More Questions to Consider Before Buying

May 25, 2010

Looking into buying a home doesn’t mean just checking the price of the prospective house, the neighboring homes’ values, or the location. Inexperienced buyers may not realize that there is so much more to consider when purchasing a home. It’s the little things that can make or break your final decision.

Do I Need a Lawyer?

Not necessarily. Occasionally, however, there are certain states in the US that require a lawyer be involved in at least one part of the purchasing of your home. Hiring a lawyer could help you a great deal with the legal contracts. Real estate agents, though, will be able to assist you with paperwork and other tedious responsibilities of the buyer.

Who’s the Builder?

If you’re considering a more recently built home, it’s a good idea to check out the builder’s reputation. Perhaps get a list of homeowners currently living or who have lived in houses built by that contractor. Is he well-known and loved among his customers? What are some of the pros and cons they have to give? Do the pros outweigh the cons? Your inspector will be able to tell you what needs improvement. If it’s a fairly new home, there should be very few repairs necessary.

What’s the Traffic Like?

If you’re looking in the city, obviously there’s going to be a heavy load of traffic traveling in all directions. However, maybe you don’t want all that much. If you’re out in the country, how close are you to the nearest highway? Maybe you’ve found the perfect house–white picket fence, Victorian structure, large front and back yards–but it’s right off the main highway. Late at night you might find yourself lying wide awake listening to the anti-lock breaks of tractor trailers rolling up and down your street. Locating airports and nearby train stations will also help you get a better idea of the traffic volume you’d experience on a daily basis.

Why Does Sewage Disposal Matter?

Many buyers forget to ask how the sewage is disposed of. Why is this important? Not all homes have a city sewage system; some have septic tanks. When considering a home with a septic tank, it is important to know the age of the tank and its condition. The best way for a buyer to determine whether his potential home’s septic tank is sturdy enough is to test how the toilets work and how long it takes for the sinks in the home to drain. Asking about the age of the tank is also a good idea.

How Efficient is the Energy Use?

When buying your home, make sure you take this into consideration, as well. How highly rated are the home’s heating and cooling systems for efficiency? Knowing the lighting in each room without the use of lamps would be helpful, too. To fix these problems, you could also get an estimate of the costs to improve the home’s energy efficiency and then determine whether you’d be willing to invest that amount in the house after making your purchase.

These are just a few of the lesser known aspects to keep in mind when purchasing a home. Always be sure to take hiring a real estate agent into consideration, as well, in order to help you invest your money in the house that suits you best.

Need Help Avoiding Foreclosure?

May 21, 2010

Millions of people go through the troubles of foreclosure each year, and in today’s market, that number seems to only increase. What should you do to avoid being the victim of such a predicament? When you come to the realization that you will not be able to or can’t make your mortgage payments on time, you should contact your lender as soon as possible. Ignoring this obstacle will only increase your risk of foreclosure. Not sure how to get a hold of your lender? Just take out an old mortgage statement and his/her contact information should then be easily accessed. Your lender will be able to provide you with some options that will help you avoid losing your home. Getting help early can aid in lessening the amount of damage placed on your line of credit.

Mortgage Forbearance

Forbearance is just one of the options your lender may offer you in order to put off your probability of foreclosure. With this option, the lender will place a hold on your monthly mortgage payments. The hold can usually last for about a year while you pull yourself back on your feet. If stopping payments isn’t an option, it might be possible to work with your lender to reduce your payments. Forbearance can also be combined with a repayment plan or reinstatement, both of which will be discussed in detail below.

Modifying Your Loan

Modifying your loan creates a permanent change within the terms of your original loan. When you collaborate with your mortgage company to modify your loan, you’re making a commitment to continue making payments but this time the amount you pay per month would be less, making it more affordable. It is also possible to change more than one term on a loan.

What is a Repayment Plan?

Often combined with a forbearance offer, this type of plan allows you to pay your required monthly rate plus a certain percentage higher at a specified term after the forbearance. This helps you pay back what was not paid during the forbearance period within an agreed-upon time frame. Once that term is up, you will have paid back those payments you missed and will then be back to paying a set rate.

What is a Reinstatement Plan?

This type of plan is also often used in a forbearance offer, as well. With reinstatement, the lender allows you to pay back what you owe all at once by a set date. If you take advantage of this plan, you’ll seem more credible by showing them that you’ll be receiving some sort of lump sum in the near future, perhaps in stocks or bonuses. This allows the mortgage company to see that you mean business, that you won’t just tell them you’ll pay them back and then go against your word. Showing them proof reassures that they can trust that you’ll be able to return the necessary payments all at one time.

Refinance Your Mortgage

Refinancing your home is probably the most well-known possible option when you feel as though you might soon face foreclosure. By refinancing your home to pay a lower mortgage rate, you may have the money to pay off other debts.

Always be sure to look at all your options before choosing a plan that may not be to your best interest. Look out for those sites that suggest fees for learning how to reduce your risk or get out of foreclosure altogether, because the information you need is completely free and easily accessed by using the Internet. You have the world at your fingertips; take advantage of it!

What Leads to Foreclosure?

May 18, 2010

In order to know how to prevent it, it is important to first know what causes foreclosure. Financial instability is the main reason, which is a result of a number of events.

Losing Your Job

Experiencing the loss of a job, whether you’re “let go” or fired or you just decide to quit for whatever reason, can place a heavy financial burden on your shoulders. If you’re the breadwinner in the household, this would cause problems in that your income would be significantly lower. Not only will you have issues making credit card, insurance, or automobile payments on time, but you may also face the hardship of submitting your mortgage payments on time if you’re able to submit them at all. Fortunately, under certain circumstances, you could file for unemployment; but that still may not provide you with enough money to support yourself or your family.

Medical Surprises

Another financial roadblock can occur if you experience an unexpected medical issue. Perhaps you’re a self-employed roofer who fell off a two-story building while at work. You have no workman’s compensation, and your back is injured to the point where you’re unable to climb a ladder, let alone bend down all day to replace shingles. In this case, again you would lose a significant amount of income which can lead to missed payments on necessities.

Foreclosure as a Result of a Family Devastation

If you are one of two working members in your household, losing the other can lead to financial problems, as well. For example, you and your spouse or significant other experience a falling-out that ultimately leads to a divorce or separation. This causes a decrease in the household income. How much you relied on that person’s income to support yourself and/or your family influences your ability to pay bills. If you can’t pay bills, again, you risk the possibility of experiencing foreclosure on your home.

The death of your significant other can cause severe problems not only emotionally but financially as well, if he or she contributed greatly to the household income and had invested in no life insurance policy.

Declining Credit Increases Risk of Foreclosure

Those credit cards are dangerous little buggers. The more you have and the higher your credit limit per card can greatly influence your spending ability. Some people say, “If I don’t have the money to spend, I don’t use my card.” Many people, on the other hand, dig themselves deeper and deeper in debt every day. Those little plastic cards can damage your credit more than help it in many cases. It is important to watch your spending, because the further in debt you sink, the less likely you are to be able to pay your bills when they come in. You dread trekking down your driveway to the mailbox for fear of what envelopes rest inside each day.

Unprepared for Unexpected Home Maintenance

You should also keep money aside in order to save yourself if anything were to happen to your home, especially if your home owner’s insurance coverage is not up to par. Perhaps a destructive thunderstorm blows through your community one night and you wake up the next morning to a tree on top of your garage. If you don’t have enough money aside to hire a professional to perform the correct repairs, you risk the possibility of having to take out a home equity loan in order to pay for repairs. If this is the case, you’ll need an exceptional credit score. Also, be careful then when hiring someone to fix your garage. You don’t want to hire a quick and cheap company that doesn’t get the job right the first time because then you wind up investing more money to get it fixed by a professional the second time around.

These reasons are just a few scenarios you should be prepared for in order to avoid foreclosure on your home. Soon to come: a post on steps to take in order to avoid this danger.

GetMyHomesValue.com Supports March of Dimes

May 13, 2010

The other day, GetMyHomesValue.com (GMHV) employees gathered around outside during a lunch break that proved to be an exciting event for all involved, even spectators. It was time to get revenge on the bosses. It was time to pie some people in the face.

Fund-Raising for March of Dimes

The event was a fundraiser for March of Dimes, a well-known nonprofit organization that raises money to support the health of unborn babies. Their research and efforts have helped and continue to help reduce premature births, birth defects, and infant mortality. Throwing pies at the owners and employees was just one of the many opportunities offered during a silent auction in mid-April. Other options included offers such as a catered lunch for 6, a one hour massage, a weekend trip to a beach house in Wildwood, flight director of a rocket launch, guitar lessons and more. This and other fundraisers helped GMHV raise over $1600 to benefit the March of Dimes’ March for Babies campaign.

The Results

We all watched at noon as 6 vanilla cream pies were splattered in the managers’ faces, one by one. Donned in trash bags, Dave Conklin, Rory Wilfong, and Steve Young, the founders of GMHV, left the event with vanilla cream and purple dye dripping from their faces. They weren’t the only three though. Sales Manager Jim Bradford and Customer Success Specialist Mike King got pied as well. COO, John Fraunfelter placed the highest bid on his own pie hoping to avoid being smacked with it, so employees urged COO John Fraunfelter to eat his pie with no hands. Take a look to see what happened next!

Pies in the Face for March of Dimes from Dave Conklin on Vimeo.

B-A-B-I-E-S. There were 6 pies and only 5 victims, so the sixth pie was auctioned off on site to hit whomever the winner wanted. After a heated debate, Heather Heffner won the final pie and was thrilled to pie Mike King, smack in the face!

Events like these allow the employees to have fun in the workplace! That, along with the added benefit of a great cause makes for a fun-filled (and messy) day at GMHV!


Celebrity Homes Market is Falling

May 11, 2010

The housing market today isn’t horrible just for your average homeowner. Celebrities are experiencing the hardships of selling their multimillion dollar homes, as well. It’s important to take inflation into account, but sometimes people completely disregard this idea and charge whatever they please. Other times, people just want to get rid of their homes. Celebrities are no exception to these situations.

Nick’s Got High Expectations

Nicholas Cage decided to purchase a gorgeous home built in 1940 with 9 bedrooms as well as bathrooms on the market for about $7 million in 1998. In 2006, Cage decided he would put it on the housing market for approximately $35 million. From 1998 to 2006, the average house on the market increased from $138,925 to a whopping $303,517–that’s a 218% increase! However, Cage must not have paid much attention to this shift, as he increased his $7 million home by 500%.

Three years later, he made a wise decision to remove his house from the market but then put it back up a few months later at almost $20 million. From 1998 to 2009, the market experienced an increase of 193%, but this didn’t matter to Cage. He listed his home at around a 286% increase. Mr. Cage just won’t give up!

When putting their homes on the market at such high increases, it is a sign that these people are either not really interested in parting with their homes or perhaps their hopes are just too high.

Slash’s Price Gets Slashed

In January of 2006, former Guns N’ Roses crazy guitarist Slash purchased a home in Hollywood Hills for $6.2 million. Though included on the property was a swimming pool and private gym, the guitarist claimed that the house with such outstanding views was not nearly as attractive as the real estate agent had portrayed it to be. A dissatisfied Slash sold this home for $5.7 million in December of the following year and pursued suing his private agent to justify the deception he faced when dealing with this particular agent.

Houses listed at over $20 million dollars are sitting and have been sitting on the market for a number of years now, because not many people are looking for something that large or expensive. Celebrities are even holding off from purchasing such highly priced homes, even if they have a 35-seat movie theater or private gym.

The Worth of a Spectacular View

May 3, 2010

Are you in the market for a home on the beach or something in a small town? Do you want to know just how much the values of these houses differ depending on their location? Check out the differences of values based on their locations below to get an idea of just what you’re looking for.

Unobstructed View at Ground Level

Neighboring houses are at the same level as your home, but with this view, you are able to see land that is nonresidential or commercial. If you’re living in the country, the probability of your house’s view being of woods is very high. Though for some people this view may be calming, it isn’t the most desirable view. With what the majority of people perceive as a fairly attractive view in this sort of environment could increase the home’s value by close to 3%.

Partially Obstructed View on a Rooftop

Sometimes a view from above isn’t always the best option. If you’re in the city, other roofs may be higher than your location. This can be a turnoff for some people, but others may like this inner city atmosphere. If you have a passion for living in the city and you enjoy a view from the top, there is a chance that the value of your rooftop home may climb up to 5%.

Medium Elevation with an Unobstructed View

Medium elevated homes with this type of view can be found on small hills. Their inhabitants are able to view their surroundings to a certain extent from each side of the house. However, since they are not highly elevated, the inhabitants cannot usually see past the other houses within small communities. Within a small community, a view like this may lift up your home’s value by approximately 8%.

High Elevation with an Unobstructed View

The worth of these buildings often depends on where they are located. Buildings in major cities like Las Vegas are going to cost much more than buildings of high elevation in small towns. If the house you are looking at is highly elevated in a secluded location, the price is also going to be higher than in a small town. The house’s value can rise up around 12%.

Water View Unobstructed

Depending upon the house’s location in relation to the body of water it overlooks, its value may increase anywhere from 15 to an outstanding 80%, possibly even higher! Small, fairly unknown rivers won’t raise the value of a home nearly as much as an open view of an ocean, enhanced by a golden yellow sunset on the horizon. A house on the market for nearly $200,000 located somewhere like on a small hill could easily be worth $317,000. A place on the shores of a lake in this situation could be worth nearly $450,000.

Always make sure you do your research, with a strong focus on values in your desired location(s), before you purchase a home. Also, don’t rule out the power of a real estate agent. It would be a good idea to consult an agent for advice.

Buying a “Hot” Vacation Home

March 24, 2010

It’s that time of year again—time to forget about school or work for a well-known nation-wide week known as Spring Break! Many people reserve beach front houses or hotel rooms each year. But what if you had your own getaway home overlooking a gorgeous view of the sun rising and setting over the ocean?

If you had your own beach front property, it would save you the stress of registering for a house every year. By renting for a week each year, you don’t get the opportunity to make your vacation spot your own. Sure, it’s nice not worrying about the responsibility of furnishing a house when you’re renting, but being able to personalize your own space makes such a difference. Perhaps, when the weather is bad for a day or two and you’re stuck inside, you may feel more [comfortable/at home] surrounded by photos of friends and family and around other treasured, personal items. You can remodel the home to fit your preferences, as well.

Determining the Ideal Season to Buy

It’s springtime. The snow is gone, the sun seems brighter with each day it rises. Though the spring is known to be the busiest time to purchase real estate around the beach, especially in the Outer Banks of North Carolina, that doesn’t mean it’s the worst time. The earlier you buy a summer home, the better off you are. Purchasing a second home around this time of year allows time to close the deal by late spring. It is also much easier to take a look at many prospective vacation homes because no one usually leases them around this time. It’s simply not beach weather just yet.

Summer, on the other hand, is the worst time to consider purchasing beach front property. Owners and companies are leasing to strangers left and right, so going to visit the houses to see their conditions is almost impossible. Tourists are everywhere! If a house happens to be available to show, it’s typically not a convenient time for you as the potential buyer.

When the leaves begin to turn and a chill is in the air, you’re more likely to have an opportunity to browse the homes along the shores. Why? Well, no one wants to be on the beach in the cold! The water is too cold to draw in foreigners at this point, so not many people will occupy the types of homes you’re interested in. Purchasing a second home now, in the fall, gives you plenty of time to make any sorts of repairs you find necessary, and you’ll have any time between that winter and spring to move in your belongings.

Real estate sales are generally lower around wintertime. Some people say this is due to the lack of available attractions. Summer shops are closed along with some of the locally popular restaurants. Though sales are down, it’s much easier to shop for a house along the beach in the winter because not everyone is thinking about their summer vacations. Many of us are concerned with preparing for family get-togethers to celebrate the holidays.

It would be best, then, to take advantage of sales during the fall and winter seasons. Prices tend to be lower, and there are lest tourists roaming the towns. Less traffic means you’ll have a much easier time searching for what could be the vacation home of your dreams.

Why Should I Share Buyer’s Feedback?

January 24, 2010

It’s not uncommon among real estate agents to question the idea of a buyer’s agent sharing the buyers’ feedback to the listing agent after a showing. Some would argue that it’s not their responsibility or they can’t remember the specifics about the property in question, and for some, they feel they simply can’t take the time unless the buyer wants to put in an offer. But paying attention to and sharing a buyer’s feedback can actually help you in the long run.

It can be extremely frustrating for the listing agents because such information would be extremely helpful to get the home sold. But, if the buyers or the buyers’ agent isn’t leaving feedback it can leave sellers frustrated not knowing why their home isn’t selling. So…. what are the benefits of you taking the time to give feedback?

My Ideal Home Is Not…?

When you’re working with a client, you can offer better service by continually learning and adapting to what turns them on and off about a home. Why? Because you’ll have a better idea of that perfect home. Yes, you know the basics, location, number of bedrooms, bathrooms, square footage etc. etc. But it’s going to be the things they DIDN’T tell you that will keep them from putting in an offer. The more you know about what they like and dislike, the more apt you are for find the one home they fall in love with the moment the step inside.

The Golden Rule

And since you have the information handy – you should pass it onto the listing agent. Striking up a conversation with them means that you’re being a better agent for your buyer by building your network of influence. This helps you down the road because if you’re willing to help out another agent, chances are they’ll do the same for you. Sharing information about your buyer’s reaction will ultimately help a listing agent sell more quickly and when the time comes and the roles are reversed – you too could find the information handy. It’s about making yourself known and useful.

With the economy the way it is today, people are sometimes hesitant to give without the guarantee of getting something back, but this isn’t rocket science. It’s just taking a few minutes of your day to offer help to a fellow agent. You’re not handing them your business, just offering a hand.

Seattle Agent Marlow Harris On Niche Website Marketing

December 9, 2009

Every now and again we are introduced to an agent who is doing something outside of the norm with their internet marketing.  We believe that Marlow Harris is one of those agents.

Marlow works in the Seattle real estate market and the internet is responsible for more than 30% of the closings she has.  As a matter of fact, Marlow had a 1.7 million dollar sale that her website was responsible for.

“The buyer didn’t even see the house.  She was from over sees and found my website online.  About 30% of my sales come from strangers I’ve never met,” said Marlow in her seemingly permanent upbeat tone.

So what’s so unique about what she’s doing?  It’s the fact that Marlow has more than 5 websites that all focus on differnet niches.  NorthwestModernHomes.com is focused on providing information to people when they’re looking for modern homes in the Northwest.  If you’re looking at information on living in the Seattle area, Harris has established SeattleDreamLiving.com.  SeattleUrbanCondo.com focuses on Condos within the boudaries of the city itself.  The most “outside of the box” in our opinion is NorthwestGreenLiving.com, where she talks about eco-friendly building and homes, an extremely hot topic these days.

The most important site to Marlow?  SeattleDreamHomes.com for sure.  This is where she has focussed most of her link building efforts.  Building links to a website is one of the most important things that make it rank higher.  It certainly generates a considerable amount of traffic with it’s more than 1,045 (as of this post) highly searched terms ranking in the top 20 in google.  This is a feat that most agent don’t achieve.

So, what can agents learn from Marlow?  We think she says it best, “use the internet in ways that are attractive to a variety of people.  Create sites that different niche groups will find value in, and they’ll find value in you.”

Find a Home You’ll Love on a Budget You’ll Like

November 25, 2009

With low home prices and record low interest rates, many buyers are jumping into the market and whether your a first time buyer, or a seasoned market veteran, we all have a budget. The key is to not let anybody tell you that you can’t afford to be choosy when looking for a home to buy. You are unique. And no matter what advice you receive – it’s important you get as much on your checklist as possible. Obviously, we may not get everything – so use the list below to determine what’s most important to you.

TYPE OF HOME

Single Family:

• Pros: Good appreciation. Land for gardening, outdoor entertaining. More privacy.
• Cons: More expensive than the alternative. More maintenance.

Condos, Townhomes and Cooperatives:

• Pros: Less expensive. Generally newer so less repairs are needed. No exterior maintenance.
• Cons: Less privacy. Nosier due to common walls, floors and/or ceilings. Sometimes no private yard or outdoor space.

New Build:

• Pros: New homes won’t need repairs. You can customize many cosmetic features and even the entire layout of the home.
• Cons: Generally new homes lack attention to detail and finer craftsmanship. Can look like many other homes in the area.

Fixer:

• Pros: If you’re handy with tools, you can get a great deal and customize your home. You can keep the style and details of an older home, but add modern upgrades.
• Cons: Even the most experienced contractors come across money pit fixer uppers. You may think most problems are superficial, but once you dive in… the fixes start to unfold and cash runs really low… really fast.

LOCATION

Suburbs or Country

• Pros: Generally are less expensive per square foot and newer. More home for the money.
• Cons: More time spent driving into town or city. Further away from entertainment options that are located in the city.

Urban

• Pros: Close to multiple potential employers. Usually within walking distance to theaters, restaruants and schools. You may find more architechtuall differences and diffinetive styled homes.
• Cons: Nosier. Higher crime rates. Smaller homes.

Cul de sac:

• Pros: Quiet. Very little traffic. Highly desired by families with children.
• Cons: Less privacy. Nosey Neighbors.

Corner Lots:

• Pros: Few neighbors. Larger lots and more visibility.
• Cons: More traffic noise. Vulnerable to vehicles jumping the curb. My personal pet peeve: Kids trespassing through your yard as a “short cut!.” And you’ll have more sidewalk to shovel when it snows.

LEVELS

Single Story:

• Pros: Easy wheel chair access. Great for those with medical conditions. Easier to clean.
• Cons: Nosier if living space and bedrooms are on the same floor. Smaller yard due to the square footage of the house itself.

Two + Story:

• Pros: More living space on a smaller foundation. Less noise transfer. Appealing to families.
• Cons: More trips to carry things up and down stairs. More difficult to clean (think dual vacuums) and maintain consistent temperatures on each level.

Split-Levels:

• Pros: Can be less expensive than traditional two story home. Higher ceilings on main living area. Downstairs family room and bedrooms can breakup noise levels. More square footage than one story.
• Cons: Less storage space. Stairs are inevitable when carrying groceries or taking out trash. Kitchens tend to be smaller. Upper levels are always similar in layout.

INTERIORS

Number of bedrooms:

• Pros: Most common request is three bedrooms, which will result in higher resale value.
• Cons: Two bedrooms appeal primarily to first time home buyers, seniors or single people, however, don’t count them out if an extra den will work for your space requirements.

Number of Bathrooms:

• Pros: One bath homes are often less expensive than multi-bath homes.
• Cons: Most people prefer more than one bath. (Note: Don’t pass up on a one bath home if there is room to add a second. Sometimes, it’ll cost less to add a bathroom, than it would to buy a two bath house.)

GARAGE SPACE:

Attached:

• Pros: Cheaper to build. Convenient for bad weather like rain and snow.
• Cons: Noise level. Automatic openers can be noisy in addition to cars or work shops in the garage. Some people consider and attached garage to be an eyesore.

Detached:

• Pros: Can be tucked away, out of site. You can customize the size for your own personal use. Quieter.
• Cons: More expensive to build. Inconvenient in case of bad weather. Longer walk to carry items to and from the house.

These are just some of the considerations that home buyers face when shopping for a home. Other considerations have to be made like which special amenities are must haves, and which one you can do without. Also think about the utilities that are available to you like whether you can use cable, DSL or satellite and when it comes to plumbing… can you settle with a septic tank or cesspool instead of a sewer? The bottom line is that you can ask for advice as much as you want, but ultimately, this will be YOUR house and you need to wait until you find one that fits your needs, your budget, AND your wishes!

Happy Shopping!

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