The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Introduction:

You’re at the point in your life where you’re seriously considering purchasing your first home.  You’re sick of paying high rental costs when you know that you’ll never own that property and it simply makes sense to start investing in your own future.

Buying a home is an exciting adventure, and whether this is your first home or your second, it’s important that you take your time when evaluating potential properties so that you end up with a property that truly reflects your style, your preferences, your lifestyle and of course, the size of your family.

When considering properties, you also need to think outside of just the property itself. While that Cape Code on the corner may look like your dream home, what about the neighborhood?  The property costs in certain divisions? Are land taxes reasonable? Are you responsible for water charges? Sewer charges? Are there any zoning regulations or restrictions that you should be aware of? 

You should also consider your own personal lifestyle and make sure that the neighborhood is reflective of where you are in your life and what you are comfortable with.

For instance, perhaps you’re retired and looking to settle down in a quiet, mature neighborhood only to discover that the majority of families around you are all younger couples, with small children. It’s important to look at the big picture when choosing a property so that it truly offers you the setting and the atmosphere that you are most comfortable with. After all, this is your home and you are going to spend many years building a life there!

Driving by a property isn’t enough, and even if you love the layout, structure and design of a home, there are outside factors that should influence your decision to buy. 

Some of these things may include:

• Choosing a neighborhood reflective of your own lifestyle.
• Considering the layout of a home (open concept, 3 story, etc)
• Considering the size of the property and whether there is room to expand.
• Choosing a property with adequate privacy.
• Choosing a property with a backyard, trees or fencing.
• Choosing a property that offers features most important to you.
• Whether the property needs improvements (and costs associated)
• Understanding zoning regulations, the housing market, additional costs.
  
  

There are other factors to consider outside of the property itself as well, so that you can purchase a home with limited risks involved, including:

• Hiring a home inspection company.
• Financing opportunities, mortgages, and loans.
• How to put in your first offer.
• Setting a closing date that works for you and the seller.
• Understanding contracts, hiring a real estate attorney, if applicable.
• Moving expenses, hiring a moving company
• Closing the deal and moving in!

There are many things to keep in mind when buying a home, and if it’s your first time purchasing a property, it can become overwhelming.  Rest assured, that your real estate broker and attorney will take care of many of these things, but you want to take a hands on approach when evaluating properties and considering your options so that you can get the best deal possible.

One of the biggest mistakes that new home buyers make is rushing into a deal.  They see a property that they absolutely love. It’s perfect!  The size, privacy, layout – it’s everything they could hope for only to find out that the property needs repairs, or that the land taxes are higher than in a neighborhood right across the street!

So, it’s important that you keep an open mind when evaluating potential houses, and take your time!  There are always other homes that could fit your lifestyle and personal preferences, so if you find one that has potential problems, move on!

Careful planning and thorough research will help you make the transition into your new home easier (and more affordable) than if you rush into an offer, or make a last minute decision on a property, so give yourself adequate time to visit properties before you even begin your search. 

If you are currently renting and are considering giving notice to your landlord, make sure that you feel comfortable with the allocated time in finding a new home. 

Depending on your area, you may be required to give your landlord 60-90 days notice, so keep that in mind so that you don’t accrue additional expenses by having to pay for rent when you are no longer there.

When beginning your search for a home, you want to consider all options so that you can get the best deal possible.  This includes:

New Homes vs. Older Homes

Older homes can be more affordable, however you may also be faced with costly repairs, such as replacing old equipment so that it’s up to code.  Older homes often carry higher insurance rates because of an increased risk of repairs.

On the other hand, older homes can make for great starter houses, if you have the ability to do a lot of the repairs yourself.  And in many cases,  you can end up buying a larger house at a fraction of the cost in comparison with a newer home. 

In addition, many people prefer mature properties because of the history surrounding the property, as well as existing vegetation, trees, and greenery, which provides privacy, while often giving buyers the opportunity to purchase more land for future development, than with a newer model.

But there are many pro’s and con’s to both a new and older home and it’s important that you fully understand everything about the properties that you are considering. Get as much history on the property as possible.

Ask the realtor for information about the home, talk to neighbors, check out sale history by searching online. 

Reviewing the history of sale transactions on a home can often give you a good idea as to whether there were problems with the property, especially if it’s been sold multiple times over a short period of time.

Also keep in mind that newer homes include a warranty, protecting you from unforeseen costs in repairs (such as roofing or flooring), while older homes will typically be sold “as is”.

When purchasing an older home, you want to make sure that you pay an inspection company to thoroughly inspect the property, including roofing, heating, electrical outlets, and whether the property is up to code including the type of wiring found throughout the property.

While it’s important to have a home inspection on both new and older homes, if the property is aged, you will want to make sure the inspection includes elements that may not be typically included in an inspection process for a newer home.

Moving into your new home should be an exciting and memorable time in your life, and if you really give yourself enough time to evaluate different properties, and you keep an open mind with both newer and older homes, you’ll be in a better position to get the most ‘bang for your buck’, while ending up with a home that you are happy with for years to come.

Well...that was just the intro!

Next:   Chapter 1: Location is Everything.

Be sure to follow so you don't miss the next chapters!



Get The Best Price On Your Next Home Purchase!

One of the most important aspects to buying a home is to ensure that you purchase for a fair price.  Since there are certain key steps that you must follow in order to make a sound decision, it pays to have a knowledgeable Realtor on your side who will be able to help obtain the best and most realistic asking price for a property.

Determining Market Comparables

For example, one of the first ways that your agent will discover the price of a home is by researching local market comparables.  In most cases, they will be able to bring up a list of properties sold over the last 6 months within a 1 mile radius.  Properties should also not be bigger than 20% of the subject size.

Additional features to consider would be the neighborhood each home resides in, structural differences, bedrooms and bathrooms, overall condition and other amenities such as a pool, a/c, or garage.  Other factors, such as if a particular home sold for much lower due to foreclosure is something your agent can uncover as well.

Houses That Have Not Sold

Next, many homes could be on the MLS for 6 months or longer without ever selling.  Others that are comparable could have been taken off the market after not getting enough offers or being listed for too high.  This is valuable information, because you may be able to get a particular property for a substantial discount or it may not even be worth pursuing. 

Neighborhood Reputation & Appreciation

When it comes to buying a house, this is one of the most important reasons to work with a Realtor.  Since your agent will have a familiarity with various local market trends and statistics, you will be able to learn what makes a particular neighborhood desirable and also which areas to avoid.

A lot of things can affect a home’s value such as the school district, crime levels, or even other properties located nearby (such as those burnt in a fire or properties that were a bank sale).  In fact, sometimes these factors can even differ from block to block!

Your agent will also help you to assess the appreciation rates for various neighborhoods and future development plans that could affect home prices, so that you can get a decent indication of what to expect down the road.  This can be extremely valuable information dependent on how long you plan to live at the said property and the length of time the home may need to sit on the market.

Appraisals & Inspections

After you place an offer on a property, you will have the opportunity to get an appraisal and home inspection as further due diligence.  Even with an agent, there are sometimes issues that may arise with a property that could affect the home’s value that you were not even aware of.

Some of these problems could include structural issues, plumbing or electrical, termites or insects, mold or even water damage to name a few.  Obviously many of these things could impact the price significantly and would either have to be fixed by the seller or renegotiated to get a fair price.

In conclusion, there are a lot of areas to consider when choosing a home and getting a fair price on a property.  Since this is one of the biggest purchases you will ever make, it is crucial that you protect your interests and ensure that you are getting the best deal possible. 

Be sure you are working with a Realtor! 

12304 Swanhaven Dr - Rivendell on the Lake

You will fall in LOVE with this incredible 2 story home in prestigious Rivendell on the Lake. The features are endless: hand scraped wood floor, marble & ceramic tile, designer fixtures, Pickled Oak cabinetry, stainless steel appliances,  Sub Zero fridge, huge pantry, granite breakfast bar, beautiful open staircase w/ wrought iron railing, wired for surround sound, wonderful whirlpool tub in master, huge shower, dbl vanities w/granite, 6” crown molding & baseboards, plantation shutters, Romeo balcony, library paneling, 3rd living room upstairs has wet bar & lots of hall cabinets. Study for him, computer nook for her by the kitchen. Huge laundry room. Square footage of a 5 car garage, but 3 car side entry, keyless entry, intercom system, insulated garage doors, tons of storage. Upstairs: 3 bedrooms, 2 bathrooms, 3rd living, wet bar, library, & media room. Salt water heated pool. Lots of details & charm await you. Call TODAY for your private viewing!

Be sure to visit: http://www.rhondasrealestate.com for more information.

YouTube video: http://www.youtube.com/watch?v=lGNhlpwQIZg

Realtor.com link: http://ht.ly/4AcN6

Be my Fan on Facebook - Click "Like": http://www.facebook.com/RhondasRealEstate?v=app_112078882147346

10 Simple Tips to Take the Stress Out of Home Buying Process - Focus on the Positives!

Tip 7: Family & Friends Opinions

 

It's natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder.

You may be getting down payment assistance from family. For that reason, it's good for them to know why you are choosing a particular home. It's an investment on their part as well, but remember you will be the one making monthly mortgage payments. You may be needing approval or an extra set of eyes in the beginning stages of looking at homes if you are a first time home buyer. Once you get an idea of what to be looking for, you should be ready to step out and make those decisions on your own.

If you have friends come along, their taste may be completely different from yours, and you may miss the house you like because you were only focusing on their opinion. You may end up looking at more homes than are needed because you were distracted.

Your home is yours because it fits your family, your lifestyle, your needs, and your location of choice.

Remember to focus on what your immediate wants and needs are so that YOU will be happy with the final decision. 

Next...Tip 8: Buy It because You Love It!

10 Simple Tips to Take the Stress Out of Home Buying Process - Focus on the Positives!

Tip 6: When is the Right Time to Buy...

When is the Right Time to Sell?

Every home buyer and seller is in a different situation, so it is important you don't compare your timeline and decisions to anyone else's.

Time to Buy?

Given all of the drops in the housing market in the last few years, many people are wondering whether now is the right time to buy a new house. Should you snatch up the good deals before prices start to rise or should you wait it out a little bit longer to see if the prices will drop even more? It can be somewhat of a gamble, so it is important to make sure that you know a few facts about the current market so that you can make the best possible decision.

One of the most important facts you should consider when determining whether now is the right time to buy a new house relates not to the market but your own situation. Consider how long you plan to live in the home. While you might not be able to look into a crystal ball and see the future, consider what you know at the moment.You also must consider how comfortable you are with taking risk as well. If you feel comfortable with a possible 10% or even more drop in a home price if you need to re-sell within the next few years then now might be a fine time to make a purchase. If you are not comfortable with risk, then it is probably better to wait and see how the market settles before you make a home purchase.

The reality of the current market is that the fluctuations have not yet stopped. During the year, prices are most likely not going to appreciate at the rate they used to. It is also important to keep in mind that you should not get swept up in the hype that is often presented in media advertisements. While there may be some truth in the media, consumers should be wary about taking this and running with it.

Lending restrictions remain tight throughout much of the country as well. Loans are available for the purchase of a home, but restrictions are much tighter than they were in the past. Make sure you know exactly what is on your credit and how much you will be able to offer for a down payment before you consider purchasing a home in the current market.

Also, if you plan to buy a new house in the current market, you should be fully aware that there is the potential for the value of your home to drop over the next few years rather than appreciate. You should not assume that your home will steadily gain value the longer that you own it. This is a gamble that you should be fully aware of before you begin shopping around with the intention of making a home purchase.

While now could very well be an excellent time for you to buy a new home, it is important to consider your own situation as well as how comfortable you are with taking possible risks over such a large purchase in the next few years. The current market certainly is offering good deals in many markets, but before you rush out to grab one, make sure that you are fully informed.

      Time to Sell?

Everything has a season – including selling your house. Listing at the right moment could mean more money in your pocket.

Traditionally, spring is the hottest season for real estate. Sales peak in April and May and stay strong in June and July. It’s a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.

In fact, 60 percent of America's moves take place in the summer. But closing a sale can take weeks, so it’s a good idea to list your home early in the season.

August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and sales steadily increase into spring.

If you can’t sell in the peak season, consider listing your home in the winter. It may sound counterintuitive, but you probably already have the house decorated and cleaned for holiday entertaining, so it shouldn’t be hard to get it in shape for showing. Moreover, you will have less competition and may get a better price. Another plus: buyers in winter are less likely to waste your time or draw out the closing. They may want to close before the New Year so they can claim the mortgage deduction on their tax return, which you could turn to your advantage in pressing for a quick deal.

Of course, selling in the hot season isn’t the whole story. You should pay attention to your local housing market and try to list during a seller’s market, when there will be more competition among buyers for your home – which could mean a better price, a quicker closing and fewer conditions on the offer.

Find a Realtor who you like and trust, one with the knowledge and experience in your local housing market. If you have questions or comments, please let me know...

Next...Tip 7: Family & Friends Opinions

10 Simple Tips to Take the Stress Out of Home Buying Process - Focus on the Positives!

Tip 5: Physical Aspects of Your Home

Now that we've figured out what type of home fits your lifestyle, we need to think about some important issues and not get caught up in the physical aspects of the home. It's easy to walk into a home, fall in love, and completely forget that this was not an area you wanted to live in. Keeping an open mind and not being rigid is a welcome thing, but here are some things to keep in mind.

Noise Level

It could be the home sits right next to a busy interstate or main street through town. The home might be next to a train track, or even in a flight path. Maybe the neighbors have dogs that bark just because they hear the wind. Inside the home you don't hear anything, but unless you go outside to the backyard, or sit on the front porch, you never realize how loud things could be. Not paying attention to these things could end up frustrating you, and instead of loving the house, you begin to hate it.

Distance

Maybe it fits what you are looking for, but it's too far away from all the amenities and activities your family enjoys. Driving to the home you really like during different times of the day or week will definitely help you see what traffic is like, how long it may take you to get to work or outside activities. Remember distance could mean less time maintaining the home you love because you spend it on the road instead. If you need the time to wind down after work, the distance may be what you need to shut your brain off so you are ready for the family that waits for you.

Neighborhoods

It may be that you see the house during the week when people are at work, kids are at school, and you don't know what goes on at different times of the day or on the weekends. It may be you don't like cars parked up and down the street, kids riding their bikes in your driveway, the loud hot rod or motorcycles engines being warmed up. Pay attention to the houses next door, what their landscaping looks like, and how the neighbors keep things. This will definitely have an impact on this home when and if you ever would decide to sell...if you ended up buying this home.

Hopefully these are things you have thought about and shared with your Realtor. As a professional, with this kind of financial investment, your Realtor has been hired to keep you on track, reminding you of what you have shared, listened to you and taken notes. You will be grateful you bought what you were looking for and not talked into making a purchase just because. Hire the Realtor that cares about you and your needs and not their paycheck.

Next...Tip 6: When is the Right Time to Buy...When is the Right Time to Sell?

10 Simple Tips to Take the Stress Out of Home Buying Process - Focus on the Positives!

Tip 4: Find the Home that Fits Your Lifestyle

You’d think the easiest thing in the world would be deciding what house to buy. After all, who knows you better than you? You know exactly what you want, right? Well...sometimes. The truth is most people only have an idea of what they want – the number of bedrooms and bathrooms, size of the kitchen and garage, and maybe the yard. Things tend to get a little murkier when you mix in neighborhoods and schools, commutes to work and distance to ball fields and retail shops.  


Finding a home that fits your lifestyle can be a big challenge. There are so many options when it comes to choosing, and you probably aren't going to find a home that is 100% perfect, so the best way to narrow down your options is to take a look at your lifestyle and priorities. Chances are there is an option that will work best for you.


The Social Butterfly

A condo can be a great option for anyone who loves to socialize or wants to live right in the heart of the city, close to the action, or within walking distance to work. If you’re new in town, it can be a good way to meet new friends and neighbors. Many large complexes have community features like a pool, gym or clubroom. This will give you the opportunity to meet the people with which you share a building. Remember though, you will be sharing walls, floors and ceilings with many other people. If a little bit of noise will break the deal for you, a high-rise might not be for you.


Gated Communities

Gated communities provide a lot of benefits to the residents that live within them. The number one reason people choose to live in gated communities is likely the security element. They are private and more difficult to access than a standard community. Criminal activity is reduced in gated communities, and solicitors will have a more difficult time bothering residents.


Traffic and speeding cars are also reduced behind the gates, making it quieter and safer for children to play and ride bicycles within these neighborhoods. You likely won’t have the morning commute using your street as a shortcut either!


Another positive aspect of gated communities is a higher standard of home quality, and stricter building codes that promote uniformity in design. That means more sale comparables and better value for all the homeowners within the community. Homeowners in these neighborhoods also generally have a higher pride of ownership, and keep their homes in good condition. Along with that, gated communities create a scarcity effect, with few homes within these neighborhoods typically available for sale at the same time, adding more bite to the value.

There may also be social benefits, such as a community center, pool, park, or events that promote group activities for families to get to know each other.


Wide Open Spaces

If you value privacy and want a lot of space to call your own, buying a home on an acreage may be an option. Keep in mind that with a lot of land comes a lot of responsibility. If family time and outside activities take up a lot of your time, the maintenance of land can consume a weekend. Also remember that if you work in the city, you could be in store for a longer commute, which results in less family time as well.


Somewhere in Between

Maybe you want a place to call your own, but without all the responsibilities of a yard. A great alternative that gives you the best of both worlds is a town home. Townhouses usually consist of several single-family homes grouped together. In many cases, you can rent or own the inside of the home, while a separate organization owns and cares for the exterior of the building and the yard. This allows you the luxury of having a small yard without having to maintain it. Keep in mind that there are usually home ownership association fees that cover the land maintenance.


Buying a home is like finding the right pair of jeans. It's all about what fits. Your home should fit your lifestyle, and like fashion, that changes with time. Choose a Realtor to help you gauge your stage in life, one who knows the questions to ask you, and can pull it all together...so you can find a home that's the perfect fit!

Next...Tip 5: Physical Aspects of Your Home