Dear Michael: I am looking for a realtor to sell my home. Where do you suggest I begin my search for the most competent real estate agent?
Answer: You can start your search on Zillow.com and Trulia.com. These are my two favorite websites that offer the most comprehensive all-around real estate search. Both these sites also have a very strong online presence and allow the consumer to view each agent’s profile, including past and current sales and reviews from former clients. Once you narrow down your search I suggest you interview 2 agents whose main area of focus is within the area where you are selling your home. Don’t be afraid to ask tough questions. You are hiring a Realtor to sell your biggest asset and while experience and track record is important, there should also be a positive connection with your agent eliminating any doubt as the best person to represent you.
Dear Michael: Can you let me know what are the advantages and/or drawbacks with regards to a Reverse Mortgage? I am getting a lot of mail and phone solicitations about this type of mortgage (maybe because I am turning 62) and wanted to see if this is a viable option for me.
Answer: A reverse mortgage is a loan for senior homeowners who use a portion of the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or is deceased. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage. To be eligible for a reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must be owned free and clear or all existing liens. If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing. Generally, there are no income or credit score requirements for a reverse mortgage.
Dear Michael: I am purchasing a newly-built condo that has just been completed. Is there a reason why my lender wants to have a guarantee from the seller that he has sold 50% of all the units?
Answer: Financing new construction can be tricky because lenders will need to approve both the buyer, as well as the condo complex. Your lender is going to want to make sure that the project is completed according to their specific required standards, and that all of the legal documents and entities have been properly established. Most lenders also have a pre-sale requirement. This helps the lender feel more comfortable with the property as collateral for the loan. Pre-sale requirements can be as high as 50 to 70% of all units sold before they will approve the loan. This is the reason why new construction projects have their own lender onsite; the lender has already established approval of the complex. You may have to consider the in-house lender of choice if you want to get a loan on this condo, unless over 50-70% of the units have been sold.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
