Wednesday, June 18, 2008

Get to Know the HomeOwners Association (HOA) Before You Buy

If you're thinking of moving into a community with a homeowners association (HOA), you need to learn its cost and what your payments will fund. Every HOA is unique and has its own rules and regulations. You will want to become familiar with them before you purchase your home.
By understanding the covenants, conditions, and restrictions of your HOA, you will know what to expect in regards to fees, meetings and policies. This will let you know where your dues are going and how to deal with a neighbor who is breaking the rules.
Don't Buy Until You Are Sure
Although some of the questions you may need to ask will vary according to your personal circumstances, there are many things everyone will want to know before moving into a new community. You will want to understand what, if any, regulations exist in regards to excessive noise or parking discrepancies. This will help you to avoid breaking the rules as well as inform you of who to notify in the event of a problem with a neighbor. You may also want information on board meetings or elections to help you stay involved with your HOA. Ask for a calendar of events as well as a fee schedule that itemizes what your dues cover.
Other common issues to address would be guidelines for outdoor landscaping and holiday decorations. For example, your HOA may only allow holiday lights to be up between November 15 and January 15 to prevent eyesores throughout the warmer months. Others may have stricter guidelines that regulate even the color of your house or texture of your driveway. Don't wait until you close on your home find out about these rules.
Does the HOA Match Your Lifestyle?
Depending on the area, there may be a specific lifestyle focus within the neighborhood. Many developments brand themselves as "family-friendly," so if you're seeking a retirement home with quiet streets with nary a tricycle in sight, be sure to ask your potential HOA first. Similarly, some communities focus on golf or equestrian lifestyles, which is great if this is what you are looking for. However, you may feel out of place if your interests are not the same as the rest of the community.
Ask the HOA About Other Possible Restrictions
Once you have covered the basics, think about any questions that involve your family's unique situation. Are there rules about pets? Find out about any breed, size or other limitations before you buy. There may very well be rules about leashing your dogs on walks, keeping aggressive animals and, of course, disposing of pet waste. If you have children, ask if there are curfews or other restrictions in effect on the community level. If the answers to your questions match your lifestyle, this home will be a good buy for you.

How to Avoid Home Owner Scams

Everywhere homeowners are being the victims of fraud through home repair costs. A vast majority of these victims are seniors. The home building industry has joined forces with the police and seniors groups to help identify fraudulent practices and avoid dishonest contractors.
So how do you stop this type of illegal activity? Through consumer education and vigorous action by police and the courts. Unfortunately seniors are the most targeted because of their willingness to trust strangers who sound sincere. Long gone are the trusted "handshake" deals. The old adage still applies, that when it sounds too good to be true, it probably is.
There is a set pattern that most dishonest contractors seem to follow. And it usually goes this way.
A person claiming to represent a home repair contractor will suddenly appear at your door. Because they explain, they are working in the neighbourhood and they noticed that your house is in need of repair. It could be anything from worn out shingles, old windows that need replacing, faulty bricks to driveway cracking. You then will be offered a "special discount" or a "seniors discount" because the contractor is in the area or has left over material from another job. But the catch is that in order to get this wonderful price, YOU HAVE TO ACT FAST!!
If you take the bait you will be asked to sign a contract, on the spot. Once signed you may also be asked to make a down payment towards the cost of the work. So what happens next? Well a number of things may happen.
Some people who hand over a substantial deposit find that the contractor "suddenly" disappears, never to be seen again. Or the work does get done but what you ended up paying is considerably higher than the normal market price. Or worse yet, he may start the job but not finish it. Costing you more money in the end to repair what he started.
Many police forces operate crime prevention programs aimed at helping seniors and other people to avoid getting scammed by this type of fraud.
So what type of contractors should you avoid? Well there are few warning signs to watch out for.
1. If they knock on your door offering you a special discount because they are in the neighbourhood.
2. Promise you a discount if they can use your house to advertise their work. Everyone else in your neighbourhood probably got the same offer.
3. Offer a lifetime warranty
4. Quote a price without seeing the job or do a free inspection of your home, then suggest you need major repairs.
5. Demand a large down payment in order to purchase supplies
6. Suggest that you do not need a written contract outlying what they will do or dissuade you from getting other estimates.`
7. If they object or cannot supply proof of insurance or Workplace Safety Certificates.

Tips On How To Choose The Right Real Estate Agent!

Ask the Right Questions - Get the Right Agent
Whether you're looking to own a home in the future or currently own one (congratulations!)...usually a property is one of the most valuable assets a person can own. And choosing the right agent means the difference between a professional, quality experience that will get you the results you want and a frustrating, sloppy experience that leaves you frustrated with compromised results.
So, if you're looking to buy, sell or lease your property, think back to the last time you did this. How many years ago was this? The reason I ask is...how will you chose the real estate agent to represent you?
It's common that there are many years since a person's last real estate transaction. The person they worked with in the past in no longer in business....and you've received many mailers from area agents. Since the average homeowner is not experienced in screening real estate agents-here are some things to be cautious of ...as not all agents are created EQUAL!
Here are the right questions to ask prospective agents to ensure that you make the right decision...
1-Why did you price our property significantly higher than other brokers? Many times brokers lure sellers into hiring them by stating they will get them a price higher than market value. It's easy to fall into this trap. How does this HURT you?
a-The brokers all have the same comparable recent sales...so who is this broker really looking out for - you or themselves? The realtor cannot magically raise the market price. Honesty and trust are extremely important in such large transactions. Since they know the listing term is 6 months, they know they can request several price reductions. Do you want the broker beating you up on price over and over and over again once it doesn't sell?
b- Do you want to take a lower price because the property has been sitting for a long time? Put your buyers hat on...buyers usually ask how long the property has been on the market- and when it's longer than usual (overpriced properties are) buyers will assume that something is "wrong" with your property and you will get lower than normal offers - OUCH. And do you want to keep the house spiffy for the additional months? You're probably thinking I don't mind if you haven't sold-but most of my sellers after 2 weeks are already finding it hard to keep their property in museum condition for showings- especially if they have KIDS!
c-Do you want to miss out on qualified buyers? By pricing high, you're telling the brokers and buyers you are not a serious seller. Most of the time they won't even SHOW your property because it doesn't even come up in their search( as the searches are created by price minimums and maximums).
Bottom Line: You want a qualified broker who will price your property fairly the FIRST time.
2- Who do you have working with you? Are you a full time or part time agent? The biggest challenge that most brokers face is getting their calls returned from the other broker-OUCH! And since this business is 24/7, part time won't work! Just think...what will happen when the broker is on the other side of town and a qualified buyer calls? Many times brokers work by themselves; they are overwhelmed, tend not to return calls and emails, or even worse, will not show your property unless it fits into their schedule. How would it feel to have a prospective buyer call you to tell you the broker wouldn't get them in? Why spend all the time and money for marketing and a marketing plan only to hinder access to the property? It happens all the time. By having a team or assistant the tasks are easily handled....calls and emails are retuned quickly and all the appointments are made!
Bottom Line: You want a qualified broker with a competent team to handle all of the details in a timely and professional manner!
3- What geographic area are you an expert in? Did you know that in every county, transactions are different? I know this firsthand from my personal buying and selling experiences. Closing costs, terms, contracts and more are different county to county. A coop/condo transaction is extremely different than a house. Appraisers, mortgage brokers, attorneys should be area specific too. Why risk thousands by using someone who's anything less than 100% qualified for your job?
Bottom Line: You want a qualified broker who is an expert in you geographic area!
4-What is your marketing plan like? Make sure the agent knows step by step what they're doing and where they're going. Make sure they guarantee their efforts and it's in a checklist format that's easy to understand. If they don't have the resources or necessary funds and technology to market your property, guess who loses? Is their marketing plan proven to work? Ask about recent results to see their credentials and successes. A good marketing plan will show your property in the best light; it will also effectively present and sell the less-noticeable assets of your home. Have they seen competitive properties and do they understand the buyer's mindset in that particular market?
Bottom Line: You want a qualified broker with a proven marketing plan to get your listing to the best buyers in the most effective way.
5-Have you sold, purchased, or leased your own property? Do you own your own home? How would you feel if someone was advising you who didn't even know what it felt like to buy, sell or lease their property? By not having this necessary personal experience they cannot understand how you feel and what you need; they don't have the inside experience to get the job done in the best way. They don't know the inside tips - like adding a lease back to the sale of a property (to avoid moving twice) - which can save the seller tens of thousands in stress and moving expenses-WOW!
Bottom Line: You want a qualified broker who has been through what you are going through so they have the inside knowledge!
6-How long have they been in business? Would you prefer a seasoned, experienced agent or a newbie? Although a seemingly easy process, anyone that has bought or sold knows it is not! A young agent may be very aggressive, but will not have the necessary experience to fully understand the transaction, will not ask the right questions, and most importantly, will not tell you what to expect. They hardly know what to expect themselves! In addition, the other agents know the agent is new and can take easily advantage of their naiveté. Would you want to risk thousands in the negotiating due to an inexperienced agent?
Bottom Line: You want a qualified broker with years of experience who knows what works and who will use her knowledge to carefully and successfully guide you through each step of the process!
OK, so now you are fully prepared to both qualify the agents you meet and to determine the BEST broker for your needs. Please feel free to contact me directly with any questions....you and your family deserve the best!