Home Inspections - Are they really necessary?

I've had many buyers ask this over the years, whether or not an inspection of the property is really necessary when buying a home.  A lot of cities now require some sort of inspection be done prior to or at the time of listing, whether it be just a well/septic inspection or a full structural inspection.  While this information is very handy when looking at properties, it should not be the only inspection you rely on to decide if that particular home is the right one for you.  These city inspections do not go into the full depth that a buyer's home inspection will dig.

I think I'll have my handy father do the inspection.  Or maybe my uncle who's a contractor?  While these people may have a good base of knowledge on a home, they have not gone through the training required to be an inspector.  It's very possible they may not know what to watch for on a foundation, in a particular neighborhood or style of house, to adequately inform you on whether or not it is collapsing.   Your father or uncle likely specialize in certain areas and can be a great sounding board for rehab/remodeling ideas in the future, but they will not give you the scope of information that a quality licensed inspector can.

It is always best to perform a full home inspection, prior to committing to the purchase, so that you can truly get a feel for the home's strengths and weaknesses.  It's extremely important to be present during said inspection as well.  This will give you a chance to have someone walk you through how the mechanicals work, if there's moisture seeping in, where to find certain things (like your gas/electric/water meter!) and how each part of the home functions.  If after the inspection, you find that there is much more work than the naked eye could detect, you may be able cancel your purchase agreement. However, your purchase agreement must be contingent on the home inspection in order to have the right to cancel and retain your earnest money.

If you have any questions on home inspections, need the name of a quality inspector or any other real estate topics, please give me a call or send me an email and I will be happy to help.

HAFA - Lenders and Servicers are now sending solicitation letters

Hello Folks-

I just heard in one of my latest Partner First training sessions that lenders and servicers are now sending out solicitation letters about short sales or a deed in lieu to gauge interest with the homeowner on how they would like to proceed with their mortgage/home after missing one or more payments.

The most recent list of lenders/servicers that are officially participating in the HAFA/HAMP program is as follows:

Bank of America
Citibank
GMAC
Wachovia
Wells Fargo

If you pay your mortgage to one of these companies and are behind on your mortgage payments, do not be surprised to find a letter in your mailbox asking if you would like to sell your home as a short sale. The letter will also ask if you're interested in a deed in lieu.

If you find yourself with one of these letters and want to discuss which option is best for you, please give me a call or send an email.

Tenants - Where is the rent?

So you've got rental property.  You have a lease in place (verbal or written) with tenants to occupy the home.  Soon you find yourself wondering each month if the rent will come by the first. Some months it comes on time, others days or even weeks later. 
What do you do if it doesn't come for 30 days?  What exactly do you do if it's not coming at all?

If this is familiar territory for you, I sincerely advise you to meet with a real estate attorney.  While this may pull anywhere from $150-500 out of your pocket, the return on investment will be the information obtained from this meeting.  You will gain knowledge of how to approach the situation surrounding eviction, how to proceed in accordance with the lease you have in place with your tenant.  This can also be a great time to discuss all sorts of topics revolving around your rental property, including the leases you are currently using or have used in the past. 
Researching topics on the internet will only get you so far.  Once it comes to enforcing the contracts you have in place, you'll more than likely find yourself feeling as though the meeting with an attorney can be priceless!  They will not be able to do the 'work' for you, but at the very least, they will point you in the right direction.
If you need a real estate attorney referral, please let me know and I'll send you a few good names.
If you have questions on this topic of real estate or the market your home is in, do not hesitate to drop me a line.

Free Government Program Eligibility Surveys

Liz Novotny, CDPE


This resource now contains eligibility surveys for government programs offering help to distressed homeowners, including the Home Affordable Foreclosure Alternatives Program, or HAFA, which increases the likelihood of a short sale or deed-in-lieu of foreclosure.


These surveys will let homeowners quickly discover new options made available by the government.  When faced with the possibility of foreclosure, I’ve seen too many homeowners make mistakes because they hadn’t been advised by a qualified professional. These people didn’t know the options available, or even how to find any information on their situation. My website helps to solve this problem.


Liz Novotny, CDPE acts as a hub for information on the facts and issues for struggling homeowners, putting all the necessary information in one, easy-to-use location. With the addition of these new eligibility surveys, the site lets homeowners make educated decisions about their future.


Seven out of 10 homes that have gone into foreclosure did so without even being listed on the market, said Alex Charfen, co-founder and CEO of the Distressed Property Institute.  Agents like myself, with the CDPE designation are helping distressed homeowners understand that there may be options available to avoid foreclosure.


The CDPE designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing financial hardship in today’s market.


For more information about the CDPE Designation, visit www.cdpe.com.

Sticking it to the bank or the community?

Recently I sent out a mailing to homeowners whose homes had recently sold at a sheriff's sale.  The intent of the mailing was to gauge interest of these homeowners in trying to save their credit by pursuing a short sale offer to negotiate with their lender before the end of the redemption period.

I received a return call from one homeowner who stated that he was 'not interested in helping out the bank' as they did nothing to help him out when he needed it.  He was also not interested in inconveniencing his family for showings over the next few months trying to sell if he didn't have to.  While I can certainly empathize with folks that have initiated conversations with their lender, trying to get help with their mortgage situation before it comes to default, I have a hard time understanding why a person would want to purposefully jeopardize their credit situation just to 'stick it to the bank'.

Foreclosures certainly do affect a bank's bottom line and will not improve the business' standing.  However, foreclosures also hurt the surrounding community the home resides in and harms them more in the long run than the foreclosure hurts the bank.  A bank has ways of dealing with the repossessions in the form of tax write offs, depreciation of the asset, etc. With foreclosures at an all time high, neighborhoods across the country are losing their stability due to an increasing number of vacant and vandalized homes.  The community pays the price with the loss of neighbors, increased vandalism and homes that are left in disrepair.  In the end, it's our neighbors and communities that suffer from a foreclosure, not the bank.

When you're trying to decide how to move forward with your mortgage stress do keep in mind that there really isn't a way to 'stick it to the bank' without hurting your community at the same time. 

What in the world is HAFA?

HAFA

Now that the tax credit has expired, are the buyers gone?

Not at all folks, not at all.


It is very true that the tax credit pushed buyers that were on the fence about purchasing a home, giving them an extra $ incentive to 'take the plunge', so to speak. These buyers knew there was $8,000 available to them if they could find ‘the one’ in time to execute a contract by the 4/30/2010 deadline. Some of those buyers worked frantically at finding their best choice during the month of April. However, the past few weeks of real estate has taught me that money isn't everything! Not only in real estate, but many other aspects of life as well.


Buyers today want to get the best house for their money. This means looking at more homes, taking longer to decide the pros & cons of their favorite(s) and/or realizing that a home purchase is not something to settle on. This has become the mentality we real estate agents are finding in most buyers today. They may have said to their agent “I’ll jump at writing an offer, so long as it’s the perfect house in the perfect location” before the tax credit expired. However, if they didn’t find that perfect house, in its perfect location then they will continue to take their time but in the end still make the purchase.


Sellers have become weary that the buyer pool has been eliminated by the expiration of the tax credit. Do not fret, I say to my sellers and all others with homes on the market currently. There are still plenty of buyers out looking at homes, who may have ‘missed the boat’ on the tax credit, yet are serious about a home purchase. There will be more buyers added to the pool each month due to their recent employment changes as well. These buyers may have just gotten a promotion, a raise or are hitting their two year history of employment over the summer. Any of those circumstances will bring new buyers each week and in turn hundreds of buyers added to the pool each month.


When deciding whether or not to pull your home off the market, because the buyer pool may have potentially shrunk, one must be sure to focus on your long term goals in addition to the short term ones. I've heard sellers say that they'll pull their home off the market and try again in a few years.  Except, no one can guarantee that the market will indeed turn two years from now.  While we enter the next ‘wave’ of foreclosures; i.e. folks that were laid off, injured or had a decrease in pay/hours, it will be tough to truly estimate what year the market will turn again. Many numbers have been thrown around by economists over the last few months, most landing in the 8-10 year range, on when home prices will show consistent value increases year over year.  The difference between two years and 8-10 is huge, when it comes to the necessity of selling your home.  Deciding whether or not now is the time to sell will significantly depend on the latest estimates of when the market truly will turn around.  


As always, keep me in mind if you would like to sit down and discuss your situation in an effort to help determine whether or not you should continue pursuing a buyer. I am happy to help counsel on your options, no matter what the outcome of the discussion is.