There's no foolproof way to make an offer that's guaranteed to be accepted by the seller. But once you find your perfect house, it's wise to move fast. A good rule of thumb is to make an offer that's eight to 10 percent below the asking price, though that might not work in some areas based on trends in the market. This gives you some room to negotiate, but don't top what you've predetermined to be the highest price you can afford.
The deposit
Also known as earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. It is usually 1 percent of the home's purchase price and is included in an offer to purchase. Either the real estate agent or the seller's lawyer holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Contingencies
These are certain requirements specified in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. But in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Home inspection
In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is that a trained home inspector will be able to catch potential problems that a buyer might not detect.
The contract
This follows the acceptance of an offer by the seller, and it is a legal and binding obligation, on the part of the buyer, to purchase the property if any contingencies are met. It outlines the details of the transaction, including: a description of the property, the selling price, the date of closing, the possession date and any applicable contingencies.
Settlement sheet
Also called a "closing statement" or a "settlement statement," this is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides an enumerated list of the funds that were paid at closing. Items on the statement include real estate commissions and initial escrow amounts (money or securities deposited with a neutral third party - the escrow agent - to be delivered upon fulfillment of certain conditions). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Closing documentation
Before you can close on a house, some paperwork must be completed. This includes a title search to make sure the title is clear, title insurance to protect the buyer and the lender from an oversight regarding a claim on some aspect of the property and an application for homeowner's insurance (necessary for securing a mortgage).
Closing costs
The total amount of closing costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Your lender is required to give you prior notice of fees associated with your loan.
There's no foolproof way to make an offer that's guaranteed to be accepted by the seller. But once you find your perfect house, it's wise to move fast. A good rule of thumb is to make an offer that's eight to 10 percent below the asking price, though that might not work in some areas based on trends in the market. This gives you some room to negotiate, but don't top what you've predetermined to be the highest price you can afford.
The deposit
Also known as earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. It is usually 1 percent of the home's purchase price and is included in an offer to purchase. Either the real estate agent or the seller's lawyer holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Contingencies
These are certain requirements specified in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. But in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Home inspection
In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is that a trained home inspector will be able to catch potential problems that a buyer might not detect.
The contract
This follows the acceptance of an offer by the seller, and it is a legal and binding obligation, on the part of the buyer, to purchase the property if any contingencies are met. It outlines the details of the transaction, including: a description of the property, the selling price, the date of closing, the possession date and any applicable contingencies.
Settlement sheet
Also called a "closing statement" or a "settlement statement," this is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides an enumerated list of the funds that were paid at closing. Items on the statement include real estate commissions and initial escrow amounts (money or securities deposited with a neutral third party - the escrow agent - to be delivered upon fulfillment of certain conditions). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Closing documentation
Before you can close on a house, some paperwork must be completed. This includes a title search to make sure the title is clear, title insurance to protect the buyer and the lender from an oversight regarding a claim on some aspect of the property and an application for homeowner's insurance (necessary for securing a mortgage).
Closing costs
The total amount of closing costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Your lender is required to give you prior notice of fees associated with your loan.
Final arrangements
Before the deal is closed and you take possession, you must make some practical arrangements regarding utility service and first mortgage payment.
Settlement
Settlement describes the payment of the balance of the purchase price the buyer owes on the property, and the transfer of the title. It takes place on the possession date specified in the agreement.
Saturday, January 9, 2010
Friday, January 8, 2010
Understanding Points, Rates, and Fees
Not only do you have to understand what type of mortgage you should choose, you have to understand the costs associated with your mortgage. All of these costs will be paid upon closing your mortgage.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.
Interest Rate
When you get a mortgage, you are charged an interest rate.this is the rate which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly.daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender.locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.
Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest rate, which means you may pay more in the long run. But everyone has different needs.you may or may not be able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots of questions so that you understand all the costs involved with your mortgage.
*Please consult your tax advisor.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.
Interest Rate
When you get a mortgage, you are charged an interest rate.this is the rate which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly.daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender.locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.
Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest rate, which means you may pay more in the long run. But everyone has different needs.you may or may not be able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots of questions so that you understand all the costs involved with your mortgage.
*Please consult your tax advisor.
Monday, December 28, 2009
5 Home Remodeling Trends for the New Year
Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul.
Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:
Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.
Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:
Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.
Tuesday, December 22, 2009
Keller Williams Realty Ranked as Top Real Estate Franchise by Industry Leader and Entrepreneur Magazine
AUSTIN, TEXAS (December 21, 2009) — Keller Williams Realty joined the ranks of the top franchises in the world last week, when the company was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine. During the same week, the company was also voted the Most Recognizable Brand of Real Estate Franchises for 2009 in an industry-wide survey for the Swanepoel TRENDS Report.
“The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.”
According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise.
The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10.
Earlier in the year,Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row.
“We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.”
###
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).
“The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.”
According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise.
The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10.
Earlier in the year,Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row.
“We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.”
###
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).
Wednesday, December 2, 2009
Holiday Extravaganza to Light Up the Season for Residents
Usher in the holiday season with the city’s Holiday Extravaganza on Dec. 5. A fun-filled schedule includes the following:
Chili Cook-Off – 8 a.m.
Hosted by the Irving Police and Fire departments, the cook-off will take place at Heritage Park, 217 Main St. First-, second- and third-place trophies will be awarded. The entry fee to participate in the contest is $20 and an unwrapped toy. Attendees may purchase a tasting cup for $5. Proceeds will benefit the Blue Christmas toy drive. For more information, call (972) 523-8849.
Holiday Parade – 4 p.m.
The annual holiday parade will start at O’Connor and Rock Island roads, and travel southbound on O’Connor Road, eastbound on Second Street, northbound on Lucille Street, westbound on Irving Boulevard and northbound at O’Connor Road. The community is invited to line the streets of the Irving Heritage District and witness this festive collection of floats and holiday music.
Tree Lighting Ceremony – 5:30 p.m.
The tree lighting ceremony will begin at City Hall, 825 W. Irving Blvd. The ceremony will feature a variety of performing artists including Dana’s Dance School, Forscher’s Dance School, Irving High Toy Tigers drill team and the Irving Bible Church choir. Following a fireworks show, the Irving Symphonic Band will present a holiday concert. Other activities include Santa visits and children’s activities and concessions.
Chili Cook-Off – 8 a.m.
Hosted by the Irving Police and Fire departments, the cook-off will take place at Heritage Park, 217 Main St. First-, second- and third-place trophies will be awarded. The entry fee to participate in the contest is $20 and an unwrapped toy. Attendees may purchase a tasting cup for $5. Proceeds will benefit the Blue Christmas toy drive. For more information, call (972) 523-8849.
Holiday Parade – 4 p.m.
The annual holiday parade will start at O’Connor and Rock Island roads, and travel southbound on O’Connor Road, eastbound on Second Street, northbound on Lucille Street, westbound on Irving Boulevard and northbound at O’Connor Road. The community is invited to line the streets of the Irving Heritage District and witness this festive collection of floats and holiday music.
Tree Lighting Ceremony – 5:30 p.m.
The tree lighting ceremony will begin at City Hall, 825 W. Irving Blvd. The ceremony will feature a variety of performing artists including Dana’s Dance School, Forscher’s Dance School, Irving High Toy Tigers drill team and the Irving Bible Church choir. Following a fireworks show, the Irving Symphonic Band will present a holiday concert. Other activities include Santa visits and children’s activities and concessions.
Unclutter your house and get your home sold QUICK!
When selling your home, the most important thing is to have your house decluttered and in order. Unclutterer.com is a great way to get sellers motivated to prepare their home for showings. This Web site is all about organization, plain and simple. Organizing your life; organizing your home; organizing your office. Let's get your house sold!
Tuesday, December 1, 2009
The 7 tips you can use to make public speaking easier
Tip 1- Normalize your fear. In other words, be aware that just about everyone shares this fear. It is normal in our society.
Tip 2 – Create what you want. Remember that your thoughts create your reality. If you tell yourself, “I am a terrible public speaker,” then you’ll become that which you think. If you tell yourself, “This is a great speech and people will get a lot out of it,” then the confidence you project will shine.
Tip 3 – Visualize. Remember to visualize how you want to see yourself when you are speaking in front of a crowd. How would you ideally like to feel when speaking in front of people? Would you like to be calm and relaxed? Start visualizing yourself as a calm and relaxed speaker, and step inside of the picture and feel the feelings as if they are happening right now.
Tip 4 – Remain Positive. Give yourself a positive verbal suggestion, such as “I am a calm, confident, dynamic public speaker.”
Tip 5 – Question the fear. Ask yourself why you are afraid. Did a negative episode happen in your life where you where ridiculed or judged? If so, a part of you decided, “I’ll never do that again.” It became your survival strategy. Healing that wound will require that you ask the scared part what it would need to feel safe. A client of mine recently did just that to her scared part. It became clear that her scared part would only be willing to speak up if it was being heard by a friendly, supportive audience, where mistakes were allowed.
Tip 6 – Rehearse. Find a person who will listen with support and encouragement, like a coach or a mentor. Then role play with that person until you feel comfortable speaking.
Tip 7 – Speak from your heart. Realize that your speaking is a gift. It is benefitting the listener. Become passionate about what you say. Focus on your audience, not yourself. This is about them and what you have to give to them.
Tip 2 – Create what you want. Remember that your thoughts create your reality. If you tell yourself, “I am a terrible public speaker,” then you’ll become that which you think. If you tell yourself, “This is a great speech and people will get a lot out of it,” then the confidence you project will shine.
Tip 3 – Visualize. Remember to visualize how you want to see yourself when you are speaking in front of a crowd. How would you ideally like to feel when speaking in front of people? Would you like to be calm and relaxed? Start visualizing yourself as a calm and relaxed speaker, and step inside of the picture and feel the feelings as if they are happening right now.
Tip 4 – Remain Positive. Give yourself a positive verbal suggestion, such as “I am a calm, confident, dynamic public speaker.”
Tip 5 – Question the fear. Ask yourself why you are afraid. Did a negative episode happen in your life where you where ridiculed or judged? If so, a part of you decided, “I’ll never do that again.” It became your survival strategy. Healing that wound will require that you ask the scared part what it would need to feel safe. A client of mine recently did just that to her scared part. It became clear that her scared part would only be willing to speak up if it was being heard by a friendly, supportive audience, where mistakes were allowed.
Tip 6 – Rehearse. Find a person who will listen with support and encouragement, like a coach or a mentor. Then role play with that person until you feel comfortable speaking.
Tip 7 – Speak from your heart. Realize that your speaking is a gift. It is benefitting the listener. Become passionate about what you say. Focus on your audience, not yourself. This is about them and what you have to give to them.
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