Secaucus Real Estate Today - March/April 2016

7 GOLDEN RULES OF INSURING YOUR HOME AND PROPERTY

SECAUCUS MARCH/APRIL 2016

REAL ESTATE TODAY

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OVERVIEW OF YOUR

LEGAL RIGHTS

PRINCIPLES OF

AS A

HOME BUYER

BUYING

PROPERTY AT

PUBLIC

AUCTIONS

9

MISTAKES THAT HAMPER

YOUR SUCCESS AS A

LANDLORD

6 S TA R T E R H O M E S

THINGS I’VE LEARNED ABOUT

7

TIPS ON HOW

TO SURVIVE

TRADING DOWN

YOUR 9-PART CHECKLIST FOR SELLING YOUR HOME FAST

contents

04 06 09

Publisher’s and Editor’s Letter

13 16 20

6 Tips On How To Take Full Advantage Of Open Houses

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5 Tips On How To Spot Good Home Buying Advice If you are looking for home buying advice, whose advice should you trust most? If your advice comes from someone who knows your needs it is more likely to be good advice.

6 Things I’ve Learned About Starter Homes As a home buyer you may be wondering what the purpose of buying a starter home would be. The answer is; if you are a beginner and this is your first time, you should consider it.

The role of an open house seems straightforward, but many potential home buyers still fail to utilize its full potential. The full benefit of an open house, once realized, can really be an advantage.

7 Golden Rules Of Insuring Your Home And Property If you are a homeowner, you should know the true importance of having insurance. Having your home and assets insured may be the best choice you ever make as a homeowner.

7 Questions And Answers About Loan Modification Many homeowners find themselves needing to modify their home loan. If you are falling behind in your mortgage payments, loan modification may be a good choice for you.

7 Steps To Take Before Deciding To Move Are you trying to decide whether to sell your home? If so, balance the reasons you have to stay against the reasons you have to move and make an informed decision.

7 Tips On How To Survive Trading Down Trading down, you say, is uncommon. Who would decide that their home is too much for them instead of too little? Many people, surprisingly, do this every day.

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contents 8 Tips For Surviving A Conversion To A Rental Property Have you been thinking about turning your residence into a rental to generate income? If so, the following info will help you to decide whether it makes sense for you.

9 Mistakes That Hamper Your Success As A Landlord Being a landlord is pretty simple when your tenants are paying rent on time. However, if your tenant is late or stops paying rent entirely, you may need to take action.

9 Steps To Take Before Planning Your Move To A New Home Are you preparing to sell your home and move to a new home?

Learn how to select an experienced real estate agent to sell your home so you can start planning your move.

A 6-Part Overview Of Dealing With Condo Troubles Getting out of a condominium is a thought that may have occurred to you if you have had a dispute with one of your neighbors. This task isn’t a cakewalk, however, so this article will explain how to best go about it.

A 7-Part Overview Of Your Legal Rights As A Home Buyer Buying a home can be a highly intimidating prospect for a first time buyer. But it doesn’t have to be! Learn more about the process by reading this helpful information.

The 9 Principles Of Buying Property At A Public Auction Have you been thinking about buying a home at a public auction? If so, you should learn more about how public auctions work before you decide to attend and place bids.

Your 7-Part Beginner’s Guide To Becoming A Landlord If you are considering renting your home, you need to follow the rules. There are many rules that landlords must follow and you must learn about them as soon as you can.

Your 9-Part Checklist For Selling Your Home Fast Selling your home can be hard these days, as we are in a buyer’s market. Make it easier for yourself to sell your home by learning the best strategies for home sellers.

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PUBLISHER’S FOREWORD

SECAUCUS

Hello! Welcome to our March/April issue of Secaucus Real Estate Today. As always, I hope all of our readers and their loved ones are met with good health and fortune. As spoken by actor Leonardo DiCaprio in his first Oscar acceptance speech this year, let us not take the important things in life for granted.

REAL ESTATE TODAY MARCH / APRIL 2016

Editor

Sandra O’Connor Writer

Daniel Pratt Head of Creatives Nyvia Ross

Graphic Designer Kerwin Wepee

Digital Property Managers Maharlika Matutinao Layla Anaya

Digital Property Assistants

As we bring you our second magazine issue, our hope is that you notice some of the improvements that have been made. It is always our goal to bring our readers the best quality information, and we strive to improve on that quality with every new issue. This month, our continuation will help you to learn more about home economics, buying and selling a home, financing, and much more.

Secaucus Real Estate Today directs you to not only the big questions and answers of real estate, but the not so common aspects as well. Topics such as personal characteristics in your real estate agent and property closing negotiations come up often, but others -- such as understanding and avoiding mortgage fraud, and maintaining finer amenities of a home -- are just as important.

I now hand it to the editor of Secaucus Real Estate Today, Sandra O’Connor. The continual pursuit of knowledge is our team’s prevailing inspiration, and we hope to pass this attribute to all of our readers! See you in our next issue.

Best wishes,

Kenan Ross KENAN ROSS CEO Authoritative Content

Krystine Sitjar Warren Nietes

LETTER FROM THE EDITOR

Online Presence:

Hey there, and welcome to Secaucus Real Estate Today! We bring you our second issue, and with it comes a lot of positive buzz for our team. Our mission continues, as we provide you with the most informative material regarding real estate, all based out of Secaucus, New Jersey!

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For advertising concerns please contact KJ Ross at kjross@authoritativecontentllc.com Secaucus Real Estate Today’s magazine content cannot be copied or reproduced in any form without the written permission of the publishers.

Secaucus Real Estate Today’s editors and publishers shall not be held liable for any unsolicited materials. All prices and specifications published in this magazine are subject to change by manufacturers, agency and retailers.

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In our last issue, we gave you an introduction to concepts such as surviving the hunt for your dream home, getting the offer you’re looking for as a seller, and obtaining the insurance right for you. In this issue, we provide a continuation to these concepts and introduce a few new ones. Of these, you can expect to read much about becoming a landlord, dealing with condominium troubles, and trading down just for starters.

These tips will put you in position to make the absolute most out of your impending real estate investments, as well as some choices for our more experienced buyers and sellers.

While there are many first timers out there, even the most experienced consumer can have a list of questions. Secaucus Real Estate Today has the answers you’re looking for, and we will continue to grow with our readers in every new issue!

All the best,

Sandra O’Connor

SANDRA O’CONNOR Editor Secaucus Real Estate Today Magazine

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

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5 TIPS ON HOW TO SPOT GOOD HOME BUYING ADVICE by Sandra O’Connor

If you are looking for home buying advice, whose advice should you trust most? If your advice comes from someone who knows your needs it is more likely to be good advice.

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t is certainly exciting to purchase a new home. It is so exciting in fact that other people in our lives are drawn in to the process in one way or another. Sometimes unsolicited advice is no good at all and thus it is not worth listening to. Some professionals even have reasons to lead you astray or simply do not understand your needs well enough to steer you in the proper direction. Here are some tips to help you know which advice is to be trusted and which to take with a grain of salt.

ALWAYS EXAMINE ADVICE It’s important to carefully consider the advice you get from your friends and family, as well as any real estate professionals you might be working with. Say you’ve got a home that you’re fairly certain you’re going to buy and you invite a few friends to come and take a look at it. Do you really want their opinion of the property, or are you just looking to be supported in your decision? In other words, are you looking for advice or approval?

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ADVICE VERSUS APPROVAL Your friends could withhold their opinions if they see that you’re very enthusiastic about the property. If you’re looking for support, your friends are probably

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the perfect place to go. However, you should recognize that what you’re getting from them is not critical counsel. If you’re looking for advice, you should take care to ask the right people. Someone who isn’t qualified to give advice about real estate should not be on your list of advisors. Even if a person is a real estate professional, if they aren’t knowledgeable in the area or type of home that you’re interested in, you should seek out someone who is.

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DIFFERENCES IN PREFERENCES The people you go to for advice should have your goals and needs in mind at all times. Many times when we seek counsel, we don’t do a very good job of explaining what it is that we are after. (In some cases, we’re not even sure.) Then when we offer advice, we do so with a natural bias and don’t take in the other person’s position. If people don’t know what your goals are, or can’t see past their own preferences,

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you probably aren’t going to receive very good advice. This goes for professionals, too. If an agent tells you to avoid an area, you should find out why. It could be due to something that won’t effect you at all, like if an area has a sub-par school system but you’ll be sending your children to private school, or have no children at all.

CONSIDERING 4 CONFLICTS OF INTEREST Know what the interests of your advisors are, and whether or not they clash with yours. Is your real estate agent trying to convince you to purchase a home outside of your budget so they can get their commission? Are your parents pressuring you against that home a city away because they want you all to live nearby? Are your friends suggesting that it might not yet be time to move because they don’t want to see you go? Everyone has

different reasoning that goes into the advice they give. Sometimes people genuinely have your best interest at heart; other times, they’re worried about their own interests. Whenever someone tells you what to do, always carefully consider the advice instead of taking it at face value.

KEEP PROFESSIONALS IN CHECK You don’t want to bring a supposed professional in to help with your situation who makes the situation worse instead of bettering it. Very often, this happens with lawyers. Attorney malpractice cases are on the rise and it’s because of three things: (1) gratuitous advice, (2) a lack of qualification, and (3) exorbitant charges. Many lawyers give opinions that aren’t necessary. For instance, you may call in a lawyer to look over your agreement in a for-sale-by-owner scenario and

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find that the lawyer is making suggestions about the price when you and your seller have already come to an agreement. Many lawyers also tend to give advice on subjects that are far from their expertise. And to make matters worse, some lawyers will charge for hours and hours of research, whereas another may be able to complete your job in one or two.

As you can see, there are a number of reasons why the advice that others give you while you are looking for a home may not be that helpful to you. If you will be working with a professional, make sure that you know enough about them and their intentions and that they know enough about you, your preferences, your lifestyle and the requirements you have in a home.

That way you can be sure to be getting solid advice. Happy house hunting!

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6 THINGS I’VE LEARNED ABOUT STARTER HOMES by Daniel Pratt

As a home buyer you may be wondering what the purpose of buying a starter home would be. The answer is: if you are a beginner and this is your first time, you should consider it.

WHAT A STARTER HOME IS A starter home is a house that is bought by home buyers who are purchasing a house for the first time. These homes are typically small and inexpensive, and while most are capable of being moved into immediately once purchased, some may need to undergo repairs prior to being in livable condition. These homes are usually for single families only, and are good places to begin for those who have never owned a home before. You can find prices for starter homes in your area by checking your local newspaper. Look for phrases like “good starter home,” or “needs TLC.” Alternatively, you can browse on the Internet, or get the help of a real estate agent.

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THE CONCEPT OF A STARTER HOME People buy starter homes because after a few years, provided the home’s value has appreciated, the house can be sold for a higher value on the market. Many buyers purchase starter homes when they are either single or have just gotten married. Starter homes work well for people who will have managed to increase their income by the end of a few years, leaving them able to sell their starter home and upgrade to a better one. But for some, if you outgrow your home too soon, such as in the case of an expanding family, you may lose money if the house still hasn’t increased in value.

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STANDARD STARTER HOMES In 2003, the National Association Of Realtors reporting that consumers purchasing homes for the first time weren’t as likely to buy a single-family home as those who had already purchased a home before. First-time buyers tend to lean toward row houses, condos, and townhouses that cost less. Starter homes

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aren’t typically anything too fancy, and are ideal for someone who doesn’t mind the possibility of having to make or pay for repairs before the property can be lived in.

STARTER HOME PRICING Depending on what region you’re looking at buying your starter home from, you can find properties ranging from $40,000 to $120,000.

In recent years, these prices have spiked, and they are even more expensive in densely populated areas. It would be difficult to find a cheaply-priced starter home out in the major cities of Florida.

Meanwhile, were you to try a small town in North Carolina, you would face a steep decline in price.

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SHOPPING FOR A STARTER HOME When looking to purchase your first home, you’ll need to make sure of a few things. First, are you generally satisfied with the quality of the house? Is it in a condition where you would be able to move into it right now? If not, are there any upgrades you would be able

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to make yourself, or will you need to call in a professional? You’ll need to be sure that you can afford either of those options. Consider the safety of the neighborhood. If you have a family, decide whether your family would fit in, and consider the quality of the schools your children would be going to. A very important aspect of sizing up your potential home is knowing whether you could be able to live there for three to five years, as that is ideal in order for you to make money off of your investment upon reselling. Lastly, if the home isn’t to your tastes, decide whether or not you will actually be able to afford a better one. You may have to do without a few things depending on the current state of your finances.

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far more important than the condition it is in, as any home can be improved, but you can’t pick up your house and move it to a different city.

Take particular care to note the quality of life in the area, including the neighborhoods, schools, nearby businesses, and even roadways. If you’re sensitive to noise, you probably won’t want to live near a freeway or heavily used train tracks. See how long your commute to work will be. Check out the crime rate. If you have a family, are there other families living nearby? You should spend a good deal of time considering all these factors and more to make sure you make the best choice possible.

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6 TIPS ON HOW TO TAKE

FULL ADVANTAGE OF OPEN HOUSES by Sandra O’Connor

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The role of an open house seems straightforward, but many potential home buyers still fail to utilize its full potential. The full benefit of an open house, once realized, can really be an advantage.

f you take a trip through your neighborhood on a weekend, you might discover “open house” signs scattered throughout the area. The signs will point you toward properties that homeowners are prepared to give prospective buyers tours of. While an agent might be on-site, you are free to tour these homes without the aid of an agent.

Many home sellers will be working on their own as well. After you have been to an open house, many sellers will be happy to give you a second, private showing, and if you like what you see, you can make an offer on the home.

USING OPEN HOUSES TO YOUR ADVANTAGE An open house is a wonderful tool for the prospective buyer, especially if you haven’t decided which neighborhood or community it is that you’d like to live in. The regular process to seeing a home would involve getting an appointment, and even being preapproved by a lender; an open house allows you to short cut all of that. Through an open house, you can get a feel for the general condition of homes within a community, as well as interior and exterior design. The owner of the home may not be on-hand if there is a real estate agent present, as

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agents typically handle open houses by themselves.

Some open houses may be busier than others, so if there’s no opportunity for you to ask an important question, return for an official showing later. If there is a large crowd seeing the house with you, you’ll want to set that date as soon as possible.

FINDING OPEN HOUSES The simplest way to get started with finding open houses is to pull out your local newspaper. It’s common for real estate agents to not only advertise their showings in the paper, but also the times they will be held, price ranges, and the home’s amenities. Another way to find homes is to take a drive through your area, as home owners and real estate agents will typically place two signs: one near the road to draw in drivers, and one by the home itself. Open houses are typically held between the hours of 11 A.M. and 4 P.M. on Sundays, so a good way to maximize your time would be to draft a plan that includes 30-60 minute stays at multiple houses. Be sure to sign in on the guest list of homes that you like, and take advantage of your opportunity to tour a home with no pressure to make an offer.

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GETTING A SECOND SHOWING In just an hour it would be impossible to completely inspect a home. This is why sellers offer additional showings to potential buyers.

There is almost always a second showing, but some

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will allow up to even three or four. While you can’t inspect a house from top to bottom your first time seeing it, many real estate agents will schedule only 20 minutes for the initial showing, but that should be all the time you need to decide whether or not you have an interest in the property. The second showing is dedicated to ensuring that what you liked about the home initially still stands, and that you can get a look at the more technical parts of the house, such as structure and mechanics. Be sure to ask any and all questions that come to mind, and if the property is not for sale by owner, ask that the real estate agent have the owner be in attendance to answer your more specific questions.

WHAT TO LOOK FOR DURING THE SECOND SHOWING There are many questions you should be asking yourself while receiving your tour of the property. Does the home appear to be in good condition? Are its lines and walls properly aligned?

How does the roof look (is it sagging)? If the house is made from brick, is the mortar in good condition?

What about the paint? Are there cracks in the sidewalk? How are the windows and door frames?

(Can you feel wind blowing in around the edges?)

Inside the home, is it clean? Do the floors creak? Are the stairs stable? Has the plaster begun to crack? If there is a basement or attic, be sure to view both areas. The basement should have no cracks in the

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foundation or walls, and a damp or musty smell is the sign of an unfinished basement. The attic should be insulated, and bear no sign of insect or water damage.

MECHANICS, PLUMBING, AND ELECTRICITY Ask the owner how old the furnace and hot water system is, and find out whether there is central A/C or units that sit in windows. You can also inquire about how much the owner typically pays for electricity, water, and heating. This will give you an idea of what to expect for monthly utilities. Check to see that all lights are working.

Look around to see if there are a good amount of telephone jacks and electrical outlets. Then move on to the bathrooms. Do all of the faucets work?

What about the drains? What’s the water pressure like? Is there an odor that accompanies the water?

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PERSONAL QUESTIONS TO ASK Not all of what goes into the decision to choose a home is technical. After you’ve gone through the showing, whether you do so from within the home or back at your place, you’ll

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need to actually try to picture yourself carrying out your life within that property’s four walls. Can you see yourself and your family living there? Will you feel comfortable there? Can all of your furniture and other belongings fit there? Is it some place you’d like to relax after a long day of work, or spend the weekend in? The answers to these questions will help you to decide whether the best course of action is to move on from the home, continue considering it, ask for another showing, or even make your offer to the seller.

Open houses are a wonderful way of gaining exposure to the homes in a community or neighborhood. They give you the chance to dive straight in and decide whether or not a home could fit you. If you find a home that suits you through an open house, congratulations! Now you are ready to begin the process of negotiating prices with the seller. However, bear in mind that you may have to view several homes before you find the one that’s right for you. The average home buyer searches for a home for about 8 weeks before purchasing, so don’t feel like you need to leap at the first property you see!

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7 GOLDEN RULES OF INSURING YOUR HOME AND PROPERTY by Daniel Pratt

If you are a homeowner, you should know the true importance of having insurance. Having your home and assets insured may be the best choice you ever make as a homeowner.

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f you are a homeowner, you should ensure that your home and your assets are insured. Insurance can come in handy in the event of a natural disaster or an event such as a fire that may damage or destroy your home and property. The following rules will help you to see the true importance of having insurance.

After you’ve finished reading this, you will be ready to take a look at your situation to see whether you are properly insured.

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HOME APPLIANCES MAY ALREADY BE INSURED Some of your home appliances may already be insured and in many home sales, the seller will pay for a home warranty. That is insurance for the buyer against any appliances or other systems (like a/c or water heaters but not computers and such) breaking. You just call a repair shop and pay the deductible that’s often less than $50 and what’s broken gets fixed. You can get an allowance for that new appliance if it is not possible to repair it. When one year has elapsed, you can usually extend the plan for another year or two. When the house is old, there is a high probability of older items breaking down and hence it can turn out to be a good deal if the insurer keeps the premium down.

SELF-INSURING MAY BE THE BEST CHOICE You will surely want to do away with this extra insurance while taking your chance in a new home.

If you try to cover every gadget separately, the insurance cost would become sky-high! It may be a better idea to self-insure if your premiums fall around 20 percent of the cost. In this example, the $1300 spent yearly on insuring your appliances may work better in an account that will earn interest. As long as there are no breakdowns, at the end of a five year period, your account could have over $6500 that could be used in order to purchase new appliances.

Also, if something should break, there would be an account that could afford the cost of repair. Dealers know this. That is why insurance agents receive a higher payment from selling insurance than the commission from selling the actual appliance.

Property insurance and liability insurance are both tremendously important for all homeowners.

Learn about the meaning of proper insurance.

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ELIMINATING INSURANCE ON APPLIANCES Many buyers eliminate their insurance on appliances after a five year period assuming the equipment is no longer worth insuring. But, this is when the older appliance can breakdown and you need the coverage most. Presuming it still works, you will have paid for the equipment twice over when you bought it and again when it was insured. Many tenants who are living in a rented apartment assume that the landlord’s insurance will be enough to cover their personal property if it is destroyed when the building burns down or is destroyed. The landlord will help to cover the loss of your furniture, clothing or your computer.

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IF YOU ARE RENTING, YOU NEED RENTER’S INSURANCE You might have heard that you need renter’s insurance if you are renting. Often the landlord has no responsibility for tenant’s possessions, even assuming that it is not negligence of tenant’s . Always it is helpful if the tenant should cover their personal property with insurance called renter’s insurance. Having insurance is smart.

If you don’t have it and there’s a fire, you lose it all. A lot of renters don’t have property insurance. They think they don’t need it, like what are the chances of a fire, or they don’t know what they are really doing. They can also be under-insured. When getting fire insurance, the company will sometimes consult with you on how much coverage you want, but they might not ask directly and this can cause problems if something does happen.

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CONSIDERATIONS FOR FIRE INSURANCE POLICIES They may end up saying ‘Given the 2000 square feet in your home, our tables show that in case of fire, it will be $100 per square foot in order to replace your property if it is average. Higher grade construction can bring $125 and custom will be around $150. We see that your home is between average and above, so you can insure it for either the $100-125 per square foot. If the $100 is satisfactory to your lender, what would you rather have?’

Many homeowners will want to have the additional coverage until they are told the cost of the premium.

Premiums can vary from policy to policy. It could vary up to a few hundred dollars in some cases. This does cause people to choose a lower coverage plan and cross their fingers that nothing catastrophic happens to their property.

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WHAT HAPPENS IF YOU ARE NOT INSURED ENOUGH TO REBUILD If the worst case scenario does happen you may not be insured enough to rebuild. It’s one of the hardships of not having enough insurance. A majority of companies keep their policies matched up with construction cost, but some don’t. Let’s say that when you purchased your insurance the replacement cost was $100 a square foot.

Construction costs are at a steady increase, and in a few years to build one square foot is going to cost more than it does today. If your replacement insurance coverage isn’t increasing with the construction cost, you will find that you are under insured. It’s highly important that you are insured for the right amount. When you buy a piece of land, the title company usually throws in insurance with the purchase.

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owners. The title insurance should cover the lender and you. Title insurance works opposite.

It helps avoid problems with the title that happened prior to you buying it. An example is 2 sellers forged signatures. Your title insurance would save you lots of time and money. This is the reason to get title insurance that covers not just your mortgage but also your down payment. Go to the title company that issued your insurance title and ask what it covers if you’re unsure. You might have only covered the value of the financing. Increasing the insurance to the full amount of the property’s value is something you might want to do. This should be done before escrow closes, but most of the time it can be done afterwards.

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WHAT TITLE INSURANCE COVER SHOULD COVER To get financing, title insurance covering the cost of the mortgage is necessary but it is not necessary to get title insurance that covers the

As you can see, there are many different considerations for homeowners (and renters) to think about when it comes to insurance.

While having insurance does add an additional expense, it is well worth it in the long run. That is because if there is a fire or a natural disaster, you need insurance to ensure that you will be able to replace, repair or rebuild whatever has been damaged.

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7 QUESTIONS AND ANSWERS ABOUT LOAN MODIFICATION by Sandra O’Connor

Many homeowners find themselves needing to modify their home loan. If you are falling behind in your mortgage payments, loan modification may be a good choice for you.

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f you are having a rough time making your monthly mortgage payments, now may be a good time for you to start thinking about loan modification. A loan modification may be able to switch your mortgage to terms that are better for you, so you can avoid falling behind in your payments and also avoid foreclosure. The following will answer your questions on what loan modification is, why so many people require loan modifications these days and how you should proceed if you are having a hard time making your monthly mortgage payments.

WHAT IS A LOAN MODIFICATION? An explanation of a loan modification is any alteration to the initial borrower and lender contract. If you are eligible for a loan modification, you can stay in your home with a cheaper monthly mortgage payment and bring any late or missed payments up to date. Also, your lender doesn’t have to deal with foreclosure fees, a negative asset turns into a positive asset and takes a bad loan off the record. Most of all, a loan modification should be affordable. If the loan modification manages to create a more affordable monthly payment for the homeowner and also will be a lesser cost for the lender instead of foreclosure on the property, consider it a win-win.

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HOW DID THE MORTGAGE CRISIS AFFECT HOMEOWNERSHIP? During the mortgage crisis, droves of homeowners found themselves stuck into adjustable-rate mortgages that offered rock

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If you have been giving serious thought to refinancing your home loan, how can you decide? Here’s how you can determine whether it is time for you to refinance your home.

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bottom teaser rates. As the interest rate began to rise, house payments followed in short suit. Some saw their payments go up by over half. Property values plummeted as interest rates rose and many homeowners had no way to qualify for a refinancing option to bring them back above water. Since this, lenders are fairly willing to do what they can to bring down interest rates for either short term, or perhaps the long term. A loan modification rate adjustment can come in one of many forms.

There are reduced interest rates that will fall below current rates.

shock. A lot can be saved in a given month, when the interest rate is reduced. For instance, a monthly payment on a 30-year amortized mortgage could be reduced to $1,073.64 from $1,330.60 by just lowering the interest rate to 5 percent, as opposed to 7 percent. That would mean saving $92,505.60 over the loan’s entire span and saving $256.96 on a monthly basis. When lenders were trying to get the market to stabilize, it seemed like ARMs might be phased out. However, if you still have an ARM, you may be able to modify your loan and get out of it faster, which is definitely a good idea.

HOW IS AN ARM CONVERTED TO A FIXED RATE MORTGAGE? Conversion of an adjustable-rate mortgage into a fixed rate mortgage is another option. An interest-only period will allow for a borrower to get some time in order to get their finances back in line. A step-rate adjustment will give lower rates for a period of several months or years that will increase over a gradual pace in order to keep from having a severe rate-adjustment

SHOULD YOU CONSIDER EXTENDING YOUR MORTGAGE? Chances are, you are carrying a 30-year mortgage and are at least looking at another decade plus of payments yet to be made. Though many homeowners are in a rush to pay their mortgages, extending the amount of years in order to pay the loan down can provide some extra breathing room in your budget. Your lender may be flexible and can extend the term on your mortgage to something

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like 40 years, if that is what you need. You won’t necessarily have to make payments for 40-years when you have agreed upon a 40-year mortgage.

You can pay the principal earlier by making extra payments. You can extend the term and this will give you the option to make bigger payments, while only requiring you to make a small monthly payment. You can better manage any fluctuations with your finances each month using this plan.

WHAT IS THE MAKING HOME AFFORDABLE PLAN? Your lender might lower any unpaid principal balance on your owed loan balance, even if it may not be able to achieve affordability by changing your loan’s interest rate and term. This is a way to forgive a part of the debt owed. Through President Obama’s Making Home Affordable (MHA) plan, this has become an easier to work with action for lenders to get part of their losses back through the U.S. Treasury. If payment is deferred, part of the debt goes to principal forbearance. If you miss more than one house payment, your lender then has the opportunity to really lay on penalties and late fees as they see fit.

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WHAT CAN A LENDER DO TO COLLECT LATE OR MISSING PAYMENTS? Any lender has a multitude of options that can be negotiated in order to collect late and missing payments as well as any additional costs.

Capitalization has the advantage of including penalties as well as fees that are added to the balance that you will need to pay off along with the loan. However, those penalties/fees will include interest that you must pay off. The lender has the option to forgive the extra fees on your loan and negotiate a new payment plan to bypass the

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interest. Typical protocol includes an installment plan to pay your penalties over a period of time instead of as a huge lump sum. While your loan may have extra payments in interest, you will get to keep your assets and it buys you more time.

WHAT HAPPENS WHEN YOU MODIFY A LOAN? When a borrower gets a loan modification, the lender does a recalculation known as reamortization of the monthly payment based on other modifications including interest rate reductions, term extensions, principal reductions and capitalization when it comes to penalties and fees. Lenders can modify your mortgage by re-amortizing the loan for an extended period of time while still keeping the original maturity date.

If this is what you decide on, look out on your last payment. As an example, if you pay a decade on your mortgage (30 year) that was taken out in 2000, it is possible for the lender to re-amortize the loan over the 30 years and still require the full repayment in the year 2030. This example gives smaller payments per month but still requires a large lump sum payment in the year 2030. Many homeowners do not realize other options are available other than making payments or giving up the property.

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By now, you may have decided whether or not you are interested in pursuing a home modification.

If you are still unsure, consider speaking to a personal finance professional or a real estate professional for some guidance. By taking a look at your finances, such an individual will be able to advise you whether or not a loan modification is a good next step for you.

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7 STEPS TO TAKE BEFORE DECIDING TO MOVE by Daniel Pratt

Are you trying to decide whether to sell your home? If so, balance the reasons you have to stay against the reasons you have to move and make an informed decision.

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f you have been considering whether or not to sell your home and move to a new location, there are many things you should consider before making your decision. By balancing the various reasons you have to stay where you are against the reasons why you wish to move, you can come up with the best decision. The following is a list of steps to take in order to evaluate why you may or may not wish to move, that can help you to determine whether or not a move is the right ‘move.’

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Negotiating the sale of your home can be a challenge in today’s economic uncertainty. These tips will show you how to get max proceeds from your home.

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ASK IF YOU SHOULD REALLY MOVE There are a lot of factors that make people want to sell their homes, ranging from reasons as commonplace as a new job or as unusual as a homeowner believing their house is haunted. But before you put yourself through the stress of selling your home, buying a new one, and moving, you should take the time to seriously consider whether a move is right for you.

Ask yourself as a homeowner if it is better to stay right where you are. But there are many situations where it’s perfectly fine to move while you can.

they can trade up into a home much better than their previous one. While it’s not impossible, don’t assume that it will happen. On top of a more expensive mortgage, you would also have to deal with an insurance rate, property tax, and home maintenance fee higher than you have ever dealt with before. And just because a mortgage lender may allow you to receive a loan doesn’t mean you can actually afford it. You also have to take into account other investments you are currently involved in: a primary example of this is putting one or more of your children through college.

ASK IF YOU ARE ALREADY STRUGGLING Some people truly believe that they have to move. But doing so for the wrong reasons can be painful if in the end you realize you never really had to at all, or you couldn’t afford to. The biggest reason for putting the idea of moving on the back-burner is if you’re already having difficulty affording your current lifestyle.

If making ends meet is hard now (especially in instances where you are using high-interest credit, like auto loans or credit cards), it will only be more difficult when the transaction is over. Even if the home you’re buying is of the same value as the one you are selling, the transaction costs of selling and buying will more than likely cause you serious problems.

DECIDE WHETHER MISCONCEPTIONS ARE AFFECTING YOUR DECISION It’s not uncommon for leaps to conclusions to influence our lives. When it comes to where you live, often crime and safety are common areas for people to let misconceptions change the way they perceive reality. Rather than just assuming or depending on the news (which can be skewed depending on who is reporting and where they are reporting from), you can find out what the real crime rate of an area is by getting in touch with the local police department. They are the ones who create the statistics. You should also beware of the belief that a private school is the best option for your child. There are excellent public schools, and there are terrible private schools. Doing real research will help you to decide which option is best for your child, but you should also consider factors like the commute required for you to get to work should you move, as it can be more difficult for you to stay in your child’s life if you are around less.

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ASK IF YOUR NEXT HOME IS TOO EXPENSIVE If you are doing well, you should be aware of trying to buy a home that is out of your budget. Many homeowners wrongly assume that just because they have savings set aside that

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ASK IF YOU CAN AFFORD IT There are some people who decide to move simply because they’ve grown tired of living in the same house for such a long time.

But wanting to move has no bearing on whether you can actually afford it, and being able to afford something is very specific. This means you know what your financial (and possibly personal) goals are, know how much it would cost to trade houses, have considered the extra costs, and know that the accomplishment of those goals won’t be disturbed.

If you plan on retiring, you’re going to need to be saving quite a bit of money. If you don’t know where you stand on that, it may be best to hold off on a major real estate decision for now.

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DETERMINE WHETHER OR NOT YOUR JOB REQUIRES IT Receiving a new job opportunity is often exciting, but sometimes the new location is simply too far away for you to make the commute from where you currently are. If you have a job that you’re doing just fine in, you might be able to pass on the opportunity and skip the hassle of finding a new house. But if relocating is required for you to maintain your job, or you don’t have a job at all at the moment, you will probably need to go. But you should keep in mind that even then, a move might not still be mandatory. You could reason with your boss and receive a promotion that allows you to stay right where you are, or even explore other job opportunities within your city if negotiating with your current employer isn’t possible.

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ASK IF YOU ARE FACING FINANCIAL TROUBLE Unlike the previous scenario including financial struggles, sometimes people need to move because their lifestyle has undergone a change and they can no longer afford their current home, whether this be because an illness has decreased their earning potential within their job, or the amount of people contributing to mortgage payments has been reduced. On top of this, sometimes people just leave beyond their means and begin to struggle with consumer debt. All of these are valid reasons to downsize to a home with a smaller mortgage payment.

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Once you have answered the above questions for yourself, you will quite likely have a pretty good idea of whether or not a move is a good idea for you at this point. Remember that deciding you will not move residences right now does not mean that you can never move in the future: just that you are putting it off until it makes sense logistically, financially and otherwise. If you do decide to move, best of luck finding the home of your dreams and selling your current home!

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

7 TIPS ON HOW TO

SURVIVE TRADING DOWN by Sandra O’Connor

Trading down, you say, is uncommon. Who would decide that their home is too much for them instead of too little? Many people, surprisingly, do this every day.

WHY TO TRADE DOWN IN THE FIRST PLACE While many people wouldn’t believe it, it’s possible to eventually decide that the home you are currently living in is actually too much for you, rather than too little. You might have a swimming pool that over the course of several years stopped being used, or your children could have grown up and moved into homes of their own. If you’ve recently retired, you may not need to live so close to the city any longer, leaving you with the option of relocating to some place quieter.

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THE PERKS OF TRADING DOWN Trading down is a great option that

can save you money and relieve stress, especially in the case of seniors. If you’ve recently retired, you might have actually found yourself in a position where you have a larger house than you need, and less money now that you are no longer working. While this can become frustrating, you are actually in luck!

The obvious fix to this scenario is to sell your home and move into a less expensive one, leaving you with money in your pocket not only from the sale, but also from the smaller payments that you would be making.

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DETERMINING YOUR PRICE RANGE Your price range for trading down will

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be affected by a couple of different things.

The first factor that you should consider is precisely how much money you have saved for retirement. If your savings are low, you could free up money for expenses by selling your home and purchasing one at a much lower price. But that brings into play another factor: the quality of the home you are looking to trade down into. If your ideal area is in an expensive neighborhood, you’re probably not looking at shaving off much money when you trade down. Keep in mind that the cost of living in cities is much higher than what it is in the suburbs.

DECIDING TO RENT INSTEAD Rather than selling their homes and buying new ones, some retirees prefer to sell and then rent. This saves you even more money, because renting is almost

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always less expensive than buying (although this can change depending on the area that you intend on moving to). This means that the money from the sale of your home is free to go into your savings, or whatever else you would like to do with it.

POTENTIAL PROBLEMS WITH RENTING As there is no perfect scenario, there are of course some drawbacks to renting.

One of these includes the exposure to rental inflation that you face. As a renter, your monthly payment could increase annually due to inflation. This means that while you could be paying $1,000 a month in rent, an increase of only 4% annually will have you paying almost $2,200 in 20 years. With 6% inflation, that could end up being higher than $3,000.

Yikes!

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ADJUSTING TO HAVING A LANDLORD While you more than likely grew used to being in charge of your own home when you owned it, when you are renting, the property actually belongs to someone else. This affects everything from how you decorate the interior and exterior of your home, whether or not you can have a pet in the house, and more. Before signing on to be at the mercy of a landlord, make sure you not only check out the property, but also the person in charge themselves. If moving into an apartment or other development that houses multiple units, ask around to learn about the general opinion of those in charge. Always be aware that a landlord can sell a property, meaning that you’ll have to move again, as well as take on the added expenses that come along with that.

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MAKE THIS DECISION CAREFULLY While many people look forward to retirement in their working years, it can be hard to adjust once retirement actually hits, especially since many people can’t help associating retirement with dying. Since this is a major change in your life, you shouldn’t try to rush through it, or make any decisions that you aren’t comfortable with. While you should be positive that you understand how your finances will be affected by your move, you shouldn’t base the entire decision off of the money, as your emotions are involved as well.

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8 TIPS FOR SURVIVING A CONVERSION TO A

RENTAL PROPERTY by Sandra O’Connor

Have you been thinking about turning your residence into a rental to generate income? If so, the following info will help you to decide whether it makes sense for you.

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n the current economy, many individuals are searching for ways to stay afloat financially. For many homeowners, the option of converting their residence to a rental and downsizing to a more affordable home or even to an apartment is one way to achieve this goal. If you are considering changing your residence to a rental, there is a lot you need to think about. The following information will help you to decide whether this is a viable option for you.

TAX CONSIDERATIONS FOR RENTAL PROPERTIES A lot of landlords recently have started changing their residence into a rental unit. There are however a few tax issues that could come into play when trying to change a private residence into a rental property or reverting backwards. There is little change when it comes to tax laws and regulations. Don’t try to handle this particular step on your own. Find a tax professional to help guide you through whenever you feel like this could become slightly more complicated. The property doesn’t actually shift to another person, although the property will now be categorized differently than it would be before. You may lose some of the tax advantages you had prior to the shift towards it becoming a rental property. Generally this property will be refinanced in order to buy a new home to live in, then the original property is rented.

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THE TYPE OF RESIDENCE THAT CAN BE CHANGED TO A RENTAL PROPERTY Any residence can easily be changed into a rental property given that there are no restrictions to the deed or a covenant that states it is not a possibility. Given that the property can produce a decent amount of revenue, there should be no issue with it serving as a rental property.

Multifamily units with more than four units, while not impossible to finance, have a different process that one must follow to do so. There are less lenders looking for these loans, mainly due to Wall Street’s control of housing loans and the way these are packaged for the investor.

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HOW TO FINANCE MULTIPLE-UNIT PROPERTIES It is still possible to get finance for properties having five or more rental units. When you apply for a loan, be ready for a process that is not similar to other real estate loans. It is necessary to get the latest financial statement prepared by your CPA (certified public accountant) prior to applying for finance. Even though you can get the statement ready yourself, the one prepared by a CPA carries more importance. To close the

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deal you must have access to the down payment and enough leftover for closing fees. You have to show documentation to the lender that the funds are available. They will also want to see that the income produced can support monthly costs of the loan payment. As long as the property appraisal supports the amount of the loan, getting a loan should not be a problem.

CO-OPS ARE NOT THE BEST OPTION FOR RENTALS Contrary to popular belief, co-ops do not make the best rentals. The biggest advantage to them is that the exterior maintenance will be done for you. You won’t need to worry about cutting grass or clearing any snow. This is the kind of property that features worry free maintenance. Landlords have the ability to take all of the stress of home maintenance away from their tenant. It could be associated with monthly costs. There may be other services included like water, sewer, or trash.

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MAINTAINING A RENTAL PROPERTY CAN BE COSTLY How much money are you willing to put into deposits and the capital it takes to maintain a

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property? Take into account if there are expensive repairs to the property that will have to be made relatively soon. Prior to purchasing a condo type property, it would be smart to do some investigating.

Are there any rules or regulations against renting this condo out to a new tenant right away? What kind of condition is the condo property in? You don’t want to get stuck paying extra money every month to fix up a run down property.

CAREFULLY PERUSE THE POLICIES OF YOUR PROPERTY BOARD Making sure that you are aware of possible restrictions in your property’s neighborhood, this is critical for any income generator. Doing your research to ensure that renters will not be difficult to acquire is the first step to financial gains on your investment. Even if renters are allowed at one time, this does not guarantee that they will indefinitely be permitted. It is extremely important that you are actively engaged in your property board’s policies so that everyone is on the same page. It’s imperative that you go to all of the association meetings. This is how your going to be kept abreast of what the rental policies are, or are changing to.

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THE TYPE OF PROPERTIES YOU SHOULD AVOID It is pointless to purchase a property to use as a rental and not be able to rent it to anyone. If you want to get rid of the property you will have to find a purchaser that wants to live at that property and not use it as a rental themselves.

It’s just good advice if you want to be a landlord to stray away from community properties like this.

Never invest in any properties that are assured to lose money every month. Proceed to other

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possible investments instead of one that costs you cash month after month.

UNDEFINED EXPENSES ARE A BIG RED FLAG Never invest in properties which may have undefined expenses on the horizon. For instance, suppose the local municipality just announced that in this area a new sewer system will be implemented adjacent to a property that you are contemplating purchasing. It is impossible to determine the expense of that installation. The link from the home could be routine, or it could be a very expensive endeavor if boulders need to be taken out. Before choosing a piece of property to purchase, it is wise to ensure that you consider the short and long-term options you have on turning the property into a profitable investment. The best way to start recouping gains on your investment is to find property that would be a suitable rent location for those that can afford to pay what you need to cover your costs. It is critical to do your homework in advance to ensure that you will not lose money in the long run on your property.

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Rental income has helped many individuals and families to get through difficult economic times and to thrive while others are suffering. However, it may or may not work for you. At this point, you may have a pretty good idea whether it makes sense for you to convert your residence to a rental.

Or perhaps you are more interested in purchasing another property to use that one for rental income.

You can learn much more about your options for such an investment by speaking to a real estate lawyer or another real estate professional.

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

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9 MISTAKES THAT HAMPER

YOUR SUCCESS AS A

LANDLORD

by Daniel Pratt

Being a landlord is pretty simple when your tenants are paying rent on time. However, if your tenant is late or stops paying rent entirely, you may need to take action.

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f you are a landlord, you have a responsibility to be fair to your tenants and provide them with a habitable place to live. Your tenants also have responsibilities. One of the most important responsibilities a tenant has is paying their rent on time. The following are some common mistakes during the process of rent collection and some advice on what to do if you are faced with a tenant who is paying rent late or who has ceased paying rent entirely.

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NOT SETTING A CLEAR BASIS FOR COLLECTION Collecting rent on a monthly basis is a key part in maintaining a successful rental property.

Rent will in most situations be due at the beginning of every month. The most common way for a landlord to receive payment is by sending money through the mail. Other landlords prefer stopping by the property and picking it up in person. Tenants should have the ways and means to send the rent to the landlord by a check through the mail. This should be addressed to the landlord’s home or place of business prior to the due date. It wouldn’t be out of the ordinary to cut a tenant some slack if their rent payment was held up in the mail.

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NOT SENDING A LATE NOTICE Some landlords will go to the rental properties to physically pick up rent payments. This way offers a tenant a choice to pay cash and the landlord to give a payment receipt.

It also offers a way for the landlord to check on his rental property’s condition. One thing should never change - if the rent is past due, the tenant gets a written notice. Renting out a property can be stressful. You have to know the laws that protect you when a tenant fails to pay their rent on time or even at all. Mailing a letter demanding rent is a 34

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good option however most of the time it is best to deliver the notice yourself.

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NOT KNOWING WHAT TO DO IF A TENANT DOES NOT PAY You can place the notice in an envelope and attach it to the main door of the premises so you know it arrived. Penalties are usually invoked after a certain time period, stated in the lease agreement which is typically three to five days after the rent is due along with overdue charges and late payment charges. How you reinforce your late payment of rent policy should not vary.

Consistency is key and you don’t want to look like you’re playing favorites with tenants. Stick to your guns: if the rent isn’t paid by the time the grace period ends, slap a late notice on the door.

TRYING TO BE THE NICE GUY You don’t really have a choice to be the nice guy in these kind of situations, unless you’re planning to be taken advantage of by the renter in the future. You must expect the rent when it is payable and leave no stone unturned to

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ensure its payment. If you do not receive it even after the accepted grace period is over, serve a late payment notice. If no payment is made even then, it is time to send a notice for eviction to the tenant.

The contents of the eviction notice and when it is possible to send it differs from place to place. In some cases, it will be treated as valid only when either fifteen or twenty-one days have elapsed since the last due date.

NOT KNOWING THE LOCAL LAWS You should find out which laws are applicable in your location. You must send the notice on the earliest allowed date. Use certified as well as regular mail for sending the eviction notice. A landlord is usually permitted to take a late fee if the rent is late. Local laws as well as the lease contract will say how much can be collected. This is to dissuade a tenant from being late with the rent. Don’t let a tenant make a late payment and then forgive this fee. Usually a tenant who pays the rent but doesn’t pay the late fee can’t be evicted for nonpayment of rent.

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NOT UNDERSTANDING HOW TENANCY LAWS WORK Tenancy laws differ from place to place.

If a tenant fails to pay rent on time, the landlord serves a notice, warning the tenant of impending eviction unless the rent, along with a late fee, is paid immediately. If the tenant pays only the rent, the law prohibits the landlord from evicting the tenant. The landlord cannot treat part of the rent as late fee and allege that the rent is not paid in full. The law allows the landlord to evict the tenant for not paying the late fee but there has to be another one month’s notice in this regard. In some places, after accepting partial payment of rent, the landlord cannot evict the tenant until the end of the month but in other places, eviction is possible even after receiving partial payment of rent.

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BEING NONCHALANT ABOUT PARTIAL RENT PAYMENTS The landlord has to be very cautious while accepting partial payment of rent by the tenants.

In some places, there are court rulings which state that if the landlord has accepted some money as partial payment of rent for a given month, the tenant is entitled to live in the rented house for the whole month even if he/she fails to pay the remaining rent. It just means that the landlord has to wait till the end of the month if he wants to evict the tenant. Most landlords will accept partial payments of rent hoping that the remaining amount would be paid soon. Since there is such a risk in accepting partial rent payments, it is better to consult a real estate attorney beforehand.

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NOT EXERCISING THE RIGHT TO EVICT The law supports the landlord’s right to get rent from the tenants and to evict a tenant if he refuses to pay rent. How can a tenant expect to live in somebody’s house without paying for it? The right place for the landlord to file a complaint against a tenant is the small claims court. There are laws laid down by the court which both the landlord and the tenants must obey. If the landlord is not at fault and has followed all the steps prescribed by the judicial system, the case will be decided in favor of the landlord. But remember that you need written documents to prove that the tenant is at fault.

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NOT FOLLOWING THE PRESCRIBED EVICTION PROCEDURE If a tenant can’t provide the rent, then the landlord can get the property returned without resorting to creative ideas that can backfire, like taking off doors and locks, turning off the heat, or making sure the property is uninhabitable. These may incur a judgment against the landlord. You might wind up owing money to the tenant who hasn’t paid your rent. There are tenants who’ve missed payments who can be given an incentive to pay. Many landlords offer an incentive for their tenants to pay the rent early. The tenants are offered a discount on their rent if they pay the rent before it is actually due. For an example, if the regular rent is $800, if they pay before the first of the month their rent is $775. It’s funny how the rent money will come in early or on time when there is an incentive for it. Just make sure none of those rent checks get returned by the bank.

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Now you know what to do if you are faced with a nonpaying tenant. While you may not wish to be a mean landlord, if you evict a tenant who is not paying, you are not being mean, you are being fair.

Other tenants work hard to pay their rent, so why should yours be entitled to a free ride? Be sure you know the laws and regulations in your locality and follow them if you must evict your nonpaying tenant or to get them to start paying rent again.

Good luck!

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

START YOUR DAY

THE RIGHT WAY

Breakfast is the most important meal of the day for a reason. Infuse your mornings with energy starting with these delicious, creative dishes. Your days are sure to be more productive when you treat yourself with some variety!

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9 STEPS TO TAKE BEFORE PLANNING YOUR MOVE TO A NEW HOME by Sandra O’Connor

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Are you preparing to sell your home and move to a new home?

Learn how to select an experienced real estate agent to sell your home so you can start planning your move.

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

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re you about to list your home for sale? If so, before you think about moving to your new house you’ll need to sell your old one first.

The following steps will help you find a great real estate agent to work with and will also help you to start planning the moving process.

UNDERSTAND HOW AGENTS HAVE CHANGED Two or three decades ago, almost every real estate agent was independent. Nowadays most work out of a national chain like Coldwell Banker or Century 21. They are huge corporations.

Most sellers will wonder whether they should seek out one of these or an independent agent and the answer is that it most frequently doesn’t matter. A good piece of advice is that you hire the best agent you can locate no matter where he or she works.

It does not matter if the agent is associated with a chain or not. Both will have something of value to offer and you should not eliminate any potential agents based on this factor. If you have a problem with an individual agent, you can ask someone higher up to review the agent.

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Are you trying to decide whether to sell your home? If so, balance the reasons you have to stay against the reasons you have to move and make an informed decision.

CLICK HERE TO LEARN MORE.

BE SURE TO SELECT A QUALITY AGENT Most agents are properly trained to do their job, but there is always an exception to the rule. A chain is useful when it comes to longdistance moving assistance. By listing your home with a chain in any given city with any agent, it can be linked to another that is already working on your new home search. An independent broker has a lot of wiggle room when working with you. They will make choices as far as if their commission should be cut, where a chain agent may require approval from their superiors. An independent often times will just work harder for you.

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SELECT AN AGENT WHO WILL WORK DIRECTLY WITH YOU You will want an agent that is willing to work with you directly and have you involved in all the steps in the process. If you can find an agent willing to do that, you can expect him or her to take your

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listing, inform you on pricing methods and increase the value of your property, conduct open houses, work out the deals, complete the paperwork and successfully complete the transaction. Look for someone who you find respectable, trustworthy and helpful. That’s the definition of the perfect agent. It’s not any fun to move from one place to another. You have to remember a long list of things to do like getting the electricity and water in your name. But, at the same time, a move can be seen as the beginning of a new journey filled with excitement.

CREATE A MOVING TO-DO LIST Regardless if you’re new to moving or if you’ve moved many times, it’s good to make a to-do list so that things are less stressful and everything runs smoothly. This is where moving into your new home gets tricky. You’ll need to get your services and utilities turned on; add applicable deliveries like a newspaper, too. You may have no idea what day you will close, however, so how will you be able to provide a start date for your service providers? Basically you’ll have to tell a white lie and provide your earliest possible target move in date. Say if escrow is due to close on the

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30th of June. If something goes wrong and often it will, the closing date will be further down the road.

Of course, it could be cutting it close on time, but who is to say?

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GET IN TOUCH WITH SERVICE AND UTILITY PROVIDERS Get in touch with all the service providers you need and schedule them for the earliest possible date and give them a ‘connect by no later than’ date. There are some cities that if there is a lot of new construction, there could be a long wait for service hookups. Get them to agree and schedule an early date and then wait. Once the deadline draws closer, you may find out what is going on with your mortgage and the news may not be good. Perhaps there’s an issue with a loan payoff in the past, or mistakes that the credit reporting bureau made will take longer to fix than expected.

It appears that the deal will not be finished until the 10th of July.

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OBTAIN AN EXTENSION IF NEEDED Therefore, when June 30th is approaching and it’s clear that the deal won’t go through as planned, contact the utilities and

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request a short extension. While it may cost you a small fee to change the due date, most companies have no problem making this adjustment. The problem is that a company often can more easily postpone your service after you’ve been given a firm date. You can sometimes do this repeatedly till the installation happens just when you want it to. Naturally, this can’t be guaranteed because the service company could refuse to postpone and make you start all over again. They may be okay with delaying the installation of these things for several days or longer.

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SET UP THE SERVICE FOR YOUR NEW HOME One of the chores for someone who has just moved is getting services set up for their new home. The following are some things you’ll want to set up when you move. In some cases, you may have to decide between two providers that offer the same service. It may be that you will have to decide between DSL or a cable modem when selecting your internet provider. Usually people don’t get both, it’s just one or the other. If given the choice, which is better? Think about the monthly costs, connection charges, service speed and possible challenges for setting it up where you

want it in the house. For many appliances, such as TV, audio and DSL lines, you can choose wired or wireless connections in the home.

ESTABLISH WHETHER YOUR HOME IS WIRED FOR UTILITIES These days, many contemporary homes are built wired for TV, A/V, phone and computers.

If it comes pre-wired, it is for the best to use what is there. Keep in mind however, there is an ever-growing amount of inexpensive options for wireless. Take for example instead of running a Cat-5 wire through your home, for under $100, NetGear and other wireless manufacturers have a wireless hookup. All you’ll need to do is connect any wireless router to your DSL or the cable modem into your computers USB port. Once you install the drivers, your software should be operating smoothly. You can purchase wireless equipment from manufacturers like Sony to set up your entertainment equipment.

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CONSIDER GOING WITH WIRELESS EQUIPMENT Most of these wireless systems operate through the use of infrared technology meaning that the equipment needs to be in sight. If the

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equipment is not in sight, then the sound will not work. Going with wireless equipment will save you a lot of time and money if you buy a house that is not already wired. After making the final arrangements with your utility providers, you should think of which company will transport your furniture. Never put it off till the last day. As early as possible, get onto the Internet or open the Yellow Pages and find a good moving company. Check out several such companies and choose the one with the best services at reasonable prices. Finally, throw out 42

the stuff you really don’t need. That way, you don’t have to transport it all the way to your new home and then throw it out later.

This list will get you started on your move. If you are still in the early process and need to find a real estate agent to work with, be sure not to settle for one that is less than the best. The more experienced your real estate agent is, the better a chance you stand of selling your home for a great price and moving to a new home.

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A 6-PART OVERVIEW OF

DEALING WITH

CONDO

TROUBLES by Daniel Pratt

Getting out of a condominium is a thought that may have occurred to you if you have had a dispute with one of your neighbors.

This task isn’t a cakewalk, however, so this article will explain how to best go about it.

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f you’ve found yourself in a situation within your condominium that you simply detest, the idea of simply moving more than likely has already occurred to you.

However, getting out of a condo is not as easy as leaving an apartment building. The following will provide you with some actions to take before deciding that you cannot possible remain in your community any longer.

DECIDING YOU WANT OUT I t h a p p e n s . Yo u ’ r e l i v i n g i n a condominium, and you get into a fight with one of your neighbors, your board isn’t doing their job, or you find yourself in any other kind of living situation that you find to be unacceptable. You decide that you want out, but simply packing your things isn’t an option.

Leaving a condominium first requires that you sell your home, and after that, you’ve got to find another one to stay in. This is not something to take lightly. And yet, when owners have problems, their association boards are often quick to tell them to move if they don’t like the way things are being handled. While your dream of buying a condo may have turned into

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a nightmare, there are still alternative measures to selling your home.

WORK THROUGH DISPUTES Many issues between neighbors arise from an inability to communicate, whether it be to the board, or each other, especially in the case of problematic behavior.

Improving your communication skills will help, from reading a book on negotiating with stubborn people, to even taking a class about communicating. You could also get a third party involved that is sound of mind or experienced in mediating.

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GET INFORMED Becoming more educated on the topic of your dispute can work very well to your advantage, especially if you end up becoming more well-versed on the subject than the neighbor you’re having issues with. If your problem is with a neighbor or the board, you can look up your state’s laws regarding condos, property regulations within the community

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(you’d be surprised how many board members there are out there who don’t know these), and so on.

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GET A NEUTRAL PARTY INVOLVED In order to have an objective point of view in your dispute, you need to involve a facilitator, mediator, or anyone who can look at your situation and give you an alternative to moving away. For this to work, you must understand that your situation is not going to look the same to whoever you bring in as it does to you. That’s the whole point: you could actually be too distracted by your emotions to see a potential solution. Ideally, you will want the person you bring in to have experience with settling disputes. Consider their suggestions carefully; don’t just throw them out if you don’t like them.

TRY RENTING OUT YOUR CONDO This is not the same as selling your home. You could rent out your space within the building to another tenant, and move

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There’s a lot of information about condominiums and town houses that most people won’t find out about until they start living in one. Here’s how to find out if a town home or condo is right for you.

CLICK HERE TO LEARN MORE.

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into an apartment or rent a home yourself.

In doing this, you would see whether the new tenants have the same issues with your neighbor that you did. Sometimes people are simply hostile, but it could be that in your situation you and your neighbor were both contributing to the problem, especially if your new tenant moves in and everything is fine. And if you had been living in your condo for a long time, experiencing life in a new home could lead to the push you needed to move up.

INVOLVE AN ATTORNEY Before you decide to throw in the towel and prepare to sell your condo, contact an attorney to see if the dispute can be

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solved legally. You may be able to bring your problem to a halt simply by writing a letter to your neighbor, or even the board explaining that the owner’s actions violate a law. If that is unsuccessful, there may be legal action you can take.

If you are having difficulty with your neighbors, you may be in the middle of deciding whether it is time for you to simply move away and leave the past behind. However, selling a condo and purchasing another home is a time-consuming and lengthy process. Before you give up on your current place of residence, try the above suggestions and see if you and your neighbor can’t find a way to work things out.

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www.Agnes4RealEstate.com 45 SEC AUCUS REAL ESTATE TODAY | MARCH/APRIL 2016

9 THINGS TO KNOW BEFORE UPGRADING YOUR HOME The time for avoiding those glaring home upgrades around the house is over.

With the right guidance, you can get them done on your own. Here are 9 things to take a look at before you get started on some home improvements.

CLICK HERE TO LEARN MORE

A 7-PART OVERVIEW OF YOUR LEGAL RIGHTS AS A HOME BUYER All home buyers or renters in the United States are entitled to certain rights that demand honesty and fairness. This article will explain what you should do if you feel you have been taken advantage of illegally. by Sandra O’Connor

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s a home buyer or renter within the U n i t e d S t a t e s , y o u a re e n t i t l e d t o certain rights. Real estate transactions are legally required to be honest and fair, and the right has been reserved for you to never be discriminated against by a potential seller, real estate agent, or anyone else. The following are acts that have been put into place by the government in order to protect you, as well as actions you should take if you think you have been a victim to various illegal activities.

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THE FAIR HOUSING ACT The Fair Housing Act was instated in 1988, and gives homeowners and buyers alike protection from discrimination due to race, color, gender, nationality, religion, disabilities, or even familial status (whether you have or will soon have a family). If you are denied the right to purchase or rent out a property due to a discriminating factor, the owner of the property is violating the Fair Housing Act. This issue can also rear its head during the lending process. While you can be denied a loan because of your financial history, you cannot legally be denied due to your color, race, sex, familial status, the presence of a handicap, religion, or national origin.

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Property insurance and liability insurance are both tremendously important for all homeowners.

Learn about the meaning of proper insurance.

CLICK HERE TO LEARN MORE.

TACKLING DISCRIMINATION Know your rights. If you are being discriminated against, remind your seller or lender of the Fair Housing Act. It is illegal for them to threaten or intimidate you in response. The U.S. Department of Housing and Urban Development (HUD) have also made it illegal for sellers to advertise to certain demographics, such as “Whites only.” If you feel your rights have been violated, and the person in question does not respond to your concerns, HUD has an Office Of Fair Housing And Equal Opportunity (FHEO), which can be reached at 1-800-669-9777 by telephone, or www.hud.gov/ complaints/housedricrim.cfm. From there you can print out a form to fill out and mail to the HUD.

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THE REAL ESTATE SETTLEMENT PROCEDURES ACT This act is commonly referred to as RESPA, and it’s a good idea to know how this affects you as a buyer. In previous years, buyers

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were left out of the loop when it came to certain things between the signing of contracts and the actual closing date, meaning they had no idea about certain closing costs. In 1974, RESPA was instated, and that all changed. RESPA requires that buyers receive disclosures on the transaction consistently throughout the process, and that kickbacks that would increase costs for the buyer are made illegal.

HOW RESPA EFFECTS LENDERS RESPA also has instated measures to help prevent lenders from taking advantage of you as well. After you apply for your loan, you are required to receive “Settlement Procedures and You,” a pamphlet created by the U.S. Department of Housing and Development to educate you on the settlement process. Within those same three days, it is also required that you be given an estimate of what you can expect your closing costs to be. All of these charges are to be included on what is known as the HUD-1 form, but is formally referred to as a uniform settlement statement. You must receive this at least 24 hours before the closing of the deal.

Lenders and agents are also not allowed to receive kickback or referral fees at any point during a transaction that involves a loan that is federally insured.

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SPOTTING AN ILLEGAL FEE If a member of your settlement is taking a fee in spite of not having done any work to deserve it, you should remind that person (or firm) that RESPA outlaws this, and that what they are doing is against the law. Punishment for this crime can be imprisonment, a fine, or in certain cases, both. If you bring a private lawsuit, you could end up being entitled to up to three times that amount that was charged. And if the case is ruled in your favor, any court costs could end up going to the person or company being tried.

The Department of Housing and Development says that the best point to stop this is where it begins, whether that is an agent, broker, or lender. If that doesn’t work, you could be in a position to sue.

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THE CONSUMER CREDIT PROTECTION ACT In the year 1968, Congress took a stand against another abusive practice: not explaining the cost of borrowing in a way that the everyday person could understand. The language in contracts and documents was so complex that people couldn’t figure out what their charges would be, leaving them incapable of comparing deals between companies. The Consumer Credit Protection Act put an end to that, and led to the creation of other similar laws that protected ILLEGAL KICKBACKS AND consumers, from requiring lenders to notifying REFERRAL FEES applicants why their credit had been denied, After Congress began to take note of outlawing discrimination, and more. real estate transactions including settlement charges that were much too high, they decided When you enter a real estate transaction, whether to put an end to abusive practices that hiked you know it or not, you are putting yourself in prices up for agents. When you’re working with a position to be potentially taken advantage of an agent, it can be difficult to tell when someone by several different people thanks to the variety is taking money from you that they don’t deserve. of individuals that are required to close a sale.

An example, however, is referral fees: your real However, Congress has enacted several different estate agent cannot charge your lender a $250 protections for you as a consumer, reducing the fee for referring you to their services. No one who chances of you being abused by a real estate does not perform a real service connected to the agent, lender, or anyone else. mortgage loan or settlement should be paid a fee.

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7 TIPS FOR FIXING A LEAKY TOILET WITHOUT A PLUMBER

When most people discover a leaky toilet, they immediately weigh the thought of calling a plumber. However, you may easily be able to fix it yourself without any professional aid. Here are 7 tips that explain how to get it done.

CLICK HERE TO LEARN MORE

THE 9 PRINCIPLES OF

BUYING PROPERTY AT A

PUBLIC AUCTION by Daniel Pratt

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Have you been thinking about buying a home at a public auction? If so, you should learn more about how public auctions work before you decide to attend and place bids.

f you are thinking about buying a new home, you may have considered purchasing at a public auction. However, there are considerations you should take into account before you start bidding at public auctions. Some localities have their own rules

and it also makes a difference whether it is a foreclosure sale or a non-foreclosure sale. These principles will help you to decide whether purchasing property at public auction is a good choice for you.

KNOW WHEN THE PAYMENTS ARE DUE The person who buys the property at the public auction is required to pay cash immediately or latest by the next working day. If the buyer is unable to make the payment on time, the property will be re-auctioned on another date. Once the sale is completed in every aspect, the buyer gets the title over the property. The sale proceeds of the property will be used to pay off the debts of the property owner. The first mortgage lenders will have preference over the second lenders in getting their dues paid. In case the foreclosed property doesn’t attract a price sufficient to satisfy the demands of the creditors, the creditors cannot sue the borrower for the remaining dues if the property sold was less than 2.5 acres and was the residence of a single family or a two family. Other kinds of property let you file a deficiency suit providing it is filed within a three month period.

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SOME LOCALITIES HAVE THEIR OWN RULES Should the borrower file for bankruptcy to prevent foreclosing,

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Written in a straightforward manner, with a conversational and friendly tone, “How To Buy Real Estate At Foreclosure Auctions” takes you every step of the way through the purchase process.

CLICK HERE TO LEARN MORE.

$150,000 is the maximum Arizona homestead exemption. Lenders in Arkansas are able to foreclose on mortgages or on deeds of trust judicially or nonjudicially after having an appraisal of the property done prior to scheduling the foreclosure date. If the property selling does not get an offer for at least two-thirds of its appraised value, the property will need to be put up for sale again in a year’s time.

During the second sale, the highest bidder will acquire the property without an appraisal.

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KNOW WHAT HAPPENS IN THE EVENT OF A JUDICIAL FORECLOSURE Should there be a judicial foreclosure, the court will state the amount of the debt of the borrower and give them a short period of time where they need to pay the debt. If it goes unpaid, the court clerk will advise the property to be sold.

A lender may make a bid on credit they are able to either pay part or the total amount found due through the court for the lender to the sale amount of this property. Should the property remain unable to sell for an amount equal to what is due, the 52

lender has ability to seize different property from the borrower. There will be one year from date of sale to redeem the property by paying the amount of the property sale including interest.

KNOW HOW NON-FORECLOSURE SALES WORK This is how non-foreclosure sales work.

A trustee keeps a record in the county recorder’s office in the town where the property is. Within one month the borrower receives a certified letter with information about the default and intention to sell.

The trustee needs to mail a certified letter in five days after the notice is recorded to all parties of the trust deed about the notice of sale. Also, there will need to be a post stating notice of default and intention to sell in a county newspaper within the same area the property is located. This must be listed for one month; the final notice being no less than ten days before the sell date.

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KNOW WHO CAN BID AT THE SALE Anyone including the lender can make

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a bid at the sale. The highest bidder will need to pay at time of sale or no later than ten days after.

Lenders may bid and cancel the owing loan amount including tax, insurance, sale cost and maintenance fees. Once the sale is final the profit is put toward costs of the foreclosure sale and for the obligations of the foreclosed secured trust deed. Next to be paid are junior lien holders. Any funds that are left over are for the first borrower. The bidder that wins obtains a trustee’s deed. The borrower can be sued by the lender within 12 months of foreclosure for any funds that were deficient. Any lender has the ability to take you to court for the balance due after your foreclosure.

KNOW HOW THE HOMESTEAD EXEMPTION WORKS If you file for bankruptcy in the hopes of stopping the foreclosure, many states like Arkansas have the homestead exemption depending on your lot size. You are protected with the homestead exemption if the home within the city limits is up to .25 acres. If you live anywhere other than a town, village or city, it needs to have no more than 80 acres. There will be an additional provisional limit of $2500 should the property be between .25 and 1.0 acres in a city, town or village. Homesteads may not include property more than 1 acre. Lenders in

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California have the ability to foreclose on any deed of trust or mortgage by way of judicial or nonjudicial foreclosure processes. If there isn’t a power-of-sale clause, it will require use of the judicial process.

Once the court has ordered the foreclosure, the property will then be auctioned off to the highest bidder. If the sale proceeds of the foreclosed property aren’t sufficient to pay off the creditors in full, the creditors, under certain conditions, can sue the borrower for any amount that remains unpaid.

The law also allows the property owner to buy back the property within a year of its sale.

KNOW HOW THE OVERALL PROCESS NORMALLY WORKS The normal practice is to sell the property without court intervention if the mortgage agreement clearly states that the lender has the full right to do so. If this is the method followed, the lender must file a notice of sale with the records office which has jurisdiction over the area where the property is located. A copy of the notice must be sent to the last known address of the homeowner, too. The notice at the records office must be filed at least two weeks before the sale and the property owner must be informed of the sale at least twenty days before the sale. The lender has to post on the property, too, as well as on a public spot within the

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county a minimum of twenty days prior to the sale.

That notification has to include the place and time when the sale will be held along with the address and the name, address and phone number of the trustee. There also has to be a statement that says the real property is going to be auctioned off.

BORROWERS CAN FIX DEFAULTS UP TO FIVE DAYS PRIOR The default can be fixed by the borrower in order to stop the procedure as long as it’s done by five days prior to this sale. Sales are held any business day between the hours of 9:00 a.m. and 5:00 p.m. They must happen at the exact location designated in the sale notice. Property will go to the top bidder, but the assigned trustee has the right to demand proof of ability to pay all of the total price that the bidder agreed to pay. Lenders will not be allowed to seek deficiency judgements after a nonjudicial foreclosure sale. The borrower will have no rights of redemption. Should the borrower file bankruptcy as a way to save their home, California will have two exemption systems. One will allow for an exemption if the borrower is single and not disabled.

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UNDERSTAND THE PURPOSE OF HOMESTEAD EXEMPTION LAWS Homestead exemption laws have been passed by most states to ensure that the homeowners are not forced to sell their homes if they have nowhere else to go. Others who are eligible for protection under homestead exemption law are senior citizens aged 65 and above and people who are either mentally or physically handicapped.

But the market value of their homes shouldn’t be more than $150,000. Homeowners get protection under this law only when and if they file a petition to this effect at a court. The same law allows people who prefer their homes sold instead of other assets to pay off their debts to keep the sale proceeds of their homes for six months. But there is a ceiling for the maximum amount they can keep; $18,675.

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At this point, you may have decided that purchasing a home through a public auction is not for you. Or perhaps you are even more motiviated about the idea. Or maybe you are still confused and need more information before you make a decision.

Whatever the case, you should definitely speak with a real estate professional to learn more about your options. Best of luck finding a great new home!

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WHAT YOUR DENTIST DOESN’T WANT YOU TO KNOW

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YOUR 7-PART BEGINNER’S GUIDE TO BECOMING A LANDLORD by Sandra O’Connor

If you are considering renting your home, you need to follow the rules. There are many rules that landlords must follow and you must learn about them as soon as you can.

Need advice on managing rental properties? Leigh Robinson’s “Landlording” is widely known among landlords and landladies as their bible.

CLICK HERE TO LEARN MORE.

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any homeowners consider renting their property as a way to generate income. However, there are rules regarding renting property. There are also many things you should consider before deciding that you will in fact rent your home instead of living in it yourself or selling it.

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WHERE SHOULD YOU START?

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LANDLORDS NEED TO BE ORGANIZED

Becoming a landlord is something you have been considering. Where to begin? First you need a property before you can rent it out. Properties vary from good to mediocre. There are, however, chances you take when owning a property and renting it out. The gambles can be big or little. To decrease your risks utilize your common sense, good management and appropriate ownership. The largest gamble you stand to lose is your investment. There are a variety of ways you could lose the equity in a property valuing $300,000.

You may make the mistake of not owning property insurance. Your property can completely disappear into a heap of ashes because of a disastrous fire. You can prevent this situation from taking place if you make sure you have an insurance policy that covers this type of damage to your home.

Additional hazards demand that you apply excellent organizational skills.

Make sure you do not avoid the payment of taxes, or you take a chance of losing your home. You need to make sure you keep track of rent payments, which is not a difficult task. You need to provide your home with regular maintenance procedures and keep your home in good condition. An additional danger is that you might commit a crime and end up in jail. There are severe penalties that the law can levy against landlords.

You could end up facing a civil or criminal penalty, without intentionally breaking any law. Does it make sense financially to be a landlord? Yes, in most cases. As a landlord your investment is owning real estate. This results in an uncommon financial situation for the landlord. No other investment is really similar to real estate.

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RENTING YOUR REAL ESTATE HELPS YOU RECOUP YOUR INVESTMENT

Real estate can be touched, felt and used. A paper stock certificate or bond just is not in the same category. The beauty of real estate investing is that it is the only investment you don’t need your own money to purchase.

For example, say you wanted to acquire a property worth $100,000. All you need is a percentage of the value or down payment to get a hold of the property. It is common

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practice for a bank to make a loan on a house or building. If you had the nerve to ask for money to buy stocks or a CD they would laugh you out the door. The best part is, your tenants pay rent allowing you to pay the bank back. Each month they pay you are one step closer to recouping your investment. By renting the property out, you are making your investment dollars back from the purchase.

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THERE ARE MANY INCENTIVES FOR INVESTMENT PROPERTIES

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RENTAL PROPERTY CAN BE QUITE VALUABLE

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AS MANY AS 3 OUT 10 OF AMERICANS RENT THEIR HOMES

There are many incentives to owning an investment home. One being that you may qualify for some pretty nice tax benefits. The amount of money you are going to make off renting these properties is really up to the landlord. You really will get out what you put in when it comes to this investment. If you are a pushover, you might want to find a new line of business. Just like in any venture, you need to keep an eye on what you’re spending and what you’re making. When a problem arises, you need to correct it. If a renter ceases paying their rent, you need to remedy the situation in order to keep your money coming in. If you start spending too much, your income will go down. Once you’re taking in more money then you’re putting out, a rental property actually becomes valuable.

Each year, the property should be worth more money. If you’re carrying a mortgage, be sure the rent you’re charging will cover it completely.

That way, the renter is paying the mortgage for you.

Look into the elementary facts of making money from a rental property. Property that earns $200 monthly in positive cash flow adds up to $2,400 a year. This seems minimal, however consider how it appreciates and equity goes up each month when your loan balance goes down. Your mortgage balance goes down each month and your property is worth more when your equity increases. People have to live somewhere. Data varies, but basically, 1/3 of people rent homes.

The U.S. Census Bureau says approximately 30% of the people rent homes instead of owning.

Rental units usually tend to be in high demand.

The demand for the rental properties is many times affected by the state of the local economy.

During times of high employment, employees seek housing that is close to their workplace, especially when companies recruit workers from outside of the local area. Industries like health care, transportation and retail, which support the demands of local employers, add additional 58

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demand to rental housing. Basically, the lower the unemployment of an area, the higher the need for rental properties. This is due to the amount of people living in the area for work.

During an economic downturn, people lose their jobs and vacate the rented property they live in. There will be very few people looking for houses to rent. On the other hand, when the economy is doing very well, more jobs will be created and more workers will be in need of houses to live in.

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WHERE SHOULD YOU PURCHASE A RENTAL PROPERTY?

If you are planning to buy a house, buy it at a place where there are more workers from outside. Industrial centers will have more demand for rented houses. Rental houses are always in demand but the degree of demand changes according to changing economic situations. Some people say that being a landlord is quite difficult but others differ on this view. An investment in real estate differs from paper securities for which you get only a paper certificate if you make a $100,000 investment in stocks. You get something tangible with real estate, but it also requires care and maintenance. You need to clean, fix and replace things. And you need to find good tenants so

that they become good customers of yours.

As you can see, there is really a lot to think about when you are considering renting your property. Renting out a house can be a great way to generate income and you may even be able to gain financial independence by renting properties. However, be sure that you play by the rules and do not break any laws in the process. Best of luck to you!

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YOUR 9-PART CHECKLIST FOR SELLING YOUR HOME FAST by Daniel Pratt

Selling your home can be hard these days, as we are in a buyer’s market. Make it easier for yourself to sell your home by learning the best strategies for home sellers.

I

f you are attempting to sell your home, there are a few different things you can do to try and speed up the process. By having your home professionally cleaned and making any needed renovations and repairs, you make your home look more attractive to home buyers. By casting a wider net and advertising your property to international buyers as well, you can be exposed to a wider audience. Take a look at this checklist so you can learn these tips and more.

1

CONSIDER HAVING THE HOME PROFESSIONALLY CLEANED

Hiring a professional to come in and clean the property up will be an extra cost, but the job will be done in an effective and efficient manner. The fact that you won’t have to do it yourself is well worth the money. It’s important that you find a cleaning company with a good reputation in the community.

If possible, ask around to contractors to see if they would recommend any cleaning services they may have utilized before. It’s important to carefully review any and all work before making a final payment! You should always thoroughly inspect the work before paying fees to your contractor.

2

DO NOT PAY A CONTRACTOR IN FULL UNTIL THE JOB IS COMPLETED

You’ll find it difficult to get your contractor to fix anything once the money is in his hands. A balance that has not been paid can be a great tool 60

SEC AUCU S REAL ESTATE TODAY | MARCH/APRIL 2016

Most people will tell you to hire a real estate agent if you want to sell your house, but there are alternatives.

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to get a contractor to completely finish the job he was hired to do. Your inspection may find additional work to be done and an honest contractor will always finish what he started. Once all of his equipment has been moved to the next job, it is a costly endeavor for him to come back to your job. Save you and your contractor the money and trouble by carefully inspecting what he does in your home while he is there waiting to be paid.

3

CALCULATING YOUR RESALE VALUE

What should you do in order to calculate your resale value once you’ve made your changes? The first thing is to figure out what you spent time and money wise on searching for items, buying them and making the actual repairs.

Keep a tally as soon as you begin your research.

Research includes scouting other homes with similar amenities to get an idea of what the market

potential is for your home. The price on your house should be set as close as possible to the lowest prices on other comparable homes. Make sure that the house is ready to be moved into right away and is appealing to anyone who walks in. Getting a sale shouldn’t be hard if your house is in top shape.

What online resources do you use to advertise the properties you’ve fixed up?

4

ADVERTISE TO BOTH NATIONAL AND INTERNATIONAL BUYERS

There is a lot of international interest in affordable properties up for sale in the United States. Make sure that you are marketing the property for sale to all interested parties whether local or international. Your best bet is to get in contact with a real estate agent that has the ability to list your property for sale to a large audience of potential buyers. They will be able to give you tips on what’s going to get your property sold one way or

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the other. Have your correspondence ready when a potential buyer makes contact with you about your property for sale. Email is more than likely going to be your main source of communication with buyers.

5

CREATE A PRE-WRITTEN EMAIL MESSAGE FOR INTERESTED PARTIES

Pre-write a message that has the property specifics listed, what you are asking for the property, address and maybe even a Google map of surrounding area. Attaching a few small photos of the property is a good idea. Just keep them small so there are no downloading issues on the buyers part. If you are using a classified ad, throw down the extra money to make your ad stand out. You don’t want your property getting lost in a sea of other classifieds. Make sure that your phone number, your e-mail address and a link to the website where the listing is posted are all included.

6

LIST A TOP CREDIT SCORE REQUIREMENT

You can also help to streamline the process by listing a top credit score, minimum down payment requirement or other terms so that 62

you will only get serious inquiries. Try to make your “for sale” sign look professional instead of just preprinted with a phone number scribbled in. It can pay off in the long run if you have a professional sign printed up with your contact information. If you have a website, you can also include that on the sign that you have printed. What is the best way to utilize property brokers in your home selling strategy? Simply inform the broker that you will pay a commission for a qualified buyer.

7

ASK YOUR BROKER TO HELP FIND BUYERS RATHER THAN LISTING

Impress upon the real estate broker that you do not wish to have your property listed, but you only wish to have assistance with locating prospective buyers. The broker may agree to this arrangement, especially if you offer a commission similar in structure to ones he or she would earn for selling properties for other brokers. Also, put all details in writing in regards to the commission split with your broker and ensure that there is no language in the contract giving your broker exclusive property selling rights.

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HOW TO PRE-QUALIFY POTENTIAL BUYERS

When you have potential buyers interested, it’s time to start the pre-qualification process. Make sure that they have the necessary funds to make the down payment, for a start. Then, ask what they currently pay for rent and how much they can afford for a monthly house payment. Next, check on the status of their credit rating. Then, ask about how soon they want to buy the house so that you can estimate how long closing on the property will take. If the responses you receive do not meet your personal standards, kindly let the person know that he does not meet the requirements for the home, but be sure to tell him that you will let him know if a better option becomes available down the road. If you feel they may be a great candidate for a different deal, make sure you save their information. If you don’t believe they would get a loan, just discard their information.

9

CONSIDER OWNER FINANCING

In order to get a fast sale to a qualified person, how can you use seller financing?

One option that you may want to consider when

attempting to expedite the sale of your home sale is owner financing. If you want to utilize this option, ensure that you completely investigate the prospective homebuyer’s finances and criminal background. Ask the homebuyer to complete a request to release a consumer credit file, which will give you an idea about his or her overall finances.

Also, ask the buyer to complete a written consent for a background check. Use websites that specialize in running criminal backgrounds to assist you with this and use the findings to determine whether the prospect is a good fit for your property.

With all of these strategies at your disposal, you can greatly speed up the process of finding the right individual to buy your home. Keep in mind that many people consider this a buyer’s market right now and you may need to drop your asking price slightly in the midst of negotiations to remain competitive. So be sure that you take that into account when setting your asking price so that you have a little bit of wiggle room for negotiations down the line. Best of luck selling your home!

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Town Of Secaucus New Jersey

Event & Meeting Calendar March 2016 SUNDAY 28

MONDAY 29

Open Gym - Carnival Night 5:00 pm - 8:00 pm Open to grades K-8

6

TUESDAY 1

Alcoholic Beverage Control Board Meeting 7:00 pm - 9:00 pm

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8

WEDNESDAY 2

THURSDAY 3

FRIDAY 4

Read Across America 11:00 am - 12:00 pm Sewing Circle 3:00 pm - 7:00 pm Senior center 101

Non-Fiction Book Club Meeting 7:00 pm - 8:00 pm

9

10

Library Book Swap 10:00 am - 2:00 pm

11

INTERNATIONAL WOMENS DAY

St. Matthew’s St. Patrick’s Day 2:00 pm - 5:00 pm

Municipal Utilities Authority Meeting 7:00 pm - 9:00 pm

13

14

Caucus Meeting 5:00 pm - 6:00 pm

12 Meet Farmer Margaret 11:00 am - 2:00 pm

Mayor & Council Meeting 7:00 pm - 9:00 pm

Sewing Circle 3:00 pm - 7:00 pm Senior center 101

15

16

17

SMS Tricky Tray 6:00 pm - 10:00 pm

St. Patty’s Day Celebration 12:00 pm - 1:00 am

St. Patty’s Day Celebration 6:00 pm - 11:59 pm

Celebrating St. Patricks Day and the 50th Anniversay of Charlie’s Corner

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19 Easter Egg Hunt, Breakfast With The Bunny, & Bake Sale 9:00 am - 12:00 pm

Daylight Savings Time - Spring Ahead St. Patty’s Day Celebration 12:00 pm - 1:00 am Celebrating St. Patricks Day and the 50th Anniversay of Charlie’s Corner

SATURDAY 5

Street Sweeping Resumes Regular street sweeping resumes

Library Board Meeting 7:00 pm - 9:00 pm

Psychic Fair 12:00 pm - 6:00 pm

Board of Adjustment Meeting 7:00 pm - 9:00 pm

Poetry Discussion Group 7:00 pm - 8:00 pm

Sewing Circle 3:00 pm - 7:00 pm Senior center 101

Senior Citizen St. Patrick’s Luncheon

Millennial Book Group 6:30 pm - 7:30 pm

St. Patrick / St. Joseph Dinner 6:30 pm - 9:30 pm

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21

22

23

24

25

26

Housing Authority Meeting 7:00 pm - 9:00 pm

Good Friday

31

1

Planning Board Meeting 7:00 pm - 9:00 pm

Breakfast with the Easter Bunny from 9:00am - 11:00am

Caucus Meeting 5:00 pm - 6:00 pm

27

Board of Health Meeting 7:00 pm - 9:00 pm

Mayor & Council Meeting 7:00 pm - 9:00 pm

28

29

30

- Town Hall Closed

2

Town Of Secaucus New Jersey

Event & Meeting Calendar April 2016 SUNDAY 27

MONDAY 28

TUESDAY 29

WEDNESDAY 30

THURSDAY 31

FRIDAY 1

SATURDAY 2

3

4

5

6

7

8

9 Meet Farmer Margaret 11:00 am - 2:00 pm St. Patty’s Day Celebration 12:00 pm - 1:00 am

10

Municipal Utilities Authority Meeting 7:00 pm - 9:00 pm

Alcoholic Beverage Control Board Meeting 7:00 pm - 9:00 pm

11

12

Caucus Meeting 5:00 pm - 6:00 pm

17

Celebrating St. Patricks Day and the 50th Anniversay of Charlie’s Corner

Senior Citizen Spring Fling Senior Prom 5:00 pm - 8:00 pm

13

14

15

16

Board of Adjustment Meeting 7:00 pm - 9:00 pm

Mayor & Council Meeting 7:00 pm - 9:00 pm

Pump Boys and Dinettes - Paper Mill Playhouse 5:30 pm - 10:30 pm

Legall Blonde MS/HS Play

Legall Blonde MS/HS Play

Legall Blonde MS/HS Play

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19

20

21

22

23

Legall Blonde MS/HS Play

Board of Health Meeting 7:00 pm - 9:00 pm

24

25

Library Board Meeting 7:00 pm - 9:00 pm Planning Board Meeting 7:00 pm - 9:00 pm

26

Secaucus Fire Dept Community Ball

27

28

29

30

Arbor Day Celebration Caucus Meeting 5:00 pm - 6:00 pm

Fiddler on The Roof 5:00 pm - 10:00 pm

Mayor & Council Meeting 7:00 pm - 9:00 pm

Housing Authority Meeting 7:00 pm - 9:00 pm

Town Wide Garage Sale 5th Annual Best Meatball 6:30 pm - 9:30 pm

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NEXT ISSUE! The May/June edition of Secaucus Real Estate Today Magazine will be available this spring for free!

• BEFORE YOU SELL YOUR HOME, IT MUST BE INSPECTED • 7 MISTAKES MANY HOME BUYERS MAKE • MUST-KNOW HOME INSPECTION TIPS • THE IMPORTANCE OF DISCLOSING HOME DEFECTS • NEW JERSEY FORECLOSURE LAWS

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