Real Estate Information Archive

Buy: Buying an existing property isn’t an instant process, but it does not take long to get pre-approved for a mortgage, go house hunting and find the house you love, close on the deal, and move in.  

Build: According to the latest research from the US Census, new construction takes an average of seven months from planning to moving in.   

Buy: Negotiating is key to many home purchases and if a house needs some work or repairs, the seller usually makes exceptions and changes to reflect reasonable inspection findings. 

Build: Model homes will be shown with upgrades that can add thousands to the base selling price.  Customizing your dream home, however, cannot have a price tag. 

Buy:  What you want in landscaping, such as trees, a garden, or an established lawn, are ready for you to enjoy. Personalizing it with your favorite plantings will cost much less than starting a new lawn and landscaping. 

Build:  You may see a brand-new yard as a canvas and plan your own landscaping design.  Where you want trees or outdoor structures are all according to your imagination--the possibilities are almost endless! 

Buy:  An earnest money deposit generally starts at 1% of the price of the home.  Closing costs can sometimes be part of the sale negotiations, but not always. 

Build: Many builders prefer an earnest money deposit to be at least 5% of the sale price and closing costs do not vary as much unless the builder is offering to cover those costs as a purchase incentive. Just ask--you might receive!  

Buy:  Buying an older home may require some work to update wall colors/coverings flooring or fixtures.  Keep in mind that if any of those jobs can be DIY, costs will be significantly lower, and can be done when you have the extra money in the budget. 

Build:  A new build may not always be maintenance-free. Whether you are considering a new development or building on your own land, contact owners of the builders’ completed homes and make certain you will be paying for a quality home without new construction issues. 

- Write a list of needs and wants for your future home, beginning with size, the number of rooms, type of neighborhood, size of the yard, garage, or no garage, etc. Be realistic, as there is only so much house you can afford. Set a price range, and stick to it. 
 

- Create an income/expenses list, or use this handy budget calculator so you may see exactly where your money is going.  If there is little left of your paycheck at the end of the equation, it is time to begin eliminating unnecessary purchases so you can start saving. 
 

- Start paying off any debt you currently have credit cards, car loans, or personal loans. Eliminating these balances will reduce your debt-to-income ratio, and will show lenders you’re serious about paying for a home. 
 

- Once you start paying off debt, start depositing the amount of those payments into a savings account. Not only do you need to save towards the payment, but you’ll also have other costs for buying a home: appraisal, home inspections, and other fees may or may not be added to the closing costs. 
 

- Some people that live on low incomes may feel like homeownership is a pipe dream, but that is not true. Many government-backed agencies will assist those with limited incomes buy a home: 

- Federal Housing Administration offers loans with low down payments (3.5%). 

- USDA  helps low-income families in rural areas with purchasing a home with no down payment. 

- VA loans assist veterans with home-buying, as well as home repair. 

Mortgage lenders in order to be adequately prepared to begin looking for a new house, you should be pre-approved. It’s best if you look at a few different lenders in order to find the best loan, so before you go, see what the balance recommends for finding the right mortgage for you. 
 

Real Estate Agents The agent you choose to assist you on your new home search is extremely important, as they will be your resource and constant contact throughout the home-buying process. In most transactions, there will be a listing agent representing the sellers, but it’s unlikely you’ll be meeting them. 
 

Appraiser Your lender wants to be certain that the house you want to buy is worth what the seller is asking and will have a home appraisal done by a qualified person.  Learn more about what’s involved with the appraisal from realtor.com®. 
 

Home Inspector Once your offer has been accepted, it’s in your best interest to hire an inspector to go over your prospective new home.  You don’t want any surprises with structural issues or mold or insect infestation after you have the keys in hand. Call a few before you decide who to hire, and ask these important questions when you contact them. 
 

Homeowners Insurance Agent This agent should be familiar to you, as you already have auto or even renter’s insurance. Most insurance companies offer a discount for having more than one policy with them, and it may be an easy fit to go with your current company. Don’t let that stop you from shopping around for better rates, however. 
 

Real Estate Attorney Many states require you to hire an attorney, as they will go over all the documents, handle funds, and perform the title search, to name a few of their jobs during the home sale process. Find out why it’s always a good idea to have a real estate attorney, whether it’s the law or an option. 
 

Title Insurer  In case there are any questions about the sale of the home being legitimate (no liens, family feuds, etc.), you’ll need title insurance, and in most cases, the lender or attorney will already have that lined up. 
 

Mortgage Servicer Sometimes, a lender will sell your loan to a mortgage servicer, and you will be notified if that happens. Learn the difference between a lender and a servicer at Investopedia.  

- You know what you want in a new home because you know what kind of lifestyle your family lives.  A buyer agent will listen and learn about your needs, wants and don’t-wants, take that information, and you don’t have to do another thing but wait for them to find prospects for you to see! How easy is that?! 
 

- Hiring a buyer agent opens a whole world of real estate options of which you are likely unaware. REALTORS® not only have a network of other agents, but the tools and expertise that can connect you with the right house sooner than you can find on your own. 
 

- The experts a real estate agent has at the click of a mouse or tap on their smartphone will all work together to ensure your home-buying process goes smoothly! Real estate attorneys, tax experts, and inspectors are just a few of the people you may need during the home-buying process. 
 

- If problems arise, your buyer agent isn’t always a miracle worker, but they will use all their means to see that the issue is resolved.  They want your transaction to go as smoothly as you do. 
 

- In most cases, you will owe a buyer agent nothing when you buy your house. Fees are normally paid by the seller, so you’re getting an exclusive, personalized service free! 

- As defined by the Business Dictionary, a condominium is a “Single, individually-owned housing unit in a multi-unit building.” In some cases, a condo is in a co-op, which is much different than owning a single unit. 
 

- Architecture of the buildings varies, but the exteriors and common areas are owned by the Homeowners Association (HOA). 
 

- Most condo HOA’s offer community perks, such as a pool, community center, playground, tennis courts, or workout gym. Landscaping is taken care of, and many condo complexes offer gated security. 
 

- Homeowners insurance premiums are normally lower, as the owners only insure the unit’s interior. 
 

- Perks come with a fee, and that will vary from HOA to HOA. House hunters are given this information up front so they can be sure they can handle the added fees in their budget. 

- “Two or three storied single-family housing unit, often connected other such units via party walls.” --Business Dictionary 
 

- Unlike condos, townhouse buyers own the exterior of the unit as well as the interior. 
 

- Architecturally-speaking, the exterior of townhouses in a neighborhood are generally the same style.  
 

- Owning the exterior of a townhouse means you have control of its appearance.  While those communities that have an HOA means you may be limited to certain paint colors, etc., owners otherwise have free rein for upgrades. 
 

- Not every townhouse community is part of an HOA, but either way, the owner is responsible for the upkeep of the landscaping. Some non-HOA neighborhoods still have a few perks, but upkeep for these amenities isn’t a given. 

- Moneycrashers.com defines a duplex as “...a house or building with separate entrances for two families. The units can either be on separate floors (i.e. two-story house) or side by side.” 
 

- Purchasing a duplex usually means you will be purchasing both units--one whole building, though you will find some municipalities that allow half-unit sales. The owner is solely responsible for upkeep of interior, exterior and landscaping. 
 

- For ‘sandwich’ families, a duplex meets important needs: aging parents can live close by their families but have the privacy of their own home. 
 

- Perfect for someone who is interested in a starter investment, renting out the other unit will help with the mortgage, taxes and utilities if the unit shares those meters. 

Age of the house isn’t a factor if the house is structurally sound.  Just be certain to ask about updates or add-ons, and any other factors that could be problems with an older home. 
 

Poorly maintained curb appeal can be a turn-off as soon as you drive up, but if the house is great, the landscaping can be taken care of with a little hard work, new front door and mailbox, and a few pots of plants. 
 

Unattractive Paint/Wallpaper Walking into some can be like walking into a time capsule when you see a mauve living room, or a bathroom with swans adorning the wallpaper. A gallon of paint can take care of the ugly.  Focus on the structure of the walls, and check for cracks or holes.   
 

Dirty carpets can be a negotiating point when you make an offer on the house.  Sometimes the seller is willing to give credit for replacing the carpet or may change it out themselves.  Do, however, lift the corners of the carpet to see if it’s covering hardwood. 
 

Smells like cigarette smoke and animal odors can be a turn off but remember that a thorough cleaning and airing-out is what it takes to freshen up a house.  Moldy smells shouldn’t be ignored, however. 
 

Remember that many people that have an extra bedroom set it up as an office or use what's listed as a dining room for a sitting area.  Don’t let that keep you from imagining a sleek new dining room suite for entertaining, or the much-needed third bedroom for your growing family. 
 

The current owner’s decor may not be your style at all, but you’re not buying their furniture!  Simply take note of the general layout and size of each room to determine if the house will work for your needs. 

- A “Bank-Owned Home” is just that:  the owner stopped making payments, and the lender is in the process of auctioning the home to try and recover the money they loaned.  Houses that are “Real Estate Owned” mean that the bank’s auction didn’t result in a sale and is being sold through a real estate agent. 
 

- Vacant homes can have all sorts of issues: mold, vandalism, pest issues, stolen copper piping, and neglected landscaping are just a few.  Before you make a bid, go and see the home for yourself, and decide if you can afford the sale price plus the cost of repairs. 
 

- Hire an inspector to go to the house with you so you’ll have an idea of exactly what needs to be done.  You don’t want to underestimate renovation costs. 
 

- When considering the asking price, and you have taken steps to get a contractor bid on all the rehab, use this formula to calculate your offer:  80% of the appraised value minus the cost of repairs. 
 

- Investing in a foreclosure as a rental will require less trendy but rugged materials and flipping to resell might be more expensive (and more headache!).  Moving into the home yourself can keep initial costs in check if you’re willing to do what’s necessary before moving in and holding off on upgrades. 
 

- Some foreclosure purchases must be made in cash, and that can put investors at an advantage.  In case cash isn’t a requirement for the purchase, have proof of pre-approval from your lender when you make your offer. 

- The Department of Housing and Urban Development has a list of free classes in every state, from credit counseling and home maintenance, to housing for seniors.  Click on your state and find all that’s available to you. 

- If you are purchasing your home through FHA, USDA or other agency, you may be required to take the courses. 

- Before deciding what workshop is best for you, make sure it is certified through HUD, and any credit courses are nonprofit and accredited by the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. 

- Don’t wait until you’ve found a house you want to purchase before signing up!  Find a course that will help you learn the ropes from house-hunting to closing so you’ll feel confident when you contact a RealtorⓇ to begin your search. 

- Credit counseling is best done about six months before you start looking at homes, so you can learn about improving your credit score, as well as creating a budget and sticking to it.  You want the highest credit score possible so you can receive pre-approval for a mortgage. 

- Don’t have enough saved for a 20% down payment?  A workshop will help you find a program that will assist you with finding low down payment programs, as well as if there are any grants available in your community. 

- HUD-approved counseling agencies usually offer one-on-one sessions so you can get a better understanding of your own personal financial situation, as well as answer any specific questions you may have. 

- Many workshops have more than one “instructor;” you will hear from lenders, appraisers, inspectors, and insurance agents that will discuss their roles in the home-buying process.