A decade ago, environmental issues were rarely a part of the typical real estate transaction. Today, however, it’s common for inspections relating to environmental concerns to be part of most sales contracts.

In many states, seller disclosure regulations will [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

A decade ago, environmental issues were rarely a part of the typical real estate transaction. Today, however, it’s common for inspections relating to environmental concerns to be part of most sales contracts.

In many states, seller disclosure regulations will reveal knowledge of certain toxic substances on a property. Typically, though, it’s up to the buyer to pursue environmental inspections and tie any findings to the purchase offer.

Beyond home inspectors

Home inspectors who primarily focus on structural integrity and working systems might not be qualified to conduct specialized inspections for radon, asbestos, lead paint and mold – substances that in recent years have emerged as the most common environmental concerns for home buyers. Testing for these substances typically requires a specialist who will charge a fee beyond the basic cost of a general home inspection.

As with any other inspection issue, the estimated expense of remedying a toxic substance situation may have already been factored into the home’s listing price. Other times, the outcome of an inspection might become a negotiating point.

Radon – A few facts – Radon is a tasteless, odorless gas. It is a proven carcinogen and ranks second only to cigarette smoking as a cause of lung cancer. If you have a radon problem, it is usually easy and inexpensive to abate.

There are a number of radon sampling devices you can buy, or you can have a professional company conduct tests. Radon is measured in pico Curies per liter (pCi/L). The EPA recommends that remedial action be taken when a residence exceeds a radon level of four pCi/L.

Asbestos

Many older homes have asbestos insulation in walls and ceilings, wrapped around hot water pipes or in exterior shingles. Is it dangerous? If you suspect there may be asbestos in your home, you should have a professional inspection. Generally, asbestos is considered a health hazard when the material is friable, that is, when it crumbles, releasing tiny fibers into the air.

Removal of asbestos can be an expensive process and must be conducted by trained and certified professionals. But the presence of asbestos may not be a health hazard, and in some cases, an asbestos hazard can be isolated without removal.

Lead Based Paint

Approximately three-quarters of the housing in the United States built before 1978 (about 64 million dwellings) contain lead-based paint. When properly maintained and managed, this paint possesses little risk. However, 1.7 million children have blood-lead levels above safe limits, mostly due to exposure to lead-based paint hazards at home.

Lead poisoning can cause permanent damage to the brain and create reduced intelligence and behavioral problems. Lead also can damage other organs and can cause abnormal fetal development in pregnant women. People can get lead in their bodies by breathing or swallowing lead dust, or by eating soil or paint chips with lead in them.

The Residential Lead-Based Paint Hazard Reduction ACT of 1992 directs the Department of Housing and Urban Development (HUD) and the Environmental Protection Agency (EPA) to ensure people receive information needed to protect themselves from lead-based paint hazards. Often found in pre-1978 housing Most homebuyers and renters must receive information on lead-based paint and lead-based paint hazards when they buy or rent housing built before 1978. Some housing, such as efficiency apartments, dormitories, vacation rentals, adult housing and foreclosure sales are not covered.

Under the rule, sellers, landlords, and their agents will be responsible for providing information to buyers or renters before a sale or lease. Home buyers will have 10 days to conduct a lead-based paint inspection or risk assessment at their own expense. The rule gives the two parties flexibility to negotiate key terms of the evaluation.

The new rule does not require any testing or removal of lead-based paint by sellers or landlords and does not invalidate leasing and sales contracts.

For a copy of the Environmental Protection Agency pamphlet, Protect Your Family from Lead in Your Home, sample disclosure forms, or the rule itself, call the National Lead Information Clearinghouse (NLIC) at (800) 424-5323, or TDD (800) 526-5456 for the hearing impaired. The EPA pamphlet and rule also are available electronically and may be accessed through the Internet at www.epa.gov

Molds

Molds produce tiny spores to reproduce. Mold spores waft through the indoor and outdoor air continually. When mold spores land on a damp spot indoors, they may begin growing and digesting whatever they are growing on in order to survive. There are molds that can grow on wood, paper, carpet, and foods.  When excessive moisture or water accumulates indoors, mold growth will often occur, particularly if the moisture problem remains undiscovered or un-addressed. There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture. For more info see http://www.epa.gov/mold/moldresources.html

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 

800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to:  tfarrell@remax.net  or visit www.kansascityerealestate.com

If you plan a move across town or anywherein North America you may request a free relocation package filled with information about your destination city delivered to you within three working days. Often the fear of [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

If you plan a move across town or anywherein North America you may request a free relocation package filled with information about your destination city delivered to you within three working days. Often the fear of anything is the unknown. Fortified with the knowledge contained in these informative packages you’ll be prepared for what ever new and exciting adventures await you. Please provide your destination city, state and zip code. Please also include your name, phone number with area code if outside of Kansas City and the address where you’d like the package delivered.   Please, no post office boxes and phone numbers must be included for package  delivery, routing information and verification. Please email your request to tfarrell@remax.net  

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email  tfarrell@remax.net  or  www.kansascityerealestate.com

 Have a real estate question? Please email your questions to tfarrell@remax.net    

This forum is used to field Real Estate questions and to disseminate pertinent information about real estate trends and practices. Answers to your questions may be [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

 Have a real estate question? Please email your questions to tfarrell@remax.net    

This forum is used to field Real Estate questions and to disseminate pertinent information about real estate trends and practices. Answers to your questions may be found here. 

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email to  tfarrell@remax.net  or  www.kansascityerealestate.com

It is most frustrating to find the perfect place, negotiate an offer everybody’s happy with and not qualify for the needed financing. The best way to avoid frustration is to qualify for a mortgage through [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

It is most frustrating to find the perfect place, negotiate an offer everybody’s happy with and not qualify for the needed financing. The best way to avoid frustration is to qualify for a mortgage through a lender before you begin to look at houses.

Use a lender

Qualification through a lender doesn’t have to commit you to finance your home through that same lender. It is simply a chance for the lending company to market its services. If you want, you can continue to shop for the best mortgage deal while you’re house hunting. Your real estate agent can provide you the names of reputable lenders and set up a qualification
meeting.

After you’re qualified, it’s worth moving forward with the loan application process as early in your house hunting as possible. The process can be lengthy, with lenders requesting highly detailed information about your debts, assets and credit history. By starting early, everything can be in place when you find the right home.

Sellers know you’re serious  

 In addition to clearly letting you know how much home you can afford, qualifying shows sellers know how serious you are. One of the first concerns a seller or listing agent has when an offer is submitted is: “Is the buyer qualified?”

When it’s a seller’s market with multiple offers and quick sales, qualification through a lender is vital. And regardless of market conditions, qualification always increases a buyer’s standing in comparison to buyers who aren’t qualified. Sellers don’t like having a property tied up in negotiations – only to have the transaction disintegrate in the 11th hour because the buyers don’t qualify for the necessary financing.

Get qualified

If you’re not ready to talk to an agent or lender, you can qualify yourself using the same basic formulas used by the mortgage industry. This will give you a good idea of your price range. But when it’s time for serious shopping, it’s worth knowing exactly what a lender thinks. And it’s worth confirming that your credit history doesn’t hold any surprises. An experienced real estate agent can help you through this process.

How much do I Need

There is no strict formula used by all lenders to determine a home loan amount, but a good working rule of thumb is that you can afford a home equal in price to three times your gross annual income. This formula, of course, needs to be adjusted to a number of factors:

•Amount of available cash for a downpayment.

•Closing costs and cash reserves required by the lender

•Your outstanding debts (your total debt to income ratio should be under 40 percent)

•Your credit history

•The type of mortgage you select

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net or visit www.kansascityerealestate.com

Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need some good information before you make any moves. 

Selecting an agent is a critical [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All KC properties! 

Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need some good information before you make any moves. 

Selecting an agent is a critical issue, which can cost or save you thousands of dollars. There are very specific questions you should ask to ensure you get the best representation when selecting an agent. Many agents prefer you not ask these questions, because the knowledge you gain from their honest answers will give you a good idea about what outcome you can expect from using this agent. And let’s face it in real estate; as in life not all things are created equal.

Hiring a real estate agent is like any hiring process with you on the employer’s side of the desk. It is critical you make the correct decision as to who will handle what may be the single largest financial investment you will ever make.

Here are the Questions:

1. What makes you different? Why should I list my home with you?

It is a much different real estate market than it was a decade ago. What unique marketing plans and programs does this agent have in place to make sure that your home stands out favorably versus other competing homes? What things does this agent offer you that others do not to help you sell your home with the least amount of time and hassle and for the most amount of money?

2. What is your company’s track record and reputation in the market place?

It may seem like everywhere you look, real estate agents are boasting about being #1 or quoting you the number of homes they have sold. If you are like many homeowners, you are probably numb to much of this information. Why would you care how many homes one sold over another. The only thing you really care about is whether an agent can sell your home for the most amount of money.

Because you want your home sold fast and for top dollar, you should be ask the agents how many homes they have sold. I am sure you agree success in real estate is selling homes. If one agent is selling a lot of homes where another is only selling a handful, ask yourself why? What things are these agents doing differently?

You may be surprised to know that most agents sell fewer than 7 homes a year. This volume makes it difficult for them to do full impact marketing of your home, because they can not spend the money it takes to launch special programs to give your home a high profile.

3. What are your marketing plans for my home?

How does the agent you are speaking to market your property versus the other agent you interview? What tools are utilized (Talking House, Internet, Virtual Tours, etc.)?

4. What other homes have recently sold in my area?

Agents should bring you a complete listing of both their own, and other comparable sales in your area.

5. Does your broker control your advertising or do you?

If your agent is not in control of their own advertising, then your home will be competing for advertising space not only with this agent’s other listings, but also with the listings of every other agent in the brokerage.

6. On average how close is the selling price to the asking price?

This information is available from the Real Estate Board.

7. On average, how long does it take for listings to sell?

This information is also available from the Real Estate Board.

8. How many Buyers are you currently working with?

The more buyers your agent is working with, the better your chances are of selling your home quickly. It will also impact price because an agent with many buyers can set up an auction-like atmosphere where many buyers bid on your home at the same time. Ask them to describe the system they have for attracting buyers.

9. Do you have a client reference list I could contact?

Ask for a references or two.

10. What happens if I’m not happy with the job you are doing to get my home sold? Can I cancel my listing contract?

Some agents lock you into a lengthy listing contract. How confident is your agent in the service provided? Our listing contract is no more than the average marketing period.         

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associate 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to:  tfarrell@remax.net  or visit www.kansascityerealestate.com

Have you watched a western recently? Every wagon train had a scout who rides ahead of the party to determine the  safest route and the best ways to avoid danger. The scout was always characterized as a born [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

Have you watched a western recently? Every wagon train had a scout who rides ahead of the party to determine the  safest route and the best ways to avoid danger. The scout was always characterized as a born on the trail type and could wrestle with rattlesnakes and shoot better and straighter than your average cowboy. Most importantly the  scout knew every nook and cranny of the territory as well as its customs and idiosyncrasies.

Buying or selling a house may appear to be a relatively simple task. In reality buying or selling real property is a complex process. According to statistics the average American buys or sells their residence on average about every five to ten years. It seems every year the process becomes more complex.

Most of America’s net worth lies in the equity in our homes. It is my  job to safeguard your equity if you intend to sell and justify what you are willing to pay if you intend to buy.

I understand the territory. Consider for a moment a few of the steps required in selling your home. First you must determine value. Where do you find the data? Sure you can head down to the courthouse and spend the day researching recently sold and active properties similar to the one you are buying or planning to sell.

I have the data at my fingertips. What about things like zoning, disclosure, taxes, inspections, easements, title insurance, earnest deposits, qualifications ratios, radon, surveys, homes association declarations and deed restrictions, marketing plans, advertising, internet marketing, buyer’s agents, dual agents, designated agents, negotiating and last but not least legally binding contract forms. If you like most people you haven’t bought or sold property in years.

Consider me your scout, They will find the BEST trail for you.

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best
Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date
information about the marketplace email to: tfarrell@remax.net  or visit  www.kansascityerealestate.com
 

Buying a house, whether your first or your fiftieth, can be an exhilarating process. A house must stand on it’s ‘own two feet’ in a marketplace that is always competing for customers. You make a house a home. [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

Buying a house, whether your first or your fiftieth, can be an exhilarating process. A house must stand on it’s ‘own two feet’ in a marketplace that is always competing for customers. You make a house a home. Unless your plan is to build a house designed for you, there will be trade offs or concessions you’ll make in the house you purchase.

The KC marketplace in the last twenty has had its share of ‘buyer’s & seller’s markets’. A buyer’s market is one where there are more products available than there are customers to buy. The opposite market is a seller’s market where there are more buyers than products available. In a seller’s market you might have multiple offers on your property. In a buyer’s market you have plenty of products to choose from.

The marketplace is always competing for buyers. Therefore sellers who offer their products at the most competitive price compared to other similar products usually sell quicker and closer to the asking price. If you have a product to sell before you can buy, you are both a seller and a buyer.

Many sellers in today’s marketplace are reluctant to accept contingency offers. A contingency offer is an offer where something must happen before something else can happen. Most generally, this ’something’ is a house must sell before a buyer can buy. Most of us can’t afford to own two residences. A buyer making an offer to purchase subject to the sale of their residence has no negotiating strength. Even if you find a seller willing to accept a contingency offer, the seller almost always insists on the right to continue to show the property to other buyers while you try to sell yours. If the seller finds another buyer whose offer is not subject to the sale of a house you generally are given one to three days to remove the contingency or the other buyer buys the property.

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) 
X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net
or visit  www.kansascityerealestate.com

A reverse mortgage is a special type of loan that enables older homeowners to stay in their home and maintain a comfortable lifestyle. It allows these homeowners to convert the equity in their home to [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

A reverse mortgage is a special type of loan that enables older homeowners to stay in their home and maintain a comfortable lifestyle. It allows these homeowners to convert the equity in their home to cash without selling the property or giving up title.

The loan is called a reverse mortgage because the direction of payments is reversed — the lender pays the borrower rather than vice versa. The loan provides funds to the homeowner as a one-time lump sum payment, a line of credit (the most popular method), or fixed monthly payments for life (called tenure) or a shorter period chosen by the borrower. The loan amount is based on the owner’s equity in his or her own house, the value and location of the property, current interest rates, and the owner’s age at the time of application. The older the borrower, the larger the loan amount may be. Single-family one-unit dwellings are eligible properties for all reverse mortgages. Some programs also accept 2-4 unit owner-occupied dwellings and some condominiums and manufactured homes. Cooperatives are ineligible.

There are no credit or income requirements to qualify for a reverse mortgage. Instead, the borrower must be at least 62 years old and, in general, the borrower must receive counseling or consumer education in advance. The maximum loan amount is larger if the home is debt-free or nearly so, but this isn’t required to obtain a reverse mortgage. Although age affects the size of a loan, medical history does not – applicants are NOT required to furnish medical records or undergo an exam.

A reverse mortgage does not have to be repaid until the death of the last surviving borrower, the home is sold, or a permanent move out of the home by the borrower. And the home does not have to be sold to repay the loan. The loan can be repaid using other sources of funds and the home kept, if the heirs or estate desire.

Several Products Available

Four types of reverse mortgage products are available today. These include: the federally insured Home Equity Conversion Mortgage (HECM); the Fannie Mae Home Keeper reverse mortgage; and the Financial Freedom Equity Guard and Cash Account Plans, two proprietary “jumbo” products. The HECM is a reverse mortgage, made by private lenders, that is insured by the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development. First offered in 1989, the HECM is the oldest nationally available reverse mortgage product. More than 40,000 have been originated to date, including 8,000 in the federal fiscal year that ended September 30, 1999.

The Home Keeper loan is a reverse mortgage product designed by Fannie Mae, a national company that invests in home loans. Fannie Mae is the largest investor in reverse mortgages and has a current portfolio of over 35,000 reverse mortgages. Of this total, about 90% are FHA HECMs and 10% are Home Keeper mortgages. Home Keeper mortgages offer some different features than FHA HECM loans and can be large in size, particularly for couples. Home Keeper mortgages are originated by private lenders.

Fannie Mae also offers a unique program called Home Keeper for Home Purchase. This allows a senior to obtain a Home Keeper reverse mortgage to help finance the purchase of a new home. The advantage of this arrangement is that a senior can purchase a new home with less out-of-pocket cash, keep more of the sales proceeds from the old house, and avoid taking on a monthly mortgage payment.

About NRMLA

Established in January 1998, the National Reverse Mortgage Lenders Association is a non-profit trade association that represents lenders, financial services, and other professionals involved with reverse mortgages. NRMLA’s member firms originate and service more than 90% of all reverse mortgages. NRMLA promotes public awareness of the reverse mortgage product; keep its members informed of new legislative, regulatory, and market developments; represents the industry in Washington, DC; and holds periodic national conferences on reverse mortgage topics and trends. The Association held its first meeting in May 1998, in Chicago.

The Association has been actively involved in a number of legislative, regulatory, and market- oriented projects in its first year, with considerable success. Results include the passage of federal legislation making positive improvements to the federal reverse mortgage insurance program; steps toward enhancing the quality and availability of consumer counseling as it relates to reverse mortgages; and the creation of a Code of Conduct for Association members.

NRMLA’s Web site (see address below) has extensive information about reverse mortgages. Jim Mahoney, of Financial Freedom Senior Funding Corporation, Irvine, CA, is Chairman of NRMLA. Day-to-day operation of NRMLA is managed by President Peter H. Bell. 1625 Massachusetts Ave., NW, Suite 601 Washington, DC 20036 Tel: 202-939-1760 / 202-265-4435 (fax) Web site:http://www.reversemortgage.org For More Information:

Fannie Mae Toll-Free 800-732-6643. Consumers can obtain information on HECMs and Home Keeper mortgages and a list of lenders around the U.S. offering these reverse mortgages. Web site: http://www.fanniemae.com

HUD

Toll-Free 888-466-3487 Consumers can get information on reverse mortgages, specifically on the Home Equity Conversion Mortgage.

Web site: http://www.hud.gov

National Reverse Mortgage Lenders Association 202-939-1765

Consumers can find the names of reverse mortgage lenders in their state by calling NRMLA or checking the “Lenders List” on the Association’s Web site. The site also has detailed information on reverse mortgages. Web site: http://www.reversemortgage.org

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net or visit www.kansascityerealestate.com