July 16th, 2010

Buying a Home Step 4: Make an Offer

This is where our Realtors shine. Having closed more deals than 90% of Realtors out there our agents specialize in negotiating the best possible terms for our buyers. We offer clear, concise, and unbiased advice including you in every step of our thought process.

When you are ready to make an offer the best thing you can do is arm yourself with data. Your Realtor will provide you with a Competitive Market Analysis and help you understand what it all means.

Elements of a CMA

· Location in relation to your target home, you generally want to keep comps within 1-2 miles. (this will not apply to unique homes)

· Time Frame: In most normal situations you do not want to compare comps over six months old if there is more recent data available.

· Size: You want to compare finished square feet in a home to one another. Add or subtract value based on the size of the home.

· Renovations: Make sure you try to see pictures of comparable homes that have sold (so you don’t miss that $50,000 addition in the back). Have your Realtor send you the old MLS listing for comparable homes.

· Market Trends: Have homes in your target area gone up or down in the last six months? Make sure you understand what is happening in your market on a local level.

· Active/Under Contract: Make sure you know what comparable homes are under contract and available in your target area.

Besides the offer price, there are several other important terms that can make your offer more or less appealing. Below are the variables that are usually included in an offer:

1. Type of Financing: This is where you break down the type of loan you intend on getting and what your down payment will be.

2. Seller Subsidy: You can ask the seller to contribute to your closing cost. At the end of the day, the seller’s net take home is what is important. An offer of $515,000 with a $15,000 subsidy is the same as an offer of $500,000.

3. EMD or Earnest Money Deposit: Known in some markets as a “Good Faith Deposit”. This is intended to show the seller you are earnest in your attempt to purchase the property and is what you are putting on the line if you default. Generally 2-5% of the sales price, but there is no fixed or ‘traditional’ amount.

4. Settlement Date: Check with your lender on how long you can lock your rate; this will help you determine a closing date. Generally 30-60 days from contract is normal for closing.

5. Termite and Wood Destroying Inspections: In most areas the sellers are contractually obligated to remedy any wood destroying pest and repair any damaged caused, this is not negotiable from the seller’s perspective. This does not apply to “As-Is” sales. Done within 30 days of settlement.

6. Finance Contingency: This is the amount of time you have to ensure your financing is in order. The shorter the time frame, the better. You do not have to get your loan at this time, you just have to get a commitment from a lender that they will give you a loan. Generally 7-21 days

7. Appraisal Contingency: This is the amount of time you have to ensure the home will appraise for your sales price or higher. Your lender is responsible for ordering the appraisal and you should generally order it as soon as possible. If the home appraises for less than the sales price you have the right to request a lower sales price and if the seller declines you can void the contract. A minimum of 21 days is suggested for an appraisal contingency.

8. Inspection Contingencies: Many homes will only need a general home inspection but sometimes other inspections are necessary. These include but are not limited to Radon, Well, Septic, and Pool inspections. Depending on the amount of inspections necessary, 7-10 days is generally suffice to get inspections done.

9. Common Misc Terms: Other common items in a contract include the breakdown and payment of Government fees and taxes, home warranties, and response deadlines.

Once both parties come to an agreement and there are no further changes to the contract you will be ratified. All contingency deadlines start the day of ratification.


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July 6th, 2010

Buying a Home Step 3: Find a Home

The ‘fun’ part of the home buying process is finally getting out there and looking at homes. Use our MLS search to identify homes that are for sale. Do not rely on a Realtor to find you a house (there are exceptions), but instead be proactive and identify homes you want to take a look at. It is not enough to look at listings online, get out there and drive potential neighborhoods, talk to neighbors, and test the commute. Once you identify homes you want to see, call us to arrange a tour:

Here are some helpful things to look for when visiting homes:

1. From the walk up: Curb appeal, landscaping, road noise and traffic, wood rot, broken siding, water drainage, cracked concrete and other signs of ignored maintenance.

2. Inside: Patched ceilings, age of windows, age of HVAC units, and age of appliances. These items are generally expensive and should be taken into consideration when determining the value of the home.

3. Floor Plan: Is it open and modern or are you going to tear down walls? Notice: High ceilings, sunlight, storage, bedroom sizes.

It’s a good idea to bring a camera and a note pad to snap pictures and take notes. Set the camera to its lowest setting so you can snap several low res images quickly.

Make a note of staged homes and make an extra effort to look past the furniture and art. The reality is you will probably know the moment you walk into a home whether you like it or not, spend more time in the homes you like and save time in the homes you don’t. It’s easy to get burned out when looking at homes; it’s generally a good idea to keep tours to less than 3 hours.

Our agents have seen thousands of homes and can help identify pit falls in a house and positive aspects. Visit our Realtors page to learn more.

Remember we offer the largest Realtor rebate in DC, MD, and Virginia. Our MLS Search contains every home on the market and is updated every 30 minutes. Leave house hunting tips below!

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June 17th, 2010

Buying a Home Step 2: Find a Realtor

This may be the single most important step when buying a home. A good Realtor will help facilitate a home purchase that may or may not get you everything you want. A GREAT Realtor will save you thousands of dollars up front in negotiating, time and stress when dealing with home inspection negotiations, and huge savings with lenders and title companies.

Make sure you talk to a couple Realtors before you decide to work with one in particular. All Realtors are different and have different styles; you have to feel comfortable with your Realtor on a personal and professional level.

Here are some helpful questions to ask your Potential Realtor:

1. How long have you been a Realtor?

2. How many buyers have you successfully represented over the last three months?

3. Can I choose a few to randomly call for a referral?

4. What is your negotiating advantage? (Hard numbers here people!)

5. What type of Technology do you use? (If they don’t have a smart phone, run!)

6. What types of savings will I recognize using you as my Realtor?

Visit our Realtors page to meet some of the most talented and experienced buyer’s agents in DC, MD, and VA. We will never force you to sign a buyer’s agreement the first time we take you out to tour homes and you should be weary of a buyer’s agent who is eager to have you sign an exclusive agreement before getting to know each other.

For answers to the questions above from any of our Realtors, email us at info@i-agent.com.

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June 7th, 2010

Step 1: Get Pre-Approved

Lending standards and programs change daily. It is critical to establish as early as possible what you can comfortably afford when purchasing a home. Aim to spend no more than 25-33% of your monthly earnings on a mortgage payment.

Compare at least 2 lenders when shopping for a mortgage. Get referrals from friends and your Realtor. Pick up the phone and give them a call or fill out their online mortgage application online if they have one. If you belong to a credit union give them a call as well, as they may have special deals for their customers.

Other important things to consider when getting your pre-approval:

· Down Payment: The larger your down payment the better. Conventional loans usually require 10-20% down where an FHA loan requires as little as 3.5% down, and if you qualify for a VA loan you may not need a down payment.

· Closing Cost: What is your lender charging you? What are the government fees in the county you are purchasing in? Ask any lender you apply with for a “Good Faith Estimate” that outlines your cost. Plan on spending an additional 2-3% on closing cost on top of the sale price.

· Annual Property Taxes: Check your county’s public records online for tax rates and assessments, but taxes vary and cost about 1% of the assessed value.

· Homeowners Insurance: $50-100 a month covers the home and its belongings.

· HOA/Condo Association Fees: These fees vary and can be found in our search.

What you need when applying:

· Pay stubs and W2s (lenders are looking for income verification for two years)

· Two or three months of bank statements

· Self Employed applicants must provide 2 years of Tax Returns

The pre-approval process is painless and usually takes no more than 24 hours. Make sure to get a pre-approval letter from the lender so you are ready when it is time to make an offer.

Here are some helpful online tools that can help:

· Affordability Calculator (http://articles.moneycentral.msn.com/Banking/Loan/HomeAffordabilityCalculator.aspx)

· Mortgage Calculator (http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx)

· FHA Mortgage Calculator (http://www.fha.com/calculator_payments.cfm)

· Today’s Rates and Trends (http://www.zillow.com/mortgage/#{scid=mor-site-topnavmor})

· Free Annual Credit Report (https://www.annualcreditreport.com/cra/index.jsp)

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May 21st, 2010

If Stafford is your destination, we have the house for you!


I-Agent.com just received a gorgeous new listing in Stafford, VA. If you’re looking for a single family home in Stafford County, then search no further. 46 Poplar View Drive sits on 1.25 acres, boasts approx 5,300 finished square feet, and has 6 bedrooms and 4.5 baths. Our clients have done an amazing job renovating this property. Walk into a two story foyer with gorgeous hardwood floors and you will immediately feel at home. All of the light fixtures have been replaced over the last two years to give this home a modern feel. The kitchen features stainless steel appliances, granite counter tops, new cabinets, and ceramic tile flooring. There are five spacious bedrooms and three full baths on the upper level. The master bedroom has all the space you could ever ask for. We all know that a his and hers closet usually turns into a her clothes and her shoe closet. No need to worry men, there are a total of three closets in the master suite, I’m sure you can talk your way into reserving one for yourself! I could go on and on about this beautiful home that shows like a model but words won’t do this home justice. Come take a look at this home, it’s guaranteed to put a smile on your face from ear to ear!

If you would like to take a look, shoot an email over to showings@i-agent.com with your availability and contact info or call us at 1-866-529-0864!

Happy house hunting this weekend!

Zeeshan Kaba
www.i-agent.com
zeeshan@i-agent.com
twitter.com/i_agent
I-Agent Realty Inc. Realtor
Office: 1-866-529-0864
Direct: 703-926-7215
Fax: 866-565-1574

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May 21st, 2010

Reducing Uncertainty

Obama’s plan to help lower mortgage payments is still a mystery. It has been just more than a year since Obama’s programs were created to help get Americans out of their funk, but the jury is still out as to whether or not these programs have actually helped Americans. On the one hand, about 25 percent of those who have applied for help have received it. On the other hand, another 25 percent of those who applied for the programs have dropped out of the program during the trial phase. The remaining half of Americans who have applied for help are stuck in limbo somewhere.

The process involved in the programs has been criticized for not being quick enough. Many homeowners feel as if the mortgage companies simply want them to run around in circles until they get too frustrated to continue. Experts say that this practice has to stop. Mortgage companies need to expedite the program so that a quarter of applicants will not drop out during the trial phase.

Another issue is the theory that the programs are just delaying the inevitable. While some experts insist that these programs have helped reduce the number of foreclosures that would have occurred otherwise, detractors from the programs claim that they have simply delayed the inevitable; that the programs are just setting America back.

We are not in the place where we want to be right now. It is a time of questions and trepidation. Now, it is time to kick things up into high gear. It is time to reduce uncertainty.

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May 20th, 2010

BYOH

If you are in the market for a new home, then it would do you well to read the rest of this article.

The problem that many prospective home buyers are having nowadays is that there is nothing that fits the bill, so to speak. Some home buyers just can’t find that one dream home. Does this sound familiar? Do you constantly find that the homes in your area are either too cheap for you, or out of your price range altogether? If so, allow me to introduce to you a new option.

Buying a home is not always a necessity. Sometimes, the best option is to buy land, rather than a property. You may be thinking, that sounds like a lot of extra work. In reality, it is probably, on average, cheaper than buying a pre-existing home. Labor is cheap nowadays, and land is cheaper than it was during the housing boom of 2006. Just as it is with homes, the time is now to buy.

My point in telling you this is so nobody feels pigeon-holed. You may think that you are running out of options, but that couldn’t be farther from the truth. In reality, when one door closes, another is sure to open up. And that new door that has opened is the opportunity to build your own home. Don’t look past this as a solution to your problems.

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May 19th, 2010

Housing Index Rises

Things appear to be looking up. Or at least that’s the way that home buyers see it. The Housing Index rose to its highest level since 2007 when it increased by 3 points this past month.

The Housing Index operates on a scale of 1-100, 1 being the lowest possible buyer sentiment and 100 being the highest possible buyer sentiment. That means that any rating above 50 reflects a positive buyer sentiment.

So, what is the new value of the Housing Index? As it turns out, the mark rose 3 points to a rate of 22, which is the highest level since 2007. This way not seem to be an overwhelmingly-positive number, but when you consider the terrible couple of years that we have been having, 22 might as well be 50. In fact, the last time that we saw a Housing Index above 50 was in April 2006- aka the height of the housing boom.

What has caused this rise in fortunes? Well, the government’s incentives certainly have a lot to do with it. The tax credit, coupled with governmental programs designed to get American home buyers back on track, have gone a long way towards increasing buyer optimism. However, it will be interesting to see if buyer mentality will be so high once the momentary boom levels off due to the expiration of the tax credit.

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May 18th, 2010

Reducing Uncertainty

Obama’s plan to help lower mortgage payments is still a mystery. It has been just more than a year since Obama’s programs were created to help get Americans out of their funk, but the jury is still out as to whether or not these programs have actually helped Americans. On the one hand, about 25 percent of those who have applied for help have received it. On the other hand, another 25 percent of those who applied for the programs have dropped out of the program during the trial phase. The remaining half of Americans who have applied for help are stuck in limbo somewhere.

The process involved in the programs has been criticized for not being quick enough. Many homeowners feel as if the mortgage companies simply want them to run around in circles until they get too frustrated to continue. Experts say that this practice has to stop. Mortgage companies need to expedite the program so that a quarter of applicants will not drop out during the trial phase.

Another issue is the theory that the programs are just delaying the inevitable. While some experts insist that these programs have helped reduce the number of foreclosures that would have occurred otherwise, detractors from the programs claim that they have simply delayed the inevitable; that the programs are just setting America back.

We are not in the place where we want to be right now. It is a time of questions and trepidation. Now, it is time to kick things up into high gear. It is time to reduce uncertainty.

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May 15th, 2010

Under Control

Foreclosure rates have been high. No matter what has been occurring in the housing market, it seems as if the one thing that we could always count on was that foreclosures were up. Well, consider this the end of an era.

I don’t want to jinx it, but it appears as if we have hit a plateau as far as foreclosure proceedings go. Why am I so certain? Well, for one, we have seen an annual decrease in foreclosures for the first time since we began keeping track of the yearly statistic four years ago. That is a promising statistic. Foreclosures are down 9 percent from March, and 2 percent from last April. Things really appear to be looking up.

How can we explain this stroke of good luck? Recently, lenders have been slowing the pace of foreclosure proceedings in order to catch up on their work, so to speak. They have been trying to clean out what they have already began; rather than taking a whole new influx of properties, they have been focusing on selling properties that they have already foreclosed upon.

We saw a record number of foreclosures in 2009- 2 million, to be exact. However, those numbers are a thing of the past. Sure, we still have millions of homes with delinquent borrowers, but we are not going to even approach our record highs from last year. Now we can finally attempt to get the problem under control.

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