Vol. 5, No. 6, June 2008
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Q & A with Michele L. Jackson
With lenders qualifying would-be homebuyers more strictly, what are the standard requirements for those who want to buy these days?
For conventional lending, a great credit score (in the low 700s) and larger down payments (10 to 20 percent). Other options are available for first-time qualified buyers with low or no down payment through FHA financing and 100 percent rural financing. I don’t want buying a home to leave me cash poor. How much in savings should I have after I’ve made the down payment?
In addition to a down payment, you’ll need closing costs of around 3 percent of the purchase price, and some conventional lenders require at least two months’ mortgage payments in reserve. I would recommend at least two months in reserve (or more) as a cushion. Are fixer-uppers really bargains? How can I be sure I’m not buying someone else’s problems?
Fixer-uppers sell quickly, as they’re usually priced below market value, and yes, there are definitely bargains out there for the knowledgeable buyer. But buyers, beware! Most fixer-uppers are sold “as is” with no warranties or guarantees. Buyers are usually responsible for all certifications, inspections and certificate of occupancy. If the agreement to purchase includes a home inspection by the buyer, that’s one way to determine if problems exist. But inspections sometimes cannot be completed because the utilities are off and the home has been winterized.
What’s the truth about buying a foreclosed home? So many infomercials portray this as a simple way to get a great property for a small investment. True or false?
Buying a foreclosed home or a home in foreclosure (a short sale) is like buying a fixer-upper. Again, buyers must beware, as they are buying the property “as is,” with no warranties or guarantees. At some foreclosures like sheriff’s sales, most times you don’t have the option of being able to inspect the inside of the property. These sales take time and can be complicated. I recommend calling a realtor experienced with foreclosures.
How long do you anticipate the buyer’s market will last?
It’s been a buyer’s market for at least the last 18 months. Right now there is more supply of housing than demand. Once the supply dwindles down then it will become a seller’s market again. I would predict the spring of 2010 at the earliest.
Michele L. Jackson is a broker with 29 years in business in Atlantic County. She specializes in resales, land development and new construction.
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Warner Real Estate
210
New Rd # 5
Linwood, NJ 08221 |
By Design: Curb Appeal Forget about attracting buyers. The main reason to enhance your home’s curb appeal is so it will appeal to you! Think of the approach to your front door in three parts: the foreground (where fencing and flower beds can add color, structure and interest); the middle ground (ideal for flowering trees and shrubs) and the background (the porch that leads to the entryway). Your goal should be to enhance what’s great about your property and disguise or minimize its flaws. Shrubbery, artful lawn décor and furniture are great ways to mask what’s wrong and add eye-pleasing accents.
But first things first. Get your lawn in good shape by raking, edging and mowing. Illumination is always a good idea; lampposts are beautiful night and day, as are solar walkway lamps or other attractive light fixtures. A fresh coat of paint or a new, brightly colored front door can add a jolt of new energy to your home, making it feel more attractive. And don’t forget the welcome mat!
