Proud Family Estates LLC

10/21/2021

What Is a Home Warranty? Peace of Mind for Home Buyers

What is a home warranty? In a nutshell, it’s a policy a homeowner pays for that covers the cost of repairing many home appliances if they break down.

After all, lots of things you buy come with a warranty in case they break down, from cars to smartphones. But what about homes? It turns out you can get a home warranty plan, too.

“Home warranties provide financial protection from a service provider for homeowners who might be faced with unexpected problems with their appliances,” explains Shawna Bell of Landmark Home Warranty.

Many people buy a one-year home warranty plan right when they close on a home, since such protections can provide some much-needed peace of mind that you won’t get hit with unexpected, out-of-pocket expenses soon after moving in. Imagine what a bummer it would be, after all, to wake up one morning to a broken boiler, knocking appliances, a leaking water heater, dripping plumbing, or malfunctioning fridge in your new home.

A home warranty plan can lessen those homeowner and appliance worries, which for many is worth every penny. A couple of warranty plans to consider: Choice Home Warranty and TotalProtect.

What does a home warranty, like one from Choice Home Warranty, cover?
Don’t mistake a warranty for homeowners insurance, which covers your home’s structure and belongings in the event of a fire, storm, flood, or other accident. Home warranty companies, in comparison, will cover repairs and replacements on home systems, including electrical systems, plumbing, water heater, washer, and kitchen appliances due to normal wear and tear—no calamities required.

Read the rest on our website in the link in our bio.

10/21/2021

10/21/2021

How to Arrange a Rent-to-Own Agreement?

A rent-to-own agreement can be a good way to become a homeowner, but you need to be very careful to have a written contract with the homeowner that is fair to both parties. A good realtor can help you with this, but you should also consult a lender and a real estate attorney to make sure your interests are protected.

You can search online for rent-to-own ads and contact real estate companies to ask if they have a realtor who specializes in this area. Many realtors invest in real estate themselves and are willing to write a rent-to-own agreement on their own property. However, you need to be certain that you understand how the arrangement will work.

Typically, you’re negotiating to buy the home and negotiating about the rent at the same time. The seller will want to make sure they get an appropriate price for their home, but, of course, by the time you actually buy the home prices for comparable homes could be higher or lower. Discuss with the seller how that will impact your agreement.

It’s particularly important to understand how the lease period will end. You’ll need to discuss with the homeowner what would happen if you changed your mind about buying the home at the end of the one- or two-year lease.

Generally, the seller will give you a credit for some part of your rent that can be used as a down payment for the purchase, such as $250 per month. In many cases, by adding this additional payment, your rent will be above the normal market rents in your area, so you should consider whether it makes sense to pay more in rent to get the credit or to rent something less expensive while you save money on your own.

Read the rest on our website in the link in our bio.

10/21/2021

How to Get a Mortgage After Bankruptcy

Declaring Chapter 7 or Chapter 13 bankruptcy is often devastating and can make getting a mortgage after bankruptcy and buying a house challenging.

Going into bankruptcy shuts down your ability to borrow money or use a credit card, severely lowering your credit score. It will take some time to build back enough credit to take out a mortgage on a home. However, with proper preparation, patience, and financial planning, you might be able to get a mortgage sooner than expected.

Here’s how to work yourself back to homeownership and get a mortgage after bankruptcy.

Discharge and organize
First things first: The bankruptcy must be discharged. If you are still in the process, or if you are still in credit counseling or any other program that takes over your finances, no mortgage lender will speak to you.

Once your bankruptcy is discharged, organize and scrutinize your credit report. If there are debts that have been paid back but still appear on your report, contact the credit agency and have them corrected. While you’re at it, check for other mistakes on your credit report. You are entitled to one free credit report from each of the big three credit rating agencies each year—Equifax, Experian and TransUnion. If there is an error, dispute it online via the particular credit agency’s website.

Use secured credit cards and installment loans
The fastest way to start rebuilding your credit score after a bankruptcy is to prove to creditors and other lenders that you can be trusted to pay back the money you owe them. You can do this two ways: secured credit cards and installment loans.

Read the rest on our website in the link in our bio.

10/21/2021

How to Handle a Home Seller’s Counteroffer

When you have found a home you want to buy and submitted a purchase offer to the sellers or the sellers’ agent, the sellers have the right to accept it or make a counteroffer.

The likelihood of you receiving a counteroffer depends on several factors, including whether your local market is skewed in favor of buyers or sellers, how long the home has been on the market, how eager the sellers are to move, and whether your offer comes close to the sellers’ expectations.

Typically, a counteroffer will include a higher price and/or a larger earnest money deposit, a different closing date, a change in the contingencies or the timing of the contingencies, or an exclusion of specific fees. You can accept it, reject it, or make a counteroffer in return.

A counteroffer will always include an expiration date. If you don’t respond by the seller’s expiration date, the offer is void and the seller can accept an offer from someone else.

What to do with a counteroffer
Your decision about how to handle a counteroffer will depend, in part, on how much you want this particular house.

If you’re fine with the sellers’ conditions in their counteroffer, you can simply accept the offer by signing it.

If you don’t like the counteroffer, you and your real estate agent should discuss the specifics of the offer and see if there are parts of it that you can accept. You can make a counteroffer to the sellers with a new price or a different set of contingency dates or a larger earnest money deposit—anything that’s acceptable to you and that you think could sway the homeowners to sell their property to you.

Read the rest on our website in the link in our bio.

10/21/2021

Can You Cancel a Real Estate Contract?

While real estate contracts vary from one jurisdiction to another and each contract is individually negotiated, many have contingencies that allow either party to cancel under specific circumstances. However, neither side can just say “I changed my mind” without facing some consequences.

Real estate contracts for buyers
As a buyer, you typically provide an earnest money deposit when you make an offer on a home. The deposit is credited toward your down payment or returned to you if the real estate contract is legitimately cancelled. If you want to get out of a real estate contract without meeting the terms, you risk losing your deposit. However, your contract will usually include contingencies that must be met by a specific date. If any contingencies are not satisfied, your deposit should be returned.

Some common contingencies include:

A specified period of time to review condominium or homeowner association documents
A satisfactory home inspection
An appraisal — a lender won’t provide financing above the appraised value of the home
Financing — if you can’t get a loan approved, your deposit will be returned
A title survey

Normally, buyers and sellers negotiate any issues that come during the home inspection or renegotiate the deal if the appraisal comes up short.

Some buyers use the home inspection or document review as a way of getting out of a contract if they have changed their minds, but it’s far better to wait to sign a contract until you are absolutely certain you want the home and can afford it.

Read the rest on our website in the link in our bio.

10/21/2021

The Pros and Cons of Buying an Old House

Warm and lived-in, with a majestic fireplace, wood craftsmanship from another era, and a crooked old apple tree in a beautiful garden—only an older house comes with its own personality.

But that personality could come with a steep price in upkeep and renovations to meet the needs of your family and your modern tastes. How do you decide if an older home is worth it? Consider our list of pros and cons:

Con: Outdated building code compliance and other maintenance

Homes with old heating systems or inefficient plumbing can be in such bad shape that they do not comply with modern building codes. It is a good idea to take a careful look at each system in an older home (heating, wiring, plumbing, air conditioning, etc.) to make sure they are modern, efficient and safe. Replacing these systems can be expensive. Chimneys may need realignment or need to be fitted with draft excluders. Older windows may need to be replaced.

Pro: Location, location, location

Older homes are often built closer to the center of town, making it easy to walk to local shops, schools and other amenities. If you happen to find an old house out of town, it could still have local shops, schools and other amenities within walking distance.

Con: Lack of storage

People tend to buy and own more items now than ever before, so storage in old houses may present an issue. An older home may lack modern closet measurements. They often have sloped floors and imperfect edges, so installing cupboards and shelves may require a professional, which could be expensive. You can do things, however, to make the house more appealing to a younger buyer who likely has more storage needs.

Read the rest on our website in the link in our bio.

10/21/2021

Home-Buying Mistakes to Avoid at All Costs (or Else)

Putting down roots can be exciting, but you don’t want to rush into it. Making simple errors while searching for a home can cause a lot of stress—both emotional and financial—for years to come. So, take some time to educate yourself about the six most common home-buying mistakes people make, and your own experience is more likely to be successful and exciting.

1. Going over budget
Don’t borrow more than you can comfortably afford. For example, don’t get a 15-year mortgage with high monthly payments when a 30-year mortgage will give you more wiggle room. Otherwise, you’ll be strapped for money and unable to save as much as you want. A rule of thumb: Total monthly debts, including your mortgage, should not exceed 43% of your total pretax income.

To figure out if you are getting a good deal, do a comparable market analysis through a Realtor®. Factor in other costs such as agent fees, escrow fees, title and homeowners insurance, property taxes, legal costs, notary fees, and closing costs.

2. Using the wrong agent
Avoid dealing with a dishonest or unqualified real estate agent by selecting an agent who is a member of the National Association of Realtors®. Realtors work as licensed, independent contractors through real estate firms and are governed by strict regulatory guidelines.

Interview a few Realtors, and pick the one you feel best represents your needs.

Read the rest on our website in the link in our bio.

10/21/2021

3 Risks to Consider When Buying a Vacant Home

An unoccupied home may be the best bargain on the block, as vacant homes often are listed for sale at a reduced price. Yet, potential buyers should beware: vacant homes can experience problems due to neglect, lack of maintenance, aging, natural and human damage, and other factors.

Whether a home became vacant because of death, divorce, relocation due to employment or another life event, here are three things to consider when you are thinking about buying one.

1. Lack of utilities limits home inspection
Potential homebuyers typically have a professional home inspector evaluate a house’s condition to assist with the purchase decision. Yet unoccupied homes often have had their utilities turned off. With no way to check the water, electricity, gas, heating and cooling systems, and appliances, even a professional home inspector will be unable to thoroughly evaluate the house. There could be wiring problems, water or gas leaks or other defects — any of which would be very costly to repair.

While it might be possible to have utilities turned on temporarily, that can be a hassle and requires paying a deposit and putting the utilities in the prospective buyer’s name. Even if utilities are turned on, a potential buyer may have to accept some things as-is, such as a swimming pool, because you’re unlikely to get the entire system running just for an inspection, according to Bankrate.com.

On the other hand, without utilities, forgoing major system inspections is a big risk.

Read the rest on our website in the link in our bio.