TeamDeBrito's Blog

Tips for Packing Like a Pro

2007-03-06T10:19:59Z

1. Develop a master "to do" list so you won't forget something critical.

2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.

3. Don't throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you'd feel if you no longer had it.

4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.

5. Decide what if anything you plan to move yourself. Precious items, such as family photos, valuable breakables, or must-haves during the move, should probably stay with you.

6. Use the right box for the item. Loose items encourage breakage.

7. Put heavy items in small boxes so they're easier to lift. Keep weight under 50 lbs. if possible.

8. Don't over-pack boxes and increase the chances they will break.

9. Wrap every fragile item separately and pad bottom and sides of boxes.

10. Label every box on all sides. You never know how they'll be stacked and you don't want to have to move other boxes aside to find out what's there.

11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.

12. Keep your moving documents together, including phone numbers, driver's name, and van number. Also keep your address book handy.

13. Back up your computer files before moving your computer.

14. Inspect each box and all furniture for damage as soon as it arrives.

15. Remember, most movers won't take plants.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Common Closing Costs for Buyers

2007-03-06T10:19:11Z

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for:

- Downpayment
- Loan origination fees
- Points, or loan discount fees, you pay to receive a lower interest rate
- Appraisal fee
- Credit report
- Private mortgage insurance premium
- Insurance escrow for homeowners insurance, if being paid as part of the mortgage
- Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
- Deed recording fees
- Title insurance policy premiums
- Survey
- Inspection fees-building inspection, termites, etc.
- Notary fees
- Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

What to Keep From Your Closing

2007-03-06T10:18:13Z

- The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You'll need this for income tax purposes and when you sell the home.

- The Truth in Lending Statement summarizes the terms of your mortgage loan.

- The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.

- The deed transfers ownership of the property to you.

- Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.

- Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.

- Insurance policies provide a record and proof of your coverage.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Understanding Agency

2007-03-06T10:16:58Z

It's important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transactions. Ask your salesperson to explain what type of agency relationship you have with him or her and with the brokerage company.

1. Seller's representative (also known as a listing agent or seller's agent). A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

2. Subagent. A subagent owes the same fiduciary duties to the agent's principal as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not representing the buyer as a buyer's representative or operating in a nonagency relationship, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

3. Buyer's representative (also known as a buyer's agent). A real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or by a commission split with the listing broker.

4. Disclosed dual agent. Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

5. Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

6. Nonagency relationship (called, among other things, a transaction broker or facilitator). Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

12 Tips for Hiring a Remodeling Contractor

2007-03-06T10:14:31Z

1. Get at least three written estimates.

2. Get references and call to check on the work. If possible, go by and visit earlier jobs.

3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.

4. Be sure that the contract states exactly what is to be done and how change orders will be handled.

5. Make as small a downpayment as possible so you won't lose a lot if the contractor fails to complete the job.

6. Be sure that the contractor has the necessary permits, licenses, and insurance.

7. Be sure that the contract states when the work will be completed and what recourse you have if it isn't. Also remember that in many instances you can cancel a contract within three business days of signing it.

8. Ask if the contractor's workers will do the entire job or whether subcontractors will do parts.

9. Get the contractor to indemnify you if work does not meet local building codes or regulations.

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.

11. Guarantee that materials used meet your specifications.

12. Don't make the final payment until you're satisfied with the work.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

5 Factors That Decide Your Credit Score

2007-03-05T21:59:27Z

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

1. Your payment history. Whether you paid credit card obligations on time.

2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you
are overextended.

3. The length of your credit history. In general, the longer the better.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

5. The types of credit you use. Generally, it's desirable to have more than one type of credit-installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, go to http://www.myfico.com/.

If you would like a credit evaluation visit http://www.teamdebrito.com/ and click on "Get Lender Pre-Qualification"

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

8 Steps to get your finances in order

2007-03-05T21:56:54Z

1. Develop a family budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt-car loans, student loans, revolving balances on credit cards-down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down-or even less in some cases-you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Visit http://www.teamdebrito.com/. There you can pre-qualify for a loan. Find out how much you can afford.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Credit is still a mystery for many consumers

2007-03-05T21:55:16Z

Although a new survey conducted by the Consumer Federation of America and Providian Financial concludes that American consumers understand credit scores better than ever before, most credit consumers are still unaware of the basic facts about credit scores and their financial importance.

For instance, more than 75 percent of those polled mistakenly believe that they have the right to obtain their credit score for free once annually. This is true only of a consumer's credit report, not his or her credit score. A large number of consumers also remain in the dark about the characteristics of credit scores, with only 27 percent understanding that scores measure credit risk - not credit knowledge, amount, or attitude.

If you would like to know more about credit information, contact us. We can also assist you in getting prequalified for a home loan. Contact us via http://www.teamdebrito.com/ .

Customer Service is King

2007-03-05T21:51:00Z

The days of providing a quick service and getting a big paycheck are gone. For the Realtor, the biggest expense and effort is finding a client. Once that is done it then is a easier process to make the deal work.

There are many new factors in today's Real Estate deal. Many competitors are dealing in high volume and forgetting about customer service. The National Association of Realtors writes: "In today' s real estate marketplace the impetus to provide quality customer service is making a comeback. Competition, economic uncertainty, and shifting business dynamics have put the pressure back on the salespeople to go the extra mile to close the sale. For new home builders that may mean extra attention to details, offering high end options, and soliciting customer feedback to continue to improve the product and sales experience. For Realtors, it can mean focusing in on niche markets to showcase an area of expertise, providing staging tips, sharing financial know-how, and offering value added commodities like community data and lists of qualified home repair professionals. The goal of the sale should not just be to seal the deal, but to create a lifelong customer."

This is our goal at http://www.teamdebrito.com/ . In fact many of the services we provide are free to the community. We do this as a way of giving back to the community. Yesterday we did a free Comparative Market Analysis of a home, not to get a contract, but to help an older couple effectly plan their estate.

We also provide free advertising and signage for For Sale By Owner, (FSBO) sellers. Many people doubt our willingness to provide these services, but for us it is a way of giving back to the community, a portion of what they are giving us. Yes it does come back to us in time but that is what great service is all about.

Realtors Can Help You Find A Job

2007-03-05T21:48:37Z

Realtors Can Help You Find A Job

Want to move but need employment first? Perhaps you have a job but your spouse needs employment to suppliment the income and you cannot relocate until employment is secured. Check with your neighborhood Realtor. Remember, a Realtor is an expert broker. They connect those seeking with those who have something of value.

Check out http://www.teamdebrito.com/ and click on the "Employment Listings" link at the bottom of the page. There you will find dozens of corporation HR websites of Colorado Springs employers. There is also a link to Csurf which lists many more smaller employers. Finally there are several job search websites. My favorite is http://www.indeed.com/. This page searches all of the other job search sites and compiles them in one place. Often you will see jobs there are not posted anywhere else you have looked.

You can also call or email your Realtor. Chances are they know someone, who knows someone...