8 Big Mortgage Mistakes And How To Avoid Them

Among the many services Maggie provides her clients, making sure her buyers have the right financing for their situation is at the top of the list. The process of applying for a mortgage involves not just being aware of the required documentation procedures but also in getting familiar with a whole array of rules, regulations, and terms that may appear complicated to grasp in its totality for prospective buyers. According to the author, when confronting such a situation its all too easy for applicants to commit errors and to this end points out the leading mortgage mistakes that buyers should heed to in advance, prior to purchase. Prominent mistakes include not checking individual FICO scores six months in advance, overlooking state-sponsored first-time homebuyers programs, borrowing in excess of their ability to repay, and paying wasteful junk fees, amongst others. [Liz Pulliam Weston, MSN Money, 2005]

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FR5393016 (WA12-169)

Which Home Improvements Pay Off?

The critical task of home improvements can easily add up for homeowners seeking to enhance the market and resell value of their home. According to Smartmoney.com, the exact value could be affected by factors such as the value of existing homes in the neighborhood, prevailing trends in the housing market, and the time of sale, homeowners are advised to focus on specific areas where improvements will increase the long term value of the home. Prominent focus areas, those that would see the greatest return on investment, included kitchen-remodeling, an increase of functional space within the house, adding extra bathrooms, installing decks, and replacing windows, while areas to avoid include gardens and the addition of a swimming pool. [ Smartmoney.com, 2005]

Questions Every Buyer Needs to Know

When you are buying a home, there are many problems that the seller is forced to disclose, but, these disclosures do not always show the entire picture of the home. According to Daily Herald, there are six questions buyers may want to ask that can offer additional insight about the prospective home before they make a final decision. Some of these questions highlighted are how much did the seller pay for the home, has the seller had any problems with the home in the past, why is the seller selling the house. The article adds that knowing all buyers can about a prospective home, not only helps them decide if it’s the home of their dreams, but what offer to make as well. Buyer’s real estate professional can help them get their key questions answered and give them advice on how to evaluate their findings. [ Daily Herald, November 13, 2005]

What Makes Buyers "Bite"?

Today's buyers will “bite” on a home that appeal to their senses, which includes the home’s curb appeal, the first impression they have as they drive by the house. In this article from Jacksonville.com, the real estate experts reveal that location and the view from a home are two of the most important features that make buyers bite. Another important tip to make buyers bite is to keep surfaces painted in neutral shades. The experts add that one way to impress buyers from the beginning is to create a foyer space upon entry. While every buyer in every price range has different items he or she looks for in a home, there are certain features that continuously please a majority of people. Overall, maximizing all of the home's positive features is the way to go. [Jill Zehler, Jacksonville.com, October 22, 2005]

Six Mistakes Homebuyers Should Avoid

In the quest to purchase a house or condo, many home buyers get caught up in the thrill of acquiring a new home and they make potentially costly mistakes. In this article from Bradenton Herald, the author mentions the top six home buyer mistakes that should be avoided during any time of the year. Shopping for a home before homebuyers shop for a mortgage, rushing to buy a house or a condo without carefully researching the local home market in their price range, forgetting to include the two key contingency clauses, buying a home without their own buyer’s agent, not insisting on a comparative market analysis (CMA) before making a purchase offer are some of the mistakes that buyers should avoid. [Bradenton Herald, Robert J. Bruss, October 23, 2005]

National Association of Realtors Trends Report

The National Association of Realtors (NAR) has revealed trend statistics on the real estate market. The number of U.S. households owned by minorities jumped from 17 percent in 1980 to 26 percent in 2000. The number is expected to increase to a whopping 34 percent by 2020. NAR also reported that 77 percent of American home buyers use an agent or broker, whereas 12 percent buy directly from a builder. It also reports that 66 percent of home buyers were so satisfied with their agent that they would likely use him/her again. [Lynne Schreiber, The Detroit News, September 30, 2005]

New Listing in Violetville

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Baltimore, MD

This meticulously maintained All Brick Townhouse features a New Gas Range, New Hot Water Heater, New Carpet in Family Room and Fresh Paint throughout! Many other updates including New Roof ('03), New Furnace ('02), Main and 2nd Floor Carpet ('01), Vinyl Flooring in Kitchen and Dining Room('01) and Replacement Windows. A Front Porch, Walkout Basement, Fenced Yard and Back Patio complete this immaculate home, located just inside the Baltimore City line, in the neighborhood of Violetville. Commuter friendly with easy access to I-95, I-695 and US Rt.1. Affordably priced at $124,900. BA5411263 (CL37-169)

Additional Photos

Contact Maggie today for more details!

A Cooler Seller's Market

In this article from The Washington Times, the author states that by the last day of August, more than 21,000 homes were still sitting on the market. Today's buyers will find more homes to choose from, so they can slow down a bit and think. Time to think had been a luxury buyers could not afford in this market, particularly in fast-moving communities. But the current sales climate will mean that prices should not jump as dramatically. The author has warned buyers to be sure to get a good assessment of a home's value from their real estate agent before they make an offer, because some sellers might be overpricing their homes on the assumption that prices are still rising as quickly as they were in the spring. [Chris Sicks, The Washington Times, September 23, 2005]

Get finances in order before looking for home

According to the Auburn Journal, an important early step in purchasing a home is to obtain a lender's "pre-qualification" for financing. Buyers will then know how much home they can afford before stepping foot into an open house. Another step to take before buyers talk to the lender about pre-approval is to get copies of their credit report and review them thoroughly. The article recommends homebuyers to get a copy of their credit report a couple months before they start looking at homes. Buyers need to verify thoroughly that the debts are correct and belong to them. Buyers will be amazed to see how many doors are opened for them with a clean credit report. [ Auburn Journal, September 16, 2005]

Didn't this house come with a washer & dryer?

The contract to purchase a home needs to say what stays and what goes. In this article from The Washington Times, attached items in a house are, indeed, personal property. Although they can be removed, they generally go along with the sale of the house to the purchaser. This property is defined as “chattel”, an item of personal property which is movable. As the purchaser fills out the contract, the buyer agent will check off the items seen in the house. The seller should check over this list very carefully, in order to make sure they agree with what the buyer believes he's getting with the house. The biggest thing about chattel is that everyone needs to know what's staying and what's being removed. [M. Anthony Carr, The Washington Times, September 16, 2005]

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Eldersburg, MD

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Contact Maggie today for more details! Additional Photos

How to sell your home during the second-best sales season

Robert Bruss: How to sell your home during the second-best sales season Fall is recognized among real estate professionals as the second-best season of the year to sell homes. Mentioned in this article from Naples Daily News, are various steps that need to be followed by the sellers when selling their home during the second-best sales season. The first step is to be sure that they really want to sell and have a strong motivation for doing so. The second step is to get their home prepared for sale. And the final step is to interview at least three successful real estate agents who sell homes in their vicinity. [Robert J. Bruss, Naples Daily News, September 18, 2005]

Bubble? What Bubble?

It's been a long time! July was a crazy month trying to juggle vacation schedules and work. Today I'd like to talk about the Real Estate Bubble that everyone is worried about. Here in the Mid-Atlantic I feel that we have very little to worry about. I can foresee appreciation of resale homes to level out, some, but in no way will the decrease. After 9/11 the Baltimore- Washington corridor saw an enormous increase in the job market, primarily having to do with homeland security. With unemployment at such a low level and interest rates still at record lows, our market will continue to thrive. Granted, we may not continue to 28% appreciating from month to month, but no bubble will burst here anytime soon. Now if you have real estate in California or New York City...Well that's a different story. And don't just take my word for it. Check out the following articles which support my opinion: Ecommerce Times, WBAL, Consumer Affairs. So feel confident in your purchase of a new home or sale of you current home. And remember if you need assistance, I'm only a phone call or email away! Have a great day!

Happy Independence Day!

Not too much going on in the Real Estate world this weekend. My husband, daughter, son and I are going to a family reunion today and tomorrow will have some friends over for a bar-b-que. I'm looking forward to a relaxing weekend. I wish everyone a safe and happy 4th of July. Until next week...

Audioblog From The Road

Get a C.L.U.E.?

Are you wondering what in the heck I'm talking about? C.L.U.E., an acronym for Comprehensive Loss Underwriting Exchange, is a national database that tracks insurance claims on properties. It's kind of like your personal credit report, except it's all about insurance claims. Remember back in the day when you could just call your insurance agent, give them the address of your new home, they would quote you a rate, you'd mail them a check and you had hazard insurance on your home. Not the case anymore. Most, if not all, insurance companies now pull a C.L.U.E. Report on the home you are buying as well as on the home where you are currently living. They then base your rates on their findings. Some insurers even want to come out to the home and do a visual inspection of the inside and outside. This is why it is so important to apply for insurance immediately after having your offer accepted by the sellers. Don't wait until the last minute to then be surprised when issues arise!

By looking at a homes C.L.U.E. Report, you can see claims on the property for the past five years, which may reveal hidden problems such as mold or water damage that you as buyer would want to know about. Have your Realtor ask the sellers for a copy of their homes report before writing an offer. Also, when selling your home, it's a great idea to offer a copy of your homes C.L.U.E. Report to prospective buyers. Like credit reports, C.L.U.E. Reports can only be obtained by the current owners. It's only a matter of time before the state will have C.L.U.E. Reports as a mandatory part of the seller disclosure documents. Mortgage companies already are starting to order these reports as standard procedure because they don't want to be stuck with an uninsurable property.

Ok, so now you know what a C.L.U.E. Report is, but where do you get one? Go to ChoiceTrust's CLUE Reports page to view a sample CLUE report, to learn how to read reports, and to order your FREE report. This report includes your C.L.U.E. Personal Property loss history, inquiry history, and information on how to dispute the claims in your report. ChoicePoint's subsidiaries, in compliance with the FACT Act, provide homeowners with one FREE report during each 12 month period. Choice Trust also offers a Free Auto Report which includes your C.L.U.E. Auto loss history, inquiry history, and information on how to dispute the claims in your report :)
Real Estate Clue Report

Home Inspections

Happy Monday to you ;-) Today I participated in a home inspection with clients who are purchasing a home in Frederick County. It was a successful inspection with only three minor things that needed attention: a GFCI receptacle needs to be replace and two sink drains are draining slowly. This was a good inspection! It does make me (an my clients!) happy when inspections go this well but reminds me of times when they haven't. I believe that it is VERY important to have the home you are in the process of buying inspected by a professional inspector, certified by ASHI, NACHI or NAHI. With the proper addendum to your offer, most sellers will not hesitate to agree to having their home inspected (typically at the buyer's expense). Depending on the terms of the inspections addendum, you can then have the sellers repair, replace or reimburse you for any major deficiencies that are found. Also, if it turns out that the house that you've fallen in love with is a lemon, your inspections addendum should provide you the ability to be released from the contract and have any monetary deposits you made, returned to you. Environmental inspections are also important, and sometimes required by your lender, when purchasing a home that has a well and septic system. Other environmental inspections you may want to have include testing for high levels of radon, lead and mold. I would be more than happy to help guide you through this process when purchasing your new home! Questions or comments? Please let me know! Hope everyone has a great week.
Real Estate Home Inspection