Posts Tagged ‘banked owned’

Ten Incredibly easy steps for buying that first home.

Posted on: April 20th, 2016 by admin No Comments

realty-1151243__180Really you don’t have to be afraid. Like they say “It isn’t rocket science”. If you answer yes to any of these questions, its time to go out an get your piece of the American Dream.

  1. Are you throwing rent money out the window every month?
  2. Are you turning green with envy every time one of your buddies talks about their palace in the burbs or the city for that matter?
  3. Have you been to at least one seminar on how not to invest your money in the stock market?
  4. Have you looked at your income tax return and said to yourself ” How come I don’t have any more write offs?
  5. And finally, has your spouse threaten to leave you unless you find a way out of that dump you live in?

Okay, I’m known for being a wise guy. But seriously isn’t it time to get out and get your own? It really isn’t that hard to get started.

  1. Go find a real estate agent that you like and trust. Talk to your friends about who they used. There is nothing better than a referral. If you don’t have any friends, look around you and go on the internet and see who has a lot of listings. These agents are probably very active in the market. There are agents who specialize as buyers agents but they are not readily identifiable as the listing agents. Be sure to go to the agents websites and look for endorsements from past clients. That will tell you how good they are, regardless if they are a listing or selling specialist.
  2. Once you pick the agent, go get pre-qualified for a mortgage. What does that mean? It means a possible lender will check your credit, your basic income and give you an idea of what you can borrow. Your real estate agent will give you some recommendations on who to go to. There is no charge for this service. But when you find a house, you will have to go through a formal mortgage application.
  3. Go find houses on line and screen them for what you want. Stick to the main websites;  The Multiple Listing Service, your agent’s website or Zillow. If you don’t know what Zillow is, believe me you will learn quickly.
  4. Go drive by the houses first. Pictures and video are great but you have to scope out the neighborhood.
  5. Pick some and go look at them with your agent.
  6. Like one, well go ahead scaredy – cat make an offer. The worse that will happen is that the seller will say no, but maybe if you are lucky you can negotiate the price and other conditions. You know, like removal of the Lama Haired rug or replacing the 40 year old furnace. But its like the lottery…. You can’t win if you don’t play.
  7. Everybody agrees? Okay, do your stuff; inspections, mortgage app, title search(the agent will help you with this for another recommendation).
  8. Go to settlement, sign papers.
  9. Get the keys
  10. Move in

Now was that so bad? Okay… Like I said I am a wise guy.  But it really isn’t that bad. Give me a call and we shall venture the journey together. It can be a lot of fun and maybe by this time next year Uncle Sam will send you a big fat check. Who knows?

Share Button

Buying a home…or should I stay in the basement?

Posted on: March 23rd, 2016 by admin No Comments

family outside home

 

 

 

 

 

Well I’ve been a member of the National Association of Realtors for over 37 years. I think I have heard almost every way possible way to help new buyers toward their First purchase. This one has to be one of the best and innovative. I’m probably guilty of just being a guy too. Let me know what you think. This is part One.

 

Click here

 

 

Share Button

Top Ten things for Sellers to do to get your house on the Market

Posted on: March 4th, 2016 by admin No Comments

top-10Okay, you want to sell. Dreams of a bigger or smaller house, depending on your circumstances float around in your head. No more snow shoveling, lots of rooms, and a big yard for the kids….. whatever, but you want out of your present abode.  How do I prepare… well here some suggestions.

1. Go find a good real estate agent to help you. Use your network of friends and business contacts to make some recommendations.
2.Get that real estate person in to preview the house first. Maybe 2 or 3 of them. Don’t sign anything with them on the first trip. See if you like them and trust them. Give them the cooks tour. Tell them what you like and what you don’t like. Com on, you really don’t like that useless living room or that Jacuzzi tub that you never use….!
3. Get them to commit to a listing presentation that will include price and marketing. Figure about 2 hours for presenting and answering questions. Hey its probably the largest asset you have, its worth the time to listen. How’d they come up with the price range? What’s the marketing plan? Is it digital? Are they going to use some old school things, like signs, mail outs, open houses etc?
4.Meet and review all documents presented.  There are contracts to sign. Know what you are signing. If you are comfortable and ready to pick go ahead.If you want your lawyer to look at it, fine. Get it to them quick for his or her review. Pick a lawyer who knows real estate law and local customs. There are plenty of them out there.
5. Get the house ready to show. CLEAN IT UP AND UNCLUTTER! Get the drift?
6.Stop smoking inside the house! Get someone in  that you trust to “sniff”. If you have dogs or cats, get an opinion on the odor.
7. Get out of the house when it is being showed. You want the buyers to express their real feelings to their agent.
8. Got an offer. Review with your agent. Make sure there is enough to pay everybody off. Have your agent review your existing mortgage and deed on your house to get a feel if there is anything that might prevent you from selling. There is? Keep that lawyer’s number handy.
9.Make sure your agent monitors the progress of the buyer by keeping in contact with their agent as far as any inspections, conditions, appraisal and mortgage approval. This is where most deals fall apart.
10. Buyers ready to go? Met all the conditions? Keep the house in pristine condition and take care of any problems. They are going to do a “walk through” to make sure you have’nt ripped anything out of the wall or have taken that”favorite rose bush”

Well one more thing…. Go to settlement, get your money and get out of Dodge! Find another place with that great agent and live it up. We’ll talk about buying tips later! Call if you want to talk about it sooner.

Share Button

And the question is?

Posted on: May 16th, 2014 by admin

MP900390083[1]Haven’t played Jeopardy in a while or watched it on TV. But I always thought that the premise was a good one. Give someone the answer and see if they can come up with the right question.  It occurred to me that I am usually walking around with what I think are  all the right answers to all kinds of questions. I guess  I might now recognize that I am somewhat pretentious in my conclusion.  I guess I need your help. How about I give you some answers and you give me what you think are the right questions. Hopefully, I can learn something with you and become a better agent.

You know, years ago when I first got into the Real Estate business, I had a Broker who told me “Sam, you don’t sell real estate, you solve people’s problems”. That’s stuck with me and I think I have done a pretty good job in asking the right questions to solve those problems. But I think its time to get the customer’s take on this and get you to ask some questions. Anyway, lets see where we go with this and work together. I’ll give you the answer. You let me know what the questions should be. I’ll look at your questions and post them later to get some other folks to chime in if they think you are right wron.  Let me give you an example. 3.5% down payment  is the answer. The question might be,” What is an FHA mortgage ? ” Okay, lets give it a try.

1.  Seller Assist is the answer. What is the question? This is the format which I won’t repeat every time. You’ll get the drift.
2. No down payment required
3. 28%/36%
4. Buyer’s Agent
5. Seller’s Agent
6. Multiple Listing Service
7. Escrow
8. Radon Gas
9. Short Sale
10. Transunion, Experian, Equifax
11. Title Insurance
12.Prepaid Items
13. 2 years worth of tax returns
14. A real estate agent
15. Purchase offer

Okay, that’s enough for now. Give it a shot. Either comment below with your questions or email me if you like. The more I think about it there can be several different questions for the answers. In addition here is  a podcast that will explain how one might go about purchasing a multi family home where you can  live in and collect rent to help pay for your mortgage. If you would like to pursue that let me know. It can be challenging , but it can  be the start of a pretty good investment portfolio.

Contact me at 610-737-2310 or email me at salvatoreruta13@gmail.com. Appreciate it.

Share Button

Spring Market brings confidence, I think.

Posted on: April 29th, 2014 by admin

Business HandshakeI’m not one who just takes recent economic news as gospel. But having said that, it does look like we are moving forward with a better housing market. Just take a look at this recent post by Don DeZube of the National Association of Realtors.  Spring Market. You have to admit its pretty positive.  The increases are slight but are running ahead of  last year. The office that I manage is up about 6% over last year. That includes all categories: average sale price, less time on the market, list price of homes, total volume sold and total listing volume.

If there is one problem, it’s that we do not have enough good salable properties on the market. The buyer demand is there and we find ourselves in multiple offer situations. The sellers are happy but the buyers are not. One  cause for the shortage certainly can be attributed in part to  thousands of properties still”underwater”, that is, the owners owe more than the house is worth. Banks are slow in approving possible short sales. Also the Feds have not extended the “debt forgiveness ” provision that allowed sellers to escape the tax consequences of such a sale. There is also some implication  that lenders are holding back millions of stalled foreclosures from the market in the hope that  rising prices will allow the lenders to recoup a larger return of dollars at the “Sheriff Sale”. Who knows…Plus under the new QM rules (Qualified Mortgage), underwriting guidelines are making it  much harder for the average home purchaser to qualify for a mortgage.

Man Scratching HeadLenders are trying to address the above issues by loosing up certain underwriting criteria. Credit scores of 620 and in some cases 550 will get you into a home.  The fact that mortgage applications for all types of  loans are off in some cases 60% from last year might be one reason that lenders are looking for business with less than a truant officer’s mentality. If they don’t lend it, they are not going to make it. Not rocket science.

Here is an explanation to help you better understand the “QM” rules.

One last thing that I have mentioned  several times. If you are in financial trouble, wondering about whether you can stay in your home because you are behind in your mortgage, are considering bankruptcy or in a reverse mortgage and you have any questions, please give me a call. Don’t do anything drastic until you have a chance to talk to a  professional. I can recommend several that can help. Call me at 6107372310. No obligation.

 

Share Button

So what’s the deal with the Stock Market? Gimme the House instead.

Posted on: April 16th, 2014 by admin

Businessman Bouncing Over Stock ChartI don’t have a clue.  Used to be  able to gauge the housing market by what’s going on in the Stock Market.
I gave up on that comparison a long time ago. To me it makes absolutely no sense. How can a barometer of the economy change so fast. I mean really, up 200 points one day, down 225 the next. I saw a pundit on a business show the other day that said traders are now using computer programs that make changes in a nano second. How is that possible? They buy, sell  and set the tone for the market before you or I even have a chance to act before our first cup of coffee. Crazy….  There is a thing called “Penny Stocks”. Companies that are looking for money and issue stocks that are worth literally  less than a penny a share. Okay……  I’ll buy a hundred shares for a dollar? Still sounds like a night at the Casinos to me. Kinda like playing the penny slot machines. Maybe I’ll hit it big and get a 1000% return.

Wall street might be a dead-end for the average family.  But then there is the housing market. The great banking debacle of  2007 seems like a generation ago. Mention to a millennial that their grandparents actually had double-digit interest rates when they bought their first house, they look at you like  you have two heads. But it’s 2014 and there is a zero point 30 year fixed rate at 4.875%.  Pretty good.  The values of homes are rising again and home owners are looking at  increased equity. Buyers are coming out of hibernation but are still a little unsure of how to go about that purchase. One thing that is  a must, is that both buyers and sellers have to be reasonable in negotiating.
Credit is still a concern but there are programs to address the buyer with as little as 580 credit score. How can that be? I have always said that there are only a few ways that banks can make money. The  main way is to lend it. The refinance boom is over for lenders. That means they have to go after purchasers of homes who need mortgages. Now is a great time to be a buyer and negotiate with a lender for a great rate.  For a really concise explanation of the current market and what you might need for a down payment and minimum credit scores  for  potential buyers, listen to this podcast.

There is no getting away  from the financial trauma we all experienced over the last several years, but the housing market is coming back and there is no better investment for the average family. The volatility of the stock market is something that a lot of us just don’t want to risk, at least not right now. There’s something about an”Inverted Yield Curve” that leaves me wondering what it all means. Call me for housing info at 6107372310. Or email me at my new email address salvatoreruta13@gmail.com

Share Button

Death and Taxes

Posted on: April 2nd, 2014 by admin

taxes pictureI think you know what I mean. Its inevitable. But I guess I  anticipate  the tax portion of this phrase with  utmost dread every year. April 15, or some day real close  when the government comes a calling and tells me to pay up.  God I hate it. and I always pay. Oh I know what  some you are thinking… you  always get money back.  How come I don’t. Well because I basically don’t want to give the government the use of my money interest free all year-long. That what it is. They take it out of my paycheck send it in and then those spend happy bureaucrats use it all year-long without so much as a thank you let alone any interest on it. Where’s the fairness in that?

No, I’ll take my chances in taking as many exemptions as I can to get as much cash as I can in my paycheck. I’ll pay  up once a year and the penalty. But in the meantime I am using the money for me and my family. But ideally I should zero out, no refund, no penalty. I’m working on that.

But regardless,you can’t escape. But the good news is, if you are a home  owner and borrowed money to purchase the home ,the mortgage interest is deductible. That, along with any property taxes that you pay. Pray to God that our leaders in Washington stop trying to eliminate these deductions from the average homeowner. That fact that we are almost 18 trillion dollars in debt as a country, leaves little doubt that they will continue to come up with  creative  waves of separating you from your hard-earned money.

It really is a war. Us fighting to keep it, and them fighting to take it. And even death won’t free you from the tax man. Your  federal estate is taxable over 5.4 million dollars and in some states like Pa. the inheritance tax can be as high as 20%.

Because of the terrible economic situation that has occurred since the crash of 2007-2008, many folks have found themselves owing money to the Federal government when they thought they were out of the woods and on the way back to stability. Let me give you some examples.

1. Selling your home short. This is where you received the okay from your lender to sell your home for less than what you owe. Up until the  end of 2013, there was no income tax due on debt forgiveness by a lender for  an owner occupied single family home.  This exclusion  expired at the end of 2013 and Congress has shown no interest in extending this provision. So if you sell underwater in 2014 you may owe a big fat tax bill to Uncle Sam. The only way to escape this is to file Bankruptcy or be declared “Insolvent” by the IRS. There is a difference. Talk to a lawyer and an accountant about these alternatives.

2. Forgiveness on credit card debt. This is similar to the above scenario except there has never been an exclusion. I have met several folks who have worked long and hard to rearrange credit card debt only to receive a 1099 C from the credit card company indicating that the debt is forgiven but now report it to the IRS as income.

It really is a shame that folks are trying hard to work out some equitable solution to pay their bills and find out that the hole is some cases is deeper.

Because of situations I mentioned, it is getting harder and harder  to reestablish oneself for the possible purchase of  a home, let alone pay off debt. But there is hope. Did you know that you can buy a house and get a mortgage after a discharged bankruptcy. Also if you lost a home to foreclosure, yes you can buy another house after a period of time. There are some  new credit caveats for sure, but it is possible. If you are in a Chapter 13 Bankruptcy your time frame is even quicker. Chapter 13 is when you are actually making payments to a creditor under court supervision.

Look, we all have problems. Some are financial, some are medical, some are emotional. But I am one of those guys that feels if you recognize your limitations and mistakes and are willing to keep on plugging for you and your family, then don’t give up the dream. That’s why I’m here, to discuss the options and give you some advice. Those experts that I can suggest you meet with will help you, not for free, but they won’t break the bank for you again.You owe it to yourself and those you love. But you have to take the initiative. Call me and get started. 6107372310. The first meeting with me is on the house. Click here for some additional 2013 tax tips.

Share Button

Touchy, Feely

Posted on: March 24th, 2014 by admin

touchy feelyInternet, smart phone,voice mail, email,Facebook. What do they all have in common?  Heck this one is easy.  They all allow so-called communication between two or more people without any overt face to face interaction. No, you can’t count Skype.You know you all have heard or seen the story, or perhaps you actually participated in the event, where two or more people are at some location, function, or event, where  or at least the majority of people are transfixed on their cell phones and everyone  is texting, emailing or Facebooking  to someone else and are not even looking or speaking at the person next to them. By the way is Facebooking really a verb?

I’ll probably be accused of paranoia or at a minimum some  old senior member of the real estate community who just doesn’t quite get it. They will say this is not the wave of the future but it is the present. It’s reality, and get on board. Well I think, notwithstanding my age,  I get around pretty good in the Digital Age.  I am Linked In, Facebooked, Pinned, Twittered and am blogging away. But I know from my long life in the Real Estate profession, that after searching online for their dream house, buyers want to talk to somebody for advice, they want to go out and look at the house, drive by the neighborhood, go inside, look at the carpeting, paint and room sizes. They want to smell the air inside to see if there were smokers in the house, if it smells like, cat, dog or a beauty salon. A Buyer is not going to get the “feel” for those things  just looking online.  And most importantly, they want to be with a professional who can provide decent council about the house. Here are some additional tips on preparing yourself before you buy. Tips

If you are a seller , can you really be objective about the house where your kids were born, or where you grew up? Maybe  you really liked all of that Flock wallpaper when you lived there. Or those metal kitchen cabinets that you painted 3 times different colors over the last 20 years. And 1 and half baths were just fine for your family of 5 and you never had any problems with the 20 year stove, refrigerator or the dark walnut paneling in the family room or finished basement. You get the drift. If you are honest with your self, if you are a seller, here are some examples  of  things you can do to get your house ready. Click here.

I guess what I am saying that if you want to sell or buy a home and you think you can do it by yourself using only digital and social media marketing;  then maybe you might want to rethink  your purchasing and selling strategy. Go with an agent and touch the house, feel it, see it and ask a million questions. If your selling home sweet home, look that agent straight in the eye and make him  give you  no baloney answers on what you need to do to get it sold. You might have to spend a few dollars, but it might save you some eye strain staring at those digital devices.  And you might make a connection with someone who will become a trusted adviser.

Share Button

Here’s a little secret in negotiating with either a buyer or seller.

Posted on: March 13th, 2014 by admin

Teenagers - Whispering a SecretReal Estate Agents are always put in a position of representing somebody. Most of us tend to think of an agent as either representing the seller or the buyer. Pennsylvania law requires that once an agent meets a consumer for the first time and there is a “significant discussion of real estate” that we are required to give them a written disclosure regarding the different kinds of representation that we can provide. The client has to acknowledge that disclosure in writing. It doesn’t bind the client to the agent. It’s just that it proves that the agent has done his or her due diligence in complying with the law. There is no contract at this time.

There is also the tricky position an agent is put in if a consumer calls the real estate office for the first time and begins to engage in a “significant discussion regarding real estate”. There is particular language that an agent must use and disclose to the consumer again regarding representation. To say the least it can get to be a little unusual and uncomfortable for both parties especially if the customer is just calling to find out where the property is or whether it has 3 or 4 bedrooms. We are not lawyers but sometimes you wonder how close we come. It really gets complicated if you have to explain the differences between buyer, seller, transaction brokerage(No representation) or Dual or Designated Agency. Dual Agency is when the client purchases the listing agent’s property and Designated Agency is when the client wants to purchase another home through the agent’s office listed by a fellow agent in that office. Oh yeh, that puts the broker of the company in a dual agency position.

Did you get all that? I can assure that even some experienced agents don’t get it. Where does the rapport development come in? Where does the  need determination start by the agent? I have to ask you some questions. I don’t want to interrogate you like we are  in some court. There is this “dance” that occurs between the agent and the potential client. I want to comply with the law  but I don’t want to offend the customer.

Let me get back to that “little secret” that will help you in negotiating with either the buyer or seller in a transaction. When you decide you want to either buy or sell a home and you are checking out agents to assist you. Ask them right up front “Are they going to represent you” In other words are they going to work for you on your behalf. Are the going to keep everything you tell them confidential, are they going to use their negotiating skills to get you the best deal possible. Do this up front and before you give them any information ask them to put that obligation in writing. In the case of the home for sale , a listing contract that will spell out their obligation to work on your behalf to get the highest and best price for your home. In the case of the buyer, a  buyer agency contract that obligates the agent to find you the best home for the best price. In either case, you the consumer make the final decision.  But the point is, if you do this up front in writing then you have something that you can enforce if you feel that the agent isn’t representing you in your best interests.

The written contract is usually not a problem with a listing,that is, an owner who wants to sell his or her home. No one is going to do anything regarding the marketing of that home until there is contract. Representing a buyer is a usually a different story. A lot of buyers do not want to feel obligated to one agent. Fine shop around, but one more little secret,do not disclose any personal information as far as your financial, bottom line pricing or other personal information, until you have a contract with that agent. As far as a fee you can negotiate that in with the Buyer’s Agency Contract , so that the fee can actually come from the seller at the time of settlement.

I guess as a final note and it isn’t any secret , before you pick someone, make the contacts, make sure they provide you with Consumer Notice , understand representation, make the agent commit in writing and then discuss confidential information.

Need some help on this topic and just want to chat about it? Contact me at samruta@yahoo.com or call me at 610-7372310.

Share Button

5 different ways to engage using Social Media and stay connected.

Posted on: March 6th, 2014 by admin

I am getting more geekitized the older I get. I really have become fascinated with all aspects of Social Media and the profound ramifications that it has on the practice of my business, which is selling houses and helping buyers find their dream homes. I don’t feel like I am a johnny come lately to this era but it has been a learning experience. Here are some ways that I promise I’ll stay connected with you and get results.

1. Facebook. This blog is linked to my Facebook page and will also provide us with an opportunity for a 2 way communication. I’ll try to keep the blog real estate related but I have to say I can slip out of that on occasion . I love the Military and the men and women who serve and have served. You will pick up my bias.

2. Linked In. Purported to be more of a business venue, I am glad to participate, and though the professions are diverse , they all need advice on real estate. Be glad to give you mine.

3. Twitter. 140 characters to get your point across makes a lot of sense in initiating a conversation. I have to get better at this to get my point across quickly. It will be a tease but then I hope you will contact me for an in depth analysis.

4. Pinterest. I am new to this site but I like the chance to “Pin” and also to provide pictures and video to get a real sense of visual reality of one’s opinion.

5. Google Plus. The big bad boy of internet everything. How can you not be aware of Google and ignore its power.
The fact of the matter it really has a way to go to match Facebook as far as popularity, but can’t be ignored.

There are a plethora of other contact venues but I’ll start with the above to get you to discuss what’s on your mind. I’m pretty easy. And of course I am open and eager to interact with you on any platform that you might think beneficial. In fact, please give me your recommendations. Look forward to hearing from you.

Sam

Share Button