Saturday, February 11, 2012

Real Estate Tips from Bob Rich

Tip #1 - Defraying College Costs


If your child will be going to an out-of-town college, there is an expense other than tuition to be considered --- living cost. Many students have to rent apartments or rooms in town. That can be as much, if not more, than tuition. Here is an approach to consider.

You could kill two birds with on stone by buying a single family home or condominium for your son or daughter to use as a residence while they are away at college. Your student offspring could sublet extra bedrooms or unit to other responsible students or university personnel. This is one way to help defray all or part of the monthly carrying costs. After four years, the property should have increased by at least 25% and could then be sold at its appreciated value, returning all or part of the tuition costs.

If subletting is out and your child paid you the fair market rent, you would still entitled to all the investment tax deductions including depreciation, taxes, maintenance, insurance, etc.


Tip #2 - Will Liens or Easements Prevent Sale?

An encumbrance is any claim or charge attached to and binding upon real property. It may lessen the property’s value or impair its use, but it doesn’t have to mean that the title cannot be transferred. Liens, easements, licenses or encroachments are among the most common encumbrances.

A lien is a claim upon the property that provides security for repayment of a debt. Liens can be voluntary or involuntary. A mortgage lien would be voluntary. The owner agrees to use the property as collateral for a loan. A tax lien arising when a court attaches a property for non-payment of taxes, is obviously an involuntary lien.

Encumbrances that are monetary, such as liens, are usually paid and released at the closing. Physical encumbrances such as easements (like a power company’s right to cross a property to service electrical lines) are usually transferred with the title.


Tip #3 - Don't be Swayed by One Feature

Would it make sense to marry a lady because you like the shape of her nose --- but only her nose? If you did, chances are you would end up with a pretty nose and a lot of unhappiness.

Yet, this is one of the common mistakes a house hunter can make. All too often, a family will fall in love with an eye-catching feature, such as a rock garden, a chandelier, a built-in radar oven or a fancy fireplace and end up buying the wrong house. This mistake happens frequently and in all price ranges. You have to resist the temptation of paying too much attention to a frill and forgetting the importance of the overall house, location and price.

Yielding to superficial attractions like these can result in your family winding up with a thoroughly unsuitable house. These same, alluring features can usually be added to another house at a relatively small cost, considering the overall purchase price. Buy the whole house --- not one fancy frill.



Contact The Rich Company...

We will answer your real estate questions.

800-849-2456

Wednesday, December 28, 2011

River Forest Manor & Marina For Sale - Belhaven, NC






Located in eastern NC, Belhaven is a small town with a lot of personality on the Pungo River and the ICW. River Forest is a unique property (Yachting Inn) that was built in the early 1900’s by John A. Wilkinson; this Victorian mansion was bought by Axson Smith in 1947. Mr. Wilkinson hired Italian Craftsmen to come in and finish this amazing home; ornate ceilings, hand carved oak columns and mantles, crystal chandeliers and imported mahogany moldings displayed throughout the home.


Mr. Smith turned this grand home into an Inn, restaurant and marina after his purchase. River Forest has 10 rooms for rent; 6 rooms in the main dwelling, 3 rooms in a detached dwelling and 1 room above the dock house. Each bedroom has a private bath and the entire home is decorated with antique furniture that will convey with the property.

A Piece of History
 
Contact The Rich Company in Washington, North Carolina for more information.

Monday, December 26, 2011

Saturday, November 12, 2011

Monday, October 24, 2011

Waterfront at Blounts Creek, North Carolina

Real Estate Tips from Bob Rich-New or Existing Homes?

Considering selling your older home but are worried about competition from new homes, here’s something to think about.




There are tradeoffs in both directions. Older homes usually offer more living space for the dollar and are usually built on larger lots. Because developable land was more plentiful in earlier years, builders had a greater choice of where to build. Therefore, the location of a resale home ,ay be more desirable. Also, there is no guess work in action. Landscaping has matured, neighborhoods have formed and a buyer doesn’t have to be concerned about how the area will develop. It already has.

On the other hand, new homes may be more energy-efficient and require less repair and maintenance and have newer appliances.

How does your older home stack up against new offerings? Your best bet would be to have our office provide you with a current estimate of its market value.

Real Estate Tips from Bob Rich-DO OFFERS HAVE PRECEDENCE?

Good news! A written offer has come in on your property. Because offers must be presented immediately, you might even be notified while out of town. This is a good reason to keep your agent apprised of your whereabouts.

Most homeowners react by immediately asking how much the buyers are prepared to pay. However, if there are several minor provisions or a major one included in the offer, don’t be put off if the agent would prefer to set up a time and place to discuss the offer with you personally and explain the detail and financial elements. What may sound extremely good or bad over the phone may look a lot different when explained on paper.

If several offers come in, it’s best to consider all at the same time. The first one signed by the buyer does not have any precedence. If you have not acted on any offer, you are free to consider all of them and respond to whichever one you choose.

Real Estate Tips from Bob Rich-Comparables Count

When you decide to sell your home, nothing, but nothing, is more important that the sales price you put on it. If you select the right agent, he or she will help you come up with the best marketing price. This is not done by looking into a crystal ball. The most important factor to consider is the price of comparable sales in your immediate area.


These are sales which have already been completed of homes as nearly like yours as possible.

The homes selected for comparison should be geographically near. No one factor determines value more surely than location. The sales should also be recent. Five-year-old sales have almost no meaning in today’s volatile financial market. Also, the homes should be similar in style, size, and condition as your property.

Don’t pay much attention to neighborhood scuttlebutt about selling prices. Sellers often exaggerate the amount received, and buyers often minimize the amount paid.

Monday, July 18, 2011

Real Estate Tips from Bob Rich-Shopping for Dollars

Wouldn’t it be nice if home buyers could dip into a shoe box full of money and count out the purchase price in cash. Unfortunately, that dream has taken the route of other fairy tales. Today, 99% of all real estate purchases require mortgage.

When you look for mortgage money, there are several questions to ask besides, “what is the interest rate?” There’s a lot more to financing that interest. Get a complete estimate of all closing costs involved with your loan. Find out how long the interest rate will remain the same and when the escalator provision will kick in. Is there a limit on the rate of increase. Determine if there is a prepayment penalty. If there is, what are the provisions on the length of time and amount?. If you are using creative financing, make sure you know about any balloon payments that may be required in the future. Have your lender explain all provisions in advance to prevent any surprises later.

Real Estate Tips from Bob Rich-Neighborhood Important Factor

Before you buy a house take a close look at the neighborhood. No matter how attractive the house may be, the neighborhood location is a primary importance from an investment point of view.
Look at the surrounding houses to see if they are well maintained. If there are large tracts of vacant land nearby, ask your Realtor to check with the local planning commission to find out what their future use may be. If you’re buying a house in an attractive residential neighborhood, any commercial development may have an impact on property values.
If you have children of school age, your Realtor can also help by providing information about the school system. Local Realtors are acutely aware of all local conditions that will affect homeowners in the market area. This is just one of the many professional services your Realtor can provide.

Real Estate Tips from Bob Rich-Listing Your Property

There are three common ways to list your property for sale:
OPEN LISTING: The seller agrees to pay a commission if the agent finds a buyer who will meet the terms. The seller can also sell his own home or can have more than one agent sell it. Since the agent can lose the listing at the whim of the seller, don’t expect as much effort on the part of the agent.
EXCLUSIVE LISTING: The property will be sold through a specific office.
Knowing that a full commission will be paid (or half a commission if the sale is made in cooperation with another office) you can be sure of a concerted effort.
MULTIPLE LISTING: You contract with one office which agrees to distribute the listing to all the offices that belong to the local multiple listing service. Even though many office will work on your property, you pay only one commission. Multiple listing is a form of exclusive listing which assures the widest exposure of your property.

Tuesday, June 28, 2011

PARADE OF PROPERTIES

Wednesday, May 18, 2011

Historic Charm in Washington, North Carolina

Real Estate Tips from Bob Rich-House-Key and Lockbox

How can your home, which is listed for sale, be shown when you are not home (which is probably the best time to show it)? The answer is to leave your key with the listing broker. It would only be used when you are not at home or on your special instructions. The lister will notify other brokers that the key is available and keep careful track of who borrows it. Otherwise, your home is effectively off the market for those periods.

In some areas, it is common to use lock boxes for properties whose owners are often absent. The lock box is a gadget attached to your door with your key inside. It can be opened by a special key carried by cooperating brokers and then it is a simple matter to show your house when you are not at home. While the lock box system works well, many prefer to limit its use to vacant houses. A lock box on a door has sold many a home because of the ease and the spontaneity it adds to house hunting.

Real Estate Tips from Bob Rich-Mortgage, Deed & Closing

OK, Mr. Buyer, it’s time to close the house purchase. There will be two very important documents given to you --- the mortgage and the deed. As the buyer, you will be signing two papers for the mortgage. One is the bond (or note), which is a personal promise to pay back the debt. The other is the mortgage itself, which gives the lender a claim against your house if you do not pay back as agreed. Then the lender will give you a check (probably the largest you’ll ever see). You get to hold it
just long enough to endorse it and turn it over to the seller.

Actual transfer of the property takes place when the seller signs the deed and hands it over to the buyer. After the closing, someone will have the deed copied into the public records. It will probably be sent to you later. If no one is available to record the deed, talk to the county clerk and do it yourself --- immediately.

Recording the deed promptly is of utmost importance.

Real Estate Tips from Bob Rich-Never Too Old

During the next ten years, senior citizens will account for more that 20% of our total national population. Not only are people living longer, they are living “younger” and healthier. That leads to the purchase of homes for older citizens with children. Will there be any problems in your getting a mortgage because of age?

Not if you pass the credit requirements of the bank. The law is on your side. The Fair Housing Act prohibits discrimination on the basis of race, color, creed, or national origin. The Equal Credit Opportunity Act prohibits lenders from any type of bias in the areas of AGE, marital status, sex, income from public assistance programs. You, as a mortgage borrower, are well covered.

Your mortgage must be evaluated on the basis of the property desired and your creditworthiness --- not your age!

Monday, April 25, 2011

Real Estate Tips from Bob Rich-Why Title Search Again?

When you buy real estate, you may wonder why a title has to be searched when it was probably done many times before, especially if it’s an older home. If you are taking out a mortgage, the question is academic. The lender will require a title search to protect its investment. The search will attempt to answer the following question:


  1. Is the seller the legal owner of the property? 
  2. Is the legal description of the property accurate?
  3. Are there any municipal or contractor liens?
  4. Does anyone else claim an ownership interest?
  5. Are there any easements which could affect property?

The answers to these questions may not always be black and white. To cover gaps, many buyers find it comforting to protect their purchase with title insurance. Title insurance offers protection against court costs and judgments resulting from title defects.

Real Estate Tips from Bob Rich-Why Sell Through An Expert?

Human nature is strange. It is surprising to see some people trying to sell their home, probably their largest life time investment, without the help of an expert --- a Realtor.


For the average homeowner, selling his home is one job that he should never tackle on this own. One mistake could turn out to be extremely costly. For starters, you must have considerable knowledge regarding value. How much do you want for your house? How much do you think its worth? How much will a buyer pay? Three different questions with different answers. If you overprice it, your for sale sign could stay planted in your yard like an ancient oak tree. On the other hand, you might under price and give it away.

Today, the seller must be knowledgeable in the intricacies of financing. If you aren’t familiar with these --- don’t try to sell on your own. Employ the professional experience of a Realtor. It must make sense because some 90% of home are sold that way.

Real Estate Tips from Bob Rich-When to List Your House

The most favorable time to list a house for sale is as soon as you have decided to sell. Six months before the expected move is almost a minimum for best results. Otherwise, you might end up paying on two houses at once for a few months after you move. Even if satisfactory buyers for your home appear promptly, the complicated paperwork involved in mortgage applications, and the dovetailing of your needs and the buyer’s needs, can result in problems if you are pressed for time. If your house is not sold by the time you must leave, keep in mind that a vacant house almost never shows as well as it did with your furniture in place.

Houses have been known to be transferred in a few weeks but this is the exception. It’s best to allow 3 to 6 months where possible. You are most likely to receive the highest price if you draw from the largest pool of possible buyers. An unhurried sale is the best way to accomplish this.

Thursday, March 31, 2011

Thursday, March 3, 2011

Saturday, February 19, 2011