By Tammy J. Pelletier, GRI
Prudential Gammons Realty  

If you are buying a home, one of the first things your real estate professional will do before taking you on home tours is interview you to determine the type of house you want such as a 2,000-square-foot four-bedroom, split level with a formal dining room and two-car garage. But just as important is the type of community you want to live in. Knowing what your requirements are will help narrow your home search and save time.

To expedite the house-hunting process, start by making a list of the dream home factors that are most important to you and your family’s lifestyle. Consider style, location, proximity to work and schools, yard size, children in the community and, of course, price.

Price and location generally are the key factors you’ll use to identify the communities that best suit you. If you are moving within the same city, you may want to start your community search by getting in your car and exploring. There are also resources on the Internet that let you compare communities.

You’ll want to ask yourself critical questions, such as: Do you dream of something quaint and charming that can only be found in an older area? Or, do you prefer everything new? Are you willing to sacrifice size and space for architectural detailing? What about drive and commute time to the office and schools? Will you forgo the number of bedrooms and a big yard for proximity to a lake or other recreational areas?

Whether you have children or not, buying a home in a community with good schools is important. It not only adds value to your property, but also is an attractive feature when and if you decide to sell. There are plenty of resources available to get information about schools within the communities you are considering. Various Internet sites offer school reports and profiles. They provide statistical data such as graduation rates, college-bound percentages, and standardized test scores. You can also learn about special programs the schools offer. In addition to these reports, many schools have their own Web sites you can peruse. And of course you can always talk to people in the area or take a tour of the school.

Additional factors you’ll want to consider during your community search are crime, recreational activities, proximity to shopping and restaurants, and other specific family needs.

Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.

There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

After weeks of searching, hundreds of MLS listing sheets, countless Sundays spent at open houses and dozens of home viewings, you finally find the one home you fall in love with.   it’s that home that you said

“I’ll know it when I see it. I’ll feel it!”

Finally, you’ve found the one.  The house that has everything, i.e., the 3 bedrooms, 2 1/2 baths, family room and fenced in yard.  Oh don’t forget, the 2 car garage that you didn’t want to live without.  Everyone in the family knows this this the home for you.  Even the Realtor sees the different glaze in your eyes.  You have found the house for you.

As you return to your car, trying to hide your excitement from the Listing Agent, you utter those simple words

“How long do I wait before I make an offer?”

Hundreds questions and thoughts are swirling in your mind

“Should make my offer now?”

“Will look desperate if I make my offer now and will the sellers hold out for more money if I do make an offer immediately?”

“Should I mke my offer tomorrow . . . or two days from now?

In my 20 years of selling homes, I have encounted all these questions and have experienced just about ever senario in the offer process.

• First of all, you should be working with a qualified Buyer’s Agent who represents YOU and not the seller.

• If you haven’t already seen the home again, immediately schedule a second viewing of the home.

• Your Buyer’s Agent should be preparing a CMA (Comparative Market Analysis) for you.  The Listing Agent has already prepared one for the Seller.  This is how they determined their selling price.  A smart Listing Agent wil be preparing another CMA for their Seller at this point.

• Your financing should already be in place.  Pre-approved is much better than pre-qualified.  You will need a letter of pre-approval/pre-qualification to accompany your offer.  This letter shows that you are serious.  Many Listing Agents have advised their Sellers not to take offers that are not accompanied by a pre-approval/pre-qualification letter.

The Advice

While well-meaning relatives and friends may inundate you with advice about your home buying experience, it’s most important, especially at this time, to seek the advice of your experienced Buyer’s agent.

When my buyers ask me when to place the offer.  I tell them not to wait.  Trying to guess what the Seller is going to do, or trying to make the seller think you are really not as interested as you really, never works.  Point is, you are making an offer . . . you are interested.

Make sure your Buyer’s agent immediately does the CMA which you will need to make your educated offer.  As soon as you have a price in mind, put it in writing and have your agent present it.  Many a deal has been lost trying to second guess the sellers. 

Remember, there is nothing worse than saying

“let’s wait a couple of days to make the offer”

then driving mom and dad by the house of your dreams and suddenly seeing a PENDING sign atop the Realtor’s sign.

Tammy Pelletier can be reached at (401) 263-6913 Prudential Gammons Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Wishing everyone a very happy Independence Day.  Remember to take a moment, during our festivities today, to think of those who cannot be with their families for the picnics and trips to the beach, because they are guarding our freedom.  Thanks to all our fine men and women in the service of our country.

By Tammy J. Pelletier, GRI
Prudential Gammons Realty

If you’re ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 7% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:

• One average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.

• The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.

• Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!.

Tammy Pelletier can be reached at (401) 263-6913 Prudential Gammons Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.

Tammy Pelletier can be reached at (401) 263-6913 Prudential Gammons Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer’s current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

 Utilities

The most obvious of additional housing expenses are utilities—gas, electricity and water. But don’t forget about telephone, trash collection, and cable or satellite bills.

Taxes

As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is (insert %) percent. That means for a home with a market value of $200,000, yearly taxes will run (insert dollar amount). To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year’s tax assessment. Your real estate professional can help you refine these figures.

Association Dues

Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance

You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.

Insurance

Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars.  And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades

Unless the home you purchase is picture perfect, you’ll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to “Remodeling Magazine’s” 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.

Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

Tammy Pelletier can be reached at (401) 263-6913 Prudential Gammons Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

In these times of economic uncertainty, anything can happen.  As of May, 31, 2008, Residential Properties has closed the doors of the Cranston office. 

After much thought, I have come to the conclusion that I cannot effectively service my buyers and sellers from an office that was not conveniently located to them.

It is with great sadness and with great pleasure, I am proud to announce that I am joining the team of Prudential Gammons Realty located at 870 Oaklawn Avenue, Cranston, Rhode Island.  Just down the street from my the closed Residential Office.

Please browse through the Prudential Gammons website at http://www.prudentialgammonsrealty.com.  I think you’ll find Prudential Gammons a perfect fit for all your real estate needs, just as I have.

Well if you’re the seller, you may want to join the growing number of sellers who are opting to do prelisting inspections.

I know, many sellers would say,

“It’s the responsibility of the buyer to have the inspections done.  I’m not doing that.”

While this is a true statement, the preinspection process could head off any potential after purchase and sales negotiations problems that may occur.

In Rhode Island, the buyer has 10 calendar days to perform any inspections they would like to have done after the signing of the purchase and sales agreement.  Many times, especially in older homes, the inspector will have a list it items that need to be fixed in the home.  Some may even be major structural issues.

In those crucial days following the inspection, can be grueling.  Suddenly, buyers are demanding structural issues be addressed immediately or demanding radon systems be installed.  Many times, buyers are asking for a reduction in the price of the home because the roof the seller honestly thought was only 10 years old is really 25 years old and is beginning to leak in the attic.  At this  point (after the purchase and sale has been signed), the pressure to keep the deal going can be overwhelming to everyone.  Sellers may feel more pressure to fix these items or give a reduction in the price.  Given more time, the seller would have more time to think about the options they have in getting the required work done.

With an FHA or VA loan, many items may come up in the appraisal that need to be fixed, like peeling paint or missing hand railings which may not come up in a normal inspection report.  These items MUST be fixed or the loan cannot close.  This leaves the seller scurrying around trying to find contractors and many times don’t get a chance to receive second opinions.

At the time of listing, I recommend my sellers to have a prelisting inspection by a licensed inspector.  This way, any major issues can be fixed before the buyers even make their offers.  Nothing makes your home stand out more in this market than having a rider on your for sale sign that says “This Home Has Been Inspected.”

For a list of Rhode Island Home Inspectors, just give me a call at 401-263-6913 (cell).