FSBO Jane

A June article in TheAdvertiser.com highlighted 2009 real estate statistics, minus FSBO listings. Overall, things are good, according to reporter Mary Jane Bauer, but they’re not as good as the previous years.

“As to the number of houses for sale, it seems like there are more to me but the MLS shows 1,574 new listings for 2009 and 1,750 for 2008. Perhaps there are more ‘FSBOs’ now.”

Indeed, more FSBOs could mean things have gotten back to normal or even exceeded 2008’s numbers - that’s what I’m hoping, at least.

To read the rest of the article, click here.

Homebuyers are always contemplating how much to negotiate the price of a house. This article from Inman News blatantly points out that the asking price is not the real price. Like with all things in life, whether it is a new big-screen TV or a new house, you have to intelligently negotiate the price.

First, you need to find out how many people are interested in the house. You can’t commit to a major negotiation if others are offering a higher price. Don’t bid a price that you can’t really pay. If the interest is high among numerous buyers, and the bids are higher than what you can afford, move on.

If you are the only one or one of few interested buyers, and a negotiation seems probable, do some research on a fair amount to offer. If the asking price seems high, research what other houses are going for in the surrounding areas. If no other houses are up for sale, search for houses that are close in size and similarity. Use this information to back up your negotiation.

The truth is, with real estate, few home sellers actually expect to receive their asking price, especially in this current market. A truly interested buyer is not someone that they’ll let easily escape, so be prepared to offer an intelligent negotiation. The idea is not to snatch the house out from under the sellers, but to negotiate a fair and reasonable price for both of you.

An assumable mortgage can be passed from one homeowner to the next. It is a loan that allows a new buyer to take over the seller/current homeowner’s mortgage after purchasing a home.

What happens when I assume a seller’s mortgage?
You inherit both the interest rate and the monthly payment schedule.

Is this good or bad?
It depends on the lender. Assuming the seller’s mortgage could mean that you are paying a lower rate on the existing mortgage than if you were to get a brand-new mortgage loan on the house. However, the lender is free to change the loan’s terms at any time. Also, the original homeowner/loan borrower may be held liable if the home is damaged (due to flood, fired, etc) under your ownership.

So all I do is take over the mortgage payments?
No. You must first qualify for the loan and you still need pay closing fees (cost of appraisal, title insurance, etc). You also have to pay the difference between the mortgage balance and the home’s current worth. For example, if you want to purchase a home that has a $60,000 loan balance, but the home is worth $180,000, you need to come up with a $120,000 down payment, plus the fees for the closing costs in order to seal the deal.

Landscaping. Unless you have a green thumb, you most likely won’t want to spend long days outside gardening, getting your property to look exactly the way you want it. If you are happy with a simple lawn, with little to no shrubbery, then this post is not for you. However, if you want a lush, tropical property or a gorgeous perennial garden, you may want to consider hiring a professional landscaper.

Why would I hire a professional?

Ask yourself the following questions:
• It this my first landscaping project? If so, hire a landscaper.
• Do I understand technical aspects, concerning things like digging and drainage? If not, hire a landscaper.
• Am I unsure as to what type of plants work best with the climate of my neighborhood? If so, hire a landscaper.
• Do I know what I want? For example, “Which flowers look nice with those plants?” If you don’t (or if you do but want guidance), hire a landscaper.
• Do I have the time to spend outside… all day, every day… for a week or two? If not, hire a landscaper.

Once I find a landscaper, what do I do?

Remember that you are hiring this person to do a job. Like any employee anywhere in the world, a landscaper needs credentials.

• Does the landscaper have a license? Most landscapers are required to have some type of license or certificate, depending upon the state in which you live.
• Is the landscaper insured? If the landscaper gets hurt on the job, you could be liable to pay for hospital bills. Protect yourself… and your investment!
• Does the landscaper have a portfolio? Just as you had to produce a resume for your first job interview, a landscaper should be expected to provide you with samples.
• Will the landscaper provide an estimate? You need to know exactly how much you are paying BEFORE the work begins. You have a right to know the cost of the landscaping, down to the smallest detail. And if the landscaper suggests additions as he/she is working, ask how much they cost before you say yes.

ASK QUESTIONS! Your landscaper works for you. If you don’t like a design, speak up. If you are concerned about the price of pot or a fountain, tell someone. You should be able to have the landscape of your dreams (that matches your budget).

Since I love watching those shows that showcase different properties across the country for similar prices, I’m doing it here.

This time, let’s look at properties worth around $500K.

Here’s what half a million dollars can get you, all around the country:

Midwest: Valparaiso, IN

USD: $500,000
Bedrooms: 4 Bathrooms: 2.5

Southeast: Celebration, FL

USD: $499,990
Bedrooms: 3 Bathrooms: 2.5

South: New Orleans, LA

USD: $450,000
Bedrooms: 3 Bathrooms: 2 full, 2 half

Northeast: Huntingdon Valley, PA

USD: $519,900
Bedrooms: 4Bathrooms: 2.5

Image Sources: BuyOwner.com

A friend of mine recently scored an affordable townhome in one of the most desired suburbs of Chicago. Because of my real estate expertise, she was eager to describe the home to me in words that I understand: laminate wood flooring, open floor plan, spacious backyard, two second-level suites and a main-level powder room, ample kitchen cabinetry and crown molding. She found a great buy, and I’m happy for her. But one comment that she made stuck with me more than the rest. She told me that the past owner attempted to apply crown molding in her bedroom, and she applied it upside-down.

Yikes. I can think of few more embarrassing moments than being that seller, answering the confused questions from potential buyers on how the crown molding ended up upside-down.

To steer away from embarrassing disasters like this, a simple reminder remains clear: read the directions! When attempting any project yourself, read the directions all the way through, make sure you have all of the supplies needed, look at the pictures, and if you’re confused, ask for help.

On a side note, if you need a lesson in molding 101, here’s a great blog article to check out!

I’ve been doing some house-hunting lately, mostly just for fun, and I’ve noticed a new trend. It seems like urban-style lofts are taking over the suburbs! I can see why this type of housing is so appealing, especially in a suburban environment. It gives you the flexibility of a living space and a work space, and it boasts charming features like high beamed ceilings and exposed brick walls. For those of us who want all the advantages of loft living without the hassle of the big city, a suburban loft may be the perfect solution.

Here are some of the benefits of loft living:

Open floor plan
A combination of high ceilings and large windows (usually with great views) creates a bright, open atmosphere throughout.
Customization
Because of their open layout and unfinished nature, lofts let you define your own living areas and decorate to suit your personal taste.
Creativity
Whether you prefer traditional or modern decor, a loft’s floor plan can easily accommodate any decorating scheme.
Convenient location
Even in the suburbs, lofts are usually located in downtown areas, giving you easy access to all amenities.

Image: http://www.ianmarshall.com

It starts with your first apartment. You fill it with hand-me-downs and mismatched pieces you found at thrift stores, adding more and more as time goes on, until one day, you wake up and think you are outgrowing this shoebox of a one-bedroom, and you need more space. Then comes you next apartment, and your next, until you buy a home—your first big purchase of this kind, and you clean it and take care of it with pride because it’s yours. But eventually even that home becomes too small, or in the wrong location, or lacking in outdoor space. So you move up again, until you do it again. Along the way, there are always new decorating ideas to consider or new products to purchase or nicer neighborhoods to move to.

Sound familiar? For many Americans, this is the constant struggle of home ownership—wanting more. Some say it’s the reason mortgages got so out of control and the reason the real estate market has plummeted.

Regardless, there’s one valuable lesson to be learned from the always-wanting-more mindset: When it comes to buying a house, don’t overbuy.

Take Edmund Andrews, an economics reporter for the New York Times, who recently told about his own personal crisis of buying a house outside his means and then amassing large credit-card debt to try and keep up with payments. It’s a fascinating story and one that’s all too common.

As a kid, I remember talking to my friends about “grown up stuff.” One of the subjects brought up by me, the future Realtor, was second mortgages. I knew my parents took out two mortgages on our house, but I had no idea what that meant at the time. Even today, many people still have no idea what taking out a second mortgage entails.

What is a second mortgage?

It means what it says. It is a second loan taken against your home, on which there is already an existing, primary mortgage. It’s often used when the value of a home has significantly increased and the owners want access to the cash immediately. However, you still need to pay off the existing loan before you can begin to pay the outstanding balance on your second loan.

Why might I need a second mortgage?

Taking out a second mortgage gives you the cash you may need to pay for the following:

• Accumulated debt from a car payment, high-interest credit cards, medical bills or school tuition
• A second home, a vacation property
• A new business venture

How do I get a second mortgage?

The process of obtaining a second mortgage is very similar to the way you got your first one. First and foremost, you need to shop around. Visit different lenders, get quotes and find the most suitable loan offer. Once you find the loan that will cost you the least amount of money, apply. After the lender completes an appraisal of your home, you will be required to pay closing costs (like you did on you primary mortgage).

How much can I borrow?

You will be able to borrow a specific sum of money based on your home’s equity (aka the difference between the appraised value of your home and the amount you have already paid towards the primary mortgage). This could be anywhere between 85% and 125% of your home’s appraised value, depending on where you live. Keep in mind, though, that the interest rates on your second loan will be higher than those on your first.

Note: Getting a second mortgage loan sounds easy; and it might be for some people. But you should think long and hard before applying for a second mortgage. Is that business going to be profitable? Will you rent out that vacation home when you are not using it? Obtaining a second loan means increasing your debt, so consider everything, down to the most meticulous detail.

Last summer, the Buy Owner Blog posted this article about the increased popularity of concrete countertops, and I’ve noticed that concrete flooring is also becoming more and more popular. Once reserved for driveways and patios, concrete flooring is now popping up in every kind of home, from urban-style lofts to suburban ranches.

There are numerous benefits to concrete. First of all, it’s easy to maintain and easy to change. So, if you get sick of the look, you can always cover the concrete with carpeting or wood flooring. It also comes in a variety of colors and finishes, so it can be personalized to suit your style.

Lots of people like concrete for its aesthetic appeal, but did you know that it also offers health benefits? It’s true! Concrete is great for improving indoor air quality and reducing allergies.

With so many benefits it’s easy to see why everyone is jumping on the concrete bandwagon!