Tuscaloosa Real Estate For Sale

Buying a Home in Tuscaloosa for the First Time - You Must be Aware of These Things

Buying a home in a new town for the first time can be a tricky task for sure. However, if you have decided to do this then congratulations because not everyone gets the opportunity to purchase his or her own home in this lifetime. Now, you should sit and consider a few things with your family or spouse such as what is your budget and how much can you afford to spend in order to buy a home. Once the amount is decided, make sure you keep a bit extra on the side just in case if your newly purchased home needs some fixing.

You can start finding a home by roaming around a few neighborhoods where you would like to move in and see what the market value is, I am sure that you would come over a couple of sign boards saying house for sale. Also, you can look for ads in newspapers, internet, or go check with your local real estate agents as well. Real estate agents can be of big help letting you know about the homes you wish to buy while staying in the budget at the same time as well. Just for a little amount of commission these agents can save you a great deal of both time and efforts.

You should keep in mind that mostly people would ask for more money when selling homes so know how to negotiate or let your real estate agent do that on your behalf. Mostly, you will hear prices higher than the market value but do not panic, just talk and convince the seller; make sure neither you nor them go in a loss. Secondly, before finally approving any home, check each and every possible thing you can to make sure there are no broken things that would need repairing which might cost you a bit extra in the end; all such things should be fixed by the seller. Kitchens and bathrooms should be thoroughly checked for any leakages or other sewerage problems.

Neighborhood plays an important role where you look for a home. Neighborhoods give the first impression to people about a particular place. So, make sure the surrounding is nice and clear plus the people are educated and friendly at same time as well. This would be beneficial for your family since your kids can easily go out and play and your wife can go out to shop safely. These little factors contribute a lot in buying the right home, especially when it is your first time. Do not make a wrong decision, search as much as possible and put in more efforts in order to find a better deal for yourself.

Tips For Selling Your House In Tuscaloosa

When it comes to selling your house, there are quite a lot of important points that you need to bear in mind. These points would make the deal both profitable and successful. When you sell your house you need to check each and every aspect that increases the chances of the house to be sold at a great price. For those who are new to this arena of selling a house, the best option could be consulting Tuscaloosa Real Estate agents. The very first area that needs due concern is to check out that you carry out necessary repairs if needed as the potential buyers would love to buy a house that is in good shape. Some of the aesthetic works such as painting and cleaning do not increase the value of your house but play a vital in making your house look saleable. Tuscaloosa Real Estate agents can suggest some of the vital points in depth for improvements that most of the times go unnoticed. Do not get stuck in between for taking any decisions related to spending money on the house that you are going to sell because the good condition of the house can undoubtedly fetch you more money.

Rules To Be Followed Before Putting Your House for Sale

Although you can get complete house selling advice from agents who deal with Tuscaloosa Real Estate, but there are some basic rules that are drafted by agents at Tuscaloosa Real Estate to make the house selling process easy for you.

• First Impression Lasts Long: - When preparing of selling a house, the first impression depends on the entrance of your house. The front of the house needs some extra money as compared to the other parts of the house. Tuscaloosa Real Estate consultants lay stress on making the frontage of your house filled with new doormats, repainted front door, beautiful flowers and a perfect entrance.


• Home Must Be Clean: - The cleanliness of the house gives a picture to the potential buyers that a house has been well maintained and will be a good investment.


• Fix Up Everything: - Before you place a placard outside your home that states it is for sale, make sure that there are no leaking taps, cracked tiles or any such thing that can send a wrong message to the prospective buyers.


• Neutralize The Colors: - This is one of the most important rules that are suggested by consultants of Tuscaloosa Real Estate, as when any buyer enters, his focus goes towards the color schemes, both too dark and too light color schemes would distract the buyers a bit if not more.


• Define Each Area Properly: - Buyers would like to know how each room looks like in regard to see that all their items would be placed perfectly or not. Once you know how to sell a perfect lifestyle, you can sell a house.


• Adequate Lighting: - One must make sure that the lighting in each and every corner of the house is perfect and you can make use of subtle light mood as it represents your comfort.

All these above mentioned points are tried and tested by consultants of Tuscaloosa Real Estate; all you need to do is follow them with a perfect approach.

Tips To Prepare Your Home for Selling

Several key decisions need to be taken once you decide to sell your house and these tips could not only help you strike a profitable deal but will also give you satisfaction.

• Make sure that every bedroom has a bed as underestimating the importance of a bedroom could take a deal out of your hand.


• Tuscaloosa Real Estate consultants state that the storage area is among the most looked out area, especially if you have a female buyer.


• The children’s rooms need to be clutter free and tidy as the buyers are usually more demanding in the case of kid’s room.


• Do not retile some portion of your bathroom or kitchen as this removes the entire symmetry. Try to get the entire tiles changed.


• Get rid of the old furniture as this makes the house look messy; try to keep only those items that have usability as this creates an impression on the buyers that the house is kept well.


• Know everything about your home as you must be able to solve each and every query of the buyers; failing to do so shall make them feel you have not serviced your house from the past many years.


• Place furniture that is neither too bulky nor too light because your furniture tells a lot about your taste and lifestyle.


• Most of the houses have good or bad points for them, but if you follow the advice of Tuscaloosa Real Estate then you must not show the buyers, the bad points.


• Decide worth of your house as this would be the very first question that would strike the mind of the potential buyer and at this point of time the amount you say will be the one that you receive once the deal strikes.


• Do not leave the spaces empty, if you have removed some items then you must try to fill in the space with something else. An empty place does not give positive vibes to the prospect buyers.


• Make full use of new bed sheets and curtains as agents and buyers of Tuscaloosa Real Estate feel that although this will do no good but will make the buyers feel that you are giving due concentration to every point of the house.

Now that you are ready to sell your house you must consult Tuscaloosa Real Estate as they would help you to make the most out of the property that you are selling. Tuscaloosa Real Estate will also tell you the different advertisement modes as these days you need to reach the people to get a profitable deal. Get your home valued with Tuscaloosa Real Estate to make sure that you do not land up in any kind of loss. Give final touches to your house and make it a perfect selling material. Good Luck!

 

 

Bank REO Properties

REO (Real Estate Owned) are properties that are owned by a previous lender, typically a bank. They are no longer the lender, they now own the property. In some cases the bank may have acquired ownership via a deed-in-lieu-of-foreclosure from the previous owner, but usually the bank foreclosed and no real estate investors showed up at the courthouse steps to bid on the property. Now this may be because there was no equity in the property, so the bank's opening bid was more than the property was worth. However this is not always the case - Foreclosure Auction Mistakes.

If this is an FHA or VA insured loan and there is no equity in the property, the bank will generally deed the property over to HUD or the VA (after the foreclosure and eviction) in exchange for compensation via the mortgage insurance. In that case the properties will not become typical REO's. They will usually be sold through the HUD web-site ( HUD Foreclosures ) or VA's asset management / liquidation company.

Now for the ones that actually become a Bank REO property. The bank frequently want to sell these properties fairly quickly for a reasonable price, but sometimes (for various reasons) a bank will sell an REO really cheap.

A story from previous observations may help you understand the process better.

Since this was low value area. If you are in a high value area, you may need to add a zero (0) to each figure to picture the story in your market.

On one occasion, a broker (a friend of mine) was listing a house for a regular homeowner. Their asking price was $140,000 because that is what they owed on the first and second mortgage combine (120,000 + 20,000).

The real estate broker explained to the homeowners that even though they owed $140,000 on the property, similar houses in the area were only selling for around $120,000. They received several offers in the $120,000 range. But since the homeowners could not afford to pay $20,000 at closing to sell their house, they ended up just “letting it go back to the bank”.

The first mortgage holder foreclosed on the property with their opening bid being close to $120,000. There were no other bidders, so the bank now owned the property (a bank REO). The foreclosure sale "cut-off" the second mortgage.

Now just to be clear the previous homeowner still owed the second lienholder $20,000, it was just no longer attached to the property since a senior lienholder had foreclosed.

Right after the foreclosure sale the real estate broker received another offer on the property for $109,000. Since brokers usually have to present all offers, he called the homeowner to let them know about the offer. They informed him that the bank had foreclosed and they were moving out. So he got in touch with the bank to let them know he had an offer on the property.

Before he told them how much the buyer was offering, they firmly informed him they could not take a dime under $62,000. Obviously he had found a deal for the buyer.

On a side note (because this is really the opposite of the theme of our story), this same broker also had a bank that wanted to list an REO property with him at $730,000 because that is what they had loaned on the property via an appraisal.

The broker had to explain to them that the fair market value of the property was only about $300,000. After ordering a few new appraisals they listed the property with him for around $300,000. It is our understanding that their attorney is trying to track down the previous appraiser.

If you as a Real Estate Investor can find a broker/agent that works a lot of Bank REO Properties you should be able to get some really good deals.

 

 

How do rent to own homes work for the buyer?

 

Basically the seller will either contract to sell you the house on a lease purchase, in which case you are obligated to purchase the house before the expiration of the rent to own agreement, or rent the house to you with an option to purchase.

The following are some of the items you should consider before entering into an agreement on a rent to own home.

How much of the monthly rent, if any, will count toward the purchase price. Look for a clause in the rent to own agreement that looks something like this:

RENT CREDIT: For each monthly rental payment that is made in full before the due date, a $__________________ rent credit/purchase credit will be applied toward the purchase price. At closing, the buyer may choose to apply the rent credit/purchase credit to reduce the purchase price or toward the buyer’s down payment if allowed by the buyer’s lender.

If you are unable to qualify for a bank loan before the expiration of the rent to own agreement, will you be allowed an extension? You may want to insist on a clause similar to the following in the rent to own agreement.

EXTENSION: The seller is relying upon the buyer's ability to close with cash or a loan on or before the closing date stated in the purchase & sale agreement. However, the buyer may extend the closing date for __________________ months, provided that the buyer has complied with the terms of the attached rental/lease agreement and any other agreements and provided that, no later than 45 days before the closing date stated in the purchase & sale agreement, the buyer notifies the seller in writing and pays an additional, non-refundable earnest money/purchase deposit, which shall apply toward buyer’s down payment, in the amount of $_____________________. No further rent credit/purchase credit will accumulate during the extension.

If you, as the buyer, default you will probably forfeit your purchase deposit. It is usually stated something like this:

DEFAULT: If the buyer vacates the property for any reason or defaults under the terms of this lease purchase agreement, the attached purchase & sale agreement, rental/lease agreement, or any other agreement, the seller shall have the right immediately to cancel/terminate all agreements. In such case, the seller shall retain all earnest monies/purchase deposits, credits, and all improvements to the Property as liquidated damages and not as a penalty.

In most cases until you close on the property, you do not own it and are only a tenant.

LEASEHOLD ESTATE ONLY: Until closing, the buyer shall have a leasehold estate only. This is not an installment land contract, bond for title agreement, or any other type of owner financing.

Three percent (3%) of the purchase price is suggested as the minimum earnest money/purchase deposit, which shall apply toward the buyer’s down payment; but is non-refundable in the event the buyer defaults as stated in the rent to own home agreement.

The term is negotiable but a common length is 12 months with a 12 month extension, if needed. NOTE: The seller will be “locked into” the agreed extension, if the buyer performs as stated in the rent to own home agreement.

Since security deposits are refundable, the buyer can apply this money toward the down payment at closing, along with the non-refundable earnest money/purchase deposit.

The amount of the rent credit is negotiable and accumulates during the rent to own home agreement. Mortgage lenders will not typically apply rent credits toward the down payment. Accordingly, over a 12 month contract, a rent credit of $100 per month would be a $1,200 reduction in the purchase price.

 

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