Avoid these common mistakes when buying a home

Home buying can be a frustrating experience, but choosing a competent real estate agent to guide you through the process will likely save you time and money. Here are some tips to avoid costly mistakes.

1. Get pre-approved BEFORE you start your home search. Pre-approval will give you a realistic price point when viewing potential homes and puts you in a better position to make a serious offer.
2. Research the neighborhood. Learn about crime statistics, schools and amenities within your potential town.
3. Look beyond the décor. Focus on the structure itself, square footage and layout. Look beyond the taste of the current homeowner, and remember you are buying the actual house.
4. Never skip the inspection. Your home is likely the biggest investment you will ever make, a home inspection is necessary to ensure it is a sound structure or at the very least, make you aware of any defects.
5. Give yourself an out. Make sure there are contingencies (such as financing or inspection) in the contract so you can back out of the deal and recoup your deposit.
6. Don’t buy the most expensive house on the block. The lower home values around your property will negatively affect your property's value.
7. Keep resale value in mind. It may be difficult to envision selling a home that you have yet to live in, but remember to consider long-term property value, location and overall mass appeal, when viewing a potential home.

Call your local CENTURY 21® Office for knowledgeable sales professionals to guide you through your home buying experience.

Information acquired through C21 e-newletters.

Is the Real Estate Market returning to "Normal"?

The new data from the National Association of Realtors shows that home sales for the past 2 months are on the rise.  Low interest rates and Lower asking prices have first time home buyers making the move. 

What we are finding in this area is that a well priced home is receiving multiple offers shortly after the house comes on the market. The key to selling your home is still pricing for today's market.  The key to a purchase is research the recent sales in the area (your realtor can help you with that) and if the home is listed well make your offer accordingly.  Low Ball offers on a well priced home will be refused.

An experienced agent makes all the difference in the world in making the trasaction go smoothly. 

Thought You'd be Interested

Thought You'd be Interested- Recent sales in North Caldwell

Market conditions dictate list price

When you list your home you want to get the best possible price and that is what your listing agent wants too.  In the current market it is difficult to hit on the right number until the home has been shown and buyer and agent feedback is accumulated.  Even high end homes are affected and it is the listing agent's duty to analyze the data and explain the results to the seller in terms they can understand.

Our office currently has a listing on Eileen Dr. in the Park Ridge section of Cedar Grove that, historically speaking, should be in the million dollar price range.  Market conditions and buyer feedback have caused a major price reduction and this custom home with 4 bedrooms including a huge master suite, a massive great room with fireplace, dining room that currently houses a table for 14 and a finished basement complete with a full bath, bonus room, access to rear patio, family room and gourmet kitchen.  This home is now listed at $875,000.  

If you are thinking of listing your home, please keep current market conditions in mind when setting an asking price.  If you are buying a home remember that the listing agent should be on top of prices in the area and the home may be priced to sell in today's market.

If your interested in seeing this home on Eileen Dr. or any other home in the area, please let me know.

Selling your Home - Not Really

If your planning to sell your home there is one critical thing you have to remember from day one.  Your are not selling a home, your are selling a house.  The buyer needs to make it his home.  The memories and decor that make this house your home have to be packed away before you list your house.  Thinking of the property as your home once you decide to list will expose you to many problems.  Pricing is effected by this thought process, you really can't put a price tag on a home.  You need to remove your emotions and think of this as a business deal.  Your Real Estate Agent will give you advise as to price that will not include the value of the time you have spent in the home. 

My best advise is to not be home when the house is shown.  Buyers like to put their own spin on a house and if you cringe knowing they are taking out the shelves you so lovingly built into the nursery wall it may effect the way you negotiate a sale. 

You may have spent hours finding just the right color orange for the kitchen but the buyers want a green kitchen. 

Remember, you are selling a house not a home

Finding the Home Thats Right for You

With all the choices in today's market, how do you go about finding the right home? It seems the more research you do, the more confused you get.

It's important to understand your needs and plan for them. Know what you want in a home, what's important to you, and what you can live without. Many of us start out with a champagne taste and a beer pocketbook, so it's important to be realistic.

Where and what you buy will affect you for as long as you live in the house, If you make the wrong purchase that may seem like a very long time. Get your priorities in order before you start looking or even talk to a real estate broker or sales associate.

For first-time home buyers this is a new experience, so it's especially important to do your homework. Ask people who have previously purchase a home about their experience, but don't ask for advise.  Only you can know what you really want and how much you are willing to pay for it.  If you currently own a home, you know exactly what's lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. Regardless, you should practice the commute at the time you would be traveling before you make a commitment. A 15 minute drive on a Sunday afternoon may be a 60 minute stop and go during rush hour.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. Call the local Board of Education and arrange a tour of the school you children will attend, preferably during school hours.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb,  make sure you're in close proximity to the things that matter most.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op. 

In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you'll pay fees for these services. In addition to checking the documents and financial soundness of the homeowner's association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room. Another consideration, if you are using an FHA mortage is if the develpment is FHA approved.  Not all complexes qualify for FHA funding.

Affordability can be a factor not only in the type of housing, but whether it's new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. Make sure you're dealing with a reputable builder, and have an attorney review all documents,

Selecting a real estate professional is an important first step in beginning your search. Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

If you are searching for a home in the Northern NJ area I would be happy to help.

Gail Vinnal                                                                  Accredited Buyer Representative (ABR)

My new designation

Today I received a new designation through the National Association of Realtors, I am now an Accredited Buyer Representative (ABR).  What this means is that I have attended continuing education classes geared specifically to a Real Estate Agent who works with the buyer end of a Real Estate Transaction. 

As a Buyer Representative I offer a higher degree of service to a homebuyer making the buyer the center of the sale.  Working with buyer's is my favorite part of the Real Estate Business and finding them the perfect home is a game I always like to win.  Some agents prefer the listing side of the business but, although I do take listings and am very good at working them, my favorite part of the job is matching up a buyer's wants and needs with properties currently on the market. 

Although all agents can and do work with both buyers and sellers most transactions lean to the side of the seller, after all, the seller is the one who has the property, sets the price of the home and pays the Real Estate Commission out of the proceeds of the sale.  In the past the general feeling has been that all agents work for the seller because that is who pays them.  The educational materials we received  in this class point out that at a closer look the seller may possess the property but the price is actually set by the buyer, The seller has the option of accepting or refusing an offer but if he wants to sell his home he has to negotiate with what the buyer offers him.  The same with the Real Estate Commission, the commission is paid out of the proceeds of the sale according to the terms of the listing agreement but, the commission is based on the sale price that was offered by the buyer and, in normal sales the only person actually bringing money to the closing table is the Buyer so, although the seller negotiates the sales commission the buyer really pays it.

If you or anyone you know is thinking of buying or selling a home, or if you just have questions about the process feel free to contact me.

Gail
gailvinnal@verizon.net

Problems with the home your selling-disclose

Sometimes sellers believe if they just put on a good face, no will know what's going on behind the scenes. These days, it's a crime to lie about things that are wrong with your home. While the buyer still has to prove you knew or should have known about these items, the damages (not to mention the defense) can be costly.

In the paperwork you receive from your realtor when you list your home, you are asked to fill out a seller's disclosure.  This is a form which asks about the current condition, past problems, repairs and improvements that have been made to the home over time.  Your are asked to check yes, no or unknown.  Sometimes your response requires and explanation and if you don't know the answer (what year was the roof replaced) unknown is a perfectly acceptable response.  This form should be filled out as completely and honestly as you are able.  It will be signed by the seller and the buyer and is a part of the real estate contract.  This disclosure relieves the seller of responsibility if a problem arises and it is addressed in the disclosure.  If the buyer has knowledge of a problem and purchases the home anyone he is accepting the conditon of the home.

If you're honest and upfront about past problems and steps you've taken to correct them, your seller disclosures will be a whole lot easier. If the house has current issues, tell the broker and the buyer what you're doing to correct them. Or, make it clear that the purchase price reflects these problems. Either way, honesty pays.

Making an Offer

When you make an "offer" or "bid", the seller of the home can accept or reject it, make a counter-offer or not respond.

If the seller rejects your offer, makes a counteroffer or doesn't respond, your options remain open. You can accept the counteroffer, make another offer or reject it and keep looking.

It's important that you think through your decision before you make an offer. You won't be able to think it over more you have come to a meeting of the minds.

Once both parties have signed the offer the contract is sent to both attorneys for review.  The attorney review period is approximately 3 days or, until both attorneys are satisfied with the wording of the contract.  During the attorney review period either party can cancel the contract for no particular reason.  Once the attorney review period of over the contract is binding.  At this time you will be given a time frame in which inspections must be done and deposit money delivered to your attorney.  The contract will also contain a mortgage commitment date which is when you must have confirmation from your lender that you are indeed qualified for the mortgage you applied for and the lender is committed to lending you that money.

What is a good offer

Once you've found the right home , you'll need to know the real value of the house so that you can make an educated offer.
A home's value is determined by the following:

• Sale Price History: Pay attention to trends in appreciation or depreciation on the home.
• Home Characteristics: The number of bedrooms and bathrooms, square footage and other characteristics of the home. 
• Similar Home Prices: Prices of comparable homes in the neighborhood.

I always offer to create a market analysis of the property for my buyers, this is something that is done for the seller when they put the house on the market and it helps position the home to sell quickly.  It will help a buyer make and informed decision as to what a particular house is worth to them.  Some things to keep in mind when making an offer:

If there are multiple offers on the house be careful of the "I want to win" mentality, I've seen buyers overpay because they get caught up in the heat of the bidding war.

The final price, regardless of what other homes have sold for, is what a ready, willing and able buyer is willing to pay for a property, so, the buyer is really the one who sets the value of the home.

Home Buyers Need to Take Notes

House hunting can become slightly overwhelming.

You might forget one house from the next. You may get frustrated that you haven't found your dream home or get so excited you forget to focus on your wants and needs.
Its a good idea to write down simple description of the homes you see.  I usually give my buyers a copy of the MLS sheet so they can write on the back.  After you see a few homes they all start to look the same and frequently you start remembering the good points of a few homes as features of the same home.  Some buyers are very disappointed when they go back to the home they think they want to make an offer on only to find they had blended a few homes together in their mind. 

The key to keeping the facts straight when viewing a number of homes is to write down the pros and cons of each home next to the address.  If the seller will allow it, pictures help.

Real Estate Companys - Independent, Unknown National or Well Established Name?

At first glance the answer to which type of company should I choose is obvious.  Having worked for all of the above I'm here to tell you that the choice is not all that clear.  Over time, the benefits of each type of company have worked for different types of agents, buyers and sellers.

When I first was licensed in New Jersey to sell real estate I placed my license with an established national company.  This allowed me excellent training which is what all of my future success was built upon.  Being a small fish in a big pond however, did not give me the personal guidance someone with no clue about the actual customer service needed in the real estate world.

I moved to a local independent office where I received daily guidance and my hand was held through every aspect of my first deals.  An independent office allowed me to learn at my own pace with very little in the way of restrictions on my movement.  The drawbacks to this type of office became evident as I became more knowledgeable in the business and technology started to become a necessary tool in buying and selling homes.  An independent office does not usually have the funds required to establish a web-presence.  As the years went by this became a huge drawback when the person wanting to list their home started to search for the office.  Unless the owner of the independent company is very web savvy and is willing to invest in technology the independent office is not the best place for the business of real estate.
After 5 years I was once again on the move.

I moved to a larger, statewide, Internet based office.  The draw for this type of office was limited in office time was required, with the magic of the Internet most of our business could be preformed from home or on the road as long as there was Internet access.  This type of office worked very well for me as long as the market was booming.  As soon as things started to slow down the into the office mind set was important to keep my head in the game.  When there is alot of business you don't need to go to an office, you are out with buyer's and meeting with seller's, when business slows down if you don't have a business environment to go to life in general takes over and home chores become a focus and your business goes out with the trash.
4 years I was moving on out

The next 3 years found me back at an independent office, but with a twist.  We handled much of the foreclosure market.  I became very efficient at the distressed home sale but my heart was not in it, I do not enjoy profiting from others problems.  I don't think that agents who handle distressed property are wrong, they actually preform a necessary function and without them the people who have fallen on hard times would be in worse shape, this is just not the business for me.
So I moved yet again, hopefully for the last time!

I am now at a huge ,international, very well established company.  Ironically the same company I started with.  I feel they still have the best training.  Each office is independently owned giving it the small independent feel.  It is a huge company which affords an Internet presence that is unbelievable!
With the advent of Internet in Real Estate I have the choice of offices to work out of, so, of course, I've chosen one of the top 10% offices in the entire company even though there are offices closer to my home.  I am lucky enough to have an office full of successful agents behind me.   My new move, my last move looks to be my best move yet.

Century 21 Cedarcrest Realty in Caldwell NJ has welcomed me with open arms, and I thank them for that.  If buying or selling a home is in your future and you are located in northern NJ give me a call, I'd be happy to help!

GETTING YOUR HOME READY TO SELL

Deciding to sell your home is only the beginning of the process, you have alot of work ahead of you.  Before you list your home you need to make you home desirable to the public, this means you really have to remove you personality from the house and allow potential buyers to place themselves in the rooms.

I recommend that seller's follow the three C's of home sales.

1.  CLUTTER - Remove any clutter around the home.  This does not only mean get rid of the trash but remove you personal items from counters and walls.  Basically, start packing, anything that is important to you pack away.  Pictures, books, small statues, childrens hand made gifts are what make your house your home.   Buyers need to see a house as their home and that is difficult when they are looking at pictures of your children.  The things you keep on your kitchen and bathroom counters may make your life more convient, but they reduce the visable counter space which is very important to a buyer.  Putting these things away not only makes the rooms seem larger it also reduces the possabiltiy of items important in your life being broken or lose.

2.  CLEAN - I know your house is clean, you wash the floors, dust the furniture and vacuum the rugs.  When I say clean, I mean deep, hands and knees, scrub brush cleaning.  When you take your personal pictures off the walls there may be light marks on the walls.  Paint is cheap and a quick coat of neutral color paint makes a room seem bigger and brighter.  Clean the windows and it dosen't take much to change the mini blinds on all your windows.  Make sure all your light fixtures have new bright bulbs.  Removing one piece of furniture from a room can make the room much bigger. Check the pathways around your house.  Three recliners lined up in the family room may make for easy football watching but re-positioning those chairs may free up room for more open floor space.

3.  CURB APPEAL - The first impression of your home is not from the inside, as soon as a buyer drives up to the front of your house decision making begins.  Make sure your front entry way is inviting, if its February remove the Christmas decorations.  Check the window treatments on your front windows.  Red livingroom curtains and purple dining room curtains may go with the interior decor of the rooms but they are not very appealing from the exterior.  Rake your leaves, shovel your snow or mow you lawn, whatever the season calls for.  You don't want to remind the buyer of all the outside work homeownership requires, they already know, but if it isn't done they start to think it is an overwhelming task.

Remember, you don't want a buyer to think that an unpainted wall or and unraked yard is a good reason to make a low offer.  A home presented in it's best possible light will sell for the best possible price.

Why should a buyer use a Real Estate Agent

I often hear buyers state that they don't need an agent because they can find everything they need on the internet.  Finding the property that meets your needs is only the beginning of the home buying process.  Agents are trained to negotiate the best price for their client  unemotional negotiating will always have a better result.  Agents also have contacts with home inspectors, mortgage people and real estate attorneys to help you through the process.  When using an agent buyer's have the voice of experience on their side.  You will probably only buy a few homes in life, Agents do this everyday!  In addition, in New Jesey, the agent's commission is paid at closing by the seller so you basically get experience and education for free.  If you thinking about buying find an agent you trust today.


Gail Vinnal
Broker Assoicate
Realty Executives
gailvinnal@verizon.net

Ready to Buy?

Once you have a mortgage pre-approval in hand you know what price range you will be looking in but that is not all you need to know to find your dream home.  You need to decide what area you want to look in, what type of home you want, are you willing to do some work and if so how much.  You can then contact your realtor and tell them what you are looking for.  I always ask my buyers to make a list of 10 things they want in a home in the order you want them.  Please keep in mind very few buyers find 100% of what they want in the home they buy.
 Narrow you location choice to a few towns but try not to be too specific, it is fine to want to live in a certain town or a certain school district, looking for a home a a specific street makes finding you a home almost impossible.  Also, be open to looking a a home that does not seem (on paper) to be what your looking for you could be surprised!  Many buyers refuse to look at a certain style of home but if they walk in it is a perfect fit.  I don't advise making you agent show you hundreds of homes but I do suggest that you look at a broad spectrum of homes that meet your needs.  In my experience when you find the right home you know it almost as soon as you walk in the door.  Don't be afraid to ask to see any home you may like this is the biggest purchase of your lifetime and it is the agent's job to find the right fit.
Keep an open mind, trust your Real Estate Agent and have fun if you make the right purchase you may only do this once in your life!

Happy New Year!

Now that the holidays are over it's time to get serious about your Real Estate plans for 2012. This year is predicted to be a better year for seller's which can be good news for both the buyer and the seller.

For the buyer a better sales year means that you should start your search NOW. Prices and interest rates are still very low making a purchase an excellent way to start the new year. If things do pick up this year you will begin to see prices increase over the next 12 months making starting the search early in the new year critical to getting the most home for your money. Have your real estate agent send you e-mailed new listings in the area and price range you are hoping to make you purchase in.

For the seller a better sales year means that you should start preparing you home for market and keep an eye on current sales and listings in your neighborhood so when you are ready you have a good idea of the sales value of your home. The easyist way of doing this is to contact a real estate agent and ask to have new listings and sold homes sent to you weekly via e-mail.

The best stratagy for both the buyer and seller is to keep informed of the market in your area so you know when the time is right for you to make a move.

Buying a Short Sale

When you are searching for your new home you will undoubtably come across a number of homes listed as short sale, don't be afraid, if you have time to wait a short sale can be a very good choice. This is a home that the owners are still living in so it usually has not been allowed to fall into major disrepair. Short sales take time. As the buyer you submit your offer through a real estate agent just as if it were any other listing. The offer goes to both attorneys for attorney review as any other sale. Once you finish the attorney review period the seller's attorney sends the offer to the bank and the buyer starts the waiting period. This wait can be anywhere from a few weeks to a few months, the bank will send out agents to make inspections and come up with the "fair market value" of the home and review the seller's information to re-evaluate the need for a short sale. All this time the buyer can do nothing but wait, many get impatient and walk away from the deal but if you really want the house hanging in there is your best option, nobody is trying to put one over on you, it is just a long process. Once the bank receives all the information they need they may accept the offer, counter with a different sales price or refuse the offer. The counter is not necessarily their lowest number so feel free to have your negoitiater (either your attorney or your agent) come back with your counter. Banks to not usually counter again so make sure that this is your highest and best price and be aware that the bank has a bottom line already and nothing you do will make them change it. Your attorney and your real estate agent can advise you on the counter you plan to make but the final offer price is your decision.

After your offer is accepted thing are expected to move very quickly, the buyer is usually responsible for the scheduling and expense of all city inspections (CO or Dwelling certificate) and you can do a home inspection. The bank will not make any repairs on a short sale so your home inspection if for your information only. I strongly suggest that you do an inspection because, in the case of hidden defects, you can ask for the repair to be paid or you can cancel the sale if it is something you don't want to pay for yourself.

Short Sales

A short sale is a home that is on the market for a price that is below the mortgage amount currently owed. A short sale is usually caused by the seller's inability to pay his current mortgage but the home's value has fallen below the amount owed. A short sale must be approved by the lender who currently holds the mortgage. Not all short sales are approved, if the seller cannot show financial hardship and is found to be able to pay the current mortgage payment (or a reconfigured payment) the bank is not going to take less money then is owed. The purpose of a short sale is not to allow the seller to recoup value lost in the home but a way for the bank to avoid a foreclosure proceeding.

The first thing a homeowner must do before listing his home is to contact his lender. There is a large amount of paperwork required by the bank, they will ask for your last 2 years income tax returns, your last 4 pay stubs, a hardship letter, bank statements for at least 6 months, an accounting of all money you owe and a list of your monthly expenses. If any of these are not submitted or, if the numbers don't add up you will be denied the opportunity to sell short. When calling your lender DO NOT call the customer service department or the collection department, these people are paid to collect money they do not want to help you, ask for the loss mitigation department, if you receive voice mail leave a message, but continue to call, nothing can be done until the loss mitigation department reviews your documents so be a pest, don't wait for a call back.

You may be contacted by people who call themselves "short-sale negotiators", you don't need them and they will ask you to pay them. What you need to sell your home short is a Real Estate Agent who is experienced in short sales and a real estate attorney who has worked short sales. Do No Pay Anyone but your attorney , the real estate agent is paid at closing through the proceeds of the short sale and the attorney will probably ask for a retainer up front but will attempt to be paid out of the proceeds of the sale. Most attorney's have a set fee they charge and you can ask what that is before you start working with them.

Where do you begin

If you are just starting to investigate buying or selling a home there are a few things you need to take care of first. During the holidays the real estate market slows down a bit so this is a good time to do the pre-purchase/sale preparation.

For Sellers:
While cleaning and decorating for the holidays start packing the things you usually put away for the holidays, this will start the de-cluttering process needed to make your home more saleable. Keep in mind that when you put your house on the market you will have to eventually move so this is just advanced packing!

For Buyers:
As the year comes to a close tax preparation begins. If you are planning to apply for a mortgage this information will be required with your application. Keep your year end pay stubs, expense reports and any other year end statements you receive in one folder. If you start the application process before your taxes are done the mortgage broker will use these statements to help determine how much home you can afford. Remember, you cannot make an offer on a house without a mortgage pre-approval so this is the best place to start.