How a mortgage puts a Buyer at a Disadvantage?

For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy. Well, sort of…That’s because when a buyer makes cash offer, the seller knows it’s a solid deal. Of course, when it is verified as some buyer might want o pull the “I have the cash but not showing you where it is”.  Financing hiccups won’t delay a closing and sometimes, that’s enough for the seller to accept a lower bid for a cash deal instead of a higher bid from a financing buyer.

It’s becoming more common with the number of cash buyers on the rise, swooping in for deals on low-priced properties. Yet while cash is king, there are some things financing buyers can do to better their chances of having an offer accepted. Perhaps the most important tip: The smartest thing the buyers can do is make sure they talk to a competent mortgage banker (preferably a large, well know bank) to pre-approve them ahead of time

Also, remember that the more cash you’re willing to put down, the more secure your job and the better your credit, the better off you will be in getting the seller to accept your bid.

In February, all-cash deals made up 33 percent of all home sales—a record high, according to the National Association of Realtors (http://www.realtor.org/). In 2010, 59 percent of those who bought a home as an investment paid cash for the home! That is a staggering number!

People are plunking down cash on properties for a variety of reasons. One popular one: With low housing prices, some people are pulling their money out of the stock market and investing in rental properties, with a plan to own them long term. And, in my opinion is a smart move as I never trusted paper money… Investing conservatively is always my advice as I never bought properties in the bubble even with a great promise of return a anything over a 10% annual return would impose too much of a risk for me.

Some parents may be providing the cash to help their children buy homes, at a time when financing can be out of reach for young adults as first time home buyers made up 50% of the US market in the past 2 years!!! Instead of applying for a loan from a bank, the kids make their payments to the Bank of Mom and Dad. Meanwhile, the parents can charge 5 percent to 6 percent interest on the loan—earning them more than they’d get on a safe investment such as a certificate of deposit. Cash offers often win out when the bank is the seller. Those are most likely foreclosures now back on the lender’s books.

When dealing with a bank, remember that lenders are typically more analytical than a homeowner seller! As I would say, they are much harder to “get along with” these days….. And for an institution, they’re more apt to go with the safest bet.

When you have an equity seller, they don’t have to take a lowball cash offer or any offer so instead, they’ll most likely opt for the best and highest offer, since they may not be as motivated by time.  To compete with a cash buyer, you’ll need a bit of strategy. Here are some suggestions:

·         Get pre-qualified—or better yet, pre-approved—for a mortgage. Along with a high down payment, preparing to put down a high deposit could also up your chances of beating out a buyer who is bidding with all cash, he says.

·         Act quickly- to beat the deep pockets. If you did your home work, do not hesitate.

·         Learn the seller needs- an agent or a self buyer should do some “socializing” with the seller or his/her agent. Flexibility might be a good selling point to the seller.

·         Make the offer professional- a well-prepared contract that is typed out, plus a cover page summary of the contract details, is another way to show you’re serious

·         Have patience- if you’re interested in bidding on bargain homes including foreclosures, you might end up looking at 40 different properties and make seven or eight offers before you get one accepted

Please contact me with any questions: Thomas Wohl, Broker thomaswohl@yahoo.com or http://www.thomaswohl.com/



Nice transitional home with fenced yard at 9421 Buggy Run Cir. Wake Forest NC

9421 Buggy Run Circle- Wake Forest NC

MLS#1780528

Transitional, light filled floor plan with low maintenance vinyl siding

Two story open Foyer with hardwood floors and plenty of light

Beautiful Dining room with trey ceiling and hardwood floors

Large kitchen with stainless steel appliances, kitchen island and view of back yard. It is also open to large family room and eat in area.

Large family room with fireplace and view of back yard



This home is also minutes to many parks and recreation facilities form the town of Wake Forest"

http://www.wakeforestnc.gov/parksrecreation.aspx

Master Bedroom offers cathedral ceiling, plenty of windows, large walk in closet and view of private back yard

Back of home with two large decks to entertain



View of Back yard, park like setting

For more information, please contact me at http://www.thomaswohl.com

Blog by Thomas Wohl, Broker, ABR,CRS,CDPE,SFR,TRC

RE/MAX Preferred Associates

Cell: 919-601-3005

Office: 919-845-2176

thomaswohl@remax.net

Great end unit Townhome on GOLF course in Brier Creek Raleigh NC!

BRIER CREEK COUNTRY CLUB

http://www.briercreekcountryclub.com/local_map.pdf

The 18-hole Brier Creek Country Club in Raleigh, North Carolina is a private golf course that opened in 2000. Designed by Arnold Palmer and Ed Seay, Brier Creek Country Club measures 6945 yards from the longest tees and has a slope rating of 135 and a 72.9 USGA rating. The course features 3 sets of tees for different skill levels. The greens are bent and the fairways are bermuda.

9221 Fawn Lake Dr

Gorgeous end unit golf course view townhouse on #2 tee box!

Beautiful two story great room that opens to Sun room and Loft above

Beautiful, light and open floor plan with custom details. Amazing sun room with skylights and golf course view.

Dining with trey ceilings  and  bay window.

First floor master w/cathedral ceilings and hardwoods thru-out entire 1st floor

Plantation shutters, tons of extra storage. Kitchen with breakfast area, custom cabinets, SS appliances

 Huge loft/bonus with two skylights! Shows like a model.

More information on this magnificent property please visit :

http://www.thomaswohl.com

or call me at 919-601-3005

More information on Brier Creek Community please visit:

http://www.briercreekcountryclub.com/aboutthearea.shtml

Brier Creek is also minute to RDU International airport

http://rdu.com/mapsdirect/insiderdu.htm

And Umstead Park

http://www.ncparks.gov/Visit/parks/wium/main.php

and Falls Lake

http://www.ncparks.gov/Visit/parks/fala/main.php

Unexpected expenses associated with buying a home. Are you prepared?

Homes are more affordable these days and the selection is abundant. It is a great time to buy! But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are hosts of other recognizable and unexpected cost that can get overlooked in the excitement of buying a house, especially if it’s your first.

Ultimately, those things might mean the difference between home sweet home and foreclosure.

It is important for all buyer to know , especially first-time buyers, that there are additional expenses other than their monthly mortgage Just because a lender has qualified you for a certain size mortgage doesn’t mean you have to spend that much on a house. There will be additional, unforeseen costs, such as repairs, decorating, improvements, utilities and the like. You do not want to be “house poor” as often on FHA loan down payments comes from a gift and it is just another evidence of not saving enough….

Through the loan-qualifying process, some buyers, especially first-timers, become aware of the concept of spending only a certain percentage of their income on what is called PITI—principal, interest, taxes and insurance.

The “T” in PITI—taxes—can be expensive, depending on where you live. If you buy into a condo complex or a new-home development (which in Raleigh, NC I would strongly advice against), you will have to factor in monthly homeowners association fees, as well. PITI and association fees are fixed costs, for the most part, although home owner’s insurance rates and taxes can rise. Mortgage interest can change, too, if you don’t have a fixed-rate loan.

                                                                                            

I would urge any buyer to set aside a “rainy-day fund” for unanticipated major expenses, such as a broken HVAC or a roof leak. Home owner’s insurance plans often have lots of gaps, so there are many things they don’t cover.

                                                                                                              

For example, home owners insurance can include flood coverage so when the basement stairwell drain is clogged with leaves and water backs up the basement there will be a cost share after deductible.  You need to be intimately familiar with deductibles as well as coverage limits, so your annual premium will likely be much higher than the state average when you finish crafting your policy. You certainly can shop around for the best rates, and, in many cases, save money on the premium with a policy that covers your automobiles as well as your house.

But you should also allow for simultaneous unanticipated expenses, such as a car transmission failure and a fridge on the fritz. If you are living on the economic edge, enough of these disasters can push you over it.

I believe that between $5,000- $10,000 in liquid savings that can be turned into cash anytime with very little risk of capital loss is not too much, adding that $5,000 was the recommended minimum.

Among expenses to factor into a home-buying decision:
-Utilities: Heat, electricity, water and sewer, telephone, cable television, Internet and cell phones. You also may have to pay a fee for trash collection and recycling.
-Food/entertainment: Dining in and out, movies, hobbies.
-Children: Day care, tuition, lunch money, supplies, clothing, sports gear.
-Health costs: Braces, eyeglasses, medicine.
-Debt: Credit-card payments, car/student loans.
-Maintenance/repairs/decor: Furnishings and appliances, landscaping, snow removal.
-Job expenses: Transportation (gasoline or transit costs), auto maintenance.

For more information, please email me at thomaswohl@remax.net  with question or visit my web site at http://www.thomaswohl.com

Thomas Wohl, Broker
RE/MAX Preferred Associates

919-601-3005

The lost art of COMMUNICATION

I just saw this article on Communication and social media. I think it is really interesting how the avenues of human contact is changing and how the "basic" conversation "still works"

LOL and BRB might be key communication elements in a texting, emailing, social-media-obsessed world, but they don't make for high quality communication or conversation. Sometimes you might not even know what your communicating counterpart is even saying to you. With communication becoming more and more diluted by technology an essential element in building strong, mutually beneficial, and even profitable relationships.

"Conversations are the building blocks of relationships," Without it, we form relationships that are devoid of substance. Unfortunately, we live in a world where the modern MO seems to be less talking and more texting. People either think they don't have the time or don't think it's necessary to take the time to have real conversations with each other. But for anyone who wants to create truly beneficial relationships, you have to stop texting, walk away from the computer, and connect with someone one-on-one through a great conversation.

The goal of any conversation should be to build a mutually beneficial relationship with that other person! By having a conversation with someone, you're committing to connecting with him or her for the next 10, 15, 30 minutes or more. Follow that conversation to its conclusion, and you never know what you will find out. The point is you have to be willing to have it in the first place, and that is something that too few of us value these days.

Today, you can find out almost anything you'd ever want to know in seconds. You can rattle off a text faster than you can dial someone's number. You can send an email out to multiple contacts in a couple of minutes. But with this speed of communication,, you often sacrifice quality; and, ultimately, this sacrifice leaves you with paper-thin relationships.

Texting, IMing, and emailing provide great ways to communicate, but there is a one-sidedness to the kind of communication they allow. There is a delay in the actual exchange of ideas that doesn't exist when you are speaking with someone. With these methods, the chances are also higher that you will be misunderstood or you will misunderstand the other person because there's no way to capture tone and feeling in a way that ensures it won't be confused. To truly express yourself and allow others to express themselves, conversation provides the highest quality of communication.

It's an opportunity-making skill. Being a great conversationalist can lead to great opportunities, both in your professional and social lives. For example, to get your dream job, you'll have to back up your meticulously written resume with a great interview. The most comfortable interviews are those that feel like normal conversations--a give and take between two (or more) people who genuinely want to learn about one another. Once you get the job, your conversations with your new colleagues will help you gain their trust and build a rapport that helps you (and them) succeed.

In your social life, if you want to ask someone on a date or even just make a new friend, you're going to have to be able to talk to that person. These are all situations where technology is only going to get you so far. Life's opportunities are sealed with conversation, not texting or emailing. As it is impersonal. And if it is easier because some one is so shy, maybe a good life coach or therapist would be a better answer and "friending" people by a click of a button....

It's a great way to invest in others. The act of listening--the other half of a great conversation and I think this is what most of us lack--shows people you care. When you speak with someone and listen to what he or she has to say, you are showing that person you value him or her and the wonderful thing is that in the flow of a great conversation, he or she is giving that courtesy right back to you.

I truly believe in communication that is done by a personal touch. I like to listen to the voice and tone as the email does not give any clues of the person's state of mind or mood. Words are not just words, at least not in my book.

8251 City Loft Ralewigh NC- Towhome with two master suites and wooded yard!

Absolutely gorgeous town home with sun filled open floor plan.

 Formal dining room could fit many guests to entertain

 This great unit features two master suites upstairs with two full baths and laundry (washer dryer included). The kitchen is open to family room and plenty of counter space and tall cabinets. This home ha sbeen freshly painted in 2011! 

This is also a "walkable" community with neighborhood shopping center:

http://www.walkscore.com/score/8251-City-Loft-Court-Raleigh-NC-27613

AND near Umstead State Park:

http://www.ncparks.gov/Visit/parks/wium/main.php

HOA dues also include beautiful pool

 "forever green" private back yard as it backs up to natural wooded area.

For more information please contact me!

http://www.thomaswohl.com

4457 Fairview Ridge Lane Apex NC

Elegant and beautiful open floor with great foyer! This magnificent house had one of the best, open plans with huge family room that features 10ft+ stacked stone gas log fireplace and extended area with eight windows that fills up the room with plenty of sunlight!

This home also features a huge kitchen with cherry cabinets as well as granite counters kitchen island with room for barstools. Dining room is over sized and easily fits a small "army" of guests!

 There is a huge bonus room over the three car garage with many possible recreational or entertainment uses!

 Unfinished basement with nearly 1200Sqft and outside entrance to private, wooded back yard! More information and full listing details at http://ww.thomaswohl.com/
This neighborhood also has two community pools and rec centers with playgrounds! Walking distance to top ranked NC schools.

Please view the slide show of this magnificent property at:

http://www.slide.com/r/nxRcwGuG6z86d77D8yAGtngRFEGRmDaD?previous_view=mscd_embedded_url&view=original