Assist2Sell

As you plan to buy a home, seek pre-approval for financing so that you'll know how much home you can afford and how much to budget for monthly mortgage payments. Aside from the financed amount, some other regular expenses associated with homeownership will also impact your payment amount.

First is homeowner's insurance that provides protection against fire and theft. Flood insurance is another beast entirely, and may be required depending on your new home’s location. Remember that you can save money by carrying your auto and homeowners insurance policies with the same company.

Just like insurance, your lender also collects funds each month for property taxes, but you'll appreciate paying them if you ever need to call the police or fire department, or send your kids to a local school! The lender will hold the insurance and tax funds in escrow until the bills are due to be paid on your behalf.

Finally, if your down payment is less than 20 percent of the loan value, you'll likely pay PMI, or private mortgage insurance early on. PMI is insurance for the lender against your risk of default, and might add a couple hundred dollars to your payment, depending on the size of your loan.

Don't worry, these costs are bearable as long as you're prepared for them and you do your planning before making your purchase.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

There are three basic ingredients in the recipe for selling a home: location, condition, and price. Sellers have the most control over that final ingredient, price. If a home isn’t selling after a couple months, that element will likely need some adjustment.

Generally, if your home isn't selling in the average amount of time that others on the market are, overpricing is the probable culprit. Deciding how much to adjust your asking price will depend on a reevaluation of your local market.

Even if you're confident that you priced fairly and correctly from the beginning, you may find yourself overpriced if local conditions have declined or not seen any recent improvement. Now may be the time to consult with your real estate agent and ask for a new CMA, or Comparative Market Analysis.

The CMA will report the current asking prices, current selling prices, and prices for homes whose listings have expired. Forget about comparing asking prices, because the market has not yet shown if those will sell or not.

Prices at which homes did sell are a good figure to heed, but you'll learn the most from the prices at which homes did not sell, or expired. After your agent's explanation of the CMA, make sure your new price reduction is in line with final sales prices and well below the expired listing prices.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

Want to see homes that are exactly what you can afford? Want the best possible terms for your mortgage? Want to show sellers that you're serious and capable? Then start with pre-approval, from several lenders.

Forget about "pre-qualification" - that's just a quick ballpark figure the banks will offer without even checking your credit history. “Pre-approval,” on the other hand, produces a Good Faith Estimate, which spells out the terms of your loan, like interest rate, loan type (fixed rate, adjustable, etc.), and closing costs.

You'll have to provide documentation (bank statements, paystubs, W-2's, etc.) and the lender will check your credit report, but this extra work will give you a much firmer idea of what you can afford, as well as give you a powerful tool for making an offer and negotiating your purchase.

If you're serious about maximizing your investment, don't get just one letter of pre-approval. Apply with several lenders, because little things like the interest rate can make a huge difference when it comes to such a large amount. Don't just accept the first offer. Make the banks compete, and you could save thousands by comparing their terms.

Banks won't guarantee the loan until you've made an offer and the appraisal and title work have been approved, but you can't go wrong by doing your loan search before your home search.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

In these days of Internet scams and credit card fraud, we're all a little more protective of our privacy. However, if you're selling a home, you also know that posting a virtual tour online and having your agent show your home are absolute necessities for successfully landing a buyer.

What can be done to protect your home against would-be thieves or burglars? You've already taken the first step by seeking representation by a trusted real estate agent, because your agent only shows your home to buyers who have been screened and qualified.

Still, when you know that your home is being shown, it's best to start packing away valuables such as jewelry, electronics, silverware and family heirlooms before the first prospect ever visits. Similarly, when your home is being filmed for a "virtual tour," remove computers, wide-screen televisions, crystal, and valuable collectibles from the camera's eye. There is no need to advertise your belongings - your home's features will speak for themselves.

Further protect your home with motion sensor lights inside and out, and make sure your security system is active and that the service has an emergency contact number for you. You also have the option of registering with the local police department, so officers in your neighborhood can perform security checks. There's likely no need to worry, but why not play it safe?

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

One way to get the best mortgage terms is to make a down payment of at least twenty percent. That not only gets you a lower rate and monthly payment, but you'll also avoid additional PMI (private mortgage insurance) fees, and have "instant equity" in your home.

But what are your options if you can't manage twenty percent down? There are many federal, state and local programs that provide first-time homebuyers with assistance and great loan terms. One popular FHA (Federal Housing Administration) loan is the HUD 203 (b), which requires just 3% down and rolls the closing costs into the financed amount.

If you're starting with a fixer-upper, you might consider the HUD 203(k) loan. Traditionally, lenders don't provide a mortgage until repairs are completed, but buyers can't start repairs until they own the home. This FHA loan provides the entire amount for the purchase and the improvements, based on an estimate of the home's value after repairs.

Young first-time buyers could also get great terms if your parents can make the investment and down payment for you. Their good credit will guarantee the best terms, and you can buy them out over time or they can forgive a percentage of the loan each year. If the federal programs aren’t for you, then the bank of Mom and Dad may be the next best thing!

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

Federal foreclosure-prevention tactics have recently been expanded to encourage delinquent borrowers to avoid foreclosure by streamlining the short sale process. Cash incentives are also being offered to the homeowners, as well as to the lenders and the buyers.

Perhaps the best feature of the new legislation requires the lenders to advise the sellers what their minimum acceptable price is before listing the home for sale. Then if the sellers secure an offer for the agreed price, the lender must accept it within 10 days.

This speeds up the short sale process tremendously, since the lender is also required to consult with local real estate agents in order to determine a fair price. Of course, "fair" is a relative term here, because in a short sale, the bank is agreeing to sell the property for less than the total amount due on the mortgage.

However, it is definitely in the lender's best interest to expedite a short sale instead of allowing the home to foreclose, because on average, the bank loses 50% on a foreclosure, but only 30% on a short sale.

These new standardized procedures, called the Home Affordable Foreclosure Alternatives Program (HAFA), is a new option for homeowners who have been unsuccessful under existing programs. If you're facing default, I strongly urge you to contact a real estate agent today to discuss the alternatives.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at Mike@MSinton.com or on the web at www.MichaelSinton.com.

It used to be too common a story: you're excited about signing the paperwork, shaking hands, and grabbing the keys to your new home. But the day before closing, the lender advises that your closing fees are several hundred dollars more than their Good Faith Estimate listed. Suddenly, your excitement turns to pressure to just pay it and close the deal.

Now those days are over, thanks to the Mortgage Disclosure Improvement Act (MDIA). What was once the Truth In Lending Act has been rewritten with new rules to help consumers understand the loan costs and alert borrowers to changes in fees well in advance of closing.

Now the lender must provide their Good Faith Estimate within three days of receiving the borrowers' application, and closing cannot occur until the buyer has seven days to review the disclosure. If the final APR (annual percentage rate) differs more than 0.125% from the original quote, a new disclosure must be provided, granting the borrower the right of rescission.

This relieves the pressure that buyers once felt to agree to pay higher fees and rates at the very last minute. As always, borrowers can review the final documents one day before closing, providing an excellent opportunity for you to review all the figures with your real estate agent and to ask any lingering questions before you make it official.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

According to a recent survey conducted by the National Association of REALTORS®, close to one third of existing home sales were either foreclosures or short sales (meaning sales in which the lender agreed to allow the home to sell for less than the amount outstanding on the mortgage). Indeed, it seems for now that these "distressed properties" have become the new "traditional" sales transaction.

This is why it is so important to seek the representation of a specially trained and qualified real estate professional. Sellers particularly need assistance in navigating these complex short sale transactions, and buyers need guidance if they are to take advantage of these delicate opportunities.

Obviously, real estate agents are among the biggest advocates for homeownership, and we strongly believe that any home lost to foreclosure is one too many. Regrettably, some circumstances arise where homeowners are simply unable to maintain their mortgage payments, and risk going into default. In those cases, a trusted agent's specialized knowledge can help secure a short sale and keep the sellers out of the grueling foreclosure process.

Aside from staying current on national and local laws that apply to short sales and foreclosures, realty professionals are trained in qualifying sellers for assistance, negotiating with lenders, protecting buyers, and limiting risk. Now more than ever, it makes sense for both sellers and buyers to seek professional representation.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Markets go up, markets go down. Sometimes we see it coming, sometimes we don't. It all depends on what both consumers and businesses are buying, and when. How can we tell if and when real estate will recover?

We need to ignore short-term fluctuations, like the spike in home sales last November, when buyers thought the first-time tax credit would expire. Then sales rates dropped significantly when Congress extended the tax credit and removed that original sense of urgency.

We need to pay attention to long-term forecasts instead. Consider that homeownership increases by roughly 1 million each year. There are 4 million births, 2 million deaths, 1 million new immigrants, 2 million weddings and 1 million divorces each year. All of those events spur people to buy and/or sell a home.

Crunch the numbers, and you'll see that we can expect roughly 60 million home sales in the next decade. Regardless of the subprime mortgage debacle, and the ensuing foreclosure crisis, real estate will remain on the rails, an unstoppable freight train barreling towards homeownership.

Just as surely as the market sees recovery, buyers and sellers still need representation in these transactions. A recent survey by the National Association of REALTORS® reveals that 80% of buyers and sellers would recommend their agent to family and friends. That's a loud signal of the value of representation.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Sure, it's a legitimate question: Can you sell your home without the representation of a professional real estate agent? The legitimate answer is, Of course you can - but that begs the next question of whether it makes sense to do so.

One assumes that sellers want to obtain the highest price possible. Otherwise, the home could simply be auctioned, or sold to the first buyer who offers. Getting the best price depends upon exposure to the widest, most qualified segment of potential buyers.

An ad and a yard sign are not enough to create that exposure. While agents spend untold dollars on advertising and signage, those only attract about 20% of actual buyers, so just one ad and one yard sign will yield even less.

So where does the lion's share of motivated buyers come from? In a real estate firm, they come from cooperating brokers and agents. It's logical, since serious buyers seek the assistance of agents who save them time and money by matching their needs against large inventories.

The only buyers attracted to properties “For Sale By Owner” are ones who want to save the same commission that the sellers do! You can choose to represent yourself in this competitive industry, but it may cost you.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.