House Flipping Tips and Tools

by admin on March 19, 2012

House flipping has become a popular moneymaking adventure for many individuals. Whether one chooses to do it as a hobby or for a profitable source of income, house flipping has been increasing in popularity within the real estate community.

Below are a few wonderful tools to help you sort through the process of house flipping. One caveat: it is extremely advantageous if you are “handy” around the house.

House Flipping Tips and Tools

1)      Look for Distressed Housing

What does a distressed house look like? In order to pinpoint homes that need to be fixed up it is important to know what to look for. For example, homes with titles such as “must sell” or “vacant” are perfect candidates for home flipping. In order to select the right home for you, it is important you find one that you can afford to flip.

The more work you can do on your own, the better. And, it is important to hunt down the homes with little traffic or that have been on the market for an extended amount of time. By doing this, you guarantee yourself a deal with regards to the purchase of the home.

2)      Find the Right Contractor for the Right Price

Another great addition to flipping a home is to find the right contractor for you. What does this process entail? There are many items to consider when selecting the right contractor for the job you wish to accomplish. For example, the time it takes a contractor to do his or her job is crucial when time is money. Thus, it is important for a designated date and time to be set for when the job will be completed.

If a contractor takes longer than expected, it could be extremely detrimental to your success as a house flipper. Each day you have not sold the home, you are losing money and time that could be spent on another house. That can be stressful! The price for the contractor’s work is also important. You must make sure that what you are paying for the contractor does not exceed what you will profit from the home. Also remember that you must take the cost of the home into consideration so that you ensure a positive outcome.

3)      Remove Emotion and Personal Preferences

As a house flipper, it is important that you do not let your emotion dictate your decisions. What do I mean by this? If the money does not work out in your favor, walk away—even if you really believe in the potential of the home. Sometimes, house flippers will get caught up in a particular home due to emotional attachments, their love for the house, or countless other reasons.

However, it is when an individual gets caught up with emotional value of the house that the financial value gets overlooked. It is important to remain objective in the house flipping process. Second, you must steer clear from personal preferences when flipping a home. It is important you flip the home according to your buyer’s taste and what they would like to see in a home. Thus, you must research your target buyer in order to ensure a successful sell once the home has been remodeled.

4)      The Outside Matters

Finally, the outside matters just as much as the inside of the home. If an individual does not like what the house looks like from the outside, then why would they go into the house? It is important to focus on flipping the entire house, not just the inside.

Flipping a Coin or Flipping a Home?

Flipping a house is a very planned and processed business transaction. Thus, it is important that you know what you are doing rather than just getting lucky from time to time. Plan your business and make sure you have a strong team surrounding you. Remember, house flipping is only as successful as the person behind the operation.

About the author: Jim Klein is a Realtor in Fort Collins, CO and owner of FortCollinsHomeTeam.com, a useful website where you can search all Fort Collins homes for sale.

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Making Home Affordable Program (MHA): Options to Prevent Foreclosure

by admin on January 31, 2012

Making Home Affordable ProgramIt’s no secret that homeowners are struggling in today’s housing market. Falling home values have left many owing more than their property is worth. With the tight economy, there’s less money available to get the bills paid. Families who can’t afford their monthly mortgage payments are also unable to sell their homes. So, millions are facing the only remaining choice – foreclosure.

Making Home Affordable Program

In an effort to protect American homeowners, the Obama Administration developed a comprehensive set of tools focused on keeping people in their homes. There are now foreclosure alternatives to fit almost any situation. The Making Home Affordable Program (MHA) is made up of these options:

Bring Monthly Payments Down

  • Home Affordable Modification Program (HAMP) – This is designed for homeowners who are still working, but just can’t make ends meet. After verifying your income, monthly payments are reduced to 31% of your monthly gross income. Special versions of HAMP are in place for FHA, USDA, and VA loans as well.
  • Principal Reduction Alternative (PRA) – Eligible applicants whose homes are worth much less than they owe can qualify for a reduction in principal. This translates into savings on monthly payments, making it possible to stay in your home and avoid foreclosure.
  • Second Lien Modification Program (2MP) – Once your first mortgage has been modified through the HAMP program, you can see whether your second mortgage will also qualify.
  • Home Affordable Refinance Program (HARP) – If your payments are current, but your interest rate is high, and you can’t qualify for traditional refinancing, the HARP option will provide you with the benefits of today’s record breaking low mortgage interest rates.
  • FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance) – By rolling your loan into a low-interest FHA mortgage, you get the benefit of lower mortgage interest rates. The MHA provider works with your lender to ensure that your principal balance is reduced to a maximum of 97.75% of your home’s current market value.
  • Treasury/FHA Second Lien Program (FHA2LP) – For those that have a second mortgage, FHA2LP offers a companion to the FHA Short Refinance. Upon approval, your second mortgage may be reduced or eliminated altogether. The maximum amount you will owe with the two FHA products is 115% of your home’s current value.
  • Home Affordable Unemployment Program (UP) – With the unemployment rate holding steady and the job market still in distress, it’s harder and harder to for many US homeowners to make mortgage payments on reduced incomes. This program brings your monthly obligation to 31% of your income, or in extreme circumstances, it defers your mortgage payments to help you get by.
  • Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF) – This fund has made available more than $7.6 billion to assist homeowners in the areas where the housing market has taken the most dramatic downturns.
  • Home Affordable Foreclosure Alternatives (HAFA) – Sometimes maintaining monthly mortgage payments is too much to handle. Or, maybe you’ve decided that this is not the right time for the stress of owning a home. Foreclosure has a destructive effect on your credit report. That’s why MHA has created choices that allow you to leave your home gracefully – without the negative impact that foreclosure brings. The program even provides you with a $3,000 stipend to assist you in securing new, more affordable housing.

Get MHA Assistance Now

Don’t delay getting mortgage assistance to save your home. The earlier you explore your options, the more choices you’ll have. Talk to your lender, or visit www.makinghomeaffordable.gov for more information.

Article provided by Jolenta Averill. Jolenta has years of experience helping sellers in the Madison WI real estate market and can be reached on her website. You can also follow Jolenta on her Madison real estate blog or search all homes for sale in Madison WI.

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Should You Buy a Home Warranty?

by admin on January 17, 2012

Should You Buy a Home WarrantyI once had a friend whose new home warranty saved him several thousand dollars.  Just a few short years after moving into his home, he started to notice problems with the home’s deck, including the growth of mold from the boards.  He first called the builder, who came over and inspected the deck, and told him that nothing was wrong with it at all.

Should You Buy a Home Warranty?

Fast forward two years later, and the problems with the deck continued.  Four surrounding neighbors reported a similar problem.  The HOA for the community proceeded to band together and insist that the home warranty company fix the decks.  Under the original home warranty that my friend purchased, any workmanship to the home was covered for the initial two years, and any engineering and structural problems were covered for a decade.

The builder of course argued that the issue with the deck was not covered, but the architect who originally designed the string of homes on that block determined that the problem was, in fact, structural.  The cost to repair the deck was over $20K.  That warranty definitely paid for itself, if he had bought it to start with. Fortunately for him, it was included in the price of his home, so he wasn’t out anything to purchase it.

A New Home Warranty Gives Peace Of Mind

New home warranties give you one thing, if nothing else, peace of mind.  A home warranty guarantees you that if something goes awry in the initial years after you take possession of the home, you are covered.  With new home constructions, the warranty is sometimes included, and some states require that developers and builders provide one.  Other states don’t have such a requirement, unfortunately, but the added cost is money well spent.

When buying a home, be sure that you get a copy of the home’s warranty before you take possession of the property.  Read your home warranty carefully.  Find out what’s covered, what’s not, and who you need to contact if something goes wrong with your home, or anything inside or around it.

Be Sure To Know What Your Home Warranty Covers

Be Sure To Know What Your Home Warranty CoversMost home warranties will cover the workmanship, materials, and so forth, as related to the home’s components and systems, including the air conditioning system and the heating system, the plumbing, windows, electrical, structure and so on.

Cosmetic problems like drywall that cracks, bricks that fall off, and so forth, are not covered under most builder warranties for new home construction unless it was caused by a structural defect and coverd under the structural warranty period (commonly 10 years in California, but check the paperwork).”

The warranty should also spell out how the warranty company will handle any claim that you bring about, whether by replacing or repairing the item in question.  This is oftentimes a big issue between home warranty companies and the homeowners who purchase their warranties.  Homeowners believe that items should be totally rebuilt or replaced if a problem occurs, but the warranty company usually wants to go the cheaper route by repairing the problems instead.

A home warranty is more like a service agreement on your home than an insurance policy that guards against you being out money to fix things that tear up.  If you look at it like that, then the role that the home warranty plays in homeownership becomes clearer.

If you’re interested in learning more about the home buying process from Vickie Nagy, you can check out her San Ramon real estate website where you have access to homes in Danville and real estate in Dublin.

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Pets Abandoned Due to Foreclosure

by admin on January 17, 2012

Pets Abandoned Due to ForeclosureI’ve read a lot of sad stories about pets who were abandoned when their owner’s homes were foreclosed upon.  I have known some Realtors who go to great lengths to save these abandoned animals that are sometimes left inside the house after the owner locks it up – and takes the key!

How cruel and thoughtless can you be, really?  Fortunately, there are some great groups out there, many of them that were started by Real Estate Agents, that are working to save the thousands of cats, dogs, and other pets that are left behind when their owners can no longer afford to keep their home.

Pets Abandoned Due to Foreclosure

My question usually is – why don’t these pet owners simply look for a new owner for the pet, or at least have the decency to abandon it at a shelter?  That’s a far better alternative to leaving them inside the foreclosed home without water or food, or where it can be cold or hot.  In extreme heat, a dog can die within a matter of days, and can become dehydrated in just one day.  Abandoning the pet in a shelter at least gives it a fifty/fifty chance at life.  Sometimes homeowners see their pets as property instead of a living, breathing thing.  This can often lead them to feel no remorse in leaving their pets to the mercy of others or to whatever fate they might have when abandoned.

The law, at least in most states, sees the pet as property, too.  This is why pets have no rights.  And when left behind, the pet is subject to be seized, like property, by the lender who now owns the home.  Most lenders, however, do not have the inclination to take care of pets.  But the sad reality is that since the pet is personal property, the lender or an agent working on his behalf cannot remove the pet from the home until a period of time has passed.

Solutions For Those Looking To Take Care Of Their Pets

If you are a homeowner who is facing foreclosure, or a renter who has been evicted due to foreclosure, you need to take steps to ensure your pet’s safety and health.  You have options:

Find the pet a new home.  Put the pet on Craigslist.Org, or other online classified.  Ask friends and family to adopt the pet.  Many times you can find someone who will love the pet and care for it; it just takes some time and effort.

Look for organizations in your area that shelter pets that are in this type of situation.  Some rescue groups will foster the pet until you find a place to live, and then you can return and get the pet back.  One such organization serves the Phoenix, Arizona area, and is called the Lost Our Home Foundation.  This non-profit organization has saved more than 1200 pets abandoned at foreclosure, just from within the Phoenix metro area, and has helped to feed an additional 7000.  Yes, the problem is really that big.

Take your pet to a shelter. Although one-half of all animals that end up abandoned at local animal shelters end up being euthanized due to the lack of funding for stray dogs and cats, it still gives the animal a shot at finding a “forever” home.

Whatever you do, don’t abandon your pet in your home or to the streets!

About the author: Linda Wise is a pet friendly Realtor servicing buyers and sellers in the Melbourne Beach FL real estate market. You can get to know Linda and her team by visiting her Rockledge FL real estate page and search Port St. John FL real estate listings.

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First Time Homebuyers: Six Tips for Knowing You Are Ready

by admin on January 13, 2012

First Time Homebuyers Six Tips for Knowing You Are ReadyPurchasing your first home can be a scary experience. But, it doesn’t have to be frustrating. Some people plan for years to become first time homebuyers, while others seem to do it much faster. Either way, you should be wise and make sure you’re ready before you make that leap. Here are six great tips for helping you know when you’re ready to buy your first home:

  1. Market Education – Have you been looking at houses online? Have you familiarized yourself about housing prices in your selected neighborhoods? Do you have a realistic idea of how much you will have to pay to buy a home? If so, you’ve conquered the first step. First time homebuyers should be actively researching real estate housing market information that will prepare them for their home buying experience.
  3. Cash Available – You should be saving money to cover your down payment and closing costs. Down payments required by mortgage lenders are generally between three to twenty percent of the purchase price. Private mortgage insurance, also known as PMI, may also be required if you have less than twenty percent to put down. Closing costs are anything that must be paid before escrow closes. They usually include prepaid property taxes, points, title insurance and other costs of financing the loan. This is usually two to seven percent of the property’s value.
  4. Prepare a Monthly Budget – You should already have a general idea of the monthly mortgage payment you can afford comfortably. According to Freddie Mac, your monthly payment should be no more than 25 percent of your gross monthly income. Also, your debt, including credit cards, auto loans, child support, and so on, shouldn’t exceed 30 to 40 percent of your gross monthly income.
  5. Other Expenses – It’s important for first time homebuyers to know that other expenses will come with being a homeowner. Some of these miscellaneous costs include utilities, homeowners insurance and property maintenance like roof repairs, plumbing, landscaping, and painting, heating and cooling.
  6. Good Credit – Although programs do exist for first time homebuyers with credit issues, your home buying experience would be so much easier if you have good credit. Your credit report is the first thing lenders learn about you. It’s the first impression you make to them as they run your credit before even discussing loan options with you. Your credit score, also known as FICO, is based on your current debt, how many credit accounts are open, your payment history, and other factors. These scores are based on reports from Experian, Equifax and Trans-Union. As a potential homebuyer, you should make it a point to check all three of yours regularly.
  7. No New Debt – Lenders want to know that first time homebuyers are serious about buying and keeping a home. They need to know that you are not making any drastic financial decisions that can jeopardize you being able to make your monthly mortgage payments on time. The best way to prove this to them is by not making any new, major purchases, especially a new car. This can seriously damage your chances of getting approved for a home loan.

When you’re ready to purchase a home, you’ll know it in your mind and heart. Just be sure you’re ready, technically. Look for these signs to help you decide when it’s the right time for you. These tips will help you be prepared when approaching a lender for a mortgage loan to become a first time homebuyer.

Article provided by Paula Henry, a Carmel Indiana Realtor. If you’re interested in learning more about buying or selling a home in Carmel, visit her Indianapolis Real Estate Blog or search homes for sale in Carmel Indiana on her website.

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Budgeting For Homeownership

by admin on January 11, 2012

Budgeting For HomeownershipSo you’ve decided to buy a home. There’s never been a better time to buy.  The market is loaded with properties that are priced to sell.  Inventory is above average, and mortgage rates are super low.

Budgeting for homeownership means that you are aware of all of your upcoming expenses, so that you don’t end up with a home that you cannot afford.  Your loan officer and real estate agent will go over your budget with you before a decision is made on which price range you can borrow within.  But you should also take into consideration some of the “extras” that many would-be homeowners sometimes don’t think about.

Budgeting For Homeownership

First of all, you may be required to pay homeowner’s association dues each month, quarter, or year.  These dues cover a lot of different things.

It is estimated that more than fifty million people live in homes that are located in developments that are governed by homeowner’s associations or HOAs.  If you are about the join their ranks, then you need to know that being a member of the association comes at a price. You will likely pay dues each month.

Before buying a home that is governed by an HOA, you want to know how much it is going to cost you each month to be a member of the HOA, and whether or not that cost has gone up a lot over the years.  Do the dues that you pay cover things like water, television service, trash service, sewer service, ground maintenance, landscaping, gate access, and fees for use of pools, fitness centers, or spas, or other community amenities?  If not, what do they cover?

What Do HOAs Cover?

What Do HOAs CoverMost HOAs charge a monthly fee that may be as low as $20, while others may be several hundred dollars.  This should be factored into your budget. After all, when you become a homeowner, you are taking on a mortgage payment already – so planning on paying these dues can help you determine affordability.

Next up is home insurance.  Buying home insurance isn’t just a good idea to protect your investment, your property, and so on, but it is also a requirement that all lenders have, since they are looking to protect their investment, too.  As part of your loan agreement, you will have to purchase and maintain home insurance on your property.  Factor that cost into your budget, too.

Property taxes take another hit on the budget.  Be prepared to pay your property taxes each year to the county where your home is located.  Property tax is based on the assessed value of your home and the tax rate in your location.  At minimum, you likely need to come up with an additional $1K per year for property taxes, but that can be substantially more.  The bank also requires that you pay these taxes as a condition of the loan, since they don’t want to get stuck with the tax bill if your loan should go into default.

And last of all is maintenance.  You will need to maintain the home and property, and that can get expensive.  If water pipes burst, or your electrical system has a problem, you will need to absorb those costs and make those repairs. That’s why most homeowners should invest in a home warranty.

These are just some of the other “joys” of  owning a home that not everyone talks about – but that a smart and savvy homebuyer needs to be aware of, nonetheless.

This article was provided by Kimberley Joy Kelly a Realtor in Palm Springs & La Quinta. If you want to learn more about Kim I would recommend you visit her personal blog. You can also search for some fantastic homes on her website using the MLS search option.

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Bruce Willis’s Idaho Luxury Estate for Sale

by admin on January 8, 2012

Bruce WillisJohn McCLane is selling is Hailey, Idaho ski home. No, not really. But, the man who plays the “Die Hard” movie character is.

If you’re in the market for an exquisite piece of real estate, Bruce Willis has put the 6 bedrooms, 7 baths, 8,400 square-foot home on the market, stating that he hardly ever spends time in Idaho anymore. The Hollywood tough guy has also put his bar and nightclub in downtown Hailey for sale.

Willis acquired the property back in 2003, not long after his divorce from actress Demi Moore; the couple were married for 13 years and have 3 girls. He did substantial renovation work to the property adding many indoor and outdoor amenities, turning the property into a very charming and luxurious mountain home.

Bruce Willis’s Idaho Luxury Estate for Sale

The property is listed by Sotheby’s International Realty. It is a 20-acre lakefront ranch and is nestled in a wooded area that provides privacy as well breathtaking scenery. The property is an exquisitely designed home that features multiple ponds, flowing streams and a custom pool together with waterfalls and slides.

The property is a haven for skiing, biking, and hiking, live theater and music are only a few minutes away. Upon entering the home, you are greeted by a massive foyer which opens onto a spacious, sunken living area that includes 2 rock fireplaces.

Beautiful sunrises can be enjoyed in a breakfast nook surrounded by windows which also provide a view of the lake. The gourmet kitchen offers plenty of room to work as well as 2 Traulsen refrigerators, large pantry, two dishwashers, a dual oven six-burner stove, under counter lighting, glass cabinets and an island complete with an eating bar.

7 Bath-8,400 Square Foot Luxury Estate!

Bruce Willis's Idaho Luxury Estate for SaleThe master suite comes complete with a gas fireplace, 2 heated decks, a seating area, bookshelves, a built-in desk, and 2 heated decks. The master bathroom comes with a jetted soaking tub, dual sinks, and a custom mechanical walk-in closet fitted with shelves and built-in dressers.

Additional features included in the home are heated driveway, heated pavers which surround the entire property, security system, gated entry, gym, high ceilings, surround sound, his and hers master bathrooms, intercom system, paved road, control panel for the entire home, 2 wells, and 4 boiler systems.

The property also includes a detached small guest house. The estate is truly luxury at its finest, and is offered at $15 million.

Although the property is owned by Bruce Willis, his ex-wife has been known to periodically visit the estate, after the divorce, with her current husband Ashton Kutcher. In fact, Moore and Kutcher have been welcomed in other homes of Willis’s as well. In 2009, they traveled to his Parrot Cay beach home to attend his wedding to actress and model Emma Heming. Willis maintains a very amicable relationship with Moore, and considers Kutcher an extension of his family and the stepfather of his three daughters.

Willis owns other properties including a home in Malibu,  a ranch in Montana, and a beach home in Parrot Cay in Turks and Caicos. He also rents an apartment in New York’s Trump Tower.

Article provided by Mitch Ribak a Real Estate Melbourne specialist who helps home buyer’s find Satellite Beach FL real estate including many other areas in Florida like the fantastic homes in Cocoa Florida.

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How to Price Your Home to Sell

by admin on January 8, 2012

How to Price Your Home to SellTo understand “fair market value”, you have to look into the meaning of comparable prices.  Comparable prices are the major factor that determines the fair market value of a home. When buying a home in a neighborhood the value is determined by recent sales of homes in the same area.

Houses that are similar in size (floor plan) and with similar rooms, for example, a dining room, a kitchen, two bathrooms, a lounge and four bedrooms, is also a factor. The most important factor of the comparable prices is the current market. The value of a property cannot be based on historical data.

How To Price Your Home To Sell

There are more aspects that can influence the market value such as the condition and the location of the property. To get an idea of what to consider, the following list can be of help:

  • The proximity to amenities.
  • A home with an obstructed view is worth less than a home with a view of mountains, the ocean or a lake.
  • Noise polluted area.
  • Is the property situated close to busy roads where heavy, continuous streams of motor vehicle traffic occur?
  • The condition of the roof and the exterior of the house.
  • The interior condition of the walls, window frames, doors, ceiling and plumbing,
  • The condition of the electrical compliance.
  • The size or square footage of the home.
  • The security systems installed.
  • A well established garden and swimming pool will add to the value of the property, if that is what the buyer finds appealing.

Tips for Pricing Your Home

Pricing your home doesn’t have to be so technical that you need a real estate degree to do it. Although a qualified realtor would be able to assist you better, here are three tips to help you price your home to sale:

  • Don’t Take It Personal –  Don’t price your home based on your personal likes, memories made in the home, or even based on the price you paid for it. None of this is relevant to a potential buyer. Their goal is to get into a home, so that they can begin to create their own memories.
  • Calculate by Square Footage – You can easily go online to see what the going rate is in your area. Do your own comparisons. Locate homes, similar to yours, that have sold in your area recently. Use the square footage prices to set a basis for your own pricing.
  • Make the Terms More Attractive – This may include a shorter escrow time for those wanting to move fast… seller-financing for buyers with cash, but have credit issues… lease option to purchase for potential buyers that need more time to save for their down payment. Creative and flexible selling terms tend to attract more buyers.

Your Real Estate Agent is fully equipped to help you calculate the fair market value of a home. Just remember, they are not in charge. The final word belongs to you, the seller. But, it helps to know what factors help set the fair market values. These tips should help to point you in the right direction to price your home to sell.

Article provided by Allison Klein a Fort Collins CO real estate agent who specializes in many of the local Fort Collins neighborhoods including Old Town Fort Collins real estate and Observatory Village homes for sale.

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