Looking to purchase first home
Q: My daughter and her husband is looking to purchase their first home. However, the homes in the amount they were approved for are inadequate. My wife and I have excellent credit, and the amount we would be approved for at the interest rate they would be able to purchase a nicer home. Is there a way for us to purchase the home and put it in their name, or possibly purchase and transfer ownership?
A: You could purchase the property, even transfer title to their name after closing. What you can not do, is get away from any of the mortgage obligations you will be signing for. Also, check to see if there are / would be any ramifications for you doing so (as far as the mortgage company is concerned. Those restrictions would be contained in the mortgage & / or note you will sign at closing.I have had some clients put the property in all the names together. Make sure you check this out thoroughly before doing so.
1st time homebuyer
Q : Can a 1st time home buyer find another home with same value and do an even exchange?
A : There is a way a buyer can do an exchange with a seller for another property & even comply with the IRS & their tax guidelines. It is rather complicated so I suggest you speak with a title company in your area & get the written guidelines from them on this excahnge. You could even check the IRS website for thier info. I still don’t understand however, how a 1st time buyer can do an exchange at all being that they are a 1st time buyer & haven’t yet bought the 1st house.
Home project
Q : We bought our first home in October and now we are trying to priortize what capital projects to work on first or most, etc. My question is about how valuable landscaping is. We purchased a 1960’s home on a 1/4 acre and the landscaping could use some serious updating. Is this a wise investment? I must admit that no other yards are necessarily up to date in the area, but I think it would make the house look so much better and enjoyable for our family. I would think we will live here about 5 years. Thanks a lot for your help in this matter.
A : Landscaping is extremely important! You have, I’m sure, heard about ‘curb appeal’ - well, this is a major factor in a properties curb appeal. How you ‘feel’ (buyers , make an emotional decision 1st) as you drive up to a house is a crucial difference in what value they (buyers) put on that property. If you are going to stay their for 5 or so years, you will not only get to enjoy the improvement, but get some resale value from it (not to mention that most landscape projects get ‘better looking’ over time as they mature). DO IT ! Become the envy of the neighborhood & when word gets around & the time comes for you to sell - they will remember & come.
Buyers Agent Question
Q: I am a first time homebuyer and was referred to a realtor. At this time I didn’t confirm she was going to act as a buyer’s agent for me so the first home I looked at she was acting as the seller’s agent since it was listed under her agency. From everything I read this is the best way to purchase a home although it often done through with a seller’s agent. Can I get a buyer’s agent from a different agency to put an offer in on this property? I am sure the seller’s agent would not be happy, but then again I feel like I had one pulled over on me since I didn’t specifically act for a buyer’s agent.
A: It would be helpful to know a little more of the facts, such as: did you ever have a ‘meaningful discussion’ about your plans / goals / timeframe /finances with that agent? Did she show you more than one property? Did she offer you any alternatives to choose from or just leave it at that one property? Did you & her discuss agency or representation at all? Regardless, from what you told me so far, you should know that you could still have that discussion with her & review those questions. You could, if you are comfortable with her, have her represent you as a buyer agent even though she was not representing you as such when you saw the house as long as you do not have an accepted contract on that (or any) house yet. If you do have her (or anyone) represent you as a buyer agent, get that representation in writing - get a contract that spells out the terms &
conditions of how you will be represented, what the agent will do on your behalf & (just as important) what they will not do!
Finally, if you want to work with someone else to represent you in the purchase of that house (the one she showed you) you should know that second agent you choose to ‘write up the deal’ stands a good chance of not getting paid! The first agent would, having shown you the house 1st (& recently) have procured you as the buyer for that house - so, she would have a very strong case to collect the full commission offered to the selling agent through what would be called ‘procuring cause’. Now, this only pertains to that particular house (or homes ) that she showed you - open houses do not count. Yet another procedural item you should discuss with the agent you choose to represent you.
