I remeber the day I bought my first new construction home. It had a contract that was about ten pages long. Today the contract is substantially longer than that as lawyers have put in every conceivable clause to protect the builder. So, the question remains the same. Do you know what you are signing?
The questions always loom as to why someone buys a new home without representation. The sale person represents the builder and gets paid by the builder. They are looking out for the builder's best interests. Having your own representation costs the buyer nothing. The builder pays the buyer's agent.
Well, the other day a client of mine decided on a new home that was pre-built. We went to sign the contract on the house and it was 55 pages long. After reading it extensively there were charges showing up that should have been paid by the seller/builder that were showing as incurred costs to the buyer. I advised my buyer fothe charges and the ramifcations of them paying for it as additional out of pocket expenses that should not be incurred by the buyer.
In addition, the builder was promoting their finace option to the buyer. Offering a premium discount toward closing cost with the buyer using their preferred finacning. Well, the buyer had already shopped around and received a better quote for interest rate and terms than the builder preferred program was offering. In fact over the period fo 30 years the buyer saved an additional $38,000 in interest over the life of the loan by calling a recommended mortgage professional I gave them.
In total the cost of the home saved my buyer an additional $41,000 over the course of 30 years by using a buyer's agent unaffiliated with the builder to represent them. And the total cost to the buyer in this case was ZERO. The information and savings were priceless.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Saturday, November 20, 2010
Friday, November 19, 2010
You can own this home for $796.32 a month with NO MONEY DOWN. That is not a typo. That payment includes your property taxes and home owners insurance. NO Hidden Fees. this home now qualifes for House Charlotte funding. Receive up to $7500.00 toward the purchase of this home. Why rent when you can own?
This 3 bedroom home with stunning hardwood floors throughout the living area, tiled kitchen floor and bathrooms, and a gorgeous sunroom on almost a half acre on a cul de sac can be yours for less than you are paying in rent now.
You can click here to view the virtual tour of this home: www.circlepix.com/home/NZ2R36
Dave dicecco
Realtor/Broker
www.davedicecco.com
Wednesday, November 17, 2010
Buying Rental Property...What To Look For?
In these economic times more people are looking to buy investment homes. Homes they can purchase and rent. The goal being that they get a tenant that will take care of the place, pay the mortgage and leave them with a little extra money each month. But, what are you looking for when you decide to venture into the rental market?
The first thing is affordability. You need to know what the average home prices in the area are and the rental rate for that area. If the numbers show you losing money each month then it is not a viable option. You do not want to just break even either. You have to factor in cost of repairs, potential increase in taxes and Homeowners association dues (if you are purchasing a home in one) and insurance.
Second, what the rental market for the area is like. Charlotte currently is a popular booming rental hot spot according to various indexes. But, what is the average rental rate for the area. Are there a lot of renters where you are looking to buy? or is the area and neighborhood mainly made up of homeowners with a scattering few rentals in it? These all will factor in to what you can command for rent and the chances of renting it out quickly....
Third, schools. If you are looking to purchase a home that is going to be tailored toward a family this is a vital part of your research. Families make a lot of descsions of where to rent and live based on affordability and the schools. We all want our kids to go to the bet possible schools. You are going to want to check out the schools that are slated for the home you are looking to buy. This will help give you a good indication of what to expect. The better the schools the greater the applciant pool is likely to be.
Fourth, crime rate. Though it may not seem important. It can be detrimental to renting a home. Fortunate, most cities have crime stats on their websites now. They break them down by the types of crimes. No area is going to be free of crimes; ( that would be utopia) but you want to know what types of crime are happening and the frequency of them.
Fifth, proximity to stores, public transportation and highways. We all hate the commute time. This can be a factor in whether someone chooses your home over another. Proximity to everyday shopping and work or highways is a factor that needs to be factored in when looking to purchase a rental home.
Sixth, amenties the neighborhood offers. Is the home you are buying in a community with a pool? Does it have a playground for children? Are there parks close by? All can help or hinder your chances fo renting a home out.
Last, the resale value of the home. Depending on how long you plan on keeping the house; this can be an important statistic in your equation. I always recommend to investors looking to hold onto a home for a period of three to five years to look at the trends of home prices going back seven to eight years. This will give you a picture of the pre boom home prices, the boom home prices and the post boom home prices. You will be able to see where you would land on the wide spectrum of the home price range if you needed to sell.
Dave diCecco
Realtor/Broker
www.davedicecco.com
The first thing is affordability. You need to know what the average home prices in the area are and the rental rate for that area. If the numbers show you losing money each month then it is not a viable option. You do not want to just break even either. You have to factor in cost of repairs, potential increase in taxes and Homeowners association dues (if you are purchasing a home in one) and insurance.
Second, what the rental market for the area is like. Charlotte currently is a popular booming rental hot spot according to various indexes. But, what is the average rental rate for the area. Are there a lot of renters where you are looking to buy? or is the area and neighborhood mainly made up of homeowners with a scattering few rentals in it? These all will factor in to what you can command for rent and the chances of renting it out quickly....
Third, schools. If you are looking to purchase a home that is going to be tailored toward a family this is a vital part of your research. Families make a lot of descsions of where to rent and live based on affordability and the schools. We all want our kids to go to the bet possible schools. You are going to want to check out the schools that are slated for the home you are looking to buy. This will help give you a good indication of what to expect. The better the schools the greater the applciant pool is likely to be.
Fourth, crime rate. Though it may not seem important. It can be detrimental to renting a home. Fortunate, most cities have crime stats on their websites now. They break them down by the types of crimes. No area is going to be free of crimes; ( that would be utopia) but you want to know what types of crime are happening and the frequency of them.
Fifth, proximity to stores, public transportation and highways. We all hate the commute time. This can be a factor in whether someone chooses your home over another. Proximity to everyday shopping and work or highways is a factor that needs to be factored in when looking to purchase a rental home.
Sixth, amenties the neighborhood offers. Is the home you are buying in a community with a pool? Does it have a playground for children? Are there parks close by? All can help or hinder your chances fo renting a home out.
Last, the resale value of the home. Depending on how long you plan on keeping the house; this can be an important statistic in your equation. I always recommend to investors looking to hold onto a home for a period of three to five years to look at the trends of home prices going back seven to eight years. This will give you a picture of the pre boom home prices, the boom home prices and the post boom home prices. You will be able to see where you would land on the wide spectrum of the home price range if you needed to sell.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, November 16, 2010
Housing Market In Charlotte NC. Not Doom And Gloom
It seems no matter what news station you are watching or what radio station you are listening to; they are all claiming that the housing market is awful right now. We have not seen the bottom and that it is going to get worse.
Yet, interest rates are at record lows. Home affordability is at the highest it has been since World War II. Buyers have a wide range of choices availble to them out there right now. Buying a home in most cases right now is less expensive than renting. So why are the news people portraying it so negatively?
During the past two weeks I have been involved in six different situations that leads me to beleive that the housing market is not as the media is portraying it. I had two listings go to a multiple offer situation in under 30 days. I had four different buyers get involved in a multiple offer situation on a home. If the housing market is as bad as the media is making out to be...where are these buyers coming from?
Buyers do have a good selection of homes to choose from. The question is are they willing to make the leap to home ownership. In the cases of the individuals and families I have presented offers on behalf it was do to simple economics. They realized they could afford the home they want. They did not have to drive down the street and dream of one day owning that home. They could make it a reality. Truth is that for half of them the homes they are looking at will be less expensive than what they are paying in rent currently. Based on that why would you not be out looking at homes?
The econimists are telling us that the bottom has hit in most markets and that inventory levels are coming down. Sales had risen year over year through August. September (the last month reported) showed a decline. But there will always be bumps in a road. A steady month over month growth is unsustainable. We have witnessed the effects of housing prices increasing month in and month out for an extended period of time. Do we really want to go through that again?
One constant I seem to have noticed is that there are home buyers out looking to purchase a home. They may not be out in the vast amounts they were a few years ago; but they are out looking at homes. They are taking longer to buy; but again they are buying homes.
If you are reluctant to look for a home or to put your home on the market; think about what the market has avaible right now. For buyers interest rates hovering around 4% and home prices at 2007 levels which has made home affordability at an all time high. For sellers, motivated buyers looking to buy a home and take advantage of the great rates and find that special place they can call home.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Yet, interest rates are at record lows. Home affordability is at the highest it has been since World War II. Buyers have a wide range of choices availble to them out there right now. Buying a home in most cases right now is less expensive than renting. So why are the news people portraying it so negatively?
During the past two weeks I have been involved in six different situations that leads me to beleive that the housing market is not as the media is portraying it. I had two listings go to a multiple offer situation in under 30 days. I had four different buyers get involved in a multiple offer situation on a home. If the housing market is as bad as the media is making out to be...where are these buyers coming from?
Buyers do have a good selection of homes to choose from. The question is are they willing to make the leap to home ownership. In the cases of the individuals and families I have presented offers on behalf it was do to simple economics. They realized they could afford the home they want. They did not have to drive down the street and dream of one day owning that home. They could make it a reality. Truth is that for half of them the homes they are looking at will be less expensive than what they are paying in rent currently. Based on that why would you not be out looking at homes?
The econimists are telling us that the bottom has hit in most markets and that inventory levels are coming down. Sales had risen year over year through August. September (the last month reported) showed a decline. But there will always be bumps in a road. A steady month over month growth is unsustainable. We have witnessed the effects of housing prices increasing month in and month out for an extended period of time. Do we really want to go through that again?
One constant I seem to have noticed is that there are home buyers out looking to purchase a home. They may not be out in the vast amounts they were a few years ago; but they are out looking at homes. They are taking longer to buy; but again they are buying homes.
If you are reluctant to look for a home or to put your home on the market; think about what the market has avaible right now. For buyers interest rates hovering around 4% and home prices at 2007 levels which has made home affordability at an all time high. For sellers, motivated buyers looking to buy a home and take advantage of the great rates and find that special place they can call home.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Monday, November 15, 2010
What Is A Walk Through And What Am I Looking For?
When you purchase a home you have viewed it a few times prior to putting an offer in on a house. Then once the offer has been accepted you have had a home inspection on the home. So chances are that you have viewed the home a few times now.
As you get to the day of the closing your Realtor will tell you to do a final walk through on the house prior ot closing. depending on the time fo day you are closing it can be the day of closing or the day before. But waht are you looking for when you do the walk through? Do you now what to look for?
Most people are unaware of what to expect at the walk through. You had viewed the hosue prior to placing an offer and during the home inspection process. The home owner has done some repairs to the home. So, you want to make sure the home is in the condition it was in when you viewed it at the time you placed an offer. Also, that the repairs you requested and agreed upon with the seller were performed...
It is crucial that you do this prior to closing. Because once you sign the papers for the new home you now own it. There is no turning back and you cannot go after the seller for anything that you did not notice initially or may have happened after you last saw the house..
So, make sure you find time to do a proper walk through on a house the day of closing or the day before....
Dave diCecco
Realtor/Broker
www.davedicecco.com
As you get to the day of the closing your Realtor will tell you to do a final walk through on the house prior ot closing. depending on the time fo day you are closing it can be the day of closing or the day before. But waht are you looking for when you do the walk through? Do you now what to look for?
Most people are unaware of what to expect at the walk through. You had viewed the hosue prior to placing an offer and during the home inspection process. The home owner has done some repairs to the home. So, you want to make sure the home is in the condition it was in when you viewed it at the time you placed an offer. Also, that the repairs you requested and agreed upon with the seller were performed...
It is crucial that you do this prior to closing. Because once you sign the papers for the new home you now own it. There is no turning back and you cannot go after the seller for anything that you did not notice initially or may have happened after you last saw the house..
So, make sure you find time to do a proper walk through on a house the day of closing or the day before....
Dave diCecco
Realtor/Broker
www.davedicecco.com
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