Category: Buyer Tips

An on going discussion for buyers, covering the current real estate market, trends and patterns and what to do to get your best price on your dream home.

Five Things To Know About Purchasing a Foreclosure

Buying a foreclosed property can be a great deal, but it can also be confusing and stressful. Here are five things you should know to make the process easier.

Buying a foreclosed property can be a great deal, but it can also be confusing and stressful.  Here are five things you should know to make the process easier.

Take it or leave it.  Foreclosures are sold “as is.”  In a normal home sale the sellers are required by law to make all kind of disclosures about issues that the home has had in the past, repairs made to the home, repairs that need to be made to the home, etc.  In the foreclosure process the banks make it clear that they don’t live in the home, have never lived in the home, and have no idea about the home’s history, so you won’t be getting disclosures of any kind.  The home is yours to take or leave just as it is.

Check out the neighborhood.  The neighborhood that the home is in can tell you a lot about the potential value of the home.  Are there lots of homes for sale in the neighborhood?  Are the homes primarily rental properties or are they owner occupied?  Are the homes and yards nicely kept or is the neighborhood falling into disrepair?  The answers to all of these questions can give you a good clue about whether or not you will be getting a good deal if you are to purchase the foreclosed property.

Forget contingencies.  In a normal sale there are all kinds of contingencies that you can write into your contract without worrying about potentially losing the deal.  One of the most common is to make your offer contingent on the sale of your own home, but there are many others as well.  In a foreclosure sale no contingencies are the way to go.  The less reason you give the bank to reject your offer, the more likely you are to get the home.

Use cash.  Or at the very least have all of your financing secured.  Pre-approval does not necessarily mean that the financing will come through quickly enough in the foreclosure process.  The less hassle you have to go through to get the money, the better it is.  Cash is always the best option.

It’s all on you.  Depending on the laws in the area of the foreclosure you may have a short window of time to have an inspection done before committing to closing.  In this case, everything is riding on you.  It is up to you to know what work needs to be done to the home and how much it is going to cost.  Again, this goes back to the fact that there are no seller disclosures when dealing with a foreclosure.  Hire a trusted inspector (consider having two inspectors look at the property) and follow-up by hiring any necessary specialty inspectors and/or contractors to give you as much information as possible before closing because uncovering potential problems is your responsibility alone when buying a foreclosed property.

Cooper Realty Associates are REO specialists in Sussex County.  If you’re thinking of buying a foreclosed property, give us a call and put our expertise to work for you – 302-856-6434.

Be A Successful Home Buyer

The process of buying a home can be overwhelming, frustrating, stressful, and exhausting, but in the end having a place you love to call home is usually worth any hassle. If you’re looking to make the home buying process less stressful having a good agent that you trust is important, but there are also some steps you can take as a buyer to pave a smooth path for yourself.

The process of buying a home can be overwhelming, frustrating, stressful, and exhausting, but in the end having a place you love to call home is usually worth any hassle.  If you’re looking to make the home buying process less stressful having a good agent that you trust is important, but there are also some steps you can take as a buyer to pave a smooth path for yourself.  Before you even begin the process of looking at homes you should take a close look at your financial situation.  To avoid overextending yourself you should get preapproved for a loan, have a realistic understanding of the monthly payment you can afford, and agree that you are not going to look at homes above your price range.  After determining your affordable price range you should consider the goals you have for your home.  It can be tempting to get caught up in the details of how many bedrooms and bathrooms you want, but considering the goals you have for your home will help you determine what is truly important and what you can compromise on.  Being proactive will also help to smooth the process.  As a buyer you can be proactive about securing financing, viewing only those homes that fall within your reasonable price range, viewing homes carefully and critically, reading inspection reports and following up, and negotiating the contract among other things.  It is important as a buyer to be as proactive as possible throughout the entire transaction because when all is said and done nobody is going to care more about your new home than you are.

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.

Thursday Three: 3 Things Sellers Must Disclose

If you want to sell your home federal, state, and local laws require you to disclose any information that affects the value or desirability of your property to potential buyers from the get-go. Here are three pieces of information you must disclose:

If you want to sell your home federal, state, and local laws require you to disclose any information that affects the value or desirability of your property to potential buyers from the get-go.  Here are three pieces of information you must disclose:

1.  Physical condition: This refers to the overall structure of the home and includes the foundation, roof, electrical system, plumbing, insulation, sewage, etc.

2.  Health & safety hazards: This includes environmental hazards and disclosures about past damage from natural disasters as well and includes disclosers about lead-based paint, asbestos, radon.

3.  Legal concerns: This includes disclosing any pending lawsuits and compliance with local building and zoning codes.

As always, your agent can guide you through this process, so you want to be sure you have a great one…  give us a call at Cooper Realty Associates and put us to work for you – 302-856-6434.

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.

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.

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:

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!

Buyers Are Interested in Foreclosures More Than Ever

In 2009, a survey done by realtor.com showed that only twenty-five percent of potential buyers were interested in foreclosed homes. An updated survey, done this year shows that the number has jumped by forty percent, and that nearly 65% of buyers in the current market would be willing to consider a foreclosed property. In addition, the survey showed that most of the people (over 93%) considering a purchase that had been through the process of foreclosure would be purchasing the home as their main residence as opposed to an investment property.

In 2009, a survey done by realtor.com showed that only twenty-five percent of potential buyers were interested in foreclosed homes.  An updated survey, done this year shows that the number has jumped by forty percent, and that nearly 65% of buyers in the current market would be willing to consider a foreclosed property.  In addition, the survey showed that most of the people (over 93%) considering a purchase that had been through the process of foreclosure would be purchasing the home as their main residence as opposed to an investment property.

This rising interest is in part due to the amount of foreclosures on the market.  Because of the attention the foreclosure market has gotten in the past few years and the supply available, purchasing a foreclosed home is a much less intimidating prospect than it once was.

The survey also showed that purchasing a home that has been through the foreclosure process can save a homebuyer between 10-30 percent, and different survey done this year by Lender Processing Services stated that the nation-wide average discount on the price of a foreclosed home is nearly 29% .

Buyers willing to consider REO properties can take advantage of the market to score some great deals.  And according to these surveys, most buyers are willing to consider this prospect.

If you’re a prospective buyer, call Cooper Realty Associates – we are REO specialists, and we’d love to help you through the process of buying your home, whether you’re interested in a foreclosed home or not.  Call us today – 302-629-6693.

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.

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:

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.

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!

Why Buying A Home Is Better Than Renting

With the housing market in its current state, many people are opting to rent rather than buy. They feel that renting gives them more flexibility and won’t leave them possibly unable to keep their house should they lose their job or have another hardship befall them. However, there couldn’t be a better time to buy! In fact, in 98% of today’s top housing markets, buying a home is actually more affordable than renting!

With the housing market in its current state, many people are opting to rent rather than buy.  They feel that renting gives them more flexibility and won’t leave them possibly unable to keep their house should they lose their job or have another hardship befall them.  However, there couldn’t be a better time to buy!  In fact, in 98% of today’s top housing markets, buying a home is actually more affordable than renting!

There are several reasons that buying is almost universally more affordable than renting.  First, home prices are at record lows throughout the country.  Second, mortgage rates are at historic lows.  And third, landlords acknowledge that they have control in a market flooded which results in high rent prices.

So, if you’re in a position to save for a down-payment now is the time to buy!  Give us a call at Cooper Realty Associates and let us help you get out of your rental and into your own home – 302-629-6693.

Thursday Three: 3 Ways To Lower Your Homeowner’s Insurance Premium

There are many reasons that your homeowner’s premium might go up, but if you’re looking to lower yours, try any of these quick tips…

There are many reasons that your homeowner’s premium might go up, but if you’re looking to lower yours, try any of these quick tips:

  1. Call competitors – Yes, it can be time consuming, but calling several companies for rate quotes can end up saving you quite a bundle in the long-run.  Just make sure the quotes you are getting match the coverage your currently have, otherwise it’s not a good comparison.  In some cases, switching carriers could save you up to 10% annually!
  2. Package it – Depending on your carrier, you may be able to get a better rate if you bundle your homeowners insurance with your auto coverage.  If you currently have separate policies, call both companies and ask about package discounts.  Who knows, maybe you’ll even save some money on car insurance while you’re at it!
  3. Raise your deductible – A deductible is the amount of money you will have to pay out of pocket before your insurance kicks in.  If you’ve got some money set aside to cover unexpected expenses then raising your deductible can save you a significant amount each month.

Looking to buy or sell a home in Southern Delaware?  Give Cooper Realty Associates a call and put us to work for you – 302-644-2266!

Tips for Buying Your Retirement Home

There are many reasons to choose a purchase a home to retire to, but moving can be tricky and it can be difficult to feel like you’ve made the “right” decision when it comes to a retirement home. Here are some tips that might help make the decision easier.

Retirement often means moving.  After retiring, many people wish to move to a smaller home or a home that requires less maintenance.  Others finally have an excuse to move to their dream location after years of being stuck in a certain area because of their job.  Still others choose to make a vacation home their full-time residence.  There are many reasons to choose a purchase a home to retire to, but moving can be tricky and it can be difficult to feel like you’ve made the “right” decision when it comes to a retirement home.  Here are some tips that might help make the decision easier.

“Active Adult Community” vs. Traditional Community
 They can be called active adult communities, 55+ communities, or a myriad of other things, but the truth is that these types of communities can be a great option.  If you are interested in having a lot of recreational and social activities to choose from then an active adult community might be for you.  These communities usually offer golf, tennis, swimming, and/or other recreational activities for a monthly fee.  This fee is usually a fraction of what it would cost you to pay for all of the individual amenities yourself.  When you are trying to decide whether or not to look at 55+ communities or purchase a home in a more traditional community seriously consider how often you think you will use amenities such as tennis courts, a swimming pool, or a clubhouse.  If the answer is “not often” then it might be worth it for you to live in a more traditional community and pay a-la-carte for the things you desire, such as someone to mow the lawn or take care of snow removal.

Location
Make a list of all the things that are most important then look for a home that is located near all of the amenities.  This list might include the beach, quality healthcare, shopping, golf, restaurants, and much more… whatever is on your list, do your best to find a home that is in the vicinity of your top choices.

Amenities
If you choose an active adult community the amenities should be part of your consideration, but don’t forget to consider amenities if you choose a more traditional path as well.  Is it important for you to have a garden?  Do you dream of sitting on a porch in the evenings?  Do you plan to host large family dinners? Consider what is most important to you and look for a home with these amenities or the ability to add these amenities easily and within your budget. 

Monthly Upkeep
When you are determining where to buy a home be sure to factor in the “hidden” costs of ownership.  For example, how much will it cost you monthly to have someone mow your lawn and keep up with the yard maintenance when the time comes that you no longer want to do it yourself?  If you choose an active adult community, be sure you know what the monthly fees are, what they cover, and when they were last raised and by how much.

Safety and Layout
Not only do you want a house in a safe and secure neighborhood, but you also want to consider the future.  If there comes a time in the very far future when you need a wheelchair or other medical equipment, will the home you choose be able to accommodate you.  These are things that nobody wants to think of when they retire and have plenty of life left in them, but the time to plan for these things is before they happen to you.

Cost
Everyone’s goal should be to retire debt-free, so the overall cost of your home is, of course, something to keep in mind.  Be sure you can afford your home.  Just think of the freedom you will have in retirement if you are living mortgage-free!

Above all, when considering where you will live after retiring, be sure to evaluate and consider both your current desires as well as your long-term needs.  And, of course, hire a real estate agent to help you through the process!  Recently, Delaware Today published an article about why Sussex Counties is such a great place to retire.  If you are thinking of retiring to Sussex County give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266!

5 Things To Keep in Mind About Foreclosures

Interested in buying a foreclosed home? In today’s market foreclosures can be a valid option for many homebuyers. Unfortunately, there are many popular myths about buying bank-owned homes that make it difficult to really understand the foreclosure process. If you’re thinking of purchasing a foreclosed home, here are five things you should keep in mind…

Interested in buying a foreclosed home?  In today’s market foreclosures can be a valid option for many homebuyers.  Unfortunately, there are many popular myths about buying bank-owned homes that make it difficult to really understand the foreclosure process.  If you’re thinking of purchasing a foreclosed home, here are five things you should keep in mind:

1.       Foreclosure Doesn’t Equal Cheap
Many homebuyers believe that they will pay less for a foreclosed home than for a similar home that is not bank owned.  Because banks want these homes sold quickly, it is true that they are usually priced slightly under comparable properties, but the key word here is slightly.  A foreclosed home might be a “steal” compared to what the former owner’s once paid, but it is likely that compared to similar homes in today’s market the price is not such a steep bargain.  You should also keep in mind that foreclosures often (not always, but often) need some work, so you should factor those costs in when consider price.  Shop around and compare foreclosures to similar homes for sale on the open-market. The foreclosure you have your eye on might be a great deal, but don’t believe that it is just because it’s a foreclosure, do your homework!

2.       Be Aware That All Foreclosures Are Sold “As Is”
Generally speaking foreclosures are owned by sellers who have never even seen the home (the bank).  This means that the home has most likely been vacant for some time, and the general care and maintenance of the home has not been kept up.  This could mean anything from a broken window to a leaky roof to termites or mold.  Keep in mind that banks will not want to issue the buyer credits the way a normal seller would, so if you’re interested in a foreclosure you need an agent who is aggressive and experienced when it comes to working with banks.

3.       Don’t Lowball
Banks understand the value of the homes they are trying to offload and it is does not make good business sense for them to accept an offer that is significantly less than market value.  Think about it:  if you had a million dollars sitting in a checking account, you wouldn’t sell something for $1,000 when you know if you wait for a month or two you can get $2,000 or even $3,000 – you just don’t need the money that badly!  That’s the position the bank is in.  Although it is true that banks do not want to own these properties, it is also true that they are not desperate enough to give them away at steeply discounted prices.  In fact, they want these homes to sell at as a high a price as possible in order to cut their losses.  So if you’re seriously interested in a foreclosed home, be sure to offer a fair price.  A lowball offer will most likely be trashed.

4.       You Can’t Cheat The System
A lot of people believe that if they can purchase the foreclosure straight from the bank before it goes on the market, they will get a better deal.  However, banks have no interest in handling business this way.  Why would they?  It is in their best interest to get the best price for the property and that means putting it on the market and seeing what kinds of offers come in.  If you really want to purchase a foreclosed home before it hits the market, you’re going to have to pay cash at auction.

5.       Get The Home Inspected
Many people believe that buying a foreclosed home means that they have to forego inspection.  It’s true that if you’re buying the home at auction you will not have the opportunity to have it inspected, however if you’re purchasing a foreclosed home that is for sale on the open market you can and should have that home inspected.  Even though you will be responsible for paying the inspector and fully funding any repairs that need to be made (if you go through with the purchase), it is ultimately in your best interest to have the home inspected.

Are you in the market for a new home, foreclosed or otherwise?  Give us a call at Cooper Realty Associates 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….

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!

March 12, 2012

Fred’s Pick of the Day is MLS # 592756.  This Modular Home in Lincoln, DE sits on 1.19 acre lot with a long driveway.  The 4BR, 3BA, 2400 sq. ft. has laminate flooring throughout and was built in 2004.  Call me @ 302 258-6983 to see this gem at only $189,000.00.  Fred

Today’s food for thought from Benjamin Franklin:  “Rather go to bed with out dinner than to rise in debt.”  “Today it is almost impossible to not have debt of some kind; however, the advices still holds water—keep your debt as small as possible.”  Fred

Low Mortgage Rates Make It the Ideal Time to Buy

Heading into the spring quarter, mortgage rates are hovering around record lows, meaning that there’s never been a more affordable time to buy a home!

 

We set our clocks ahead yesterday, signaling the imminent arrival of Spring.  Spring typically brings a heightened home buying season with it.  This is great news for sellers, but there’s good news for buyers too.  Heading into the spring quarter, mortgage rates are hovering around record lows, meaning that there’s never been a more affordable time to buy a home!

On March 1st, Freddie Mac released the results of its Primary Mortgage Market Survey.  This survey found that rates on a 30-year fixed-rate mortgage are averaging around 3.9 percent with an average 0.8 point, rates that are nearly 1 percent lower than the 4.87 percent average reported last year around this time.  Similarly, the survey found that rates on a 15-year fixed-rate mortgage average around 3.17 percent with an average 0.8 point, nearly 1 percent lower than the 4.15 percent rate averaged at this time last year.  Adjustable-rate mortgages, of course, bottom out at even lower rates, some which haven’t been this low in decades.  So, if you’ve been waiting for a good time to buy a home, it looks like your opportunity is here!

Give us a call at Cooper Realty and let us help you find the perfect home – 302-644-2266!

On The Fence About Home Ownership? Warren Buffett Advises You To Take The Risk!

Even though it’s a buyer’s market right now, many people are still on the fence about whether or not to purchase real estate. Check out legendary investor, Warren Buffett’s, advice in this video.

We all know that when it comes to real estate we are currently in a buyer’s market, but many people are still on the fence about whether or not to buy.  Are you one of them?  Legendary investor and one of the richest men in America, Warren Buffett, certainly isn’t.  Check out this video:

Buy Homes Now — Advice From One of America’s Richest Men

So, when you’re ready to get off your fence and follow Mr. Buffett’s advice, give Cooper Realty a call.  We have offices in Lewes – 302 644-2266, Seaford – 302 629-6693, and Georgetown – 302 856-6434, and we’re ready to help you find a property that is perfect for you!

February 29, 2012

Happy Leap Year!  Fred’s Pick of the day is MLS 593317.  Here is a great opportunity to own a nearly new Poultry Farm in Bridgeville, DE 19933.  This farm consists of 2-66’ x 400’ houses(with room for a third house), a 50’ x 90’ manure shed with attached channel composter 14’ x 20’, a 150KVW generator and shed, a barn, and a huge 6 BR, 4BA home on 9.2 acres.  The house is 2004 and the poultry houses are 2007 all for only $845,000.  Call me if you want to see it @ 302 258-6983.  Fred

Food for thought from William James:  “Human beings can alter their lives by altering their attitudes of mind.”  “It has been said before in many different ways.”  Fred