House Hunting Tips when searching for a home in Picayune Mississippi.  What you should know when you are wanting to buy a home in Pearl River County, MS.

If you are in the market to purchase a home, or if you are locked into a high interest rate on your present mortgage, NOW is the time to act!  Luann Watkins at The First Bank in Picayune, MS, says that rates are the lowest she has ever seen them (and she’s been in the mortgage business for a LONG time!).

Currently, the interest rate on a Conventional Loan is hanging at 4.35% on a 30 year term, and 4.75% for a 15 year term.  FHA and RD (Rural Development) is at 4.25% with 95% LTV (Loan-to-Value).   If your current mortage is at 5.3% or higher, this might possibly be the best time to do a re-finance!

If you are interested in knowing more about current interest rates (in relation to your credit score**), give Luann Watkins a call at 601-798-2987.  And if you’re pre-approved and ready to find your next home, call Michelle Fradella at 601-569-0075!

All rates are subject to change.  All rates quoted are for purchase loans only with 1% origination.  *Conventional rates are based on a loan with a credit score of 700 at a 95% loan-to-value.  **FHA, VA, and RD rates are based on a purchase price of $120,000 with a credit score of 700 at maximum LTV.

Buying a home is a major decision for anyone whether they are a first-time homebuyer or someone who has purchased 10 homes before.

A Realtor spends many hours researching financing information, keeping abreast of the current market and market trends, and they also spend time in continuing education studies. This enables them to give you the best service to assure that you are investing your money wisely.

Your Realtor stands ready to help you locate and purchase the home best suited for your family’s needs and financial picture. They know the market and they know the many options of home financing.

You only need ONE Realtor to help you find the home that is right for you.  So, if you meet another Realtor at an Open House or Showing, you can avoid confusion if you indicate that you’re already working with an Realtor.  All Realtor have access to the same information via the MLS (Multiple Listing Service).

While searching for your new home, your Agent will:

• Keep you informed.
• Run frequent computer checks for new listings that meet your criteria.
• Stay up-to-the-minute on changing financial conditions that may affect the housing market.
• Be available to answer your questions or to offer assistance at any time.
• Discuss market trends and values relating to properties which may be of interest to you.
• Show you new homes as well as pre-owned homes, if you desire, including those listed with other companies.
• Introduce you to reliable lenders who can take care of your financial needs.

And once you have chosen a home and have made an accepted offer, your Realtor is there to make sure the loan process runs smoothly, the proper inspections are being done on the home, and that the closing takes place with as little effort from you as possible.  There is no need for that “nightmare” process when buying your home.

If you are looking for a Realtor to assist you, contact Michelle Fradella at Pinnacle Real Estate Services to find out what properties are available that meet your family and financial needs and to get started in the home-buying process.

If you are considering the purchase of a short sale property, you need to ask yourself the following questions:

1. Are you in a position where you can wait for the lender’s approval of the Short Sale?

A Short Sale has no pre-determined time frame, even if your agent writes one into the contract.  Short Sales can take anywhere from 30 days to 6 months, or beyond.  The lender is not in any hurry to accept your offer without certain tasks being completed, and certain factors being accepted.  Many times, when a short sale contract is presented to a lender, it is the first notification that the seller wants to have the lender consider this option, and the lender will have to go through a process to determine if the seller is even eligible for a short sale.   The entire process will also largely be dependent upon the skill of the Realtors involved in the transaction.

2. Do you have a home to sell before you can purchase the short sale?

If you have a home that you have to sell first in order to buy your next home, you will need to have it sold already, before making an offer.  No lender is going to consider you a qualified buyer if you are not financially able to complete the sale within a reasonable time frame.  Making your offer contingent on the sale of your home will most definitely assure you a rejected contract.

3. Will you follow through on feedback regarding, among other things, market value and contract contingencies?

Are you willing to present a reasonable offer based on current market value, or are you looking to lowball a lender in the attempt to ‘steal’ a property?  A lender is going to look at what the best avenue would be for their financial situation, and it could be that your “offer” would not generate the lender more money than if they were to just foreclose on the property and take it into inventory and sell.

4. Are you open to listening to the advice of your Realtor in what terms can or should be included in the contract?

A contract full of contingencies (stipulations about inspections, repairs, financing, etc) will likely get you a rejected contract.  The lender is interested in the bottom line, and the amount that presents to their side of the deal.  When making an offer on a Short Sale property, you will need to consider the property in AS-IS condition – they are not going to consider most repairs.

5. Do you understand that the lender will be making the final call on price and terms?

The lender will make the final call on the terms of the contract.  Unfortunately a buyer is not in a very good position to demand certain terms, because the lender would just as well foreclose on the property.

6. How willing are you to consult an attorney regarding home inspections, earnest money, and the contingency period for third-party approval?

Your Realtor can point you in the right direction in regards to inspections and such, but they are not an attorney, and if you have any doubts about any part of the contract, property condition, or terms, you will need to seek proper legal advice.

7. Are you willing to enter into an Exclusive Buyer Representation Agreement, and be responsible for compensation, should it not be paid by the seller’s side?

A good Realtor that can negotiate your deal, and follow through during the long process of a Short Sale is going to want to make sure they are compensated for their time.  Just as you would expect your boss to pay you for the job you agreed to do, your Realtor will need to be guaranteed compensation for their due diligence throughout the Short Sale process.  This is guaranteed through an Exclusive Buyer Representation Agreement.

There are many obstacles when considering the purchase of a Short Sale property.  Not only are you going to need to negotiate a price and terms with the lender, but you will also need to make sure the contract negotiations and closing run as smoothly as possible, and that no stone is left unturned.  You need to hire a Certified Short Sale Foreclosure Representative (SFR) to lead you through this difficult and often nerve-racking process.

For more information on how to make an offer on a Short Sale, call Michelle Fradella at Pinnacle Real Estate Services at 601-569-0075.

Buyers commonly ask if the home warranty being offered by a seller is a “good deal.”

Considering that the average furnace repair is between $1,250 and $5,000, a home warranty may save you dollars on a repair that pops up after the closing. In addition, the money you save by not having to foot the bill for the policy–which on average can cost between $300-$400–makes a warranty a worthy perk.

You should be mindful, however, of exactly what the home warranty covers. Most sellers only purchase a one-year basic warranty, which will generally cover major built-in appliances and mechanical systems such as heating, electrical and plumbing, and usually it only covers normal wear and tear. For example, if the water heater was not in good working condition when the home was purchased, and it breaks a week or two later, there is no coverage.

If you want more extensive coverage, such as for pool equipment, air conditioning, or even the refrigerator, talk with your real estate professional about negotiating that extra cost with the seller, or consider purchasing your own warranty. Also, remember that although most home warranties provide coverage only for one year, most plans are renewable.

Whether or not you are given the option of selecting your own home warranty provider, here are questions to consider:

• How much is the deductible or per visit cost for repairs?
• Does the plan cover ‘pre-existing conditions’ which weren’t known to the seller?
• Who performs the repairs? Can you choose someone or does the company send a technician in their network?
• What’s the maximum dollar amount for repairs and what are the policy limitations? For example, will the policy pay for a new water heater at no additional cost?

Whether a warranty is offered by the seller or not, no buyer should forgo a home inspection. An inspection may uncover defects or potential problems that won’t be covered by the warranty – and may give you the opportunity to request the seller to make any major repairs before the closing.

But, warranties definitely have a place when it comes to protection and peace of mind. If you are looking in the Pearl River County, MS, area for a home, give Michelle Fradella a call for more information on home warranties and providers.

Before you begin working with any real estate agent, you should know who the agent represents in the transaction. Mississippi real estate licensees are required to disclose which party they represent in a transaction and to allow a party the right to choose or refuse among the various agency relationships. There are several types of relationships that are possible and you should understand these at the time a broker or agent provides specific assistance to you in a real estate transaction. The purpose of the Agency Disclosure is to document an acknowledgement that the consumer has been informed of various agency relationships which are available in a real estate transaction. For the purpose of this disclosure, the term seller and/or buyer will also include those other acts specified in Section 73-35-3(1), Mississippi Code.,”…list, sell, purchase, exchange, rent, lease, manage, or auction any real estate, or the improvements thereon including options;.”

SELLER’S AGENT

A seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. A licensee who is engaged by and acts as the agent of the Seller only is known as a Seller’s Agent. A Seller’s Agent has the following duties and obligations: To the Seller: * The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full accounting and the duty to use skill, care and diligence. To the Buyer and Seller: * A duty of honesty and fair dealing. * A duty to disclose all facts known to the Seller’s Agent materially affecting the value of the property which are not known to, or readily observable by, the parties in a transaction.

BUYER’S AGENT

Buyer’s Agreement A buyer may contract with an agent or firm to represent him. A licensee who is engaged by and acts as the agent of the Buyer only is known as the Buyer’s Agent. If a Buyer wants an agent to represent him in purchasing a property, the buyer can enter into a Buyer’s Agency Agreement with the agent. A Buyer’s Agent has the following duties and obligations: To the Buyer: * The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full accounting and the duty to use skill, care and diligence. To the Seller and Buyer: * A duty of honesty and fair dealing.

DISCLOSED DUAL AGENT

A real estate agent or firm may represent more than one party in the same transaction. A Disclosed Dual Agent is a licensee who, with the informed written consent of the Seller and Buyer is engaged as an agent for both Seller and Buyer. As a disclosed dual agent, the licensee shall not represent the interests of one party to the exclusion or detriment of the interests of the other party. A disclosed dual agent has all the fiduciary duties to the Seller and Buyer that a Seller’s or Buyer’s Agent has except the duties of full disclosure and undivided loyalty.

A Disclosed Dual Agent may not disclose: (a) To the Buyer that the Seller will accept less than the asking or listed price, unless otherwise instructed in writing by the Seller. (b) To the Seller that the Buyer will pay a price greater than the price submitted in a written offer to the Seller, unless otherwise instructed in writing by the Buyer. (c) The motivation of any party for selling, buying, or leasing a property, unless otherwise instructed in writing by the respective party, or (d) That a Seller or Buyer will agree to financing terms other than those offered, unless otherwise instructed in writing by the respective party.

CUSTOMER

“Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant. A Buyer may decide to work with a firm that is acting as agent for the Seller (a Seller”s Agent or Subagent). If a Buyer does not enter into a Buyer Agency Agreement with the firm that shows him properties, that firm and its agents may show the Buyer properties as an agent or subagent working on the Seller’s behalf. Such a firm represents the Seller, (not the Buyer) and must disclose that fact to the Buyer. When it comes to the price and terms of an offer, the Seller’s Agent will ask you to decide how much to offer for any property and upon what terms and conditions. They can explain your options to you, but the final decision is yours, as they cannot give you legal or financial advice. They will attempt to show you property in the price range and category you desire so that you will have information on which to base your decision.

The Seller’s Agent will present to the Seller any written offer that you ask them to present. You should keep to yourself any information that you do not want the Seller to know (i.e. the price you are willing to pay, other terms your are willing to accept, and your motivation for buying). The Seller’s agent is required to tell all such information to the Seller. You should not furnish the Seller’s agent anything you do not want the Seller to know. If you desire, you may obtain the representation of an attorney or another real estate agent, or both.

If you have any questions about these catagories, when looing for a home in Pearl River County, MS, please call Michelle Fradella at 601-799-1848, or email her at PRCHomes