Am I allowed to call utility companies and ask for the last 12 months of utility bills for a house that I’m considering buying?

            -Brian

Absolutely, I just overheard another agent in my office doing that exact same thing for one of her customers. They may not be able to tell you each month’s bill, but they should be able to share the average for the last 12 months along with the high and low.

-David W. Welch, Real Estate Optimist

David Welch specializes in residential re-sales and new home construction at RE/MAX 2000 Realty in and around Orlando, FL.

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Last October, a friend of mine refinanced his home that he has lived in for the past 5 years. He went from a 30-year fixed to a 15-year fixed mortgage. Now, he wants to sell the home this summer. Is there a penalty? If so, what is it?

-Naomi

Whether or not there is a pre-payment penalty depends on the Note between your friend (the Mortgagor) and the lender (the Mortgagee). When a mortgage is given on a property, the Note is the actual contract to pay back the loan. In the note (and other closing documents), it should specifically state whether or not there is a pre-payment penalty. I believe that some states actually restrict or even prohibit mortgage pre-payment penalties as they are specifically designed to prevent refinancing, but I am not certain.

In any event, if your friend checks the Note and other closing documents, it should clearly state whether or not there is a pre-payment penalty, and if so, what the penalty is. If he cannot find it, advise him to ask his lender or the settlement agent for a copy.

David Kres is a REALTOR® for Buyers Brokers Only LLC in NE Massachusetts/Southern NH.

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When searching for a REALTOR®, what do I look for?

-Donald

If I could nail it down to just a couple of key aspects, I would say integrity and feeling comfortable with them. You really need to feel that you can trust them, and that you will be able to communicate with them effectively.

I sat down with a seller, and he had a book on his dining room table titled “1001 Questions to Ask Your Real Estate Agent.” I looked at him and said, there is no way, I am going to sit here and answer 1001 questions.

I do recommend speaking with two or three agents. That way you can ask them about their experience and how they work. Whether you are a buyer or a seller, it is important to know if they are active in your market. Ask them about the local market, about their company and about them. It is a tough market in a lot of places right now, so don’t be surprised if they have not sold a lot of houses. Find out if they work alone or as part of a team. Find out if they use e-mail, text or a smart phone. If you prefer text, and they “don’t do that” you are going to have difficulty communicating.

As far as finding the three to speak with in the first place, personal referral is best. If you don’t know anyone that has bought or sold recently, try the old stand by– Google. Websites are a great resource. Read their blog. When was the last time they updated their website? Do they have any listings on their site? Where does their site come up in searches? Take a look at their listings on Realtor.com. Best of luck in search for a great Realtor.

David Welch specializes in residential re-sales and new home construction at RE/MAX 2000 Realty in and around Orlando, FL.

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I am in the midst of buying a home, and my home inspection is scheduled for this week. One item in the house concerns me.

The seller advertised that the house electric was 220v, but instead of a circuit breaker box, its all fuses. What rights do I have to make the seller correct the electric and make it 220?

-Derek

Derek, the purpose of home inspections is for you, the buyer, to know exactly what you are getting into and know the condition of the home. We constantly remind our clients that in the case of “as is” sales, a home inspection should not be used as a negotiating tool.

With that in mind, you have every right to submit an offer to a property with certain conditions. The seller is being upfront about the electrical system of the property, so it is now up to you and your REALTOR® to do a bit of research and find out what type of electrical systems were existing in comparable sales and if you want to ask the seller for certain concessions (like upgrading the electrical panel), or price reduction. Please know that in a real estate transaction, everything is negotiable; as for “rights”, it depends how your purchase contract was drafted and what the inspection contingencies were.

Also consider having an electrical contractor visit the home during your inspection period (with seller’s consent of course), to give you a quote on the upgrade. You could be surprised at how economical some of these jobs can be and may not be worth your while to potentially lose the sale over the upgrade.

Good luck with the inspection!

Ines Hegedus-Garcia specializes in commercial and residential real estate services at Miamism in and around Miami, FL.

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I’m preparing to sell my house and have decided to change the shutter, front door, and garage color. The house is a pale yellow Cape Cod with white trim.

My instinct is to match the garage door to the house color and do the shutters and door in black. My REALTOR®, however, wants to go with muted browns. He indicates that the current market color palette is very organic and earth-toned and that these colors will be more ‘on-trend’. Do I trust the Realtor’s instincts or go with my more traditional perspective?

-Stanley

My opinion is that it is best to go with the tradition of the architectural style of a home.

If the style is Cape Cod, then look at photographs in home design magazines and match the paint colors and palette that works with that particular style home.

I also recommend not getting too many opinions. Just trust your instincts.

-Karen

Karen Crystal, REALTOR® at Ewing & Associates Sotheby’s International Realty, specializes in estate properties. She brings a unique blend of efficiency, honesty, integrity and business-savvy to her clients.

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I would like to sell my home in the next 5 to 7 years as I know my current home is not my ideal  for the long term, but will suit me just fine in the short term.

Since I would like to sell at some point, does it make sense to do any home improvements? The only significant improvements that I believe would be attractive to a potential buyer are updating the kitchen (current kitchen is useable but would look tired to a potential buyer), installing energy efficient double pane windows and adding air conditioning. I would really like to avoid doing any of these because they would just add more debt to my loan balance and cut into my proceeds at the time of sale. However, I also want to make my house attractive when it comes time to sell.

I know these improvements have the potential to add value, but it is my understanding that I would not get that great a return on my investment. It seems like it would be a waste to do a kitchen remodel when a prospective buyer might not even like the updates that are done.

-Casey

 You raise a very common, yet important question. 

It is my experience that buyers have a few “hot buttons” when they are forming a first impression of a property. 

The first one is curb appeal. Curb appeal is a powerful selling tool, and you don’t need to create the Versailles Gardens. Simply mow the lawn, plant some pretty flowers, replace the mailbox, and perhaps paint the front door.  If you spend about $1,000 on this, you will get this money back for sure. 

I believe you should focus on smaller, more visible upgrades inside your kitchen (second hot button), such as installing new granite countertops and stainless steel appliances. Keep your costs down and use a few high-end materials to make your kitchen look fresh. 

To answer your “recoup” question: While the amount you recoup may not be as high as it once was, projects like these will help you sell your home faster and for a better price than a home that isn’t renovated.

 According to cost vs. value report that I recently read:

Karen Crystal, REALTOR® at Ewing & Associates Sotheby’s International Realty, specializes in estate properties. She brings a unique blend of efficiency, honesty, integrity and business-savvy to her clients.

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Why should I get pre-approved before buying a home?

Years ago, buyers didn’t worry about financing their home purchase until after they found the home they wanted to buy. Once they had an accepted offer, they’d shop around for a week or so and then submit a loan application.

Home buying is highly competitive in some areas. To compete, many buyers are now getting pre-approved for a mortgage. This way, the buyer is seen as more stable, has greater influence in negotiating a purchase price, and can act quickly when they find a home they really love. A pre-approved homebuyer is considered almost as strong as a cash buyer.

There are two parts to mortgage approval: 1) approval of the borrower, and 2) approval of the property. Mortgage pre-approval is a process whereby the borrower is approved for a specific mortgage amount. The approval is usually good for a period of time.

A property approval is one with satisfactory appraisal and a clear title report. Final mortgage approval also requires a purchase agreement that is signed by the buyer and the seller.

Kharee Shorter is an experienced REALTOR® at Keller Williams Realty in the Philadelphia area.

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Joe Cline blogs about the pros and cons of buying or renting a home in the current economic state.

“The biggest issue for most people when it comes to making the decision to rent or buy is the costs involved. You should look first at the current local real estate prices and use a mortgage calculator to figure out how much you can expect to pay for a home.

Look at the rental listings and take note of how much rentals are currently going for. Use websites like REALTOR.com® to keep tabs on the current prices. You may also want to consider getting pre-approved for a mortgage loan to figure out your exact APR and price range.”

You know your own unique situation, when it comes to your job, marital status and financial situation. So your decision to rent or buy may be different from someone else’s. There are many factors to consider, and hopefully, Joe Cline’s blog can help guide you down the right path.

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I submitted an offer through the listing agent for a house in pre-foreclosure. The agent says the seller keeps asking for the “gross amount.” The seller, which is a financial lending institution, is aware of the dollar amount of the offer, but seems to be looking for something in addition to it. The agent and I are confused. What does “gross amount” mean?

-Rick

There are two parts to your question. First, you mention you are buying a home in “pre-foreclosure.” This means the bank has not foreclosed on the property yet. If this is true, then the seller is the person who is in default, not the financial lending institution with whom you are negotiating a settlement. This is a very important distinction. The bank does not own the property until after foreclosure, therefore they are not the seller.

To your question regarding “gross amount;” in a short sale, the bank is interested in two numbers. First, the gross sales price, which is the offer amount you as a buyer have offered to pay for the home. The next is the “net amount,” or amount the bank will ultimately end up with at close of escrow after all fees are deducted to close the transaction. These fees can include taxes, escrow, title, real estate commissions, and other customary charges. One note, in a short sale, nothing is customary and the banks will fight tooth and nail for every penny they can collect. Most short sale negotiators find success with a “net to gross” difference in price between 6 percent to 10 percent. For example if the “gross amount” was $100,000 and you were skilled enough to negotiate a net to gross difference of 10 percent ($10,000) than the “net amount” would be $90,000 to the bank at the close of escrow.

Allan Glass is a real estate broker at ASG Real Estate Inc and a consultant in the Los Angeles market specializing in REO, foreclosures, and short sales. Over the past 17 years he has sold over $1 billion in commercial and residential real estate.

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My mother and I own our home together. I want to move because we just can’t afford it any longer but my mother doesn’t. How do I go about this situation since the house is in both our names?

-Schrone

I am assuming there is a mortgage on the property. That means you will have to obtain a partial release from your lender in order to take your name off the note. That is easier said than done. Contact your lender and explain the situation to find out exactly what their process is. Your mother will have to qualify for the debt on her own in order for you to be released. I am not a lawyer, so there may very well be other legal options for you if you are willing to pursue them against your mother. It sounds like you are in a tough situation.

David Welch specializes in residential re-sales and new home construction at RE/MAX 2000 Realty in and around Orlando, FL.

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