Your child has just been accepted into college. When you look at the room and board fees, you nearly go into shock! If the school is located in a large metropolitan area, there is an alternative to the college dormitory.
Many parents are investing in condominiums or single-family homes near the college campus.

They rent the house to their children and one or more roommates.

When their son or daughter graduates, they sell the property.

The anticipated property’s appreciation may go a long way toward helping to finance their college costs.

Many prospective students and parents sit down with a local Realtor after being accepted into college.

Anne Scott’s Team can provide you with information about neighborhoods near the school, properties that are for sale, and the amount of rent you can expect to receive from the property - just call us at 203.438.2284.

The structural inspector has just handed you a twentyfive page report! Your “perfect” house isn’t really perfect after all.

The “Old World” charm extends to the heating and plumbing systems and the roof leaks when it rains. What should you do–back out of the deal or try to re-negotiate your purchase agreement with the sellers?

Your strategy should depend on several things.

Did you know about the problems when you made your offer?

Did you make an offer at the top of the market?

Did the sellers build some room into the asking price with the understanding that their house was a handyman’s dream?

Most structural inspections turn up at least a few items that need attention, but they occasionally reveal major defects.

The inspection clause in your contract has a time limit. If you really like the house, you should consider re-negotiating with the sellers before backing out of the agreement. The next “perfect” house could have the same, or similar, issues.

The secret behind selling one home and buying another is coordination - knowing the sequence of what comes first, second… and knowing your options should things not materialized as planned.  Consider some techniques which can help you juggle to your advantage:

1. Create a Game Plan Based on Facts

How much can you afford, what will the market bear, cash flow - best to work with the pros early in creating a solid plan of attack.

2.  Sell First

This will help you avoid purchase deadline pressures and allows you to buy with no strings attached; a contingency clause in the sales contract could allow for time to find your next home; renting your home in a down market and selling it later is also worth considering; if you do buy before selling, a bridge or swing loan against equity in old house may cover your down payment and closing costs in new property.

3.  Coordinate Closings

With several entities involved in real estate transactions (e.g., appraisers, loan officers, underwriters, attorneys, closing officers, title companies, pest and home inspectors) the risks of miscommunication is exponential with multiple transactions - furthermore, when several families are involved, a hitch with one affects the others, thus the fewer people involved, the better - e.g., with a local to local move, try to use same professionals.

4.  Consider Short Term Solutions

Interim/temporary moves may help you negotiate (e.g., faster close for better price) - consider moving everything but essentials into transit storage so as to avoid hassles/expense of moving twice - alternatively, you might be able rent your home back to yourself from new buyer.

Just Not Right
Too big or too small for future needs; a fixer-upper when you’re not handy; too far from work; too close to traffic; wrong price range; needing to many repairs - best to avoid this trap by defining present and future needs, remember to consider total costs (e.g., maintenance, utilities).

Market Bidding Blindness
Ask for a comparative market analysis to avoid overpaying or underbidding on your next property.

Title Troubles
A title search may reveal encumbrances (e.g., easements, leases, undisclosed co-owners, tax liens) - avoid this by conducting the title search early and buying title insurance.

Surprising Surveys
Different lot boundaries; over the line neighbor’s fence; violated zoning regulations - avoid this trap by asking to see the seller’s survey made back when the seller bought the house - go over any additions or variations with your real estate agent. Also, have your new survey done early.

Undiscovered Defects
During final walk through, some overlooked defects may become apparent that previously went unnoticed. Besides doing a careful inspection of the house, an independent house inspector can report: items needing attention; costs to fix them; repercussions if left as is. Best to insure that contract settlements are contingent upon inspector reports.

Prepaid Surprises
Some items get prorated at settlement (e.g., real estate taxes, condo/homeowner association dues) while others have to be paid several months/periods in advance (e.g., hazard insurance, taxes) - watch for inaccuracies by requesting figures in advance and check the charges - remember if the settlement date changes, so do some of the prepaid fees.

Seller Goofs
Repairs not made; items that fail to convey; and/or other contractual hang-ups can delay settlement - to avoid these traps, take the list of agreed-upon items and walk through and check them off - also, be prepared to accept a dollar amount for an escrow fund for items that fall through the cracks.

Hidden Junk
Not all closing charges are stated in the truth-in-lending form (e.g., underwriting fee; loan disbursement charge; markup fees on court documentation) - ask lenders during application exactly what closing fees are included on the federal settlement forms and/or applicable at closing - some of these fees can be negotiated down or waive completely - don’t be afraid to speak out.

Rushing to Close
Insist on seeing the settlement sheets, the day before - this way you’ll avoid last minute problems - sometimes an eleventh hour snag endangers the settlement date, a locked-in interest rate and/or the entire sale - don’t get trapped by a too tight a closing - if possible, request a sixty day interest rate lock and give yourself a similar amount of time to close the sale.

Walking into an agency is just pot luck if you hit it right. Many of the more experienced agents take very little office time so you may be getting someone right out of real estate classes 101.

Make sure that you have a good fit in order not to waste time.

A referral from someone you know and trust is always a good idea. Someone who works in relocation understands the buyers needs and is careful in understanding and guiding them through this process.

Always try to be with a full time agent who knows all the houses and if he or she listens properly, will be able to take you “right-to-it.”

There is no need to see 20 homes - only a few will qualify if your agent is paying attention.