15
Nov
By John Cofiell
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Real Estate

5 Creative Ways To Buy A Foreclosure

Buying a foreclosed home is easy, right? After all, they sell for pennies on the dollar, right? Well, that could be a false assumption. Buying a foreclosed property appears easy on TV, but in reality, it can be overwhelming. 

Foreclosure sales continue to decline in the market from 38.6 percent in 2011 to 14 percent in 2017 but ticking up a bit in 2018 according to Attom Data Solutions, a national property data company. As foreclosure sales drop, competition for these properties become stiffer and more complex. And as home prices increase in most cities, buyers often turn to foreclosures as affordable alternatives for landing their dream home

Foreclosures usually occur when homeowners can no longer pay their mortgages and the mortgagees seize the properties. Once former owners vacate the properties, lenders typically put it on sale at discounted price or auction to the highest bidder. 

Foreclosures give homebuyers the opportunity to get great deals. While foreclosures can save you thousands of dollars, it may come with risks. Having a stomach of steel can help when pursuing a foreclosure.  

5 Creative Ways To Buy A ForeclosureTo mitigate the risks involved, keep the following hacks and tricks in mind.  

Budget Carefully 

Don’t allow a small price tag to entice you into a quick deal. Ask yourself the following:

  • Do you have sufficient dollars for extensive repairs? 
  • Do you have a team ready for any required repairs or are you handy at doing them yourself? 
  • Can you find a tenant if you intend to rent?

If you conduct thorough research, you’ll minimize the risks. 

Get A Home Inspection 

Though foreclosures are usually sold “as is”, you need to know the property deficiencies. The home seller can allow you to bring in a competent home inspector. Your inspector will give you a list of what the property lacks and the cost estimates needed to complete the renovations. You may even want to hire a home inspector after purchasing a foreclosure just to get a thorough review of the property.

Ask For Vacancy Duration  

Ask how long the house remained vacant. In most cases, long vacancy means more damages. For example, plumbing seals may dry out, bugs get into the house and sewer gases back up. 

Don’t Ignore The Landscaping 

Neglected landscaping contribute to house deterioration. Tree seedlings grow roots into the foundation and vines crawl into the windows. Small trees can also mess up pavers, and dead branches can break and crash into the house.  

Be Cautious With Auctions 

Although auctions are common with foreclosures, it’s best to avoid them. And if you can’t, be vigilant when bidding. Competitive bidding can raise the value so high that you end up losing money after the cost of repairs. 

It’s always best to work with your trusted local real estate professional to find foreclosure properties. They are experienced in determining the quality of the properties and can help you through the tenuous foreclosure purchase process.

Another key partner is your trusted mortgage professional. If your good credit and pre-approval are in place, you will be on your way to making an offer as soon as the right property comes along. 

14
Nov
By John Cofiell
0 Comments
Real Estate

3 Things You Should Know About Land Surveys

3 Things You Should Know About Land SurveysOne thing to think about when purchasing a home or parcel of land is to have an updated land survey conducted. While property deeds generally include detailed information, many are outdated for a variety of reasons that include nature, weather conditions, and adjustments in floodplain maps among others.

Even when the information about the property is spot-on at the closing, human perception of where your property begins and ends can lead to some unenviable outcomes. Given that buying real estate ranks among the largest personal investments for most people, these are three things you may want consider about land surveys.

Good Fences Make Good Neighbors

The old Robert Frost poem “Mending Wall” ponders the reasons that people erect property line fences and why they fix them each spring. The reason is a simple one, setting boundaries avoids unnecessary disagreements and allows people to get along.

Land disputes can turn otherwise friendly neighbors into hostile abutters because there is a pervasive sense that someone is stealing from you. Good fences are the product of clearly identified boundary markers and professional surveyors are the people who measure and certify them. If you plan on buying or recently purchased a parcel of land, updating the land survey may be in you and your neighbor’s best interest.  

Squatters Can Take Your Land Through Adverse Possession

Many states continue to allow the practice of adverse possession. In some places, it’s known as “squatters rights.” If someone who does not rightfully own a piece of land can maintain or utilize it for a period of time, they may be able to put in a claim.

Although many people consider this an outdated and unfair practice, it remains too common in rural and suburban areas. Misplaced fences are often the basis of such claims. When abutters work your land or use it to access their own, that can be the basis of a claim to get a permanent easement or take it from you.

Land Surveys Can Be Used For Insurance Purposes

The severe weather storms that struck communities across the country have prompted organizations to update their floodplain maps. Property owners who were not previously required to purchase flood insurance may now find themselves considered “at risk.”

But that designation can be considerably more complex than just owning a home or residential property inside the flood zone. These updated maps do not necessarily consider the elevation of each and every property. In order to be properly listed, you may need to have an elevation certificate to petition FEMA and others that your property is not at risk. That means having a professional land survey conducted.

There are numerous reasons why current land surveys can prove valuable to real estate buyers and sellers. Without one, you are operating without critical information about a significant investment.  Your trusted home mortgage professional can refer you to appraisers and land surveyors in your area. Be sure to rely on this valuable resource during your new home purchase.

09
Nov
By John Cofiell
0 Comments
Real Estate

5 Trends Shaping Green Homes

5 Trends Shaping Green HomesThink green home design is a fad? Well, think again. Sustainable home designs are gaining popularity at a breakneck speed. In 2017, green homes accounted for more than 60 percent of family home builder’s portfolios, according to a survey conducted by the National Association of Home Builders. 

But what is really driving green home designs? In this post, we explore five trends shaping sustainable homes. 

1. Energy Efficiency 

Home designs that cater to consumers’ need to reduce utility bills continue taking center stage. From net-zero energy homes to energy conserving products, home buyers want to save money. Moving forward, industry experts predict that ultra-efficient building designs like net-zero-energy or passive home designs will continue dominating the industry. 

2. Health 

Most home buyers are more aware of the dangers of chemicals than before. As such, most of them are seeking non-toxic interior products. The manufacturing industry trend is leaning towards healthier materials. As the demand rises and prices stabilize, these products are more likely to be game changers. Most home designs will probably focus on eliminating troublesome chemicals such as VOC paints and phthalate free flooring. 

3. Home Performance And Monitoring 

Home energy audits are major factors considered by consumers, and home performance is key. Some cities like Austin expect new homes to undergo performance tests before recommendation for resale. 

Energy software programs allow home builders and remodelers to monitor how slight changes in home designs can save thousands of dollars in utility bills. Homeowners are also benefiting from energy monitoring devices to track their household energy consumption. 

4. Water Efficiency 

80 percent of American states anticipate water shortages in a few years, says a Government Accountability Office survey. Therefore, wise water usage is becoming crucial as consumers demand for water efficient homes. Most builders are already getting their homes HERS Rated as consumers look for ways to save dollars from rising water prices. 

5. Biophilic Home Designs 

Nature is beneficial to us biologically, physically and psychologically. However, in the last century, home designs separated us from nature. Today, biophilic designs (connected to nature) strive to reverse that by integrating nature into homes. Modern building can capture the sun’s movement using windows, architectural details and patterns, connecting us to the season, time of day and our inner biorhythms. 

If you are in the market for a green home, be sure to contact your trusted mortgage professional for a financing pre-approval!