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Here's Why You Should Totally Snoop When House Hunting
- Ah, house hunting. It may technically be shopping, but it can feel more like breaking and entering. Even though you know the seller wants you there, does anyone really want you traipsing through their bedroom? Or looking through their closet? Or digging around in their basement? Awwwwkward.But here's something that should feel weirder: buying a home without knowing absolutely everything you can about it. The only way to avoid the second awkwardness is to face the first head on. When you're house hunting, don't think of poking around in someone else's home as nosiness. It's a smart, must-do investigation.
Here are six things you should absolutely do when viewing a home — no matter how awkward it feels.
1. Soak in the Bathroom
Home buyers tend to peer into the bathroom for as long as they'd want a stranger to examine theirs: not long at all. But this isn't the time to be quick. Josh Myler, a REALTOR® with The Agency in Los Angeles, encourages buyers to take a long, close perusal of the water closet.
Flush the toilet to find any backups in the system, and turn on the faucets to check the water pressure. Besides being annoying during showers, low pressure can indicate problems with the plumbing.
"Water pressure can really cause headaches down the line if you don't dig in before you make an offer," says Myler.
But always, always check with your agent first. In some markets, or with some sellers, it's considered impolite to actually use the toilet.
Or, if the owners already have moved, the water may be turned off. And that could be, ummm, awkward.
2. Dig Around in the Closets
OK, don't actually go through the owner's stuff, but take a close look to assess how much storage space there is, and decide if it'll meet your needs.
"People don't like to open closets because they think it's rude, but if you're buying the house, it's one of the biggest investments," says Myler. "You want to make sure there's enough room for everything you need."
Before you step foot in a single house, take inventory of your current storage space, and know how much you'd like your next home to have.
3. Poke Around the Attic and Basement
Don't just stick your head inside and call it good. Give the basement and attic a thorough investigation. If there are belongings piled against the wall, request they be moved before a second viewing.
"I get very nervous when I see a packed basement and stuff against the wall," says Kyle Alfriend, lead agent of The Alfriend Group in Dublin, Ohio.
That's because hidden walls and ceilings can conceal water damage, including peeling or discolored paint, rotting wooden accents, or a white, chalky substance on the wall, which indicates water intrusion.
As for the attic, a quick glance should tell you what you need to know. Are there rat droppings? Molding wood? Or is it generally clean, even if dusty? BYO flashlight for an enlightened examination.
4. Meet the Neighbors
Sorry, introverts. There's no better way to get a read on the neighborhood than by directly asking the actual neighbors. Pop by their home and strike up a chat.
It's a twofer: Not only might you get valuable information about the area — from the noisy bar on the street behind you to eager babysitters on the block — but paying attention to their attitude speaks volumes about your potential relationship with your maybe-neighbors. Do they seem excited to meet you? Or are they standoffish?
"It's not what they answer, but how they answer that will be very illuminating," says Myler.
5. Be an Amateur Investigator
Anything seem fishy? Take your suspicions to city hall. If there are additions, pull the permits or get help from your buyer's agent. You certainly don't want to be responsible for tearing out that beautiful porch because the previous owners didn't comply with the law.
Also, check the certificate of occupancy and any easements — especially if you're hoping to make any major changes. Both are public record. An easement simply gives someone the right to use property they don't own. Often that other someone is your local government that needs it for public services, such as water.
Myler remembers a friend who purchased a home with the goal of building a pool, only to find out an easement for the sewer line cut directly through the middle of the yard.
Another common use is a shared driveway, such as when one homeowner has to pass through another homeowner's property to reach their home.
6. Ask Questions
If your sleuthing finds something concerning, don't panic.
"Many times, there's stuff that, at first glance, is real scary," says Alfriend. "Often people will write off a house without digging into it, but there's usually a perfectly logical, understandable reason, and it's not a problem."
Say you find a gaping hole in the drywall. It might be a huge red flag — or they might have rambunctious kids they absolutely plan to clean up after.
"Boys can wrestle and put a foot through the thing, and it's 30 minutes before a showing," Alfriend says. There's not much the sellers can do at that point.
With any problem, your first step is simple: Ask.
Visit houselogic.com for more articles like this.
Copyright 2016 NATIONAL ASSOCIATION OF REALTORS®
Showing posts with label buying a home. Show all posts
Showing posts with label buying a home. Show all posts
Wednesday, May 18, 2016
Here's Why You Should Totally Snoop When House Hunting
Wednesday, July 15, 2015
The Details
of Making an Offer on a Home
With financing in place, a great home located and
preparation for placing
an offer beginning, the often lengthy process of purchasing a new home
approaches its successful completion. The remaining steps are legally important
for protecting your own interests and ensuring that your dream home won’t become
a nightmare following your purchase. From contingencies for issues that present
themselves following an accepted offer to price negotiation, ensuring a
fundamentally sound offer on a piece of property is the best way to complete a
successful acquisition of a new home. So, what are the most important details
to keep in mind when drafting an offer on the perfect home for your needs? With
the help of an experienced real estate agent, you can submit an offer with full
confidence, knowing that you’re legally protected throughout the final
purchasing procedures, and by remembering to study the following details, your
offer will have a great chance of kicking off a successful end to your home
hunt.
With the help of your
real estate agent, performing a comparative market analysis (CMA) is a great
way to find an estimate of the fair market value of the property upon which
you’ve got your eye.
According to Front
Door, there isn’t a more reliable, widely used mathematical method of
estimating a property’s true value than a CMA. By distilling all of the most
important characteristics of your potential property, including bedrooms,
bathrooms and square footage, into quantifiable statistics, you’ll have a much
clearer indication of the true value of the property before submitting an
offer. Instead of focusing on asking price, use comparable properties that have
recently sold in the area to determine an offer. Luckily for inexperienced
buyers, real estate agents have access to all of the databases and records
needed to get incredibly accurate home value estimates while protecting tight
budgets.
Take a look at the
market in the area to have a better idea of market conditions. If you’re in a
buyer’s market, big savings could be available when making an offer.
Speaking of comparable properties, studying market
conditions before putting in an offer is essential to getting the best value
possible. In a seller’s market, you’re likely to find competition on great
properties. As a result contingencies and concessions may need to be eliminated
in order to make your offer more favorable. Conversely, buyer’s markets are
great to see when you’re making a home purchase. In this case, housing inventory
outweighs buyer interest, and you’re much more likely to have offers below list
price accepted without a bidding war. Ask your real estate agent how to shape
your offer to match market conditions, and you may find savings that you didn’t
know were possible.
Each seller is
different, so there is no ‘one-size fits all’ solution to creating a successful
offer. Depend on the experience of your real estate agent to make sure your
offer shines, and never attempt to make an offer alone.
According to Fox
News, gathering available information on the seller of your potential home
could be a great start to making a sweet offer. For example, if a property
recently held an estate sale, chances are high that a quick closing may be more
important than meeting list price. In any scenario, doing some detective work
on a property could help you guide your offer more precisely. Avoid insulting
homeowners with low-ball offers and excess criticism on a property to which
they may have sentimental attachment. Since sellers have no obligation to take
the lowest offer on the table, details are important to improving your chances.
Again, the experience of real estate agents is invaluable to getting the
property of your dreams.
Keep emotions out of
the negotiating process. If the seller has unrealistic expectations of the
value of their home, don’t hesitate to walk away from a deal instead of
overpaying for a piece of property.
After an exhausting home search, it can be difficult to
separate emotions from business when putting in an offer on a property. While
some negotiation is almost always necessary with initial offers, remember your
budgetary restrictions before purchasing a home. While it can be difficult to
commit to reentering the housing market after deciding on a property,
overpaying for a home is never a good idea. If the seller of the home refuses
to negotiate to fair market value, walk away, and depend on the expertise of
your real estate agent to find a more realistic option that won’t be a bad
investment for the future.
Peter J. is a writer whose interests include central Texas
real estate, studying the stars and couponing.
Sources:
Tuesday, July 14, 2015
Choosing a Home Inspector
Among the contingencies written into your offer for your
dream home, none are more important than the home inspection clause. With this,
you are legally permitted to obtain a complete inspection of the property to
check for any unknown problems that could end up busting your budget. From
foundation issues to outdated, unsafe electrical systems, issues discovered
during a home inspection could save you a ton of time and money when deciding
whether to acquire a new piece of property. With this in mind, don’t trust just
anyone to give you an all-clear on the condition of a property. Just as you
took the time to find the perfect property for your needs, you should put
proper effort into ensuring the qualifications and trustworthiness of a home
inspector before trusting his or her word on the condition of your potential
home. So, where do you start when searching for a great home inspector? Let’s
take a look at some methods for ensuring that your inspector is the best
available for your needs.
In the best case
scenario, you’ll search for an inspector before submitting an offer on a home.
By doing so beforehand, you can take your time when meeting inspectors and
avoid restrictive time constraints.
With your offer on a home accepted, the clock begins ticking
on your period to get a home inspection. With tight deadlines and high pressure
come less opportunities to interview and analyze home inspector options.
According to Front
Door, finding an inspector before locating and offering on your dream
property is the best way to remove the pressure to hire the first inspector
that comes your way. Taking the time to find the best inspector to fit your
needs is definitely a worthy venture, as his or her report on the condition of
your home could be your last opportunity to find potential problems before
signing a purchase contract on the property.
For a list of
experienced inspectors with which to begin your search, depend on the knowledge
of your real estate agent, as well as friends and family, to avoid wasting time
with unqualified, unprofessional options.
In addition to various online home inspector review
databases, home inspectors depend a great deal on word-of-mouth advertising to
spread the reviews of their services. If you’ve got family or friends who’ve
recently purchased a home in the area, consulting with them about their home
inspection experience could be a great way to begin the hunt for the inspector
you need. If not, your real estate agent should have working knowledge of a few
inspectors in the area with good qualifications and customer feedback. In any
case, depending on your home searching team is a great way to weed out
inspectors who aren’t good for your particular needs.
When interviewing
potential inspectors, ask plenty of questions. The answers you receive should
give you a better idea of the qualifications of each home inspector.
According to US
News, there are seven important questions that you should ask each and
every home inspector. Professional organization affiliation, professional
background, years of experience and training, the average length of
inspections, the main aspects of inspection, whether or not you can attend the
inspection (this shouldn’t be a problem) and the type of report they provide
are all major topics of discussion for interviewing professional home inspectors.
If you’ve got other questions relating to your specific home search, don’t
hesitate to let them know. Sometimes, the way a question is answered is just as
revealing as the answer itself.
Protect your own
interests by ensuring that your home inspector carries an errors and omissions
(E&O) insurance policy. If there’s a problem with your inspection, you’ll
probably need this policy to recoup potential losses.
Even the very best of home inspection professionals can make
mistakes, so ensuring an insurance policy is in place to protect you in the
event of an oversight is an important detail to consider. If a major issue is
discovered after moving into your new home, an E&O insurance policy will
allow you to get the costs needed to correct the problem without dealing with
the possibility of a bankrupted inspector and a lawsuit. Having protection when
making an investment as large as a new home is never a bad idea, so taking the
extra time to ensure that a policy is in place could pay huge dividends in the
future. If you’ve got any other questions or concerns regarding finding the
perfect home inspector for your needs, depend on the knowledge and expertise of
your real estate agent to guide you through.
Chris G. writes about Leander homes for
sale and Texas politics.
Sources:
http://money.usnews.com/money/blogs/my-money/2014/04/27/7-questions-to-ask-when-choosing-a-home-inspector
Thursday, March 05, 2015
Negotiate Your Best House Buy
Negotiate Your Best House Buy
Article From BuyAndSell.HouseLogic.com
By: G. M. Filisko
Published: June 04, 2010
Published: June 04, 2010
Keep your emotions in check and your eyes on
the goal, and you'll pay less when purchasing a home.
Buying a home can be emotional, but
negotiating the price shouldn't be. The key to saving money when purchasing a
home is sticking to a plan during the turbulence of high-stakes negotiations. A
real estate agent who represents you can guide you and offer you advice, but
you are the one who must make the final decision during each round of offers
and counter offers.
Buying a home can be emotional, but
negotiating the price shouldn't be. The key to saving money when purchasing a
home is sticking to a plan during the turbulence of high-stakes negotiations. A
real estate agent who represents you can guide you and offer you advice, but
you are the one who must make the final decision during each round of offers
and counter offers.
Here
are six tips for negotiating the best price on a home.
1. Get prequalified for a mortgage
Getting prequalified for a mortgage proves to
sellers that you're serious about buying and capable of affording their home.
That will push you to the head of the pack when sellers choose among offers;
they'll go with buyers who are a sure financial bet, not those whose financing
could flop.
2. Ask questions
Ask
your agent for information to help you understand the sellers' financial
position and motivation. Are they facing foreclosure or a short sale? Have they
already purchased a home or relocated, which may make them eager to accept a
lower price to avoid paying two mortgages? Has the home been on the market for
a long time, or was it just listed? Have there been other offers? If so, why
did they fall through? The more signs that sellers are eager to sell, the lower
your offer can reasonably go.
3. Work back from a final price to determine your initial offer
Know
in advance the most you're willing to pay, and with your agent work back from
that number to determine your initial offer, which can set the tone for the
entire negotiation. A too-low bid may offend sellers emotionally invested in
the sales price; a too-high bid may lead you to spend more than necessary to
close the sale.
Work with your agent to evaluate the sellers' motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.
Work with your agent to evaluate the sellers' motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.
4. Avoid contingencies
Sellers favor offers that leave little to
chance. Keep your bid free of complicated contingencies, such as making the
purchase conditional on the sale of your current home. Do keep contingencies
for mortgage approval, home inspection, and environmental checks typical in
your area, like radon.
5. Remain unemotional
Buying a home is a business transaction, and
treating it that way helps you save money. Consider any movement by the sellers,
however slight, a sign of interest, and keep negotiating.
Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won't budge, make it clear you're willing to walk away; they may get nervous and accept your offer.
Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won't budge, make it clear you're willing to walk away; they may get nervous and accept your offer.
6. Don't let competition change your plan
Great homes and those competitively priced can
draw multiple offers in any market. Don't let competition propel you to go beyond
your predetermined price or agree to concessions--such as waiving an
inspection--that aren't in your best interest.
More from HouseLogic
Determine how much mortgage you can afford
(http://buyandsell.houselogic.com/articles/4-tips-determine-how-much-mortgage-you-can-afford/)
Keep your home purchase on track (http://buyandsell.houselogic.com/articles/keep-your-home-purchase-track/)
Plan for a stress-free home closing (http://buyandsell.houselogic.com/articles/7-steps-stress-free-home-closing/)
G.M.
Filisko is an attorney and award-winning writer who has to remind herself to
remain unemotional during negotiations. A frequent contributor to many national
publications including Bankrate.com, REALTOR? Magazine, and the American Bar
Association Journal, she specializes in real estate, business, personal
finance, and legal topics.
Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home.
Tuesday, July 01, 2014
How to Part Peacefully with Your Landlord while Breaking a Lease
If you've been thinking of buying a home, but the prospect of breaking your
apartment lease has you holding back, you might be glad to know there are
options available to you as a renter. A lease isn't always an iron-clad
agreement with all the rights on the side of your landlord. Of course, buying a
home isn't the only reason to break a lease. There are many reasons to break a
lease: Your job may have changed, you might find the rent too steep, or you may
have lost a loved one who used to share the space with you. Here are a few
things you can do to help extract yourself from the situation:
1. Find the opt-out clause. You may not have read your lease very carefully when you were
excited to move in, and now is the time to go back and pick it apart with a
fine-toothed comb. Many leases will have clauses which allow you to legally
break your obligation to stay for the full-term of the agreement. This might
involve a fee of some kind, but can often be worth the expense if the
conditions are right.
3. See about subletting. Look
at your lease agreement and see what your rights are regarding subletting the
apartment to someone else. While some forbid the practice, others may create
allowances for subleasing your apartment to someone for the balance of the
agreement. If the agreement is unclear about subleasing, talk with your
landlord about your plan and get an agreement in writing. (Recognize
you’re risking your security deposit if the subletter doesn't take care of the
place.)
4. Go to mediation. If
you can’t come to common terms, consider enrolling the help of a mediator.
Local housing advocates and “renter’s rights” groups may be able to connect you
with people who can help.
This
all assumes, of course, that you’re not leaving because your landlord is a
deadbeat. If you’re battling a landlord who refuses to fix up the place or
otherwise has been combative, you may have a legal case to make to break your
lease. The key is documentation. Document everything with photo or video
evidence, and keep meticulous records of your complaints.
Jim Armstrong
Armstrong Field Real Estate
978-394-6736
http://www.afhomesearch.com/agents/968-Jim-Armstrong
Friday, October 25, 2013
Survey: More Renters Want to Become Homeowners
Survey: More Renters Want to Become Homeowners
Article From HouseLogic.com
By: Dona DeZube
Published: August 05, 2013
Published: August 05, 2013
Homeownership as a priority is on the
upswing. And a look back shows perceptions about owning weren't as negative
during the recession as the media suggested.
Americans have favored buying over renting,
even during the recent Great Recession, and this year is no different. The 2013
National Housing Pulse Survey, by the NATIONAL ASSOCIATION OF
REALTORS®, found Americans overwhelmingly believe owning a home is a
good financial decision, and a majority of renters say homeownership is one of
their highest priorities for the future.
During the recession, much media coverage of homeownership focused on the idea that lots of people thought renting was much smarter than buying. But that wasn't necessarily the case as a look back shows.
The decline in home prices and turmoil in the housing markets did influence consumers' perception of housing as a sound investment -- but not by nearly as much as the media made it appear.
From 2007 to 2011, based on earlier Pulse surveys, the share of people who thought buying a home was a good financial decision dropped from about 85% to 73% and the share of people who were "not so strongly" positive grew. By 2013, we're back to 80% thinking homeownership is a sound financial decision.
You can interpret that dip two ways. Some would say homeowners were resilient as prices declined. Others would say the recession was a wake up call for investors who viewed the real estate market as a short-term investment.
Regardless of which way you see it, most of us have returned to the much more realistic viewpoint that real estate is a solid, if long-term, investment.
This year's Home Pulse survey also found:
During the recession, much media coverage of homeownership focused on the idea that lots of people thought renting was much smarter than buying. But that wasn't necessarily the case as a look back shows.
The decline in home prices and turmoil in the housing markets did influence consumers' perception of housing as a sound investment -- but not by nearly as much as the media made it appear.
From 2007 to 2011, based on earlier Pulse surveys, the share of people who thought buying a home was a good financial decision dropped from about 85% to 73% and the share of people who were "not so strongly" positive grew. By 2013, we're back to 80% thinking homeownership is a sound financial decision.
You can interpret that dip two ways. Some would say homeowners were resilient as prices declined. Others would say the recession was a wake up call for investors who viewed the real estate market as a short-term investment.
Regardless of which way you see it, most of us have returned to the much more realistic viewpoint that real estate is a solid, if long-term, investment.
This year's Home Pulse survey also found:
•Eight in 10 Americans think buying a home is a good financial
decision.
•68% believe now is a good time to buy a home.
•36% of renters are now thinking about purchasing a home, up from 25%
last year.
•The proportion of renters who say they prefer to rent dropped from
31% to 25%.
•Half of renters say that eventually owning a home is one of their
highest personal priorities, up to 51% from 42%.
Those renters should be in a good position
to buy given that home prices are pretty affordable (unless you're a bus driver
in San Francisco). Rising interest rates could come into play, but anything
around 6% looks good compared with the double-digit interest rates of the
1980s.
Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38%) said their local market was more active this year, compared with 51% of people who reported a slowdown in local activity last year.
There is also less concern than in the past about the drop in home values; almost half (49%) said housing prices in their area are more expensive than a year ago.
Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38%) said their local market was more active this year, compared with 51% of people who reported a slowdown in local activity last year.
There is also less concern than in the past about the drop in home values; almost half (49%) said housing prices in their area are more expensive than a year ago.
Monday, August 19, 2013
7 Tips for Buying Your First Home in the U.S.
7 Tips for Buying Your First Home in the U.S.
Article From BuyAndSell.HouseLogic.com
By: Dona DeZube
Published: April 09, 2013
Published: April 09, 2013
Help finding your way through the complex
U.S. real estate market.
Nothing says you're truly an American like
owning a home. And just over half of all foreign-born households living in the
U.S. own their own home. If you're ready to join them, try these seven tips for
American-style home buying success - the process here may be quite different
from what you're used to.
1. Be ready to prove who you are. You don't
have to get your citizenship, a green card, or any particular type of visa
before you buy a home. But you do need:
•An Individual Taxpayer Identification Number.
(http://www.irs.gov/Individuals/General-ITIN-Information) That's a number
assigned by the Internal Revenue Service to foreign nationals who need to file
income tax returns.
•A valid foreign passport, or two or more current photo
identifications, such as a driver's license, to show who you are.
Although property ownership isn't tied to
immigration or visa status, there are rules about how long you can stay, so if
you're not a citizen, check out U.S. visa requirements before you purchase.
2.
Plan to get a mortgage, so you don't have to save your money for years to
become a home owner and start building equity. The U.S. home loan market offers
many safe, affordable mortgages, including ones that allow Muslims to buy a
home without violating Islamic laws against paying interest.
To get a U.S. mortgage, you must establish credit and earn a good credit score (http://www.houselogic.com/home-advice/home-loans-mortgages/how-fico-credit-scores-work/). To boost your score:
To get a U.S. mortgage, you must establish credit and earn a good credit score (http://www.houselogic.com/home-advice/home-loans-mortgages/how-fico-credit-scores-work/). To boost your score:
•Open U.S. bank and credit card accounts.
•Report all your income on your tax returns. Lenders use tax returns
to verify your income and decide how much you can afford to borrow to buy a
home.
When it's time to apply for a mortgage,
you'll find major banks with global operations have experience working with
foreign buyers and tend to have a process for verifying credit established in
other countries.
3. Work with a REALTOR® who is a Certified International Property Specialist (CIPS) and who has experience, training, and education in helping foreign-born home buyers. An experienced real estate or title attorney can help you protect your interests, too.
Tell your REALTOR® how the home buying process works in your native country and ask her to explain U.S. home-buying customs to identify any differences. Even within the U.S., local differences exist in how people buy and sell homes. Knowing how homes are sold here and what to expect with closing costs, inspections, and the negotiation process (http://www.houselogic.com/articles/negotiate-best-house-buy/) reduces your stress and helps you get a good deal on your first home.
4. Don't be shocked by Americans' casual attitudes toward buying or selling real estate; it's a byproduct of the relaxed U.S. business culture. Although real estate contracts must be in writing, the process leading up to the sales contract signing may be more informal and casual than it would be in your home country.
5. Learn to convert from the U.S. standard measurement into metric, or pick up a metric converter app so you can better estimate room and home sizes while shopping.
6. If you're not fluent in English, or prefer speaking in your native language, choose inspectors, mortgage bankers, and REALTORS® fluent in your own language. Although it's possible to get translated copies of standard real estate documents, you'll likely have to sign the English versions during your home purchase.
7. Consider all the real-estate related expenses you'll have as a home owner, including property taxes, home owners insurance, and maintenance costs. Set up a financial plan for your home (http://www.houselogic.com/home-advice/home-loans-mortgages/home-financial-planning/) so you know how much money to set aside for ongoing expenses.
3. Work with a REALTOR® who is a Certified International Property Specialist (CIPS) and who has experience, training, and education in helping foreign-born home buyers. An experienced real estate or title attorney can help you protect your interests, too.
Tell your REALTOR® how the home buying process works in your native country and ask her to explain U.S. home-buying customs to identify any differences. Even within the U.S., local differences exist in how people buy and sell homes. Knowing how homes are sold here and what to expect with closing costs, inspections, and the negotiation process (http://www.houselogic.com/articles/negotiate-best-house-buy/) reduces your stress and helps you get a good deal on your first home.
4. Don't be shocked by Americans' casual attitudes toward buying or selling real estate; it's a byproduct of the relaxed U.S. business culture. Although real estate contracts must be in writing, the process leading up to the sales contract signing may be more informal and casual than it would be in your home country.
5. Learn to convert from the U.S. standard measurement into metric, or pick up a metric converter app so you can better estimate room and home sizes while shopping.
6. If you're not fluent in English, or prefer speaking in your native language, choose inspectors, mortgage bankers, and REALTORS® fluent in your own language. Although it's possible to get translated copies of standard real estate documents, you'll likely have to sign the English versions during your home purchase.
7. Consider all the real-estate related expenses you'll have as a home owner, including property taxes, home owners insurance, and maintenance costs. Set up a financial plan for your home (http://www.houselogic.com/home-advice/home-loans-mortgages/home-financial-planning/) so you know how much money to set aside for ongoing expenses.
Survey: More Renters Want to Become Homeowners
Survey: More Renters Want to Become Homeowners
Article From HouseLogic.com
By: Dona DeZube
Published: August 05, 2013
Published: August 05, 2013
Homeownership as a priority is on the
upswing. And a look back shows perceptions about owning weren't as negative
during the recession as the media suggested.
Americans have favored buying over renting,
even during the recent Great Recession, and this year is no different. The 2013
National Housing Pulse Survey, by the NATIONAL ASSOCIATION OF
REALTORS®, found Americans overwhelmingly believe owning a home is a
good financial decision, and a majority of renters say homeownership is one of
their highest priorities for the future.
During the recession, much media coverage of homeownership focused on the idea that lots of people thought renting was much smarter than buying. But that wasn't necessarily the case as a look back shows.
The decline in home prices and turmoil in the housing markets did influence consumers' perception of housing as a sound investment -- but not by nearly as much as the media made it appear.
From 2007 to 2011, based on earlier Pulse surveys, the share of people who thought buying a home was a good financial decision dropped from about 85% to 73% and the share of people who were "not so strongly" positive grew. By 2013, we're back to 80% thinking homeownership is a sound financial decision.
You can interpret that dip two ways. Some would say homeowners were resilient as prices declined. Others would say the recession was a wake up call for investors who viewed the real estate market as a short-term investment.
Regardless of which way you see it, most of us have returned to the much more realistic viewpoint that real estate is a solid, if long-term, investment.
This year's Home Pulse survey also found:
During the recession, much media coverage of homeownership focused on the idea that lots of people thought renting was much smarter than buying. But that wasn't necessarily the case as a look back shows.
The decline in home prices and turmoil in the housing markets did influence consumers' perception of housing as a sound investment -- but not by nearly as much as the media made it appear.
From 2007 to 2011, based on earlier Pulse surveys, the share of people who thought buying a home was a good financial decision dropped from about 85% to 73% and the share of people who were "not so strongly" positive grew. By 2013, we're back to 80% thinking homeownership is a sound financial decision.
You can interpret that dip two ways. Some would say homeowners were resilient as prices declined. Others would say the recession was a wake up call for investors who viewed the real estate market as a short-term investment.
Regardless of which way you see it, most of us have returned to the much more realistic viewpoint that real estate is a solid, if long-term, investment.
This year's Home Pulse survey also found:
•Eight in 10 Americans think buying a home is a good financial
decision.
•68% believe now is a good time to buy a home.
•36% of renters are now thinking about purchasing a home, up from 25%
last year.
•The proportion of renters who say they prefer to rent dropped from
31% to 25%.
•Half of renters say that eventually owning a home is one of their
highest personal priorities, up to 51% from 42%.
Those renters should be in a good position
to buy given that home prices are pretty affordable (unless you're a bus driver
in San Francisco). Rising interest rates could come into play, but anything
around 6% looks good compared with the double-digit interest rates of the
1980s.
Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38%) said their local market was more active this year, compared with 51% of people who reported a slowdown in local activity last year.
There is also less concern than in the past about the drop in home values; almost half (49%) said housing prices in their area are more expensive than a year ago.
Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38%) said their local market was more active this year, compared with 51% of people who reported a slowdown in local activity last year.
There is also less concern than in the past about the drop in home values; almost half (49%) said housing prices in their area are more expensive than a year ago.
Thursday, May 02, 2013
Still a Short Supply of Homes For Sale
The supply of homes for sale in Essex County is still at extremely low levels, even though this is the time of year we typically see the inventory levels climb. Having a 5-6 month supply of homes up for sale is considered a "normal" market. Anything about that and we have a buyer's market, and below is a seller's market.
In Essex County there is currently a 2.2 month supply of single family homes on the market, making it a strong Seller's market. The same holds true for condos (2.7 months and multifamily homes (2.1 months).
In Essex County there is currently a 2.2 month supply of single family homes on the market, making it a strong Seller's market. The same holds true for condos (2.7 months and multifamily homes (2.1 months).
What that means for home owners is that this is the perfect time to sell. For more information, go to:
DO YOU WANT TO SELL YOUR HOME?
The last few years were a rough time in the real estate market,
especially if you wanted to sell your home. Over the last year
things have been slowly getting better, with 2012 home prices in Salem increasing about 3.5% over 2011. However, no one
predicted the turnaround that happened during the late winter and
spring of this year.
Potential home buyers who have been waiting on the sidelines are
finally realizing that prices are rising, and mortgage interest
rates, although still at record lows, are bound to start rising. The
number of homes on the market have been steadily decreasing during
the last two years, to the point where it can be very difficult for
a buyer to find exactly what they are looking for in a home. There
have been numerous bidding wars on homes that were priced right and
in a good location.What that means to the home owner who has been waiting to move is that now is the perfect time to sell your home. This spring we are seeing homes selling for more than 10% over what they would have sold for last year, and in half the time!
You may want to ask: "If prices are going up, why
don't I just wait until next year and then I can get more money for
my home, right?"
There are a couple of things to think about if you
want to "wait & see what happens". First, the market right now is
very unusual. Low inventory combined with high demand equals higher
prices. It's basic economics. But all it takes to change this
"perfect storm" we are currently experiencing is for a lot more
people to place their homes on the market. If the market gets
flooded with homes for sale it can even drive prices down again.
Also, there is the misconception that if you wait a year or two
until prices increase then you will have more money (home equity) to
put down on a new home. Let's look at this situation - the
difference between selling your home now and selling your home in a
year if prices have gone up 10%.| 2013 | 2014 | |
| Your Home's Sale Price | $300,000 | $330,000 |
| Cost of Your New Home | $400,000 | $440,000 |
| Difference | $100,000 | $110,000 |
Mortgage interest rates will almost certainly rise by next year and add even more to your costs if you wait to sell. You could actually end up paying hundreds of dollars more each month for your new home next year than if you had purchased it this year at the current record low interest rates. Let's take the above example and see what our mortgage payment would be in each scenario based upon interest rates going up just 1% over the next year.
| 2013 | 2014 | |
| Cost of Your New Home | $400,000 | $440,000 |
| 20% Down Payment | $80,000 | $88,000 |
| Mortgage Amount | $320,000 | $352,000 |
| Interest Rate | 3.75% | 4.75% |
| Monthly Mortgage Payment | $1482 | $1836 |
As you can see you could be paying over $350 more per month for the same home in 2014 over 2013. Of course, all these examples are based upon speculation of what is going to be happening with the real estate and financial markets. Though we deal with both these markets on a daily basis, we do not claim to be able to predict whether they will go up or down, but can only give our best guess based upon all the stats available to us.
We would love to sit down with you and talk about whether it makes sense for you to sell your home now, or maybe wait awhile. We have been serving the North Shore community for a long time, and pride ourselves on the no obligation, no pressure information we provide. Contact Jim Armstrong - 978-394-6736 or fill out this contact form
Friday, November 16, 2012
Salem Awarded Best Shopping in Massachusetts
This is just one of the many reasons why Salem is the best towns and communities in Massachusetts to buy a home and live. Downtown Salem condominiums go under agreement very quickly after coming on the market, and any property within walking distance of the downtown is in high demand. Combined with easy access to the commuter rail, a bustling waterfront district and a thriving arts community, it's easy to see why it's the destination for everyone people of all ages.
The city of Salem can now officially be called the best place to shop in 2012. The 15th Annual Retailers Association of Massachusetts 2012 Award of Excellence (RAMAE) for “Best Shopping District” was presented today to Mayor Kimberley Driscoll and to Rinus Oosthoek, the Executive Director of the Salem Chamber of Commerce.
This was the first year an excellence award for the “Best Shopping District” award category was presented. The Retailers Association gave Salem the award for: “The hip, new magic of Salem: its eclectic eateries and charming boutiques, and the fact that over 60 new downtown businesses have opened in the last three years alone. Salem’s bustling farmers market often attracts thousands of customers weekly, and Salem’s restaurant scene is booming. One of the top 20 art museums (soon one of the top10!) in the U.S., the Peabody Essex Museum, is located in downtown Salem, as is the Salem Witch Museum. Salem Film Festival (all documentary), Spring and Fall Restaurant Week, Salem Jazz & Soul Festival, Salem Gay Pride Parade, Salem First Friday, Salem Maritime Festival, Haunted Happenings (Salem’s fifth season), Mass Poetry Festival, Salem Art Festival , and Salem’s So Sweet Ice Sculpture Festival are just some of the reasons to visit Salem!”
Also present at the Award Ceremony were Sandy Heaphy, Salem Chamber president and owner of the Kensington Stobart Gallery, and RAM members George Carey (Finz Seafood Restaurant), David McKillop (Rockafellas), Dan Shuman (Salem Cycle), and Mark Leavitt (Salem Car Wash).The RAM Awards of Excellence were created in 1998 by retail expert Rick Segel, a RAM board member, retail trainer, and distinguished author. The RAMAES were developed as a way to acknowledge retail excellence in the Commonwealth. Throughout RAMAES history, large and small, new and veteran retailers, and local gems and national players from all corners of the state have been honored and given the recognition they deserve for their involvement in the community and retail industry.
The Retailer’s Association of Massachusetts (RAM) is a statewide trade association with over 3,000 member companies. To learn more about the RAM, the RAMAES, past winners, and/or how to get involved call (617) 523-1900 or go to www.retailersma.org.
The mission of the Salem Chamber of Commerce is to make Salem a better place to live, work, and do business. The Salem Chamber serves as the voice for member businesses, representing, advocating and working to enhance the business and civic environment. With over 600 members, it is the largest business organization in Salem. For more information about the Salem Chamber, please call 978-744-0004, or visit www.salem-chamber.org.
Tuesday, August 14, 2012
Tips For a Relocation Visit
Are
you considering a move to a new city? Maybe you’re trying to make the choice
between two or three potential options. If so, how you visit your future home
can have a dramatic impact on which one makes the final cut.
By
making a few subtle shifts in how you prepare for your visit (and how you spend
your time while you’re in town), you can gain more useful insight into the
community.
Tip 1: Stay a week if possible
While
a long weekend might be your only shot, you can get a much better perspective
on a place if you have enough time to unwind. A mix of weekdays and a weekend
is a great way to get a view of the rhythm of the town. If you have a long time
to plan, visit the place in Summer versus Winter, too.
Tip 2: Rent an apartment or house
A
family living in a hotel is expensive and automatically puts you “outside” the
community. With a little more room and the facilities of a real living space,
you’ll get a better sense of what it might be like to “really be there.” Plus,
avoiding the hotel will keep you off tourist-trap areas and hopefully away from
major highways.
Tip 3: Explore some on foot
Driving
aimlessly can be a good “survey” technique (and indeed, getting lost is a good
idea, too), but walking neighborhoods and downtown districts will give you a
vivid sense of the community.
Tip 4: Get the local low-down
Before
you go, find friends-of-friends on Facebook and other social media sites who
can give you an idea of the must-see places that locals love. Use this list as
your guide, not the tourism brochures.
Tip 5: Pay attention to what matters to YOU
Remember:
You’re the one thinking of living there. Don’t let what others see as the main
benefit to the town be what guides your decision to live there. Go with your
gut, your values, and your comfort level!
Wednesday, August 01, 2012
Home values rise for the first time in five years
NEW YORK (CNNMoney) -- Home prices hit a bottom and are finally bouncing back, according to an industry report released Tuesday.
Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter.
See the rest of the article at: Home values rise for the first time in five years - Jul. 24, 2012
Tuesday, April 24, 2012
Kids Becoming Home Owners?
I’m going to go out on a limb here and guess
that when you were fourteen, you weren’t thinking about buying your first home.
Well, believe it or not, there’s a young girl in Florida who has taken
advantage of this incredible buyer’s market.
14-Year Old Becomes
Homeowner and Landlord
(http://blog.sfgate.com/ontheblock/2012/03/13/florida-14-year-old-becomes-a-homeowner-and-a-landlord/)
“Instead of using her $6,000 savings to buy
an iPad, Willow Tufano bought herself a distressed property. And now she’s
renting it out. Willow got help from her mother, who doubled her
investment. Together, the two spent $12,000 to buy a 3-bedroom Florida
short sale that, in better times, was valued at $100K. Now they are partners,
since Florida requires a homeowner to be at least 18 years of age, but Willow
plans to buy her mother out as soon as she can so she can own the home outright
when she reaches the legal age.”
Admittedly, it’s a pretty incredible story,
and certainly not the norm. But right now I’m seeing a lot of market activity
which suggests that, despite what you read in the media, we may see see an uptick in sales and pricing on the North Shore. I think fear
has been holding back a lot of people from seeing clear investment
opportunities, and well, sometimes it takes the wisdom of a child to help us
see the way!
Wednesday, February 01, 2012
Home Affordability Offering Up 40-Year Deals
Home affordability is at 1971 levels, due to falling home prices and record low mortgage rates, pushing home ownership in reach to more families, according to the U.S. Department of Housing and Urban Development (HUD). Home owners are bringing in nearly double the median income they need to cover the cost of an average home, HousingPredictor reports."With interest rates at historically low levels and markets across the country beginning to improve, home ownership is within reach of more households," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement.
However, some consumers are finding more stringent lending standards for getting a mortgage a roadblock to home ownership.
http://realtytimes.com/159/JimArmstrong
Questions About Market Value of a Home
Question: Hi Jim, Why is this house priced almost $20,000 than it's assessed for? I know they bought it on 2005 for $350,000, but at today's market it seems unrealistic. It has no garage which would have to be built! I know this is not your listing, but do you know anthing else about it? It's been on the market since November 2011 and already has been reduced, but I believe it is not enough of a reduction. Thanks so much. - Kathy
In reference to the follow property: http://www.afhomesearch.com/properties/Danvers/Wadsworth-St/2850427
Answer: Kathy,
The assessed value of a home has no relationship to the market value of a homes. The way the town determines assessed value differs from the way a Realtor or an appraiser determines value because it is done for tax purposes. Plus, assessments are usually 2 years behind market value, and many times don't include any recent upgrades.
This particular home is actually under agreement, but they are continuing to show it for back up offers. It is a short sale, which means they are selling it for less than what the seller owes to the mortgage holder. According to public records, the seller still owes more than $300,000 to the lender. There no way of knowing what the current offer is on the property, but it is property close to the current list price.
No, it doesn't have a garage, but that doesn't matter to many people. It is in a nice neighborhood, has a good size lot, and has no neighbors in back of the property, so it is a desirable home. It is also in very good condition and shows very well, which many buyers are willing to pay a little more for. The inventory of available single family homes on the North Shore is actually quite low right now, partially due to the time of year, but also because the market is very busy. This is keeping home prices stable, and in some areas we are even seeing slight increases in value. Danvers, MA only saw a 1.45% drop in home prices in 2011, and most of that happened at the beginning of the year. Towards the end of the year the prices were starting to edge up.
I am always available to answer any questions you might have. It doesn't matter if I am the listing agent or not. Let me know if you would like to see any home on the market.
Thanks.
Jim Armstrong
Broker/President
Armstrong Field Real Estate
Mobile 978-394-6736
In reference to the follow property: http://www.afhomesearch.com/properties/Danvers/Wadsworth-St/2850427
Answer: Kathy,
The assessed value of a home has no relationship to the market value of a homes. The way the town determines assessed value differs from the way a Realtor or an appraiser determines value because it is done for tax purposes. Plus, assessments are usually 2 years behind market value, and many times don't include any recent upgrades.
This particular home is actually under agreement, but they are continuing to show it for back up offers. It is a short sale, which means they are selling it for less than what the seller owes to the mortgage holder. According to public records, the seller still owes more than $300,000 to the lender. There no way of knowing what the current offer is on the property, but it is property close to the current list price.
No, it doesn't have a garage, but that doesn't matter to many people. It is in a nice neighborhood, has a good size lot, and has no neighbors in back of the property, so it is a desirable home. It is also in very good condition and shows very well, which many buyers are willing to pay a little more for. The inventory of available single family homes on the North Shore is actually quite low right now, partially due to the time of year, but also because the market is very busy. This is keeping home prices stable, and in some areas we are even seeing slight increases in value. Danvers, MA only saw a 1.45% drop in home prices in 2011, and most of that happened at the beginning of the year. Towards the end of the year the prices were starting to edge up.
I am always available to answer any questions you might have. It doesn't matter if I am the listing agent or not. Let me know if you would like to see any home on the market.
Thanks.
Jim Armstrong
Broker/President
Armstrong Field Real Estate
Mobile 978-394-6736
Thursday, December 01, 2011
Real Estate Facts & Figures
Below are some facts and figures about the current real estate market, and what people think about it.
- 81% of Americans view real estate as a good investment
- 78% of Americans feel that housing prices will hold steady or increase over the next 12 months.
- It is cheaper to buy/own a home than to rent in 80% of the major markets in the US.
- 25% of young Americans plan to buy a home in the next two years.
- 95% of homeowners are happy they decided to buy a home.
- First time home buyers comprise 35% of the total home sales.
- 67% of first-time home buyers said that the real estate market conditions gave them the opportunity to purchase a home sooner than expected.
- 50% of buyers found a home in a better neighborhood than expected.
- 61% purchased their home at a price better than expected.
- 43% received a mortgage interest rate better than expected.
- 69% of Americans say that now is the best time to buy a home
- 88% of people search for homes on the internet, and 40% found the home they eventually purchased on the internet.
- 87% used a real estate agent to buy a home.
- For Sale by Owner homes reach a record low, only accounting for 6% of total sales.
- The average home seller was in their home for 9 years, and had 16% increase in equity when they sold it.
- The median age of a first-time home buyer was 31. The median age of a home seller was 53
- 60% of first-time home buyers bought because they "just wanted a home of their own".
- The median down payment for first-time home buyers was 5%.
This information was compiled from two surveys, including one just released by the National Association of Realtors.
Thursday, November 17, 2011
New Massachusetts Scrap Metal Law Passes House
A law that will require scrap metal dealers to obtain a photo ID from anyone that sell metal to them has finally passed the House of Representatives today. This bill (and various forms of it) has been back and promoted by Massachusetts Realtors for the last few years because of the rash of copper thefts from vacant, and sometimes occupied, homes across the commonwealth. Many homes have been broken into by lowlifes who cut out all the copper pipes, tearing apart walls and leaving extensive destruction in their wake, including the flooding of the property in some cases. They then sell the copper to scrap metal dealers who give them cash for it. The rise in the price of copper (and scrap metal in general) has lead to a huge increase in this activity. It has gotten so bad that thieves are stealing manhole covers, iron fences, statues, and just about any metal that they can get their grubby hands on.
This law will require the scrap dealers to get a valid photo ID from anyone selling metal, and record their information along with a description of the metal they are selling. They must also hold onto any scrap metal for at least 24 hours before reselling it. It will make it illegal for any private citizen to sell metals that are obviously not household items such as manhole covers, metal bleachers, fire hydrants, etc. Currently someone can sell those items with no questions asked.
See more information on the law and scrap metal problem below:
http://www.malegislature.gov/Bills/187/House/H03723
http://www.salemnews.com/local/x67365945/Bill-aims-to-end-rash-of-metal-thefts
http://boston.cbslocal.com/2011/07/19/coakley-wants-laws-to-track-scrap-metal-sales/
http://www.tauntongazette.com/news/business_news/x2063885724/Massachusetts-scrap-metal-dealers-push-for-tougher-laws-to-deter-thieves
This law will require the scrap dealers to get a valid photo ID from anyone selling metal, and record their information along with a description of the metal they are selling. They must also hold onto any scrap metal for at least 24 hours before reselling it. It will make it illegal for any private citizen to sell metals that are obviously not household items such as manhole covers, metal bleachers, fire hydrants, etc. Currently someone can sell those items with no questions asked.
See more information on the law and scrap metal problem below:
http://www.malegislature.gov/Bills/187/House/H03723
http://www.salemnews.com/local/x67365945/Bill-aims-to-end-rash-of-metal-thefts
http://boston.cbslocal.com/2011/07/19/coakley-wants-laws-to-track-scrap-metal-sales/
http://www.tauntongazette.com/news/business_news/x2063885724/Massachusetts-scrap-metal-dealers-push-for-tougher-laws-to-deter-thieves
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