Though the housing recovery is trucking along, that doesn't mean real estate scams have gone away. Home owners have been duped out of an average of $4,000 to $5,000 from scams, but even five-figure losses aren’t uncommon for those who have fallen prey to fake loan modifications and other housing fraud. Highlighted here are four of the most common real estate scams today:
1. Rental scams: Scammers illegally pull online listing information from a home for sale and re-post it as a rental on another site, such as Craigslist. They’ll often ask for money upfront, in the form of a security deposit or broker fee, from prospective tenants. Scammers often advertise the home at a low price and collect application fees from several prospective tenants in order to hold the property for them.
Sometimes buyers are anxious to look for a home and want to get started right away. However, the first step in the home buying process is getting pre-approved for a loan. Before issuing a pre-approval letter, a lender will check a person's credit, income, debt, and assess their overall financial position. From there, the lender can state that you qualify for a loan up to a certain amount and issue a pre-approval letter. A pre-approval letter is a necessity for the following reasons:
99% of the population loves spending money if they have it. You might say you don’t, but just remember the adrenaline rush you had when you handed over the cash and carried your last purchase out to the car. It’s even better with your first home because it will be the most expensive thing you have ever bought so far, plus it’s a big leap from your next highest purchase which was probably a car. Spending so much money all at once makes you go a little crazy sometimes.
Because you’ve not bought a house before you might be in for a tough time, but this isn’t something you want. The last thing in the world you need is for something to go wrong because it will bring you untold stress. It’s even worse if you end up living in a house you don’t want because you made a mistake when you bought it. This means getting everything right the first time is absolutely essential, so we’re going to look at questions you must as yourself before you hand over any money.
Buying or selling a home is one of the most important decisions and transactions that you will make, and it pays to work with a REALTOR! Here are just a few of the reasons why:
1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.
1) Get more house for less money
Existing houses typically cost less per square foot than new builds do. And lot sizes may be bigger, too, an important consideration for people who love to spend time in the yard.
2) Move in immediately
Instead of waiting for building to complete on your new house which can take months and months, you can usually move into an existing house quickly. Typically, buyers get keys at closing or within 30 days. No rain delays or builder setbacks to worry about.
When house hunting, it’s not realistic to take a home inspector along with you to every house to help narrow down the search. For that reason HouseMaster has compiled a short list of a few red flags that even a novice might be able to pick up on a preliminary walkthrough of a house to help identify signs of possibly serious concerns. Here are six things at that should serve as warning signs that a larger problem could be lurking.
When prices and interest rates fall, new buyers are itching to take advantage of them and get into a new home. But what happens when buyers find there is little available to them? That's right: bidding wars and multiple offers.
When real estate is moving fast, it can pay off big to understand how to move quickly, and take advantage of opportunities that others miss out on. In real estate, the early bird doesn't get the worm, the early bird gets the home.
Making a big decision in a fast paced market doesn't have to be high pressure. If you go into your purchase prepared, you'll be in great shape to make that offer when the right home comes available. Here are the best techniques to make sure you're able to beat out everyone else.
Here is an interesting NBC New article about deaths in real properties and how it affects their value. In Michigan, it is not necessary for a seller to disclose a death in the house. The law reflects the idea that someone dying in a house does not affect its value. That doesn't mean that potential buyers are not concerned about it. Now there is a website consumers can check diedinhouse.com. I wonder how accurate it is? Before paying for a search at this site, the first step would be to ask the seller the question outright. Legally, they cannot lie to a direct question. If someone still has doubts or concerns, then I guess the website would be the next step.
Buying a home is one of the largest purchases of your life, and you want it to be a good investment. Here are the four most common mistakes made when buying a home, along with tips on how to prevent yourself from doing them, or how to recover if you have already made them.
Mistake #1: Not Getting Pre-Approved
The biggest mistake made by homebuyers. This is the first thing you should do if you plan on buying a new home.
How to Prevent: Easy, get pre-approved! By getting pre-approved, you’ll be able to search for homes that affordable for you, while also putting you in a strong negotiation position when you make an offer.
Found a house you love and have an accepted offer? The hard part isn’t over yet. I caution buyers to not get too emotionally attached to a property until they have completed a home inspection. In a basic home inspection, the inspector will check the structural and mechanical systems of the house (foundation, electrical, plumbing, roof, furnace, etc.) There are additional inspections for pests, radon, and anything else of special concern. A home inspection is one of the most important steps in the home buying process.
Great info on everything real estate.