Are You Better Off With a Used Home or a New Home? What's the Best Option for You?

By Thomas Pederson  |   Submitted On January 17, 2018

  

When planning to buy a new home, one of the decisions you have to make is whether you will buy a brand new house or one which has been previously owned by someone else in the past. The differences between these two must be carefully considered when you want to buy home where you and your family can spend your life happily and comfortably.

A Matter of Price

Before anything else, the price is one thing you have to consider when looking for homes for sale. In today's real estate market, there are foreclosures and short sale homes in the market which are better priced compared to a new house. It seems a bit strange that a brand new house located in the same neighborhood of one which is several years old is going to sell for more compared to a previously owned house. New houses are not considered comparable so these sell for more, not to mention that there are also no issues on appraisal. Somehow, it doesn't seem right if a previously owned house have ceiling fans, window treatments, landscaping, or even a spa or pool which a new house often doesn't have.

On the other hand, a new house is exactly that, new, in an ideal move in condition and under full warranty. You have to add to the equation the price of things which are not in the house already, or that no backyard landscaping is present. Still, a lot of people find that they prefer a new house compared to others, and builders sell really well even in today's real estate market.

Location

One more factor you have to consider is the location. There is a chance that you will not find a house in a place close to work and other major amenities such as downtown or the airport. Places around these areas are long gone, and you won't be able to find builders of new homes near these areas. When a city grows, this grows outward, with new commercial developments and homes which are newer should go outward. It is a crucial consideration for most homebuyers. The daily traveling time to work can also add up with the prices of gas and the time required for traveling both directions.

Add-ons and Updates

Another thing you have to consider when checking homes for sale is that a used house may still require some updates that can offset the price of adding new things to a brand new house. A fresh coat of paint might be required, or you might have to change the appliances or update the granite counters. You have to calculate all the things which will be added or changed to a new house and a used one.

Make sure that you consider every factor before you decide to buy home for sale. Both a new house and a used home have their own set of pros and cons, so ensure that you check everything before you settle for the best choice for you.

https://www.homegather.com

Article Source: http://EzineArticles.com/expert/Thomas_Pederson/2431737

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4 Ways Of Using Financing When Buying A House

By Richard Brody  |   Submitted On March 09, 2018

  

Especially, in sellers markets, there is often, considerable competition, in terms of purchasing, a house. The better a homeowner understands, what each means, and represents, the more capable he is, of determining, which might (or might not) be, in his personal, best interests! Qualified, potential buyers, must realize, some of these options, and determine, which makes the most sense, to each of them, and their self - interest! With that in mind, this article will attempt to review and consider, briefly, 4 different approaches, and some of the pros and cons, both for the buyer, as well as the seller.

1. Truly, all - cash: In my, over a decade, as a Real Estate Licensed Salesperson, I have observed, a few individuals, make, true, cash offers, while most of these, simply meant, no mortgage - contingency! When someone is purchasing, without using any form of financing, the homeowner must demand, proof of funds, in order to be certain, the buyer is qualified, and capable of having sufficient funds. The buyer, proceeding this way, should consider, whether it makes sense, for him, because mortgage interest, up to certain limitations, is still, tax - deductible, and, when one pays, with cash, they may be ignoring the opportunity - cost, of monies!

2. No mortgage contingency: When one has good credit, and knows he will qualify for a mortgage, and maintains, the right to inspect, etc, he might proceed, this way, in order to make his offer, more attractive to the seller. However, the homeowner must be certain, the house will pass inspection, or an engineering report, and the offering price, is directly relevant, to the Competitive Market Analysis (and will Comp - out).

3. Conventional mortgage: A Conventional Mortgage is, usually, considered, one, which falls, within certain dollar limitations, and the down - payment, will be, at least 20%. In addition, the purchaser's credit, and qualifications, must adequately qualify him, for the desired mortgage. Homeowners must demand a qualified, Mortgage Approval, with the offer, rather than merely a Mortgage Qualification (the difference is, the approval means, the person qualifies, as long as the residence does, while a qualification, states, if the process relates to what the prospective individual claims, he will qualify). Obviously, an approval is what an owner should desire!

4. Other financing: Some individuals make offers, based on other financing, including Balloon Mortgages, combinations of loans, and less/ lower down - payments. Obviously, this is a riskier deal!

Since financing is generally an essential component, to buying and selling a house, the more each party knows, understands, and properly prepares, the better! Will you be prepared for the process?

Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonLongIslandHouses.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE

Article Source: http://EzineArticles.com/expert/Richard_Brody/492539

6 Shocking Things Your Home Inspector Won't Check

By Lisa Gordon | Jun 28, 2017

Home inspectors are quite thorough. Before you buy a house, they'll scrutinize things you never thought to look at in your many walk-throughs, from cracks in stucco to how well the toilet flushes. In fact, their checklists include over 1,600 features, all with the goal of helping you decide whether the home is in good enough shape for you to close this deal—or whether you should back out while you can. Given that a basic home inspection costs $300 to $500 but could save you thousands in repairs, that's a sweet deal!

And yet, home inspectors don't check everything.

For one, conditions such as mold, radon, or asbestos that require laboratory samples or equipment are the stuff of specialty inspections, which cost extra or must be conducted by other specialists.Here's what home inspectors conducting a basic search aren't eyeballing, and what you can do if you want to make sure your prospective new home checks out on all counts.

Electrical outlets behind heavy furniture

For one, basic home inspections evaluate only the stuff these professionals can see or access easily. That means if furniture is blocking certain areas, your home inspector isn't about to throw out his back to lug it aside.

“I’ve had china cabinets in front of an electrical panel, and there’s no way we’re going to move that stuff,” says Frank Lesh, executive director of the American Society of Home Inspectors, headquartered in Des Plaines, IL. Instead, ask the home seller to move such items in advance so the inspector can do his work without heavy lifting.

Roof

Home inspectors will gamely climb onto your roof and check for missing or warped shingles and make sure flashing and gutters are in good shape. There's one huge caveat: Your roof should be less than three stories tall and not too steep. If it is, they'll probably pass. After all, if they fall, it's a long way down!

“We’ll go up on roofs if it’s safe," says Lesh. "But if it’s raining or it’s too high, we're not able to get to it.”

It's reasonable to worry about the roof, which is a big-ticket item. You can hire a specialized roof inspector for $500 to $750 to examine roofs that a regular inspector will avoid. Some, hoping to get business if they turn up issues, will even inspect it for free; others charge according to location, roof height, and material. If they can’t climb onto roofs, they can perform an infrared inspection that assesses temperature differences along your roof to determine where heat is escaping.

Fireplace and chimney

Home inspectors will typically open and shut dampers to make sure they’re working, and shine a flashlight up the chimney to check for big obstructions like a bird nest. But that's typically where their inspection ends.

Want more? A fireplace inspector can perform a Level 1 inspection to look for soot and creosote buildup, which could start a chimney fire. This extra inspection will cost about $80 to $200. If the home has experienced an earthquake or major storm, a chimney inspector will perform a Level 2 inspection, which adds visits to the roof, attic, and crawl space to check for damage ($100 to $500).

Ground beneath your home

While home inspectors will thoroughly check the home, the ground beneath it might go largely ignored. So if you're worried about the land's structural integrity—or whether it shifts, tilts, or has sinkholes or a high water table—you'll need to hire a geotechnical or structural engineer.

These professionals test the soil for an array of problems, but it'll cost you: Basic testing costs $300 to $1,000, and drilling a bore hole for deeper investigations can cost $3,000 to $5,000. That’s a lot to pay for a hunch, so if money is tight, go to PlotScan, a free site that will tell you the history of sinkholes and other natural catastrophes in the vicinity of your home—and help you assess whether more research should be done.

Swimming pool

Basic home inspectors will turn on pool pumps and heaters to make sure they’re working. But inspectors won’t routinely evaluate cracks or dents in the pool. For that, you'll need a professional pool inspector, who will run pressure tests for plumbing leaks. He'll also scrutinize pumps, filters, decking surfaces, and safety covers. The cost will hover around $250 or could be free, if you end up hiring the pool company for regular maintenance.

Well and septic system

If your inspector works in areas where wells and septic systems are common, for an extra fee ($150) he might test your well water and check that your septic system is running correctly.  But if most houses he inspects are on public well and water, you’ll have to hire a well inspector.

Well inspectors—typically employed by companies that install or repair such systems—will collect water samples for lab analysis for coliform, arsenic, and other harmful bacteria and chemicals. They will ensure that well parts such as seals, vents, and screens have been properly maintained and that the well and pump can produce enough water. This will cost around $250.

Does the home have a full-on septic system? Then for $100 to $200, a septic system inspector will check your tanks, baffles, and piping; evaluate the inside of septic tanks using a camera to check on concrete conditions; and make sure wastewater is going into the tank, not leaking to the surface.

Lisa Kaplan Gordon is an award-winning writer who's covered real estate and home improvement for realtor.com, Yahoo, AOL, and many others.

Follow @kaplan_lisa

Source: https://www.realtor.com/advice/buy/things-your-home-inspector-wont-check/

Hey, Buyers: Inspectors Can Predict the Future—and 8 Other Common Home Inspection Myths

By Wendy Helfenbaum | May 24, 2018

iStock; realtor.com

After seeing dozens of duds, you’ve found the perfect house. You’re all set with pre-approved financing and a grand vision of how you’ll make this place look fabulous. Best of all, after some nail-biting negotiations, the seller has finally accepted your offer.

You’re done, right?

Well, not quite yet. There's still the home inspection—arguably the most important step of the home-buying process. Simply put, it can make or break the sale.

Of course, you probably know that the inspection is meant to, well, inspectthe house and suss out any problems. But you may very well be making some sweeping—and perhaps false—assumptions about how these professionals work.

It can be confusing, we know. So join us as we debunk some of the most common home inspection myths.

Myth No. 1: A home inspection is the same thing as a home appraisal

In fact, these two things could not be more different, says Tim Buell, president of the American Society of Home Inspectors and a retired home inspector in Hilliard, OH.

“An appraiser’s function is to determine the value of a house on behalf of the lending institution," he says. "Home inspectors are only interested in the safety of the home—not the value.”

That means if the seller offers up a glowing appraisal report, you shouldn't be swayed into thinking you’ve just saved yourself the price of a home inspection. Got it?

Myth No. 2: Home inspectors can advise you on whether to buy the house

“That's not my field of expertise," says ASHI’s Executive Director Frank Lesh, of the Home Sweet Home Inspection Co. in Chicago. “Often people ask, ‘Would you buy this house?’ I can only tell you about the functioning portions of the house, not whether you should buy it.”

And don't forget: Even though most inspections are done at the buyer's request, inspectors are impartial. If you think inspections are meant to help the buyer renegotiate the purchase price, Buell says, think again.

Myth No. 3: It doesn't matter which inspector you hire

In the U.S., only 30 states require licensing for home inspectors, according to the ASHI. But even licensed inspectors have various levels of training or certification, so it’s up to the buyer (you) to find a competent professional.

“Just because someone is licensed doesn't mean they're qualified," Lesh says. "It means they have met a minimum requirement for their license.”

Do your homework by getting referrals from professional associations, agents, and other homeowners, and then checking references thoroughly.

Myth No. 4: The inspector will uncover every single thing that's wrong with the house

Much as you wish they could, home inspectors simply cannot check every nook and cranny, Buell says.

“People think we can see behind walls, but I’m not Superman—I don’t have X-ray vision,” he adds.

Rather, home inspectors are guests in the seller’s home, which limits what they can do.

“We can't tear into a wall to look behind it, or rip something apart to see why it's making a noise,” he says. “We're there for a visual inspection of readily accessible areas of the home, so if there's a china cabinet in front of something, we're not going to move it.”

That said, home inspectors do use specialized tools such as infrared cameras and moisture meters that allow them to gather more information. But buyers should be realistic about what they’ll learn, Buell notes.

For example: If you're buying a house in the middle of the winter, an inspector probably won’t be able to check a roof with 3 feet of snow on it. Instead, they’ll check the attic sheathing for signs of leaks.

Myth No. 5: Buyers don’t belong at the home inspection

It doesn't matter whether you know anything about home construction and maintenance. “Buyers absolutely should be there, without question,” Lesh insists. “I can go into more detail [than in the report], and you’ll have a three-dimensional view.”

Lesh also encourages all buyers—especially first-timers—to ask questions. While home inspectors can't tell you whether to buy the house, they canshare maintenance tips and advice.

Myth No. 6: Brand-new homes don’t need to be inspected

Faulty construction can lead to all kinds of repair nightmares in the future, so sparkly new houses need to be checked—maybe even more carefully than older ones, Lesh says.

“With a house that's already been lived in ... I can see whether there are signs of leakage, mold, or anything that occurs over a period of time,” he explains. “If it’s a brand-new house, nobody has showered in that shower or used the appliances, so it absolutely should be inspected, even though it’s under warranty.”

In related news...

Myth No. 7: A flipped home doesn’t need to be inspected, either

If everything was redone top to bottom, there’s no point checking it out, right? C'mon—you know better.

“Unfortunately, some flippers are more interested in money than safety,” Buell says. “If a house has been flipped, you’ll want to make sure that they had the right building permits, and that code inspectors verified the remodeling work.”

Myth No. 8: Home inspectors can predict the future

Lesh once had a client whose father wanted to know exactly how long the furnace would last.

“I opened my case and said, ‘Oh, gosh, I forgot my crystal ball,’” Lesh recalls.

“A home inspection is a snapshot in time,” Buell says. “We can tell you how old certain appliances are, and what the useful life of something is. ... But we don't know when a plumbing leak is going to happen or when a fuse will break on an electric panel."

Lesh does, however, tell clients that everything in the house will need to be replaced at some point. Best practice? Budget 1% of the value of the house per year for maintenance.

Myth No. 9: A good house will ‘pass’ the inspection

Home inspection reports will never indicate whether a property passes or fails, Lesh says. That’s because everything depends on a buyer's tolerance level: What’s acceptable for one buyer could cause another to walk away.

“I'm the judge of the house in terms of whether it’s safe," Lesh explains. "But I always ask people: Can you live with this?”

If you can, then the house passes your test. And that's all that matters.

Wendy Helfenbaum is a journalist and TV producer who covers real estate, architecture and design, DIY, gardening, and travel. Her work has appeared in Woman's Day, Metropolis, Costco Connection, Garden Collage, Parenting, Canadian Living, Canadian Gardening, and more.

Follow @wendyhelfenbaum

Source: https://www.realtor.com/advice/buy/home-inspection-myths/?cid=soc_shares_article_fb

Are You Ready to Graduate From Renting to Owning a Home?

By Julie Ryan Evans | May 15, 2018

jacoblund/iStock

With graduation season in full swing, many may be pondering a change in their living quarters. Some may be moving out of Mom and Dad's house into dorms, or maybe out of dorms into their own apartments.

But what if you're ready to take an even bigger step—moving out of a rental into a home you can call your own?

Buying a house, after all, is a great way to put down roots and build wealth (since homes tend to appreciate so you can sell later for a profit). But purchasing property isn't a simple process, so you should make sure you're prepared.

So, how do you know if you’re ready to move from an apartment to a house? Ask yourself these questions below to get a sense of where you're at—or what you have to do to transition easily into home-buying mode once the time is right.

Can you afford to buy a home?

For starters, let's talk money. Buying a home is a hefty purchase, probably the largest you'll ever make. So, you'll need a down payment (typically recommended to be 20% of the home’s purchase price) and steady income (i.e., a job) to pay your mortgage.

There are other costs also associated with homeownership:

• Closing costs (typically 2% to 5% of the home's purchase price)
• Home insurance (cost varies by state)
• Maintenance
• Utilities
• Budget for unseen repairs and emergencies

While renting might seem more economical than owning at first glance, that’s not always the case; our rent vs. buy calculator can help you compare the costs. You might be surprised by the results!

Another good first step to figuring out whether you can afford a house is to enter your salary and town of residence into a home affordability calculator, which will show you how much you'd pay for a mortgage on a typical house in that area. Or talk with a loan officer about whether you would qualify for a mortgage, and how much you can spend comfortably. Such consultations are free, and will give you a concrete dollars-and-cents sense of where you stand.

Are you settled in your job?

Your job situation is not only important in terms of income to buy a home, but also whether you're happy where you work and plan to stay put. Because once you own a home, your career prospects do narrow somewhat, purely because a home anchors you to one area.

“Homeowners tend to have fewer job opportunities compared to renters, since renters can easily accept a job in another city or state," says Reid Breitman, managing partner at Kuzyk Law, in Los Angeles. "A homeowner may decline such an opportunity because they don’t want to go through the cost, time, and expense of selling their home. So, it may be better to wait to purchase a house until after you're firmly established in your employment situation."

Do you know where you want to live?

Since moving once you own a home is not as easy as just packing your bags (which, let's face it, is a hassle in itself), you really need to make sure you’re picking a home in an area where you’ll be happy.

“It's not easy to just sell a house and move to a new one if intolerable neighborhood issues come up, since the transaction cost to sell—up to 8% to 10% of the sale price for brokerage fees, escrow, title, and other costs of sale—would be relatively very expensive,” Breitman says. “So you need to really scope out the neighborhood.”

When in doubt, try renting for a few months to make sure you like the area before you start shopping for a home to own for good.

How much home maintenance are you willing to tackle?

If you love the challenge of fixing a leaky faucet and figuring out which shrubs will flourish in your yard, homeownership may be right up your alley. But if the idea of mowing a lawn or messing with the HVAC makes you depressed, then you may want to stick with renting, which gives you a roof over your head without the work.

“Apartment renters don’t have many home-related responsibilities,” explains Brian Davis, director of SparkRental, in Baltimore. “If something breaks, they call the landlord. Often, they don’t even need to worry about setting up utilities; they either come with the building, or the process is merely changing the name on an existing utility account.”

Living in a house you own is a different story. There’s no landlord to call if anything goes wrong; it’s all up to you. So you have to be either adept as a handyman, or willing to find and pay someone else to do such tasks. Or else consider buying a condo or co-op, where the lawns and public areas around your home are maintained by hired help.

Bottom line: Owning a home is a big commitment. So before you jump into it, you should have confidence that it works for your circumstances.

“No one should feel like they have to follow a template, that by reaching a certain age or having a certain number of children they need a house in the suburbs,” Davis says. “So forget the clichés and movies, and decide based on you."

Julie Ryan Evans is an editor and writer who has covered everything from politics to pop culture and beyond. She loves running, reading, cold wine, and hot weather.

 

Follow @julieryanevans

Source: https://www.realtor.com/advice/buy/are-you-ready-to-graduate-to-owning-a-home/