How Reliable is a Seller’s Disclosure?

A seller’s disclosure (or lack thereof) of problems with his home can bring up a slew of questions, as well as a large gray area when it comes to what the truth really is. In today’s real estate market it is clear that many sellers simply want to sell their homes and when they receive a contract all they want to do is see the closing come to fruition. The desire to close can make a seller conveniently forget about issues that exist with the home and a buyer owes it to himself to seek out the truth. What is the best way to find out what issues may exist with a home? Hire a home inspector, one with a solid reputation.

A home inspection can make or break a deal but it is extremely important for a home buyer to know what issues may exists with the home that they are under contract on. Important issues like mold, a leaky roof, the presence of radon, termites and the like, can pose an inordinate amount of problems and facing them head on and clearing up the problems will benefit everyone in the long run.

Most states have disclosure laws, whereby homeowners must disclose any issues that exist. However, finding out after closing that the seller did not disclose certain information ahead of time can lead to costly and lengthy legal battles. Do yourself a favor, if you are buying your home examine it carefully before sealing your deal.

Interesting article on disclosures from Financially Fit

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You may also visit my wesbite: http://www.caroledelacruzrealty.com/

or email me at: carole@caroledelacruzrealty.com

Did you know that U.S Homes are undervalued?

U.S. Homes Undervalued--According to a recent report from Capital Economics (a British research firm), U.S. homes are notably undervalued. The study evaluated the ratio between average home prices and the income earned by average homeowners. The ratio is now very low, indicating that homes in the U.S. are undervalued by nearly 20 percent. The same report finds that homes in Europe are over-valued by more than 20 percent -- and Australia's by 40 percent.

For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com/
or email me at: carole@caroledelacruzrealty.com

Buying an Affordable Home VS. Saving For Dream Home

Questions arise when people are considering leaping into real estate and one which arises is buying an affordable home versus saving up for a dream home. It can be a daunting process when shopping for a first home, realizing what you can afford as opposed to what you would like to afford. The questions ultimately arises whether it is a smart move to buy a home that you don’t want to live in forever.

Home ownership offers some benefits that are not available with renting. Two main benefits of homeownership are building equity and having the ability to deduct mortgage interest and property taxes from federal and state income taxes. It is possible to buy a “starter home” and move up in time. Rarely to people purchase a first home and stay in it for a lifetime.

Buying a first home allows a homeowner to build equity, with the ability to sell the first home for a greater value down the road. If you wait until you have saved enough money it is hard to say what the affordability will be. Will waiting make buying your dream home possible 2 years from now, 5 years from now, 15 years from now? In that time how much money in rent will you have spent.

There hasn’t been a better time to buy a home in a very long time, if ever. Home prices are most likely at bottom, mortgage rates have been hovering at historical lows and tax incentives make buying a home feasible for many. If it makes sense for you financially it could be an ideal time to buy a first home, paving the way for purchasing your dream home later

For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com
or email me at: carole@caroledelacruzrealty.com

Buying a New Home? How Much Money Should Be Put Down?

Buying a new home is a big step, and an expensive one at that. After qualifying for a loan, locating a home and going under contract there are many questions to be answered regarding financing your new home. One such question is how much money should be put down. If you can afford to put down more than 20% should you?
When purchasing a new home it can be beneficial to put down as little money as possible. Having cash left over in your bank account can mean extra money for home improvements. Less money down enables homeowners to maximize the tax benefits that come along with home ownership. Mortgage interest and property taxes are deductible from a person’s state and federal income taxes.

On the flip side, paying more up front can save quite a lot of money over time by reducing the initial debt and therefore saving on interest payments. Evaluating what makes more sense in a particular situation is a smart way to go. Either way you will save, money on taxes or money on interest. Having the extra money to ponder this dilemma is a good position to be in.


For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com/
or email me at: carole@caroledelacruzrealty.com

Thinking About Using Tax Credit Toward Buying Real Estate? Act Fast!

If you are thinking about using the extended and expanded home buyer tax credit to purchase a home this year you better act first. The tax credit can be used on homes purchased by July 1, 2010, but the homes must be under contract by April 30, 2010. What does this mean? You have a little more than a month to locate your new home. The tax credit is for two types of buyers, first time home buyers (home buyers who have not owned a home in the past 3 years) or home owners who have lived in their home for 5 of the past 8 years and want to purchase a new primary residence.

Important aspects of the tax credit include:

Homes must be closed by July 1, 2010, under contract by April 30, 2010.

Homes must have a value of $800,000 or less and must be the buyer’s primary residence.

There are income restrictions, $125,000 for singles, $225,000 for couples.

The credit is also affected by being single or married. Married couples who file together are entitled for up to $8,000 for a first home buyer, up to $6,500 for current homeowners. Single people are entitled for up to $4,000 for a first time home buyer and $3,250 for a current homeowner.

The credit will need to be repaid if you sell your home within a time period of 36 months.

Remember, time is running out!

Contact Carole De La Cruz today to start looking for your new home if you intend on using the tax credit.

For more information please contact me at 818.269.5550.

You may also visit my wesbite: http://www.caroledelacruzrealty.com

or email me at: carole@caroledelacruzrealty.com