 |
| Buying a Home |
|
| Are Fixer-Uppers For Me ? | Ask About School Districts | Be Careful With Credit |
| Buyer Types | Buyers and Clean Offers | Buyers Get Free Service |
| Buying Down | Buying Fast ! | Buying the First Home |
| Can We Afford To Buy | Compromise When Buying | Considering Your Location |
| Consult a Home Inspector | Dealing With Fixer-Uppers | Do I Buy New or Old |
| Do I Make an Offer | Evaluating Neighborhoods | Financing Fixer-uppers |
| Good-Faith Deposits | House Hunting Notes | House or Condo |
| Location, Location, Location | Look Beneath the Surface | Making an Offer |
| Meeting The Neighbors | Planned Communities | Priced Too High |
| Setting A Price Range | Should I Sell Before I Look? | The Buyers Market |
| The Elements of Location | Think About Your Needs | Timing and Location |
| When Is It Time To Buy A House ? |
|
Are Fixer-Uppers For Me ?  |
|
| Your Realtor® has found a home for you in the perfect location, the price is right, size and structure is good but oh oh! It looks a little rough around the edges. The previous owner hasn't had a chance to give the place a face-lift and you're just not sure. Use your imagination! This is a chance to tap into your creative side and lend your artistic talents to the home. |
|
| Of course, structure and updated heating systems are very important and this home has that going for it. But the colors! Try to imagine it with a fresh coat of paint. The rooms look a little small ? Mirrors and lighting work wonders! |
|
| Perhaps the yard looks a little overgrown. With a little digging and some shrubbery you've got a natural haven right in your own backyard. |
|
| Don't let a few cosmetic rough spots sway you from purchasing what could be the home you imagined. A fixer-upper can be an exciting challenge and chance for you to display your originality and good taste. There's nothing more satisfying than looking at the "before" pictures once you given your place a face-lift. |
|
| Ask About School Districts |
|
| One of the things that greatly affects the market value of property is the quality of life provided by available community resources. Of all these resources, one of the most important is the quality of the local school system. |
|
| Taking a critical look at the local schools and colleges is important not just to the family person looking for a home. Even those who may not have school age children themselves, but are concerned with future value and marketability of a property would be well advised to examine the availability and quality of local schooling. |
|
| Ask your Realtor® for help in determining the location and type of schools in the district. Other factors to consider are: Are the schools physically well maintained? Are the classrooms overcrowded? Is there adequate funding and community support? How many students go on to higher education? Whether you are a concerned parent, or just concerned about the quality of life a community offers all of its citizens, a professional Realtor® can help you with the information you need. |
|
| Be Careful with Credit |
|
| In this age of computer information, very little that we do financially remains unnoticed. If you have just qualified for a mortgage and bought a new home, your credit rating and financial situation is probably pretty healthy. |
|
| That approved home purchase may attract unsolicited offers of credit. Be careful with these! You undoubtedly have stretched yourself a bit financially to afford this new home - you don't want to stretch until you snap! There can be a temptation to charge all sorts of things that you want in settling in to your new home - that new barbecue, patio set, hot tub, carpets etc. etc. |
|
| Don't give in to these tempting purchases if it means running up bills. After all, you purchased your new home to enjoy - not to sit in while you chew your nails and worry about bills! |
|
| Buyer Types |
|
| Basically, there are two types of buyers out there, the ones who think that a Realtors® job is to weed through all the houses that are not in your price range, are too big and need too much upkeep, or just not what they are looking for in a home. The second type of buyers want to see absolutely every house on the market for fear of missing out on their dream home. |
|
| If you have open communication with your Realtor®, then you shouldn't have to go out and look at all the homes on the market. After discussing all your concerns and points of interest in purchasing a home with your Realtor®, and if they've listened carefully to you, giving feedback and making suggestions, then they should be able to compose a good list of homes that fit your needs and pocket book. |
|
| This is the only type of buyer that there should be. A wise one with a good Realtor® on their side to offer guidance and back up their concerns with potential sellers. |
|
| Buyers and Clean Offers |
|
| There are times that you find the perfect house - your dream house - but there is a snag. The owners are asking more for the house than you can pay. It is still worthwhile making an offer and there are ways of increasing the chances that the owners may accept your lower offer. |
|
| The first thing is to minimize any aggravation to the owners. You do this by making a "clean" offer. A clean offer is one in which you don't put conditions or demands on the owners. If the owners are aware of minor repairs needed on the home and have anticipated that they may be asked to do certain things as part of selling their home, you immediately lower the "aggravation level" for the owner. |
|
| Another thing you can do is offer to have the deal close on the date that is most convenient to the owners. Money in their pocket may not be the only motivating factor for the owners. They may be motivated also by the thought of an easy transition out of their present home and on to a new one. |
|
| Your Realtor® can help you with tailoring your offer to appeal to the sellers. |
|
| Buyers Get Free Service |
|
| Most of us are familiar with the saying "You get what you pay for". One of the few times that you will get something of value that YOU don't pay a thing for is the service of a real estate professional when you are buying a home. |
|
| Commission structure is set up in such a way that the seller of the home in fact, pays your Realtors® fees. One on one free expert advice and help is something that is available routinely in no other professional service. |
|
| As professionals we can help you by showing you only the type of home you might be interested in and can afford. We can narrow down the number of houses you must look at before you find something you will be happy with. |
|
| We are also familiar with lending institutions of all kinds and can assist you in finding the financing you need. Hiring a guide to help you find your way through new and unfamiliar territory is a long tradition in our country. |
|
| In our profession we are fortunate to be able to offer that guidance free of charge to buyers! |
|
| Buying Down |
|
| Do you remember a time when your house wasn't big enough for you and your teenager's music! If that is just a memory and you are looking around at a lot more house than you want to clean or maintain, perhaps it is time to "buy down" and find a smaller home that suits your present lifestyle. |
|
| This is a good time to consult two professionals - your financial advisor and your Realtor®. I would suggest that you first contact your Realtor® for an estimate of the selling price of your current home and the approximate purchase price of the type of home you would like to buy. |
|
| Even if you are planning to move to another region, your Realtor® can access the prices in that area through professional connection with other Realtors®. |
|
| Armed with these details, you can then visit your financial planner who can fill you in on tax implications, the change in your financial situation you can expect through supporting a more economical home, and possible ways you can invest the profit you may make by buying down. |
|
| Buying Fast ! |
|
| Buying a house is most likely going to be one of the most powerful financial decisions you will make. It is difficult to make that decision quickly but at times the market may force you to move fast. |
|
| You may find the ideal home for you within the first couple of days of looking. If you delay making an offer you may risk losing the property. This is particularly true if houses are selling rapidly or you have found a recently listed and very desirable house that is likely to appeal to a lot of purchasers. |
|
| You find yourself caught in the classic dilemma of being caught between "a rock and a hard place"! If you delay making the offer you may lose your dream home, but you are frightened of moving too fast and later regretting your decision (referred to as "buyers remorse"). |
|
| This is a good time to sit down and discuss the pros and cons with your Realtor®. It is your Realtor® job - and their future professional reputation is affected by their success! - To place you in a home you are happy in while taking up as little of your time as possible by not showing you unsuitable houses. |
|
| Buying the First Home |
|
| A first-time buyer, while qualifying for the mortgage, often needs more cash for closing or to make up the down payment. |
|
| Some lending institutions, with this in mind, have loan programs that keep these costs as low as possible, but they usually want the first-time buyer to provide 3 to 5 percent of the purchase price from his own funds, rather than from an alternate source such as a family loan or gift. |
|
| Lenders will usually want to examine your bank records over, at least, the last three months and will want you to explain the source of any large, recent deposits. Gifts or family loans won't be included in figuring your personal investment, so if you have funds of this nature in mind when planning the first-time purchase, try to secure that money well in advance of shopping for a mortgage. |
|
| In the case of a gift, be sure that everyone involved understands that's what it is; if its a loan, a clearly outlined plan for repayment, in writing, will avoid unpleasant misunderstandings somewhere down the road. |
|
| Can We Afford To Buy |
|
| Before you start actually going out and looking at homes, it is a good idea to determine what you can afford. It is a disappointing experience to fall in love with a house only to find out that your lender will not approve you for the amount of money you need. It is far better to know in advance what price range of houses to look at. |
|
| The first step in determining how much you can afford to spend is sitting down and taking a look at your income and expenses. As a rule of thumb, your monthly housing cost should not be above about 28% of your pretax income. You will then need to factor in the cost of any other fixed long term monthly payments that you have. |
|
| Ideally the combination of housing and payment costs should not be higher than 35% of your monthly income. Any lender you approach will want to assure themselves that any mortgage they approve for you will be within these guidelines. Insured loans may allow you more latitude in these percentages. |
|
| Once you know how much you can afford in monthly payments ask your Realtor® to calculate approximately how large a mortgage that payment would service. Determine how much money you will use as a down payment (don't use all your cash for the down payment, you will need to pay some closing costs). Add that down payment and mortgage amount together and you will know what price range you are looking at. |
|
| Then -- happy home hunting! |
|
| Compromise When Buying |
|
| As in life, buying a home involves compromise. The buyers usually knows the area of town they want to live in, what type of home is prefered, and what their needs are in that home, such as number of bedrooms, size of rooms, lighting, windows, type of heating, etc. |
|
| But a word to the wise: be open minded and use your imagination when it comes to home buying and try not to overlook possibilities even if it doesn't look exactly as you'd imagined in your mind. |
|
| A discussion of your wants and needs with your Realtor® can assist them in finding the most suitable property for you. For example, let your Realtor® know what it is about the area that appeals to you. Your Realtor® may be able to make suggestions as to other areas, which have the appealing aspects but may be more affordable or accessible. |
|
| How important is the cosmetic look of the home or do you find renovating fun? Don't forget the yard - some people are avid gardeners and other prefers the kind of lawn that comes out of a cement mixer. |
|
| Your Realtor® is an experienced researcher who gathers your information and places it in their "data bank" which is huge. If they have all the pertinent details of your wants and desires in a home, it's pretty much a done deal. Your Realtor® will find you the home you've been dreaming of or at least the home that can become your dream home. |
|
| Considering Your Location |
|
| When considering what is important to you in choosing your new home, give thought to how much location matters to you. |
|
| It is quite possible to find houses that are virtually identical but vary greatly in price strictly because of location. As towns and cities grow, traffic patterns change and beautiful large homes that were once located in quiet suburban areas are now on busy streets. |
|
| If people have small children or pets to consider, they may be very adverse to having a house on a well traveled street. Traffic noise bothers some people while others are totally oblivious to it. If your major concern is, for example, being able to afford a house with 5 bedrooms for a teenage family, you may find the perfect house (big enough and affordable) on a busy street. |
|
| You would then have to decide if having the space you need at the price you want is more important than living on a quieter street. |
|
| Consult a Home Inspector |
|
| You have found the home that is right for you and you are ready to make a deal. The house looks great and you love the neighborhood but before you sign on the dotted line you might want to find out about the "nuts and bolts" of the house. |
|
| Appearance is great but it doesn't really tell you about the structure of the house, whether the wiring is up to date, where the gas line comes in and how to shut it off. These are all things you should know before you close the deal. |
|
| A home inspector can help you with all your questions about the condition of your home and what may need to be repaired. He or she will inspect the structure, wiring and let you know about breakers, gas valves, condition of your roof, water shut off, etc. |
|
| Most sellers allow enough time for the buyer to have the specialists come in and inspect the house in order to have all their questions answered. It may cost you a little for now, but may save you some unpleasant surprises in the future! |
|
| Dealing With Fixer-Uppers |
|
| Have you got a lot of energy and imagination? - If so, you may find a bargain just waiting for you. You may stumble upon a house that has much to offer but needs a little "TLC". |
|
| If you enjoy "hands on" renovating, or are happy with hiring and overseeing contractors, that low-priced, somewhat dismal house you've just seen, may be your dream home in disguise. |
|
| If a house is in a location you like, is structurally sound and is, of course, a bargain! - Don't turn away too fast. Old, smelly carpet can be ripped out of a house in a matter of hours. A house can be scrubbed from top to bottom and repainted in a week. Don't be turned away by the superficial appearance - or odor! |
|
| Stop and take a good look at what a thorough scrubbing, painting and replacing of flooring, fixtures or appliances will do for this property. Electrical,plumbing or structural problems tend to be the most costly to deal with. Make sure you factor the cost of dealing with these into the price of your offer. |
|
| Ask your Realtor® to recommend a qualified home inspector who can truly ascertain if your find is structurally sound. |
|
| Do I Buy New or Old |
|
| The choice of whether to buy a new or an older home tends to be swayed by two very diverse considerations - emotions and finances. |
|
| Some of us love older homes with their sense of history, charm and character and others are only truly happy with something that is brand new and has all the latest conveniences. No advice from outside will sway us from our emotional preferences and we should honor them. If this is to be your home, it should be the type of house you are most comfortable in. |
|
| If, on the other hand, you are looking at the choice of older versus newer with your primary motivation being financial, there are a few things to consider. New homes typically have lower maintenance costs, but that is frequently balanced by a higher purchase price. |
|
| Of course, it is not just the costs of repairs and maintenance that we tend to look at but also the aggravation factor of dealing with them. Older homes can be a source of pride and joy for those of us who are handy and love to restore them but they can be a nightmare for those not so inclined. |
|
| New houses and very charming well built and maintained older homes tend to hold their value better than those houses that are neither new and convenient nor old and charming. Utility costs are one financial concern that can vary dramatically. Unless an older home has had insulation added to it at some point in its history, you can expect to pay much higher utility costs in an older home. |
|
| Ask your Realtor® how much the present owners are paying for their utilities if you are looking at an older home. |
|
| Do I Make an Offer |
|
| You’ve found “The House”. You’re pretty sure you want it, but you’ve never been the type to jump right in. Your Realtor® is telling you that you should make an offer if you really want the house, because someone else has seen it and is interested. |
|
| Gee, your Realtor® always seemed so easygoing, and now you’re being pressured to make a decision. You’re wanting more time and feeling stressed. What’s the best thing to do? Just stop and think for a moment. |
|
| It’s normal to feel uncertainty about making a commitment. If you are really taken with the house, chances are someone else will be, too. Trust your Realtor®. Move as quickly as possible to make your best offer on the house. |
|
| Evaluating Neighborhoods |
|
| Remember that first question you asked your friends when they bought a new home? Your question probably was "Where?" Whether you are a buyer or seller, you are well advised to take a close look at the neighborhood. |
|
| If you are a seller, know that the selling price of your house will be affected, positively or negatively, by the neighborhood it is in. If you are a potential buyer, the neighborhood will not only affect your right to "peaceful enjoyment" of your home but also will play a large part in determining what you would be able to sell for in the future. |
|
| If you have a neighbor who has a "junk yard" in his front yard - expect the selling price of your home to go down. If, however, all your neighbors keep their properties well maintained and landscaped, your possible selling price will increase. |
|
| Noise level will affect the desirability of your neighborhood. If people who yell on the street inhabit the block, rev up noisy motorcycles, and have loud parties, prepare for depressed property prices. This is another area where it is no longer necessarily "buyer beware". |
|
| If you sell your home, knowing that there are noisy parties every night in the house next door, and have not disclosed that fact, you are open to potential legal action. There has been successful legal action due to sellers not disclosing serious problems with neighbors. The buyers are deemed to have a right to "peaceful enjoyment" and hence are to be informed if neighbors are a problem. |
|
| So look before you leap, if you leap into a bad neighborhood, you may not easily be able to pass the house (and the problem!) on to someone else. |
|
| Financing Fixer-uppers |
|
| You've walked into a battered, or just a plain old and "tired" house - you look around and see it magically transformed into exactly the home you want. Perhaps you see yourself and your mate happily working side by side to restore this old beauty. There is just one hitch - the bank doesn't see the same vision! |
|
| You know that the banks will only advance you mortgage funds for a percentage of what the poor old house is worth, as it stands today. Ask your Realtor® if they can recommend a financial institution that will make loans for acquisition and for construction. |
|
| Lenders are concerned that their money will be secured in some way. If the institution could not recover their money by selling the property, should you be unable to meet your obligation, they will not be anxious to do business with you. One way of dealing with this problem would be to obtain whatever mortgage funds you can and then take out a separate construction loan. That loan could perhaps be secured by something other than the house or cosigned by a family member. |
|
| Once your renovation is finished you could have the house reappraised and remortgaged for more money. You could then use those additional funds to pay off your construction mortgage. |
|
| You may find a lender more willing to back you if you convince them that the remodeling will be done immediately upon your taking possession and reassurance from your Realtor® that the remodeling will indeed increase the value of the house. There are times when the location of a house is so undesirable that you could never recoup renovation dollars spent on it. |
|
| Presenting the lender with properly drawn plans and an estimate from a reliable builder (along with a commitment from the builder to do the renovations) may help in obtaining funds. It also may be possible to make an arrangement in which the lender releases funds as you complete each stage of the job. |
|
| Don't give up on that dream home without trying to be creative with the financing - after all "faint heart never won fair maiden"! |
|
| Good-Faith Deposits |
|
| "Good faith" deposits are meant to show that you are serious about an offer to buy. It's intended to show that you're not just "testing the water," and will proceed to the closing should the offer be accepted. How much it should be is flexible, depending, to some extent, on the point you want to make. |
|
| Typically, 2 to 3 percent will suffice for the average home, but you might want to up this to as much as 5 to 10 percent if the property you are after is high-end or your offer is quite a bit lower than the asking price. A larger-than-usual deposit could well influence a favorable response and is worth considering, provided you don't mind tying your money up in case the offer is turned down and there might be a problem getting the deposit back quickly. |
|
| Your offer, if it is low, should provide for an increased deposit upon acceptance and removal of the contingencies. |
|
| House Hunting Notes |
|
| A serious round of house hunting, when you can't seem to find exactly what you're looking for, can leave you with no real idea of what you've seen, at the end of the day. |
|
| Over a period of time they all run together and leave you with only a vague idea of what you've seen and no clear opinion of how to compare one with another. What you need, is a system to help you out and luckily, just such a system exists and has long been used by professional Realtors® who need to keep a close handle on what's available so that they can help you find that perfect home. |
|
| You need a notebook with a separate page for each listing you view. Include the address, price, constuction style, and notes on the interior layout. Add a note about something that particularly caught your eye; a title or nickname that will bring the place alive in your memory later as you review your trip from one place to the next. |
|
| House or Condo |
|
| Choosing a condominium instead of a house may seem an attractive option when you compare purchase price. There's no doubt a condo is the cheaper of the two, but it would be well to ask why this is so, before up-front value is used as the only criteria. Your Realtor® would be quick to point out that buildings depreciate from year to year. This can be as much as 2 to 3% of real, inflation adjusted value, annually. |
|
| Land, however, "appreciates" over time and a lot with a detached house normally has a greater proportion of its value increasing in value as opposed to the condo, in which most of the value is building, thus depreciating from year to year, as a whole. |
|
| Townhouses, with somewhat more property as part of the development, a smaller, but still measurable, difference in purchase price and for the same reason. As a rule, older homes and buildings show less depreciation than new construction. |
|
| Location, Location, Location |
|
| When you are in the market for a new home you need to determine what factors are most appealing to you. Some people like to be in the "thick" of the community, close to activities such as shopping, dining and social centers. Others like to avoid the hustle and bustle and prefer the quiet solitude of country living. |
|
| Before you start looking it's a good idea to know what's going to make you happy with your new purchase, keeping in mind the old cliche of the three most important aspects of real estate: location, location, location! |
|
| If you have a young family with children you should consider what amenities would be attractive to you as a buyer. Some of these may include the location and nearness of schools and church. Others may be whether parks or beaches are close by. And how about the neighborhood? Is it"kid friendly" or is there heavy traffic? |
|
| Older citizens may want a retirement property, which is easily walked, with close proximity to shopping and dining. Perhaps parks are an important factor as well. Noise factor may be important as well and don't forget the view! |
|
| Some people are avid gardeners and prefer the land aspect over the availability of shopping or entertainment. While the solitude of country living is appealing, one should consider the transportation involved and whether this is suitable for your particular lifestyle. |
|
| The location of your investment may be perfect for you at present, however, if you're looking at resale value remember: location, location, and location! |
|
| Look Beneath the Surface |
|
| Homeowners offering their property for sale commonly work hard to display it at its best. Fresh paint, pristine interior and a neatly landscaped, uncluttered yard can justify maximum market value for a home. |
|
| Often, though, these surface conditions are all that separate a home that sells for top dollar and one that is a real bargain, if you're willing to look beneath a grubby, poorly maintained exterior to the value beneath. |
|
| Obviously, a low purchase price must be balanced against the cost of repairs. Paint, elbow grease and your spare time can add a lot of value without much expenditure, but professional repairs to leaky plumbing, bad wiring and the like will quickly turn your "bargain" into an expensive proposition you'd be better off without. |
|
| Similarly, earth moving equipment and land clearing can be capital intensive, but imaginative landscaping techniques applied to a yard that is shabby and raggedly maintained can do wonders for a bargain home's surroundings. |
|
| Learning to look beneath the surface can result in real savings for canny homebuyers. |
|
| Making an Offer |
|
| Okay, you’ve found it: your dream home! Now, how do you actually get it? First, make a prompt offer. |
|
| Okay, you’ve found it: your dream home! Now, how do you actually get it? First, make a prompt offer. |
|
| Whatever you do, if you are sure you want the house do not “sleep on it”. While you are sleeping on it someone else may be putting in an offer and scooping the house of your dreams. |
|
| If your offer has the distinction of being the only one on the table, the sellers will consider it. Even if they don’t like it, they may make an acceptable counter offer. Don’t spend too much time going back and forth with offers and counter offers, though. If another buyer should appear on the scene you’ll lose your advantage. |
|
| If you want that house make the strongest offer you can, ASAP. |
|
| Meeting The Neighbors |
|
| Want to get to know your neighbors? Establish a basis for community action? Make your neighborhood a better place to live? Time for a Block Party! |
|
| Start by getting together with a few people from your area. Make a list of what you’d like in terms of food, music, activities, and ambiance. Delegate coordinating responsibilities: one person looks after rounding up the food, another looks for CD’s, and so on. Set a date and hand out the invitations. |
|
| Aside from the simple fun factor, block parties increase security by letting you know who actually lives in the area. B-parties are also a great place to find potential baby-sitters, lawn mowing talent, and the odd person who wouldn’t mind feeding your cat when you’re away. |
|
| You may also become aware of elderly and disabled residents who are in need of community support. Once you start to have fun with the neighbors, you’re in a position to address community issues in a creative and positive manner. |
|
| Planned Communities |
|
| Home ownership in a planned community carries with it a responsibility for adhering closely to the restrictions imposed by an owner's ssociation. |
|
| As part of the community you must agree to restrictions governing a host of factors dictating everything from what color you paint your house to how you utilize common ground within the community. Where you park and how you exercise your dog may also be controlled, as well as how you maintain your yard and outside decoration. |
|
| For some owners, such regimentation may be out of the question, but for others there is an attraction in not having to put up with a too-individualistic neighbor, or one whose habits are annoying to you. |
|
| Obviously, you will want to know about all of the restrictions that apply, so a thorough perusal of the rules and regulations is "must" before you make an offer on a home in such a community. |
|
| Priced Too High |
|
| You want the house but the asking price is just too high. You can still make an offer. The Realtor® can’t tell you what to offer, but can tell you about the going price for similar properties. |
|
| When the Realtor® presents your offer to the seller, the seller has three options: accept, reject, or counter offer. If the house has just gone on the market or your bid is extremely low, your offer may be rejected. Still, sellers usually factor some negotiating room into the listed price. |
|
| A price that is not negotiable when a home first goes on the market may become softer after several months. Make your best offer and see what happens. |
|
| Setting A Price Range |
|
| After narrowing down the area in which you've chosen to locate, the Realtor® you select to help you find a home will have access to many listings, in a variety of price ranges to choose from. They do not want to waste your time with something you can't manage financially. |
|
| Armed with their knowledge of mortgaging alternatives they may be able advise you on how to swing a purchase you didn't think you could afford by asking for a few details about your assets, debt load and general financial situation. |
|
| They may advise against some the options available, or suggest some that will allow you to buy more than you thought possible. With this information they can help you set a price range in which to look and quickly rule out listings that don't fit the profile. |
|
| With the price range established you can concentrate on each viewing with the confidence of knowing you can afford it, or your agent wouldn't be showing it to you. |
|
| Should I Sell Before I Look ? |
|
| Your house has reached the point where it's bursting at the seams, or there are echoes coming from too many unused bedrooms, their occupants having long ago gone off to start their own families. |
|
| Perhaps your economic situation has changed and you want a new home that reflects that change. Whatever the reason for selling, one of the first questions is "do we sell first, or do we buy first ?''. |
|
| If you immediately go out and look for a house to buy - you may find a house you fall in love with, and then you make an immediate offer to the owner, contingent upon the sale of your home. |
|
| Owners who knows they have a desirable property will frequently not be interested in tying up their sale while waiting for your property to sell. They will be apt to decline your offer in order to be open to offers from others. Sellers would rightfully think that if you were really interested in their property that you would come back with another offer once your house sells. |
|
| In the meantime, they are open to other, possibly better, offers and have lost nothing. You could therefore find your dream home and then see it sold to someone else. Not an enjoyable experience! |
|
| If you sell your house and leave ample time before closing, you will generally have no trouble finding a house to buy. You can literally look at a dozen properties in a day whereas it would be unusual to have a dozen people a day look at the house you are selling. |
|
| The Buyers Market |
|
| When your local paper has been full for months with real estate for sale and nothing seems to be moving, this is probably the best time to buy. This type of market is referred to as a "buyer's market" because there are a large number of homes to choose from and a great deal of people are willing to aid you in making the right decision. |
|
| Almost all sellers are eager, as are of course all the Realtor®, loan officers and other people taking part in the deal. Remember that this trend is just that, a trend which may change without any notice. Like life, real estate runs in a cycle. |
|
| If you've been considering purchasing a house, and the market is soft, this might be the exact time to get in touch with a dependable Realtor® and talk about all the options open to you, communicating your needs, restrictions and price range. |
|
| The Elements of Location |
|
| Once you have decided what price range you want to look at, the next decision is where to look for your next home. One of the strongest determining factors of resale value is location. In terms of your purchase holding, or increasing its value, you are most decidedly better off investing your money in the "worst home in the best neighborhood" rather than the "best home in the worst neighborhood". |
|
| There are many determining factors as to what may make a location desirable or undesirable, some points to look at are: |
|
- is it close enough to schools, churches, shops, restaurants
- is it TOO close to a school, church, shop or restaurant
- is it a high traffic area
- is there pollution from industry
- is there noise from an airport or nearby freeway
- is there public transit
- is it a high crime area
- are there nearby parks and recreation areas
- are there any development plans for the area
|
| Remember that although the sellers needs to disclose to you any defects in the house you buy, in most areas they do not have to bring to your attention the fact that the house is situated close to a freeway, airport or industrial area. |
|
| Ask your Realtor® for information regarding ANYTHING that would make certain locations more or less desirable. |
|
| Think About Your Needs |
|
| Most homes reflect the personalities and interests of the homeowners. When you are looking to purchase a home you need to convey what aspects of your lifestyle you would like reflected in your home. This will provide information to the Realtor®, which they will need to find the perfect property for you. |
|
| For example, artists may need a studio where they get the morning light. Avid gardeners may look for an area, which can become a sunroom or potting area. They may look for outbuildings such as sheds or garages where tools may be stored. Other people love a crackling fire so are looking for a fireplace and perhaps even wood heat. |
|
| People with disabilities may be looking for rancher style homes with easy accessibility for wheelchair ramps. If you're someone who entertains a lot, you may be looking for a formal dining area. |
|
| One crucial consideration is whether or not you have children or are planning to. Families with young children might want a home with a large yard and lots of room for swings, toys and pets. |
|
| Whatever your lifestyle, or wants and desires, the Realtor® can find the perfect place for you. So talk to them and be clear on what the important aspects of a home are - for you! |
|
| Timing and Location |
|
| Location, location, location. You’ve probably heard that before. But how about this: Timing, timing, timing. Location is generally believed to be one of the most important determining features in the value of a property. But a good property in an area, which will increase in value, is an excellent investment. In this scenario, timing is the key factor. |
|
| If you are among the first to invest in a promising area, you take big risks but stand to make big gains. If you don’t have lots of patience or cash reserves, you still want to get involved soon enough to see your property appreciate in value. |
|
| Generally, it’s more prudent to buy property in a trendy area after the trend is firmly established. Areas that are ripe for a “style explosion” have certain general characteristics. |
|
| They border an already prestigious neighborhood or are close to a major source of employment, and the houses in the area are in good shape or attractively priced as “fixer-uppers”. |
|
| When Is It Time To Buy A House ? |
|
| Young couples can live comfortably in a rental apartment or small house initially, but inevitably the prospect of children or other considerations will create a demand for more space. |
|
| At some point, you will feel that it's time to buy a house, but accumulating the cash for a down payment, moving expenses and up-front loan costs may make it seem out of the question. |
|
| But don't despair--home finance is part of a Realtor® training and after discussing your financial picture with them, you may well discover that your prospects for a mortgage are better than you think. If your ability to qualify for a loan in other respects is adequate, creative solutions for a tight initial cash position are available. |
|
| A short-term lease-purchase arrangement with the seller, for example, or perhaps a lender with a program that minimizes the down payment and allows some of the loan costs to be included in the payment schedule. |
|
| Your agent is aware of these and other alternatives. If you're ready to buy your Realtor® can help make it happen! |
|
