TEAM Metrowest
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Posted by TEAM Metrowest on 4/1/2020

If you want to buy your dream house, you'll likely need to submit a competitive offer from the get-go. That way, you can boost the likelihood of receiving a "Yes" from a home seller and proceed along the homebuying journey.

Putting together a competitive homebuying proposal can be simple. Now, let's take a look at three tips to help you prepare a competitive offer to acquire your ideal residence.

1. Look at Your Homebuying Budget

Entering the real estate market with a budget in hand generally is beneficial. This budget will enable you to narrow your house search to residences that fall within a certain price range. Plus, your budget can help you define exactly how much you can offer to acquire a residence.

When it comes to mapping out a homebuying budget, you should meet with several lenders. These financial experts can help you get pre-approved for a mortgage. And with a mortgage in hand, you'll know exactly how much you can spend on a house.

2. Review Housing Market Data

Housing market data can make or break a homebuying proposal. If you assess real estate market data closely, you can uncover a variety of patterns and trends. Then, you can use this information to craft a competitive offer that accounts for the present real estate market's conditions.

Of course, it helps to evaluate the age and condition of a house as well. Learning about all aspects of a house will help you determine whether to submit an offer at, above or below a seller's initial asking price for his or her residence.

The more information that you obtain about a residence and the current housing market's conditions, the better off you will be. Because if you take a data-driven approach to buying a residence, you can define a competitive offer for any home, in any housing market and at any time.

3. Consult with a Real Estate Agent

A real estate agent is a difference-maker, particularly for a homebuyer who is uncertain about what differentiates a competitive home offer from a "lowball" proposal. In fact, a real estate agent will go above and beyond the call of duty to ensure that you can acquire a great house at the lowest-possible price.

Typically, a real estate agent will provide you with a wealth of housing market insights. He or she also is happy to teach you about the real estate market and respond to any of your homebuying concerns or questions.

A real estate agent can offer recommendations about how much you should offer to pay for a house too. He or she will provide honest, unbiased homebuying suggestions to help guide you in the right direction throughout the homebuying cycle.

If you want to purchase your dream house as quickly as possible, there is no reason to delay any further. Take advantage of the aforementioned tips, and you can prepare a competitive offer to purchase your dream residence.





Posted by TEAM Metrowest on 3/4/2020

Buying a home is a lengthy process that requires months or even years of planning. The end result, however, is to have a home you can truly call your own and to own equity that you can then use later down the road.

Figuring out the right time to buy a home can be difficult for prospective homeowners. You’ll need to have a firm grasp on your finances and personal goals for what you want your life to look like for the next 5 or more years.

Buying a home in more than just a financial commitment. It also means you take on all of the responsibilities of owning that home. Maintenance, both inside and out, can take up a significant amount of your time.

Furthermore, owning a home ties you down to one area. You’ll need to determine if you’re ready and able to settle in one area for the next 5-7 years. This has implications for careers and for family life. Will your job bring you elsewhere? If you change jobs, are there ample opportunities where you live? These are just a couple of the questions you’ll need to ask yourself before deciding whether you’re ready to buy a home.

To simplify the process, I’ve created a checklist for some of the things you’ll need before you’re ready to buy a home. While this list does cover the basics, there may be other factors unique to your circumstances that you’ll have to take into consideration.

So, if you’re thinking about buying a home sometime in the near future, read on for the checklist. And, keep in mind that these are not necessarily mandatory before buying a home. But they will give you the best chance of making a solid investment and securing financial stability.

The home buyer’s preparedness checklist

  • Raise your credit score to 750 or more. A score in the “excellent” range will help you get the lowest possible interest rate on your mortgage. It’s possible to get approved for a mortgage with a score that is much lower, but a high score is ideal and can help you avoid PMI and a high interest rate.

  • Have an emergency fund saved. You don’t want to buy a house and then suddenly find yourself needing money for an emergency. Save a month’s worth of expenses before your down payment.

  • Have an active budget plan for saving up your down payment. Creating a dedicated savings account that you automatically have a portion of your pay deposited into is a good way to ensure that you meet your savings goals.

  • Bolster the case for your financial stability. Lenders will want to see that your income is predictable and regular. Keep records of your income, tax returns, and anything else that can help show that you’re making more than enough money to safely lend to.

  • Have open conversations with your family. If you’ll be buying a home with a spouse and/or children, discuss what you’re looking for in a home. This can include location, size, etc. It’s a good idea for everyone to be on the same page before you ever start shopping for a home.

  • Get preapproved. Getting preapproved for a home loan will make you a better prospective buyer in the eyes of sellers.

  • Run the numbers again. Aside from your mortgage payments, you’ll also have to pay utilities, trash removal, property taxes, and any other expenses related to the home. Make sure you can comfortably afford these while still contributing to savings.




Tags: Buying a home   checklist  
Categories: Buying a Home   checklist  


Posted by TEAM Metrowest on 2/26/2020

Have you heard the term “earnest money” but really aren’t sure what it means? Once you have found the perfect home and are all set to make an offer, there’s one more step that you need to take. That’s to make a deposit on the home you want to buy. This is known as an “earnest money deposit.”  


The Purpose Of The Deposit


The deposit shows the seller that you’re serious about buying the home. It’s a measure that allows the seller to have some faith in you as a buyer that you’re truly moving forward with your decision; you’re ready as a buyer to make the financial commitment. This deposit allows the deal to begin on a solid basis without much question. 


Is The Deposit Required Legally To Buy A Home?


From a seller’s perspective, a deposit keeps a buyer from changing their mind. If there is a significant amount of money involved, the seller sees the deposit as a way to keep the buyer locked in. This makes it easier for sellers to accept an offer. 


How Much Is Expected For An Earnest Money Deposit?


These deposits don’t quite have a standard amount. The general rule is that they range from 1% of the home price up to 5%. The more expensive of a home that’s being purchased, the larger the earnest money deposit should be. In some cases, the seller may even ask for a certain amount of a deposit to ensure that buyers are serious. How much money you pay at once is often negotiable. You may be able to pay part of the money at one time and the other part at a later date.


New Construction Can Require Large Deposits


New construction homes can require large earnest money deposits- up to half of the purchase price of the home. This is because the construction costs need to be paid upfront and the bank wants proof that the units being constructed with loan money are being sold to buyers who can pay for the home. 


New construction homes are often customized as well. It would be detrimental to a developer to make special changes to a home only for a buyer to walk away. 


Getting The Deposit Refunded


As with everything in real estate, you’ll have a contract. If you don’t follow the terms of the contract, you risk losing your earnest money deposit. Two main reasons for buyers to walk away are a flopped home inspection or financing that falls through. Read your contracts carefully. Sellers sometimes state that deposits are nonrefundable after a certain number of days. 


You need to be sure that you are covered as a buyer in the purchase and sales agreement. If you back out of a home purchase without good reason like a contingency included in the agreement) you could be out of luck when it comes to getting your deposit back.    






Tags: Buying a home   finances  
Categories: Buying a Home   Money  


Posted by TEAM Metrowest on 2/19/2020

If you’re hunting for a new home, it can be tempting to make an appointment to view as many as possible. However, it can be a better use of your time to narrow down the search beforehand and eliminate houses from your list based on some at-home research. That way you can use those extra hours for fine-tuning your home search and make sure you visit only the houses that will suit your every need.

In this article, we’ll teach you some ways to research a home, neighborhood and town before you take the time to visit.

Things to Research about Your Potential New Neighborhood

So you’ve found a listing that looks nice. Your next step should be to find out as much as possible about the area the home is in to make sure it suits your needs.

A good first step is to head over to Google Maps to find out which amenities are in the area. Schools, banks, grocery stores, restaurants, hospitals, parks… the list goes on. This is also a good time to map out how long it will take you on average to drive to work from this house and to see if it will lead you through any high-traffic areas that might affect your daily schedule.

You can also research other homes in the area to see if the house is selling higher or lower than average. This will give you a question to ask the real estate agent if you choose to reach out for further information.

Town statistics

Another step to take on Google for this home is to look up statistics for things like neighborhood crime, ratings for the school district, and the state of local businesses.

Is the area up-and-coming with healthy businesses and low crime? If so, it could be worth pursuing further.

If you’re planning on having children or already do, the quality of the education could be of importance to you.

Finally, get an idea of the local tax rates so you know how much you’ll owe the government for your property and excise taxes.

Researching the house itself

If you’re comfortable with the town and neighborhood, there’s still some research you can do online before you schedule a showing.

See if you can find out if the house belongs to a homeowner’s association. Look up their rules and fees to see if they’re agreeable to you and your family’s lifestyle and plans for the future.

Look up the sale history for the home. If there are several recent sales, this could be a sign of problems with the home or neighborhood. Similarly, if the price has increased or decreased dramatically more than nearby houses, consider asking the real estate agent why this is.

Finally, see if you can view the number of days the home has been on on the market, commonly abbreviated as “DOM.” This will give you some insight as to how desirable the home and neighborhood are.


Once you have all of the information at your disposal, you’ll be in a position to decide whether or not to schedule an appointment to view the home.





Posted by TEAM Metrowest on 2/12/2020

Photo by Daniel Tuttle on Unsplash

Buying a home, especially for the first time, might feel a little scary—notably if you've learned the home you’re considering for purchase is a zombie property. Even a pro at buying property may flinch when they initially hear this term.

No worries, a zombie property is not as frightening as it sounds. It’s a common term used in the housing industry, originating back to the 2007-08 housing crisis when tens of thousands of these homes were left behind because their owners couldn’t afford to make their mortgage payments.

What is a Zombie Property?

A zombie property creeps up when no one retains accountability for it. It usually occurs when homeowners leave their homes after receiving a foreclosure notice and incorrectly believe they must immediately vacate the property. They often don't realize there is an entire foreclosure process, one that doesn’t happen overnight. In most instances, they believe the lender that sent the notice will take over responsibility for the property, so they move out. In some cases, they do know they can stay but choose not to delay the inevitable and cut loose in search of greener pastures.

Meanwhile, the lender, for whatever reason, doesn’t complete the foreclosure process they initiated and the property stands abandoned. Since the homeowner has already walked away not realizing they still technically own the property, and the lender also doesn’t assume ownership, no one takes responsibility for the home. It essentially sits in a state of limbo—hence it being referred to as a “zombie.” Its ownership is not quite alive (abandoned), but not yet dead (foreclosed upon) either.

Pros of Purchasing a Zombie Property

The primary benefit of purchasing a zombie property is the price. Most of these properties are typically sold below market value, sometimes at rock bottom prices. Because some of them are eyesores, or have the potential to become attractive to squatters, municipalities and towns are eager to get these homes rehabbed and inhabited. This means buyers who are handy with repairs or who have the investment money available to fix up and flip the home for a profit can make out handsomely with this type of sale.

Cons of Purchasing a Zombie Property

While the financial benefits associated with zombie homes are lucrative, there are some potential pitfalls to be careful of when considering a purchase. In most instances, the original owner still retains the title to the home, so this legal detail will need to be addressed. Buyers also have to consider these homes may have deterioration, unsafe conditions or be unsanitary. This is especially a concern for properties that have been abandoned for a long period of time. Additionally, it takes more effort to navigate a zombie property purchase than a traditional foreclosure since no one is actively involved with the property.

Many potential buyers intentionally or inadvertently overlook zombie properties, but if you’re in the market, it’s not an option you should automatically discount. Don't let the zombie moniker fool you.  If you perform your due diligence and find ways to mitigate any drawbacks, you could potentially land yourself a great home, rental investment, or profitable house-flip.




Categories: Properties  




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