Have you ever wondered what the difference is between a condo, and a town home? Well, if you answered yes to this question, you are certainly not alone. In fact, I was surprised to realize that most people do not know the difference, there seems to be much confusion and debate on this subject even between professionals. I thought it would make for a great educational blog regarding this subject to clear up these common mis-conceptions.
According to the Realty times; A condominium buyer owns their unit, plus a percentage of the surrounding property, including land and amenities on the property. Residents are members of a homeowners' association (HOA) and pay a monthly fee to the association in exchange for maintenance of the common property. Each condominium complex has a master deed which outlines the percentage of ownership. That percentage determines residents' monthly dues to the association. Condominiums come in a variety of styles, from two- and three-story buildings apartment-complex style to luxurious high-rise properties with views of the surrounding city. The terms of condominium ownership sometimes are cloudier, because owners share more common areas (for example, stairs and hallways) than town home owners.
A town home buyer owns their unit, as well as the ground underneath that unit. Each town home has its own roof and (most) have their own address. For example; (123 Any street,) as opposed to a condo address ( 123 Any street unit 1A) Town home residents also typically belong to a homeowners' association (HOA) and pay monthly fees in exchange for the general maintenance of common outdoor areas. Town homes sometimes include single-family home amenities such as garages and backyards ( maybe, very small backyards), in which maintenance is the responsibility of the owner and not the association.
So, now that your aware of the difference between a "condo" and a "town home maybe we should explore the pros and cons of these type of ownerships versus a single family property...
Something happened this week that brought to mind the technology that we use on a day to day basis that most of us, probably never think about. One of those wonderful things is the very useful but sometimes terribly mis-used text message. I know that it is very helpful and also saves alot of time, especially when your in a big hurry and can't bear to get tied into a phone conversation with that chatty agent who has nothing better to do that talk about her uncle Bob's hip-replacement surgery. LOL, that was a joke but on a serious note I thought it would be a great idea for a list of some do's and do not's of texting...Most of these "should be" common sense but apparently, (after the ordeal this week) I learned some of us may be a little slower than others....so here it goes!
Text messaging 101...
1. Keep them short and sweet. If you need to write someone an in-depth message, send an email. Otherwise, give them a ring or see them in person. Long texts can be confusing or tough to respond to.
2. Consider your wireless costs.If upgrading to a different mobile plan includes unlimited texts and you're an avid text messager it maybe worth the extra cost,but above all consider the person your texting 500 times a day. Make sure that your texting habits is coherent to their plan as well as your own.
3. DON"T text while driving. LOL, okay This one falls into the common sense thing I was referring to in the beginning of the blog. Do I need to go into the why nots of this one? Okay, If you insist!
4. Be conscience of the tone of your text. It is extremely difficult to discern tone in text messages, same as in e- mail. What seems to you to be a completely innocent message may be grossly misinterpreted by the recipient, causing certain discomfort if not irreparable harm. Also, consider that your point may not be getting across though text message and your receiver may not understand (or worse, may mis-interpret) what your trying to convey to them. So, do yourself a favor, take the plunge and pick up the phone for important issues.
5. Be conscientious of others' schedules.Don't assume that because you are awake, not working, not busy, or (in extreme cases and we all know this person) NOT sober that the person you're texting is as well. Many peaceful dreams have been interrupted by the recurring text messenger that has no boundaries about who, when, and where they text.
6. Texting should remain casual. Texting can be fun but it should be for casual conversation. Use it to say hello, change of plans, etc...do not use text messaging to send out; into outer space, every thought that pops into your head. When you put something out there,try to remember that it is out there and it cannot be taken back. There is no guarantees who besides the person you are sending this to will run across your personal message. In these cases PLEASE use your phone to call the person or better yet have a good old face to face.
These are good rules of thumb that comes to mind, please feel free to add your on. I would be interested to hear your takes on this subject.
Most BPO forms ask the agent to indicate what a property will sell for within 30 days and within 90 - 120 days. In setting a price, the bank considers:
current, local market conditions including active inventory, average days on market, etc.
shape of the property;
how much of a loss it has already taken on the original mortgage and the foreclosure process;
amounts paid for trash-out and any work required to make the home safe and secure, i.e., winterization;
carrying costs (insurance, taxes, bare-bones maintenance, utilities, etc.) during the time the REO is listed;
the commission it will pay both agents - a fixed percentage in my experience.
Based on these factors, the bank also looks at its internal situation. How many REOs are they carrying? How quickly does the bank need to "unload" the property? Let's remember that most banks are "for profit" organizations; many report to shareholders. Nevertheless, an REO list price is usually a good deal.
Stealing an REO
Interested in getting a foreclosure for 70% or less of list price? Ain't gonna happen!
The list price is typically a huge bargain already. The bank really DOES know what a fair offer is, based on hard data for local market conditions. The list price takes the shape of the property into account, so don't expect another discount based on bad condition. The bank will not take lowball offers seriously and may not even counter one.
The bank knows that most homes in an area the average sold price is XX% of the list price - in my Sussex County, NJ, market area, this ratio is 95%. While a bank might accept slightly less than the average ratio, my experience shows that this percentage gives one a great idea of what number the bank will accept.
I've found REO banks to be even less flexible on price than non-corporate sellers. Why? Because they know their list price is a steal, which is why buyers come in droves to look at REOs.
Non-Money Components - Your offering price is just one factor
Closing Date: If you want to purchase an REO, offer to close in 30 days. Yes, I realize this is quick but it has a dollar value! Banks want the REO off their books, especially if the closing will be prior to the end of a financial quarter.
Paperwork: Complete and submit every piece of paper the bank has requested. Most banks have their own forms and want them used. For my REO listings, I can load them in the MLS for any agent to readily obtain. Banks will reject offers that are missing the required paperwork.
Down payment: Some banks specify a percentage of the price as minimim earnest money. In every case, I suggest the "good faith deposit" be at least 1.5% of your proposed purchase price. Show the bank you are a serious buyer. A strong second deposit (post-contract, before closing) will also sway the bank in your favor.
Mortgage: A few banks want a shot at your loan and insist they do your pre-approval, even if you have no intention of using them for the loan. (Remember, it is their property and they can make whatever rules they want...) Even without any imposed requirements, a pre-approval from a "brand name" will strengthen your offer. Sure, you can actually then get your loan from "My Cousin Vinnie's Finance Center in Podunk" but a name-brand might just be that little added extra that gets your offer accepted by the bank.
Here is why I earn the big bucks (ROFL)
A tip I use to help my buyers "steal" an REO.
Banks tend to have a very aggressive price-reduction strategy. They want to sell the REO quickly even if they will not consider offers far below the list price. Many banks drop the price almost monthly, assuming no offers are being negotiated. Waiting until the price drops where you want it to be could mean someone comes in ahead of you -DON'T RISK LOSING A PROPERTY YOU REALLY WANT OVER A SMALL DOLLAR AMOUNT.
But in considering your offer, you should know WHEN the last price reduction took place, the frequency between all price changes and the percentage of each. If it is a new REO listing, I can often determine a particular bank's reduction pattern by examining another local REO listing owned by the same bank. So, if a bank habitually reduces its list price 5% every 32 days and the current price came about 27 days ago...
(Fellow agents - I know this tip is could mean more work, if you're not already doing this. Some of you might use MLS systems that do not permit you to research historical data to gather a price reduction history. My personal perspective is that I'll continue to do all I can to get my buyer the best deal possible AND submit an offer that will fly.)
As the U. S. enters the second year of the Great Recession, many homeowners are finding it impossible to keep up their mortgage payments, and growing numbers face foreclosure. As a result of this housing crisis, unscrupulous companies are springing up around the country offering various forms of foreclosure rescue or prevention. Homeowners should be warned that the majority of these offers are only the fraudulent attempts of crooks eager to steal money from those least able to afford it.
Homeowners facing foreclosure must be on guard to such despicable tactics and refuse to respond to their offers of help. Many of these offers come from companies with official sounding names and with guarantees that draw unsuspecting homeowners into a web of deceit. The fraudsters may imply a connection with the government or one of its programs, and will often make unsubstantiated claims of success. They may offer to negotiate on your behalf with your lender and promise to save your home. Nothing could be further from the truth. And almost all demand an up-front fee to begin their process.
If you are currently facing foreclosure or are having difficulty maintaining your mortgage payments, the first step is to contact your mortgage company to see if help may be available through them. If help is not available from your lender, visit The Department of Housing and Urban Development website at: www.hud.gov/foreclosure/index.cfm, and read more about legitimate ways to avoid foreclosure and the various programs offered through the federal government. You may also want to visit the website of the Federal Trade Commission: www.ftc.gov, where you’ll find a helpful publication entitled, “Mortgage Payments Sending You Reeling?” There is help available, from lenders and from the government; but those seeking it should proceed with caution.
If you need foreclosure advice avoid offers that:
• Guarantee foreclosure prevention.
• Request an up-front fee prior to providing services.
• Suggest you transfer your property to them for “protection.”
• Ask you to sign documents you don’t understand or that are incomplete.
• Promise a speedy resolution to your foreclosure problem.
• Offer to negotiate on your behalf and ask you to stop all further contact with your lender.
• Instruct you to make mortgage payments directly to them.
• Offer to “temporarily” purchase your home and rent it back to you.
The prospect of foreclosure creates both anxiety and stress for families facing severe debt or employment issues. Don’t allow yourself to be victimized by foreclosure rescue scams, which charge exorbitant fees for services you can easily do yourself for free. The crooks will only increase your burden by further damaging your financial well-being.
For more helpful information about buying, selling, building, remodeling, or repairing your home, visit: www.TheHousingGuru.com
Have an interest only or adjustable loan that is still at an attractive rate? Have good credit and a good job. Consider refinancing now. No one knows where the market or interest rates will wind up a year or two from now, so if you can refinance, it’s probably a good time to do so.
Fannie Mae just announced that loan refinancing increased 88% in March and most lenders are swamped. Some, who are working on troubled loans, just may not have time to deal with yours. Look for another lender until you find one who can help.
We have suffered through housing market chaos for more than a year, and the future is anybody’s guess. If you plan to stay in your home, try to refinance now. Rates are at record lows, and the government is pressuring lenders to work with those who need to refinance. Since both the government and interest rates can be fickle, it’s best not to wait. The good rate you have on your current mortgage will pass sooner than you wish.
Call your lender and see if they will consider your request. If not, call someone else. Don’t miss this opportunity to remove what could turn into a crisis in the future.
For the latest news and tips in buying, selling, building, remodeling, or repairing your home, visit: www.TheHousingGuru.com
Good news in the C.C.A.R. news blog...Thanks guys.
Even though the economic news, and particularly the real estate market news across the country, is less than optimal, the word in Corpus Christi is that our home values are holding, and if you are a buyer 2009 is the year for you.
“There is no doubt that real estate has taken a hit nationwide. But in Corpus Christi,” explains C. Edwards, 2009 chairman of the Corpus Christi Association of REALTORS®, “ we are fairing well in relationship to the rest of the country. One of the major reasons we are doing better here is that we did not have inflated prices. Our market increased steadily over time, rather than suddenly skyrocketing exponentially. The second reason is we had very few sub-prime loans here.”
“But what is important to note, is that there has been a shift in our market. Even though values have remained strong, in fact the average sales price increased from $161,216 in 2007 to $162,594 in 2008 and the median price increased from 136,500 to 138,900, according to the Coastal Bend Multiple Listing Service (MLS) statistics, our market has become a buyer’s market.”
A buyer’s market is defined as one in which there is a high inventory – one with an inventory between 9-12 months. Currently MLS statistics reflect that we have 3,949 properties on the market. That is a 9.2-month supply. For the same period in 2007, there were 3,041 listings reported through MLS, 7.6 month supply.
“We are also looking at 50-year low interest rates,” and explains Edwards, “if you are a qualified buyer not only do you have a large number of homes from which to choose, but with 4 to 5 percent interest rates on 30-year fixed mortgages, you can buy much more house for your money. It is definitely the time to buy.
And the good news is if you are a seller, the average sales price remains strong, so you can continue to get your equity out of your home when you decide to sell. But since we do have more properties for sale, and it is a buyer’s market you also might want to do more to prepare your home for sale so you can compete with the other properties on the market in Corpus Christi.”
To give you some idea on how Corpus Christi compares to the state and the nation, according to the Texas A & M Real Estate Research Center average sales prices in Texas are static across the state, but in Arizona the average sales price dropped $115,000. Median sales prices were the same in Texas for 2007 and 2008. But they are down as much as 41 percent in California from 2007 to 2008.
As for the number of homes sold in 2008, compared to 2007, according to the Coastal Bend MLS we are down 19 percent. In specific numbers that translates to 4,844 homes sold in 2007 compared to 3,949 in 2008. Total dollar volume has decreased 18 percent. In 2007 total dollar volume was $7.8 million compared to $64.2 million in 2008.
“There is no question, our sales are down here. It would be impossible for us not to be affected by what is going on across the nation. But looking at 2009,” Edwards says, “we are cautiously optimistic. No one could predict that we would be where we are today. But we think we will come out on the better side of this in Corpus Christi. The positives for our real estate market in 2009 include the following:
· Housing remains strong, but affordable in Corpus Christi
· It’s a great time to buy – We are in a buyer’s Market
· Interest rates are the lowest they have been in 50 years
· Values remain strong
· We had very few sub-prime loans in the Coastal Bend
· We have not been in an inflated real estate housing market
· Developers and Investors continue to look at our market as very affordable
This is some very good information to read before getting into a contract to buy a home. Sometimes, as Realtors we tend to forget that buyers do not always understand closing cost.
One thing buyers always ask is, "the seller is going to pay my loan costs right?" What buyers don't understand is that money has to come from someplace and the seller has a bottom line. Buyers, in essence, you are financing your closing costs and many sellers have taken that into account when they price their home. In our market if you are able to, please pay your own costs.
If I have to market your home in a year, and you have rolled closing costs into your loan you are already in the RED. If you have used a 3.5% down FHA loan product or a 5% down conventional product this is especially true in a declining or stagnant market.
That being said, let me explain what costs you will likely be paying at closing.
Origination Fee: This is a fee charged by lenders to offset fixed costs such as processors, staff, office space, utilities and the mortgage brokers profit. This is a negotiable fee so ask for the best rate.
Closing Fee: The fee charged by the closing agent who prepares the documents and closes the loan on behalf of the lender. In Utah we use a Title Co. to "Close" our transactions. Some states use attorneys. Find out what your state requires and get a quote for that cost.
Discount Points: Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage interest rate. With today's great rates this is probably not necessary but talk to your lender to find the best product for you.
Homeowner's Insurance: One year premium is due in advance at the time of closing.
Mortgage Insurance: Insurance required by the lender when the down payment is less than 20%. In the case of default this insurance decreases the lender's loss.
Prepaids: Adjustment to the escrow accounts from the date of closing to the date of the first payment. Interest is paid through the end of the month of closing. Taxes are paid through the end of the month of closing, plus the following month. Two months PMI are collected. Two months of homeowner's insurance may be collected. A homeowner's insurance policy must be provided along with a receipt showing that the first year's premium is paid.
Processing Fee: Processors work for the escrow company, title co. , or real estate company and are paid a fee for administrative escrow services performed from the point of contract through closing.
Recording Fees: Fees charged by state or municipal entities for recording the closing documents into the public record.
Title Insurance: Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title.
Underwriting Fee: Fees paid to the underwriter to review your loan application and deem it qualified to receive investors fund.
Seems a little overwhelming, so do your homework. The best way to make sure you get the best deal is to ask your lender for a printed "Good Faith Estimate." Then talk to at least one more lender and compare costs.
But remember, the lowest costs don't always insure the best service so ask for a recommendation from your Real Estate Agent and friends and family who have recently bought a home. As with a bad Real Estate Agent there is nothing more frustrating than a bad lender.
I received an interesting call from my mother two days ago. She had been contacted by someone regarding her mortgage. He told her she could get a loan modification and here is how, "Don't pay your mortgage. When you receive a letter from the lender regarding the late payments I will contact them on your behalf. They will make arrangements to modify your loan. My fee is $299, but you will save at least two months of regular payments."
My heart sank. I asked, "Are you late? Why did this person call you?" She explaned she hadn't been late but has an ARM (adjustable rate mortgage) and he mentioned he knew. My question is how did he know? He also told her the rate was about to go up.
I am glad she called to let me know about the latest scam. She was smart enough to ask him to send an email regarding the conversation. He was dumb enough to do it. She sent a forward to me and I am going to report him at the highest level of authority I can find.
If you are late on your mortgage payments, ARM or not, there are professionals that can help you. Seek the advice of your local Realtor. Don't believe you can scam your lender with the help of someone who sounds like they know how.
Okay, I have been contemplating this blog for some time now, but have tried to stay positive and optimistic about people in general. However; I do believe my career as a FREE rental locator has just come to a screeching halt as of this morning! Don't get wrong, I haven't totally lost faith in ALL people it's just a combination of people over the years that have just worn me down in this aspect of real estate. I may on occasion (and on my terms) show A rental property, may help family or friends but for the most part, at least for now; I'm hanging up my rental locator's hat.
I wanted to leave something behind as I say good-bye to those last minute appointments; the showing of several properties without the renter even being able to qualify for the house they want; the meeting someone at an empty house after dark; Appointments made late in the evening to accommodate someones work schedule while I sacrifice dinner with my family; the sitting in front of a house for 30 minutes and no one showing up; and sometimes working with people for days or weeks on end and thinking your doing a good job, not to mention a FREE good job and then with out notice, no one will answer your calls, return your call or even send a courtesy e-mail letting you know what happened...I think your getting the picture here. Those few bad apples...
My legacy and contribution to all of the agents who will continue to deal with rentals properties, is going to be "Rentals 101: What every consumer needs to know before working with a rental relocation agent."
1. Rental locator's follow the same guidelines as any apartment complex. In fact; some even use the same company to process rental applications. If you cannot get into an apartment because of your credit,criminal background, job history, etc., then chances are you will not be approved by a rental locator service or property management company.
2. If you find an agent, be aware that they are most likely spending their time with you for FREE. Leasing agents usually are of the breed of agents (people) who sincerely care about others andwant to help everyone find a home, including those who want to rent. They do try to build relationships with the people they help and hope if the relationship happens to be impressionable enough, one of those renters will call back in the future for other real estate services or give them a good referral to friends, relatives or acquaintances.
3. Rental location is A much harder and more time consuming work than the work involved in selling homes. I believe it is a common misconception that it is somehow less of a job than helping someone purchase a home, and a BIG mis-conception it is indeed. Some real estate offices offer free rental locator services as a courtesy to our valued consumers, but at times it is widely taken advantage of. The reason for this is that most homes for sale usually are made more readily available to show than a rental property. If a rental property needs to be shown they sometime require a 24 - 72 hour notice. Many parties are involved in the scheduling of appointments to show a rental property; the listing agent, the owners, the tenants, and the agent that you are working with. So you can imagine andhopefully, understand, that there are many individuals to connect with in order to schedule a showing assuming that all parties are being cooperative. So, It is never as easy as pulling up in front of a home with a "For Lease" sign and calling the number for someone to run over and show the house to you.
4. If you are re-locating from another city, it is a good idea to contact an agent that you will be working with at least 2 weeks ahead of time but no more than one month before you will need a property. This way they can understand what you need andhave time to work around any obstacles that you may have. Some of those obstacles may be that the area you need or want may not meet your price range needs. Most owners do not accept pets but sometimes they will change their mind based on the breed, size or type of pet and will require an additional deposit. Of course; that takes more time and work on your agents part. Your agent should set you up on a search and e-mail available properties to you. There may be 25 or more, but it is a good idea to make your top 10 picks and if your in town or have time when you get to town, drive by and narrow the list down to 4-6 properties you would like to see, then call your agent with your list. This eliminates driving around all day and seeing properties you would not like at all. Remember that this is generally a courtesy to you and your agent is most likely working around his/her home buyers/ sellers in order to help you findthe right property, so please take this into consideration when choosing properties to view.
5. Loyalty to your agent is GREATLY appreciated, especially with rentals! You would think that would go with out being said, but unfortunately, I believe it needs to be said and SAID LOUDLY. Buyer's and seller's agents both have signed agreements with their clients to ensure their loyalty; however, a leasing agent basically works off of a mutual trust. If you are working with an agent, they will most likely be sending you all rental properties based on your specific criteria requirements, so there is no need to drive around calling every agent in town. This would also apply to a property for sale, so it doesn't make much sense to have many people expending their time, energy, and let's not forget fuel at the cost of gas prices now. Not only is that wasting everyone's time, it isn't even economical. Plus, a real estate agent will work harder for you if they feel that your loyalty lies with them.
With all of this information, and I realize it is alot, I hope this will be a helpful and educational piece for consumers regarding rental properties and the right and wrong way to go about finding one when using a locator or real estate agent.
So please use the appropriate etiquette when you contact the agent you plan to work with.
DON'T BE THAT PERSON! :O)
Do not have your agent go through the hassle of setting an appointment and then just not show up, call, etc. Not only is it terribly rude and inconsiderate, It then just falls back into everyones lap at your agents expense and may even hinder their reputation as a real estate professional.
We all understand that things happen, so if by chance, you find a property yourself or change your mind about a scheduled appointment, give your agent a courtesy call, e-mail or something expressing your appreciation for their efforts. It shows a lot of integrity when you let them know you found a property or changed your mind. Maybe you decided to use someone else, fine; but let them know so they are not just left in the dark without any feedback for other agents or answers for homeowners.
All of this said, think back to the basic rule in kindergarten; TREAT OTHERS THE WAY YOU WOULD WANT TO BE TREATED.
This article featured in the October 12th Sunday edition of the San Francisco Chronicle Real Estate section (K20) is emblematic of sensationalism rampant in the media.
I don't care how many time I hear the media defend itself with a thinly veiled excuse for this sort of distortion by saying we're just reporting the facts, their headlines reveal a different motive-to sell papers.
The article actually tells an entirely different story than the headline insinuates. A more appropriate title would have been "Many Mortgages are still available..."not "Some".
In fact, most mortgages are still available despite what the media's headline would have you believe-and their article even says so, they just don't admit it in their headline.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Have you ever wondered what the difference is between a condo, and a town home? Well, if you answered yes to this question, you are certainly not alone. In fact, I was surprised to realize that most people do not know the difference, there seems to be much confusion and debate on this subject even between professionals. I thought it would make for a great educational blog regarding this subject to clear up these common 
REO List Price Considerations
Stealing an REO
Homeowners facing foreclosure must be on guard to such despicable tactics and refuse to respond to their offers of help. Many of these offers come from companies with official sounding names and with guarantees that draw unsuspecting homeowners into a web of deceit. The fraudsters may imply a connection with the government or one of its programs, and will often make unsubstantiated claims of success. They may offer to negotiate on your behalf with your lender and promise to save your home. Nothing could be further from the truth. And almost all demand an up-front fee to begin their process.
Have an interest only or adjustable loan that is still at an attractive rate? Have good credit and a good job. Consider refinancing now. No one knows where the market or interest rates will wind up a year or two from now, so if you can refinance, it’s probably a good time to do so.
Understanding Closing Costs
case of default this insurance decreases the lender's loss.
This article featured in the October 12th Sunday edition of the San Francisco Chronicle Real Estate section (K20) is emblematic of sensationalism rampant in the media.
;)
;)
