Martin Elefant

When purchasing your new home, in addition to your down payment, there are additional fees involved. Below are the primary costs and explanations that you will be responsible for.

Costs paid to the Lender:

Origination Fee- This is charged by the lender for preparing the loan. Sometimes also known as: underwriting fee, processing fee and/or commitment fee.

Pre-paid Interest- this is Interest collected from the date you close on the home until the end of the month.

Initial Escrows- Is a portion of your insurance and taxes collected at closing to open an escrow account. This account will be used to make future insurance and tax payments.

Costs paid to Third Parties:

Appraisal Fee-Is a fee charged by the appraiser to evaluate the market value of the home. Typically, the value is equivalent to or more than the purchase price.

Owners Title Insurance- This policy protects the buyer from potential legal issues that were associated with previous owners of the home. For example, if a contractor did not get paid from the original owner, you would be responsible for this if you did not have this coverage.

Lenders Title Insurance- This policy protects your lender from potential legal issues on the property.

Survey- Is a fee for a surveyor to determine the property lines of your home.

Recording Fees- Are a fee charged by the local government to record the sale (ie. deed, mortgage) and some of the shared taxes on the sale as well.

Homeowners Insurance Premium-This policy protects the homeowner for the physical structure of their home.

Attorney Fee- is a fee charged by your attorney to represent you in the purchase transaction.

Mortgage/Transfer Tax- If applicable, these are taxes that are paid to the local county based on the purchase price or mortgage amount.

Other costs to be considered:

- Property Taxes due within 60 days of closing

- Moving Expense

Written By,

David Sanders

Senior Loan Consultant

NMLS #1269392

MR Capital Group

Residential Mortgages

301 Route 17N Suite 205

Rutherford, NJ 07070

P: 973.574.1144

D: 973.435.0303

C: 862.668.0161

F: 973.928.8575

www.mrcapitalgroup.com

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Shopping for a home can feel like you are on a roller coaster. The longer you look, the more likely you are to find properties that look like they could be a good deal – houses you could turn into a home. The lower the price, the more likely you are looking at a fixer-upper. Would-be homes of this caliber are transformed into paradises every week on television shows like Property Brothers on channels like HGTV. It almost makes it seem doable! The fact is any property can be rehabbed or renovated to be the exact place you want, provided you have the budget and the know-how to make it happen. The trick is figuring out whether it is worth it. Here is what you need to know before buying a fixer upper:

Structure is Everything

When you buy a fixer upper, many of the changes you will need to make are cosmetic. You’ll likely need to patch some walls and add some paint. You may need to refinish floors, remove wall paper, or replace baseboards. You might also want to install different light fixtures, add trim, change faucets, or replace doors. While these activities can take a lot of time and do require some knowledge of how to do it, they are relatively inexpensive as long as you do the work yourself and easy enough that most people will be able to tackle the task at hand. What does matter is the structure of the house itself. The size of the lot and the relative shape of the house are things that you can’t change. You definitely can’t make the yard bigger and sometimes trying to fix a bad layout by moving walls or building additions simply isn’t practical nor advisable. 

What Really Needs Fixing

Some fixer uppers need more fixing than others. Before you buy a fixer upper, take a look at the structure of the house. Check the foundation. Is the property level or will you need to shore it up? Check the roof. Does it leak? Are there shingles missing? Do you need to replace it? Consider the HVAC system. Does it work? Is it painfully inefficient? Will you need to add central air? Now think about your plumbing and electrical. Do those systems work well? If you have an issue in one of these areas, that fixer upper could end up costing you thousands more than it is worth, plus the time for the work to be completed and your frustration levels. That’s not to say you should rule these extra-care-required homes out completely, but do make sure you include the cost of major repairs when you weigh whether a house is worth your money, time, and energy.

Many Changes are Optional 

You should also know that many changes are optional when you buy a fixer upper. While an out-dated kitchen and a bathroom that looks out of style may not strike your fancy, it also isn’t something that needs to be changed before you move in. While waiting until your family is established in the home and your stuff is filling every cabinet and corner may make a remodel more difficult and certainly more messy, it doesn’t mean that you HAVE to make those changes before you move in. You could purchase the fixer upper and wait five years (or more) to do the renovation on those eye sores. In the mean time there is a myriad of things you can do to make the rooms more visually pleasing.

Hidden Costs

Most importantly, be aware that a fixer upper can come with many hidden costs. If you are looking at a home in a questionable condition (or you just want to protect your investment), you may opt to have additional inspections. Pest inspections, roof inspections, sewer line inspections, and so on can help you identify an issue before it becomes a problem. You’ll have time to do the repair and possibly negotiate a lower price for the property by having them done – but inspections are costly. It may be in your best interest to pay a contractor to look at the property and give you an estimate as to how much any necessary repairs and preferred renovations will cost. This could help you plan for future expansions or renovations.  

Remember What is Important

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When you are so focused on your move and quite possibly grieving the idea of moving, it can be tough to look at your current home and prep for that sale. Deciding to sell your home is a big deal. You are closing one chapter of your life and literally shutting the door on it – or at least you will after some lucky buyer meets your sales price – but that time isn’t here quite yet. You still have to prep for the sale of your existing house. 

To get the best return on your investment, here is a list of tips to prep your home for a sale.

Make Repairs

The first thing you need to do is make repairs. If you have been living in a home for a while, you likely have an entire list of chores that have fallen to the wayside – that cabinet drawer that always sticks, the piece of moulding that is loose in the hallway, the mark on the wall in the den. Now is the time to take care of all those seemingly little things. Consider the idea that, if small issues, like a sticky drawer, could detract buyers, imagine the effect that larger issues, like a leaking roof, could have. You’ll need to take care of those issues as well. Your home needs to be in its best condition possible to be 

Depersonalize

Once you have fixed any issues in your home and made sure that the property is structurally sound, it’s time to depersonalize your space. “Buyers want to be able to envision themselves in your home, so remove anything overly personal, like family photos in the hallway or your kids’ artwork on the fridge,” explains Forbes. “ To help buyers imagine themselves in your space, get rid of any art or other décor that might turn off people with different tastes. A classic landscape painting? Totally fine. Your zebra print leather couch? Might want to slipcover that for showings.” 

But, that’s only the beginning. You will also need to remove any items that you would not include with the sale of the house at any price. A special chandelier, a family heirloom, an antique desk, your grandmother’s cedar chest, and items of that ilk should be taken out of the house and placed in storage. During open houses, you will have strangers passing through. Something could go missing or become damaged. In addition, a prospective buyer could try to buy a piece from you.

Clean, Inside and Out

Next, it is time to clean house. A sloppy appearance could lead prospective buyers to think that you haven’t kept up with home maintenance. Also, a clean and neat home is just more inviting. It smells better and it looks nicer. People do pick up on the details, even if they don’t register it immediately. You will want to wash the windows and vacuum as well as do some deep cleaning. Wash the blinds, clean the stove, dust the ventilation screens, scrub the carpets, and pull out the furniture. According to Handy, an apartment with two bedrooms and two baths will take up to five hours to clean and houses will take even longer. You will also need additional time to clean the exterior of your home – scoop out the gutters, rake the leaves, sweep the porch – whatever it takes.

Small Upgrades 

You will also need to make some small upgrades. A new coat of paint can go a long way to making a place feel fresh and clean. “As an added bonus,” said Mickey Conlon of the real estate firm Douglas Elliman, “the faint whiff of paint can be as alluring to home buyers as new-car smell is to auto shoppers.” Just make sure to keep it neutral. The wrong color could deter some buyers. This isn't likely to happen with taupe, but it could happen with bold colors that some people will strongly dislike. 

There is nothing like buying your first home. Whether you are looking for a fixer-upper, a place to spend the next few decades, or something in between, there is no mistaking that your first home is a huge decision. It is also one of the biggest investments you are ever going to make. Be sure you are getting the home you expect by following our tips for first time home buyers.

Think Ahead

One of the biggest problems that confront new homeowners is that they don’t think ahead. For instance, before you start looking at homes, determine how many rooms you need. Do you plan on having children? Do you like to entertain? Will you possibly be caring for an elderly family member? The answers to these questions will help guide you. While you may be able to build on later to accommodate a growing family or elderly relatives, expansion is not an easy possibility, be it for the property or your wallet.

Be Clear on What you Want

Your emotions can also put you at risk when you are a first time home buyer. After all, this house is going to be your home – where you make some of your happiest memories and live with your family. As you look at different properties, you’ll imagine yourself and your family in each of the rooms. Sometimes, you will fall in love with a house that doesn’t quite meet your needs. You start to compromise. You decide that you can live without a home office because the house is in your favorite neighborhood or it has an in-ground pool that the kids will love. Three words – don’t do it. Before you ever meet with a realtor or look at properties online, develop a checklist of your must-haves and stick to it.

Decide on your Budget 

Your budget is also a slippery slope. It can be easy to focus solely on your mortgage payment, but owning a house costs a lot more than that. Aside from the taxes and insurance that is often looped into your home loan, there are other costs you need to consider, like the average utility bills for the property, commuting costs, homeowner association fees, lawn maintenance, and the cost of general home repair and maintenance. 

If you don’t include these factors in your budget, you could leave your finances stressed. First time home buyers are especially vulnerable to these miscalculations because they are unaware of the hidden costs in purchasing a home, like the cost to fix a clogged sink or repair shingles after a bad storm. Take your time, ask questions, and do your research so that you can decide on a budget – and stick to it.

Look at the Current Situation

New homeowners are often sold larger properties in less desirable neighborhoods with the idea that the section of town will improve over time. Sometimes, that strategy pays off. The neighborhood improves and you bought at a low price – but there are two problems with this. One, the neighborhood may not improve as soon as you expect, if ever. It could even get worse. In the end, you risk being stuck with a great property in a bad section of town. The second risk is that your plans might change before the neighborhood does. Avoid or lessen this risk by considering resale value of the house from the very beginning.

Research your Neighborhood

You will also want to research your neighborhood. Beyond the section of town you are considering, consider what it means to live in a particular house. One major issue is the local homeowners’ association. For example, let’s say you are looking at a house that has a mother-in-law suite. Your plan is to rent it out for the next several years, until one of your parents wants to move in. You need to check the homeowners’ association agreement first. This may not be allowed. Moreover, even if there is no homeowners’ association, the town may have restrictions on what you can do with your house. There may be historical associations to consider as well as city zoning, so make sure to do your homework. 

 Don’t Be Mislead

So this is something im doing for myself to see how I grow from when I first started in Real estate.

So my story begins 2 years after high school, right before I was going to college. I had gotten a job working for a real estate management company. They were friends of my parents and they gave me an office job. And so this is how I started my Career in real estate.

The next year when I was a freshman in college someone posted In a facebook group “anyone looking for a job in real estate for 7 months”. So being a college kid and wanted money I replied and got the job. They were a small real estate brokerage focusing specifically on renting apartments to college students. This seemed to perfect! I stayed there for about 2 years renting over 80 apartments.

When I finished college I moved back home. A few months after being home My parents decided they are going to sell their house so they can be closer to my sister family.

During the selling process I met my current Employer Marc Stein, the Owner and Founder of Links Residential in Teaneck, NJ.(contact info bottom of page) So after meeting with him and telling him about my past experience he offered me a job and I took it.

I have now worked there for 4 months and everyday I am learning more and getting a deeper understanding of how the business works as well as other aspect.

Timing is everything in the world of real estate. When to sell and when to buy changes depending on the time of the year. While conventional wisdom tells us that spring is a great time to buy or sell a home, sometimes the unconventional approach can improve your prospects for both buying and selling.

Which brings us to winter. Savvy buyers and sellers who understand that competition is lower and the demand can be higher will typically buy or sell a house in the winter.  The final sale is a satisfying result for all involved parties.

Why Home Buyers Should Shop for a Home in the Winter

Lower Competition

Winter buying means winter moving, and not everyone relishes the idea of doing either in cold weather. The upside, however, is that fewer people looking to buy mean fewer bidding wars.

Winter selling means lower competition because owners with similar properties are waiting for warmer weather. If you have a great Tudor-style home, you might be the only one on the market in January for that perfect buyer who doesn’t want to miss out.

Lower Costs

While some areas are always in high demand, home prices in winter tend to be lower than other times of the year. That doesn’t mean cheap--it means less price inflation because sellers know they will have potential buyers who have done their homework.

Pricing strategy for sellers can also be less chaotic and anxiety producing. With fewer sellers in winter, sellers can focus on the best price for selling their own home without factoring competitive pricing by other sellers. Fewer homeowners need to debate whether to overprice against fears of competitive bidding driving down the cost.

Buyers, Sellers, and Agents Are All Motivated

Since fewer buyers are active in winter, sellers typically have time-dependent reasons for putting their home on the market. For buyers, this urgency can mean flexibility during negotiations on price, closing costs, or closing dates that work to mutual advantage.

For sellers, the biggest advantage of selling in winter is faster sales. With right pricing and fair negotiations, homes sell faster in the winter and often near asking prices. Winter buyers tend to do more research and recognize value over timing, regardless of the season. 

Because of the lower available of houses, agents have more time to focus on their clients needs.

Due to lower inventory and fewer buyers, winter can be a challenge for commission-dependent real estate agents. They can--and will--work harder to close a deal for a buyer or a seller because they might have more time to focus on their individual clients.

Season Independent Motivations

Home buying, of course, goes hand-in-hand with mortgages. Mortgage rates are not season-dependent, and buyers pay attention to them. Lower rates offer more buying power, which means higher priced homes might be in reach. Sellers should take note of these trends as well, entering the market when buyers are willing to spend.

The job market also influences home buying and selling. Job relocation can happen at any time of year. Sellers under pressure to move can be highly motivated to reduce prices or offer deals on closing costs and realtor fees. If they don’t sell, they often turn to relocation firms that pay a fair price.

For winter buyers, these relocation firm-owned properties could be a good deal as well. Relocation firms do not necessarily want to make the highest profit on a sale. They just want their money back. Prices might not be bargain basement territory, but they are pitched to sell as quickly as possible in the market.

Seller Advantages During the Cold Weather

Buyers look at curb appeal. And they judge. While a nicely landscaped yard might not be to their taste, they can redo the landscaping. Most homes look good surrounded by fall colors or snow.

From a curb appeal point of view, however, fall and winter offer one less negative before the buyer enters the home itself.

Many sellers might be put off by the hectic nature of the holiday season. The counterintuitive situation, however, is that homes are often nicely decorated for the holidays and look their best. And if someone already is tidying up for friends and family visits, the home is less hassle to stage and subjected to fewer casual shoppers traipsing through open houses.

Winter sales also give sellers the opportunity to show off that new or recently upgraded heating system. Buyers take more note of heating during the winter, and a warm, energy-efficient home sells faster in the cold.

Buyer Advantages in the Winter

Due to the seasonal nature of home buying and selling, lenders experience lower demand for their services in the winter. Therefore, paperwork that can take several weeks to process during crunch times in warm weather, can happen faster--and create much less anxiety.