Real Estate Closings

2016 Real Estate Forecast

Forecasts for the 2016 housing market are starting to trickle in; analysts are predicting that next year’s market will be a picture of “moderate, but solid growth.”

Several real estate pundits are predicting about a 3% year over year growth in housing prices with price increases being dampened by predictions of mortgage rates increasing to 4.65% for a 30-year fixed by the end of 2016.

Total sales of existing and new homes will reach 6 million for the first time since 2006; new home starts will increase 12 percent and new home sales will grow 16 percent, but it will take continued growth in both the gross domestic product and the job market to get there.

The U.S. economy in 2016 is expected to power forward at a steady, reasonable pace. Surveys of lenders continue to show that credit is becoming more available for homeowners, aided by new jobs for millions more people now working.

Lawrence Yun, chief economist for the National Association of REALTORS® expects a moderate annual increase in sales of existing homes of around 7.3 percent in 2015, rising 2.9 percent in 2016. Even brighter is the outlook for new-homes sales, projected in 2015 to grow at 14.9 percent over 2014 levels, and 16.7 percent in 2016.

2015 may have marked the best year for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by Realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one.

Realtor.com® highlights the following housing predictions for 2016:

1. ‘Normal’ is coming.

Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem-it’s just a return to normalcy,” writes Jonathan Smoke,Realtor.com’s® chief economist. New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

2. Generational buying trends shape up.

Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home-buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year.

But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, Realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

3. New-home construction focuses more on affordability.

Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers.

4. Higher mortgage rates.

Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the New Year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.

5. Rents to go up even higher.

Rental costs are skyrocketing, and the costs are likely to only go up in the New Year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of stable income of the kind necessary to qualify for a mortgage today.”

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Kim Around the Web, Mortgage Information, Real Estate, Real Estate Closings, real estate news, Real estate trends by Kim Bregman
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Feds Lift Key Interest Rate

The Federal Reserve is raising interest rates after seven years of record lows. But it’s signaling that further rate hikes will likely be made slowly as the economy strengthens further and muted inflation rises.

The Fed’s move to lift its key rate by a quarter-point to a range of 0.25 percent to 0.5 percent ends an extraordinary seven-year period of near-zero rates that began at the depths of the 2008 financial crisis. Consumers and businesses could now face modestly higher rates on some loans.

The Fed’s action reflects its belief that the economy has finally regained enough strength 6½ years after the Great Recession ended to withstand higher borrowing rates. But the statement announcing the rate hike said the committee expects “only gradual increases” in rates going forward.

Rates on mortgages are not expected to rise much soon. The Fed’s benchmark rate doesn’t directly affect them. Long-term mortgages, for example, tend to track 10-year U.S. Treasury yields, which will likely stay low as long as inflation does and investors keep buying Treasurys.

But rates on some other loans, like credit cards and home equity credit lines, will likely rise, though probably only slightly as long as the Fed’s rate hikes remain modest.

For months, Chair Janet Yellen and other Fed officials have said they expected any rate hikes to be small and gradual. But nervous investors have been looking for further assurances.

The central bank’s target for the federal funds rate – the interest that banks charge each other – has been at a record low between zero and 0.25 percent since December 2008. At the time, Fed officials led by Ben Bernanke were struggling to contain a devastating financial crisis that triggered the worst recession since the Great Depression.

The recession officially ended in June 2009. But unemployment kept rising, peaking at 10 percent before starting to fall. The jobless rate is now at a seven-year low of 5 percent, close to the Fed’s target for full employment.

Some analysts expect the Fed to raise rates at every other meeting in 2016, for a total of four quarter-point moves. Others think that after Wednesday’s hike, the Fed could wait until June before raising rates again.

While Fed officials want to move slowly, an acceleration in inflation could force them to raise rates more quickly.

Filed under: Blog, boomerrang homebuyer, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, Mortgage Information, Real Estate, Real Estate Closings, real estate news by Kim Bregman
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You Are Under Contract…What’s Next?

You searched for homes over the course of months or even years. You endured a series of offers and counter offers, property disclosures, inspections and reports. Finally, after so much excitement, stress and anxiety, the house hunt has come to an end.

But the story isn’t over yet. Here are some next steps to consider before you actually move in.

Plan any work well in advance:
Rarely does a buyer get a place that is truly in “move-in” condition. By the time you’ve signed a contract, you have lots of ideas about how you’ll live in this home, how you’ll customize it to suit you and your family, and what work needs to be done.

If the place needs work, don’t wait until you’ve closed to engage a painter, a floor re-finisher, or a general contractor. Either at your final walk-through or during a private appointment after you’ve removed your contingencies get the proper contractors in the house. Start getting bids for necessary work. If possible, have floor sanding, painting, demolition, or small fix-it work done before you move in. Real estate agents work with all kinds of tradespeople, so they’re often a great resource recommendations.

Set up the utilities:

Some people assume the utilities will work once they walk in on day one. While many utility companies have grace periods (the days between when the seller cancels service and the new owner calls), you can’t always assume this will be the case. If you have an out-of-town seller, they may have cancelled services the day they knew all contingencies were removed. In this instance, the grace period likely lapsed, and you may be stuck dealing with the electric company, waiting for an appointment or just being without power when you really want to start painting, fixing or cleaning.

The best plan is to call the utility companies and get service set up well before closing. If they haven’t received cancellation notice from the seller, let the seller know to take care of that.

Got the keys? Great, now change the locks:

Assume that every one and his brother has a set of keys to your new home. The seller’s real estate agent likely gave copies to his or her assistant, a painter, stager or even another agent at some point during the marketing period. That’s why the first person you should call after getting the keys is a locksmith.Spend the money to get all the locks changed right away. You’ll sleep better at night.

Hire a cleaning crew:

The Seller has an obligation to leave the property “broom clean”, but this in no way assures that the carpets have been cleaned, the floors mopped and the insides of the cabinets and drawers have been wiped down/ There’s nothing worse than showing up with the movers, dozens of boxes and your personal belongings only to discover the seller hadn’t had the place cleaned thoroughly.

Assume the worst and get a professional cleaning crew in there the minute after the closing. Even if the seller did clean, they may have done a poor job. You want to start life in your new home with a clean slate. The movers might make a mess while moving in. But the bones of the place will be sparkling clean and you won’t be scrambling to get cleaners in while the home is in a state of disarray as you unpack.

Have a handyman, small contractor or designer on call:

While it may seem like a luxury, investing a few hundred dollars in hiring someone to take orders, help with setting up and take over some of these mindless tasks will save time and potentially relieve you of a giant headache.

Thinking ahead is the way to go:

The journey to home buying could have been anything from fun to stressful and emotional. When the closing date draws near, you’re probably exhausted. But taking a little extra time to plan ahead will save you time, money and a lot of hassle. And it will make the move into your new home so much more satisfying.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Maintenance, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings, real estate news, Relocation, western north carolina real estate by Kim Bregman
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10 Reasons Why Another Real Estate Crash is Unlikely Today

How concerned should investors and homebuyers be that we’re headed for another real estate crash as we approach the 10-year anniversary of the infamous 2006-2007 housing bubble? Not at all.

Although buyers are paying spectacular prices for commercial properties and trophy homes, just as they did then, this time price increases are being fueled by foreign investors seeking diversification and a haven for their funds, as well as investors on the hunt for a low interest-rate environment.

Real estate is still a favorite life raft for nervous investors, who are seeking safety amid market volatility.

This has led to record real estate prices, which some have interpreted as a sign that the U.S. real estate market is once again climbing into bubble territory and headed for another crash. But a repeat of the 2009 real estate implosion that followed the collapse of the equities market in 2008 is highly unlikely this time.

Here are the top 10 reasons why:

1. Most Americans Have Refinanced to Fixed Rate Loans

Most Americans who could refinance to a fixed-rate mortgage have already done it. As a result, the impact of interest-rate shock when short-term ARMs re-adjust will be minor, compared with what happened in 2008-2009. During that period, many Americans could no longer afford their new mortgage payments and defaulted.

2. Bank Repossessions are Flushing Out Old Distressed Properties

Bank repossessions recently rose to the highest levels in more than two years, signaling that banks are dealing with properties in default and flushing out old distress, rather than ingesting more. Foreclosure activity continues to fall.

3. Loans in Foreclosure Are at the Lowest Level Since 2007

Despite an increase in bank repossessions, the percentage of loans in foreclosure nationwide is just 2.1% — the lowest level since 2007, according to the Mortgage Bankers Association.

4. There’s Less Risk of a New Mortgage Bubble

The market is no longer fueled by a surge in new housing loans based on loose credit standards. Tighter requirements for loan approvals that followed the 2009 mortgage meltdown reduced the number of foreclosures nationwide to a 10-year low. This tempers the number of real estate bubbles that can pop and, if the market slows down, there may be a contraction, rather than a pop. New TRID requirements are further evidence of guarantying a healthy mortgage market.

5. Interest Rates Are Likely to Remain Low for the Foreseeable Future

The likelihood the Federal Reserve will raise key interest rates recently lessened, following the economic disruption coming out of China. As a result of recent market volatility around the globe, rates have not climbed as expected and the risk of higher rates has diminished for the foreseeable future. It’s also important to mention that China’s slowdown could also positively impact U.S. property values, as global funds seek relative stability in the U.S. real estate market.

6. First-Time Buyer Assistance Programs are Luring New Buyers into the Market

New initiatives have been put in place to assist prospective first-time homebuyers. At the beginning of 2015, the Federal Housing Administration (FHA) moved to reduce annual mortgage insurance premiums by up to $900 per year. This move could push home sales up to 5.6 million — the most seen since 2006- and it could introduce as many as 140,000 new buyers to the market, according to the National Association of Realtors. The FHA’s program aims to transition millennials and others from renting to owning a home.

7. Job Creation Indicates the Economy is Getting Stronger

The United States has added jobs at a steady rate over the past five years, and many of the jobs that were lost during the recession have been brought back. Additionally, the quality of jobs being created has improved as the economy has recovered.

8. Average Residential Home Prices Have Risen at a Slow, Steady Pace

Unlike the high-end, luxury market, prices for average residential homes have risen at a slow, steady pace. According to the S&P/Case-Shiller Composite 10-Home Price Index, residential home prices remained 15 percent below their April 2006 peak as of July 2015.

9. New-Home Construction Has Not Recovered from the Downturn

The supply of existing homes for sale today is lower than it was in 2000, although the population has grown more than 14%. New, single-family starts are 60% below the 2006 peak and roughly 25% below the average for the past 15 years.

10. Commercial Real Estate Remains Below Peak Levels

Commercial real-estate fundamentals are similarly healthy, and although commercial real estate prices have increased steadily since the crash, they still remain below peak levels. Vacancy rates are at or near all-time lows for apartments and warehouses, and are at their lowest post-crisis point for office and retail properties.

Commercial real-estate development also remains more than 25% below its pre-recession peak, which has led to improved property fundamentals, with both occupancy rates and rents rising.

The real-estate market today has a stronger foundation than it did in 2006, thanks to more disciplined and conservative credit underwriting of debt and a market that is much healthier than it has been at any point during the past decade.

Nearly 10 years after the bubble began, the message to investors is clear: Rest assured you are looking at a chastened and more disciplined market in which to participate — not another looming bubble.

By Chris Leavitt, Contributing Writer for The Street

Filed under: Blog, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Home Maintenance, Homebuyer Advice, House Closings, Kim Around the Web, Mortgage Information, Real Estate, Real Estate Closings, real estate news, Relocation, western north carolina real estate by Kim Bregman
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What You Should Do After Closing

You searched for homes over the course of months or even years. You endured a series of offers and counter offers, property disclosures, inspections, loan applications, due diligence, and packing. Finally, after so much excitement, stress and anxiety, the house hunt has come to an end. But the story isn’t over yet. Here are some next steps to consider before you actually move in.

Make Copies of your Closing Documents.
The first stop you make after closing should be your local copy shop. While all the documents are still together and in order, make at least one copy of everything. Put one set in your folder for tax filing and one set in a file for house records.

Get a Safe Deposit Box and Put the Original Documents In It.
Keep your photocopies on hand at the house in case you need them in a pinch, but store the originals of your mortgage loan docs and your title certificate in a secure, off-site location. That means a safe deposit box at the bank, or on file with your attorney.

Got the keys? Great, now change the locks.

Assume that every one and his brother has a set of keys to your new home. The seller’s real estate agent likely gave copies to his or her assistant, a stager, handyman, or even another agent at some point during the marketing period. That does not even take into consideration the spare keys that the Seller’s gave the neighbors, their family, cleaning lady, and babysitter. That’s why the first person you should call after getting the keys is a locksmith. Spend the money to get all the locks changed or re-keyed right away. Don’t forget to reset any key code combinations that can be used to gain entry to the house as well including the garage door opener, garage keypads and alarm combinations should be changed.

Hire a cleaning crew.

There’s nothing worse than showing up with the movers, dozens of boxes and your personal belongings only to discover the seller hadn’t had the place cleaned as thoroughly as you would have liked.

Assume the worst and get a professional cleaning crew and painters in there the minute after the closing along with carpet cleaners. You want to start life in your new home with a clean slate. The movers might make a mess while moving in. But the bones of the place will be sparkling clean and you will have freshly painted closets and walls before the furniture and clothing gets in place.

Have a handyman, small contractor or designer on call.

Moving in can take days, if not weeks, and is made up of the kind of stuff you wouldn’t wish on your worst enemy. Things like aligning your framed artwork, centering the couch in the living room or getting the large rug set up in the master bedroom can drive you crazy. Nailed multiple holes in the wall in an attempt to get your family photos lined up on the staircase? Not all of us are cut out to do this kind of stuff. While it may seem like a luxury, investing a few hundred dollars in hiring someone to take orders, help with setting up and take over some of these mindless tasks will save time and potentially relieve you of a giant headache.

Play “what went off”:

Turn all of the lights on, plug radios, lamps, etc., into as many outlets as possible, then turn circuits off one at a time; make a list of which breaker controls what, and post it near or on the inside of the panel(s). Make sure you know where the main water shutoff is, and test it to see if it works. If you have a water filter, check it or replace it.

Check the furnace filters/replace if not new looking. Check gutters and leaders for blockage; clean if necessary. If you have a fireplace, have the flue inspected by a professional. Check/change batteries in smoke detectors.

If you control your own hot water, you’ll want to check the temperature pretty early on during your first day in the house. Developers of new homes have a bad habit of turning water heaters to “vacation” mode just before closing. This saves their utility bills but will result in a cold surprise when you go to take a shower. The temperature dial on your water heater should have a tick mark at the best setting. You don’t have to turn it all the way to the hottest point unless you need near-boiling water at all times.

Put your Name on the Mailbox & Buzzer. If you’re living in a multi-unit complex, like a condo building, you’ll want to get your name on the mailbox as quickly as possible, since the post office won’t deliver to nameless boxes. People are of mixed opinions on whether you should also label your intercom buzzer. It can compromise your privacy, but if you’re expecting a lot of guests or deliveries it will make things easier.

Cover the Windows.

The residents of your new neighborhood are about to watch you parade all your belongings into the house. Don’t let them figure out what you’ve done with them so easily. Make sure you’ve got something in the windows of each room – it can be towels, shower curtains, cardboard – doesn’t matter what for now. Just make sure your privacy is safeguarded so your windows don’t become a walking advertisement for burglars and peeping toms.

Photograph everything.
You’ll eventually want to take an inventory of everything you move into your house, but before you do so it’s a good idea to take pictures of your house in its native state. Once furniture is in place it will be difficult to remember where outlets are and what your home looked like when it was brand new. In the event of a catastrophic loss, you’ll need to refer back to those pictures in order to restore your home, so make sure you store them offsite, email them to yourself at a webmail address, or upload them to a cloud-based server.

Meet your new neighbors.

Getting to know your new neighbors and trading phone numbers can be very beneficial in case of emergencies. There is always value in having a good neighbor.

Make sure your first weeks and months of homeownership are safe and pleasant.

Plan first. Party later.

Filed under: Blog, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Maintenance, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings, Relocation, western north carolina real estate by Kim Bregman
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Residential Real Estate Closing Costs and Fees

In addition to a down payment, you will also have to have sufficient cash on hand to pay for closing costs. The person purchasing the home pays usually closing costs, but with some mortgages (VA for example) the seller can pay closing costs. A little-known fact is that a big part of costs and fees actually go to third parties who process the mortgage, as well as local governments as taxes.

The average closing costs percentage is usually about 2-5% of the purchase price. But all cash buyers may end of paying less and high risk buyers getting a loan may end of paying more.

As an informed mortgage customer, you should make your mortgage banker walk you through each cost, and explain in detail what you are paying. Lenders are required to give you a Good Faith Estimate.

It is advisable that you fully understand the total cost of purchasing a home in advance of finalizing a contract. State laws and fees will vary depending on the practice and real estate law within the state. Here’s a breakdown of the most common closing costs and fees with a rough estimate of average cost:

Appraisal :($200-$600) – This is paid to the appraisal company to confirm the fair market value of the home.

Buyer’s Attorney Fee: (not required in all states – $400 and up)

Lender’s Attorney Fee: (not required in all states – $150 and up)

Escrow Deposit for Property Taxes & Mortgage Insurance: (varies widely) – Often you are asked to put down two months of property tax and mortgage insurance payments at closing as a requirement by the lender.

Credit Report: (up to $50) – A Tri-merge credit report is pulled to get your credit history and score. You cannot supply your consumer pulled report and the scores pulled form the internet from any place other than myfico.com are not real scores nor are they accurate.

Closing Fee or Escrow Fee :(generally calculated a $2.00 per thousand of purchase price plus $250 – $500) – This is paid to the title company, escrow company or attorney for conducting the closing. The Title Company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing.

Home Owners Association Transfer Fees – The Seller will pay for this transfer which will show that the dues are paid current, what the dues are, a copy of the association financial statements, minutes and notices. The buyer should review these documents to determine if the Association has enough reserves in place to avert future special assessments, check to see if there are special assessments, legal action, or any other items that might be of concern. Also included will be Association by-laws, rules and regulations and CC & Rs. The fee for the transfer varies per association, but generally around $200-$300.

Title Company Title Search or Exam Fee (varies greatly) – This fee is paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.

Survey Fee (varies greatly) – This fee goes to a survey company to verify all property lines and things like shared fences on the property. This is not required in all states but will be required if you are getting a loan. The cost will depend on if an existing survey exists, if there have been additions or deletions to the property since it was last surveyed, the size and complexity of the property, et. al.

Courier Fee (up to $50) – This covers the cost of transporting documents to complete the loan transaction as quickly as possible.

Lender’s Policy Title Insurance: (Calculated from the purchase price off a rate table. Varies by company) – This is insurance to assure the lender that you own the home and the lender’s mortgage is a valid lien. Similar to the title search, but sometimes a separate line item.

Loan Application Fee: (Varies by lender) A fee charged to process an application for a loan, such as a home mortgage from a lender or mortgage broker.

Owner’s Policy Title Insurance: (Calculated from the purchase price off a rate table. Varies by company) – This is an insurance policy protecting you in the event someone challenges your ownership of the home.

Transfer Taxes :(varies widely by state & municipality) – This is the tax paid when the title passes from seller to buyer.

Recording Fees: (varies widely depending on municipality) – A fee charged by your local recording office, usually city or county, for the recording of public land records.

Processing or Loan Origination Fee :(varies by lender) – This goes to your lender. It reimburses the cost to process the information on your loan application.

Underwriting Fee: (varies by lender) – This also goes to your lender, covering the cost of researching whether or not to approve you for the loan.

Loan Discount Points: (often zero to two percent of loan amount) – “Points” are prepaid interest. One point is one percent of your loan amount. This is a lump sum payment that lowers your monthly payment for the life of your loan.

Pre-Paid Interest :(varies depending on loan amount, interest rate and time of month you close on your loan) – This is money you pay at closing in order to get the interest paid up through the first of the month.

Private Mortgage Insurance: If your down payment is less than 20%, the lender may require that you purchase this insurance to protect them from repossessing and selling the home for less than the loan value.

Property Taxes: proration depending on what has been already paid or is owed by the Seller:

Wood Destroying Pest Inspection and Allocation of Costs: – If required by the lender or buyer, the inspection generally runs up to $125.00

Last, but not least, you probably will get your own home inspection to verify the condition of a property and to check for home repairs that may be needed before closing. These inspections can include general inspection, RADON testing, seawall, pool and roof inspections, Chinese drywall, mold and more.

Closing costs and fees are part of a mortgage, and knowing what they are and how much they should be is a good idea. This will put you in a position to challenge a cost or fee that seems exorbitant. Even if everything is correct, you have the right to ask, and your mortgage company has the duty to explain — in detail — each and every closing cost and fee.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, Real Estate, Real Estate Closings, Relocation by Kim Bregman
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Tips For Moving With Pets

So, you’re moving to a new home. Congratulations! Whether you’re traveling across town or across the country, here are some tips for making moving day as easy and stress-free as possible for the entire family, including your beloved pets.

Prior to moving day, make sure your pets are fitted with collars and ID tags with your name and current cell-phone number. Micro-chipping is also recommended and will serve as a backup if your pet loses its collar.
If your pet is prone to car or airsickness, make sure you visit your veterinarian a few weeks prior to your move to get any prescribed medications and feeding recommendations.
Ask you current veterinarian to make a recommendation for a new pet in the area you are moving to. Ask for copies of all of their inoculation records and keep them handy.
Make sure you fill at least one week’s worth of your pet’s prescriptions since you will not have developed a relationship with a vet the minute you move in.
For long-distance moves, be sure to identify pet-friendly hotels along your route and reserve rooms ahead of time. For a list of pet-friendly hotels, see www.petswelcome.com or www.pet-friendly-hotels.net.
On moving day, make sure your pets are secured in a crate or closed room of your house or apartment until you are ready to load them into your car. The activities and sounds of moving day will be frightening to your pets, so it is important that they be kept in a secure area to reduce their stress as much as possible and to prevent an accidental escape.
Always transport cats, small dogs and other small animals in a secure, well-ventilated pet carrier. Take the time to familiarize your pet with the container in advance of the move.
Keep larger dogs leashed and under control at all times. The stress of a move can cause even the most obedient dog to run away in unfamiliar surroundings. NEVER transport any pet in an open truck bed, trunk of a car or storage area of a moving van.
Prepare a pet first aid kit, including your vet’s phone number, gauze to wrap wounds or muzzle for your pet, adhesive tape, non-stick bandages, towels and wipes, and hydrogen peroxide.
When you arrive at your new home, set up the things your pet will need immediately and are familiar with such as their water and food bowls, toys, bedding and litter box.

For long-distance moves, make sure you give your pet potty breaks and fresh water whenever you stop for a break yourself. Make sure pets are leashed at all times during potty breaks.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, Kim Around the Web, Real Estate, Real Estate Closings, Relocation, western north carolina real estate by Kim Bregman
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TRID: What it means for you as a Homebuyer

On November 13, 2013, the Consumer Financial Protection Bureau issued a rule regarding changes to current early disclosure and closing documentation used on mortgage loan transactions. Anyone in the real estate or mortgage industry should understand that new regulations called TRID (TILA/RESPA Integrated Disclosures) and how they will have an impact on the timing and notifications required throughout the closing process.

But what does TRID mean for you as a homebuyer? If you have previously bought or sold a home, you’ll see two main changes: forms and closing deadlines.

Forms. The Truth-in-Lending Statement and Good Faith Estimate will be replaced by a new Loan Estimate. The Final Truth-in-Lending Statement and HUD-1 documents will be replaced by the Closing Disclosure.

These forms have been changed to provide the buyer with a clearer picture of the costs involved with mortgage financing, and to give the buyer more time to review and accept these terms. These changes originate from the CFPB (Consumer Financial Protection Bureau) as part of the Dodd-Frank Act. The standard real estate contacts are changing as well to reflect the dates and timing of obtaining a loan.

What is most important is the impact on the time it may take to schedule a closing under these new rules. Buyers must receive and acknowledge their Closing Disclosure at least 3 business days prior to the closing. This will require more coordination and communication between agents, closing attorneys and lenders to ensure this takes place. It is very important to make sure you are working with an informed team of agents, closing attorneys and lenders in order for the process to go as smoothly as possible.

Keep these three primary areas in mind while preparing yourself for the home buying process if you are planning on getting a mortgage:

The old forms are out.

The homebuyer will be receiving new disclosure forms from lenders explaining the loan estimate and loan closing. The Loan Estimate form combines the Good Faith Estimate (GFE) and the Truth in Lending Disclosure into a shorter form that should be easier to understand and explains the mortgage loan’s key features, costs and risks at the beginning of the mortgage process.

Under TRID, a lender cannot impose any fee, except a reasonable fee for obtaining a consumer’s credit report, on a consumer until the consumer has received the loan estimate and has indicated intent to proceed. This should make it easier for a consumer to shop for and understand interest rates, but it might take lenders longer to preapprove someone because they are going to be extra careful when collecting and reviewing borrower information.

The Closing Disclosure form combines the final Truth-In-Lending statement and the HUD-1 settlement statement into a shorter form that should be easier for the consumer to understand and provides a detailed account of the entire real estate transaction, including terms of the loan, fees and closing costs.

This disclosure might transform the closing table from a nightmare experience with piles of documents to review for the first time into a more manageable, slightly bad dream of reviewing the information ahead of time.

With more information provided by the lender before the closing date, the various roles held by the lender and title company at the closing table might change. Stay tuned.

2. The disclosures must be provided within a specific time frame — or else.

Lenders must provide the Loan Estimate form to consumers within three business days of applying for a loan – which means three business days after the consumer provided the lender with their name, income, Social Security number, property address, property value estimate and mortgage loan amount sought.

The Closing Disclosure form must be provided at least three business days before loan consummation (the time the consumer becomes contractually obligated to the mortgage, which is usually at closing).

Any significant changes to the loan terms (the annual percentage rate (APR) becomes inaccurate, the loan product changes or a prepayment penalty is added) will restart a new three-business-day waiting period. Both the Loan Estimate and Closing Disclosure forms can be delivered in person, by mail or electronic delivery.

3. The closing process will be impacted this in the months to come.

The TRID rules apply only to loan applications received after Oct. 3. Lenders will be extra careful and hesitant after this date, while providing mortgages so as not to be out of compliance with the new rules. This will most likely translate to longer timelines to get a mortgage and will delay closing dates.

This, in turn, will impact the tight timelines around moving into a home while consumers are also coordinating assets, move-in dates, time off of work and so on.

Plan for extra time to close while everyone tests out the new system and becomes familiar with new regulations and how to work together and train staff. If you are a Buyer, look for agents, attorneys and lenders that are using electronic disclosures and e-signatures. This will dramatically shorten the loan process by almost two weeks as compared with those that are relying on the US Mail.

Many common real estate practices that you have experienced in the past will be more difficult or even impossible after October 3. Critical issues like dates per the sale agreement and how changes to the deal will impact timing may cause delays because of the three-day rule and the requirement that lenders now prepare the CD. The need for Title companies and real estate agents to submit information much earlier in the process will definitely add more hurdles to jump over to close a transaction.

In my opinion, CASH transactions, will carry a much higher level of negotiation leverage for the next several months until this process becomes the norm.

Filed under: Blog, boomerrang homebuyer, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, Real Estate, Real Estate Closings, Relocation, western north carolina real estate by Kim Bregman
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Why Use a Real Estate Attorney

For most people, buying a home is the largest and most significant purchase they’ll ever make. Hiring a real estate attorney early in the process will protect you against the unexpected, and ensure a smooth and low-stress closing. Every state and sometimes regions within states have differing requirements. Some states leave that as an option open to the buyer and seller while others mandate it as a necessity. Your local real estate agent should be able to advise you what the protocol is in the area in which you are buying.

A real estate lawyer will protect your rights and interests in the transaction…unless you are using an Exclusive Buyer Agent; they are the only party truly “on your side”. Hiring a real estate attorney is a smart choice. A real estate attorney takes over after the selling price contract terms have established and all parties have signed. They will review the contract itself, negotiate repairs based on the home inspection report, and collaborate with the title company.

A real estate lawyer has the experience and training to handle the unique issues regarding real property, and the problems most people can’t anticipate. They see a lot of contracts and know the local customs, and can help cut through roadblocks. In most states a real estate agents cannot draft changes to the contract or give legal advice and very few transactions fit into a “boilerplate” contract. In addition, most Realtor form contracts are drafted to the benefit of the Seller; an attorney will add language to further protect a buyer’s interests.

Your lawyer will review the purchase agreement during the contract review period and will check the fine print of the Conditions, Covenants and Restrictions (CC&Rs) in common interest developments like condominiums, coops, country club communities, developments, and townhome projects.

Your attorney works with your mortgage loan officer, the other party’s attorney and agents to make sure that dates are set for attorney approval, home inspection, title search, mortgage commitment and other contingencies are reasonable and achievable.

Your attorney will also review important documents, including legal descriptions, mortgage loan documents, the property survey, and the title and title insurance policy, and deed.

The attorney will inspect important documents for common mistakes such as typos and misspelled names, including the legal description of the home.

The bill of sale may be another important part of the transaction that categorizes and inventories any personal property, such as appliances or furnishings, that are to be included as part of the deal.

They are also extremely helpful in negotiating for unpaid prorated expenses due to you from the seller, such as: property taxes, condominium assessments, and utilities

In most states, attorneys can change legal language in a purchase contract and void a purchase contract under state laws. You might need this in case an inspection comes back with serious red flags such as mold, plumbing, or foundation issues.

Your attorney attends the closing, to ensure the process moves along efficiently and effectively. In the case of problems/issues, the attorney will counsel and represent you.

Your attorney has no direct emotional involvement in the transaction, and no conflict of interest. You’ll appreciate a levelheaded counselor by your side if the situation becomes difficult.

You’ll receive something of great value: peace of mind!

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings by Kim Bregman
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The Foreign Buyers Guide – What you need to know about buying real estate in the United States

For many a foreign national, the United States has always been a great place to invest in.

Buying Real Estate in the United States does not give foreign owners any rights or privileges regarding legal stay or status. If you’re interested in staying in the states longer than allowed by a standard visa, contact an immigration lawyer.

By determining the primary use for your property and how long you plan to own it, you’ll be able to provide information to your real estate agent that will help guide the search and sale.

How will you use the Property?

Before you start your property search, it’s important to think ahead to how you’ll use the home once the deal is done.

Will this be a vacation home?
A home to stay in while doing business in the United States?
A home for your children while they attend college in the States?
An investment?
An eventual long-term residence?

The way U.S. real estate transactions are carried out may differ from your home country. Each State in the US has its own set of rules regarding the purchase of real estate, including the type of purchase contract used, the method of closing the sale and even the duties and titles of the individuals involved.

Several important U.S. real estate practices that are worth noting are:

In the United States, real estate listing information is shared by agents using multiple listing services ( MLS) and consumers can access that same information using real estate sites such as com or Realtor.com. In many other parts of the world, real estate is a fragmented business and buyers have to go from agent to agent to find a property.
In some countries, it is typical to pay a fee to the agents who are scouting properties on your behalf and showing you around. In the United States, the sales commission is paid by the seller who has a listing agreement with the Seller, so buyers don’t pay anything to have an agent work on their behalf if it is being advertised in the MLS system. It is always advisable for a buyer to work with an Exclusive Buyer Agent who will protect the buyer’s interest in the transaction. Make sure you ask any agent you contact what their “agency relationship” is to you. Each state has different forms of agency and many agents do not work for the benefit of the Buyer.
In the United States, real estate agents need licenses to operate. The licensing laws of each state differ regarding how much education is required, the type and depth of licensing examinations, and whether continuing education courses are required once an agent becomes licensed. The licensing system was designed to ensure real estate agents are qualified to guide consumers through the maze of finding, evaluating and financing real estate.

Foreign buyers will also want to give consideration to issues such as currency exchange rates, international wire transfers, banking systems, multi-national taxation and accounting issues, and import/export restrictions regarding currency and household goods. It is recommended that you consult with an accountant and attorney before finalizing any transaction.

Foreign buyers are eligible to buy single-family homes, condominiums, duplexes, triplexes, quadru-plexes and townhomes. Housing cooperatives or co-ops often have rules prohibiting foreign ownership. That’s because co-ops generally require that a buyer’s source of income be from the United States and that most of the majority of the buyer’s assets be kept in the U.S.

Financing or Paying Cash?

Qualified foreign buyers with a 30 to 40 percent down payment can often obtain financing for their U.S. real estate purchases. MANY BANKS REQUIRE FOREIGN BUYERS to have a specific amount ($100,000 or more) on deposit with the bank while others set loan limits of $1 million to $2 million. You may also be required to present a minimum of three months of bank statements.

The U.S. home loan market offers an array of safe, affordable mortgages, including some that will allow Muslims to buy a home without violating Islamic laws against paying interest.

Before applying for a U.S. mortgage, you must first establish credit and earn a good credit score. You can start building your credit score by opening U.S. bank and credit card accounts. You’ll also want to be sure to report all income on your tax returns. Lenders use this income information to determine how much money they’re willing to loan you to buy a home.

While you don’t necessarily need to be a citizen or even have a green card to buy a home in the U.S., you will need an Individual Taxpayer Identification Number.

All cash purchases are permitted, but U.S. law mandates that cash transactions over $10,000 be reported to the federal government. The requirement for reporting involves everyone connected to the transaction (purchaser, real estate agents, attorneys and title companies). The government wants to know how you earned the money and that it was legally obtained. Cash buyers can potentially save money on mortgage application fees, loan origination fees, appraisals and title insurance.

Should I purchase U.S. property in my name?

Foreign investors can purchase property directly – in their own names – or through some sort of business entity, such as a domestic corporation, foreign corporation, limited partnership, joint venture, real estate investment trust or limited liability company.

How the property will be used should play into your decision. Additionally, the structure through which you purchase your property can have dramatic tax consequences. Your real estate attorney and accountant should be able to provide counsel concerning your options.

Do I have to travel to the U.S. for the closing?

While you may very well want to attend your real estate closing, it is not necessary. In the event that you cannot or choose not to attend your closing, you must execute a “Power of Attorney.” This is a written document authorizing another person to represent you and sign on your behalf. Some lenders may require that you be present in the US to sign their loan documents. This is something you should inquire about when selecting a lender if you do not plan on traveling for the closing.

How will a U.S. real estate purchase affect my taxes?

A foreign property owners’ tax liability in his home country will vary depending upon where the purchaser is from and whether that country has a tax treaty with the United States. Consult a tax attorney familiar with your home country’s treaty to get answers to tax-related questions.

The United States government requires that foreign nationals pay U.S. income taxes (state and federal) on any net income (rental revenues less expenses) received from rental property. If tax returns are not filed in a timely fashion, a tax of 30 percent of the gross rental income may be assessed. Even if you’re incurring losses in the early years of your investment and you don’t owe any taxes to the government, you still must file your tax returns in a timely manner or be subject to financial penalty.

What is FIRPTA?

FIRPTA refers to the Foreign Investment in Real Property Tax Act of 1980. This ruling authorizes the United States to withhold income tax when property is sold, exchanged, gifted, transferred or liquidated by a foreigner. The Internal Revenue Service takes 15 percent of the proceeds and the state government will also take a percentage (if applicable). When a US tax return is submitted reporting the capital gains tax, if there is any refund due, that money will be refunded to the filer.

If the buyer of the home from the foreign national investor will reside in the home more than 50% of the time and the home sales price is under $300,000.00, the purchaser is not obligated to retain the 15% tax.

Filed under: 20 Blogs, Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Foreign Home Buyers, Foreign Nationals, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, International Home Buyers, International investors, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, Relocation, Retirement, South Florida Real Estate, western north carolina real estate by Kim Bregman
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