Tag Archives: Real estate

What Questions Should You Have When Buying A Flipped Home ?

Everything always looks so easy on TV does not matter what it is.  You can be driving down town LA and getting away from the police but some how you just never get hit or T-boned by another car.  

Well I know buying a house is not as intense as a high pursuit.  But with all the programs out there about flipping this house and that house and showing all the money you can make.  It does seem easy and the homes look so much nicer and all the improvements, that they did to the house just make someone want to buy a flipped house.  Let someone esle do the work ;-).   Well its not as easy as it seems like on TV .. but here are a few questions and just a few tips on buying a flipped home. 

Buying a Flipped Home? 5 Questions to Ask | Bankrate.com

http://www.bankrate.com Tue, 04 Feb 2014 00:00:00 GMT

How do you know if a home has been flipped? Should you buy a flipped home? Here are five questions homebuyers should ask.

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The 7 Steps to Buying a Home | Zillow Blog

http://www.zillow.com Fri, 27 Dec 2013 00:05:10 GMT

If you’re sure the home you love is right for you, it’s time to make your move. This means writing up a formal purchase offer and signing a real estate contract. Even though it’s early in the buying process, you still must sign a 

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10 Things to Check Before You Buy a Home | Apartment Therapy

http://www.apartmenttherapy.com Mon, 09 Aug 2010 21:00:00 GMT

We’ve learned the hard way that there’s some very important things that should be checked before signing the papers to buy a new home. Of course, you’ll have a pro do an inspection and look over the place to make sure 

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Do You Know What Your Contingency Is When Buying Or Selling Your Home ?

When you are buying real estate or if you are selling real estate whether it be a home or some land etc.  It is normally and hopefully done with a contract.  Real Estate transactions come with lots and lots of paper.   Under contract law, a contingency provides a party whether that be the buyer or the seller a stipulation to the contract that certain things must happen first before they are bound to the contract.   This is what is know as the contingency period.

con·tin·gen·cy

kənˈtinjənsē/

noun

noun: contingency; plural noun: contingencies

1.

a future event or circumstance that is possible but cannot be predicted with certainty.

Knowing when your contingency period expires is very, very important because this is time you have to make sure that there is nothing to keep you from closing on the transaction.  When making an offer on a house you give a deposit with your offer.  Prior to the contingency period you can cancel for any reason without losing your deposit.  But once you sign off on your contingencies which is “release of contingencies” then it will and can cost you, your deposit.

Also keep in mind that if you happen to be the seller and you sign off on all contingencies you may not have a deposit to lose.  But you did sign a Real Estate contract and the buyer does incur costs in buying your home.  Such as giving notice or a rental truck or what ever it may be.  Lets say that after releasing all seller contingencies you change your mind to sell the home.  The buyer can possible pursue court actions against you for any losses that they may have incurred.

Release of contingencies is very important to know prior to that no money really lost, and either party can back out of the transaction.  After the release the contract does become more binding and someone may lose some money for backing out.

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Does A Mortgage Payment Include The Taxes And The Insurance ?

Mandy asks…

Does a mortgage include property tax and insurance?

My girlfriend and I are looking at buying our first home.   The house is listed at $259,900.  The estimated mortgage that is being shown on the ad for the house is only $1,320.00.  So it seems that it is very cheap for that price. 

This is the first time that we have gone through this as being first time home buyers. I’m just curious that there are no other costs and that we can afford the payment.  And that includes everything so just want to make sure we really can afford it and no surprises.  Thanks.

admin answers:

No.

Sorry but it looks like that $1,320.00 is more than likely nothing more than just the interest and principal.  Meaning that it does not include the taxes and the insurance that is most likely required by your lender for most first time home buyer loans.  Not to mention depending on what type of loan you are getting you will also have Principal Mortgage Insurance (PMI).

I know on many forms of Real Estate forms of advertising whether that be the internet or some kind of print advertising some really nice low payment.  Sorry to say that is not the full picture of what the real mortgage payment is.  Its not that its bait and switch its just not really giving the full picture.  It really is the payment for the loan but the reality is that it is not what your lender will require you to pay for the loan.  It is meant to entice you and get you to call for more information.

For example in Santa Barbara county using 1.25 of the purchase price not the loan amount then dividing by 12 will give us an estimate of your payment for taxes.   That will give you an extra $270.00 a month.  Now being that you are a first time home buyer and if you are not getting a VA loan and getting maybe a FHA loan you will be looking at PMI which is currently a 1.35% factor than divide by 12 giving you $282.00 additional on top of your loan payment.  Now you still have to get homeowners insurance which is required by the bank to have you can choose who you get insurance from, but lets just add $70.00.  So your real payment out the door with nothing else to add unless you are living in a gated area or something like that wiht homeowners Association fees (HOA) your REAL payment would be more like $1,942.00.  I hope this is more of a clear answer for you and good luck!

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What If Bought A Home And Defect Not Disclosed And Did Not Use An Agent

Betty asks…

What rights does a home buyer after closing?

We bought a house that was for sale by owner and we came without a real estate agent. Since buying the house we have had several major repairs ( that repairmen indicated were a result of ongoing problems).  Can I request that the seller pay for repairs since they didn’t provide a disclosure statement?

admin answers:

You need a Real Estate attorney.

I know that there are Real Estate transactions that occur without an agent.  Usually its because the seller does not want to pay the commission involved in paying the real estate agent.  Since it typically falls on the seller not the buyer.  But an agent looks out for you in the transaction making sure all disclosures are signed and that all information that should be disclosed is disclosed, and that is considered material.   This is not to say that there are not Real Estate agents that do not bend the rules or just try to close the deal, and that there is never an issue when doing a transaction with an agent.  No matter what occupation, you will always have some bad apples in every industry.

As for your situation typically, failure to provide such a disclosure entitles a buyer to a specific remedy,  but a lot of that may be dependent on what you signed in your contract and what you may have agreed to prior to closing.   You need to get with a real estate attorney and see what remedies are available to you.

The “problems” may be the responsibility of the former owner regardless of the Disclosure issue. If you are to make out a claim against them, you’ll probably need to prove four things ( so see a local attorney):
1. Did They KNOW about the problems ?
2. They intently not tell you ?
3. Was there no way for you to know otherwise without them telling you?

Good LUCK !!

 

 

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