Tri-City Area and Real Estate Blog

When a home sale is completed and the title of the property is conveyed to the buyer, it is referred to as “closing:”  There are typically a variety of costs that come with the transaction that are paid for by either the buyer or the seller. These costs are also usually paid at the time of “closing”.

Down Payment: Other than a VA Loan or a Rural Housing Loan which do not require a down payment, most lenders will require a down payment. Plan for at least 3.5% – 5.0 % of the purchase price depending on your loan.

Loan Origination Fee: Based on who you are working with, the amounts will vary, however an Origination Fee is paid to the loan officer who initiates and completes the loan transaction with the home buyer.

Points: Points are charged by the lender as an alternative to charging a higher rate of interest on the mortgage loan. One point equals one percent of the loan principal.

Home Inspection: Some lenders require an inspection to verify that the home, which will be used as collateral, is in good condition and will retain it’s value.

Appraisal: Some lenders require an appraisal of the value of the home to ensure that the sale price is equal to the actual fair market value of the home.

Private Mortgage Insurance: If loans where more than 80% of the home value will be mortgaged, some lenders will you to have PMI. This insurance will protect the lender in the event of a default on the loan.

Knowledge is power

A Homeowner’s Association (HOA) can be very attractive to potential buyers of a home.  A HOA fosters community togetherness through common areas and activities.  You can get to know your neighbors and helps maintain the curb appeal of your neighborhood, as well as your home.  An HOA is incorporated by the developer of the subdivision prior to the initial sale of homes in the subdivision. 

Covenants, Codes & Restrictions (CC&R’s) are the governing documents that dictate how the HOA operates and what rules the owners, and their tenants and guests, must obey. These are legal documents and commonly referred to as bylaws.   These CC&R’s or bylaws are documents and rules that are legally enforceable by the homeowners association.  CC&R’s legally “run with the land”, so when you sell or purchase a home with an HOA, membership changes hands and new owners become automatic legal members.

When considering a purchase of a property with an HOA, do your homework.  Not all HOA’s are equal. Some may be laidback on enforcing rules and others may have a history of poor financial management.    Meet with the HOA board or discuss the CC&R’s with your Distinctive Agent.  You want an HOA that is fiscally responsible, and has the money on hand for any major repairs of common areas, such as a swimming pool, community building, parks and sidewalks.    In addition, you may have plans for the home, such as tree removal or a detached building that may be restricted under these bylaws (CC&R’s)

Find out about dues.  Many HOA’s charge dues either monthly, quarterly or annually.  These fees should be used to pay for upkeep on common areas and handle any possible legal fees. These fees are above your regular monthly mortgage and bills you are to pay. 

Finally, check out the dollars and sense.   What is included in your dues, does the trash pick up or water service come included in the fee?  Basically, does the benefits recieved outweigh the cost you will be required to pay?

The Justice Department has announced it has reached a $25 billion dollar settlement in the mortgage lending scandals involving several U.S. Financial Institutions in which millions of families were affected.   It is being called the largest civil settlement in United States history.  

The State of Washington is expected to receive a share of approximately $648 million of the total $25 billion dollar settlement.   Of this $648 millions, $455 million will go to assist homeowners with loan modification assistance and $70 million to assist homeowners who are “upside down” on their mortgages.    additionally, families who lost their homes to foreclosure may be eligible for a one time payment and funds will go to a hotline to assist homeowners who are facing crisis. 

This settlement finally ends to the government lawsuits over servicing misconduct and faulty foreclosure practices.  Though a settlement has been reached, Federal and State authorities can still pursue charges with these institutions for mortgage fraud.   The banks named in the settlement included Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial, (formerly known as GMAC).

We’ve all heard it’s a buyers market, so your are competing with the other homeowners’s attempting to sell there homes in this market.  Your home needs all the appeal to get those potential buyers in there!  Unless your house is silver and shiny, you may want to shine it up a bit with these simple ideas can help show your home at it’s best.

Have your home pre-inspected.

When an offer is made, a home inspection must be performed. Reeling in a buyer, only to lose them to unseen problems with the house is one of the worst things that can happen.  Have your home pre-inspected to uncover any unknown issues.  Prices vary for home inspections ($250 – $500) and an agent here at Distinctive Properties can recommend a professional for you.

Check warranties and get estimates.

If the inspection turns up anything, get estimates for any repairs.  If they are affordable, repair them.  Check warranties on some items, such as furnace, dishwasher, and other real property that stays with the home.  

Make minor repairs.

Not every repair will cost you a lot.  Repair torn screens, squeaky doors, running toilets, etc.  Replace any rotten trim or other small items to increase the look of care to the home.

De Clutter.

Clutter can make the storage in the home seem small.  while you see years of perfectly fine living, other see a house that can’t hold it all.   Clear off the kitchen counters of just about everything.

Clean out closets.  Pack up lightly used items like summer clothes and camping equipment and toys.  You may want to invest in a small storage unit.  A small price to pay for curb appeal.    Store away any bulky furnishing and keep the home simple and basic.  Remember, people are looking at the home and want to picture their belongings in it.  That may be difficult with all the spaces cluttered up.  You basically want to ”depersonalize” your home by removing pictures and knick-knacks.  

Let the buyer see a blank canvas.  

Clean!

You’ve heard about first impressions and how important they are.   A buyer walks into a super clean home is left with the impression that the home is well cared for.   So clean the windows, air out the house to eliminate any natural odors from food, pets, etc.  Have carpets shampooed or steam cleaned and dust off blinds, and launder drapery. 

We hope these tips are helpful.  Visit us on our website at www.distinctiveprop.com for more information. 

In November and December, Realtors across the Tri-Cities will come together to participate in service of their communities by raising food and funds for 2nd Harvest. 

Bags will be dropped off  on their neighborhood doorsteps and bags and donations will be picked up December 2nd, 2011 and all donations will be be delivered to KNDU the morning of December 3, 2011.