10 Step Guide to Buying... Making an offer!

How to Make an Offer on a House

Realtor.com Team 

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While much attention is paid to the offering price of a home, a proposal to buy includes both the price and terms.

In some cases, terms can represent thousands of dollars in additional value for buyers  or additional costs. Terms are extremely important and should be carefully reviewed.

How Much?

You sometimes hear that the amount of your offer should be a certain  percent below the seller’s asking price or an amount less than you’re really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes more. If demand is weak, then offers below the asking price may be in order.

How Do You Make an Offer?

The process of making offers varies around the country. In a typical situation, you will complete an offer sheet that the REALTOR® will present to the owner and the owner’s representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.

Because counter-offers are common (any change in an offer can be considered a counter-offer), it’s important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed. Once all parties to the contract have signed and initialed it becomes an executed contract with an effective date. The effective date is very important because the clock starts running on the inspection and financing contingencies. 

How Many Inspections?

A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews, wind mitigation and structural inspections.

Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property’s mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through. 

Dream Home Funding: Mortgage Options and Costs

By: Realtor.com Team 

The cost of real estate financing is often greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.

Local REALTORS® can provide mortgage information, discuss financing options and recommend loan sources. 

What Kind of Loan?

Thousands of loans are available from a variety of lenders but, in general, the mortgage you choose will be determined by at least several key factors:

• How much down? Loans with 5 percent down or less are available – in fact, loans from major lenders with no money down have appeared in recent years.
• If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration, the Federal Housing Administration or a private mortgage insurer (required by lenders to protect against a mortgage default). Millions of VA, FHA and PMI loans are generated each year.
• How’s your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.
• Are you a first-time buyer? It might seem that “first-time buyer” means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.

How Do You Get a Loan?

To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the pre-qualification process, the loan officer will describe the type of paperwork required.

Where Do You Get a Loan?

Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies. A growing number of REALTORS® can also arrange financing.

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Buying a Home. How to Choose the Right One!!!

How to Choose the Right Home

By: Michele Lerner 

 

For first-time buyers and repeat buyers alike, the decision to make an offer on a home is both exciting and a little scary. If your offer is accepted, the place you’ve chosen will be your home for the next several years. Not only should you feel emotionally satisfied by your choice, but you should also feel financially comfortable that you’re buying a home that you can afford and that you feel confident will hold onto its value or hopefully increase in value over the years.

While no one can know for sure what will happen to housing values, if you make the choice to buy a home that meets your needs and priorities you’ll be happy to live in it for years to come.

Neighborhood or Home Amenities

For some homebuyers, living in a particular neighborhood takes precedence over all other priorities, but for others, the home itself matters more. Ideally, you’ll find the perfect home in the neighborhood you love at a price that’s below your budget, but realistically, most people have to make some compromises.

You (and your spouse, partner or family) should make a list of what features you want in a home, such as the number of bedrooms, a fenced yard, granite counters in the kitchen, and then rank them in terms of priorities. Think about whether the house or the community matter more to you, and whether it’s worth it to you to make a longer commute in order to live in a home with a larger lot.

When to Compromise

Once you’ve determined whether the location or the house itself matters most, you may have to compromise on some of your priorities. If the location is the most important factor for your home choice but you find that homes are priced above your budget, you can compromise in several ways:

·         Look for a different home type within the community, such as a smaller single family home, a town home or condominium. Decide if you can live with one less bedroom or other features on your list.

·         Consult with a lender or a financial planner to discuss your options for increasing your budget. While no one should overspend on a home, you should recognize that going $10,000 above your price range when you’re financing your purchase with a 30-year fixed-rate loan will actually add only about $30 to your monthly payment.

·         Lower your expectations about the condition of the home. While everyone prefers a move-in ready home, you can often get a better deal on a home that needs some cosmetic repairs. Be careful, though, to have a home inspection and to evaluate the structure of the home to see that it meets your needs. Moving walls and adding a bathroom are costly renovations, while painting and replacing appliances are more reasonable.

If you have your heart set on a specific home style or a home with a larger yard for your children or to garden, your compromise is more likely to be in the location. If you’re willing to commute farther or perhaps choose a home in a community next to the ‘hot’ neighborhood, you can often find a more affordable home that fulfills your wish list.

An experienced Realtor can help you determine when and how to compromise and should take the time to show you a variety of alternatives so you can make an informed decision about when to make an offer.

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Hump Day Happy Hour Reviews from the Warner Team. Realtors with an Appetite!

As working Realtors in Southern Florida our working schedule makes planning and cooking Dinner a Hit or Miss prospect. Eating out most nights can become expensive. 

Enter The Happy Hour as served up in Florida. Think of it as The Early Bird for Working Folks!

Typically Happy Hours run 5:00 to 7:00pm, Monday through Friday offering half price selected wines, drinks and appetizers.  At those prices Food and Libations won't break the bank and you can head home full. 

A few run 7 days a week such as City Cellars in West Palm Beach. Others may exclude Fridays. We will let you know as we review.

Your Suggestions, Reviews and Comments are always welcome!


Bon appetit!  Guten Appetit! Mahlzeit!  Καλή όρεξη!  בתיאבון  Buon appetito!  どうぞめしあがれ



                                                                                                   
                                                           

Where/How Do I Find Homes for Sale?!?

3 Quick Hunting Tips for Home Buyers

: Michele Lerner 

A quick search on realtor.com, Trulia.com & Zillow.com will bring up thousands of homes for sale.  Educating yourself on your local market and working with an experienced Realtor can help you narrow your priorities and make an informed decision about which home to choose.

Start With Your Budget

Before you begin your house search you should have a preapproval letter in hand from a lender and an idea of your comfort level with a prospective house payment. You and your Realtor can begin to search for homes for sale that fit your budget, but keep in mind that you don’t necessarily want to spend up to the maximum amount you can borrow. On the other hand, you can consider going slightly above your preferred price range as long as the monthly payment is still affordable or if you have extra cash to make a bigger down payment.

Find the Right Neighborhood

After you’ve established your price range you’ll need to narrow your search by neighborhood. You should be looking at neighborhoods that allow an acceptable commute to work. Think about the type of setting in which you want to live – urban, suburban or rural. Do you want a community with lots of outdoor recreational amenities; one with shops, restaurants and nightlife; or one with plenty of activities for children and good schools?

Many homes, whether they are single-family residences, townhomes or villas, are part of a homeowner association (HOA). Part of your search process should be to consider whether you want to live in an HOA or not. On the positive side, HOA rules help protect home values and the dues often include community amenities and maintenance. On the other hand, the rules also limit what you can do with the exterior of your home. You’ll also need to include HOA dues as part of your housing budget.

Condominiums and cooperative homes also have association dues and offer a different type of ownership, with the association owning the exterior of the property while you own the interior. These dues will be part of your housing budget, but they typically include some of your homeowner’s insurance and other costs, as well as pay for amenities such as a swimming pool or a fitness center.

It’s a good idea to visit communities at various times of day and night, and on weekends and weekdays, to get a feel for who lives there and what the activity level is like.

Two important elements of a neighborhood influence how well the homes in that community will hold onto their value: crime and schools. While Fair Housing laws prevent a Realtor from telling clients about crime statistics or talking about ‘good’ or ‘bad’ schools, a Realtor can direct you to websites that provide information about those topics. Even if you don’t have children and don’t plan to have them, buying a home in a well-regarded school district can help the property’s long-term value.

Start Searching

Most buyers start searching for a home online on websites such as Realtor.com, Trulia .com and Zillow.com but you can also ask a Realtor to help you find homes for sale. You can request email alerts that notify you when a home that fits your list of priorities comes on the market.

You can evaluate a home first by looking at photos and a description online. In many cases, homes’ online listings have virtual tours or videos that offer the opportunity to see more.

The next step in your house hunt is narrowing down your priorities to find the home that meets your needs.

Look at both new homes and existing homes. New homes are sometimes more expensive than existing homes, but they require less maintenance and often have lower utility bills because of their energy-efficient features.

How to Get a Mortgage Pre-Approval

How to Get a Mortgage Pre-Approval 

There’s nothing more frustrating than falling in love with a home and then discovering you can’t afford to buy it.

Consulting with a mortgage lender is the first step you should undertake in the home buying process. Almost all first-time buyers need a mortgage to finance their home purchase, so get prepared before you look.

When you’re armed with the knowledge of what you can afford, it focuses your search and allows you to make a move when you find a home you love.

What Is a Mortgage Pre-Approval?

Lenders offer borrowers either a pre-qualification letter or a pre-approval letter, but most REALTORS® recommend you get a pre-approval letter before you start home shopping.

A pre-qualification letter states the amount a lender thinks you’ll be able to borrow based on your income and credit profile without any actual documentation.

However, mortgage lending standards have tightened since the housing crisis, and all mortgage loans now require full documentation and verification of income and assets—so most sellers will only accept an offer from a buyer with a full pre-approval letter based on verified information.

Your home hunt will benefit with a pre-approval for two main reasons:

§  First, you’ll have completed the credit check and paperwork requirements for a mortgage, so you’ll know your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.

§  Second, since your documentation will already be in place, a mortgage pre-approval will likely speed up the process once you make an offer.

How to Find a Mortgage Lender

A REALTOR® should also be able to recommend a lender or two for you to interview. You can check for a loan officer’s license and read reviews online to be sure you’re working with someone reliable.

As a first-time buyer, you should call a few lenders to find someone experienced with first-time buyer needs who can possibly help you identify special loan programs in your area.

What to Expect From Your Mortgage Lender

The best lenders take a collaborative approach with borrowers and explain all your loan options. When your lender checks your credit report, they should give you feedback on how to improve your credit profile.

They should also offer recommendations on how to handle your money between the time you apply for a loan and settlement day.

Your mortgage lender should provide advice about when to lock in your loan rate and discuss the pros and cons of various loan programs.

What Your Mortgage Lender Expects From You

Your lender needs you to be honest about your finances and responsive to all requests for additional information, no matter how unimportant it may seem to you. The more cooperative you are with a lender, the easier the loan process will be.

You should be prepared with tax returns, W2s, bank statements, employer names and addresses, and your current landlord’s information.

Your lender will generate a mortgage approval based on your debt-to-income ratio and credit score, but you should also consider your budget and your own comfort level with the payment amount.

There’s no need to borrow the maximum amount you qualify for, particularly if you know you plan to spend money on items that don’t show up on your credit report. Your careful planning and preservation of your emergency fund are important for responsible, long-term homeownership.

How To Ensure Your Home Buying Success !!!

Get a REALTOR® to Ensure Home 

Buying Success

By: Realtor.com Team 

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Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.

But a basic rule in real estate is that all properties are unique. No two properties – even two identical models on the same street – are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.

In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

How Do You Choose a REALTOR®?

In every community you’re likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community.

The best place to find a local REALTOR® is from Previous clients. The experiences and recommendations of past clients can be invaluable.

Other sources include open houses, local advertising, websites such as Realtor.com, Trulia and Zillow, referrals from other REALTORS®, recommendations from neighbors, and suggestions from lenders, attorneys, financial planners and CPAs. In many cases buyers will interview several REALTORS® before selecting one professional to work with. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What to Expect From a REALTOR®

Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.

Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation.

Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.

Are You Ready to Buy a Home?

Are You Ready to Buy a Home?

While it may be acceptable to snap up a pair of shoes on an impulse, buying a home requires thoughtful planning and decision making.

Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a home is a financial and emotional decision that requires the experience and support of a team of reliable professionals including a Realtor, a lender, a lawyer and a range of other individuals.

Why Do You Want to Buy?

The emotional part of the decision comes into play when you think about why you want to move. If you’re a first-time buyer, you need stability in your career and the desire to commit to living in the same community for five to seven years. You should want to establish roots in a neighborhood and look forward to decorating as you please without requiring a landlord’s permission.

Purchasing a home is a lifestyle choice that requires you to think about how you like to spend your time and the type of community where you want to live, such as a rural area without nearby neighbors, a high rise building in a city or a home within a planned community with recreational amenities. The more you understand your priorities for a home, the easier it will be for you to narrow your real estate decisions.

Homeownership can also be a powerful way to increase your personal wealth for you and your family, since you’ll be building equity in your home as you pay off your mortgage.

Are Your Finances Ready for Homeownership?

While your dream home may or may not be within your reach right away, you can take steps to become a homeowner the moment you earn your first paycheck. In order to qualify for a mortgage loan to buy a home, you’ll need good credit, a pattern of paying your bills on time and saving money, and a maximum debt-to-income ratio (your gross monthly income compared to the minimum payments on all recurring debts) of 43 percent. Some lenders have stricter guidelines, so the lower your debt-to-income ratio, the better your chances of a loan approval.

While loan programs are available with low down payments of 3.5 to 5 percent, and a few programs offer no down payment at all, you’ll still need some savings to pay for closing costs and moving expenses, a deposit on a home, and for cash reserves after you buy. Saving money and preserving or improving your credit history are essential elements to homeownership.

What Can You Afford to Buy?

Housing prices and rents vary from one location to another, but you can use a rent-vs.-buy calculator to estimate the difference between your current rent and buying a home. In some markets buying a home can cost the same or even less than renting. Remember, when you’re a homeowner you need to included homeowners insurance, property taxes and homeowner association dues in your housing costs. You can also use a home affordability calculator to help you estimate what you can pay for a home. You should also think about your plans for the future and how you spend your money, along with your comfort level with a mortgage payment. A lender will tell you how much you can borrow, but that lender won’t know how much you spend on travel or golf or your plans for potentially reducing your work hours when you have a family.

Once you’ve thought through the emotional and financial aspects of becoming a homeowner, your next steps should be to find a reliable, experienced Realtor to become your partner in the homebuying process and to meet with a reputable lender who can discuss your options for financing your purchase.

By: Michele Lerner |

10-Step Guide to Buying a House

Are You Ready to Become a Homeowner?
Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a house is a financial and emotional decision that requires the experience and support of a team of reliable professionals. Read more »

Get a REALTOR®
In the maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area. Read more »

Get a Mortgage Pre-approval
Most first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the process. Find out how much you can afford before you begin your home search. Read more »

Look at Homes
A quick search on realtor.com® will bring up thousands of homes for sale.  Educating yourself on your local market and working with an experienced REALTOR® can help you narrow your priorities and make an informed decision about which home to choose. Read more »

Choose a Home
While no one can know for sure what will happen to housing values, if you choose to buy a home that meets your needs and priorities, you’ll be happy living in it for years to come. Read more »

Get Funding
The cost of financing your home purchase is usually greater than the price of the home itself (after interest, closing costs and taxes are added). Get as much information as possible regarding your mortgage options and other costs. Read more »

Make an Offer
While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value – or additional costs - for buyers. Read more »

Get Insurance
No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. Real estate insurance protects owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime. Read more »

Closing
The closing process, which in different parts of the country is also known as “settlement” or “escrow”, is increasingly computerized and automated. In practice, closings bring together a variety of parties who are part of the real estate transaction. Read more »

What’s Next?
You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process? Whether you’re a first-time buyer or a repeat buyer, you’ll want to take several more steps. Read more »