Archive for category Property Management
How do I know how much my Property is Worth?
Posted by Top Home Loans in Mortgage News, Property Management on August 18, 2010
Before speaking with a mortgage broker or calling your bank, it is critical that you know how much your property value is worth. The problem is that you have no idea how much your property is worth. You have never taken a class on property valuations and you are not a real estate agent, so how do you know.
You could hire a real estate agent or a real estate appraiser; however, there are several costs to getting this done, and it won’t be worth it in most cases.
You could look at your property tax statement for the property valuation; however, this is usually old, and it will be out of line in comparison with the actual property value. This is not the most accurate way to value your property.
The best way to value your property is by using MLS. The trick is to log on and search for houses in your neighborhood. These houses will be what you compare your house to. You will need to make adjustments on the price to match what you think your property value is worth. After you do a comparison to several houses, then you will have a rough estimate on what your property value is worth. Once you have an accurate value, then you need to increase that value by about 30%. This will allow you to accommodate for things you may have missed. Keep in mind that you will rarely get this value, but this will allow for your mortgage to get the best value.
What happens when there are no properties selling in your area?
If you cannot find any properties to compare against other properties, then you will need to determine the value on your own. You will need to think about how much you figure you could sell the property for, then you would want to increase this value by 20% or 30%. This will allow you to have an accurate value.
Once you know how much your property value is worth, then you can talk to the bank with confidence. When your bank asks you how much your property is worth, then you will be able to answer that question accurately and confidently.
How do you determine your property value? What do you think your house is worth? Leave your response in the comments below.
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10 Reasons Why you Shouldn’t buy a Power of Sale Home
Posted by Top Home Loans in Mortgage Advice, Property Management on August 13, 2010
Lots of bargain shoppers love to hunt for power of sale deals. Many think they are getting a huge bargain if they are able to shave off ten or fifteen thousand off the asking price; however, are they really getting a good deal? Below are ten reasons why they probably aren’t.
1. The previous owner knew well in advance that they would be evicted by the bank. Most home owner’s will damage the property quite a bit before moving out. Some home owner’s have even went to the extent of destroying the house.
2. What did the person do in the house before? Did they commit fraud? Drugs? Crimes? Who knows what happened. You certainly won’t.
3. What is the neighborhoods opinion of the property? Everyone in the neighborhood will know the house was foreclosed on, and they will know that you bought it. Do you want that to be what everyone thinks of you?
4. Who was in your house before it? The people who lived in the foreclosed house may have used it as a grow op, or they could have done other nasty things. People who think the previous owners still live their could visit your house thinking the previous owners still live there.
5. No warranty and no guarantee. There is no way the bank will give you any details on the property, and they will sell the property to you as is. They will not make any promises to you at all.
6. The bank wants to get rid of the property as quickly as possible without losing to much money, so they will try to sell it for the best price within the best time frame. They still want to earn a profit, so don’t expect them to negotiate the price too much.
7. Cost of the house versus cost of repair. Most home buyer’s do not have the money to pay for renovations, upgrades, repairs, or other items the house needs. Usually, they can barely afford the down payment, so what they save in costs with the house, they will end up giving it all back in interest, fees, and repairs. They will probably end up paying more as well.
8. Sleep easy. When you have to constantly worry about repairs, damages, previous owners, and the houses history, this can have a toll on your mental health, and your pocket book. Protect your sanity and stay away from power of sale properties.
9. Your spouse will kill you. Most couples don’t enjoy moving into a fixer up. People prefer a brand new fresh home instead of a used and abused house. Keep your spouse happy, don’t buy a power of sale.
10. Your house will bring down the property value of the neighborhood. It’s true that one house can bring down the value of the entire neighborhood. Don’t make that your house.
A power of sale can sound like a good idea upfront; however, it you look at the specific details of the property, it is usually better to buy new or buy a resale property. When you do this, you will be able to get the whole story.
Have you purchased a power of sale? How was your experience with a power of sale? Leave your response in the comments below.
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25 Things to Look for when Picking a House to Own
Posted by Top Home Loans in Property Management, Real Estate on June 16, 2010
The following is a list of 25 things that are critical to finding out about a property before making an offer on the location.
1. Location, location, location – critical to the property value and your quality of life.
2. Age of the property. How old is the property?
3. What is the average income and economic class of the neighborhood? This should be in line with your family.
4. How much are the condo fees? Utilities? Property tax? This is critical for determining the affordability.
5. How many days on the market has the property been listed? Long listings usually mean problems.
6. Liens against the property or title issues? Make sure you are not on the hook.
7. What is the square footage of the property? The house?
8. How many owners have lived in the property?
9. Why is the seller leaving the property?
10. What types of renovations have been completed in the past ten years?
11. Is there local schools? Shops? Amenities?
12. How does the house look from the curb side? Any issues?
13. Is the house in line with the neighborhood? More expensive? Less expensive?
14. What does your spouse think of the property? What are their opinions?
15. What types of doors and windows are in the home? When will they need to be replaced?
16. What type of flooring is in the property?
17. Is there any foundation issues?
18. What has the price history of the property been?
19. Is the property in a convenient location?
20. Is the layout of the house convenient? Are rooms located appropriately?
21. Is it a house you could live in for at least five years?
22. Can you afford it easily? Do you have enough money upfront? What if you lose your job?
23. Will it last? Will it sell for more than you bought it for?
24. Is there a bidding war? Is the property in high demand?
25. Do you love it? Is it a good deal?
Do you have any other mandatory questions you ask when buying a house? What makes up your mind when buying a house?