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Buying a house is a difficult process — there are large sums of money involved, the transaction costs and hassle of moving mean that you can’t just buy another house if you don’t like the one you end up with. The best you can do is to educate yourself in all aspects of the house hunt, keep a clear head, and buy a house that best fits your criteria.

There are plenty of articles full of useful tips for first-time homebuyers. I am not going to repeat them. Instead, I will list the lessons I have learned over the past 30 years of working exclusively with buyers that are not often covered.

Think long-term and think re-sale: Are you planning to have kids? Will you be taking care of elderly relatives? You might be planning to live in your first home for only a few years or plan on using it as an income producing property. In that case, who is your target audience when it comes time to sell or rent the house? If you buy a house in a very bad school district or a house with all the bedrooms upstairs when you are ready to sell the house, you will be narrowing the field of potential buyers.

Make a list of items to check when looking at properties: Home-buying is an emotional process. Ideally, you should set aside all your emotions when evaluating a house. Practically, that is impossible. Instead, make a checklist of your must-haves, nice-to-haves or absolutely nots. Then print copies of this checklist or keep it on your tablet. Every time you visit a house, take the checklist along with you; take photographs so you can cross each item off your list. If you fall in love with the house aesthetics but find your checklist shows that the house has none of your must-haves, it will at least make you pause and think.

All the old advice about buying your first home is true. Some examples — have an emergency fund, save for a down payment of 20 percent and closing costs, get your credit into a better shape, and don’t buy more than you can afford. When budgeting for the house, don’t stop with principal, interest, taxes and insurance; add in utilities, cost of commuting and upgrades and replacement costs for aging roof or appliances. Ask the seller for copies of the utility bills and inquire of the utility companies about budget plans. Will the gas budget for your car go up if you are moving further away from the places you frequently visit? Budget all of these expenses and see if you can still afford the house.

Get Pre-approved: Why would you want to waste time looking at houses you can’t afford? Doing the pre-approval process ahead of time is vital. If there is something negative on your credit report, it’s best to find it early in the process, so you have time to correct it.

Ask for the homeowners and condo association documents before you make a decision: If your long- range plan is to rent out the house once you move, then you better insure that there are no rental restrictions that would preclude you from your desired goal. Thoroughly understand the Covenants and Restrictions of any area you are purchasing to ensure that they are in keeping with your lifestyle.

Be sure to read your contract before you sign it: A house is probably the largest purchase you will ever make in your life, so make sure you understand the terms of your contract. If you don’t understand any of the terms, ask your mortgage broker and your real estate agent. Either should be fully knowledgeable to address your contractual questions. I strongly advise that you retain an attorney to handle your closing, review title and loan documents, note title objections, and hold your deposit monies.

Learn about the neighborhood demographics: Do you have kids and are looking at homes without young families? Are the majority of the residents renters and not homeowners? Define the type of neighborhood you want to live and make this one of your top priorities on your checklist.

Look beyond the staging: The psychology of staging does work; staged houses look far better than houses that are still being occupied. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later. Does your furniture fit the scale of the room? Does the house have a functional kitchen?

Indecision: Ever heard of the saying “Curiosity killed the cat”? Well, here’s another one, “Indecision killed the deal.” Not moving on a house fast enough and taking too much time to make a decision on buying the house is common as well. This indecision gives someone else the opportunity to scoop ups that home before you have a chance to make an offer.A multiple offer situation is good for the seller, but not so much for the buyer. In this competitive real estate market with low inventory and high buyer turnout, you need to move quickly in order to get the house that you want.

Only checking online sources for mortgage rates and available homebuyer programs? As much as everyone loves to do everything from their computer or smartphone today, this is one thing that should be done in person or with a phone call. It is always best to call a local mortgage lender and sit down in person with them to talk about the most current rates and programs available. Many of the lenders that you find online are not local and only have teaser rates on their websites. If you choose a mortgage lender that doesn’t have a local presence, a lot can change once they get the paperwork in front of them at the closing table. Insist of using an appraiser that is knowledgeable and does most of their work in area of the property.

Learn as much as you can about real estate, your budget, and your local housing market, but realize that buying a house is all about compromise, and a lot of doubt! No house is PERFECT but if you keep at it the odds are very good that you will find a house that suits your needs and will be a wonderful home for you and your family or your investment goals.

Filed under: Uncategorized by Kim Bregman
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If you’ve been thinking about replacing your water heater soon, you will want to read up on how the new water heater efficiency standards, effective April 16, 2015, will affect your options.

The U.S. Department of Energy recently mandated sweeping changes in the energy efficiency standards of this water-heating appliance. The new standards call for much higher Energy Factor (EF) ratings on all water heaters manufactured with larger than 55 gallons in capacity.

New water heater regulations mean huge changes in how larger capacity water heaters are manufactured, distributed and installed.

While the new mandates will add up to long term energy savings for all, the initial cost of replacing your old water heater may quickly become significantly more expensive.

For example, the average cost of conventional minimum-efficiency 60-gallon gas and electric water heaters is approximately $675 to $1,500 a unit. While in comparison, the new units manufactured after April 16 will cost anywhere from $1,200 to $2,450 each.

That’s not all. Water heaters manufactured after the new energy efficiency standards go live will require a different heat-pump design and will take up more space than your model now.

This means that if your current water heater is located in close quarters, like a 3 foot x 3 foot water closet or attic, you may be looking at a small home remodel to accommodate the larger units as well.

Water heaters contribute to a significant part of your monthly electric or gas bill. When replacing a water heater you should consider a tankless unit. These space saving units heat water on demand, only when you need it. The tankless technology offers endless hot water – you’ll never take a cold shower again! Because the water is only heated when it is being used, tankless water heaters are a great energy efficient solution for heating the water in your home. You’ll enjoy energy savings, better performance, extended life, fresh water, space savings and more capacity than traditional “tanked” water heaters.

If you are planning on purchasing a home or investment property that will need a new hot water heater, you should figure in these higher cost estimates in addition to the cost of retrofitting the space, if needed.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Home Maintenance, Real Estate, Uncategorized by Kim Bregman
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The obvious advantages to residing in Florida is the weather and no state income taxes.  Another lesser known, but equally as important, advantage is Florida’s homestead laws.

“Homestead” can be a deceptively complex issue in estate and tax planning when individauls finally decide to become Florida residents, including asset protection, property tax savings, and restrictions on the estate plan.

Florida’s asset protection for homesteads is anchored in the state’s constitution (Article X, Section 4). Homestead property owned by a natural person is protected from forced sale under process of any court or judgment lien (except for obligations relating to the real estate itself, such as property taxes, mortgage principal and interest, and contractors’ liens).

The asset protection for homestead includes land and improvements on the land, with an acreage limit of up to 160 contiguous acres outside a municipality, and one-half acre inside a municipality.

Florida also offers two sorts of property tax savings for homestead property: (1) the “$50,000 exemption“ and (2) the “Save Our Homes” limit on annual property tax increases.

The “$50,000 exemption” is a reduction of up to $50,000 in the assessed value of the homestead property. A homeowner can apply for this exemption by filing a Form DR-501 at the county appraiser’s office.

The $50,000 homestead exemption is helpful as far as it goes, but it doesn’t go very far.  The “Save our Homes” advantages for homestead property approved by Florida’s voters as a constitutional amendment in 1992 are much more economically significant. ” Save our Homes” limits annual increases in property assessments to the lesser of 3% or the annual increase in the Consumer Price Index.  Over time, especially when Florida’s real estate market is appreciating, annual “Save Our Homes” advantages can be substantial.

Filed under: Blog, Florida Real Estate, Home Buyers, Uncategorized by Kim Bregman
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The National Association of Realtors reports that under Fannie Mae’s new lending guidelines, which will take effect Dec. 13, securing a mortgage will become easier for some borrowers and more difficult for others.

These new rules will allow buyers to use gifts and grants from nonprofit groups for their minimum 5 percent down payment. Freddie Mac is also considering similar new guidelines, according to spokesman Brad German. Borrowers previously were required to contribute a minimum 5 percent down payment from their own funds, with additional down payment money permitted from a gift.

These new rules are “definitely going to help upgrade buyers and young couples who for whatever reason don’t have enough money and are getting some from their families,” said Edward Ades, the owner of broker Universal Mortgage. The gift rules apply only to single-family principal residences and cover mortgage amounts in excess of 80 percent of the property’s value. The loan balance also has a limit of $729,000 in high-cost areas like New York City and $417,000 in other areas.

At the same time, Fannie Mae is cracking down on debt-to-income ratios, with the maximum ratio for those seeking a conventional mortgage set to drop from 55 percent to 45 percent under the new guidelines. Fannie Mae is also increasing its scrutiny of payment histories on revolving debt, and buyers who have missed a payment will have 5 percent of the total balance added to their ratios.

Under the new rules, borrowers who have gone through foreclosure will be excluded from obtaining a Fannie-backed loan for seven years, an increase from the previous limit of four years.

Filed under: Uncategorized by Kim Bregman
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Today’s definitive online resource, Wikipedia, lists the definition of an Exclusive Buyer Agent (EBA) as one who works solely for the buyer, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transaction. Representing only buyers of real estate, EBA firms never take listings and, therefore, never represent the seller in a real estate transaction. The number of EBAs nationwide is less than ½ of 1 percent of all real estate firms, making their service even more rare at a time the real estate market really needs representatives to help buyers who are pressured to beat the clock, complete their purchase before the now-extended first-time buyer’s tax credit runs out.

Exclusive Buyer Agent (EBAs) work solely for buyers, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transactions. This unique relationship of committed trust and care assures buyers the best possible home buying experience.

The Oklahoma Supreme Court ruled in 1999 that “Sellers’ agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. Sellers’ agents owe their allegiance to the seller. Dual agency invites a conflict of interest. A buyer who relies on the seller’s agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer.”

Exclusive buyer agent firms chose this business model to eliminate the conflict of interest that exists when one firm attempts to represent both buyer and seller in the same transaction. It is the opinion of EBAs that it is not possible to faithfully represent clients with opposing interests simultaneously.
The EBA movement started in the late 1980s and by the early 1990s, as with the rise of buyer agency in general in U.S. states, firms came into being and a national trade association, the National Association of Exclusive Buyer Agents (NAEBA), was formed.

According to NAEBA, EBA firms offer service to buyers in all 50 states. Exclusive Buyer Agents are 100% loyal to Home Buyers 100% of the Time! Exclusive Buyers Agents are located in every state in the United States including: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The service structure for EBA real estate practitioners is to show buyers all possible listings from other cooperating brokers as well as all other sources, such as for sale by owners. Then, they assist the buyer with evaluation and negotiation and advocate in the buyer’s best interests without restriction.
The National Association of Exclusive Buyer Agents (NAEBA) is pioneering a nationwide effort to give today’s home-buying consumers the level of service they deserve and are increasingly demanding. NAEBA professional members firmly believe that home buyers have the same full and equal representation rights as sellers in any real estate transaction.

Before buying a home or real estate, NAEBA recommends buyers interview several real estate agents, asking each of them the following questions. Exclusive Buyers Agent can answer yes to these questions while other Real Estate agents and Realtors often can’t.

· Do you spend 100% of your time representing Buyers?

· Will you guarantee that you will not represent any seller at any time while you are working for me?

· Do you, or the company you hang your license with, ever list properties for sale?

· Will you point out all negatives of each property you show me as well as the positive aspects, fully informing me so that I can make the best decision?

· Will you provide me data on comparable sales and help me formulate an offering price and negotiating strategy?

· Do you have a resources-lenders, home inspectors, insurance agents and other professionals that you can recommend to me?

· Will you tell me everything you can find out about the seller and their reasons for selling?

· Will you show me all the homes on the market that meet my expressed needs and desires including properties For Sale By Owner, foreclosures, etc?

· Will you guarantee that information I share with you will be kept confidential?

· Will you guarantee me your undivided loyalty?

· Will you guarantee me you will not try to change your relationship with me to “dual agency”, “designated agent”, transactional agent”, or any other form of agency other than Exclusive Buyer Agent?

· Can you guarantee me all of your loyalty, 100% of your loyalty, all of the time, 100% of the time?

Optima Properties has been conducting business as Exclusive Buyer’s Agents for over 20 years. We do not take listings! Please visit www.OptimaProperties.com for more information on how we serve buyers looking for property in South Florida and Western North Carolina.

Filed under: Blog, Uncategorized by Kim Bregman
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The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a strike interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?
A: It depends on personal situations. Home buyers certainly have a lot of factors working in their favor right now low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.

Start looking now to position yourself to buy in mid-2010. To find out more information on the benefits of using an Exclusive Buyer Broker and how it can save you money please visit the About Buyer Agency section at www.OptimaProperties.com

Filed under: Blog, Uncategorized by Kim Bregman
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