Have you ever seen the phrase “sold as is” in a description of a home for sale? What exactly does that mean and why write it into the property description?  In my opinion all homes are offered for sale  in “as in condition.” While many sellers make repairs and improvements to their homes before listing them for sale I have yet to find a PERFECT home. If you’ve ever shopped for a home you’ll know there is quite a range in the condition of homes offered for sale. An important step in the home buying process, therefore, is the home inspection.  Once a buyer negotiates a contract to purchase a home, it’s recommended that he or she hire a professional home inspector to assess the condition of the home.  If the inspection identifies unexpected  defects or problems with the home, the buyer has several options….proceed with the purchase under the initial agreed upon contract, ask the seller to make repairs, ask the seller to renegotiate the price with the buyer assuming responsiblity for making repairs, or give written notice to the seller that he will not be proceeding with the sale, cancel the contract to purchase and request that his or her deposit be returned.  In each of these options, the seller has the right to say no. If he or she  does and the buyer still wants the home, the buyer purchases the home in “as in condition.”  While it be more prudent for the seller to negotiate to make repairs  than to insist on the home being sold in “as in” condition the seller is under no such obligation.  As you can see the home buying process can become complicated as the process unfolds.  The consequences to both  the buyer and the seller during this process can be quite serious. As your REMAX real estate agent I am trained to guide you through the home buying and selling process. I can save you time and money and help you with all your real estate needs.

We closed on a home yesterday–well, my buyer clients did. It’s their first home and as you can imagine they were thrilled with their new home and excited to move in, unpack and make it their own. When we went to  the final walk through the sellers were still in the process of moving out.  Packed boxes, furniture and some wayward toys remained strewn throughout the home.  The moving company had been delayed, so the move wasn’t going according to schedule. The sellers were doing their best, sincerely apologized for the state of affairs and knew they were in for a very, very long day.  Of course, we always prefer to have everything completely moved out–in fact the sales contract clearly spells that out.  Thus, the  buyers could have postponed the closing until all the belongings were removed and everything was in order.  To their credit they understood the situation and closed on schedule.  A little risky? Perhaps—but they were planning on painting the walls anyway so a little spackle would take care of any bumps in the walls.  Also, during the previous months both parties had been respectful and cooperative negotiating  a sales agreement that was fair to both parties therefore a level of trust had already been nurtured.  A happy ending was the result—-and a good night’s sleep for both buyers and sellers! Congratulations Daniel and Shannon on your new home!

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   Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Andover, MA and the surrounding communities are not immune from the national housing market crisis.   While single family homes are still selling in Andover, 4.3% fewer homes have been sold this year compared to last year. Market data also shows a nearly 10% decline in the median sales price of a single family home in Andover. Sales of condominiums in Andover have been even slower.  Market reports show a 32% decline in the number of condominium units sold along with a 29% decline in the median sales price.  

 If you're facing a financial hardship or are at risk for foreclosure on your home in Andover, consider the following alternatives.

1. Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.
2. Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.
3. Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.
4. Short Sale:  Contact me your Certified Distressed Property Expert to negotiate the sale of your home. In many cases the mortgage company will allow a short sale which includes all realtor and legal fees.

For more information on ways to avoid foreclosure go to the HUD website.  To find out the current value of your home go to MyHomeValueToday.

Sometimes you have no choice...you have to sell your home but you owe more money on your home than you can sell it for in the current real estate market here in Andover. If so, a short sale can be a very good solution to your problem.  Still, there remain many myths about short sales and unfortunately many homeowners risk foreclosure unnecessarily  because of these myths.  Let's take a look at the truth about short sales.  Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert (CDPE)  has extensive training to help homeowners in distress.  By engaging the services of a CDPE you're chances of completing a successful short sale improve significantly.
2. Banks Don’t Accept Short Sales. In reality, banks, too, would like to avoid foreclosure whenever possible, but it is critical that your realtor has special training the process.  Many attempted short sales fail simply because the process was mishandled.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency, not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales and an experienced, knowledgable real estate agent understands short sales are becoming synonymous with a “good deals.”
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

I am one of the few realtors in the area who is a Certified Distressed Propery Expert. I have the training necessary to help homeowners who may be having difficulty keeping up with their mortgage payments. Search here for homes for sale in Andover and surrounding communities.

 

Even woodchucks know its a good time to find a new home in Andover!  But unlike these critters, if your thinking about buying a home, you need know how much of a mortgage you can afford.  It's important to do this even before you begin to look at houses for sale. Otherwise you may be wasting your valuable time and you may be disappointed to learn you cannot afford the home you'd like to buy.  The first step in determining what type of home you can afford is to figure out what lenders call your "debt-to-income ratio." Most lenders use 36% and under, but you might be more comfortable with a lower number such as 28% of your gross monthly income for housing expense. The following are the steps will help you calculate how much home you can afford.

1. Figure out all of your debt. Multiply your gross monthly income by .36 to find your total allowable monthly debt.
2. Add up all of your fixed monthly expenses.
3. Subtract your fixed monthly expenses from your total allowable monthly debt.

This number is the amount that you have for your mortgage payment, your home owner’s insurance and your property taxes.  For more help figuring out your total allowable monthly debt see a home affordability calculator.

You've heard about it...you've read about it...but do you know that the tax credit for first time homebuyers expires on December 1, 2009?  That means you MUST close on your new home before the deadline.  First time homebuyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less.  The credit is allowed for your primary residence and will only have to be re-paid if you sell your home within two years of purchase.  Once you identify a home to purchase, there are inspections, appraisals and legal documents to prepare, that's why most most closings in Andover and North Andover take forty five to sixty days, so the time to search for your home is now!   For more information about this credit go to the IRS website or contact me for more information on how you can take advantage of this historic legislation! 

Although mortgage rates are still above the record lows, mortgage interest rates have been falling. Rates rose this past June due to the yields on climbing long-term government debt. Investors became concerned that large amounts of extra government debt would trigger inflation. Experts speculate that mortgage rates fell this past week from market concern due to the weakening labor market. Whatever the reason, lower mortgage rates are great news for home buyers and home sellers in Andover, North Andover and the Merrimack Valley. Look at the difference just a 1% point increase makes in these loans.

People are waiting for prices to continue to drop; however, when rates go from 5% to 7%, it is the equivalent of a 20% increase in price to the borrower. Now is the time to buy.  For more information on how even small changes in fixed mortgage rates contact me at RE/MAX Partners in Andover, MA.