Connecticut Real Estate Advice

A Connecticut Real Estate Check

2008-06-02T16:47:00.001-07:00

By John Ash

Many first-time homebuyers, especially those who are just beginning their search for
Connecticut real estate, may be worried if they have a less than ideal credit score. Contrary to what you may have heard, a less than stellar credit score doesn't necessarily mean that you can't buy a good property in Connecticut, however, if you want to avoid a mortgage loan with high fees and high interest rates, you'll want to take some necessary steps to repair your credit score. It's quite simple. With a better credit score you will have an easier time finding a lender and landing a feasible interest rate, potentially saving you a ton of money over the course of your loan. Given the prices of homes in the Connecticut real estate market, most people don't decide on a whim that they intend to purchase Connecticut real estate. Therefore, there should be plenty of time to make sure your credit report is accurate before you even begin searching through Connecticut real estate listings, calling Realtors and scheduling viewings. Getting credit discrepancies cleared up before you seriously seek out Connecticut real estate for sale will spare you the potential embarrassment of having your financing delayed, or worse yet, having your loan application denied, over an issue in your credit report that could have easily been cleared up. It's also good to know your credit score whenever you are shopping around for the best interest rate. You'll close on your
Connecticut property faster and the entire process of purchasing real estate in Connecticut will be much easier with some advanced preparation! Most of us don't look at our credit report enough. When was the last time you looked at your credit report? Many people don't know that it is their right as a consumer to obtain one free credit report per year from each of the three major credit bureaus - Equifax, Experian and TransUnion. It's important to check these reports carefully because it's not uncommon for credit bureaus to routinely make mistakes. Also, with identity theft being more prevalent in today's computer driven world, it's important to make sure that there is no suspicious information showing up on your credit report! Whenever it's time for a
Connecticut CT Homes broker or lender to run a credit check, they too will order reports from each bureau. Because of this, it only makes sense that all three credit reports are monitored simultaneously and cleared up of any discrepancies at the same time. Don't concern yourself with missing information because some creditors don't report their information regularly. That said, if certain accounts should read "closed" but instead read "open", and if accounts that are paid up to date are reading "past due", you'll want to report this as erroneous because the number of open and past due accounts will negatively impact your credit score. Pay close attention to anything that appears in your report that might not belong to you! This is especially important if you have a common name like Kevin Smith. Accounts belonging to another Kevin Smith could be showing up in your credit report. It's not uncommon to find accounts belonging to a parent or sibling just because you once shared the same residence or mailing address. Have you ever received credit card applications where your name was misspelled or had a typo? Make sure there are no accounts with a different variation of your name. Always be aware of the potential for identity theft. You want to highlight anything that is inaccurate or erroneous. If there is something to dispute in the report, write a letter to dispute the authenticity of each error. Tell them what is incorrect, why it's incorrect, and request that your dispute is investigated and responded to. Be sure to mail any documents via certified mail. The agencies in question will investigate the claims and must provide proof that the debt listed in the credit report is valid. The creditor is commonly given anywhere from 14 to 30 days to respond before the item is deleted. At that time, you are to receive an updated credit report. Reviewing your credit report isn't the only step that you can take to improve your credit score. If buying Connecticut real estate is part of your future plans there should be a conscientious effort on your part to make sure that all of your debts are paid on time each month. Being late with payments not only earns you a penalty charge but it also raises your interest rate and can lower your credit score. Limit yourself to five open accounts, don't overuse your credit cards and pay close attention to offers that come your way with 0% balance transfers and limited time 0% or low interest rates on purchases. Don't be afraid of balance transfers! Buying Connecticut real estate can be a daunting task. From finding the right property to securing financing, it can all be simplified with some planning and preparation ahead of time. About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and
CT Homes For Sale.

2008-05-04T17:54:00.001-07:00

Selling Your Real Estate Tips Before Your Listing

By John Ash

Selling your home in the competitive real estate market requires a change in mindset. It’s important to remember that the house is no longer “your home”. What was once your home is now a product that must be marketed to buyers in your area, regardless of how long you and your family have been there, how many personal memories are associated with the home and how much money or time you’ve personally invested in the property. Here are a few suggestions to help you prepare to sell your real estate.

1. Walk through your home and look at it from a buyer’s perspective. Write down any imperfections that are noticeable to the naked eye. Is the plaster on the walls cracking? Are there pet stains in the carpeting or sections of hardwood flooring that are bad? Is paint peeling from the walls? Fix whatever small tasks you can tackle on your own, whether it’s fixing a crack in the wall or painting rooms to freshen up the house.

2. Earn the trust of potential buyers by providing them with professional estimates from reliable contractors on bigger projects like new roofing, replacing worn carpeting or flooring and adding new windows.

Gather any warranties for appliances, your furnace, hot water tank, central air and anything else that will remain a part of the house when you leave.

3. Enlist the help of friends, contractors or an experienced Real estate agent who will view your house objectively and not refrain from pointing out problems and offering suggestions.

It can sometimes be difficult to break that emotional attachment to your house and find fault in a place that has been dear to you and your family for so many years. Someone has to look at your home without that bias.

You can also learn a lot from the prospects viewing your home. Once your home is added to real estate listings, you’ll likely find many interested people scheduling to view your home. These people have likely viewed other real estate for sale. Listen intuitively for any revealing comments. If you hear multiple times that the house is dreary - improve the lighting. If you hear comments that the paint colors are too loud or vibrant – repaint the walls with white paint or neutral colors.

It’s also a good idea to order a pre-sale home inspection. This way the buyer’s home inspection shouldn’t reveal any major issues that could potentially delay a closing or cancel a contract. Any looming issue can be repaired prior to even listing your home.

4. CLEAN! So many people overlook this important aspect of showing off a home to potential buyers. Wipe down the walls and baseboards. Vacuum the carpeting and mop the floors. Tidy up any mess left behind by children or pets. Everyone accumulates clutter when living in the same place for an extended period of time. It’s good to purge items that will not be following you in your move. Think of it as getting your belongings organized right now so everything is less of a hassle come moving time!

5. Make the outside of your home as attractive as possible. Be sure to mow the lawn, plant flowers and trim the bushes, all of which will give the home some curb appeal. Maybe purchase a nice lamppost to light up the walkway to your home, purchase a new address plate or treat yourself to a new mailbox. Something that will “wow” buyers before they even walk through the front door.

Follow some, if not all, of these suggestions and you should have a much easier time selling your property!

About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and Connecticut Real Estate Advice.

2008-05-04T17:53:00.003-07:00

How To Get The Best Mortgage To Buy Real Estate

By John Ash

Mortgages come in many different shapes and sizes, each with their own advantages and disadvantages. In this article you'll be able to find out about current rates, along with advice from a home loan expert. So what is a mortgage anyway? Well mortgages are used by people and businesses to make large purchases of real estate without paying the entire value of the purchase up front. Mortgage lending is the primary way banks in most countries to finance private ownership of homes. Generally with a mortgage, the debtor must meet the conditions of the underlying loan or other obligation and the conditions of the loan.

What about your credit?

Credit balances is one of the factors used to calculate the "price" of your loan. Credit plays a large factor in the type of home you can buy, in determining how much you pay for money. Your credit history is another factor. Credit history refers to the length of time that each of your credit accounts are open. Credit bureaus also frown on large amounts of debt from any one segment of financing. And lastly your credit inquiries are factored in to your score because credit bureaus may penalize people who are desperate for credit. Good credit can save you an enormous amount of money if you plan on keeping your home.

What about the interest?

Interest in the finance charge for use of the lender's money. Interest may be fixed for the life of the loan or variable, and can change at pre-defined periods. The interest rate you get can also, be higher or lower. Interest rates can change because of today's market conditions. Interest rates today are at an all time low because of the slowing economy.

And My Monthly Payment is Determined How?

The best way to find out is to find a mortgage calculator online. Also when considering a mortgage consider it's prepayment terms. Some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for the prepayment. And then when you make the loan, lenders usually require that the borrower make a down payment, in other words, by giving a portion of the cost of the property. This down payment may be expressed as a part of the value of the home. In most cases, a mortgage loan where the purchaser has made a down payment of 20% has a "loan to value ratio" of 80%.

Mortgage interest rates are still at near historic lows. Remember you can search for financing quotes online. Although mortgage applications rose 3% recently, and the mortgage process may take a little longer to process, you'll still have access to great rates on a current 30-year fixed mortgage rates as well as variable mortgage interest rates for most home loan programs.

Mortgages come in many different shapes and sizes, each with their own advantages and disadvantages.

About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and Connecticut Real Estate Advice.

2008-05-04T17:52:00.001-07:00

The Lowdown On Home Inspections: Why You Need Them

By John Ash

A home inspection is a critical part of the process of buying a home. Your financing lender will require a report from a professional home inspector whenever you're purchasing a home that's already built.

Don’t confuse a home inspection with an appraisal. A home inspector is providing an objective review of the physical condition of the property rather than evaluating the house to determine its cost or market value like an appraiser would.

While the appraisal process is often questionable since so many appraisers are subject to pressure from brokers, agents or loan reps for the appraisal to meet a certain value in order for the property to close so everyone can make their money, nobody is really in the ear of a home inspector. A walk-thru from a professional home inspector is done to protect the buyer. As a buyer, you can demand that your offer be contingent on the results of a home inspection, protecting you from a potentially bad investment.

Routine home inspections can also help homeowners maintain the health of their home by catching small problems before they become major expenses! If you’re a homeowner considering listing your home “For Sale” in your local real estate market, it may be within your best interest to order a home inspection on your own to disclose any necessary repairs or upgrades to a potential buyer, or resolve these matters yourself, so they are no longer issues when you list or start showing your property.

A home inspection can last anywhere from two to three hours, sometimes even longer, depending on the age and size of the house. It’s recommended that you make an attempt to be present during the inspection. It’s important to ask the inspector questions and to be present for he or she to go over any issues they may find with the property. Your presence gives them a better opportunity to explain everything verbally and counsel you on options that you have in regard to maintenance or repair.

Your inspector will typically look for the following:

Structural Components: A home inspector will check the foundation of your home to ensure there is no water seepage. They will inspect ceilings, walls and moldings for any loose pieces, dry wall that may be pulling away or cracking. The basement area will be examined for water leakage or a musty smell.

Exterior Components: An inspector will look at your siding for any visible dents or buckling. The exterior brick will be carefully examined. Larger cracks and cracks through bricks are often indicative of a potential foundation problem. Smaller cracks in the mortar and instances of mortar pulling away from the brick may indicate ordinary expansion or contraction of the construction materials. Any porches or decks will be examined for loose railings, dangerous steps or woodwork that is rotting. The condition of driveways and sidewalks will be under close scrutiny as the inspector checks for cracks, heaving pavement and crumbling around the edges. The inspector will also look at both attached and detached garages for potential problems. Doors and windows will be checked for looseness or tight fits, the shape and condition of locks and weatherstripping.

Roofing: The condition of the roof is very important. Finding out that a property is in need of a new roof is a deal breaker for many potential buyers. A home inspector will look for missing or deformed shingles, buckling shingles, pooling water, algal growth, loose gutters, downspouts and blistering or corroded flashing. The condition of the chimney will also be looked at carefully. The inspector will also look at the ceilings in the attic or upper floor to see if there is any visible water damage from a leaky roof.

Plumbing: The inspector will carefully scan the plumbing to look for instances of poor water pressure, loud banging pipes, corrosion or rust spots that often indicate leaks and if there is adequate insulation.

Appliances: When a home inspector examines things like the water heater or furnace, they are taking into consideration their age, their energy rating and whether or not their size and condition are adequate for the house. An inspector will also check out air conditioning units if applicable.

Electrical: A home inspector typically does a surface electrical inspection. They will flip light switches off and on, study any visible wiring in the basement or attic, and look at the condition of the fuse box/circuit breakers and the number of outlets per room. However, if the home is over 40 years old, has had major renovations and large appliances added within the past ten years, the Electrical Safety Foundation International recommends a separate and comprehensive electrical inspection by an electrician.

A home inspection is akin to expert advice from a reliable expert, looking out for your best interest, with no ulterior motive. This isn’t a contractor or auto mechanic, exaggerating problems in order to squeeze more money from you. The home inspector has nothing to gain beyond protecting buyers and homeowners.

About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and Connecticut Real Estate Advice.

2008-05-04T17:51:00.001-07:00

Real Estate Buyers: Looking Beyond The Home For Sale

By John Ash

Sure, when you look at a house, it’s important to factor in things like its room count and condition, the style of the kitchen or the bathroom, and the size of the house or rooms, but there is much more to consider before buying a house.

In fact, there is so much to think about, it’s very easy to overlook this and that. Typically you start to notice problems and nuisances after you’ve already purchased and moved into the home!

For example, a friend of mine bought a downtown rowhouse that was a great buy! He was aware that the basement to the house could only be accessed from the courtyard outside. What he didn’t consider was the fact that the laundry hookups were also in that basement. Come rain, sleet or snow, my friend had to brave the weather, laundry basket in hand, just to have fresh clothes!

By then it’s too late. This is why it’s important for homebuyers to approach every viewing of a house with an open mind and a mental checklist of things to look for beyond the house itself.

Location Factors

You probably have a general idea of the region, town and neighborhood that you’d like to call home but how well do you really know the area? Have you researched the reputation of the school district? What about the property taxes?

Have you researched the crime rate in the area? I’ve known people who have searched online archives or visited their local library to browse past headlines from local newspapers and familiarize themselves with news from the neighborhood. Maybe the house you’re eyeing up sits on a dangerous roadway notorious for car accidents?

Is there enough to recreationally appease you? Are there parks or museums to take the children to? What about scenic bicycle or walking trails? Obviously, if you’re someone who likes water, are you near a lake, river or ocean?

Is there enough to keep you entertained, whether it’s coffee shops, shopping, dining, art galleries or sports and nightlife options?

Small imperfections with the property, for example, a small yard, may not bother you as much if you love your neighborhood. You can always renovate an actual house to suit your style or personality but you can’t move a house to another neighborhood!

Consider your home’s proximity to work when looking for the right neighborhood. For many people, having a short commute, even a walk or a bike ride, are enough to sell them on the location. Be sure to look into the neighborhood’s public transportation options as well.

Neighborhood charm is a big seller that cannot be understated! Pay close attention to how well the houses in the neighborhood are maintained. Are neighbors taking care of their homes and yards? Do people seem to be comfortable and safe jogging, walking, biking and gardening in the neighborhood? Are there children playing in any of the yards?

Try to talk to people from the neighborhood if the situation presents itself! Most people are more than happy to voluntarily provide information to potential neighbors.

Situational Factors

These are factors that are very easy to skip over while you’re just walking through the home with an agent. These require some astute observation and even some research.

For example, is there reasonable access to the house for emergency services like fire, police, ambulances or emergency rooms? This is especially important if the house is in a rural area.

Can fire trucks or ambulances reach the home if the house sits on a steep hill or a narrow road? How is wintertime snow removal and road maintenance if this is the case?

If you’re someone who values privacy, are the homes on the street close together or is there a respectable distance between the houses? If you’re on a small street, are your windows and the neighbors’ windows directly across from each other and will that bother you or invade your privacy?

Here is something that most people don’t think about until moving day. Can large furniture or appliances be carried up the staircase? That spiral staircase going up to that awesome third floor loft may excite you but you’re in for a let down when you realize it’s impossible to get a couch, big screen television or your newly purchased pool table up the stairs!

If you have children or animals, chances are you don’t want to live near a busy highway, high-trafficked road or a neighborhood street where people drive fast and recklessly. Especially if you have a driveway that requires you to pull out onto such roads!

Drive through the neighborhood at different times of the day or night. Park the car and take a stroll. Do you notice a lot of For Sale or For Rent signs? Perhaps you should ask the realtor why this is? Be sure to obtain the services of a buyer’s agent who is familiar and knowledgeable of the neighborhood and can educate you on market trends.

Just remember that there is more to a house than meets the eye. Sometimes it just involves thinking about or examining things a bit deeper. Don’t allow yourself to be blindly mesmerized by those marble kitchen countertops and the beautiful exposed brick in the living room. Sellers naturally want your focus to be on the “good parts”. It may pay off to be a little suspect and look at things with a bit more scrutiny.

About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and Connecticut Real Estate Advice.

2008-05-04T17:46:00.000-07:00

How Low Can You Go? How To Make A Real Estate Offer That Isn't Insulting.

By John Ash

One of the most tried and true methods of getting the best possible price on a home is to offer the seller less than the asking price.

Yet, many home buyers are hesitant to use this method of negotiating. They feel as if a low offer will insult the seller. Some real estate agents have acknowledged that many home buyers have also expressed a sense of shame or embarrassment by not offering the asking price.

True, you may in fact encounter many sellers who are offended by your low offer, but there are ways to prevent this from happening. It’s just a matter of assuring the seller that the price you are offering is what works best for your purposes and taking the time to explain your reasoning.

Is it not worth the gamble if there is potential to save anywhere from $10,000 or $40,000 on the deal? Think about it. That’s more money to allocate towards any renovations or furniture for the house.

Sellers definitely have an emotional attachment to their house but this doesn’t necessarily mean they will be insulted by a low offer. Many sellers and their realtors recognize that a buyer’s initial offer is nothing more than an opening negotiating ploy where the buyer is feeling out exactly how desperate the seller is to part with the property.

But, to cover your bases, you should accompany any low offer with an explanation as to why you feel the price cut is fair. For instance, if the property is in need of updating, particularly potentially expensive items like a roof, wiring, appliances and the furnace, you could specifically state this to help offset the possibility of insulting the seller.

If you have a friend or family member who is a contractor, take them with you to view the house, and have them work up an estimate of the potential cost of any renovations to include with the offer. If the bathroom doesn’t meet your criteria – how much will it cost to renovate the bathroom to suit your needs? By breaking things down like this, you are showing the seller that your offer isn’t intended as a slap in the face but more or less a means to show them the perspective from your side.

Hopefully, you are reducing the risk that the seller will be so insulted by your low offer that they refuse to counter and cut off negotiations completely. With any luck, particularly if the location isn’t necessarily a seller’s market, the seller might even question whether or not they’ve overpriced the house upon reviewing your offer and comments. Explaining your reasoning will also give the seller the opportunity to correct any misjudgment on your part. For instance, maybe the roof isn’t as old as you thought and they can make you aware of that fact.

Check out the market locally to determine if you have any leverage in making a low initial offer. It’s conceivable that the seller may have the home listed on the higher end of what comparable properties in the area are actually selling for. This gives you negotiating room. Also, if the house has been on the market for some time and has already been reduced several times, the owner may have already gone as low as they can possibly go and may not be so inclined to hear out your low offer. Some research on the part of you and your real estate agent is a means to ensure that you aren’t in any way insulting the seller.

It’s also not a bad strategy to offer the seller something in return to get them to look past the low offer or come back to you with a reasonable counter offer. It may help your case if you show the seller that you have mortgage pre-approval, can close within 30 days, are willing to pay a portion of the closing costs or can provide them with a larger earnest money deposit.

The main purpose of a low end offer is to alter seller expectations. There is an art to the whole process. Some experts state that you should never offer less than 20% - 25% of the asking price but many successful real estate investors will argue this. Their belief is that this method of negotiating for real estate is worthwhile if there is one seller who accepts a low offer after a dozen or more rejections from other sellers. The bottom line is you can never predict which owners may be open to a low offer so why not explore it? Some sellers are dealing with hardships like divorce or death. Other sellers may be in a hurry to sell in order to relocate.

Plus, let’s not forget how counter offers play into the process. Let’s say that the seller has their house listed on the market at $300,000 and your initial offer is $250,000. It’s fair to speculate that the seller will reject your low offer but they may also counter it at $280,000. So, by offering less initially, you’ve still managed to knock off $20,000 from their original asking price. The sellers may even claim this as a victory themselves because they’ve managed to get you to agree to $30,000 more than your initial offer. Everyone thinks they’ve won!

About the Author: John is a contributor to a Connecticut Real Estate Agents Site, which has helped hundreds of people gather information about real estate and Connecticut Real Estate Advice.