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Over the years I have been asked so many good questions from prospective buyers and sellers that I thought it might be appropriate to answer a few Of them in this newsletter. If you have any questions of your own don't hesitate to call, write, or email, and I will do my best to give you an answer or get you to the write source.
Q1: We have cosigned a note but make no payment how will this impact our ability to borrow?
Al: In this situation a lender will want to understand your financial liability. One issue will concern how the house is secured. The second issue usually has to do with payments. If you are making payments, they will reflect as a cost to you, thereby reducing your ability to borrow. If you are not making payments, the better for you, twelve original canceled checks will suffice as evidence that you are not making the payments.
Q2: What is an "as is' sale?
A2: An "as is" property is sold without a warranty as to condition, repairs, or structure. With an "as is" sale the purchaser is on notice that the seller is making no promises as to the property's physical status. Under these circumstances it would be extremely difficult to make a claim against a seller if something were found to be wrong with the property after closing. The "as is" clause makes a thorough inspection to purchasers satisfaction more critical than ever.
Q3: How much equity do I need to refinance?
A3: Generally, a minimum of 5%. However, there are home equity loans' which allow you to finance 100% of your equity, but consider costs, terms, and rates.
Q4: Do I really need help buying or selling a home?
A4: Real Estate transactions are often more complex than they seem, especially in recent years, for that reason alone it makes sense to have professional assistance. A seller should have a real estate broker, possibly an attorney, and a tax professional. A buyer will want a buyers broker, a home inspector, lender, and sometimes more. A lender may want a surveyor and an insurance agent for example. Why so many folks? As I said the transfer of real estate is a complex issue and involves a variety of needs that must be protected, particularly yours. Compared to the cost of fixing problems after the fact, it is much cheaper to get help and do it right up front.
Q5: We are refinancing our home. I think the tender's appraisal of my home is to low. What can I do to show a higher value?
A5: First, call the appraiser and ask if the matter can be discussed. An appraisal is an independent measure of value, and opinions can differ, particularly with properties that are unique in terms of size, location, and condition. Another thing locally has been the recent highs and lows that seem to be naturally occurring in the market place. One should simply say that they felt the appraisal should be higher and would like to see how the appraisal was determined. Be respectful --- the appraiser has no stake in the transaction. Most of them are willing to discuss their report. If you are not satisfied with the appraiser, then discuss it with your lender. The other possibilities are a new appraisal (more money) or a new lender.
Q6: Must real estate brokers disclose the fact that they are licensed when they buy or sell for themselves?
A6: All states license the practice of real estate brokerage. Typically a provision of such laws is that the real estate licensee must disclose his status when they buy or sell for themselves, or any immediate member of their family, including wife, parent, or child. The logic behind such disclosure rules is that by virtue of their license, the licensee is presumed to have a market place advantage over those that don't have such a background. The disclosure is designed to help 'level the playing field".
All these are quick answers that don't take into account specific circumstances' that make a problem someone's in particular. If you have a question or wish for a more refined answer, subject to your situation, please call me. I will either answer or find the person that can help you out. |
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