REASONS TO HAVE HOWARD JAFFE, ESQUIRE AS YOUR ADVOCATE IN YOUR RESIDENTIAL TRANSACTION
May 22nd, 2009
Buying a home is the most significant financial commitment most people will make, so much is at stake, that I believe an attorney should be involved in the process from the beginning. Buyers and Sellers are likely to confront a number of complex issues that can be resolved only by an experienced real estate attorney
The usual participants in the real estate process often include a real estate sales person or two, a lender, an appraiser, an inspector and a title insurance company, and possibly a builder and contractor. This generates significant competing interests, as such it is vital to have an attorney before you proceed into what will likely be a highly complicated transaction. It becomes imperative to have the advice of an attorney to protect your interests independent with an undivided duty of loyalty to you. The following are some significant functions provided by me to smooth the home buying and selling process:
NEGOTIATE THE SPECIFIC TERMS OF THE CONTRACT. This is the most critical stage of the negotiating process, because once a contract is signed, Buyers and Sellers are bound by its terms. I explain the terms of the contract and suggest changes to protect your interests.
ENSURE THAT THE OWNER HAS CLEAR TITLE TO THE HOUSE. I guide you to obtain a title search and evaluate the status of the title. If liens or other defects are discovered, I will work with the title company to remediate them through appropriate action.
EVALUATE FINANCING OPTIONS. I can assist a consumer in analyzing the relative merits of various types of financing and the nuances of the various products.
MAKES SURE EVERYONE PLAYS BY THE RULES. As your attorney I attempt to avoid future problems of home ownership by ascertaining that all existing laws have been followed.
SERVE AS AN ADVOCATE AT THE CLOSING. The settlement (closing), which was in the past a straightforward transaction involving a few documents, have, because of the sub prime mortgage failures, become extraordinarily complex involving the generation and execution of as many as several dozen documents. Many of these documents have a substantial impact on the rights and responsibilities of the consumer. A lawyer’s expertise is needed at virtually every stage of the home-buying process, but is particularly crucial at the closing. I can explain each document , review the uniform settlement statement (HUD-1)and tell you exactly where the money is going, as well as negotiate any last minute situations or requests. I ensure that all parties comply with the terms of the listing agreement and real estate sales contract and look for “junk fees” that lenders or other providers attempt to impose. My loyalty is to my clients which can often mean thousands of dollars in savings to you.
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Real Estate Economy Watch
May 14th, 2009
I try to be watchful of unique residential real estate websites for those who use the internet as a means of information gathering. The fact that you are reading my blog would indicate you do use the internet to research real estate!
An independent real estate economics and information company today launched Real Estate Economy Watch (www.realestateconomywatch.com), a new Web site providing insight and intelligence on the residential real estate economy.
From my viewing the site it appears that it has a great deal of analysis, and data. Real estate brokers, agents, builders, lenders, investors and other real estate professionals will find a wealth of information they can use, including real estate trends, the housing crisis, real estate investment, foreclosures, real estate consumers, economic indicators and indicators of the real estate recovery. It is worthwhile to check out the site. Knowledge is power, so use the site for its interesting information, then before you purchase or sell real estate, contact me at Jaffe Real Estate Law.
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Downsizing Your Possessions When You Sell
May 7th, 2009
Recently, at a national home services trade show, I met Michael Ivankovich who operates a very unique service that aids residential sellers called Home Downsizing Consultants which aims to help you move, downsize or close –out your possessions as you ready to move.
The sale of a long time residence (or even a short time) can be very nerve-racking which is why I stress the importance of a real estate attorney in making the legal sides of the process go smooth.
In addition to the legal issues of a move, there is a physical and emotional side of the process as well; the moving and removing of personal possessions in the property. It’s a lengthy process and can be distressing as homeowners decide which mementos to keep and which to discard.
Mr. Ivankovich’s service aims to reduce the stress of the move. His service includes going to the clients’ homes, evaluating and appraising their household items, antiques & collectibles identify hidden treasures, help them understand the value of their personal property, and where best to sell it…before they sell too cheaply. He even handles the packing, and oversees of the move and final clean out.
What is unique to the service is that they are consultants only and do not buy. They give you an “in-home personal evaluation,” where he tells you what your things are worth and then gives you options on how to sell them.
Michael offers a free initial consultation, which in this economy makes at least inquiring about this service a “no brainer”. So after you contact my office for the legal help, call Michael to help your “peace of mind” in valuing, moving, and downsizing your possessions.
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Do I Really Need a Real Estate Lawyer
April 29th, 2009
Many consumers in the residential real estate market ask themselves whether they need an attorney to review their transaction.
I answer that question with a resounding yes as you can see in my website but I noticed on Zillow ( a great residential real estate resource) that they have a thread where the question of “Do I really need a Real Estate Lawyer” is addressed.
You will find that most of the answers are yes! The biggest financial decision of your life should require an attorney who works in real estate.
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Negotiating Commissions with the Realtor
April 22nd, 2009
Many Buyers and Sellers believe that the commission charged by a Realtor is set by statute or regulation. This is not the case. In fact commissions are entirely negotiable and can be quite dependent on your situation. There is no set rate though consumers are often told it is a standard 6% commission rate. This is simply not true. That amount is what they like to customarily charge. However, like everything in your deal, it is negotiable. If you find yourself needing to hire a real estate sales person be sure to clearly set the commission rate. Ask questions such as what happens if you find your own buyer or seller, what is the rate if another broker is involved. At times you can set a sliding scale or even an hourly rate.
Before you sign any listing agreement to sell or a buyers agency agreement to help you find a property consult an attorney ( like me, or me) who are is familiar with these contracts and can work with you to set the lowest commission. Remember, real estate sales is a competitive world so get the best deal!. For another article on this topic click here.
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Debt to Income Ratio=Affordability
April 15th, 2009
We are hearing and reading that home affordability is elevated to record levels, so lets look at what hard numbers, tell us in terms of debt to income ratio.
Recent figures show that the cost of home ownership has fallen 43 percent from the peak in this cycle, with more than half of that due to the decline in home prices and the rest due to lower mortgage rates and increases in income.
What does that mean on a real monthly payment basis, because the contract price is often less important than the actual amount of the check we’re going to write at the end of every month for your mortgage and taxes. How much of your income are you going to spend each month to pay for the house? (Assume that you put 20 percent down on a conforming loan).
In Philadelphia you will now pay 28 percent of your income, down from 36 percent. Historically, a 31 percent debt-to-income ratio on your mortgage was considered fiscally healthy.
So for those of you potential home buyers unsure, waiting for prices to be ever-so-favorable, open your eyes! Prices may fall more, but you’re already in a pretty good place. Now is the time to go for it. There is a great deal of inventory out there and deals to be had!
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1st Time Home Buyers $8,000 tax credit.
April 6th, 2009
For those who are thinking of becoming first time home buyers, now there is great incentive to act.
The American Recovery Reinvestment Act provides an $8,000.00 or 10% of the Sale price ( whichever is less) tax credit provided you make your purchase prior to December 2009.
To qualify you cannot own a Primary Residence in the past 3 years but you can own a 2nd investment home. Your income must be under $75,000.00 (though there are partial credits for those who earn up to $95,000.00) or under $150,000.00 for marrieds.
This is a refundable tax credit, not a deduction, so if your tax liability is under $8,000.00 you will receive a refund of the balance. Check out realtor.org for more information
This makes for an even better time to strike as a Buyer. Interest rates ( as of this post) are under 5% of a 30 year fixed loan.
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Signs that it is a good time to buy?
March 25th, 2009
I am asked constantly as to whether the residential real estate market is finally creeping back. Honestly, without looking at statistics ( since there aren’t many current indicators) it does seem that slowly but surely it is coming back in the Philadelphia region. With interest rates at record lows and stimulus money available for first time home buyer’s it is now a great time for Buyers, if you have the cash and credit, to get a great dea.l Recently channel 6 here in Philadelphia did a nice story that speaks to the upside of being a buyer now.
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Learn a lesson from AIG
March 17th, 2009
President Barack Obama and his top aides expressed outrage at reports that American International Group Inc. (AIG) went ahead with $165 million in bonuses even though the company received more than $170 billion in federal rescue money. Obama directed Treasury Secretary Timothy Geithner to see whether there was any way to retrieve or stop the bonus money. “I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?” Obama said Monday.
I could not agree with President Obama more. Financial institutions seemingly have blatant disregard for how they are to perform the one task they are supposed to do with responsibility… investing money with answer-ability! In my opinion, they lack fiduciary accountability. They find no problem with paying themselves bonuses while their company miserably fails. Worse, they try to justify the bonuses because they have a contract that requires a bonus.
Perhaps if they looked in the mirror for once they would notice they would not even have a base salary if not for the bailout; how they can even attempt to justify paying bonuses to the failures they employ is unconscionable, especially when those employees caused the collapse. Shouldn’t bonuses only be paid for successful performance?
There is a lesson to be learned in the residential real estate world from the disgraceful conduct of AIG and it is this: BE RESPONSIBLE for your financial decisions. If you are about to purchase a house, think long and hard about the affordability. While you are contemplating your decision, hire an attorney who can advise you and guide you so you do not make poor fiduciary choices in a residential purchase. RESPONSIBILITY and AFFORDABILITY will equal PEICE OF MIND and SUCCESS.
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City working with businesses trying to help homebuyers
March 10th, 2009
Finally, a City trying to help those attempting to purchase a home. Philadelphia has implemented a program to aid the sluggish housing market by working with local employers to provide matching contributions for those who work within Philadelphia and wish to live in Philadelphia. The city will provide $5,000.00 to match an employers contribution as part of what is called the Home-Buy- Now program.
It is inspiring to see both government and private employers involved in what is fundamental to our return to economic growth…getting people in to home ownership. Remember though you should have a lawyer guide you through your real estate transaction so go to my website where I can further help you.
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