Tuesday, May 28, 2013

Real Estate Auction Purchases, Foreclosure Auctions (Trustee's Sales) and REO Sales

Top 10 Title Insurance Complications with Auction Purchases, Foreclosure Auctions (Trustee's Sales) and REO Sales
Is the Price Worth the Risk??
Foreclosures and Auctions are situations where real property is auctioned off to the highest bidder without a title policy being issued.  REO (Real Estate Owned) is the sale of real property that a bank has acquired, most often as a result of a foreclosure, and are selling pursuant to a purchase contract which may include only a basic title policy.
For more information, visit www.RealtorLisaWu.com 

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, they are subject to change. Please note that individual situations can vary, therefore, please consult a professional for specific advice.  (Source: CornerStone Title Company)

Wednesday, May 15, 2013

Home Warranty Policy & Coverage Pre- During and/or After Close of Escrow

  • Some sellers wonder whether it is necessary to offer a home warranty, especially when inventory is low like it is currently.
  • The biggest advantage of a home warranty – which covers breakdowns in major systems – is that it is an incentive many buyers value, particularly if they are stretching to buy and don’t have a lot of money left over for repairs.
  • A home warranty is a relatively expensive form of insurance, and will set back the purchaser several hundred dollars, depending on the coverage selected. Also, there is a service fee for each call, which can be more than $100.
  • Home warranties have limitations. They don’t cover static elements like the roof or siding, but do cover operating systems that often fail, like major appliances including garbage disposals, electrical wiring, plumbing, and heating and air conditioning. Some companies allow the homeowner to add riders to cover extras like the mechanical elements of a pool system or hot tub.
  • Costs and exclusions vary widely, as do caps on what the warranty company will pay. Some companies also offer less coverage for systems that are near the end of their useful life. As in medical insurance, pre-existing conditions are usually exempted from coverage – and the warranty company makes the call as to whether the condition was pre-existing, as well as to whether the particular system should be replaced or just patched up.     

Sunday, May 5, 2013

How To Be The Most Attractive Home Buyer

Source: Fox Business News

As home prices continue to recover and interest rates remain at near-record lows, many houses are receiving multiple offers and to win the bid, buyers need to stand out from the crowd. According to the CALIFORNIA ASSOCIATION OF REALTORS®’ most-recent housing report, the median number of days it took to sell a single-family home decreased to 29.4 days in March.

Making sense of the story
  • Since markets are moving fast, housing experts recommend buyers have their loan pre-approved and their down payment ready before starting their search. With low inventory and demand high, buyers need to know their parameters.
  • Multiple offers are become the norm, so buyers need to be ready to compete and do their homework to seal the deal. The longer the negotiations, the bigger the chance a buyer could lose out to someone else who made a better offer.
  • Buyers also must be reasonable without being difficult because until an offer is signed, sealed, and delivered, other buyers can make offers on the property.
  • Even though it’s a competitive market, buyers should maintain their budget and not pay more for a house than it’s worth. Experts also warn that buyers should not cut corners like skipping the home inspection.
  • To be an attractive home buyer, consumers should plan ahead by checking their credit for accuracy and avoiding making any big purchases or taking on any big debt while house hunting.
  • Buyers who spot a good deal on a house should not wait days to make an offer. Since time is not on the buyer’s side, learning how to spot a great deal by researching an area’s home prices is pertinent.
  • In this market, cash is king. The more cash a buyer has, the more appealing they are as a buyer. Putting down 20 percent or more also makes a buyer look more financially stable and gives sellers comfort that they’ll qualify for a mortgage.                                                                    
  • Having as few contingencies as possible to be an alluring buyer. “Don’t overcomplicate your offer to the seller.”  Certain contingencies based on your ability to get a mortgage, the appraisal and home inspection are standard, but piling on more could make the seller less inclined to work with your offer.
  • Getting prequalified for a mortgage gives a ballpark for what you can afford to buy and will streamline your search process.  If you’re financing your house with a mortgage, have a pre-approval letter with you and if you’re paying cash, have proof of funds that shows you’re good for it.