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Looking At Homes For Sale How To Evaluate A Community

The perfect home in an imperfect neighborhood may still leave a lot to be desired. When you buy a house, you’re essentially buying a stake in the community in which it is located. If you dislike important elements of that community, you’re unlikely to enjoy living there.

Unfortunately, a lot of first-time homebuyers overlook neighborhoods when visiting homes for sale. Many purchase their “dream houses” only to become miserable down the road. With this in mind, we’ll provide a quick guide for deciding whether a community offers the features you and your family consider important. One side note: the following discussion does not address community developments that might make a home a good investment. Instead, we’ll focus on whether the neighborhood poses a good fit.

Consider Your Priorities And Preferences

Before you visit properties, you should have a good idea regarding what you want from a neighborhood. For example, think of its location with respect to your job. How far will you need to commute each day? If you have young children, consider the quality of nearby parks and local schools. You should also think about the places that are within walking distance. Are there restaurants, stores, and movie theaters near the home?

Don’t forget to consider parking in the immediate area. Is there enough space on the street for visiting friends and family?

Another aspect first-time homebuyers often neglect is whether a community is quiet or noisy. For example, a secluded street filled with older neighbors is likely to pose less noise than college kids renting the properties. Keep in mind, the noise level may be less obvious during the day. Ask your real estate agent to fill in the details.

Digging Deeply Into Neighborhood Details

Once you have narrowed your search to a few homes for sale in locations that meet your preferences, you’ll need to dig more deeply. Take a closer look at the quality of the local schools. How do they perform in comparison to other school districts? Have the teachers established their careers there?

Also, note the locations of local parks and community centers. Living within walking distance is usually an advantage, especially if you have children. But living right next to a park may become problematic due to noise on the weekends and evenings.

Look up crime rate data for the area (this information can be found online). If the rate is higher than that of other communities, factor this into your buying decision.

If these details are favorable, home values in the area will likely perform better over time. More importantly, your experience as a homeowner is likely to be more rewarding.

Visit The Community For A First-Person Experience

Most of the due diligence we’ve discussed thus far can be done online, or by speaking with your real estate agent. At some point, however, you’ll need to visit the neighborhoods in which you’re thinking of living. When you do so, take note of your initial comfort level. Does the community feel safe, friendly, and conducive to your priorities? Look for “House For Sale” signs. One or two does not suggest a problem. Several on the same street might.

Also, take the time to speak with those who live in the area. If neighbors are outside, ask them to share their experience as homeowners in the community. Inquire about things they enjoy (nearby restaurants, quiet streets, etc.), and those they would like to see changed.

This will provide a personal impression of the neighborhood, and give you a broader perspective than you’ll receive online or by talking to your agent.

Handling The Logistics Of Buying A Home

Once you decide on a home, you’ll need to determine whether it fits your budget. You’ll also need to work with your lender to identify the type of mortgage that makes sense for you (fixed rate, adjustable rate, interest-only, etc.). Your real estate agent will then help you to submit an offer, and negotiate the price with the seller. When escrow opens, home inspections and other details can be finalized prior to assuming ownership of the property.

Buying a home is an exciting process, even for those who have gone through it many times. But don’t forget to consider the neighborhood in which the house is located. It will play a key role in your experience as a homeowner.

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Aspiring Homeowner’s Guide To Earnest Money Deposits

Most homebuyers are familiar with down payments. Depending on the real estate market and their lenders’ requirements, they may need to post up to 20 percent of a property’s price to secure a mortgage loan. For example, if the price of a house is $300,000, the lender may extend a loan for $240,000. The homebuyer must post $60,000 (i.e. 20 percent) as a down payment.

An earnest money deposit (EMD) works differently, but is often just as important. We’ll explain how they work below. You’ll learn why they’re used as well as how much to offer a seller. We’ll also provide several tips for ensuring your EMD (sometimes called an earnest payment or “good faith” deposit) remains safe. Lastly, we’ll explain what happens to your payment in the event a transaction falls through.

Earnest Money Deposit Explained

When a property is listed for sale, its owner typically receives bids from multiple potential buyers. In a seller’s market, where demand outstrips the listed inventory, a seller might receive dozens of offers. But how does he or she determine which bids are serious, and which are merely “testing the waters.” If the seller signs a contract, agreeing to accept one buyer’s offer, the other potential buyers are forced to look elsewhere. If the transaction falls through, the seller must work to attract potential buyers again.

The solution is to make an earnest money deposit. This is an amount offered by a potential buyer that indicates he or she is serious about purchasing the property. If things fall through, the money is forfeited to the seller. This reduces the seller’s risk of sending away other buyers.

EMDs are optional in most real estate markets; you can choose to not offer it to the seller. However, bear in mind that most sellers prefer them, and include them in the purchase contract. This means that offering, and then failing to present, a good faith deposit is a breach of contract.

Offering An Appropriate Amount

There are no rules that dictate the amount of an EMD. In some markets, it’s standard protocol to post 3 percent of the home’s selling price. Elsewhere, serious buyers typically post 1 percent. In still other markets, it’s common to submit a dollar amount rather than a percentage (e.g. $6,000 instead of 2 percent). Also, earnest payments tend to rise in a seller’s market. When dozens of potential buyers are vying to purchase the same property, a larger EMD makes their bids more attractive.

It’s worth noting that good faith deposits are usually applied to the buyer’s down payment. For instance, suppose your lender requires you to post 10 percent as a down payment on a home priced at $200,000 (i.e. $20,000). Further suppose the seller requires a 2 percent EMD (i.e. $4,000). In this scenario, you do not need to post $24,000. The good faith deposit is considered part of the down payment.

Measures To Safeguard Your Earnest Payment

An earnest money deposit should never be given directly to the seller, even with a contract. Nor should it be given to your real estate agent. The money should be presented to a third party – for example, an escrow company – and held in an escrow account created for the transaction. Ask the third party for documentation showing the deposit was made into the account. Taking any other route exposes your EMD to unnecessary loss.

What Happens When The Transactions Falls Through?

Outcomes vary depending on the state in which you’re purchasing a home. In some states, the seller has the right to keep the earnest payment if the transaction is canceled for any reason. This includes if your mortgage loan falls through, or you simply decide to withdraw your offer.

In other states, the buyer has a short grace period. That is, if the transaction falls through within a specific number of days, the EMD is returned.

Earnest money deposits are little more than a show of good faith. Without them, however, many sellers will refuse to entertain your offer.

Check out the great real estate deals available from ValleyFarmsandLand.com

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Is Buying A House Better Then Renting?

Some people are currently considering the advantages and disadvantages of renting versus buying their own house. In some regions of the country home rental costs are nearly 50% less than it would cost to get a house with a standard thirty year mortgage. Many people across the United States are wrestling with their home’s mortgage payments right now and the economy is not getting much better at the moment.

When you are a renter then you do not usually have to worry about your house’s maintenance other than a few standard home repairs. Most rental houses have a management service that handles large home improvements and maintenance problems. People who rent their house do not often have to pay property taxes, though some states do have a renter’s tax. The benefits of renting a house are usually pretty clear. Renters don’t get to enjoy rising home values but they also don’t have to worry about selling a house that is worth less than the mortgage. You also do not have to rely on finding new tricks to sell your home for less than it’s worth.

While many areas have rental laws, sometimes landlords can stop renting to residents for no good reason. When you rent your house then you have to remember that you are not building any sort of value in your house. Renters, however, often have limited control over their own home’s upgrade projects.

The nerve-wracking process of applying for a home loan is difficult for many people these days. Home owners usually have more flexibility to upgrade their homes than renters, but home owners obviously have to be able to afford those home repairs. On the plus side, some home remodeling projects can give you an income tax credit. Owning a house usually is usually a more costly decision in the beginning.

Owning a home may allow you to build up equity in your house while renting may put more cash in your pocket on a monthly basis. The choice to buy or rent a house is mostly a personal one. Both renting and home ownership come with obvious pitfalls and benefits.

Don’t think you can afford to leave your rental and buy a house of your own due to a low credit score? There are actually a number of things you can do to get a bad credit mortgage approval at a fair rate. Visit our site to learn more!

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5 Reasons To Buy A Home Now

Many yearn to own their own home. A place where they can do pretty much anything they want. If they want to paint a bedroom a certain color then they can without having to ask a landlord. Owning a home is part of the American dream. Over the last 5 years it became a night mare for many people as the real estate bubble popped and caused this current economic downturn. However, the perfect opportunity has presented itself to many people. Homes are affordable again. Here are some reasons to purchase a home now.

1. Interest rates. Interest rates are very low right now. In fact, we have not seen these rates for decades. Purchasing a home now will allow you to obtain a mortgage with low monthly payments saving you thousands of dollars in interest over the course of the loan. Interest rates are bound to rise again as the economy stabilizes. The time is now to take advantage of historically low interest rates.

2. Home prices might be at the bottom. There is no way to know for sure. Some believe priced will continue to fall while others think prices are going to rise because of a shortage of properties for sale. Regardless of who is right, the facts are that home prices are much lower than they were 5 years ago. You should only be buying a home if you are planning on owning for a number of years. Don’t plan on buying if you need to sell a year from now.

3. It is just nice to live in a place that you own. You have more control when you own where you live. Suppose your landlord decides to sell. Then you have to go through the headache of moving and finding a new place to live. Being a renter can be a hassle.

4. Build Equity. When you purchase a home or property you are creating wealth. As home values rise and mortgage payments are made, the value of your home increases. The difference between what the home is worth and what is owed on the mortgage is the available equity. As your equity builds so does your wealth. Assume you purchased a 100k home with a 15 year mortgage. Home values during that period went up anywhere from 1-5% a year during that fifteen years. When your mortgage is paid off you will now own a property that is worth anywhere from 120-175k, clear and free. You have just increased your net worth by that amount. Not only have your enjoyed your home during this period, you have created wealth by simply taking advantage of purchasing a home at the right time.

5. Improve your credit. When you get a mortgage and pay on time your credit score will improve. Homeowners are considered to be a lower risk and are typically given a higher credit score. A better score means that you can borrow money more easily and at lower rates.

There may never be another time like this where prices and interest rates are low. This window of opportunity may disappear. I don’t see rampant speculation anytime soon that will make homes unaffordable again however interest could and probably will rise. Consider making a home purchase today.

Marc Rasmussen sells Sarasota condos

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New Homes in Commack: Is New Right For You?

If you’ve ever thought about buying new construction on Long Island, right now is the time for you to be looking. With the real estate market where it is, it is more affordable than ever to buy new construction. On Long Island, your choices are limited. The amount of free real estate available in this once farmland area, is virtuallycompletely developed. Many communities have instituted limitations on construction, conserving the remaining farmland and open areas.

However, new construction is still available and could be perfect for the new homeowner. If you’ve been looking at real estate, and have considered new construction, you should consider this:

1. Older houses, while “charming” on the outside, are, in fact, old homes. Over time they age. Many homes in the 50 to75-year-old range have become “knock downs”bought by builders to put up new housing. If you’re buying an older home, it may cost you more in the long run with upgrades and repairs.

2. New construction gives you more flexibility. Very little people ever find the “ideal home” of their dreams. Generally, you need to paint, spackle, remove carpeting, move walls, re-do bathrooms and kitchens and a list of various tasks that become increasingly costly. That older houses that looked like a deal becomes extremely expensive once you’ve done the repairs and alterations you need.

3. With new construction, you do not have to live through renovations. Kitchen additions, expansions and changes to your house could take months-even years. All the while, you are living in a construction zone.

4. You also have the additional expense of doing these renovations, which must be purchased on top of the asking price of the house. Many families have to save for many years to have the available money for upgrades. Others may try to take second mortgages or home-equity loans, however this can prove unsuccessful-especially with more stringent lending requirements.

You may want to borrow an additional $175,000, but your home is not worth an additional $200,000 today. Therefore, you lack the collateral to support that home equity loan. In comparison, new construction, even if slightly more expensive, has the full cost in the home already, which is what mortgage companies want to see.

5. When selecting real estate, and assessing existing homes, you have very limited options. The real estate is “as is”-meaning the lawn is what it is, the plantings are what they are, and the yard is what it is. Usually, with new construction, it is usually newly landscaped or in basic form so that you can landscape as you want (generally, new construction without landscaping is less expensive than landscaped). With new construction, you are buying beautiful new property or freshly graded land that is ready for landscaping.

When you’re ready to buy new construction, be sure to remember all of these points in mind. As you examine the cost of the home, acknowledge the final expenses beyond the asking price. Many families discover far better values with the newly built houses vs. a less expensive existing house that needs renovations. Even if you are handy, a renovations are not free. You also need to come up with the cash to pay for those improvements (whereas with new construction, those expenses are built into the asking price and are covered by the mortgage).

Article by Craig Axelrod, a Partner in Emmy Homes, one of Long Island’s most trusted real estate developers. Their Commack real estate features new construction in Commack. Visit EmmyHomes.com for information.

categories: home buyers,homebuyer,first time home,first time home buyer,buy home,buy house,purchase home,purchase house,new home

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Purchasing a New Home in the Fall

As the summertime closes and fall approaches, many people thing about whether it’s a good time to buy a house. This can actually be the best time to purchase since most purchasers wait for the spring. You can locate many opportunities on desirable houses. This is particularly true with new construction, such as with Emmy Homes in Commack New York.

When you go to EmmyHomes.com, you will see a variety of new construction homes available. Even during this time of year, you may be able to buy a new construction home that had not sold over the summer. Similarly, if you want to choose your house and have construction started, now is the time to speak to the builders. If they can get a foundation in the ground before the frost sets in (more of an issue in the North) your project can run through the winter. If you’re looking for a new home to occupy at the close of this new school year, start the process now.

As you look for a new home, what questions should you ask?

First, is this a one-off contractor or is this someone who builds full developments? You want to work with a larger scale construction company because they are more likely able to see it through in the timetable that you’ve allotted. While we do not oppose small builders, if this is the only home that a construction company is working on, what will happen if the builder runs out of money? What if his plumber gets sick? What if his plumber walks off the job – you could be delayed for weeks or months.

When you’re dealing with a more substantial builder, they have assorted people in each trade. If they are understaffed, they can promptly locate replacement workers. In the end, you are much better off with an established reputable builder who will finish the task, as opposed to a small builder who, unfortunately, can bring a great amount of uncertainty.

Second, look at homes that the contractor has already completed. Do you like them? The artist drawing may be gorgeous, but the house may be something else. A contractor who is consistently delivered high quality construction is worth their weight in gold. A shoddy contractor who under delivers is not worth the savings he can bring.

Finally, consider the long-term cost of the home. Not only does it carry a buy price, but it must be maintained. A well built home may have lower maintenance costs. Also, is it energy efficient? An “energy star” house meet certain government requirements on energy efficiency. Not only is this good for the environment, but can yield substantial savings on your energy costs. An energy Star rated house is also desirable on resale. You may plan on living here for 20 years, but unexpected issues happen and you want to choose a home that, if you need to, will be very marketable for resale. So yes, the summer of 2009 has passed. Nonetheless, there are vast options to purchase new construction as we go into the fall season. Websites, such as www.EmmyHomes.com can show you many choices of homes that are available in your area.

Tips by Craig Axelrod, with Emmy Homes. Emmy is one of Long Island’s most trusted home developers. Emmy’s Commack development features luxury homes in Commack. Visit EmmyHomes.com for details.

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Commack Real Estate: Now Is The Time To Buy

The real estate market, including the market in Commack New York, has been hit hard over the last several years. This nationwide recession has certainly had an impact on the real estate market, creating opportunities for those who are ready to buy.

Interest rates remain at historic lows, making real estate in Commack more affordable than ever. Interest rates usually range from 4 to 6%, roughly half of what the rates were just a decade ago.

If you’re getting ready to purchase a home , whether you are a first time home buyer or moving from an existing home, there are many questions to ask yourself:

Is buying a house now a solid long-term investment? Given that the real estate market has fallen 20 to 30%, you’re purchasing a house at deep discount to prices from three or four years ago. You’re purchasing at $.70 on the dollar. When prices return to normal levels, you will see an appreciation of almost 50%.

Are you a good investor? Most people are not. They lack the discipline to make long-term investments, and often hold off investing and saving-until it is too late. When you invest in a home, you are making a long-term commitment. This, in a very real sense, represents forced savings. Every month, you have the chance to build equity in your house as you pay down your mortgage. Historically, real estate appreciates greatly over time. Taken with a long-term view, real estate remains one of the best investments available.

Am I purchasing in the right area? Commack New York is a beautiful area to reside in and to raise a family. An established neighborhood, it has the resources of a major suburb with high quality of living standards. With new construction, you are able to get the home of your dreams. The builders have designed wonderful homes, and very often you are able to customize to suit your needs. Given the current economic conditions and reduced real estate prices, now is a great time to purchase your first house or your next home.

Are there advantages in buying new construction? Yes. New construction tends to be bigger, more current and can easily be customized to suit your needs. In contrast? When buying an existing house, you must very often go through costly renovations to customize that house to your taste. New construction offers you the opportunity to make those alterations before the houses built. Usually, it cost 1 to 4 times as much to make changes to an existing structure as opposed to simply changing the plans on a house that is yet to be built.

What questions should I ask of a home builder?

If you’ve never bought a new home before, there’s several things that you should ask the builder:

1. Does the builder have experience within the county? To build a house, you need permits, zoning approvals, and compliance with county and local ordinances. An experienced builder is aware of these requirements; and inexperienced builder is not. Mistakes here can be extremely costly and presents massive delays.

2. Does this builder put up one house at a time, or have experience in building developments? Often, you are better off with the builder who works on multiple developments at once. While this may seem counterintuitive, a small builder who only handles one task at a time works with a limited crew. If any member of the crew-a plumber, carpenter or electrician-is unavailable, your construction may come to a halt for weeks. In contrast, a larger builder has assorted craftsmen available to him, and can deliver a steadier construction project.

3. Do you want to be in a new neighborhood or a single renovated house within an old community? The neighborhood around you not only impacts the resale value of your house, but also impacts your lifestyle. If you are in a neighborhood with dilapidated homes, and yours is the only new construction in the area, your home can feel out of place. If the builders will bring a new development, and you are one of the new homeowners in that new community, there is a much better fit for you and your home. Additionally, all of the people living in that community will be moving in at about the same time and will have the opportunity to form friendships and relationships. If you are moving into a block with families that have lived there for years, you may be the outsider and maybe quite some time for you to “fit in”-if at all.

Craig Axelrod is one of the executives from Emmy Homes. Emmy is which is one of LI’s top home builders. Emmy’s Commack development features new construction in Commack. Visit EmmyHomes.com for more details.

categories: home buyers,homebuyer,first time home,first time home buyer,buy home,buy house,purchase home,purchase house,new home

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