Nov 012013
 

Almost ThereYou’ve probably heard the horror stories from friend or had the unlucky experience yourself where you’ve sold your property and then unexpectedly you haven’t. You were making plans to move, maybe already had an offer on another home and now everything is back to trying to sell or buy a home. It’s one of the more frustrating parts of buying and selling real estate, but it happens. So in this article we’ll discuss some of the common reasons and some indicators to be on the lookout for.

There are several items that can require negotiation when selling / buying real estate and each one can be a potential trouble spot. Obviously the starting point is negotiating the price and contingencies in the purchase agreement. An offer with more contingencies is the first warning as that makes more hurdles to get over to finally close the transaction. The Derrick Team takes pride in writing ‘clean’ offers that avoids this when possible. Solid offers mean better chances of closing making everyone in the deal happy.

Problem Spots
But there are usually at least 2 contingencies that cannot be avoided after the price has been agreed upon. First the buyers should be getting an inspection for their own protection and a seller should be prepared for this, even if selling ‘as is’. Once the inspection report is done the buyer can renegotiate getting items repaired or an adjustment to the price. This is a common part where things go wrong as the buyer is in control here and the seller has to be on top of things to keep the buyer happy. If the buyer is not satisfied they can walk away and only be out the inspection costs.

The second contingency kicks in if the buyer is getting a loan, as then the property must be appraised to determine the value meets the loan amount. This can be tricky in today’s market because of the recent drop in home prices in some areas (that’s just now starting to climb again). This is a wild card and again the seller needs to be prepared for this possibility. In some cases the appraiser will point out some condition items of the home that have to be addressed as well, especially if its a FHA, USDA, or VA loan.

A few of the other common reasons are the buyer loses their job, the buyers own house sale falls apart, or the buyer loses interest and walks away (usually forfeits the earnest money). In rare cases the seller suddenly doesn’t want or need to move anymore and does a mutual release to remove the property from the market. In that case the buyer can hire a lawyer but it usually costs less to just go find another home.

For all these reasons and more it pays to have a good Realtor working for you. As mentioned a solid clean initial offer reduces the chance of a deal falling apart.

Being Prepared
A seller should know the general condition of their property and thus have some expectations on what a home inspection is going to turn up. When setting the marketing price that should be a consideration so if needed you can have a little wiggle room to address possible issues. One of the things we guide both sellers and buyers on is that the inspection report should be used to spot potential safety and expensive repairs, not cosmetic issues. But then there is always those surprise issues that show up (mold, hidden water damage, termites, etc) that can change everything.

If the home marketing report is used to set a realistic sales price the appraisal shouldn’t be an issue. But some homes are easier to estimate depending on the types of homes in the area. If there is an issue with the appraisal there are ways to keep the deal moving forward and a good Realtor knows how to do that. But this sometimes is what we call the ‘wild card’.

So a couple of things to watch for from the initial offer are a low earnest money amount (buyer doesn’t have much to lose if they just walk), or a lot of contingencies that have to be addressed before closing. A good Realtor will discuss all these with you and if any of them are a big concern.

Another red flag can be when the lender seems to be dragging their feet on getting the loan approved resulting in multiple delays on the closing date. Again a good Realtor can stay in contact with the lender to see what is holding things up and let you know what your options are if things don’t look good.

What You Need
A smart Realtor stays on top of every deal to make sure no options are missed when things start to go wrong. We at The Derrick Team work hard for our clients to make sure we get deals closed. We advise our clients on possible sticking points to try and eliminate surprises and explore multiple options when there are. We want everybody to be happy when we walk away from the closing table with another successfully closed transaction.

Call or text The Derrick Team at 317-563-1110 when you are ready to sell or buy and know you’ll be well represented in your next real estate transaction. Use our handy Contact Form here.

 

 

 

Jun 262013
 
magexample

Dedicated web site address

One of the many tools The Derrick Team utilizes to market our listings is the Call Carpenter Homes magazine. Our listings are added in there automatically by Carpenter when we list your home. But one thing that only The Derrick Team does is include a web site address in an ad so the reader can easily get more information on your home.

Carpenter prints the exclusive Call Carpenter Homes magazine bi-monthly filled with hundreds of Carpenter listings. We talk to many people who love to browse the magazine just to see what’s out there. The Derrick Team takes this one step further with a newsletter insert featuring local information along with our own listings.

CallCarpenterMagsOn a typical month we distribute between 300 to 400+ of the magazines with our insert. We deliver in neighborhoods, through stands in local businesses, and as hand outs in open houses and events like the Hendricks County Fair. So your home gets even more exposure locally to help you sell your home.

Find the Derrick Team Newsletter & Call Carpenter for Homes Magazine at: Specks Pet Supplies on US 36 and Los Rancheros at CR 100N & 267  in Avon, Edwards Equipment on Main Street in Danville.


Looking for business owners in the Avon / Danville area to co-market with.Derrick Team Magazine Rack

If you have or know someone with a area business with walk in traffic we’d like to invite your business with a free-to-you co-marketing opportunity!

The Derrick Team is one of Hendricks County’s successful real estate teams with Carpenter Realtors and utilizes all forms of marketing, much of it unique to The Derrick Team. While we have a strong presence on the Internet, we also utilize traditional printed media to connect with the local community in Hendricks County and the Indianapolis western metropolitan area.

We will be glad to include your business information and even provide ad space in our newsletter in exchange for a location to setup stand in your business. We take care of keeping the stand full with fresh stock. You just let us know what you would like to include. We can add flyers for your business in the magazines or a coupon in the newsletter. And we will do all the printing at no cost to you. We’ll even blog about your business to increase you own Internet presence.

Now how often do you get to advertise like this for free?

Call The Derrick Team today at 317-563-1110 for more information.

 

Apr 022013
 

 

slide0013_image071If you’re looking to buy a home, this is the app for you. It currently works on any GPS enabled iPhone, iPad, and Android phone.

This app features the ability to find homes around you and bring up the MLS data and photos on your device. Point towards a home, snap a photo, and it will tell you the features as listed on the MLS.

If you want more details or want to setup a showing click the request for info and the app shoots us a request and will get back with you shortly! Can’t get much easier than that!

Just type in your mobile phone number on the Home Search App at the bottom of the right column or click here to download.

Mar 082013
 

I need a lot of money to buy a home.
Not really. Depending on your credit rating and financial income there are ways to purchase a home with practically no money down. There are programs that finance up to 4% of the required 3.5% down required for typical FHA loans, leaving you extra to be used for closing expenses. Combined with seller assistance you can really purchase a home with little or no money down. (more details here)

I have to pay a REALTOR to help me buy a home.
Not true! REALTOR services are 100% paid for by the seller so as a buyer we represent you for free. There is no advantage to not using a REALTOR to purchase any real estate property. But by law and our ethics we must represent you and your interests over the seller’s, as they are represented by their own agent. (more info here)

I don’t need to worry about financing until I find the home I want to buy.
Bad move. We always suggest the first step is to check with a lender to find out where you stand in getting a loan. Sometimes they say go for it. Other times they may find you need to take care of some things financially to put you in a better position to get a good loan. But the main reason is that you don’t want to spend time looking to find the perfect home and THEN discover you cannot get a loan to buy it. It also helps guide you to what kind of home you can afford and in some cases where you can look (like you can afford more home than you thought). (check this post for details)

The national news on real estate is all I need to pay attention to.
Big no-no. The cliché in real estate is location, location, location. And as far as the real estate market is concerned, city, area, neighborhood. Just 2 blocks away can be a different market, depending on the area. This is where using a REALTOR pays off as we know the market in our area. For ANY questions on real estate ask a local agent. (typical local report here)

REALTORS get paid by their brokers no matter if they sell homes or not.
Mostly false. Except in a few cases almost all REALTORS work as Independent Contractors. The Derrick Team works with Carpenter Realtors as contractors and we only get paid with successful transactions, of which a portion is shared with Carpenter for services provided. So if you spend time with one agent, then use another to write an offer, the first agent gets nothing for their work. Keep this in mind when working with an agent. If you like an agent, stick with them so they will get paid for their work for you. That will in turn make them work harder for you. (read this for more info)

Give The Derrick Team a call today at 317-563-1110 with more details on these or any other questions you have. Remember, our services are paid for buy the seller so it costs you nothing.

Feb 272013
 

Inventory in the local real estate market continues to drop as more homes are sold and less are being added to the market. We are trending to a sellers market as sales continue to be very active in 2013. As you see in the reports below, Hendricks County is the lowest it’s been in several years, lower than the state average in the second report.  Prices will soon be increasing as the inventory stays low.

Call The Derrick Team if you are ready to sell as buyers are out there that want to buy now!

Hendricks County January 2013 Real Estate Report

As reported for the entire state of Indiana:

State Average for Inventory Supply

May 142012
 
Contact the Derrick Team at 317.563.1110

Sweet Dreams of a New Home

Let’s start with why. Sometimes it’s obvious, such as you’ve been transferred to a new city. Or maybe family situations have changed such as a divorce, death, or recent medical conditions. Maybe you’ve found your house is too expensive or large and you have to downsize. If any of these are the case or you just know you have to move the next section won’t apply but read it anyway as it might open your eyes to a potential problem.

Now maybe you’re just considering a move, but don’t have a specific reason that you have to sell your home. There is a little more to consider. First, determine where you want to move to. Do a little research and look for an area that interests you. Check home prices (your Realtor can help, you do know one now), and visit Open Houses when you see them in the target area. Talk to friends that live in the area. Once you have an idea, now make sure you can afford to live there. This is a step sellers often forget to do, no matter what the reason to sell is, make sure you can buy another home! Check with your bank or lender and get prequalified. Just because you own one now doesn’t guarantee you can buy another. Job changes, credit problems, other debt load, can easily disqualify you from a new mortgage. They will prequalify you based on the sale of your current home. A CMA can help here so have your Realtor do one for you. None of this obligates you to sell your home, it’s just a good homework assignment before moving to the next step.

The next part is evaluating the readiness of your home for selling it for the best return on your investment. In other words it needs to look move-in-ready to help you get the best sales price possible in this highly competitive market. At a basic level you need to think of fresh paint, replacing worn flooring, installing new fixtures in kitchens & bathrooms if they are stained or extremely outdated. Again your Realtor (the one you now know) can assist you in what helps the best in your area and price range. You don’t want to spend too much and not get that much back, so don’t get too carried away. See more about preparations in the post.

Now you are ready to put it on the market, right? No not quite yet. Prepare yourself for your life being interrupted for showings and open houses. Start packing what you don’t need and make your home look inviting but not too personalized. Start making plans for your move. Don’t be caught off guard when an offer comes in. We’ve sold homes in days before (once a more common thing than today), and our seller had to scramble to find a place to live. So you don’t have to rush to buy a home if that happens, accept the fact you may have to move into temporary housing, nobody wants to rush a home buying decision.

If you are ready to sell, or will be soon, call that Realtor you know today. That would be The Derrick Team at 317-563-1110. We’re here to help for all your real estate needs!

Apr 052012
 

Derrick Red Ad signThe Derrick Team loves working with buyers. Whether you are first timers or looking for your retirement dream home, we can help you every step of the way. If you haven’t figured it yet, this is more than just looking at homes and picking one out. There are many steps in this purchase and we will help guild you all the way.

The seller of the property you’ll eventually buy will pay our commission fees so you don’t have to worry about that cost.

But we do expect something pretty simple in return for us helping you. That is: Let us help you!

In other words, Work with us. Now this may seem a little simple to you but you have to understand we will spend a lot of time working on your purchasing process; searching for homes, showing homes, checking home values, negotiating contracts, working with vendors, etc., and will not get paid until you have successfully purchased your new home.

So all we are really asking for is a little loyalty, that’s all!

Just starting your search? Thinking about it in 6 months to a year? Know someone who is looking to buy? Give us a call today for a non-binding ‘meet ‘n greet’ to see if we can be your Realtor. We love to help people buy homes!

Call 317-563-1110 or shoot us an email today!

Dec 242011
 
Contact the Derrick Team at 317.563.1110

Merlin has Sweet Dreams of a New Home

Call or text us today at 317-563-1110, we work 7 days a week, evenings too.

Nov 042011
 

Dennis Derrick

Many buyers are unaware of the processes involved with purchasing property, especially first time home buyers. Even if you have bought and sold property before, you may learn something from this information.

In the state of Indiana the laws were originally written that REALTORS solely represented the sellers and it was simply “Buyer Beware” for those wishing to purchase real estate. As this was obviously a one sided professional representation, many buyers were taken advantage of by sellers who had professional representation. Finally the Indiana lawmakers, following the lead of many other states created the “Buyers Agency” provision in the law so now buyers could choose to be represented by a their own agent in real estate transactions.

Now for the best part, it costs you nothing to be represented by a REALTOR as the buyer. The local REALTOR boards (in central Indiana its MIBOR) worked out a system so the seller pays a commission fee and then this is shared between both the seller and buyer’s agents. So the agent representing the buyer is paid a Brokers Agency Commission (BAC) percentage by the seller and both sides receive fair professional representation, each agent working for the best interests of their client.

Now you know it costs you nothing, what do you get for this great price?

First, you get a REALTOR who will be able to get you more information on property than you would otherwise. They have access to more information through their professional association with the local REALTOR board.

Second, you will have someone who will work with you to determine your needs and desires and be able to efficiently search for the available properties saving you valuable time. They will be able to weed out properties that don’t fit your requirements so you can focus your search on great potential matches.

And most importantly, they will be there to represent you during the negotiations for the property you chose to buy. Even after your offer is accepted there are many things your REALTOR will be helping you with, all the way up to the final closing and possession.

Of course a really great REALTOR will help you with even more, so if you are even thinking of purchasing a new home now or in the future, be sure and give The Derrick Team a call at 317.563.1110. And don’t forget, IT’S FREE!

Jul 092011
 
Connie Derrick

Connie Derrick

Connie Derrick – REALTOR:
With 30 years of customer service experience she connects well with all our clients, sellers and buyers alike. She’s held her RE license since 1997 and has been with Carpenter Realtors since 2001. She stays in touch and returns calls and emails promptly. As many of our clients can attest, she will become your friend during and after all transactions with The Derrick Team. She’s also out marketing face to face with potential and existing clients almost every day.


Dennis Derrick – REALTOR:

Dennis Derrick

Dennis Derrick

He has been working with remodeling homes, well since that first tree house as a teenager. He understands the common and even the unusual construction techniques used and can help clients make informed decisions on selecting the type of house that would be a good fit. He’s also been involved with Information Technology in some form or another for most of his life. Include that he’s been designing and building web sites for over 10 years and you have the perfect person for online marketing of your home. He’s actively marketing your property online in the 24/7 social media world to give you the best exposure to bring that buyer to you.


Vicky Peters – Managing Broker at Carpenter Realtors Avon West:
Vicky is our mentor, broker, and manager all at the same time. Having been in the business for many years he as seen it all and helps us with the more unusual issues. He is there to assist us at any time and is a very important member of the team.


Debbie – Avon West Office Coordinator:
Debbie is who keeps us all in line while supporting us with just about any request we have. She keeps our paperwork in order and makes sure our print ads are setup. She’s a woman with many hats and we would be lost without her support on our team.


Carpenter Realtors Corporate Offices:
A small army of dedicated real estate professionals who focus on the Carpenter Realtors marketing, training, Internet leads, and all types of support. All of which makes for an invaluable member of our team.


Financial Gurus – Many we work with:
Finances are always important in real estate transactions and we have many we work with. We will work with the finance people on any side of a transaction to make sure everything proceeds smoothly. These gurus are a very important member of our team.


Title Insurance companies – Many we work with:
Title insurance is an important part of finishing the process of any real estate transaction. We work very closely with all title companies to make sure all the paperwork is ready for a closing, the most important part of any real estate transaction, thus a key member of our team.


Home Inspection companies – Many we work with:
We really depend on the professional guidance with home inspectors on the condition of a home, even a brand new one. We always recommend a buyer gets an inspection and will assist in finding one available in the allotted time frame after an accepted purchase. They’re advice is a valuable service of our team.


 

HSA – providing home warranties for buyers and sellers:
HSA provides a great service for both our listings and buyers. We recommend home warranties for either side of a transaction. We have seen our clients save hundreds of dollars afterwards so we know the benefits for both buyers and sellers that makes them a great part of our team.


 

There are many others that are often brought into a transaction as needed for quotes, repairs, staging, etc. But as you see, when you use The Derrick Team to represent you in your real estate transaction, you have a large team ready to make sure everything goes smoothly, for you, our client. Give us a call or text today at 317-563-1110. We work 7 days a week, including evenings!

awards

 

 

Jun 272011
 

So you are in the preliminary stages of getting ready to shop for a home loan, either to purchase or refinance. A suggestion from a lender we talked to the other day was to create a “New Home” folder, or whatever you are securing the loan for.

The idea is to gather all the necessary paperwork needed by the lender and keep it updated all the time so when you are asked for something, you know exactly where it’s at. Based on the required items, you might have to consider a box as it may not all fit in one folder.

What lenders want are documents that prove your income and assets, and the sources of both. So the first and most important documents are as follows:

  • 2 months of bank statements from all banks & asset accounts (retirement and investments). Obviously this is something you’ll need to update each month.
  • 2 months of income statements. Paychecks & dividend income, (again updated as needed).
  • 2 years of filed & signed tax statements with all associated schedules. If you file electronically, print and sign copies for the bank. The signature is important as that certifies you saying it’s correct.
  • 2 years of employment history with employer contact information. They WILL call to verify.

Some additional items may apply and it helps to have this ready to go as well:

  • Documentation on the source of any extra money, especially if it’s part of your down payment. For example a gift from a relative; provide a copy of their canceled check and your deposit slip to show how and when it was put in your bank account. Same if it was an inheritance, a copy of the will showing the amount and when you deposited it, and a death certificate.
  • If you’ve been through a divorce you’ll need the divorce settlement and documentation on child support. This only applies in certain situations and can depend on the children’s ages but it’s better to be prepared in case it comes up.
  • Paperwork for any judgments or liens against you and explanations in writing on payment plans or history if paid off. These will show up in a credit report so it’s best to be prepared ahead of time.
  • If you’ve been renting, copies of the lease / rental agreement and 2 years of canceled checks.
  • If applying for a VA loan; Certificate of Eligibility, DD 214, and Disability paperwork if applicable.

Consider this a basic list; in each situation the type of loan and your credit rating can dictate the need for even greater documentation. Don’t’ forget you’ll also need to prove you are you. Typically that means having a VALID drivers license (pull yours out right now and make sure it’s not expired), a social security card, or a permanent resident alien card.

It’s also a good idea to check your credit reports now so there are no surprises. If you haven’t done so in the past year, you can request free credit reports from the 3 main credit companies. If you find mistakes you have time to work on getting them corrected before you start the actual loan process.

Finally don’t do anything that might hurt your credit while the loan processing is taking place. Check our post on Your Credit and Buying a Home for details.

Now look at this list and determine how big of a box do you need?

If you need any help with finding a lender, give us a call and we can give you names of some of our recommended lenders. And if you are preparing to purchase a home, we can help you with that too!

May 022011
 

We often are told by potential homebuyers, “We want to find a really great deal”. Well that makes sense, you’re shopping for the most expensive item you’ll buy during your lifetime, why not get a great deal too.

So in today’s market, that usually starts them looking at the homes everyone thinks are steals, foreclosed homes. Lets look a little deeper on what these deals are all about.

First, we break these into 2 categories, foreclosed homes and pre-foreclosed homes.

Pre-foreclosed homes are commonly referred to as short sales, possible short sales, or even pre-foreclosed homes. In general what this means is the owner is unable to pay the note holder of the mortgage (typically a bank) and the property is worth less than the amount owed. Various rules apply to what the homes status is depending on the note holders requirements are for short sale but often the owner must be behind on at least 3 payments and be able to document why they cannot pay the mortgage. This is known as a ‘hardship package’. If the requirements are met then the home is marketed as a short sale. For buyers these can be good deals, but the purchase process requires a lot of patience. There is a lot of back and forth negotiations with the purchase of a short sale and for a REALTOR it can be a challenge to get everything to work out, and each bank handles these completely differently. But it is doable and the federal government is working on ways to smooth this out. Short sales could be a long topic on their own so for now lets just say if you are not in a hurry, these can be a deal.

Foreclosed homes fall into a few different categories depending on who was the note holder of the home. The most common are listed as HUD’s, Homepath’s , & REO’s.

HUD homes were financed via a federal entity such as FHA, VA, USDA, etc. When the property is foreclosed the U.S Department of Housing and Urban Development takes over the home and it is then listed for sale with a processing service that works with a set of rules on how to sell the home. But the basics are it’s sold with a bidding process, kind of like the Ebay of home sales. These properties can be really nice or a total mess. But once you find one the purchase process can be pretty straightforward.

Foreclosed homes that had mortgages with Fannie Mae are now usually marketed as Homepath homes. These can be similar to HUD homes (Fannie & Freddie are quasi federal entities). Lately the Homepath homes are often marketed towards first time homebuyers with deals such as $100 down and escrows allowed to do repairs to the home. These homes can be very affordable and easier to purchase than HUD properties.

Finally there are the Real Estate Owned (REO) properties. (Nothing to do with the great rock band REO Speedwagon). These are listed like normal homes except the owner you negotiate with is the bank that was the mortgage holder. These can range from really nice homes to those referred too as “distressed”. Because you are negotiating directly with the owner, the purchase process is similar to a normal home sale. The question of how good a deal this can be depends on the status of the banks inventory and how bad they need to unload the home. But generally these will be sold for less than the general area market value so these can be a good deal for a buyer to consider.

This is a general high level overview of what deals a buyer can find. Each of these are more complex subjects so you want to make sure and have a professional REALTOR help you with these purchases as the respective sellers will pay their fees. But to summarize each, short sales require patience, bidding on HUD’s can be like playing the lottery, Homepath homes can have great financing options, and REO’s are more like normal deals that often are discounted, depending on the banks situation.

Ready to get a deal? Give The Derrick Team a call today and we’ll help you find the best fit for you.

Apr 262011
 

When you are shopping for homes, you are looking at things such as the local area, number of bedrooms & baths, yard size, etc., things you deem important depending on your life style. You may even look at certain architectural styles, building levels, or if there is a basement. But beyond maybe the difference between a gas and electric stove, not many pay attention to the home’s mechanicals. We’re referring to heating / cooling systems, water heater, water source (well / municipal) waste systems (septic / municipal), etc. This is where the home inspection is important tool to utilize in the home buying process.

So you searched the internet and toured a dozen or so homes that fit your criteria, finalized your selection, and made an offer on the best one. Your REALTOR should have encouraged you to make your offer contingent on the home passing a Home Inspection by a certified Home Inspector. You will be paying this inspector to check the home for defects, including those mechanical systems you may have not paid much attention to during those many home tours. View this as a mechanic looking at a used car before you purchase it. Only this used car is very expensive so you really want everything looked at thoroughly.

The second thing to note with having your potential new home inspected is it’s also an education for you about the home. A good home inspector will show you the function of the homes mechanicals, such as how to change the furnace filter, shut off the water supply, check the electric panel, etc. So it’s best to view the inspection as good education on taking care of the home, while looking for major defects. A typical inspector will probably find something wrong (he’s trying to earn his money), but you really should only worry about addressing major defects (like a safety issue with electrical wiring or structural issue with the roof). Your REALTOR should be able to help you address any issues in the Inspection Response if a major defect is uncovered.

And in the case a really major defect is found (foundation is crumbling), you may find paying the Home Inspector and walking away from the deal will have saved you thousands of dollars in the future. That’s the best money you’ll have ever spent for something you didn’t buy. Any good REALTOR should recommend you do a home inspection on a home you are buying, and if they don’t, they’re not looking out for your best interest. The Derrick Team always recommends home inspections for our buyers, and I (Dennis) will usually be there with you to help you understand the process. Call or email us with any questions you have in the home buying process today!

Apr 112011
 

So you are starting to think about buying a home. Here are the basics to get you stated.

1. Organize your finances.
Look at your current income, bills, savings, etc, and organize this into something you can easily reference. If you are handy with a spreadsheet this is the best way to get everything in one place. What you want in the end is an accurate document of your current budget.

2. Contact a lender.
The best place to start may be where you bank. But be aware that not all lenders are the same. They all have different options for loans; some have more for first time homebuyers, others for low interest rates for people with outstanding credit ratings. So don’t get discouraged if a lender acts like they cannot help you. Another one may have the perfect plan for you. Your REALTOR can help you find one too which leads to the next step.

3. Hire a REALTOR.
Actually you find one to represent you. We are paid buy the seller with the home you ultimately purchase. But we still represent you and you only so you are really hiring us to help you. Most agents will ask you sign a Buyers Agency form that formalizes that we represent you in real estate transactions. Once you choose one, use them exclusively because if you jump around from one to another, none of them will be that interested in really helping you. So remember, loyalty is important!

4. Start looking for your new home.
Now you have your team assembled with your lender and REALTOR working together with you so now you can start looking for you new home! Your REALTOR will talk with you on your needs and desires and help you in your search. Then when you’ve got a list of possible homes, they will take you to see them, pointing out items of interest in each home based on previous discussions. When you find that perfect home, they’ll guide and represent you in negotiations with the seller. They’ll be there to work with you on the inspection, providing lender information on the home, all the way to the completed purchase (known as the closing).

For more information call The Derrick Team today at 317.563.1110, even if you are still at step 1!

Mar 302011
 
What were they thinking?

What were they thinking?

While I am a fan of some shows on HGTV in real estate we often see houses with a condition I like to call ‘HGTV Syndrome’. Sometimes it is done in moderation and with good taste. But more often it is more of good intentions gone badly.

What is ‘It’ you ask? ‘It’ is the trendy ideas that come from some shows on HGTV (and other channels as well), that give the homeowner the idea that they know how to make their home look like the one on TV. It doesn’t help that we have stores full of stuff to sell homeowners to do these ‘ideas’ like Lowes, Home Depot, etc in every major metro area that of course also promote ‘It’, and the fact that anyone can do it.

In most cases the worst damage is in the form of wild paint jobs, which will just take someone, sometimes a professional, to undo. This would be a house with a mild case of HGTV Syndrome. In the worst cases, you’ll find the home will do very badly in the home inspection. Home Inspectors find things all the time that are obviously a DIY job and in some cases very dangerous such as bad electrical wiring work.

So when showing homes to our buyers, The Derrick Team will always point out when we see the home is suffering from HGTV Syndrome. The question at that point is how hard will it be to repair the damage.

We personally talked to a homeowner that purchased a home in Avon used in Trading Spaces. He said it took a lot of work to cure that home of its HGTV Syndrome. So beware if you get the urge to decorate after watching a TV show. You might end up making your home worth less or even too sick to sell!

If you are thinking of doing some updates, give us a call or text today at 317-563-1110. We’ll be glad to come take a look at your ideas and let you know how that might effect your homes value. It’s what we do for our clients, for free!

Mar 232011
 

You’ve talked to a lender and now know what your price range is for purchasing a home. You’re working with a REALTOR to find that ‘just right’ home you’ve always wanted.

While your doing the search, and especially when you’ve found one and made an offer, there are very important steps to make sure you still qualify at the closing (purchase) of the home.

First things first:

You absolutely should not take out any additional credit or even have an inquiry into your credit report from the time you start the loan application until after you have completed the purchase (closing is when you sign all the documents and make it official).

Make sure you don’t:

  • Go on a spending spree for new furniture, new window treatments, etc., and raise your credit balance above 30% of your limit. Revolving credit balance (credit cards, store accounts, etc.) is acceptable if it stays below 30%. Also watch and make sure your CC holder doesn’t drop your limit on a card thus pushing you over that percentage.
  • Get ANY “Buy now –Pay later” type of financing, this really hits your credit report as maxed out credit account (as in %100!).
  • Co-sign on a loan for anyone else as his or her credit then becomes part of yours (which may be really bad, why else would you be co-signing?)
  • Go shopping for large purchase items such as a car, truck, or fishing boat, even if not ready to buy yet. The dealer will pull your credit and that will result in an additional inquiry on your credit report.
  • Miss or pay late ANY payments!

Best if you do:

  • Carefully document all deposits into your bank and investment accounts. Lenders want to know where you get additional funds once the process is started (making sure your money is legit). This includes any items you sell for a few hundred dollars to your friend or neighbor. Check with the lender if someone is offering a cash gift to help, sometimes that’s not allowed or can only be a certain amount or percentage.
  • Keep an eye on mortgage rates. Banks are competitive and if you see a better deal at another lender, negotiate with your lender and they will probably work with you to keep your business.
  • Keep your down payment money intact, or add to it. More available cash can sometimes help at negotiations with a seller.

We’ve seen deals fall apart more than once when the buyers didn’t follow the ‘Don’ts’ from the list. You should always be smart with your credit but it’s VERY important when getting a mortgage from a lender. Ask your lender about these items and watch them nod their head (except the part about getting a better deal). If you really feel the need to spend, at least wait until the day AFTER closing!

Feb 032011
 

While the local Indy Metro area is starting a slow rebound, it’s still a buyers market in this area. Home prices are very slowly starting to recover towards 2007 highs but more importantly interest rates are still pretty low for mortgage loans.

So what’s your first step? Shop for a lender with good rates and offer different options for loans. That’s important because different loans help if there is a special requirement or need for the home you decide to purchase. For example you find the home you want in the perfect location but it needs a little fixing up. An FHA 203K loan can be a great option there.

Little low on cash? Find a lender willing to work with an Indiana Housing & Community Development Authority first time home buyer programs which can help with the down payment and loan rates. Another option for homes that qualify is the USDA no-money down program. This is for more rural homes such as our listings in Bainbridge and Danville. You can check homes eligibility at this web site.

Don’t wait too long. ½ an interest point in your loan can cost you thousands of dollars over the life of the mortgage. And in a buyers market you have the advantage in many homes to select from which could save you money vs. 12 to 18 months from now.

Have a home to sell? Consider selling it at a low price to sell quickly so you can buy your new home and save on the home price and the loan interest which could easily more than make up the difference.

Call or text The Derrick Team with any questions and we can begin to help you find that perfect home today! We work 7 days a week, evenings too!

Jan 172011
 

A deed is a document that conveys an ownership interest in real property from one person or entity to another. The specific type of deed that is utilized to transfer an ownership interest will depend on many factors including: the jurisdiction, the circumstances, the intent of the parties, and the legal capacity of the grantor. Below is a brief overview of several types of deeds and how they are used to convey ownership interests in property.

An owner’s title insurance policy protects the buyer should a covered matter or title problem arise. It is purchased for a onetime fee at closing and lasts for as long as you or your heirs have an interest in the property.

But does he have title insurance?

But does he have title insurance?

General Warranty Deed
This type of deed is typically used to convey ownership in real estate transactions in which the grantor fully warrants good and clear title to the property. The Grantor (seller) makes certain warranties or promises to the Grantee (buyer) including, but not limited to: the Grantor has the rights in the property being transferred, that Grantor has the right to convey the property and that the property is free from liens or claims of third parties.

Special (or Limited) Warranty Deed
A deed often given by fiduciaries that hold property of behalf of others (trustees, personal representatives, guardians) as well as builders, and lenders that typically have owned a property for a relatively short period of time. A special or limited warranty deed only warrants that the grantor has not impaired the title during their ownership of the property. It is not a warranty against defects or claims against the property that arose prior to the grantor’s ownership nor does it obligate the grantor to do anything further once the title is transferred.

Quit Claim Deed
A deed of conveyance that operates as a release, it is intended to pass any title, interest, or claim which the grantor may have in real property, but does not warrant the validity of the grantor’s interest in the real property. A quit claim deed is often used when a family member conveys title to another family member and it is commonly used by divorcing couples where one spouse signs all his or her rights in a property to the other spouse.

Certificate of Sale/Tax Deed
A Certificate of Sale is issued to the winning bidder at a judicial foreclosure sale. The document indicates that the bidder will receive the property’s title once any conditions of the sale are completed and confirmed by the court. A tax deed is an instrument used to convey legal title to property sold by a governmental taxing authority for nonpayment of property taxes.

Deed-in-lieu of foreclosure
A deed-in-lieu of foreclosure is given by the owner of mortgaged property to the holder of the mortgage when the mortgage is in default and foreclosure is threatened. The actual deed utilized is oftentimes a quit claim deed, and it is given to a lender as an alternative to foreclosure.

Deed of Trust
A deed of trust gives a lender a security interest in your home, just like a mortgage. In exchange, you give the bank a deed of trust, which says that if you default in repaying the loan, the bank can foreclose on your home and sell it to pay off the loan.

Trustee’s Deed
The document that is given to the individual or entity that successfully bids at a Trustee’s Sale and purchases the foreclosed property. This document transfers ownership and the sale must be recorded with the county recorder in the county in which the property is located. (A trustee’s deed is also an instrument that can also be used to convey property out of a trust.)

This information provided by Larry Coplen at First American Title Insurance Company in Avon.

The Derrick Team is not associated with First American Title Insurance Company but is providing this information to help you understand deeds for buying or selling property. This information is not provided as professional advice. When you’re ready to buy a house, give us a call or text at 317-563-1110. As a buyer being represented by a Realtor costs you noting!

Dec 212010
 

If you are planning on buying a home soon, or even a year or two from now, here are some good things to know about qualifying for a loan. This information comes from a certified trainer for “FICO Scoring 101”.

The FICO score is based on five different weighted factors:

▪ Payment History: The record of your on time and late payments
▪ Amounts Owed: Your credit limit minus the amount you owe for each account
▪ Length of History: The average length of time of all open accounts
▪ New Credit: Records of inquiries, new account openings
▪ Type of Credit: Mortgages, installment loans, revolving accounts etc

Easy Ways To Improve Your Credit Score:

With all the different kinds of information that credit scoring models incorporate, numerous tactics for improving scores are available. However, any action to improve a score must be taken judiciously: some actions aimed at improving your score may actually make it worse. Precision Credit Group can help you determine which steps will help your credit the most, without doing harm.

Many individuals reap significant benefits by properly employing these simple FICO score improvement techniques:

▪ Make payments on time, especially to installment and revolving accounts, as these report to the bureaus monthly
▪ Do not apply for any new credit cards or loans
▪ Pay credit card balances down to 30% of your credit limit or less
▪ Make sure your credit card company reports a limit
▪ Keep 3-5 open and active accounts in good standing on your credit report
▪ Review your credit report every year

This information provided by Ryan D. Keip, Owner of Precision Credit Group

The Derrick Team is not associated with Precision Credit Group but is providing these tips to help you get ready to buy your home. This information is not provided as professional advice. Consult with your lender if you have any questions on your FICO score and what you need to do to qualify for a loan as not all lenders follow the same guidelines.

When you’re ready to buy a house, give us a call. Being represented by a Realtor costs you nothing!

 

Jul 132010
 

SearchScreenLooking for a new home now or in the near future? Be sure and take advantage of our FREE Call Carpenter web site search tool. Just read what a recent new user said:

“I loved the Map View for the property search! Everyone knows the three most important factors in buying a house: location, location, location. I was able to find houses in my price range in the area where I want to live. Anyone can give you a list of addresses, but searchable map on CallCarpenter.com was the most useful tool I had during the search for my new home – except for my Realtor, of course!” 

Rachael, first time homebuyer

Registering is quick and easy –and you’ll get great, FREE benefits.

Save This Property: Like a specific property and want to ‘keep’ it for future reference? As a registered user, you can ‘file’ properties on our site as you go through your home buying process. Sign up now for this and other great features!

Save This Search: If there’s a specific property type, price range, or location you are searching in, sign up and save your search! That way, you’ll save time whenever you visit our site. You can run your saved searches, edit search criteria, and you can be notified by email when new listings match your search criteria. Fill in the following information to begin.

Be sure and check this out today! Just click on the ‘Property Search Tool’ tab at the top of this screen.

Be sure and call or text The Derrick Team at 317-563-1110 with any questions you have. We work 7 days a week, evenings too.

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