DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

When you find a realtor to list your home, you will be given a document called the comparative market analysis, or the CMA. Here you are being shown what your competition will be in the market. You and your agent will use this tool to figure out where yours stands when compared to those around it.

Your property will be compared to those already on the market along with homes that have recently sold. This will allow you to determine the best asking price. Interested buyers will then use this same document to reduce their offers.

The CMA will contain relevant information buyers need to know. This will include: the square footage of your home, the number of bedrooms and bathrooms it contains, and when the property was built. Other details such as property tax information, existing amenities, and how to contact the listing agent will also be found here.

So how does this affect you the most? Knowing what your home is worth and where you stand within the current market will give you an idea of what you may be likely to make from the sale of your house.

Once you have this information, you can make important decisions like when to sell, what repairs need to be made before putting your home on the market, and the amount you plan to pay for a new home. The CMA can be quite valuable to you both as a seller and buyer because it provides necessary and relevant information.

There’s more to knowing the worth of your home than just the CMA. Have you ever looked at two homes containing the same features but that have two totally different asking prices? There are many reasons why one home might sell more than another with identical features. One reason for this is perception. How a home is perceived makes a huge difference when it comes to selling it. A house that is well-maintained and visually appealing to prospective buyers will have a much better chance of selling.

Buyers base a lot of decisions on emotion. Important factors that affect emotions are: curb appeal, interior decor, and window views. All of these factors play a key role in how your home will be perceived.

Home staging can make a significant difference when it comes to buyer perception. It’s all about the strategic placement of items in each room. For example, a particular room can look larger simply by the way it is arranged. Color schemes and proper use of space also have an impact on how a home is viewed.

You can influence the worth of your home simply by making necessary improvements and paying close attention to details. Talk to your agent about steps you can take to increase your property value.

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When you are planning on purchasing a home one of the most important decisions is the neighborhood where the home is located.  You may ask your real estate agent for advice, but they are prohibited from giving you an answer due to the fair housing laws.  They can simply provide you with a standard suggestion that you perform your own research into the safety of a neighborhood.  Okay, so you may have heard this statement and are wondering how you can research the safety of a neighborhood. 

One of the best indicators you have access to are your instincts.  If you tour a neighborhood and develop feelings of uneasiness or something strikes you as out of place, you can then conduct further research into crime statistics and other data that can provide you with a clearer idea as to the nature and safety of a particular area you are interested in.  Another way to get a feel for a neighborhood is to drive through it at various time of the day.  This will provide you with an idea as to what types of people hang out after dark and how much traffic specific streets experience.  You can gain a lot of valuable information by performing these simple tasks.

Another great resource that can help you determine the safety of a neighborhood is to speak with neighbors.  Neighbors are one of the best resources you can have when it comes to deciding on purchasing a home in a particular area.  They can share whether they believe the streets are safe or if there are any reasons why you should avoid moving into the neighborhood.  These people have spent many years living in the area you are considering; they have developed the knowledge to help you make an informed decision.

If the neighborhood that you are interested in features any playgrounds or parks you may want to look closely at the condition that they are in.  If you notice that the playground equipment is not in the best condition and the park is littered with trash it is likely because the park is not properly maintained.  This is a good indication as to how well and regular maintenance is performed in the neighborhood.  If a playground is in good shape, it is an indication that the neighborhood is actively being monitored and any conditions are taken care of relatively efficiently.

There are a number of ways in which you can ensure the safety of a neighborhood before you purchase a home in the area.  It is recommended that you conduct this research prior to placing an offer on a home.  This is also a great way to narrow down your search once you locate a neighborhood that you find to be appealing to both you and your family.

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In recent months the real estate market has been steadily improving, while that is a great sign for those looking to sell their home, it means that there is more competition for buyers.  With more buyers ready to purchase a home, buyers should be prepared for the chance that they may become involved in a bidding war.  A bidding war takes place when more than one party is interested in a particular home.  While it is eventually up to the seller which offer they are willing to accept, there are some things you can do to help tip the odds in your favor.

• Be Pre-approved – Sellers are more likely to take an offer from someone who has already been approved by a lender.  They would rather be guaranteed that the buyer they choose has the money to back up their offer over one that still has to be approved by a lender for the amount that they offered.
• Cash On Hand – If you have made the seller a cash offer, it is important that you have that cash ready to hand over should the buyer choose your offer over another.  Anytime you make a cash offer, you should only do so if you already have the cash on hand.  If the cash amount is not the full price of the home, but rather a down payment, you should always have those funds available.
• Act Fast – In order for you to compete against other buyers looking at the same home, it is important that you make an offer as soon as possible.  This is especially true if the home has recently been listed.  Some sellers will often take the first offer that they receive over another; this is why you shouldn’t hesitate when it comes to making an offer on a home that you are interested in.
• Have An Inspector Ready – Once you submit an offer on a home and it is accepted, you should contact a reputable home inspector and schedule a time for them to look at the property.  Having the home inspected will ensure that there are no major problems with the foundation or other areas of the home that you may have missed during the walk through.  An inspection can save you a lot of time and stress if these problems aren’t found until after the closing has taken place.

These are only a few of the ways that you can help influence sellers to choose your offer over another.  Bidding wars can be stressful, by using some of these negotiating tactics, you may be able to ensure that your offer is the winning offer and you end up with the home of your dreams.

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When you finally find a property that you have truly fallen in love with, it’s easy for anyone to waive the need for a home inspection. However, by doing so you may end up with repairs or issues you are not financially prepared for.

When setting up a home inspection it is importation to know what the inspector will be looking at.

When an inspector takes a look at the exterior of a property they will take a look at the condition of the roof. A roof can be a very expensive repair, and the inspector will make sure that there are no loose shingles, cracks or damage to the vents, as well as the condition of the gutter system.

The inspector will take a look at the conditions of both the foundation and grading of the slope. The foundation is checked for any evidence of cracks or settling and the slope is checked to make sure that it will allow water to flow away from the home’s foundation.

The exterior walls are inspected for any problems such as missing siding, or cracks as well as any signs of termite damage. They may make a recommendation to have a pest inspection performed if any signs of damage are found to be caused by insects.

The exterior inspection will also include the condition of the garage, by checking the garage door opener; and making sure that it is well ventilated.

If the inspector does find a condition that is of concern they will advise you of what will be necessary to repair the problem or make a further recommendation to obtain further information or more in depth inspections by a specialist.

When it comes to checking the interior of the property an inspector will take a look at the electrical wiring system by testing the outlets and the electrical panel for any safety issues that could be a fire hazard.

They will also perform a check of the hot water heater as well as the HVAC system to make sure that they are working properly and if necessary they will recommend any needed repairs or maintenance. They also will advise you of how many years are left on their life expectancy as to the overall condition.

Something not always thought of by a homeowner when it comes to an inspection is the condition of the appliances that may be included in the sale of the property. You may need to ask an inspector to check on the condition of your stove and refrigerator or other appliances so that you can plan for the replacement when it becomes necessary.

Another interior inspection that is done is to the plumbing system to make sure that there are no visible signs of leaking from under sinks or pipes that are visible. They may also suggest a second inspection be done if a house is older to find out if the pipes are in need of replacement. That secondary inspection will be able to tell you whether they are to code and if they will need to be replaced as well as to the estimated cost to replace them.

If the inspector locates any signs of moisture or water damage they should also recommend a further inspection to obtain a mold test. This also could be due to poor ventilation issues in the bathroom or other areas requiring ventilation. 

The cost of having a home inspection is insignificant to actually finding any damages that you are not able to repair or replace immediately. It will also give you the opportunity to be able to decide if the issues found need to be addressed prior to actually closing on the property. If something comes up at the time of the inspection, it can also be the perfect time for a buyer to negotiate a reasonable cost that could be split between both buyer and seller.

The most important thing to remember, even though you have fallen in love with a property, is that there may be hidden problems that can be revealed by obtaining a home inspection report. It’s better to know now then to know later that you should have walked away from buying the house of your dreams.

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A home loan can be quite stressful to secure. Acquiring a new property brings with it a lot of responsibility and sometimes finding the finances to cover it can seem impossible. There are many options where home loans are concerned and it’s a good idea to do your homework carefully before making any final decisions.

The best way to secure a home loan in 2013 is to make the necessary preparations ahead of time. While it isn’t necessary to make a down payment on a property, it’s always a great idea to consider. Making a down payment will decrease the amount of your monthly house payments. You’ll also own that much less on your home once you have paid down on it.

Save all the money you can. Buying a home isn’t a decision you make quickly. You’ve probably been considering it for quite some time. The first step is to make a list of all the projected expenses you think might be relevant. There are, of course, always some you didn’t think of or even know about, but you’ll be able to get the basics down on paper.

Know your finances. Consider any debts you currently have and figure out what it would take to pay them back. Remember, you will need to have enough money left over each month to pay on your debts so this should factor into the home buying decision.

Figure out how much you may have to spend on your new home. If you already own property you plan to sell in the near future, you will be able to use the money made from that sale to pay down on your new home, or perhaps to buy it outright if you are extremely fortunate. If not, a lot of saving is in store.

Get pre-approved. Before viewing properties, it is a good idea to talk to a mortgage company to find out around how much you’ll have to spend. They can review all your credit information and amount of debt you have incurred and give you a figure. This will make the process of viewing homes much easier. If you already know how much you’ll be able to spend, you can look at properties that fall only within that price range.

Think conservatively. Don’t spend at the top of your price range. Instead, make sure you still have some money left over at the end of it all. Save this money for the next property venture or to pay off debt. If your monthly house payments are at the top of your range, you may run into difficulty in the future when attempting to make them. Planning for financial issues that may or may not occur will serve you well should the need for money ever arise.

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Mortgage interest rates are the lowest they have been in 60 years, and there are plenty of affordable homes available, so why hasn’t the market improved more than it has.  It could be because the market is still burdened by the high unemployment rates, tight credit and more foreclosures that continue to drag the already struggling market even lower. 

Since the bubble burst in 2006, we have witnessed median prices of existing homes fall by 27%, with homeowners in California being hit the hardest.  During this time many homeowners discovered that they were now underwater on their mortgages.  This leaves them stuck in their situation, because they are not able to sell their home and walk away with enough money to purchase another one.  This forces them to remain in their home, virtually stuck and unable to move forward unless they ask their lender to approve a short sale.

There is good news for homeowners who are underwater on their mortgage, prices and home values are steadily on the rise.  Median home prices have increased 3.6% last year, and in the harder hit state of California they experienced an increase of 5%.  While these numbers and the amount of homes that were sold are still lower than they were in 2009, they are steadily increasing.  What this means for homeowners is that if they continue to remain patient, their homes will likely increase in value allowing them to sell or simply be worth what the owner believes they should be.

The recovery process may seem like it is taking an unbelievably long time, it is said that a true recovery will take between five to seven years.  It may take longer for some areas to recover fully compared to others, but it is happening.  The driving force behind the current upswing in the market is the sales of foreclosures and short sales.  These types of homes have accounted for approximately 1/3 of home sales. 

While the market may not have improved as quickly as many had hoped, it is continuing to make strides in the right direction.  We can expect to see more increases in home values as well as more people buying homes as it improves.  The improvement in the market that many have been hoping for is within our grasp.  We will soon begin to notice that our homes are once again increasing in value and that homes are selling for more than they were a year ago.  This is all good news, but there is still more on the way.

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Many parts of the country have begun to experience an improvement in their real estate markets.  Many people have begun purchasing homes again and have determined that it is now cheaper to own a home than it is to rent.  Sellers have also started noticing that values are increasing and their once low valued home is increasing in value.  In order for these sellers to have the opportunity to get their asking price, and in some cases more is to understand today’s buyers.

The recent real estate crisis has had an impact on buyers searching for a home today.  Many of them are experienced and had the foresight to get out of the market when the crisis was just hitting.  Now that the dust has started to settle, they are once again looking at available homes.  These types of sellers saw what was happening in the market and were reluctant to purchase a home just to find out in six months that it has a lower value than the day they purchased it.  They didn’t want to purchase  home at a great price simply to find out that they too, were now underwater on their loan.

No matter where these buyers are located, there is one common thread shared among them all.  They believe the time is right to buy.  These are the buyers who have been carefully paying attention to the market and have done their research.  They know that the market is on the upswing and that if they are going to buy a home they should do so now.  These potential buyers may have been renting during the housing crisis and have come to realize that it may be cheaper for them to purchase a home instead of renewing their lease.  These types of buyers are more educated and knowledgeable about the current state of the market and how lower interest rates can keep their payments at a level they can easily manage.

Many of the homebuyers who are looking at homes today are willing to pay a bit more in order to guarantee that they end up with the home they love.  They are commonly overlooking small defects in the property in order to have their offer accepted by the owner.  This mentality combined with low interest rates that are still being offered and the abundance of available homes on the market is the beginning of a seller’s market.  This is the ideal time for sellers to consider listing their home.

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Our nation continues to feel the pressure of an intense recession, and the housing market and the number of home foreclosures are seeing an ever increasing rise. Our government has made some concessions from both a national as well as state wide level to assist homeowner’s who are facing the threat of foreclosure on their home.

If you are feeling the pressure of the possibility of having your home go under foreclosure, know that there are now many programs are now in place to assist homeowners who are struggling with their mortgage payments. The U.S. Treasury Department and HUD are administrating programs that are designed to assist those facing a decision about their circumstances.

Now is the time not to panic, it is a time for you as a homeowner to become knowledgeable about the laws that are governed and how the process of foreclosure works within your state. Do your homework, find out the timelines as well as the rules that your state follows when it comes to foreclosures. The average foreclosure timeline will be in 6 stages and it is a very fast process

1.     The first stage is Pre-lien which happens within 30 days of default

2.     Lien which then happens within the next 30 days following the Pre-lien

3.     The next stage is when you receive what is known as receiving a Notice of Default

This stage will usually happen within 90 days of the foreclosure process

4.     After receiving your Notice of Default within 21-25 days you will then receive a notice of sale

5.     The property then goes into what is known as a Trustee Sale

6.     If the property is unsold due to an unsuccessful foreclosure auction it then becomes what is known as an REO property which is a Real Estate Owned or REO property. This is when the bank or mortgage company is now retains full ownership of the property.

The good news is that there are options available to you, and there are steps you should take to work through any decision you will need to make before you are in the full foreclosure process.

-       Understand what happened and how you got to the point of struggling to make your mortgage payments and then come up with your solution. Your solution should be attainable.

-       Review your income and budget, as well as your original load document. Go through your expenses and consider how your monthly spending may be affecting your ability to make your mortgage payment. Be realistic about your situation as well as your total financial situation. 

-       Consider consulting with a housing counselor, but choose one that is reputable. They should be vetted by the U.S. Department of Housing and Urban Development. A counselor may be able to save you some very valuable time by guiding you through the necessary steps you will need to take to prevent your home from going into foreclosure.

-       Contact your lender; the sooner you do so the better off you will be. They will be able to assess your situation and offer you a payment solution. You should discuss whether your situation is only temporary or if they may be long term with your lender. Your lender will then give you either a deadline to make up your missed payments or they could possibly be able to freeze your mortgage payments until you can resume payments. They can also tell you if you will qualify for a loan modification by extending your payments or even change your interest rate which is a good thing if you are going from an adjustable to a fixed rate loan. The key to working with your lender directly is to make sure that the solution is manageable. Often a mortgagor is in a panic and will agree to anything that sounds good to save their home. However, keep in mind that if you agree to a repayment you may be agreeing to an increase in your monthly loan payment which will only intensify the problem.

-       If your lender is unwilling to work with you or they are unable to find the best solution that both can live with, you will then need to hire a lawyer. If you are unable to afford hiring your own lawyer, many communities offer local homeowners some form of free legal assistance. If your community does not offer any of these services contact the National Association of Consumer Advocates which will have a list of consumer lawyers. Another agency you may want to consider is the The National Association of Consumer Bankruptcy Attorneys.

-       If you simply can’t justify continuing with your mortgage you may just be in a home that is wrong for you. It is a tough decision to make but in the long run it may be better for you to simply sell your home. At this point your lender may specify a date for you to find a buyer and then pay off your mortgage. However, if you find that your home is not going to sell for the full amount of the loan, your lender may be willing to accept a lessor amount. You will need to contact a real estate professional that is very knowledgeable about foreclosures in your area. They can offer your some good strong and valuable advice. The sooner you choose a qualified real estate broker the better your chances will be in meeting any timeframe given to you by your lender.

Don’t be despondent, that is the worse action you can take when it comes to stopping your foreclosure. You need to be able to educate yourself, and reach out to those that are knowledgeable in order to come up with a resolution to your struggles.

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You and your significant other are ready to make a big purchase- a home. While talking you both may have said items you would each like in your future home. It is wise to make a list beforehand to make sure you both are on the same page.

Sit down and make separate lists. Once the two of you have completed your lists you can start to share. Both of you may want a fireplace as one of the top amenities. Leave that on your lists. One of you may only want a home with three bathrooms while the other wants a home with two bathrooms. Circle this item and come back to it.

Continue to go down your list. When you agree on an item keep it on your main list. Once done, go down one of your lists. What is the most important amenity to you. What is the next most important amenity to your significant other? Check if there is anything the two of you could do without.

Now search online in the areas you would like to live for homes. You will learn the cost of these homes that are for sale. If the homes are in your price range you may call a real estate agent to get started in your home search. If the homes are too expensive you may need to go back and cross off a few more amenities. If the two of you do not have time to search for the information regarding the cost of homes, you can call a Realtor and he or she will do the work for the two of you.

While you are attending open houses look at the amenities in the kitchen. For example, what is the quality of the appliances that are included in the home sale? Will you have to replace any of these items? If you will have to replace these items in the near future, keep this in mind when making an offer on the home.

Check the amenities of the bathroom(s) as well. Do they have expensive light fixtures or the cheapest on the market? Is the countertop granite or a lower end product? Is there tile in the bathtubs/showers or a bathroom case?

Keep in mind what the flooring is like. Is there nice carpeting, tile or cheaper vinyl flooring? Lower end homes will have vinyl flooring. If the home you are looking at is in the price range of the other homes yet has vinyl flooring you will know you are not getting a good deal.

Make sure you look at the outdoor amenities such as the roof, windows, siding and gutters. Is everything in good shape or will you need to replace these expensive items in the near future?

You can always purchase a home that you adore even with lower end amenities, just keep this in mind when making an offer on the house as you will probably end up replacing the items. This can be a good thing. You may get the home at a cheaper price and then upgrade to the colors and style you personally like. 

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When you consider buying a home or putting yours up for sale, you may want to plan your timing carefully. Did you know there are actually certain times of the year that are better for both buying and selling?

Have you ever noticed an abundance of for-sale signs in the spring? There’s reason for this. Springtime signals new beginnings. It’s a season of warmth and pleasantness, and a time when people love to be out and about. It also signals the end of school is approaching for children and parents, and there’s no better time to make a major change.

Buying and selling a home falls into the category of major change, and people often feel invigorated and ready to do this in the spring. This buying and selling season transitions into early summer. Once the kids are out of school, it’s easier to pack up and move house. Parents who planned on taking a bit of vacation time from work can leave for a few days to move and get settled into a new environment. This gives the entire family a chance to grow accustomed to new surroundings and neighbors, and make friends.

The real estate season usually lasts from April through July, but this isn’t the only time you can buy or sell successfully. buy and sell. During the “season”, other prospective home buyers are moving quickly, and you have to move fast as well if you’re going to get the home you want. Great properties are often snapped up before you can even make an offer. If this fast-paced approach doesn’t suit you, or if you just want a bit more time to look and make decisions, consider buying and selling at a different time of year. The process may take a bit longer, but the slower pace may make it easier all around.

So why is spring a great time to buy a home? Income tax refunds have usually come in and can be applied to down payments. The weather is nice, thus making it easier to go home hunting. People sometimes have more free time on their hands during spring and summer which also contributes the rush of the real estate season. There are many reasons for it, and the season usually peaks sometime in June.

Summertime works well for buying and selling a home because it enables parents to take care of school changes for their children if necessary. This helps parents avoid pulling their kids out of one school and enrolling them in another during the actual school year.

If you are looking to buy and sell a home quickly, spring and early summer is the time to do it. You will probably receive more offers and may find it easier to sell at or near your asking price.

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