When you're planning on buying a house in the near future, you're subject to lots of advice. Buyers should consider the quality of the schools, their commute to work, the neighbors, and any noise when thinking about purchasing a house. I always stress to my clients: Pay attention to the things that you can’t change about a house and to make sure you can live with those items. Kitchen and bathrooms can be remodeled, but you can't make the noise from a busy freeway go away.
Location, location, location:
The first, and most important, rule of real estate has not changed: location, location, location. If the home is not in the right community, near a busy highway or in the wrong school district, you can rule it out before visiting. If your neighbor doesn’t take care of the yard and has all kinds of clutter and junk, they may make a lot of noise and have a lot of things going on. Write a list of what you want and need in a home, then lists to see what's important when touring prospective homes, mark which items do and don't meet your criteria.
Consider age and condition:
Look at the age and condition of the home, especially for those big-ticket items. How does the roof look? What about the HVAC? Are there signs of water or structural damage? No matter if you want a turn-key home or a fixer-upper, these are things that should be in good condition before you buy. A home inspection is one protection against expensive surprises, but you’ll also want to scrutinize seller disclosures, ask questions about the age of roofs, electrical and plumbing systems, furnaces and air conditioners. Also inquire about termite treatments and water damage. If not, you could end up spending much more than you intend on fixes and replacements. Make sure it meets your current (and future) needs. No matter what's on your list of must-have's, don't settle for a home unless you're sure it will meet your needs.
Stick to your budget:
Don’t overbuy for your budget. Make sure you know how much you're comfortable paying in a mortgage amount and stick to that limit, even if you've been approved for more. You don't want to be in a position where you feel 'house poor', or worse, are unable to make your payments.
Don't forget resale value:
Though it may be a not-so-sexy feature of your home, resale value one of the most important. It can be a huge determining factor the quality of your investment and how long it will take you to sell once you decide to move. Look for features in your home that most buyers would consider desirable like bedroom size, kitchen size, outdoor space, or parking.
(https://realestate.usnews.com/real-estate/articles/what-homebuyers-...).
Friday, September 21, 2018
Wednesday, September 19, 2018
Buying In a New Real Estate Development? Five Things To Know...
New real estate developments have an undeniable appeal for homebuyers. I have overseen sales and marketing for more than 300 new development projects totaling over 10,000 residences over the last 30 years, and I’ve found that everyone from first-time buyers to seasoned homeowners needs an education on the nuances of buying new.
Here are five tips to help get you started:
1. Understand The Timeline
Developers typically begin sales 12 to 24 months prior to the projected occupancy (move-in) date of the property, which means that you need to plan well in advance for your purchase.
On the plus side, this gives you time to save additional funds for the remaining down payment after deposit and to sell an existing property, if necessary. But if unforeseen delays alter the construction timeline, you might not move in when you expected.
If you are moving from a rental, it’s best to negotiate flexibility with your landlord. For buyers who are selling another property, try timing of the sale of your home so you have some wiggle room on your ultimate closing and moving-out dates. This way, you’re not sleeping in your parent’s basement, bunking with friends or camping out in a hotel for a few weeks. Ask the developer for regular construction updates starting six months prior to the projected closing date so that if you need to extend your lease or closing date, you have plenty of time to do so.
2. Not All New Construction Is Created Equal
Make sure to do your homework on both the developer and the contractor actually performing the work. You will want to assure that they are well-respected developers and builders who stand behind their product. Construction defects happen, but that does not mean the developer is necessarily to blame or that they are a bad developer. More importantly, does the developer have a reputation for responding quickly when a problem arises? Are they amenable to correcting any construction defects without litigation? What is their reputation for quality workmanship? In addition, it is important to ask when the warranties begin when purchasing in a newly built development and that you obtain all of the warranty information.
3. What You See May Not Be What You Get
Artist renderings and sales office models that depict the finishes of the property are key marketing tools when selling new development because these residences are being sold before there is a finished product. Make sure to ask what comes with the actual residence you are purchasing. For instance, a three-bedroom model kitchen may not be representative of the kitchen in the one-bedroom you have selected, which will most likely have a smaller kitchen.
It’s important to get specific. Ask what size the appliances are in your residence, and how much cabinet space you will have. If the model kitchen is shown with drawer inserts or pull-out drawers, is this standard for all units? Find out if the model bathroom is typical or if your bath will be smaller with fewer fixtures. Inquire what lighting will be included. Most developers only install recessed lighting in hallways, kitchens and bathrooms and supply switched outlets everywhere else. The same goes for closet design. Just because a model home shows a fully outfitted closet does not mean you should assume your unit will come with the same.
4. Budget For Additional Closing Costs
In New York City in particular, it is customary that the developer expects the purchaser to pay the New York State and New York City Transfer Taxes. (In re-sales, these costs are typically born by the seller.) You can attempt to negotiate these additional expenses, and depending on the building and market, a developer may agree. Often, developers prefer to negotiate closing costs rather than price to maintain value throughout the building not only for themselves but also to protect the investment being made by everyone purchasing from them. In addition, developers may pass along part of their legal fees for creating the condominium documents and performing the closing, which can add another $2,500-$3,000 to buyer expenses in most cases.
5. Check The House Rules And Bylaws
Co-ops are not the only buildings with rules. Every property (yes, even a condo) has a different pet policy, smoking policy and rules and fees for subleasing. Make sure that the rules work for you and that your furry friend meets any building limits on breed or size.
Buying in a new development is very exciting, but can also be nerve-wracking due to the many nuances and potential unknowns as to what the finished product will actually look and feel like. Doing as much homework up front as possible will help to ease any concerns and assure a more expected outcome.
(https://www.forbes.com/sites/forbesrealestatecouncil/)
Here are five tips to help get you started:
1. Understand The Timeline
Developers typically begin sales 12 to 24 months prior to the projected occupancy (move-in) date of the property, which means that you need to plan well in advance for your purchase.
On the plus side, this gives you time to save additional funds for the remaining down payment after deposit and to sell an existing property, if necessary. But if unforeseen delays alter the construction timeline, you might not move in when you expected.
If you are moving from a rental, it’s best to negotiate flexibility with your landlord. For buyers who are selling another property, try timing of the sale of your home so you have some wiggle room on your ultimate closing and moving-out dates. This way, you’re not sleeping in your parent’s basement, bunking with friends or camping out in a hotel for a few weeks. Ask the developer for regular construction updates starting six months prior to the projected closing date so that if you need to extend your lease or closing date, you have plenty of time to do so.
2. Not All New Construction Is Created Equal
Make sure to do your homework on both the developer and the contractor actually performing the work. You will want to assure that they are well-respected developers and builders who stand behind their product. Construction defects happen, but that does not mean the developer is necessarily to blame or that they are a bad developer. More importantly, does the developer have a reputation for responding quickly when a problem arises? Are they amenable to correcting any construction defects without litigation? What is their reputation for quality workmanship? In addition, it is important to ask when the warranties begin when purchasing in a newly built development and that you obtain all of the warranty information.
3. What You See May Not Be What You Get
Artist renderings and sales office models that depict the finishes of the property are key marketing tools when selling new development because these residences are being sold before there is a finished product. Make sure to ask what comes with the actual residence you are purchasing. For instance, a three-bedroom model kitchen may not be representative of the kitchen in the one-bedroom you have selected, which will most likely have a smaller kitchen.
It’s important to get specific. Ask what size the appliances are in your residence, and how much cabinet space you will have. If the model kitchen is shown with drawer inserts or pull-out drawers, is this standard for all units? Find out if the model bathroom is typical or if your bath will be smaller with fewer fixtures. Inquire what lighting will be included. Most developers only install recessed lighting in hallways, kitchens and bathrooms and supply switched outlets everywhere else. The same goes for closet design. Just because a model home shows a fully outfitted closet does not mean you should assume your unit will come with the same.
4. Budget For Additional Closing Costs
In New York City in particular, it is customary that the developer expects the purchaser to pay the New York State and New York City Transfer Taxes. (In re-sales, these costs are typically born by the seller.) You can attempt to negotiate these additional expenses, and depending on the building and market, a developer may agree. Often, developers prefer to negotiate closing costs rather than price to maintain value throughout the building not only for themselves but also to protect the investment being made by everyone purchasing from them. In addition, developers may pass along part of their legal fees for creating the condominium documents and performing the closing, which can add another $2,500-$3,000 to buyer expenses in most cases.
5. Check The House Rules And Bylaws
Co-ops are not the only buildings with rules. Every property (yes, even a condo) has a different pet policy, smoking policy and rules and fees for subleasing. Make sure that the rules work for you and that your furry friend meets any building limits on breed or size.
Buying in a new development is very exciting, but can also be nerve-wracking due to the many nuances and potential unknowns as to what the finished product will actually look and feel like. Doing as much homework up front as possible will help to ease any concerns and assure a more expected outcome.
(https://www.forbes.com/sites/forbesrealestatecouncil/)
Wednesday, September 12, 2018
‘Nonbanks’ Emerge as Top Lenders for Home Buyers...
More buyers are bypassing big, established banks and turning to a growing subset of specialized lenders to obtain a mortgage.
Last year, a “nonbank” called Freedom Mortgage originated $51.1 billion in home loans, more than Citigroup Inc. and Bank of America Corp., according to research from business news publication Inside Mortgage Finance. Freedom has risen from being the 78th largest mortgage lender in the U.S. in 2012 to the 11th largest today.
Nonbanks have re-emerged since the last housing crisis and are taking more business from traditional banks, now accounting for 52 percent of U.S. mortgage originations—up from 9 percent in 2009—according to Inside Mortgage Finance. Six of the 10 largest U.S. mortgage lenders today are nonbanks.
Larger banks have been pulling away from the general mortgage market and have placed a greater focus on consumers with more financial stability since the Great Recession. Nonbanks tend to focus on serving first-time buyers and moderate-income families. Nonbanks also tend to take short-term loans from other banks to fund their lending, and some industry analysts are concerned that these entities could overextend themselves—as many did a few years ago. “As long as the good times roll on, it’s fine,” Ed Pinto, co-director of the Center on Housing Markets and Finance at the American Enterprise Institute, told The Wall Street Journal. “But all I can say is, we’re in a boom, and you cannot keep going up like this forever.”
Quicken Loans has emerged as the largest nonbank. The top mortgage lenders, by originations, for the first half of 2018 are:
Wells Fargo
JPMorgan Chase
Quicken Loans
PennyMac
Bank of America
U.S. Bank
Caliber
United Wholesale
Amerihome
loanDepot
Freedom Mortgage
Source: “The New Mortgage Kings: They’re Not Banks,” The Wall Street Journal (Sept. 6, 2018)
Last year, a “nonbank” called Freedom Mortgage originated $51.1 billion in home loans, more than Citigroup Inc. and Bank of America Corp., according to research from business news publication Inside Mortgage Finance. Freedom has risen from being the 78th largest mortgage lender in the U.S. in 2012 to the 11th largest today.
Nonbanks have re-emerged since the last housing crisis and are taking more business from traditional banks, now accounting for 52 percent of U.S. mortgage originations—up from 9 percent in 2009—according to Inside Mortgage Finance. Six of the 10 largest U.S. mortgage lenders today are nonbanks.
Larger banks have been pulling away from the general mortgage market and have placed a greater focus on consumers with more financial stability since the Great Recession. Nonbanks tend to focus on serving first-time buyers and moderate-income families. Nonbanks also tend to take short-term loans from other banks to fund their lending, and some industry analysts are concerned that these entities could overextend themselves—as many did a few years ago. “As long as the good times roll on, it’s fine,” Ed Pinto, co-director of the Center on Housing Markets and Finance at the American Enterprise Institute, told The Wall Street Journal. “But all I can say is, we’re in a boom, and you cannot keep going up like this forever.”
Quicken Loans has emerged as the largest nonbank. The top mortgage lenders, by originations, for the first half of 2018 are:
Wells Fargo
JPMorgan Chase
Quicken Loans
PennyMac
Bank of America
U.S. Bank
Caliber
United Wholesale
Amerihome
loanDepot
Freedom Mortgage
Source: “The New Mortgage Kings: They’re Not Banks,” The Wall Street Journal (Sept. 6, 2018)
Friday, September 7, 2018
MIAMI RANKS AS ONE OF THE MOST VALUABLE CITIES IN THE COUNTRY…
Real estate wealth is dispersed unequally throughout the United States with revenue concentrated heavily in metropolitan areas, valued at $26.2 trillion in total.
Lending Tree ranked the top 50 most valuable cities in America from its collection of real estate data covering more than 155 million U.S. properties.
While competing against many other high-ranking coastal cities, Miami made into the top 10 most valuable cities with a ranking at No. 7. Miami’s total residential real estate value was estimated at $648 billion with a median value of $267,000.
In order to calculate the total property values of metropolitan areas, Lending Tree looked at previous home value figures based on public tax, deed, mortgage and foreclosure data, and proprietary local data. The My Lending Tree property database also used GDP data from the IMF’s April 2018 World Economic Outlook to provide a comparison between the value of the top 50 American cities and financially similar countries. Miami was given the “closest country equivalent” of Argentina.
The Federal Reserve estimated the total values of residential real estate to be $28.4 trillion. Considering the Lending Tree property value database in relation, the top 10 most valuable cities contribute to 40 percent of the Federal Reserve’s figure. Even further, the full list of 50 cities constitutes 70 percent of all residential real estate value in the U.S.
(https://miamiagentmagazine.com/2018/09/06/miami-ranks-one-valuable-cities-country/)
Lending Tree ranked the top 50 most valuable cities in America from its collection of real estate data covering more than 155 million U.S. properties.
While competing against many other high-ranking coastal cities, Miami made into the top 10 most valuable cities with a ranking at No. 7. Miami’s total residential real estate value was estimated at $648 billion with a median value of $267,000.
In order to calculate the total property values of metropolitan areas, Lending Tree looked at previous home value figures based on public tax, deed, mortgage and foreclosure data, and proprietary local data. The My Lending Tree property database also used GDP data from the IMF’s April 2018 World Economic Outlook to provide a comparison between the value of the top 50 American cities and financially similar countries. Miami was given the “closest country equivalent” of Argentina.
The Federal Reserve estimated the total values of residential real estate to be $28.4 trillion. Considering the Lending Tree property value database in relation, the top 10 most valuable cities contribute to 40 percent of the Federal Reserve’s figure. Even further, the full list of 50 cities constitutes 70 percent of all residential real estate value in the U.S.
(https://miamiagentmagazine.com/2018/09/06/miami-ranks-one-valuable-cities-country/)
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