Friday, March 28, 2014

14 Things to Consider Before Buying a Home

14 Things to Consider Before Buying a Home

When you’re buying a home, it’s easy to let emotions get in the way of reality. “Sometimes we want something so badly, we’re not willing to ask all the questions we should,” says Leslie Levine, author of “Will This Place Ever Feel Like Home?” To make sure your dream home isn’t a mirage, follow these 14 tips:
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1. Visit at various times of day.
The windows that let in so much light during the day may be a peeping Tom’s dream at night. That seemingly quiet residential street may be a noisy, highway-feeder street during morning or evening rush hour. The adjacent school may seem like a nice perk if you’re buying in the summer, but during the school year, daily playground noise and extra traffic may be more than you bargained for.
2. Research recent local news.
You need to look at more than the house: Examine the factors you can’t see. For example, perhaps the municipal water well has high levels of contaminants, or a perhaps a high-voltage power line may soon be coming through your back yard. You can also check with the city or county to see if there are any proposed projects.
3. Talk to neighbors.
How many people in the neighborhood own their homes? What do neighbors say are the pros and cons of the area?
4. Ask if the neighborhood has an association.
“Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” Levine asks. “The fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house.”
5. Quiz the sellers about house problems.
What past problems are the sellers aware of? Even if the issues have been fixed, it’s good to know that the house may be prone to, say, ice dams or water leaks so that you can take preventive measures rather than find out the hard way. If you know that the basement flooding was solved by building up the landscaping in a particular area, you won’t level the ground there.
6. Get a home inspection.
Virtually all houses have defects. Some are obvious, and most are curable. But knowing what needs repair can help you negotiate a lower price — or at least prepare you for costs you’ll soon incur. Strongly consider getting inspections for lead paint, radon and wood-eating pests, too.
7. Get detailed records on past improvements.
This isn’t always possible. But if you’re told the house’s exterior was painted two years ago — and then see a receipt noting the whole project cost just $1,000 — then you’re forewarned that cheaper materials were used and that you may be looking at repainting sooner than you thought.
8. Don’t assume remodeling will be easy.
If you voice your ideas to the sellers, you may glean valuable insights. For instance, perhaps that shower is in an odd location because, when the previous owners remodeled 10 years ago, they discovered a costly structural impediment to putting a shower where it would seem more appropriate.
9. Consider the view.
“So many neighborhoods now have teardowns,” Levine notes. “So look at the two houses on either side of you.” Do the adjacent houses look like they might be candidates for a teardown? Is the next lot empty? Does the neighborhood or town have restrictions about what your prospective neighbors can build there? “They may build some behemoth structure that affects your light or the way your house looks or your view,” Levine says.
10. Ask for utility bills. 
You may adore the Cape Cod architectural style or the high ceilings and glass walls in a modern home, but those winter heating and summer cooling bills may not fit your monthly budget. Ditto for the water bills that come with maintaining a pristine landscape.
11. Pay close attention to taxes.
Don’t just ask about the seller’s most recent tax bill; ask the amounts for several recent tax bills. In some areas, houses are re-appraised — and taxed at higher rates — frequently. That great deal and good investment may not seem quite so grand if the property taxes skyrocket year after year. Look at local news and talk to your Realtor about how taxes are used in this area. In some cities, schools are substantially funded through property taxes, which means you can count on yours increasing regularly.
12. Check with city hall.
Look into the property’s and the neighborhood’s zoning, as well as any potential easements, liens or other restrictions relating to your property. The seller should disclose these facts, but it’s better to be proactive. If you’re using a buyer’s agent, they should be able to help.
13. Reconsider the bells and whistles.
Are you sure you can live with a one-car garage, or a detached garage, or on-street parking? The pool may be a nice bonus, but can you afford the upkeep?
14. Explore the surrounding area.
If you’re new to the area, you may not know that only three blocks away, this pretty neighborhood backs up to a dumpy commercial zone or a less-than-savory part of town. If the home is near an airport, fire station, police station, hospital or railroad track, expect to hear trains, planes or ambulances throughout the day and night. Make sure you’re not too close to an agricultural area that may generate odors or kick up dust or other airborne problems.
Diane Benson Harrington wrote this article.

Thursday, March 27, 2014

Palm Beach Real Estate: The Good,The Bad,The Ugly and the Silver Lining

The Good:

For Sellers: Pricing has jumped YTD by 16%. Demand is up and supply is down. Can you say seller's market (short term). More sellers are no longer underwater and can sell on a break even or positive equity basis.
 

The Bad:

For Buyers: Higher Prices, Limited Inventory, Corporate Cash Buyers and Higher Interest Rates. Need I say more? 

The Ugly:

For Buyers & Sellers : The Fed's decision to scale back bond purchases in light of the ongoing recovery(?) will lead to higher interest rates. As rates go up buyers ability to qualify for financing and purchasing power decreases equating to less demand. For sellers that could mean flat or even deflating prices. Ouch!

The Silver Lining:  

For Buyers & Sellers: Many post crash FHA  mortgages are assumable! As rates rise, assumable rates at 3.25% to 3.75% are a win/win situation, maintaining purchasing power for the buyer and housing demand for the seller.  When Home Shopping make sure your agent does their homework and investigate seller financing options.

Tuesday, March 4, 2014

USE A REALTOR AND PAY ALL THAT COMMISSION???!!


Why Use a Realtor®? 6 Important Reasons

Real estate is a big deal. For most Americans, a home is the most expensive purchase they’ll make in their lifetime. It’s a serious transaction with significant financial and emotional ramifications for the parties involved, and having proper representation is critical.



Today’s buyers and sellers agree. In 2012, a full 89 percent of buyers used a real estate agent, and so did 88 percent of sellers.1

Realtor® representation during a real estate transaction is important for both buyers and sellers. Here are six of the chief reasons:

Fiduciary responsibility. When you work with a Realtor®, their fiduciary responsibility is to you. That means you have an expert who is looking out for your best financial interests, an expert who’s contractually bound to do everything in their power to protect you. That’s big — the value of that commitment cannot be overstated. “For more than 100 years, Realtors® have subscribed to the NAR’s strict Code of Ethics as a condition of membership,” says National Association of Realtors® President Gary Thomas. “Realtors® have the expertise and experience to help sellers protect their investment and help buyers build theirs.”

Complex, ever-changing real estate regulations. Buying or selling a home is not like purchasing a plane ticket. Every home is different, and laws change every year and vary from state to state. Generally speaking, people purchase a new home every 7-10 years, and a lot can — and usually does — change between transactions. Realtors® are immersed in real estate, and they must stay current with all the updates in regulations, laws, contracts and practices. Once you retain your Realtor®, they put that knowledge to work for you.

Help finding the right home, beyond square footage and baths. Browsing online is a terrific way to start a home search — in fact, almost 90 percent of people start their home search online.1 But when it’s time to buy, knowing all the pros and cons of a property can help you make the right decision. Realtors® live and breathe real estate, and they can share information about a home that you wouldn’t otherwise know. For example, they can tell you about the perils of polybutylene piping (a plumbing material that’s prone to bursting), or the concerns with FRT plywood (a roofing material that can spontaneously combust in higher temperatures, like those in attics). Your Realtor® can go beyond the aesthetics and tell you important details about homes you’re considering.

Pricing and selling a home. There are lots of sites where you can view price estimates for your home before you list it for sale, but you take a risk using them. In some markets, online estimates can be off by as much as 35 percent, and they often rely on tax records and data that can be as old as 6-12 months. Realtors® know the local market, have access to the freshest sale data, and can price your house in line with the market to maximize your earnings. In 2012, sellers using an agent got $40,100 more: The median sale price for the 88 percent of sellers who worked with an agent was $215,000, versus a median sale price of $174,900 for the 9 percent of sellers who didn’t use an agent.1

Contracts and negotiations. Finding the right home is the fun part. Then the real work begins.: Today’s contracts can be 50 pages long — not counting addendums and riders. Realtors® can help you navigate these complex documents and craft an attractive offer that makes sense for you. Plus, when it comes to negotiation, your Realtor® is your advocate and can bring an objective voice to a very subjective situation.

Following a code of ethics. When you work with a Realtor®, you’re partnering with a professional who operates according to a strict code of ethics. In place for over 100 years, the Realtor® Code of Ethics ensures that consumers who work with a Realtor® are treated professionally and ethically in all transaction-related matters.

1National Association of REALTORS® 2012