Hidden Costs Home Buyers Should Look Out For

While shopping for a home to purchase you’ve likely done a lot of research. Part of this research usually includes learning about the costs associated with purchasing a home. The most frequently discussed costs are the downpayment and closing costs. For example, the appraisal and lender fees can actually be built into your loan – making them easy to handle. What about other costs? The ones you may not know about….

Hidden Costs of Home Ownership

If you’re transitioning from renting to owning, you may be unfamiliar with what to expect and how it may be different. Let’s go over some costs you may not have accounted for in your initial calculations:

Costs Discovered During An Inspection

We highly recommend hiring a professional Home Inspector before going into contract. A Home Inspector will check for bad electrical wiring, weak foundations, rotting wood, termite damage, and other potentially hidden problems. In the event that problems do arise, you’ll need to decide whether you want to move forward with the purchase. This is where your Realtor® can come in and possibly negotiate a new purchase price on your behalf and save you money on these costs.

Costs From Mistakes Sellers Make

What happens if there was a misunderstanding with the seller and they took the refrigerator with them when they moved out? Depending on the situation, you’ll need to replace that appliance which will be an unexpected expense.

Costs From Lifestyle Transition Shock

If you’re transitioning from renting to owning, you’re going to have to adjust to the change in utility costs. Previously, you likely were not responsible for the water bill or garbage pick up. Utilities in the home are typically higher than those a renter would handle. Your rental was likely already setup for cable…your new home may not be and this could have a cost associated with the setup.

Costs From Underestimating Renovations

When you fall in love with a home that needs some TLC, there will be costs associated with renovating. Unfortunately, many first-time home buyers try and estimate the costs on their own which can lead to major underestimates and uncomfortable surprise costs down the line. It is always a great idea to consult with your Realtor® for Professional Referral Partners who can provide you with FREE renovations estimates.

Planning Ahead

There is no such thing as being over-prepared for the purchase of your first, or even second home. As a team of creative real estate professionals here at Ian Alexander Realty Group we have prided ourselves on being able to save our clients thousands of dollars! This is all through properly educating them and putting our expertise to good use on their behalf.

Do you have questions about how to plan for the costs associated with purchasing a home?
Call us today at 347-707-3098.

Home Buying Tips for People Moving Out of the U.S.

There is no exact figure surrounding the American diaspora that lives outside of the country. However, estimates by the U.S. State Department suggest that around 8.7 million American citizens live in over 160 other countries. While a number of people who travel to foreign shores end up living on rent, there are also those who wish to live in homes they purchase. Incidentally, buying a home in a different country might or might not be as easy as buying one in the U.S.

Pay Attention to Government Regulations

Home buying regulations for foreigners tend to vary from one country to the next. For instance, while American citizens may purchase property in Mexico, they cannot own property within designated restricted zones. Thai law requires foreigners to purchase property in condominiums or apartments that have at least 51% local ownership. If you plan to buy a house in Australia, you will need to limit your search to new homes, because the law prohibits sale of established homes to foreigners. In India, you will have to qualify as a person resident in India to be able to purchase a home. Buying a home in the UK, Germany, or Spain gives Americans largely the same rights as local citizens.

Identify All Applicable Taxes

It pays to determine your tax residency status before you think about buying a home in a foreign
country. For example, if you buy a home in Australia as a foreigner, there is a very good chance that the Australian Taxation Office will treat you as a resident for taxation purpose. Property taxes are common in several countries, which homeowners need to keep paying for as long as they remain homeowners. Selling a home where the proceeds results in any kind of a profit might require that you pay capital gain tax.

Seek Professional Assistance

Buying a home in a foreign country can be tricky, given that various aspects require your attention. Using the services of a local attorney who specializes in real estate law can help you understand the legalities of the process. Besides, your attorney can also help verify the property’s title and look for existing liens that might be attached to the home. While hiring an attorney comes at a cost, their fees are usually open to negotiation. Turning to local real estate agents might provide to be beneficial, as some may have access to unique listings. However, while homebuyers in the U.S. do not need to pay real estate agent fees, this is not the case in all countries. For example, homebuyers in India end up paying one to two percent f the home’s
selling price as real estate agent fees, and in Germany it can vary from two percent to six percent.
Think about hiring a professional surveyor to inspect the home you plan to buy to avoid nasty surprises down the road.

Look at Financing Alternatives

Banks in several countries are legally allowed to provide home loans to foreign nationals. However, finding banks that cater to this segment is often a challenge. In addition, banks tend to follow more stringent eligibility criteria for foreigners when compared to locals. As a result, take time to find out which banks offer loans to foreigners, and compare their offerings well. Getting pre-approved gives you a good indication of how much you might be able to borrow. Depending on where you plan to relocate, you might need to pay more than 40% of the home’s selling price as down payment.

Save When Making International Payments

If you plan to make the down payment or pay any kind of fees while you are still in the U.S., think twice before using the services of a bank. This is because most banks tend to offer less-than-competitive exchange rates while charging exorbitant transfer fees. Specialist overseas money transfer companies, on the other hand, are typically more cost effective and also provide their customers with hedging tools. Some of the leading players in this field include WorldRemit, TransferWise, WorldFirst, and FC Exchange.

Conclusion

The first step in buying a home outside of the U.S. is to look at local regulations. Then, do not shy away from seeking professional assistance through an attorney and a real estate agent because they can help make the process considerably smoother.

Article Contributed by iCompareFX

How to handle long distance relocation like a boss

How to handle long distance relocation like a boss

If you are from out of state moving to a new state it can be quite intimidating. Many people feel stuck when it comes to taking that new career or job that you have always wanted. It turns out that it is not as hard as you are making it out to be. Just keep these tips in mind.

Do your homework.

The first thing you need to do when relocating you have to ask yourself the following questions 

What is your area of desire?

What is the crime rate in those areas?

How far is it from your new job?

How is the school district?

Question number 4 may seem pointless if you do not have a kid but it is a proven fact that homes closer to good school distracts sell at a higher price and faster.

You want to Google map the area you will be moving to, you want to know your commuting time to work. How far will you be from your Childs school? How far is the closest gym? Etc.

The most important piece of homework you do is finding the right agent who can help you understand the market and areas better. You want to make sure this agent is a local expert who has a good reputation for buyers relocating for work.

Create a Travel Budget.

Depending on how far you are traveling from budgets may very so what you need to do is see how many times you can travel comfortably back and forth. This is where having a great agent comes into play. Your agent can schedule 3-5 showings per day upon you visit. On average it takes no more than 8 showings to find the right fit.

The Law and The Anxiety.

Most people get nervous when it comes to dealing with the whole home buying process from a distance. In the age of connection and technology, it is easier than ever. With the right real estate team, there is literally nothing to worry about when it comes to going through this journey.

When you hire an agent make sure the agent has a team of local professionals. This team can work together on your behalf and help guide you that closing table with little to no stress. 

Good luck with your relocation out of state! We hope you take this advice and everything goes smoothly. If you have relocated before feel free to leave any additional tips in the comments below.

Queens Home Buyers: Four ways to compete with All Cash Buyers and Win

Queens Home Buyers: Four ways to compete with All Cash Buyers and Win

  As a Broker in the Queens market, I cannot tell you how many times I have won deals and lost deals to all cash offers. In a world where cash is King, how in the world can you beat the offer? 

Here are some tips and tricks that I have developed to help my clients stand against the all cash goliaths.

Pre-Order Your Appraisal: This may be difficult to do with larger banks but if you are working with a direct lender or broker you can have things lined up in advanced. If you can get the appraiser in and out within 24-48 hours half the battle is won. This is super important for co-ops being that this is usually one of the longest processes outside of the board interview.

Inspect Quickly: It is wise to do an inspection on a house before purchasing it. What I would recommend is have one on standby if you going to see a hot property that you know is on your radar. If you like it negotiate the deal on the spot they accepted it have your real estate team ready and working! Pre-ordered appraisal ready, pre-ordered inspection check…

Overpay: This is the best way to compete with an all cash buyer. Usually cash buyers want a little bit of a discount. So in order to change the sellers mind you might want to have your client come in with a higher offer. To show you are willing to give them more if they are willing to deal with a little longer of a closing.

Show Off Credentials: For co-ops you have to not only show that you can afford the property but that you are qualified to pass the board with flying colors. If you can plead your case better than an all cash buyer it is likely you will win the deal.

If David could win with a sling shot you can with a pre-commitment! Good Luck!

How To Pass a Co-op Board Interview

9 Tips To Help You Pass A Co-op Board Interview

Being invited to a board interview is a positive thing! A board interview is an opportunity for them to meet you and ask questions about the application you submitted with your Realtor®. Interview styles can vary from an informal get together at a board member's apartment to a formal interview with board members lined up panel style at a table and while you’re in the hot seat.

Sometimes even your Realtor® won’t know what type of interview you’ll be walking into, but we’ve laid out 9 things to remember that will set you up for success during your board interview.

1. Dress for Success and be early. Board interviews should be treated exactly like a traditional job interview. Attire and promptness matter.

2. Prepare for a lack of privacy. The board has a lot flexibility in terms of the types of questions they are allowed to ask you. Be prepared for anything and do not avoid answers to personal questions or come off as angered by the intrusion. This is just part of the process.

3. Know your application. You may likely be asked questions regarding the details of your application. It's important than you aren't stumped about the answers to those questions. You can bring a copy of your application to the interview if you do want to reference it. We recommend just making sure you remember the details you shared within your original application.

4. Couples should decide in advance who will answer what types of questions. Deciding this before hand will help you both seem very organized. One person can handle financial questions while the other can handle all other questions. Avoid discussing, or debating, the answers to questions in front of the board.

5. Unlike a job interview, DO NOT try to sell yourself. Let the board run the show and only answer questions asked. Boards rarely turn down applications for being too boring.

6. Never volunteer information. Especially avoid engaging in unsolicited conversations aside from basic cordial remarks and greetings.

7. Do not ask questions. Questions can often unintentionally convey negative information to the board. For example: "Do you have any plans to renovate the lobby?" is the kind of seemingly innocent questions likely to offend the board member who was in charge of the last lobby renovation. If you have any additional questions, you can direct them to your Realtor® or your Real Estate Attorney and they can help you get the answers.

8. A short interview is better than a long one. While there are no guarantees or specific rules, a short simple interview with a few questions and remarks is usually the best co-op board interview.

9. Do not expect an answer at the end of the interview. Usually the board will not give an answer until a day or two after the interview. Your real estate broker and your attorney will take the necessary steps to determine if you have been approved.

Have more questions about the process? Comment or email us at info@iarealtygroup.com