Loudoun County VA real estate: November 2012

Friday, November 30, 2012

Helena Talbot's blog - Avoiding Costly Mistakes During A Divorce

It is never easy to get a divorce since there are so many emotional and financial issues that need to be handled. The house is probably one of the toughest decisions that a couple has to make during this painful process. With emotions running high, it is very important that you get an expert to answer all your questions about taxes, mortgage, and other important decisions. A professional can help you make logical decisions and prevent you from making emotional decisions.

Perhaps the most difficult and the foremost decision that you would want to make is whether you want to continue staying in the house. This will, of course, depend on whether you would feel comfortable living in the place or if it would bring up painful memories for you. You will have to choose between staying in the same house and moving onto a new place.

These are questions that only you can decide but you cannot deny the fact that your decision will have a financial impact. Can you afford to keep the house or will you need to refinance it? Is selling the present house and buying a new one a better idea and how much money do you have for buying a home?

This article will help make a lot of things clear for you so that you can make a good decision and one that you will not regret later. While dealing with the house during a divorce proceeding, there are basically four options that you have. These are the four options and their financial implications:

• The house can be sold and the money divided between the two partners. Here, it is important that you get as high a selling price as possible. You need to clearly understand how much of the money will you be receiving. Note that there are selling and other expenses that will need to be considered while figuring out the amount received. It is also possible that the split may not be a 50% split. It will actually depend on your divorce settlement, the person who paid the original down payment and the property laws of the state you live in.

• You can buy the house by paying off your spouse or partner. You can keep the house to yourself this way but before making a decision like this make sure that you know that you can afford to take care of the monthly payments. Another factor that will need to be considered is that if both of you took a loan for the house, then you will need to refinance it and this could be a difficult process.

• If your spouse/partner is interested, you can ask your spouse to buy you out also. You may want to leave and make a fresh start in a new place and you will need some money to do this. However, you need to remember one thing, if your mortgage is not refinanced, banks will consider you as a co-signer to the property and you are as liable for the payments. This means that if you want a new mortgage, this liability will make it difficult for you to get it. This is despite the fact that you don't legally own the house.

• You can also continue to own the house jointly with your spouse. This option is quite possible even though only one spouse is living there. You can postpone this financial decision for a while which means that you will have some peace of mind for a while, however, there are tax implications that you will need to consider because these may change from the time that your divorce proceedings are settled to the time that the final sale is actually made.

If both of you have decided to sell the house, you need someone who can guide you in such a way so as to maximize your return. The help of a professional can come in very handy at this time. Always keep in mind that both of you need to be present when the listing contract is being prepared. Both the parties need to sign it and both should be present during the negotiations.

If you want to buy a new home, you can use the money that your spouse pays you while buying it out or from your part of the money coming from the sale proceeds. Make sure that you are very clear about the kind of house that you want to buy for your self. An expert realtor can help you a great deal by finding a house that matches your budget and other requirements.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

I have over 25 years experience in the real estate industry. As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele. If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems. I would appreciate the opportunity to earn your business. I am experienced in listing and selling short sales. For information on the short sale process, please visit www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors, Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors. I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979. I am married with two grown children and two grandchildren. My son in law is my business partner in real estate. I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker . I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William Counties. Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont. Cell 703.727.9885 Office 703.574.3800 www.facebook.com/LoudounCountyConnect www.twitter.com/ExitAshburn www.Linkedin.com/in/HelenaTalbot

Thursday, November 29, 2012

Helena Talbot's blog - Upscale Downsizing For The Retiree

Today’s seniors are busier than ever with friends, family, part-time jobs and even weekend escapes. Who wants a house to clean, or snow to shovel? And those flower beds that seemed like a lovely idea years ago don’t seem like a good idea today. Yet, while many seniors want to scale down, no one wants to give up their upscale expectations.

The trick is to find retirement properties that offer downsizing with all the amenities you’ll love.

All retirement communities offer independent seniors the chance to live near neighbors of similar age and interests. Most are located close to medical facilities, shopping, and places of worship. Many offer club house activities, a pool, tennis courts and even shuttle bus or van service. So how do you find the retirement community that is all-inclusive and fits your expectations? With the help of a real estate agent you can find the community that fits your needs now and later.

Consider the location of any Active Retirement Community. What is most important to you and how close do you want to be to outside recreational activities? Many of the more upscale communities offer some or all of the following amenities on-site;

• clubhouses

• pools/saunas/spa facility

• exercise facilities

• craft and hobby shops

• libraries

• media rooms

• movie theaters

• hiking trails

How important are planned activities? Many active retirement communities employ full-time activity directors to plan events such as day trips, shopping excursions, special-interest groups, card clubs and book clubs. Additionally, many active retirement communities offer a wide variety of travel options, including day trips, member excursions and private travel agencies on site. Some will also recognize the importance of activities that are age-appropriate for visiting family and friends.

Retirement communities are also forward-thinkers that consider the issues relating to aging-in-place. Convalescent care, assisted living, and respite care are just a few of the concerns active retirement communities have considered. Proactive retirees looking for that all-in-one community can downsize to a home-like environment. Staffed by medical professionals, all health concerns are attended to, while remaining in the same community. There is no need to pack up and move to accommodate growing health concerns.

Preparing for such a transition can be daunting, however when you consider the array of activities and opportunities that are available when you downsize, it becomes easier to prepare for the next chapter in life.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Wednesday, November 28, 2012

Helena Talbot's blog - Top 3 Foreclosure Myths That Keep Potential Homebuyers Away

Bad things can happen to good people and we’ve seen this many times, especially when it comes to owning real estate. Many people get themselves into situations beyond their means and the end result in real estate is often foreclosure. Yet, this opens the doors to incredible opportunities to purchase a home at a bargain.

Just about every consumer has heard about buying a foreclosure yet many shy away from these types of transactions because of misconceptions. Foreclosures are abundant in the marketplace and can save you anywhere from 20 to 40 percent off the selling price; sometimes more.

Are you hesitant to purchase a foreclosed property?

1 – Foreclosures are only found in the bad neighborhoods. This is certainly not true. Foreclosures can occur anywhere. People have mistakenly assumed that foreclosures are always the result of financial irresponsibility and this usually occurs in more crime ridden neighborhoods. Foreclosures have been caused by divorce, medical and health problems, predatory lending and death, just to name a few. Everything from estate homes and undisturbed lots to townhomes, condos and mobile homes have been foreclosed upon. Real estate agents have access to lists containing all the foreclosed properties available for sale.

Myth #2 – I must attend the auction to buy the property

Foreclosure notices are published for several weeks before the auction. This in-between period is referred to as the pre-foreclosure. Real estate agents can easily find homeowners in the early stages of foreclosure and work out a deal. Buying a pre-foreclosure does have its advantages. The homeowner is a bit more desperate to avoid the actual foreclosure. In addition, you are able to actually perform a walk-thru of the home and inspect before placing any contract.

3 – The only source of foreclosed properties is at courthouse auctions

Many potential homebuyers envision bidding on the courthouse steps to purchase a foreclosure. The fact is there are other opportunities to purchase a foreclosed property with less stress.

Lenders have an abundant inventory of foreclosed properties that never sold; these are referred to as REO properties. REO properties have several advantages;

• You can fully inspect these properties because in most cases the previous owners have already been evicted.

• You can bring a contractor with you to get a detailed list of what needs to be fixed and/or replaced and make an educated assessment of the property.

• Lenders are offering bargain-basement deals on these properties and since they are losing money on their inventory, they have an incentive to quickly sell.

No matter how hard you try when you’re buying any home there are risk involved. Taking on new challenges can be intimidating, yet buying a foreclosure isn’t so complicated that you should avoid this type of transaction. It only takes time and an experienced real estate agent.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Tuesday, November 27, 2012

Helena Talbot's blog - Retiring For The Budget-Conscious

Being budget conscious does not necessarily mean that you have to deprive yourself of an enjoyable retirement. Of course the more money you have to retire with, the less you’ll have to worry and the best way to boost your retirement fund is to start saving early. Even those with limited retirement funds can benefit from some smart planning.

Re-Evaluate what you need

The first step is to create a retirement spending plan – where do you stand? The most important thing to consider when you create your retirement spending plan is whether or not the plan is reasonable. If it’s not, you probably won’t stick to it.

Mistake #1; the biggest mistake prospective retirees make is when they do not take a hard look at their overall retirement situation. Is your nest egg enough to generate retirement income for the next decade or more? Take a good look at your retirement situation because it could be time to downsize.

How much annual income will you need during retirement?

Financial planners suggest that you’ll need about 75 to 85 percent of your pre-retirement gross income to maintain your current standard of living. Of course, this can vary according to your lifestyle.

During retirement, you will pay less in taxes, save less, and you should have less of a mortgage burden than you did while working. While many expenses will decrease during retirement, many will increase.

Mistake #2; one in 10 Americans choose to downsize early, at the onset of retirement. Early planning to downsize to more affordable lifestyles can save you thousands every year. Only recently during our economic downfall have Americans began planning for retirement sooner than later. Why wait until you’re under water and barely surviving?

The practical alternative is smaller

Who said you would have to sacrifice the amenities when you downsize? The American dream was built around the idea of bigger is better but lifestyles have changed and the aging population are opting out of the “big” notions and choosing to keep it small. Retirees are turning to alternatives.

Whether it’s one-floor ranch styled homes, modular homes and manufactured homes or perhaps a home on wheels, retirees have a bevy of options to reduce living expenses.

Think about this – retirees require only the basics for living, sleeping, cooking and bathing. Do you really need several bedrooms, a family room, dining room, basement and more? This only translates into more electricity, more rooms to clean and more expenses.

Smart seniors realize that small can be advantageous, especially to the pockets.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Monday, November 26, 2012

Helena Talbot's blog - Pricing A Home To Sell

Psychologically which price looks and feels better to you - $299 or $300? People generally feel like it’s more of a bargain with $299, although the difference is a mere dollar.

There’s a fair amount of psychology and strategy that goes into determining a home’s asking price and while you may have a price in mind, that doesn’t mean your home is priced to sell. It’s all about tapping into the mind of potential buyers and how they identify with your price.

The biggest hurdle is to determine a fair price for your home, sans any emotions. Ask any homeowner what their home is worth and the price will include all the memories that have gone into making a piece of property a home. Emotions have no place in this business practice.

It’s understood that sellers don’t want to simply give their homes away and everyone wants to sell for the maximum price, but buyers are seeking bargains and with an abundant inventory, sellers must be flexible.

The real estate agent will identify the approximate value of a property based on comparisons of similar properties sold in a neighborhood, the market conditions, competing surrounding properties, and the time of year. Once all of these elements are considered, the real estate agent will have a price range in mind.

Here are a few strategies for the seller to consider;

• Listen carefully to your agent’s pricing strategy – they are the experts. It’s their job to know what works and what doesn’t. And as with any strategy, be prepared to have an ongoing discussion about pricing with your real estate agent. If potential buyers are not biting, it may be time to re-think the asking price.

• By pricing your property on the average to the lower end of the price range, you will stimulate more interest among more than one buyer. Also, for those homeowners in a position to sell quickly, this would be a good option to get more offers. Sellers who list their homes too high miss out on a segment of buyers.

• Forget the creative pricing strategy - $488,888? Odd priced homes call attention to the price for no good reason. The goal is to showcase the property, and to appeal to as wide an audience as possible. Getting eccentric with your asking price counteracts the tried-and-true strategy of psychological pricing. Well thought out rounded figures work best - $299,000

A lot of factors can come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions you’re more likely to get the best price with the least aggravation.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Saturday, November 24, 2012

Helena Talbot's blog - Buying A home With A 620 FICO Score

If you're thinking about buying a home, you may have been discouraged by reports that mortgage lenders are now requiring high credit scores and large down payments. Lenders have undoubtedly tightened their standards, with many only approving mortgages to homebuyers with 720+ credit scores.

This doesn’t mean mortgage loans aren’t available for those with FICO scores in the 600s. There are FHA loans available that have lenient credit requirements. Additionally, there are state-sponsored programs that provide down payment and closing cost assistance, and the requirements are relaxed.

Every state has a Housing and Finance Authority with mortgage programs that provide assistance. It does vary state-to-state; however, lenders are familiar with different programs. While lending is almost always aimed at first-time home buyers, there are a small percentage of programs that don’t have that first-time homebuyer requirement.

Additionally, teachers, law enforcement and corrections officers, firefighters, nurses, emergency medical personnel and military veterans are offered a lower mortgage interest rate, down payment and closing cost assistance.

Are there judgment calls when it comes to a low FICO Score?

In short, yes there can be judgment calls made by the underwriter. Here’s why – there five factors that make up your FICO score.

1.Payment history takes into account whether or not you are paying your bills on time and for how long. This accounts for about 35 percent of your score.

2.Amounts owed are determined by adding up your outstanding balances and dividing by the credit available to you. You should owe less than 50 percent of the credit available to you.

3.Your length of credit history displays how long you have held your credit accounts. Lenders want to see that you pay off your debt over time.

4.New credit will account for 10 percent of your score. Never open new credit accounts when you’re about to apply for a new loan. This can adversely hurt your chances by decreasing your credit score.

5.The type of credit you use is also a determining factor.

While the lenders’ software determines if you meet the standard guidelines, the underwriter determines if you are a safe bet – will you pay back the loan without any fear of default.

So which factors are the credit killers?

High balances and late payments kill your chances at a mortgage loan. High balances drive up your debt to credit ratio and even those with the best FICO scores cannot get approved with a lot of debt. Late payments translate into an irresponsible adult. Lenders want to know they will receive their money on time, every month, without delay.

The biggest misconception about our economic downfall is that lenders are not approving mortgage loans. Discuss your options with a mortgage broker and a realtor to see what opportunities are available.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Friday, November 23, 2012

Helena Talbot's blog - The Top Six Questions That Will Help You Decide What To Offer

You have just found the home of your dreams; it has everything you have ever wanted and then some, but how do you know how much to offer without paying too much or offering too little. Well, this is the age old question that most people have when put in the same position. Well, that is what we are here to help you with.

Here are the top six questions to ask yourself when putting together an offer. These questions will help you get to a winning offer quickly.

1. What is the fair market value of the home? Check out the competing homes in the area and what they are going for but make sure you are comparing similar properties. Then find out how much those types of homes have sold for in that neighborhood over the past 90 days.

2. How much can you afford? You must make sure that you make an offer within the range of what is affordable for you. You will want to also stay within your pre-approval range as well. Does that neighborhood have HOA fees that you need to consider? If so, then prepare your offer accordingly.

3. Do you have competition? Your agent will need to check with the listing agent to find out if there are any competing offers. Even in this market there are some properties and some neighborhoods in which multiple offers are received. If this is the case, your agent will need to find out how many offers are on the table. If there are several offers, you will want to submit a higher offer.

4. Has the listing been reduced? Check to see if the listing has been reduced and by how much. Are the sellers motivated? How long has it been on the market? Are there other homes in the area with similar price reductions? How many days were there between each reduction?

5. What is the condition of the home? You will need to get a home inspection and find out how much each repair is going to cost and reduce your offer to accommodate those repairs. The seller is probably already aware that they will need to reduce the price of the home if extensive repairs are needed.

6. How much do you really want this house? Of course you should not submit an offer that is way above the asking price or above the fair market value unless you have money to burn. However, you may want to submit an offer that is closer to the asking price if you are really anxious to get the seller to accept your offer and not someone else's.

These are just a few questions that you should ask yourself before you sit down with your agent to put together an offer. Take the time to submit an offer that works for both you and the seller and before you know it, you will be living in your new home.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Wednesday, November 21, 2012

Helena Talbot's blog - Can You Afford A New Home

Buying a new home can be the most exciting thing you've ever done and it can also be the scariest! You need to think things through and look at the big picture. Write things down, weight out everything so that you don't become just another statistic. Here are some tips to deciding if you can afford to buy a new home.

1. How much can you afford? You should talk to a lender to help you with this question. They will talk to you about your income and your debts and together you can decide how much you can afford and how much they will lend you.

2. Get pre-approved for a loan. Once you have talked to a lender about your finances and your credit worthiness they will give you a pre-approval letter. A pre-approval letter will give you the upper hand once you find a home that you want to purchase.

3. It is a good idea to keep your monthly costs under 28% of your monthly pre-tax income. This should include what your mortgage payment will be. Don't forget to include the real estate taxes and insurance if they are not going to be included in your monthly mortgage payment.

4. If you have any long term debts like a student loan, car payments etc, then you should keep your monthly costs under 36% of your pre-tax income. This includes your monthly housing expenses.

5. Decide what type of loan you will be applying for such as Conventional, VA or FHA loan.

6. Decide what type of mortgage you will be using. Are you going to use a fixed rate mortgage or an adjustable rate mortgage (ARM)? If you decide to use an adjustable rate mortgage you must think ahead and plan for when the rates go up, because your mortgage payment will go up when the rates go up, depending on the terms of your agreement.

7. Consider homes in various price ranges.

8. Think about your future plans, perhaps you should purchase a home at the top of your price range. This will give you more time to outgrow your home and will save you money in the long run.

9. Make a budget. Write down every little expense you have - it all matters.

10. Look at your expenses. What do you really need? What can you do away with?

11. Plan for emergencies. Do you have savings? What will you do if an emergency arises? Be prepared, you don't want to lose that beautiful home you saved so long for.

12. Don't over extend yourself.

Ok, now you have thoroughly thought everything through and it's time to make a decision. Go ahead; make the decision one way or another. If you are not ready to buy, decide what it is you need to do to get to where you need to be. Either way, start talking to your realtor today!

Whatever it is start handling it now. The sooner you take care of business, the sooner you will be in your new home. If you are ready to buy don't procrastinate, because you never know when the rates will go up or when you will lose out on your perfect home.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Tuesday, November 20, 2012

Helena Talbot's blog - Buying A Second Home

Buying a second home - should you or shouldn't you - that is the question. Well, buying a second home could very well be the absolute best thing you have ever done but you have to do it for the right reasons. Let's talk about a few of the things you need to consider before making any quick decisions.

First you must ask yourself why you want to purchase a second home. Is it to invest in your future? Is it to use for a vacation home? Are you doing it for an additional income? The answer to these questions is critical so let's look at all of the facts.

If you are buying a second home as rental property to use as part of your retirement plan then you have made the right decision. Buying a home forces you to make regular savings in the form of a mortgage payment each month and that is money in the bank when it comes to a retirement fund.

You must make sure,however, that you have enough money to cover the mortgage payments plus any additional expenses such as repairs, yearly taxes and insurance, if they are not a part of your mortgage payment, and anything else that may arise. The good news is if you buy the right house at the right price, your rental property should always stay rented.

Another reason a second home as part of your retirement plan is a good idea is due to the fact that your investment money is subject to less income tax and the interest and taxes may be deductible. So planning ahead could pay off in a big way.

Housing, for the most part, appreciates over time. There are definitely ups and downs in the housing market but buying a home is a long term investment that can ride those tides very well. A home is an inflation proof investment.

The experts have predicted that both fixed rate and adjustable rate mortgages will probably remain in the single digits for the foreseeable future. Therefore, financing a home with a nominal down payment should remain achievable for quite some time.

Buying a home is very exciting and can be a very profitable experience but your decision cannot be made lightly. It is wise to give a lot of thought to why you want a second home, then make a financial plan and stick to it.

If you have some disposable income, then purchasing a vacation home may be just what you need to add a little spice to your life. Then by all means, go ahead and find the perfect house, buy it and enjoy.

Whatever the reason you want or need a second home, please think about your reasons, make a plan and follow through. It is also advisable to talk to a real estate agent about all of your options before diving in. A real estate agent can help you make the best decisions and could potentially save you thousands of dollars in the long run.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Monday, November 19, 2012

Helena Talbot's blog - The Facts About Financing A Second Home

Buying a second home is very exciting. This may be a home in the place where you vacation every year, somewhere that you like to go and relax and enjoy your time off. Perhaps you are looking for an investment opportunity. Whatever the case may be, here are some things to consider when it comes time to buy and finance your second home.

• It is a great time to buy a second home - the mortgage rates are low
• If you have a strong credit history you are guaranteed the best rates
• You can use the equity in your current home as a down payment or closing costs
• Lenders are offering some really affordable loan options right now
• Remember, the guidelines for how much you can quality for is based on 28% of your gross income
• If you are a long term homeowner, you may be able to borrow more than you think

A second home as an investment property is a fantastic idea. If you are looking for a way to save money for your retirement, this is it. A second home forces you to put away money every month in the form of a mortgage payment. When it comes time to retire, you can sell it or use the income, which could be significant if you have it paid off.

Another reason a second home as part of your retirement plan is a good idea is due to the fact that your investment money is subject to less income tax and the interest and taxes may be deductible. So planning ahead could pay off in a big way.

You must make sure; however, that you have enough money to cover the mortgage payments plus any additional expenses such as repairs, yearly taxes and insurance, if they are not a part of your mortgage payment, and anything else that may arise. The good news is if you buy the right house at the right price, your rental property should always stay rented.

So if you are able, don't hesitate to call your real estate agent and let them know that you are ready to buy a second home and they will move heaven and earth to help you find a home that fits your needs. Your realtor has "inside information" if you will, about all types of homes in all types of markets and some that are not even on the market yet. So take advantage of their wealth of knowledge and the next thing you know you will be vacationing in your second home or enjoying the benefits of all that extra income!

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Friday, November 16, 2012

Helena Talbot's blog - What You Must Know About Disclosures Before Selling Your Home

I don’t just mean the big purchases, but every single penny? In order to succeed, you must! In reality, you should need to vicious. Try looking at this case in another way. Let’s say that you receive a paycheck every week for $1000. You open the envelope each week and there you find the $1000 check. But one week, when you open the envelope, you find only $900.

What would you do? I suspect that you would be on the phone and finding out where the missing money went. I want you to become as attentive to your outflow as you are to your inflow!

The first thing you will need to do is take the time to list out your fixed and flexible expenses. Fixed expenses are items such as rent, mortgage, car payment and other regular installment payments that basically stay the same each month and for which you are committed for a period of time. Flexible expenses are the expenses that change from month to month such as food, clothing, and utilities. You have a bit more control over some of these items.

In order to create residual income, you are going to have to create an asset base, and to do so, you will have to consider reallocating your expenses. You will need to pay yourself first and NEVER dip into your asset money. Never, ever spend the principle. Don’t say you don’t have enough money. If you do, shame on you! Do something about it. Make more or spend less. This needs to be a zero sum game to some extent.

This means that you are going to have to take a look at how you are spending your money. Yes, every penny. As a people, Americans over consume. I am not suggesting that you should take draconian measures and live like a pauper for the rest of your life, but it may be necessary to make some adjustments.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Thursday, November 15, 2012

Helena Talbot's blog - What You Must Know About Disclosures Before Selling Your Home

Selling your home can be a very exciting time. You have enjoyed the time you have spent in your home and you will probably be somewhat sad when moving day comes. But don't make things worse by not knowing everything there is to know about giving a full disclosure about your home.

Your realtor will probably pound this in like a prosecutor; but there is a very good reason for giving full disclosure about your home. So what does "full disclosure" mean and why does my realtor keep warning me about this? Well, that is because your realtor is trying to keep you out of legal trouble.

What! Legal Trouble? How can my telling a little white lie get me into legal trouble? Well the fact of the matter is - it is the law - you must give full disclosure when selling your home. You must disclose anything and everything that might be wrong with your home before you sell it.

You have probably lived in your home for years and you know that is has some "quirks". No home is perfect, they all have something wrong with them; maybe just a few small things or maybe some really big things. It doesn't matter how big or small the issues are they must be disclosed before the sale.

So what exactly do you mean "everything"? Well, you know that little drip in the bathroom faucet, and the little fact that your dishwasher stops up from time to time, or perhaps the fact that your basement floods or your roof leaks but only when you get a heavy rain. Yep, that's the stuff I am talking about. When I say everything must be disclosed, I mean everything!

When it comes time to sell your home you have some options. You can make the repairs at your expense or you can let the buyers know up front what the problems are and let the buyers decide if they want them fixed. Just remember, if you don't get these items fixed before putting your home on the market, your buyers will probably come back with an offer on your home minus the cost of the repairs.

Most buyers will have a home inspection done; however, even if they don't, it is your responsibility to disclose any defects that you know about. A concealed problem may come back to haunt you after your closing. There have been many lawsuits that involve undisclosed defects. So it is in your best interest to disclose, disclose, disclose. Otherwise, the settlement of a lawsuit will make the cost of those repairs or price concession look like a real bargain!

Talk to your realtor and they will be able to assist you with the disclosure agreement. Your realtor will be your best friend throughout this entire process and beyond and is the best person to help keep you out of legal trouble.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

Wednesday, November 14, 2012

Helena Talbot's blog - Unique Ways To Fund Your Downpayment

One of the biggest concerns many people have when it comes to buying a home is coming up with the down payment. Or perhaps coming up with a down payment that is large enough to lower their monthly payment. These are very legitimate concerns ; therefore, we have come up with some unique ways to help you afford your down payment.

1. The most popular(and maybe not so unique) is to dip into your savings account

2. Hit up some of your friends - who knows what kind of money they have lying around

3. Ask all of your relatives - if all of your relatives can give a little, perhaps you can reciprocate the next time they need a favor

4. Check with your 401k administrator - in certain cases you can borrow some money from it without penalties

5. Look at your entire portfolio - do you have stock proceeds you can use or maybe you could sell some stocks to beef up your down payment

6. What assets to you have - do you have anything that you could sell to come up with that extra down payment

7. Sometimes, depending on the lender , a co-signer might be an option

8. Does your city offer any down payment subsidy programs - sometimes these subsidies are $5000 to $10,000 - this is free money - who doesn't want free money. This will also significantly lower your monthly payments as well

9. Some banks still offer zero percent down - which means you have no down payment - these are usually reserved for first time home buyers with extremely good credit

10. Perhaps you might consider a lease with an option to buy

11. Sometimes a seller is willing to fund part or all of your down payment just to get the deal - this is called a carry back mortgage - it will help the seller sell their home faster and help the buyer buy a home that they could not otherwise afford

12. Talk to your lender about a second mortgage

There are many, many ways to fund your down payment. Ask your realtor to help you come up with the options that will work best for you. You might be surprised at just how well versed they are in helping buyers reach their down payment goals. So use their experience to your advantage and don't let a little thing like a down payment get in your way.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.