There's been an awful lot of talk about inflating sales prices with money back at closing... to have the buyer get into a home for next to nothing... a practice that was never advisable and was always AT LEAST on the edge legally...

And then there's the "respectable" broker here who wanted to handle a failed septic outside of closing with the specific instruction to NOT notify the lender of the failed septic so as not to "alarm" them...  Let me give you a clue.. THAT didn't happen!

Ethics, folks...

Here's an example of the practice gone wild... Fraud on steroids...

http://www.latimes.com/business/la-fi-agents3aug03,1,3534312.story?ctrack=1&cset=true

REAL ESTATE

Brokers to Westside elite accused of fraud

2 Beverly Hills agents and appraisers are indicted in a scam that allegedly inflated home prices and loan amounts. By Annette Haddad and Diane Wedner, Los Angeles Times Staff Writers
August 3, 2007
Two high-profile Beverly Hills real estate agents and two licensed appraisers were indicted Thursday on charges of joining in a sophisticated scheme that lenders said cost them more than $40 million in fraudulent loans for homes in some of Southern California's most expensive neighborhoods.

Joseph Babajian and Kyle Grasso, agents with Prudential California Realty, along with appraisers Lila Rizk of Trabuco Canyon and Scott Robinson of Dana Point, were each indicted on multiple counts of conspiracy, bank fraud and loan fraud. They face several years in prison if convicted, said Assistant . U.S. Atty. Jeremy Matz. Babajian and Grasso are also charged with money laundering.

Babajian and Grasso are considered part of the Westside realty royalty because they routinely close millions of dollars in sales annually and tout some of the biggest names in Hollywood as their clients. Their deals often appear in The Times' Hot Property column.

Babajian claims on his website to have sold $182 million in real estate in 2006 alone. More recently, he and Grasso were the listing agents on a $22-million Beverly Hills estate purchased by soccer star David Beckham this spring.

The indictments stem from a federal investigation that has led to guilty pleas from four other people on similar charges, including Mark Alan Abrams, a real estate financier with a history of fraud judgments against him. Abrams made headlines two years ago, when he was fined $270,000 by the Los Angeles Ethics Commission for laundering political donations to James K. Hahn's mayoral campaign. The four are awaiting sentencing.

Matz said the scheme highlighted how fraud was perpetrated on the high end of the once-booming housing market. That contrasts with recent publicity about "liar loans" obtained by sub-prime borrowers with weak credit status and no money for a down payment.

"This case targeted the opposite end of the market: high-end homes on the Westside involving loan products geared toward wealthy individuals with good credit," he said.

None of the latest defendants was taken into custody, Matz said, but they have denied wrongdoing.

"Joe and Kyle are innocent of these charges," said Palo Alto-based attorney Mark Flanagan, who is representing Babajian. "They have always conducted their business lawfully. They look forward to vindicating themselves in court."

Los Angeles attorney Jan Handzlik, who is representing Rizk, said his client denied the charges.

"She looks forward to her day in court and expects to be found not guilty," Handzlik said.

Efforts to reach Robinson or his attorney were unsuccessful.

The only defendant with a trial date so far is real estate developer and former fugitive Charles Elliott Fitzgerald of Newbury Park. His trial is scheduled to begin Nov. 13 in U.S. District Court in Los Angeles. Fitzgerald had fled the United States in 2003 after he was sued by one of the mortgage lenders, but he was captured in Samoa in December.

From 2000 to 2003, Fitzgerald, Abrams and the others allegedly doctored paperwork, including preparing bogus real estate purchase contracts and appraisals, to trick banks into funding mortgage loans that were hundreds of thousands of dollars higher than the homes actually cost, according to court documents.

The defendants played different roles, with some allegedly acting as "straw" buyers and others allegedly using their professional licenses to obtain title insurance and other documents necessary for property transactions.

They sometimes allegedly "flipped" properties: buying at one price and reselling to a straw buyer at a significantly higher price. In the process, they inflated comparable sales data for neighborhoods in Beverly Hills, Holmby Hills and Malibu, prosecutors said. That helped them continue the alleged scheme because they used the "false" data to persuade banks to fund subsequent purchases, court documents show.

One transaction detailed in the indictment was the 2000 purchase of a Beverly Hills home by Fitzgerald and Abrams for $2 million, which they told the bank was purchased for $4.395 million after receiving allegedly inflated appraisals from Rizk and Robinson, prosecutors said.

Babajian and Grasso had the listing on the home and allegedly manipulated the Multiple Listing Service database to falsely report to the sales agent community that it was listed and sold at $4.495 million.

A phony loan application was allegedly devised in the name of a straw borrower and sent to Lehman Bros. Bank. It unwittingly funded a loan of more than $2.8 million -- about $800,000 more than the true $2-million purchase price, prosecutors said, and the defendants split the proceeds from the fraud.

Thursday's indictment alleges that Babajian and Grasso profited by collecting hundreds of thousands of dollars in commissions and concealed payments. Rizk and Robinson allegedly profited by collecting fees from inflated appraisals.

Some Westside agents have said that during the recent housing boom they were often approached by prospective buyers who sought to exploit rising real estate prices by getting sellers and their agents to agree to inflated home prices.

Some of the schemes involved listing hundreds of thousands of dollars in nonrecurring closing costs as part of the loan amount.

If Babajian and Grasso are convicted, they also could be subject to disciplinary action by the California Department of Real Estate, including the revocation of their real estate licenses, according to state law.

The real estate department usually opens an investigation after it receives a complaint, gets information from media coverage or receives a referral from law-enforcement agencies, a department spokesman said.

annette.haddad@latimes.com

diane.wedner@latimes.com

As seen in the Seacoast Scene

July 3, 2007

Seacoast, New Hampshire Real Estate Market Watch

I have the facts for you on the first six months real estate market for 2007. Market activity, pricing trends, absorption rate, the works. That's good news and bad news. If you've been reading my column these last few months, you know I give the facts as they are without pulling any punches. The challenge, of course, is how do I present the data to you in a form that's meaningful and understandable. While statistical data is the factual basis for everything, it's next to impossible to present without making you fall asleep or abandon reading this column. (Too late already, you say, as you go back to review Johnny Mac's Witty's.) So let's get right to it. All the news media has reported for the last two years is the gloom and doom, sky is falling reports. While it's true that 2006 and 2007 have been correction years for the real estate market, there are some very encouraging signs. For the purpose of this report, we'll be talking about a 11 town sampling along the seacoast, and in this article I'll talk about the total market- all price ranges- and I'll break that down into condos and home sales- the difference between the two is significant.

Home Sales Very encouraging news on the home sales front: The first six months of 2007 saw an increase in sales of almost 14% in the sample towns over the same period in 2006. The flip side of this is that the median price was 7.34% less than 2006. this is the correction we've been talking about. More home sales volume, but a lower median price. This means that many more homes sold in these towns this year, 396 as compared to 336 for the first six months of last year. There continues to be an abundance of inventory in the marketplace, and this is measured by how long it would take at the current home sales pace to sell the inventory currently on the market. Using sales data from the first six months of the year, we come up with an Absorption Rate of 11.68, that is to say it would take approximately 12 months to sell the current homes on the market. Average days on market rose from 122 on 2006 to 142 in 2007.

Condo Sales While the median condo sales price for this sampling was exactly the same as 2006 at $249,00, the sales volume news was less encouraging. Condo sales volume was over 15% less this year than the same period in 2006. Coupled with the steady pricing median, this equates to 225 condos sold in the first six months of 2007 as compared to 272 in 2006. Inventory levels continues to increase for condos, and at 482 condos currently on the market, it would take almost 13 months to sell the current supply, using the same six month sales trend we applied in the home sales analysis. Average days on market rose from 113 in 2006 to 166 in 2007.

So what does this all mean? It's really what I've been telling you right along- real estate is selling, but there is an abundance of supply. If you are a buyer, this means you have a good situation: abundant selection, some price adjustments and low interest rates. If you are a seller, this means you can indeed sell your home, but you have to pay attention when pricing, home staging and marketing your New Hampshire home. There is competition in the marketplace, and your home has to stand out to move. If you want or need to sell, you must get these things right! If you are buying and selling, chances are you will balance out by getting a nice deal on your new home while taking a bit of a hit on the home you are selling. You can't often have it both ways! As I said, this is a broad brush look- all price points for 11 New Hampshire Seacoast towns. As you narrow the location and the price point, you will have varying results. Your Realtor will be able to give you the market trends and absorption rate/ forecast for your home, or you can contact me anytime.

Data presented was derived from the Northern New England Real Estate Network, an MLS system, and is for the towns of Hampton NH, Hampton Falls NH, North Hampton NH, Rye NH, Portsmouth NH, Newcastle NH, Stratham NH, Greenland NH, Exeter NH, Seabrook NH and Kensington.

Search ALL homes, condos and land for sale in New Hampshire.

Bill Faulkner is a Realtor® with ERA The Masiello Group in Hampton, New Hampshire and can be reached at 603.601.1112.

As seen in The Seacoast Scene

May 19, 2007

Home sales are up in the New Hampshire seacoast!  

Do I have your attention? 

Good, because while that statement is true, there's a lot behind that statement, and there's a catch or two.  Don't sing my praises yet, because I bring you sobering news.  

To use a broad brush for all housing, sales are down statewide 6%, and nationwide 8%.  This is largely what you see on TV that has caused such a Chicken Little "The Sky Is Falling" perception. In Rockingham County NH, which is where our beloved seacoast lies, sales are UP 5% in the first quarter 2007 as compared to first quarter 2006.  My office's home (unit) sales are up almost 21% over the first four months of 2006! This is great news for home sellers in the seacoast.   

Now the catch:  Prices and values have declined - nationwide, statewide, and locally.  It's not what the home seller wants to hear, but it's a fact.  Home sale prices in Rockingham County are down 6% year to year from 2006. What does this mean to you?  

If you bought a home in the last 3 years or so, your investment has probably depreciated.  If you're looking to sell that recently purchased home, reality is that it will probably sell for less than you bought it for.  Real Estate has traditionally been a very solid investment over time, but it is cyclical, and we're in a depreciating cycle.  

Careful now- a depreciating cycle is not a market crash!  SO many people jump to the worst case scenario, that kind of thinking spreads like wildfire, and perception becomes much worse than reality.  

So... homes sell in any market.  How do you sell your home in this market?  There are several significant factors, as you've heard me say in the past, but the single most important factor right now is price. 

That should come as no surprise at all.   

Homes and condominiums that are priced properly are selling in a reasonable period of time.  Those that are priced higher than market sit and languish.  If your Realtor has done a market analysis and given you a price range based on market data, why do you argue and insist your home be listed higher?   

There are a number of reasons of course, including pride, "expert" neighbor pressure, (admit it!), what you owe on the home, and what you have invested.  News flash:  None of these factors have anything to do with the market value of your home.  You and your neighbors don't determine market value, the buyers do. Beware of a real estate agent "buying the listing" by agreeing to list your home at a value you are comfortable with rather than one backed up by market data just to get the listing.  

I wish I could tell you how many times I've spoken to a prospective seller who had done their homework and met with 2 or 3 other Realtors about selling their home... they come back to me saying they trust my professionalism, my company, my team, my marketing capabilities, my strategy for their home sale, only to insist they want to "try" to sell the property at a higher price one or two of the other agents gave them.  Pardon me?   

Guess what happens in a declining market when you price your home too high to "test" the market.  The value continues to decline while you're testing, and by the time you actually bite the bullet and get to the right price, it sells for less than the market value you objected to in the first place.  This is called "chasing the market down" and is a losing proposition. You lose money by pricing too high, time and time again.   

And you know what the best part is?  You blame the Realtor!  

I love my job.  I'm good at it. I have a recommendation for you this week:  If you trust your Realtor, ( and I certainly hope you do!), take his or her advice.  We're professionals in a complex business.  We can help you get the most for your home if you let us do our job.  

As I say, I'm not here to give you a blue sky picture of the market.  I give you the facts, and sometimes it's not what you'd like to hear, but believe me when I tell you:  It's what you need to know.  

Statistics courtesy of New England Real Estate Network, New Hampshire Association of Realtors, and demographer Peter Francese.  Used with permission.  

Bill Faulkner is a Realtor^® with ERA The Masiello Group in Hampton and can be reached at 603.601.1112 or bill@BillFaulkner.com.  

As seen in The Seacoast Scene 

 May 27, 2007

The secret to selling your home fast!  

Ahh... another catchy headline to grab your attention.   

If there were one secret, everyone would do it, and then it wouldn't be a secret!  

Instead, in a market like this, there are many things you can do to enhance the visibility and desirability of your home.  Remember, when there are many more homes for sale than are selling, (a buyer's market), you have to make your home stand out above the crowd. 

I have some things that will help, but as our president says.. "It's hard work".  Are you up to the challenge?  

Pricing:  I'll get that point out of the way right off the bat, because I know you're sick of me talking about it.  Simple fact in this market:  If you overprice with the intention of reducing the price if it doesn't sell or to give yourself negotiating room, be prepared to wait and have your home on the market a long time.  You won't even get to the negotiating stage, buyers will ignore your listing.  

Marketing:  This is where the rubber hits the road.  You want to get the most eyeballs seeing your lovely home.  In the past, a sign, a newspaper ad and MLS listing got the job done, but times have changed big time!  Statistics show that over 80% of home buyers begin their search on the internet, so having a strong visibility there is key to success.  Multiple web site exposure increases the chances that someone will see your home.  The local MLS on the web and Realtor.com are a good start, but hardly the be all and end all for exposure.  

Web Strategy:  Realtor.com boasts more "web hits" than any other real estate related web site, so it makes sense to start there.  If your home is on the NH MLS, the listing will show up there, but unless your Realtor has an "enhanced" or "showcase" package, (costs more money), your listing shows up with a basic description and no photos.  Statistics (there's that word again) show that the listings that get the most views have multiple photos and some sort of video tour.  It certainly makes sense then to make sure your home is highlighted or "showcased" then...  

Many other websites that you might not think of are great tools for getting the word out on your home, simply for their size and number of "hits".  Google, Yahoo, craigslist, Trulia, and AOL are some of those. Also, exposure on the web sites associated with the country's biggest newspapers are a great source of prospective buyers (many are relocating from other areas of the country).  The Boston Globe, Wall Street Journal, New York Times, and Chicago Sun-Times all have great real estate sections that generate interested buyers.  If that's the case, your home should be featured there, no?  

Great Photos:  Be sure that the photos of your property that show up on line enhance the listing.  Many sellers have multiple photos, but showing small bedrooms in small fuzzy photos hardly create a "buy me" emotion to the prospective buyer.  Multiple high quality, wide angle, large format photos are the key here.   

High Definition Video Tours:  There was a time when "virtual tours" were all the rage, but there are better options now to show off your home than those spinning claustrophobic tours... After all, they distort the image, the walls bend, and have no perspective.  Many Realtors are now using a photo slide show with descriptive text, usually with larger photos.  Some use actual video movies of your home, the yard, and maybe the surrounding area and attractions.  These movies, widescreen and high definition, really are the coup-de-grace in this area.  The catch:  they're not cheap if done right, so you don't see a lot of them in use, but they can create a buying emotion stronger than any other photo method.  

Home Staging:  Ahhh... something you may not be aware of.  A relatively new service employed on certain listings to maximize the salability of a home by de-cluttering, rearranging, and perhaps using new pieces as "props" to show your home to it's maximum potential.  There are several home stagers in the area that I use to consult or work with interested sellers who want to "pull out all the stops" in the marketing of your home.    By all means, check out Staged First Impressions, and tell Sue I asked you to contact her.  Here's a staging professional that really "gets it"!

Remember- your home is a product that together we're trying to sell in a slow, or buyer's market.  There is no room for the old "list and hope" methods.  We have to work hard together to reach your goals.  Call your agent today and "kick it up a notch".  

Statistics courtesy of New England Real Estate Network, National  Association of Realtors, and demographer Peter Francese.  Used with permission.  

Bill Faulkner is a Realtor^® with ERA The Masiello Group in Hampton and can be reached at 603.601.1112 or bill@BillFaulkner.com.  

 As seen in The Seacoast Scene

 June 3, 2007

Seacoast Homes at 50% Off!  

Come on now, you don't really believe that, do you?  If you believed everything you were fed by the media, you would think that the market is crashing and that you can buy foreclosure homes for pennies on the dollar.  

Good deals on homes can be had in the seacoast right now to be sure, but this false sense of "crashing" values sets unachievable and unrealistic expectations in the minds of some home buyers.  Some feel they can go in and place low ball offers and the home seller will have no choice but to take it.  

The funny thing is that many of these unrealistic buyers that think they can steal a home for 40% off are the same folks that will not place the homes they're selling at a realistic price.  Which brings me to a startling point:  it's all relative.  

So how do you know when you're doing well buying a home?  Nobody wants to pay too much, they want to feel like they got a good deal on their dream home, right? 

The secret is in the numbers, the data... it always is!  

When I'm marketing property I represent the seller, and as such want to counsel the seller to properly price their home so that it will sell for the best price in a reasonable period of time.  I do this by, among other things, giving home sales data and market information to the seller to assist in their pricing.  I also pull out all the stops to create a "sizzle" on their home, create a buying emotion from prospective buyers.  

Similarly, when I represent a buyer, I want to be able to provide them with proper market information and recent historical sales data on homes similar to the ones they're looking at.  This way I can realistically set expectations that they are not paying too much for the home. I also try to mitigate some of the emotional part of the purchase for my buyer clients, which could cause them to pay too much, or conversely offer way too little.  

Many buyers don't realize that when you make a low ball offer you run the very real risk of irritating the seller to the point where they will, (often irrationally), refuse to reconsider a second, more realistic offer.  This creates a confrontational negotiation process, where very often no one wins.  

It's in the numbers, folks. It always is...  

This is a very good time to be buying real estate, whether primary or secondary homes:  Unprecedented inventory levels (lots to choose from), market values have declined, and we still have historically low interest rates available.  All signs point to buy!  

You won't get your next home for 50% of market value, but at these prices and interest rates, chances are you'll find the right home for you at terms that will also be in your favor. 

Now call your Realtor, have a good discussion about what you're looking for, what you're comfortable paying, get pre approved by your lender and get about the task of finding your next home on the seacoast. 

It should be a very positive experience!  

Bill Faulkner is a Realtor^® with ERA The Masiello Group in Hampton and can be reached at 603.601.1112 or bill@BillFaulkner.com.

As seen in The Seacoast Scene

June 20, 2007 

Caution:  Bumpy Road Ahead!

This is prime home selling season- I thought this week I would share some advice right from my website: Don't make these deadly mistakes if you really want to sell your home... this is good advice whether you're trying to sell your home yourself or have it listed with a REALTOR®.

Mistake #1 -- Pricing Your Property Too High

Every home seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.

Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value

Unfortunately, a refinance appraisal may have been stated at an unrealistically high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage refinancing. The true market value of your home could actually be lower. Your best bet is to ask your REALTOR® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 -- Forgetting to "Showcase Your Home"

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.

Mistake #4 -- Trying to "Hard Sell" While Showing

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

 Mistake #5 -- Trying to Sell to "Professional Lookers"

A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a REALTOR® are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate. They may look at homes as a form of recreation and enjoyment- lining up Open Houses as a nice way to spend a weekend afternoon. Your REALTOR® should be able to distinguish realistic potential buyers from mere lookers. REALTORS® should usually find out a prospective buyer's savings, credit rating, and purchasing power in advance of a showing. This will help avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new REALTOR®.

Mistake #6 -- Not Knowing Your Rights & Responsibilities

It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money.

Mistake #7 -- Limiting the Marketing and Advertising of the Property

Your REALTOR® should employ a wide variety of marketing techniques. Your REALTOR® should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your REALTOR® is working on selling your home during these hours. As always, my advice to you is to hire a  REALTOR®   and trust in his or her expertise.    Next week:  2007 year-to-date 6 month recap:  Don't miss this one!

As seen in The Seacoast Scene

June 11, 2007 

 What is a Short Sale?

This week's topic is a very sobering one:  short sales.

For a variety of reasons, it is possible that the total debt on your home may be more than what the home is worth. Most of the time, this isn't a problem because time is the solution.  Depending on how much you owe, just wait it out and the value of your home goes up.

Problem solved, but that could take years.

That solution does not work for everyone though, because some folks are stuck in a situation where they absolutely have to sell their house. This can happen for many reasons, some good and some not so good:  relocation, financial hardship, divorce, death, illness, or anything at all. 

The result is that you may have to move, but you can't sell your house and make enough on the sale to pay the closing costs.

So what do you do?

One option is to do nothing and not make your mortgage payment.  That's a worst-case scenario because it impacts your credit rating more severely than anything else possibly can.

Another option is something called a "short sale."  This is when you fess up to the lender, let them know about your hardship and ask if they would please accept less money than you owe.

Of course, the lender doesn't want to do that, but they also don't want to pay all the costs of foreclosing on a home, repairing any defects, placing it on the market, and getting the best price they can in what may be a market already overstressed with excess inventory.  

Lenders absolutely hate to foreclose, so they may be willing to consider a short sale.  Not always. A short sale involves a lot of paperwork, time and effort and it is best if you have a real estate agent or someone knowledgeable to help guide you through the process and give moral support.  A lot of stress is involved.

The first step is to contact the Loan Service Department of your lender.  That number will be in the documentation you receive about making your payment.  Use the phone and the mail.  Keep copies. The lender will ask you to submit a financial statement.  They want to know that you really don't have the financial assets to repay the loan after you sell the home. That's just the beginning, assuming they give a tentative agreement.

Your real estate agent still has to put the home on the market, find a buyer, and get a bona fide offer.  Once that has been accomplished, you submit all contracts and paperwork to your lender for a decision.  This takes a while because there are several decision makers involved.

Your lender isn't usually your lender.  They just service the loan for your actual lender, called the investor.  Your paperwork is submitted to the investor for a decision.

Assuming you have mortgage insurance on the loan, they are another decision maker in the process.  Mortgage insurance covers lenders in the case of loan defaults.  That way they can justify making high LTV (loan-to-value) loans.

If the investor and the insurer both agree, your short sale is approved, and you can sell you home.

A short sale is basically a "forgiveness of debt."  That counts as income and you have to declare it to the IRS.   This is obviously a very complex situation.  Talk to your Realtor, be forthcoming about your state of affairs, connect with your lender, and work together to make this work for you.

As seen in the Seacoast Scene

July 3, 2007 

Common Home Buying Mistakes    Last week I spoke about common mistakes made by sellers, so I'm going to stay in that mode this week and talk about common buying mistakes, and how to avoid them.    It's a great time to be buying- there are a lot of properties from which to choose, prices have settled a bit, and interest rates are still very low.  The seacoast is a wonderful place to live and vacation, so please pay heed and go into the process with eyes wide open.   I've seen a variety of problems arise from not getting the home you wanted so badly to paying too much to not being able to close, so pay attention, and together we can make sure you have a successful, positive buying experience, whether you're looking to buy primary or vacation property.  Even smart people make these critical mistakes!  

Mistake #1:  Letting Emotion or Asking Price Dictate Your Offer   Many buyers fall in love with a home and overpay, and conversely some are so focused on getting a "deal" that they lose focus on what should be the driving criteria for making an offer:  market value.  Buyers should have a very good idea of what comparable properties have recently sold for, and start their offer process using solid data.   

Mistake #2:  Making Major Purchases or Changing Jobs   When you determine you're in the market for buying property, get frugal!  Every major purchase you make will affect your credit score, and this can affect your buying power, your ability to get a loan at all, and it can mean the difference in the interest rate you get, costing thousands of dollars over the life of your mortgage.  I've seen people so pleased to be under agreement on a new home that they go out and buy new furniture and a snazzy pickup truck only to find out at the last minute that their actions caused the home purchase to fall through!  If you're thinking of changing jobs, make sure it's a salaried position in the same industry you're currently in- if it's a commission based job, in a different field, or if you're thinking of being self employed- DON'T DO IT NOW!  

Mistake #3:  Not Getting A Professional Inspection   Even if the home looks perfect, there are things lurking beneath that could affect the livability and resale of your new home- and it could cost you dearly in the long run.  Be sure to have an ASHI certified Home Inspector perform a thorough inspection to protect your interests.    

Mistake #4:  Not understanding Your Financing   Fees, points, early payoff penalties are all things that can give you unwelcome surprises at the closing table.  Make sure your lender prepares a good faith estimate and clearly explain any fees or penalties.   

Mistake #5:  Overbuying   There is nothing worse than the feeling that you are a slave to your mortgage payment, or worse yet can't meet your financial obligations due to spending every dime the mortgage company would loan you on a new home.  Be sure to prepare a complete budget including allocations for unexpected expenses, home repairs and savings. Stay away from the lure of adjustable rates, 100% financing or interest only mortgages unless you fully understand the ramifications.   

Mistake #6:  Not Considering Resale   The house seems perfect for you and your family, but statistically you won't own it longer then 5 years, so be sure to consider function and location before you buy.  If it has too many "unique" features that you fell in love with, it could severely limit the market you'll be selling to in the future.  They say there's a buyer for every home, but try to put yourself in the shoes of the seller before you make a costly mistake- you don't want to be searching for the one buyer that shares your love of the pirate-themed living room, you want a wide range of buyers fighting over your home!  As I heard long ago- begin with the end in mind.  

Mistake #7:  Not Using A Realtor   This item may seem more than just a bit self serving, but a good, experienced Realtor will help guide you through the pitfalls and make sure you have all the information to make your home buying experience as stress free and financially beneficial as possible.  You don't go to court without a lawyer, don't buy a home without the assistance of a professional.   Now get out there and enjoy the holiday week!  Wouldn't it be great to live here?  You'd feel like you're on vacation all the time!  It's a wonderful lifestyle at the seacoast...