Location – Local Community, Town or City
Before you can actually pick out a house, you need to choose what cities or communities you would like to live in. There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value.
Economic Stability
When choosing a community for your purchase, it makes the most sense to buy in a city with a viable and stable economy. Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation that your community will still be a desirable place to live.
In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts. These not only provide jobs to the local residents, but also add an income source that the city can use to upgrade and maintain roads and city services.
In fact, you should take a drive and see how well the community is maintained. You have probably heard of "pride of ownership" when referring to an individual home or an automobile. Look to live in a city that demonstrates community pride, as well.
Local Government Services
In addition to community pride, check on the services provided by local government. One
example would be the local library system. Are there several library branches? Do they stock a good selection of books, including recent best sellers?
You should also look into local crime statistics and see how the city compares to the national average and other local communities. Is the police force effective and responsive to community needs? Are fire stations located strategically around the community so that they also can respond quickly in an emergency?
Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens?
Your local agent, if they are a good one, will have amassed a wealth of information on these subjects of inquiry. It is also another reason to always use a local agent.
Schools
Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will have concerns of this nature.
You will want to know if the local schools are overcrowded. Take a drive around and see if there are auxiliary trailers outside the local schools. Call up the local school district and see if elementary aged children always attend the school closest to their home. If not, ask why. Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes?
You should also check to see how local students score on the standardized tests. You can ask your agent about these things, but you should also get the local phone numbers so you can ask yourself.
There are also school reports available for free on the Internet.
Property Taxes
Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more modern schools, well-maintained roads, and bountiful community services.
In addition, you will often find that the "cost per square foot" of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Since the mortgage payment may be lower, but the property taxes a bit higher, the monthly housing costs may be approximately the same in each city.
However, many agents and prospective buyers have a bias against a community with higher property taxes. If resale value is important to you, make property taxes a consideration when choosing the location of your new home.
www.loganmooreteam.com
Thursday, June 28, 2007
Wednesday, June 27, 2007
5 Reasons To Use A Buyer’s Agent
Real estate transactions come with risks, competition, and expenses. With your financial and family future on the line, there are five reasons to use a buyer’s agent in order to give you a fighting chance.
The buyer’s agent is a realtor that has gone through special training with the National Board of Realtors. The training authorizes the realtor to use the specialized sub-title in addition to the realtor title they already carry. The realtor is a real estate specialist. Therefore when you attain the help of a buyer’s agent, you are also getting the experience and training of a realtor.
A buyer’s agent does many things that decrease the risk of purchasing a home for their clients. They also increase the overall satisfaction of the sale, because they look for specific qualifications and amenities. Here are some of the steps a buyer’s agent will take to give you the highest level of happiness with your new home.
1. The buyer’s agent will make sure that there are the correct inspections, appraisals, and market analysis complete to ensure that your purchase is made with a full understanding of what to expect after the completion of the purchase. The buyer’s agent or realtor will make good recommendations to let you know whether the home is safe for your family.
2. A realtor, or buyer’s agent knows the market. They will also know if the price the sellers are asking for is the price you should be paying. They will also know how to negotiate a better price for your benefit. Therefore, you will be making your purchase for the best deal possible.
3. A realtor, or buyer’s agent will know what the newest listings are. They pay for listing information that keeps them up to date on the newest and the best. This is why the realtor or buyer’s agent will be able to help you find a home easier and give you a much broader set options to look at. Realtors also work close with each other to help meet the needs of their clients. Since the majority of homes for sale are exclusively listed with a realtor or real estate agent, some times the only way you will get this information is through a realtor. Also a realtor will use all their tools to gain the best list of homes for you. This would be the use of the MLS or nationwide multiple listing service, their company listing service, and many other options.
4. A realtor will likely know a home is for sale, before it ever hits the Internet. An MLS listing of a home can take between one and ten days to show up. By that time the home could already be sold. Word of mouth just like in any other business works for you. You need to find the right home, so your realtor will tell other realtors about you, and then that realtor will look at what he has. It is just like having a personal liaison in your corner doing all the work for you.
5. Realtors or buyer’s agents understand the contracts, legal documents and the complexity of the overall closing process. Your realtor will know how to complete the consumer-mandated seller’s disclosure, the environmental and structural reports, among all the many other legal reports. Your agent will also interpret the information in the transaction that may be more difficult to understand.
There are many reasons to use a buyer’s agent. The biggest thing to remember is that in most cases the buyer’s agent is paid from the commission from the sale of the house. Therefore, you really would not be paying anything extra. So having the security of having someone on your side is more logical than any other move you will make when purchasing a home.
www.loganmooreteam.com
The buyer’s agent is a realtor that has gone through special training with the National Board of Realtors. The training authorizes the realtor to use the specialized sub-title in addition to the realtor title they already carry. The realtor is a real estate specialist. Therefore when you attain the help of a buyer’s agent, you are also getting the experience and training of a realtor.
A buyer’s agent does many things that decrease the risk of purchasing a home for their clients. They also increase the overall satisfaction of the sale, because they look for specific qualifications and amenities. Here are some of the steps a buyer’s agent will take to give you the highest level of happiness with your new home.
1. The buyer’s agent will make sure that there are the correct inspections, appraisals, and market analysis complete to ensure that your purchase is made with a full understanding of what to expect after the completion of the purchase. The buyer’s agent or realtor will make good recommendations to let you know whether the home is safe for your family.
2. A realtor, or buyer’s agent knows the market. They will also know if the price the sellers are asking for is the price you should be paying. They will also know how to negotiate a better price for your benefit. Therefore, you will be making your purchase for the best deal possible.
3. A realtor, or buyer’s agent will know what the newest listings are. They pay for listing information that keeps them up to date on the newest and the best. This is why the realtor or buyer’s agent will be able to help you find a home easier and give you a much broader set options to look at. Realtors also work close with each other to help meet the needs of their clients. Since the majority of homes for sale are exclusively listed with a realtor or real estate agent, some times the only way you will get this information is through a realtor. Also a realtor will use all their tools to gain the best list of homes for you. This would be the use of the MLS or nationwide multiple listing service, their company listing service, and many other options.
4. A realtor will likely know a home is for sale, before it ever hits the Internet. An MLS listing of a home can take between one and ten days to show up. By that time the home could already be sold. Word of mouth just like in any other business works for you. You need to find the right home, so your realtor will tell other realtors about you, and then that realtor will look at what he has. It is just like having a personal liaison in your corner doing all the work for you.
5. Realtors or buyer’s agents understand the contracts, legal documents and the complexity of the overall closing process. Your realtor will know how to complete the consumer-mandated seller’s disclosure, the environmental and structural reports, among all the many other legal reports. Your agent will also interpret the information in the transaction that may be more difficult to understand.
There are many reasons to use a buyer’s agent. The biggest thing to remember is that in most cases the buyer’s agent is paid from the commission from the sale of the house. Therefore, you really would not be paying anything extra. So having the security of having someone on your side is more logical than any other move you will make when purchasing a home.
www.loganmooreteam.com
Tuesday, June 26, 2007
After Bankruptcy, Rebuild Your Credit Before Buying Real Estate
You have gone through bankruptcy and you do not owe anyone. Now is the perfect time to purchase that home you have always wanted — right? Wrong! Yes, you can probably locate a real estate mortgage lender, since you cannot declare chapter 7 bankruptcy again for at least 6 years. The problem is that you will pay the highest finance charges for the privilege of obtaining that real estate mortgage, charges that will extend over the life of the real estate loan.
Before even looking at real estate, get your credit straightened up first. The bankruptcy will appear on all three of your credit reports from seven-to-ten years, which will make you a higher risk to real estate lenders. You cannot do anything about this; however, you can show real estate lenders that you are handling credit much better now by rebuilding it. This can lower your risk factor, when obtaining a real estate mortgage. Using the following improvement steps, you actually can rebuild your credit in a relatively short time.
First, get copies of your credit report from the credit agencies, and clean them up. You have the right to one free report from all three agencies annually, which can be obtained through www.annualcreditreport.com.
Ensure that creditors, who were listed in your bankruptcy, have cleared their information from your credit reports. Otherwise, it will appear as if you still owe them money and are not paying.
Ensure any creditors not listed in your bankruptcy and you are paying regularly have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. This will increase your chances of getting a loan for your real estate.
If there was a specific event or cause for your bankruptcy, you can add up to a 100-word explanation to your credit report at each agency. The real estate lender will get this explanation as part of your credit report.
It will look especially good to real estate lenders if you have received credit counseling, and the counseling will help you in several ways. A good credit counseling agency will help you create a budget and counsel you in how to use and stick to it. They offer counseling on using credit in your future, as well as how to re-establish your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask them for something in writing to that effect. It can help when applying for your real estate loan
The problem is finding a reputable agency. Some are downright questionable. Here are a few ideas to assist you in locating a reputable agency:
• They should be a member of either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Both are national trade associations.
• Agencies approved by the U.S. Trustee’s office (part of the Department of Justice) are good agencies. You can see those for your area at: http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.
• Interview the agencies, asking what they offer and the cost for each service. Good agencies should meet with you for 60-to-90 minutes, reviewing your financial situation and offering budgeting advice — before doing any credit repair.
• Ask for costs in writing from the agency you choose. They should charge around $50 or less, with budget counseling sessions for less than $20 each.
• Steer clear of those who push their debt management program, where they want you to pay all your remaining creditors through them.
• Check http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm for more ideas from the Federal Trade Commission. Use the credit counseling agencies to help you rebuild your credit the right way. It can take less than a year to achieve; yet, it will make a big difference when you obtain that real estate mortgage.
www.loganmooreteam.com
Before even looking at real estate, get your credit straightened up first. The bankruptcy will appear on all three of your credit reports from seven-to-ten years, which will make you a higher risk to real estate lenders. You cannot do anything about this; however, you can show real estate lenders that you are handling credit much better now by rebuilding it. This can lower your risk factor, when obtaining a real estate mortgage. Using the following improvement steps, you actually can rebuild your credit in a relatively short time.
First, get copies of your credit report from the credit agencies, and clean them up. You have the right to one free report from all three agencies annually, which can be obtained through www.annualcreditreport.com.
Ensure that creditors, who were listed in your bankruptcy, have cleared their information from your credit reports. Otherwise, it will appear as if you still owe them money and are not paying.
Ensure any creditors not listed in your bankruptcy and you are paying regularly have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. This will increase your chances of getting a loan for your real estate.
If there was a specific event or cause for your bankruptcy, you can add up to a 100-word explanation to your credit report at each agency. The real estate lender will get this explanation as part of your credit report.
It will look especially good to real estate lenders if you have received credit counseling, and the counseling will help you in several ways. A good credit counseling agency will help you create a budget and counsel you in how to use and stick to it. They offer counseling on using credit in your future, as well as how to re-establish your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask them for something in writing to that effect. It can help when applying for your real estate loan
The problem is finding a reputable agency. Some are downright questionable. Here are a few ideas to assist you in locating a reputable agency:
• They should be a member of either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Both are national trade associations.
• Agencies approved by the U.S. Trustee’s office (part of the Department of Justice) are good agencies. You can see those for your area at: http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.
• Interview the agencies, asking what they offer and the cost for each service. Good agencies should meet with you for 60-to-90 minutes, reviewing your financial situation and offering budgeting advice — before doing any credit repair.
• Ask for costs in writing from the agency you choose. They should charge around $50 or less, with budget counseling sessions for less than $20 each.
• Steer clear of those who push their debt management program, where they want you to pay all your remaining creditors through them.
• Check http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm for more ideas from the Federal Trade Commission. Use the credit counseling agencies to help you rebuild your credit the right way. It can take less than a year to achieve; yet, it will make a big difference when you obtain that real estate mortgage.
www.loganmooreteam.com
Monday, June 25, 2007
Why Do You Need a Real Estate Appraisal?
Anytime you buy or sell real estate, you need a real estate appraisal. The primary purpose is to find out exactly how much your property is worth. Banks and similar lending companies also require it, before a buyer can obtain a mortgage.
A real estate appraisal develops an “educated and trained opinion” on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.
An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced — things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property.
A real estate appraisal is based on the highest and best use of real property — what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable. The real estate appraisal includes a definition of the type of value that is being developed — whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on.
The Process
The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property. For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser.
Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.
The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal. If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.
Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market.
Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions. Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000. Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount.
For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.
http://www.loganmooreteam.com/
A real estate appraisal develops an “educated and trained opinion” on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.
An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced — things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property.
A real estate appraisal is based on the highest and best use of real property — what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable. The real estate appraisal includes a definition of the type of value that is being developed — whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on.
The Process
The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property. For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser.
Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.
The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal. If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.
Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market.
Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions. Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000. Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount.
For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.
http://www.loganmooreteam.com/
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