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For over 35 years

Posts Tagged ‘first time homebuyers’

How To Win A Bidding War!

A bidding war is when at least two prospective buyers have made legitimate offers for a home that are similar and the Seller wants to select the best offer and terms for themselves. Bidding wars are common—in most of 2020, over half of home offers presented have faced competitive bids, according to Redfin’s study. Although historically low interest rates have sparked buying activity recently, some neighborhoods are always sought-after and attract multiple offers whenever a home comes up for sale.  Exclusive Buyer Agents are experts in winning bidding wars and getting credits during the due diligence period.

Expect to be in a bidding war In a hot housing market, it’s often not enough to quickly make an offer on a house but to have the highest price and best terms.

Here are a dozen ways you can get an edge on the competition.

  1. Offer to Pay in Cash

If you have the ability to offer an all-cash bid, you gain a distinct advantage because you eliminate the possibility of a mortgage falling through before closing. Buying with cash will make the process go quicker because you won’t need to go through the approval process with a lender, who would also request an appraisal. If you can’t cover the entire purchase price in cash, you could agree to a larger down payment on the house, which increases your approval odds and might make your bid more attractive.

  1. Get Pre-Approved

Pre-approval is a step most buyers will take anyway, but it’s absolutely essential for anyone in a competitive bidding situation. Pre-qualification is not enough, as it doesn’t show that the lender conducted the same amount of due diligence—such as checking your earnings and doing a hard credit check—that a pre-approval would require.

  1. Know Your Financial Limits

When you’re preparing for a bidding war, think of it like an auction—you need to know how much house you can afford before you actually bid. Once you know the maximum amount you’re willing to bid, you can include an escalation clause in your purchase offer to ensure you can instantly counteract any other bid. An escalation clause lets you increase your bid to avoid being outbid by another buyer up to a specified amount.

  1. Provide More Earnest Money

Buyers typically provide 1% to 5% of the purchase price as earnest money—a form of a security deposit—in a purchase contract, which gives sellers the assurance that you will follow through with the purchase. If you bail out on the contract without citing a contingency, you will likely lose the earnest money. If you put down more than the typical earnest money amount, it will tell the seller that you’re determined to follow through to the closing.

  1.  Be open to making offers sight-unseen

Speed is key in a seller’s market as competitive as this one. If you’re interested in a home but live far away or just haven’t been able to tour it, you can still throw your hat in the ring. Video tours and 3D walk-throughs have made sight-unseen offers much more feasible. Almost two-thirds (63%) of people who bought a home last year made an offer on a property that they hadn’t seen in person.

  1.  Remove Some or All Contingencies

When you make an offer to purchase a house, you know the deal could fall through for numerous reasons, and you don’t want to lose your earnest money because of it. That’s why you include contingencies in the purchase contract; if the home inspection uncovers major problems or you can’t sell your current home in time to close on the new one, you can get out of the contract without penalty. Almost no offers contingent on the sale of a home will win a bidding war. Sell your home, rent and then start trying to get a home under contract. Simultaneous closings are so 1990’s.

If you can’t waive contingencies, sweeten them for the seller. Opt to expedite the contingency timeline.

  1. Be Flexible on the Move-in Date

First-time home buyers and those who have already sold their previous home might be in a position to be flexible with the sellers on their move-in date. A seller might ask for more time if they have concerns about potential delays for a new home build. In this case, they could go through the closing and then rent the home back from you for a few weeks or a month. This flexibility could be as valuable—if not more valuable—than a higher bid on the house.

  1.  Start low, bid high

A lot of successful buyers today win by making an offer that exceeds the asking price…in fact it is expected. This also means that a lot of buyers end up exceeding their budgets. To prevent this, only search for homes that are listed 10-15% below what you can afford, so that you can make an over list price offer.

  1.  Offer to pay some of the seller’s costs

Home buyers can make their offers more competitive by offering to pay for expenses that are typically covered at least partially by the seller.

  1. Write a Personal Note

Home sellers, especially ones who have lived in a home for a long period of time, can sometimes be swayed by a personal note that explains why you believe this is the home of your dreams. For example, you might know that the current owner raised a family in the home, and you can discuss how you hope to do the same. It might seem a bit over the top, but it’s certainly worth a try when not much separates your offer from others. And yes—sometimes it works.  Avoid putting any personal information in the letter that may expose the Seller of real estate agents from violating Fair Housing laws.

  1.  Prepare to lose before you win 

With more than half of offers facing competition these days, it’s more likely than not that you’ll get into a bidding war if you’re in the market for a home. It’s also wise to know when to walk away. It’s OK to put your search on hold if you reach the point where you’re not comfortable making the aggressive offers that are often necessary to win in today’s market. You don’t want to end up with buyer’s remorse, after all.

  1.  Use an experienced Exclusive Buyer Agent that has been successful with winning bidding wars and speak with their references. Be prepared to ask to be in a Back Up position if you lose the bid. The market is too competitive and offers move too fast for novices to be effective at winning bidding wars in a multiple offer situation.

Tips for Buying a Home in a Seller’s Market

Seller's market
Seller's market

Buying a home in a Seller’s market always has its challenges. But when you’re trying to do it in a seller’s market, the difficulty can reach a new level. When the market favors the seller, time is of the essence. Multiple offers happen with more regularity in a seller’s market than a buyer’s market, because a seller’s market is defined in part by low inventory and a surplus of home buyers. A beautiful home that is priced well can attract more than one offer.

In a seller’s market, you should always assume you’re competing against several other offers. However, that doesn’t mean you can’t buy a new home in a seller’s market, when there are more buyers than homes, and sellers can afford to hold out for higher offers. You just need to make sure you do it right and arm yourself with the right information:

Here are a few things to consider as you prepare your offer when buying in a seller’s market:

Choose an Experienced REALTOR: In sports and in business, it’s important to have the best players on your team when facing fierce competition. In a seller’s market, that means choosing a real estate agent who not only has proven expertise in the neighborhoods you’re interested in but is also highly responsive and efficient. Make sure to use an Exclusive Buyer’s Agent that owes you a fiduciary and works in your best interest.

Demonstrate Credit Worthiness: You should get Pre-Approved for a home mortgage with a local lender before touring homes if you need to get financing. By obtaining a pre-approval for a mortgage before you start home shopping, you’ll know how much buying power you have. Your offer may have far more credibility than competing ones where buyers didn’t take this step.

Lower Your Expectations: When the inventory of homes is limited, you probably can’t afford to wait for the perfect house to hit the market. Prepare yourself to adjust your expectations. It makes the most sense to make exceptions to your criteria for things that can be changed. For example, you can renovate or add a bathroom someday, but you can’t change the home’s location or lot size.

Make your Best Offer first, be Ready to Bid: Make your best offer but be prepared for it not to be your final offer. High home prices can lead to home appraisals that don’t climb as fast, leaving lenders to not fund the loan. Home buyers should have money set aside the pay the difference between a contracted purchase price and the appraisal.

By Prepared to Make Concessions: Your relative lack of power in a seller’s market doesn’t just affect the question of price. It carries over to every other aspect of the deal, too. Shorten the inspection period, be flexible on closing dates; you should be prepared to accommodate the seller’s needs even if it is an inconvenience to you.

Don’t be that buyer who wants to wait until the weekend to view a home in a seller’s market. By the weekend, that home could be sold. Try to be one of the first showings. Sellers usually don’t enjoy having buyers come through their homes at all hours of the day, so most would like to see their home sold quickly. If you write a good, fast, and clean offer, your chances of acceptance are far better than those of a buyer who is unprepared or is unrealistic on price.

Finally, don’t get carried away with the pressure to buy, even in a seller’s market. Remember that a home decision has a long-term impact on your financial future. It may be better to let a house go than make a poor decision that’s expensive to change.

How To Set Up A Home Office

Home Office

Home Office

I’ve spent more than three decades with a home office. When you work at home, even part time, you discover that a makeshift desk area on a kitchen counter or the dining table isn’t the best setup. Having a dedicated home office, even if it’s compact, makes a big difference in comfort and productivity. Having a dedicated space also serves as an important signal to those who live with you that you’re ‘at work’. Create boundaries within your home that your family members understand.
Stake Out Your Spot 
You need to pick a spot in your home with the fewest distractions, and where all the essentials (like electrical outlets and your modem) are close by. Modern WiFi is a wonderful thing but understand it can still be inconsistent in even the most tech-friendly neighborhoods. I anticipate that our connectivity speed will be further degraded by all the streaming and game-playing that is happening now, in addition to everyone trying to work from home as well……be patient and see if you can upgrade to a higher speed with your home Internet provider.
Also, try to find a spot near a window with some natural light so you don’t feel completely tucked away from the world. Think about storage and try to keep work-only items grouped together. Think outside the file box to find an organizational system that works for you; see what you can use around your home. It’s more important to give everything that has been sitting out in piles a permanent home than it is to buy new containers. Here are a few ideas for organizing your home office:
·     A grid of clipboards on the wall can make for a handy place to keep papers organized.
·     Wall-mounted cups keep frequently used supplies neat and within reach.
·     Cups and bowls borrowed from the kitchen make great desktop and drawer organizers.
·     Labeled, open-top baskets on shelves are great for people who like piles
·     Traditional files are still useful for important documents.
Set Ground Rules with the People in Your Space
Set ground rules with other people in your home or who share your space for when you work. I say “morning,” but not everyone who works from home follows a nine-to-five schedule. Yours might be a “getting started” routine at another time of day. I want my elderly parents to be able to call me anytime, but have reminded them that “after 6” is the best time to get my undivided attention. I ask other family members and friends to respect my work hours and stick with the less obtrusive email or text for non-emergencies.
Act as if you are “going to work”. Whatever your routine was when you were going to the office, try and maintain it now that you are working from home. Exercise, shower, get dressed (not pajamas), and then “go to work”. I try and avoid eating at my desk and taking a coffee break, lunch break, etc.  Use these times to reconnect with other household members and address their needs and concerns.
Think About Your Back, Feet and Shoulders 
Pick a back-friendly, ergonomic chair if at all possible and always make time for exercise (don’t forget to stretch!). I prefer to stand or walk around while I am on the phone but now that my husband is working from home as well, we find that this is distracting to one another. Go outside and get some fresh air while on that call.
Although you can easily work on a laptop from anywhere, an entire day, week, or even a month spent looking down at a screen is not going to do your neck muscles any favors. If you have the space and the budget, think about upgrading to a decent-sized computer monitor to plug your laptop into. I use two monitors so that I can multitask between emails, software applications required for my work, calendars, and more.
Most desks, chairs and monitors and still designed for the average sized man. I have made adjustments by ensuring that my monitors are at eye level. You can use boxes, books, magazines or anything you have around the house to easily accomplish this…no need to be purchasing special desks, risers, etc. If your chair is not adjustable, use pillows, etc. to ensure that you are sitting at the right height to keep your back straight. I have purchased an ergonomic cushion that provides comfort and support for my spine as well as adds two includes to my seat height.
Make Friends with Your Postal Worker or Delivery Person 
Thank goodness for USPS, UPS and FedEx!!! These people get bonuses at Christmas for their daily deliveries to my door. I have always been an online shopper for convenience and time-saving and now that I am getting deliveries for food, office supplies and more the visits to my front door have increased ( still can’t find toilet paper however).
Take the time to let your local postal worker or delivery person in your neighborhood know you’re now working from home if your work involves a lot of envelopes and packages. I have made a point in the past to have a few daily words with the drivers that frequent my home. It helps when my local delivery person knows I’m working at home and sending and receiving envelopes and packages on a regular basis.  In today’s world something as simple as leaving a note on your door explaining your situation will work and be appreciated.  My UPS driver told me a couple of days ago that I can leave the package outside my front door with a note to pick it up or if I see him in the neighborhood to just hand him the box…..no need to go out to the UPS store!!!
Pump the Brakes with Social Media
Social media can be absolute poison if you don’t limit yourself. It’s definitely good to stay on top of the news during these uneasy times, but if you allow yourself to be sucked into endless posts, you might look up at the clock and discover you lost three or four hours of your day.
I enjoy social media and participate for both personal and work reasons, but I have learned to use it wisely.  I check it before I head to my office with my morning coffee and then again at the end of the day. That doesn’t mean you can’t laugh at someone’s funny online story, or post about your favorite sports team or TV show. Just try to limit the damage during work hours.
Freshen up.
Give yourself a big pat on the back, because the hardest work is now behind you! Today is all about making your home workspace fresh and clean, so it will be a healthier, more pleasant place to spend time in.
·     Vacuum your home office from top to bottom. Use an attachment to clean window treatments, high corners and fabric lamp shades.
·     Wipe down shelves and surfaces with a damp microfiber cloth.
·     Use monitor wipes to clean your screens.
·     Use a keyboard cleaner to blow dust from between the keys or gently clean them with cotton swabs.
·     Bring in some fresh plants to help clean the air.
Straighten up your home office before you are done working each day. Bring the coffee cups back to the kitchen and completely clear your desktop.
We are all anxious and a routine will help keep our life as “normal” as possible in these difficult times. Don’t be hard on yourself if you are not as productive as when in the office. Working from home is a mindset and a discipline and cannot replace a normal work environment. It takes time, discipline and commitment to find the right balance for your personal and family needs.

What Is Not Covered Under Standard Homeowners Insurance?

Homeowners Insurance Coverage
Until it happens, most homeowners think of disasters as something that won’t happen to them. Disasters can be as minor as a tree branch falling and breaking a few windows, or as concentrated as a pinhole roof leak slowly dripping water into a residence—causing mold or other ripple effects. Sadly, too many people who experience disaster on a large or small scale may find the trauma continues when it’s time to file an insurance claim.
You need to be knowledgeable about what your Homeowner’s Insurance does and does not cover. These common held assumptions about insurance are items that are NOT covered and may require additional insurance or riders.
Wear and Tear Is Covered-Myth
Fact: Coverage typically includes damage from fire, weather and theft, not damage due to general wear and tear or neglect. As a policyholder it’s up to you to maintain your home, including making routine repairs and protecting your home from pests. If you neglect to take care of your property ( a leaky roof) you may not be covered.
You’re Insured in Case of Flood Damage, Earthquakes, Tornadoes and Hurricanes-Myth
Fact: Although some weather-related damage is generally covered, such as from hail, other storm related damage from wind or water may not be.
Floods require specific flood insurance from the Federal Government. Earthquakes might be covered, but sometimes they require additional insurance. Hurricane and tornado damage requires a separate windstorm policy. Sinkholes, mudslides and other earth movement (except in CA) requires a separate endorsement.
All Personal Belongings Are Fully Covered-Myth
Fact: Homeowners insurance typically covers furniture, clothing and other personal items, but more valuable items like jewelry and artwork may require an add-on policy. Homeowners should routinely inventory belongings to determine if policy limits meet their coverage needs.
You Have Protection Against Any Injuries That Happen at Home
-Myth
Fact: Your policy’s liability coverage protects you if a guest is hurt in your home, but if a family member is injured at home, it’s normally covered by health insurance.
Home Businesses Are Part of the Package
-Myth
Fact: A home business requires business insurance to cover property damage and liability; homeowners should consult with their insurance carrier or agent to be sure they’re fully covered from disasters large or small
You Can Rebuild For The Amount Of The Insurance Coverage-Myth
Fact: Unless you insured for “replacement value” you may be under insured to rebuild your home. “Ordinance of Law” exclusions may not cover to the changes to building codes and the additional costs of bringing the property up to code if damaged.
Overflows of back-ups from your sump pump, sewer or drain are covered-Myth
Fact: A standard policy does not include coverage for these issues and require a separate endorsement.
It may not seem like particularly interesting reading material, but it’s better to take the time to thoroughly understand what your insurance policy covers than to be stuck in a situation where you’re not sure when you really need it.

Types of Movers for Home Buyers

relocation

 

relocation

Moving to a new house, city or state is one of the most stressful things a person can go through. Even when everything goes smoothly, you’ll likely be exhausted when all is said and done. Whether it’s down the street or across the country, moving is a major task that requires much effort and coordination. For this reason, many people choose to hire a moving company, but knowing who to entrust your belongings can be a daunting task.

While you do have the option of going the DIY route when moving, things will be so much easier and more convenient for you if you hire professional movers instead. You’ll incur certain costs by doing so, but the help they can provide is worth it.

It’s also a common mistake to hire the first moving company you lay your eyes on in an ad. There are so many moving companies out there, but not all are created equal. The movers you should hire are legitimate ones with licenses, insurance and other vital considerations. You should also get quotes from at least three movers to determine the best deal. Ask for references and verifying credentials. And remember to never pre-pay for a move!

Local Movers

There are many kinds of moving companies depending on the type of move you’re looking to make. Some companies specialize in local moves and will have limitations on the distance they’re willing to travel. Local movers are great for small cross-town moves since they typically charge by the hour.

Long-Distance

If you’re moving across the country, you’ll want to find a long-distance mover. These movers have special licensing that allows them to operate across state lines and they typically charge a bulk rate based on how quickly you need to be moved and how many items you’ll be moving. In some circumstances, you may even need to move out of the country. International movers will help you pack and get your items overseas. These moving companies are usually prepared for immigration and customs issues.

Full-Service

If you want a completely stress-free move, you should consider a full-service moving company. These companies take all the hassle out of your move by disassembling and packing up your old house and then unpacking and reassembling everything in your new place. Additionally, they provide all of the materials so you don’t have to worry about how much tape you’ll need or what size boxes to get.

Spring Cleaning Guide from Optima Properties

Spring checklist

Now that the clocks have SPRUNG AHEAD it is a good time to think about Spring Home Maintenance.  As current homeowners you need to keep your home systems and property in good condition so that the small maintenance issues do not become major and expensive repair items.

 

Do not read this list and become overwhelmed, it is an extensive list meant to cover basic home maintenance. Not all of these maintenance items will apply to all homes.  This is a comprehensive guideline designed for homes in the South as well as Northern climates.

Spring cleaning is a way to demonstrate pride in ownership (or rentership).  A home and its contents are investments; money spent on something you really love or really need (ideally both).  When you take the time to clean thoroughly and properly, you can maintain and prolong the life of the item or finish for years.  Further, it means you live in a cleaner and healthier home; less dust, dust mites, allergens, odors, and dirt.

Always start from the top and work your way down.  Think about it like this: dust falls down (like rain or snow) so if you start at the top, you’ll never have to re-clean a surface (which is a time waster).  It doesn’t make sense to clean the floors first and then dust the tabletops; you’ll just have to clean the floors again.  Use gravity to your benefit and always work from top to bottom.  It also helps you not miss anything!

General Spring Cleaning Tasks:

These are a list of some of the things that need to be done around the house, and spring is a great time to do them.  So often we don’t remember to do them, so let this be your wake-up call!

 

 

 

 

Tests and replacements:

Test smoke alarm

Test carbon monoxide alarm

Check flashlight batteries

Check fire extinguishers

Change air filters

Check all window screens for tears and repair or replace as required

 

 

 

Overall Spring Cleaning Chores:

Dust crown molding and baseboards and clean scuff marks

Dust ceiling corners

Dust/wash light fixtures and lamps

Dust ceiling fans

Wipe down doors and walls (Swiffer works great for removing all the dust)

Touch up paint

Vacuum or wash/dry clean window curtains and bedding

Wash or dust window blinds

Wash windows and screens inside and out

Dust books and bookcases

Polish wood furniture

Wipe down and vacuum furniture (clean the base and under cushions)

Condition leather furniture

Remove stains from upholstered furniture

Vacuum and wash lampshades

Deep clean hardwood, tile, linoleum, and carpet flooring

Shampoo carpet (DIY or schedule a professional)

Remove area rugs to shake out, then vacuum, then clean under them

Remove fingerprints and dirt from light switches and door handles

Clean air vents

Dust around and BEHIND mirrors, picture frames, and wall hangings

Schedule chimney sweep

Schedule termite or pest control maintenance

Spring Clean Outside:

Sweep, power wash, and/or stain deck

Power spray siding

Touch up paint trim, wood, doors, and shutters

Oil hurricane shutters

Power wash garage door and eaves of house

Clean outside door frames

Wipe away cobwebs

Shake out entry mat

Clean grill

Clean and repair gutters

Replace broken bricks, wood, or stone

Clean outdoor light fixtures

Clean outside patio furniture

Trim trees, bushes and shrubbery

Check and repair sprinklers

Inspect roof shingles

Clean outdoor and indoor trash cans

Clean out garage and sweep

 

Managing the post-storm insurance claims process

Florida, Georgia and North Carolina residents affected by Hurricane Matthew will begin surveying damages to their property and belongings.

Florida Chief Financial Officer Jeff Atwater and Insurance Commissioner David Altmaier put together the following tips to help Floridians begin the process of filing insurance claims for damaged property and belongings and this may prove useful to residents in other states as well:

Tip 1: Locate all applicable insurance policies. This may include a homeowners’ policy, flood policy (flood coverage is not covered under a typical homeowners’ policy and is separate coverage), and an automobile policy (may cover damage to your car from flooding).

Tip 2: Document all damaged property and belongings. Take photos or shoot video footage before attempting any temporary repairs. When you file an insurance claim, you may be asked for visual documentation of damages.

A photographic home inventory is a handy resource for this situation. A free smartphone app developed by the National Association of Insurance Commissioners called “MyHome Scr.APP.book” can help you take and store a room-by-room log of photos.

Tip 3: Contact your insurance company or insurance agent as soon as possible to report damages.Insurance policies require prompt reporting of claims, so it is important to act as soon as possible.

Tip 4: Cover damaged areas exposed to the elements to prevent further damage. Your insurance company may reimburse the expense of these temporary repairs, so keep all receipts.

Do not dispose of any damaged personal property until your insurance company adjuster has had an opportunity to survey it.

Florida consumers who have questions about their insurance coverage are encouraged to call CFO Atwater’s Department of Financial Services, Division of Consumer Services’ Insurance Helpline. Helpline experts can be reached by calling 1-877-MY-FL-CFO (1- 877-693-5236), or online at: myfloridacfo.com/hurricanematthew.

Prepare for Hurricane Matthew’s Aftermath

As Hurricane Matthew churns through the Atlantic with a possible landfall in Florida, the Property Casualty Insurers Association of America (PCI) urged property owners to take some basic precautions to protect themselves and their belongings.

“With the potential for Hurricane Matthew to hit somewhere along the East Coast, the Governor has issued a state of emergency for all 67 counties in Florida,” says Logan McFaddin, PCI Florida regional manager. “This caliber of a system could bring major flooding and damages along Florida’s East Coast.”

In addition to making sure residents have emergency kits and plans ready, PCI urges residents and business owners to take precautionary measures to prevent damage to vulnerable property. Flooding from storm surge during hurricanes and tropical storms can be especially dangerous for residents along the coast and further inland. PCI recommends that homeowners who sustain damage report it as early as possible to their insurance company.

McFaddin says flood insurance is advisable, but “there is typically a 30-day waiting period between the date of purchase and when flood coverage will go into effect.”

PCI hurricane precautions

Review your property insurance policy, especially the “declarations” page, and check whether your policy pays replacement costs or actual cash value for a covered loss.

Inventory household items, and photograph or videotape them for further documentation. Keep this information and insurance policies in a safe place.

Keep the name, address and claims-reporting telephone number of your insurer and agent in a safe and easily accessible place.

Protect your property by covering all windows with plywood or shutters, moving vehicles into the garage when possible, and placing grills and patio furniture indoors.

Keep all receipts for any repairs so your insurance company can reimburse you.

Check with your insurance adjuster for referrals to professional restoration, cleaning and salvage companies if additional assistance is needed.

Make sure watercraft are stored in a secure area, like a garage or covered boat dock. A typical homeowners policy will cover property damage in limited instances for small watercraft, and separate boat policies will provide broader, more extensive property and liability protection for larger, faster boat, yachts, jet skis and wave runners.

 

There will certainly be an extended period with power outages.  After the storm, empty out your freezer and refrigerator of all perishable items and put in covered trash receptacles.  Unplug all appliances and electronics since there will certainly be surges when power is restored.

Be mindful of downed power lines when going outside after the storm.  Broken branches can also be dangerous and will continue to fall given the winds and rain that follow the storm.  Remove debris from your property to ensure continued safety.

Location, Location, Location!

There are many things that should be considered when buying a home. Since most home buyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain.
“Location, location, location,” is a common and almost overused phrase in real estate and has been in use at least since 1926, according to the New York Times. It is just as relevant now as it was then.
The idea is to buy a house that will appeal to the largest number of potential future home buyers. A careful choice of location can minimize potential negative influences on future resale value, and maximize positive influences.
So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home will be a good investment.
Some “good” and “bad” qualities simply vary by community. If you know your local community, you know which parts of town are less or more desirable.
Safety:
People want to live where there’s little or no crime. Naturally, they want to feel safe in their homes and will pay extra for it. A safe neighborhood means people will feel free to walk around, be outdoors and interact with their neighbors.
Good Schools:
Whether you have children, plan on having them, never want children, or they are out of the house; the better the school district, the higher the values of the surrounding homes can be. . The reputation, the quality and the district are additional factors in finding a good school. Homes surrounding good schools are in high demand. Found a home you love but the school district is subpar? Be aware of that issue for resale down the road.
Convenient access to work, popular places, shops and restaurants
Everyone wants to be near the best commercial districts. The closer to the hubbub of a particular town or the best parts of a city, the better the location – and the more someone is willing to pay for a home. The distance from point A to point B is so important. A long commute burns more gas and wastes more time than necessary. Therefore, evaluate the time it takes to travel from the home to the following: work, school, store, hospitals and favorite hangouts. Buyers without cars must live in communities with public transportation access. A community containing local amenities close by is valuable to buyers.
View, Views, Views:
No matter which town or city, someone will always pay for a great view or to be on or near the water.  An interior location with lack of road noise is also an important consideration. If the community does not offer views, then the backyard area and how it is designed is a consideration.
Access to public transit and/or freeways:
In major cities, the farther you live from the bus, subway or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. Being near a train or bus can get you anywhere in a short amount of time. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location. Adding 20 minutes to a commute just to get to the freeway never helps a location.
It’s almost easier to talk about what constitutes a bad location than to discuss good locations. There are some common characteristics that make a location “bad,” no matter where you are. That is because the qualities that make a good location desirable can vary, depending on whether you’re looking in the city, suburbs, the country or the mountains. Bad locations, by their general nature, are easier to pinpoint. Some examples are:
Commercial/industrial areas:
Unless you live downtown, commercial buildings on your block diminish residential real estate values. Part of the reason is because homeowners cannot control loitering. Homes next to gas stations or shopping centers are undesirable because of the noise factor and compromise safely.
 
Railroad tracks, freeways or under flight paths:
Some city dwellers have homes close to railroad tracks and endure rumbling and other noise 24-hours a day. If you have a choice to be in a quiet area, free from road noise within the same community, this is the better choice of residence.
Economically depressed areas:
If owners show no pride of ownership in maintaining their homes, evidenced by lack of maintenance, poor landscaping and junk in the yard, you might think twice about moving into such an area.
Close to hazards:
People don’t want to live next door to power plants or substations. Few home buyers want a transformer in their yard, either. Understand the flooding risks and exposure to natural disasters and the preventative measures that have been taken to minimize them.
Other factors that can make for a “bad” location: very close proximity to a fire station (good if your house is on fire, not so good if you’re trying to sleep); a hospital (frequent ambulance sirens); an airport (sounds of jet engines 18 hours per day) or a school (traffic from buses or parents dropping off children or kids yelling and playing).

Common Fees When Buying A Home

When buying a home, most people focus on how much the home costs and what interest rate they can get on the loan. While understanding the lending process is very important, the other fees that home buyers overlook when it comes to their home purchase.

There are some fees that will require up-front payment. Other fees may be rolled into the loan for your home. It’s important to understand the difference and know what you’ll be expected to pay.

Earnest Money Deposit

To prove you’re “earnest” in your purchase commitment, a buyer can expect to deposit to a trust account 1% to 2% of the total purchase price as an earnest money deposit within days of entering into a contract.This amount can change depending on market factors. If demand in your area is high, a seller could expect a larger deposit. If the market is cold, a seller could be happy with less than 1%.

Other governing factors like state limitations and rules can cap how much earnest money a seller can ask for.

Escrow account

An escrow account is basically a way for your mortgage company to make sure you have enough money to cover related taxes, insurance and possibly mortgage insurance. The amount you need to pay varies by location, lender, and loan type. It could cover costs for a few months to a year.

If you only provide a small down payment, you may be required to purchase private mortgage insurance. Private mortgage insurance, commonly referred to as PMI, is typically provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults.

Sometimes this means you are required to pay a full year’s worth at time of purchase, or it will be rolled into your monthly payment.

Escrow accounts are common for loans with less than a 20% down payment and mandatory for FHA loans, but it’s not required for VA loans.

Origination Fees & Points

The origination fee is the price you pay the loan officer or broker for completing the loan, and it includes underwriting, originating, and processing costs.

The origination fee is a small percentage of the total loan. A typical origination fee is about 1%, but it can vary. You should shop lenders for more than interest rate, but all of the fees associated with the loan.

Inspections

You want to be assured your new home is structurally sound and free of defects before you complete the purchase. Those assurances come with a price.

  • Home inspection: This is critical for homebuyers. A good inspector will be able to notify you of structural problems, defective applianes, leaks, and other potentially serious problems. Expect to pay $300 to $800 for a home inspection, although cost varies by location and the size of the home and how many stories it is.
  • Radon inspection: An EPA-recommended step, this inspection will determine whether your prospective home has elevated levels of the cancer-causing agent radon. A professional radon inspection can cost several hundred dollars.
  • Pest inspections: Roaches are one thing. Termites or wood fungus are a whole different story. Expect to pay up to $150 for a Wood Destroying Organism inspection.

Attorney

Some states, such as North Carolina, require an attorney to be present at closing. In other states, such as Florida, this is optional. If you use a lawyer, expect to cover the costs, which vary by area and lawyer and what the attorney is being asked to do.

Credit check

Just because you can get your credit report for free doesn’t mean your lender can (and they will actually pull all three). You have to reimburse the lender, usually around for these reports that usually run about $30.

Insurance

If you live in a hazard-prone area, you might need to purchase extra insurance in addition to homeowners insurance, these can include wind and flood. Lenders will require that you purchase the required insurance to protect their investment. If you are a cash buyer, you have the option of buying insurance or self-insuring. Make sure you understand the risks.

Appraisal

Your lender will not approve a loan for a home without knowing what its fair market value is. They will determine this value based on an appraisal.  Appraisal costs vary by market area and the size and complexity of the property. An appraisal will typically cost $250 to $1000.

 

Title Insurance

Title insurance covers you in the unlikely case that the person who sold you the house didn’t actually own it or if information on the title was false. Typically this is verified before the purchase of your home, but this insurance protects the lender or the buyer against loss arising from disputes over ownership of a property.

The lender will require you to have title insurance for the value of the loan. You are also required to have title insurance on the value of the property. Whether the buyer or seller pays for this is area specific and is a protocol not a mandate and can be negotiated as a condition of the contract.

Survey

A survey is not required in all instances, but your lender may require a professional surveyor to determine exactly where your property lines are drawn. Your attorney will also review the survey to ensure that there are no encroachments. Prices vary widely, but expect to pay at least $100.

Document preparation fees:

The lender, broker, Title Company or closing attorney will usually have a fee to cover the preparation of the required documents for the loan and closing paperwork. These fees are typically rolled in closing costs for the home and may be covered by either the homebuyer or seller.

 

State Recording Fees:

Depending on where you live, there may be a fee required for recording and holding the information regarding the sale.