The Importance of a Home Inspection

So you have chosen the perfect home, Now What. Well once the Home Negotiations are finished it is time to schedule a home inspection. These can be very beneficial both in negotiating and for piece of mind on the Home you are about to Purchase. The most important thing is to pick your own inspector especially if your agent represents the seller in the transaction. Too many horror stories about problems after the close of the home. If at all possible be at the inspection so you can both ask questions and be assured that the inspector is checking every area. Keep in mind the sales contract will have date specific as to when inspections have to be completed. If you fail to follow those dates the seller has no obligation to do any repairs, many times the inspection deadlines fall through the cracks. Review the inspection and decide which repairs are most important to you. In most every case a seller will have to repair any items that are safety hazards. Follow up after the repairs, most inspectors will only charge a nominal fee to reinspect to insure that repairs are done properly. Hope this helps

Short Sales Why So Long?

As in the previous posts about Short Sales we have reviewed what roll everyone plays in the Short Sale Process. Now why it takes so long to complete a Short Sale.  Short Sales are different from regular Home Sales and challenging to process since they involve more parties to the transaction, Short Sales Transactions include, Borrower (seller), Loan Servicer, Potential Buyer, Investor, Mortgage Insurer (if applicable), Sellers Real Estate Agent, Buyers Agent and any Subordinate lien holder. The Mortgage Company and Investor both perform valuation reviews because Short Sales are often viewed by potential buyers as easy opportunities to buy a home well under market value. Exceptionally Low Offers are frequently submitted. Some agents actually submit what lenders call "straw" offers to test the bottom line of the lender, this only extends the process as lenders will only look at one offer at a time. Many Fraud Risk reviews must be completed. Each Short Sale is different depending on how many parties are involved because of that lenders often cannot tell the parties how long the process will take. The key in a Short Sale is patience. Hope this helped explain why a  Short Sale takes so long to process.

Short Sale Steps and Myths

As mentioned yesterday, Short Sales can be a daunting task. Once a Short Sale is Approved sometimes sellers believe that everything is done. So here are some common Short Sale Myths that sellers can fall into. Clients believe once a contract has been submitted the Short Sale is a done deal, Fact is once the contract is submitted the lender begins working on the approval process and must get approval from several parties before it can be agreed upon. Existing borrowers believe they are no longer responsible for the debt and should stop making payments. Fact, until the property actually closes the borrower is responsible, if they stop making payments more fees are incurred and that can cause the contract to be denied as the expenses are increased. Borrower thinks the remainder of the debt is forgiven. Fact the lender may require the borrower to contribute at the closing or sign a promissory note for any remaining balance. Be sure you know the answers to all of these before you think the deal is done. Keep in mind the investor of the loan itself determines reasonable market value and has to approve the offer. The actual lender the majority of the time is not why the Short Sale process takes so long, the other parties involved such as secondary lenders can extend the time-frame while negotiating what amount of money they will accept and receive. Next post on Short Sales will be why do they take so long. Any questions? Just let me know. Thanks again and I hope this helps.

Short Sale Process Step by Step

As more Short Sales are submitted to Banks and Lenders the Short Sale Process Steps have been updated. Here are the newest Short Sale Steps by leading lenders. Initial Step, Complete a Short Sale Application and get assigned to a negotiator, Property Evaluation, (appraisal or BPO per investor requirements), Short Sale Negotiator completes initial review of the Short Sale Application, They will review the Purchase Value to Amount Owed and the Local Housing Values, they will also review the Hardship and the Debt to Income ratio, they will then review the Contribution, this is to see if the homeowner has assets to assist in the difference between the amount owed and the amount the home is sold for. Most importantly the Short Sale MUST be an arm's-length transaction, the home cannot be sold to a family member, friend or close business associate. once initial Short Sale steps are complete the Negotiator will complete an introduction call to both the Realtor and the seller this will include negotiations on commissions, fees and costs, pricing of the property, timeline and if the seller will be contributing. Once all the initial and additional steps are completed there will be a Short Sale application decision and once it has been approved the negotiator will contact the Realtor and the seller. A Short Sale approval is valid for up to 45 days. Applying for a Short Sale is a daunting task but with the proper Realtor the process can be streamlined and completed within a reasonable time. Next blog will be Myths about Short Sales, so stay tuned.

Short Sale Requirements and Realtors Role

Just came from a panel discussion with the head of Short Sale Departments of two major banks, here is what I learned and I hope you find it helpful. The most important part of the process is the initial document package requirements so here is a list of what is needed: The seller provides to the Realtor, signed and dated financial worksheet listing all monthly expenses, signed and dated hardship letter ( an explanation of why the seller is unable to pay the mortgage) this can me the most important document, Letter authorizing the Realtor access to information on the account (must be dated and include the last 4 digits of the seller's SSN and signature, the full account number and property address) , last two (2) years income tax returns, two (2) most recent bank statements within 30 days, third party authorization form to give the mortgage company permission to speak to all the parties involved, current year to date Profit and Loss statement (if self employed), two (2) most recent pay stubs (within 30 days). These are just the responsibility of the homeowner and should be turned over to the Realtor to begin the process with the bank. The Realtor also has additional items that they must submit. Although this is a daunting task if the proper procedures are followed and the Realtor does all they are required to do this can save a homeowner from the foreclosure process and give them some control on what happens. Additional questions? Just let me know. Step by Step through the process will be our next topic.

Real Estate Trends and News: October Housing Trends Newsletter

Real Estate Trends and News: October Housing Trends Newsletter: Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing inf...

October Housing Trends Newsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click on this link to view the Housing Trends OCTOBER - 2011 Newsletter:
http://agentdadams.housingtrendsenewsletter.com?newsletter_id=278

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

Housing Trends eNewsletter is also filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, housing market video reports, blogs, real estate glossary, maps, mortgage rates and calculators, consumer articles, community reports that map shopping, schools, recreation and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:
http://agentdadams.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.

Mobile Homes as Investment Properties

In today's market more people are turning to Mobile Homes as investment properties for rentals, Why? There are several reasons for this, the main reason is the low cost to acquire these properties. If you have land that you can place the home you can get homes for under $10,000. With rental rates going up even a renter at $450.00 per month can give you a return on your investment of over 40%. Buying Mobile Homes on their own land can be done starting under $20,000 keeping your return on investment very high again. Another reason is you can afford to rent them for less dollars which in turn gives you more prospects to rent to.The negative thoughts are, Mobile Homes depreciate in value. True that is why the lower the price the better the investment and they can always be re sold usually at a profit. Agents usually stay clear of Mobile Homes so dealing with the owner can be more difficult. Be sure all paperwork is reviewed by an expert, you can call an agent and hopefully they will be happy to help. 

Low Price Investment Properties Available in The Upstate of SC

As of this morning there are 150 homes available in the Upstate priced under $35,000. Some of these properties do need extensive work while some would make great rental properties. How do you decide what to do with these type of properties? First you must asses the cost of putting the property in rent ready or sale ready condition. It is advised to have a contractor that you trust do a walk through with you and give an estimate on all repairs along with a time frame to have them complete. Once that step is complete use the estimate to assist in the negotiation of the property both with price and terms. Keep in mind most of these properties may not be eligible for financing so plan on spending some cash. Once the negotiations are complete and you have worked out your ROI on the property, begin the marketing while repairs and updates are being done especially if you are going to resell the property. Buyers like to see the before and after pictures. If you are going to use this as a rental property do your research on other rentals in the area for cost and vacancy rates. I hope this helps answer some of your questions, thanks for visiting.

Home Warranty Information protecting your home.

Some may not be aware how a home warranty works. For a small trip charge anywhere from $50.00 to $75.00 a service technician that the warranty company chooses comes out to evaluate the repairs needed for any covered problem. If approved it is repaired or replaced at the warranty companies expense. These policies range from $300 to $750 dollars per year depending on what type of coverage is needed. These are great plans for rental properties since when a problem arises the tenant can call the company instead of calling you. When listing your home for sale a warranty is also a good idea as many buyers will request it as part of their negotiations and if something goes wrong while your home is listed it will also cover your repairs. The warranty is paid for at closing and if your home doesn't sell there is no fee due. Check coverage's from the companies, since there are several companies be sure to pick the coverage that fits your needs. Ask your Real Estate agent the important question, Do you get paid for recommending this company? If necessary search home warranty companies on your own. You do not have to be selling or buying a home to get a warranty on your home so anyone can have coverage. Thanks for visiting and I hope this information helps.

Housing Trends eNewsletter- Dan Adams

Housing Trends eNewsletter- Dan Adams

Investing in a Rental Property

In the current Up and Down stock market when your stomach can no longer handle the roller coaster ride, is it time to consider rental properties as an investment opportunity for your portfolio?  If you are in a position to buy one or more rental properties yes it is. The Upstate usually has on average 130 available homes for under $35,000 that can make great rentals. A recent report by Rick Newman of US News Money lists the following about rental rates in Greenville SC.

 Greenville, S.C. Average rent: $677; annual increase: 5 percent; unemployment rate: 8 percent.
A low cost of living and a healthy concentration of companies like BMW, Michelin, IBM, Bank of America, and Bausch & Lomb have kept the economy humming in and around this "upcountry" city in northwestern South Carolina. Rents are cheap, so a fairly small hike is enough to land Greenville on the list of biggest percentage increases. That reflects an economy regaining strength throughout the south.

Now is the time while prices are down and interest rates are at all time lows to look at adding rental properties to your portfolio. Hope this information is helpful. Thanks for looking.

Single Family Homes Sold in The Upstate

Good Morning......As mentioned I want to give everyone an opportunity to receive information about Real Estate here in the Upstate of SC. If you are looking to buy or sell a home this information should help. In the past 30 days here in the Upstate, based on information gathered in the Multiple Listing Service there were 431 Single Family Homes sold, the sellers received on average 94.8% of their asking price and the average days on the market was 107. Keeping this in mind will help you when making an offer on a home or receiving an offer on a home. There were some other factors including seller paid closing costs this can range up to 3 1/2 % of the sales price. I hope this information helps and feel free to let me know if you have any questions. Thanks for visiting.

S.C. housing shows signs of stabilizing, report says

S.C. housing shows signs of stabilizing, report says

New Information for Real Estate Investors, Buyers, Sellers and Agents

Welcome to my new Blog. I will be posting new information daily on what is happening in the Real Estate Market here in the Upstate of SC. I will also be giving tips to Buyers, Sellers and Investors in this ever changing Real Estate Market. I will also be posting some great information for Real Estate Agents to better improve their business and achieve their goals. Check back often and if you need specific information let me know and I will research and post for everyone to learn. Thanks for visiting.