Kat Geralis Home Team Wilmington DE Real Estate News Archives

If you are a first-time home buyer, you might be anxious to get in on a good deal for a Wilmington or Newark home. Prices are reasonable, mortgage rates are low, and the homes you see on the market today could be sold tomorrow. Naturally, there is some sense of urgency. You have competition from investors and other home buyers. You might find yourself tempted to limit, or even omit, contingencies from your purchase offer, in the hopes of getting it accepted by the seller. 

The danger in this notion is the fact that a purchase offer is a legal contract. Your contingencies allow you to cancel the offer if certain stipulations are not met. Without contingencies, you have no legal escape from the deal. You could end up on the hook for failing to go through with the purchase, even if the circumstances were beyond your control. It pays to understand contingencies!

Here are the most common home buyer contingencies included in a purchase offer:

1. Financing contingencies. This states that your purchase is conditional upon obtaining a mortgage at suitable terms. You can be specific and identify the mortgage terms that you need. Even if you are pre-approved for your mortgage, it's wise to have a financing contingency, in case something falls through for an unforseen reason prior to closing.

2. Appraisal contingencies. Your mortgage lender will require that the home has sufficient collateral value to cover the mortgage in case of default. If the appraisal falls short of the sale price, your contingency allows you to exit the deal. Otherwise, you could be expected to cover the difference, in cash, between what the bank is willing to lend you, and the sale price of the home.

3. Home inspection contingencies. This allows you to have a third party inspect the home and check for any signs of obvious defects. While sellers are expected to disclose any known issues with the home, there are things that may escape their notice, or their memory. If any significant, undisclosed issues are found by the inspection, the contingency allows you to cancel the deal, or at least negotiate the needed repairs with the seller.

These are very basic examples, and there are a host of contingencies you may wish to use depending on the situation. You may have a contingency that says the deal is subject to the approval of your financial planner, or your attorney. You could have a contingency that is subject to the homeowner association allowing you to have an above-ground pool. Or a contingency subject to the town allowing you to operate a business out of the home. You don't want to go bananas with contingecies, but any key points affecting your ability and desire to purchase the home should be covered.

As your Wilmington and Newark real estate expert, I will guide you through using contingencies and help you write an offer that protects your interests!

There is a lot to know when it comes to home buying! Fortunately, good information is available, and it's free! Attend a free home-buying seminar and learn about home buying in a pressure-free environment. The next one is in Newark on May 11! See the Registration Page for a list of upcoming dates and locations.

Contact me for friendly, knowledgeable help with your home buying questions!

 Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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According to the National Association of Realtors, 2013 could be the best real estate market for home sellers that we've seen in years. Home buyer demand is outpacing the supply of homes for sale in many areas of the country. Great news if you're a home seller - not so much, if you're a home buyer!

Here in Wilmington, we still have a good amount of home inventory, but prices have been increasing. Median home prices during the first quarter 2013 were 21.3% higher than the same period last year. There may be plenty of homes on the market, but as prices rise, fewer of them may be in your price range. And because real estate investors target lower-priced homes that would make profitable rentals, you can find yourself competing with cash buyers in addition to traditional home buyers.

This means that you need to be ready to compete for the home you want to buy. One way to accomplish this is to know what makes a purchase offer appealing to a home seller. I have a few strategies to help you!

1. Have a mortgage approval letter in hand, ready to submit with your purchase offer. An approval letter from your lender declares that your loan application has been processed, verified and approved by mortgage underwriting. It is more binding than a pre-approval or pre-qualification. It's about as close as you can get to being a cash buyer without having your own cash.

One piece of red tape: the home must meet the appraisal guidelines to support the loan. Fortunately, with home prices on the rise, this isn't as daunting as it used to be.

2. Be aware of current market conditions and make your best offer first. If you are up against another buyer for the same home, you may not get a chance to offer more in a second round of negotiation. This doesn't mean you should overpay, however. I can help you determine if the asking price on a home is fair.

3. Keep your contingencies to a minimum. You need to have the right contingencies to protect yourself, but going overboard can cause your offer to appear to be more hassle than it's worth. Make it easy for the home seller to say "yes" to your offer.

4. Be open to the home seller's requests. Sometimes you have to give a little to get a little!

5. Work with an experienced real estate professional who will walk you through the fine points of contingencies and negotiations, and who will put you in a good light with home sellers and their agents.

Buying a home in Newark or Wilmington doesn't have to be stressful! If you are a first-time home buyer, I strongly encourage you to attend a free home-buying seminar so you can immerse yourself in good information. The next one is coming up in Newark on April 20! See the Registration Page for a list of upcoming dates and locations.

Contact me for expert help with your home buying questions!

 Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter     

There is good news for Delaware home sellers - more home buyers will be coming to the market during the next few years. But if you're a first-time home buyer in Delaware, you need to be prepared for competition!

For starters, we are now seeing more first-time home buyers enter the market, after hitting a 4-year slump only a few months ago. Nationally, first-time buyers accounted for 34.5% of all home purchases during February 2013. The "early spring" of the housing market in 2013 was at least partially fueled by first-time buyers looking to get a jump on the market.

They were not alone. Real estate investors, still hungry for aquisitions, claimed an equal share of all home purchases in February - another 34.5%. Investors can be the bane of a first-time home buyer, since investors are usually looking for lower-priced homes, and paying cash.

But the 900-lb gorilla among buyers is perhaps the least expected group - the "boomerang buyers." These buyers are former homeowners who experienced a short sale or a foreclosure during the housing downturn. Many of them have now completed the minimum waiting period and are looking to buy a home again.

To give you some idea of the numbers, USA Today reported that just under 5 million people lost their homes during the housing crisis - and an amazing 70% of them will buy another home as they become eligibile to do so. Based on the timelines of the era against the mortgage waiting period, this translates into 500,000 boomerang buyers becoming eligible for home ownership each year for the next several years.

Why would these former homeowners want to return to home ownership after having a negative experience? Speaking bluntly, renting is no picnic, and home ownership at today's prices and interest rates is a much better deal. USA Today reports that boomerang buyers are anxious to return to the market at the earliest opportunity, while the economics work in their favor.

If you are a first-time home buyer in Delaware, you need to be well-equipped to handle the competition! Find out how to get approved for a mortgage, and learn about the buying process at our FREE first-time home buyer seminars! The next one is in Newark on April 20, 2013! Register here to save your seat!

Always feel welcome to contact me for more information about homes for sale in Wilmington and Newark! I am here to help you with your home ownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter

Most Delaware home buyers are familiar with FICO - the traditional credit scoring model that is used by lenders to determine borrowing risk. FICO has dominated the credit scoring market for the past 20 years, but the new VantageScore system is gaining ground!

Per a recent CNN Money article, VantageScore is now used by 4 of the 5 top mortgage lenders in the country. VantageScore is also used by:

7 of the top 10 financial institutions
6 of the top 10 credit card issuers
4 of the top 10 car loan companies

VantageScores have been around awhile, but have been confusing because the scoring range was different than FICO. The latest version of VantageScore solves this.

Going forward, VantageScore and FICO will have a credit score range of 300 to 850, with 300 as the lowest score and 850 as the best possible score.

There are some differences in the scoring models that could benefit Delaware home buyers. VantageScores will count rent payments, utility bill payments and public records in their computations. This will provide credit scores for consumers with little or no borrowing history, who usually fall through the cracks with FICO.

Another big plus of VantageScore: collection accounts will not hurt your score if the balances are zero.

In other respects, the two scoring models are very similar - and neither one is going to tell you exactly how they come up with your score. Nor is your lender likely to tell you in advance which credit score company they will use in their lending decision. Lenders may use both FICO and VantageScore for a more complete picture of credit risk.

No matter what type of score is used by your lender, paying your obligations on time, and keeping your credit use to a minimum, will strengthen your score!

Understanding how credit scores work can help you get approved for a mortgage, and potentially save you thousands of dollars in mortgage interest. For a complete overview of the home buying process, including how to qualify for a mortgage, join us at our FREE first-time home buyer seminars! The next one is in Newark on April 20, 2013! Register here to save your seat!

Always feel welcome to contact me for more information about homes for sale in Wilmington and Newark! I am here to help you with your home ownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter