Deciding On Your First Home

May 30, 2012 by  
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Ready To Leave That Apartment?

Now would be the absolute best time to find your first home. Starting your search as a first time homebuyer is a vital part of growing a financial base and credit rating as well as moving you into a comfortable space you will love. If the time is right for you to find your first home, there are a number of things to consider before you pull the pin on that first contract.

Prior to viewing any new home, make sure you begin looking at the process carefully and with a sharp eye. Learn what the mortgage rates are and how the general home financing scene is fairing at that time. Know what other buyers are paying for mortgages monthly and decide what an affordable monthly number is for you and yours. You need to understand the real estate market for the kinds of property that interest you and determine if you can afford these or look at something less expensive.

When you learn the basics of your market and what is for sale in the district you desire, your search will be adjusted in your favor considerably. Make certain of what your credit rating will look like to a lender and you better ask yourself are your paychecks going to be secure for a time. Biting off more than you can chew for your first home can be a disaster and lead to unexpected hardship at closing or some point thereafter and put you back financially for years.

At this stage of the first home buying process the situation widely depends on the professionals you line up as allies to your cause. The biggest decision is finding the best realtor for you. Having a good agent can make all the difference in the way your transaction turns out, the style of home you buy and the home financing you receive. A good realtor will find you the absolute best home in short order after determining your resources and living needs. Ask your agent if they have links to home inspectors and mortgage lending institutions. The professionals you recruit to help you find your first home can decide if problems will develop and mean the difference between a poor deal and a great deal.

Prior to or during the process of looking at homes, be sure you understand what is being discussed around you – learn the terminology in finance and real estate. Real estate market terms and mortgage language can be tricky so ask as many questions as you need to – there is no such thing as a stupid question. This is a big step in your life so understand each step of the experience.

Buying your first home can be a real trip, it should be an adventure and a bit challenging, but not a hardship. Be confident in your actions and understand all of the procedures as you encounter them. Knowledge is power so empower yourself before you even begin your first home hunt and get precisely what you are looking for.

The Importance of a Home Building Plan

May 29, 2012 by  
Filed under Real Estate Information, Real Estate Tips

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Your home is not some abode that you hang your hat in or a place to stay dry when it rains. Your house puts your entire lifestyle and personality on display for the world. The thing is; your home has also become the largest investment in your life to this point – and perhaps for all time. Many people spend any future investment capital on their home – and plenty of it as a source of keeping their investment viable over time.

Building a home as an investment is fine and you will need a building plan for your new home. Prior to that discussion though, let us talk about what that home building plan really is. Sure, it’s something you need to construct the actual building, it is also an opportunity to pick and choose exactly what you want to have in your home and place it exactly where you want it. It can also be complicated so working with a professional home designer is recommended, but these days there are software programs available so you can have some fun experimenting with these. Just remember that this a time when you should let your imagination run wild – you can rein it in later.

Start with making a list of the things you definitely want in your new home building plan and these need to be part of regardless of the cost. You could also devise a list of those things you do not want. This aids in keeping both spouses on track and the same page. You also need to ask yourself if you are planning to sell the home at some time in the future. If the answer is yes, your home building plan should reflect that by having features built in that are popular for the majority of homebuyers.

Do not be afraid to add energy efficiency into your home building plan, for example making sure you have top grade insulation throughout, high energy heating and cooling and use building materials that promote energy savings. Will your home be a one story or a two-story home – obviously these needs to be outlined in your home building plan? How many rooms are you going to have in your new home? What about the number of bathrooms and the size of each? Once you have these questions answered you will be able to begin calculating square footage costs to determine costs and pare away what you cannot afford – there is no rush for firm numbers at this time.

Assuming you still need to purchase a lot for your new home, you need to consider the location you desire and its affordability. Once you determine where you want to live, your home building plan should be designed to fit suitably in that area. Many developers have regulations and standards in place that maintain the “look” of a neighborhood as it develops. This could also determine how unique your home building plan will be. Even if your choice of home building plan is acceptable, it should be attractive to the masses and be easy to turnover in the event of a forced sale in the future so keep it buyer friendly.

Prior to starting your home building plan, you should familiarize yourself with home designs and basic construction so drive through new areas and attend a few open houses of brand new home for ideas. Also buy some design magazines and troll the Internet for design ideas and home building plans – there are literally thousands of them online. There are also many cool online tools available to assist with your home building plan and as I mentioned earlier, some software programs available to aid in your home building plan design.

Your new home will reflect your personality and that of your family. You want to take your time and design something you can feel great about for years to come. Your home building plan is where it all begins so focus your attention to this important aspect of a new custom home purchase.

Selling A New Home

January 3, 2012 by  
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Selling a new home sounds easier than selling an old home that needs repairs here and there. But even a new home that you are selling, it still needs preparation to sell it. One cannot just put a “For Sale: new home” sign in front of the house and expect the people will come to you and sign the deal. Selling a new home is still the same as selling your own home but the difference is that it does not need lot of preparation as usual.

Since you do not have to spend much time in repairing or improving the house, you can catch up by making a marketing plan to sell the new home. The marketing plan is designed to sell a home as quickly as possible and at the best price. The plan can be advertising in the newspaper, posting your listing on the Internet, holding an open house and more.

Just to remind you that there are two important things to remember when selling any home – including a new home – they are price and condition. Any home will sell faster if the price is right and reasonable. Any repairs, improvements or costs to sell should be included in your asking price but it has to be reasonable.

It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential home buyers. Any realtor will tell you that the spring and summer are the best times of the year to sell a home, because that is the time when buyers are having a great interest in buying home. Selling a house depends on supply, demand and other economic factors.

But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price. According to the most recent data from the National Association of Realtors, or NAR, about 350,000 transactions on average close during January and February, compared with 650,000 to 700,000 a month in June, July and August.

You also should hold an open house to sell a new home – one of the ways to promote your house is to your neighbors. This can be one of easier methods of selling the home in the event your neighbors’ friends or family might want to buy a home. Create an information hi-light sheet (with a photo) about your home to give potential buyers with a description about your home.

Selling a new home is not as difficult as you may believe. Still, it can be somewhat confusing at times and will require dedication and patience. What you need to have when selling a new home is a strong commitment to sell plus a taste for some hard work.

Time Doesn’t Stop When You’re Renovating

December 13, 2009 by  
Filed under Featured, Real Estate Information

When you buy a house for the purposes of renovating it, there may well be a simple equation in your head. Money spent on buying house + money spent renovating = total spend. Resale price – total spend = profit. Simple! Isn’t it? Well, maybe not. You see, on top of this you do need to consider what else is going on while you are renovating. Renovating a house is not something you can do in “dead time”, so you also have to look at how you live in the mean time.

After all, if you need to be present for the work – because you are helping to do it or because you need to monitor the project – then this cuts into time that you would ordinarily spend working and making money. If you have sold your house to buy the new one, then you will also need to take care of resettlement costs, whether you are renting or have found another solution. It is hard to live in a house which is in the middle of renovations, as anyone who has done it will tell you.

You may need to work into your budget an amount which will cover the costs of your time spent on site and your temporary accommodation. If you have borrowed in order to buy the house, you will need to at least service the mortgage on it, too. Therefore it is essential that you have a plan, and that that plan is realistic. Many people get carried away thinking of the profit that they will make, but it is important to think about the difference between gross and net profit

Pouring Your Money Into A Black Hole

December 13, 2009 by  
Filed under Real Estate Information

The “fixer-upper” is a grand tradition of real estate. Many houses go on the market needing some work before they are truly habitable. Whether your intention is to live in the house or to fix it up and sell it on for a profit, you will need to do some work one way or the other – and because of the work involved, often these houses are available for a bargain price. However, it should be noted that not every house that is available for a low price is a bargain. Sometimes, people only find this out after doing a lot of work.

A “money pit” is a house which looks like a bargain when you initially buy it, but when you come to realize the extent of the renovations that need to be done before it is even habitable you realize that you will have to spend a ludicrous amount of money. If you are selling, you may not make a profit. If you plan to live there, you’d have been better moving in to an already suitable house and paying the extra money up front. Of course, by the time you have found this out, it’s already a little late.

Before buying a house which requires work, it is always advisable to have a survey carried out on the property to find the extent of work that needs to be done. You may be pleasantly surprised, or you may get a warning that you should not proceed with the purchase. Although it costs money to have a survey done, it is still immensely preferable to buying rashly and then spending time and money putting that decision to rights

One Man’s Misfortune Is Another Man’s Opportunity

December 13, 2009 by  
Filed under Real Estate Information

If you were offered a deal that sounded as though it was unbeatable, and it turned out that there was no risk involved for you, you’d surely take it, wouldn’t you? Most of us, if not all, would. But then throw this variable into the equation: You can only have this deal by taking advantage of the fact that a couple with three children are divorcing after one of the parents lost their job. They will sell for just over half of what they paid for the property because the bottom fell out of the market and the repayments are crippling them.

How do you feel now? Still thinking of popping open a bottle of champagne and toasting your good fortune? Well, you may well be. The fact is that there will always be misfortune in this world, and if you feel that it is excessively unkind to profit from someone else’s misfortune then there will be countless other people out there who are not at all bothered about taking that step. Obviously you would be well advised not to celebrate your good fortune in front of the family who are losing their home, but they need to sell it, and you will not be helping them by opting out of the decision.

This is how many people make their first step on the real estate ladder. Equally, others will buy houses from seized-property auctions without considering that the work that went into those homes may have been funded by drug dealing, and buying from a repossession auction is also a way of profiting from another’s misfortune if you wish to take that view of things. It’s all relative, and you are not the bad guy