memories for our family." The Bakers
"Phyllis, just wanted to send you a little note letting you know how much I have appreciated you helping my Dad and I from start to finish with our search for a home here in Tarrytown. You have been a big help and it is not everyday you come across genuine people like yourself. Thank you again for all you've done to help us with our home search. Kind regards, Nikki." Nicci Bonica
"We can't thank Ms Lerner enough for finding us a perfect home in Westchester. We decided to ask Phyllis for expert help after surfing her excellent website, which allows buyers to conduct their own MLS searches. When we met her, we knew immediately she was the agent we needed. She understood our needs and guided us through a 13 months search, respecting our frequently conflicting wishes. Phyllis is thoroughly professional and delightful at the same time. We could not have had a better agent keeping our interests in mind. Thank you, Phyllis, for finding us a gorgeous home with river views and close to a train station that works for him and for her, and the entire family. And thank you for remaining a friend and adviser on all matters Westchester." Anna & David
"I wanted to persoanlly thank you and your staff for the professional and personal way you handled our home shopping needs. I know we probably made you crazy at times too. We now have everything we wanted on our "want list" and everything from our "wish list" and more. Every night I come home from work and look around and still can't believe we finally found what we were looking for. Especially after the revolving door of other realtors that just didn't listen or hear what our needs and wants were. In contrast, we found in you a real estate professional who would listen, have the patience needed to deal with us and knew what she was doing. Your frank honesty and expert guidance were refreshing and in the end, we not only ended up with the best realtor, we ended up with a new friend. Thank you, Phyllis." Christine & Maddie
"My wife and I had the pleasure of working with Phyllis Lerner last Spring as we searched for a house in Pocantico Hills and Pleasantville. We found Phyllis to be extremely knowledgeable, professional and helpful during the entire process. Looking for a new home is exciting but also stressful and Phyllis did everything you could ask a Realtor to do and more. I would highly recommend her to anyone who is looking for a new home and wants to work with somebody with extensive knowledge and always puts the client first." Griff & Alicia Murray
"You are a true professional and an asset to your profession. Thanks again for all your help, we love our new home." Peg & Dennis Wallace
"I met Phyllis Lerner on a whim when I was beginning my search for a new apartment. I downloaded the Trulia app on my phone and began sending e-mails to many Realtors when I came across apartments I was interested in viewing. From the second I met Phyllis, I realized she was the type of Realtor I needed to work with. She had a very gentle, patient way about her and as a first time home buyer, that gave me a very comforting feeling. From that point on my search for an apartment became a little easier and went very smoothly. Phyllis answered every question I had (and believe me I had many) without hesitation! She even walked around a hilly garden apartment complex looking at different apartments on a day when temperatures hit record high degrees this summer... and she did it without rushing me or showing me any type of problem at all! In fact she made sure that I saw as many apartments in my price range and with the amenities that I wanted as possible. This helped me immensely when I made my final decision because I was able to make comparisons and weigh the pros and cons for the places I had viewed. All in all, Phyllis helped make a process that can be extremely stressful and difficult go very smoothly for me. I would highly recommend her to any and all people I know who are searching for a new home!" Kim Nieves
"Sowmya and I would like to thank you for helping us find and buy our new house. You were always so patient with us through all our stages of buying - from window shopping for houses in different areas to get a better idea of the neighborhoods to making offers to settling on the house the kids, Sowmya and I are now enjoying. The process lasted for more than a year, but you were willing to show us around week after week. Sowmya and I often remarked that you always found the right balance between giving us good information and opinions while letting us make decisions at our own pace. We'll surely recommend your services to our friends, and look forward to keeping in touch." Sowmya & Mukund
"Dear Phyllis, again, I cannot give you enough praise for the unbelievable effort you put into selling my investment property - research, pricing advice, hands on staging, marketing, gorgeous virtual tours & multi media ads, sharp negotiating & trouble shooting, closing help were all first class and always done on time despite all the circumstances. I still cannot believe that it sold so quickly and so close to what I had hoped for - despite this market. You and your team are truly miracle workers, an absolute pleasure to partner up with, and I am looking forward to working with you on my next project. Thanks again!" Doug C.
"Hi Phyllis, Melanie said that you wrote her such a lovely email and I wanted to personally thank you for all your efforts on her and Mike's behalf to try to find them a place in Tarrytown. We hope this place will work out and that she will be safe and sound returning to it in the wee hours of the morning but know that she, Mike and all of us will just love the town and environs. You were wonderful to work with. Take care, regards, Mother Gwen" Gwen Moss
"Our experience with Phyllis was superb! Phyllis is very professional, knowledgeable and helpful, and having her represent our property made an otherwise stressful time a breeze. We would highly recommend her to others in the Lower Hudson River area." Ed & Kelly McCarthy
"Phyllis was extraordinary in helping us find our home in Chappaqua while we resided in Europe. Given our personal circumstances, the process was long and difficult. We therefore really appreciated Phyllis' flexibility, dependability, patience and willingness to work with us long-distance on a task that is not easy even under normal circumstances. She always respond immediately to our endless questions, visited properties for us in our absence and never pressured us to make any decisions. She helped us through the home search, home inspection and closing process. In retrospect, we don't know how we would have done this without her help! Moreover, after our successful home purchase, we continued working with Phyllis to rent out our house until we are able to return from our work assignment abroad. This also worked flawlessly thanks to Phyllis and we are very satisfied with the tenants we have. Her husband Hans has proved a great property manager for our new home, too. In essence, we can't thank Phyllis and Hans enough for all they've done for us. We hope to work with them for many more years and can only highly recommend them to anybody either buying, renting or having other real estate business in Westchester." Nela & Eduardo Arboleda
"The last few weeks have been a little hectic, but just wanted to say a huge thank you for all of your help with our co-op sale! We really appreciate everything you did. I know it wasn’t easy (at all!), but you were amazing to work with. Thank you! All the best, Jacqueline and Paul" Jacqueline & Paul Labrocca
"Dear Phyllis, thank you again for all your help and the fantastic job you did with the sale of my home! I will not hesitate to use your services again and to recommend you for any future work to any of my colleagues and friends in the area. Wishing you much success throughout the years!" Joseph Mennonna
"Dear Phyllis, Thank you for all the favors and assistance that you and your husband gave me during the process of selling my Tarrytown condo. You went over and above your responsibilities and I truly appreciate it." Claire Adelman
"Dear Phyllis, I wanted to take a moment to thank you for helping us find our new home here in Tarrytown. And for being such a wonderful agent. You were so patient with us and anytime our parameters changed of what we were looking for you were able to readjust and show us what we wanted. It was a long process but you never once pressured us to make a decision or made us feel like a burden. You are so knowledgeable at what you do which makes all the difference when working with someone on a purchase as important as this. Thanks again!! We are thrilled in our new home. And I'll be calling you again soon to help my mom find a place." Ilene Chouinard
"My husband and I were relocating from California to Westchester and had a week to find a home. We were unfamiliar with the area and had very specific criteria and price range. Phyllis Lerner, from Legends Realty Group, stuck within that, never pushing our parameters. She would pick us and our 9 month old up from our hotel, and spend days showing us neighborhoods and houses. She never seemed tired of us or the long days. On the fourth day we made our offer. From the beginning until we closed, she was there for us as a Realtor and friend. She helped us find a mortgage broker, inspector and lawyer. Phyllis made the closing easier. Her efforts did not end there. She helped us with preschools, workman, contractors and checked in on us after we settled. She remains a friend and we would recommend her to anyone needing a Real Estate Professional. She is fun and caring, someone who's passionate about her work. This is more than a job for her. We were so fortunate to have stumbled across Legends Realty Group and especially Phyllis Lerner." Maggie & Ryan Kadro
"Phyllis helped us immensely through the ups and downs of buying our first home. She is very knowledgeable about the market and the process and was there for us from our first home visit to closing. We had lots of questions and Phyllis had lots of answers and helped refine our search. And when we called to double- and triple-check details, she always called right back and was ready to help with anything - the bank, the attorneys, or the inspection. I don't think we could have done it without her." Evan, Jeanna & Emmett Clark
"Phyllis, I was very fortunate to have met you. You have been helpful, honest, diligent, knowledgeable and committed to my search for the right home in Tarrytown. You patiently guided me and offered suggestions that were right on target, and you were never pushy. You took me to all the homes that I felt might be the one. And on many occasion we would go back to some a second and even a third time. My experience was definitely a pleasant one with your support and guidance. I consider you a friend as well as an excellent Realtor. I would work with you again if I ever to decide to move and I would recommend you to family and friends. Thank you again." Georgia
"As first time home buyers, the entire process can be quite overwhelming. We had worked with other Realtors when we started looking and found that they were not listening to what we wanted. Thankfully, we found Phyllis Lerner. For several months Phyllis took us out to see numerous homes throughout Westchester County. She was always extremely accommodating to our busy schedule - she met us in the evenings and on weekends. She listened to what we wanted and never pressured us into seeing things that we could not afford. She is honest, knowledgeable, hardworking and is a pleasure to spend time with. Phyllis helped to make our dream of homeownership a realty. We would definitely recommend Phyllis to anyone looking for Realtor services!" Jessica Grey & Toni Auer
"I'd like to take this opportunity to thank you and Phyllis for all your hard work and effort in helping us selling our beloved property. Although we loved our home, it was time for Tania and I to depart. After working with a few less than stellar agencies, Legends Realty was able to highlight our home's assets and find a buyer in the middle of a very challenging market. It is with deep appreciation that I write this note to you. Hopefully, we will be able to find something just perfect for Tania in the very near future." Jovi Stevenson
"Phyllis Lerner assisted me for nine months in finding the perfect home around Westchester County. She never used pressure with any home and was always extremely objective. Her personality was always composed and refreshing. This was the second time I worked with a Realtor. The first time was in Boston and Phyllis was better than the Boston Realtor in every facet of the home buying process. The process of buying a home is a daunting task but Phyllis made the purchase a far more satisfying endeavor with her intelligence, insight, personality and charm. I would certainly work with her again when and if the time comes to sell my home and look for a new one." Thomas ODonnell
"Phyllis is one of those rare individuals who actually listens - and then goes the extra mile without having to be asked. I have found her to be highly intelligent and sincerely interested in my best interests. I recommend her without qualification." Greg Dziuba
"Selling our Sleepy Hollow home was a tough decision. Phyllis was a professional, kind, and calming voice. Her honesty and knowledge of the local market helped us price our home at a fair price. Our home sold quickly and the process was as stress free as possible. The Legends office staff and Realtors were always courteous and professional. We would and have recommended Phyllis and Legends to friends." Michael Fox
"After interviewing three real estate brokers, we (I live with my daughter and son-in-law) decided to place our trust in Phyllis. I know Phyllis from my early married years when we were raising our children together in the same development. Phyllis turned out to be best of the best when it comes to being a true real estate broker. She is always available, always willing to do whatever it takes during the whole hectic process of trying to sell a house. Never, ever was she the type who tried to impose her ideas on you. She is a team player, someone you can rely on and believe in. Our Briarcliff Manor house did sell, and there's no price you can put on our gratitude for Phyllis' support and help." Patti Russell
"We are very grateful to Phyllis because she helped us find our lovely home in Hastings On Hudson. During the whole process, she was patient, warm, honest and very helpful. She never pushed us to buy something we could not afford and she was always sincere with us. We are really happy and comfortable with our house, and our daughter is enjoying it a lot. We would definitely recommend Phyllis and wouldn't hesitate to use her services again." Lilla Lugomer
"Phyllis was diligent and flexible. She didn't use any pressure sales tactics, and didn't limit the houses we saw to the ones she, or her company, were trying to sell. She always went out of her way to do what needed to be done (which ended up being a lot on our case!). We felt completely comfortable working with her and would recommend her to anyone looking in the Hudson Valley area." Chris & Megan Whitten
"Dear Phyllis, words cannot express how grateful we are to have worked with you - you are kind, patient and very generous. We thank you so much from the bottom of our hearts - we could not have done this without you! We are so happy with our new home!" Michele, Louis & Rosee
"Phyllis is warm, helpful, honest and committed. Everything you want and need in a real estate broker. Without her help and perseverance we would never have found the home we now love." Lisa & Paul Zedlovich
"I like to share our experience working with Phyllis Lerner. The search for our new home began three months ago prior to meeting Phyllis. During these three months, we had the trials and tribulations that come with house hunting. The agents we worked with would either show us homes that were desirable but clearly out of our communicated price range and vice versa. It was as if no one was listening. Shopping for your first home is filled with its own anxious moments to begin with and the attitudes of the agents were only exacerbating those nervous moments. That changed the day we met Phyllis Lerner. From the first conversation we had, it was obvious that what we wanted was important to her. She showed us three properties that instantly met our criteria. In addition to that, she was intimately familiar with the surrounding area; it felt as if we were getting the inside scoop with every turn we made! It just so happens, we purchased the first property she showed us. Each step of the way, Phyllis was honest and upfront about the next steps and the process. If she didn't know the answer to a specific question, she wouldn't pretend to answer; she would get back to us once she found out, in a timely fashion. Phyllis also has a very professional demeanor. That was never more obvious than during our closing. She was prepared and in control the entire time. The message here would be: buying a home, as we learned, can seem like an insurmountable burden at times. Instead of being one of these obstacles, Phyllis was a valued teammate who helped us to victory." Keith & Adrienne Johnson
"My wife and I recently had the good fortune to work with Phyllis Lerner in our attempt to sell our apartment and find a new home. She was professional, delightful, patient and fun to work with. We were able to sell our Tarrytown place (near ask) very quickly and found a new home that my wife and I both love. Throughout the process, Phyllis was truly a pleasure to work with. She was accessible and actually made the process enjoyable. We will absolutely call upon her again should we ever need a realtor's services." David and Heidi Lackowitz
"Our experience with Phyllis Lerner was great from start to finish. My husband and I were first-time home buyers with lots of questions and concerns, and we didn't want to take chances by picking an agent at random. We set out to meet and compare five different agents in Westchester, and no other agent even came close to Phyllis. It was apparent from the start that she was more professional, more knowledgeable, more attentive, and more patient than the rest. As we went through the buying process with her - looking at homes, settling on one, putting in a bid, and taking care of the closing - Phyllis consistently provided us with the same excellent service. We were especially impressed by how responsive she was in returning our many phone calls and emails quickly with accurate, detailed information. We needed that for our peace of mind. But what we needed most was a home that met all of our specifications, and that's exactly what we got by working with her. Thank you so much, Phyllis!" Rachel Shubert & Hari Ramasamy
"My wife and I cannot express how thankful we are to Phyllis for finding us the HOME OF OUR DREAMS in Tarrytown, NY. We have moved ourselves and relocated with corporations over ten times across the country and we can attest that Phyllis is undeniably the best agent we have partnered with in so many ways. She is very patient and attentive. Phyllis worked for us for over one year to help us find our home and she consistently sent us listings that matched our needs. She is amazingly responsive and more often than not would pick-up phone calls right away or call back within 15 minutes... she made us feel as if we were her only customers! Phyllis went out out of her way to accommodate our busy corporate schedules. She met with us in the evening, weekends and even during the holidays. The most important quality Phyllis possesses that is so important in an agent is her high level of integrity and trust. We never felt pressured to place a bid on a home. She always balanced the pros versus the cons and provided us with an objective and unbiased assessment of each home we viewed with her. Even after we closed on our dream home, we continued to do business with her as she was successful and timely in renting our condo. Phyllis you are absolutely the BEST real estate agent and we thank you for all that you have done for us over the past few years." John & KumRae Lee
"It was raining hard. Id' come down for the day from Massachusetts to begin looking for a new home in Tarrytown. Lucky for me, I met Phyllis Lerner from Legends Realty Group. She immediately got on the phone, arranged several viewings, and off we went with our umbrellas. I knew right away that Phyllis was a pro. During the weeks that followed, she gave me the same prompt and cheerful service, right through the closing of the home of my dreams. Phyllis and Legends Realty Group get an A+." Barbara Friedlich
"You are the first realtor I've worked with who actually listened and did not try to upsell or push us into something we would not be interested in." D.P.
"Phyllis listened carefully to our wants and needs for a new house. She only showed us places that fit our search profile. In the end Phyllis found us a home in Pocantico Hills NY that she knew we would love." Robert & Brenda Misuraca
"Very knowledgeable, very responsible, and has high level of customer service. She listens and gives you what you want. Great pleasure to deal with. I have recommended her to family and some of my closest friends. She is different from other real estate agents and her commitment to the job, integrity and honesty are refreshing." H.S.
"Phyllis Lerner provides the type of service that everyone wishes they could find in a real estate agent - she's diligent, patient, kind, observant of your likes and needs, and a strong advocate for her clients. Wether you're buying or selling (and we did both with her), she delivers. She goes above and beyond for you. Once you've worked with her, you'll never want to deal with another agent again." Elizabeth & Brian Weinstein
"We needed to relocate our growing family from Rockland to Westchester County without breaking the bank. Phyllis found us our dream home at a price we could afford. She also facilitated the sale of our old house through another realtor at our terms. We are extremely happy with our new home purchase and the way our old home was sold." Bob & Cindy Tolomeo
"Simply outstanding, effective and reliable service. Her superior marketing of our Pocantico Hills home, and especially through the Internet, resulted in a quick sale. Phyllis is also an expert negotiator as she handled the multiple offers received in an efficient, fair manner, and in the end our house was sold above asking." Dave Burger & Joan Coffman
Phyllis, thank you so much for all your help selling our parents house. We are so thankful that we found you to help us with this tough process. You made it so much easier for us. Happy Thanksgiving to you and your family. Love, the Hogans
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Read MoreGorgeous 4 bed 3.5 bath custom colonial on 1.5 acres of private land. Pocantico Hills Schools & Recreation!
Read MoreCorcoran Legends Realty maintains offices at: 1197 Pleasantville Road, Briarcliff Manor, NY 10510 38 Main Street, Tarrytown, NY 10591 68 Main Street, Irvington, NY 10533 71 Pondfield Road, Bronxville, NY 10708 634 Old Post Road, Bedford, NY 10506 and serves the lower Hudson River Valley counties
My monthly newsletter highlights many of the most commonly encountered real estate related situations and how to handle them.
Read MoreExplore real estate related news stories as published by the New York Times and learn everything you always wanted to know about buying and selling real estate..
Read MoreNew York City Real Estate Forum is an online publication detailing what is going on in the New York real estate markets as well as the national markets.
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Read MoreBuying your home is one of the most important financial transactions you will probably ever make in your life. I hope that my team and I can help you and ease some of the stress that is often associated with this process. We outlined below how we plan to assist you and what you can expect by working with a Corcoran Legends Realty agent and our team of support professionals.
New York State has very specific agency disclosure laws that govern the way real estate agents work with their clients and customers. Upon first contact, all real estate agents, by law, must walk you through the "443 Form" put forth by the state that explains agency. You will be asked to acknowledge this document and provided with a copy of it.
Once you selected an agent to represent you (hopefully me and my team), you will be asked to sign a contract known as the "Exclusive Right to Represent Agreement". This contract will lay down the more specific actions that the real estate agent will take to accomplish the task, as well as fundamentals of the partnership.
Your Comfort Zone & The Search
Finances
The Offer
The Acceptable Offer
Inspections
The Contract
Appraisal & Loan Commitment
The Final Walk-Through
What Else
The Closing
Not Getting Pre-Approved & Not Protecting Your Credit Score
Failing To Consider Additional Expenses
Being To Picky
Lacking Vision
Being Swept Away
Compromising On The Important Things
Neglegting To Inspect & To Attend Inspection
Not Hiring A Buyers Agent & Using The Sellers Agent
Not Thinking About The Future
What are the advantages of owning a home?There are many. Among the most appealing: you own it, which gives you, instead of a landlord, control of your living space. Other benefits stem from potential tax savings and the build up of equity as your property likely appreciates in price over time. Equity can be used to help put children through college, purchase a second home, or make home improvements.The mortgage interest paid on a home loan is tax deductible, as is the local property tax. If you get a fixed-rate home mortgage loan, you also can invest more wisely knowing your monthly mortgage payment, unlike rent, will not change substantially.
What is the first step to buying a home?Make sure you are ready - psychologically and financially. Ask yourself the following questions: Do I have steady income? Is my debt lower than my total income? Do I have enough money to pay for the down payment and closing costs? Am I working hard enough to improve bad credit?A house needs constant care and attention. Also ask yourself if your budget will allow for unexpected repairs and upkeep. Once you can honestly answer "yes" to these questions, you are several steps ahead of the game and that much closer to becoming a homeowner.
How much can I afford?The general rule of thumb is that you can buy a home that costs about two-and-one-half times your annual salary. A good REALTOR® or lender can determine how much you can afford and estimate the maximum monthly payment based on the loan amount, taxes, insurance and other expenses.
Is it best to save for the ultimate dream home or begin with a less expensive starter home?It can take a long time to save for that perfect dream home. Meanwhile, the market has been flooded with some of the most favorable mortgage interest rates in years. Low rates make housing more affordable, which is why so many buyers have jumped on the home buying bandwagon.Home-price appreciation has also been strong, making very solid gains in communities across the country. In fact, home prices are expected to increase 2.5 percent to 3 percent annually over the next five years.If you purchase a starter home today, you can potentially begin to build value that can lead to the purchase of a larger, or more desirable, trade-up home in the future.
How do you decide whether to add on to an existing home or purchase a new one?There are a few things to consider, including cost, individual needs, and what will add value down the road. Also important: your emotional attachment to the existing home. As designer and builder Philip S. Wenz, the author of Adding to a House: Planning, Design & Construction, notes, an addition is much cheaper than building a new home and can offer a "new" home without the heartache of moving.Other considerations:
Explore your options. Make sure your decision is one you can live with - either under the same roof or under a different one.
What is the best way to find a REALTOR®?Begin by asking someone that you know. Friends, relatives, co-workers, or neighbors who have recently purchased a home can give you a firsthand account and attest to the agent's professional abilities. Sometimes an agent you contact will refer you to another one who works more closely with buyers and sellers in your neighborhood. Once you have a list of names, interview at least three agents and ask questions about their community knowledge, professional experience, and commitment - some agents work full time; others only work at nights and on the weekends.
What can I expect from a good REALTOR®?Competence, efficiency, and ethics. According to the All America's Real Estate Book by Carolyn Janik and Ruth Rejnis, good agents take the time to qualify buyers and show properties in their price range. They plan showing routes carefully and have pre-inspected most properties. They have a thorough knowledge of financing options, are up on the latest housing trends, and share with prospective buyers data on the local housing market and home sales. Good agents also adhere to a strict code of ethics. They avoid high-pressure sales tactics, refrain from showing properties that do not fit your needs or goals, and alert you to problems about the condition of the property. And they show respect for other agents and real estate firms by not "bad mouthing" them.
Is there anything I should not tell my agent?Most definitely! Never reveal the top dollar you are willing to pay for a home. It will severely undercut your chance to negotiate the home price with the seller. While an agent may spend a lot of time showing you homes and sharing information, the reality is that she works for the seller, who ultimately pays each and every agent involved in helping to complete the home sale. The seller pays the agents in the form of a commission, a percentage of the proceeds from the home sale. The exception is hiring your own real estate professional, now commonly known as a buyer's agent or a buyer's broker.
What does a buyer's agent do?A buyer's agent represents the buyer exclusively. This means he works to protect your interests in the transaction and helps to negotiate the best purchase price and terms. More information about buyers' agents is available by contacting the National Association of Exclusive Buyer Agents at (609) 799-4382, or log on to www.naeba.org.
Can I use an agent to purchase a newly built home?Yes. In fact, some builders pay agents to find prospective buyers. But you also can use a buyer's agent to help negotiate the price and upgrades on a new home. An agent can be particularly valuable directing you to newly built developments that match your needs, as well as helping you select reputable builders who are financially sound and respond promptly to buyers' concerns.Builders normally require an agent to be present on your first visit to the site. This is a sensible procedure that allows the agent to be paid a commission should you decide to buy. Otherwise, if you find a development on your own, make a first visit without the agent, and later make a purchase, the builder may refuse to pay the commission - even if, at some point, the agent became involved in the process
Why do I need an agent if I can find a home by myself on the Internet?While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire process: he or she is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction.
Are buyers protected against housing discrimination?By law, REALTOR®'s may not discriminate on the basis of race, color, religion, sex, disability, familial status, or national origin. They also cannot follow spoken or implied directives from the home seller to discriminate. If you suspect you have been discriminated against, a complaint may be filed with the local Department of Housing and Urban Development (HUD) office nearest you. You may call HUD's toll-free number, 1-800-669-9777, or visit its web site at www.hud.gov/complaints/housediscrim.cfm.
How do you determine how much a home is worth?The short answer: a home is ultimately worth what is paid for it. Everything else is really an estimate of value. Take, for example, a hot seller's market when demand for housing is high but the inventory of available homes for sale is low. During this time, homes can sell above and beyond the asking price as buyers bid up the price. The fair market value, or worth, is established when "a meeting of the minds" between the buyer and the seller takes place.
Are there standard ways to determine how much a home is worth?Yes. A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home's value.Your REALTOR® can provide a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties. Reviewing comparable homes that have sold within the past year along with the listing, or asking, price on current homes for sale should prevent you from overpaying.A certified appraiser can provide an appraisal of a home. After visiting the home to check such things as the number of rooms, improvements, size and square footage, construction quality, and the condition of the neighborhood, the appraiser then reviews recent comparable sales to determine the estimated value of the home.Lenders normally require an appraisal - which run between $200 to $300 - before they will approve a mortgage loan. This protects the lender by ensuring the home is worth the money you want to borrow.You also can check recent sales in public records, through private firms, and on the Internet to help you determine a home's potential worth.
What is the difference between list price and sales price?The list price is a seller's advertised price, or asking price, for a home. It is a rough estimate of what the seller wants to complete a home sale. A seller can price high, low - which does not happen very often - or very close to what they hope to get. A good way to determine if the list price is a fair one is to look at the sales prices of similar homes that have recently sold in the area. The sales price is the actual amount a home sells for.
What about appraised value and market value?A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors.Market value is the price the house will bring at a given point in time, once the buyer and seller establish a "meeting of the minds" on price.
What does a home inspector do?A home inspector is a paid professional - often a contractor or an engineer - who checks the safety of a home. Home inspectors search for defects or other problems that could become your worst nightmare later on. They focus particularly on the home's structure, construction, and mechanical systems.It is not the inspector's job to determine whether you are getting good value for your money. He does not establish value, only whether the home might collapse in a storm or if the roof might cave in.A home inspection typically takes place after a purchase contract between the buyer and seller has been signed.
Should I hire a home inspector?By all means. Buying a home without getting expert advice is risky. Once a home inspector uncovers major plumbing and electrical problems, for example, you may decide you do not want to spend several thousand dollars on repairs.Always include an inspection clause in your written offer. This clause gives you an "out" from buying if serious problems are detected. It also gives you another chance to negotiate the purchase price if repairs are needed. The clause can even specify that the sellers fix any problem that is uncovered before you settle, or close, on the home.You also may want to consider hiring experts to inspect the home for a number of health-related risks like radon gas, asbestos, or possible problems with the water or waste disposal system.
How do I select a home inspector?Begin by only hiring one who is qualified and experienced, someone who belongs to an industry trade group, such as the American Society of Home Inspectors (ASHI). This organization has developed formal inspection guidelines and a professional code of ethics for its members. Also, membership in ASHI is not automatic; members must have demonstrated field experience and technical knowledge about structures and their various systems.
Do I need to be at the inspection?No, but it is a very good idea to be there. Following the check-over, the home inspector can answer your questions and discuss problem areas with you. This is also an opportune time to get an objective opinion about the home from someone who does not have emotional or financial ties to the property.
What does homeowners' insurance cover?It protects against disasters - whether natural, manmade or mechanical. A standard policy insures the home, as well as your possessions. Because this insurance is packaged, it covers liability for any harm, loss, and property damage that you or your family members cause others. And it includes additional living expenses in case you are temporarily displaced because of damage from a fire or other insured disaster.While you are not legally required to have homeowners' insurance, mortgage lenders stipulate that you do. It protects their investment in the home in case of a natural disaster or catastrophic event.If your mortgage is paid up - or you never had one - it is still a good idea to have homeowners' insurance to protect your home and your belongings.
What kind of home insurance should I get?A standard policy will do in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war, and nuclear accidents. The policy can be expanded to include these disasters as well as coverage for such things as workers' compensation. In fact, the lender may require that you purchase flood or earthquake insurance if the house is in a flood zone or a region susceptible to earthquakes.You also can increase coverage beyond the depreciated value of personal property such as televisions and furniture by purchasing a replacement-cost endorsement. Home-based business-coverage, once overlooked, is an ever-increasing popular rider. It does not cover liability associated with the business but rather contents such as home office equipment and general liability to cover injuries to clients and employees.Other considerations: an inflation rider, which increases coverage as the home's value rises, and getting insurance that is equal to the full replacement value of the home. Insurance companies usually require an amount equal to at least 80 percent of the full replacement value. Otherwise, only a portion of the loss would be covered.
What is condo and co-op insurance?This insurance protects your investment and personal belongings from most disasters. As an owner, you will need two insurance policies - your own to cover liability, living expenses, your belongings and structural improvements, and a master policy provided by the condo or co-op board. The master policy covers the common areas that you share with others in the building. It is paid for using the monthly condo fee that you and other owners pay.
What about title insurance?Title insurance protects the lender against unclear title to the property you are buying. It is almost always a requirement for closing on a home. If you desire coverage as well, buy an owner's policy, which will protect you against any title-search errors and losses that arise from disputes over property ownership. The cost of title insurance is usually a set value per thousand of dollars of the total loan amount.
Is private mortgage insurance necessary?Lenders require private mortgage insurance (PMI) on most conventional loans with less than a 20 percent down payment. They believe there is a correlation between borrower equity and default. They have found that the less money borrowers put down, the more likely they are to default on a loan. PMI guarantees the lender will not lose money if this happens and a foreclosure is necessary. The buyer pays this insurance, usually a small fee at the outset and a percentage of the face amount of the loan that is added to the monthly payment. What most homeowners do not realize is that the insurance is usually no longer necessary after enough equity has built up in the property. Contact your lender if you meet this requirement and want to drop PMI.A precaution: do not confuse PMI with mortgage life insurance. The latter pays all, or a portion, of your mortgage in the event of your death.
Is it possible to buy a home below market price?Certainly, but do not hold your breath. It takes a lot of determination and time to find a real bargain. But if you are adamant, here are some likely targets to pursue:
With the latter, you may be able to buy a partial interest in this form of title to property owned by two or more individuals because the partners often sell at a discount.However, bargains are easier to come by in a soft real estate market, when the economy is in a recession, and when homeowners, and builders and sponsors of condominium conversions, are desperate to move unsold units.
Are low-ball offers a good idea?Any offer can be presented, but a low-ball one that is extremely less than the asking price can dampen a prospective sale and prevent the seller from negotiating at all. Unless the home is overpriced to begin with the offer will probably be rejected.Do your homework before making an offer. Compare prices of recently sold homes and new listings in the neighborhood. It also helps to know something about the seller's motivation. A lower price with a speedy closing, for example, might motivate a seller who must move, has another house under contract, or must sell quickly for other reasons.Also recognize that while your low offer in a normal market might be rejected at once, it might motivate the seller in a buyer's market to either accept it or make a counter-offer.
Can you negotiate interest rates?A few lenders will negotiate the mortgage rate and number of points on a loan. However, this is more the exception than the rule with established lenders. As always, shop around and know the market before you enter a lender's office. Rates are often published in local newspapers and on Internet Web sites.You may have more luck when dealing directly with a seller who has agreed to finance your loan. He is likely to be more open to negotiation, particularly when motivated to make a quick sale.
What are some negotiating tips?Know the seller's motivation to sell. This will enhance your negotiating position. Sellers who must move quickly due to a job transfer, divorce, or contract on another home, are more inclined to accept a lower price to speed the process along.Remember, too, that the listing, or asking, price is what the seller would like to receive for the home. It is not necessarily what the seller will settle for. So know value. Before you make an offer, check recent sales and listing prices of comparable neighborhood homes and compare them to the seller's asking price.Other tips:
What contingencies should appear in the offer?When you look to purchase a home, anticipate potential problems. But protect against them so that if something does go wrong, you can cancel the contract without penalty. This is what contingencies allow you to do. They should be included in any offer you present to buy a home.Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on your ability to obtain a loan commitment from a lender, and an inspection contingency, which allows you to have a professional inspect the property.Without contingencies, a buyer could forfeit his deposit under certain circumstances if he backs out of a deal.The purchase contract also should include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and making any agreed-upon repairs.
Does the seller take the furnishings once the home is sold?Normally. This is because the fixtures - personal property that is permanently attached to a home, such as built-in bookcases or a furnace - automatically stay with the house unless noted otherwise in the sales contract. Anything that is not nailed down is negotiable, including appliances that are not built in, such as washers and dryers.
Do I need an attorney to buy a home?A lot depends on the state where the property is located. Some require an attorney; others do not.Most homebuyers can generally handle routine real estate purchase contracts as long as they read the fine print and understand all the terms. But pay close attention to any clauses, contingencies, and other special considerations that will allow you or the seller to back out of the contract.When in doubt, consult an attorney. Ask relatives and friends, or your REALTOR®, for recommendations. Call to inquire about their fees and to check their level of experience. Expect that more seasoned attorneys will cost more.
What are closing costs?Closing, or settlement, costs are expenses over and above the price of the property. Both the buyer and seller incur some of these expenses when transferring ownership of a property. Who actually pays, however, often depends on local custom and what the buyer or seller negotiates. Closing costs normally include title insurance, loan points, escrow or closing day charges, property taxes, and document fees. The lender provides an estimate of closing costs for prospective homebuyers.
Is it possible to save on closing costs?Certainly, once you get pass the sticker shock. Closing costs are expensive. They can average between 2 to 3 percent of the total home purchase price. But here are a few ways to save:
Is there anything I should know about closing day?Yes. The following to-do list can help save you a few headaches and keep the closing on track:
How can owning a home pay off at tax time?A home provides many tax benefits, literally from the time you buy to the time you sell. The mortgage interest paid on a home loan up to $1 million for a primary residence or second home is tax deductible every year, as is the local property tax. Other mortgage costs - including late-payment charges and early-payment penalties - are also deductible. And if you use a portion of your home for business purposes, you can take a depreciation deduction as well. Many federal tax benefits are also available from local and state tax agencies. Contact your local tax agency for more information.
Are up-front fees and closing costs deductible?Many of the costs paid at closing are not immediately deductible. The exception is points you pay to purchase your home loan. They are deductible for that year. Points paid when you refinance an existing mortgage must be deducted over the life of the new loan.Some fees - including loan application, appraisal, document preparation and recording fees - that are assessed when purchasing a home can be recouped by adding them to the adjusted cost basis, the starting point for figuring a gain or less when selling the home. Significant home improvements also can be calculated into your cost basis.
Are fees and assessments owed a homeowner's association deductible?Generally not because they are considered personal living expenses. But if an association has a special assessment to make capital improvements, condo owners may be able to add the expense to their cost basis when the property is sold. Another exception may apply if you rent your condo - the monthly condo fee is deductible every year as a rental expense.
Are there tax credits for first-time homebuyers?Yes, thanks to the many city and county governments that offer Mortgage Credit Certificate (MCC) programs, which allow first-time homebuyers to take advantage of a special federal income tax write-off. The credit reduces the amount of federal taxes paid by the buyer each year, if he keeps the same loan and lives in the same house.An MCC also makes it easier for eligible buyers to qualify for a mortgage loan. The lender can reduce the housing expense ratio - the percentage of gross monthly income applied toward housing expenses - by the amount of the tax savings. Normally, lenders reject loans if the housing expense ratio is too high.Program requirements for MCCs vary, although most adhere to the following guidelines:
Why do homeowners have to pay property taxes?Property taxes are assessed by city and county governments to generate the bulk of their operating revenues. The taxes help pay for such public services as schools, libraries, roads, and police protection.Re-valuations of the tax are often done periodically, although the time interval varies from state to state or, in some states, from town to town, and can range from annual reassessments to periods of ten years or more.
How are individual tax bills figured?Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend. It is based solely on how much the property you own is worth. The real property tax is an ad valorem tax, or a tax based on the value of property. Ideally, the owners of property of equal value pay the same amount of property taxes, and the owners of more valuable property pay more in taxes than the owners of less valuable property. The tax is calculated using a variety of formulas and is based on a property's assessed value - its full market value or a percentage thereof - and the tax rate of the taxing jurisdiction, minus any property tax exemptions, such as those offered for the elderly or veterans.
Can I contest my property taxes?Many people do, mainly because determining value can often be tricky. This is especially true in a changing market when local prices either take off dramatically or plunge precipitously, like during the Texas oil bust of the 1980s. While it is up to a professional assessor to evaluate property value for tax purposes, property owners are usually allowed to contest their assessment until a certain date after they are made public.Once you contest, you will have to prove why you think your property is worth less - few homeowners contest hoping to pay more taxes! The two most popular ways for determining value are an appraisal and a comparative market analysis. With an appraisal, a professional estimates the property's market value based on recent sales of comparable properties. A comparative market analysis is an informal estimate of market value performed by a REALTOR® based on similar sales and property attributes. Most agents will offer free analyses to win your business. Contact your local tax assessor's office for procedures on appealing your property tax assessment.
What is an impound account?It is a special bank account held by the lender to collect monthly payments from the borrower to pay property taxes, mortgage insurance, and hazard insurance. These accounts also are called escrow or reserve accounts. Lenders like to set up impound accounts to ensure the property taxes and insurance will be paid on time. They typically also collect a two-month cushion for taxes and insurance at the closing. A few states require the lender to pay interest on funds held in these accounts.
Are impound accounts required for all mortgage loans?They can typically be waived on a conventional loan if the loan amount is 80 percent or less of the purchase price. But the lender might charge you an additional 1/4 point for this option to waive the escrow.One way to avoid an impound account on an owner-occupied mortgage is to raise your down payment amount slightly. The exact amount necessary to avoid the escrow will vary with the lender.In some states, lenders let buyers set up separate accounts in which they place specific funds and then pay the insurance and property taxes themselves. These are called pledge accounts, and they must be set up before you close on the home.An impound account can usually be dropped on an owner-occupied loan once the loan-to-value ratio equals 80 percent or less. But restrictions apply: payments will have to be current and your record of making on-time payments pretty solid. Contact your lender if you meet these requirements and want to drop your impound account.
Are property taxes deductible?Yes. Like the mortgage interest paid on a home loan, property taxes are fully deductible from your income. You may deduct them every year on your primary residence, second home and other investment properties.However, escrow money held for property taxes cannot be deducted until the money is actually used to pay the property taxes.
What is a condominium?Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share - such as the land, lobby, hallways, swimming pool, and parking lot.In addition to paying a mortgage, each owner is responsible for paying a monthly fee to the condo association, which is made up of the unit owners. The fee covers maintenance, repairs, and building insurance.Most housing condominiums are apartments, although there are mobile home condominiums as well.
Why buy a condo?They are an appealing way to enter the housing market if the cost of a single-family home is out of your reach. Condos are especially popular among single homebuyers, empty nesters, and first-time buyers in high-priced housing markets. Unlike a house, condos offer a lifestyle that is free of yard work and exterior maintenance and repairs. Many condominium communities also offer amenities such as exercise rooms, tennis courts, and swimming pools that you might otherwise be unable to afford if you purchased a single-family home.
How do you choose a good condo?Seek ownership in a well-maintained building, and pay special attention to the financial health of the condo association. Lax maintenance may be a sign of financial trouble, which could result in higher maintenance fees and problems trying to resale the property later.Things to consider:
Are condos good investments?They are a good way to enter into homeownership. The high price of single-family homes and the influx into the housing market of more single homebuyers have made condos relatively hot national investments. They have held their value as an investment despite economic downturns and problems with some associations. Condominium associations have also worked hard in recent years to clean up their image. Disputes and lawsuits were once rampant. But now associations have become savvier about property management and have taken steps to prevent legal problems and disputes.
How do townhouses differ from condominiums?While most condominiums are apartments, a townhouse is attached to one or more houses and can run the gamut from duplexes and triplexes to communities with hundreds of homes. Buyers separately own their homes and the land on which the houses sit. With a condominium, the unit owners jointly own the land and this common interest cannot be separated from the others.Townhouses can be structured in many ways. Some, particularly huge communities, have common areas - such as swimming pools - that are similar to condominiums.
What are the pros and cons of owning a townhouse?On the plus side, exterior maintenance and repairs are minimal; there are no neighbors above or below the home like in an apartment; and because the homes are attached, they may offer a greater sense of security.As for the disadvantages, if there is a homeowner's association, buyers will have to pay a homeowner's fee. There is also less privacy than with a detached single-family home. And there are limits on how you can make exterior changes to the home.
What are co-ops?Cooperative apartments - known as co-ops - are not really owned by people as real property. Instead, people own shares of stock in the company that owns the building in which they live. But for all practical purposes, the experts say owning a co-op is almost like owning real property. Personal loans to "buy" a co-op apartment are written almost like mortgages. And the IRS treats co-op owners much like real property owners. They can deduct interest paid on their apartment loans and on their portion of the municipal taxes and mortgage interest paid by the corporation.Shareholders in a co-op are entitled to occupy specific units, use the common areas, and have a vote in the corporation. To maintain this right, they must pay a monthly fee that covers their share of operating expenses.As for governance, a board of directors, which is elected from among the residents, runs the co-op. Under most bylaws, the board may evict any tenant/shareholder who fails to pay the monthly maintenance fee. Everyone is expected to abide by the rules, which may prohibit pets or even children under a certain age.
What are the benefits of having a co-op?In addition to being able to take advantage of tax deductions, the National Association of Housing Cooperatives (NAHC) says shareholders will find that co-ops have low turnover rates, lower real estate tax assessments, reduced maintenance costs, resident participation and control, and the ability to prevent absentee and investor ownership.Also attractive: housing cooperatives come in all shapes, sizes, and types. They include townhouses, mid-and high-rise apartments, garden apartments, single-family homes, mobile home parks, artists' cooperatives, and senior housing. For more information about co-ops contact NAHC at (202) 737-0797, or log on to www.coophousing.org.
Where can you find fixer-uppers?They are literally everywhere, even in wealthy enclaves. What sets them apart is price. They have lower market value than other houses in the immediate area because they have either been poorly maintained or abandoned.To determine if a property that interests you is a wise investment will require a lot of work. You will need to figure out what the average home in the area sells for, as well as the cost of the most desirable ones.Experts suggest that novices avoid run-down properties needing extensive work. Instead, they recommend starting with a property that only needs minor cosmetic work - one that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping, and new appliances.Also, keep in mind that a home price that looks too good to be true probably is. Find out why before pouring your hard-earned money into it.When looking for a fixer-upper, some experts suggest you follow this basis strategy: find the least desirable home in the most desirable neighborhood. Then decide if the expense that is needed to repair the property is within your budget.
Is buying one a good idea in "bad" areas?It depends. So-called "bad" areas - often described as those that are residentially unstable or poor - have offered an affordable means of homeownership for many - particularly young, first-time buyers and low- to moderate-income families interested in a home they can call their own. Whether it is right for you to buy a fixer-upper will depend on your personal threshold for risk and your level of tolerance. That said, however, many run-down neighborhoods, particularly those close to downtown, are benefiting from a residential resurgence as an influx of newcomers jump-start what were once staid, unsafe, or depressed areas.
How do I determine the value of a distressed property?One of the best ways is to get your hands on a comparable market analyses. See what price similar properties have sold for in the past and find out the listing price of others currently on the market.It is important to examine the fixer-upper carefully and figure out how much it will cost to fix any defects or repairs. If you are unable to get in, talk with nearby neighbors about the home's condition.You can also do your own cost comparison by researching comparable properties recorded at the local county recorder's and assessor's offices, or at Internet sites specializing in property records. If the property is in foreclosure, you should get as much information as possible from the lender.
What guidelines should I use to find a contractor?Chances are you will need plenty of help making those major repairs and additions. But the last thing you will need is someone who fails to complete the job or botches it up. Finding good, responsible help is imperative. Here's what you can do:
What kind of return can I expect from home improvements?This will vary depending on the type of work that is done. Remodeling magazine publishes an annual "Cost vs. Value Report'' that can answer this question in more detail, based on the top 15 home improvements. A recent study it conducted says the highest remodeling paybacks have come from siding and window replacements, major kitchen remodeling, bathroom and family room additions, and mid-range master bedroom suites.An important point to remember is that remodeling not only improves a home's livability, it also enhances its curb appeal with future buyers.
How can I finance work needed on a fixer-upper?According to the Millennial Housing Commission created by Congress, few lenders are willing to administer home improvement loans. Most prefer to make home equity loans or unsecured consumer loans because they are easier to manage. Home improvement loans usually require inspections and irregular draws on the loan amount as work is completed, which requires regional or national lenders to find local partners to provide oversight.Financing repairs and improvements with home equity is okay for most homeowners, but it is difficult for many first-time buyers. They have lower-incomes, smaller savings, and have made lower down payments on their homes than first-time buyers a decade ago. So they have little equity to borrow against. Unfortunately, it is often lower cost older homes purchased by first-time buyers that need the most work.Unless you have a cash reserve, you will have to shop around for the best borrowing terms. In addition to the options listed above, you can ask relatives for a loan. Borrow against your whole life insurance policy. Refinance your existing mortgage. Get a second mortgage. Contact the government about home improvement programs. And - only as a last resort - borrow from a finance agency, which generally tend to charge high rates.
Does the federal government offer home improvement programs?Yes. Among the most popular:
What about state and local governments?Just about every state now offers loans for renovation and rehabilitation at below-market interest rates through its Housing Finance Agency or a similar agency. Call your governor's office to get the name and phone number of the agency in your area.At the municipal level, many cities also have programs for special improvements to certain blocks and neighborhoods they are trying to spruce up. Call City Hall, as well as a Community Development Agency in your city.
Are special tax breaks available for historic rehabilitation?Certified historic structures now enjoy a 20 percent investment tax credit for qualified rehabilitation expenses, if they are income producing properties. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district that is certified by the government. The tax code does not allow deductions for the demolition or significant alteration of a historic structure. For more information, contact the National Trust for Historic Preservation at (202) 588-6000, or visit its web site at www.nationaltrust.org.Many states offer tax incentives, reductions and abatement programs for owners of residential historic homes. These programs are described on the National Trust's web site.
Can you negotiate the price of a new home?In real estate, almost everything is negotiable, so it is certainly worth a try. Now, this does not mean the builder will fall down and roll over. It is very common for builders to claim that their prices are based on fixed construction costs. Perhaps, but timing is everything.A builder is more likely to be flexible on price at the very beginning and end of a project. Early on, most developers want to move people in quickly so the project builds momentum. In the end, they may be more inclined to accept lower offers when only a few units are left.If you are unable to negotiate on price, negotiate for a better lot location or amenities, such as a carpet upgrade or light fixtures. A developer will rarely pass up a deal over a few hundred dollars' worth of carpeting.
Should I hire a home inspector for a new home?You would think not since it is new and the developer has to adhere to local construction guidelines. However, err on the side of caution - always hire an inspector, whether the home is old or new.You can ask the builder to provide copies of any inspection reports on the property, architectural plans, surveys and pertinent construction documents for your inspector to review.The inspector should either be a professional home inspector, an engineer, an architect or a contractor. When hiring a professional inspector, look for one who belongs to a home inspection trade organization, such as the American Society of Home Inspectors (ASHI). This group has developed formal inspection guidelines and a professional code of ethics for its members. Membership in ASHI is not automatic. Proven field experience and technical knowledge about structures and their various systems and appliances are required.As for rates, they vary greatly. Many inspectors charge about $400, but costs increase based on the scope of the inspection.
What else should I take into account when buying a new home?You can find out more about an existing property and neighborhood before you buy than you can a new home in a newly developed community.When the home is on the outskirts of town, ask the developer about future access to public transit, entertainment venues, shopping centers, churches, and schools. Also review local zoning ordinances. A remote area can quickly turn into a fast food haven. You want to ensure the neighborhood will not spiral out of control and lose its residential appeal.Other things to consider:
Do builders provide financing?Many builders offer financing incentives to help move more buyers into a project. In fact, major building companies often have their own mortgage brokerage subsidiaries, while many other builders routinely refer buyers to "preferred" local lenders. If it is a buyer's market in your area, you can be sure developers will offer incentives such as low-down-payment financing or interest rate subsidies.
hould I buy a vacation home?The second home market has more ebbs and flows than the primary home market. Sales are iffy in a bad economy except, perhaps, on the high-end. That said, there is a growing trend toward the purchase of vacation homes. They are being bought for investment purposes, enjoyment, as well as retirement. In the latter instance, some people are buying with the idea of turning a vacation home into a permanent retirement haven down the road, a move that puts them ahead of the game now.Some of the tax benefits mirror those for a primary residence. Mortgage interest and property taxes are deductible, which helps to offset the cost of the home payment. And if you treat your second home as a rental property, you can fully depreciate it as well. But you are only allowed to occupy it for two weeks a year, or 10 percent of the total rented time, whichever is less. Before taking the leap, ask yourself if you can afford to carry two mortgages, maintain two households, and pay the extra utilities and maintenance costs. Also, learn about financing requirements and options, which can differ slightly from those on a primary residence.
What about a vacation home as an investment?Like any investment, it can be risky. Location and current market conditions are extremely important when deciding whether to buy. Other things to consider:
What causes a foreclosure?A lender decides to foreclosure, or repossess, a property when the owner fails to pay the mortgage. Unfortunately, thousands of homes end up in foreclosure every year. Many people lose their homes due to job loss, credit problems, divorce, unexpected expenses, and during periods of economic instability. Failure to pay property taxes may also cause a homeowner to lose his home. Trouble can also arise when owners neglect to pay local water bills and home insurance premiums.
Where can I find foreclosure properties?Look in the legal notices section of your local newspaper. A notice is also usually posted on the property itself and somewhere in the city where the sale will take place.However, REALTOR®'s are the best source for information about foreclosures before they begin. Often a property will be listed and the agent will know if it is approaching foreclosure. Perhaps the best way to get the information is to have your agent put the word out that you are looking for properties with pending foreclosures.Another source can be the bank or financial institution that holds the mortgage. Of course, they generally will not give you the names of those who are facing foreclosure, but they may give the property owner your card or phone number.Buying foreclosures is not easy. Savvy investors are highly skilled at nabbing these properties. Inexperienced buyers may find themselves surrounded by pretty stiff competition. They will need to get as much information as possible, including a "foreclosure inspectionreport" and an appraisal from the lender.
What happens at a trustee sale?When a homeowner falls behind on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The lender that initiated the foreclosure proceedings will usually set the bid price at the loan amount. Successful bidders receive a trustee's deed as proof of ownership. Trustee sales are advertised in advance and require all-cash bids, which can include cashiers' checks. Normally, a sheriff, constable, or lawyer conducts the sale and acts as the trustee. Because these sales typically attract savvy investors, inexperienced buyers should come extremely prepared.
What are the disadvantages of buying foreclosures?Buying directly at a legal foreclosure sale is risky. Among the disadvantages:
How do I find government-repossessed properties?The Department of Housing and Urban Development (HUD) acquires properties from lenders who foreclose on mortgages that it insures. These properties are then available for sale to potential homeowner-occupants and investors only through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.The Department of Veterans Affairs (VA) also acquires properties as a result of foreclosures on VA guaranteed loans. These acquired properties are marketed through a property management services contract with a federal bank that then lists them for sale with local REALTOR®'s.
What are some of the guidelines for purchasing HUD foreclosures?If you have the cash or can qualify for a mortgage, you can buy a HUD home. Down payments vary depending on whether the property is eligible for FHA insurance. If so, the down payment can be lower than the 5 to 20 percent required on conventional loans. HUD requires that all accepted offers be accompanied by an earnest money deposit equal to 5 percent of the bid price, not to exceed $2,000, but not less than $500.Foreclosure properties are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied. If a HUD home needs to be fixed - and not all of them do - it can still be a bargain. HUD adjusts the asking price to reflect the fact that the buyer will have to invest money to make improvements. The agency also might offer special incentives such as an allowance to upgrade the property or a bonus for closing the sale early. And buyers can request that HUD pay all or a portion of the financing and closing costs. Contact your REALTOR® for more details.To learn more about HUD foreclosures, visit their web site at www.hud.gov.
What about guidelines for VA foreclosures?As with HUD, anyone can purchase a VA home. Qualified buyers also can receive the benefit of a VA loan - no money down - even if they are not veterans. If you are interested in purchasing a VA foreclosure, visit its web site, www.va.gov
Why is location so important?Location remains the single most important factor when choosing a home. It can make or break the value and desirability of a home.Because everyone's preferences vary, your lifestyle will determine the best place for you to live. Some people prefer the suburbs while others thrive on downtown living. If you favor city living, find out what part of the city suits you best - a fast-paced neighborhood or one slightly more subdued. Talk with the neighbors and keenly observe such things as traffic patterns, lifestyles, and even sounds and smells.When choosing a town, take property taxes, schools, accessibility to work, services, recreation, and the character of the community into consideration.
What are the advantages of owning a home?There are many. Among the most appealing: you own it, which gives you, instead of a landlord, control of your living space. Other benefits stem from potential tax savings and the build up of equity as your property likely appreciates in price over time. Equity can be used to help put children through college, purchase a second home, or make home improvements.The mortgage interest paid on a home loan is tax deductible, as is the local property tax. If you get a fixed-rate home mortgage loan, you also can invest more wisely knowing your monthly mortgage payment, unlike rent, will not change substantially.
What is the first step to buying a home?Make sure you are ready - psychologically and financially. Ask yourself the following questions: Do I have steady income? Is my debt lower than my total income? Do I have enough money to pay for the down payment and closing costs? Am I working hard enough to improve bad credit?A house needs constant care and attention. Also ask yourself if your budget will allow for unexpected repairs and upkeep. Once you can honestly answer "yes" to these questions, you are several steps ahead of the game and that much closer to becoming a homeowner.
How much can I afford?The general rule of thumb is that you can buy a home that costs about two-and-one-half times your annual salary. A good REALTOR® or lender can determine how much you can afford and estimate the maximum monthly payment based on the loan amount, taxes, insurance and other expenses.
Is it best to save for the ultimate dream home or begin with a less expensive starter home?It can take a long time to save for that perfect dream home. Meanwhile, the market has been flooded with some of the most favorable mortgage interest rates in years. Low rates make housing more affordable, which is why so many buyers have jumped on the home buying bandwagon.Home-price appreciation has also been strong, making very solid gains in communities across the country. In fact, home prices are expected to increase 2.5 percent to 3 percent annually over the next five years.If you purchase a starter home today, you can potentially begin to build value that can lead to the purchase of a larger, or more desirable, trade-up home in the future.
How do you decide whether to add on to an existing home or purchase a new one?There are a few things to consider, including cost, individual needs, and what will add value down the road. Also important: your emotional attachment to the existing home. As designer and builder Philip S. Wenz, the author of Adding to a House: Planning, Design & Construction, notes, an addition is much cheaper than building a new home and can offer a "new" home without the heartache of moving.Other considerations:
Explore your options. Make sure your decision is one you can live with - either under the same roof or under a different one.
What is the best way to find a REALTOR®?Begin by asking someone that you know. Friends, relatives, co-workers, or neighbors who have recently purchased a home can give you a firsthand account and attest to the agent's professional abilities. Sometimes an agent you contact will refer you to another one who works more closely with buyers and sellers in your neighborhood. Once you have a list of names, interview at least three agents and ask questions about their community knowledge, professional experience, and commitment - some agents work full time; others only work at nights and on the weekends.
What can I expect from a good REALTOR®?Competence, efficiency, and ethics. According to the All America's Real Estate Book by Carolyn Janik and Ruth Rejnis, good agents take the time to qualify buyers and show properties in their price range. They plan showing routes carefully and have pre-inspected most properties. They have a thorough knowledge of financing options, are up on the latest housing trends, and share with prospective buyers data on the local housing market and home sales. Good agents also adhere to a strict code of ethics. They avoid high-pressure sales tactics, refrain from showing properties that do not fit your needs or goals, and alert you to problems about the condition of the property. And they show respect for other agents and real estate firms by not "bad mouthing" them.
Is there anything I should not tell my agent?Most definitely! Never reveal the top dollar you are willing to pay for a home. It will severely undercut your chance to negotiate the home price with the seller. While an agent may spend a lot of time showing you homes and sharing information, the reality is that she works for the seller, who ultimately pays each and every agent involved in helping to complete the home sale. The seller pays the agents in the form of a commission, a percentage of the proceeds from the home sale. The exception is hiring your own real estate professional, now commonly known as a buyer's agent or a buyer's broker.
What does a buyer's agent do?A buyer's agent represents the buyer exclusively. This means he works to protect your interests in the transaction and helps to negotiate the best purchase price and terms. More information about buyers' agents is available by contacting the National Association of Exclusive Buyer Agents at (609) 799-4382, or log on to www.naeba.org.
Can I use an agent to purchase a newly built home?Yes. In fact, some builders pay agents to find prospective buyers. But you also can use a buyer's agent to help negotiate the price and upgrades on a new home. An agent can be particularly valuable directing you to newly built developments that match your needs, as well as helping you select reputable builders who are financially sound and respond promptly to buyers' concerns.Builders normally require an agent to be present on your first visit to the site. This is a sensible procedure that allows the agent to be paid a commission should you decide to buy. Otherwise, if you find a development on your own, make a first visit without the agent, and later make a purchase, the builder may refuse to pay the commission - even if, at some point, the agent became involved in the process
Why do I need an agent if I can find a home by myself on the Internet?While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire process: he or she is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction.
Are buyers protected against housing discrimination?By law, REALTOR®'s may not discriminate on the basis of race, color, religion, sex, disability, familial status, or national origin. They also cannot follow spoken or implied directives from the home seller to discriminate. If you suspect you have been discriminated against, a complaint may be filed with the local Department of Housing and Urban Development (HUD) office nearest you. You may call HUD's toll-free number, 1-800-669-9777, or visit its web site at www.hud.gov/complaints/housediscrim.cfm.
How do you determine how much a home is worth?The short answer: a home is ultimately worth what is paid for it. Everything else is really an estimate of value. Take, for example, a hot seller's market when demand for housing is high but the inventory of available homes for sale is low. During this time, homes can sell above and beyond the asking price as buyers bid up the price. The fair market value, or worth, is established when "a meeting of the minds" between the buyer and the seller takes place.
Are there standard ways to determine how much a home is worth?Yes. A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home's value.Your REALTOR® can provide a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties. Reviewing comparable homes that have sold within the past year along with the listing, or asking, price on current homes for sale should prevent you from overpaying.A certified appraiser can provide an appraisal of a home. After visiting the home to check such things as the number of rooms, improvements, size and square footage, construction quality, and the condition of the neighborhood, the appraiser then reviews recent comparable sales to determine the estimated value of the home.Lenders normally require an appraisal - which run between $200 to $300 - before they will approve a mortgage loan. This protects the lender by ensuring the home is worth the money you want to borrow.You also can check recent sales in public records, through private firms, and on the Internet to help you determine a home's potential worth.
What is the difference between list price and sales price?The list price is a seller's advertised price, or asking price, for a home. It is a rough estimate of what the seller wants to complete a home sale. A seller can price high, low - which does not happen very often - or very close to what they hope to get. A good way to determine if the list price is a fair one is to look at the sales prices of similar homes that have recently sold in the area. The sales price is the actual amount a home sells for.
What about appraised value and market value?A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors.Market value is the price the house will bring at a given point in time, once the buyer and seller establish a "meeting of the minds" on price.
What does a home inspector do?A home inspector is a paid professional - often a contractor or an engineer - who checks the safety of a home. Home inspectors search for defects or other problems that could become your worst nightmare later on. They focus particularly on the home's structure, construction, and mechanical systems.It is not the inspector's job to determine whether you are getting good value for your money. He does not establish value, only whether the home might collapse in a storm or if the roof might cave in.A home inspection typically takes place after a purchase contract between the buyer and seller has been signed.
Should I hire a home inspector?By all means. Buying a home without getting expert advice is risky. Once a home inspector uncovers major plumbing and electrical problems, for example, you may decide you do not want to spend several thousand dollars on repairs.Always include an inspection clause in your written offer. This clause gives you an "out" from buying if serious problems are detected. It also gives you another chance to negotiate the purchase price if repairs are needed. The clause can even specify that the sellers fix any problem that is uncovered before you settle, or close, on the home.You also may want to consider hiring experts to inspect the home for a number of health-related risks like radon gas, asbestos, or possible problems with the water or waste disposal system.
How do I select a home inspector?Begin by only hiring one who is qualified and experienced, someone who belongs to an industry trade group, such as the American Society of Home Inspectors (ASHI). This organization has developed formal inspection guidelines and a professional code of ethics for its members. Also, membership in ASHI is not automatic; members must have demonstrated field experience and technical knowledge about structures and their various systems.
Do I need to be at the inspection?No, but it is a very good idea to be there. Following the check-over, the home inspector can answer your questions and discuss problem areas with you. This is also an opportune time to get an objective opinion about the home from someone who does not have emotional or financial ties to the property.
What does homeowners' insurance cover?It protects against disasters - whether natural, manmade or mechanical. A standard policy insures the home, as well as your possessions. Because this insurance is packaged, it covers liability for any harm, loss, and property damage that you or your family members cause others. And it includes additional living expenses in case you are temporarily displaced because of damage from a fire or other insured disaster.While you are not legally required to have homeowners' insurance, mortgage lenders stipulate that you do. It protects their investment in the home in case of a natural disaster or catastrophic event.If your mortgage is paid up - or you never had one - it is still a good idea to have homeowners' insurance to protect your home and your belongings.
What kind of home insurance should I get?A standard policy will do in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war, and nuclear accidents. The policy can be expanded to include these disasters as well as coverage for such things as workers' compensation. In fact, the lender may require that you purchase flood or earthquake insurance if the house is in a flood zone or a region susceptible to earthquakes.You also can increase coverage beyond the depreciated value of personal property such as televisions and furniture by purchasing a replacement-cost endorsement. Home-based business-coverage, once overlooked, is an ever-increasing popular rider. It does not cover liability associated with the business but rather contents such as home office equipment and general liability to cover injuries to clients and employees.Other considerations: an inflation rider, which increases coverage as the home's value rises, and getting insurance that is equal to the full replacement value of the home. Insurance companies usually require an amount equal to at least 80 percent of the full replacement value. Otherwise, only a portion of the loss would be covered.
What is condo and co-op insurance?This insurance protects your investment and personal belongings from most disasters. As an owner, you will need two insurance policies - your own to cover liability, living expenses, your belongings and structural improvements, and a master policy provided by the condo or co-op board. The master policy covers the common areas that you share with others in the building. It is paid for using the monthly condo fee that you and other owners pay.
What about title insurance?Title insurance protects the lender against unclear title to the property you are buying. It is almost always a requirement for closing on a home. If you desire coverage as well, buy an owner's policy, which will protect you against any title-search errors and losses that arise from disputes over property ownership. The cost of title insurance is usually a set value per thousand of dollars of the total loan amount.
Is private mortgage insurance necessary?Lenders require private mortgage insurance (PMI) on most conventional loans with less than a 20 percent down payment. They believe there is a correlation between borrower equity and default. They have found that the less money borrowers put down, the more likely they are to default on a loan. PMI guarantees the lender will not lose money if this happens and a foreclosure is necessary. The buyer pays this insurance, usually a small fee at the outset and a percentage of the face amount of the loan that is added to the monthly payment. What most homeowners do not realize is that the insurance is usually no longer necessary after enough equity has built up in the property. Contact your lender if you meet this requirement and want to drop PMI.A precaution: do not confuse PMI with mortgage life insurance. The latter pays all, or a portion, of your mortgage in the event of your death.
Is it possible to buy a home below market price?Certainly, but do not hold your breath. It takes a lot of determination and time to find a real bargain. But if you are adamant, here are some likely targets to pursue:
With the latter, you may be able to buy a partial interest in this form of title to property owned by two or more individuals because the partners often sell at a discount.However, bargains are easier to come by in a soft real estate market, when the economy is in a recession, and when homeowners, and builders and sponsors of condominium conversions, are desperate to move unsold units.
Are low-ball offers a good idea?Any offer can be presented, but a low-ball one that is extremely less than the asking price can dampen a prospective sale and prevent the seller from negotiating at all. Unless the home is overpriced to begin with the offer will probably be rejected.Do your homework before making an offer. Compare prices of recently sold homes and new listings in the neighborhood. It also helps to know something about the seller's motivation. A lower price with a speedy closing, for example, might motivate a seller who must move, has another house under contract, or must sell quickly for other reasons.Also recognize that while your low offer in a normal market might be rejected at once, it might motivate the seller in a buyer's market to either accept it or make a counter-offer.
Can you negotiate interest rates?A few lenders will negotiate the mortgage rate and number of points on a loan. However, this is more the exception than the rule with established lenders. As always, shop around and know the market before you enter a lender's office. Rates are often published in local newspapers and on Internet Web sites.You may have more luck when dealing directly with a seller who has agreed to finance your loan. He is likely to be more open to negotiation, particularly when motivated to make a quick sale.
What are some negotiating tips?Know the seller's motivation to sell. This will enhance your negotiating position. Sellers who must move quickly due to a job transfer, divorce, or contract on another home, are more inclined to accept a lower price to speed the process along.Remember, too, that the listing, or asking, price is what the seller would like to receive for the home. It is not necessarily what the seller will settle for. So know value. Before you make an offer, check recent sales and listing prices of comparable neighborhood homes and compare them to the seller's asking price.Other tips:
What contingencies should appear in the offer?When you look to purchase a home, anticipate potential problems. But protect against them so that if something does go wrong, you can cancel the contract without penalty. This is what contingencies allow you to do. They should be included in any offer you present to buy a home.Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on your ability to obtain a loan commitment from a lender, and an inspection contingency, which allows you to have a professional inspect the property.Without contingencies, a buyer could forfeit his deposit under certain circumstances if he backs out of a deal.The purchase contract also should include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and making any agreed-upon repairs.
Does the seller take the furnishings once the home is sold?Normally. This is because the fixtures - personal property that is permanently attached to a home, such as built-in bookcases or a furnace - automatically stay with the house unless noted otherwise in the sales contract. Anything that is not nailed down is negotiable, including appliances that are not built in, such as washers and dryers.
Do I need an attorney to buy a home?A lot depends on the state where the property is located. Some require an attorney; others do not.Most homebuyers can generally handle routine real estate purchase contracts as long as they read the fine print and understand all the terms. But pay close attention to any clauses, contingencies, and other special considerations that will allow you or the seller to back out of the contract.When in doubt, consult an attorney. Ask relatives and friends, or your REALTOR®, for recommendations. Call to inquire about their fees and to check their level of experience. Expect that more seasoned attorneys will cost more.
What are closing costs?Closing, or settlement, costs are expenses over and above the price of the property. Both the buyer and seller incur some of these expenses when transferring ownership of a property. Who actually pays, however, often depends on local custom and what the buyer or seller negotiates. Closing costs normally include title insurance, loan points, escrow or closing day charges, property taxes, and document fees. The lender provides an estimate of closing costs for prospective homebuyers.
Is it possible to save on closing costs?Certainly, once you get pass the sticker shock. Closing costs are expensive. They can average between 2 to 3 percent of the total home purchase price. But here are a few ways to save:
Is there anything I should know about closing day?Yes. The following to-do list can help save you a few headaches and keep the closing on track:
How can owning a home pay off at tax time?A home provides many tax benefits, literally from the time you buy to the time you sell. The mortgage interest paid on a home loan up to $1 million for a primary residence or second home is tax deductible every year, as is the local property tax. Other mortgage costs - including late-payment charges and early-payment penalties - are also deductible. And if you use a portion of your home for business purposes, you can take a depreciation deduction as well. Many federal tax benefits are also available from local and state tax agencies. Contact your local tax agency for more information.
Are up-front fees and closing costs deductible?Many of the costs paid at closing are not immediately deductible. The exception is points you pay to purchase your home loan. They are deductible for that year. Points paid when you refinance an existing mortgage must be deducted over the life of the new loan.Some fees - including loan application, appraisal, document preparation and recording fees - that are assessed when purchasing a home can be recouped by adding them to the adjusted cost basis, the starting point for figuring a gain or less when selling the home. Significant home improvements also can be calculated into your cost basis.
Are fees and assessments owed a homeowner's association deductible?Generally not because they are considered personal living expenses. But if an association has a special assessment to make capital improvements, condo owners may be able to add the expense to their cost basis when the property is sold. Another exception may apply if you rent your condo - the monthly condo fee is deductible every year as a rental expense.
Are there tax credits for first-time homebuyers?Yes, thanks to the many city and county governments that offer Mortgage Credit Certificate (MCC) programs, which allow first-time homebuyers to take advantage of a special federal income tax write-off. The credit reduces the amount of federal taxes paid by the buyer each year, if he keeps the same loan and lives in the same house.An MCC also makes it easier for eligible buyers to qualify for a mortgage loan. The lender can reduce the housing expense ratio - the percentage of gross monthly income applied toward housing expenses - by the amount of the tax savings. Normally, lenders reject loans if the housing expense ratio is too high.Program requirements for MCCs vary, although most adhere to the following guidelines:
Why do homeowners have to pay property taxes?Property taxes are assessed by city and county governments to generate the bulk of their operating revenues. The taxes help pay for such public services as schools, libraries, roads, and police protection.Re-valuations of the tax are often done periodically, although the time interval varies from state to state or, in some states, from town to town, and can range from annual reassessments to periods of ten years or more.
How are individual tax bills figured?Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend. It is based solely on how much the property you own is worth. The real property tax is an ad valorem tax, or a tax based on the value of property. Ideally, the owners of property of equal value pay the same amount of property taxes, and the owners of more valuable property pay more in taxes than the owners of less valuable property. The tax is calculated using a variety of formulas and is based on a property's assessed value - its full market value or a percentage thereof - and the tax rate of the taxing jurisdiction, minus any property tax exemptions, such as those offered for the elderly or veterans.
Can I contest my property taxes?Many people do, mainly because determining value can often be tricky. This is especially true in a changing market when local prices either take off dramatically or plunge precipitously, like during the Texas oil bust of the 1980s. While it is up to a professional assessor to evaluate property value for tax purposes, property owners are usually allowed to contest their assessment until a certain date after they are made public.Once you contest, you will have to prove why you think your property is worth less - few homeowners contest hoping to pay more taxes! The two most popular ways for determining value are an appraisal and a comparative market analysis. With an appraisal, a professional estimates the property's market value based on recent sales of comparable properties. A comparative market analysis is an informal estimate of market value performed by a REALTOR® based on similar sales and property attributes. Most agents will offer free analyses to win your business. Contact your local tax assessor's office for procedures on appealing your property tax assessment.
What is an impound account?It is a special bank account held by the lender to collect monthly payments from the borrower to pay property taxes, mortgage insurance, and hazard insurance. These accounts also are called escrow or reserve accounts. Lenders like to set up impound accounts to ensure the property taxes and insurance will be paid on time. They typically also collect a two-month cushion for taxes and insurance at the closing. A few states require the lender to pay interest on funds held in these accounts.
Are impound accounts required for all mortgage loans?They can typically be waived on a conventional loan if the loan amount is 80 percent or less of the purchase price. But the lender might charge you an additional 1/4 point for this option to waive the escrow.One way to avoid an impound account on an owner-occupied mortgage is to raise your down payment amount slightly. The exact amount necessary to avoid the escrow will vary with the lender.In some states, lenders let buyers set up separate accounts in which they place specific funds and then pay the insurance and property taxes themselves. These are called pledge accounts, and they must be set up before you close on the home.An impound account can usually be dropped on an owner-occupied loan once the loan-to-value ratio equals 80 percent or less. But restrictions apply: payments will have to be current and your record of making on-time payments pretty solid. Contact your lender if you meet these requirements and want to drop your impound account.
Are property taxes deductible?Yes. Like the mortgage interest paid on a home loan, property taxes are fully deductible from your income. You may deduct them every year on your primary residence, second home and other investment properties.However, escrow money held for property taxes cannot be deducted until the money is actually used to pay the property taxes.
What is a condominium?Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share - such as the land, lobby, hallways, swimming pool, and parking lot.In addition to paying a mortgage, each owner is responsible for paying a monthly fee to the condo association, which is made up of the unit owners. The fee covers maintenance, repairs, and building insurance.Most housing condominiums are apartments, although there are mobile home condominiums as well.
Why buy a condo?They are an appealing way to enter the housing market if the cost of a single-family home is out of your reach. Condos are especially popular among single homebuyers, empty nesters, and first-time buyers in high-priced housing markets. Unlike a house, condos offer a lifestyle that is free of yard work and exterior maintenance and repairs. Many condominium communities also offer amenities such as exercise rooms, tennis courts, and swimming pools that you might otherwise be unable to afford if you purchased a single-family home.
How do you choose a good condo?Seek ownership in a well-maintained building, and pay special attention to the financial health of the condo association. Lax maintenance may be a sign of financial trouble, which could result in higher maintenance fees and problems trying to resale the property later.Things to consider:
Are condos good investments?They are a good way to enter into homeownership. The high price of single-family homes and the influx into the housing market of more single homebuyers have made condos relatively hot national investments. They have held their value as an investment despite economic downturns and problems with some associations. Condominium associations have also worked hard in recent years to clean up their image. Disputes and lawsuits were once rampant. But now associations have become savvier about property management and have taken steps to prevent legal problems and disputes.
How do townhouses differ from condominiums?While most condominiums are apartments, a townhouse is attached to one or more houses and can run the gamut from duplexes and triplexes to communities with hundreds of homes. Buyers separately own their homes and the land on which the houses sit. With a condominium, the unit owners jointly own the land and this common interest cannot be separated from the others.Townhouses can be structured in many ways. Some, particularly huge communities, have common areas - such as swimming pools - that are similar to condominiums.
What are the pros and cons of owning a townhouse?On the plus side, exterior maintenance and repairs are minimal; there are no neighbors above or below the home like in an apartment; and because the homes are attached, they may offer a greater sense of security.As for the disadvantages, if there is a homeowner's association, buyers will have to pay a homeowner's fee. There is also less privacy than with a detached single-family home. And there are limits on how you can make exterior changes to the home.
What are co-ops?Cooperative apartments - known as co-ops - are not really owned by people as real property. Instead, people own shares of stock in the company that owns the building in which they live. But for all practical purposes, the experts say owning a co-op is almost like owning real property. Personal loans to "buy" a co-op apartment are written almost like mortgages. And the IRS treats co-op owners much like real property owners. They can deduct interest paid on their apartment loans and on their portion of the municipal taxes and mortgage interest paid by the corporation.Shareholders in a co-op are entitled to occupy specific units, use the common areas, and have a vote in the corporation. To maintain this right, they must pay a monthly fee that covers their share of operating expenses.As for governance, a board of directors, which is elected from among the residents, runs the co-op. Under most bylaws, the board may evict any tenant/shareholder who fails to pay the monthly maintenance fee. Everyone is expected to abide by the rules, which may prohibit pets or even children under a certain age.
What are the benefits of having a co-op?In addition to being able to take advantage of tax deductions, the National Association of Housing Cooperatives (NAHC) says shareholders will find that co-ops have low turnover rates, lower real estate tax assessments, reduced maintenance costs, resident participation and control, and the ability to prevent absentee and investor ownership.Also attractive: housing cooperatives come in all shapes, sizes, and types. They include townhouses, mid-and high-rise apartments, garden apartments, single-family homes, mobile home parks, artists' cooperatives, and senior housing. For more information about co-ops contact NAHC at (202) 737-0797, or log on to www.coophousing.org.
Where can you find fixer-uppers?They are literally everywhere, even in wealthy enclaves. What sets them apart is price. They have lower market value than other houses in the immediate area because they have either been poorly maintained or abandoned.To determine if a property that interests you is a wise investment will require a lot of work. You will need to figure out what the average home in the area sells for, as well as the cost of the most desirable ones.Experts suggest that novices avoid run-down properties needing extensive work. Instead, they recommend starting with a property that only needs minor cosmetic work - one that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping, and new appliances.Also, keep in mind that a home price that looks too good to be true probably is. Find out why before pouring your hard-earned money into it.When looking for a fixer-upper, some experts suggest you follow this basis strategy: find the least desirable home in the most desirable neighborhood. Then decide if the expense that is needed to repair the property is within your budget.
Is buying one a good idea in "bad" areas?It depends. So-called "bad" areas - often described as those that are residentially unstable or poor - have offered an affordable means of homeownership for many - particularly young, first-time buyers and low- to moderate-income families interested in a home they can call their own. Whether it is right for you to buy a fixer-upper will depend on your personal threshold for risk and your level of tolerance. That said, however, many run-down neighborhoods, particularly those close to downtown, are benefiting from a residential resurgence as an influx of newcomers jump-start what were once staid, unsafe, or depressed areas.
How do I determine the value of a distressed property?One of the best ways is to get your hands on a comparable market analyses. See what price similar properties have sold for in the past and find out the listing price of others currently on the market.It is important to examine the fixer-upper carefully and figure out how much it will cost to fix any defects or repairs. If you are unable to get in, talk with nearby neighbors about the home's condition.You can also do your own cost comparison by researching comparable properties recorded at the local county recorder's and assessor's offices, or at Internet sites specializing in property records. If the property is in foreclosure, you should get as much information as possible from the lender.
What guidelines should I use to find a contractor?Chances are you will need plenty of help making those major repairs and additions. But the last thing you will need is someone who fails to complete the job or botches it up. Finding good, responsible help is imperative. Here's what you can do:
What kind of return can I expect from home improvements?This will vary depending on the type of work that is done. Remodeling magazine publishes an annual "Cost vs. Value Report'' that can answer this question in more detail, based on the top 15 home improvements. A recent study it conducted says the highest remodeling paybacks have come from siding and window replacements, major kitchen remodeling, bathroom and family room additions, and mid-range master bedroom suites.An important point to remember is that remodeling not only improves a home's livability, it also enhances its curb appeal with future buyers.
How can I finance work needed on a fixer-upper?According to the Millennial Housing Commission created by Congress, few lenders are willing to administer home improvement loans. Most prefer to make home equity loans or unsecured consumer loans because they are easier to manage. Home improvement loans usually require inspections and irregular draws on the loan amount as work is completed, which requires regional or national lenders to find local partners to provide oversight.Financing repairs and improvements with home equity is okay for most homeowners, but it is difficult for many first-time buyers. They have lower-incomes, smaller savings, and have made lower down payments on their homes than first-time buyers a decade ago. So they have little equity to borrow against. Unfortunately, it is often lower cost older homes purchased by first-time buyers that need the most work.Unless you have a cash reserve, you will have to shop around for the best borrowing terms. In addition to the options listed above, you can ask relatives for a loan. Borrow against your whole life insurance policy. Refinance your existing mortgage. Get a second mortgage. Contact the government about home improvement programs. And - only as a last resort - borrow from a finance agency, which generally tend to charge high rates.
Does the federal government offer home improvement programs?Yes. Among the most popular:
What about state and local governments?Just about every state now offers loans for renovation and rehabilitation at below-market interest rates through its Housing Finance Agency or a similar agency. Call your governor's office to get the name and phone number of the agency in your area.At the municipal level, many cities also have programs for special improvements to certain blocks and neighborhoods they are trying to spruce up. Call City Hall, as well as a Community Development Agency in your city.
Are special tax breaks available for historic rehabilitation?Certified historic structures now enjoy a 20 percent investment tax credit for qualified rehabilitation expenses, if they are income producing properties. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district that is certified by the government. The tax code does not allow deductions for the demolition or significant alteration of a historic structure. For more information, contact the National Trust for Historic Preservation at (202) 588-6000, or visit its web site at www.nationaltrust.org.Many states offer tax incentives, reductions and abatement programs for owners of residential historic homes. These programs are described on the National Trust's web site.
Can you negotiate the price of a new home?In real estate, almost everything is negotiable, so it is certainly worth a try. Now, this does not mean the builder will fall down and roll over. It is very common for builders to claim that their prices are based on fixed construction costs. Perhaps, but timing is everything.A builder is more likely to be flexible on price at the very beginning and end of a project. Early on, most developers want to move people in quickly so the project builds momentum. In the end, they may be more inclined to accept lower offers when only a few units are left.If you are unable to negotiate on price, negotiate for a better lot location or amenities, such as a carpet upgrade or light fixtures. A developer will rarely pass up a deal over a few hundred dollars' worth of carpeting.
Should I hire a home inspector for a new home?You would think not since it is new and the developer has to adhere to local construction guidelines. However, err on the side of caution - always hire an inspector, whether the home is old or new.You can ask the builder to provide copies of any inspection reports on the property, architectural plans, surveys and pertinent construction documents for your inspector to review.The inspector should either be a professional home inspector, an engineer, an architect or a contractor. When hiring a professional inspector, look for one who belongs to a home inspection trade organization, such as the American Society of Home Inspectors (ASHI). This group has developed formal inspection guidelines and a professional code of ethics for its members. Membership in ASHI is not automatic. Proven field experience and technical knowledge about structures and their various systems and appliances are required.As for rates, they vary greatly. Many inspectors charge about $400, but costs increase based on the scope of the inspection.
What else should I take into account when buying a new home?You can find out more about an existing property and neighborhood before you buy than you can a new home in a newly developed community.When the home is on the outskirts of town, ask the developer about future access to public transit, entertainment venues, shopping centers, churches, and schools. Also review local zoning ordinances. A remote area can quickly turn into a fast food haven. You want to ensure the neighborhood will not spiral out of control and lose its residential appeal.Other things to consider:
Do builders provide financing?Many builders offer financing incentives to help move more buyers into a project. In fact, major building companies often have their own mortgage brokerage subsidiaries, while many other builders routinely refer buyers to "preferred" local lenders. If it is a buyer's market in your area, you can be sure developers will offer incentives such as low-down-payment financing or interest rate subsidies.
hould I buy a vacation home?The second home market has more ebbs and flows than the primary home market. Sales are iffy in a bad economy except, perhaps, on the high-end. That said, there is a growing trend toward the purchase of vacation homes. They are being bought for investment purposes, enjoyment, as well as retirement. In the latter instance, some people are buying with the idea of turning a vacation home into a permanent retirement haven down the road, a move that puts them ahead of the game now.Some of the tax benefits mirror those for a primary residence. Mortgage interest and property taxes are deductible, which helps to offset the cost of the home payment. And if you treat your second home as a rental property, you can fully depreciate it as well. But you are only allowed to occupy it for two weeks a year, or 10 percent of the total rented time, whichever is less. Before taking the leap, ask yourself if you can afford to carry two mortgages, maintain two households, and pay the extra utilities and maintenance costs. Also, learn about financing requirements and options, which can differ slightly from those on a primary residence.
What about a vacation home as an investment?Like any investment, it can be risky. Location and current market conditions are extremely important when deciding whether to buy. Other things to consider:
What causes a foreclosure?A lender decides to foreclosure, or repossess, a property when the owner fails to pay the mortgage. Unfortunately, thousands of homes end up in foreclosure every year. Many people lose their homes due to job loss, credit problems, divorce, unexpected expenses, and during periods of economic instability. Failure to pay property taxes may also cause a homeowner to lose his home. Trouble can also arise when owners neglect to pay local water bills and home insurance premiums.
Where can I find foreclosure properties?Look in the legal notices section of your local newspaper. A notice is also usually posted on the property itself and somewhere in the city where the sale will take place.However, REALTOR®'s are the best source for information about foreclosures before they begin. Often a property will be listed and the agent will know if it is approaching foreclosure. Perhaps the best way to get the information is to have your agent put the word out that you are looking for properties with pending foreclosures.Another source can be the bank or financial institution that holds the mortgage. Of course, they generally will not give you the names of those who are facing foreclosure, but they may give the property owner your card or phone number.Buying foreclosures is not easy. Savvy investors are highly skilled at nabbing these properties. Inexperienced buyers may find themselves surrounded by pretty stiff competition. They will need to get as much information as possible, including a "foreclosure inspectionreport" and an appraisal from the lender.
What happens at a trustee sale?When a homeowner falls behind on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The lender that initiated the foreclosure proceedings will usually set the bid price at the loan amount. Successful bidders receive a trustee's deed as proof of ownership. Trustee sales are advertised in advance and require all-cash bids, which can include cashiers' checks. Normally, a sheriff, constable, or lawyer conducts the sale and acts as the trustee. Because these sales typically attract savvy investors, inexperienced buyers should come extremely prepared.
What are the disadvantages of buying foreclosures?Buying directly at a legal foreclosure sale is risky. Among the disadvantages:
How do I find government-repossessed properties?The Department of Housing and Urban Development (HUD) acquires properties from lenders who foreclose on mortgages that it insures. These properties are then available for sale to potential homeowner-occupants and investors only through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.The Department of Veterans Affairs (VA) also acquires properties as a result of foreclosures on VA guaranteed loans. These acquired properties are marketed through a property management services contract with a federal bank that then lists them for sale with local REALTOR®'s.
What are some of the guidelines for purchasing HUD foreclosures?If you have the cash or can qualify for a mortgage, you can buy a HUD home. Down payments vary depending on whether the property is eligible for FHA insurance. If so, the down payment can be lower than the 5 to 20 percent required on conventional loans. HUD requires that all accepted offers be accompanied by an earnest money deposit equal to 5 percent of the bid price, not to exceed $2,000, but not less than $500.Foreclosure properties are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied. If a HUD home needs to be fixed - and not all of them do - it can still be a bargain. HUD adjusts the asking price to reflect the fact that the buyer will have to invest money to make improvements. The agency also might offer special incentives such as an allowance to upgrade the property or a bonus for closing the sale early. And buyers can request that HUD pay all or a portion of the financing and closing costs. Contact your REALTOR® for more details.To learn more about HUD foreclosures, visit their web site at www.hud.gov.
What about guidelines for VA foreclosures?As with HUD, anyone can purchase a VA home. Qualified buyers also can receive the benefit of a VA loan - no money down - even if they are not veterans. If you are interested in purchasing a VA foreclosure, visit its web site, www.va.gov
Why is location so important?Location remains the single most important factor when choosing a home. It can make or break the value and desirability of a home.Because everyone's preferences vary, your lifestyle will determine the best place for you to live. Some people prefer the suburbs while others thrive on downtown living. If you favor city living, find out what part of the city suits you best - a fast-paced neighborhood or one slightly more subdued. Talk with the neighbors and keenly observe such things as traffic patterns, lifestyles, and even sounds and smells.When choosing a town, take property taxes, schools, accessibility to work, services, recreation, and the character of the community into consideration.
A Sellable Home
Pricing Your Home
Marketing Your Home For Sale
The Offer
Acceptable Offer, Inspections & Purchase Contract
What Else
Walk-Through
Closing
A thorough assessment of your home's condition is crucial before you start making plans to sell it. There are of course the obvious defects and there are at times hidden ones. To avoid costly pitfalls it is a good idea to get someone qualified, such as a home inspector or engineer, to look your home over and to create a report as to it's condition. Your Seller's agent will be able to provide you with a list of reliable and trustworthy service providers in your area.
While repairing all defects is an absolute must if you want to maximize the return on your home there are other crucial steps that should be taken prior to offering your home for sale, such as painting, cleaning, de-cluttering and staging your home. Staging is actually not about decorating, but turning your home into a model, and to appeal to the broadest range of prospective buyers possible. The goal is to make people feel like they could live there, and the best way to do this is to "neutralize" the surroundings.
Again your Seller's agent can play a vital role in this and guide and help you to prepare your home inside and out for a timely and profitable sale.Once your home is ready and goes on the market, it becomes a product. Pricing this product on your own can be very difficult at times. Your Seller's agent will be an invaluable asset because he or she is not emotionally attached to your property and can see it in a more realistic light.Your Realtor will create a Comparative Market Analysis based on recent sales and currently listed for sale properties in your neighborhood. This CMA will also factor in upgrades, the age and quality of improvements and renovations, and the current market conditions and trends. With this information at hand you'll be able to set an advantageous asking price.
Well kept homes that show well and are priced sensibly will almost always attract multiple Buyers and offers and in the end sell faster and at a higher price.Overprized homes on the other hand will not draw much interest and therefore sit on the market for a long time especially if they are in poor condition or disrepair. Eventually they will require downward price adjustments, and at times several ones. In the end it leads in many instances to a lower selling price as well.
Most sellers have an emotional connection to their home and feel it deserves top dollar when sold. Everyone naturally wants to get the most money for his or her product.
Therefore I like to offer you some practical advice for establishing a fair, competitive and marketable sale price for a home:
Square footage. Total square footage is an important consideration when establishing a home's sale price, but this is usually just a starting point for buyers who will use it to narrow down the field, but make an actual purchase decision based on many other factors.
Location within community. Quiet cul-de sacs, golf or water frontage, lots that offer privacy are value add-ons that can justify a higher sale price over other homes in a community - or be leveraged as an advantage against competing listings.
Views... or lack thereof. Whether it is the ocean, a downtown skyline, the mountains, water or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly. Just be realistic - views that can only be seen from the second story bathroom window don't count.
Upgrades and features. For a home to sell quickly and for the price desired, it must be "finished" with as many exterior and interior design upgrades as possible. Any functional or beautification enhancement to a home are key considerations in establishing a home's true value, desirability and strategic sale price.
Community amenities. Secure communities or those with amenities such as a clubhouse, playground, swimming pool or fitness center are elements that raise a home's price. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value add-ons so that you can price your home as aggressively and competitively as possible.
Comparable sales. You no longer can price your home based on price per square footage of other home sales in your community which happened 3 or more months ago, as these do not offer a realistic portrayal of current market conditions and trends. Focus more on prices of just sold homes and active property listings to arrive at a competitive pricing strategy.
Professional appraisal. Want to sell the home quickly? Price it at or below the appraised value. Buyers are educated, they are shopping deals, and they will recognize your fair price and be more apt to pay it with less haggling.
Current mortgage conditions. Lenders now require higher credit scores and higher down payments, which can cash strap buyers holding out for the best deal possible. Savvy sellers will understand the mortgage industry's impact on the buyer and will price accordingly or offer even seller financing in some cases.
Please also explore my home staging tips section for further information on how to maximize the return on your real estate sale.
First impressions make a significant impact on a buyer's decision-making process! Once your home goes on the market, it becomes a product. Home Styling or Staging simply allows you to highlight the best of your home and de-emphasize its flaws. It's not about decorating, but actually turning your home into a model, to appeal to the broadest range of prospective buyers. The goal is to make people feel like they could live there, and the best way to do this is to "neutralize" the surroundings without making it look steril.
Try out these helpful styling tips taken from Setting the Stage - REALTOR® Magazine Online. They've compiled the best tips from stagers and real estate pros—many times things you can do for little or no expense—to put your home in prime showing shape.
Look at your house from a buyer’s point of view. Forget about how cute your 1-year-old looked when she learned to crawl on the living room floor and start thinking about your home as a commodity. This will help you to assess the condition of your home more objectively. Once you see your house from a potential buyer’s perspective, you can make the changes needed to allow your house to stand out.
Have a home inspection. I highly recommend a home inspection if your home is older than 10 years old. Why not spend 300 or 400 bucks to clearly define what’s wrong or what’s right? You’ll avoid surprises when the buyer conducts their inspection of your home. With this done, you can be proactive and fix all of the house’s problems before it goes on the market, saving buyers time and making their decision to buy your house even easier!
Don’t be the worst house on the block. If the standard in your neighborhood is to have granite countertops and state-of-the-art appliances, then your house should include those features. If you have a home that is second-rate for the neighborhood you live in and you bring it up to the neighborhood norm, you’re going to get a good return on your investment when it is time to sell. There is so much inventory on the market today, your house will not get a serious consideration if it’s substandard.
De-personalize and de-clutter your home’s décor. Let potential buyers imagine their own possessions and décor choices more easily in the home. This means removing clutter such as toys, exercise equipment, family pictures and mementos. It is hard for a potential buyer to notice the beautiful mantel if it is covered with distracting personal photos. Light and airy is inviting, so you should repaint any colored rooms in neutral beiges or whites. Enlist the help of a staging professional or get advice from your real estate agent if you have trouble making these choices.
Make a good first impression at floor-level. Install fresh carpet or have your carpet professionally cleaned. If you have hardwood floors shine them up, or have them refinished if necessary. This will prevent buyers from making a lower priced offer on your home because they feel the floors aren’t move-in ready. Also touching up the trim around windows, doors and baseboards makes your home look well cared for.
Choose an experienced ‘online’ agent. Choose an agent, like me, that will market your home online to reach more buyers 24/7. Having the correct online exposure is like having a billboard on the interstate showing your house is for sale.
Avoid being involved in the showing process. Make buyers feel comfortable in your house and allow them to imagine themselves owning it. When your home is being shown to a potential buyer you should not be at home so that they can feel comfortable to look around the house in detail. There will be always a professional showing agent with them to take care of them, and your property.
Offer a home warranty as an incentive to buyers. A home warranty is a one year service contract that covers such things as the air conditioner, furnace, plumbing and appliances. By offering such a warranty, you will give potential buyers piece of mind during one of the most important decisions they will make. Home warranties are quite affordable, with annual premiums costing $300 to $600, depending on what is covered. Most such contracts also allow the new owner to renew the coverage after the first year is over.
Make sure your home sparkles inside and out. Show potential buyers what your home looks like at its best! Sometimes just power washing your house and your driveway can make all the difference. Try to get it as light and bright looking as possible. Just seeing clean windows is a huge thing for some people.
Keep your landscaping trimmed or replace it if it’s out of date. If the outside of your home looks like it hasn’t been well-cared for then buyers will assume that the inside hasn’t been either. One thing you can do to improve your curb appeal is to keep the lawn mowed and get rid of those overgrowing shrubs. If you’ve got large, overgrowing shrubs that look kind of shotty and unkept, that can affect some of that curb psychological impact. You want potential buyers to drive up to your home and think “this is the place I want to live in!”
When is the best time to sell a home?The best time to sell is when you are ready, or when you must. That is, when you have outgrown the space in your current home, or you prefer to trade down to something smaller. Perhaps your martial status has changed, which necessitates a move, or you need to relocate for a job.Market conditions also play a role, as do seasonal conditions. For example, your chances of getting top dollar for your home are more likely in a seller's market, when demand outweighs supply, than in a buyer's market. Local and national economic factors also may dictate when to sell. If a major employer in your area is laying off workers, it may not be a good time to put your home up for sale. People will be cautious about buying when the future seems so unpredictable or bleak.Most agents agree the best time to sell is in the spring. This is when the largest number of potential buyers hit the market. Your home is likely to sell faster and at a higher price, although sales begin to pick up as early as February and start to slack off in July, the slowest month for real estate transactions.
What should I do to prepare my home for sale?Start by finding out its worth. Contact a REALTOR® for a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties. Or get a certified appraiser to provide an appraisal.Next, get busy working on the home's appearance. You want to make sure it is in the best condition possible for showing to prospective buyers so that you can get top dollar. This means fixing or sprucing up any trouble spots that could deter a buyer, such as squeaky doors, a leaky roof, dirty carpet and walls, and broken windows.The "curb appeal" of your home is extremely important. In fact, it is the first impression that buyers form of your property as they drive or walk up. So make sure the lawn is pristine - the grass cut, debris removed, garden beds free of weeds, and hedges trimmed.The trick is not to overspend on pre-sale repairs and fix-ups, especially if there are few homes on the market but many buyers competing for them. On the other hand, making such repairs may be the only way to sell your home in a down market.
What else should I know?Once your home is available to be shown strive to keep it in tip-top shape. This will require a lot of effort on your part, but you want buyers to feel welcomed and not turned off by unmade beds, cluttered floors, and grungy bathrooms.Realize, too, that your life will be temporarily inconvenienced. When an agent - yours as well as others - calls wishing to bring a buyer to see the home at the last minute or on the same day, respond favorably. Remember your goal is to get the home sold, and that can only be accomplished if people get to see it. Flexibility is the key to a quick sale.Plan not to be present when buyers pass through. It is awkward and unsettling for them to have the owners present. If you cannot leave, sit in the backyard. But do not attempt to have conversations with the buyer. Speak only when spoken to; be brief and polite.Finally, pay special attention to pets, particularly dogs. They can be intimidating. Put them on a leash and in the backyard. Better yet, when possible, take them with you. And be keen to pet odors. They can turn buyers away.
Should I sell my home first or wait until I have bought another home?This is a tough decision, but the answer will depend on your personal situation, as well as the condition of the local housing market. If you put your home on the market first, you may have to scramble to find another one before settlement, which could cause you to buy a home that does not meet all your requirements. If you cannot find another home, you may need to move twice, temporarily staying with relatives or in a hotel. On the other hand, if you make an offer to buy first, you may be tempted to sell your existing home quickly, even at a lower price.The advantage of buying first is you can shop carefully for the right home and feel comfortable with your decision before putting the existing home on the market.On the flip side, the advantage of selling your existing home first is that it maximizes your negotiating position because you are under no pressure to sell quickly. It also eliminates the need to carry two mortgages at once. Talk with your agent for advice. Discuss the pros and of each and whether certain contingencies written into the contract can ease some of the pressures.
Are there tips for selling a vacant home?Yes. Once furniture is removed from the home, you will notice all kinds of imperfections you never paid attention to before - rips in the carpet, holes in the walls, and dinginess. In an empty house, everything stands out. What you see is what potential buyers will also see. So you may need to paint, tear up old carpet, and replace the kitchen floor.To get rid of the "empty house" feeling, leave a few pieces of furniture behind - simple things like a lamp, chairs, and a table will do.Pay special attention to maintenance. Someone will need to dust and vacuum, leaves will need to be raked, and the grass cut.In the winter, consider having the heating system shut down and drained to save money. But keep the electricity running because lights will be needed to show the house.Watch out for that musty smell, particularly during the summer months, that settles in from having the windows sealed and locked. And beware of pests such as mice, squirrels, ants and bats.
How can I get a quick sale, particularly in a slow market?One of the most important things to consider is price. You may want to reduce the price of your home or, at the very beginning, set it at a low price that will generate more buyer interest.Cash is often an incentive, both for the buyer as well as the agent. You could offer the buyer a $1,000 to $2,000 decorating rebate upon closing the deal. It is also not uncommon to offer the selling agent a $500 bonus. However, some brokers - who supervise agents and run real estate offices - may prohibit such incentives, as do some Realtor boards. Check to find out.Other common incentives: paying for the property inspection and warranty policy and getting your home preliminarily approved for FHA and VA loans, thereby making it more attractive to a larger number of buyers. Contact a lender who writes FHA-insured and VA-guaranteed loans.
What are some costs associated with selling my home?Besides the costs related to making repairs and improving the overall appearance of the home, as the seller you will also need to pay the following:
To get a better handle on all costs, ask a REALTOR®. Agents deal with this information daily and can give you a pretty good estimate of the closing costs you can expect to pay.
What are some costs associated with buying a new home?Basically, the costs are no different from when you purchased your existing home. They include moving expenses, loan costs, the down payment, a home inspection, title work and policy, and paying for a new hazard insurance policy. Your lender can give you a disclosure of estimated costs when you apply to be pre-approved for a home loan.
Do I need an attorney to sell a home?Although most sellers can handle routine real estate purchase contracts, some experts say it is a good idea to be represented by an attorney, particularly if you are selling on your own. You should choose one with expertise in real estate transactions. Before hiring someone discuss all the details of the transaction, including all legal costs you will incur. A good attorney will assist you in completing the deal swiftly and with confidence.
How do I find the right agent for me?To begin with, think local. Select someone who is very familiar with your neighborhood and the properties for sale in it. Then, if you are selling, say, a condominium, choose an agent with expertise selling apartments to potential homeowners.Because you will want the widest possible exposure for your home, you also will want a real estate firm that works with other agencies to get your property sold. The Multiple Listing Service (MLS) used by Realtors, licensed members of the National Association of Realtors, is still the most common and effective form of cooperation used today.Beyond these parameters, select an agent who is competent, efficient, and ethical. Perhaps the agent who first sold you your home would be a perfect candidate. If not, ask family, friends, and neighbors for recommendations, or choose a firm headed by an individual who is known in your community.
What questions should I ask an agent interested in selling my home?Interview at least three local agents who sell homes in your community. Grill them about the following:
What is the most common type of contract for listing properties?The exclusive right to sell. It gives the real estate broker the exclusive right to sell your home during the term of the listing. If a sale occurs - even if you sell the home yourself - the broker gets a commission. The broker may share the listing with other brokers on the Multiple Listing Service (MLS) to get the widest possible exposure for your home. If you request that the property not be listed on a multiple basis, only the broker named in the contract and his or her sales agents can market and show it.
What if I am not happy with the listing agent and want to terminate the contract?Experts say unhappiness is not a legal reason to terminate a valid home sale-listing contract. Legally, to cancel a listing, you must be able to prove the agent's lack of "due diligence." This means the agent isn't taking the normal steps to properly market your home, such as putting your listing into the Multiple Listing Service (MLS), advertising on the Internet and in local newspapers, and posting a for-sale sign on the property.If your home is overpriced, perhaps you need to consider reducing the price to spark buyer interest. Otherwise, you may need to meet with the listing agent and his or her supervising broker to discuss the problem. If the agent is doing an awful job, you might suggest the listing be transferred to a more effective agent within the same brokerage firm.Remember, limit the listing contract to 90 days, in case you become unhappy and would like to get another agent after the contract expires.
Do I really need an agent?Most home sellers hire REALTOR®'s to list and sell their homes. Most of those who do not are known as For Sale By Owners, or FSBOs. They market and sell their homes themselves.However, a small number of people sell without marketing their homes. They include homeowners who transfer property to family members or landlords who directly offer tenants the first right to purchase property before they place it for sale on the market.In the end, most FSBOs eventually hire an agent because the agent will handle all the details of a successful home sale - including the contract, forms, and disclosure statements - and expose the home to the widest range of prospective buyers through the local Multiple Listing Service (MLS).
Is the commission negotiable?Yes. There is no standard commission. They are not set by law and vary depending on service, customer needs, and company policy. In general, agents charge between 4 percent and 8 percent for full service. Some agents prefer not to offer sellers' the option of paying a fee for an individual service. If you insist on overpricing your home, an agent may well insist on a higher commission to cover the added marketing expenses and time that are needed to sell it.Think of a commission as a point you must negotiate and evaluate.
How do you determine how much a home is worth?The short answer: a home is ultimately worth what is paid for it. Everything else is really an estimate of value. Take, for example, a hot seller's market when demand for housing is high but the inventory of available homes for sale is low. During this time, homes can sell above and beyond the asking price as buyers bid up the price. The fair market value, or worth, is established when "a meeting of the minds" between you and the buyer takes place.
Are there standard ways to determine how much a home is worth?Yes. A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home's value.Your REALTOR® can provide a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties. Reviewing comparable homes that have sold within the past year along with the listing, or asking, price on current homes for sale should prevent you from overpricing your home or underestimating its value.A certified appraiser can provide an appraisal of a home. After visiting the home to check such things as the number of rooms, improvements, size and square footage, construction quality, and the condition of the neighborhood, the appraiser then reviews recent comparable sales to determine the estimated value of the home.You also can check recent sales in public records, through private firms, and on the Internet to help you determine a home's potential worth.
What is the difference between list price and sales price?The list price is your advertised price, or asking price, for a home. It is a rough estimate of what you want to complete a home sale. A good way to determine if the list price is a fair one is to look at the sales prices of similar homes that have recently sold in the area.The sales price is the actual amount the home sells for.
What about appraised value and market value?A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors.Market value is the price the house will bring at a given point in time, once you and the buyer establish a "meeting of the minds" on price.
Do I have to disclose information about my home?Disclosure could protect you from a lawsuit. Today, home sellers in most states must now fill out a form disclosing material facts about their homes. Material facts are details about the home's condition or legal status, as well as the age of various components.If your state does not require a written disclosure, the real estate laws probably require sellers to disclose any known problems with the home they are selling.
What kinds of things are considered material facts?The following examples include details that would qualify as material facts that must be revealed by sellers about their homes:
Some things are not material facts and do not have to be disclosed. They include personal information about the seller and the seller's reason for moving.Among those things that may or may not be material facts: whether a death took place in the home or whether a home is considered haunted.
Are agents responsible for disclosing material facts?They can certainly be held accountable, particularly if they had prior knowledge of a material fact or should have known about it.For example, if the seller has to use pans to collect water after a heavy rain, it is the agent's responsibility to question the seller about the integrity of the roof, and then relay this information to potential buyers. However, if the seller duly hides a defect from the agent for which the agent had no prior knowledge, then the agent is not accountable. Experts say agents are not home inspectors, but they are expected to use their best judgement when something appears suspicious.
Any advice on negotiating?Be patient, know your home's worth, adopt a positive attitude, and do not let emotions - anger, pride, greed, or prejudice - get in the way of negotiating the best deal.Your home obviously means a lot to you, but you have already made the decision to move on, so begin to think of your home as "the house" or "the condo," instead of "my home."When reasonable offers come along, take them seriously. You can always counter any offer made by the buyer that comes near your asking price. Do not spoil a good deal over a few hundred dollars.
How do I respond to a low-ball offer?Let your agent know it is too low to warrant a counteroffer and that you are willing to negotiate but only once a more reasonable offer is made. Ask the agent if the buyer was shown comparable market values of similar homes that have recently sold in your area; and ask if the buyer was ever properly qualified. You do not have to settle for less if you are realistic about your chances of getting more.
Do I have to consider contingencies made by the buyer?You can reject, accept, or counter any offer that is presented to you. Most offers include contingencies, which protect the buyer in case something goes wrong.The two most common contingencies deal with financing, which makes the sale dependent on the buyer's ability to obtain a loan commitment from a lender within a stated time period, and an inspection, which allows the buyer to have a professional inspect the property to their satisfaction.There really is no reason not to consider these contingencies because they are quite reasonable and standard.However, think twice about a contingency that is predicated on you making expensive home repairs, such as a kitchen renovation. Now, if the roof is caving in, that is an entirely different story. You may need to spend money to replace it or lower the asking price of the home.
Can the seller also include contingencies in a contract?Yes. For example, if you decide to sell your existing home first before buying another one, you can make the sale of your home contingent on finding a replacement home. Some sellers opt for this contingency to avoid a double move, such as moving to a hotel or rental until a new home is found and made available. However, there is one problem with this type of contingency: it can inconvenience the buyer, particularly if his own home is in escrow. He may not be willing to wait for you to move.This strategy has a better chance of working when the market is relatively strong, your home is a rare find, the price and terms of the transaction are very favorable for the buyer, or the buyer is in no hurry to move.
What is a bridge loan?It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old home.The key to a bridge loan is having a qualified buyer and a signed contract. Usually, the lender issuing the mortgage loan on the new home will write the interim financing as a personal note due at settlement on the property being sold.If, however, there is no buyer for the property you have up for sale, most lenders will place a lien on the property, thereby making that bridge loan a kind of second mortgage.Things to consider: interest rates are high, points are high, and there are costs and fees involved on bridge loans. It may be cheaper to borrow from your 401(K). Actually, any secured loan is acceptable to lenders for the down payment. So if you have stocks or bonds or an insurance policy, you can borrow against them as well.
What is seller financing?Also known as a purchase money mortgage, it is when the seller agrees to "lend" money to the buyer to purchase and close on the seller's home. Usually sellers do this when money is tight, interest rates are high or when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price. Seller financing differs from a traditional loan because the seller does not actually give the buyer cash to complete the purchase, as does the lender. Instead, it involves issuing a credit against the purchase price of the home. The buyer executes a promissory note or trust deed in the seller's favor. The seller may take back a second note or finance the entire purchase if he owns the home free and clear.The buyer makes a sizeable down payment and agrees to pay the seller directly every month.
What are the benefits of seller financing?Seller financing is a viable option when the seller does not immediately need the entire cash equity they have accumulated in the home. In return for providing financial assistance to the buyer, the seller receives tax benefits, attracts a larger pool of potential buyers, generally completes the sale sooner, and gets good interest earnings.As for the buyer, seller financing offers less rigid qualification requirements and cost savings by eliminating nearly all loan fees.Fear of default often makes many sellers reluctant to take back a second note or finance the entire purchase. A thorough credit check should help to dispel many of these fears, although the mortgage also allows the seller to foreclose on the property in case of default.A seller may also require the buyer to carry hazard insurance on the property and include a due-on-sale clause, a provision in the mortgage note that allows the seller to demand full repayment if the borrower sells the property. Other financing, disclosure and repayment-term requirements also will need to be met.It is a good idea to consult an attorney when putting together this kind of transaction.
How does the seller determine what rate to provide?The interest rate on a purchase money note is negotiable, as are the other terms in a seller-financed transaction. To get an idea about what to charge, sellers can check with a lender or mortgage broker to determine current rates on mortgage loans, including second mortgages.Because sellers, unlike conventional lenders, do not charge loan fees or points, seller-financed costs are generally less than those associated with conventional home loans. Interest rates are generally influenced by current Treasury bill and certificate of deposit rates.Understandably, most sellers are not open to making a loan for a lower return than could be invested at a more profitable rate of return elsewhere. So the interest rates they charge may be higher than those on conventional loans, and the length of the loan shorter, anywhere from five to 15 years.
What is a lease option?It is an agreement between a renter and a landlord in which the renter signs a lease with an option to purchase the property. The option only binds the seller; the tenant has a choice to make a purchase or not.Lease options are common among buyers who would like to own a home but do not have enough money for the down payment and closing costs. A lease option may also be attractive to tenants who are working to improve bad credit before approaching a lender for a home loan.A lease option also may be a way for the seller to move property in a slow market. Seller advantages include earning above-market rent, retaining all the property income tax deductions during the lease-option period, and attracting tenants who will care for the property as though they owed it.
How does a lease option work?A landlord agrees to give a renter an exclusive option to purchase the property. The option price is usually determined at the outset, but not always, and the agreement states when the purchase should take place - whether, say, six months, or a year or two down the road.A portion of the rent is used to make the future down payment. Most lenders will accept the down payment if the rental payments exceed the market rent and a valid lease-purchase agreement is in effect.Before you opt to do a lease option, find out as much as possible about how they work. Talk to REALTOR®s, read published materials, and, in the end, have an attorney review any paperwork before you and the tenant sign on the dotted line.
How do capital gains work when you sell your home?If you sell your primary residence, you may be able to exclude up to $250,000 of gain - $500,000 for married couples - from your federal tax return. To claim the exclusion, the IRS says your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale.You also must not have excluded gain on another home sold during the two years before the current sale. However, special rules apply for members of the armed, uniformed and foreign services and their families in calculating the 5-year period.If you do not meet the ownership and use tests, you may use a reduced maximum exclusion amount. But only if you sold your home due to health, a change in place of employment, or unforeseen circumstances.If you can exclude all the gain from the sale of your home, you do not report it on your federal tax return. If you cannot exclude all the gain, or you choose not to, you must use Schedule D of Form 1040, Capital Gains or Losses, to report the total gain and claim the exclusion you qualify for.
What if you have more than one home?For more than one home, you can exclude the gain only from the sale of your main residence. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is usually the one you live in most often
Can I deduct a loss on the sale of my home?No. A loss from the sale of personal-use property, such as a home or car, is not deductible. They are considered nondeductible personal losses, and you cannot reduce your tax bill by deducting them the way you would deduct stock and investment losses on your tax returns.
Are home selling costs deductible?If you sell your home and realize a taxable gain even after the exclusion, you can reduce your gain with selling costs.Your gain is defined as your home's selling price, minus deductible closing costs, minus your basis. The basis is the original purchase price of the home, plus improvements, less any depreciation.Real estate broker's commissions, title insurance, legal fees, administrative costs, and inspection fees are all considered to be selling costs.
Can I deduct improvements made to my home?Yes, but only after you have sold it because improvements add to the basis of your home. Remember your gain is defined as your home's selling price, minus deductible closing costs, minus your basis. The basis is the original purchase price of the home, plus improvements, less any depreciation.The IRS defines improvements as those items that "add to the value of your home, prolong its useful life, or adapt it to new uses" - such as putting in new plumbing or wiring or adding another bathroom.
What about repairs made to get the home ready for sale?If you realize a taxable gain after you sell your home, even with an exclusion, you can reduce your gain with selling costs. These selling costs may include items that are otherwise considered to be repairs - such as painting, wallpapering, even planting flowers - if you complete them within 90 days of your home sale and provided they were completed to make the home more saleable.
Are seller-paid points deductible?For the buyer, yes, but not the seller - even though the seller pays them. Since January 1, 1991, homebuyers have been able to deduct points paid by the seller whereas, previously, they could only deduct the actual points they paid on the home loans themselves
If faced with foreclosure, what are my options?Talk with your lender immediately. The lender may be able to arrange a repayment plan or the temporary reduction or suspension of your payment, particularly if your income has dropped substantially or expenses have shot up beyond your control. You also may be able to refinance the debt or extend the term of your mortgage loan. In almost every case, you will likely be able to work out some kind of deal that will avert foreclosure.If you have mortgage insurance, the insurer may also be interested in helping you. The company can temporarily pay the mortgage until you get back on your feet and are able to repay their "loan."If your money problems are long term, the lender may suggest that you sell the property, which will allow you to avoid foreclosure and protect your credit record.As a last resort, you could consider a deed-in-lieu of foreclosure. This is where you voluntarily "give back" your property to the lender. While this will not save your house, it is not as damaging to your credit rating as a foreclosure. Exhaust all other viable options before making a decision.
What types of foreclosures are there?There are two types - judicial and non-judicial. A foreclosure that results from a court action is a judicial foreclosure. The mortgage deed or trust does not have a power of sale clause, therefore the lender, trustee or another lienholder must take the borrower to court to recover the unpaid balance of a delinquent debt. By contrast, a non-judicial foreclosure is one in which a foreclosure can be completed outside the court system. Real property can be sold under a power of sale in a mortgage deed or trust that is in default, but the lender is unable to obtain a deficiency judgment.
Can a home be sold for less than its mortgage?Sometimes. But it is a complicated process and a lot will depend on the lender.This process is called a "short sale," which occurs when a lender agrees to write off the portion of a mortgage that's higher than the value of a home. But, usually, a buyer must be willing to purchase the property first. A short sale may be more complicated if the loan has been sold in the secondary market. Then the lender will need permission from Freddie Mac or Fannie Mae, the two major secondary-market players.If the loan was a low down payment mortgage with private mortgage insurance, the lender also will need to involve the mortgage insurance company that insured the low down payment loan.The short sale can keep the homeowner from landing in bankruptcy or foreclosure. But it is not an easy procedure to approve, and it involves as much, if not more, paperwork than an original mortgage application. Instead of proving your credit worthiness and financial stability, you must prove you are broke. And any remaining difference between your home's value and the balance on your mortgage is considered a forgiveness of debt, which usually means it is taxable income.
How long do bankruptcies and foreclosure stay on a credit report?They can remain on your credit record for seven to 10 years.However, a borrower who has worked hard to reestablish good credit may be shown some leniency by the lender. And the circumstances surrounding the bankruptcy may also influence a lender's decision. For example, if you went bankrupt because you were laid off from your job, the lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, it is unlikely the lender will readily give you a break.
Renting an apartment doesn’t have to be difficult when you understand the basic rental approval process and the specific requirements for the desired apartment or house. However, before you can sign a lease agreement and move in, you’ll have to go through a number of steps. It’s something every renter goes through pretty much everywhere. Here’s a look at everything you need and must do when applying for a rental property, including a list of required documents and some tips and tricks to help you getting that rental.
Filling out the rental application is the first step. Your agent can help you here to get it right. Here is a list of some of the required information needed when applying:
Almost always there will be a pre-printed application form supplied by the landlord or your rental agent. This paperwork will often guide you through the process with questions and prompts. Answer everything as thoroughly as possible and submit the supporting documents asked for.
Usually you’ll also have to pay a non-refundable rental application fee which can vary anywhere from $20 to $100. The landlord charges this apartment application fee to cover the costs of screening potential renters, sometimes including background and credit checks.
The credit and background checks are usually part of the application fee and require your authorization. The landlord conducts these to assess your criminal history, determine your reliability and ability to enter into a legally binding rental agreement.
Proof of some sort of income is critical when applying for an apartment or house rental, as it shows that you have a reliable source of income to pay the monthly rent. Proof of income can be documented through any of the following:
Should it turn out that your income (or credit score) isn’t high enough to secure a rental or you have an unstable income situation, you may want to ask a trusted person to be your co-signer, such as a family member. A guarantor or co-signer is someone who co-signs the lease with you and is legally on the hook to pay your rent if you fail to do so.
Prospective landlords many times want references from previous landlords to verify your rental history and trustworthiness as a prospective tenant. They may want to call your previous landlord to determine how reliable you are and establish how punctual you were paying your rent in the past.
If you are renting your very first apartment or home and don’t have any previous rental history, supply personal references from your boss or superior that speak to your trustworthiness and reliability. Make the rental process easier with these personal reference letters.
The first month's rent and a security deposit equal to the amount of the monthly rent are one of the many requirements for renting an apartment or house. These sums are due with signing your lease. Security deposits provide landlords insurance for damage caused by a tenant beyond normal wear and tear. This sum is usually fully refundable if there are no chargable damages.
Your landlord or property manager will send you an email or call you to let you know if you have been approved or not. Once approved they will forward you the lease or invite you to meet with them to sign it. Make sure you read through everything and understand every detail of the lease which is a legally binding contract. Furthermore, create a move in report with the help of your agent to make sure any existing damage or issues in the rental are documented before you actually move in, so you’re not held liable when you move out. Look out for anything damaged or missing, such as holes in the walls, scuffs on the floors, damage to the windows, doors or major appliances, and any noticeable exterior and interior wear and tear. Document everything carefully with time stamped photos and descriptions .Also, let your landlord know about any issues that need addressing before you move in. Your agent will be able to help you with these steps.
Moving into your new abode is very exciting event but it can be overwhelming. If you already own furniture and such it can be of help to hire a professional mover. Make sure to contact at least three moving companys and get estimates so you can compare and select the one. Agai, your agent will be able to assist you with recommendations.
A few things to know about the rental process that could impact approval include on-time rent payment history, reliable income, and good communication. Here are some tips to help move the renting process along:
Depending on the landlord or property management, waiting for apartment application approval should only take up to 72 hours.
Once you’ve fulfilled all of your apartment rental requirements, you will hear if you’re approved by email or phone. Your landlord will also schedule a time to sign the lease and review any questions or next steps.
Because leases are legally binding contracts, you must be 18 when renting an apartment. In some situations, a landlord may rent to an underage tenant, although this is rare and usually requires a guarantor or co-signer.
When your apartment application is approved, you can decide whether or not you still want to sign the lease or decide to pursue a different option. If you choose to move forward, you will need to:
Yes, you can apply for multiple rental properties at the same time.
Now that you have a better idea of the requirements and the application process, you'll be approved in no time! But if you’re having trouble finding the right place and applying for it, I can help you find exactly what you’re looking for, and help you obtaining it, too.
A common mistake that renters and especially first-timers often make is failing to create a realistic budget. It should include much more than the rentalprice, but also other costs, such as utilities, renters insurance, and any additional fees that may occur. Furthermore, renters need to consider moving expenses, and other start-up costs, such as buying furniture. Not having a realistic budget can lead to stress, difficulty making rent payments on time, and difficulty affording other living expenses.
It is important to do some research on the landlord and their rental units before entering into a lease agreement. Your agent can be of great help in this matter. You can also check online reviews from past tenants, if available. Exploring if they maintain their rental units properly is another prudent step.
The most common mistake that renters make is not checking the location of the rental. This includes the surrounding neighborhood, transportation options, and proximity to shops, parks, estaurants, entertainment, and other amenities, all of which can enhance the quality of life. Additionally, consider the potential for noise and traffic.
Before signing any lease agreement, it is crucial to read the entire contract to ensure you understand and agree with its terms. Make sure you know what is expected of you as a renter. Familiarize yourself with the liability clauses and see how much of a renters insurance policy you need to take out. Also, explore the termination clauses or renewal dates so you can plan accordingly.
Getting renters insurance for yourself and your belongings is essential as a tenant. Renters or tenant insurance will cover liability claims made against you by others, as well as any damage done to your property while living at the rental unit. This type of insurance coverage is relatively inexpensive, but it still provides invaluable protection against unexpected accidents or events occurring during your tenancy period.
Another common mistake renters make is not creating and saving a move in record detailing the condition of the rental before moving in. Before signing the lease, inspect the apartment with your agent and note any issues that need to be addressed by the landlord, such as holes, leaks, broken appliances, pest infestations and/or any other irregularities. Records can be created by taking time-stamped photos or videos of the condition of the apartment, including any damages or issues. Keep them through your rental period, and if any problems arise, use them to avoid disputes with the landlord when moving out. Without such a record, it may be difficult for the renter to prove that damages existed before they moved in, and the landlord may hold the renter responsible for those damages.
Rental agreements are legally binding contracts, so you need to understand all aspects before signing one. If in doubt, hire a real estate attorney to help you out. Remember the above tips when you are seeking a rental and work closely with your real estate agent.
1. Make appointment with seller for listing presentation
2. Send seller a written or e-mail confirmation of listing appointment and call to confirm
3. Review pre-appointment questions
4. Research all comparable currently listed properties
5. Research sales activity from Local MLS Broker Marketplaces and public records databases
6. Research Average Days on Market for property of this type, price range, and location
7. Download and review property tax roll/assessor information
8. Prepare preliminary Comparable Market Analysis (CMA) to establish fair market value
9. Obtain copy of subdivision plat/ complex lay-out
10. Research property’s ownership and deed type
11. Research property’s public record information for lot size and dimensions
12. Research and 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 a formal file on property
19. Confirm current public schools and explain impact of schools on market value
20. Review listing appointment checklist to ensure all steps and actions are completed
21. Review Obsolete Property Rehabilitation Act (OPRA) Report from Township for all permitted records
22. Add client into your database
23. Give seller an overview of current market conditions and projections
24. Tour property
25. Review agent’s and company’s credentials and accomplishments in the market
26. Present company’s profile and position or niche in the marketplace
27. Present preliminary CMA to seller, including comparable properties, sold properties, current listings, and expired listings
28. Offer pricing strategy with updates to CMA based on tour of home and updates, upgrades professional judgment, and current market conditions
29. Discuss goals with seller to market effectively
30. Explain market power and benefits of Local MLS Broker Marketplaces
31. Explain market power of web marketing, IDX and REALTOR.com
32. Explain the work you do behind the scenes and your availability on weekends
33. Explain role in screening for qualified buyers and protect seller from curiosity seekers
34. Present and discuss strategic master marketing plan
35. Explain transaction/agency brokerage relationship
36. Review and explain all clauses in listing contract and addendum, then obtain seller’s signature once property is under listing agreement
37. Review current title information
38. Gather square footage/measure overall and heated square footage as required
39. Measure interior room sizes
40. Confirm lot size via owner’s copy of certified survey, if available
41. Note all unrecorded property liens, agreements, easements
42. Obtain house plans, if applicable and available
43. Review house plans and make copy
44. Prepare showing instructions for buyers’ agents and showing times with seller
45. Discuss possible buyer financing alternatives and options with seller
46. Review current appraisal if available
47. Identify Homeowner Association manager if applicable
48. Verify Homeowner Association Fees with manager—mandatory or optional, plus fees
49. Order copy of Homeowner Association bylaws, if applicable
50. Research electricity availability, supplier’s name, and phone number
51. Have utility companies provide average utility usage from last 12 months of bills
52. Research and verify city sewer/septic tank system
53. Calculate average water fees or rates from last 12 months of bills
54. Confirm well status, depth and output from Well Report
55. Natural Gas: Research/verify availability, supplier’s name, and phone number
56. Verify security system, current terms of service and whether owned or leased
57. Verify if seller has any transferable contracts with a Solar Company, Homeowners Warranty, Exterminator, Gardener, Gas/Oil Comapny, etc.
58. Ascertain need for lead-based paint disclosure
59. Prepare detailed list of property amenities and assess market impact
60. Prepare detailed list of property’s inclusions and conveyances with sale
61. Compile list of completed updates, repairs and maintenance items
62. Send vacancy checklist to seller if property is vacant and register the property with the township if it is vacant or a rental home
63. Explain benefits of Homeowner Warranty to seller
64. Assist sellers with completion and submission of Homeowner Warranty Application
65. Place Homeowner Warranty in property file for conveyance at time of sale
66. Have extra key made for lockbox and one for your file
67. Verify if property has rental units involved.
68. If the property does have rental units, make copies of all leases for retention in listing file
69. Verify all rents and deposits
70. Inform tenants of listing and discuss how showings will be handled
71. Arrange for installation of yard sign
72. Complete new listing checklist
73. Review curb appeal assessment and provide suggestions to improve saleability
74. Review interior décor assessment and suggest changes to shorten time on market (staging)
75. Load listing into transaction management software program
76. Prepare Local MLS Broker Marketplaces Profile Sheet
77. Enter property data from Profile Sheet into Local MLS Broker Marketplaces Database
78. Proofread Local MLS Broker Marketplaces database listing for accuracy— including proper placement in map
79. Add property to company’s active listings list
80. Provide seller copies of the listing agreement and Local MLS Broker Marketplaces Profile Sheet within 48 hours or within the time period of Local MLS Broker Marketplace guidelines
81. Organize and pay for photo and video shoots. Select photos for upload into Local MLS Broker Marketplaces and use in fliers
82. Create print and internet ads with seller’s input
83. Coordinate showings with owners, tenants, and other agents.
84. Return all calls
85. Install electronic lock box if authorized. Program agreed-to showing times
86. Prepare mailing and contact list
87. Generate mail-merge letters to contact list
88. Order Just Listed labels and reports
89. Prepare fliers and feedback reports
90. Review comparable Local MLS Broker Marketplaces regularly to ensure property remains competitive
91. Prepare property marketing brochure for seller’s review
92. Arrange for printing or copying of marketing brochures or fliers
93. Place marketing brochures in all company agent mailboxes
94. Upload listing to company and agent Internet site, if applicable
95. Mail out Just Listed notice to all neighborhood residents
96. Advise network referral program of listing
97. Provide marketing data to buyers through international relocation network buyers
98. Provide marketing data to buyers coming from referral network
99. Provide Special Feature cards for marketing, if applicable
100. Submit ads to company’s participating internet real estate sites
101. Price changes conveyed promptly to all internet groups
102. Reprint/supply brochures promptly as needed
103. Feedback e-mails sent to buyers’ agents after showings
104. Review weekly market study
105. Discuss with sellers any feedback from showings to determine if changes are needed
106. Set up marketing reports on showing-time application and company website
107. Place regular weekly update calls to seller to discuss marketing and pricing
108. Promptly enter price changes in the Local MLS Broker Marketplaces database
109. Receive and review all Offer to Purchase contracts submitted by buyers’ agents
110. Evaluate offer(s) and prepare a net sheet for the owner for comparison purposes
111. Explain merits and weakness of each offer to sellers
112. Contact buyers’ agents to review buyer’s qualifications and discuss offer
113. Deliver Seller’s Disclosure to buyer upon request and prior to offer if possible. Upload to the Local MLS Broker Marketplaces additional documents at time of listing
114. Confirm buyer is pre-qualified by calling loan officer
115. Obtain buyers’ pre-qualification letter from loan officer if not submitted with offer
116. Negotiate all offers per seller’s direction on seller’s behalf, set time limit for loan approval and closing
117. Prepare and convey counteroffers, acceptance or amendments to buyer’s agent
118. Create excel spreadsheets for easy review on multiple bids
119. Email or send copies of contract and all addendum’s to the closing attorney or title company
120. When Offer to Purchase contract is accepted, deliver to buyer’s agent
121. Making sure your sellers have a reliable real estate attorney which records and promptly deposits the buyer’s earnest money in an escrow account and guides them from contract to closing and all other legal matters arising from a real estate transaction
122. Disseminate under-contract showing restrictions as seller requests
123. Deliver copies of fully signed Offer to Purchase contract to seller
124. Deliver copies of Offer to Purchase contract to lender
125. Provide copies of signed Offer to Purchase contract for office file
126. Advise seller of additional offers submitted between contract and closing
127. Change status in Local MLS Broker Marketplaces to Sale Pending
128. Update transaction management program to show Sale Pending
129. Provide credit report information to seller if property will be seller- financed
130. Assist buyer with obtaining financing, if applicable, and follow-up as necessary
131. Coordinate with lender on discount points being locked in with dates
132. Deliver unrecorded property information to buyer
133. Order septic system inspection, if applicable
134. Receive and review septic system report, and assess any possible impact on sale
135. Deliver copy of septic system inspection report to lender and buyer
136. Deliver Well Flow Test Report copies to lender and buyer, and property listing file, if applicable
137. Verify termite inspection ordered
138. Verify Rhadon and mold inspections ordered, if required
139. Confirm verifications of deposit and buyer’s employment have been returned
140. Follow loan processing through to the underwriter
141. Add lender and other vendors to your management program so agents, buyer, and seller can track progress of sale
142. Contact lender weekly to ensure processing is on track
143. Relay final approval of buyer’s loan application to seller
144. Coordinate with seller for buyer’s professional home inspection
145. Review home inspector’s report and discuss with seller
146. Enter completion into transaction management tracking program
147. Explain seller’s responsibilities, and make sure seller has a real estate attorney to create and interpret any clauses in the contract
148. Ensure seller’s compliance with Home Inspection Clause requirements
149. Assist seller with identifying contractors to perform any required repairs
150. Negotiate payment, and oversee all required repairs on seller’s behalf, if needed
151. Schedule appraisal
152. Provide to appraiser any comparable sales used in market pricing
153. Follow-up on appraisal
154. Enter completion into transaction management program
155. Assist seller in questioning appraisal report if it seems too low
156. Follow up with the seller's attorney to review any contract changes and getting it signed by all parties
157. Have the seller's attorney coordinate the closing process with buyer’s attorney, lender and agent
158. Update closing forms and files for the office
159. Ensure all parties have all forms and information needed to close the sale
160. Help select the location where closing will be held
161. Confirm closing date and time, and notify all parties
162. Assist in solving any title problems or in obtaining death certificates
163. Work with buyer’s agent in scheduling buyer’s final walk-thru prior to closing
164. Double check all tax, homeowners’ association dues, utility, and applicable prorations
165. Request final closing figures from closing agent (attorney or title company)
166. Receive and carefully review closing figures to ensure accuracy of preparation
167. Confirm buyer and buyer’s agent have received title insurance commitment
168. Provide homeowners warranty for availability at closing
169. Forward closing documents to absentee seller as requested
170. Review documents with closing agent (attorney)
171. Coordinate closing with seller’s next purchase, and resolve any timing problems
172. Have a no-surprises closing so seller receives a net-proceeds check at closing
173. Refer sellers to one of the best agents at their destination, if applicable
174. Change Local MLS Broker Marketplaces status to Sold. Enter sale date, price, selling broker, etc.
175. Share the warranty paperwork for claims in the future
176. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
177. Respond to any calls and provide any information required from office files
178. If a rental, verify all deposits and prorated rents are reflected accurately on the closing statement
179. Close out listing in your management program
Download the PDF: 105 More Ways Agents Who Are REALTORS® Are Worth Every Penny of Their Compensation
1. Prepare the buyer for executing a buyer representation agreement
2. Explain agency relationships to the buyer and get state required legal consent to represent, if needed
3. Inform the buyer of working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies
4. Learn the buyer’s wants and non-negotiable needs
5. Understand the buyer’s budget and what will be needed financially
6. Help the buyer understand what property their chosen budget will buy
7. Consider having the buyer fill out a homebuyer’s checklist
8. Assist the buyer in examining how much they can afford to spend
9. Provide quality lender resources
10. Partner with the buyer to locate suitable properties for consideration
11. Match the buyer’s needs with available property
12. Constantly re-evaluate buyer’s needs and refocus property showings to fit those needs
13. After ensuring the buyer understands what is done for them, how it is done, and the benefit to them, obtain signatures on the buyer representation agreement
14. Explain how compensation is paid, who pays it, and what the buyer’s options are for paying it
15. Communicate the working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies
16. Explain Federal and State Fair Housing laws
17. Explain what to look for in applicable property disclosures
18. Reassure the buyer that their personal information will remain confidential
19. Inform the buyer that you will always disclose all known material defects
20. In accordance with state law, provide information on checking the sex-offender registry and crime statistics for the neighborhood
21. Discuss available resources that the buyer can check to learn more about prospective neighborhoods
22. Explain the timeline for house hunting, mortgage approval, and closing
23. Explain the local market and how it impacts the buyer
24. Show statistics on what percentage of list price sellers in the area are currently receiving
25. Inform the buyer on what home features are popular
26. Identify current average days on market
27. Share the dangers of using the price per square foot to figure home values
28. Explain the concept of absorption rate and how it impacts the buying process
29. Indicate current listing months of market inventory
30. Share estimated potential out-of-pocket costs to complete the transaction
31. Assist the buyer in analyzing the loan estimates
32. Qualify the buyer for financial ability to purchase
33. Help the buyer account for the complete costs of homeownership
34. Prepare lender for listing agent calls
35. Assist in comparing different financing options
36. Help the buyer select for viewing only those homes that fit their needs
37. Proceed in showing homes that fit the buyer’s must-haves
38. Caution the buyer on posting information to social media
39. Review the sample sales contract so the buyer is prepared when it comes time to make an offer
40. Schedule showings and provide access to all listed properties as soon as they become available in their local MLS broker marketplaces
41. Educate the buyer on the immediacy of new listings appearing in their local MLS broker marketplaces and the lag time for them to appear on some websites
42. Collaborate with the buyer on properties they may have learned about through their sphere contacts
43. Research and assist on all unlisted properties the buyer wishes to see
44. Preview properties prior to showing if needed
45. Network with other agents to source properties not yet in their local MLS broker marketplaces
46. Contact homeowners in focus areas to see if they are considering selling
47. Set up an automated email alert system through their local MLS broker marketplaces that immediately notifies the buyer of properties that fit discussed requirements
48. Arrange a tour of areas, schools, and key points of interest
49. Provide resources containing neighborhood information on municipal services, schools, etc.
50. Inform the buyer of negative aspects like nearby venues or operations that may result in issues that could impact value
51. Collect and share any other vital information on available homes, remembering to follow all fair housing laws at all times
52. Check applicable zoning and building restrictions
53. Help the buyer decipher public property and tax information
54. Collect and share pertinent data on values, taxes, utility costs, etc.
55. Compare each property shown to the buyer’s wants and needs list and remind them of what they were looking for
56. Help the buyer narrow the search until the buyer identifies top choices
57. Assist the buyer in getting the best property at the best price
58. Suggest that the buyer learn more about the neighborhood prior to making an offer
59. Prepare a comparative market analysis (CMA) in advance of making an offer
60. Prepare the buyer to have the most attractive offer in the current marketplace
61. Explain common contract contingencies and include approved protective clauses in the purchase offer
62. Ensure that the buyer receives and understands all state and federally- required disclosure forms
63. Prioritize contract negotiation goals with the buyer
64. Help create a negotiating strategy
65. Use strategies such as an escalation clause to maintain a competitive offer
66. Prepare the buyer for a multiple offer situation and develop negotiation strategies
67. Write an offer that has a reasonable chance of being accepted
68. Recommend optional contingencies and explain the pros and cons of using them
69. Provide information on purchasing incentives that may be available
70. Discuss financing alternatives
71. Negotiate the buyer’s offers to arrive at the best price and terms
72. Utilize hyperlocal expertise and strong communication skills to assist the buyer in being the successful offer
73. Advocate for the buyer throughout the entire process
74. Encourage the buyer to fully investigate their options in terms of a home inspector, attorney, title company, mortgage lender, and other services as needed
75. Present a list of the types of required and optional inspections such as environmental, roofing, and mold
76. Review and discuss home inspection concerns
77. Negotiate repair requests from home inspection
78. Guide the buyer on meeting all contract deadlines
79. Assist in coordinating communications
80. Advise the buyer to review the settlement statement
81. Inform clients that they need to transfer utilities to the new residence
82. Schedule final walkthrough
83. Accompany the buyer on the walkthrough
84. Assist the buyer in questioning the appraisal report if it affects the financing
85. Confirm clear-to-close with the lender
86. Ensure all parties have all forms and information needed to close the sale
87. Remind the buyer of the location where the closing will be held
88. Confirm the closing date and time, and notify parties if there are changes
89. Gather all required forms and documents for closing
90. Explain flood insurance to the buyer
91. Explain title insurance to the buyer and refer to qualified insurance broker
92. Order any surveys needed
93. Order the appraisal
94. Order the title search
95. Confirm the status of the loan funding
96. Check addendums and alterations for agreed terms
97. Review the buyer’s closing statement to ensure accuracy
98. Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds
99. Double-check all tax, homeowners’ association dues, utility, and applicable prorations, if relevant
100. Request final closing figures from the closing agent (often an attorney or title company)
101. Receive and carefully review closing figures to ensure accuracy
102. Receive and carefully review title insurance commitment with the buyer
103. Advise the buyer to re-key their locks and to consider a one-time cleaning service or landscaping before moving day
104. Review documents with the closing agent (attorney)
105. Support the buyer in any final closing activities
Phyllis, her associates and her company adhere strictly to the NY State Anti Discrimination Laws outlined at