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How High Tech is Your Home?

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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We’ve all asked the question… Condo or not? Condominiums and townhouses offer an affordable option to single-family homes in many markets, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:

• Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongings.

• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you dread yard work, this may be the perfect option for you.

• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home — good news if you like to travel.

• Security. Keyed entries and even doormen are common in many condos. You’re also closer to other people in case of an emergency.

• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees decided by the condo board, whether or not you’re interested in the amenity.

• Resale. The ease of selling your unit may be dependent on what else is for sale in your building, since units are usually fairly similar.

• Condo rules. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets, or don’t allow owners to rent out their units. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

• Neighbors. You’re much closer to your neighbors in a condo or town home. If possible, try to meet your closest prospective neighbors.

These are just a few helpful guidelines to keep in mind when considering investing in living the condominium and/or townhouse lifestyle.

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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Have you wondered who is really on your side in a real estate deal?

Well, it is very important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you. If you are working with us, we go over this information during the contract review and explain in detail how we are helping you.

It’s a little confusing at first, but here’s a simple breakdown:

Seller’s representative (also known as a listing agent or seller’s agent)

A seller’s agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

Buyer’s representative (also known as a buyer’s agent)

A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer’s rep works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split with the seller’s agent.

Subagent

A subagent owes the same fiduciary duties to the agent’s customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

Disclosed dual agent

Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it’s vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

Designated agent (also called appointed agent)

This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

Nonagency relationship (called, among other things, a transaction broker or facilitator)

Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

It is very important that you have someone representing YOU in the transaction. Do you have personal representation? If you are not sure, call us and we will help you find out!

What experiences have you had with someone representing you or the other party? Please share your thoughts!

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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Buying a home… it’s a huge step!

So, why is it even worth it?

According to the National Association of Realtors (NAR), here are the 7 top reasons to own a   home. You have many advantages if do you own a home!

Here’s the list:

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

If you aren’t able to buy a home at this time, why not work toward that goal? If you want a personal consultation on how to make that goal attainable, let us know! We are here for you!

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

Congratulations! You have sold your home!  Help out the new homeowners by providing a few items.

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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Sellers! This is very important… You cannot afford to put your home in this current market without standing out above the competition!  Here are 5 things to do.

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Simply put.  Need a second opinion?  Give us a call…

Also, visit our website www.PaulMcGirt.com for upcoming schedule of home buyer and seller workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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Moving to a new home can be stressful, to say the least. Make it easy on yourself by planning far in advance and making sure you’ve covered all the bases.

1. Plan ahead by organizing and budgeting. Develop a master “to do” list so you won’t forget something critical on moving day, and create an estimate of moving costs. (A moving calculator is available at REALTOR.com)

2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.

3. But don’t throw out everything. If your inclination is to just toss it, you’re probably right. However, it’s possible to go overboard in the heat of the moment. Ask yourself how frequently you use an item and how you’d feel if you no longer had it. That will eliminate regrets after the move.

4. Pack similar items together. Put toys with toys, kitchen utensils with kitchen utensils. It will make your life easier when it’s time to unpack.

5. Decide what, if anything, you plan to move on your own. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you. Don’t forget to keep a “necessities” bag with tissues, snacks, and other items you’ll need that day.

6. Remember, most movers won’t take plants. If you don’t want to leave them behind, you should plan on moving them yourself.

7. Use the right box for the item. Loose items are prone to breakage.

8. Put heavy items in small boxes so they’re easier to lift. Keep the weight of each box under 50 pounds, if possible.

9. Don’t over-pack boxes. It increases the likelihood that items inside the box will break.

10. Wrap every fragile item separately and pad bottom and sides of boxes. If necessary, purchase bubble-wrap or other packing materials from moving stores.

11. Label every box on all sides. You never know how they’ll be stacked and you don’t want to have to move other boxes aside to find out what’s there.

12. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.

13. Keep your moving documents together in a file. Include important phone numbers, driver’s name, and moving van number. Also keep your address book handy.

14. Print out a map and directions for movers. Make several copies, and highlight the route. Include your cell phone number on the map. You don’t want movers to get lost! Also make copies for friends or family who are lending a hand on moving day.

15. Back up your computer files before moving your computer. Keep the backup in a safe place, preferably at an off-site location.

16. Inspect each box and all furniture for damage as soon as it arrives.

17. Make arrangements for small children and pets. Moving can be stressful and emotional. Kids can help organize their things and pack boxes ahead of time, but, if possible, it might be best to spare them from the moving-day madness.

Hope these tips have been helpful.  If you can think of anything else, please share!

Also, visit our website www.PaulMcGirt.com for upcoming schedule of homebuyer workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

Disclaimer

Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? That’s true, but it pays to know a little about the seller’s situation before you make an offer.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if:

• You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.

• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you’re serious about purchasing a short-sale property, it’s important for you to have expert assistance. Here are some people you want to work with:

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who’s knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.

• A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)

• Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.

• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.  We have much experience with short sales, so call us for assistance!

Also, visit our website www.PaulMcGirt.com for upcoming schedule of homebuyer workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

Disclaimer

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.

Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:

1. Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online atwww.ashi.org or www.nahi.org. ASHI’s Web site also provides a database of state regulations.

2. Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.

3. How experienced are you? Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date? Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.

5. Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.

6. Will you offer to do repairs or improvements? Some state laws and trade associations allow the inspector to provide repair work on problems uncovered during the inspection. However, other states and associations forbid it as a conflict of interest. Contact your local ASHI chapter to learn about the rules in your state.

7. How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.

8. What’s the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.

9. What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector’s reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.

10. Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector’s refusal to let the buyer attend should raise a red flag.

We can recommend a few excellent home inspectors.  Call us when you need one!

Also, visit our website www.PaulMcGirt.com for upcoming schedule of homebuyer workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

Disclaimer

You can be creative in pulling your funds together to buy a home!  Check out these suggestions.

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment.  Ask your lender which programs are available for you.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors’ names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.

Also, visit our website www.PaulMcGirt.com for upcoming schedule of homebuyer workshops or email us at homes@paulmcgirt.com for registration.  You are welcome to join us!

Until next time,

Paul McGirt & Company

“From Start to Close… throughout Hampton Roads!”

PROVIDING REAL ESTATE SERVICES in all of the Hampton Roads Cities including Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Suffolk and surrounding communities.

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