Entries from January 2007
What does the phrase “title search” mean to you? Aside from an activity at the local library, its purpose is critical to the successful sale of a home. A title search is performed by an attorney in order to guarantee that there are no unknown liens on or claims to a property. Because title searches are often ordered only after a purchase contract is on the table, problems can suddenly turn up at the eleventh hour, causing delays in the closing. That’s why it may be advisable for the sellers to request a title search before even listing their property for sale. What sort of problems might a title search unearth? There might be an “unreleased mortgage,” which happens when a previous refinance is paid off, but the lender fails to file a release on the old mortgage. Property taxes may appear to be unpaid until filing errors are discovered. A divorce or death in the family may not be properly reflected in the ownership structure. Sometimes property records are fraudulently used to commit identity theft.
This is not to say that these errors are common, but they are increasingly prevalent among properties that have changed hands several times over these last few years of frenzied real estate activity. Speak with an agent before listing your home to determine whether a title search is appropriate.
Categories: Articles of Interest
Real estate is experiencing an unusual adjustment these days. Unusual, because in the past, sales declined due to either high interest rates or economic slowdowns. Neither of those factors exist right now, so where does the blame lie?
Quite frankly, one of the biggest reasons that home prices rose to such artificially high levels was because of a frenzied degree of investor speculation. “Flippers” would buy and then sell homes just for a short-term gain. The truly negative effect that this activity had was to drive home prices so high that most median-income families could not afford homeownership. Now, as prices come back down to realistic levels, more middle-class buyers are capable of making the purchase. Sellers are beginning to realize that they have enjoyed substantial gains in equity and appreciation over the last few years. A price reduction of five or even ten percent is unlikely to erase those gains. Realistic pricing by sellers encourages more sales. As more sales happen, inventories will again drop.
As inventories drop, home prices will begin climbing again (at a more reasonable rate this time). Real estate agents are prepared for the cycle to continue, and you should be too. There is no need to panic when pricing adjustments are actually leading to a positive impact on your financing ability and the long-term value of your home.
Categories: Articles of Interest
When you prepare an offer to purchase a home, be sure that “uninvited guests” don’t appear at the closing. The guests I’m talking about are termites! Although termite inspections are not always required, you’ll find that most lenders will not approve a loan without one. A report prepared by a licensed pest control company will show if there is any presence of termite damage, or if there is any evidence of treatment for the wood-destroying insects. It isn’t a guarantee that there aren’t any termites present – it only reports visual damage or treatment.
Who pays for the inspection? That comes down to local customs and negotiation and between the buyers and the sellers. When buyers pay, it’s easy to avoid any conflict of interest by being sure to use a pest control company that is different from the one currently servicing the home. This ultimately protects the sellers, too, because if problems show up later, it can be shown that the buyers conducted an independent and objective inspection. Again, understand that the inspection and subsequent report will not prove or disprove the existence of termites, but buyers who ignore this important issue during the purchasing process could be asking for trouble later on down the road. If you have any questions or concerns, consult with the real estate agent and move forward with confidence.
Categories: Articles of Interest
I just received this special video from my friend Dave Ramsey.
It shows simply what I have been telling my friends and clients all along.
Below is a short introduction about the video:
We Americans love our cars, don’t we?
How many times have you heard (or said), “I’ll always have a car payment”?
That’s the normal way of thinking. But NORMAL is broke. We want to be WEIRD!
Think about it:
What if you decided to STOP messing with car payments?
- What if you invested that old car payment every month instead of giving it away to the bank?
- What if we showed you a six-year plan that would put you in free cars for the rest of your life?
- What if that plan also made you a millionaire?
- Interested?
Click Here: To Play video
P.s. My wife and I just paid off our Camry on Monday… TWO years early! Enjoy the video
Categories: Articles of Interest
Listen to today’s show: CLICK HERE
This is one of the most important radio shows ever!
If you want to learn how to have both a successful real estate investment business and a full-time professional job, you have to hear this.
Interviewed by Jay Papasan, co-author of The Millionaire Real Estate Investor, Tamara Fuller from Columbia, Maryland, explains how she specializes in investing in high-end rentals, flipping distressed properties in emerging neighborhoods, and finding ways to do deals that have fallen through with other buyers.
You will also learn what I think is the most important reason why it doesn’t make sense to have year-long rental contracts anymore.
Also, to receive a free report on “Why Multifamily Homes Are Better Than Single Family Homes” call free recorded message 1.888.462.3771 ext. 301
Click below to have the show automatically come to you every Monday:
Categories: KJAM Radio: Investment Real Estate Corner Show · Real Estate Investing
Homeowners who are preparing to sell realize there’s quite a bit of competition out there. While presenting your home in model condition is one of the best ways to win the attention of potential buyers, be careful to avoid the pitfalls of improvements that may not produce the full-price offer you are seeking.
First and foremost, do not try to out-do the other homes on the block. Yes, you want your home to stand out, but not so far out that your asking price will have to be significantly higher than those of the homes around you. You’ll price yourself out of your own neighborhood while waiting and waiting for those offers.
Second, “if ain’t broke, don’t fix it!” Don’t waste your time and money on improvements that may not pay off. You can’t know for sure if buyers will respond positively to your idea of “improvement.” Why put in $3,000 worth of new carpeting when your buyers might want hard wood floors? Just stick to the basics.
Speaking of basics, the most important rule to follow is that of regular upkeep on your home. Keep your gutters cleared, apply fresh paint to the exterior, and trim your yard. Buyers have plenty of imagination, and if you just present them with a clean and functional canvas, they’ll easily envision the home of their dreams.
Categories: Articles of Interest
