Some questions to ask about Boston…..

Posted on April 16, 2013 by keatingj

BostonWhat happened today in Boston was horrific. It’s intent and destruction is beyond comprehension. Who? Why? These are the questions we ask.

As yet we can’t answer these questions. We can speculate, we can throw opinions around, we can even condemn but right now, at this moment, we really know very little.

What we do know is that hundreds of runners participating in the Boston Marathon continued to run to the Mass General Hospital to give blood to the victims.

What we do know is that hundreds of home owners and renters in the Boston area quickly offered beds, rooms and comfort to strangers in need.

What we do know is that first responders rushed to the scene immediately to aid the injured, without any knowledge of another bomb or explosion and at an enormous risk to their own lives.

What we do know is that local restaurants and hotels opened their doors and provided services without expectation of payment.

What we do know is that a nation came together to express concern, offer support, comfort strangers and more importantly be there for the victims, their families and loved ones.

What we do know is that no matter the reason, no matter who is behind this attack, no matter what their intent was, we as a nation, as a world of life loving people immediately came to the aid of those that needed us.

Together as a peace loving populous all over the world, rather than question the who’s or why’s, we answered the attack on Boston with more important questions. What can we do to help? How can we help? Where can we help? 

The who’s and why’s will be answered in time. It’s the What’s, How’s and Where’s that are courageously being answered now. 

Pride can be a terrible thing but having pride in humanity when it answers to the right questions, is glorious. 

 

 

 

 

Posted in Home | Leave a comment

What is an Option Fee?

Posted on November 28, 2012 by keatingj

When buying or selling a residential property in Texas, what is an ‘Option Fee’?

An option fee is paid by the buyer to the seller for the right to terminate a contract to purchase within a certain period of time, often 10 days, without recourse or reason.

In order for the buyer to have that right, then a ‘termination option’ fee, must be paid to the seller.

This is a very different fee to the earnest money amount. Both are negoticated between the buyer and seller, just as the sales price is but the difference between the two represents both time constraints and whether they are refundable to the buyer or not.

An option fee amount is non-refundable, whereas an earnest money amount may be. An option fee amount represents a certain period of time that the buyer has the right to walk away from a transaction without recourse.

During that ‘option period’ a buyer conducts inspections, surveys, appraisals or any additional professional services that need to be carried out in order for the transaction to proceed. The buyer has the right to attempt to renegociate the contract during that option period based on the results of the completed inspections etc.

Should the buyer decide to terminate the purchase contract during the option period, the buyer will recieve back the earnest money but not the option period fee. ‘Time is of the essence’ and the termination date of the option period is essentially set in stone. Should the buyer not perform any necessary inspections etc, or should the buyer not terminate the contract in writing within the specified option period, then they are bound by the terms of the contract and they must perform accordingly.

The seller can continue to show the property and accept backup offers during this option period, however should the buyer move forward past the option period then the seller must move forward too and cannot terminate the purchase contract without cause. For instance, a seller can terminate the contract if a principle to the contract dies but they cannot terminate just because they received a higher or better backup offer.

 

 

Posted in Budgeting (Buyers), Checklist (Buyers), Checklist (Sellers), Guides & Resources, Home | Tagged , , , , | Leave a comment

Why you need to be pre-qualified before beginning your home search.

Posted on September 28, 2012 by keatingj

Whenever I receive a phone call or visit with a buyer for the first time, one of the questions that I always ask is “Have you looked into financing a home yet?”

Sometimes the answer is “Yes, I’m working with such-a-such bank or so-and-so lender and I have a pre-qualification letter.” but more often than not the answer is in any one of the following forms:

“No, Do I need to right now?”

“No but I just want to look at some houses first.”

“No because until I find the right house, I don’t know how much I need to borrow.”

“No because I don’t want to hassle with a lender if I can’t find the house I want.”

“No but when I find my perfect home than maybe you can recommend a lender.”

“No but I have some money saved up and I’m sure I’ll be approved for a mortgage.”

“No because I’m going through the discovery phase of my divorce and I don’t want my soon-to-be-ex finding seeing a mortgage inquiry on my credit report.”

“No but I’ve been paying rent for 3 years so I know how much I can pay every month”

“No but I have excellent credit.”

Well, you get the picture. The problem with all of these answers is that they begin with the word ‘No’.  Let me explain why.

For most people the biggest purchase they will make in their lifetime will be their home. Purchasing a home is a huge commitment and not anything like renting a house. As a Realtor, we work with buyers and sellers every day, as a buyer, this is a process that you make not take on too often.

Beginning your home search by going from house to house without first securing financing can be a futile and exasperating experience. How do you know you are looking in the right price range? You may know that you want a 4 bedroom, 3 bath home with a large back yard and 2 car garage but do you know that there are hundreds of homes in Bryan / College Station and surrounding areas that fit that description? You may think that you can afford a home between $200,000 and $300,000 so although that will narrow down the number of available homes to view, what if you’re wrong? What if you can’t get any more than $200,000 in financing or what if you qualify for more than $300,000? It wouldn’t be the first time that buyers were way of mark on what they thought they could borrow.

So let’s assume that we looked at all the houses in the $200k to $300k price range that fit your criteria. We have spent many evenings and weekends, riding around in the car, going from house to house, using gas, being away from our families, putting owner-occupants out of their home for the time that we will be viewing it but then you come across your dream home. It is perfect. It fits all the criteria that you were looking for down to the perfectly manicured lawn, the stainless steel appliances and the dual vanity in the master bath. Now what?

This is the home for you and you can already imagine yourselves living in it. It’s competitively priced and in great condition, you just know that there will be a lot of interest in it so you are eager to get it under contract and make it your own.  So you have your Realtor write up an offer with a contingency clause that you can only buy if you can get financing at a reasonable interest rate. Great you are a ready and willing buyer but are you able to buy?

Several different things can happen at this point.

The seller may reject your offer because they received another one where the buyer had already been pre-approved for financing.

The seller negotiates the terms of the contract even more aggressively because they don’t want to risk taking their home off the market unless you pay full price since you have no proof that you will be financed.

The contract is negotiated, the sales price is finalized and accepted but when you go to a lender you are denied financing or you are financed for a lot less than the amount you need.

Once the contract is negotiated and settled you find out that you can be financed for a lot more than the amount you need and you decide that you want an even bigger home.

You go to your lender and find out that you can only get FHA financing but some of the terms of the contract require closing costs from you that FHA don’t allow.

Do you see where this is going?

Any number of things can go wrong at this point. All of which can result in either you losing your option period money and / or having to go back to the negotiating table which may result in less favorable terms and /or you could lose the house altogether.

Too often though, you end back on the road looking at homes. All the time that you spent looking, negotiating, worrying and dreaming will be wasted. You may even be discouraged to the point that you just decide to rent or stay in your current home for another year.

In the meantime, the truly perfect home, the one that not only fits all your criteria but also your price range is snapped up by a savvy buyer for great terms and at a great price.

Are you really willing to let your perfect home go because you didn’t securing financing before you began your search? Are you really willing to waste all that time, energy and emotion on a home that you cannot buy?

I don’t think you are.

Take the chance and let me help you become that savvy home buyer. The kind of buyer that says “I got a great home for a great price and for all the terms that I wanted.”

So the next time I ask “Have you looked into financing a home yet?”, and your answer is “No” allow me to introduce you to our lender and / or our credit repair specialist, as between the 3 of us we can get you into the home of your dreams the first time round.

If you are thinking of buying a home, please contact me!

Posted in Budgeting (Buyers), Checklist (Buyers), Guides & Resources, Home, Sales & Management | Tagged , , , | Leave a comment

Why selling your home over the holiday season is a good idea!

Posted on September 28, 2012 by keatingj

Whether you celebrate Christmas, Kwanzaa, Hanukkah or any other holiday, selling your home during the holiday season is not necessarily a bad idea. There can be some great advantages to listing your home during this time of festivities.

The holiday season is a time when homeowners get to showcase their homes. During this time of the year most people meticulously clean their homes, add lights, pleasant smells and generally create a feeling of family. This can evoke a lot of emotions in a buyer, and emotion sells.

Here are some interesting tips and facts when listing your home for sale during this chaotic time of shopping, baking and family gatherings.

Die hard shoppers:

These shoppers are a very serious group of people. They will press on through the holidays in order to find that perfect home. They tend to have an urgent need, are pre-qualified and are ready to buy. Having showings at this time of year reduces the number of “tire-kicker” showings.

Wish list:

Investors often panic when looking at their yearend financials and will wish to close before the tax year is up. This group of buyers tends to be more willing to negotiate in your favor as it draws closer to the end of the year because they may not have enough time left to begin their property search again.

When it’s good to be awake:

Many sellers hold off listing their property until the spring, often because of the misconception that many fruitless showings through the holidays are an inconvenience. This means that your home will have less competition during the winter months, therefore less for a buyer to choose from.

A real visitor from out of town:

January is the biggest transfer month of the year. Many corporations relocate or transfer their employees for the beginning of the year. As a result transferees use the holiday season to look for a new home and they are usually bound by a transfer deadline so they will be looking to make the move as soon as the holidays are over.

Professionals and goodies galore:

Remodeling companies, appliance installers, mortgage lenders and any other professionals that you may need in order to ready your home for sale are generally less busy and can be at less of a premium. Appliances and other remodeling materials can often be bought for less at year end clearances.

Contact us today and let one of Bryan / College Station REALTORS advice you on how best to market your home over the holidays!

 

 

Posted in Checklist (Sellers), Guides & Resources, Home, Home Staging (Sellers), Marketing (Sellers), Sales & Management | Tagged , , , | Leave a comment

Winterizing your home….. Save on those utility bills!!!

Posted on September 28, 2012 by keatingj

It’s that time of year again! Wrapping up in warm clothes to put out the Halloween decorations and beautifully carved pumpkins with thoughts not too far from Thanksgiving feasts and Christmas lights too be strung. And although this is a time for seasonal change and anticipation of festivities to come, it is also a time for preparing your home for the cold and wet of winter.

Many of you may have already felt the first pangs of cold early in the morning when your feet first touch the floor or coming in from outside and you have that momentary shiver and burr.

For a second your thoughts go to turning the heating on, lighting the furnace, dragging out the space heater or just bringing in wood and lighting a fire.

There’s a comforting feeling about the warmth from heating when it’s first turned on after its summer hibernation. You start to think about socks and warmer PJ’s, hot chocolate while watching a great movie and closing curtains too keep out the cold.

But consider for a moment, in your haste to snuggle up and celebrate the coming season, has your mind wandered to the source of all this anticipated heat?

Have you considered that whatever the source, if it’s not adequately maintained and regularly checked your comforts of home may not be comfortable at all?

Is your home ready to not just take the heat but not lose it all through inadequately sealed windows and doors?

Are those gutters, precariously perched along the edge of your roof, clear and securely attached so that an overnight freeze doesn’t cause them to come crashing down?

Did any of those birds that were flying around all summer long, busy making homes of their own, happen to make one in your chimney?

If you don’t know the answers to any of these questions then you might want to take a look at a few suggestions about winterizing your home and protecting yourself against a winter of repairs and problems. You might be surprised at how simple some of these items are and how effective they can be.brrr cold

  • Put weather stripping or door sweeps on exterior doors.
  • Chalk around windows.
  • Use outlet gaskets on electrical outlets that share an exterior wall.

Hint: On an extremely windy day, walk around the interior of your home with a lit incense burner and hold it around doors, windows, electrical outlets, recessed lighting and any other place that air can get in. This will give you an indication of where to seal.

Sealing will also prevent insects from entering. Replace any cracked or broken glass panes.

  • Seal any exposed entry points around pipes.
  • Reverse ceiling fans. For winter, the blades should be turning clockwise.
  • If your chimney hasn’t been cleaned in a while, call a chimney sweep to clean out soot and creosote.
  • Inspect the fireplace damper to ensure proper opening and closing. Keep damper closed when fireplace is not in use.
  • Use a protective cap or screen on the top of the chimney to keep out rodents and birds.
  • Store firewood in a dry place, away from the exterior walls of the house.
  • Test and /or install smoke detectors. Use a small amount of actual smoke and not just the test button.
  • Replace detector batteries.
  • Replace detectors that are older than 10 years.
  • Install or test carbon monoxide detectors.
  • Drain gas from lawnmowers and trimmers.
  • Trim branches of trees that hang too close to electrical wires or the house.
  • Drain garden hoses.
  • Insulate exterior plumbing pipes.
  • Replace worn hot tub covers.
  • Bring all electronic entertainment equipment indoors.
  • Rake all debris and vegetation away from the foundation of the house.
  • Remove all leaves and vegetation from gutters.
  • Check all gutter fasteners are secure.
  • Flush all downspouts with water to clear.
  • Add downspout extensions if drainage is too close to the house.
  • Check flashing to prevent water from entering the home.
  • Replace broken or lose roof shingles or tiles.
  • Have the furnace inspected and the ducts cleaned by a HVAC professional.
  • Change furnace filters monthly.
  • Bleed hot-water radiators by opening values until water comes out, then close them.
  • Check that attic insulation is at a minimum of 12 inches.
  • Locate water main in case of emergency and it needs to be shut off.

Now you can snuggle up and enjoy the winter festivities without having to overpay your utility bills had over the money for costly repairs.

Cold weiner dog

Posted in Checklist (Sellers), Guides & Resources, Home, Home Staging (Sellers), Marketing (Sellers) | Tagged , , | Leave a comment

So you got a foreclosure letter from your lender. Don’t panic!

Posted on September 28, 2012 by keatingj

Ok, you’re a few days or maybe a week or more, late with your mortgage payment and your worrying that you may lose your home. Well STOP because there are things you can do. First you should take a deep breath because if you go on to the second step it will all be alright. Second and most importantly, contact your lender, contact your lender, contact your lender, and just in case you missed it, contact your lender because if you let it go to long it’s may be too late. And third of all, keep reading.

Many people have experienced that feeling of panic that their lender will show up and knock on the door and tell them that they are there to take the house because they missed a payment. Well it’s not that simple.  Although it is difficult and emotionally draining when you realize that you can’t make this month’s mortgage payment on time, it does not mean that you will be homeless by the end of the month. Things just don’t work that fast.Foreclosure Street Connective Realty

There are several steps that the lender (mortgagee) must follow before they can come knocking on your door. The more aware you are of these lender responsibilities the better equipped you will be in trying to retain your home.

First you need to understand the three parts to a home loan.

There’s the Real Estate Lien Note: This is one of the documents that you signed at closing which states the amount of money owned and the terms for repayment.

Then there’s the Deed of Trust: This gives the lender security in the real estate that’s being purchased. Basically this gives the lender a legal ownership in the home. It also outlines the consequences should the terms of the Real Estate Lien Note not be followed.

And lastly there’s the relevant Texas Statutory and Case Law: This comes into play if certain issues regarding the foreclosure of a Texas real estate property is not covered in the Deed of Trust or if an issue conflicts with Texas law.

Word of warning: There is no mandatory Texas Deed of Trust. Each lender has their own version of it so certain issues may or may not be covered in the one securing your home. Therefore it would be in your best interest to have a copy of yours. You should have received one at closing but in case you don’t have it, then you can obtain a copy of it from the county clerk’s office in the county in which the property is located.  You wouldn’t sign any other contract without knowing what’s on it or without your own copy, so why is this any different.

To trigger a foreclosure you must first have violated one of the terms of the Real Estate Lien Note. Since you are late or have missed a payment then it’s probably safe to say that you have violated one of these terms. However some notes will give you anywhere between 3 and 10 days grace on a late payment before setting off the foreclosure wheels. So check you Real Estate Lien Note for that provision.

If you are already beyond the grace period on your payment then the lender can accelerate the remaining balance on the note. This is called the Acceleration Clause. It means that the lender can require that the whole remaining balance becomes due and payable and not just the periodic payment that you are behind on.

Ok so don’t panic yet!

Panic cat Connective Realty

Texas law requires that if the loan is secured by a residence then the lender must give you written notice, sent by certified mail, that you have 20 days to cure the default amount before they can demand the full amount of the loan. What that means is that rather than you being a few days late and the lender comes and demands full payment of the remaining amount owed you are given 20 days to come up with just the amount of the payment you missed. If you can do that then the foreclosure wheels stop. That’s right. They stop right in their place and you can get back on the right track.

If however you can’t come up with the missed payments within the 20 days as given by the lender, then the lender can demand full payment of the total amount owed. They will request that the trustee as designated in the Deed of Trust begin the foreclosure process.

This process has several legal requirements that must take place for a foreclosure to be valid.

The trustee must post a required 21 days notice of foreclosure at or close to the door of the court house in the county in which the property is located. The day the notice is posted is counted as the first day. The same notice that is posted must also be filed with the county clerk’s office in the county in which the property is located and this notice must be sent by certified mail to each debtor as listed on the deed of trust to their last known address.

Although receiving one of these notices in the mail may tempt you to just give up and start packing, this is still not the time to panic. You may be thinking that if you can’t come up with the payments in default how on earth can your lender think that you can come up with the total amount of the loan. Well the truth is, the lender knows that you can’t pay it. They know that if you had the money to pay the total amount then surely you won’t have missed a payment in the first place. But they also know that if they don’t follow the foreclosure steps as required by Texas law then they will forfeit their right to claim. So what the lender is doing is protecting themselves and their interest in the property.

The lender is not as you may be feeling just trying to take your home from you. They don’t want your house. They most likely have more vacant houses in their portfolio than is financially wise. What they want is their money. It costs more money for the lender to foreclose on you then it does for the lender to work with you.

So instead of packing and panicking, sit down and take a long hard look at your finances, another deep breath, and be realistic in what you receive and in what you spend. Then contact your lender. Call them up, keep calling until you get to the right person, someone who can actually make a decision on your account. Times have changed and many lenders are more than willing to work with you to try and keep you in your house.

So be calm, organized and accurate in your facts and call your lender. If you don’t get the answer or the support you need then try again. Once your lender realizes that you are trying to work with them and not just avoiding the issue then they will be more willing to work with you.

 

Posted in Checklist (Sellers), Guides & Resources, Home, Home Staging (Sellers), Marketing (Sellers) | Tagged , , , | Leave a comment

Do you want to buy a fixer-upper? Consider an FHA 203-k loan.

Posted on September 28, 2012 by keatingj

Has your dream of owning a home become just that - a dream? As a RE-BuildUSA 203k Specialist, I can make your dream a reality.

With a small down payment and less than perfect credit, I’ll help you use the power of the FHA 203k Loan to buy a great home in a great neighborhood at a great price - and renovate it to suit your tastes and lifestyle.

Let me help you make your home ownership dreams come true.FHA 203k specialist Connective Realty, LLC

Your 203k Specialist, RE-BuildUSA and Lowe’s are dedicated to helping more Americans become homeowners, and at the same time, preserving and improving our communities. Through the FHA 203k Renovation Loan program we’ll help you finance the purchase of your home and the cost of improvements in one mortgage.

Your 203k Specialist, working together with RE-buildUSA and Lowe’s, can make it much easier for you to buy a great home in a great neighborhood at a great price – and renovate it to meet your needs using the power of the FHA 203k loan program.

To get started, give me a call. We’ll determine your buying power

and I’ll help you find the best house to become your Dream Home.

RE-buildUSA is dedicated to helping more Americans achieve the dream of homeownership, as we preserve and improve our communities. Your RE-buildUSA 203k Specialist will help you finance the purchase of your home and the renovation in one FHA 203k mortgage with as little as 3.5% down – even with less than perfect credit.

Why RE-buildUSA?
Now more than ever, there are large numbers of foreclosed properties that need repair and renovation. There are also many wonderful older homes in well-established neighborhoods offered at great prices to reflect their need for updating and repair. RE-buildUSA and its partners deliver the support, expertise and systems to allow you to more easily use the power of the FHA 203k to bring your home ownership dream to life.

Your REbuildUSA 203k SpecialistTM is trained to provide the expertise and support to help you find a great home at a great price that can be improved through the use of the FHA 203k program and enjoy these benefits:

•·         Save Time & Money - Use one loan to buy and renovate a great home to meet your needs.

•·         Get More Home for Your Money - Take advantage of the excellent prices for homes that need repair and remodeling.

•·         Low Down Payment - Enjoy the benefits of homeownership with as little as 3.5% down.

•·         Easier Qualification - Less strict FHA qualification requirements benefit those with less than perfect credit.

•·         Make the Most of Your Investment - rather than paying a premium for changes made by previous owners, invest in improvements that suit your personal tastes and lifestyle.

•·         Earn Additional Equity - Professional installers do the work, and you can earn “sweat equity” in the process.

•·         Greater Financial Stability - Rather than experiencing a strain on your budget for major repairs later, you can pay for these improvements over time at a more affordable rate.

•·         Live in a More Desirable Location - There are many great homes in wonderful established neighborhoods that offer perfect FHA 203k opportunities.

•·         Invest in Your Future - You can use an FHA 203k loan to purchase a 1 to 4 unit property allowing you to renovate a home that also brings you rental income as an excellent long-term investment.

It’s Easy to Get Started

Your RE-buildUSA 203k Specialist will:

  • Help you determine your buying power and get the process started.
  • Help you locate the best home to be renovated for your needs.
  • using the RE-buildUSA project portal, schedule your home inspection and introduce you to your personal Lowe’s renovation consultant
  • Assist you in packaging your renovation bids and financial documents.
  • Help you finalize the purchase to begin renovation of your new home

Enjoy the support of your Re-buildUSA 203k Specialist at NO additional cost to you!

Contact me today so I can assist you in getting the process started!

KeatingJ@ConnectiveRealty.com

 

 

 

Posted in Budgeting (Buyers), Checklist (Buyers), Guides & Resources, Home, Sales & Management | Tagged , , , | Leave a comment

Why your home may not have sold….

Posted on September 28, 2012 by keatingj

Why your Bryan/College Station home may not have sold.

There are several reasons why a home can sit on the market for many months without so much as a nibble let alone a bite. Many homeowners like to blame the market or the agent listing the home and both of these could be very good reasons but they are not always at fault. Generally other factors are at play and these are the ones that are usually to blame.

Pricing

More often than not the culprit is the asking price. Overpricing a home is dooming its fate. Most buyers will not even consider negotiating if they think that you are asking for too much. Buyers like to feel that they are getting a bargain and it’s difficult to get a bargain on an already overpriced house. Your listing agent should advise that the house be priced within market, they would not be doing themselves or you any favors by pricing the property out of range. All the advertising or marketing in the world will never sell a house that’s listed for more than it’s worth.

Timing

A property is HOT when it is first placed on the market. This is when the details of the listing first appear in the multiple listing service. This must be done within 3 days of the date your agent took the listing.

Buyers’ agents are alerted everyday when there are new listings. If any of these new listings appear to fit with their clients needs than often an automatically generated email is whipped off to the potential buyers.

This is the time when your home generates the most interest. It is important that your home is priced right and ready to show. Buyers almost always ask how long a house has been on the market. If they deem that it’s been on for an unusually long time then they will want to know what’s wrong with it.

Showing

As soon as you decide to list your home then you should begin the process of preparing the home to show. The sooner and the more ready your home is the better the showing will be. It is important to note that once you list your property to sell, your listing agent has 5 days in order to post at least 6 photographs of your property on the multiple listing service.

In order to catch the eye of a potential buyer, great photos are needed. Approximately 90% of buyers start their search for properties look at online so a lot of really good photographs are important.

Your agent may also decide that an open house is needed to attract more buyers and buyers’ agents. There is nothing more off putting then hosting an open house for a house that’s not ready to show. In fact the most common reason that agents do not hold open houses is because the house is not ready to be showcased. So if your expectations are that your agent will host an open house then be aware that you will also need to have the house ready for such an event.

Access

If access to your home is difficult, that is, you have tenants that are uncooperative, or a dog that can only be put out in the evening, or you insist on being there for every showing then your property may languish.

Many times buyers’ agents are in the neighborhood viewing other properties when they come across yours. Often the buyers may want to see your property too. This only gives a window of 10 – 15 minutes for the buyers’ agent to access the house. Being inaccessible to schedule an impromptu viewing or refusing to allow such a viewing on short notice can result in losing a potential buyer.

Remember if you made the decision to use a Realtor to sell your property then take note of their advice. They know the market and they know what it takes to sell, so take advantage of their experience and knowledge and let them guide you in what needs to be done. After all that is what you are paying them for.

 

Posted in Checklist (Sellers), Guides & Resources, Home, Home Staging (Sellers), Marketing (Sellers), Sales & Management | Tagged , , | Leave a comment

Should you buy or rent a home?

Posted on September 28, 2012 by keatingj

 

 

Buying verses renting a home…

 

When it comes to a home, you have two options, you can either buy or rent. Which one is right one person may not be right for another, which is why it’s important to know which is the best option for your individual situation.

Continue reading →

Posted in Budgeting (Buyers), Checklist (Buyers), Guides & Resources, Home, Sales & Management | Tagged , , , | Leave a comment