Property Management
Wes Gerstenkorn is a seasoned property manager with over 25 years of experience. I have worked with landlords, tenants, township inspectors, section 8 inspectors, and contractors. I have handled evictions. I currently manage over 50 rental units in Delaware county. My inventory consists of apartments, rowhomes,student rentals and section 8 housing. My goal is to add value to your investment by providing the following services:
Tenant screening: income stability , previous rental history and creditworthiness are a few of the factors that go into the evaluation process.
Rent collection: Receiving your rents in a timely manner is essential.
Handling repairs: A quick response to repair issues keeps tenants happy. I have a group of plumbers, electricians and handymen who respond quickly and keep costs low. Annual township and Section 8 inspections often result in repairs that need to quickly taken care of.
I keep my fees reasonable. These can be discussed when we evaluate your property management needs and expectations.
HUD Foreclosure Properties
HUD offers their homes for sale initially to owner-occupants and then to investors.
Prudential Premier Properties is a registered HUD broker with access to all HUD properties.
These are properties that were initially purchased using FHA financing and then taken back by HUD after foreclosing on the buyer.
Generally speaking, these homes will need major repairs prior to occupancy. They have been vacant for awhile and will not have functioning utilities. They are sold in “as-is” condition and purchaser will pay ALL transfer taxes. Buyers will receive clear title at closing. Investors should be prepared to pay cash or have access to a line of credit. Obtaining conventional financing is possible but challenging.
The bid process is quite simple and done on-line by a registered HUD broker. Buyers will need a cashier’s check for $500 or $1000 when making an offer. They will need to provide proof of funds. If the bid is expected buyers must close within 45 days.
Available HUD properties can viewed on-line at www.hooksvanholm.com
Buyer’s Closing Costs
The costs associated with purchasing a home can be quite mystifying. Here is a quick overview that should be discussed with your Prudential Premier agent and also with your mortgage lender:
Lender Fees: Mortgage companies charge fees for their services. These may include an origination fee (1% of loan amount), discount points, document prep fees and other service fees. These are all negotiable and must be disclosed by your lender.
Title Insurance: You need to insure your investment from claims against previous owners. The cost will increase with the sale price. Prudential Premier Properties has an established business relationship with Professional Land Transfer. Buyers using this insurer can be assured of a smooth transaction.
Transfer Taxes: typically 1% of the selling price.
Homeowners insurance: required by lenders, varies with sale price and credit score.
Real estate taxes and escrows: expect to pay a full years taxes up front, this will reimburse seller for prepaid taxes and provide initial funding for your tax escrow account.
Broker service fee: Our fee is $250 for preparing necessary arrangements for a successful settlement.
Termite inspection: Typically $80-$100
A good rule of thumb is to expect buyers closing costs to be 5-6% of the purchase price.
When considering what to offer for a home, your agent will provide you with a written estimate of anticipated closing costs.
Seller’s Closing Costs
There are a number of expenses associated with the sale of your house. These should be discussed with your Prudential Premier agent. The following is a list of the most common items seen on the HUD-1 settlement sheet:
Sales Commission (negotiable, 4-6 % of selling price)
Transfer Tax (typically one percent of the selling price)
Brokers Service Fee ($250 fee for providing necessary closing documents-negotiable)
Local Township Permit (typically $50-$100, varies by township)
Tax certifications (usually $65 for obtaining proof that all RE taxes have been paid)
Overnight Mail Fee (to ensure that payoff funds arrive in 24 hours)
Negotiable items such as buyers closing costs and home warranties.
Sellers should keep in mind that all mortgages, liens, judgments, lines of credit etc. will need to paid from their settlement and they may incur fees to satisfy and remove these items. Sellers should also anticipate that they may incur repair expenses as a result of home inspections, termite inspections, township inspections and appraisals.
Real estate taxes are pro-rated as of settlement day. Buyers reimburse sellers for taxes paid in advance.
Home Warranty
We recommend that our sellers offer a one year home warranty. This is fantastic product that enhances the marketability of your home, and provides benefits to both the buyer and seller. The American Home Shield warranty can be included with your listing. This should be discussed with your Prudential Premier agent.
The warranty protects buyers from many problems that may occur after settlement. Buyers can avoid the risk of unexpected, expensive repairs at a time when they are ill-prepared to deal with them.
The warranty also provides a layer of protection to the seller during the time of the listing contract. For further details, review the information provided at www.ahswarranty.com
Prudential Premier Properties •
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