Saturday, June 10, 2006

How Expectations Can Differ In A Property Transaction

All parties involved in a real estate sale must have the same expectation...that the property WILL SELL.

Sometimes a sellers gets all excited thinking their house will be snapped up by a keen buyer in a matter of hours or days. Unfortunately, that is usually wishful thinking, when in truth the real estate agent or broker might not be expecting the property to sell at all!

Now, I know what you are thinking – “surely both the seller and the real estate agent expect the property to sell... don’t they?” Well, they probably both HOPE the property will sell, but do they both EXPECT the property to sell... and at what price?

If either the seller or the real estate agent has reservations about whether or not the property will sell, then those issues should be discussed openly. Think about it; either party could have reservations relating to price, condition, location, terms, market, timing or some other factor that could potentially prevent a the property from selling at this time.

Be upfront and identify any reservations or apprehensions before going to the market.

Friday, June 09, 2006

Common Real Estate Terms & Mortgage Terms Explained - Part 7

More definitions for commonly used real estate terms and mortgage terms:

Homeowner's Association
An owners group (within a condominium, apartment, townhouse or single family subdivision), that establishes general guidelines for the operation of the community, as well as its standards.

Inspection
A thorough inspection of a home (inside and out) being considered for purchase. The inspect will look for defects in the property.

Interest
That portion of a mortgage payment that is the "charge" for using the lender's funds.

Interest-Only Loan
Where each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interest Rate Caps
Where a limit is placed on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.

What's A Balloon Mortgage?

In real estate terms a Balloon Mortgage is a mortgage loan that requires the remaining principal balance be paid at a specific point in time. As an example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

A balloon payment is the final lump sum payment that is due at the termination of a balloon mortgage.

Thursday, June 08, 2006

A Good Credit Rating Can Be The Determining Factor When Buying A Home

Your credit rating is the most important piece of information you can have when buying a home.

Have bad credit? Don't know what shape your credit is in? Will you qualify for a mortgage loan or will a bad credit rating stop you from qualifying for a mortgage? You need to find out your credit rating before searching the real estate listings of homes for sale.

Unless you are a cash buyer, checking your credit rating could save you a lot of wasted time in searching for your dream home.

Is There The Motivation To Make The Real Estate Transaction Happen?

There’s that old saying, “it takes two to tango!” Well, if you’re selling your property through a real estate agent it might take three! You see; to bring any real estate deal together takes a motivated buyer, a motivated seller and a motivated real estate agent (if you’re using a real estate agent).

Before putting your property on the market think carefully about how motivated you really are to sell. Truth is; you are either going to be realistic in setting your selling price price expectation or you’re not. That could make a big difference to what happens (or doesn’t happen) when your property goes on the market for sale.

Wednesday, June 07, 2006

Why Home Owners Need To Ask - Is the property “seriously” for sale?

Before listing a house for sale, every homeowner should think carefully about whether they really want to sell and move house. It sounds like a simple enough question, but many homeowners would struggle with an answer.

Here’s what often happens. Some people will put their home on the market at a ridiculously high asking price. Not because they expect their property to sell for that price, but because they can’t decide if they really want to sell. If a homebuyer is willing to pay the home sellers inflated price, it makes the sellers decision a whole lot easier.

But, isn’t that the wrong way to go about selling a property? If money were the only motivating factor, wouldn’t the home seller be better off considering other types of moneymaking schemes?
If a property is not “seriously” for sale it can be a waste of time for all concerned - homebuyer, real estate agent, home seller.

Tuesday, June 06, 2006

Can A Dual Agent Fairly Represent Both The Home Buyer And Home Seller?

Any licensed real estate sales agent or broker can be a buyer's agent representing the home buyer in the transaction. A buyer's agent can represent any home buyer and also accept listings of local homes for sale.

However, when a buyer's agent shows homes that have been listed for sale by himself or herself (or by another agent working for the same brokerage), then a dual agency situation arises.

A "dual agent" is when the same agent or brokerage represents both the home seller and home buyer. Many in the real estate industry view the dual agency senario as being undesirable. Questions need are often raised as to how the particular dual agent can fairly represent both parties in the real estate transaction.

Monday, June 05, 2006

Will A Home Buyer Be Better Off Using A Buyer's Agent?

In most circumstances it is probably wise for a home buyer to use his or her own buyer's agent. This is because a buyer's agent will represent the needs of the buyer (and not necessarily those of the seller).

A buyer's agent will be well aware of what the home buyer is looking for in the way of a house or apartment and should be able to look after the buyer's best interests.

The buyer's agent will search out properties and will normally advise the buyer of the advantages and disadvantage of each property that is inspected.

Property Sold: Checklist Of Tasks Before Moving Into A New Home

Assuming you've just bought a new home and are ready to move in - now what?

Well, there are several small tasks that need to be checked off: turning on electricity/water/gas, arranging for an alarm company, cleaning or replacing the carpet (it is much easier to do this without furniture in place), and notifying your local post office (and friends) of your new address. Renovations are often best done before you move in.

Sunday, June 04, 2006

Common Real Estate Terms & Mortgage Terms Explained - Part 6

More definitions for commonly used real estate terms and mortgage terms (or terminology relating to the real estate/mortgage industry):

Fixed Rate Mortgage
A mortgage loan where the interest rate is established at its origination and continues unchanged through the life of the loan.

FSBO (For Sale By Owner)
Real Estate that is sold by the owner of the property without using a real estate agent.

Foreclosure Property
The legal process by which an owner's right to a property is terminated, usually due to default. Typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.