Serena Russell ~ Bay Area Real Estate Specialist

Great reasons to buy a home around the holidays

You might be wondering if buying a home during the holidays is a wise idea. Here are some good reasons to consider buying your home during the holiday months.

Here are five good reasons:

1.  December and early January are usually slower for sales and  sellers are motivated since they might not have sold the property in earlier months.

2. Rates are the lowest they have been in years and many options
are available, especially for buyers willing to put down 20% or more as a down
payment.

3.  There is  less competition to deal with which means less stress for you during the holidays.

4. Tax advantages: you may be eligible for deductions on points and mortgage interest if you close by the end of the year. Consult your tax advisor. deduction.

5. Lower prices & lower rates.

You should decide if this is a good time for you to buy.  Keep in mind, homes that did not sell over the summer are also available are great deals.  Furthermore, pricing might rise again after the New Year, so it might be a good time to find a bargain.

Good luck with your home search.

The contract of purchase, also known casually as ‘the offer’ is really a legal document for the purchase and sale of real property.  It becoming binding when both parties agree to the terms in the document.  The e quality of your offer is almost as important as the price you offer to buy that home.   Poorly written offers reflect badly on everybody and lessen your chances as a buyer to get your offer accepted.

Here are 10 basic tips to guide you.

1. Use the Correct Forms

2. Determine Price

Barring extreme buyers’ markets or sizzling sellers’ markets, you will probably want to offer a bit less than you expect to pay. You can ask for guidance, but don’t expect your real estate agent to name a price for you. Picking buyer’s prices is not an agent’s job.

3. Make an Initial Deposit

In most states, to have a binding offer, you need to make a good faith deposit. It could be cash, personal check, cashier’s check or other modes such as personal property, real property, mortgages or unsecured promissory notes.

Spell out who will hold the deposit — almost anybody but the seller!

If your state has “liquidated damages,” the seller could be entitled to retain your deposit if you default under the contract.

4. Disclose your Down Payment

Your down payment could be cash, promissory notes, stocks, real estate or other assets. Generally, it is readily available cash. Some states require verification of your down payment within a certain time period.

5. Name Financing Terms

Please remember that your deposit, when added to your down payment and financing should equal the total consideration paid. Disclose the type of financing you hope to obtain: conventional, FHA, VA, contracts of sale, assumption or other.

6.         Include maximum points, especially if you are asking the seller to pay them.

7.   Include Contingencies

California Association of Realtors (CAR) purchase contracts in California give the buyer by default 17 days to do inspections. Other states are similar.

Many contracts carry provisions for such contingencies as:

·            Appraisal

·           Loan Funding

·            Physical Inspections.

·            Depending on your state law, if you do not remove your contingencies in writing, they may still be in effect, all the way to closing!

8.  Under when possession happens

Is it  on closing? A day after closing?

9.   Understand  Who Pays the Fees

10.. Request Special Reports

WHAT DOES YOUR REALTOR DO FOR YOU?

·    Rather than focusing on a REALTOR®’s compensation, consumers instead should focus on identifying and selecting a REALTOR® who best meets their needs and unique situation.  The guidance and value a REALTOR® brings to the transaction cannot be determined by his or her commission rate alone.  In this instance, the saying “you get what you pay for,” may ring true.   Consumers should interview several REALTORS® to identify the best fit for them and their situation.
·    It’s critical to point out that although there are more than half a million licensed agents, not every real estate agent is a REALTOR® who voluntarily agrees to subscribe to a strict Code of Ethics.
·     As members of their local, state, and national associations of REALTORS®, REALTORS® constantly receive updates on the latest housing legislation impacting them and their clients.
·     Additionally, REALTORS® have access to the latest technologies for the real estate industry, including critical housing data, pricing trends, time on market, and historical sales activity in the neighborhood.  These tools and resources enable REALTORS® to provide the highest level of service possible, including helping sellers determine the best price for their home in today’s market.
·    A REALTOR® also can assist with the critical negotiations included in every real estate transaction, and help both buyers and sellers finalize the many details that comprise a purchase agreement.
·     For sellers, a REALTOR®’s role may include negotiating a sale price and other terms in this tough market. A REALTOR® also can help sellers determine what, if any, repairs may be the owner’s responsibility, and can help negotiate deadlines for their completion.

Buying a home is one of he biggest investments you’ll every make.  You will want to protect your investment during the purchase transaction with title insurance.

If you won the land that the house is on, you have a strong right to the property.  But if others have rights to it through liens, unpaid taxes, or mining rights, they are also part owners of the property.  Even if you know nothing about these risks, as the homeowner you are still vulnerable to such claims on your property.

Title insurance which protects against claims on your real estate by others, requires that certain risks be eliminated before the policy takes effect.  It then covers hidden risks thereafter.  If you have to go to court in regard to your property, the title insurance company will pay for your legal counsel.  If you lose your rights, you should be protected up to the amount of the policy.

Make sure you discuss a title insurance policy with your title company.

When you are ready to buy a home, call me.  As your real estate professional, I’ll be happy to help you through the process.

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