Which of These 4 Basic Home Types is Your Favorite?

Before buying any home, you should always consider your medium- to long-term lifestyle needs. My Albuquerque home search page lets you drill down your search based on the types of home you’re interested in. However, if you’re not quite sure about the various types of homes, here’s an explanation of the four basic residential types in Albuquerque.

1. Single Family Homes (SFH), also known as detached homes, are built on a single lot, with no shared walls. You may find a garage, either attached or detached.

The upside is that you generally get more privacy in this type of home than the others, since SFH don’t share walls. Usually the largest type of home, SFH often get front and back yards. Likewise, they tend to have a more reliable resell value than the other home types.

However, the drawback is that you, the homeowner, are responsible for all maintenance work/costs.

2. Condominiums are single units within a larger building or community. The unit often shares walls with other units. Expect to pay typical monthly homeowners’ association (HOA) dues to maintain the common grounds and other amenities. Condos are usually conveniently located close to restaurants and retailers.

Those HOA fees means the convenience of no responsibility on the homeowner’s part to contribute to maintenance and upkeep. Amenities can be nice as well. Some condos offer fitness rooms, pools, and rec rooms.

Unfortunately, HOAs establish limitations on remodeling your condo. Because of common walls, there may be noise policies in place after certain hours. Further, you may find pet restrictions.

3. Townhomes are a cross between a condo and a single family home in features, and basically place in between in size. Often multiple-floored with shared walls, townhomes can have small yards or a rooftop deck.

Residents of townhomes often have more privacy than condos provide. Some even have HOAs. And they tend to be more less expensive than most single family homes.

Townhomes, however, don’t usually have the shared amenities that condos do. And they don’t generally offer the amount of privacy that SFH homes do.

4. Multi-family units comprise the smallest type of residencies. They’re often two residential units that have a common wall. Each unit typically has its own separate entrance. Multi-family units generally can’t be purchased individually; one owner owns the whole building.

Usually, people looking for multi-family units want an investment property. They can live in one unit, and rent out the other units. There are generally fewer people you’re sharing your building with, making it more private and quiet. You may also get some yard space.

Multi-family units, like townhomes, are a hybrid between a single family home and a condo. They’re fairly small and less private. If you’re renting, you’re paying maintenance to the landlord. If you own one as the landlord, you’re responsible for handling all maintenance costs, plus trying to find renters.

What type of home would you like to make your next? Let me know in the comments below.

And if you’re looking to buy your next home in metro Albuquerque, contact me today so I can help you find it!

Sorting Through the Home Loans

home-financesConfused about the different loan types out there? Here’s a quick, “at-your-fingertips” post to help you sort it all out.

Conventional

A conventional home loan is one that is not insured or guaranteed by the federal government. This is the most common mortgage option and usually has the best interest rates.

Down Payments: 10%
More Financing Options
Good Credit Score

FHA

FHA loans are mortgages insured by the Federal Housing Administration. Makes ownership more affordable with less down and easier credit requirements.

Low Down Payment Down – 3.5%
Low Payments
Low Credit Score

VA

Veterans Administration loans are for qualifying veterans, active military and military families.

No Down Payment
Low Payments
No Private Mortgage Insurance (PMI)

USDA

United States Department of Agriculture (USDA) loans are designed to help low- or moderate-income people buy, repair or renovate a home in rural areas. Some suburban areas qualify, too.

No Down Payment
Low Payments
Good Credit Score

Questions? When you feel ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

What is Escrow?

escrowEscrow is an agreement between two or more parties providing that certain instruments or property be placed with a third party for safekeeping, pending the fulfillment or performance of a specific act or condition.

This is most typically seen when a buyer writes a check for earnest money as part of a purchase agreement. In Albuquerque, a title company usually acts as the escrow agent. The check is deposited with them after the offer is accepted. They will then apply the amount of the check as a credit to the buyer at closing or, if the contract is terminated, the title company will disburse per the instructions in the contract and only with the signature of all parties involved.

If you have any questions about the way escrow works, please leave them in the comments below. And if you’ve got questions about buying or selling a home in metro Albuquerque, be sure to contact me today!

What is a HUD-1 Closing Statement?

Letter of PreapprovalThe HUD-1 (Closing Statement) is a financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended.

It is a document the title company should provide your agent no later than twenty-four hours before closing for review. This ensures all fees charged to you as the buyer or seller are accurate and all bills are paid at closing. This statement also shows the amount needed for closing or the amount due to the seller (net profit). You should see a breakdown of all inspections, commissions paid, loan fees, taxes, and any additional costs associated with the purchase or sale, such as fees paid out of closing (i.e., appraisals).

If you have any questions about the HUD-1 Closing Statement, please leave them in the comments below. And if you’ve got questions about buying or selling a home in metro Albuquerque, be sure to contact me today!

What is Earnest Money?

real-estate-glossaryEarnest money is a deposit made by a purchaser of real estate to evidence good faith.

Simply stated, earnest money is an amount of money offered with the purchase agreement to show the sellers that you’re serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically in Albuquerque, earnest money can range from $1,000-$1500 for less than $250,000 and $3,000-$5000–up to $500,000. This is always negotioable, but needs to be reasonable to the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing.

If you have any questions about earnest money, please leave them in the comments below. And if you’ve got questions about buying or selling a home in metro Albuquerque, be sure to contact me today!

3 Reasons Why Sellers Need a Pre-Sale Home Inspection

electrical inspectorToo many home sellers these days underestimate the value of a pre-sale home inspection. A good pre-sale home inspection can not only uncover last-minute problems, but can also lead sellers to top-dollar for their home. Here are three benefits of doing one.

1. Record repairs and improvements.

As a home seller, you need to ensure that every repair or improvement is done and nothing is left to chance. Your home inspector should be able to identify the smallest potential problems. By having the inspection done before the sale, any work done will be on your own terms, schedule, and budget.

2. Improve your chances of a quick sale.

Have you ever asked yourself why some homes for sale attract more buyers than others? The answer is simple. When a home is well-maintained and appealing, it will attract more buyers and increase the chances of a bidding war. Remember, every buyer wants value for their money, too, as well as peace of mind, which is why they’ll go for homes which have undergone a complete pre-sale home inspection.

3. Get a better deal.

When you have a home inspection report in hand, buyers will feel confident that any potentially troublesome issues have been addressed. Not only will you minimize price negotiation during your deal-making, but you’ll enjoy the benefit of selling your home at or above your listing price.

If you have tips about home inspections you’ve had, be sure to leave them in the comments below. And if you’ve got questions about selling or buying any type of home in metro Albuquerque, be sure to contact me today!

What Exactly is a Condominium?

CondominiumA condominium is a system of ownership of individual units in a multi-unit structure, combined with joint ownership of commonly used property (sidewalks, hallways, stairs, etc.).

Simply put, you own your unit and a percentage of the common areas. An HOA (Home Owners Association) fee is usually collected monthly to cover maintenance costs of the common areas as well as the exterior building. Additional costs, such as all utilities, may also be included. Before purchasing a condo, be sure you understand all costs included in the HOA fees. HOA fees can add up to several hundred dollars a month!

Those HOA fees mean the convenience of no responsibility on the homeowner’s part to contribute to maintenance and upkeep. And the amenities can be quite luxurious. Some condos offer fitness rooms, pools, and rec rooms.

Unfortunately, HOAs establish limitations on remodeling your condo. Because of common walls, there may be noise policies in place after certain hours. Further, you may find pet restrictions. So, as you can see, before you consider purchasing a condo, there are a few things you should check into.

If you’ve got questions about condos or about buying or selling any type of home in metro Albuquerque, be sure to contact me today!

SHORT SALES, PRE-FORECLOSURES, AND FORECLOSURES

foreclosureEver read a house listing and feel a little uncertain about the meanings of terms such as short sale, pre-foreclosure, or foreclosure? Well, thankfully, even though these terms have been quickly disappearing from New Mexico’s real estate market for the most part, it’s my hope that this post will clear up any uncertainties you may have!

A short sale of a residential property is still owned by the owner, but the owner is usually behind in their payments and the price listed is short of what is needed to pay off the mortgage and closing costs. There is no guarantee that the bank will accept a short sale even if the owner offers the full list price, and the response time from a bank on an offer can take up to six months.

A house is in pre-foreclosure when the lender, in the process of suing the owner in court, has had a summons issued and filed with the court. This pre-foreclosure period between filing and judgment can take 2-3 months. Once the judgment is issued, the house officially goes into foreclosure and can be placed for auction on the county steps with a minimum of 30 days notice.

Essentially, the process can be simplified in this order:
1) Owner is behind in payments.
2) Mortgage company files in court—they are now in pre-foreclosure.
3) Judgment is issued—they are now foreclosed.

Finally, consider these possibilities: a house could be both in pre-foreclosure and listed as a short sale; but, a short sale is not always in pre-foreclosure; and a pre-foreclosure is not always a short sale!

If you’ve got any questions about these terms or about buying or selling a home in metro Albuquerque, be sure to contact me today!

Comparative Sales Defined

real-estate-glossaryComparable Sales: Sales that have similar characteristics as the subject property and are used for analysis in the appraisal process.

Simply stated…When doing a CMA (comparative market analysis) for a homeowner thinking of selling their home, real estate agents look at other homes that have recently sold. So as to compare apples to apples, they want to use homes that are similar in size, location, age, type, etc. For example, a 2 bedroom condo would not be a comparable for a luxury home. This will help you and your agent come up with the best price to market your home. Appraisers also use comparable sales data in determining the appraised amount when requested by a lender for a mortgage or re-finance. When you’re ready to sell your home, request your complimetary home value report!

And if you’ve got any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!