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RICHARD J BENEDETTO
800 Fairmount Ave, W.E.

Jamestown NY 14701

 Cell: (716) 665-9403
 Office: (716) 484-2020 Ext. 203
 Toll Free: (800) 707 2295

Email: richard0039@yahoo.com
 

Home Buying 101

4 Real Estate Deal-Breakers and How to Fix Them Efficiently

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

The real estate sales process can be stressful and seemingly complicated. Even a relatively smooth process can take ample negotiations and may require weeks to pass before you can close on the transaction. Some deals are increasingly complicated, and major roadblocks may develop that threaten the entire project. These are a few of the more significant factors that buyers and sellers may run into during the real estate sales process that could potentially prevent the deal from going through as planned.

Unpleasant Decor
Unpleasant decor is something that buyers notice immediately, and some will only make an offer on the home contingent to some decorative updates being completed before closing. For example, some buyers may detest bold paint colors on the walls or may feel that the decor in the kitchens and bathrooms is too outdated; however, sellers may believe that the home is priced appropriately for the as-is condition and that they should not make concessions because of decor. Both real estate agents need to review sales comps in the area to determine if other homes selling in this price range have similar decor or if they have recently been upgraded. The agents should make the buyer and seller aware of realistic expectations based on market conditions, and one or both parties may need to make concessions based on a sales price and property condition that is justified by the market.

Major Repair Issues
Home repair issues may be known by both parties before a property inspection is complete, but the inspection report can potentially reveal more issues that have not been discussed. Many buyers may try to negotiate to have repair work completed before closing. You may consider taking a course on renovations (like Rules of Renovation) and other significant home improvement projects before you agree to take on any huge projects as a buyer or a seller. These courses can help you to better estimate the cost and time it will take to complete the work that is needed.

A Low Appraised Value
Many buyers will apply for a home loan to pay for their purchase. Mortgage lenders typically offer a loan amount that is a percentage of the sales price or appraised value, and they will take the lesser of these two figures into consideration. This means that an appraised value that comes in lower than the sales price could reduce the loan amount to an uncomfortable amount for the buyer. More than that, the buyer may not want to pay more money for a house than it is worth. The feasible options are for the seller to lower the sales price or to work with the appraiser to increase the appraised value.

Title Issues
It is customary to review the title history on a property before finalizing a purchase, and this is a required step for anyone who is applying for a mortgage loan. This process essentially determines if the seller clearly holds title to the property or what obstacles need to be cleared before the seller can convey title to the buyer at closing. Some issues are minor and can easily be dealt with prior to closing by the title company and the seller. In some cases, however, a real estate lawyer needs to be contacted to resolve the matter.

Many real estate deals will close without a hitch, but many others will develop one or several of these issues. Many issues can be overcome when the buyer and seller work together and when enough time and patience is given to resolve the issues. You may also have to use third-party services, such as a title company or real estate lawyer, to address the issue properly.

For the latest real estate news and trends, bookmark RISMedia.com.

The post 4 Real Estate Deal-Breakers and How to Fix Them Efficiently appeared first on RISMedia.

Learning the ABCs of FICO

Most people don’t think too much about their FICO scores until they want to get a loan. No matter the type of loan you want—mortgage, new car—the higher your FICO score, the more likely you’ll be approved.

Understanding the five factors that make up your scores can be the first step toward improving them. Financial experts at the Motley Fool break down where your scores come from and suggest a few ways to improve them.

Know Where Your FICO Score Comes From

Payment History – Thirty-five percent of your score is determined by whether you pay your bills on time every month.

Credit Utilization Ratio – Thirty percent reflects your credit utilization ratio—the percentage of available credit you’re using. Using less than 30 percent of your available credit can help your credit score.

Length of Credit History – Fifteen percent reflects the length of your credit history. Paying bills consistently over time can definitely work in your favor.

New Accounts – Ten percent of your score is based on the number of accounts you open. Opening too many new accounts simultaneously suggests you’re highly reliant on borrowing to keep up with your expenses.

Credit Mix – Ten percent reflects the types of accounts you have. Credit bureaus make a distinction between your credit card accounts versus student loans, car loans, and mortgages.

Three Ways to Improve Your FICO

Pay off a chunk of your balance. If you carry a balance, pay off as much as you can, even if it means you must work a second job or sell off stuff you no longer need or use.

Ask for a raise in credit limit. If you’ve paid your bills consistently, this may not be difficult to get—and since your credit utilization ratio carries significant weight, that should help to improve your overall score.

Correct reporting errors. It’s estimated that 20 percent of credit reports contain errors. If you spot one on yours—such as an error in the amount you owe or a paid-off account not shown—getting it corrected will almost certainly boost your score. Review your FICO score for free once each year to make sure it’s accurate.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Learning the ABCs of FICO appeared first on RISMedia.

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