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Buying a house is a very serious matter that comes in to people’s lives. It is very risky to invest your money in buying just any house you find. You must have some guidelines that can help you decide which house is the best for you. Here are some:

1. Determine your rights

When you are ready to buy your own house, be sure you understand your rights as a homebuyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.

2. Make sure you can afford it

Your budget is really a big deal in buying your own house. What you want is different from what you need, so be practical. You don’t really need a big house if you’re just one person that travels everyday, right? Make sure that you make the best for your money. Seek help or ask for suggestions especially for those who have knowledge in real estate prices. If you can’t stay for at least a year, buying a house is inappropriate for you. You may save a whole lot more of money if you sell it urgently.

3. Make sure it fits your lifestyle

Make your house a home. Be sure it really fits your way of life and you are comfortable with it. A good example of this is if you’re working in an office, a good place to find is near or in the vicinity of your office. If you love nature, a good place to find is outside the city with clean air, near parks, has a mountain view or near at the beach. Your personality really matters in finding a good house. Make sure to look at its suburbs first and try to gather some information about the area and its surroundings. Try also to consider the kind of neighbors you will have.

4. Consider your future plan

If you’re newly married, you might to consider how many kids you want to have. You can assume the number of rooms or the home space you need. If you can afford a house that is near to a good school, it is better. School districts are more important to home buyers, therefore, it will increase your property values.

5. Be organized

It is very important to make your document files organized and safe. Because it will prove that you own the house. It will help you a lot especially when it comes in paying your house payments (taxes and amortization).

Top 5 Mistakes Short Sale Sellers Make

As a Santa Maria Short Sale Agent, I see short sale sellers make critical mistakes time and time again.  Here is my list of the top 5 mistakes I see:

1)   They wait too long to put the home on the market.Many times sellers believe that they will work out terms with the bank and their loan modification will be approved.  However, if your back up plan is a short sale, you need to leave enough time for an agent to get an offer and present it to the bank.  Less than a week is generally not enough time to get a lender to stop a foreclosure sale -- it can be done -- but you are taking a big risk.  If you want a short sale, you need to give your agent enough time to present a short sale application to the bank.  There are routine delays with short sales; banks lose documents and packages have to be re-faxed.  Don't wait until it is down to the wire.

2)  They let the house fall apart. You should do all you can to make sure that your home does not fall into disrepair.  A house with uncut grass and full of deferred maintenance is generally not appealing to buyers.  And you still have to sell your home to a buyer.  You can lower the price to compensate and attract a bargain hunting buyer, but ultimately the lender has to approve that price.  And in my experience, a short sale lender’s estimation of value tends to assume that your home is in above average condition.   Indeed, one of the most common reasons a short sale will fail is “the bank wants too much for it.”  Now there could be other reasons that the bank wants too much (including the existence of mortgage insurance) but often the short sale lender will not want to take a hit on the price just because you decided not to repair that roof leak.

3)    They make the home difficult to be shown. Many short sale home sellers are not happy about selling their home.  Some are angry because efforts at a loan modification with the lender have failed.  However, making the home difficult to be shown will not help the situation -- in fact, if you don’t have an offer on your home, it could put you in a jam down the road.  If the bank determines that you are deliberately delayingthe short sale, and you have not been making payments, often they will simply continue the path toward foreclosure.  Also a listing that is difficult to be shown gains a reputation among agents, so don’t assume that agents will begin eagerly showing your home again after you’ve spent months running them around about showing appointments.

4)   They take too long to present the short sale application to the bank. Short sale sellers must remember that the buyer is waiting for the short sale to be approved as well.  They have to put much of their personal life and their entire financial life on hold to buy a home in today’s lending environment   They have concerns on their end as well, including when they are going to move, interest rate fluctuations, and the cheaper short sale next door that just hit the market.  As a short sale seller, you should do your part and have your hardship letter and financial documents ready.  Ideally, you should have all material for the short sale application ready to go when you put the home on the market.

5) They select the wrong short sale agent. Short sales are different than regular listings.  They generally take twice as long, present unique issues, and require a specialized skill and approach.  Some agents have never successfully closed a short sale, or they simply hate them.  That is understandable because short sales require a certain level of experience, determination and tenacity.  They are not easy listings to close and I believe you must be passionate about short sales to be successful at them.  Accordingly, it is important to select an experienced short sale agent that can make it through the long haul, and is prepared to fight it out with the bank for you.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent.   If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like ashort sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

*  Nothing in this article is intended to solicit listings currently under contract with another broker.  This article offers no legal or tax advice.  Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Copyright© 2011 Tni LeBlanc *Top 5 Mistakes Short Sale Sellers Make*