From Clicks to Bricks

The Walk Through -

Prior to going to the closing table a buyer is entitled to go back to the property to insure that everything is in the same condition as it was at the time the contract was signed.  Appliances should be working unless excluded in the contract.  You may have negotiated or the seller has agreed to leave certain things in the house such as light fixtures, air conditioners, window treatments.  The final walk through is your opportunity to do the final check before going to the closing table but this is to check that was in the contract.  This is not an opportunity to do a reinspection.

Prior to signing your contract most likely you brought an Inspector in to check the house.  Some Inspectors offer the service to come in to do the final walk through with you.  If you plan to bring back an Inspector for the final walk through and some people do, most people don't, please make sure that the seller is aware of this.  If this is not in the contract the seller has no obligation to let you back in the house with an Inspector at this point. 

Some Inspectors will tell you that at the final walk through they will explain how all the systems in the house work.  It is not the seller's responsibility to let you spend the time dong this at the walk through. This is something that you and your Inspector can spend loads of time on after you own the house.  Or you can take notes at the pre contract Inspection.

Mortgages and First Time Buyers

If you are shopping for a mortgage today everything has changed.  If this is not your first home and you have had mortgages in the past don't think that what you knew then has anything to do with what is going on now.  It doesn't.  Everything has changed. Everything.

Different banks, mortgage brokers, handle things in different ways.  Different banks have different rules. Some of these rules can effect he progress of your purchase, some of these rules might not be foreseeable by an inexperienced mortgage broker.

Often first time buyers will walk into a bank branch because that is where they have their checking account and because they feel that they have a "relationship" with that bank. Well guess what?  That bank may not have the best mortgage product for you.  That bank may not be the most efficient mortgage producer.  That "mortgage" person sitting there may be a newbie to the business too. 

I recently had a first time buyer who walked into their local bank and started the mortgage process that way.  When I asked if they needed a referral they said, no, that's okay we know someone.  So, rather than take a reference from an experienced real estate agent who has cultivated mortgage brokers that do a really excellent job, have been tested again and again this couple felt more comfortable just walking into their bank branch.

Not all mortgage brokers, banks, etc are created equal.  It truly makes a difference.  Personally if I refer a buyer to a mortgage company, broker I do NOT get a referral or any other "kick back".  I do not get tickets to the Yankees games, dinner at Peter Luger or anything.  I make the referrals because I want my buyers to get financing.  I want to know they are in professional and capable hands.  I do not want to be driven crazy by a bank that is inefficient or won't be there next week.

 

Doing An Inspection on A Property

Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect. You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports and what the inspector himself says during the inspection. All this combined with the seller's disclosure and what you notice yourself makes the experience even more overwhelming. What should you do?

Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:

1. Major defects. An example of this would be a structural failure.
2. Things that lead to major defects. A small roof-flashing leak, for example.
3. Things that may hinder your ability to finance, legally occupy or insure the home.
4. Safety hazards, such as an exposed, live buss bar at the electric panel.

Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4). Most sellers are honest and are often surprised to learn of defects uncovered during an inspection.

Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Do not kill your deal over things that do not matter. It is inappropriate to demand that a seller address deferred maintenance and conditions already listed on the seller's disclosure.

Above Compliments of Nick Gromicko.

Pre Qualified or Pre Approved ???

From the American Bankers Association website;

"Get pre-approved

. Know the difference between "pre-qualified" and "pre-approved." Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home."

Are You Just A Bit Intimiated By All of This?

There is a lot to know.  About houses, neighborhoods, maybe about schools, about how to buy, how to go about it, etc.  This is a process that takes some time.  If you are a first time buyer find an agent who takes the time to answer your questions.  It can take time to find the right house don't let anyone pressure you.  The more houses you see the more you will know, the more comfortable you will be.

What About the Real Estate Agent?

There are several things to know about Real Estate Agents (Brokers). 

• There is a REALTOR Code of Ethics, rules that we play by.  Real Estate Agents (Brokers) are only REALTORS if they belong to the National Assocation of REALTORS.  The Code of Ethics is a NAR document.  When you join NAR you become obligated to follow this Code of Ethics.  There are Real Estate agents (brokers) who do not belong to the National Association of Realtors and are not obligated to follow the Code of Ethics. 
• We are all licensed by our individual states as well.  Our license requires that we follow all state and local laws as they pertain to real estate, such as the Fair Housing Laws, Americans with Disabilities Act, etc.
• Then we have our local Multiple Listing Rules which covers listings, how and what we enter on listings, how we handle offers, fines for not following the rules.
• Then there is the Agency Disclosure for each state.  This is tied in to the Code of Ethics and explains to you, the consumer, what you can expect from a Real Estate Agent you work with.

We are regulated and then we are regulated some more. 

Agency Disclosure Form for New York State.

2008 Code of Ethics

Housing Styles, Do You Know What a Colonial Is?

  Do you know what a Colonial is? a Cape? a Ranch? If you are a first time buyer you may not know the differences but as you search for listings it can be helpful to know. For instance a family with very young children might prefer to have all of the bedrooms on one level, the parents like to be with the children for safety and because they might need to get up throughout the night. A cape has two bedrooms upstairs and two bedrooms downstairs as it's main configuration (sometimes they are expanded and additional bedrooms are added upstairs) and that is uncomfortable. The National Association of Realtors has a guide to home styles with pictures. So click below:

A Guide to Housing Styles

The Abbreviations You See on Listings......

What do those abbreviations you see on listings mean?

• LR - living room
• DR - dining room
• EIK - eat in kitchen
• SGD - sliding glass door
• BR - bedrooms
• BTH - baths
• BR/BT - bedrooms/baths
• MBR - master bedroom
• EH - entry hall

About Open Houses - Westchester County, New York

This post is republished.  It was written in response to a question on my blog about Open Houses.

 

There are a few things about Open Houses.  Many years ago the New York Times was the gospel in terms of Real Estate advertising in the New York Metropolitan area. The Internet has changed all things about real estate quite a bit.

 

You can not assume that all new listings and that all Open Houses will be advertised in the New York Times.  While more and more brokerage do advertise on the Times, not all do.  Some houses are advertised in the Journal News, one large franchise has something called "Open House Sundays" which I believe is the second Sunday of each month.  You may or may not see their homes advertised independently of the Open House ad that is run (full page).

 

Office and Individual web sites are all different.  Some of the larger agency's have Open Houses on their sites but only for their own listings not a full list of all open houses, confused, yet?  And what can you do?

 

There really isn't one place you can go to now where you can get all of the Open Houses being held.  To the right on this blog there is a blue bottom which is a link to the Westchester Putnam Multiple Listing Service Open Houses for the public web site.  A lot of Open Houses are posted on the MLS but again not all.

 

If you are working with a real estate agent/broker they can send you listings and let you know if there will be an open house for a property that you are interested in.  An agent is really the only way to insure that you don't miss a house you might be interested in.  There are believe it or not houses that come on the market that never have a public open house. They can also call ahead and give the listing agent a head's up that you will attend and they will save some discussion that you might not want to have when you get there.  Without an agent - good luck!

Now What?

You've been searching around the internet looking for houses or apts, trying to figure this whole process out.  There is a lot of information online but sometimes it is overwhelming and not so easy to figure out how to put it together.  This is my new blog for first time home buyers.  I will explain the steps, things you need to know, have property listings and am available to answer questions.