Nelson Zide
ERA Key Realty Services | 508-277-7794 | nelson@nelsonzide.com


Posted by Nelson Zide on 10/21/2020

Have you heard the term ďearnest moneyĒ but really arenít sure what it means? Once you have found the perfect home and are all set to make an offer, thereís one more step that you need to take. Thatís to make a deposit on the home you want to buy. This is known as an ďearnest money deposit.Ē  


The Purpose Of The Deposit


The deposit shows the seller that youíre serious about buying the home. Itís a measure that allows the seller to have some faith in you as a buyer that youíre truly moving forward with your decision; youíre ready as a buyer to make the financial commitment. This deposit allows the deal to begin on a solid basis without much question. 


Is The Deposit Required Legally To Buy A Home?


From a sellerís perspective, a deposit keeps a buyer from changing their mind. If there is a significant amount of money involved, the seller sees the deposit as a way to keep the buyer locked in. This makes it easier for sellers to accept an offer. 


How Much Is Expected For An Earnest Money Deposit?


These deposits donít quite have a standard amount. The general rule is that they range from 1% of the home price up to 5%. The more expensive of a home thatís being purchased, the larger the earnest money deposit should be. In some cases, the seller may even ask for a certain amount of a deposit to ensure that buyers are serious. How much money you pay at once is often negotiable. You may be able to pay part of the money at one time and the other part at a later date.


New Construction Can Require Large Deposits


New construction homes can require large earnest money deposits- up to half of the purchase price of the home. This is because the construction costs need to be paid upfront and the bank wants proof that the units being constructed with loan money are being sold to buyers who can pay for the home. 


New construction homes are often customized as well. It would be detrimental to a developer to make special changes to a home only for a buyer to walk away. 


Getting The Deposit Refunded


As with everything in real estate, youíll have a contract. If you donít follow the terms of the contract, you risk losing your earnest money deposit. Two main reasons for buyers to walk away are a flopped home inspection or financing that falls through. Read your contracts carefully. Sellers sometimes state that deposits are nonrefundable after a certain number of days. 


You need to be sure that you are covered as a buyer in the purchase and sales agreement. If you back out of a home purchase without good reason like a contingency included in the agreement) you could be out of luck when it comes to getting your deposit back.    






Tags: Buying a home   finances  
Categories: Uncategorized  


Posted by Nelson Zide on 10/20/2020

This Condo in Westborough, MA recently sold for $165,000. This Garden style home was sold by Nelson Zide - ERA Key Realty Services.


145 Milk St, Westborough, MA 01581

Condo

$171,900
Price
$165,000
Sale Price

4
Rooms
1
Beds
1
Baths
Sought-after top-floor unit facing the rear. We took two tasks off the moving to-do list: the rooms are freshly painted and the carpets were just professionally cleaned. When it comes to outfitting the kitchen with appliances, we have you covered! You will love that you have a brand new electric stove and garbage disposal and that the dishwasher is only 5 years old. Naturally you will want a refrigerator and the seller is offering you a $700 credit at closing to go towards that purchase. The king-sized master bedroom has two mirrored closets and naturally can be customized with shelves and other built-ins. The bathroom's tub and wall got a facelift from Bathfitters. Need more storage for luggage or bins for holiday decor? There is a room in the basement. Great common area with pool, tennis courts, and playground. Convenient location for commuting, shopping, restaurants and more. Assigned parking spot is #15 (you can it see from the unit). Show and sell!






Tags: Real Estate   Condo   Westborough   01581  
Categories: Sold Homes  


Posted by Nelson Zide on 10/20/2020


76 Indian Head Rd, Framingham, MA 01701

Single-Family

$624,900
Price

9
Rooms
3
Beds
3
Baths
Good things do happen in threes: 3 bedrooms, 3 bathrooms and 3 great levels of living space! This house is ready & waiting for you with a great floor plan & updates. Front-to-back living room, dining room opens to the kitchen which leads to a den. This room, which could be more of a sitting room or study, seamlessly transitions to your family room with beautiful wooden vaulted ceilings, skylights & a gas fireplace. Want to entertain outside? A slider to the deck overlooks a big & private patio & good-sized yard. Back inside, you will be happy to know that the bedrooms are all of good size and have more than ample closet space. The master bedroom has its own bathroom that was recently renovated. We have you covered from top to bottom with various rooms & the finished basement is where you will find your home office & den (recently used as teen's bedroom.) Need a home gym? You can easily transform these areas to suit your needs. Curb appeal is here with a brick patio & walkway in front.
Open House
No scheduled Open Houses

Similar Properties





Categories: Price Change  


Posted by Nelson Zide on 10/14/2020


4 Diana, Blackstone, MA 01504

Rental

$1,500
Price

6
Rooms
2
Beds
1
Baths
Beautifully renovated first floor unit offers good-sized rooms with gleaming hardwoods and new crown molding and baseboards. You'll love the modern tile flooring in the kitchen which features granite countertops and updated cabinets. All newer double pane windows with additional storms. The front porch is yours to enjoy on these nice fall days. You will find your laundry hookups and storage area in the basement. Close to park, shops, main roads, and more!
Open House
No scheduled Open Houses






Tags: Real Estate   Rental   Blackstone   01504  
Categories: New Homes  


Posted by Nelson Zide on 10/14/2020

Image by Steve Buissinne from Pixabay

For anyone interested in investment diversification, real estate is one of the preferred holdings in addition to stock and bonds. However, many investors possess neither the cash nor the knowledge and interest to actually buy, sell, rent or manage real property. Such investment involves more than cash; it also requires in-depth market knowledge, and hands-on time, energy and effort.

Investment in a Real Estate Investment Trust (REIT) or a Real Estate Mutual Fund (REMF) are popular alternatives, with specific advantages that are attractive to small investors and to those who seek investment diversity.

Considering an REIT 

While there are three types of Real Estate Investment Trust, Equity REITs are the most common. These entities own and manage revenue-generating property, including shopping malls, office and apartment buildings, hotels and specialty properties. Niche markets today include medical developments, senior and targeted healthcare communities, retirement developments, and multi-use developments, including live-work centers in urban environments.

An REIT may also generate income by purchasing or trading in mortgages and mortgage-backed securities, known as a Mortgage REIT, or through a combination of equity and mortgage holdings, termed a Hybrid REIT. Although shares may be traded publicly or sold privately, an REIT is bound by Internal Revenue Service rules to pay out most of its earnings to its investors. Although an IRS is treated as a corporation and must be managed by a board of directors or a group of trustees, it pays no corporate income tax.

What Are Real Estate Mortgage Funds?

Mutual funds, by definition and practice, pool investment funds to purchase stocks and bonds. Investors purchase shares or units based on the current net asset value (NAV) of the combined assets. Real Estate Mutual Funds invest solely in real estate-related stocks, REITs, or a combination of both. Investing in such a fund offers an investor a low-cost, relatively low-risk option to traditional real estate.

Transaction costs associated with investing in mutual funds are typically minimal, and there is a high probability that the funds will be professionally managed and researched, an advantage for most investors. 

While an REIT only pays dividends, based on the number of shares an investor holds, the REMF carries the expectation of regular dividend payments as well as capital appreciation. 

Because shares of both the REIT and REMF are readily traded, such investments are considered highly liquid, and carry minimal risk. They offer an excellent opportunity for the small or new investor to diversify into the world of real estate, and they are considered by some proponents to be a hedge against inflation. As home values and rental incomes climb, investment dividend payments are likely to increase.

The flip side is that as interest rates rise, corporate costs increase and profitability might be affected.

As with all investments, a decision will depend on personal circumstances, considered judgment, and careful comparison.




Categories: Uncategorized  




Tags