HOMEBUYER'S CHECKLIST

It's time.  The space you're calling home is growing smaller and smaller with each passing day.  You have made up your mind to start searching for a house that will meet your needs for several years to come. Before you jump the gun, pause and take a look at the Homebuyer's Check list.

Let's break this down into 3 key sections.  The first is Finance followed close behind by Documents and last, but not the least, your Real Estate team.

1. FINANCE - There are a few things that need to be done before you look at that first house and it begins with Creating a Monthly Budget.  This is crunch time. No pie in the sky dreaming about what you are going to earn.  Start where you are and see what you have in the way of monthly Income and Expenses.  

Now you can research mortgage options and begin saving for your down payment and closing cost.  It is important also to establish and maintain good credit so check your credit report and work to improve your credit score.  

Once you are certain your budget is functioning on all cylinders and your credit score is sufficient for a loan, it is time to interview potential lenders.  Your current bank is always a good place to begin, but don't be afraid to shop and compare.

2. DOCUMENTS - Below is a list of essential documents you will need to bring to your lender.

   * W-2s from past year
   * Pay stubs from the past 2 months
   * Proof of any supplemental income
   * Tax returns from the past 2 years
   * Bank statements from past 1-3 months

   Other documents that may be requested include:

   * Investment account statement
   * Copy of driver's license

3. REAL ESTATE TEAM - With a pre-approval letter in hand and a clear understanding as to the amount of your loan it is time to select a real estate agent/team to work with to assist you in your search for that dream home.  

During the course of your interviews with potential agents/teams take the time to ask questions and seek explanations should you have concerns.

Once you have selected an agent/team you will be one step closer to that new home.

Preparing to purchase a home can be challenging, but it can also be fun and rewarding.  With your checklist in hand, you will be able to move smoothly through the pre-home buying process.

THE WOES OF "FOR SALE BY OWNER"

Today's real estate market may cause some homeowners to consider selling their home on their own (aka: For Sale By Owner/FSBO). However, a FSBO may be difficult to execute well for the majority of sellers.

Let's examine 5 reasons why not to FSBO.

1. Online Strategy aimed at Prospective Buyers
Studies have shown that 93% of buyers search online for their next home.  Developing and maintaining such strategies consumes time to promote.  Do you have those extra hours in your day?

2. Results come from the Internet
According to the NAR (National Association of Realtors) here is where buyers found the homes they purchased. 
   * 55% on the Internet
   * 28% from Real Estate Agent
   * 10% Other
   * 6% from yard signs
   * 1% from newspapers

Selling your house by planting a sign in the yard or placing an ad in the newspaper is long gone.  Have a strong internet presence matters.

3. How are your negotiation skills?
Here is a "short list" of people with whom you must be prepared to negotiate with if you decide to go the FSBO route:

  * the buyer who wants the best possible deal
  * the buyer's agent who acts in the best interest of the buyer
  * the buyer's attorney
  * the home inspection company, who will most likely find some problems with the house
  * the appraiser, if there is a question of value

4. The "Paperwork"
The paperwork involved in buying or selling a home has increase significantly as industry disclosures and regulations have become mandatory.  This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the past 20+ years.

5. "I'll net more money!"
Too many homeowners believe they will save paying the real estate commission by selling on their own, but the seller and the buyer can't both save the commission.

A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money, but they don't actually save anything.

The reported noted that:

"While 36% of sellers that attempted to sell their homes on their own, only 11% of sellers - in other words, less than a third ... actually sold without an agent."

Take Away:

Before you decide to take on the challenge of selling your house, talk over your needs with a local real estate agent.

IT'S YOUR MOVE CHECKLIST

Your boss has just told you that you got that promotion you have been hoping for these past three months.  Only drawback - your new job is in another town in another state and you have to move.

Being the organized individual that you are, you immediately understand the importance of creating a "moving checklist" since time is of the essence.

Because your new job takes you half way across the country you need to "get moving" on making moving a priority.  

If you have the luxury of several weeks to accomplish your move - great; but if time is of the essence you may need to consolidate tasks and share responsibilities. 

Here are some essential items to include on your Moving Checklist.  

1. Create a realistic budget to cover moving expenses.  If all your worldly possessions can fit in the back of a U-Haul that is great, but that is not always the case.  Others may require the services of professional movers and coordinating the move so you and your household arrive at the "same" time.

2. Clear the clutter.  The more you move, the more it costs.  Begin getting rid of items you know you won't need and identify items you can donate to charity.  

3. If you have children obtain information on their new school registration and transfer records if necessary.  

4. Contact your utility company to cancel service.  Make sure they are aware of your move date and arrange for a service termination date.  

5. Pack your "go bag" of essentials. Items you will need while in transit and upon arrival at your new location. 

6. Notify your service providers with a change of address.  Let the U.S. Post Office know where to forward your mail.  Let your bank know you will be relocating and charges will appear on your account that are not "normal".

7. Ensure that essential utilities are ready at your new home. After a long trip you don't want to enter your new home and find the electricity is not turned on.  If you need to spend a night in a hotel, confirm your reservation with the hotel a few days prior to your move.  

This is by no means an all-inclusive list, but a few of the essential.  A number of "Moving Checklist" are available on line for your use.  Check them out - it's your move!    

THE 411 ON HOME INSPECTIONS

You have spent the last few weekends touring homes with your real estate agent.  You have found the house you want to make your new home.  One of the things your agent tells you is, "You need a home inspection."

Why do you need a home inspection?  It will help you identify any issues with your home and assess the value of the problem(s).

What does the home inspection include? A professional inspector will visually check your home for damage or needed repairs.  Items on a typical home inspection include:

 *plumbing
 *electrical wiring
 *HVAC system
 *water heater
 *roof
 *insulation
 *interior and exterior structure
 *any other major components of your home

How long does a home inspection take? You can expect the inspection to take between two to three hours, depending on the size of the house.  Upon completion of the inspection, a home inspection report will be given you with a list of items to repair.

What affects the price of the home inspection? Home inspection fees vary nationally. Many home inspection companies base their price on a fixed percentage of the home's selling price, while others base the price on your home's square footage.

When you order a home inspection, the company will need some basic information such as the total square footage, the number of floors, bedrooms and bathrooms, is there a basement, crawlspace or attic and porches.  These locations are all included in the home's total square footage.

Does a home inspection cover everything? The simple answer is NO. There are a number of elements such as your home's construction, location, home's age, and some regions require addition test, such as Radon.  Should an additional test/inspection be necessary your home inspection company can advise you as to their cost.

What is the average cost of home inspection? The national average is between $244 and $421, depending on the size and location of your property.

Does the inspector need a certification? It goes without say, but it is a good idea to choose an inspector with a professional certification.  Organizations that certify home inspectors include:

  American Society of Home Inspectors
  National Association of Certified Home Inspectors
  National Association of Home Inspectors 
  American Home Inspectors Training

When hiring a home inspector, ask about their certifications and licenses and any other qualifications they must have.  

Final thot:  You are investing a significant portion of your hard earned cash into a house that you will call home for you and your family.  It is important that you know its strengths and weakness before you invest.  The home inspection is your home's "x-ray" to know if it has "good bones".