Advice from a Home Inspector on Buying Foreclosures

We asked our friends at Pillar to Post "What advice do you give clients when purchasing a short sale or foreclosure?"They gave us a lot of information, so much so, that we made this a two-part article. (See part 1 here)

Owner Dave Leopold says, " Thinking of just bringing that nice contractor guy your friend met at a party? Not so fast. That “contractor-looking-for-work” doesn’t have your best interests at heart. He has something else to gain if you buy the house: a job.

It’s also unlikely that Uncle Vinny carries a moisture meter or an infrared camera. Freshly painted walls can be very deceiving. We can find the saturated sheetrock walls in a basement that a desperate short-seller painted over. Beyond simple property damage and unexpected expense to waterproof a leaky basement, there may be threats to your health like mold waiting for you after closing. We have the equipment to detect the problem and test the indoor air quality to make sure you’re safe.

 
You and your friends may notice stains on the carpet and walls. Trouble is, you haven’t been trained to recognize what the remains of a drug factory run by a couple of stoned meth-heads looks like. You probably won’t learn what a danger those toxins present to you and your children until after you own the problem if you rush the process.

Popular television shows depict the quick riches to be made “flipping houses.” Do you ever see a plot centered on how the buyer wanted to do “a great job” on the house before it’s flipped? No. They want to make “a great profit.” We did one inspection where a part-time builder bought a house without an inspection only to find it was riddled with termite damage. What did he do? Tons of appealing cosmetic repairs. Trouble is, he never did any of the structural repairs that were needed, and never even bothered to have the house exterminated!

Consider the sequence of events that takes place before a property goes into foreclosure or short sale. A buyer pays too much for a house. Like most people, they then want to make some improvements. Many are young and have relatively little home improvement experience or skills. Some are not particularly savvy when it comes to looking at a home as an investment. After over-paying for the property, they compound their mistake by over-paying for improvements. As the reality of their financial situation begins to sink in, they start taking shortcuts. Don’t end up being that guy. And if you’re going to buy that guy’s house, make sure you know what you’re buying.

courtesy of:

David Leopold
146 Coleman Road
Fairfield, CT 06825
tel: 888-801-7111
fax: 203-374-4564
David.Leopold@pillartopost.com

www.pillartopost.com

Book an inspection here

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like: Find out more about Judy here

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Connecticut Financing Update and Today's Mortgage Rates 12/8/2014

There is breaking news that Fannie Mae and Freddie Mac have officially approved 3% down conventional mortgages! and we will have this mortgage product available on December 13^th.  Home mortgage interest rates remain at about the same levels as this time last weekRates look very good at these low levels and it’s time to jump into refinancing your existing mortgage or purchasing a new home with Realtor Judy’s expertise.  The 10 year is exactly the same as it was last week at 2.27.  If you were to take a look a closer look at the interest rates then you would see that there has been an upward trend going back to May of 2013.  Anyone looking to close within the next short term period then you might be better off locking into a rate now.

Today's Mortgage Rates

 Conventional 30 year fixed - 4.125% - APR 4.182%

 Conventional 15 year fixed - 3.5% - APR 3.594%

 Conventional 5/1 ARM - 3.375% - APR 3.292%

 Conventional 7/1 ARM - 3.5% - APR 3.665%

The above rates are based on a loan amount of $417,000 for a single family home, a borrower’s middle credit score of 780 and a 20% down payment.  If you would like a customized rate quote for your own specific loan scenario then please feel free to email me at nima@primeres.com or call me directly at 203.913.6016.

This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under any applicable law.

As a lending professional, Nima Rezvan meets a wide range of real estate lending needs, whether it be a first time purchase, second home purchase, or refinance. He welcomes the opportunity to serve your needs with quick and accurate real estate financing advice. With his expertise and knowledge, he will make sure you understand the features associated with the loan program you choose and that it meets your unique financial situation.

With more than 10 years of mortgage lending experience, Nima specializes in  Conventional Mortgages,  Jumbo Loan Financing, Refinance, First Time Home Buyers and Federal Housing Administration/Veterans' Administration (FHA/VA)

782 Clinton Avenue

Bridgeport, CT 06604

Phone: 203.913.6016

Email: nima@primeres.com

"You could put your home on the market with any agent-

or.... Call Judy to sell it""

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like: Find out more about Judy here

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Investor Alert! 2600 SF Multi-Family in Fairfield for $350,000

New to the market TODAY!

Fantastic opportunity in a commuter's dream location near I-95 & the train. Large 2-family with approximately 1300 Sq. Ft. on each floor. Main level apartment has a floor-to-ceiling stone fireplace, & a partially finished lower level w/full bath (not included in the living area), plus interior access to the garage. Both apartments have walk-up attic access with approximately 1300 SF ready for expansion and/or storage. Each apartment has hardwood flooring in the living room, bedrooms & hallway... Two new boilers, two new oil tanks, new carport doors, & a new fireplace chimney recently installed. Home does need cosmetics, but WOW- this is a great opportunity to renovate, build equity AND get monthly income at the same time!

Click HERE for a link to the specifics and more pictures:

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like: Find out more about Judy here

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Advice from a Home Inspector on Short Sales and Foreclosures

We asked our friends at Pillar to Post "What advice do you give clients when purchasing a short sale or foreclosure?"They gave us a lot of information, so much so, that we will make this a two -part article.

Owner Dave Leopold says, "I think two recommendations are very important: (i) naturally we recommend a professional home inspection, and (ii) don’t rush the process. You have to do your due diligence. If the transaction timing doesn’t allow it, move on to the next house.

Buyers get so overwhelmed by emotion in a purchase, that they sometimes check their good sense at the front door. On many bank-owned properties, we’ve been asked to perform home inspections without the utilities (power & water) in service. It’s a waste of time and money and incredibly risky for the potential buyer. Ask yourself, would you purchase a car where the seller wouldn’t let you drive it? Of course not!

With a house, here are just some of the reasons why it’s a bad idea. If the pipes are frozen behind the walls, you’ll never know it. If the angry former owner drilled pinholes in the supply pipes or put concrete in the drains, you’ll never know it. We have found both of those situations on inspections. With no water, we can’t tell if the boiler or water heater leak.

With no power, we can’t see anything and we can’t test anything. Seems obvious, but it’s a point often lost on over-eager buyers who want to rush forward with the inspection before they lose “a great deal” on a distressed property.  Let me tell you, they’re not called distressed for nothing. These properties typically need quite a bit more than simple TLC, and may be home to any number of undesirable “occupants.”

A professional home inspector will find costly defects that most inspectors would consider relatively routine. Take for example, evidence of a buried underground oil storage tank. However, that’s an item your enthusiastic Uncle Vinny will miss, and it’s an item that even a professional may miss if the lights aren’t on."

Stay tuned for Part 2....

courtesy of:

David Leopold
146 Coleman Road
Fairfield, CT 06825
tel: 888-801-7111
fax: 203-374-4564
David.Leopold@pillartopost.com

www.pillartopost.com

Book an inspection here

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like: Find out more about Judy here

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Nine Reasons To Buy A Home in December

The down payment-interest rate-economic factors-qualification quadrangle can be so confusing. Rising rates, loosening requirements, down payment options, buyer's markets, seller's markets - what does it all mean to you if you want to buy a home? The truth is that while the banks might have a magical formula to determine your mortgage-worthiness, determining if the time is right really comes down to three main questions:

Do you want to buy a home?
Are you financially prepared?
Is your credit where it needs to be?

If yes, then go for it. Here are nine reasons to do it now.

1. Prices are good. According to the latest S&P/Case-Shiller report, home prices are still gaining, but have slowed. "The 10-City Composite gained 5.5% year-over-year and the 20-City 5.6%, both down from the 6.7% reported for July," they said. "The National Index gained 5.1% annually in August compared to 5.6% in July." This is good news if you were afraid that big price gains would put homeownership out of reach and also bodes well for your long-term equity once you purchase.

2. Rates are low. "Imagine paying over 18% interest on a 30-year fixed mortgage. It's almost unthinkable. But that was the reality for home buyers in October 1981 -- a year when the average rate was almost 17%," said Yahoo Finance. "The average rate has been 5.18% since the start of this country's history," making today's rates, which hover around historic lows at 4%, sound even better.

3. Loan requirements are softening. They're not approaching the look-the-other-way-and-stamp-it-approved levels that led to the market crash, but the overly tough restrictions that followed have loosened. "Major lenders are making adjustments," said The Street. "Wells Fargo has lowered the minimum FICO score for borrowers applying for loans insured by the Federal Housing Administration to 600 from 640." They also count JPMorgan Chase's lowered loan-to-value "standards in certain markets for both jumbos and conforming mortgages." For buyers that can mean an easier road to loan approval, even without a ton of money upfront and perfect credit.

4. FHA loans make it even easier for first-time buyers. If your credit is less than stellar and you don't have a large down payment, an FHA loan can get you in the door. Credit scores can be as low as 620 to qualify and only 3.5% down is required. Whether you've never bought before or have been out of the market for a few years, an FHA loan can be your answer.

5. Fewer buyers around the holidays means less competition for you and more negotiating power. "Sellers who are actively looking to sell their homes during the holiday months -- namely, October through December -- are serious about shedding the weight of their residences," said US News. "This often works in favor of savvy buyers looking to get a deal on discounted homes. Having less competition on the buyer's side can mean lower prices on homes, in addition to fewer counter-offers to compete against."

6. Rates are predicted to rise. "The Mortgage Bankers Association expects the average rate on a 30-year, fixed rate mortgage to rise slowly to 5.1 percent by the end of 2015," said the Washington Post. If you want to take advantage of low rates, now is the time.

7. Pent-up demand could zap affordability. "The housing market is about to get even more competitive," said Yahoo. "The pent-up demand of younger professionals, who moved back in with their parents during the recession, is about to explode. This eager subset of buyers will create some steep competition for homes, especially if they have been saving up to make larger down payments or high ticket offers. If the current homes on the market have more potential buyers, bidding wars develop, and the purchase prices are driven up.

8. "Buying is cheaper than renting in most markets," said Housingwire. With a little knowledge of loan options and low down payment programs, you can easily flip the switch from renter to homeowner.

9. Because you want to buy a home. There really is no more compelling reason than that. You want it. So make it happen.

Written by Jaymi Naciri

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Buying or Selling a Home in Westport, or Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Westport, or Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like: Find out more about Judy here

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY