The ramblings of a real estate veteran.
September 8, 2010 2 Comments
Practitioners in the real estate industry sometimes throw around acronyms and terminology that we understand, but in many cases our clients do not.
Here is a prime example: short sales, foreclosures and REO’s (Real Estate Owned). I found this short video clip that does a great job in explaining the differences. The guy in the video is Spencer Rascoff, the COO of Zillow.
November 6, 2009 2 Comments
The Lancaster County Association of REALTORS® Government Affairs Department, headed up by Frank Christoffel, IV, passed this Q&A along regarding the latest information on the potential extension of the homebuyer tax credit which includes an existing homebuyer credit that was not part of the first bill.
The House of Representatives passed the extension yesterday by a vote of 403-12 after passing the Senate the previous night 98-0. The new provisions will take effect as soon as President Obama signs the bill.
Here are some of the specifics regarding eligibility requirements:
1. Existing homeowner credit: Must the new house cost more than the old house?
No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
July 21, 2009 1 Comment
How many times during our lives have we looked at someone else and asked the question, “I wish I had their talent?” Was it when you looked at the boy on your team who hit the game-winning home run? Perhaps it was the time you gazed in amazement at the pig-tailed girl with freckles who could tickle the ivory on the piano like no other fifth grader. I think at some point in our lives, we all have had these moments of awe and envy.
I think too many times we look at the other person’s accomplishments and we chalk it up to God-given talent. Sure, some people are born with certain attributes that belie their age or physical stature, but apparently, it’s what you do with those talents that, in the end, gets a person across the finish line faster or better than their peers.
In a recent article that appeared in REALTOR® magazine, Geoff Colvin the senior editor of Fortune magazine, granted an interview where he discussed the findings in his latest book, “Talent is Overrated.” The article appears in its entirety below:
May 23, 2009 Leave a Comment
While a REALTORS® role may have changed, it doesn’t mean our importance as a trusted advisor has waned. In fact, our function today is more valuable than ever.
I read an article on REALTOR.org by Steve Harney that drives this point home. Steve specializes in negotiation and leadership training and has been in the industry for more than twenty years, first in sales and then as broker-owner of a 500-associate real estate company. He explains that the REALTOR® of today needs to be able to take all that information that is readily available to the consumer and interpret it for them. Here are four questions that Steve lists in his article that today’s real estate practitioner needs to be able to address. Notice that none of them has anything to do with providing a printout or a body of statistics but rather furnishes a valuable interpretation and opinion of why things are the way they are today.
January 5, 2009 Leave a Comment
Image courtesy of Flickr
A large portion of my business is selling condominiums and I often get asked by people what are the differences between this type of housing and single family homes. I put together the following FAQ’s to address the ones that I get most often. Hope it helps.
What exactly is a condominium?
The word “condominium” describes a specific form of ownership where an owner holds title to their individual unit, plus a fractional interest in the common areas and elements of the neighborhood. When you purchase in a condominium, you typically own your unit from the drywall inwards. Because the common areas and elements are jointly owned by all condominium owners, you pay for the upkeep of your share of these elements by way of monthly maintenance fees. Virtually any type of real estate (i.e. single family homes, townhouses, space within a high-rise) can be part of a condominium.
What are common areas and elements?
Common areas within the condominium are those areas that all residents have access to (i.e. land, common hallways, walking trails, water features, etc.). Common elements are those items within the condominium that are owned by all condominium homeowners (i.e. pools, clubhouses, tennis courts, etc.). When you own a unit in a condominium, you own a prorated share of all common area and elements. As an example, if you are one of fifty homeowners in a condominium neighborhood, you own 1/50th of the common area and elements.
What is a Homeowner’s Association and what is its function?
Each buyer who purchases a unit within the condominium is automatically a member of the Home Owner’s Association (HOA) and is entitled to one vote on issues that affect the condominium. A small group of the HOA is selected or elected by the members to sit on a board and oversee and manage the day to day operations of the condominium and enforce the covenants, conditions and restrictions. In the beginning of a project, the developer typically oversees the daily operations of the condominium but as more units are transferred to owners, the developer cedes control to members of the HOA.
What are condominium by-laws?
By-laws are written rules that govern the conduct of the condominium and the HOA. Condominium by-laws generally provide for meetings, elections of a board of directors and officers, filling vacancies, notices, types and duties of officers, committees, assessments and other routine conduct.
What are Homeowner’s Association dues and how is the amount determined?
HOA dues are used to pay for the upkeep of the common area and elements within the condominium. Dues may also be used for specific services that benefit owners such as liability insurance, snow removal, trash hauling and utilities. Each condominium development is different so it is very important to read the HOA documents closely so that you understand what is covered and what will be the responsibility of the individual unit owner. The fees are initially set by the developer of the project based upon projected costs. Adjustments to the fees are usually governed by the HOA documents.
What are reserves?
Reserves are funds set aside from HOA dues that will be used for future capital expenditures. Examples of capital expenditures are roof replacement, repaving streets (if privately maintained) or repairing sidewalks. Proper reserve planning enables an HOA to adequately maintain and replace assets in the future without the need for special assessments.
What is a Public Offering Statement?
A public offering statement is a set of documents that describe the condominium and its financial situation. These documents usually include the condominium’s declaration, by-laws and restrictive covenants as well as a balance sheet, projected budget and disclosure of any special fees that the Buyer may owe at closing. In the state of Pennsylvania, the delivery of the public offering statement must be made no later than the date the Buyer executes an agreement. The buyer has the right to cancel the agreement within fifteen days after receiving the documents.
What type of insurance do I need to cover my condominium?
Condominium developments secure master insurance policies to cover the common area and elements and a general liability policy which will cover the HOA if someone gets hurt or is injured while on site. The master policy premium is paid for from the HOA dues. The condominium owner will need to cover their personal belongings and maybe some of the interior structure of the condominium such as walls, cabinetry and plumbing fixtures. A review of the condominium documents will outline what is covered by the master insurance policy and what type of insurance should be obtained by the individual condominium owner. Your insurance agent should contact the holder of the master insurance policy to review coverage and make sure that you are adequately covered.
Can I improve or renovate my condominium without HOA permission?
It depends on what you want to improve or renovate. In most cases, you can improve or renovate the interior of your condominium without obtaining permission from the HOA; however, you should check with your local municipality to see if a building permit will be required to make the type of improvement that you are contemplating. The exterior of your condominium is a different story. Because you own from the drywall inward, anything that you want to do to the exterior must be approved by the HOA or its architectural review board. Refer to a condominium’s documents for further clarification.
If you still have questions or would like more info, just ask.
