Since the housing crash we have witnessed more and more rule and regulation changes that affect the way loans are written. Making changes and adjustments to current rules, and writing new rules, has not slowed and I donât see them slowing down anytime soon. The new changes that will go into effect in 2015 will not affect your current FHA loan unless you refinance. Continue reading New rules that go into effect January 21st 2015 that will affect FHA loans
Category Archives: commitment
Is a Condo for me, or not?
Urban renewal is becoming more and more popular. Most of the people moving back in to the urban areas are baby boomers and executives with some free time on their hands. For this reason most of them are choosing to live in a condo. The trend of turning former apartments or an old factory in to condos has helped to turn around some of the urban areas. You can find great homes for reasonable pricing or a top notch location for a higher end price.
Before you buy a condo you should do some research into the condo rules and regulations? Each community will have their own fees and rules. You should familiarize yourself with each of these to understand what rights and responsibilities you as the condo owner will have.
Find out who is enforcing the Condo rules and regulations? Is it a homeowner association? A management company?
Most of the time condo owners are responsible for everything on the interior and the association is taking care of everything on the outside of the building. In some cases you may have an assigned parking space in an underground parking garage. When the condo is on a lake you may have a boat dock you can lease.
Some of the condominium associations might charge you an additional fee that helps them to offset any exterior repairs they might encounter and that fee is most of the time part of the condominium fee you have to pay, in addition to your mortgage and insurance payment.
Some other things to consider is that when your condo is on the 38th floor, are you willing to run down 38 flight of stairs in emergency? You may also have other restrictions due to the building or condo associations rulings.
The nice part with a condo is that you are only responsible for the interior of your condo and the condo association is responsible for the exterior of the condo. You donât have to worry about cutting the grass, fixing a roof leak or making any other exterior repair. The downfall is that the exterior maintenance upkeep is only as good as the condo community management company.
Either way, like with everything, there are positive and negative things you need to consider when choosing a condo to purchase. When you have any additional questions about condos feel free to contact the Settles Team.
Demystifying what a Real Estate Agent does in a real estate transaction
âWhat does a real estate agent doâ is a frequent question that is being asked. Let me see if I can demystify what a Real Estate Agent does during a transaction.
Many of the things a Real Estate Agent does are many times done outside of the public eye. What the public sees mostly is the interacting directly with our buyer or seller clients.
Depending on in what state you are buying or selling your real estate, you may have different types of real estate agents involved in the transaction. Each one of them may have different obligations they need to fulfill during a transaction that is either governed by local, State, or Federal laws/rules.
None of them are allowed to disclose the following information to either party, whether it is to a buyer or seller, unless agreed to in writing by both parties.
a)Â Â Â Â Â Any material or confidential information (except adverse material facts or risks actually known by Licensee concerning the physical condition of the Property, and facts required by statue, rule, or other requiring entity).
b)Â Â Â Â Â That a Buyer will pay more than the offered purchase price for the Property.
c)Â Â Â Â Â That a Seller will accept less than the listed price for the Property.
d)Â Â Â Â Â Other terms that would create a contractual advantage for one party over another party.
e)Â Â Â Â Â What motivates a party to buy or sell the Property?
Most commonly, everybody knows the Buyer or Sellers Agent. That could be either a Broker or a Salesperson (some states). More and more, there are now also Transactional Agents that formerly where dual or limited agents. A Transactional agent does not represent a buyer or a seller. They are a neutral go between for both parties to help them complete a transaction.
A buyerâs agent is ONLY representing a buyer and not a seller at the same time! A buyer and seller are represented by the same Agent during the same transaction is commonly called a dual/limited agency and it is not legal in all states. In many cases the dual/limited agent has been replaced with a transactional agent and it has to be understood and agreed to in writing by all parties.
Feel free to contact us and ask for the Agency relationship brochure that explains the difference between a Buyers, Sellers and Dual/Limited Agents.
Due to the different in the governing bodies that govern what a Real Estate Broker/Agent is allowed to do, you need to check with your State directly. There are basic functions a broker does that is pretty much within reason the same in every state.
- Comparative Market Analysis (CMA)Â â an estimate of the home’s value compared with other properties located within the same neighborhood or within a certain distance of the subject property. (competition for the subject property)
- Total Market Overview â an objective method for determining a home’s value, where a CMA is subjective.
- MARKETINGÂ â Marketing the real property to prospective buyers.
- Facilitating a Purchase â guiding a buyer through the process.
- Facilitating a Sale â guiding a seller through selling process.
- FSBO document preparation â preparing necessary paperwork for “For Sale By Owner” sellers.
- Real estate appraisal â in most states. Other states a broker has to be licensed as an appraiser.
- Home Selling Kits â guides to how to market and sell a property.
- Real Estate consulting – based on the client’s needs.
- Leasing for a fee or percentage of the gross lease value.
- Property Management â In some states the broker has to hold a Property Management certification.
- Exchanging property.
- Auctioning property â unless the state requires an auctioneer license.
- Preparing contracts and leases. (not in all states)
When you have any questions about this or any other Real estate related topics, feel free to contact the Settles Team. We are never too busy to help you with any of your real estate related needs.
Are you in the market for a Retirement home?
Here are 5 key factors you should take in to account when looking for a home.
1-Â Â Â Â Â When you are planning a relocation to a community outside the State you are living in consider vacationing in the area during both the busy season and off-season. Many communities have different âfeels’ to them depending on the time of year. Some people make the mistake of buying a home in a town that they have only visited on vacations once or during the peak summer period.
2-
During your vacation stay find out where medical care is located. According to AARP, more than 60% of Americans ages 50-64 have at least one of six chronic conditions such as hypertension, high cholesterol, arthritis, diabetes, heart disease and cancer. Once seniors reach the age of 65, more than 80% are affected by one of these chronic diseases. Close proximity to hospitals, doctors, and medical facilities should be considered when retiring.
3-
Think about gas prices and other conveniences. Your new home may be located far from family and friends and there may be no public transportation. You may end up spending a lot of money on gas and tolls. Twenty percent of people over 65 do not have a driver’s license. Many who do drive prefer not to drive at night or in inclement weather. Cost of living and the closeness of conveniences should be factored in as well.
4-
Determine how much living space you are comfortable with. Not having a family at home, your space needs will diminish. When looking at homes pay very close attention to how wide the door frames are. Does the home have stairs and if so how many? Do I need a basement and if so how will I get into the basement? Consider a garage attached or detached and whether they have stairs in the garage and attics when looking for a home. Also look for handrails or the possibility to put up handrails in areas like the bathroom or shower. The average size of a home for people over the age of 55 is 1,800 square feet.
5-
Look into social aspects of the area. If you like people, dining out, and shows, you may not want to opt for a remote location. Think about the activities you enjoy both during the day and at night. Many active-adult communities offer entertainment, bus trips to tourist attractions, and on-site shows and programs.
For help to find your perfect retirement home or any other real estate question contact the Settles Team!
When shopping for Home insurance, know what is in your policy.
Before I continue with this information let me give you a disclaimer; I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.
In one of my blogs I discussed how to keep your home insurance low, but have you ever thought about what should be listed in your policy?
I get it. Some of the polices are written with such fine print that it would take a microscope to read it. How many layman really understand the legal mumbo jumbo contained in their insurance policy. A great Insurance agent can help you navigate the legal wrangling of your insurance contract.
Some things you should look for when you compare insurance policies.
Flood insurance: Many insurance policies do not cover floods of any kind. Even when you are not in a flood zone you might consider adding flood insurance to your policy. Floods not only happen naturally but also could be side effect of developments or construction in the general area.
Does your policy cover to âbringing your property up to codeâ in case of damage? Why is that important?
If your home was built 10 to 15 years ago it is possible that it may not meet current local code requirements. During the last 10 to 15 years many zoning ordinances and building codes have changed. To bring a home back up to zoning ordinances and building code standards could be a very expensive out of pocket expense when it is not covered by insurance. Typically, during the rebuilding process, buildings must be rebuilt to the new codes.
Another thing to look for in your policy is liability coverage that covers not only accidents, but also assault and battery. Regardless of how much we like our neighbors, friends, and family, when we invite them over to our home they may bring with them their personal life we might not know about. If they decide to duke out their disagreement on your front lawn you could be liable for damages or injuries they sustain. You need to make sure you are covered.
I would like to add another thought. Just because you paid off your mortgage does not mean you should drop your insurance coverage. What you should do is send a âpaid in full letterâ from your mortgage company to your insurance company so they can take your mortgage company off the policy. In some cases they will reduce your payment as long as you are personally occupying the house.
For more information on insurance related items contact your insurance agent or when you are looking to lower your rate contact one of the agents listed on our resource page. For any Real Estate related questions or concerns contact the Settles Team. We are never too busy to answer any of your questions or address any of your concerns.
Easy âno costâ seller ideas to use to sell your home when you are in trouble.
When you are faced with being forced to sell your home and you do not have the money to invest in repairing it, you may then have to sell it âAS-ISâ.
Here are several things you can do to give your home the best chance to sell quickly even if it needs repairs.
Think of what you can do and not what you canât doâŠâŠ
None of these ideas cost you money and it is possible they may make you some money! (OK one maybe will but only if you have no other option)
In the sellers disclosure identify what needs to be repaired. Better to disclose than to hope the buyer will not see the areas that need attention.
- Start clearing out and start selling items you do not need. Look in every nook and cranny.
- Remove all your personal pictures and notes from the walls, desks, tables and refrigerators. Buyers are not interested who is in the house they want to know about the house.
- Vacuum the carpets all over the house, under the bed, under the couch, and the chairs.
- Deep clean all of the bathrooms, and the Kitchen. Do not forget behind the stove and under the refrigerator. People will pull the shower curtain to see how clean the shower is.
- Take a damp sponge and clean off all the finger smudges of the walls by the light switches and other places you can find. Donât scrub hard be very gentle.
- Clean out overstuffed closets. Put the excess in to storage or sell it.
- Organize your kitchen. Get rid of the junk drawer (we all have one).
- Clean off the kitchen counter top. If you keep it cluttered, you are telling the buyer that you do not have enough storage room for your items.
- Clean out the garage. If you have to sell some of the stuff you have then do so!! Otherwise put it into storage. Do not use the garage as storage unless you are planning on telling the buyers that the house is too small and does not have enough storage.
- Clean up the yard!!!
- Mow the yard and keep it trimmed!!!
- Ask friends or family members if they have some plants you could plant in your yard when you have none.
- Clean your windows and open the curtains to let light in!!!
All these ideas, except for putting some of your items into storage, will cost you no extra money you would not be spending anyway. What you will be spending mostly is your effort to get it done.
The faster you can sell your home, the faster you can get back on track, and the faster you might be able to get in to a new home. The longer it takes, the larger the shortfall will be. In this case time is money!!!!
Lessons I have learned from my Dog Stella
Never give up
Even so Stella is still not getting along with the cat Heidi who is giving her little smacks on her nose. Stella still keeps on trying to lay right next to Heidi to make friends.
Forgiveness
As a small dog, Stella will get stepped on when you are in crowed areas. Even after she getâs hurt she will stay right on your side and march right on even when she is in pain.
Remorse
When Stella getâs in trouble and she has been corrected, she will move right in with her sloppy kisses and wants to cuddle, to just say âI am sorryâ.
True love and friendship
It doesnât matter who you are or what your day has been like, Stella does not care about that when you walk in the door. She will be there wagging her tail and is ready to greet you with her positive doggy energy.
Always ready to try something new
My family consists of motorcycle riders during the weekends. When we adopted Stella she had to come with us. She was unsure at first because she did not like the sound of the bikes. As her trust in us prevailed she jumped in to her carrier and now she even takes a nap while riding on the bike.
When you are ready to spread your real estate wings contact the Settles Team
2014 Home-A-Rama, Westfield IN
Just as in previous years, Home-A-Rama 2014 again has some great custom builders showcasing their craftsmanship. This time they are in the Brookside Neighborhood by Langston Development located in Westfield IN.
Brookside is one of Westfieldâs premier neighborhoods with a variety of custom homes. Due to the variety of custom builders building in this Neighborhood you never will have a house that looks the same as your neighbors.
This year the Home-A-Rama 2014 features G&G Custom Homes, Bedrock Builders, Hoss Homes, M/I Homes – Showcase Collection, and Heartwood Custom Homes.
The Brookside neighborhood itself is a very diverse and stylish neighborhood with home prices ranging from $600,000 to $1.7 million. Just minutes away from all major conveniences like recreation, shopping, and schools. Brookside is located on 161th Street East of US 31.
Every one of the builders being showcased at the 2014 Home-A-Rama had a very unique style. I found that high vaulted ceilings and open floor plans are still popular.
Even when you have an open floor plan you still can find corners that will be quite enough for conversation or relaxing. Hideaway spaces like a hidden game room or reading /play room found itself into their design as well.
Pocket and barn doors have finally made their way back into the Midwest building style. It makes a stylish addition to a home and also will make room for other amenities. Clean lines and simple but stylish dĂ©cor design helped showcase the builderâs craftsmanship.
For more information about this or other neighborhoods, the builders, or the area in general contact the Settles Team.
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Several Steps to help to get you out of debt.
It is a very overwhelming feeling when you realize that you owe all this money! I have listed several steps to help you dig yourself out of debt. It is a start and you need to make the effort to begin.
âThe mint makes it first, it is up to you to make it last. â
Evan Esar (1899 – 1995)
Here are the steps to help you start digging yourself out of debt and achieve other dreams you may have.
At first you need to gain control over your spending.
- Start today. There is not better day than today to get started.
- List your obligations.In order for you to know what you rally owe you need to make a list of your expenses. List everything you pay! Do not leave out anything.
- Begin tracking your expenditures. By keeping a close eye on your purchases, you can determine which are needs and which are wants. You can then formulate an action plan to reduce any unnecessary expenditures. This will free up money to pay down your debt.
- Set spending priorities. Make sure you spend to serve your life goals instead of just paying off expenses as they occur. Set aside money first for debt repayment and then budget for things such as saving for college or retirement. Do this before spending on discretionary items.
- Leave your credit cards at home. Surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash. Also, closing credit card accounts can help you resist the desire to overspend by restricting your credit limit.
- Pay more than the minimum payment on your loans.
- Try to negotiate a better deal with your lenders. If youâre feeling overwhelmed, donât be afraid to ask your lenders if they are willing to lower their interest rates or reduce your required monthly payments to help you get back on track. They are more willing to work with you rather than having you file for bankruptcy
This information is not to be considered financial or legal advice. This information comes out of personal experience and I am not a financial adviser, CPA or attorney. For additional information on how to deal with your personal debt please consult your personal financial adviser, CPA or attorney.
For any real estate information and consultation feel free to contact the Settles Team.
DIFFERENT TYPES OF LISTING CONTRACTS THAT ARE AVAILABLE TO SELLERS
Every seller has the right to sell their home without the help of a brokerage firm and that is called a For Sale By Owner (FSBO) listing. You as an owner make the decision of accepting or rejecting an offer from a buyer represented by a real estate professional. Many times, before the buyers real estate representative will present an offer to the FSBO owner, they ask the FSBO owner to sign a commission payment agreement that guarantees the broker a commission at the time of closing. This in many states is also called an OPEN LISTING.
There are many types of listing agreements that can be used in the sale of residential real estate.
Another form of contract is the EXCLUSIVE AGENCY LISTING. The huge difference between this and the EXCLUSIVE RIGHT TO SELL is that when the agent or cooperating agents brings a buyer to the transaction the seller would have to pay for the commission. When the seller brings the buyer to the transaction the seller does not owe the agents a commission at time of closing. Many real estate professionals are reluctant to work on EXCLUSIVE AGENCY LISTINGS due to the lack of control.
An EXCLUSIVE RIGHT TO SELL listing is used close 95% of the time when it comes to listing residential real estate for sale. With this type of listing contract, no matter who brings a willing and able buyer to the transaction, the agent will earn a commission. In most markets when the buyer is brought by a cooperating agent the commission is split equally between the cooperating brokers. The length of time a listing contract runs is negotiable. It can be as short as 30 days and as long as 6 months. It just depends on your local market.
Another form of listing is the NET LISINTG. In many states the net listing might not be legal. Many times with the NET LISTING, the seller tells the real estate professional what their net price is for the home and the agent adds their commission to the net price later when they have a buyer. There might be a conflict when this situation when the agent has an offer that is much higher net than what the seller requested. In this case the seller might feel cheated. On the other hand, when the net is much lower than the seller anticipated the agent might not earn a commission and is reluctant to present the offer. In my state, Indiana, in order for a NET LISTING to be legal, the maximum amount of commission must be stated in the listing contract and has to be disclosed up front and agreed to by the seller.
When you have any questions feel free to contact the Settles Team.