Why should you hire a REALTOR?

With shows like BravoTV’s Million Dollar Listings New York, Los Angeles and Miami the perspective of a Real Estate Agent or REALTOR is pretty impressive.  Big houses, expensive clothes, fast cars and tons of money on commissions.  Last month, in the Baltimore Metro area the average sold price for a three bedroom townhome was $172,676.00 and for a 3 bedroom single family home was $244,773.00.  Out of 539 transaction of 3 bedroom single family homes sold, 24 were above $500,000.00!  That is only 4%!  

What does that mean?  REALTORS earn about the same as you do!  The difference is that our profession is about providing a home to our clients, or a business location for your growing business.  Like with anything, it’s about the effort you put into your work that will make the difference in your paycheck.  Like when buying an expensive item, such as the newest television or a car, you will do your research but ultimately you will ask the expert.  The expert that has been to the factory where the car or television that is being made.  For a REALTOR is the same BUT BETTER!  Why is it better?  Because the sale of real estate is regulated by the state and federal government for YOUR protection.

In the state of Maryland a REALTOR or Agent, must be licensed and affiliated with a licensed Broker.  Meaning the Agent cannot work on their own.  An Agent has to be affiliated with a company like Long and Foster, Coldwell Banker, ReMax or Berkshire Hathaway HomeService.  There are other real estate brokerage that are smaller that can and will provide the same services as the big national franchises.  The most important aspect when learning this information is that when you hire an Agent you are the Broker’s client, the Agent is a representative of the Broker to help you during your transaction.

For example, if you choose to hire me as your Agent when either buying or selling your home, I will represent you but you are a client of Berkshire Hathaway HomeServices PenFed Realty.  My Broker’s responsibility is to make sure I follow the law and represent you as best as we can.  Both the Agent and the Broker has to take classes in order to renew their license every two years and the Maryland Real Estate Commission oversee the rules and regulations of all real estate transactions in the state of Maryland.  This has been created in order to protect the public of anything and everything that can cause the client to lose money and to make the real estate profession an honest one.

Are the services of the REALTOR free?  If not, who pays for them?  A REALTOR is paid, a great number of times, by the seller.  Sometimes, the buyer pays the REALTOR.  Please understand that there is no law regulating how much you need to pay your REALTOR but you should NEVER EVER pay your REALTOR in advance.  A honest law abiding REALTOR will get paid when the transaction closes.  Meaning, when you get or give keys to the home at settlement.  Some brokerage firms ask for a “broker’s fee” which is typically between $250 up to $500 per transaction which covers the cost of doing business.  Again, this fee is also paid at settlement.  It doesnot matter if you want to see 100 houses and decide you will move out of state, you will NOT PAY ANYTHING UNTIL THE DATE OF SETTLEMENT!

You might ask yourself that if you can see houses for sale in the newspaper or in the Internet, why do you still need the assistance of a REALTOR?  Did you know the average contract is about 30 pages long?  Did you know that you may not be able to do a home inspection if you forgot to tell the seller you wanted to do one?  If you are buying a home, did you know you can ask the seller for closing cost help?  If you are either selling or buying a home do you believe your house is priced correctly?  Are you paying too much for a house?  Could you get a little bit more money if you sell your home now?

All these questions and more are answered by a licensed REALTOR.  We have access to accurate available listings in the state of Maryland.  The REALTOR we will write an offer for the house you want, as well guide you in explaining the contract.  We will make sure we protect you in making sure you have the right to inspections and inform you of any defects inside your future home.  Coordinate the home inspections as well as negotiate any repairs.  We will also assist you to get the house for the best pricing as dictated by the market.

Think about it this way, you own a pizza shop and a friend calls you and asks you to use your oven to cook their frozen pizza.  You are capable to buy or sell your home on your own but wouldn’t you rather hire an expert?

Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeServices PenFed Realty.  To schedule a meeting call direct (410) 350-5848, at her office (410) 464-5500 or via email at nathaliaedmonds@gmail.com.  She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland.

What are four types of different ownership and types of transactions in Real Estate?

Did you know that when buying a home there are four types of different ownership and types of transactions?  They are (1) Standard (2) Short Sale (3) REO/Foreclosure and (4) Auction.

When the ownership is “Standard” it means two things, (1) the person(s) on the title of the property own the property out-right meaning they paid their mortgage in full or have no mortgage; (2) the person(s) on the title are in good standing with their mortgage provider by paying their mortgage on time and the value of the property exceeds the loan amount.  

When dealing directly with the owner when buying a home it tends to be the easiest of all four transactions but like anything involving money, it can be stressful because you are dealing with the emotions of the seller.  The seller might be selling because they are moving to another state, or to live closer to family, might be downsizing or even because their current home is too small and need a bigger one.  They have an attachment because of either good or bad memories.  But it can also be financially beneficial to the buyer, because the seller can be in a position to assist the buyer with the cost of repairs and/or covering some or all closing cost.  These transaction can close between 45 to 60 days depending on what source of fund the buyer uses to buy the home.

A home that is labeled as a Potential Short Sale, the buyer will be dealing not only with the owner but with a Third Party, which is the bank who gave the first mortgage or even the two banks who gave the two mortgages.  There are times that a buyer can deal with THREE banks!  A short sale means the value of the property is lower than the amount of the existing loan.  A mortgage is when a bank lends you money to buy a home with the condition that the home you will be buying will be collateral or guarantee of repayment if you default from paying the loan.  The property is under your name BUT the bank owns the home until the loan is paid in full.  Catch-22 is that in order for the bank to re-sell the house to earn back what they lost, the property must have the same or better value of what the loan was originated for.  So, if your mortgage was for $100,000.00 but the value of the home is $75,000.00, if the bank approves the sale of the house, the house is a short sale, not a “standard” transaction because the bank did not recouped the value of the original loan.  

Short Sales usually happen predominantly because the homeowner can no longer afford the home or they have to relocate but they cannot sell the house at the price of the loan amount because the value of the property is lower.  A Short Sale is for someone that has time to move because it can take up to 60 days to close on the sale.

An REO means Real Estate Owned or also called Foreclosure.  These homes are owned by the bank that gave the mortgage but the owner stopped paying the mortgage and the bank assumed ownership.  Remember, when you get a mortgage on the house, the “real” owner is the bank, not you.  When the owner stopped paying the mortgage, the bank took back the house and the owners moved out.  

The REO/Foreclosed homes are interesting, because you have no idea what is inside unless you look.  These type of homes are sold “As-Is”,  meaning the owner, the bank, will not make any repairs.  For a first time home owner this is very difficult specially if they were approved to get a FHA loan.  In May’s edition we will explain the different types of loans available to buyers.  For this homes the owner must have a good amount of money saved in case there are hidden damages the buyer needs to fixed like a roof leak or structural issues.  A REO/Foreclosed transaction will settle in 30 days up to 45 days.

You can also buy your home through an Auction.  This houses are often sold site-unseen.  The owner will not make any repairs and the highest bidder is the one that gets the home.  These houses come available because the owner didn’t pay the county or city taxes, outstanding water bills and liens against the property.  

Buyers need to be very understanding of these types of ownership and transactions because just because a house is cheap doesn’t mean that you are getting a deal because of the extensive amount of repairs you will need to make in the end.  If you are not an investor with capital for the renovations, a first time homeowner should stay away from REO, Auctions and sometimes Short Sales.

For a detailed home buying presentation please contact Nathalia N. Cruz-Edmonds, REALTOR with the PS International Team of Berkshire Hathaway Homesale Realty by calling her directly at (410) 350-5848 or at the office (410) 583-0400 or via email at nathaliaedmonds@gmail.com.  Please visit our website at www.pitinastucky.com for a list of our current listings.  PS International Team speaks Spanish, English, French and Arabic.

Beautiful buildings in Baltimore City

 

I love walking around Baltimore and learn about the history of the buildings.   This one caught my eye.  Baltimore City Fire Company Engine No. 16.  It was built on 1910.  It is currently owned by Dominion Properties and it has been leased and it is schedule to re-open as a restaurant and micro-brewery this late Spring.  About the building's history, click here.

 

 

I look forward to show you more historic real estate soon!

 

-Nathalia

 

 

Getting ready to buy

Getting Ready to Buy

By:  Nathalia N. Cruz-Edmonds

With Daylight Savings starting on March 8 and the first day of Spring being on March 20th, thoughts of a new beginning start to really take shape.  Thoughts of moving is probably the first one specially because it is easier to move in warm weather than cold and it is easier to change school districts once the school year is over.  But, are you financially ready to complete this desire?

In the United States, having large amounts of cash stacked under the mattress only works in the movies like Scarface.  The reality is that cash needs to be in the bank not only because it is secured from being stolen(*) but because the Government demands it for tax purposes.  If your income is predominantly cash, you must start by opening a checking account and a savings account.  If you have an ITIN number, you are still able to open a bank account.  Usually to open a checking account, you need a government issued ID, and proof of residency whether is a copy of your lease agreement or a bill for cable, phone or utility.  Call your bank for more details.

Another big obstacle that you might be facing is lack of credit.  By definition credit is an arrangement for deferred payment of a loan or purchase.  This loan needs to be paid back, usually in monthly installments, until the balance is paid in full and sometimes you need to pay interest.  In the United States, credit is the second most important item in your financial health.  The easiest way to get credit is with a Secured Credit Card.  This credit card borrows money from an initial deposit you make when opening the account.  You can open this particular credit card with just $300.00, all banks have individual restrictions, therefore, you must call them directly to learn more about their product.  The purpose of this card is for you to use it no more than 15% of your available balance every month.  Meaning, if your available balance is $300.00 you cannot exceed $45.00 in purchases every month and then paid this used balance in full on the day your payment is due.  After a year the bank will return your initial deposit and the secure credit will convert into a regular credit.  The bank will be able to increase your credit and it will be easier to access more credit such as a mortgage!

Other ways of obtaining credit is by buying furniture, opening a credit card a major store like BestBuy, WalMart, Target, Macy’s or buy a car.  Please, do not go crazy.  Too much open credit will lower your credit score and if you do not pay your debts on time as agreed in the contract it will harm your financial credibility for SEVEN YEARS!  This means that once you start making late payments, have too many credits cards with high balances you will not be able to buy a home for SEVEN YEARS even if you paid your until your balances in full.

Finally, the first most important item of your financial health is a savings account!  You will need up to two months rent in order to move to a new place or minimum of $5,000.00 deposit if you are buying a home.  These amounts do not include the cost of moving from one home to the other.  When opening an checking account, make sure you are able to open a savings account.  Every time you get paid you should apply the 80/20 rule.  Ten (10) percent to save, Ten (10) percent to give to charity and Eighty (80) percent to pay your expenses  Having savings will also help you in a time of need such as losing a job due to weather, your car breaking down, or God forbid, paying a medical bill for yourself or a loved one.

Financial freedom is the ultimate goal which can be achieved by buying your home but in order to buy your home you must must have good financial health by having savings and good credit.  There is no better time than now to start!

Coming Soon!  PS International Team of Berkshire Hathaway Homesale Service will be representing the owners of newly remodelled houses in Essex (11 Helena Ave, Essex MD 21221) and in Dundalk.  Information will be soon available on www.pitinastucky.com.  If this is your first time buying a home, you must register to attend the First Time Homeowner Seminar at Southeast CDC on Eastern Avenue.  Visit http://goo.gl/28veRx to learn the next available date and register to attend the seminar.

Nathalia Cruz-Edmonds is a REALTOR with PS International Team of Berkshire Hathaway Homesale Realty and she is also the owner of Clearview Real Estate Management LLC.  To speak to her you can email her at nathaliaedmonds@gmail.com or call her directly at (410) 350-5848 or the office (410) 583-0400.  Visit her website at www.clearviewrem.com.

(*)To learn more about how banks in United States guarantee to secure your money please visit https://www.fdic.gov/deposit/deposits/

Visualizing Success and Financial Freedom

I want to thank #LevoLeague for posting a great quote today.  It's below.  It's about visualizing your future and the importance of it in your life and eventually your actual outcome.

I'm a very visual person but putting in writing my expenses and my income is something that I never thought of doing.  I though of it being constricting.  Like it will suck my creativity out of me!  But I have been listening to message from Perry Hall Baptist Church in regards to Beauty vs Character, (Message Obsessed with Passing Beauty rather than Lasting Character) and in this message the Pastor was talking about how God does everything in order.  He is perfect in whatever he makes and therefore requires order.  Unlike Satan who came to destroy, confuse, steal and murder!

So, I need to correct that.

Being in order will NOT hinder my creativity.  On the contrary, it will stimulate my creativity.  I will  have more time for the things I like.  I will be able to perfect what I know how to do because I will have time to do it better.  I will give my all to each task because I am concentrated.

I'm excited about this journey!  I have a lot of bad habits but with the grace of God and the guidance of the Holy Spirit I will be able to take care of them!

Financial Freedom, here I come for you!

What is Fair Housing? How to Spot a Fair Housing Violation? How to Avoid Discriminating?

Have you ever been searching for an apartment with your kids and due to working nights, you want a third floor apartment because the buildings have three floors but the leasing agent tells you that they only have first floor apartments available?  Or due to not being able to communicate well because you have a strong accent the apartment manager told you there were no homes available?  How about if you practice Islam and when you were wearing your hijab and they sent you to the scariest part of the apartment community?  Are you pregnant and you want a one bedroom apartment but the staff at the apartment community tells you they only have two bedroom apartments?  When you walk the community do you see that the Latinos are in one building, are the Whites in another building and the African American families are on another part of the community?

The United States Federal Government has a law that protects citizens in the United States, regardless of immigration status, of any discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and disability.  This law is called Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended.  Each local and state government may have additional protections.  In the state of Maryland “marital status” and “sexual orientation” are protected classes.

In some instances, owners are allowed, within the law, to discriminate against certain individuals.  Owners of a single family home, that is their primary residence, may reject a tenant for rooms based on sex, marital status and/or sexual orientation.  As well as an owner of a building of five or fewer rental units who occupies one of those units may also reject applicants in the three categories mention above.  Additionally, religious organizations, private clubs, people convicted of manufacture and selling of illegal drugs, communities for people above the age of 55, and owners not renting to families larger than what the fire code dictates.  They can discriminate as well as long as they do it to everyone, in a constant basis and do not violate their own by-laws.

Discrimination against you for seeking a home for sale, rental and financing to purchase a home is illegal. If found to have been discriminated, owners and the person commiting the discriminating offense can be sued and fined millions which may include jail sentence.

If you feel that you have been discriminated against there is help.  Baltimore Neighborhoods Inc is the local non-profit organization that helps promotes justice in housing for all people in the State of Maryland, with the exception of Montgomery County, through fair housing and tenant-landlord programs and public information activities.

If you have any questions, concerns or file a complaint you may contact Baltimore Neighborhoods Inc by visiting their offices located in 2530 N. Charles Street, Baltimore, MD 21218.  Their phone number is (410) 243-6007 or (410) 243-4400.  You can learn more by visiting their website at www.bni-maryland.org.

To learn more about Fair Housing, a federal program governed by the US Department of Housing and Urban Develpment  and submit a complaint you can visit their website http://goo.gl/1BnbN2

The best way to avoid these types of situations is by buying your own home.  If you would like to buy a home please give me a call for a free consultation or meet me in person at the Southeast CDC Home buying workshop in Spanish on Saturday January 17 from 9AM to 4PM.

Nathalia Cruz-Edmonds is a Realtor with PS International Team of Berkshire Hathaway Homesale Realty and she is also the owner of Clearview Real Estate Management LLC.  To speak to her you can email her at nathaliaedmonds@gmail.com or call her at (410) 350-5848.

Safety First! Useful tip when showing homes or when you feel seriously threatened.

A week ago the social site Reddit asked about the most random 911 calls a dispatcher had ever received.  Keith Weisinger had one that most likely saved a life!

The distressed victim had called 911 and called for a PIZZA but when in fact she was asking for help against her abusive and drunk boyfriend.  The dispatcher was quick to understand that she had not made a mistake but in fact called to report her boyfriend to the authorities for being physically abusive to her.

To learn more about the story, click here.

This brings me as to our brokerage procedure that we have when showing homes.  One is to log into a shared document when we have showings and enter the client's car information, as well as to take a picture of the car and get the license plate number.  The other one is to call the office when in distress and ask for "the red folder" and give the address. 

But this idea is even better because it eliminates someone calling a third person when in fact you can do it yourself.

I hope to God no one has to make this type of decision but better be prepared than sorry.  I only pray to remember this when I am in danger.