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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label agents. Show all posts
Showing posts with label agents. Show all posts

August 23, 2012

5 Real Estate Investor-Endorsed Tips For Buying a Home

Hi Folks,
   The weekend is here. By a virtual show of hands, how many of you will be house hunting this weekend? For those of you that rose your virtual hand as a "yes" to house-hunting, do you feel anxiety about buying a home? Do you feel like you might not be able to keep up the payments, but you really love the home, and you turn a blind eye to any of it's flaws?

   "Most people only buy a couple homes in their lifetime. This lack of experience leads many home buyers to feel woefully unprepared...", says Justin Pierce, a real estate investor in Northern Virginia. It certainly is a big move for most of us, but as Pierce writes in his story on the Washington Post website, "you’re not getting married. You don’t have to make a lifelong commitment to a home", and adds that you can always move later "if you fall out of love with your home, as long as you buy right."

   Pierce writes that he buys a home "almost every month", and admits that even with his experience, "it’s hard to know whether to pounce on a deal or to walk away", but says that the process doesn’t have to be so complicated "if you keep things in perspective."

   There is a set of rules that he relies on when buying a house, and he says that these same rules can be used by anyone buying a house.Pierce shares his wealth of knowledge here to give us some great tips:

Tip #1: Determine your needs for the next five years:
The number one priority is affordability, says Pierce, who suggests that you consider all the costs (including maintenance and utilities). A great example is any unplanned expenses, such as your cesspool overflowing all over your basement the first week you move it (yes, that's what happened in our home!). The cost for removing the carpet that was just put down 2 days earlier, pumping the cesspool, and putting new carpet down was a $2,000 very unwelcomed surprise!). Pierce muses about the folks who buy "half million dollar McMansions and then fail to maintain them", urging you to "buy the right size home; bigger is not always better".

Tip #2. Get the facts:
Pierce says the the number one rule is "do not overpay for a home", and says that he never buys on future value (and refers to that as an illusion that got many of us in trouble). He suggests being realistic if estimating the cost of repairs the home will need. Conversely, he cautions us not to let a home inspection "scare you away from a good deal", and he provides an example of a friend who had the opportunity to purchase a $650,000 home at a short sale for just $520,000, but walked away after the inspector "found a laundry list of items that needed repairs". Albeit a "scary" looking list, as he called it, it was about $20,000 of work, leaving the remainder as over $100,000 in equity. Remember: "Get the Facts !".

Tip #3. Don’t fall completely in love:
"When I’m remodeling a home for resale and I’m faced with a decision to either improve the home’s insulation or make the home more beautiful, I’m almost always forced to beautify.", says Pierce, who says that people who lack experience will rely on their emotions. He adds that Real Estate agents are well aware of this, and this is why they try to "decorate and stage a home so that people fall in love and forget the facts". He cautions that if you fall prey to your emotions, you can get into "bidding wars and overlook discrepancies that need more attention". The final point he makes on this tip is that "It’s much easier to replace kitchen cabinets some time down the road than it is to reinsulate a home. But people aren’t concerned or willing to pay for what’s behind the walls. They should be."

Tip #4. Get professional help:
Pierce says that "Real estate agents, home inspectors, appraisers, lawyers, surveyors and contractors are all valuable resources but they’re no good if you disregard their advice.", and he says the key here is "to trust but verify. In terms of a Real Estate agent, speak with many different agents and ask for references, until you find one that you are comfortable with. Once you are working with an agent, ask your agent to go over comparable sales with you, and "not just spit out a value", as Pierce says, since this will "help you feel confident about your offer and reduce the risk of complications from a low appraisal."

Tip #5. Don’t be afraid to pull the trigger or walk away:
OK, so you have all of the facts about a house that you are incredibly fond of, and if "the price is fair and affordable then don’t be afraid to seal the deal", says Pierce. On the flip side, if the price is above the market value or the price does not take into account the amount of work it needs, Pierce recommends that you, "remind yourself that there are plenty of other houses to choose from".

   Certainly some great tips here, but sometimes, when in the heat of battle and bidding for a home, it's easy to lose perspective. Pierce aptly sums up what your mindset should be during the process; "Remember a house is just sticks and stones and there are plenty of them out there. You make it a home."

   If you were going to add a "Tip #6", what would it be? Please share it with us here.

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstateInvestor #Homebuying #ShortSale #HomeEquity #BiddingWar #Agents #HomeInspectors #Appraisers #Lawyers #Surveyors #Contractors

August 7, 2012

Licenses Revoked At Record-Levels Industry-Wide

Hi Folks,
   With the Real Estate market starting to bloom again in many parts of the country, this is a much-anticipated time for many folks in our industry to shake off the pain of the past few years, put our chins up, and keep the market chugging.

   For those of us who have worked within the guidelines that are mandated by all-levels of the Government, as well as the State Real Estate departments, we will start to reap the joys of an up market. However, the actions of some folks who walked outside those lines, are now showing up in license revocations in multiple sectors of the Real Estate industry.

   "The California Department of Real Estate said it revoked a record number of real estate licenses in the recently completed fiscal year", states a recent article from Mark Glover on the SacBee.com website. The figures from fiscal 2011-12 showed a jump of 14% in revocations, along with a record number of "license surrenders from licensees facing disciplinary action", and these figures jumped to 1109 suspensions from 553 suspensions about 5 years back (Just about the time things took a bleak turn in the market). Indeed, as Glover writes, the California Department of Real Estate attributed the "collapse of the real estate market" as a contributor to the jump in revocations and suspensions.

   These actions are not confined solely to Real Estate Agents.

   A Real Estate Appraiser in Maine just recently had his appraisal license revoked, per an article on the website, BangorDailyNews.com. As a matter of fact, the Maine Department of Professional and Financial Regulation issued a press release regarding this particular case, in which they stated that the Board "has received indications" that this individual may be "continuing to conduct appraisal work, and may also be committing the same violations of Maine law that led to the revocation.” These violations came to light after complaints that the appraiser had a pattern of "taking money from property owners but failing to provide a promised appraisal or submitting an incomplete appraisal months late", per the article.

   Another such revocation involved an Auctioneer in Evansville, who was accused of, "colluding with two people to bid up the price of a house, even though neither of the two had any intention of buying the property", per a recent article by Jim Leute on the website, GazettExtra.com. The violation stems from a real estate auction in 2008 when the auctioneer allegedly asked relatives of the sellers to bid on the house. One relative opened the bidding, and the other bid several times, according to the state order against the auctioneer. In this case, the State agency said that he (The Auctioneer), "knowingly escalated or attempted to escalate bidding through collusion with another".

   So, the market is turning around, but as always, keep your head in the game.

   As the California Department of Real Estate stated in the article by Glover, "the large number of financially stressed homeowners set the table for scammers involved in foreclosure rescue and short-sale scams". Bill Moran, DRE enforcement chief and acting chief deputy real estate commissioner, said that "Consumer education is the key piece to really protecting consumers". Similarly, in the Maine case, the Board Administrator "encouraged property owners to report any appraisal dealings they have had" with the Appraiser in question.

   Be Vigilant!

   What can you suggest to make sure folks don't become victims to scams, theft, collusion, and other crimes?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
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3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstatemarket #California #departmentofrealestate #license #revocations #suspensions #agents #appraiser #Maine #propertyowner #auctioneer #collusion #bid #foreclosurerescue #shortsale #scam

September 17, 2010

Lucky Number 100 !

Good Morning,

   As you may be wondering about the odd title of this post, today we're celebrating our 100th Blog Post (Woo Hoo!). In looking back over the past 99 previous posts, we have listed our top 5 posts (based on traffic and votes), in descending order:

#1: "5 Tips For Buying a Second Home/Condo for Investment or Vacation"

#2: "Has the Housing Market Impacted Curb Appeal?"

#3: "Short Sales - What Do You Need to Know?"

#4: "Are Timeshares Truly Related to Real Estate Investing?"

#5: "Right Time to Buy? Top Real Estate Investing Markets"


CONTEST NEWS FLASH:


   We want to take the time and thank you for being loyal readers of our Blog, and we invite you to receive a hard copy (PDF) of some of our earlier posts ("oldies, but goodies").
   For the first 10 people who send an E-mail to homebuyer@lease2buy.com with the subject, "Lucky Number 100 Blog Contest", we will send you a copy of this via return mail.

   Did you send the mail yet? These contests close very quickly, so don't delay.

   We hope to post 100,000 more entries that will entice you, inspire you, and enlighten you.

Have a Great Weekend, and Happy Rent-to-Owning !!

August 18, 2010

Short Sales - What Do You Need to Know?

Hi All,


   Happy Wednesday to you. In keeping with our promise to tackle every topic you threw at us a few weeks back in that now "famous" Blog Post, today we are going to discuss some tips and strategies when pursuing Short Sales.

   A conversation about Short Sales would be incomplete without looking at it from two viewpoints: that of the Buyer (Broker or Investor), and that of the Seller (The Homeowner), and we have spoken with a few experts in the field who will discuss both viewpoints.

   First, we will examine things from the vantage point of the homeowner (the Seller). Geena Becker, of Geena & Company/William Raveis Real Estate & Home Services reminds us that the credit score is bruised on a short sale vs a foreclosure - "whereas foreclosure your credit score is driven down 200 points and banks will loan money to a bankruptcy victim before they loan to a foreclosed victim.". Becker also states that the banks pay for the attorney, realtor commissions, and back taxes, but will, "not pay any liens on the property. Those liens have to be negotiated OFF before the approval."

   In addition, Allan S. Glass, President of ASG Real Estate Inc. adds that, "The bank is settling a bad debt. Anything and everything they can extract from you regarding financial information will be used to that end, there are no casual off the record conversations with the banks while they are collecting your debt". Glass warns that you need to make sure you are working with an expert in the field of short sales, and that, "not every agent/broker is created equal and there is a learned skill to negotiating a debt settlement."

   Glass also provides additional pointers, such as to never pay any fee under any circumstance up front ! ("Professional agents will not charge until they are successful in completing your short sale or modification"). Further, he says that you should never sign over title to an investor who will then negotiate with the banks, as you do not need to sign over title to your home to be helped with a short sale. Finally, Glass reminds us that investors who help you with short sales are attempting to buy your home for a discount in order to make a profit, and that, "Not that anything is wrong with that when reasonable, however make sure you ask what happens if they cannot negotiate a purchase price low enough for them to invest."

   From the Buyers point of view (broker or investor), Becker provides some important pointers:
   1. You Will be buying "as is"
   2. You may be subject to more than one banks approval
   3. The Buyer won't know if the seller's loan was an FNMA (takes longer).
   4. If seller has it in their contract to make it subject to not receiving a deficiency judgment tied with short sale appraisal - there is a 50/50 shot of getting that wish.

   Further, she says that she will, "always find out if the mortgage they are late on was their mortgage that they first had when they bought the house. If so, nationally the bank CAN NOT go after the sellers with a deficiency note or promissory note on the difference. With the bank knowing it can come into play in a short sale negotiation since they know they can't come after the seller or borrower for the deficiency. If they have re-fi'd meaning it was not the "original" mortgage they will not have that slam dunk protection."

   Glass also provides some pointers in reminding us that, "the banks are motivated by values. They will do a short sale if they make more money by doing so compared to completing the foreclosure process", and that, "the bank and the seller are NOT working together to get the highest price from the buyer." Glass tells us that the best strategy is, "for the seller and buyer to work as a team to deliver the best value to the bank.". He warns that you must, "understand the numbers (as a broker or investor) and have a strong understanding of market value. Compare what the bank will net as a short sale vs. foreclosure / REO sale".

   As for timing, Glass says that it is key to, "follow up, follow up, follow up. If you are not following up the bank is not working on your file!", and Becker suggests that you make sure the buyer is very clear that this will not be a normal closing time frame, and that the buyer has to be able to, "wait without having to move in." and tells us, "I have had a lot of short sales last year especially where the buyers walk 1/2 way through my negotiating process and I have to start all over again. The buyer's agent must get it through to their clients that they can not be in a hurry. Good deals come to those who wait..."

   This is good sound advice from some seasoned Short Sales Professionals. Do you have any additional tips to share with our readers? We welcome your comments below.

Have a Great Day, and Happy Rent-to-Owning !

July 26, 2010

Homeowners who Built their Own Home, Part 3 of 3

Good Morning,


   Welcome back. Hope your weekend went well. Aside from some painfully stifling humidity here in the Northeast and some massive storms, it was nice to get together with some family (and to take shelter when the storms hit !)

   Today, we will be completing the final installment on our series on the Home-building process, and we will be hearing from some people who have gone through the process of building their own home. This will provide some valuable insight and tips from people who have already gone through the process, from start to finish.

   We spoke with a couple of homeowners who built their own home. One of the people that we spoke with and who built her own home in Washington State is K.S.Brooks, who is also an author, and we also spoke with Richard Keycon, who built his own home in East Central Alabama.

   Brooks suggests getting to know all of the "local building permit requirements before you buy your parcel and start your project.", as counties usually have different requirements, and that it is important to know the Building Department Inspectors and Coordinators.

   Keycon adds that once you identify the area, you need to find a land agent, and drive around to see every part of the property. They were looking for a very specific parcel, with about "20-30 acres, not many neighbors, a creek, maybe a pond or pond site, and a good building site." Once they settled on the property and purchased it, they asked their land agent and some locals to recommend a builder. Once they selected the builder, they agreed on the building fee, and moved forward from that point.

   The entire process involves a lot of work, as Brooks states, and she says that you should, "Be prepared to be at the house every day either working on or managing the project." and to "take responsibility" for it. She also said to never use the response, "whatever you think is best" when the builder ask you to make choices.

   Both Brooks and Keycon both agree that you need to do your research and comparison shop well in advance, since some items require lead-time for delivery, i.e appliances, counter tops, plumbing fixtures, lighting fixtures, windows, doors, etc.

   As far as environmental impact, Brooks summarizes it as, "Lean towards green, but don't be over-zealous.", and gives us this specific example, "We explored installing a Geo-thermal heating/cooling system for our SIP (structural insulated panel) home. Because SIPs are air tight and incredibly efficient, and with the low cost of hydro-powered electricity in Eastern Washington, it would have taken us 20 years to reap a return-on-investment for Geo-thermal. Instead, we went with a high-efficiency wood burning fireplace, with standard HVAC as a back-up. The result: our 1700 square foot 100% electrically-run house is generating electric bills under $60 per month."

   In closing, Brooks states that it is vital to make lists for everything (parcel, vendors, materials, etc.), and Keycon agrees and says that planning is key and that when searching for a builder, to remember that, "All builders are not created equal".

   We definitely hope that this series has been helpful to you in one or many ways. Remember that there are many builders who build homes and will then Rent them with an Option to Buy (Rent to Own Homes), so it requires a little bit of homework on your end to find these builders.

   If you have any question, we area always available to respond to them. We will be back to our regular Blog posts on Wednesday, since we have a lot of interesting information and topics to cover.

Have a Great Week, and Happy Rent-to-Owning !

June 16, 2010

A Viable Option and Some Promotional News...

Happy Wednesday to Everyone,

Hope you're all having a great week.

I just returned back here after a meeting with a panel of Realtors (Agents and Brokers), along with a mix of people who are selling their homes. Surprise/Surprise; a majority of the homeowners have been just sitting on their properties, and some have engaged the services of these Realtors to help them along.

We were there, at the invitation of some good-hearted Realtors, in order to present the concept of Rent to Own, and to let them know it is a viable option. Realtors know that if they place their clients homes on our website, and there is movement, traffic, and offers on the property, they look like magicians, especially nowadays. Rent to Own is moving away from the title of a "creative real estate deal", and is becoming more of a mainstream option.

OK, website news: At your request, we have added the "Site Map" option back to the bottom of every page on our website. We apologize that is was removed, but it was only for a few days for some testing, and we thank those of you who notified us about this. Further, we are toying with the idea of mentioning some of the latest Rent to Own Home listings and Rent to Own Buyer listings in our Blog posts. Is that something that would interest you? Please let us know.

PROMOTIONAL NEWS:
Please remember that for any 3-Month (or longer) "Home Available" Ad (if you're Selling a Rent to Own Home) or "Home Wanted" Ad (if you're buying a Rent to Own Home), you will receive a free copy of "Secrets of Rent to Own", which is a great guidebook for anyone buying or selling a Rent to Own Home (More info on this book here: Click Here).

In order to take advantage of this promo:
If you are Selling a Rent to Own Home, Click Here, and,
If you are Buying a Rent to Own Home, Click Here.
After checking-out, the book will be available for download upon log in.


Have a great day, and Happy Rent-to-Owning !!!