Tag: home buying

When Can I Move In? Understanding Possession Dates in Real Estate

Posted on by Will Sing

One of the most common questions buyers ask is, “When can I move in?” The answer depends on the possession date in your real estate contract. This date determines when you officially take ownership of your new home and can start moving in. Let’s explore three main scenarios for possession dates, helping you understand what to expect and how to plan your move.

1. Possession on the Closing Date

The most straightforward scenario is when your possession date matches the closing date. On this day, you sign all necessary documents, and the property becomes yours. Once your name registers with the title, you officially own the home and can start moving in immediately. This scenario is ideal for many buyers because it allows you to move in as soon as the deal closes.

2. Possession After the Closing Date

Sometimes, sellers need extra time in the property after the sale is finalized. In these cases, the possession date will be set for a few days or weeks after the closing date. For example, if your closing date is January 15th, you might agree to give the sellers two more weeks to move out. During this period, you own the property, but the sellers remain in the home, often paying you rent until they leave. This arrangement, known as a “rent-back” agreement, is common when sellers need more time to relocate.

3. Early Occupancy Before Closing

A less common scenario involves moving into the property before the closing date. While convenient, this option comes with risks. If the transaction falls through, you may have to move out before the deal completes, causing major inconvenience. Additionally, you will likely need to pay rent to the seller for the time spent in the home before closing. Early occupancy is typically reserved for special circumstances and requires careful consideration.

Planning Your Move-In Day

If your possession date is on the closing date, planning your move carefully is essential. Typically, you can expect to receive the keys to your new home by 3 PM, but it’s safer to aim for a 5 PM move-in. The exact time depends on when the title records. I will keep in close contact with the title company and update you promptly. If there’s a chance to get in earlier, I’ll notify you as soon as possible.

Have Questions? I’m Here to Help!

Understanding possession dates is crucial for a smooth transition into your new home. If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

Navigating Real Estate with Tenants? Here’s Why You Need to Know About Estoppels

Posted on by Will Sing

What Is an Estoppel?

If you’re involved in real estate transactions, especially those with multi-family properties or tenants, you’ve likely heard the term “estoppel.” But what exactly is an estoppel, and why is it important in real estate?

An estoppel is a legal document provided by a tenant during a real estate transaction. It outlines key details about the lease agreements, including the tenant’s rights and responsibilities, as well as other relevant information. Think of it as a written confirmation from the tenant that details the terms of the lease, which can be crucial in preventing future disputes.

Key Details Included in an Estoppel

Some key details typically included in an estoppel are:

  • Names of all tenants and occupants in the unit
  • Lease term, including start and end dates
  • Rental payment amount and due dates
  • Security deposit details
  • Responsibility for utilities
  • Ownership of appliances
  • Information about pets
  • Any problems or repairs needed
  • Other agreements made with the landlord

Why Are Estoppels Important?

Estoppels are voluntary, meaning a tenant isn’t required to fill one out. However, they are in the tenant’s best interest because they bring any unwritten rules or expectations to light. This can be particularly important if there are verbal agreements between the tenant and the landlord that aren’t documented in the lease.

For instance, if a tenant has a verbal agreement with the landlord that the landlord will handle lawn maintenance, but the lease doesn’t reflect this, the estoppel provides an opportunity to clarify such arrangements. This helps both the buyer and tenant understand the full scope of their obligations and rights.

The Pros of Using an Estoppel

One of the biggest advantages of using an estoppel is that it helps eliminate potential disputes down the road. By having everything documented, both the buyer and tenant are protected. For the buyer, it’s an added layer of security, ensuring there are no surprises after the deal is closed. It also helps in understanding the tenant’s expectations, which is crucial for maintaining a good landlord-tenant relationship.

Additionally, an estoppel can serve as a defense if a tenant later claims that certain agreements were in place with the previous landlord. With an estoppel in hand, you have written proof of what was agreed upon at the time of purchase.

The Cons of Using an Estoppel

While estoppels offer significant benefits, there are a few potential downsides to consider. First, because they are voluntary, tenants may refuse to fill them out or may delay doing so until after the inspection period. This can be frustrating, especially if you’re trying to finalize the details of your purchase.

Another potential downside is that an estoppel might reveal unfavorable terms or conditions that you weren’t aware of before. While this can be disheartening, it’s better to know these details upfront rather than being blindsided later.

Final Thoughts

In real estate, especially when dealing with properties that have tenants, an estoppel is a valuable tool that can help clarify lease terms and protect both buyers and tenants. While there are some limitations to what an estoppel can accomplish, its ability to document and confirm lease details makes it a crucial element in many transactions.

If you’ve encountered estoppels in your own transactions or have any tips to share, I’d love to hear about your experiences in the comments below. If you found this post helpful, be sure to check out the full video on my YouTube channel: Avoid These Real Estate Mistakes: The Truth About Estoppel. And, of course, don’t forget to like, subscribe, and share this content if you think it could help others navigate their real estate journeys!

Connect with me on YouTube, Instagram, or Facebook for more insights into real estate. If you’re looking for personalized advice, feel free to schedule a free strategy session here. Don’t forget to grab your free Homebuyer’s Guide here to make your real estate journey even smoother!

Disclaimer: Please note, I am not a lawyer. The information provided in this blog post is based on my experience as a real estate professional and is intended for educational purposes only. For legal advice, please consult a qualified attorney.

Opt-out of mortgage trigger calls

Posted on by Alyssa Starelli
SEEKING LENDING? Listen Up!

After a mortgage credit inquiry, buyers receive 50-80 calls within 24 hours, with “I’ve got a better deal for you!, call me”. It’s easy to opt out, which should stop trigger leads and pre-screened offers. This process can take a few days (up to 5 business days), so if your credit report has already been pulled, this will not block offers immediately.

You can opt out of pre-screened offers for 5 years (or permanently) on the web or by phone. On the Web: https://www.optoutprescreen.com/ which is a joint venture among the three national credit bureaus to allow consumers to control pre-screened offers. Or you can do it by phone: 1-888-5-OPT-OUT. You can also add your number to the Do Not Call List, since trigger leads are supposed to be scrubbed against the National Do Not Call list. On the Web: www.donotcall.gov or by phone: 1-888-382-1222.

I want to thank my all-time favorite mortgage broker, Tristen Hunt, for writing and providing the above information. If you’re seeking a new loan in this busy market she is the one to call.  Then, call me!

Tristen Hunt NMLS # 502222

Mortgage Broker | Vantage Mortgage Brokers

Mobile: 503-515-6142

Email: tristen@vantagemortgagegroup.com

Website: www.VantageMortgageBrokers.com

Address: 17040 Pilkington Rd. Ste 300, Lake Oswego, OR 97035

 

The Importance Of Getting Pre-Approved | Did You Know?

Posted on by Karim Alaeddine

Hey there, I’m Karim Alaeddine, Principal Broker at Living Room Realty.

Today, we’re diving into an essential step in your home buying journey, something you need to do before you even begin your search, this is getting a pre-approval letter.

So, why is this step so crucial, why does this step need to happen, and how does it serve you to get your ducks in a row now?

 

Why Is It So Important?

Imagine this…. you’ve found your dream home, the amazing kitchen, the cozy fireplace, a perfect floor plan, everything you’ve been dreaming of…..

But hold on! Before you can make an offer, the seller wants to know if you’re financially capable of buying their home. This is where the pre-approval letter comes in.

A pre-approval letter is like your passport to the world of home buying. It shows sellers that you’re serious and financially prepared to make an offer. Without it, you’re essentially saying to the sellers “just trust me… i got this.” Sellers want assurances that their prospective buyer can and will follow through.

Clarity & Confidence

But it’s not just about impressing sellers. A pre-approval letter also gives you clarity and confidence in your home buying journey. It helps you understand your budget, set realistic expectations, and focus your search on homes you can actually afford.

By getting pre-approved, you’ll save yourself time and frustration by avoiding homes that are out of your price range. Plus, when you do find the perfect home, you’ll be ready to make a confident offer in a timely manner, knowing that you’re already approved for financing.

So, before you start browsing listings and scheduling showings, take the time to get pre-approved. It’s a small step that can make a huge difference in your home buying journey. You will be thanking yourself later.

 

Make A Move

Are you ready to make a move? Call your agent today. We would love to help you find your next Living Room.

 

Did You Know?

Ready to level up your home buying knowledge? Delve into our “Did You Know?” series where we unpack essentials of the real estate process. From decoding home inspections to demystifying mortgages, we’re here to make your journey seamless. Explore more insightful tips tailored for your home buying adventure. Let’s make your real estate dreams a reality!

Seller Credit vs Price Reduction – Which is right for you?

Posted on by Marissa Sainz

I get a lot of questions when a buyer or seller is negotiating a price reduction vs a credit. These two options look very similar for a seller, but can be very different for a buyer.  Let’s use the example of a $500,000 house for sale.

A price reduction is the seller lowering the price they will accept on their home for a buyer. For example they will accept $490,000 instead of $500,000.  For the seller this reduction takes away from the net proceeds they will receive at closing.

For a buyer this reduction will reduce their monthly mortgage payment.  The amount will vary depending on interest rate.  Buyers that are sensitive to their monthly mortgage payment may choose this route.

A seller credit is the seller offering to pay for a portion of a buyer’s closing costs.  For example they accept the full sale price of $500,000 and will contribute $10,000 towards the buyer’s closing costs.  For the seller this reduction takes away from the net proceeds they will receive at closing.

For a buyer this credit will reduce the amount of cash they have to bring in at closing.  If a buyer’s down payment is $50,000 and their lender/title/pre-paid closing costs are $10,000 they will only need to bring in $50,000 instead of $60,000 at closing. Buyers that would like to keep cash on hand after closing (most of the time for repairs or updates) may choose this route.

Have more questions? Reach out at marissa@livingroomre.com

Stop Wondering What Your Budget Is & Get Pre-Approved!

Posted on by Carrie Struss

I have met with three new buyers this week all just starting out on their home buying journey. They all want to know, where do we start??

In the Portland market and many markets throughout the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search.

Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantagesof working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Please reach out and contact me today to get you in touch with my preferred lender!

Bottom Line

Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.