Traps a Hernando County Real Estate First Time Buyer Should Look For

Looking Out For Common First Time Buyer Missteps

 

No matter how broad your previous life experiences may have been, buying a home is a very big deal. For a first time buyer, whether here in Spring Hill FL or anywhere else, the impact of that life-changing purchase is doubly impactful. It affects different people in different ways, but after the dust clears, there is one emotion I never want my Hernando County first-time buyer clients to feel: remorse.

You might think that the size of the transaction makes it wildly unlikely that even a first time buyer would overlook any major missteps. After all, when you are new to such an important purchase, you are bound to be extra cautious. Yet when you consider the challenging distractions along the way (going through your first mortgage approval process; scraping together a down payment; learning how inspections proceed, etc.) it’s easy to see how they can trip up a first time buyer. Getting any one of them dealt with can become a main preoccupation…so much so, that seemingly minor issues get overlooked. It’s part of my job to do my best to see that my Hernando County first time buyer clients stay vigilant on all fronts.

Common concerns to watch for:

Foundation Problems Related To SinkHole Activity – The true frustration of dealing with a home with foundation problems is something a first time buyer may not fully appreciate. They aren’t for the faint of heart (or the faint of pocket book).  Foundation problems can cost $50,000 for even a simple fix — but a first time home buyer usually doesn’t have that expectation. If an inspection reveals any sort of foundation issue, it’s an absolute ‘must’ to call in the experts to assess the severity of the problem – no matter what the time pressures may be. A search through public record and permiting records can help quickly identify any previous settlement issues which may have been recorded in the county. Keep in mind however, if a home has been remediated, the seller must be able to provide a full engineering completion report. In those cases, assuming the documentation is proper, its a pretty safe bet that the issue has been resolved and there will not be a future worry. Expert advise and reviews are also the proper course of action, the Team at Agent Trust has extensive knowledge in this area so dont hesitate to ask any questions you may be thinking.

Faulty Siding –  Expensive to fix and ugly to look at, improperly-installed siding was a big problem in the 1980s and 1990s. While many of those issues have been addressed by now, bad siding can still plague a new homeowner.  Believe it or not, it can cost as much as $25,000 to $150,000 to replace. Anyone considering a home built in the 80’s or 90’s should be sure to pay extra attention to the siding during inspections.

Special Assessments – Real Estate Agents in Hernando County and all areas for that matter dread seeing the words “special assessment” on a listing: these are additional costs to a homeowner in a condo or homeowners association that any project, repair or unexpected cost can trigger.  The cost to re-side a condominium complex, for example, can easily run into the $100,000 range, typically divided among the homeowners.

Rental Homes In Hernando County- Hot Market After Foreclosure Uptick

 

Rental Homes Uptick Follows Foreclosure Glut

Foreclosures Draw Hernando County Real Estate Investors’ Attention

The housing market’s new signs of recovery are accompanied by continued life in the rental homes investment market. Alert investors picked up on the earlier foreclosure epidemic – especially this year’s income stream-producing variety. ‘Buy low, sell high’ had largely become ‘buy low, rent high’ as rising rental rates met swooning residential prices. Although housing’s bottom appears to have been reached and newly reversed, Hernando County Real Estate rental homes rates are still subject to the general uptick. In short, opportunities for investors remain.

We’ve talked about the topic earlier, but for those who missed it, here’s a thumbnail review:

The foreclosure market draws attention.

This spring, newspapers like the L.A. Times widely trumpeted the investment rush that was underway due to the raft of nationwide foreclosures. Data tracker CoreLogic predicted a market that could be “worth $100 billion in terms of rental investments” for 2012. The idea was to “get your hands on a great foreclosure deal” with the long term in mind. Many investors did take them up on it, usually realizing the intended results. For most investors who continue to keep tabs on Spring Hill Florida rental homes market, the most common strategy remains buying low, then making the repairs necessary to rent high.

Rental home rental rates climb.

Although you’d usually expect an inverse relationship between home prices and rental rates, the signs of an apparent turnaround in the Hernando County Real Estate homes market doesn’t seem to have had much of an impact on the rate of rental increases. If that holds, it means that buying rental homes in Spring Hill FL as an investment could continue to produce for the foreseeable future – depending, of course, on keeping them occupied by quality tenants. Which finally leads us to….

Increase in renters

As part of the fallout from the financial crisis and maddeningly slow recovery we are still experiencing, a continuing stream of those forced to default on their mortgage payments have joined the ranks of renters – many of them high quality tenants. That’s an added incentive to Hernando County rental homes investors, allowing them to feel more comfortable spending on the repairs often needed to turn foreclosures into a desirable rental homes.  

Foreclosure Sales In Hernando County- Landing The Deal

Market Preparation Helps Hernando County Foreclosure Buyers

Foreclosure Wave Could Also Signal Opportunity

 

If you are organized and willing to put in some serious spadework, buying a Hernando County foreclosure can save you thousands of dollars. A new wave of foreclosures could be heading our way later this year. According to RealtyTrac, the leading source of foreclosure statistics, one in every 665 national housing units received a foreclosure filing in June. More foreclosures mean more opportunities; but it also means that more buyers will begin to think seriously about going after them. In other words – more competition.

If you have never looked into what is involved in snagging one of the foreclosures in our area, a few basics will greatly improve your chances for success:

 

Do Your Research So You Can Act Quickly.

The foreclosure market performs differently from the traditional market. Arming yourself with accurate comps and knowledge of Hernando County trends will enable you to recognize the right opportunity as soon as it arises – ideally, before other buyers catch wind of it. Working with a knowledgeable agent who keeps you informed is the quickest way to get up to speed. It will help you avoid being dragged into bidding wars with other deal-shopping buyers. Since under-bidding will cause you to miss the best opportunities, and over-bidding will defeat your whole purpose, up-to-the-moment market knowledge is essential for formulating a canny offer.

Weigh in With Cash.

Time is an important factor in buying a Hernando County foreclosure. Your goal is the same as the seller’s: to close the sale as quickly as possible. Naturally, paying cash up front is the simplest route to a speedy closing. If you are buying as an investment, that means targeting only properties that are within your financial reach. As Ron Peltier of HomeServices of America puts it, “A cash buyer who can close in 10 days can certainly get the best deal.” Since closing on a house via traditional mortgage can take anywhere from 30 to 60 days, it is clear which route sellers prefer.

3. Create Clean Offers.

If, like many of my clients, you can’t really afford to propose an all-cash deal, you can still create an offer that lands your foreclosure. Writing a clean offer – one with simple terms and serious cash down — can bring a favorable reaction. Let’s face it: bank officers don’t want to fuss with complicated terms or repairs. A buyer with 20% down, a confirming loan and an “as-is” offer will get a lot more consideration than a buyer with an FHA loan and a minimal deposit. Success means targeting foreclosures at a price point where you can afford to put as much down as possible…then being ready to get dirty and make any needed repairs yourself.

As with any vigorous market, participants need to play by the rules or else be stuck on the sidelines. If you are considering buying a Hernando County foreclosure and are looking for an experienced agent to stand by your side, call me — and let’s get to work!

 

Hernando County Real Estate Market Becoming Very Attractive To Foriegn Investors

Hernando County Real Estate Part of Global Investing Picture
Foreign View:U.S.Homeowners Sitting Pretty
Foreign Buyers Snap Up Residential Real Estate

For quite a while, Hernando County residential real estate holders – that is, homeowners – haven’t had to work very hard to come up with a description for the U.S. real estate market. ‘Lousy’ certainly came to mind. ‘Bleak’ was a strong contender. ‘Cautiously optimistic,’ at best a distant third.

Hernando County Real Estate

Find A Home In Hernando County

So this months Wall Street Journal report came as a quiet reminder that, for serious-minded investors who view our situation from a less-involved perspective, our residential real estate outlook is neither lousy nor bleak. In fact, the combination of lower residential prices and the international currency environment has created a ‘property-buying binge’ by Asians, Canadians, Europeans and Latin Americans – more than 60% of whom pay in cash.
“There’s this international view that America is on sale,” according to one property manager. He should know; he’s an executive whose Chicago-based company buys foreclosed homes and manages them for investors. A year ago, all of his investors were domestic. Now, one in five is foreign.
Whereas before, most foreign residential real estate investors were interested in ‘trophy’ properties to enhance their personal prestige, the new onslaught is coming from buyers who see that they can earn high returns by buying here, renting, then reselling in the future when the market rebounds. It seems that in many countries, a residential real estate downturn is expected, but has yet to occur. In their estimation, ours is already history.
It looks like “a gift,” according to one developer, who judges that an oceanfront condominium in Rio de Janeiro sells a level 50% higher than an equivalent property in Miami. International or domestic, investment money is always drawn to bargains — but when bargain basement prices are combined with the perceived safety represented by U.S. residential real estate, the lure is apparently irresistible.

FOREIGNERS SNAP UP PROPERTIES IN THE U.S.” was Nick Timiraos’ headline, with a caption that read, “To many Americans, plowing money into real estate has never looked like such a risky venture. But to many foreigners, U.S. housing has never looked like a smarter investment.”

Thanks, Nick, for giving us some outside perspective; I guess we can adopt the ‘cautiously optimistic’ view with a lot more confidence. If you have been waiting on the sidelines to make your own Hernando County residential real estate investment, I hope you will give us a call when you decide that now is the time to invest in property in Hernando County and the Spring Hill area. We are standing by to help you find the property you’re looking for!
6113 Exchange Way
Hernando County FL, 34202
941-907-9444

E Loans Mortgage Inc

6113 Exchange Way

Hernando County FL, 34202

727-946-0904

Home Buyer Work Shops In Hernando County Florida

Hernando County Real Estate Show

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Online Workshop Schedule

 

 

10 Secrets to Sell Your Home Fast…Even in a Down Market!

Thursday, June 30, 09:00 PM  Click here to register now!

 

20 Things You Must Know Before Buying a Home

Tuesday, July 5, 09:00 PM  Click here to register now!

 

25 Things You Must Know Before Applying for a Mortgage

Thursday, June 30, 09:00 PM  Click here to register now!

 

5 Ninja Strategies to Help You Negotiate Like a Pro!

Wednesday, July 6, 12:00 PM  Click here to register now!

 

8 Big Insider Secrets to Building Your Credit Score Fast!

Thursday, June 30, 09:00 PM  Click here to register now!

 

Divorcing and Home Ownership: How To Avoid The Nine Biggest Mistakes

Tuesday, July 5, 09:00 PM  Click here to register now!

 

The Best Kept Mortgage Secret: USDA Guaranteed!

Tuesday, July 5, 09:00 PM  Click here to register now!

 

The Insiders Guide to Reverse Mortgages!

Tuesday, July 5, 09:00 PM  Click here to register now!

 

Zero Down! Fact or Fiction? The Truth About VA Loans!

Tuesday, July 5, 09:00 PM  Click here to register now!

 

 

Brought To You By;

Steve Fingerman

E Loans Mortgage Inc

4117 Mariner Blvd.

Hernando County Florida, 34609

Office 352-688-7949

Cell     727-946-0904

http://www.fhaforall.com

What To Watch out For When Buying Distressed Property In Hernando County Florida

Buying a Distressed Property?

Here is the skinny on what you need to know to protect yourself in today’s Real Estate Market.

With all the distressed properties out there, and all the short sales there are a number of things that buyers need to be aware when shopping for a home. Buyers today should be extra cautious, as the saying goes: “It’s Buyer Beware”. That has never been more true than it is today, so here are the basics you should be aware of.

Hernando County REO Experts

 Appraisals can Kill Your Deal.

With the implementation of HVCC which is basically supposed to provide appraiser Independence, lenders don’t have the same control over appraisals that they used to. HVCC requires that a 3rd Part Management Company be used in ordering and procuring appraisals. The problem with that? Well many times a management company will “farm out” the appraisal to the lowest bidding appraiser rather the most experienced or familiar with the area. The end result, a poor quality appraisal that may not necessarily reflect the true local market value of the property. It’s funny that this is even happening since the end result is the exact opposite of what the rule was intended to do, but none the less, this is the reality of it. According to the National Association of Realtors about 10% of transactions nationally die each month due to issues with Appraisal Values coming in lower.

STOP HVCC

What can you do to guard against that? For starters, carefully interview your lender. Find out details regarding their appraisal process and who the management company is. For example here at E Loans Mortgage Inc, Yellow Sign is the only management company we use to order appraisals and they are also an affiliated business. Although they operate independently, their policy is to only hire and approve appraisers with a minimum amount of local experience and also a proven track record of quality work. To further ensure appraisal quality, Yellow sign limits the range of how far they will go for an appraiser to within the subject property area. This ensures that only local professionals who know the local market are going to be used. You can also further protect yourself by making sure you use a knowledgeable local Realtor who has experience in the local market and knows the pricing trends and current market activity. Your Real Estate Professionalshould be able to provide a detailed Comparative Market Analysis also known as a CMA on the property you are interested in buying. A proper CMA will help you and your Real Estate Professional determine what to offer and will make sure your offer and final accepted contract are in line with where the property will actually appraise at.

 Undisclosed Problems With The Property

Unfortunately, if you are buying a home from a Bankthat has been foreclosed on the Bank is under no obligation to disclose anything to you about the property. These sales are truly buyer beware and it’s crucial that you and your Real Estate Professional implement a carefully thought out Due Diligence Process. In our local are of Hernando and Pasco County sink holes are a prevalent force of nature and should be thoroughly investigated prior to commencement of any Foreclosure Purchase. Un-repaired Sink Holes will devalue your property faster than setting it on fire and watching it burn down. Your Real Estate Professionalshould check with all local building and zoning departments to ensure no prior permits were pulled for both Sink Hole Repairs and all other alterations. An open permit that has never been closed out can lead to numerous other issues. At best case, there may be a fine you have to pay in order to get the permit closed out and final-ed. A not so best case scenario may be the County asking you to tear out anything that was previously done and bring it to code, that’s something that can easily add up to thousands of unexpected expenses after you close if it was unknown at the time of purchase. At the very worse case scenario, you may find out that there was prior Sink Hole Activity that was not repaired. If this is the case, you should RUN fast and far from the property, additionally if discovered by your lender it will not be something they would be willing to finance anyway. Some prior Sink Holes may have been repaired by the previous owner prior to the bank taking possession and often times the building department will have all the necessary documents to verify the completion of the repair the scope of the work and even the engineering reports. These cases may offer a huge negotiating opportunity, assuming of course you are comfortable with a repaired Sink Hole. In any case, you and your Realtor’s due diligence will go a long way in protecting you from a financially devastating mistake. For information about Sink Holes and the Stigma that goes with them, Jeanne Gavish at Keller Williams in Hernando County Fl wrote an excellent piece on Sink Holes and The Stigma of a Sink Hole.

Foreclosure In Hernando County

 Your Lender Demands Repairs

Your Contract may be an AS IS Contract, and you may very well have agreed to purchase the property with all it’s inherent minor defects knowing that you can easily deal with the repairs later, but do not expect your lender to look at it the same way. In today’s market, banks don’t really want another distressed property, especially on a newly originated loan. Things like cracked windows, missing A/C systems or damaged dry wall will more than likely be red flagged by your lender. When looking at homes that need extensive or significant work the Loan Type that you are trying to procure can be the difference between a successful closing or a bout of frustration that will leave you pulling the hair out of your head. FHA has a great program called a 203K. It’s essentially a loan that is designed to let you acquire a property which may need repairs and then fund those repairs into your loan. There are 2 types of 203K loans, a streamline 203K and a full blown 203K. The difference is the streamline 203K Loan will limit the dollar amount of the repairs to no more than $35,000.00 and will generally limit the number of items to be repaired to only 2 items. Although Allied will allow more than 2 items on a streamline 203K to repaired many other lenders will not, and although we may allow for more than 2, it’s not going to a blank check to repair more than a few different repair types. If it needs extensive work, opt for a full 203K. Expect the time-line of your closing to stretch a little further on a full 203K loansince it will require a HUD Counselor work with you and your selected contractor. Typical closing time for these is about 45 days. You should also retain the services of a reputable and properly trained Home Inspector like Jim Calleri at Affirmative Home Inspection in Hernando County. A good home inspection will save you from unexpected surprises down the road and will save you from potential financial disaster later.

 Title/ Deed Problems With Property

Title Companies In Hernando County

By now we have all heard of Robo Signing, and the foreclosure fraudthat may have occurred on thousands of Foreclosure cases across the country on the part of Attorney’s working to speed up the foreclosure process for the Banks. Well we are starting to see the effect of that coming out into the market place. Title issues will derail your deal faster than you can blink an eye and often times they wont surface until you are well into the transaction and are vested both financially and emotionally. Buyers today who are considering purchasing a foreclosed home should consider finding a local title companythat they are comfortable with. Although you may end up being required to use the Bank’s choice of title company when it’s time to get a deal completed, a local title company can help you with the due diligence process. Local Title Companies can perform a Title Searchfor about $75.00, the may be money well spent considering that finding out about a Title Issue after the Appraisal and Inspections are will cost you between $600-$700 out of your pocket that you may not recover. Recently we had a transaction where we discovered to late into it that there was an issue with the Foreclosure Process and it required the seller( A Bank) to go back and amend the Foreclosure Summary Judgment. This created a cloud on Title and thus the seller could not deliver clear title. The propertyhas subsequently been temporarily taken off the market and the contract has been put on hold while the buyers are forced to wait for the court proceedings to take place and correct the Foreclosure Summary Judgment so that a revised Certificate of Title can be recorded. With out this, the seller or Bank does not have the legal right to sell the property. What’s the buyer’s recourse? They can move on to a different property. Although they will get their escrow deposit back, the money spent on inspections, appraisals etc is lost forever. Luckily the buyer is in the position to wait it out but many buyers wont be in that position and the delays can be costly especially when you are planning a move from a rental to your new home since you may have to extend your lease a potentially pay a higher rent for the extended time.

For more information on how to better protect yourself in your purchase of Real Estate in Hernando County Fland the surrounding areas feel free to contact me and I will do my best to make sure you have all your bases covered. You can reach me anytime on the Cell at 727-946-0904. Buying a home is an exciting process, a little careful planning will go a long way to make the experience stays positive and is something you will remember as one of the best times in your life. You can count on the staff at E Loans Mortgage Inc in Hernando County to make sure your Real Estate deal goes as smooth as possible. We are here to serve and protect you, our customer for life!

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