Avoiding Foreclosure

by | Dec 13, 2010 | Foreclosure & Short Sales, Real Estate 101

Avoiding Foreclosures

Are you behind in your mortgage payments, or concerned that you soon might be?

Have you received a preforeclosure letter from your lender?

First of all, don’t be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.

The economic downturn has led to many homeowners being “under water” in their loans, meaning they owe more than their home is worth, making it impossible to refinance.

If you’ve become one of those millions, don’t panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.

To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.

This would also be a good time to consult with a tax advisor and a RE/MAX Executive agent. Thousands of RE/MAX agents are specifically trained to work with distressed properties, and will be able to help you explore foreclosure options.

Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they’ll consider viable alternatives. Some of these alternatives may keep you in your home.

Loan Modification

While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.

Your lender may be willing to modify the terms of the loan, whether it’s reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.

Short Sales

This is the fastest-growing foreclosure alternative. Many lenders will allow a Short Sale, when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don’t have to carry the properties on their books as liabilities.

And it’s attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.

Short Sales are paperwork-intensive, and there are many, many details involved. If you’re considering this option, it’s critical to work with a trained real estate agent who knows all the steps required to successfully complete a Short Sale.

RE/MAX leads the real estate industry in agents who’ve completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they’ll be able to advise and counsel you every step of the way.

Find a qualified RE/MAX Executive agent in your area. Search for Certified Distressed Property Expert, Short Sales & Foreclosure Resource or Five Star Professional.

The U.S. Treasury has announced guidelines for streamlining and simplyfing the Short Sale Process.

Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.

Foreclosure (Cash for Keys)

One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.

To prevent this, some lenders offer a program called “Cash for Keys.” The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.

Tips From HUD

The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:

  1. Don’t ignore the problem.
  2. Contact your lender as soon as you realize you have a problem.
  3. Open and respond to all mail from your lender.
  4. Know your mortgage rights.
  5. Understand foreclosure prevention options.
  6. Contact a HUD-approved housing counselor.
  7. Prioritize your spending.
  8. Use your assets.
  9. Avoid foreclosure prevention companies.
  10. Don’t lose your house to foreclosure recovery scams.


Buying A Home

by | Dec 13, 2010 | Buying, Real Estate 101

Buying a Home

Contact a REALTOR®

A RE/MAX Executive Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.

Get Preapproved for a Loan

Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX Executive agent can also help you. Contact several lenders and determine which one will give you the best deal.

Determine Your Price Range and Area(s) in Which You’re Interested

By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX Executive agent can help.

Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary

How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?

Begin Testing the Market

Right here on charlottehomefinder.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what’s available in your price range and explore neighborhoods.

With Your Agent, Begin Seriously Looking at Homes

Your agent can add to the list of homes you’ve already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?

Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you’re interested. See them at different times of the day.

Make an Offer

When you’ve identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.

At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.

Once Your Offer Is Accepted:

  • You’ll be asked to submit an earnest money deposit that usually isn’t refundable.
  • Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
  • Have the property professionally inspected.
  • If necessary, request repairs.
  • Obtain homeowner’s insurance.
  • Contact utilities (phone, water, power, etc.).
  • A few days before closing, stage a walk-through.
  • Obtain a cashier’s check for the down payment and closing costs.

At Closing:

  • Make sure the terms and conditions of the loan statement are correct.
  • Carefully read everything before you sign.

ENJOY YOUR NEW HOME!

Why You Should Use a REALTOR® in Your Home Search

Buying a home is probably the largest investment you’ll make in your lifetime. Having an experienced, knowledgeable RE/MAX Executive professional representing you in this transaction just makes good sense.

Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. RE/MAX Executive agents fully understand the real estate process – and just as important, they understand your local market.

Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they’ll probably know it. If you’re unsure about school districts, they’ll be able to direct you to answers. If you’re unsure of a builder’s reputation, they’ll know how you can confirm it.

Your RE/MAX Executive Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you.

Why RE/MAX?

by | Oct 12, 2010 | Real Estate 101

Why Choose RE/MAX?

When you choose a RE/MAX Sales Associate to sell your home or help you in the home buying process, you”ll experience an exemplary level of service.

RE/MAX agents are The Hometown Experts With a World of Experience®. They are the most knowledgeable agents, with the experience and community connections to assist you in the homebuying process. Across the globe, they’re the people next door, or just down the block.

RE/MAX agents have the experience to get the job done in today’s market. That’s why customers going through the homebuying and selling process know RE/MAX Associates as The Real Estate Leaders® and why no one in the world sells more real estate than RE/MAX.

Customer Satisfaction

The proof of quality service is in repeat customers and in customers who refer RE/MAX Associates to friends. RE/MAX Sales Associates typically generate a large percentage of their business from past customers and referrals.

Education

At RE/MAX, advanced education is a priority. RE/MAX Associates dominate the Accredited Buyer Representative (ABR), Certified Distressed Property Expert (CDPE), Certified Residential Specialist (CRS) and Seniors Real Estate Specialist (SRES) ranks.

Home of the Best Agents®

RE/MAX agents average more sales than other real estate agents. They are better qualified to set the right price for the homes they list, better equipped to market those homes, and likely to find clients engaged in the homebuying process in a shorter period of time. That experience and education also means they are better qualified to find the right home for any buyer. The homebuying process can be a daunting task. But with the expertise of a RE/MAX agent, buyers can rest easy.

Competitive Advantage

The real estate network that has the most competitive advantages to offer homebuyers and sellers will be an industry leader. RE/MAX is that leader. Thanks to its global network and stellar reputation, it’s no wonder people turn to RE/MAX when they embark on the homebuying or selling process.

When you look for the highest quality real estate service, look to a RE/MAX Associate. RE/MAX Associates are The Real Estate Leaders®. You can depend on RE/MAX Associates to make the sale or purchase of a home as effortless and seamless as possible.

Advertising

Extensive advertising by individual RE/MAX agents, combined with national television advertising and broad Internet exposure, inspires buyers and sellers to seek out RE/MAX Associates. When you list your home with a RE/MAX agent, it will receive wide exposure.

Miracle Home® Program

Why list your home with a RE/MAX Associate? Your home may be designated as a Miracle Home®. If it is, your RE/MAX agent will make a contribution to the local hospital affiliated with Children’s Miracle Network once the transaction is complete. The funds raised in your community remain in the area to benefit local families.

Sold for the Cure™

Sold for the Cure gives your RE/MAX agent the opportunity to designate your home as a Sold for the Cure property to benefit Susan G. Komen for the Cure. Upon completion of the transaction, your RE/MAX agent will make a donation to the local Komen Affiliate to help support the breast cancer movement. Programs like these make the homebuying process an even sweeter deal for buyers who are indirectly contributing to the Komen mission of finding a cure for breast cancer.

Premier Market Presence®

The real estate network with the greatest market share has the most to offer buyers and sellers. The sum total of all RE/MAX momentum, growth and Associate production over more than 35 years is reflected in current RE/MAX market strength. RE/MAX has achieved 30-percent-and-higher market share in area after area across North America and is growing in market share around the world. A measure of business leadership, Premier Market Presence (PMP) results from community-minded, high-producing Associates giving superior customer service under a respected brand.

The RE/MAX Balloon Logo

The red, white and blue RE/MAX Balloon, with its “Above the Crowd®” slogan, is one of the most recognizable business logos in the world. RE/MAX boasts a global fleet of more than 100 Hot Air Balloons, which make more than 6,000 appearances around the world each year.

The Sign That Brings You Home®

The red-over-white-over-blue RE/MAX yard sign and your RE/MAX agent lead you to properties in areas in which you’ll want to live and work. If you want to sell your property, the RE/MAX yard sign attracts those in the homebuying process. Nobody sells more real estate than RE/MAX.

Global Expansion

With offices in more than 75 countries worldwide, and nearly 100,000 agents, the power of the RE/MAX name boosts business and attracts homebuyers.

More Than 35 Years “Above the Crowd®”

RE/MAX – now an established industry leader – celebrated its 35th anniversary in 2008 and looks ahead to even greater real estate achievements in the years to come. Whether you’re in the homebuying process or looking to sell, choose a RE/MAX Associate. When you choose a RE/MAX Associate, you’ll have a real estate agent for life.

Working With Your Real Estate Agent

by | Oct 12, 2010 | Real Estate 101, Working With an Agent

Working With Your Real Estate Agent

Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional’s background, personality and responsiveness.

Here are some tips to help you choose and work with your real estate agent.

How to choose a real estate agent

1. Consumers who do their homework can save thousands of dollars and experience a smooth transition. So don’t waste time and resources – decide what’s most important to you, and then find a professional who specializes in that area. A RE/MAX agent can help you no matter what your needs are.

2. Ask friends and family members for referrals. Someone you know and trust may have a RE/MAX agent in mind to help you meet your real estate goals.

3. If you’ve already determined where you’d like to live, drive through neighborhoods in the area and survey them for REALTOR® yard signs. Seeing the same name pop up on signs time after time may indicate that the agent is a specialist in the area. If you’re thinking about selling, monitor the signs in your own neighborhood.

4. Moving far away? Right here on remax.com, you can connect with a RE/MAX agent around the world who can offer great expertise and service. Consider services they offer, additional certifications, any specialties, and languages they speak. You’ll find the right professional to meet your real estate needs no matter where your home search takes you.

5. Pay attention to credentials. This will help you determine areas of expertise. You may be interested in these designations: ABR (Accredited Buyer Representative), CDPE (Certified Distressed Property Expert), LHMS (Certified Luxury Home Marketing Specialist), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs.

What to ask in the interview

1. If selling, ask the real estate agent how he or she would establish a listing price. Request a Comparative Market Analysis, also called a CMA, which shows the market value of similar homes in the area that are for sale or have recently sold.

2. Ask the agent how he or she would market your property. Understand that some agents may prefer to first tour your home and then put together a customized marketing plan to present at a later meeting. But if he or she can’t suggest a strategy when asked, you might consider interviewing other candidates.

3. Ask the agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations.

4. Ask how long the agent has been licensed and how many buyers and sellers he or she has helped.

5. Ask about designations. Interest in continuing education is a strong indicator of motivation and professionalism.

6. Pay attention to the agent’s listening skills. Does he or she cut you off before you’ve finished a sentence? There’s nothing worse than looking at houses you have no interest in because the real estate agent has not listened carefully to your needs, or having your home on the market too long because it’s priced incorrectly and the wrong buyers are being targeted.

7. Ask the agent what his or her fee structure is. Does he or she require a percentage of the sales price or work for a flat fee? Will the agent be paid another way?

8. If you are unsatisfied with a prospect’s plans or personality, thank him or her for taking the time to meet with you and repeat the process with another real estate agent. It can be time-consuming, but it’s worthwhile.

Once you’ve found the right real estate agent to represent you, hold up your end of the relationship. There are simple things you can do to help your real estate agent get you the best deal.

How to work with your real estate agent

1. If you are selling, create an information sheet that lists your home’s features and best qualities, especially those that others might overlook. Your agent may be able to use the information when marketing your home.

2. When selling, talk to the real estate agent about cosmetic improvements. Your home may need fresh paint or new carpet.

3. If selling, keep it clean. Eliminate cobwebs and dust. Keep the bathroom counters and mirrors wiped down. Vacuum and sweep daily.

4. If buying, be clear about what you want. Make a list of your priorities numbered 1 through 10. You can always revise the list, but give your agent something concrete so that he or she can research available listings more efficiently.

Food for thought

1. Hiring a REALTOR® will give you a strong advantage. Although many practitioners work part-time, RE/MAX Associates are full-time professionals who provide their complete attention and expertise.

2. Your real estate agent is an authority you hire to help you make the right decisions, but you have the final word.

3. Your residence is likely to be the biggest single investment you’ll ever make. Buy and sell wisely.

4. Office environment can say a lot about a businessperson. Is it clean and organized? Do the office hours make it easily accessible? Are staff members pleasant and helpful?

5. Remember that home values fluctuate with the economy.

Selling your Home

by | Oct 12, 2010 | Real Estate 101, Selling

Steps to Selling Your Home

Hire a REALTOR®

Studies show that home sellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home sold at the best price in the right timeframe.

Equally as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home.

To locate a RE/MAX Executive Sales Associate, visit our agents page on our sister site, charlotteproperty.com.

Before Your Home Is Listed

It’s important to have your home in good showing condition before buyers start going through it. Here are some steps to take:

  • Touch up interior and exterior paint as needed.
  • Install new carpeting and flooring if it appears worn or dated.
  • Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
  • Trim bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In autumn, rake the leaves; in winter, keep the snow shoveled.
  • Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets.
  • Minimize personal items such as family photos. You want buyers to see themselves living in the home.
  • Consider putting excess furniture and belongings in storage. Now’s the time to clean out the garage and basement and sell, give away or throw away items you don’t need anymore.
  • Consider having a pre-listing inspection performed. Buyers will be hiring professional inspectors; here’s your chance to address problems in advance.
  • Consider engaging a professional stager to give your home the right emotional appeal.
During the Listing Period
  • When potential buyers visit your home, either be absent or make yourselves as inconspicuous as possible.
  • Have fresh flowers in the entryway. It makes for a friendly introduction into your home.
  • If offers are made that don’t match your hoped-for price, don’t reject them out of hand. Pay attention to your agent’s advice.
  • Consider dropping the price if several months go by with few or no offers. But if you and your agent have priced your home properly from the start, this shouldn’t be necessary.
  • Don’t get discouraged. In buyer’s markets, homes take longer to sell than during boom times. Your home will eventually sell; it’s a matter of your RE/MAX Executive agent finding the right buyer for you.
Help Your Agent

You have the best chance of selling your home if you work closely with your RE/MAX Executive agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled.

If prospective buyers want to discuss your property or negotiate price or other terms, defer to your RE/MAX Executive agent. He or she is the expert and can best handle all these details without emotion.