Author: crispin0

The process of buying a home is one of the most emotional journeys you’ll ever take. Other big purchases such as a new car or expensive wedding and honeymoon can also wreak havoc on your emotions – but none is likely to surpass the rollercoaster of emotions that will rise and fall when you purchase a home. You may experience different emotions if you’re purchasing your first home, but even if you’ve gone through the process before, each time is different and you’ll react in different ways.

The rollercoaster of emotions when buying a home may run the gamut of incomparable highs and lows that make you question your decision. If you’ve carefully researched the real estate market such as the most recent comparable sales in the area you want to buy and know the features you’ll compromise on – and those you won’t – you’re probably ready to jump on the home-buying train.

A licensed real estate agent can help you work through emotions that may lead you astray and guide you to the perfect home for you. Excitement is likely the first emotion you’ll feel when you’ve made the decision to purchase a home.

Searching for homes online is a good way to assess what’s out there and the prices you’ll face within certain areas. After the excitement of anticipating home ownership, your excitement may turn to outright fear when you first realize how much debt is involved in home ownership. You may feel overwhelmed at all the information you have to digest and all the real estate buzz words you need to know – especially if you’re a first time home buyer. You’ll likely see many properties before finding one you’ll even consider. When you enter the home search you’ll probably have a good idea about what you want. But, visiting multiple properties can be confusing and you may lose sight of those priorities you set for yourself. You may change your priorities as you proceed. Your realtor will be able to guide you to homes that truly fit your needs, your pocketbook and your price-range. Listen to the realtor and take what he or she says into consideration – especially if she knows your priorities ahead of time.

Stress is another emotion that’s typical of home-buyers. The anticipation of purchasing a home can be much greater than the reality when they come face to face with everything involved. Don’t come to a decision based on stress, feeling overwhelmed and just wanting to get it over with. You may overpay for a home just because your emotions get the best of you and you feel as if you can’t go on unless you get a certain house.

There’s always another house that will make you happy and meet your needs. Perhaps the worst part of buying a home are the emotions you’ll experience when you’ve put in your bid and are waiting to see if you get the home.

Don’t be too hard on yourself if you occasionally let home-buying emotions get the best of you. It’s often the largest purchase you’ll ever make and your realtor should be trusted to lead you to the best deal possible – and one that you’ll feel a great deal of satisfaction about.

When it’s time to sell a house, many homeowners start thinking about sprucing up the place or doing some renovations to get the most out of the sale. While renovations are a good idea, some are more important than others. 

Kitchen and bathroom renovations help a homeowner recoup the investment more than something like putting in new sod or replacing the home’s siding. Some renovations are fairly simple, inexpensive, and are worth doing. Over time, the walls and baseboards in a home can look dull and have marks where the paint has been dinged. An instant renovation that can make the home look up to date and fresh is to paint the rooms in your house that need it. If you have an accent wall in an extremely bold color, you might want to paint anyway, because most potential buyers prefer neutral paints. It helps them be able to imagine themselves living there. The kitchen is one room where you’ll really find that making renovations are worth it. If you have old appliances, you’ll want to update them. If you have a faded looking backsplash, you’ll want to replace it. If it’s not as modern as the ones in newer homes, you’ll want to replace it because an older backsplash detracts from a kitchen’s appeal. Things like new tile look fresh and really spruce up a kitchen. 

Potential buyers also check out the countertops in the kitchen. The most popular of all materials used on countertops is granite. It’s long lasting and will stand up to a lot of wear and tear. If you have old countertops – especially if your home is dated – and you have those old Formica ones, you’ll want to replace them. That doesn’t mean that you have to tear out the cabinets. You don’t want to do that – especially if they’re good ones. You can get granite countertops from a home improvement store and just have it professionally cut and fitted. It’s a lot less expensive than you might think. If your cabinets are in good shape, then you can just spruce them up with some paint or new hardware. In addition to the kitchen, the bathroom is a strong selling point in a house. One that has a stained tub or an outdated vanity doesn’t have much appeal. This is one renovation that will help you sell your home. Put in a new vanity if it needs it and either refinish a stained tub or put in a surround. 

Make sure that you renovate your yard, too. You want plenty of curb appeal so that your home makes a good first impression. This is a renovation that doesn’t have to cost much. You can place some new mulch around trees and shrubs and add colorful flowers in planters on the porch.

Finding the right home and one that truly fits your lifestyle is one of the most important decisions you’ll make. It should fit with your lifestyle and have the right floor plan and style that you’ll love for years to come.

Size is important when considering a home. If you’ve got a large family, they probably won’t be comfortable in a small two-bedroom, but a sprawling ranch-style may not be the best choice either unless it meets other needs – such as enough bathrooms.

Floor plans may vary according to location. For example, if you live in the city, floor plans may range from multi-level brownstones while more suburban settings will give you more outdoor space and room to grow.

Clearly, if you enjoy living in an urban area where you’re close to restaurants, shops and other amenities, you should look for a downtown home that fits your style and your needs.

Growing families may be better off in a country or suburban settings where schools and the neighborhood are important considerations. Think about your pets too. A home with a back yard may suit your needs more than having to get in an elevator each morning to walk the dog.

Do you like to entertain? Then, consider a floor plan that flows easily – not one chopped up so you can’t visit with your guests while in the kitchen. A backyard or patio may also be important so the overflow of people have room to move around.

Consider the layout of your new home more than the décor or fancy finishes. It should flow easily from room to room and be functional for what you love to do. Don’t choose based on great carpet in the living room but look for how welcoming it will seem to guests coming from a kitchen or foyer area.

If you have trouble visualizing a floor plan that will work for you, consider hiring a design professional for guidance. Your real estate agent may also be able to point you in the right direction and help you consider things that aren’t visible to the eye, such as energy costs or Homeowners Association costs.

When considering your home purchase, consider if you’re going to be using your current furniture or buying new furniture that will better fit your floor plan. If you want to use your current furniture, be sure to measure the area to be sure it will fit.

While most of us tend to go over-the-top when it comes to purchasing a home, the price of those fancy features or location usually bring us back to earth. You know what you like, what you can live with and what are absolute deal breakers.

There are many investments that are made in real estate, most which are expected to allow the price of the property to go up.  However, sometimes the value of a property starts to decline. If you have run into a property that is like this, you will want to decide if it is worth investing in.  Distressed property is one of the questions that several ask when investing into real estate.  

If a property is distressed, it means that it has not had the care and attention needed by the previous owners.  Most likely, the home is part of a foreclosure, abandoned home, or other problem and may have not been lived in for a specified amount of time.  Any distressed property will need a lot of attention given to it if you decide to invest in the property.  

Before looking at this type of property, you will want to make sure that it will be worth your investment.  While a distressed property will usually go down thousands of dollars because of the quality, it may not be cheaper.  It will be expected that you put a specific amount of work and money into the home in order to repair it and get it back up to being part of the market.  

If you are able to get an extra loan, have more money, and want to fix up a home, then a distressed property is for you.  However, if you don’t want to put in the extra effort, then finding this type of property may lose you money and comfort in your own home.  You will also need to decide whether you will be able to profit off of the investment in the long run according to the neighborhood, market, and your intentions for using the property.  

While a distressed property can benefit, it will need to fit your goals and your lifestyle in order to be an effective investment.  As long as you have assessed your financial stability and goals and are able to put in the extra money, time and work, you can take a distressed property and turn it into what you want.  This will give the property the dream of moving from rags to riches.

When you sell a home, your real estate agent will let you know what you have a duty to disclose. If you’re selling your home without the assistance of an agent, then you still have to disclose certain issues. Failing to disclose these issues can lead to a lawsuit and sometimes even find you guilty of violating a federal law. You basically have to let any potential buyers know the problems with the house. 

Not problems like a door squeaking when you open it. You have to point out all the major problems that exist or have existed in the past. One big thing is that if you have lead based paint in your home, you are required to notify possible buyers. That’s a federal law. What you have to disclose for other issues is going to depend on the state where the home is located because these disclosure laws do vary. 

If your home is near a fault line, you have to mention that. If it’s in what’s considered a hazard zone for flooding, then you have to note that. If there’s anything coming in the future – like the city is going to take some of the front yard to widen the road in front of the house – you have to share that information. 

The issues that you have to disclose pertain to anything that can harm the buyer or can be destructive to the house. If a home has a checkered past, then you have to give the potential buyer that information in some states. This would be something like a ghost has been rumored to be on the property or there are unexplained happenings. While not all states require this, if someone died in the home, you have to disclose that information. 

The same thing with the roof. If it leaks in spots, you have to tell the potential buyer that – even if it passed inspection, you still have to share that. If you’ve had problems with the electrical wiring, you have to share this information. Damage to the house from termites has to be shared as well. Structural problems like joint cracks, ceiling cracks or foundation cracks have to be shared. Foundation cracks can be extremely expensive to repair as well as be hazardous to the safety of anyone living there. If you’ve had a black mold problem in the house in the past or a problem with pests, then you have to share that information. If there is asbestos, you have to disclose that. If you had a leaky pipe in the walls or a leaky appliance that’s staying with the home, you have to tell potential buyers about that. If you ever had a room flood due to a broken pipe, you have to share that. 

If you have awful neighbors, a lot of neighborhood noise, or you have sex offenders living near you, then in some states you have to disclose this information. A real estate agent can walk you through the legal maze so that you don’t fail to disclose something important.

Anyone in the real estate business knows that potential buyers usually ask a lot of questions. A real estate agent will tell you that you’re going to be asked questions about your home and the shape that it’s in for starters. But there are other questions buyers want to know that for sale by the owner party will need to answer. One of the first questions asked is usually about the neighborhood. Buyers want to know about what kind of neighbors you have and whether it’s a quiet neighborhood. This is a sign that they’re looking for something peaceful as well as safe. 

Potential buyers ask about the safety of the neighborhood and that’s understandable. But the problem is that every neighborhood can have issues. If a kid in the neighborhood throws a rock and accidentally breaks a window, that’s not the kind of information they’re looking for. 

They want to know if the sidewalks are safe, if the streets are safe and if there’s a problem such as criminal activity in the neighborhood. You can set their minds at ease by getting a copy of the crime statistics for your area. These are data tools that are free online at various websites. You just have to input your city and zip code. You can also get a copy of the crime statistics from the police department. They can usually tell you if a neighborhood is in what’s called a hot zone or not – which means that they’ve had to handle calls in that neighborhood repeatedly. It also means that there is a higher rate of crime in a hot zone. But by having the statistics, you can simply give a copy to the potential buyer. If the buyer has children, you can give them statistics to show that there are no sexual offenders living nearby. 

Buyers want to know about the quality of the school district. If you’ve had children in the local school, you can give them that information. But there are also online tools that you can use to give them information about schools based on the school’s performance and test results. This way, buyers can compare the success rate of the schools. People may also want to know what kind of entertainment is available nearby. It can be helpful for you to have this information already gathered. You can get a list from your city’s official website of activities, holiday events, festivals and things offered all year long. Have this to give buyers and make sure you include free events as well as ones where costs may be involved. 

Have a list of all the nearby shopping places as well as restaurants. Include quickest routes to these establishments. Being prepared to answer these questions helps to not only sell your home, but it can also help to sell a buyer in the area as well.

You’ve outgrown the house you’re in and find out you qualify for a mortgage that will let you upsize. Or, your kids have flown the nest and you’re ready to sell the family home and downsize – or, you may be a first-time home-buyer and need help deciding what you want. Whatever the reason for purchasing a home, it’s important that you get a feel for what you want so you don’t spin your wheels and waste time – or end up with something you didn’t really want.

Open houses provide a taste of what your lifestyle would be if you decide to buy something similar. Unless the seller still lives in the house the realtor will often stage the homes with furniture and design touches to help you visualize living there.

Attending open houses provide information that will be useful to you when you make a final decision. You’ll get to explore other neighborhoods, check out schools or amenities you’re interested in, and explore the various floor plans available.

If you’re in the market for a fixer-upper, you’ll want to visit foreclosed or short-sale home listings. Be aware that these homes usually need investments of remodeling, fixing existing problems, or replacing appliances. If you have the time, energy, and money to invest in a fixer-upper, it can be a great investment.

The purpose of an open house is to let people see what’s available in a particular neighborhood and entertain the idea of purchasing. But, even though you may not be looking for a home at this particular time, agents welcome those who are just looking.

Always remain loyal to your own agent. When you attend an open house and sign in, indicate that you already have an agent you’re working with. The agent at the open house will appreciate knowing that information and won’t attempt to solicit you to become his or her client.

You should know the etiquette of attending open houses before you begin your search. For example, you should always sign in and indicate whether you’re already working with a realtor or not. When arriving at the open house, feel free to enter without ringing the doorbell or knocking, but always try to meet the agent. Some will take you through the house and show you special features while others will simply let you pick up a flyer and let you see the home on a self-guided tour.

If someone is still living in the home, respect their belongings. It’s not okay to open medicine cabinets and closets and rifle through their things. Always ask the agent if it’s alright to look inside a closed door.

Everyone knows that you should never sign on the dotted line without reading the contract.  This same term applies to loans.  Signing a loan without knowing the terms and what everything means can be detrimental to your finances, credit and future investments.  Before you sign on the dotted line, make sure that you know these terms and how they will apply to you.  

1. Interest rate- The interest rate is the percentage of your loan that is added on every month.  The percentage will vary according to the economy and will make a difference in your payments. 
2. Fixed Rate- A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.
3. Variable Rate-  A variable rate will change according to the economy and the charts that are stating what the rates should be for interest.  A variable rate usually changes every year and adjusts according to a specific given range of percentages.
4. Principal- The principal is what you will be paying on your actual house.  Whatever you pay on your principal is what you will see in the end as your investment.
5. Escrow- This is similar to a savings account of your loan.  Whatever you put in escrow will accumulate without paying directly into the loan.  At the end of the term you can use it to finish paying off the loan or to invest in another loan.
6. Title- A title will be what you get to your home after it is officially yours, stating that the property belongs to you.
7. Deed- A deed will most often be used as a title for a commercial area.  Instead of giving ownership it shows that the property is leased to the one who is using it as a business.
8. Home Equity- This is a loan or line of credit that you can get for your home.  It will finance up to eight percent of your other loan and get paid back later.  This helps if you want to consolidate loans or invest more into the property.
9. Appraisal- After an inspection of the home is made, an appraisal will be made.  This will be an estimated value of what the home is worth.
10. Equity- This will be the actual amount of the property that you own.  Most likely, it is what is being paid off of your principal amount.

Once you know some of these basic terms, you will be able to expand on your knowledge and find the exact loan that will fit your needs.  These basic definitions will help you in making the right decision for the type of loan that you want.

Most people dream of buying a home and know exactly what they are looking for and what they would like to spend on the mortgage; however, they do not consider several important details.

Along with the hot home-buying market comes heavy competition for the homes, and many are making all-cash offers. But, if you aren’t familiar with all the complexities of purchasing a home, you may have future financial regrets. Here are the top five mistakes that first-time homebuyers often make.

1. They don’t take into account all of their options. Although purchasing a home is often the best financial decision you could make, it doesn’t work for everyone. For example, if you know you’ll only be in the home for a couple of years, it may not make sense to buy after you amortize the closing costs for that time period.
2. They don’t consider costs other than the down payment. Homeowner’s insurance, maintenance, or HOA (Homeowners Association) fees and closing costs may eat up your savings and leave you with no emergency funds.
3. They don’t get a home inspection. A home inspection is no way to cut the costs of buying a home. The defects a home inspector may find far outweighs the price of a home inspector, and you may save thousands of dollars on future repairs.
4. They fully expect their home to appreciate in value. Many home buyers think if they dump their life savings into a home and keep it for a few years, they’ll get a significant increase in the value of their property. While home equity is nice, the home is one of those assets that aren’t very liquid if you need money fast.
5. They don’t consider the debt-to-income ratio before looking for a lender. A lender considers this ratio when looking at your ability to pay for a home. If you’ve accrued too much debt, you may not be approved. Show a history of saving – not getting into debt before you apply for a home mortgage.

(Also, keep a close eye on your credit score before applying with a lender. Even if you have a pre-approval letter, you’re not guaranteed the loan. If your score changes a great deal, you may find out just before closing time that you don’t qualify.)

If you’re a first-time or novice home buyer, it’s imperative that you spend some time with an expert, such as a trusted realtor, before rushing into the home-buying experience. Today, many home buyers rely on websites and may get a false sense of the true values of homes in the area. A great realtor can give you a reality check on home prices, and they keep up with changes in current market values and how the various mortgage companies do business! 

Acting Into Appraisals

Investments, terms for loans, processes, and other parts of real estate can often be overwhelming to someone who hasn’t received a degree in real estate.  If you are looking for definitions and actions behind those definitions, then don’t forget about getting the right appraisals.  This will help you if you are looking for the right market for your home. 

An appraisal consists of a professional opinion that is made about a property.  Included in this opinion are several factors that allow for this statement to be made.  Overall, the appraisal will lead to the conclusion of what the market value is.  If the market price can not be defined easily, then someone can look at the different parts of the property and determine what they believe the market price should be.  Usually, this will be done by an inspector looking at the various mechanics that may have been swept underneath the rug.  

An appraisal is a necessary requirement when one is looking into selling a home or having the property insured or financed.  It may use several external resources and definitions of what market value may include in relation to the opinion being made in order to determine the price value of a home.  When getting an appraisal, you can expect that the estimates will be based on the various factors that are related to the market at the time.  Instead of just examining the parts of the property, an appraiser will also examine the neighborhood and see what everything else is worth in relation to the property.  

By appraising a property, you will know how much the home is worth in relation to your own needs on the property and in relation to everything around it.  By observing the standards that are set both inside and outside, you will have the ability to know when the timing is right to get involved with your piece of real estate.

When selling your home, you might think that you need a real estate agent to do it for you. If you’re not the type of person who is willing to market your home, then that’s probably true – because you will need to advertise that it’s for sale. But if you’re okay with handling this side of selling a home, then you can do it on your own. There’s a lot of power in using the Internet for marketing and by tapping into that, you can get a lot of exposure for your home. It allows you to reach hundreds of buyers rather than just a handful. You can list your home on sites that allow home selling ads and the cost is very minimal. But you don’t want to just create a few ads and let it go at that. It’s a competitive marketplace and you need to make sure your home gets noticed. You want to market on several platforms – including ones that real estate agents use. For example, you can use sites that specifically allow listings from FSBO. Some search engines also have their own real estate listing pages. You can use online classifieds on various selling sites as well as in the online versions of newspapers. Something that can be helpful is to set up a page online specifically dedicated to selling your house. 

You want to use certain keywords to make your home stand out. For example, if you’re in a desirable neighborhood, then you would use keywords associated with that as well as other words people use when they search – such as FSBO, house for sale, good schools, low property tax and other words linked with selling a home. 

If you create a website for selling your home, you’ll want to make sure that you showcase all your home’s features. Use quality photography to get good pictures of the front of your home. Pictures are instrumental in helping potential buyers want to schedule a showing. Take close up photos of the house and the yard in good lighting. Use photos of the inside of the home as well. Make sure the windows let in good lighting so that everything looks clean, bright and welcoming. Stage the interior of the home before you take these photographs. Create a slideshow for the website or use a virtual tour. Some established home selling sites will allow you to add these tools. You may already have some social media platforms and while you can market your home on those, you can create social media sites specifically designed to sell your house. 

Create a blog for the home and blog about what’s great about living in that house and neighborhood. What this does is helps the buyer see that your home isn’t just one of several hundred on the market, but a place that’s loved and that they’ll love, too.