To-Do List for First-Time Home Buyers

Buying your first home may seem intimidating at first, but the process becomes much easier when you have a checklist of things to follow. The steps on this First-Time Home Buyer's To-Do List should include:

1. Save

Before you even consider looking at houses, you'll need to save money to cover your down payment and your closing costs. Rework your budget and find ways to put as much money as you can into a savings account on a regular basis. Shop around to find a savings account that pays a relatively good interest rate on your hard-earned cash.

2. Improve Your Credit Score

While you're working hard to build up your savings, consider what you can do to improve your credit score. Catch up any late payments and stay current on any new bills that arrive. Pay down any outstanding credit card balances, but don't cancel the cards.

Any steps you take to improve your credit score before you purchase your first home will help you to qualify for more competitive interest rates on your mortgage.

3. Calculate Affordability

There's no point looking at homes to buy if you aren't certain how much you're able to borrow. Take some time to work out how much you can afford based on your current financial situation.

Regardless of what your maximum borrowing capacity is, spend the time calculating what your monthly repayments will be. There are plenty of good online mortgage calculators available to help you with this step (www.mortgagecalculator.org). Then work out if you'll be able to comfortably afford to keep up with your monthly mortgage repayments and still manage your other living expenses.

If it looks like your budget might be a bit stretched look at ways to reduce your mortgage repayments. You might choose to borrow a bit less or find ways to reduce your interest rates to keep your repayments down as low as possible.

4. Apply for Mortgage Pre-approval

Shop around and determine which lender will give you the best offer on your mortgage. Don't be afraid to ask plenty of questions. After all, it's a big commitment, so be sure you understand exactly what's being offered.

5. Decide What You Want
If you've spent some time working through step three on this to-do list, you'll already know how much you have available to spend on the purchase. Work out what things you want in a home and what things you don't want.

Determine how many bedrooms and bathrooms you really need and what square footage works for your lifestyle. Decide on your preferred locations and work out whether those neighborhoods are convenient for shopping, schools, or transportation. Work out whether you're prepared to do some renovations after you move in, or whether you'd prefer a home that is already renovated.

Create a checklist of 'must-haves' and a separate list of 'want-to-haves' to take with you when it's time to go house hunting.

6. Choose Your Realtor

Speak to realtors who specialize in working with the neighborhoods you're considering and choose one you're happy to work with throughout the transaction.

7. Visit Plenty of Homes

Take the time to physically visit lots of different homes that fit within your criteria. Browsing through listings of homes for sale online is a good start, but it's difficult to get a feel for what the property is really like until you physically visit the home. Take lots of photos to remind you which homes had what features and inclusions.

Rule out any homes that don't meet your criteria checklist items and take careful notes of those that have potential. Soon you'll narrow down your list to a few likely homes that meet your needs and your budget.

8. Research the Neighborhood

When you've narrowed down your choices to one or two homes, take the time to visit the neighborhood at different times of the day and night. Take note of what the traffic is like and what level of noise you can hear at various times. Test-drive the commute to work and determine whether the location is still convenient for your needs.

9. Make an Offer

When you're confident you've found the right home to suit you, go ahead and make an offer. Be sure you use some common contingency opt-outs, including an appraisal contingency, inspection contingency, and add a clause to cover you in the event of losing your job before closing.

10. Schedule a Home Inspection

If your offer is accepted, ask your realtor to schedule a home inspection. It's also a good idea to contact your lender and submit your formal mortgage application for approval.

11. Conduct a Final Walk-through

During your final walk-through, double check that all your inspection contingencies have been met. Compare the current state of the property to any photos you took during your initial visit to verify there is no damage to the property and be sure all the appliances are still in place.

12. Close and Move In

When you've checked off every item on your First-Time Home Buyer’s To-Do List, it's time to close on the transaction and move into your new home! Congratulations! You’re a homeowner!

Before you head out house-hunting for your first home, study this list to be sure you don't miss any important steps. Then work your way through each step until you find the perfect home for you and your family. Most importantly, have fun!

To-Do List for First Time Home Buyers
By: Ken Gordon

Thanks for visiting.  Be sure to check my web site for current listings.

Ken Gordon Real Estate

The Mission:  Superior Customer Service

Helping buyers and sellers discover the secrets to successful transactions so that everybody wins. - USMC Veteran

In Partnership with:

RE/MAX Interactive Realty

Three Things That Make A Great Real Estate Investment

If you’re looking into real estate investments, you likely want to earn wealth on real estate based on risk you are taking, while minimizing the amount of time you need to spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment property. Your goal should be to strive to get as close as possible on as many of these optimal scenarios as possible:

Pays a Fair Cash-on-Cash Return

When you buy property you are taking money out of your liquid financial assets – stocks, bonds, CDs – and investing it into a very illiquid asset – real estate. You were earning a rate of return on your financial assets, such as 4 percent or 6 percent, and you should strive to earn a fair cash-on-cash rate of return on your real estate. To do this, you need to pro forma your deals and buy cash flow-positive properties that earn you decent returns – not those prize properties that are negative, negative, negative. For more guidance on this, see Smart Investing – A Tale of Two Townhomes.

Isn’t Too Risky an Investment
All real estate is extremely high risk. Development of real estate, land, Tenant-In-Common (TIC) investments, private real estate funds, fixer uppers, etc., all have much higher risk profiles than just simply buying a nice established cash flow investment property. In many of those investments, you will never see a dime of your money again because there are just so many things that can go wrong! So if you want to own real estate, consider simply taking fee simple title in your own name – or an entity you wholly own – to the properties you purchase. In addition, you must do the proper due diligence, analyze, test, review reports, etc., to make a lower risk real estate decision.

Doesn’t Require a Lot of Time or Managing
Some properties just require way too much time and management to make them smart investments. Examples include vacation rentals, low quality properties in bad areas, college rentals, etc. Nice boring properties rented for as long as possible to decent credit profile tenants seem to take the least time to manage. In addition, treating your tenants fairly and with respect goes a long way towards keeping good relations with them; and reducing your hassles when there is an issue you need to address. And believe me — there will be issues!

It’s the nice, boring, wholly owned, in good shape, cash flow-positive properties that are the best investments. They are out there for your picking, but it’s not as simple as finding a property on the MLS and buying it.

You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments!

REF: Leonard Baron, MBA, is America’s Real Estate Professor® – his unbiased, neutral and inexpensive “Real Estate Ownership, Investment and Due Diligence 101” textbook teaches real estate owners how to make smart and safe purchase decisions. He is a San Diego State University Lecturer, blogs at Zillow Z +3.22%.com, and loves kicking the tires of a good piece of dirt! More at ProfessorBaron.com.

Email Your Questions to: Leonard@ProfessorBaron.com

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Thanks for visiting.  Be sure to check my web site for current listings.

http://kengordonrealestate.com

Ken Gordon Real Estate
The Secret Agent of Real Estate

RE/MAX Interactive Realty

The Top 5 Reasons To Hire An Agent To Represent You As A Buyer In A Real Estate Transaction

1. The listing agent cannot give you any specific advice on how much to offer or what contingencies to include in the purchase contract.  He/she can write a contract for you but, buyer beware, it will most likely favor the seller.  The best advice I can give you on this bullet point is to avoid calling the agent on the sign out in front of the house you just drove by and fell in love with. Why? Because that agent works for the seller.

2. The listing agent will not negotiate on your behalf.  They already have a client, and it’s not you. That listing agent does not work for you.  I can’t stress it enough.  As a buyer, be sure you have representation of your own.  Hire your own agent.  It’s not going to cost you anything.  Real Estate commissions are typically paid by the seller.

3. A good buyer’s agent will run a market analysis for you and give you their qualified opinion of fair market value, and then negotiate on your behalf to get you the best deal possible.

4. A buyer’s agent will help to protect your rights.  As a buyer, you have rights.  What rights do you have?  Things like “Right to Inspect / Right to Cancel”, the right to include an Appraisal Contingency, Loan Approval Contingency, WDO contingencies, etc…

5. A buyer’s agent can help guide, direct, and make sure you have a complete understanding of the process and the steps to close.  In a typical purchase contract there are timelines and deadlines for accomplishing tasks along the way to be sure closing is not delayed. Tasks include things like escrow deposit, inspections, loan applications, appraisals, surveys, and so on…

Remember, in a Real Estate transaction, you’re dealing with legally binding contracts.  If you sign an agreement and do not live up to the terms and conditions within that agreement, you could be subject to a law suit.  It is absolutely in your BEST interest, as a buyer, to have a qualified, experienced professional working FOR YOU.  Hire a buyer’s agent!

Thanks for visiting.  Be sure to check my web site for current listings.

Ken Gordon Real Estate

The Mission:  Superior Customer Service

Helping buyers and sellers discover the secrets to successful transactions so that everybody wins. - USMC Veteran

In Partnership with:

RE/MAX Interactive Realty

Questions to Ask Moving Companies

When you’re ready to talk with movers about your upcoming move, you need to be prepared for the conversation. Part of your preparation should entail a ready list of questions for moving companies who want to earn your business. The questions below will kickstart the conversation and ensure you get the answers to pick the right mover.

Do you work for the mover or are you a broker?

Brokers can match customers with moving companies. But keep in mind that a broker can’t give you a binding estimate and a broker isn’t responsible for loss or damage.

Do you give binding quotes?

A mover may give a binding, or “not to exceed” quote upon reviewing your items in person. Brokers typically don’t give binding quotes. If a mover or broker attempts to give you a binding quote over the phone, don’t accept it. Make sure your possessions are inspected in person.

Does my quote include extra charges?

If any of these issues below apply to your move, you may face additional charges:

• Stair charges
• Long carry charges
• Appliance charges
• Parking charges
• Storage charges
• Fuel charges
• Charges for awkward or extremely heavy items. Ask your movers if they have equipment to handle such items.
• Will my items be transferred?

In long distance moves, your items may be transferred to another truck. This extra handling increases the chances of damages.

What forms of payment do you accept and on what terms?

Don’t hire movers if they only accept cash. Make sure you and the movers are in agreement on the amount due upon delivery versus the deposit amount, and whether your deposit is refundable.

What type of insurance is included in your quote? Can I get more insurance?

Basic coverage is 60 cents per pound but your moving company may offer an upgrade. You can also work with third-party insurance providers to cover the move.

What is the process for damaged or broken items? Who’s responsible?

Make sure you understand what your moving company is responsible for in terms of broken items. Ask about the mover’s reimbursement policy.

ref:  http://www.realtor.com/advice/move/questions-ask-moving-companies/

By:  Realtor.com Team

Thanks for visiting.  Be sure to check my web site for current listings.

Ken Gordon Real Estate

Ken Gordon

Ken Gordon Real Estate

RE/MAX Interactive Realty

Start Planning Your Next Move Now

When moving season arrives, thousands of people across the country pack up their belongings and moving to a new home. Whether it’s from one apartment to another, kids headed off to college or families transitioning into a new home, moving can be an incredibly taxing and time-consuming ordeal.

Fortunately for those on the move, there are ways to plan ahead and alleviate some of the stress associated with the process of relocating.

Did you know there’s a busy season in the moving industry? The period from Memorial Day to Labor Day is the busiest time for movers and and premium accommodations fill up fast. It’s an incredibly competitive industry, making it is important to plan head, compare quotes, and book early in order to get the best rate and service possible. If you’re planning a move during this timeframe, get started early to find a moving company and secure the right price for your next move.

Your destination and living situation plays a big part in how to plan your move. For smaller moves across town, simply renting a truck for a day or two can be a practical solution. Longer moves, especially for families, involve more logistics and, as such, can be more complicated. In those cases, hiring a full-fledged team of professional movers to assist in the packing and unpacking process is ideal. Either way, it doesn’t hurt to explore all of your options and get quotes from both truck rental agencies and professional moving companies.

Another moving solution that’s become quite popular in recent years is a portable storage container or moving pod. Containers can be a time and money-saving option. The moving container is delivered to your front door and you’re in charge of packing your belongings. When you’re finished, the moving company will pick up the moving container and will either move your belongings or store your moving pod until you are ready to ship.

ref: http://www.realtor.com/advice/move/start-planning-next-move-now/  By: Neal Leitereg

Thanks for visiting.  Be sure to check my web site for current listings.

www.kengordonrealestate.com

Ken Gordon

Ken Gordon Real Estate

RE/MAX Interactive Realty

321-684-9900

Why For-Sale-by-Owner Sales Fail

Homeowners obviously know their homes better than anyone, but that doesn’t mean they’re the best salespersons for their properties.

Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their local community is in the midst of a sellers’ market and they think they can sell easily without help. Others try the FSBO route because they want to maximize their profits and avoid paying a commission to a Realtor.

However, statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.

Why to Sell With a Realtor

Choosing to sell with a professional rather than on your own makes sense for a variety of reasons:

A Realtor has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.
A Realtor can show your home when you aren’t available, can respond to inquiries from potential buyers and their agents, and can get valuable feedback from visitors – all things that save you time.
A Realtor can look at your home objectively and suggest ways to improve its appearance – by staging and minor repairs – so it appeals to more buyers.
Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present.
A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don’t have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic buyers.
Realtors have professional marketing expertise, contacts with other Realtors who work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual.
A Realtor can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations.

FSBO Dangers

Most buyers today work with a buyers’ agent to represent their interests. If you choose to sell your home on your own, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney.

FSBO transactions can be successful, of course, but 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience.

ref:  http://www.realtor.com/advice/why-fsbo-sales-fail/
By:  Michele Lerner

Thanks for visiting.  Be sure to check my web site for current listings.

www.kengordonrealestate.com

Ken Gordon

Ken Gordon Real Estate

RE/MAX Interactive

321-684-9900

5 Advantages of Buying a Fixer-Upper

We all have fantasy images of our dream house. These images may be hard to let go of whenbuying a home, especially when all you can afford are homes that, well, let’s just say need some TLC.

That’s when it’s important to keep in mind that the fixer-upper you’re looking at could have the potential to someday become your dream house. It’s just one advantage fixer-uppers can offer. Here are a few others:

1. Lower price
A home that needs work likely will be less expensive. Such properties rarely list at full market price.

2. Fewer competitors
Many buyers are unwilling or unable to put a lot of work into a house. This creates the perfect opportunity to snatch a bargain,
a major advantage welcomed in particular by first-time homebuyers or house hunters competing for homes in areas with low inventory.

3. A blank canvas
With a fixer-upper, you call the shots as to how the house will eventually look. You don’t have to settle for a home that reflects someone else’s taste. Plus, if you do some of the work yourself, you’re automatically awarded bragging rights.

4. Quicker equity
If you renovate the home shortly after you buy it, you may increase its value quickly. Equity provides many financial benefits, from raising your personal net worth to giving you an opportunity to refinance sooner, if needed.

5. The possibility of renovation loans
Ask your lender about the Federal Housing Administration’s 203k loans that provide homeowners with funds specifically for fixer-upper projects. The loans, the 203k Streamlined Mortgage and the full 203k Mortgage, are available for homes with needs ranging from cosmetic improvements to extensive structural work.

ref:  http://realtormag.realtor.org/

Thanks for visiting.  Be sure to check my web site for current listings.

www.kengordonrealestate.com

Ken Gordon

Ken Gordon Real Estate

RE/MAX Interactive

321-684-9900