Are You Ready to Buy a Home Flowchart

Are You Ready to Buy a Home Flowchart

Answer these questions honestly to determine if you are mentally and financially ready to purchase a home.

Are You Ready to Buy a Home? Home Buying Series

Are You Ready to Buy a Home? 

Purchasing a home for the first time is a huge deal and should not be taken lightly. You will be purchasing one of the largest investments that you can make in your lifetime; it takes time, money to find your next home and not to mention that your emotions can get caught up in the process. Going through the home buying process can start 6-12 months prior to purchasing with just the thought of purchasing. Before starting the home buying process you NEED to ask yourself some questions to determine if you are mentally and financially ready to purchase a home, click on the link to go through the “Are You Ready To Buy A Home Flowchart“. The goal is to make the home buying process as quick, smooth, and painless as possible to ensure an easy transaction. Answer the questions honestly and depending on your answers, you would know if you are ready to purchase a home. 

If you find that you are not ready to purchase a home because you do not have the savings available for a down payment or your credit is not as good, whatever the case: all is not lost. Just because you may not be able to buy now, you can buy in the future; it just takes hard work and determination. Or… you may have the finances but are not mentally prepared to own a home — and that is fine. It is better (and I would prefer) that you revisit the thought of purchasing a home when you are fully committed to go through with the process. It not only save you time but money as well and you would not want to be forced to purchase a home when you are not ready. Remember: a home is supposed to be a blessing, not a curse.

Go through the chart to determine if you are ready to buy a home! 

Rentals in Center City Philadelphia

Rentals in Center City Philadelphia

Whether if you are looking into moving to Center City Philadelphia or just anywhere in the Philadelphia are but not sure where to start. This is for you.

About Philly

Philadelphia (Philly as the natives call it) has a rich culture--from its history to its daily everyday life. Known as the City of Brotherly Love, there are 6 major sections of Philadelphia: South, Southwest, North, Northeast, West, and Center City. Downtown Philadelphia (Center City) has so much to offer, with its rich historical culture and events. Enjoy Penns Landing by the Delaware River to go shopping and enjoy entertainment on South Street in South Philadelphia. And if you want to escape from the hustle and bustle of downtown living, you will be within minutes of New Jersey and Suburban Philadelphia.

The major advantages of living in Center City is that you will be within walking distance to any place that you may want to be. Whether it be transportation (SEPTA), shopping (Liberty Place), restaurants, and entertainment such as the Philadelphia Art Museum, Pennsylvania Convention Center, and the Franklin Institute. Major parks in Center City include Fairmount Park, LOVE Park, and Logan Square.

Types of Homes 

Depending on where you are in the City, you will mostly see townhouse and row style homes. If you are in Center City, most of the homes are high rise condos. As you move away from Center City, you will see the townhouse and row style homes.

Townhouse v. Condo

A condominium (condo) is a housing structure that is a part of a bigger unit or building and the owner of the condo owns the interiors independently and the other services in the building jointly with other condo owners. Condos also have amenities such as doormen, 24 hour gym, computer lounge, security, maintenance,  etc.

A townhouse is a style of housing where a row of identical houses share walls. Here the owner owns the whole unit as such. They both may come under a structure of housing tenure or other legal agreements.

Renting in Center City starts from as low as $500 per month to $10,000 per month. Click on the link to see the most up-to-date rental properties.

Series Announcement: The Home Buying Process

Series Announcement: The Home Buying Process

Now that Spring is here, the real estate market should be seeing a boost in sales. Especially after record-breaking temperatures and snowfall. So to start off the spring season, I figured I’ll do a series dedicated solely to the home buying process. The next few posts would go over everything that is needed for one who is interested in buying a home. Whether it is your first time, or a seasoned and active buyer, everyone can benefit and become a more educated and informed buyer.

Remember: Knowledge is Power. The more informed you are, the easier it would be to make a decision that you are comfortable with. I am a firm believer that a home is supposed to be a blessing, not a curse; and a home is one of the most expensive investments that you can make in your life. So I cannot stress the importance of being an informed buyer.

Topics Covered?

Benefits of Homeownership, Choosing a Realtor, Steps in the Home Buying Process, Financing, Placing an Offer, What to expect during Settlement, etc.

Selling Series?

Of course there would be a selling series immediately following the completion of the buyer’s series. (Keep checking the blog)

REALTOR VS. FSBO: YOU DECIDE!

Is selling your home through a Realtor really better than selling it by yourself. This infographic takes a look at the National Association of Realtors data and analyzes the problems of selling as an owner, how long it takes to sell a property, how much money you can save, and the popularity of FSBO over the past decade.

Based on this the value of a Realtor’s professional expertise is invaluable in your selling experience. To find out more information on selling your property, click on the link.

FORECLOSED PROPERTIES IN SPRINGFIELD

Foreclosed Properties in Springfield

Interested in buying a foreclosure? You’re not alone. Between January 2006 and May 2012, more than 6.5 million U.S. homes were lost to foreclosure, offering additional inventory alongside traditional real estate properties. Due to the distressed nature of the properties, they offer great appeal to a variety of buyers who are:

• Looking for a bargain.
• Looking to create rental properties for revenue.
• Hoping to “flip” houses by fixing them up and selling them for profit.

What is Foreclosure?

But, while a foreclosure may benefit one side of the transaction – buyers – it is heartbreak for the borrower/homeowner. Foreclosure is a process in which a bank, a mortgage company or other lien holder seeks to take a property from a owner to satisfy a debt. The bank or lender may actually take ownership of the property or have the property sold to pay off the debt. As a result of the foreclosure, the owner loses whatever rights he or she had in the property.

Stages of Foreclosure

Before you begin the hunt for foreclosed properties, take a look at the different stages of the foreclosure process where buyers can find potential bargains on properties:

Stage 1: Pre-foreclosure

In this stage, the property owner has been given legal notice that the foreclosure process is about to begin. He has missed mortgage payments and has been issued a Notice of Default (in non-judicial foreclosure) or lis pendens (in judicial foreclosure). The owner may be working to cure the default or may be hoping for a pre-qualified cash buyer to help him avoid the impending foreclosure.

Be aware that buying a property in the pre-foreclosure stage means approaching the borrower/ property owner – generally before the property is listed for sale –  and offering to buy the property outright. The benefit to the borrower/property owner is that he can walk away with something to show for any equity he has in the property and may be able to avoid damaging his credit history. 

Stage 2: Foreclosure auction

If the loan is not reinstated – meaning the property owner did not pay back the loan to avoid foreclosure – the property will likely be sold at a foreclosure auction. Successful bidders often are required to pay in cash and may not have much time to research the title and condition of the property beforehand. Most auctions require cash payment at the time of purchase. 

Stage 3: Bank-owned property or real estate owned (REO)

If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will eventually re-sell the property to recover the unpaid loan amount. The property is then known as “bank-owned property” or “real estate owned (REO).” The lender usually clears the title and performs necessary repairs, but the process can test the patience of a lot of buyers. So, if you’re in a hurry to buy, this type of real estate transaction might not be for you.

Rules governing the processes and timelines for foreclosure vary from state to state.  Unless you’re an expert in real estate law and transactions, it’s a good idea to seek the counsel of an attorney and/or real estate agent familiar with foreclosures. 

Foreclosed Properties in Springfield

If your looking to move to Springfield, Pa but want to buy a foreclosed property, click on the link to see what foreclosed properties are available.

You can find foreclosed properties anywhere, you have to have someone that is educated and is able to help you through the process. If you are interested in purchasing a foreclosed property, click on the link to do a search on foreclosed properties.

If you would like to avoid foreclosure, contact me today to review your options. Don’t sacrifice your credit and good name by going through a foreclosure, prevent the process by contacting a knowledgeable real estate professional.

SHORT SALES: SELLER’S EXPECTATIONS

Short Sales: Seller’s Expectations

You might be faced in a difficult position where you can no longer afford your home and the threat of foreclosure is at your doorstep. You might think that there is no way out but there is, you can sell your home by Short Sale.

What is a Short Sale? 

According the National Association of REALTORS (NAR): A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

What are the benefits?

When selling a home short, allows the homeowner to sell their home as opposed to the bank foreclosing on the property. It’s cheaper for the bank to allow the home to be sold short than it is to sell via foreclosure. However, as the homeowner, you would not be able to receive a profit from the sale.

Although they would not get a profit from the sale, it would not affect their credit as much as a foreclosure would. So if you can sell your home through short sale, its best to try that option.

For both buyers and sellers, the short sale process can be a long, taxing ordeal. However, in the end, it is typically well worth the frustration for both parties. The seller is relieved of significant debt and the buyer gets a real bargain on a new home.

What can a seller expect from a short sale?

Sellers should plan to be involved in the short sale process. Usually, avoiding foreclosure is the seller’s goal, so that they can take out another home loan in the near future. As stated before, a short sale can leave a negative mark on a seller’s credit, but it usually lasts only a couple of years. In some short sale cases, banks will actually report the debt as “paid in full,” so a seller’s credit takes even less of a hit. In contrast, a foreclosure can negatively affect a person’s credit for up to 10 years.

During the short sale process, the property is negotiated with the bank. The reason why the short sale process is long is because the parties are negotiating with the bank as opposed to buyer-seller negotiations. When selling your property short, the agent might use a company such as Significa, to help during the short sale process. To see the Buyer’s expectations of the short sale process, click on the link.

There Are Requirements

Despite the fact that it seems like a win-win for buyers and sellers, if sellers think a short sale sounds like a great way to get out of a debt that they don’t really want to pay, they should think again. Banking institutions require proof that sellers NEED to go through the short sale process. That proof can include being upside down on a mortgage, demonstrating financial hardship and an inability to afford a current payment. Banks may even require a comparative market analysis that shows a person’s home doesn’t have a shot of selling for the amount that they owe. To determine whether you qualify for a short sale, it is best to talk to a REALTOR.

Precautions

If a seller is going through the short sale process but has other outstanding debts, they should be careful about declaring bankruptcy. A bankruptcy filing may diminish their ability to complete the sale if creditors are blocked from collecting mortgage payments along with other debts.

After the Short Sale Closes

Just because a short sale goes through may not mean that a seller’s financial troubles are over. In fact, after the sale, it is possible that a bank can still come after the seller for the difference in the loan balance. Often times, sellers can add a clause to their short sale agreement that prevents banks from doing so, but it may be wise to seek the help of an experienced real estate agent or lawyer to go over the fine print.

SHORT SALES: BUYER’S EXPECTATIONS

Short Sales: Buyer’s Expectations

Investing in buying a short sale property can be a great bargain. You would be able to get a home at market value; lower than its competition. Here are some expectations for the buyer side of the transaction. To see the seller’s side, click on the link to see it’s counterpart.

What is a Short Sale? 

According the National Association of REALTORS (NAR): A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

When selling a home short, allows the owner to sell their home as opposed to the bank foreclosing on the property. It’s cheaper for the bank to allow the home to be sold short than it is to sell via foreclosure. The owner would not be able to receive a profit from the sale.

How Long is the Process?

The first thing to know when looking to buy a short sale is that it is not a quick process by any means; they take a long time to complete. The average transaction time is 4-6 months. The reason for this is that the offer has to go through to the bank, as opposed to the seller. Be prepared for the unexpected as well as defeat. It may sound harsh, but the fact is far fewer short sale transactions go to closing simply due to the short sale process. At times, it is much easier for a buyer to walk away from a short sale than to forge through the frustration. In the end, a buyer can receive a great deal, but should be aware ahead of time what is involved.

Condition of Home

The condition of the home may vary, it could be move-in ready or a fixer upper. Although a buyer may not be looking for a fixer-upper, a short sale property can end up being just that. Many homeowners who decide to enter into a short sale agreement are doing it because of financial reasons; so, maintaining a property they can no longer afford is, likely, not a top priority. As with any home sale, buyers should be sure to thoroughly investigate the property and have a home inspector do the same. If there are many areas in need of repair, it is important to factor those costs into the budget because short sale homes are usually sold “as is.”

Because homeowners who decide on a short sale are often struggling to meet their debts, they may have more than one mortgage out on the home, and maybe even additional liens. So, buyers should absolutely research all open loans and liens, or they could encounter major problems down the road. Title officers can help identify any loans and liens attached to short sale properties.

Other Hurdles

Unfortunately, banks are not the only hurdles involved in a short sale transaction. In fact, if a short sale property is being covered by mortgage insurance, then that can also put a damper on closing. Since a short sale does not cover the total amount owed on a loan, mortgage insurers can hold up the sale, simply by keeping quiet.

Tips on a Successful Short Sale Purchase

A short sale is a great way to get a lot of bang for a buyer’s buck; but it is important to remain realistic about the price. Banks are very likely to refuse lowball offers. Even if a seller agrees on a price, banks still want to see most of the money they are owed. One way buyers can protect themselves against bank refusal is by obtaining an agreement with the seller that their offer will be the only one presented to a lender at that time. With only one offer on the table, a lender may be more likely to move forward.

Finally, if a buyer’s offer on a short sale is accepted, the buyer should do everything to bring the transaction to closing and then enjoy their new home!

Interested in purchasing a Short Sale Property? Click on the link to see what short sale properties are currently available.

PAINT TO SELL: PAINTING TIPS TO ENSURE A QUICK HOME SALE

Paint to Sell: Painting Tips to Ensure a Quick Home Sale

No matter how much you rearrange or decorate a room, nothing affects appearance like a fresh coat of paint. When you enter a house, your eye may be drawn to little decorative touches, but all the staging in the world will fall flat if your paint is drab, dirty, or goes against the potential buyer’s taste. Considering that a gallon of paint is only about $25, it’s also an inexpensive way to give your home a makeover.

Choosing Colors to Appeal to Homebuyers

Using colors that make the buyer feel “at home” will help you sell your home more quickly. You want them to look at each room and be able to literally see themselves and their belongings fitting inside your walls. Inspire a feeling of peace and relaxation, and part of the sale is already done!

Neutrals and soft colors create a soothing, calm atmosphere. Homebuyers can more easily visualize the paint colors they want when other colors aren’t bombarding them at every glance.

Avoid bold, vibrant or dark colors. Even pure white can prove overwhelming. Stay away from trendy colors no matter how good they look to you.

Keep in mind color psychology. Not only do certain colors calm you, but the shade can also affect the room itself. Light colors make a space appear larger. Dark colors, on the other hand, make the room feel smaller. Of course, sometimes a darker color is good if you want a certain effect. A cozy den with a darker color and a bright, cheery kitchen with a lighter color may work best to highlight each room’s appeal.

Neutral Shades

Even with neutrals, you still have a variety of colors to choose from. Off-white is a popular, all-purpose color, but it’s not the only one. Beige, tan, eggshell and ecru are other colors that work well with almost any style. But your choices range even further: pale shades of blue, green, yellow and gray, for instance, can blend with the house and complement the room. Aim for colors that don’t overpower the room or furnishings. Keep the color variations to a minimum to lend a sense of continuity to the house. If every room is a different color, it can prove overwhelming. It’s much better to pick two or three colors to use throughout the house.

Painting Tips

Take the time to paint properly. Mask off areas that will be left unpainted. Throw down floor and furniture coverings to ensure you don’t create damage during the process. Most importantly, prep the wall properly.

You may wish to spread a primer first to block bold colors. If the walls don’t require color or stain blocking, sanding the walls slightly or washing with a solution of trisodium phosphate are other options. Both sanding and washing with TSP will remove dirt, oils and other contaminants that prevent the color from adhering well and looking good.

While you paint, take time and care to cut in the corners and avoid drips. Aim for the best paint job of your life – it will be worth it when the buyers sign on the dotted line!

If you can’t afford to repaint your entire house, concentrate on a few select areas. The first room the buyer enters is the place to start – remember, first impressions count! Consider painting cupboards, trim and doors along with key rooms. Let your instincts guide you. Look around at other homes for ideas. If your home has a “parade of homes” that local builders showcase, you can glean a lot of tips in a short amount of time.

With a minimum investment, a little time and elbow grease, it shouldn’t take long for you to have your home ready for its next owner.

Looking to Sell your home, click on the link to receive a free CMA today!

SPRING IS FINALLY HERE!!! TIPS FOR PREPARING YOUR HOME FOR SALE

Spring is Finally Here!!! Tips for Preparing Your Home for Sale

Hi everyone! I know it has been a while since I’ve posted on the blog but I wanted to come back to say Happy Spring!! After a very harsh and and brutal winter, we have experienced (or at least in the Northeast region of the nation) record-breaking temperatures and snowfall. It is so refreshing to spring forward into spring. So if you were unable to sell your home during the winter or you were holding off until spring came to put your home on the market, there is some relief to know that the real estate market will pick up during the warmer months; for buyers will be actively looking for their next home. 

So here are 10 Tips for Preparing your Home for Sale 

1. Clean up to shiny perfection and make sure your home smells clean! (You can put a little bit of Lysol in water in the kitchen sink before each showing to give the home a fresh clean smell. Just make sure you drain the sink before the buyers arrive!)
2. No clutter on the floors, even the floors of the closets. Clutter will make a room appear to be smaller than it actually is.
3. Straighten bookcases and dust between the books. Straighten closets and hang each item neatly.
4. Organize your pantry, line or clean the shelves, and straighten the laundry room.
5. Make sure you have a good choice of paint colors throughout your home. (Do not paint your home white on all walls). It will give you home an ?institutional look:. A blend of whites, beige’s, tans, grays, is what the eyes of buyers prefer.
6. Do not remove your framed photos. Leave them on the bookcases and tables as it gives a cozy family feeling. Think how you feel when you look a smiling faces in a frame. The exception would be if you had a hallway with photos lined up and down the walls. If you do, remove all of them, and putty and paint the nail holes and the walls.
7. Toys. Leave some of your children’s favorites out along with their books. Make the beds everyday.
8. Bathrooms, this is huge! They have to be spotless. No toys in bathtubs, or towels on the floor. Clean and smelling fresh. Toilets ? no rings
9. Yard. For some reason, homes having yellow or red flowers in pots or near the front porch seem to sell faster. Make sure yard is always manicured as this is the first thing a prospective buyer will see. The outside appearance is the gate of approval or disapproval.
10. Create a good patio space for entertaining. Make sure to clean patio furniture and have fresh flowers in each pot.

As a helpful hint: I used to buy clothes hampers (plastic) to give young families for each room. Anytime they were leaving for the day (work/school ) or at home relaxing, and that exciting phone call came asking for a showing appointment, the items on the floor go into the hampers, and the hampers and the family go to the car. Simple fix.
Take the clutter with you and leave none of it behind!
No one with children can live very long on edge in a perfect house waiting on a showing. They would kill each other. Be smart and be prepared ahead of time!

Credit: Realtor.com

If you are ready to put your home on the market, contact me today at 267-918-6322 or email me at victoria@themackgroup.org and I will provide you with a free Comparative Market Analysis! Or to get the latest real estate market news in your area, subscribe to a free Market Insider Report.

For any potential buyer’s, looking to find a new place to call home, click on the link to see what is available for sale!