Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

Winter can be a homeowner’s worst nightmare. Not only do heating bills go up, but there is also an increased risk of fire if you have a fireplace. The windows and doors become doorways for cold drafts, making it cold in certain areas of your home no matter what you do. Even worse, your pipes can freeze and burst, possibly causing hundreds of dollars worth of damage.

Before winter strikes, you should have your home assessed. An assessment can find areas of your home that need to be adjusted for winter. This kind of assessment is called a home energy audit and you can easily do one yourself if you know how. The U.S. Department of Energy has an assessment that you can do yourself, step by step. If you do not want to do your own audit, you can easily hire someone to do it for you.

Cold air can easily seep in around your windows and doors. This raises your heating bill and leaves you and your family cold. Weatherstripping is an excellent way to get around this problem. Take a look at the areas around your doors and windows. If you see an obvious gap, then use weatherstripping in that spot. Sometimes the gap may not be as obvious but you will be able to feel the draft on your hand. If you have single pane windows, weatherstripping may not be enough to stop the cold from creeping into your home. Using heavier shades or curtains will help you keep that precious heat inside.

If you have a fireplace or furnace, make sure that it is services once a year. Fireplaces that have not been cleaned and checked by a professional at least once a year are dangerous to use and you run the risk of a fire. With a furnace, it can break down if you do not have it checked once a year. Even worse, it can release carbon monoxide into your home, a potentially deadly gas that is both colorless and odorless.

The duct work in your home will lose anywhere from 10 to 30 percent of the heat it carries through your house. Have a professional check the duct work to make sure that it is all connected the way it should be. Duct work should also be insulated. This will keep it from losing the heated air it carries, especially if the duct work goes through rooms that have been closed off for the winter.

Frozen pipes are a very real danger in the winter. Pipes that run outside your home should be wrapped with something that will insulate them. Heating tape works well for this. If you are leaving your home for the winter, then turn the water off and use inside faucets to drain out the water that is left in the pipes to prevent freezing. You can also get insulated covers to put over outside faucets to help protect them from the cold.

Certain states have determined that in order to relieve themselves of the burden of unoccupied homes that they are offering buyers the chance the purchase government owned homes for as little as $100 down.  The low down payment required to purchase government owned homes speaks volumes of how desperate they are getting to get the homes sold quickly.  Market insiders see this as a sign that the government may be preparing for a new wave of foreclosed homes that were once owned by Countrywide Mortgage, who was recently bought by Bank of America.  This deal could mean that up to 40,000 new foreclosed homes will be on market as well as the previous homes still on the market from the last wave of foreclosures.

From now until October 2012 buyers will be able to purchase a foreclosed home for only $100, which is a far better deal than the previous requirements of 3.5 percent of the value of the home.  The only restriction is that if you plan to take advantage of the offer you must reside in the home; this stipulation was put in place to reduce the amount of property flippers who would take advantage of the deal.  Buyers must also obtain financing for the property through the Federal Housing Administration.

Buyers are not being offered the homes at discounted prices, only the down payment has been lowered to help buyers get in the door.  The homes being sold will still be listed at full current market prices.  The HUD website lists three steps to purchasing a home; one is to find a HUD home for sale that you are interested in, next you will need to locate a registered HUD real estate agent to help you broker the deal and lastly you will need to be approved by an FHA lender.

HUD has also decided to make the $100 down payment eligible for the FHA 203(k) loan program which allows borrowers to use FHA loans to make any repairs needed on homes that are in poor condition.  To find out if the renovations you would like to make are covered by this program you should check the HUD website to review their guidelines as to what would be included in the program. 

Offering buyers the chance to purchase a home for only $100 down is great for first time home buyers, which also happens to be the demographic that the government is trying to reach.  This is a great opportunity for first time buyers who may have difficulty coming up with a larger down payment.  But the program isn’t only for first time buyers, it is also a great opportunity for those who would like purchase a home but are short on money, it is definitely a program worth considering.

All buyers know the importance of having an inspection done on any property they are considering purchasing.  A home inspection consists of a certified inspector going through the house to look for any signs of existing problems.  A thorough home inspector will check the exterior, electrical, roof, plumbing, garage, heating and foundation of the home.  After the inspection is done the home inspector will inform you of their findings and tell you if all of the systems in the home are in proper working condition, they will also notify you of any problems that they had found during their inspection. 

Once you have been informed on what repairs the property will need once you take possession it is up to you to decide if the cost is worth it or if it will put you too far over budget to proceed with the purchase.  This is also the time to determine if the asking price for the home is fair based on what the inspection revealed.  The information gathered from an inspection is important in helping you see a realistic picture of how much money you will need to put into the property once you buy it. 

What’s not included in the inspection report is the cost of the repairs or upgrades you’ll need to make to the home once you move in.  To determine these numbers it is the buyer’s responsibility to obtain estimates from professionals detailing what is included in the estimate and to what extent their work is guaranteed.  Before purchasing a home that has issues it is important that buyers are aware of the realistic money they will need to spend in the near future to make the home livable, in older homes this may include upgrading the electrical system or replacing an older cooling unit.

Other things that should be included in your home inspection are radon tests, mold tests, signs of termites, soil tests and finding out if any additions were done using the proper permits.  Some of these items aren’t included in your basic inspection fee, inform your inspector of any additional items you would like inspected prior to inspection day and they can inform you whether or not these additional tests are included or how much extra you will need to spend to have them done.  No matter who does them, these tests should be included in helping you determine whether the house you’re interested in is worth the asking price.

A home inspection is something that should be done even though they are optional on the buyer’s part.  It is well worth the additional expense to have the property thoroughly looked at before you finalize any agreements.  

Buying a home is one of the biggest financial decisions you will ever make. It is important that you have a guide to help you through the complicated process of getting approved for financing, paperwork, and choosing your new home. A real estate agent is trained to not only help you buy the home you need and are looking for but also to be able to help you get through all of the steps to buying a home. Since the regulations are always changing in the housing market, it is essential that you have the guidance of a real estate agent from the very first moment that you start planning to buy a home.

Do not just settle for the first real estate agent that you contact. This is the person who is going to be helping you find a home for yourself and your family. He or she is going to be spending time with you, talking about your finances and what you are hoping for, and is going to be directing you not only in what homes to look at but also in your financing. You should interview any real estate agent you are considering working with. Find out how many years they have been an agent and if there are any complaints filed against them. Also find out the experience that they have in the neighborhoods you’re interested in.

You want a real estate agent who is going to give you their time and attention. If it is difficult for you to get in touch with the agent then you may want to think twice about working with him or her. You need an agent who is easy to talk to and get in touch with and who will make sure that your calls are returned. Sometimes you may work with an agent who works with a very large real estate agency and you may be dealing with assistants who do a lot of the legwork. This is okay as long as you feel that your needs are being met. When it comes time for contracts to be signed and the actual closing of the deal you will want to have the agent there because they are the ones who are in the best position to help you. Look elsewhere if the agent is not going to be one guiding you through the contracts.

Consider the agent’s personality and whether or not you can get along with them. You may love an agent’s creditionals and experience but find that they have a personality that gets on your nerves. This is okay and does not say anything bad about you as a buyer. If an agent has a personality that clashes with your own or if you feel in any way that you cannot work with them then you need to keep looking. No matter how great an agent’s creditionals are they are not the one for you if you can’t get along. The same thing goes for an agent who you get along with well who does not have the experience you need. Choose an agent you can get along with who has all the experience and training you need. 

Ever since the housing crisis began, you have probably been hearing about credit scores. Credit is needed for just about everything. It is much easier to get a new car loan, an installment loan for a home repair, or a mortgage for your dream home if you have a good credit history. The problem is that the whole idea of credit is confusing to many people and it is not always easy to find out exactly what your credit score is or what it means. One of the biggest mysteries of credit is how exactly it affects a mortgage for a home.

There is no debating the fact that the higher your credit score the better deals you can get. Where mortgages are concerned, you are able to get mortgages that have lower interest rates, higher borrowing limits, and lower monthly payments. The lower interest rates that you pay with a better score is what lowers the monthly payments that you make. Interest is money that is added on to the money that you borrow and increases the amount that you have to pay back over the life of the loan. The lower the rate the less you have to pay to borrow the money.

Credit tells your lenders how much they can trust you. High scores mean lenders will be willing to lend you money while low scores mean they will not want to. Your score, called the FICO score, is determined using a number of factors and a specific formula. The credit bureaus such as TransUnion take these factors into account when assigning a credit score. The factors are your previous performance and how often you paid creditors on time, the amount of money you owe, how long you have been using credit, and what kinds of credit you have. Credit inquiries also count but to a much smaller degree. Your past payment history is the most important factor. Using the FICO score, a lender will use the score and reason codes to decide where you fall on their lending guidelines.

Scores range from 350 to 950. Very few people actually have scores in the 900s. Those who get the best loans have scores that are at least 800. Many lenders require borrowers to have scores in the 700s. However, there are lenders who will consider lending money to you for a mortgage even if you are considered to have poor credit, which is usually considered to be anything below 500, though you will end up paying more in interest. Time is the best method of getting a higher credit score. Be sure to pay your bills on time, pay off any debts you owe, and your score should climb. 

The easiest way in the world to choose a real estate agent is to work with the first one you meet or hear about. On the other hand, the easiest way is probably not the best way when it comes to a job as important as selling your home. It is a good idea to talk to several agents, and even to interview them. Here are a few interview questions you can ask.

1. How many times have you worked as a seller’s agent?

Of course, every realtor has to start somewhere, but do you really want that first sale to be yours? When you compare agents, do not forget to consider the amount of experience they have.

2. How many houses have you sold in all?

Just being in the business is no guarantee of skill at selling houses. You want to make sure that they have not only worked as a seller’s agent, but they have indeed been successful in selling homes.

3. How many homes have you sold in the last year?

Recent success also counts because it means that the real estate agent knows how to work in the current state of the economy. It means that he has not let his skills get rusty. It means also that he should be up to date on all the laws and regulations concerning home sales.

4. How long has the average home you have sold in the last year been on the market from listing to closing date?

In a buyer’s market, the number of days is likely to be high. However, getting that number is important at any time because you can use it to compare different realtors. With this bit of information, you can sort out the real estate agents who work diligently, quickly and effectively from those who do not put in the same effort.

5. What is the average of your sales ratios, comparing list price to selling price.

A realtor who tends to get a high percentage of sales near the list price is one who will probably be good at making deals for you. This type of realtor knows his business and uses his superior abilities to get you the best price.

6. Do you employ a personal assistant to help you, and if so, what does the assistant do?

This is a pertinent question for you to find out because you need to know whether the realtor will have plenty of time to work on the most important aspects of selling your home. At the same time, you will want to make sure that the assistant is not doing work he is not qualified to do.

7. If I am not satisfied, what will happen?

Some real estate agents will refuse to answer this question directly. They will just say something like, “Oh, you will be satisfied, no doubt about it!” Look for a realtor that explains the options you will have in case you are not happy with him, including breaking the contract. This type of realtor is honest and realistic, two good qualities to look for in a real estate agent.

Real estate agents are plentiful, but the ones who can sell your house, sell it as quickly as possible, and sell it for a price you can live with, are not as easy to find. Do not just go with the first realtor you meet, but interview several before you decide who will help you sell your home.

Many real estate experts agree that in today’s market overpricing your home can be a very big mistake.  It is better to list your home at fair market value, than overprice it in order to leave room to negotiate or just to test the market.  When the market was in better condition these tactics may have worked, but in todays flooded market, buyers have more options available and do not need to waste time viewing listings that they know are overpriced.  By listing your home over fair market value you may cause your home to sit for months without even getting an offer, the longer buyers see your house sitting on listing sites, the more they may begin to wonder if something is wrong with the property.

Other problems that may occur from overpricing your home include no prospective buyers wishing to view your home.  Offering an overpriced home to buyers who have become familiar with the appropriate values of homes in your area will know that your home is priced too high and will steer clear.  By overpricing your home, you may also inadvertently be helping others to sell.  Buyer who see your asking price and the price of others in the neighborhood that are similar to yours, will more than likely make an offer on the lower priced home rather than yours.  So, in effect, you are actually helping your neighbors sell their home instead of getting your own home to sell.

If you are lucky enough to get the attention of a buyer and they actually agree to pay what you’re asking the deal may fall apart when there is an appraisal done on the property.  More than likely, your home is not going to appraise for the higher price you have it listed under.  Lenders will not approve a loan for more than what the home is actually worth.  The longer your home sits on the market, the harder prospective buyers will try to negotiate.  This will give buyers the control of the negotiating process and may cost you by having you make more concessions in order to close the deal.  What seemed like a good idea in the beginning may ultimately end up costing you any extra profit that you may have seen if your home sold quicker.

By pricing your home too high you are also cutting out prospective buyers who could actually afford the true market value of your home.  Listing your home too high may take it out of the price range of many buyers who are looking in a specific price range.  This will not only limit the amount of buyers who look at your home, but buyers who are familiar with listings in the range of your asking price are familiar with what to expect for the amount they will leave unimpressed with your home and search for one that is better suited to the price range you are asking.

There is a lot to be said for doing real estate business with a partner. Partners can increase your pool of financial and intellectual resources. If you work with one or more other investors to do a real estate deal, it relieves some of the possibility of loss. In fact, with the right associates, you may find that your real estate business is more stable and profitable. Plus, it is often easier to push the deal through when you are not working alone. There are several things to keep in mind when looking for a partner in real estate.

1. Partners can come from many places.

Many people find their partners for real estate deals in their own families. Sometimes a parent, a sibling, or an aunt or uncle will help you in a real estate deal. This is a fine way to do business if your family has something to offer you in terms of money or experience. However, you may need to look outside your family. Friends and colleagues can also be good partners if they have the right qualifications and temperament.

2. Find a partner with experience.

Ideally, the partner you choose will know the score on real estate transactions. She will understand the local market. It is much easier if the lingo and the concepts of real estate are second nature to her. A partner who has made at least a few deals in the past will bring invaluable experience to the bargaining table. The person does not have to be a professional investor, although that is not a bad choice, but she it is good if she has some experience under her belt.

3. Look for a partner with financial resources.

There are other benefits a person can bring to a partnership besides the financial ones, but money certainly helps. If your partner has money to invest, it makes it easier to come up with down payments for financing. Renovating a house to be flipped can be done without loans, making the process quicker and smoother. A partner who can contribute financially makes the job of buying and preparing real estate for a sale easier to accomplish.

4. You need a partner you can trust.

Watch out for people who want to make a fast buck at your expense. Even in families, there is the possibility that another person who invests with you will burn you. Therefore, it is essential to make sure that you can trust the person you are dealing with before you become partners. Find out about his past dealings, and talk to people who have been on the other side of the transaction and see how he treated them. Most of all, talk to people who have partnered with him in the past if possible. Get a feel for his ethics so you will know where you stand.

Finding a partner for real estate transactions takes thought and research. It is best not to jump into business with the first person who wants to invest with you. Instead, take your time and find someone who can contribute substantially to the partnership.