Contemplating a refinance?
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| You have your reasons for contemplating a refinance on your home mortgage, the basic question to ask is: “Do you plan to live in the home long enough to recapture the cost of refinancing?” There are always expenses involved in refinancing which can be paid in cash or rolled into the new mortgage. From a strictly financial standpoint, the break-even point is achieved when the cost of refinancing has been recaptured by the monthly savings. It would take approximately 23 months to recapture $4,000 of refinance costs with a lower payment of $175 a month.
Determine the break-even point It is best to speak with a reputable lender. Please call for a recommendation of a trusted mortgage professional. I work with some stellar lenders and I would be happy to get the ball rolling to see what makes sense for you. Who knows, perhaps a move is in your future when the time is right and please note, I am ready to work.
Kim Duclos crs abr gri
702.521-3939
please visit www.callkim.net today!
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Get current and up to date real estate information as well as other interesting and useful posts. Elite Realty.
Showing posts with label First Time Homebuyer. Show all posts
Showing posts with label First Time Homebuyer. Show all posts
Friday, May 12, 2017
Monday, September 28, 2015
What does an Interest Rate Increase Mean for You?
Although the interest rate you will
"most likely" obtain on a
home purchase in today's market, will be
lower than what is noted here below,
lower than what is noted here below,
you can easily see by the scenarios offered
what a 1% difference means to you with
your home purchase and payment.
DO NOT WAIT ANY LONGER
Call today to begin the process of home
ownership and loan qualification. Please note
there are funds still available for the
*FREE 4% for down payment and
closing cost assistance program =
"Home is Possible" Grant Program.
*certain restrictions apply please call for information.
Thank you,
Kim Duclos
Elite Realty
702.521.3939
www.callkim.net
Tuesday, July 28, 2015
FHA General Guidelines for Appraisals
FHA General Guidelines for Appraisal
*******POWER AND WATER MUST BE ON AT TIME OF INSPECTION****
- Earthquake straps AKA (Seismic Straps)
- Missing handrails-Need to be Replaced
- Cracked or damaged exit doors that are otherwise operable
- Cracked window glass
- Defective paint surfaces (Peeling Paint)
- Minor plumbing leaks (such as leaky faucets)
- Defective floor finish or covering (worn through the finish, badly soiled carpeting)
- Rotten or worn out counter tops
- Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978
- Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)
- Crawl space with debris and trash
- Smoke alarms
- The electrical box should not have any frayed or exposed wires.
- All habitable rooms must have a functioning heat source
- The roofing must keep moisture out.
- The roofing must be expected to last for at least two more years.
- The appraiser must inspect the attic for evidence of possible roof problems.
- The roof cannot have more than three layers of roofing.
- If the inspection reveals the need for roof repairs and the roof already has three or more layers of roofing, the FHA requires a new roof.
- Door between the garage and the home must be fireproof.
Property Access
The property must provide safe and adequate access for pedestrians and vehicles, and the street must have an all-weather surface so that emergency vehicles can access the property under any weather conditions.
The property must provide safe and adequate access for pedestrians and vehicles, and the street must have an all-weather surface so that emergency vehicles can access the property under any weather conditions.
Structural Soundness
Any defective structural conditions and any other conditions that could lead to future structural damage must be remedied before the property can be sold. These include defective construction, excessive dampness, leakage, decay, termite damage and continuing settlement.
Any defective structural conditions and any other conditions that could lead to future structural damage must be remedied before the property can be sold. These include defective construction, excessive dampness, leakage, decay, termite damage and continuing settlement.
Asbestos
If an area of the home contains asbestos that appears to be damaged or deteriorating, the FHA requires further inspection by an asbestos professional.
If an area of the home contains asbestos that appears to be damaged or deteriorating, the FHA requires further inspection by an asbestos professional.
Bathrooms
The home must have a toilet, sink and shower. (This might sound silly, but you'd be surprised what people will take with them when they're foreclosed on.)
The home must have a toilet, sink and shower. (This might sound silly, but you'd be surprised what people will take with them when they're foreclosed on.)
Appliances
FHA requires properties to have working kitchen appliances, particularly a working stove. However, FHA documents do not mention any requirements regarding appliances.
Swimming Pools
Swimming pools must be operational to provide Contributory Value. The appraiser must report readily observable defects in a non-covered pool that would render the pool inoperable or unusable. If the pool water contains algae and is aesthetically unappealing, The appraiser must require that pools with unstable sides or structural issues be repaired or permanently filled in accordance with local guidelines, and the surrounding land re-graded if necessary.
Converted Garage-Non-permitted additions
Often non-permitted additions and remodels are not finished to code. Not only may FHA require that these items be brought to code, but if FHA decides to approve the loan without that requirement, FHA will not consider the value of non-permitted items in its appraisal
The FHA does not require the repair of cosmetic or minor defects, deferred maintenance and normal wear if they do not affect the safety, security or soundness.
Call Kim with your real estate
questions and concerns!
Kim 702.521.3939
Friday, June 3, 2011
Open House - Saturday June 4, 2011 - 10:00 a. - 1:00 p. CallKim.net
OPEN HOUSE - Saturday June 4, 2011
10:00 a. - 1:00 p.
10:00 a. - 1:00 p.
Wine Basket Drawing too!
8313 Vista Colorado St
Las Vegas, NV 89123
Near Windmill and Eastern
Fabulous buy, competitive pricing = A+
Please click on link below to watch the virtual tour
http://virtualtours2go.point2homes.biz/Listing/VirtualTour.ashx?HideBranding=true&ListingID=37908074
We are holding a Wine Basket Drawing to those that attend our Open House!
Kim Duclos crs abr gri
Coldwell Banker Wardley
(702) 521-3939
(888) 949-2890
www.CallKim.net
 |
| QR CODE - Scan above |
OPEN HOUSE COURTESY OF KELLER WILLIAMS MARKET PLACE
WE APPRECIATE THEIR COOPERATION!
Thursday, September 2, 2010
Clever Ideas Worth Knowing
Take your bananas apart when you get home from the store.If you leave them connected at the stem, they ripen faster..I didn't know that!
Store your opened chunks of cheese in aluminum foil.It will stay fresh much longer and not mold!
Peppers with 3 bumps on the bottom are sweeter and better for eating.Peppers with 4 bumps on the bottom are firmer and better for cooking.
Add a teaspoon of water when frying ground beef. It will help pull the grease away from the meat while cooking.
To really make scrambled eggs or omelets rich add a couple of Spoonfuls of sour cream, cream cheese, or heavy cream in and then beat them up.
For a cool brownie treat, make brownies as directed. Melt Andes mints in double broiler and pour over warm brownies. Let set for a wonderful minty frosting.
Add garlic immediately to a recipe if you want a light taste of garlic and at the end of the recipe if your want a stronger taste of garlic.
Leftover snickers bars from Halloween make a delicious dessert. Simply chop them up with the food chopper. Peel, core and slice a few apples. Place them in a baking dish and sprinkle the chopped candy bars over the apples. Bake at 350 for 15 minutes!!! Serve alone or with vanilla ice cream. Yummm!
Reheat Pizza
Heat up leftover pizza in a nonstick skillet on top of the stove, set heat to med-low and heat till warm. This keeps the crust crispy. No soggy micro pizza. I saw this on the cooking channel and it really works.
Easy Deviled Eggs
Easy Deviled Eggs
Put cooked egg yolks in a zip lock bag. Seal, mash till they are all broken up.Add remainder of ingredients, reseal, keep mashing it up mixing thoroughly, cut the tip of the baggy, squeeze mixture into egg.Just throw bag away when done easy clean up.
Expanding Frosting
Expanding Frosting
When you buy a container of cake frosting from the store, whip it with your mixer for a few minutes. You can double it in size.You get to frost more cake/cupcakes with the same amount. You also eat less sugar and calories per serving.
Reheating refrigerated bread
Reheating refrigerated bread
To warm biscuits, pancakes, or muffins that were refrigerated, place them ina microwave with a cup of water. The increased moisture will keep the foodmoist and help it reheat faster.
Newspaper weeds away
Newspaper weeds away
Start putting in your plants, work the nutrients in your soil. Wet newspapers,put layers around the plants overlapping as you go cover with mulch and for-get about weeds. Weeds will get through some gardening plastic they will notget through wet newspapers.
Broken Glass
Broken Glass
Use a wet cotton ball or Q-tip to pick up the small shards of glass you can't see easily.
No More Mosquitoes
No More Mosquitoes
Place a dryer sheet in your pocket. It will keep the mosquitoes away.
Squirrel Away!
To keep squirrels from eating your plants, sprinkle your plants with cayenne pepper. The cayenne pepper doesn't hurt the plant and the squirrels won't come near it. (Wonder if this works with rabbits? Sure gonna give it a try)
Flexible vacuum
Squirrel Away!
To keep squirrels from eating your plants, sprinkle your plants with cayenne pepper. The cayenne pepper doesn't hurt the plant and the squirrels won't come near it. (Wonder if this works with rabbits? Sure gonna give it a try)
Flexible vacuum
To get something out of a heat register or under the fridge add an empty paper towel roll or empty gift wrap roll to your vacuum. It can be bent or flattened to get in narrow openings.
Reducing Static ClingPin a small safety pin to the seam of your slip and you will not have a clingy skirt or dress. Same thing works with slacks that cling when wearing panty hose. Place pin in seam of slacks and ... TA DA! ... Static is gone.
Measuring Cups
Reducing Static ClingPin a small safety pin to the seam of your slip and you will not have a clingy skirt or dress. Same thing works with slacks that cling when wearing panty hose. Place pin in seam of slacks and ... TA DA! ... Static is gone.
Measuring Cups
Before you pour sticky substances into a measuring cup, fill with hot water. Dump out the hot water, but don't dry cup. Next, add your ingredient, such as peanut butter, and watch how easily it comes right out.
Foggy Windshield?
Foggy Windshield?
Hate foggy windshields? Buy a chalkboard eraser and keep it in the glove box of your car When the windows fog, rub with the eraser! Works better than a cloth!
Reopening envelopes
Reopening envelopes
If you seal an envelope and then realize you forgot to include something inside,
just place your sealed envelope in the freezer for an hour or two. Viola! It unseals easily.
Conditioner
Conditioner
Use your hair conditioner to shave your legs. It's cheaper than shaving cream and leaves your legs really smooth. It's also a great way to use up the conditioner you bought but didn't like when you tried it in your hair.
Goodbye Fruit Flies
Goodbye Fruit Flies
To get rid of pesky fruit flies, take a small glass, fill it 1/2' with Apple Cider Vinegar and 2 drops of dish washing liquid; mix well. You will find those flies drawn to the cup and gone forever!
Get Rid of Ants
Get Rid of Ants
Put small piles of cornmeal where you see ants. They eat it, take it 'home,' can't digest it so it kills them. It may take a week or so, especially if it rains, but it works and you don't have the worry about pets or small children being harmed!
Visit http://www.callkim.net/ - 24/7 find a house with your mouse today!
Sunday, March 21, 2010
Deadline Looming on Current Tax Credit - Act Now
Tax Credit in General
For first time homebuyers, there is a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately). A first-time homebuyer is an individual who, with his or her spouse if married, has not owned any other principal residence for three years prior to the date of purchase of the new principal residence for which the credit is being claimed.
1. There are several situations in which a taxpayer cannot claim the credit:
2. The taxpayer is a nonresident alien;
3. The taxpayer purchases a home located outside the United States;
4. The taxpayer sells the home or if it stops being the taxpayer’s principal residence in the
year the taxpayer purchased the home;
5. The taxpayer receives the home, or any portion of the home, as a gift or as an inheritance;
and The taxpayer exceeds the income limits.
The Worker, Homeownership, and Business Assistance Act of 2009 extended and expanded the tax credit for first time homebuyers that had been created in 2008. The new law extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. If a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.
Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.
ACT NOW! Call me and I can facilitate a home purchase or sale here in the Las Vegas Vally.
(702) 521-3939 direct (888) 949-2890 toll free http://www.callkim.net/
Kim Duclos
Coldwell Banker Wardley
Sunday, November 8, 2009
November 6, 2009 HOMEOWNER TAX CREDIT IS EXTENDED
First-Time Homebuyer Credit
Updated Nov. 6, 2009, to reflect new legislation
Updated Nov. 6, 2009, to reflect new legislation
New Legislation:
New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts.
The new law:
Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
General Information
Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit.
The credit: Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405, which you file with your original or amended tax return.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405, which you file with your original or amended tax return.
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return.
IN ORDER TO KEEP THE INFORMATION POSTED HERE TODAY AS ACCURATE AS POSSIBLE, I WENT DIRECTLY TO THE GOVERNMENT WEBSITE TO OBTAIN THE INFORMATION SHARED HERE TODAY. http://www.irs.gov/newsroom/article/0,,id=204671,00.html
KIM DUCLOS COLDWELL BANKER WARDLEY LAS VEGAS, NV http://www.callkim.net/
Monday, September 14, 2009
CLARIFICATION OF THE NEW RESPA ACT
Are you in the market for a new home? Thinking of obtaining a mortage on that purchase? It is imperitive to work with a lender that can accomplish your goals while providing the best and honest service with competitive rates. Call me and we can get the process started! Some new changes in Lending provided below.
Recent changes in the Truth in Lending laws as of 7/30/09
CLARIFICATION OF NEW RESPA ACT
Changes to the Truth in Lending Act: What You Need to Know!
Regulation Z of The Truth in Lending Act (TILA) has undergone important changes that you need to know about in order to set expectations when looking for a loan. These changes take effect for all new applications taken on July 30, 2009 and after, apply to ALL types of mortgage loans (except investor loans and HELOC's) and could impact the overall time line of the mortgage process.
Regulation Z of The Truth in Lending Act (TILA) has undergone important changes that you need to know about in order to set expectations when looking for a loan. These changes take effect for all new applications taken on July 30, 2009 and after, apply to ALL types of mortgage loans (except investor loans and HELOC's) and could impact the overall time line of the mortgage process.
Here are four key parts you need to know:
Initial Disclosures: Under the new rules, initial disclosures must be provided to the borrower for all loans within three (3) business days of when an application is taken.
Initial disclosures include: the Good Faith Estimate (GFE), Truth in Lending Statement (TIL).
Collection of Up-front Fees: The new regulations prohibit lenders from ordering and collecting many up-front fees (ie: appraisal) prior to the new waiting period.
Collection of Up-front Fees: The new regulations prohibit lenders from ordering and collecting many up-front fees (ie: appraisal) prior to the new waiting period.
If the loan application is face-to-face, there is no waiting period.
Otherwise lenders have a 3 day waiting period before fee services can be ordered.
TBD properties: Are not considered actual applications per RESPA - once a property is identified and application is made - the waiting period would start from that day. So, if we did a pre-qual for someone today and a week later the property is identified, the disclosures would need to be signed and/or mailed on that day, and the waiting period begins.
Re-disclosures: If there are changes to a borrower's Annual Percentage Rate (APR) that INCREASES more than .125%, the lender must re-disclose to the borrower, and the 3 day waiting period starts over again.
Timing of Loan Closings: Business days are considered Monday-Saturday excluding legal public holidays. Closings cannot be scheduled until at least seven (7) business days after the initial disclosures are received by the borrower. If re-disclosures are needed because of changes to the loan program, terms or APR, the loan closing cannot be scheduled until after the re-disclosures are received by the borrower.
Please contact me for all of your real estate needs @ (702) 521-3939
Kim Duclos - Coldwell Banker
Wardley
Wardley
Sunday, July 12, 2009
5 First Time Buyer Mistakes to Avoid
5 first-time buyer mistakes to avoid
Experienced homeowners share their secrets so you won't make a rookie move
By Sarah Max, Cyberhomes Senior Writer
July 10, 2009
If you're a first-time home buyer in this market, how could you go wrong? Nationally, sales prices of existing single-family homes are down nearly 24 percent since their July 2006 peak. Interest rates, recently 4.9 percent for a 30-year fixed-rate mortgage, are hovering near historic lows.
And if that isn't incentive enough, Uncle Sam is offering first-time buyers an $8,000 tax credit to further sweeten the deal.
But as any homeowner will tell you, the decision to buy a home is only half the battle. The real challenge is in the details of what, where and how much. Here are five first-time home buyer mistakes you don't want to make.
First Time Buyer Guide 2009
This is an exciting year for first time buyers, with a once in a lifetime opportunity to get the home of your dream.Gallery: Advice for First Timers+ Understanding the First Time Buyer Credit
1. Don't think that "long term" is a couple of years.
Buying a home, especially now, requires long-term planning, not just with finances, but with your career and your personal life. "The old rule was to plan on owning the house for three to four years," says Ben Hoefer, an agent with John L. Scott in Seattle. "I'm recommending that people think in terms of five to seven years."
If you don't know where you'll be a year from now, let alone seven years from now, you might want to rethink your plans to buy. A house isn't a bargain if you can't recoup your investment. The more time you can spend in the home -- comfortably -- the better the deal.
For many first-time home buyers, that means finding a house that suits their needs and their budget now but also offers room to grow -- or the option to rent. Location is another sticking point. "A lot of people will go for the better house farther out and realize, after it's too late, it's not the location they want," says Hoefer. Would the commute be manageable if you change jobs? What about school quality? These factors influence not only your sanity but also home values.
2. Don't settle for something with more wrongs than rights.
Before you get lured into an open house, spend some time figuring out how much home you can afford and browse online listings to familiarize yourself with the market. "Most first-time buyers are going to be hard pressed to get everything they want, even now," says David Krieger, general manager of Coldwell Banker Preferred in Philadelphia. But if you prioritize your needs and wants and give yourself time to look around, you have a better shot.
For More: Cyberhomes First Time Buyer Guide
That tactic worked well for Litsy Witkowski, who bought her first home last summer. "I didn't necessarily want to find a place very quickly," says Witkowski, 27, who spent more than six months looking around New Haven, Conn. During that time she saw dozens of houses and condominiums and "quickly learned what neighborhoods and styles I liked and didn't like," she says. Her home, a three-bedroom colonial with two and a half bathrooms, a finished attic and basement, and a four-season porch, was listed for $299,000; Witkowski managed to negotiate the price down to $285,000. "Taking my time was definitely the right call," says Witkowski, who shares her home with three housemates. "I think there is something to be said for walking into a place and knowing that you either love it or you don't."
3. Don't make finding an agent an afterthought. With so much information at your fingertips, it might seem old fashioned to enlist the help of a real estate agent. But, a good buyer's agent brings a lot more to the table than listings; he can walk you through everything from the loan preapproval to the home inspection and, most importantly, is obligated to put your interests first.
In hindsight, this is one thing first-time home buyer Kelcey Nichols, 34, would have done differently when she started house hunting in Santa Fe, N.M., a couple of years ago. Although she's very happy with her three-bedroom adobe-style home, she wasn't always on the same page as her agent. "We had different negotiation styles," she says. If she were buying again she would interview several agents before starting the search. "I think working with someone who really knows what you want could save you a lot of time and money," she says.
Yet, most buyers don't spend enough time looking for an agent who will represent their interests in the transaction, says Krieger. Instead, they find the home and call the listing agent, not realizing that that agent represents the seller. It's better to find your own advocate from day one. What's it going to cost you? Technically, nothing. Sellers' and buyers' agents split commissions paid by the seller. Although you could go it alone and ask the seller's agent to cut her commission and pass that savings on to you, as a first-time buyer it's likely you would do better working with a pro and looking for savings elsewhere.
4. Don't assume that every home is in foreclosure.
No doubt there are deals to be had. But just because national headlines show double-digit drops in home prices and a record level of foreclosures doesn't mean that's the case for every home in every market. Nationally, fewer than 1 percent of all housing units on the market are in foreclosure, according to first-quarter data from RealtyTrac. While you don't want to rule out foreclosed property, you don't want to limit your search to the bargain bin.
Krieger notes that the average Philadelphia seller is receiving about 97 percent of asking price. This figure will vary from month to month and even from neighborhood to neighborhood, so do your homework before putting in an offer. Now that home prices have fallen so much, many of the best deals are starting to fetch multiple offers.
5. Don't forget about all the other costs of owning a home.
After searching Salt Lake City for six months, Julia Lyon, 35, knew she'd found a winner when she walked through the front door of a circa-1901 Victorian in the Liberty Park neighborhood. The house needed a little work. But at $260,500 the price seemed fair, especially by 2006 standards.
Still, the home has gobbled up more time and money than she'd ever anticipated. "As my brother recently told me, I didn't buy a house -- I bought a project," says Lyon, who's spent about $15,000 on everything from gutting the first-floor bathroom to fencing in the backyard. "I don't want to keep ignoring problems that should have been dealt with 10 years ago," says Lyon, who got married in 2008. "But I worry that we're putting more money into some of the fixes than we may get back."
Most first-time home buyers find themselves in a similar situation: They focus so much on the sticker price that they fail to account for the other costs that come with owning a home. Some of these costs aren't optional -- closing costs, maintenance and utilities. Others -- new furniture and gardening tools, to name a few -- can add thousands of dollars to the price tag if you're not careful.
At the same time Lyon is conscious of "over improving" her home, she has no regrets about buying it. "I love my house as much today as I did the first time I saw it," she says. Unfortunately, many buyers from the boom can't say the same. "Some of the saddest homeowner stories I've heard are from people who bought too quickly -- without really understanding what was out there."
Experienced homeowners share their secrets so you won't make a rookie move
By Sarah Max, Cyberhomes Senior Writer
July 10, 2009
If you're a first-time home buyer in this market, how could you go wrong? Nationally, sales prices of existing single-family homes are down nearly 24 percent since their July 2006 peak. Interest rates, recently 4.9 percent for a 30-year fixed-rate mortgage, are hovering near historic lows.
And if that isn't incentive enough, Uncle Sam is offering first-time buyers an $8,000 tax credit to further sweeten the deal.
But as any homeowner will tell you, the decision to buy a home is only half the battle. The real challenge is in the details of what, where and how much. Here are five first-time home buyer mistakes you don't want to make.
First Time Buyer Guide 2009
This is an exciting year for first time buyers, with a once in a lifetime opportunity to get the home of your dream.Gallery: Advice for First Timers+ Understanding the First Time Buyer Credit
1. Don't think that "long term" is a couple of years.
Buying a home, especially now, requires long-term planning, not just with finances, but with your career and your personal life. "The old rule was to plan on owning the house for three to four years," says Ben Hoefer, an agent with John L. Scott in Seattle. "I'm recommending that people think in terms of five to seven years."
If you don't know where you'll be a year from now, let alone seven years from now, you might want to rethink your plans to buy. A house isn't a bargain if you can't recoup your investment. The more time you can spend in the home -- comfortably -- the better the deal.
For many first-time home buyers, that means finding a house that suits their needs and their budget now but also offers room to grow -- or the option to rent. Location is another sticking point. "A lot of people will go for the better house farther out and realize, after it's too late, it's not the location they want," says Hoefer. Would the commute be manageable if you change jobs? What about school quality? These factors influence not only your sanity but also home values.
2. Don't settle for something with more wrongs than rights.
Before you get lured into an open house, spend some time figuring out how much home you can afford and browse online listings to familiarize yourself with the market. "Most first-time buyers are going to be hard pressed to get everything they want, even now," says David Krieger, general manager of Coldwell Banker Preferred in Philadelphia. But if you prioritize your needs and wants and give yourself time to look around, you have a better shot.
For More: Cyberhomes First Time Buyer Guide
That tactic worked well for Litsy Witkowski, who bought her first home last summer. "I didn't necessarily want to find a place very quickly," says Witkowski, 27, who spent more than six months looking around New Haven, Conn. During that time she saw dozens of houses and condominiums and "quickly learned what neighborhoods and styles I liked and didn't like," she says. Her home, a three-bedroom colonial with two and a half bathrooms, a finished attic and basement, and a four-season porch, was listed for $299,000; Witkowski managed to negotiate the price down to $285,000. "Taking my time was definitely the right call," says Witkowski, who shares her home with three housemates. "I think there is something to be said for walking into a place and knowing that you either love it or you don't."
3. Don't make finding an agent an afterthought. With so much information at your fingertips, it might seem old fashioned to enlist the help of a real estate agent. But, a good buyer's agent brings a lot more to the table than listings; he can walk you through everything from the loan preapproval to the home inspection and, most importantly, is obligated to put your interests first.
In hindsight, this is one thing first-time home buyer Kelcey Nichols, 34, would have done differently when she started house hunting in Santa Fe, N.M., a couple of years ago. Although she's very happy with her three-bedroom adobe-style home, she wasn't always on the same page as her agent. "We had different negotiation styles," she says. If she were buying again she would interview several agents before starting the search. "I think working with someone who really knows what you want could save you a lot of time and money," she says.
Yet, most buyers don't spend enough time looking for an agent who will represent their interests in the transaction, says Krieger. Instead, they find the home and call the listing agent, not realizing that that agent represents the seller. It's better to find your own advocate from day one. What's it going to cost you? Technically, nothing. Sellers' and buyers' agents split commissions paid by the seller. Although you could go it alone and ask the seller's agent to cut her commission and pass that savings on to you, as a first-time buyer it's likely you would do better working with a pro and looking for savings elsewhere.
4. Don't assume that every home is in foreclosure.
No doubt there are deals to be had. But just because national headlines show double-digit drops in home prices and a record level of foreclosures doesn't mean that's the case for every home in every market. Nationally, fewer than 1 percent of all housing units on the market are in foreclosure, according to first-quarter data from RealtyTrac. While you don't want to rule out foreclosed property, you don't want to limit your search to the bargain bin.
Krieger notes that the average Philadelphia seller is receiving about 97 percent of asking price. This figure will vary from month to month and even from neighborhood to neighborhood, so do your homework before putting in an offer. Now that home prices have fallen so much, many of the best deals are starting to fetch multiple offers.
5. Don't forget about all the other costs of owning a home.
After searching Salt Lake City for six months, Julia Lyon, 35, knew she'd found a winner when she walked through the front door of a circa-1901 Victorian in the Liberty Park neighborhood. The house needed a little work. But at $260,500 the price seemed fair, especially by 2006 standards.
Still, the home has gobbled up more time and money than she'd ever anticipated. "As my brother recently told me, I didn't buy a house -- I bought a project," says Lyon, who's spent about $15,000 on everything from gutting the first-floor bathroom to fencing in the backyard. "I don't want to keep ignoring problems that should have been dealt with 10 years ago," says Lyon, who got married in 2008. "But I worry that we're putting more money into some of the fixes than we may get back."
Most first-time home buyers find themselves in a similar situation: They focus so much on the sticker price that they fail to account for the other costs that come with owning a home. Some of these costs aren't optional -- closing costs, maintenance and utilities. Others -- new furniture and gardening tools, to name a few -- can add thousands of dollars to the price tag if you're not careful.
At the same time Lyon is conscious of "over improving" her home, she has no regrets about buying it. "I love my house as much today as I did the first time I saw it," she says. Unfortunately, many buyers from the boom can't say the same. "Some of the saddest homeowner stories I've heard are from people who bought too quickly -- without really understanding what was out there."
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