The standard home inspection is an objective visual examination of a home’s physical structure and systems from top to bottom including: the heating and air conditioning systems, plumbing and electrical systems, roof, walls, ceilings, floors, windows, doors, foundation, basement and attic, and other visible structures.

A house can’t fail a home inspection, the inspector simply evaluates the home’s physical condition and reports on what may need to be repaired or replaced. No home is perfect. Try to refrain from being persnickety and forget the small stuff. If any major issues arise, it’s common to negotiate a remedy. It’s also likely that the home inspection will give you a piece of mind by pointing out a property’s positive attributes.

It’s a good idea to accompany the inspector. Tagging along will give you an opportunity to engage the inspector in a conversation about his findings, to ask questions about the home’s systems and maintenance, and to learn other useful details about the house like the location of gas and water shut-off valves and other utility connections. Having first- hand knowledge of the inspection will also help you better understand the written inspection report.

In addition to the basic home inspection, you may want to consider a pest inspection to check for termite or dry-rot damage, or an environmental inspection to check for radon, lead or asbestos. Your home inspector or Realtor can help you determine which, if any, additional inspections may be recommended.

Your home’s exterior is your first priority. If a drive-by home shopper likes what he sees on the outside, he’s more likely to have a look at the inside. Once the potential homebuyer is inside, make it easy for him to envision living in the house by depersonalizing your home’s interior and keeping it clutter-free and squeaky-clean.

TIPS TO ENHANCE CURB APPEAL

• Keep the lawn watered, trimmed and neatly landscaped.
• Keep trees and shrubs trimmed.
• Get rid of yard clutter by storing toys, garbage cans, barbeques, wheelbarrows,
• Store unused cars and RVs elsewhere.
• Consider applying a fresh coat of paint to the trim and the front door, and if warranted, the entire front of the house.
• Keep all of the windows sparkling clean.
• Make sure all exterior lighting works and in the evenings give your home a warm and inviting feeling by leaving the lights on.

KEEP THE INTERIOR CLEAN AND CLUTTER-FREE

• Get rid of the clutter. This means getting rid of or storing unused or excess items and furniture. Nothing turns a potential homebuyer off more than a home that is packed with furniture and clutter.
• Rearrange your furniture to compliment the room, making it look bigger and enhancing flow from room to room.
• Gut your kitchen and bathroom cabinets and under-the-sink areas. Make sure the essentials you keep, cleaning supplies, cookware, dishes, flatware, toiletries and linens, are kept neatly organized.
• Keep the kitchen and bathroom countertops clean and clutter-free, leaving out only the essentials and make sure those are neatly organized.
• Set up your bathrooms with new towels, keep fresh soap in the shower and sink areas.
• Repair any leaking faucets, running toilets or other systems the homebuyer likely will check.
• Minimize personal items like family photographs, trophies and other decorations that could distract a homebuyer.
• Maximize closet space by minimizing their contents. Again, get rid of unneeded items or put them in storage.
• Inspect the walls for cracks and smudges and repair or clean as needed. Consider applying a fresh coat of neutral-colored paint.
• Have carpets and drapes professionally cleaned. If you must replace carpeting or linoleum, pick a neutral color.
• Stage rooms for their intended purpose. For example, if your home office is crammed into a corner of your dining room or kitchen, move it into a more appropriate space, such as the family room.
• Minimize odors and stuffiness by keeping windows open and fresh air circulating throughout the house whenever possible. If you have pets, keep them elsewhere during the showing. Have your home professionally cleaned every two weeks so that it remains in sparkling clean condition.

Chris was an excellent agent. He immediately found what we were looking for and made sure each house fit our criteria.

We thought Chris was fantastic!

I would recommend my mother to work with him.  I trust him.

100% satisfied with Chris

I highly recommend his services to anyone.  He is professional, dependable and very good at what he does.

I have never had to ask myself if he would compromise my well being for his own interest.  He truly cares about doing a great job, including doing the right thing for the customer.

Chris is a miracle worker.  He worked hard for us for over a year without ever losing steam.  In our minds, he is hands-down the perfect Realtor.

Simply put, Chris Kamali is a Master at the art of the Real Estate Deal.

I don’t think there was anything Chris should have done better to help me close the deal.  I am really satisfied with Chris’ help.

Chris knows what to do so a house would sell very very fast.

Definitely a specialist in this field.  I can’t wait until I have to move again just so I can work with Chris again.

Chris was fantastic!  We couldn’t be happier with the service

We had been working with a couple of real estate agents in the past year.  However, those agents did not provide us with the service we expected.  We made numerous offers but failed every time due to bad advices from the agents….With your tremendous efforts, we successfully purchased our ideal property at a very reasonable price within 1 month of meeting you.

Chris is very helpful and responsible.

Just about any real estate veteran will tell you that as a general rule of thumb, a home seller who sinks $10,000 into pre-sale home improvements likely won’t regain that full amount in the home’s sale. It’s best to keep the improvements simple and low cost.

Applying a fresh coat of neutral-colored paint to the property’s interior walls is the number one improvement that can make your home shine, result in a faster sale and in most cases provide a decent return on your investment. If you can afford it, consider a professional exterior paint job, which can return up to 75 percent on your initial investment.

Your home’s kitchen and bathrooms are the rooms homebuyers will scrutinize the most. Upgrading their appearance by refinishing dingy cabinetry and replacing the hardware, throwing down some new flooring and slapping on some fresh paint can work wonders. Keep in mind that you want prospective homebuyers to be able to easily imagine living in your home and this means keeping colors neutral and fixtures simple.

Other simple enhancements include brightening the home’s interior with some new light fixtures and new electrical cover plates; professionally cleaning the carpeting or if necessary, replacement. Try planting a few strategically placed shrubs or flowerbeds; and brightening up doors with shiny new hardware and doorknobs. Your Realtor is an invaluable source who can tell you more about what is selling in your neighborhood. He or she knows which upgrades sell and which amenities homebuyers in your market are looking for; and most importantly, where your home stacks up against the competition. If most of the for-sale homes in your neighborhood feature freshly swept chimneys and new HVAC units, you may want to consider offering the same. Keep in mind that not all home improvement projects are equal when it comes to enhancing a property’s salability.

Home repairs or maintenance, for example, shouldn’t be confused with home improvements. Homebuyers expect the home’s plumbing and electrical systems to work properly and safely, and they won’t want to buy a house with a roof that leaks. It’s worth the effort and cost to get these systems in order but don’t expect to recover the cost associated with these repairs. However, making sure the property’s systems are in ship- shape will improve its overall marketability. Homebuyers like homes that are in move-in condition and that means one with a working furnace and hot water heater. Definitely avoid costly luxury upgrades like a swimming pool or hot tub or an elaborately landscaped yard. While these types of amenities may make your home more appealing to homebuyers and ultimately could tip the scales in your favor, it’s unlikely that you will recoup the cost of such upgrades.

His genuine excitement for this diamond in the rough home was refreshing and helped me realize the potential of the home we bought.  Chris remained positive even during the most stressful moments.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Chris was very responsive to my demanding work schedule.

Fruequently Asked Questions For Buying A REO

There are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

Is now a good time to buy a foreclosure?
This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the a nswer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

What’s the first step buyers need to take?
Require buyers you work with to be preapproved for a loan before you help them shop for a foreclosure. If they’re thinking of buying a foreclosure as an investment or second home, they need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.

How can you tell a bad foreclosure from a good one?
Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your clients’ responsibility when they purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner—your clients. Don’t let them fall into the same financial trap as the previous owner.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?
Lenders are drowning in defaults—particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio—so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn’t cost anything in fees, and it gives them the ability to spend more for the home.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?
Lenders are drowning in defaults—particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio—so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn’t cost anything in fees, and it gives them the ability to spend more for the home.

How does choice of neighborhood affect foreclosure investments?
Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.

Source: James J. Saccacio is chief executive officer of RealtyTrac, a Web site that tracks properties in foreclosure.

Are you ready to settle down and take on the financial responsibilities and lifestyle changes that come with homeownership? Or might you be better off renting? Spend some time evaluating your near-term goals. Might a better job opportunity send you packing to another city or state? Is your income likely to remain the same, increase or could it decrease and jeopardize your ability to meet your monthly housing costs

Homeownership is best viewed as a long-term commitment because selling a house is a costly and time-consuming endeavor. The serious homebuyer plans on staying in the house for at least two years – though that’s a minimum and a better rule of thumb is at least five years. It’s simply not profitable and it could be costly to buy and then sell a home within less than two years. Even if a red-hot housing market allowed you to turn a nice profit, the proceeds would be subject to capital gains taxes.

Making the transition from renting to homeownership is both exciting and challenging. The homeowner is the landlord and that means when a repair is in order, it’s up to the homeowner to either personally fix the problem or hire and oversee a contractor who will remedy the situation. The same goes for maintenance and overall property upkeep.

But for those who’re willing to take on the challenge, the benefits are many. Homeownership is a form of forced savings; mortgage interest and property taxes can be deducted from income taxes. Homeowners can rest easy knowing their housing costs will remain relatively stable (depending on the type of mortgage loan), and long-term owners build valuable equity.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if:

• You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you’re serious about purchasing a short-sale property, it’s important for you to have expert assistance. Here are some people you want to work with:

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who’s knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.
• A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)
• Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.
• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.
• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.

In some cases the attached items are obvious – light fixtures, built-in appliances or a mailbox that is firmly planted into the ground. However, sometimes what stays and what goes isn’t completely cut-and-dried – a buyer may incorrectly assume the chandelier in the dining room stays, perhaps that mailbox is a family treasure you intend to keep. It’s best to outline in the sale contract all of the items in the house that you plan to remove, as this can help you avoid any last minute negotiations.

If you’re worried that a chandelier or other pricey light fixture, window treatment or some other item may become a negotiation point you’d rather avoid, consider removing the items and replacing them with fixtures or treatments you’re willing to include in the sale.

Spend some time with your Realtor going from room to room and itemizing the properties you plan to take with you and those that you will include in the sale. Your Realtor has probably seen some fierce negotiations crop up over some seemingly mundane items and likely can help you circumvent some of these issues by pointing out items that buyers typically like to see included in the sale.