To Quote the Guy with the Giant Clock Necklace...

DON'T BELIEVE THE HYPE!

With all this banter on the news programs about "Possible-Double-dip-this", and the talking heads preaching "Economic-Terrible-time-that",  I am a bit confused. Why am I befuddled? It is because I am just as busy as ever, man!

This is the time to be buying. In the Rochester area, home prices are down a tiny bit. Combine that with the low interest rates, a qualified buyer can get more house for their money right now. The savvy consumer is acting now.

The time to act also applies to sellers. "But Mike", You may be asking,"You just said that home prices are down a tiny bit. Shouldn't I wait so I can maximize my profit?" No... get that house listed! The buyers are out there, and the inventory is dwindling because they are gobbling them up. The best way to maximize your profit is not waiting for a "better time", it is to make sure your house is in pristine condition and irresistible to the buyer. To get the most money out of your home, you need to have multiple offers competing for the same property. If the house is priced properly, in great shape,  and staged to appeal, then you will get the amount you are looking for and in a pretty quick time frame.

I am including a link today to the recent report from the National Association of Realtors regarding the current state of the market based on their latest research results. NAR President Ron Phipps was quoted in the article saying, “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”  You may read the entire article here:

http://www.realtor.org/press_room/news_releases/2011/02/january_above

In the text, you will find that the purchasing of pre-existing homes has risen during the month of January and that the inventory is down... the lowest since December 2009. You do the math! Inventory down, demand is up! With the incentive for buyers to get in on the low rates, it is a perfect storm for real estate right now!

Now is the time to act! Contact me and I can fill you in more on the status of your neighborhood! Until then, Roc and Roll!

Clear to Close!!!! Wait, What Does That Mean?

You have an accepted contract, a mortgage commitment from your bank, and you've packed up all your worldly possessions into cartons and boxes that once shipped food products, office supplies, and/or electronics. The close date you put on the purchase offer is drawing oh so near... So what should you expect now? There are so many questions running through your head! You feel unprepared! Well read on, Conqueror of the American Dream! Hopefully the next passage will ease your troubled mind.

When should I schedule my movers and take time off from work?

DO NOT (and I stress this) schedule movers, rent trucks, get time off, tell the cable guy to come, etc. until your attorney has confirmed a closing date. The purchase offer you placed on the house has a date written on it, and all parties are going to try to make that date happen, but many times you will not close on this date.

Many factors are involved with a closing. Schedules, making sure all parties have reviewed what they need to review and are cool with it, money being in the right place, etc. are all things that need to be coordinated for the closing to happen. The date you are anticipating is good as a target, but you may close before or after what is on the written page.

I know it is hard, but patience is a good practice with a closing date. Scheduling a time to close is like conducting a ballet, and all the key players must be in place and ready for their cue. Your agent should act like the director, making sure everyone has had enough "rehearsal" and are ready for the "curtain to rise". 

Your lender may give you a "clear to close". That is great! That means that your lender is satisfied with everything they have, but they are only one part of the equation. It does not mean you will be closing tomorrow. Once again, it will depend on if all the players are set and ready to go. 

The date is approaching fast... how much money do I need to bring with me?

When you apply for your mortgage, you will get a "Good Faith Estimate" which will include a pretty good idea of what you should expect for closing costs. More often than not, you will not get the exact amount you will need to bring to the table until less than 24 hours prior to sitting down to sign the final papers. You will be notified by your attorney what amount you need to bring. They will let you know as soon as they know.

Once you have that exact number, you will need to go to your bank and get a certified check, money order, or official bank draft... You can not bring a personal check. Your bank should be able to do that on the spot. Don't worry, they are accustomed to it. 

What you should not do "on the spot" is transfer money into the account you wish to draw from. Transfer any monies you need for closing in advance. I usually recommend at least one week prior to the date on your purchase offer. Often, a transfer will take a day or two (sometimes more) to register... so be proactive and do it in advance, and transfer enough to have a cushion. If the closing amount comes in higher than expected, you want to be ready!

Where will the close take place?

On the contract, it states that the closing will happen at the Clerk's Office of the county you are buying in, or at the office of the attorney that is representing your lender (Yes, your lender has an attorney, too! Not just you and the seller!).

Of all the closes I have ever done, I have never had one happen at the Office of the County Clerk. Ninety percent of the closes I have been associated with have happened at the office of lender's attorney. You will find out the exact location when you get the call for the date and time of close. That call will come from your attorney.

When can I get into my new house, and when do I need to be out of my current residence?

This is a question that has many possibilities. It all depends on how the contract is written.

The usual way it happens is that once you sign the papers at the closing table, you can have access to your new home. Your attorney will give you the keys and you can go strait there if you wish! There are exceptions and I will list a few of them here:

1. Your agent negotiates a pre-possession arrangement for you, which means that in the purchase offer you have an agreement with the seller to live in the house prior to close. Usually this will be accompanied with a rent payment to the seller, or a flat fee determined between the two parties. 
2. The seller arranges a post-possession agreement, which works the same as above but in the opposite fashion. Rent or a predetermined fee is usually negotiated in advance.
3. There is an issue that arises at close that all parties agree upon which limits your access to the property. This rarely happens, but it is a possibility.

Getting out of your current residence is also a variable. If you are renting, you will have to coordinate your move out date with your landlord. In these instances, I usually try to set a close date for mid month. The standard is that renters pay for the month on the first. Since you have already paid for the month and you have your new house in your possession, you have the time to move and clean (both places) at your relative leisure.

If you are selling another property, it will most likely depend on the close of that property. Most times, a seller will need to close on their current home to make the close of their new property happen, so it can be a busy day of paper signing along with truck loading! Each situation has a different set of negotiated conditions, usually making sure that nobody is pressured, put out, or homeless for a day (hopefully!). Working with a good agent (one like myself...wink-wink)... can guarantee that all goes smooth! 

If your agent is on top of things, he or she will be keeping you updated on the progress of the transaction. If you are informed on a consistent basis, then you will not be surprised by an alteration in the date and time of the close. Before, I stated the agent is the orchestrator of the process, so take to heart that a good director will insure that all players involved are up to speed on the happenings and are ready for opening night.

As always, I hope this addressed some of your concerns. If you have any questions, I welcome them in the comment section at the bottom. You can guarantee a quick response! Roc and Roll, amigos!

FAQ's of the First Time Home Buyer: Question One

As I sit here at the computer, sipping some fine coffee out of my "I Heart Rochester" mug, I'm thinking about my first time home buyers. One of the best parts about my job is working with the first timer... they are so excited! It's refreshing to see people get as much enjoyment out of house hunting as I do! I try to make the whole process as fun as possible.

In addition to making the home search entertaining, I also try to educate the buyer on the process. Many people do research before attempting the big task, but there are some things that you just can't get from a book or a website. That's where I come in.

I get asked about numerous topics and all are important, so I have compiled a list of frequently asked questions to help assist if doing some research of your own. There are too many to list in one blog entry, so I will attempt to cover as many as possible in multiple posts. This will be "Part One".

So as I refresh my cup o'Joe, I wonder about where to start... Which answered my question immediately!

Question #1: How do I get started?

The first thing you need to do is enlist a good agent. If you do not have an agent in mind, then ask around... Ask friends and family. It is possible that they have worked with someone in the past that they feel very positive about, or they may have an acquaintance that is in the biz. You can also contact someone blindly from your local brokerage, or from a website, but wouldn't you like to have a testimonial from someone you trust?

Once you get the name of an agent, do something that most people do not do... INTERVIEW THEM! This is a person that will be working FOR you. Make sure you are comfortable with them. This is someone you will be spending some time with. This is someone that is going to be negotiating one of the biggest purchases of your life. Ask them about their past, their transaction history. How well do they know your target area? Find out what differentiates them from other agents. What can they bring to the table? If you don't like what you hear, then move on to someone else and interview them. Keep going until you find someone that you're happy with.

At the same time, find yourself a lender. You can check with the bank that you currently have a checking/savings account with. Often, if you are already a customer, you may get some benefits if you utilize them. There are sometimes fees involved which may be waived. You may also take your business to someone that was recommended just like when searching for an agent. In addition, your agent may have suggestions for you... some options of lenders that they have worked with in the past and found to be good at what they do. Yet again, no matter who you decide to go with, interview them as well! Once you settle on a lender, you will need to get pre-approved.

Pre-approval is where the lender does a preliminary check on you to see if you are a good risk to for a mortgage. The lender will ask you some questions regarding your "debts" (items that you pay per month like auto loans, credit cards, etc.), compare them to your income, and will also run a credit check. Based on their findings, they will hopefully issue you a pre-approval letter. This is a very important piece of paper.

The pre-approval letter is a great tool when you are searching for a home. First, it will typically give you the max range for price. It would be terrible if you found your dream home only to find it was out of your price range. Second, this letter is great for when you place an offer on a potential home. It shows the seller that you have already begun the process on obtaining a mortgage, and the bank thinks that you are a good candidate. If there are competing offers, that may give you a leg up over the other offer if they have not yet completed this step.


Mortgage pre-approval with a lender you feel comfortable with as well as finding a Real Estate Agent that will work for you is the first step in getting you into your dream home. That is how you get started!

Now if you want a GREAT agent, you should contact me... I would be happy to come in for an interview! HA! I hope this was helpful. Keep an eye out for Part Two of FAQ's of the First Time Home Buyer where the plan is to tackle "Contingencies". If you have any questions, enter them into the comment section at the bottom and I can address them in the next blog instead. Until then, Roc and Roll!