7 Habits of Highly Effective Home Buyers

Home buyers: would you like to be guaranteed an effective purchase?

 That is, one that sets you up in the optimum position for the next phase of your life, bearing in mind factors of the budget, location, lifestyle and opportunities in the market?

 A great investment?

 Moving one step closer to your dream home?

 What home buyer wouldn’t want these?

 So how do we get there? 

“Sow a thought, reap an action; sow an action, reap a habit; sow a habit, reap a character; sow a character, reap a destiny.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

Walk into any popular bookstore and you will find, generally between “biographies” and “religious” or “esoteric”, a section labeled “self-help”.

 And while some of the material can be gimmicky or weak, every so often a book comes in that makes you take stand up and take notice.

 “The Seven Habits of Highly Effective People” by Stephen R. Covey is such a book.

 25 million copies sold… 40 languages… 1,500,000 sales of the audiobook alone…

 Do I need to say more?

 Chances are good that you’ve probably heard of it!

 In this seminal work, Mr. Covey sums up over 25 years of experience in business, family, and educational spheres and conveys to the reader those seven practices common to the most successful individuals in their fields.

 In fact, Mr. Covey virtually guarantees effectiveness, which he defines in terms of the production of maximum long-term beneficial results, through working on these good habits.

 Based on Stephen Covey’s seven points, I suggest the following habits to any prospective home buyer, which will give you the edge on the competition and set you up for a successful home purchase!

 Spoiler alert:

 If you still have a copy of the book on your shelf and you haven’t got to reading it yet, I’m about to give you my personal take on the titular seven habits.

 So if you don’t want me to let the cat out of the bag, you might want to take in all 432 pages before you jump in here!

 Or not, it’s up to you!

 By following these home buying tips, however, you will increase your odds of success far beyond the average home buyer.

 Habit #1 – Be Proactive: Get pre-approved For Your Bank Loan

Mr. Covey’s first point deals with getting into the ongoing practice of being on the front foot, rather than living in a passive and reactive mode; not waiting for it all to happen for you but taking the first step.

 If you are looking to buy, the foremost proactive task is to get pre-approval for your mortgage. Approach your bank and find out what is the amount and terms for which you can be approved, based on your current income (and expenses).

 This is going to put you in the driver’s seat for the whole process – you will have a good idea of what you can afford, which in turn informs all your house-hunting and decision-making from here on out. Make sure you understand the difference between getting pre-approved and pre-qualified. Being pre-approved vs pre-qualified for a mortgage is not the same. Home sellers will want pre-approval! This will be the first meaningful task in preparing to buy a home.

 If you’ve been dreaming about that ideal living space, in being proactive you will have begun your journey toward it!

 “If I really want to improve my situation, I can work on the one thing over which I have control – myself.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #2 – Begin With The End In Mind: Determine what you want and what you need

Want vs Need When Buying a Home

Next, readers of the book are encouraged to envision a clear destination.

 Our imagination is a powerful thing, and it’s useful for more than just coming up with ways to spend this week’s Powerball, or making up pranks targeted at friends, colleagues, and loved ones. We can use it to develop a vision of our future for us to work towards.

 When it comes to buying a house, you can begin to envision what you want.

 Which area would you like to live in? What house style interests you? Garden or no garden?

 Moreover, ask yourself what you need: how many bedrooms do you require for your current and future family size? Do you need space for the number of vehicles you own? Space for all your appliances? Maybe there are some specific desires surrounding the type of neighborhood you want? 

Build a picture of the desired end towards which you can begin to move.

 “Start with the end in mind.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #3 – Put First Things First: Take a reality check

Now that you have identified what your end goal is, and also what your budget will allow, you can begin to put first things first.

 For house hunting, this entails getting a realistic idea of what’s out there and available.

 Using technology this can be done from the comfort of your own home.

 Jump online and you can quickly get an idea of how the market is looking. Some sites even offer virtual guided tours of potential homes.

 At this stage, you could even begin to drive through your desired neighborhood on a Sunday open house and begin to see for yourself what’s on the market.

 Nothing beats first-hand experience to get a feel for what is realistic!

 Using these methods you will build a solid profile of what your ideal spot could look like.

 Some buyers become disappointed or frustrated by leaving out this step, having a mentality which says “I want it all right now”, setting the bar for their purchase way too high.

 They want their perfect dream home for a low, low price.

 Indeed, the overarching theme of Mr. Covey’s book is how we set ourselves up for failure to reach the desired result not primarily because of external forces, but because of our own perceptions.

 Taking a reality check at this stage will equip you to engage with the market. 

“To change ourselves effectively, we first had to change our perceptions.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #4 – Think Win-Win: Aim high but be flexible

Most buyers have an idea in their head of “The One Home.”

This “One Home” is the home I’m supposed to encounter that will make me deliriously happy by checking all my requirements and coming in way under my budget.

 “It’s out there for me and I just have to find it.”

 Your reality check in the previous point will probably already have shown you that “The One Home” is a unicorn.

 There’s no such thing!

However, this point right here will help you to see that even if the “One Home” does not exist, it is still possible to be effective in reaching the desired result: a home that will give you the optimum long-term benefit and satisfaction for your investment.

Thinking “Win-Win” is about finding solutions that work for all parties involved – for example, you can get a great house at the right price without fleecing the seller.

 To find your “Win-Win” property, as opposed to the unicorn, will require flexibility and negotiation. You may have to compromise on some of your nice-to-haves on the property in order to secure the best possible arrangement.

 “Win-Win” thinking says, for example: “Ok, I wanted a house that was ready to move into right away, but here is a decent house in a good area which can be turned into a great house with some renovation, and I’ll still come in under budget.”

 Or, “Look, I’m spending a fraction more than I had originally planned, but this house checks all the boxes and will give us space into which we can grow.”

 Be flexible and find your Win-Win!

 “Happiness, like unhappiness, is a proactive choice.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #5 – Seek First To Understand, Then To Be Understood: Understand the process of buying and selling

Understand How The Home Buying Process Works. What a great fifth habit to have under your belt: Understand, before being understood.

 What makes Mr. Covey’s philosophies so good is that they deal with improving one’s character, not just quick fixes that only scratch the surface of the issue!

 When it comes to buying a house, what you need to understand is the process of buying and selling.

 You don’t have to have a degree, or train to be a real estate agent yourself, but it will help to find all the vital information.

 Don’t be scared to ask questions! Understanding what to do before buying a home is vital!

 After all, buying a home is one of the biggest investments a person can make!

 If you have a question about anything from paperwork to repayments to closing dates to mortgages, just ask!

 A good person to ask is your local real estate agents – if they aren’t equipped to answer your question directly, they can put you in touch with the necessary professionals!

 According to Mr Covey, when we try to offer advice, or assert our own desires, or bring a solution, without first understanding the problem, we set ourselves up to be ineffective.

 “Most people do not listen with the intent to understand; they listen with the intent to reply.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #6 – Synergize: Empower yourself with the right real estate team

There are those who have more experience than us in any given area.

Rather than re-invent the wheel for ourselves, we can benefit from the learning and experience of others.

 We already saw in the last point some of the advantages of being able to ask a good real estate agent for answers to some of the fundamental questions.

 Sure, you could do it yourself!

 You might conceivably even save some money by doing it yourself!

 However, by and large, when you weigh the benefit in terms of your investment of time, and the avoidance of unexpected hassles, generally speaking, making use of these specialists in their fields can pay for itself, so to speak, by saving you time as well as headaches.

 Your small team could involve a competent real estate agent, a qualified conveyancing attorney, a reputable mortgage broker and the best home inspector available.

 You could also involve a trusted friend or family member who can look at the prospective property with you and point out pro’s and con’s you may have missed.

 In addition, give weight to what your spouse or immediate family has to say – after all, they will be living there too! 

“When the trust account is high, communication is easy, instant, and effective.”

― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 Habit #7 – Sharpen The Saw: Enjoy learning from the entire experience

Enjoy The Home Buying Experience. Every first-time buyer can relate to the rush of making their first purchase.

 When the offer is accepted, a celebratory notification is sent to family and friends, loaded with party emoticons.

 When the mortgage is approved, we crack open the champagne!

 Going through the process can involve ups and downs, but when you reach your goal it is worth it.

 Buying shouldn’t be something to endure but something to enjoy.

 And, even when there are those disappointments that might come along the way, you are learning and growing from the entire experience.

 You come out on the other side of the process with broader shoulders and more life experience. When things are thought through carefully there is  rarely any home buying disappointment.

 So, if you’re ready, jump in!

 Be proactive, have the end in mind, stay grounded in reality, think “Win-Win”, increase your understanding, work in team, and be learning and growing.

 You will be an effective home buyer!

 And of course, be sure to stock up on a bottle of your favorite Champagne!

 This post is taken from the Maximum Exposure Real Estate blog and can be read on-line here..

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Six truths about open houses

6 Truths About Open Houses You Must Know  

Do Open Houses Work?

It’s time to sell your house. Better get started with your plans to hold an open house to attract buyers.
Right?

 An open house will guarantee that your house gets the best exposure to the largest pool of interested buyers…

 Or will it?

 Actually, this isn’t always the case! Open houses are not the best in every case. This is why some sellers are beginning to shy away from holding them in today’s market.

 So why, then, will most real estate agents push for an open house?

 There are benefits for agents in holding an open house. Real estate agents build their own potential network of clients through open houses. But let’s be very clear about something: most of the benefit runs the way of the agent, and NOT, you, the seller.

 An open house is not a key component of a successful sale. The key components are the right real estate agent, the correct price point, and an excellent marketing campaign.

 Let’s face it: scheduling an open house can be a proper headache in your busy lifestyle, or ruin your relaxing family Sunday afternoon by preparing your home for sale!

 Here is my expose on open houses: six truths that may change your mind about open houses. You’ll agree you should think twice before running your next open house and inviting every Tom, Dick, and Harry!

 Truth #1 – You don’t need an open house for a successful sale

Most agents will try to set up an open house, simply from habit.

 This is the set way in which real estate sales have been running since before there was a World Wide Web.

 “But hasn’t it always been done this way?!”

 Well, advancing technology has revolutionized all areas of industry and commerce, and real estate is no exception. Top real estate agents have adjusted to the times and rightly asked whether there is even a need for open houses.

 Prospective buyers now hit the internet first when embarking on their home-buying journey. A great online listing should be part of your marketing strategy – far more than an open house!

 Interested buyers who are moving toward making an offer will get the agent’s details from the listing and set up a viewing as soon as possible, regardless whether there will be an open house next weekend!

 This framework actually weeds out those who aren’t interested in buying your home.

 Rather than focusing on sorting out an open house, connect with a competent real estate agent with an expansive network of buyers and sellers. Invest time and effort into developing a solid marketing campaign with them.

 Truth #2 – Most of those attending the open house aren’t qualified buyers

It is true that some who come along to your open house may be looking to buy. But in my experience, there are quite a few who show up who have no interest in making an offer.

 Some will be “just looking”. Some will be nosy neighbors looking to check your place out. I’ve had it many times where couples confide in me that they enjoy going to open houses on Sundays as a pastime or hobby! Beats staying home and watching Netflix, I guess?

 In short, the open house mentality encourages many to pitch up on the day itself, who aren’t prepared for what they’re about to see and highly likely will have no intention of buying.

 An agent worth their salt will instead prioritize private viewings with pre-approved buyers who are in the position to make an offer.

 Truth #3 – You can expect those inquisitive community members to pop in

The myth is that every open house leads to a long queue of genuine, interested, potential customers.

 Wouldn’t that be great?!

 The reality is that an open house is an opportunity for window shoppers to come off the street to have a look.

 Why do nosy neighbors make use of an open house? They may have always had an interest in seeing the setup at your house. It may be to compare their space to yours. Some enjoy seeing similar decor and furniture arrangements in their area to get creative ideas for their own space. Some want to compare market values. And some are only taking license to be nosy.

 If this doesn’t appeal to you, as the home seller, the solution is rather simple: don’t run another open house.

 Truth #4 – Open houses have a poor conversion rate

When you run an open house, you are inviting the world in to see your house. This can include a small percentage of potential buyers. However, in most cases, you are also inviting in a crop of people not interested in buying your home.

 This means that open houses are more often more trouble than they are worth! That is, for you, as the home seller, of course. Meanwhile, your agent is expanding his client network on your time in your open house…

 The true professional real estate agent will be better off spending their time and effort on attracting true potential buyers.

 Truth #5 – Open houses are not good for your peace of mind

Unfortunately, it would be naive to think that everyone who walks into a show house has the best intentions. We don’t have to spend time unpacking current crime statistics to drive the point.

 We have an opportunity here to expose the drawbacks of open houses:

 Incidents of theft do occur on open houses. Worse still, in certain cases, there have been burglaries following the open house. Criminals attend the open house, identifying weaknesses which they can exploit at a later stage. Some even sabotage locks on doors and windows during the open house.

 Is it worth the risk, when you consider what valuables and heirlooms you have on your property?

 Truth #6 – You don’t have to agree to run an open house

Even if your agent is pushing you into holding an open house, you can just say “no”.

 One reason some agents still endorse open houses is that it looks like they are doing good work when they take up their (and your) whole Sunday for an open house!

 Rather than judging an agent by how busy they look, base it on the results they get: how long does it usually take for them to sell a house? Do they usually sell houses close to the sellers’ asking prices? Do they have good references?

 Bottom line: a good agent will be open to a discussion about whether to hold an open house. While it might still be advantageous to hold them in certain rare situations (such as new construction), bearing in mind the pointers in this article, listen to what your agent has to say and make your own informed decision.

 Good luck!

Thanks ImmoAfrica for more timely information - the editor.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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New Home Purchase? Do not forget the home inspection

Home inspection for your new home purchase- Waive at your risk?

Buying a home at this time can be frustrating as potential buyers compete with each other to make the deal.  Presenting an offer that is "all cash," that is not contingent on obtaining a mortgage is one tool in the homebuyer's tool kit.  Another is waiving the home inspection.

There have been a series of articles on the wisdom of waiving the home inspection.

Thinking of Skipping a Home Inspection? Think Again and points out the pitfalls

“I would never waive it,” says Samantha Eisenberg, a Compass real estate broker who works in the Boston suburbs. “A home purchase is probably the biggest purchase of your entire life and we spend more time picking out a sweater…If I buy clothes online, I try it on and see how it looks. A house we go through in 30 minutes and you’re waiving inspections (over) something that costs over a million dollars.”

A full home inspection can unearth everything from structural issues, roof problems, or faulty electricity and plumbing. If the thought of dealing with any of these gives you a major headache, you’re better off following the recommendation of your realtor.

How to waive a home inspection contingency without getting burned

The home inspection contingency, meanwhile, is a bit of legalese that gives a buyer a way out of a deal.

In today’s super-competitive market, buyers are making their offers stand out by agreeing to ignore minor issues. Rather than skipping inspection contingencies entirely, savvy bidders are modifying the language in their offers, says Katie Severance, an agent at Brown Harris Stevens in Upper Montclair, New Jersey.

For instance, you might still conduct an inspection but promise the seller that you’ll overlook any single repair valued at less than $500, or that you’re scouting for only major issues such as mold, radon or a faulty foundation.

“The buyer hopes to send the message to the seller that they’re not going to nickel and dime them,” says Severance, author of “The Brilliant Home Buyer: 101 Tips for Buying a Home in the New Economy.”

Homebuyers should, in our humble opinion, keep something in mind when they read the home inspection report.  If you are buying a house that is 50 years old and the inspector says "the hot water heater is nearing the end of its useful life" or "the electric system should be upgraded" or "the roof is original," those items are not defects in the house.  

Happy househunting.

  

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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The Tax Breaks for Homes That Help You Now

Homeowners need to know these income tax facts

Home office and second homes deductions

A column in the Wall Street Journal answers some timely questions about income taxes and your home.  

As this article appears behind a paywall at wsj.com/articles/the-tax-breaks-for-homes-that-help-you-now-11596792602, the full text is below.

August 7, 2020

By Laura Saunders

 The coronavirus pandemic has had profound effects on real estate, and the sudden shifts make it a good time to delve into tax breaks available to home buyers and homeowners.

 Many people are scrambling to get mortgages now that interest rates are under 3%, either to buy a home in a red-hot market or refinance debt on an existing one. Others, who are working from home far longer than expected, are itching to renovate their nest or add workspace.

 And then there are those who have moved to vacation homes for the long haul. Some are even social-distancing in motor homes or boats.

 The tax landscape for homeowners changed with the 2017 tax overhaul, which made the long-cherished mortgage-interest deduction irrelevant for many. For 2018, 13 million filers claimed this write-off, down about 60% from 2017’s total of 33 million filers. The overhaul also limited interest deductions on home-equity loans and repealed a benefit for some home offices.

 

But other tax breaks for homes remain, such as one allowing mortgage-interest write-offs for motor homes and boats. Loosened rules on withdrawals from retirement accounts could provide a source of funds for home buyers who need cash this year. A spokeswoman for TD Bank said it’s allowing such withdrawals to be used for down payments

 Whether you’re part of a backlog of buyers or mulling changes to your current home, here are answers to key questions—plus examples to show how the rules apply in different situations.

 Will I get a mortgage-interest deduction if I buy a home?

 Yes, but it might not lower your taxes, if your “standard deduction” is higher than your total itemized deductions listed on Schedule A.

 The 2017 overhaul nearly doubled the standard deduction, and now it’s $24,800 for most married couples filing jointly and $12,400 for most single filers. So millions fewer homeowners are itemizing.

 Typical itemized deductions are for mortgage interest, charitable donations, medical expenses and state and local taxes (SALT), such as property and income or sales taxes. SALT deductions are limited to $10,000 per tax return.

 Here are examples provided by Evan Liddiard, a CPA who directs federal tax policy at the National Association of Realtors. Say that a married couple buys a $400,000 home with a 20% down payment, a 3% interest rate and a 30-year fixed rate mortgage. The first-year interest deduction would be about $9,500.

 If the couple deducts that amount, along with the limit of $10,000 for SALT, they’d still need more than $5,300 in charitable or other write-offs to get above the $24,800 threshold.

 Many single filers will find it easier to get a benefit. If a single person buys a $250,000 home with 20% down and a 3% interest rate, the first-year interest is about $5,950. If this buyer lives in a higher-tax area and has $10,000 of SALT write-offs, then his total itemized deductions are more than $3,500 above the $12,400 threshold, even without other write-offs.

 How much mortgage interest can I deduct?

 For new mortgages issued after Dec. 15, 2017, taxpayers can deduct interest on up to $750,000 of mortgage debt on up to two homes.

 For mortgages issued before that date, a “grandfather” provision allows interest deductions on up to $1 million of mortgage debt on up to two homes.

 Here’s how these two rules can interact. If a homeowner has a grandfathered $800,000 mortgage on a first home and wants to borrow $100,000 to buy a second home in 2020, then the interest on the $100,000 wouldn’t be deductible. For more information, see IRS Publication 936.

 Note that the $750,000 limit applies per tax return, so unmarried couples who buy homes together can deduct interest on up to $1.5 million of mortgage debt. Some couples in high-cost housing markets have refrained from marrying in order to double their deduction.

 I’m refinancing my mortgage at a lower rate. Can I still deduct the interest?

 Yes, in many cases. But current law disallows deductions on the “cash-out” portion of a refinancing unless it’s used to improve a home.

 Say that a borrower with a $400,000 mortgage balance refinances at a lower interest rate but raises the balance to $450,000 in order to have $50,000 for college tuition. In that case, only the interest on $400,000 would be deductible. But if she uses the $50,000 to add a room, then interest on the $50,000 would be deductible, says Mr. Liddiard.

 Are “points” paid to get a mortgage deductible?

 Yes. Points are upfront interest payments that typically reduce the rate. Points paid for a first mortgage are usually deductible the year it’s taken out, while points paid on a refinancing typically must be deducted over the loan’s term.

 I want to borrow to buy a boat or RV. Can I count that as a home and deduct mortgage interest?

 Maybe! Mortgage interest on debt used to buy a motor home or boat can be deductible if it has cooking, sleeping and toilet facilities. The write-off is also subject to the other requirements, such as no deductions for more than two homes.

 Mortgage interest on these homes may not be deductible for the alternative minimum tax—but far fewer people owe this levy than before the 2017 overhaul.

 Can I still deduct interest on a home-equity loan?

 It depends. Until the 2017 overhaul, interest on up to $100,000 of home-equity debt used for any purpose was deductible.

 Now, such interest is deductible if it’s used to make substantial improvements to a home. The debt must be secured by the property it’s used for, and the $750,000 and $1 million total debt limits apply.

 Now that I’m working from home, can I take a home-office deduction?

 Not if you are an employee, because the 2017 overhaul repealed that write-off. But your company can likely reimburse you for your work expenses during the pandemic and get a deduction. The payment won’t be taxable to you, says Gerard Schreiber, a CPA who specializes in tax issues involving disasters.

 Workers who are self-employed, either full-time or part-time, can often deduct home-office expenses on Schedule C for a space that’s used regularly and exclusively for the business. (That means no watching sports on a couch in the office during off-hours.) For more information, see IRS Publication 587.

 I’m spending more time at home, and I want to remodel my house and add office space. Are there tax breaks for remodeling?

 Yes, in some cases. A business owner who builds or upgrades office space at home may be able to take deductions for costs. For example, a photographer’s expenses for adding a studio and darkroom to her home could be deductible over time on Schedule C, as could the interest on a borrowing to finance it.

 For homeowners without businesses, the cost of improvements such as an addition can raise the “cost-basis” of the house and reduce taxable profit when it’s sold. So if a house was bought for $250,000 and the owner made $150,000 of improvements, then the starting point for measuring the gain after a sale would be $400,000. The interest on a home-improvement loan can also be deductible.

 This year many people can withdraw more from such savings plans than in the past, and on better terms, because Congress loosened rules for people affected by the pandemic. These savers can withdraw up to $100,000 from IRAs and many 401(k)s without owing the 10% penalty that would often apply. Then they can spread the tax over three years or pay all or part of the withdrawal back, according to IRA specialist Ed Slott.

 I have a city home and a vacation home, and until the pandemic I lived in the city. If I make my vacation home my primary residence, can I avoid owing city taxes?

 Maybe—but rules vary widely, so seek professional advice tailored to your area. For example, people with jobs based in New York often owe taxes to New York even if they’re residents of other states.

 To switch your vacation home to your primary home, you may need to count days spent in each place. You may also need to make moves showing you’ve truly changed your residence, such as switching doctors, children’s schools, your place of worship, and where you vote.

 Write to Laura Saunders at laura.saunders@wsj.com

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Homebuyers to be affected by changes in FICO score?

Homebuyers and the FICO score, will the changes help or hurt?

NYTimes.com points out- FICO is tweaking its all-important formula. Scores will rise for about 40 million people and drop for another 40 million.

The New York Times reports:

Your credit score — that all-important passport within the financial world — may be about to change. And it won’t necessarily be because of anything you did or didn’t do.

The Fair Isaac Corporation, the company that creates the widely used three-digit FICO score, is tweaking its formula. Consumers in good financial standing should see their scores bounce a bit higher. But millions of people already in financial distress may experience a fall — meaning they’ll have more trouble getting loans or will pay more for them.

For homebuyers, this can be trouble as those who are down-rated may not qualify for the best mortgage rates.  In those cases, borrowers may have to obtain private mortgage insurance (PMI) to complete the loan transaction.

Read the full article here.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Why do you need title insurance? A video for homebuyers

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Homebuyers need title insurance

Here's why

A short video courtesy of the American Land Title Association of which Vested Land Services LLC is a proud member.

So there you have it.  Do not buy a home without title insurance.  It's a one-time purchase of a product that lasts for as long as you own your home.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Home buyer gets back his deposit

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

What's a home buyer to do when the real estate purchase contract says one thing and the seller says it doesn't?

Some contracts for the purchase of real estate allow the buyer to cancel the purchase due to various contingencies.  The best known is the "mortgage contingency" where, if you don't get a mortgage within a certain  time frame, you, and sometimes the seller, can cancel the contract.

A recent court case involved a more difficult contingency - one where the buyer can cancel if she doesn't sell her present home.

For many attorneys representing sellers, this is a no-no.  But not in RIVERMOUNT DEVELOPMENT LLC VS. LIVINGSTON, et al, where the contract contained such a clause. When the buyer acted upon it, the proverbial stuff hit the fan.

In the end, the buyer won, but I can't imagine the costs to the buyer and its attorney financially and emotionally.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Bergen County New Jersey's Ho-Ho-Kus in the news

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Thinking of buying a home in Bergen County?  Think Ho-Ho-Kus!

The Sunday Times featured a nice article, "Ho-Ho-Kus, N.J.: A Tight-Knit but Welcoming Community."

"With a thousand pieces of candy on hand, Nicolle and Joe Zawacki thought they were well prepared for their first Halloween in Ho-Ho-Kus, N.J., having been warned that the three-bedroom home they bought six months earlier was on “the Halloween street.” But when a steady flow of 20 to 30 trick-or-treaters at a time began arriving at their door, the supply quickly ran out. They were relieved when Mr. Zawacki’s mother stopped by with her leftover candy."

 That says something about a child-friendly community, doesn't it.  But that's not all this town of 4,000 residents has.  It's got direct transportation to Hoboken's train terminal and ferry to NYC, and in the words of the Times, "a picturesque downtown."

If you are thinking of buying in Ho-Ho-Kus or any other New Jersey community, contact us, we can help.  You can read the full article on NYTimes.com here.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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It's not about Title Insurance! Getting Down Payment Help Now. Sharing Home’s Gain (or Loss) Later.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

From the New York Times, an interesting way to get a large down payment for that expensive home:

Getting Down Payment Help Now. Sharing Home’s Gain (or Loss) Later.

With home prices in some markets going through the roof (pun intended) just how does a home buyer come up with that large down payment.

For aspiring homeowners, coming up with a healthy down payment has long been the biggest obstacle to owning a home.
 With property values soaring in many areas — median prices in San Jose, Calif., and Denver are 60 percent above their prerecession peaks — the barrier is rising. That has some firms promoting unconventional ways to scrape together a down payment, including crowdfunding and using Airbnb rental income.
 Now, a small but growing number of home buyers are trying something different: asking an outside investor to put down money alongside them.
 It is called shared equity, and Unison, a company based in San Francisco, is the largest of a handful of firms putting it to work. Unison will provide at least half of a consumer’s down payment in exchange for a piece of any appreciation in the home’s value when it is sold. If the home sells at a loss, the company absorbs a share of that, too.

Read the full article here. 

What will they think of next?

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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Does a seller have to tell a #homebuyer about looming costly repairs?

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help.

That's a provocative heading but it's a true one.  What if the seller knows that costly repairs are just around the corner?  This article from NYTimes.com, while it deals with a #condominium apartment, has implications for all sellers.

Costly Repairs Are Looming. Must I Tell the Buyer?

Q: I am a board member at an Upper West Side condo that has had issues with leaks. Repairing the problem will be expensive, possibly requiring a five-figure assessment for each apartment. I have been thinking about moving, but now I want to sell quickly to avoid paying the assessment and living through months of construction. Our board does not move quickly and any decision about the repairs is likely months away. The work could ultimately be cheaper than what is currently being proposed. What, if anything, am I required to disclose to potential buyers?

A: In New York, a seller is not required to disclose any adverse information to a buyer. So long as you do not actively conceal the defect, or in this case mislead a buyer about the looming assessment, you haven’t done anything wrong. “The building could be falling down and the seller does not have to tell the buyer,” said Adam Leitman Bailey, a Manhattan real estate lawyer.

Check out the full article here. So the lesson for a #homebuyer is to get  a competent attorney and home inspector.
 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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5 Home-Buying Nightmares Your Title Insurance Could Prevent - a report from Vested Land Services LLC

Vested Land Services LLC is the consumer's title insurance agency!  Trust us to avoid the headaches in this story-

5 Home-Buying Nightmares Your Title Insurance Could Prevent

Imagine that you have found your dream home. Your offer is accepted, you close the deal, you move in. Then, just as you've started to make the house your own, the mail carrier delivers news that turns your world upside down: There was a lien against a previous owner, and now it's been passed on to you.

That’s exactly what happened to Lori Moore and her husband.

“We had barely gotten everything settled in the house when two weeks later we received a letter from an attorney about a pre-existing lien on the house against the prior owner that now carried over to us as the new owners,” says the Louisville, KY, resident. The lien had been missed during the title search process because, Moore says, the county clerk had filed it in a way that made it hard to find.

At first, Moore says, they weren't too concerned.

“We remembered paying for title insurance, but our Realtor® explained that policy only covered the lending institution for any title problems, not us as the homeowners.”

The Moores were left holding the bag for $2,000 to pay off the lien and attorney costs.

Read the full story at https://www.realtor.com/advice/buy/5-home-buying-nightmares-title-insurance-prevent/

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

@vestedland

#NewJersey

#titleinsurance

#homebuyer

#refinance

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No Perfect Home Exists: What You Should Know About Home Inspections - a report from Vested Land Services LLC

As a #homebuyer, you will arrange for a #homeinspection in order to be sure your new home is in good condition.  However, as the following article from Realty Times points out, no home is perfect!  Here's what you should know about the #homeinspection.

No Perfect Home Exists: What You Should Know About Home Inspections

For many first-time buyers, buying a home can be a scary experience. They know they'll be maintaining or improving a home with little to no maintenance experience, so the solution is to buy a home in perfect condition. So they hire a home inspector to point out all the flaws.

The problem is -- no perfect home exists. Air conditioners break, plumbing pipes leak, and roof tiles blow off in the wind.

If you're buying a home, start with a reasonable expectation of what home inspectors can do. Their job is to inform you about the integrity and condition of what you're buying, good and bad.

A home inspection should take several hours, long enough to cover all built-in appliances, all mechanical, electrical, gas and plumbing systems, the roof, foundation, gutters, exterior skins, windows and doors.

An inspector doesn't test for pests or sample the septic tank. For those, you need industry-specific inspectors.

Here's what else you need to do.

1. Make sure the inspector you hire is licensed. The responsibilities of home inspectors vary according to state law and their areas of expertise.

2. Ask what the inspection covers. Some inspection companies have extensive divisions that can provide environmental for radon and lead paint. Be prepared to hire and schedule several inspectors according to your lender's requirements and to pay several hundred dollars for each type of inspection.

3. Some inspection reports only cover the main house, not other buildings on the property. For specialty inspections such as termites, make sure the inspection covers all buildings on the property including guest houses, detached garages, storage buildings, etc.

4. Attend the inspection and follow along with the inspectors. Seeing problems for yourself will help you understand what's serious, what needs replacement now or later, and what's not important.

5. Don't expect the seller to repair or replace every negative found on the report. If you're getting a VA or FHA-guaranteed loan, some items aren't negotiable. The seller must address them, but otherwise, pick your battles with the seller carefully.

A home inspection points out problems, they also point out what's working well. It can help you make your final decision about the home - to ask the seller to make repairs or to offer a little less, to buy as is or not to buy at all.

Read the full article on-line at Realty Times.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the #titleinsurance agent that does it all for you.We don't perform a #homeinpection but we do inspect the title to your new home for other problems.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

@vestedland

#NewJersewy

#titleinsurance

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Real estate dictionary for homebuyers

Realty Times has published a handy guide to terms likely to be encountered by homebuyers as they make their way through the real estate marketplace.

Normally, I'd send you a link to the article, but it's really a good article and worth being set out in full.  Here it is:

Demystifying Real Estate Terminology For Homebuyers. Written by Kristin Brown on Wednesday, 11 September 2013
                

First-time home buyers can have a tough time sorting through real estate terms spewed by real estate agents, lenders, real estate attorneys and other real estate professionals.

Here's a brief alphabetical glossary of some basic real estate terms first-time home buyers need to know:
Amortization: The repayment of a mortgage in small equal periodic installments of principal and interest, as determined by a payment plan to pay off the loan over a certain amount of time.
Appraisal:An appraiser's assessment of a property's value. A home sale is contingent upon an appraisal for at least the amount of the loan the buyer wants to secure.
Closing costs: One-time costs associated with buying a home, disclosed before closing, but due at closing. The costs can include fees for an attorney, recording, inspections, appraisals, title service costs, even pre-paid homeowner's insurance and taxes.
Contingency: Contractual conditions that must be met before a home sale closes. They can protect the buyer or the seller and can include a satisfactory home inspection, secured financing, adequate appraisal, etc.
Credit Report: A report card of your creditworthiness. Go to AnnualCreditReport.com to get one free credit report, every year, from each of the three credit reporting agencies:TransUnion, Experian, and Equifax. That's three free a year.
Credit Score: A numerical rendition of your credit report that plays a significant role in a mortgage approval, the cost of the loan and other terms of the loan. Get your credit score direct from the three credit reporting agencies.
Down Payment: Cash the homebuyer brings to the deal. A down payment reduces the amount financed by the amount of the down payment and brings equity to the deal. Many lenders require at least 20 percent down to reduce its risk, but various loan programs require as little down at 3.5 percent down.
Earnest Money: A deposit of good faith money, typically included with the offer to buy a house. Earnest money can become part of the down payment.
Escrow account: A lender-held account to which the buyer makes monthly deposits beyond the monthly principal and interest payment. The monthly payments are used to pay the homeowners property taxes and homeowner's insurance. Otherwise the homeowner is saddled with large lump sum tax and insurance payments once or twice a year.
Mortgage: A loan from a bank, mortgage lender, credit union or other lender to finance the purchase of a home. Mortgages vary and can include fixed- and adjustable rate mortgages, conventional loans, larger jumbo loans and loans backed by the federal government.
Points: Sometimes referred to as "discount points" these costs reduce the interest rate and are paid at closing or up front when used. One point is one percent of the mortgage amount.
Pre-approval: An official document and the process by which a homebuyer obtains proof he or she has been approved for a mortgage, pending the home appraisal and other financial contingencies. During the process, the lender verifies the buyer's credit score, income, debts, employment and other factors that go into a mortgage applications. A pre-approval letter says the buyer has been approved for a certain mortgage, again pending contingencies.
Title: A public records document that proves ownership of the property. A title also includes any claims against that ownership. During a home purchase, the buyer conducts a title search to verify the seller is the owner and if the title contains any judgments or liens against it.  [Professionally done for  you by Vested Land Services LLC, ed.]

This list is a small real estate glossary. Talk to your real estate agent if you have questions about other terms.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Homeowners overlook the powder room

Want to make an impression on your guests or that homebuyer? The powder room is a place not to overlook.

“Averaging just 4 feet by 5 feet, the first-floor powder room normally is the home's smallest oom.

“Yet it's much used and often treated as an afterthought during remodeling, or overlooked altogether.”

Here are some of the things you can do to maximize this minimal room:

Take advantage of wall space; upgrade the medicine cabinet; select a comfort-height toilet; furnish the room, and splurge on a granite or marble countertop.

Read more here.
 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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