Acumen Group Real Estate answering questions from Buyers and Sellers at the Rhode Island Home Show. It was a huge success.

https://www.fdic.gov/consumers/loans/prevention/rescue/images/rescue.pdf

Acumen Group fighting against a second power plant in Burrillville, R.I.

With the winter weather here, it is vital to keep your furnace vents clear of snow during snowstorms, as a blocked vent can lead to a dangerous buildup of carbon monoxide inside your home due to the inability of exhaust gases to properly escape.

𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 𝐭𝐨 𝐫𝐞𝐦𝐞𝐦𝐛𝐞𝐫:

𝐒𝐚𝐟𝐞𝐭𝐲 𝐡𝐚𝐳𝐚𝐫𝐝: A blocked furnace vent can prevent your furnace from functioning properly, potentially causing carbon monoxide to accumulate in your home, which is colorless, odorless, and can be deadly.

𝐑𝐞𝐠𝐮𝐥𝐚𝐫 𝐜𝐡𝐞𝐜𝐤𝐬: During snowy weather, regularly check your outdoor furnace vents for snow buildup and clear them as needed.

𝐇𝐨𝐰 𝐭𝐨 𝐜𝐥𝐞𝐚𝐫: Simply remove snow from around the vent using a shovel or broom.

𝐁𝐞 𝐚𝐰𝐚𝐫𝐞 𝐨𝐟 𝐝𝐫𝐢𝐟𝐭𝐢𝐧𝐠 𝐬𝐧𝐨𝐰: Even if the initial snowfall isn't heavy, drifting snow can still cover your vents.

𝐂𝐚𝐫𝐛𝐨𝐧 𝐦𝐨𝐧𝐨𝐱𝐢𝐝𝐞 𝐝𝐞𝐭𝐞𝐜𝐭𝐨𝐫𝐬: Ensure you have working carbon monoxide detectors installed in your home.

Stay safe everyone !!

Report Mortgage Fraud

Sellers and buyers often don’t understand what constitutes mortgage fraud. They may simply believe they’ve found a great way around the system. However, as a licensed real estate agent, you should know when something is suspicious, and make certain your clients know as well. If you suspect you may somehow be involved (innocently or not) in mortgage fraud, call your lawyer for advice.

Here are a few places where you can report buyers, sellers, other agents, lenders and second lenders that try to commit mortgage fraud:

Federal Bureau of Investigation
Phone: 1-800-CALLFBI (225-5324)
Online Tips

Housing and Urban Development (HUD) Office of Inspector General Hotline
Phone: (800) 347-3735
Fax: (202) 708-4829
E-mail: hotline@hudoig.gov
Address: HUD OIG Hotline (GFI), 451 7th Street, SW, Washington, DC 20410

PreventLoanScams.org
This organization was launched to serve as a nationwide clearinghouse for loan modification scam information on complaints filed, laws and regulations, and enforcement actions.
Phone: 1-888-995-HOPE

Federal Trade Commission (FTC): Complaint Assistant
Phone (for complaints against companies, organizations, or business practices): (877) FTC-HELP
The Federal Trade Commission collects complaints about fraud, companies, business practices, identity theft, and episodes of violence in the media.

Mortgage fraud is against the law, and is a prosecutable crime. No person, business or lender is too big to take down.

Consumer Guide: The Appraisal Process

If you are financing your home purchase, you will likely be required to get a home appraisal as one of the steps between signing and close. Here’s what you should know:

What is an appraisal?

An appraisal is an opinion on a home’s market value that helps a lender ensure the purchase price is in line with the property value. The process is led by a licensed or certified residential appraiser—an independent third party engaged by the lender to provide a professional judgment on the home’s value. Appraisers do not represent the buyer or seller; their sole duty is to come up with a fair and accurate valuation of the property. While all appraisers follow a set of standards, appraisers who are REALTORS® have the added commitment to uphold the REALTOR® Code of Ethics.

Do I have to get an appraisal?

If you are taking out a mortgage on your new home, your lender will usually require you to get an appraisal to help establish the “loan-to-value (“LTV”) ratio,” or the percentage of the home's price that you'll borrow. Higher LTV ratios are riskier investments for the lender, so generally they look for LTV ratios of 80% or less. If you are paying in cash, an appraisal isn’t required, but it can still be useful to get a third-party opinion to make sure you aren’t overpaying. In certain instances, the requirement for an appraisal may even be waived by either the lender or the buyer to make their offer more attractive to a seller.

What does an appraiser look at?

Different appraisers may take different approaches. By referencing databases such as Multiple Listing Services—online platforms that compile home listings in a given market—appraisers can use recently sold properties that have similar characteristics, called “comparables,” to help come up with a reasonable value for your home. They will also look at the home’s condition, recent renovations or improvements, amenities, location, size, and other characteristics. Whatever method an appraiser uses, it must be independent, un-biased, and backed up by evidence.

Do appraisals take place in person?

An appraisal may include an in-person visit, but it is not always required. In some instances, hybrid and desktop appraisals are used where appraisers collect data remotely and speak with reliable third-party sources familiar with the property and surrounding area, such as current or former agents of the comparables being considered.

Is my agent allowed to communicate with the appraiser?

Yes. Your agents and others involved in the transaction are allowed to communicate with the appraiser and provide property information. It is not only unethical, but it is also unlawful for agents to intimidate, persuade, or bribe an appraiser to influence the valuation, and an appraiser may not disclose confidential information at any time.

What happens if the appraised value is different from the purchase price?

A mismatch between a home’s appraised value and the purchase price can impact how much your lender allows you to borrow for your mortgage. You can negotiate to include an appraisal contingency—a condition that the value and purchase price must align in order for the transaction to continue—in your purchase agreement, but an appraisal contingency is not required.

Will I receive a copy of the appraisal?

Yes. The Federal Equal Credit Opportunity Act requires lenders to automatically send you a free copy of home appraisals and all other written valuations on the property after they are completed. However, if you are granted an appraisal waiver by your lender, your lender is not required to send you a copy of the valuation report.

Can I request that an appraiser correct or update the appraisal?

If you believe the appraiser did not consider important information about the property or available comparables, you can request a reconsideration of value (“ROV”) to ask that the appraiser reevaluate their analysis. Your lender will provide instructions on how to initiate an ROV, and your agent can help you gather the appropriate information to complete the request. If you believe an appraiser has reached an inaccurate or biased decision, you can also file a report with your state and federal regulatory agencies using the Appraisal Subcommittee’s Appraisal Complaint National Hotline, or a local nonprofit fair housing organization (find by ZIP code here). Find support and other resources here.

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.

Consumer Guide: Steps Between Signing and Closing on a Home

Once you sign a purchase agreement on your new home, there are still several steps to complete before you can finalize—or “close”—the transaction. While the process differs in each state, here are the basics of what you can expect during the period between signing and closing:

What happens after I sign a purchase agreement?

Once you have signed a purchase agreement, you will enter “escrow,” an arrangement that protects both buyers and sellers during real estate transactions. Escrow means that a third party controls payments between you and the seller in a separate account and will only release the funds once both you and the seller meet the terms of your agreement. An agent who is a REALTOR® can help you navigate this process.

What goes into an escrow account?

Typically, a buyer puts money into the account to show they intend to close on the home, called “earnest money.” This may be a percentage of your purchase price or a set amount. The seller’s property documents will also be held in escrow by a designated person, such as an attorney or another agent. Once you close on the home, your money will typically be applied towards your down payment and other closing costs.

What do I need to do before I can close?

If you are paying for your home over time, you will first and foremost need an approved mortgage loan before closing. Mortgage lenders typically require certain tasks be completed before close, such as a home appraisal and a title search which verifies the seller owns the home. Lenders may also require that you purchase homeowners or other types of insurance. Homeowners insurance is important because it will cover you for unexpected losses at your home, which can help you repair or rebuild after damage, replace your belongings, and/or cover medical expenses if someone is injured on your property. You may also want to consider other types of insurance, such as mortgage, flood, or title insurance, depending on your circumstances. If your down payment is less than 20%, you may be required to have mortgage insurance as well.

What is an appraisal?

A home appraisal is a professional opinion of a home’s value by a licensed or certified residential appraiser that helps the lender ensure the purchase price is in line with the property value. Your purchase agreement might have a “contingency” on an appraisal—a condition that the market value and purchase price must align in order for the transaction to continue. A mismatch between a home’s appraised value and the purchase price could impact how much your lender allows you to borrow for your mortgage. Some lenders also have appraisers verify certain things like chipped paint or hand rails to ensure the home is safe. If you are not using a mortgage and are paying for a home “in cash”—money you currently have available—you still may make your offer contingent on an appraisal or do one independently, but it is not required.

Do I need an inspection?

While not required, some buyers include a home inspection as a contingency in their purchase agreement. An inspection protects you from costly problems you may not have noticed until after moving in. An inspector will look for potential problems throughout the interior and exterior of the home, which could include tests for radon, lead paint and asbestos. Your agent can help you find a trustworthy inspector and determine which type of inspection will work best for you.

How long will all this take, and when can I move in?

These steps may take several weeks or more depending on your situation. Each part of the process operates on its own independent timeline, so the length of the process is influenced by many factors, such as when you schedule home inspections and how long it takes for your mortgage application to be approved.

What happens at close?

You can expect to sign documents, exchange keys, and bring your cash to close—the amount of which can vary depending on your down payment, credits, and other fees for things like the inspection, loan processing, or costs related to purchased insurance policies.

Practices may vary based on state and local law. Consult your real estate professional and/or an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.