Sunrise Homes & Renovations, Inc.

Common Mistakes The Experienced Homebuyers Tend To Make

by

Common Mistakes The Experienced Homebuyers Tend To MakeWhen people are looking at buying a home, there are a few common mistakes that first-time homebuyers make; however, there are mistakes that seasoned homebuyers make as well. What are the most common mistakes that people make when they are looking for a new home for the second or third time? There are a few key examples to keep in mind. 

Trying To Rush Through The Process

The first mistake that experience homebuyers make is that they try to rush through the process. They feel like they understand exactly how it is going to work because they bought a home the first time. Therefore, they end up rushing, making a few key mistakes in the process. Remember that this is an important financial decision and it is important to take the time to get it right. Nobody should try to rush through this process when they are looking for a new home. 

Not Thinking About Traffic Patterns

Lots of people try to figure out exactly how far they are going to be from school or work when they are looking for a home. On the other hand, people also need to think about traffic patterns. Just because a home is within a few miles of school or work doesn’t necessarily mean that the commute is going to be easy. Think about the traffic patterns before making a decision. 

Not Thinking About The Future Of The Neighborhood

Lots of people who are buying a home for the second or third time are planning on being in that home for decades. Therefore, it is important to think about the future of the neighborhood. What is going to happen in the local area? How is that going to impact property values? These are important questions that should be answered before signing on the dotted line. 

Think About These Mistakes Ahead Of Time

When experienced home buyers are looking for a new home, it is important to think about these mistakes ahead of time. When they take the time to think about these mistakes, they ensure they avoid them down the road. That way, they make sure that they end up with the right home at the best price possible.

 

Juggling Priorities: How to Manage Buying a New Home and Selling Your Old One at the Same Time

by

Juggling Priorities: How to Manage Buying a New Home and Selling Your Old One at the Same TimeAre you a homeowner who is thinking about selling their current home and making an upgrade to a newer, larger home?

If you’re facing the prospect of having to manage a home purchase and a home sale at the same time you’ll find that there are numerous priorities that are begging for your attention.

In today’s blog post we’ll share a few tips for how to manage a buying and selling transaction simultaneously without being overwhelmed by them.

Start By Getting Your Finances In Order

Before you start the hunt for a new home you’ll want to ensure that your finances are in order and that you’re fully prepared for the many costs that you’ll face.

If you are currently paying off a mortgage on your home, you’ll either need to be approved for a second mortgage to buy your new home or you’ll need to sell your current home first.

You’ll also need to have your down payment lined up for the new home, as well as some money set aside to cover your closing costs. If you plan on selling first and then buying afterwards you may want to have a “transition fund” set aside to cover any rental or other costs if it takes a month or two before you get into a new home.

Selling First Is Typically Far Easier

It’s worth noting that selling your home first and then buying is far easier than buying first and trying to sell. There is a lot of uncertainty in the selling process, especially if you’re in a slower real estate market. Conversely, once you find that perfect new home you can typically get an offer in and close on it quickly if you’re the only bidder.

Begin The Hunt For Your New Home Immediately

Although you may want to wait before you buy your new home, you’ll want to get your house hunt started as soon as you decide to make your move. The more time you give yourself to find a new home, the better the chance you’ll get one in your target community and with the features you’re after.

Leverage Professional Expertise To Help You Manage It All

Trying to manage both selling your current home and buying a new one at the same time will be a significant challenge – one that can be made far easier by working with an experienced real estate agent who knows the ins and outs of the local market. Contact your real estate agent before getting started and they’ll be able to advise you how to best proceed.

A Bidding War Is Taking Place Among Homebuyers

by

A Bidding War Is Taking Place Among HomebuyersWhile businesses have fallen on hard times during the past few months, there are signs that the economy is going to start to recover quickly. This could mean that homebuyers are entering the market again as well.

With summer being a historically hot time for homebuyers all over the country, there are a lot of experts saying that buyers need to get ready for a bidding war.

There are not a lot of homes on the market right now, as sellers are still a bit reluctant to put their homes back on the market with the economy just starting its recovery process.

The end result is that there is a disconnect between supply and demand. This imbalance is causing home prices to climb upward as homebuyers get into a bidding war.

Homebuyers Might Be Surprised

Many homebuyers are surprised that prices are actually rising instead of falling. When the last recession hit, home prices actually fell significantly. This is because mortgage defaults were the cause of the last recession, which is why home prices fell so dramatically.

The cause of this economic downturn is different. Due to a limited supply of homes, this is leading to more competition among homebuyers. This leads to more competition, handfuls of offers for a single home, and a bidding war. In order to find the right home, there are a few tips that homebuyers need to keep in mind.

Put Forth A More Competitive Offer

Those who are looking for a home right now need to place themselves in a position to compete against multiple offers from other homebuyers. Some of the most important tips to follow include:

  • Hire a local expert who understands the state of the market right now who can help homebuyers find the right home. Right now, the real estate market is not normal. It takes an expert to understand the ins and outs of buying a home in this market.
  • Get pre-approved from the market to make sure the offer looks serious to the seller. Those who get pre-approved from a lender will demonstrate a strong desire to buy, pushing their offer to the top.

There are ways to put forth a competitive offer even in this challenging real estate market.

Some Millennials Are Finding Home Buying Overwhelming

by

Some Millennials Are Finding Home Buying OverwhelmingMany millennials are reaching the age where they are thinking about buying homes for the first time. It turns out that many members of this generation are finding this process challenging. Even though the housing market is great for those looking to buy, surveys indicate that this generation also finds the process overwhelming.

Reports have been published showing that many millennials are planning to buy their first home in the next year, showing that owning property is still a strong part of the American dream. Furthermore, many millennials also know that this is a great time to buy. Why are millennials finding this process so challenging?

Student Loan Debt

One of the biggest reasons why millennials are having issues purchasing a home is student loan debt. When someone is looking for a home, any potential lender is going to take their existing debt into account. It is no secret that student loans are a major issue right now.

With numerous millennials saddled with student loan debt, this makes it hard to qualify for a mortgage. While other forms of debt are easier to pay back, student loan debt is not. Some millennials have student loan debt that looks like a mortgage. 

A Poor Understanding Of Costs

Even though millennials may look at their rent payments as a solid barometer for their mortgage payment, there are other costs that millennials need to consider. These include real estate taxes, HOA fees, homeowners’ insurance, and potential repairs. Therefore, they might need to reset their expectations.

Comparison Is A Dangerous Temptation

Finally, too many millennials are tempted by what they know. Many millennials end up moving back into their parents’ house after they finish school. The job market can be tough and they think this is a great way to save money. On the other hand, this also means they might end up looking for a house that is similar to their parents’. 

Many millennials have set the bar high for their first home. A property like their parents’ simply isn’t within the budget. An unwillingness to accept this makes it harder to find a home. On the other hand, there are affordable homes out there. Millennials simply need assistance to find them.

5 Options To Consider When Your Appraisal Comes In Low

by

5 Options To Consider When Your Appraisal Comes In LowYikes! You are set on buying the home that you picked out and the appraisal comes back at a lower amount than the amount needed for the home loan to be approved. What do you do? After you calm down your significant other and then take three deep breaths, here are some options to consider.

Request A New Appraisal

Appraisals are only one person’s professional opinion. There are rules that must be followed when making an appraisal; however, there is still some flexibility in how to apply the rules. Check the comparables (also called “comps”) that the appraiser used as the basis for setting the appraised value.

There usually have to be at least three houses that are a similar size, similar age, have a similar condition, and are located in a similar neighborhood. If the home that you want to buy just had major renovation with a lot of work done on it, the appraiser may have missed this and should add more to the appraisal for the home having a better condition than the comparables.

Check to determine if any of the comparables are wrong. For example, if the appraiser uses a home that is in poor condition that may cause the appraisal to be too low. When there is another choice of a home in a better condition, which is more similar to the one being sold, the appraisal might be higher.

If you find problems with how the appraisal was done, request a review from your lender and see if they will allow you to pay for a second appraisal. Getting a new appraisal with a higher value is the easiest way to fix this problem.

If that does not work, then you can try these other options:

Negotiate With The Lender

Some lenders may cooperate with a loan restructuring if you qualify for a program with a higher loan-to-value (LTV). This may also require private mortgage insurance (PMI) if your loan amount exceeds 80% of the appraised value of the home. Working with your trusted mortgage professional can lead to unexpected options to get your home purchase completed.

Negotiate With The Seller

Trouble may come up if an appraiser cannot find comps that meet the selling price of the home. This may be caused by the home having unique qualities, a market that does not have other homes like it, or possibly that the sale price is more than the home is actually worth. If the price of the home is actually too high based on the appraisal, the seller might lower the sales price in order to keep the transaction together.

Increase Your Down Payment

If the amount of the difference is small and you can cover it, you can still proceed by taking a lower amount for the loan and adding money to your down payment to make up the difference.

Find Another Home To Buy

Your purchase offer should be subject to obtaining financing. If the appraisal comes in low and that prevents you from obtaining financing at the original sales price, you likely will be able to cancel the purchase agreement without penalty and search for a new home.

Your trusted real estate professional is well-versed in these types of issues and ready and willing to assist you with your successful home purchase.

Auction 101: Bidding On Your First Property

by

Auction 101 Bidding On Your First PropertyWith the right combination of strategy, knowledge, and luck, flipping houses can create big profits for short-term investors. However, your path to success starts at your first auction.

For first-timers who are intimidated by their lack of experience at public auctions, follow these steps to ease the confusion of your first property purchase.

Locate Auctions In Your Area

Finding live auctions is as simple as an internet search. Websites run by government agencies list homes that have been seized due to tax liens or foreclosures. Try searching databases maintained by:

  • Fannie Mae
  • The FDIC
  • The US Department of Housing and Urban Development

Another option is your local newspaper. Banks publish foreclosure notices in the public notice section. You can also find advertisements from auction companies and information from the sheriff’s or county tax collector’s office that helps you hunt down low-cost properties.

For busy investors who plan to use real estate as an extra income, be certain to enlist the help of a professional real estate agent. They often keep lists of homes in foreclosure in the surrounding area.

Assess Available Properties

All properties are not created equal. To find the right fit for your project, find the following information for each potential listing.

  • Current bid price
  • Previous purchase price
  • Length of time property has been unoccupied
  • Property condition
  • Number of bedrooms and bathrooms
  • Sales history of homes in the surrounding neighborhood

This information isn’t always readily available. You may be able to find more information via an MLS search, public lands records, or various real estate websites that publish property data. Of course, if you’re working with a real estate agent, they will provide all the data you need to make the right decision.

Some auction sites include pictures and map data. At other auctions, bidders may be allowed to visit the property or hold open houses before the sale occurs.

Perform A Title Search

When you’ve found a few properties that you like, take some time to do a thorough title search. This process ensures your property doesn’t come with some unfortunate surprises.

During your search, you’ll need to:

  • Obtain records from the tax assessor to verify the tax status of the property.
  • Locate the property’s deed either physically or online.
  • Investigate the property’s sales history to ensure no one else can claim ownership.
  • Check for liens, unpaid mortgage commitments, and legal judgments against the property.

Once a property has cleared these steps, you’ll be ready to start placing bids on your first investment property.

Trying new things can be daunting as well as exciting. Don’t forget to rely on your trusted and reliable real estate professional to guide you along your home buying venture.