buyer tips – Page 3 – Cooper Realty Associates

Understanding Escrow

Escrow basically means to place something important in the custody of an impartial third party. In real estate, an escrow account is utilized after an offer has been accepted and while the buyer and seller are working to meet the conditions of the contract. This is the state of being “in escrow.” The escrow officer could be an attorney, title company, specific escrow firm, or other qualified and impartial third party. The escrow officer orders a title search, requests payoff information for the existing mortgage and any other liens on the property, prepares all documents including the grant deed to transfer ownership, prepares the closing documents, and takes charge of all funds involved in the transaction, such as paying off the existing mortgage.

Of course, like all things confusing things, the term escrow also has a second meaning in the real estate world. It can also mean an account that your mortgage company requires you to keep a certain balance in to cover the cost of property taxes and insurance when they come due.

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.

Personal Items In A Home Purchase

Whether you are a buyer or a seller, you want to be sure that when you buy (or sell) a home your contract is definitive when it comes to what comes with the house and what doesn’t.

Whether you are a buyer or a seller, you want to be sure that when you buy (or sell) a home your contract is definitive when it comes to what comes with the house and what doesn’t. Even if there is a spoken agreement about what comes with the house, be sure to get everything you care about in writing, otherwise it is not binding. For example, if you are a buyer who desires the washer and dryer that were in the house during the showing, ask for it in writing. Typically, items that are permanently attached such as flooring, light fixtures, built in bookcases are included unless they are specifically excluded in writing. If, for example, a seller excludes the fireplace mantel because it’s a family heirloom that would need to be in writing. Be sure to ask in writing for the buyer to replace the fixture before closing. Likewise, if the house is equipped with a wall mount for a flat screen television that you don’t want, write it into the contract for the sellers to remove it and make any necessary repairs to the walls, etc.

If you’re a buyer don’t make the mistake of thinking that everything you saw when you viewed the house is coming with it just because it “goes with the home.” For example a fountain, potted plants, custom bar stools, or a table that fits so perfectly in the breakfast nook that it seems like a built-in may or may not come with the home. So, what’s the moral of the story? If you’re a buyer and you want it, you need to ask for it. And if the buyers agree, be sure to write it into the contract! If you’re a seller and you’re planning to take your items with you, making that clear to the buyers from the get-go can make your life easier, but whatever you do, be sure to write everything that you care about into your contract.

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.

How to Choose a Home Inspector

If you’re in the process of buying a new home, you will need to hire a home inspector. This can be a daunting task. After all, you want to hire someone who is professional and is capable of warning you of any potential problems before you buy the property. There are several ways to find a trustworthy home inspector. You should start by asking for recommendations. Ask your agent! Hopefully they have a relationship with one (or several) home inspectors who will do quality work since they want to keep getting references from your agent! You should also check with friends and neighbors who have moved recently. Checking online review boards such as Angie’s List can be helpful, and checking with the Better Business Bureau is a good move too. You can check the American Society of Home Inspectors website to see if an inspector is a member, but just keep in mind that membership does not guarantee quality since the ASHI does not police its members work as long as they keep their education and dues up to date. Finally, you may want to consider having a second inspection, especially if there is a particular area that you are concerned about and you want to have a specialist check it out. After the inspection is complete, a quality inspector should stand by their work, so if you have any concerns ask them to reinspect the issues that concern you.

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.

5 Questions You Should Always Ask Your Agent

If you’re thinking of buying a home, here are three questions you should always ask your agent:

1. Do you know a great _____________________?
Fill in the blank here with your desired expert. Your agent should be able to refer you to a good mortgage broker and inspector for sure, but also painters, plumbers, electricians, structural engineers, and any other expert you may need or desire to work with during the home buying process. Your agent should be a local expert, who will be able to guide you to other local professionals that can get the job done well. In addition, professionals who often get referrals from your agent will usually treat you better than someone you found on your own because they want to continue getting business referrals from your agent!

2. What should I expect?/What happens next?
These are questions you should ask continually throughout the home buying process, starting with your very first interview with your agent. Your agent should be able to help you manage your expectations and guide you from the very beginning of the process until you’ve officially closed and have the keys in your hand!

3. What are the possibilities here?
Again, you will probably ask this question more than once during your home buying process! There’s really never a bad time to ask this questions, but particularly good examples would be when you are looking at a home that has a bonus room, unfinished basement, etc. Your agent should have seen enough home to know what kind of realistic suggestions can be offered for the space. Another great example would be in your home inspection turns up issues. Asking your agent what the possibilities are opens up the opportunity for you to discuss requesting repairs, lowering your offer, etc. with an expert who can walk you through it. My final example would be when it comes time to make an offer, asking about the possibilities gives your agent a chance to walk you through the various contract terms that you may or may not have thought of left to your own devices. With these examples in mind, I’m sure you can come up with plenty of your own examples when asking this question would be perfect, so use it liberally throughout your home buying process!

4. What do I need to know about this area?
When it comes to home buying each area is very different. Again, your agent should be a local expert, so they should be able to guide you and help you with the ins and outs of the local you are considering.

5. What else should I ask?/What else do I need to know?
This question relies on your agent to be your expert (which, they definitely should be!) and allows them the chance to share with you their extensive knowledge without relying on you to ask every single question. Remember, your agent has gone through the buying process way more times than you have, so even if you are the type to ask a million questions, be sure to throw this one in there as well, because your agent definitely has expertise that you can and should rely on!

If you’re looking for an agent who can answer all of these questions and more, call us at Cooper Realty Associates and put us to work for you – 302-644-2266!

Tips for First-Time Homebuyers

You’ve probably heard that there’s never been a better time to buy real estate, and that may be true, but if you’re a first-time home buyer buying a home may not be as easy as it once was. If you’re considering purchasing your first home you should check your credit score several months before you apply for a mortgage. By doing so, you will have time to address and attempt to correct any issues that might arise. You also need to start saving now. It’s best to put down at least twenty percent. If you don’t think you can swing 20%, you should do research into loan programs that will allow you to put down less. A great way to boost your savings is to make a budget, get a notebook, and write down where every penny you spend is going. By cutting back your excess spending you can up your down payment. When you’re ready to get serious about looking at homes be sure to get pre-approved for a mortgage. In addition to all the financial stuff to prepare, be sure to envision the home you dream of. You should make a list of your must haves (as well as your can’t stands!) and figure out what you are willing to compromise on and what you’re not.

Finally, and possibly most importantly, find an experienced team of real estate professionals that you like and can trust. Purchasing your first home is a huge step and it requires a significant amount of research, information, and knowledge. A knowledgeable real estate team can educate you, help ease the process, and make everything easier on you during this stressful time.

If you’re considering purchasing your first home, having Cooper Realty Associates on your side is an excellent first step. Give us a call and let us share our experience with you – 302-644-2266.

Understanding Contingencies

Whether you are buying or selling a home, you will most likely have to deal with contingencies during contract negotiation. Contingencies are conditions placed on the contract that, if not met, allow the buyer to either back out of the deal. Of course in the case of an unmet contingency, buyer & seller can always renegotiate, if they would prefer. If you’re thinking of buying or selling a home contingencies may seem a little overwhelming, so here’s some help explaining some of the most common:

Contingent on appraisal means that the home must be appraised and its appraised value must meet or exceed the offer price on the contract.
Contingent on inspection means that the house must pass any professional inspections that the buyer desires. In addition to a general home inspection, this might also include specific inspections such as structural engineering, termites/pests, radon, mold, electrical, plumbing, roof, etc. If any inspections turn up any problems that could be potential problems for the buyer or problems that would impact the price of the home the buyer may wish to renegotiate or to back out altogether.
Contingent on financing means that the buyer must secure a loan for the specified amount of the offer price.
Contingent on repairs means that the seller must repair any evident issues or issued turned up by the home inspection up to the agreed upon amount.
Contingent on closing costs means that the seller must pay the specified amount (up to 100%) of the closing costs.

There are many other contingencies that can be written into real estate contracts, but these are just some of the most common. For help through the whole buying or selling process, including help through any and all possible contingencies, give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Tips for Shopping for Your First Home

Buying a home is exciting, but when it’s your first home it is even more so. Many people just get out in the market and start shopping around, but for the best experience it is important to do your homework first. Thinking about these things might be tedious right now, but in the long run they will help you get the most out of your home.

Know Your Limit
Your first step should be to figure out how much of a monthly payment you can afford. Remember, the cost of home ownership is more than just a mortgage payment. You also need to factor in property taxes, upkeep & maintenance, utilities, insurance, and any homeowners association dues you may encounter. Although the loan amount you qualify for gives you a solid upper limit on your spending abilities, you need to remember that realistically you may not be able to afford that much house. Make sure you know what type of monthly payment you can afford and find a real estate agent that can help you stay within that range.

Plan to Stay
The longer you stay in your home, the better. If you think you may be moving in a year or two, perhaps you want to rethink buying right now. Another common mistake first-time homebuyers make is to buy a house that works for them right now rather than thinking about where they want to be in two or three years. For example, a two bedroom house might be perfect for right now, but if you’re thinking of starting a family then in 5 years it might be way too small for you. Plan ahead!

Shop Around
This goes for your agent and your mortgage broker. Find people who will be on your side and help make the buying process as painless as possible. When it comes to your mortgage it literally pays to shop around for the best rate and terms. A mortgage lender should be able to tell you exactly how much you’ll need for closing costs, which will help you determine how much of a down payment you can afford. Your down payment will determine whether or not you will need mortgage insurance, so it’s all important!

Plan to Compromise
Make a list. Write down everything you want out of your dream home and then figure out where you are potentially willing to compromise and where you aren’t. Make a list of your absolute “must haves” and get out there and start looking at homes. Then, be willing to adjust your list as necessary!

Finding a real estate agent you like and can trust is one of the most important aspects of any home search. At Cooper Realty we strive to make the expensive and often stressful event of buying a house as easy and painless as possible. Give us a call today and put us to work for you – 302-644-2266!

What to Look for in a Home Inspection

After you’ve found your dream home comes the scary part… inspection! Home inspections are meant to educate the buyer about the home they are interested in and ultimately give them piece of mind about the decision they make. Inspections are scary because they are not intended to uncover every nitty gritty detail about the house, so even a home that passes inspection with flying colors still might have an issue that was undetected. Home inspectors are not always able to pinpoint specific problems, but they are trained to examine the details of a home and determine if there might be any serious underlying issues. At the very least, a home inspector should be able to suggest that you get the expert opinion of a plumber, electrician, or other specialized contractor if they feel there might be a problem. When the home you love is being inspected, you should keep in mind that there are many problems that are fairly easy and cost efficient to take care of – these types of issues can even be bargaining chips in your negotiations with the seller. There are several key problems, however, that can be a matter of safety. If your inspector reports any of the following issues, you definitely want to keep in mind that these can be very costly and time consuming to fix. Here are the issues that might cause you to reconsider the house, or at least reconsider how much you are willing to pay for it, considering you will most likely have costly repairs to make:

Foundation problems
Roof problems
Structural problems
Moisture issues (pooled water, wet basement, moisture in crawl spaces, improper drainage, etc.)
Mold issues (usually caused by moisture issues)
Fire, carbon monoxide, and/or safety hazards
Electrical hazards

In addition to finding out whether or not the home is plagued with any big problems like these, you should also be sure to find out how old the roof is, how old the furnace and water heater are and the condition they are in, whether or not the routine maintenance of the house appears to have been kept up, and whether or not the home’s exterior has proper drainage, which is especially important if the home has a basement.

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