Featured Columnists
Q & A With Barbara Corcoran
A - First find out how active the rental market in Charlotte is and how much rent you could get for your home. Although the sale prices in Charlotte are falling, I think Charlotte's rent prices are going up. But check in with a smart local Realtor for accurate information, and if you can get enough rent to clear your mortgage and taxes, don't sell. Then you won't be selling at a low point in the market and you'll still have your great house to move into later. Once your tenant is in, you'll feel comfortable moving forward and buying a new place in Queens. You and your husband didn't make a mistake when you bought your house in Charlotte. Half the charm of buying a retirement home early is dreaming about it until you're ready to move in.
Q2 - I live in Queens and, after reading your Q&A about the college student who wanted to buy a foreclosed home, I became very interested in buying my own. I see a lot of infomercials and commercials that advertise foreclosed homes, but I don't want to get ripped off or sucked into some scam. Can you tell me the best websites for finding legitimate foreclosed homes in the NYC area?
A - There are lots of websites that provide accurate information on foreclosed properties. Most of them offer seven-day free trials before signing up for their monthly membership, and then they charge around $50/month. Two of the best ones are Foreclosures.com and RealtyTrac.com. You can also try HUD.gov, and it's free. But the registration process to get their free information is both lengthy and annoying.
Q3 - I signed a contract and made a down payment on a house, but the bank that gave me a commitment letter ended up denying my loan because of changes in their policy. Now the seller's attorney is refusing to return my down payment. What can I do?
A - According to Alfred M. Fazio, of Capuder Fazio Giacoia LLP, the first issue is whether or not your contract is contingent on your ability to obtain financing. If you waived the contingency, you'll have to forfeit your deposit. But if you signed a contract which allowed for financing, you're probably entitled to your money back, but you should have a good real estate attorney review the exact wording to determine if that's really so.
Q4 - I have not owned a home in 12 years. My credit rating is excellent but I have very little money for a down payment. Could I qualify for a first-time home buyer loan, even though technically I owned a home many years ago?
A - First you'll have to check the programs offered within your own state because the rules vary from state to state. But most FHA mortgages require only low down payments, like 3.5%, and they have not requirement that it be your first home.
Q5 - In today's market, what would be good opening offer for a one-bedroom Manhattan apartment in a doorman building? It's currently listed at $750K.
A -What you really need to know is what the apartment is actually worth before you make an offer. To do that, you'll need to research recent sales in the neighborhood. But only include those closings that have taken place over the last two months because closings before that will have no bearing on today's values. Once you know about what its worth, put in a bid 15-20% below its value and see what they counter with. Make sure you put your offer in writing because homeowners taken written offers more seriously, and also comment on how much you love their home. Most everyone wants to sell their home to someone who loves it.
Q6 - I am just starting out in the real estate brokerage business and I'm wondering if you could recommend any professional organizations that might be useful in helping me to grow my business.
A - The key to the sales business is developing contacts that can be turned into real buyers and sellers. The most successful real estate brokers are out most nights of the week meeting new people and making them their friends. But nobody likes to be hustled, so you're better off joining clubs, charities and activities you're genuinely interested in. You'll make friends more easily because of your common interest, and you'll also enjoy yourself. If you can start a friendship with five new people every week, you'll soon be rolling in the dough while most other brokers are singing the blues.
Q7 - We live in San Luis Obispo, California, a beautiful small community on the Central Coast. We listed our house, surrounded by vineyards, with a local Realtor at the end of August and terminated our agreement three months later. We're most anxious to sell! Would it be best to list with a national company with offices throughout the U.S. and Canada? Or should we stay with the agent we've been using who is most anxious to meet with us again? We know her personally, but also know an agent from a national company.
A -The national bologna sales pitch is exactly that, bologna. So don't pick the company, pick the agent. Before you sign up with anyone, check them out online. Survey all the houses in the area similar to your own and make a note of which real estate agents represent the most properties. Then ask the top three agents on your list to prepare a marketing plan for the sale of your house. Each of the top agents is bound to present a good plan, but hire the one you like best. In today's slow-moving market, you'll be spending a lot of time with them.
