We are trying to decide between auctioning our home and selling it with a Realtor. Any suggestions?
From what we have seen, the auction sales prices are typically way below market value. You may pay $10,000 to more than $100,000 up front (non-refundable) to auction your property, then sell it for way below market value, that’s if it even sells at all.
Before you give your property away at auction, consider listing with a REALTOR at a competitive price. You should come out way ahead financially.
I want to take out a 2nd mortgage on my home to pay off some debts. Will my interest be deductible?
Yes, according to IRS Publication 936. That is assuming that you itemize your deductions. You can read the details online at
http://www.irs.gov/publications/p936/ar02.html
What types of contingencies should we put in our offer to purchase?
The most typical contract contingencies are financing, clear title, home inspections and survey. These are already included in the standard Florida Association of REALTORS contract. The financing contingency normally incorporates many of these contingencies. As examples, the lender will not fund the transaction if the survey shows an unacceptable encroachment, nor will they fund if the property has a clouded title. Likewise on an acceptable (clear) termite report. Without it, the lender will not fund.
One important contingency is that of the home inspection. It should be spelled out in very clear language. Home inspection reports and who is responsible for what probably constitutes the majority of the contractual conflicts in the market.
I had my house sold but the buyer is trying to back out because I installed my own roof last year but forgot to get a permit. Can they do that?
That’s probably more of a question for your lawyer (which we are not) but basically, it will depend upon your contract language. Oftentimes, depending upon your municipality, you may be able to obtain an after-the-fact permit for your roof. This would involve a roof inspection by the appropriate building inspector. From a negotiation stand point, try to offer to pay for an inspection by a licensed roofing contractor and get a permit!
When I refinanced my home, it looked like I paid double interest for four days. Who should I call about this?
Your title company or lender can explain this to you, but in a nutshell, an interest overlap will occur unless you are refinancing with the same lender/investor. You begin paying interest on the new mortgage when the new lender actually funds the loan. And, once the new lender funds, the title company is able to send the payoff to the old lender. Sometimes the payoff is sent via overnight courier, sometimes by bank wire. Either way, the old lender will charge interest until the day that the loan is paid in full. If your new loan is funded on a Friday, you automatically add another two days worth of interest to your payoff!
We want to buy like the guys on TV that sell books on how to buy with no money down. Can you tell us how to do this?
Evidently, these “authors” believe that they can make far more money selling books, DVDs and tapes on late-night infomercials than employing their own strategies in real estate investment. If you look at real world live investors who have done well in real estate investment, you will find that for the most part, they did it over a period of time, not overnight.
Creative financing? No money down? Yes, there are some legitimate, creative ways to massage your way into a real estate investment, but remember, if it sounds too good to be true, it probably is!
I am moving out of state and want to rent my house out until I can move back here. Should I make the tenant be responsible for lawn care?
If you will be living out of state and managing the property yourself, we highly recommend that you include the cost of lawn maintenance and pool service in the rental payments. While some tenants may take good care of the lawn and pool, others may not. Make sure that the lawn service company checks your irrigation system periodically as well.
The initial rate on my home loan was called a “teaser rate." What does this really mean?
On adjustable rate mortgages, the rate that you pay during the first year may be lower than the “fully indexed” rate. In other words, if your mortgage terms state that your interest rate will be the sum of the 1 year T-Bill plus 2.5% and the 1 year T-Bill is 5%, then the fully indexed rate would be 7.5%. If the rate you are actually paying during the first year is lower than that, it would be referred to as a teaser rate. In such a case, you should expect an increase on your first rate adjustment.
My closing has been delayed on the house that I’m buying because there’s a mortgage on the property that the seller said is paid off. It’s been two weeks now. How long should it take to fix this?
We see this problem most often when a property had been financed by the previous owner (owner financing). Many times, the individual did not prepare and record a “satisfaction of mortgage” once the note was paid. If the individual having held the mortgage is available, this can be corrected within a few days.
PART 2: If the property had been financed by the previous owner (owner financing) it can be resolved easily, assuming that the previous owner is available. If the previous owner is deceased, it will require that the estate’s representative execute the mortgage satisfaction. On rare occasions, a court order may be required. The length of time to resolve this could be far in excess of two weeks.
I am interested in buying a townhouse that I found. I was told that it is actually a condominium. What’s the difference?
If a property shares a “footprint” with another property, it is always a condominium. In other words, if you have another unit above and/or below you, it is a condo. A townhome styled residence can be recorded as a condominium and may provide for additional common element benefits.
Is now still a good time to buy real estate with interest rates increasing?
Mortgage lenders are advertising rates as low as 6.125% this week, which is near all time historic lows. Considering that the average 30 year fixed rate for home loans between 1972 and 2005 was 8.91%. Now is still a good time to buy.
A home inspector told us that a tree near our house is lifting up one side of the foundation and should be cut down. Is there any way to save this beautiful tree?
Trees and shrubs that are planted too close to the home can cause a variety of problems. In your case, the problem is with just one part of a root system, not an entire tree. It is often possible to cut out selected roots without having to destroy the tree. Before conducting tree surgery on your own, consult with a tree specialist to determine what options you may have.
My husband and I need to move to a bigger house. Is now the best time
to buy?
Although asking
prices (not necessarily selling prices) have dropped somewhat over the
past six months, they now appear to be leveling off. There is a lot of
inventory out there, so you have lots of great choices today. 30
year fixed rate mortgages are still available at less than 6% and sales
activity has been on the rise since the beginning of the year.
Interest rates
may go up a little more this year and housing prices may not ever be
much lower. Now may very well be the best time to buy!
I was thinking of selling my condo on Okaloosa Island since
the appreciation has slowed down but it seems like things are moving
slow. Should I sell now or wait?
If
you have owned your condo for a couple of years or more, the profit on
the sale (based on today’s prices) would likely be enormous. If
you purchased for investment, you are taking a depreciation write-off each
year, plus a deduction for expenses and mortgage interest. If
the rate of appreciation is only 3% per year, keeping your condo is
still an excellent wealth building investment.
Base
your decision on your personal needs or goals. If you could use the
cash now, sell now. If you plan on simply reinvesting your proceeds,
you may be better off not selling at all. Consult your tax advisor
and make sure that you consider all of your options before deciding.
I have a contract to purchase a home. The home inspector
noticed that the lawn pump doesn’t work. The listing agent
says that it’s not warranted because the MLS print-out doesn’t
say that the home even has a lawn pump included. Is this right?
Your sales contract dictates the terms of the transaction, not
the MLS print-out. If your contract says that all systems (mechanical,
electrical, plumbing, etc.) are to be in normal working condition and
the lawn pump is not specifically excluded, the seller should fix it
prior to closing. |
