Buyer Tips – Page 2 – Cooper Realty Associates

Five Signs You Should Step Back Before Making An Offer

When you find a home that seems perfect for you, be sure to look carefully for potential problems before you put in an offer. Here are a few red flags to look for:

1. Lack of Maintenance. If you can tell that a home hasn’t been well maintained just by looking at it, think hard about whether or not you are up for the challenge. Chances are that in a situation like this there will be more to fix than just the cosmetic.

2. Foundation Issues. Comb the foundation for damage. Look for noticeable cracks, bulges, and grading issues in the yard which could mean that water has run down the foundation.

3. Old Wiring. If there are outlets or switches in the home that do not function, or if the outlets are double pronged instead of triple, if any lights flicker or circuits don’t work that is all a sign that there may be wiring issues.

4. Funky Smells. If you smell bad smells inside or out it could be a sign that there are bigger issues. Additionally, if you smell strong overlying scents like potpourri, candles, etc. then just keep in mind that it may be masking other not-so-nice smells.

5. Limited Fresh Paint. New paint is the number one way for sellers to spruce up their homes before selling, but if you only see new paint in certain areas, look for deeper issues which may be hiding under the paint, such as mildew or mold.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Tips for Viewing Houses

If you’re house hunting the last thing you want to do is waste your time looking at a bunch of properties that are wrong for you. To make the most of your time and effort, start by working with a realtor. Find someone you trust, but also someone you like since you may be spending a lot of time with them! Once you have a realtor and they have your wish list you can start touring homes. If at all possible drive with your realtor when you go on tours. This gives you time between homes to discuss and debrief so that your realtor can help you narrow your search, and insures that nobody will get lost or separated. When you go on a buyer’s tour make sure you have plenty of time free. If you have to rush back to work or on to your next plans you won’t be able to spend time truly exploring homes that you actually like. And while we’re talking about exploring, if you don’t like a place a cursory once-over is plenty of time to spend, but if you really like a place open every cabinet, drawer, and door in the place. After you’ve looked at a home, be sure to discuss all the details with your realtor. Voicing any concerns and criticisms that you have can help your realtor narrow down your home search so that you can use your time and effort much more efficiently. And finally, if you want to make your life easier wear shoes that you can slip on and off. Often homes with new carpet also have signs that ask you to remove your shoes, and being able to slip your shoes on and off will make the whole process much faster! Happy house hunting.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Advice for Downsizing

There are many reasons to downsize. Maybe your kids are all grown and out of the house, maybe you are retiring, maybe you hate keeping up with the yard and housework, maybe you’re tired of spending so much money to heat and light rooms that you rarely use. Whatever the reason, downsizing is typically a part of everyone’s life at some point. When you’re ready to downsize the first thing you should do is evaluate your finances and your credit to see what you can afford. After that you should make a “wish list” for your new home. Ask yourself all the same questions you asked yourself when you bought your previous home and prioritize the things you want and need in your new home. Finally, begin to tour homes. Homes with less than 1200 square feet and condos are the best bets for those looking to downsize. Of course, with downsizing the real estate adage of “location, location, location” still holds true. And when it comes to school district, remember that even if it doesn’t matter to you, it may matter when it comes time for you to sell. Finally, when it comes time to move remember that you are going to have to get rid of both furniture and stuff. Downsizing can be difficult, especially if you have a lot of “things” that you are attached too. A good rule of thumb is to sell, donate, or pass on anything that you haven’t used in the past year. If your kids are still storing things at your home give them a time frame to remove their goods before they get donated. And don’t forget about scale of your items too. If your furniture is oversized, you will want to sell it and buy new, smaller pieces for downsizing. In a large home, oversize furniture is cozy, but in a small home it is cramped at best and at worse doesn’t even fit. Downsizing can be stressful, but when it is all said and done it is so much nicer to have less to take care of, and the lower utility bills that generally come with downsizing are a nice perk too!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Five Reasons a Fixer Upper May Be For You

Yesterday we talked about reasons you may want to forgo a fixer-upper for a finished home, but fixer uppers can be a great option for many people. Today, here are five options that you may want to consider a fixer-upper for your next home:

1. You are looking for a home in a specific neighborhood. If you’re looking for a home in a very specific area and there just aren’t very many available considering a fixer-upper may help you settle into your ideal location.

2. You live for do-it-yourself projects. Turning a fixer-upper into a dream home requires a lot of time and money. The ideal situation is to do as much work as possible yourself. So if you don’t mind giving up your free time for the foreseeable future to get your hands dirty, or if you even enjoy hands-on work then a fixer-upper may be just what you’re looking for!

3. You have financing in order. If you are prepared for the cost of your fixer-upper to be much more than the cost at settlement and you have financing in order to cover the cost of renovations either through cash-on-hand, a renovation loan, or other lines of credit then you are probably ready to consider a fixer-upper.

4. You have extensive repair knowledge. If you don’t have the extensive knowledge base necessary to successfully bring a fixer-upper into dream-home territory you at least need the willingness to learn and the time and money to “practice” with since there is a large margin for error when you are leaning these things.

5. You can see your dream house potential. If you can walk into a home and envision it just as you’d like, then you probably have the vision to walk through the remodel a step at a time. Just remember that fixer-uppers take time to renovate. If you’re willing to wait months, or even years for your dream home then go ahead and offer on that fixer-upper in the perfect location!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-856-6434.

Three Reasons To Skip The Fixer Upper

Buying an fixer upper can be a great way to move into your ideal neighborhood or buy more home than you could otherwise afford, but it’s definitely not for everyone. Here are three reasons you may want to skip the fixer upper and put an offer on something that needs less work:

1. The home needs significant structural improvements. Replacing or repairing major things such as plumbing and electrical systems, foundation upgrades, etc. are expensive, time consuming, and rarely ever offer a return on investment that actually increases the value of the home enough to make it worth it.

2. You shy away from getting your hands dirty. The most cost-effective way to turn a fixer-upper into a dream home is to do as much of the work as you can yourself. You don’t have to do everything yourself, of course, but the more you contract out the more time and money you will spend turning your home around. If you’re not a do-it-yourselfer you may want to skip it.

3. You aren’t prepared to spend money. Sure, the price on a fixer-upper seems like a steal, but once you add in the (often extensive) costs of renovation the total cost of your home goes way up. If you’re not prepared for that bottom line going in, you should probably walk away.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Financial Tips

When you are in the market for a new home you are prepared to spend a huge chunk of money, but just because the bank offers you a $400,000 mortgage doesn’t mean that it is wise for you to take the full amount. Generally speaking, you should take at least 20% less than the bank offers you in order to protect your financial security. By purchasing a home at the very top of your budget, you risk being in a tight financial position for very many years in the future if anything should go wrong. Additionally, unless you are willing to take a risk, you should always go with a fixed-rate mortgage for a set period of time. A traditional 15 or 30 year mortgage will protect you against a jump in your monthly payment in the future. Finally, don’t get caught off guard by unexpected costs. In addition to the down payment and closing costs be prepared to pay appraisal fees, broker fees, loan application fees, inspection fees, plus ongoing costs like property taxes, homeowner’s insurance, homeowner’s association or condo fees, and hazard/flood insurance in addition to your monthly mortgage payment. To be best prepared for all of these costs, be sure that you keep a significant portion of cash available rather than using it all toward your down-payment. This will help insure better financial security for your family and your future.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you –302-629-6693.

Things You Should Know Before You Buy A Home

Whether you’re in the market for your first home or your fifth, there are several lessons you can learn from homebuyers before you to help make the process smoother. For one thing, choose your neighbors carefully. Just because you’ve had good luck with neighbors in the past, doesn’t mean you always will. Before you buy a home try to meet the neighbors. Ask around to see if anybody has animals that cause issues, loud parties, or constant traffic. The neighbors can be an excellent source of information about the home, history, and most importantly each other and habits of the neighborhood. Secondly, do not underestimate the unexpected costs of homeownership that creep up. Spending all of your cash on a down-payment can seem like a good plan, but depleting your emergency fund before you even move in is a terrible mistake, especially since upkeep and maintenance costs never stop. The best way to prepare for those costs is to keep a reasonable amount of money stowed away in your emergency fund while using the rest for your down-payment.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you –302-644-2266.

5 Easy Fixes Before Selling

If you’re putting your home on the market here are five cheap & easy fixes to increase your home’s sale potential.

1. Declutter. I’ve said it a million times before, and I will keep saying it… pick up your stuff, put half of it away, and if necessary, rent a storage unit while your home is on the market. Especially stash collectibles, family photos, and personal objects. Decluttering your house is the easiest and least expensive thing you can do to make it appeal to more buyers.

2. Clean. Deep clean, that is. In addition to your normal cleaning have your floors cleaned professionally, remove scuff marks from walls and baseboards, pressure wash the outside of your home including the driveway, wash your window treatments, scrub tile, and clean your windows both inside and out.

3. Paint. This is another one that I’ve been a broken record about. Repaint any walls in your home that are anything other than neutral in a neutral shade. No buyer has ever said, “oh this wall is too tan” but plenty of buyers have said “oh, this wall is just so red” (or blue or yellow, etc.). Neutral paint can literally sell your home!

4. New Hardware. Kitchens & bathrooms are the two rooms that buyers are most interested in. By changing out the hardware, light switch & plate covers, towel/toilet paper racks, etc. you can give both rooms a mini makeover without shelling out too much cash.

5. Curb Appeal. Finally, take a look at your home through a buyer’s eyes. If it could use a little curb appeal make over consider clearing dead plants, trim plants and bushes, and add some landscaping if necessary.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

3 Things To Check Out Before You Make An Offer

If you’re planning on buying a house anytime soon, be sure to check out more than just the home! Here are three tips to help:

1. Do a drive by. Drive by the home at several different times of day, and don’t forget to drive by a few times at night too. Be sure to drive by during the week and on weekends. Check it out and get a feel for the area at many different times to be sure that it “fits” you.

2. Check out your neighbors. Look at the properties of your immediate neighbors, but also of others in the area. Check out any shops & businesses nearby too. Pay attention to the details and remember that neighborhood affects property value.

3. Look at ratings. Go online to check neighborhood ratings, school ratings, and crime ratings for the neighborhoods you are considering. Remember, knowledge is power!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-856-6434.

Preparing Yourself To Buy

If you’re planning to buy a home in 2013, there are a few things you can do to prepare yourself. The first is to find a real estate agent that you trust to represent you fairly and with your best interest in mind. The other person you need to get in your corner before you start house hunting is a lender. Your real estate agent should be able to refer several that they like, but you can also check your bank or credit union and ask friends and family members for recommendations. Your lender will run your finances and set your maximum price for financing. This will help direct your search to homes that you can afford. After you have an agent and a lender in place educate yourself by talking to people with experience, reading books and articles, and talking to anybody you can who can help you understand the real estate purchase process. Meanwhile you can begin your search!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Holiday House Hunting

If you’re house hunting during this busy holiday season you have a couple of things working to your definite advantage. First, there aren’t too many people house hunting, so with less competition you may in for a good deal. Additionally, home prices in December are typically lower than any other month, while interest rates are at their lowest. Sellers who keep their homes on the market over the holidays are usually motivated sellers who are willing to negotiate on all reasonable offers. Finally, if you close on a home before the end of the year you can deduct any mortgage interest and closing costs on your taxes. So, if you’re in the market for a new home, it might be to your advantage to make time for your hunt during this busy season.

Looking to buy or sell a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

The Truth About First Time Homebuyers

Many people don’t realize that the term “first time homebuyer” is not necessarily a literal one. If you are interested in taking part in a state or local program for a first-time homebuyer, you should research the true definition according to the individual program. Some programs define a first-time home buyer as someone who has never owned a home in that specific area or who hasn’t owned a home in that area within the past three years. Most of the time this means if you owned a home more than three years ago in the same area or even if you currently own a home outside the area covered by the program you can still be considered a first time home buyer. There can be many other obstacles to qualifying for first-time home buyer assistance, but understanding that you could possibly qualify is the first step.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Buying A Short Sale

A short sale occurs when a home sells for less than the seller owes on it. In this case, the bank agrees to the loss they will take by agreeing to the sale price. A short sale helps a seller avoid foreclosure which could ruin their credit report. Short sales can be a significant bargain, but in reality they are anything but short. As a buyer you will have to be very patient should you decide to purchase a short sale property. Not only will you have to agree to a price and terms with the sellers, but then the bank also has to agree to all of the same terms, which can take up to months. In addition, it is not likely that you will be able to write any contingencies into your contract. Any negotiation you want to do will probably not work in your favor since the bank will already be losing money and only cares about the bottom line. If you go the short sale route, keep in mind that just because you and the sellers agree on the terms of the sale doesn’t mean that the house is yours. Lenders approve less than 50% of all short sales, so you may spend months waiting on news only to be answered with a big, fat no.

If a short sale does work for you, be sure you are getting a clear title to your home. It is helpful to have a good agent and real estate attorney on your side to help you through all the contractual nightmares that a short sale can bring.

Short sales are not for everyone, but if you are willing to be patient then they can pay off big-time.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

The Biggest Mistakes Home Buyers Make

Buying a home can be stressful and time consuming. The right agent can make your home search less painful, but it can still be quite a process. There are a few common mistakes that many home buyers make that can make the process more painful than it has to be. The first, extremely common mistake that buyers make is failing to see the potential in the homes they view. While it is important for buyers to see both the positive and negative aspects of each home they visit, passing on a home that is otherwise perfect just because the walls are an ugly color or the carpets are dated is a common mistake that can be avoided.

Another common mistake is getting so caught up in the moment or in the charm of a particular home or location that buyers forget that they need three bedrooms instead of two or need more need an eat-in kitchen versus a dining room. Compromise is a natural part of the home search, but compromising on a “deal breaker” because a buyer is caught up in the moment is a huge mistake. To that end, I located this awesome home buyer’s chart put out by HUD that can help buyers rate each home they see and keep the important things organized in several different categories.

Of course, having a great agent makes these mistakes and others much less common, so give us a call at Cooper Realty Associates if you’re in the market for a home in Sussex County. We look forward to working for you – 302-644-2266.

Why Fall is a Great Time to House Hunt

Between the amount of homes on the market and record low interest rates available to many buyers, fall could be the perfect time to find your dream home at a dream price.

Between the amount of homes on the market and record low interest rates available to many buyers, fall could be the perfect time to find your dream home at a dream price. Fall is a great time to go hunting for bargains in the real estate market. According to the National Association of Realtors in many markets, including our market of the Northeast, home prices drop by an average of $7,000-$10,000 once summer turns to fall. Fall is also a great time to get clues about the upkeep and maintenance of the homes you’re looking at. With leaves falling and weather changing, you should be able to get a good feel for the gutters, yard upkeep, drainage, and more better than you can during the warmer, dryer summer period. Finally, fall is a time when business slows down for many contractors, so if your dream home might need a little work, you are more likely to get a deal on the work now than if you purchase your home at any other time. Especially considering the rock bottom mortgage rates that are available currently, now is the time to get out there and find yourself a bargain!

Looking to buy or sell a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Advice for Downsizing

There comes a time in every home owner’s life when the idea of owning a large home just isn’t appealing anymore. When it occurs to you that the money spent on maintenance and the time spent on cleaning can be put to better use, it’s probably time to downsize. When you’re ready to think about downsizing think about the possible ramifications it may have. For example, to live comfortably in a smaller space you will have to get rid of a lot of your stuff – so if you’re emotionally attached, downsizing can feel like a step backward. In addition, if you have children, grandchildren, or friends and you like to have them come visit downsizing might make comfortable. However, if you feel like you can live with these ramifications, then downsizing might be a great option for you.

Once you decide to downsize, decide how small you are really willing to go and choose the neighborhoods you would like to live in. After you’ve got a good idea of what you’re looking for consider the costs of downsizing. Not only is there the cost of the home, but there are also other costs of downsizing. For example, you may need to purchase new, downsized furniture or need to rent storage space if you’re not ready to say goodbye to some of your beloved items.

Once you’re ready to make the move, call a trusted real estate agent and start looking! Downsizing might not be every home owner’s dream, but it can be a great move!

Thinking of buying of selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Once you’re ready to make the move, call a trusted real estate agent and start looking! Downsizing might not be every home owner’s dream, but it can be a great move!

Thinking of buying of selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Pre-Qualification vs. Pre-Approval

It’s a good idea to be pre-approved for a mortgage before you begin house hunting. In fact, many realtors won’t even work with you until you’ve gone through this process. There is a bit of confusion out there though, about the difference between pre-qualification and pre-approval. Many times these terms are used interchangeably, but they are, indeed, different. Pre-qualification is basically a letter from a loan officer saying how much they believe you will be able to borrow based on your income, debt, work history, etc. Pre-qualification is given without pulling credit scores, and is a “good faith estimate.” However, even if you are pre-qualified you can still have trouble with your financing, since nothing about a pre-qualification is guaranteed.

Pre-approval takes everything a step further and involves pulling your credit report (which typically involves a small, non-refundable fee). This process involves a lot more paper work, but shows that the bank is ready to work with you should you find a home that you love. It is important to note that pre-approval does not guarantee a mortgage, but it does guarantee that the bank is ready and willing to work with you which shows that you are a serious buyer.

Many realtors will work with you if you are pre-qualified, but it is really in your best interest as a buyer to be pre-approved before you start the house hunting process. It is heart breaking to fall in love with a home and then find out that it is way over your budget when you try to finance it. When you’re ready to start house hunting, shop around for a mortgage and find a broker that you like and trust. Once you have your pre-approval letter it shows your agent and the sellers that you are a serious buyer worth working with.

Thinking of buying of selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Types of Mortgages

If you’re in the market for a home, chances are high that you are not paying cash for it which means you will need to get a mortgage. There are two basic types of mortgages, conventional and government sponsored.

Conventional mortgages are come in two basic varieties, fixed rate mortgages (FRM) and Adjustable Rate Mortgages (ARM). As the name suggests, fixed-rate mortgages have a set interest rate that stays the same throughout the length of the loan. Usually fixed-rate loans are paid off over either 15 or 30 years. These tend to be the most popular home loans.

In an adjustable rate mortgage the interest rate rises and falls throughout the length of the loan. Typically, adjustable rate mortgages have a lower interest rate than fixed-rate mortgages, especially for the first year or so, but they can be risky, depending on the market and how long you plan to stay in your home.

With conventional mortgages, you are typically required to make a down payment of twenty percent. Buyers who aren’t able to put that much down are required by their lenders to pay for private mortgage insurance (PMI) until you’ve paid down a full twenty percent of the home’s value. PMI increases the monthly payment, and should usually be avoided if at all possible.

The other type of mortgage is though loan programs sponsored by the government. These include Federal Housing Administration (FHA) loans, Veteran’s Administration (VA) programs for veterans, and Rural Housing Service (RHS) programs for families living in rural areas. Government sponsored loans are intended for homebuyers with low income. Most of these programs require low down payments and have more lenient qualification terms than conventional loans. To finance a home through any government sponsored loan program, you still have to go through traditional banks or mortgage lenders to get your money. In these cases, the government does not actually lend the money, they just guarantee the loans.

Thinking of buying of selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

All About Property Taxes

Property taxes can be a significant portion of your monthly house payment, yet most people are painfully unaware of the ins and outs of property taxes and are happy to just be able to pay the bill each month. When you’re looking to buy a home, the property tax information is available on most real estate websites, but that information is not always accurate. Although the information listed about property taxes may have been the amount paid in the previous year, property taxes are calculated according to the value of the property. These are calculated yearly, and generally, when you buy a home the sale price is considered to be the assessed value. The issue is that there are state laws that only allow the property value to be assessed at a small increase each year, so if the home hasn’t been sold in a long time, the home may have appreciated more than the assessed value shows, in which case a buyer’s property taxes can be much higher than the current taxes. Of course, if the home has depreciated, this can mean your taxes are much lower. On top of that, there are also lots of different tax exemptions that you or the previous owner may or may not be eligible for, so if you’re eligible for a different amount of tax breaks, that’s another reason that your property taxes will end up being higher (or lower) than the previously paid amount.

To best estimate what your taxes may be ask your realtor and/or mortgage broker to help you find out what the tax rate will be in the areas you are looking at then multiply your estimated purchase price by that rate. Just keep in mind that this is only an estimate and that laws, assessment rates, and values can all change in the future.

Although it is difficult (or impossible!) to know exactly what your property taxes will be, these tips should help you be able to estimate more accurately than the tax history you find on a real estate website. Happy house hunting!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

How Much Home Can You Really Afford?

When buying a home, many people end their thinking with whether or not they can afford the mortgage payment. Affording the mortgage payment is obviously a critical part of owning a home, but it is not the only part. There are many other costs that need to be factored into the monthly cost of home ownership. The two most commonly thought of our taxes and insurance. Property taxes cannot be avoided. Depending on where you live you may have multiple levels of property tax to pay (such as city AND county taxes). If you’re not sure, you can call the county property assessor’s office in your area. Finding out the final number before agreeing to the home purchase is key, because the number may vary significantly from the tax data on the real estate listing or even any estimate you’ve received. Taxes can add hundreds of dollars a month to your payment, so be sure to get the information before you close settlement.

Another big chunk of your monthly payment goes toward insurance. You can’t own your home without it. If you live in a flood danger zone, you will also have to get flood insurance which will be a second, separate policy. Combined with your mortgage payment and taxes, your monthly payment may be higher than you realize.

In addition to these costs that most people are aware of, beware the hidden costs of home ownership such as Homeowner’s Association fees, utilities, and maintenance costs. These are items you should budget for, but that not everyone thinks of. All together, your monthly home payment is way more than just the cost of the mortgage. Being prepared is about being aware of everything, so just be sure you’ve done your research and really understand what your home will cost each month before you sign on the dotted line.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.