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| Buying Your New Home |
— Foreclosure Properties
While foreclosures initially may appear to be an appealing homeownership option, it’s also essential to recognize that investing in foreclosure properties is not a simple process. This is a niche market with many subtle but important nuances, requiring considerable specialized knowledge, experience and contacts.
If you decide to pursue a foreclosure purchase, you’ll want to work with an experienced REALTOR® who can educate you on the process. He or she can help you crunch the numbers, determine a logical purchase plan, avoid potential setbacks, and assist you with all the unique processes and paperwork involved with foreclosures.
— Short Sales
The short-sale buying option is becoming more common in places where homeowners paid higher prices for their homes a few years ago than the homes are currently worth now. Short sales are an alternative to a foreclosure. When the borrower can no longer make the mortgage payments as agreed, he is faced with many decisions. One is to allow the lender to foreclose. Another is to get the lender to agree to accept a payoff of less than the balance owing on the loan.
— Auction Sales
Auctions have become more popular, in part, because property owners recognize that taxes, maintenance, financing and other costs can significantly erode their equity, especially if the property sits idle for many months. Auction sellers effectively can pick their sale date. They also may be sending a strong signal that they’re motivated to sell, depending on the type of auction method chosen.
As a homebuyer in the auction process, you are able to determine the price you will pay. The seller may set a minimum price, and you will still have to compete with other buyers, but the actual selling price is ultimately set by you, which differs from houses listed for sale through brokerage firms where the seller sets the price and the rest of the purchase process is about negotiating a sale.
Even though auctions are managed differently than traditional brokerage sales, it’s still a good idea to engage the help of a qualified ABR® or REALTOR®. Your agent can assist you by providing a competitive market analysis and other information that will be helpful in developing your pricing strategy. He or she also can help you review the disclosure package, accompany you to any presale inspections, explain the sales terms and auction procedures, coordinate attorney reviews, assist in prearranging financing and act as your representative in managing transaction paperwork with the auction company.
BUYING REAL ESTATE IN CALIFORNIA
Real estate taxes and laws vary greatly from state to state. If this is will be your first property purchase in California, it is best to get acquainted with a few of these common regulations and factor them into your homebuying decisions.
— DEED RESTRICTIONS
You may decide to live in a subdivision or a master-planned community with deed restrictions, which appear in the real property records of the county in which the property is located. They are private agreements and are binding upon every owner in a subdivision. All future owners become a party to these agreements when they purchase property in deed-restricted areas. That’s why it’s important to review the deed restrictions in a restricted subdivision or community you’re considering so you’re aware of the residents’ obligations and responsibilities.
A primary purpose of most deed restrictions is preserving the residential character of a subdivision by keeping out commercial and industrial facilities. For people who prefer to live in a wholly residential environment, deed restrictions are desirable. Deed restrictions legally may prohibit a person from operating certain types of businesses from their home.
— HOMEOWNERS ASSOCIATIONS
When you buy a property in a deed-restricted community, you are automatically a member of the community or homeowners association. It is your responsibility to adhere to the standards and rules set by the association as well as pay an annual fee or assessment for the maintenance of the community’s common areas as well as parks, pools and recreational facilities.
— COMMUNITY PROPERTY LAWS
Ownership in California falls under the law of community property for married people. This means that each spouse owns an undivided one-half interest of all property accumulated during the marriage except for separate property that was owned before the marriage or was received by gift or inheritance during the marriage.
While foreclosures initially may appear to be an appealing homeownership option, it’s also essential to recognize that investing in foreclosure properties is not a simple process. This is a niche market with many subtle but important nuances, requiring considerable specialized knowledge, experience and contacts.
If you decide to pursue a foreclosure purchase, you’ll want to work with an experienced REALTOR® who can educate you on the process. He or she can help you crunch the numbers, determine a logical purchase plan, avoid potential setbacks, and assist you with all the unique processes and paperwork involved with foreclosures.
— Short Sales
The short-sale buying option is becoming more common in places where homeowners paid higher prices for their homes a few years ago than the homes are currently worth now. Short sales are an alternative to a foreclosure. When the borrower can no longer make the mortgage payments as agreed, he is faced with many decisions. One is to allow the lender to foreclose. Another is to get the lender to agree to accept a payoff of less than the balance owing on the loan.
— Auction Sales
Auctions have become more popular, in part, because property owners recognize that taxes, maintenance, financing and other costs can significantly erode their equity, especially if the property sits idle for many months. Auction sellers effectively can pick their sale date. They also may be sending a strong signal that they’re motivated to sell, depending on the type of auction method chosen.
As a homebuyer in the auction process, you are able to determine the price you will pay. The seller may set a minimum price, and you will still have to compete with other buyers, but the actual selling price is ultimately set by you, which differs from houses listed for sale through brokerage firms where the seller sets the price and the rest of the purchase process is about negotiating a sale.
Even though auctions are managed differently than traditional brokerage sales, it’s still a good idea to engage the help of a qualified ABR® or REALTOR®. Your agent can assist you by providing a competitive market analysis and other information that will be helpful in developing your pricing strategy. He or she also can help you review the disclosure package, accompany you to any presale inspections, explain the sales terms and auction procedures, coordinate attorney reviews, assist in prearranging financing and act as your representative in managing transaction paperwork with the auction company.
BUYING REAL ESTATE IN CALIFORNIA
Real estate taxes and laws vary greatly from state to state. If this is will be your first property purchase in California, it is best to get acquainted with a few of these common regulations and factor them into your homebuying decisions.
— DEED RESTRICTIONS
You may decide to live in a subdivision or a master-planned community with deed restrictions, which appear in the real property records of the county in which the property is located. They are private agreements and are binding upon every owner in a subdivision. All future owners become a party to these agreements when they purchase property in deed-restricted areas. That’s why it’s important to review the deed restrictions in a restricted subdivision or community you’re considering so you’re aware of the residents’ obligations and responsibilities.
A primary purpose of most deed restrictions is preserving the residential character of a subdivision by keeping out commercial and industrial facilities. For people who prefer to live in a wholly residential environment, deed restrictions are desirable. Deed restrictions legally may prohibit a person from operating certain types of businesses from their home.
— HOMEOWNERS ASSOCIATIONS
When you buy a property in a deed-restricted community, you are automatically a member of the community or homeowners association. It is your responsibility to adhere to the standards and rules set by the association as well as pay an annual fee or assessment for the maintenance of the community’s common areas as well as parks, pools and recreational facilities.
— COMMUNITY PROPERTY LAWS
Ownership in California falls under the law of community property for married people. This means that each spouse owns an undivided one-half interest of all property accumulated during the marriage except for separate property that was owned before the marriage or was received by gift or inheritance during the marriage.
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