Patrick Duffy's Real Estate Blog

Short Sale Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale

Over the next several days, this blog will feature a seven part series of short sale myths.

A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.  And so we begin.

Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.

The qualifications for a short sale include:

1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Distressed Property Institute, LLC. (2009). Short Sale Myths. Retrieved on 09/15/09, from http://www.cdpe.com/short-sale-myths.html

Adding Resale Value: Woodbridge, VA Homes and Landscapes

If you’ve ever bought or sold a home, you’ve probably heard the term “curb appeal” more times than you care to count from your real estate agent. Well, it’s time to hear it again, but maybe in a way you hadn’t considered.

With curb appeal, you might think of cutting your lawn, trimming bushes and getting rid of weeds.  Have you considered that creating a beautiful landscape for your home can add resale value?  Here are some tips on how to do just that:

Planting Frenzy
A beautiful landscape adds increasing value over time. That doesn’t mean you go on a planting frenzy, however. As a landscaping do-it-yourselfer, you don’t want buy a whole bunch of plants and throw them in the ground. You need to purchase the type of plants that will give your home the best resale value.  The types of plants that add more resale value to Woodbridge homes are trees and long-living flowering shrubs. Others, such as perennials, add less resale value, and still others, like vegetable gardens that need to be replaced yearly, add the least amount of value to a home.

Steps to Take
By following these steps in order, you have a much better chance of getting the best resale value out of your landscaping work:

1. Talk to the experts
Local nurseries, gardeners and professional landscapers can help you with what to plant, how to plant and where to find them.

2. Check grading and drainage
Bad drainage can ruin a lot of landscaping work, as can a poorly graded lawn. Pay attention during a heavy rain and make sure there is no erosion in your planned area, and no standing water. Both conditions can make a mess of landscaping.

3. Remove local plant pests
Local plant pests include such things as eucalyptus, scotch broom, pampas grass and certain types of ivy. These plants can quickly overgrow your garden, lowering your property value. If you have any plant pests, check online or with professionals to find out how to remove them.

4. Design
As any good landscaper knows, always start out by drawing out a landscape design on graph paper. Pay attention to the spacing needed for each plant, as well as such things as when the flowers will bloom and what the colors will look like together.

5. Prepare the soil
Not every yard has soil that’s perfect for planting. Make sure you have a good soil mix and make sure the plants you use match the PH of the soil.

6. Start planting!
Woodbridge homes with beautiful landscapes have a much better chance of selling, and selling well. Turn your thumb green and get to work on your home’s curb appeal.

If you’re thinking of selling your home, with or without a beautiful landscape, I can help.  Call me at 703-403-0536 or email me at patrick@usrlty.com for more information.

4 Things That Can Stop You from Closing on a New Woodbridge Home for Sale

Purchasing a Woodbridge home for sale, especially as a first-time buyer, is incredibly exciting. However, just because your offer is accepted doesn’t mean the deal is done. Lots of things can still cause the deal to fall through. Here are just a few things that might slow or stop your purchase:

1. Termites – Most lenders will insist on having a pest inspection to make sure termites or carpenter ants haven’t seriously damaged the home. Even if your particular lender doesn’t require an inspection, it’s best that you get one done anyway. If the pest inspection shows there is a severe problem, you can either ask the seller to pay to have the problem fixed or walk away if your purchase agreement allows it. At less than $100, a pest inspection is definitely worth the cost.

2. Bad Title – During the escrow process, have a title search done by a title company and purchase title insurance. The search makes sure that there isn’t a lien or claim against the property, while the title insurance guarantees that there aren’t any issues with the title. If there are issues, they have to be taken care of before you can receive the keys to the Woodbridge home for sale.

3. House Defects – Make sure that your purchase offer has a home inspection contingency. If the inspection reveals big issues, you can back out without any penalties. Otherwise, you might lose your earnest money. If you don’t want to back out, you’ll have to negotiate the cost of the repairs with the seller. This can delay closing.

4. Uninsurable Home – Sometimes previous homeowners will have made a major insurance claim, which shows up on insurance records. In this case, insurance companies may claim the house to be uninsurable, which means you won’t be able to get a loan for the home.

Before looking at a Woodbridge home for sale, make sure you’re acquainted with the closing and escrow processes, and be prepared for any problems that may arise. The more equipped you are for any eventuality, the better your chances of moving into the home you want.

If you’re in the market to buy a home, let me help you negotiate a contract that protects you from potential problems. Call me at 703-403-0536 or email me at patrick@usrlty.com for more information.

Links:

Pest inspection:  Link to a page on your website about this or to your preferred pest inspection company.  Or, link to http://www.pestinspection.net/

Title search:  Link to a page on your website about this or to your preferred title company.  Or, link to http://www.titlesearch.com/

Home inspection: Link to a page on your website about this or to your preferred home inspection company.  Or, link to http://www.ashi.org/