When you buy a house or refinance your present home, your lender will ask you to pay for an appraisal to help ensure that the sales price and mortgage amount is consistent with the property's market value. The appraiser will look for "three caballeros" or three "comparables" -- homes that are very similar to the one you are buying -- and will make adjustments to reflect the differences between the properties.Housing patterns tend to be homogenous, meaning that homes worth $300,000 are usually located in $300,000 neighborhoods. It is important for properties to be within the general pricing patterns of their neighborhoods because over-valued homes, even if they are exceptional, are sometimes difficult to sell at full market price.This is not the only factor considered in determining the ... 05/01/2007

In loan terminology a "balloon" is the unpaid loan balance that must be paid in full on a specified due date. Federal savings and loan associations are permitted to make balloon mortgages with as little as five percent down and monthly payments that are smaller than the amount needed to fully amortize the debt. On the due date, which may be only a few years after the loan was made, the balance must be paid off or the loan must be renegotiated. Balloon borrowers must be cautious and plan carefully to avoid overlooking balloon payment obligations. It is easy to be lulled into complacency by the easy monthly payment terms.Today's complex economics have produced a wide variety of options for potential borrowers, who are often surprised by how much house they can afford to buy. Loan approval... 05/01/2007

Most real estate offers require an inspection by a licensed exterminator to determine that the house doesn't have termites or other wood boring insects. The inspector will look for two signs in deciding whether or not to pass a house--an active termite infestation and evidence of a past infestation. If your house does not pass the termite inspection, get a list of qualified exterminators from your real estate agent. Find out what treatment options they offer and what they charge for the service. Exterminators are usually quite competitive. If your home was treated for a past infestation, the company which performed the extermination may be willing to re-certify your home without a second treatment. Arrange for the termite inspection as early as possible, so you will have time to determi... 04/30/2007

Before you list your home for sale, take a careful look around. Are there some items you will want to take with you? There may be a dining room chandelier that has been in your family for three generations, a ceiling fan in the master bedroom, or the bookcases in the den that look built-in but are not.Normally all fixtures are conveyed to the new owners when a house is sold. This includes anything that is attached to walls or ceilings and, in some areas, all major appliances that are installed in the house. If you have fixtures that you don't want to convey, tell your agent what you want excluded from the agreement at the time you list your property for sale. If it is convenient, it is best to remove any light fixtures or ceiling fans you plan to take with you and replace them before th... 04/30/2007

You have just found a new home that you love and are planning to place your current home on the market. When the day arrives for your first open house, you begin to think of all of the things that could break down or go wrong. The air conditioner may stop working or your trusty old dishwasher might "bite the dust" the morning that the structural inspection is scheduled. Purchasing home warranty protection is one way to reduce these worries for you and your buyer.The most popular warranty plans cover the home from the time it is listed until one year after the closing date. Although the details of these policies vary, there is usually a standard deductible of $35 to $100 (this amount differs from state to state). Many sellers purchase these warranties to make their property more attracti... 04/29/2007

Unforeseen problems can arise during escrow, and closing dates are never set in stone! Lenders, appraisers, title attorneys, credit check services, or anyone who is involved in the transaction could potentially delay a closing. Stay in close touch with your real estate agent, who will notify you of deadlines and help you deal with delays.Well-written sales contracts are the key to avoiding problems during escrow. For example, provisions can be included in the agreement that require the buyer to provide evidence of sufficient funds for down payment and closing costs, or to present proof of the ability to obtain homeowner's insurance. Because of new restrictions on insurance policies, the mortgage lender may require insurance before funding the loan. There is also a section in the sales c... 04/28/2007

Real estate transactions are very complex, and difficulties can arise. One common form of interference can come in the innocent guise of helpful advice from family and friends. When you buy your first home, you want the best advice you can get. You want to show the house to friends and relatives before you commit. They will probably tell you about all of the things that went wrong during their own transactions so you can avoid the same mistakes. These people all have good intentions, but too much advice can put you into a state of high anxiety.If you are buying your home with the help of a professional real estate agent, your agent will know how to make sure that any minor upsets do not turn into major problems. A real estate agent's expertise is based on formal training and experience ... 04/27/2007

As you prepare your home for the market, keep in mind that some of the people who will look at your home may bring along small children. Families with children may be looking for a larger home with more bedrooms and a bigger yard.Prospective buyers will be accompanied by a real estate agent while touring your home, but that doesn't guarantee that the children will be supervised the entire time they are in your home. Every real estate agent has a story of a little person grabbing a Steuben apple from a low shelf, or of a toddler running full speed to the edge of a high deck. Preparing your home to show involves common sense, such as removing sharp or breakable objects from low shelves and making sure that electric appliances don't have dangling cords that little hands can reach. If there... 04/26/2007

Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate ... 04/26/2007

Finding an experienced, reliable real estate agent whom you like and trust is the first step in locating your new home. Here is an approach to finding the right agent. Call or stop by a real estate office and ask to speak with the manager. Describe the type of home you are looking for. The manager can refer you to an agent who knows that market very well. You might also use weekend "open houses" as opportunities to look for a real estate agent, as well as a new home. It is really a matter of chemistry! If you meet someone who is knowledgeable and with whom you feel comfortable, call that person!Once you establish a strong working relationship with a real estate agent, your agent can show you a number of homes for sale, even if they are listed with other companies. Often the agent can sh... 04/23/2007

I was speaking to a fellow agent the other day about where he spends his money on advertising and was shocked.  Our team fully believes in making sure that when a house is for-sale, to advertise it in many different locations.  This way you pickup buyers from everywhere.  I do not know of any other agents that put as much in advertising as we do and yet we still get a high rate of return on each dollar.This fellow agent was telling me about he advertises in a few different home books.  Here is the problem!  His home book looks like every other agents.  You could change the name and not even know which page is his.  I ask him how many calls does he get out his $1,000 a month.  He answered basically 0.  Hello spending $1,000 a month to get 0 calls is crazy.  I told him he should be gettin... 04/22/2007

Sometimes there are defects in a house that the homeowners no longer notice, such as small leaks in the roof or a basement that only gets damp when it rains. When the house is on the market, they don't have a real sense of urgency about having such defects repaired. The real estate agent feels quite differently, however.When buyers are deciding which houses deserve serious consideration, any kind of water problem may appear to be much more detrimental than it really is. The sellers may regard a damp basement as simply a sign that it's time to clean the gutters or check the soil buildup around the house or a leaking roof as a call for new flashing. But to someone who has never owned a home, these defects can be taken as signs that the house may not fulfill their primary need for shelter ... 04/18/2007

Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an "acquisition mortgage loan fee" on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.      Certain items don't qualify as deductions, but can be added to the cost basis of yo... 04/18/2007

You see them on cable TV, sitting around a swimming pool, sharing stories about how they got rich quick by buying valuable real estate for give-away prices. They took a course on how to invest in real estate and became millionaires overnight--with nothing down and no credit hassles from mortgage lenders. The course worked for them, and they say it will work for you, too.If all this sounds too good to be true--it is! These "get-rich-quick" courses and schemes are being investigated by consumer fraud agencies around the country. This does not mean that you can't become a millionaire by investing in real estate. But investing in real estate requires one important thing from you--an investment of cash. You can't build an empire overnight, but you can do very well over the long term by selec... 04/18/2007

Even with the changes in tax laws over recent years, you may be able to deduct some of the expenses of a move that is the result of a change in your job.You will probably be able to deduct the costs of your move if your new work location means more than an additional 50-mile commute, if you move within a year of taking the job at the new location, and if you work full-time for at least 39 weeks (the total is 78 weeks if you are self-employed). You should keep meticulous records of all of your expenses and consult a tax expert to make sure that you take all the lawful tax deductions allowed by the IRS criteria for expenses related to selling your old home or buying your new one. The IRS publication No. 521 entitled "Tax Information on Moving Expenses" makes good reading before you make a... 04/17/2007

Many homebuyers have experienced the alternating waves of excitement and regret that can occur when the real estate agent presents your offer to the sellers and they accept it. At first you will probably feel ecstatic--unless you wake up the next morning, covered with a rash and asking yourself, "What on earth have I just done?"Occasionally agents get a morning-after call from buyers who will do anything to get out of the commitment they just made. If you are purchasing a home and find yourself in this condition, there are two important things to remember. First, your rash accompanies a very common condition called "Buyers' Remorse". Almost everyone who buys a house experiences this feeling, with varying degrees of intensity, sometime between making the inital offer and finalizing the s... 04/17/2007

What is a PIMP.  Many agents are what I call a PIMPs.  These are agents at are not really looking out for the best interest of their client.  What they do is they come to your home, have you sign a contract and put a sign in your yard then never see them again.  They are PIMPS (Put In the Multi and Pray), they have no real system in place to sell the home.  They put your home on the local Muli Listing Service and nothing else.We have a very large, detailed system in place to make sure our sellers get the highest price in the least amount of time.  To get a free copy of "The 9 Most Costly Mistakes Even Smart People Make In Selling A Home" visit http://www.liveinclarkcounty.com/ or contact us at (360) 852-2154.The "J" Team 04/16/2007

  When a home is purchased, title insurance is one of the closing cost items on the closing statement. This insurance protects the buyer from defects in the title that are not discovered until after the closing. There are two kinds of title insurance--coverage that protects the lender for the balance of the mortgage if the buyers have a loan, and coverage that protects the buyers' equity in the property. It is prudent to purchase owners' coverage because most of the title problems that arise after a closing are not from a sloppy title search, but are the result of inaccurate information in the public records. The ownership chain goes back a long way, and fraud or misrepresentation anywhere in the chain could mean big problems. Title insurance will protect you if a wife or husband did no... 04/16/2007

This something every buyer should know.  When a buyer finds a home they are interested in most agents will just be excited and write up a contract as quick at they can.  We do not feel that this is in the best interest of the buyer.  We sit down with buyer and look at current home on the market, that are pending and homes that have sold.  This lets the buyer see what the see what homes are selling for.  This way they can decided if this a good buy for them.  I have seen many cases where after seeing all the facts the buyer decides to make a lower offer or decide to keep looking.  I have seen other cases where the buyer sees the home is great buy and feels better about their purchase.  If you would more helpful information feel free to contact us.  The "J" Team-  WWW.LIVEINCLARKCOUNTY.COM 04/15/2007

You must always be honest with your seller.  A few years ago you could over price a home and it would still sell with enough time.  When homes where going up 20-30% a year you could over price home $10,000- $20,000 and it would sell within 6 months.  In a 6 month time a home would go up $20,000 so you where ok.  This is no longer true.We are back in a normal market, homes are no longer going up 20-30% a year.  In todays market if you over price your home you will get sell you neighbors home.  Then your home will sit, the longer your home sits the less money you make.That is why you must always be honest with your your sellers.  That is one of reasons we sell so many homes for top dollar in the Vancouver area.  If you would like more information feel free to contact us.The "J" Team- WWW.... 04/15/2007