According to the United States Department of Housing and Urban Development (HUD), the following are some examples of real estate fraud.

• Home improvement scams, where loans are obtained in the name of fictitious borrowers, or in the  name of people unaware their identities are being used;
• Equity fraud, which occurs when a person forges a property owner’s signature on a deed and equity in the property is stolen through loans taken against the targeted property;
• Flipping, which involves buying property and reselling it at an inflated price based on fraudulent appraisal values;
• Fraudulent loan origination, where unqualified buyers obtain funds for Federal Housing Authority (FHA) insured mortgages; and
• Equity skimming, where an owner sells property to a bogus buyer at a price well above its actual value.

Warning Signs for Real Estate Fraud

Anyone can be vulnerable to real estate fraud and identity theft, however, the elderly and economically challenged traditionally have been targeted. Below are some common warning signs of real estate fraud:

• You receive official documents indicating a transfer of property and you have no knowledge of the transaction;
• You did not receive a property tax bill. This can be the first sign of fraud; and
• You receive mortgage documents or payment books for loans for which you never applied.

Protect Yourself and Your Property

Monitor your credit periodically for unexplained activity. You can also check the Orange County Clerk-Recorder Department’s online Grantor/Grantee Index to check for recorded transactions that may affect ownership of your property. http://cr.ocgov.com/grantorgrantee2/welcome.asp

Reporting Real Estate Fraud

Immediately contact your local police department if:

• You receive unexplained property documents or the information on the document(s) has been altered after you signed it;
• You receive documents that you didn’t sign or you believe the person signing the document was incompetent or deceased at the time of signing;
• You didn’t sell, borrow or make a gift transfer of property yet receive notifications to that effect; or
• You believe a fraud or misrepresentation has occurred in a transaction with which you were involved.

The Orange County District Attorney’s Consumer Protection Unit prosecutes unfair business practices. The unit reviews and/or investigates complaints involving misrepresentation and deceptive practices in connection with the sale or advertisement of goods and services.

http://prudential.ocregister.com/2011/11/15/carol-chirpich-now-a-certified-negotiation-expert/5393/

At work for my clients

First is help in finding the right home, but a highly rated second is helping in negotiations of the terms and price, according to the 2010 National Association of Realtors HomeBuyer_Seller Survey.

This is why I recently earned the Certified Negotiation Expert (CNE) designation, by completing an advanced curriculum of hands-on training courses and formal educational requirements.

The real estate market has been particularly challenging for the past few years. It’s more important than ever for my clients to have someone on their side who understands how to collaborate with their colleagues, communicate effectively and resolve any issues that could hinder the closing of their transaction.

2010 Home-Buyer Survey

Drawing from the knowledge acquired from working in real estate valuation services for 24 years, I provide my clients with detailed information about the market and pricing of potential homes.

Sure, you can do your home search by yourself. But why? With an experienced Prudential California Realty Sales Professional at your side, finding the perfect home is easier, faster and a lot more fun. A good Realtor® can show you more suitable properties, offer valuable advice, and coach you through the entire home buying process. And you’ll save time. Yet many buyers still spend endless hours pouring through classified ads, driving all over town, and viewing dozens of unsuitable properties – simply because they haven’t connected with a Realtor®.

Some people think that if they have several agents looking for homes on their behalf, they’ll find a house more quickly. Like most relationships, the buyer-agent relationship thrives on communication, loyalty and trust. By working exclusively with one agent, you’ll improve both the process and the results.

Finding The Right REALTOR For You

Chemistry is important. So are credentials. Above all, you’ll want an experienced agent who has the resources of a leading real estate firm behind him or her-a firm such as Prudential California Realty.

Some helpful hints on finding and working with a Realtor®:

• Ask friends, family members, neighbors or co-workers for referrals.
• Trust your intuition.
• Share with your REALTOR as much as possible about your lifestyle, tastes, needs and dreams for your home.
• Focus your search on a few geographic areas.

Plus ask him or her some of the following questions:

How well do you know the area(s) that interest me?
A REALTOR who knows the area or neighborhood you are interested in is extremely beneficial to you.

How many other buyers and sellers do you currently represent?
You want A REALTOR who will give you personalized attention, answer your calls quickly and communicate with you often. Keep in mind, though, many busy, experienced REALTORS are the most efficient.

Will you handle all aspects of my transaction or will you delegate some tasks to an Administrative Assistant?
If you choose to work with a busy agent, a knowledgeable assistant can be very helpful when you have questions or need immediate attention.

Will you give me a list of homes you sold in the last 12 months?
Contact some clients that have worked with the agent and ask them about their experience. The list should contain addresses, property types, names of sellers or buyers, sale dates and price. Ask the REALTOR for testimonials from satisfied customers.

Someone has decided your property is just right––and makes you an offer. When your Prudential California Realty Sales Professional conveys the offer to you, you’ll know whether the price the buyer has suggested is fair. It may be less than your asking price. Yet you don’t have to reply immediately if you’re not certain the price and terms are acceptable.

Consider the current real estate market: Are houses in your neighborhood selling quickly, slowly or not at all? Don’t assume that one offer will lead quickly to others. One predictable factor in the real estate market is that it’s totally unpredictable.

Finding a Compromise

If you and your potential buyer are far apart, you could offer a few concessions such as appliances or a security system, or make some improvements prior to closing.

Drawing Up a Purchase Agreement

Your purchase agreement will include:

• The total price
• The amount of the down payment
• The date the closing will take place.

When completing the agreement, provide as much detail as you can about what’s being sold and what’s not. The more fully you spell out the details of the sale, the less room there is for problems later.

Most buyers insist that a provision for cancellation without penalties is included to protect them if they’re unable to get a mortgage, or the home inspection uncovers major problems. They might also ask you to make your sale contingent on the sale of their current home. Delays happen frequently, so expect to do a little waiting before your agreement is finalized.

Curb Appeal Is Essential

A mowed, trimmed lawn and weeded garden create a good first impression. Inspect the exterior of your property: Shutters, windows, front door and steps. If the house needs painting, buyers will notice and may consider it a major objection to purchase.

Neatness Counts

Scrub each room thoroughly. Give special attention to the entryway, kitchen and bathrooms. Shampoo the carpet if necessary. If carpet is worn or old, consider replacing or removing it if hardwood floors are underneath. And don’t forget cobwebs in corners!

Eliminate Clutter

Buyers will open closets and cupboards, so make sure they’re as tidy as possible. Get rid of items you don’t use. Remove unnecessary furniture to help make each room appear more spacious.

If It’s Broken, Fix It

Easily fixable items such as loose doorknobs, a broken dishwasher, a dripping faucet, and squeaky doors all detract from your property’s value. An afternoon spent making needed repairs now can eliminate a buyer’s objections later.

Small Changes Can Make A Big Impression

New towels can freshen a tired kitchen or bath. Fresh flowers add warmth to any room. And even a fresh coat of paint doesn’t cost much.

Don’t Forget About Aromatherapy

Make sure your home passes the scent test. Right before an open house, bake some cookies or bread, simmer a pot of apple cider & cinnamon on the stove, or light a few scented candles. Strong odors could send potential lookers running out the front door.

Time for nervous anticipation. You’ve found the home you want, and your Prudential California Realty Sales Professional says you need to act fast. Yet you want to be as calm and objective as possible. The expertise A Prudential California Realty Sales Professional can give you at negotiating time is priceless.

Negotiating The Buy

The expertise a Prudential California Realty Sales Professional can give you at negotiating time is priceless.

Be prepared for counter offers. Don’t let the pressure get to you. Remain patient, and let your Prudential California Realty Sales Professional act as your liaison with the seller or the seller’s agent. You may need to be flexible on price, closing date, appliances and repairs.

Contingencies

Beware of putting contingencies in your purchase agreement. They weaken your offer. However, if you currently own a home, your offer may need to be contingent on it selling. Or, if you’re uncertain about the structural integrity of the home, you may want to have a home inspection contingency. Just be aware any contingency could take you out of the running if a non-contingent offer is presented.

Earnest Money

Once your offer is accepted, be prepared to seal the deal with earnest money. Earnest money is usually a percentage of the home’s purchase price that indicates you’re serious about the purchase and indicates your good faith. It’s generally applied to the purchase price when you complete the purchase, but may be forfeited to the seller if you fail to complete the purchase. Contact your Sales Associate to determine the amount of earnest money you should be prepared to pay based on your target home price.

Many first-time buyers are taken by surprise when it comes to earnest money, especially if they have to make a fast offer. Be sure to discuss with your REALTOR the appropriate amount of earnest money you should be prepared to pay based on the price range of properties you’re looking at. You should have this amount available in your checking account so you can write out an earnest money check on the day you sign your purchase agreement.

Sure, you can do your home search by yourself. But why? With an experienced Prudential California Realty Sales Professional at your side, finding the perfect home is easier, faster and a lot more fun. A good Realtor® can show you more suitable properties, offer valuable advice, and coach you through the entire home buying process. And you’ll save time. Yet many buyers still spend endless hours pouring through classified ads, driving all over town, and viewing dozens of unsuitable properties – simply because they haven’t connected with a Realtor®.

Some people think that if they have several agents looking for homes on their behalf, they’ll find a house more quickly. Like most relationships, the buyer-agent relationship thrives on communication, loyalty and trust. By working exclusively with one agent, you’ll improve both the process and the results.

Finding The Right REALTOR For You

Chemistry is important. So are credentials. Above all, you’ll want an experienced agent who has the resources of a leading real estate firm behind him or her-a firm such as Prudential California Realty.

Some helpful hints on finding and working with a Realtor®:

• Ask friends, family members, neighbors or co-workers for referrals.
• Trust your intuition.
• Share with your REALTOR as much as possible about your lifestyle, tastes, needs and dreams for your home.
• Focus your search on a few geographic areas.

Plus ask him or her some of the following questions:

How well do you know the area(s) that interest me?
A REALTOR who knows the area or neighborhood you are interested in is extremely beneficial to you.

How many other buyers and sellers do you currently represent?
You want A REALTOR who will give you personalized attention, answer your calls quickly and communicate with you often. Keep in mind, though, many busy, experienced REALTORS are the most efficient.

Will you handle all aspects of my transaction or will you delegate some tasks to an Administrative Assistant?
If you choose to work with a busy agent, a knowledgeable assistant can be very helpful when you have questions or need immediate attention.

Will you give me a list of homes you sold in the last 12 months?
Contact some clients that have worked with the agent and ask them about their experience. The list should contain addresses, property types, names of sellers or buyers, sale dates and price. Ask the REALTOR for testimonials from satisfied customers.

Before you go out looking for a home, you can get an idea of what you can afford by using our loan calculator (found on the homepage sidebar). This handy tool will help you estimate how much mortgage you can handle.

Another thing to consider is your down payment amount. Think you can’t buy a house without a 10% or 20% down payment? Thanks to more lenient government guidelines and new mortgage products, many people can now get into a house for as little as 3% down-or less. There are even some special programs for first-time buyers that help with closing costs.

The Benefits of Equity

Equity is the principal part of your monthly payment that you can use as a down payment on a new home, or collateral for a home equity loan. You can use a home equity loan to finance home improvements, a child’s college tuition, or a new car.

Real estate is also a great way to keep a hedge against inflation. While some homes do appreciate in value more quickly than others, real estate usually keeps pace with inflation. In fact, homes in general have been appreciating at a steady 3% a year. (Your REALTOR can provide you with the housing appreciation rates in the areas in which you’re interested in buying.)

That Wonderful Thing Called A Tax Break

As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment-and that can mean big savings. You can deduct your property taxes, too.

So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it’s about the same as-or sometimes even less-than a rent payment!

With a 5% down payment, a $100,000 30-year mortgage loan at 8% interest (8.15% APR) requires a monthly principal and interest payment of $733.76. Assuming a 28% tax bracket and $150 for monthly property taxes, the after-tax monthly payment would be about $615! (This is only an example. Please consult with a tax advisor regarding your own tax situation and current tax laws.)

Pre-Qualification vs. Pre-Approval

Pre-qualification is just a guesstimate of how much you could afford. But with a pre-approval, it’s just that: getting your mortgage approved prior to going out and looking for a new home.

Your loan officer will show you which items you should bring to apply so neither of you will need to wait for various written income, asset and liability information. So you could get a loan decision in just days. And when you apply online , you can get your approval quickly!

With every rent check you write, you’re helping to build equity in your landlord’s property. That money could be going toward building equity in a home of your own. Today’s rates are low enough that your house payment could be lower than your rent payment!

There are many advantages to owning a home, including:

Security – A feeling of security that comes from owning a home and the knowledge that your home is a safeguard against inflation.

Investment – Payments on your mortgage loan mean you are acquiring a major possession; instead of rent, you own more and more. The garden you plant, the permanent improvements you make – all enhance your way of living as well as the value of your home.

Tax Advantage – Your real estate taxes and the interest on your mortgage are deductible from your income tax.

Financial Independence – Most people start on the road to financial independence through home ownership. Your principal and interest payments remain the same for the full term of your mortgage while your rent usually goes up as the cost of living increases.

Environment – Your children grow up in the neighborhood of your choice.

Cash Equity – Better than a savings account, your home can appreciate to keep pace with inflation.

Satisfaction – Home ownership offers special advantages that make life more enjoyable – backyard barbecues, large family gatherings during holidays, a home workshop, a chance to enjoy your family’s companionship in the privacy of your own home.

How much home can you afford?

Our handy calculators can offer you valuable assistance in determining how much home you can afford and how much you can borrow. ]]> http://cchirpich.com/home-buyer-advantages-for-renters/feed/ 0