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Once you find the house you want, you need to move quickly to make your bid. Your agent that you are working with should be able to help you on an initial offer. Try to line up data on at least three houses that have sold recently in the neighborhood. Calculate the difference between the original list price and the final price of the homes sold. If the average difference is, say, 5 percent below the asking price, then you know you can make an offer 8 percent to 10 percent below, leaving yourself a little room to negotiate. If you really want the house, don't lowball. The seller may give up in disgust. Another factor to consider in determining your bid is whether the trend in recent home sales is up or down over the past year. For instance, if houses a year ago were selling at list, and recent ones are going at 3 percent below, then you might want to sharpen your pencil for your opening bid to just 5 to 8 percent below list. There's no foolproof system for negotiating a fair price. More often it's better to work exclusively through intermediaries, such as a Buyers Agent. In general, don't let the other side begin to believe you are negotiating in bad faith or being deceptive -- any deal you eventually reach has to involve trust on both sides, and has to be a win, win situation. Be creative about finding ways to satisfy the seller's needs. For instance, ask if the seller would throw in kitchen and laundry appliances if you meet his price -- or take them away in exchange for a lower price. Remember, too, that your leverage depends on the pace of the market. In a slow market, you've got some negotiating room; in a hot market, you may have none at all. Make sure that everything is on paper. Verbal negotiations mean nothing. It really needs to be on paper with both sides working to the end, and coming up with a deal that is good for everyone. Some items that you might want to include in your contract negotiations would be: 1. contingent on obtaining a mortgage; 2. a home inspection that shows no significant defects. You always have 10 days to get this done and report back to the Seller with any discrepancies. If you don't get this done; you are accepting the house; as is. 3. a guarantee that you may conduct a walk-through inspection 4 days before closing. This last clause allows you to check the home after the sellers have moved out so that you have time to negotiate payment for repairs, just in case the movers cause any damage, or that big living room sofa was hiding a hole in the floor. You also need to make a good-faith deposit -- usually 1 percent to 10 percent of the purchase price -- that should be deposited into an escrow account. You will be credited this money when the deal closes. If the deal falls through, you will get the money back only if you or the home failed any of the contingency clauses. Now call your mortgage broker or lender and move quickly to agree on terms, if you have not already done so. This is when you decide whether to go with the fixed rate or adjustable rate mortgage. Expect to pay $250 or more for a home inspection and $300 or more for an appraisal of the home. Most other fees will be due at the closing. If you don't already have one, look into taking out a homeowner's insurance policy, too. Ask for recommendations from friends, or your real estate agent. Most lenders require that you have homeowner's insurance in place before they'll approve your loan. Ask to be present during the inspection, because you will learn a lot about your house, including its overall condition, construction materials, wiring, and heating. If the inspector turns up major problems, like a roof that needs to be replaced, then ask your agent to discuss it with the seller. You will either want the seller to fix the problem before you move in, or deduct the cost of the repair from the final price. If the seller won't agree to either remedy you may decide to walk away from the deal, which you can do without penalty if you have that contingency written into the contract. About two days before the actual closing, you will receive a final HUD Settlement Statement from your lender that lists all the charges you can expect to pay at closing. Review it carefully. It will include things like the cost of title insurance that protects you and the lender from any claims someone may make regarding ownership of your property. The cost of title insurance varies greatly from state to state but usually comes in at less than 1 percent of the home's price. The lender might also require you to establish an escrow account, which it can tap if you fall behind on your mortgage or property tax payments. Lenders can require deposits of up to two months' worth of payments. After all this rigmarole, the actual closing is often somewhat anticlimactic, though perhaps still nerve-racking. It's a ritual affair, with customs that differ by region. Your real estate agent can brief you on the particulars. Overall, if you are using a licensed Real Estate Agent, they should be able to guide you through all the details of negotiating the purchase of a home. Don't let the internet fool you into thinking you can do all this yourself. This is just a glimpse of what it takes to buy a home. There are many more details invovled. Don't make the mistake of getting taken advantage of. Have a trusted source on your side; representing YOU.
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Your first step here is to figure out what city or neighborhood you want to live in. (Remember the old saw about "location, location, location.") For overall demographics and data on metropolitan areas, you can visit a city site like CNNMoney.com's annual Best Places to Live list. For more detailed neighborhood information, check out sites like Yahoo! Real Estate, Trulia.com, Zillow.com or NeighborhoodScout for comprehensive school and demographic information on a number of communities. Look for signs of economic vitality: a mixture of young families and older couples, low unemployment and good incomes. Pay special attention to districts with good schools (high teacher-student ratios and graduation rates are among the hallmarks), even if you don't have school-age children. When it comes time to sell, you'll find that a strong school system is a major advantage in helping your home retain or gain value. Try also to get an idea about the real estate market in the area. For example, if homes are selling close to or even above the asking price, that shows the area is desirable. Your real estate agent will also be able to show you listings. Meeting with your agent is a very good first step. Most of the time they know the market well enough to get your wants and needs and pair that with a particular area. Next, take your search to your Real Estate Agent's website, which allows you to search for property that fits your requirements. Most Real Estate Agents have a website that links directly with the Local MLS. This will give you access to every listing on the market in your area. Be wary of choosing search criteria that are too restrictive. For example, select a price range 10 percent above and 10 percent below your true range. Add a 10-mile cushion to the location you specify. If you see a house you are interested in, save it, print it, add it to your bookmark or favorites list, and take note of the MLS code; your agent will want that code to arrange to show you the home in person. When you actually start touring homes, bring a notebook and a digital camera to help you remember details. Your real estate agent should supply you with a description of each house and the lot it sits on, the property tax assessment, the asking price, and sometimes a diagram of the rooms. Your camera and notebook are there to record other details, ranging from the cost of heating to the view out the rear window. One note: Don't automatically reject a house just because it doesn't measure up to your desires, either in features or price. You can always add a deck, for instance, or update a kitchen. Since the asking price is just a starting point for negotiation, you will be making offers and counteroffers as both parties seek an acceptable price.
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With all the tools and advice available today ranging from books and magazines to online advice like this lesson - it would be possible for you to buy your home almost completely without the aid of real estate professionals. However, that is not recommended. There are so many factors to weigh when purchasing or selling a home that if you try going at it alone; it could cost you dearly. The housing market, like politics, is basically local, and each state, city, and even neighborhood has a thicket of local laws or customs that you need to understand. For that, it helps to have a team of professionals to guide you. I wouldn't ask a doctor to forego a procedure stating that I have researched it myself and feel that I can do it on my own. I wouldn't claim to know all the ins and outs of your profession. You might want to start by finding an agent who can represent your interests in the search. This is not as simple as it sounds. Sure, 85 percent of sellers list their homes through an agent - but those agents are working for the seller, not you. They're paid based on a percentage, usually 5 to 7 percent of the purchase price, so their interest will be in getting you to pay more. What you need is what's known as an "exclusive buyer agent." Sometimes buyer agents are paid directly by you, on an hourly or contracted fee. Other times they split the commission that the seller's agent gets upon sale. A buyer's representative has the same access to homes for sale that a seller's agent does, but his or her allegiance is supposed to be only to you. To complicate matters, there are hybrid agencies called either single-agency or dual-agency brokers. In both cases, an individual agent in the firm may represent either sellers or buyers, sometimes both, in the same transaction. Potential conflicts of interest abound in this situation, so if you are seeking a buyer agent but no exclusive buyer agent is available, make sure to ask the agent about conflicts of interest. Next start looking for a mortgage lender. Take your time, since you could be paying this loan for 30, even 40, years. Never look for a Lender through the Internet. Two places come to mind when someone starts talking about getting a loan. 1. The bank you currently use now. If you have a good relationship with them, give them a chance to gain your business. 2. Ask your Realtor that you plan to use. If they have been in business for any time at all, they will know exactly where to send you based on your current financial situation. Over the years I have met and represented numerous clients that had done their homework, went to a lender either online or local and thought they had a great deal. Wrong! 8 times out of 10, I have been able to get them a better deal, because for the past 7 years I have been seeking out the best deal for my clients. From interest rate to closing costs.
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Buyers. Ever wondered how you might be able to come up with a downpayment to get that first house. Here are some options that might help you out. Just remember though. Call me when you are ready to find that house. If you haven't already, you'll need to come up with cash for your down payment and closing costs. Lenders like to see 20 percent of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you. Various private and public agencies - including Fannie Mae, Freddie Mac, the Federal Housing Administration, and the Department of Veterans Affairs - provide low down payment mortgages through banks and mortgage companies. If you qualify, it's possible to pay as little as 3 percent up front. USDA in some areas actually offers 100% financing. Taney, Stone County, and some parts of Christian and Greene County offer this type of financing. For more, check out their Web sites at Fanniemae.com or Freddiemac.com. A warning: With a down payment under 20 percent, you will probably wind up having to pay for private mortgage insurance, a safety net protecting the bank in case you fail to make payments. PMI adds about 0.5 percent of the total loan amount to your mortgage payments for the year. So if you finance $100,000, your PMI will cost $500 annually. Once you've considered the down payment, make sure you've got enough to cover fees and closing costs. These may include the appraisal fee, loan fees, recording fees, inspection fees, and the cost of a title search. They can easily add up to more than $3,000 - and often run to 3 to 4 percent of the mortgage amount, depending on the type of loan you get. If your available cash doesn't cover your needs, you have several options. First-time homebuyers can withdraw up to $10,000 without penalty from an Individual Retirement Account, if you have one, though you must pay taxes on the amount, unless you replace the amount taken. This is great because you could use the $8,000 tax credit to pay it back and only be pay taxes on what you took out. You can also receive a cash gift of up to $13,000 a year (the limit for 2009) from each of your parents without triggering a gift tax. Gift taxes are only paid by the donor if they gift you over $13,000, not the recipient. (In fact, if you and your spouse's parents are both well-heeled, they can give you a total of $104,000 in one year - $13,000 from each of the four parents to each of you.) Check on whether your employer can help; some big companies will chip in on the down payment or help you get a low-interest loan from selected lenders. You can also tap a 401(k) or similar retirement plan for a loan from yourself.
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$8,000 First-time Home Buyer Tax Credit at a Glance - The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The tax credit applies only to homes priced at $800,000 or less.
- The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance - To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
- The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
- The tax credit applies only to homes priced at $800,000 or less.
- The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Contact a Liscensed Realtor for more details and how you can be a part of owning a home, and taking advantage of this Tax Credit.
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Some important items to think about are how you are going to market the property. Often, your Realtor can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your Realtor markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your Realtor acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The Realtor Code of Ethics requires Realtors to utilize these cooperative relationships when they benefit their clients. Your Realtor will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The National Association of Realtors studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your Realtor, you do not have to allow strangers into your home. Your Realtor will generally prescreen and accompany qualified prospects through your property. Your Realtor can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your Realtor can help you write a legally binding, win-win agreement that will be more likely to make it through the process. Your Realtor can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your Realtor is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
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Branson is a great city where you can experience new things everyday. It would take years to experience everything that our town has to offer. From the entertainment to the Lakes there is something for everyone in the family to enjoy. The entertainment seeker can find Branson a true paradise where you can find many world class theatres showing different kinds of family shows to include, rock n roll, country, comedy, gospel, dinner shows and more. The possibilities are endless. Foodies can find eateries and restaurants offering all kinds of aromatic delicacies giving you many options to choose from. If you’re looking for fun we have some of the best amusement parks, water parks, golf courses, and sports facilities in the nation. And don’t forget the Lakes. Water sports enthusiasts can enjoy our 3 pristine lakes that offer world class fishing, boating, wake boarding, and just about anything you can think of that’s fun. Branson Real Estate is accommodating as well. Travelers will find that local properties are very affordable compared to other areas of the nation. Our cost of living is very low and our property values hold well even through turbulent times. Any time you may have needs for Real Estate in the Branson area you should find a trusted Realtor to advise you.
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Using a Realtor to buy property is one of the smartest decisions you could make. Real Estate transactions involve one of the biggest financial decisions that most people experience in their lifetime. If you had an issue with Taxes wouldn’t you see an accountant? If you were sick wouldn’t you call a doctor? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a licensed Realtor. In this blog I’m going to touch on just two items that a Realtor can help you with. There are many more which you will here about later on in other blogs. 1. In the Branson and Tri-lakes area property is spread out further than if you were in a city. Sometimes the property you are seeking is available, but not actively advertised in the market. This will take some investigation to find all available properties that might fit your criteria. 2. A Realtor can help you determine your buying power and your borrowing capacity. One of the most important aspects of buying a home is financing. Where are you going to get your loan? In the Branson area we have many options to choose from based on your current situation. When you give us some basic information about your available savings, income and current debt, he or she should be able to refer you to an available lender that is best qualified to help you. Every situation is different, and should be treated that way.
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Another beautiful day in Branson, Missouri. I want to touch today on Golf Communities. In our area there are many Golf Communitities to choose from. 2 of my favorite courses are Branson Creek and Ledgestone at Stonebridge Village. These are spectacular courses that will challange you in every way. If you are coming to the Tri-lakes area and would like to learn more about our different Golf courses, and the property that surrounds them don't hesitate to give us a call. We would love to show you some great deals that would appreciate in value as the area develops.
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As I drove in this morning around daybreak, I watched the sun crest the Horizon and bounce off the thin clouds. I thought to myself, being one of the few on the road at that time, WOW! I've missed too many of these perfect sunrises in the Tri-Lakes region. Some might say its too hot. I would rather it be hot than cold. So much more to do. Which brings me to why I blog everyday about Branson, Mo. Real Estate. Not only do we live in a great area of the country but its affordable too. I believe anyone looking for a second home or a place to retire should be looking in the Tri-lakes Region. Real Estate prices are affordable, and so is the cost of living. For Instance, you can visit www.gobransonhomes.com and see all the Real Estate we have to offer in our area. Till next time.
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Stone County, Missouri and part of the Branson Tri-Lakes area narrowly passed last night by a margin of 52% to 48% to pass and KEEP Stone County Planning and Zoning. A good move if you ask me. I don't really understand why people wouldn't want regulations in place to secure the value of their property. I'm also not sure what the motive would be from someone that didn't vote for Planning and Zoning to stay? Maybe someone can explain that to me through a comment. That doesn't quite make sense. We want the Real Estate in the Branson Tri-Lakes area and Table Rock to stay Nice! By the way we have a very nice listing down in the Kimberling City area that comes with a private dock! Give us a call or email if you have any interest or want more information.
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Although the Branson, Missouri Area hasn't been hit very hard by the Real Estate Bubble, we have still had our fair share of deals come up in the market. For instance: You can purchase a 3 bed 3 bath 2 car garage, 1537 square foot home for approximately $72,000. I'm saying this because I think that if you are a buyer in this market right now, there is no better time to buy. In my opinion its not going to get any worse. Not to mention, that if you are a first time homebuyer you are eligble to take advantage of the $8000.00 Tax Credit. But remember the property you are wanting to purchase has to be closed no later than November 30th. So time is running out fast, being that you need about 30 to 45 days to close a property. That means that a buyer would have to put a home under contract on or around November 1st. The program is ending and who knows whether congress will continue it into next year. I say stop waiting and buy. You will be angry with yourself if you wait and miss out. To find other deals in our area just visit www.gobransonhomes.com. You can search all the listings in the Branson and Springfield area.
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