Summertime Home Purchase Tips- Be Prepared to Save Money!

Ready to make a home purchase? July and August are typically great months as sellers are much more  motivated after missing the Spring market. Take advantage of the seasonal downtime.

There are eight major steps you will take when you buy a home and each one is as important in its own way as the last.

Make your wish list -- Decide where you want to live and how many bedrooms and baths you'll need. Consider lifestyle -- condominiums offer shared amenities, with little responsibility. Single-family homes offer more space and privacy, but they also require more exterior and yard maintenance. Consider buying a fixer-upper for a reduced cost so you can remodel it to suit your needs.

Get preapproved -- You can prequalify yourself on the internet, but it takes a lender looking at your personal financial information to get prequalified. Your income, credit scores, revolving debts, obligations such as child support as well as the type of loan you choose will influence how much home you can buy. Other factors such as the down payment, interest rate and terms (30-year fixed or an adjustable rate) will determine what you can afford in monthly payments.

Hire a real estate professional -- Armed with a sensible price range, you're ready to hire a real estate expert to help you find the right home. Your real estate professional should be expert in the area where you want to live and familiar with the type of home you want to buy. Your agent should have house-by-house experience in the neighborhood you want so she or he can advise you.

Select your home -- No home is perfect, so don't let minor flaws influence you. Think long-term. Which available home best suits the needs of your household now and in the years ahead? Consider the amount of space, the floorplan, privacy, entertaining options and potential upkeep. Don't buy more than you need or can comfortably afford.

Make an offer -- Your offer should reflect current market conditions. If a home has been on the market a long time, you can ask the seller for a price reduction, but if it's new on the market, the seller is unlikely to comply. Sellers are more likely to respond to how much you love the home, than all the reasons why you don't think it's worth the asking price. Ask your real estate professional for advice on how to negotiate.

Get an inspection -- A home inspection is a professional third-party opinion of the home's condition. The inspector will point out the age of systems, and large and small repairs that are needed, so you'll know what you're facing as the next owner. Don't sweat small cosmetic flaws. Concentrate instead of high-cost items to replace such as air conditioners and roofing.

Get an appraisal - The bank appraisal determines market value to the lender. The appraiser will use comparables of similar homes that have recently sold. If the home doesn't appraise for the purchase price, the bank will refuse to make the loan unless you renegotiate with the seller. If it appraises for the asking price, the lender will move toward closing.

Go to closing -- Once final negotiations are complete, the parties to the transaction meet at the escrow office. This could be a title company, real estate attorney, or other closing agent customary in your area. All paperwork is signed by both parties. The lender pays the seller, minus any liens against the home such as the seller's mortgage. Once all the disbursements have been made, you get the keys to your new home, according to your agreement.

Written by Blanche Evans

How to Buy Smart. Three Ways to Invest in a Home

Buy low, sell high. That's the investor's maxim that never fails. The trick is in knowing when to buy and when to sell. Investing in a home is never as easy or as quick to deliver returns as you may wish. We all want to ride the boom and avoid the crash. Here are three ways to buy a home safely.

Don't try to time the market

Some homebuyers believe that waiting for prices or interest rates to go lower is the way to buy a home. But there are two things wrong with that approach.

First, what is the market going to do? Unless you have a crystal ball, it's hard to know. Between 2006 and 2011, home prices fell an annualized 7.7% a year, or 27%, according to Fiserv Case/Shiller. Since 2011 and 2014, they've gained back that much and more on an annual basis.

Mortgage interest rates follow the U.S. Treasury yields. A quarter point rise in interest rates will cost you roughly $25 more per month. Lock in an interest rate with your lender and don't second-guess yourself. You'll have more peace of mind as well as a stronger negotiating position with the seller.

Buy within your means

Irresponsible lending led to one of the biggest recessions in modern history. Many homeowners lost their homes. You don't want to join them by buying a home that's bigger, more luxurious or pricier than you can reasonably afford.

Lenders are facing heavy government penalties for lending to unqualified borrowers, so they're insisting that lending standards return to historically safe and sustainable parameters.

That means you won't be able to pay half your income toward housing which was common during the housing boom. Today, you'll pay approximately no more than a quarter to a third of your gross monthly income for a home.

As your income improves, your home becomes even more affordable, allowing you to meet other life goals, such as adding new members to your family or starting a business of your own.

Buy long term

The longer you own your home, the more equity you build. Equity is the percent of ownership you have in the home. Think of equity as money you'll get back when it's time to sell.

To protect your equity, reinvest in your home to keep it in top condition. Then when it's time to sell, your home will be more appealing to buyers and sell for more money than similar homes that aren't as updated or attractive.

If you buy a new home every few years, you'll throw away thousands in moving and closing costs. It's far better to hold on to your first home for as long as you can. At some point, you can turn it into a rental property that produces income for you.

Choose the best home you can for the money and it will return the favor.

Written by Blanche Evans

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      www.CTfeaturedHomes.com 

and www.BestWestportHomes.com

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

The Top Five Smart Homebuyer Strategies

The National Association of REALTORS® has announced that there's a housing supply shortage. Homes are selling quickly and home prices are starting to inch up again. It's becoming a seller's market in many areas.

Any time the market changes, it's time to change strategies. During a buyer's market, buyers have the upper hand and can make more demands to sellers over their homes' price and condition. During a sellers' market, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms.

When homes are in short supply, buyers don't have the luxury of taking their time, teasing sellers with lowball offers, demanding that every little thing be fixed, and shopping for homes with multiple real estate agents. Do these five steps instead.

Make a good first impression. Not only do you need to impress sellers, you need to impress real estate agents. Hire one agent and let him or her profile your needs to the marketplace. Be specific about your must-haves so you don't waste your agent's and your time viewing homes that lack what you want most. When you find the home you want, send the seller a letter along with your offer outlining why you love the home.

Get preapproved by a lender. Not only will you know how much home you can buy, you'll be ready to make an offer quickly. Your real estate agent can include the fact that you're financially preapproved by your lender in with the offer, which will carry weight with the seller.

Shop within your price range. In a seller's market, it's wise to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. You'll be able to pay your own closing costs. Trying to buy a home out of your reach during a seller's market will only cause you and your agent frustration.
 

Be flexible. No home is perfect. To get more home for your money, you might shop for an older home that needs renovation. Try to look past ugly wallpaper and stained carpet and visualize the home with more attractive finishes. You may be able to get more living space in an established neighborhood than with a newer home that is priced higher for similar square footage.

Be ready. Be ready to see a new listing at a moment's notice. Be ready to make an offer when you believe this is the right home for your household. Once a seller has accepted your offer, proceed as if you're in a normal market. Set a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with your lender. Schedule the inspections you'll need and don't nitpick the seller over small things.

Whether you're in a buyer's market or a seller's market, you should feel good about the home you choose, the deal you make, and the courteous way you treated all parties to the transaction.

courtesy of RealtyTimes

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      www.CTfeaturedHomes.com 

and www.BestWestportHomes.com

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

How do you Measure Square Footage of a Home?

When it comes to real estate, there's no avoiding square footage as a measure of any home's value. Realtors use it- it's in every MLS listing, and every home portal known to man. It's also used by tax assessors, appraisers, and insurance companies.

But how much is square footage worth to you as a homebuyer? Knowing the square footage can be helpful, but it shouldn't be the main tool to determine your offer price.

Square footage measurements aren't exact, nor are they taken the same way by every person. For example, many municipalities do NOT have a standard method of calculation-  especially on capes, split level style homes and raised ranches.  A real estate professional, on the other hand, may add a finished lower level, or finished attic space which would not be in the town records to  estimate square footage.

Real estate listings for single-family homes shouldn't  include square footage for covered "outdoor" spaces, including porches, verandas, balconies and porte-cocheres. Yet, in high-rise buildings, square footage quotes often include balconies.

Further, some elements such as stairways and closet spaces are also open to interpretation. If you're buying a home with a two-story foyer, is that foyer space also counted on the second floor?

Another measure that's subjective is the price per square foot, which is determined by the number of square feet divided into the price of the home. High-end homes with expensive materials such as granite countertops and finishes such as hardwood floors tend to have a much higher price per square foot than homes for sale in the average price ranges. But what if those high-end features are 20 years old, and you're comparing them to other similar homes in the area that are brand new?

In my opinion, and at least in our area of Fairfield County, the cost per square foot analysis is pretty much useless, unless you are buying/building brand new, and are comparing one new home to another.  It just does not work for resales in our area.

Hallways, landings and stairs can add hundreds of square feet to any home, but is that space really livable? An open floor plan may have smaller square footage, but be much more pleasant to live than a larger home with too much space allocated to getting from one room to another.

All this means that valuations based on square footage are and should really be subjective.
The square footage is certainly helpful  in determining what size home you  want, but you should always be open to looking in a "range" that is 10 percent below and 10 percent above your recommended size.  The layout of  homes vary greatly from one to the next, and depending on the floor plan, a smaller home for less money may be just as desirable.

 Courtesy of Blanche Evans

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

Essential Steps to Buying a Home in 2015

You're ready to take the leap and buy a home! If this is your first time, you may want to know what to do to make the process go more smoothly. Here are ten steps you'll be going through to buy your next home in Fairfield County, Connecticut.

Check Your Credit Reports and Scores - You get one free look at your credit reports annually. Go to AnnualCreditReport.com and see how easy it is to get credit reports from the three major credit bureaus, Experian, Transunion, and Equifax. You'll need all three because they each report differently, so you may find an error at one bureau but not the other two. You don't know which credit bureau your lender will use so you want all three bureau reports to be accurate. If you see a mistake, contact the bureau and alert them to the error. Send a copy of your proof, such as the paid balance.

Get prequalified - Your lender will "run your credit" to look at your credit reports and evaluate you for risk. Your income, credit scores, payment history, revolving debts, obligations such as child support as well as the type of loan you choose are all factors in determining your interest rate and other terms of the loan. The lender will also consider how much home you can buy based on your down payment; smaller down payments mean higher monthly payments. Last, the interest rate and terms (30-year, fixed or adjustable rate) will determine what you can afford in monthly payments.

Make your wish list - Decide where you want to live and how many bedrooms and baths you'll need. Consider lifestyle -- condominiums offer shared amenities, with little responsibility. Single-family homes offer more space and privacy, but much more exterior and yard maintenance. Also, think about how far you're willing to commute to work. Make a list with five "must-haves" and five "deal-breakers" that you absolutely don't want. Be willing to compromise if you find a home with most of the things you want.

Hire a real estate professional - Your real estate professional should be expert in the area where you want to live and familiar with the type of home you want to buy. Your agent has house-by-house experience in your neighborhood and can offer the best advice on homes in your range.  Yes, I'd love to help you. (shameless plug)  Let's see if we are a match, and  if by chance I dont handle your area, or we agree that another agent would be better suited for you, I will be happy to help you find one.

Select your home - No home is perfect, so expect to find a few things that are disappointing. Try to see past minor flaws such as bad paint colors or old carpet. Think long-term. Is this the house you would want if it were painted and recarpeted? Which home best suits the activities and needs of your household now and in the years ahead? Don't buy more than you need or can comfortably afford.

Make an offer - You're either in a buyer's market or a seller's market, so your offer depends on the current market conditions. If a home has been on the market a long time, you can ask the seller for a price reduction, repair concessions, and help with closing costs, but if it's new on the market, the seller is unlikely to accept an offer lower than 95 to 97 percent of the asking price.

I conduct weekly research on the towns I service, and can tell you what markets are hot,  and which are not as active. I can also eductae you on the price points where we shoudl be able to get the highest negotiation percentage. Of course, anty offer should be contingent on a satisfactory inspection.

Get an inspection - A home inspection is a professional third-party opinion of the home's condition. The inspector works for you, so it is his job to point out problems big and small. He will check age of all systems, note large and small repairs that are needed, code violations, and so on. Some inspections are not included, so you will have to hire a separate experts to look for pests, or inspect the septic tank. You need to know what problems and expenses you'll be facing as the next owner.

Renegotiate Terms if Necessary - If the inspection reveals a problem that is more severe or is not noted on the seller's disclosure of the property, you should renegotiate terms. Either ask the seller to fix the problem or ask for a price reduction if you prefer to fix it yourself.

Get an appraisal - The bank appraisal determines market value. If the home doesn't appraise for the purchase price, the bank will refuse to make the loan unless you increase the size of your down payment or renegotiate a lower price with the seller. If the home meets the appraisal comparables, the lender will move toward closing. Pay close attention to the comparables that the appraisal uses -- they may skew the value in a different direction than you might be expecting.

Go to closing - Once final negotiations are complete, and you've done a final walk-through of the property to make sure all repairs have been made, the parties to the transaction meet at the escrow office. This office could be a title company, real estate attorney, or whatever is customary in your area. All paperwork is signed by both parties. The lender pays the seller, minus any liens against the home such as the seller's mortgage. Once all the disbursements have been made, you get the keys to your new home, according to your agreement.

Congratulations! You're ready to move into your new home.

Written by Blanche Evans

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