Can I buy a home that is pending?

A: The shorter answer to that question in most cases is no. If there is another offer on the house, that offer is a binding contract to purchase the home. However, in real estate the one thing that is always true is that a transaction is never closed until it’s closed.
And there are opportunities – buyers do back out, their financing fails, they find something that they don’t like on the inspection. So there may be an opportunity for you to get that house if the first buyer decides to back out.

The best way to approach it as a consumer is to work with me to so that I can reach out to the other agent involved and make your intentions known that you’re interested in the house and if any status changes on the home, you should go ahead and alert us promptly so that we can put in another offer on the home. If you’re really interested in the home, you could even put in a back-up offer so that your offer would automatically become active if the first buyer were to fall through.


Thanks for the article Kevin Lisota

Tips on Buying a Luxury Home

While home prices across the country have dropped or stabilized to varying degrees, luxury home prices have been slashed.
This presents a great opportunity for those who have the financial resources to purchase a luxury home that might have been completely out of their range six years ago.

“Purchasing a luxury property, however, is unlike a standard home purchase. We advise all our luxury-home clients to consider the following before embarking on their search:

1. Weigh the finances carefully.

Even if you’re ready to pay cash for your luxury home, you still want to ensure you’re getting the best possible value and potential return on investment from your home purchase. Make sure you truly have the financial wherewithal to remain in the home as long as you’d like. Consider the stability and growth potential of your future income before moving forward.

2. Have your documentation in order.

Many luxury home buyers derive their net worth from a variety of sources and investments. Given the high-end purchase price of a luxury home, along with today’s unstable economic climate, prequalification is often necessary when it comes to luxury purchases.

3. Investigate alternative search methods.
The best luxury property deals might not be found through traditional real estate search engines but rather through word of mouth. I am well connected and networked in the communities your are considering.

4. Seeing is believing.
Expansive square footage, sprawling property, and a bevy of incredible views often make luxury homes difficult to completely capture in photos, videos or virtual tours. A visit in person is an absolute must to make sure you’re not missing any potential details and, conversely, to make sure the property lives up to its image.”

Thanks for the article Anita Rich’s


I specialize in helping my clients with the purchase of their luxury homes. Call me today for all your needs.

Loan Tips for Self-Employed Home Buyers

If you are self-employed and are considering purchasing a home, it’s important to be aware of the changes that have occurred in the world of lending.

Here is a quick check list for prospective buyers.

As everyone is well aware, getting a loan is not nearly as easy as it used to be. Those who are self-employed are having a more difficult time borrowing money and must provide documentation that shows their income. The IRS is being contacted for income verification by many lenders and any fraudulent income claims are being dealt with.

In a nutshell, if you are self-employed and applying for a mortgage loan, be prepared to:

Line up all of your documents showing your income before going to apply for a loan.(2 years tax returns including all schedules)

Check your credit and do what you can to improve your credit score.

Pay your bills on time.

Most importantly, tell the truth. Misrepresentation can cost you.

Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates have been decreasing since April, closely tied to the unsteady economy where wary investors are putting their money in safe investments like treasury bonds. As these yields go down, interest rate goes down as well. In other words, the unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans.

If you are self-employed and can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan.

Call me today with help concerning the documentation needed for a self-employed borrower.  Helping you find the home of your dreams is one of my top priorities.

Thanks Lee Dworshak for the information.

Basic Water Heater Facts

If you are a new homeowner, you may not realize that your home’s water heater uses the third largest amount of energy of all your household appliances. A water heater is crucial and in most cases you cannot reduce the amount of use that it gets.
Below are ways you can increase the efficiency of your current water heater or even replace it with a more efficient solution.

First, if you don’t want to replace your current water heater, here are three things that you can do to increase the efficiency of your water heating.

          Use less hot water. Consider taking warm showers instead of hot showers, and lower the temperature of your dishwasher.

Take shorter showers when possible, or install low-pressure shower heads. Many people incorrectly believe that baths use less water than showers. Four people showering for five minutes each, three times a week use almost 1,000 gallons of water every single week.

Insulate! Just as insulating your attic reduces heat loss through the roof, insulating your water heater keeps water hot for a longer period of time.

If your water heater is more than five years old, you may need to replace it in the near future. If it is more than ten years, definitely consider replacing it before it stops functioning.
Water heaters are an enclosed mechanism and therefore cannot be repaired. It is always good to know which replacement model you will select if your water heater stops working.”

Get Landlord Insurance for Rental Property

With so many affordable bargains in the housing market, people are beginning to purchase real estate as an investment again – or, if they can’t sell their home quickly, converting it to a rental property.  But are you prepared to become a landlord?

I highly recommends any owner carry landlord insurance.

There are several things you want to make sure are covered by your landlord policy.  Most importantly, your policy will cover you against damage to your property.

For example, if there is a fire that makes the property uninhabitable for a period of time, your insurance will not only cover the repairs, but also the lost rental income during the period you’re unable to rent it out.

Your policy should also cover legal disputes with tenants.  For example, if your tenants have stopped paying rent, but have not left the property and you need to take them to court, your policy should cover your legal expenses.

Finally, there are certain situations in which your property might cause damage to your tenants’ property.  This is a sticky situation.  First of all, your tenants should have their own renters insurance to cover their personal property.  However, if you are negligent in addressing an issue that ultimately causes damage to your tenants property, you need to be covered. 

For example, your tenant notifies you several times that the roof is leaking when it rains, but you neglect to have the roof repaired.  If the roof collapses and destroys some of their furniture, you are responsible.  However, if the tenant has not made you aware of the problem, you are not negligent.

This is  just a small amount of information I offer my clients looking to buy properties.  Call me today to discuss ways to help you buy rental properties at a good value.

Thanks Robin Jones for the information.

Do I Need a Realtor to Purchase a Newly-Constructed Home?

     

Buying new construction can be very complicated and I definitely recommend that you hire a Realtor that is experienced in helping clients buy new construction. Depending on what stage of construction (if any) the new home is at when you find it, there are so many factors to take in consideration. Even if you are not a first-time homebuyer (but particularly if you are), you should want an experienced Realtor giving you professional expert advice. 

There are things that I do for my clients that you might not, which could save (or cost you) thousands of dollars down the road. Just a few examples would be having a first home inspection after the building is framed but before the walls and flooring are finished, so that your home inspector can get a good look at the structure, framing, plumbing, electrical, etc. Home inspectors are more skilled then city/town inspectors, so you can’t just rely on a closed building permit. Or I might recommend that when the house is being built to include another heat zone for the basement or a walk-up attic, if you know your family may be expanding.

Lastly, you didn’t ask but I highly recommend that you have a real estate attorney look through and help negotiate the contract to purchase and/or purchase & sale agreement. The standard forms builders use and the specification (“spec”) sheet included are usually vague and not comprehensive enough to cover all the details, and in buying new construction, the devil really is in the details. Which underscores why I recommend you have a real estate attorney and myself in the purchase of a Newly constructed home.

Looking forward to doing business with you.

Thanks David Kres for the information.

Have a home fire escape plan and practice it regularly

Too often people panic in this situation because they do not know what to do. You and your family should make a fire escape plan to insure that everyone gets out of the house quickly and safely.

• Draw a home fire escape floor plan of your home or apartment. Be sure to mark all the doors and windows.
• Know two ways out of every room. If one way is blocked by smoke or fire, you can use the second.
• Plan a waiting place where everyone will meet. Plan to call the fire department from a neighbor’s house. Don’t go back in the house!
• If someone is trapped, let the fire department rescue them.
• Practice your home fire escape plan until it becomes automatic. Then practice again at least twice a year. Too often families make plans and then put them away in a drawer or filing cabinet. When a fire occurs, you will not have time to search for your plan.

Know what to do if you hear an alarm
When you are in your room and you hear a smoke alarm go off or someone yelling “fire” or “smoke,” you only have a few minutes to get out of the house.

• Get down on the floor and crawl low. Both smoke and heat rise, so if you stay between 12 and 36 inches off the floor you will avoid the high heat and toxic fumes.
• Check the door before opening. Look for smoke coming in around the frame. Feel the door with the back of your hand. If you have a solid door, it will be hot to the touch if there is a fire on the other side.
• Open doors slowly and carefully. If a door is cool enough to open, you still need to be very cautious. There could still be fire on the other side. When you open the door, put your head down and tilt you face away from the opening. Open just a little, so it will be easy to close if you detect a fire.
• Close doors behind you. Remember that closed doors will slow the flow of oxygen to the fire and give you added time to escape.
• Learn how to escape from windows. If you are on the first story exit the window, feet first. Grab on to the ledge and hang down as far as you can and then jump. Do not attempt to exit a window any higher up except as a last resort.
• Do not use an elevator. If you live in a high-rise, locate the fire escape and use it. A fire can disable the elevator, you could be trapped.

Use the grid below to make your home fire escape plan.

• Start off by drawing the outside edges of your house then draw the inside walls, rooms, doors, etc.
• Once the house is drawn, mark an escape route so that every room has at least two ways to get out in the event of an emergency.
• Family members should become familiar with this plan and have a central meeting place outside of the home for the family to meet.
• Make sure that someone is assigned to help younger children and older family members.
• Practice the plan!!

right click save as - home fire escape plan sheet

Here is a checklist to review after practicing your home fire escape plan . . .
Know what to do if you hear an alarm

Did you remember to. . .

• Make a home fire escape plan floor plan and know two ways out of every room?
• Respond quickly and calmly?
• Stay low and crawl?
• Feel the doors to see if they are hot?
• Open doors slowly and carefully?
• Close doors behind you?
• Exit windows by dropping feet first?
• Go immediately to a meeting place?

Your Home Fire Escape Plan is a valuable prevention safety measure.