Posts tagged buying a house

What They Wish They’d Known

Jun01
2010 Leave a Comment Written by Shanna

buying a house

or, before you buy a house: beware!

Buying your first home is an exciting time. You’ve saved money, you’ve decided where you want to live and you’re ready to take the plunge into a big commitment that will give you rewards for years to come!

But buying your first home is also a scary time, filled with new experiences and unknowns. To help take some of the guess work out of the equation, welcome to a post filled with information new home owners wish they’d known!

If you’re planning to buy a home in the near future, here’s what you want to know!

1. Go into it with good finances. If you do the hard work of improving your credit score, reducing/eliminating debt and preparing for a home purchase beforehand, you set yourself up to reap the benefits.

2. Think long-term. Buying a property really is a commitment. If you’re not ready to stay put in the area for five years or more, you’re not ready to buy. Why? When you add up all the extra costs of ownership and don’t have the long amount of time to gain value, you may actually lose money by buying instead of renting. So if you’re going to buy, buy to stay. At least for a little while.

3. Think realistically. It’s not as easy to get a mortgage these days as it was at the height of the real estate boom, but that doesn’t mean you should always jump at a mortgage you’re approved for. Look at your income, cost of living, long-term plans, debts, etc. Assess whether or not you can afford to buy.

4. Think about selling points. Sure, it sounds strange to think about resale value when you’re just about to purchase a home, but that’s exactly what savvy buyers do.

The most important thing to remember when you’re buying a home is to be informed! That way, you can buy your first place and enjoy it, without worrying about what you wish you’d known.

Posted in Buying Tips, Tips and Ideas - Tagged , ,

Traits You Need to Buy FSBO

Feb02
2010 Leave a Comment Written by Alicia

housebuying

When you’re buying a house on your own and without an agent, there are two key traits to use throughout the process: knowledge and organization. Knowledge is necessary in making sure you obtain the correct documents and contract forms that fit your state laws and your buying situation. It’s also important in knowing exactly what you’re buying into. Organization is then needed for keeping these documents and forms protected, filled out and looked over by an attorney, an escrow agent or a title company. Here are key areas to keep in mind and focus on with knowledge and organization:

  • When beginning to look for a house, you need to research other houses in the same area and of the same size, and see what they are selling for. This way, you will not overpay for a house that has been priced only by the homeowner, who might think his or her house is worth more than it really is.
  • Find out what is happening with the properties around your house. If there is open land, find out who it belongs to and what plans that owner has for it. If you’re not sure if land belongs to your potential property or not, find out, even if the seller says it does. This could dramatically change the future value of the property.
  • Find out what disclosures your state laws require sellers to share with you, so that you are provided with all the information that you are rightfully owed. An attorney or an escrow or title company can guide you through obtaining the correct disclosure forms.
  • When downloading contract forms from the Internet, make sure to read them thoroughly and choose the type that you specifically want to follow in your financial trade. The contract you use will be followed word-for-word if a problem arises in the future, so you’ll want to know exactly what you are agreeing to.
  • Always hire some sort of third party to hold your earnest money and help you through the process of filling out documents. Whether it is an attorney or an escrow or title company, it is important to have this third party, even if you have the knowledge needed to complete the process. You never know what type of person you’ll be dealing with in a real estate transaction, so you might as well have credible backup support.
  • If you go through the process alone, keep all of your documents in organized and labeled files, in a safe location, and make copies of every form and written communication you have with the seller. If a problem arises in the future, you’ll want all the information you can find to back you up.

While this may seem overwhelming or like a lot to remember, keep in mind the enormous payback for your efforts: thousands of dollars in savings, total control of your house-hunting process and comfort in knowing you can do this.

Posted in Buying Tips, Tips and Ideas - Tagged ,

Why To Buy That $80K House

Jan07
2010 Leave a Comment Written by Shanna

housegreenmoney

With the current homeowner tax credits in place, new home buyers can get up to 10% or $8K of their home’s purchase price back, which is a pretty significant incentive. Think about it: spend $300,000 on your first home, and potentially receive $8,000 in your pocket.

But a November article in the Wall Street Journal, “The Case for the $80,000 House,” points out that this savings is actually most beneficial for those who spent $80,000 on their new home.

Why? Simply put, it’s the difference between a 2.6% rebate and a 10% rebate.

Buy a home for $300,000, and your $8K refund is 2.6% of the purchase price. Buy a home for $80,000 on the other hand, and your refund is a whopping 10%. That’s nothing to scoff at.

With that in mind, I’ve grabbed a couple FSBO listings currently priced at $80,000 in the cities and surrounding suburbs of Chicago, Miami and Atlanta. Take a look!

Posted in Market News, Tips and Ideas - Tagged ,

Buying with Buy Owner = the Perfect Resolution

Dec29
2009 Leave a Comment Written by Alicia

House

If you’re settling in on the perfect New Year’s resolution for 2010, make it this one: to buy your next home with Buy Owner! By doing so, you will be choosing the simplest, quickest method of finding the home of your dreams, you will be completely in charge of your own search and, on top of all that, you will be doing it with the tools right at your fingertips!

When you’re ready to start browsing properties, you can visit www.BuyOwner.com and search thousands of listings for sale by owner. You don’t need to make a commitment to anyone else, or pay anyone else to help you search. You just search in your leisure, and you take the next step when you’re ready.

To help you find exactly what you want in a new home, you can use the Advanced Search option. This allows you to search for a specific price range, a particular type of property style (such as a single-family home or a condominium), certain features you want included with the house like a pool or a garage and so much more!

As you are browsing, you can also use the Housefly tool to see what properties other visitors are viewing. Is the house you like getting a lot of views? Are there other popular properties that catch your attention?

Once you’re ready to commit to the process of buying a new home, Buy Owner can help you receive a loan through our mortgage partner. Sales representatives and customer service staff will also be available to help answer any questions you may have during the process.

To help answer the questions that new or experienced homebuyers might have during the buying process, Buy Owner provides loads of blog articles to fill you in on the current market and what you should know as a homebuyer.

Make 2010 a successful year by using Buy Owner to find your new home! Then, next New Year’s, you’ll be making resolutions from the comfort of your new home.

Posted in Buying Tips, Tips and Ideas - Tagged , , , , ,

Understanding Property Tax

Dec01
2009 Leave a Comment Written by Carrie

money

Even if you can afford to purchase a house outright, without a loan or mortgage, the expenses don’t stop once the home is completely paid for. Aside from the cost of upkeep to manage the property, you will also be required to pay a yearly tax on it. If you’re new at this whole owning-a-house thing, you may be wondering, “What is a property tax?”

An annual property tax on a home is based on the value of the house coupled with the value of the land on which it resides. While property taxes vary between countries and even the local government, they are all assessed by an authority performing an appraisal of the monetary value of the property (both the building and the land, individually). A tax is then assigned in proportion to the total value of the property.

In the United States, property taxes are levied by each county.* Tax rates are determined by an appraiser by investigating the selling prices of similar houses in the area and creating tax maps to indicate the value of a particular area of land, as well as the buildings that exist on it (aka your house).

Your property taxes are generally used to fund the local government and may be doled out to finance schools, citywide improvements (on roads and such) or other endeavors your town wishes to take.

* Note: There are no counties in Louisiana or Alaska, so the individual cities control the taxes.

Posted in Buying Tips, Tips and Ideas - Tagged , , , , , ,

How to Improve Your Credit Rating

Jun23
2009 Leave a Comment Written by Shanna

credit

As anyone who’s applied for a credit card, a loan or a lease (not to mention a mortgage) can tell you, your credit rating matters. And while it’s important to remember that you can’t raise your score overnight, there are some steps you can take that will improve it over time. Consider these:

1. Always pay your bills on time. At its most essential, this is what good credit is all about. When you’ve established yourself as someone who can consistently pay what you owe, you prove you are a responsible credit user. Also, the longer you’ve been paying on time, the better.

2. Pay down debt. If you haven’t been paying your credit cards on time (thus the problem with your credit in the first place), the best way to repair the damage is also the simplest: pay down the debt!

3. Apply for cards when you need to. It’s a common misconception that having many cards = better credit. In reality, the key is establishing good credit over time, and that’s why it’s not smart to open lots of cards at once.

4. Know the facts. Did you know paying off a collection account won’t take it off your report? Not for seven years. Did you also know closing unused credit cards can possibly lower your score? Knowing these things can make a difference in how you approach credit.

5. Check your reports. Want to know what your current credit report reveals? The Fair Credit Reporting Act requires three reporting agencies—Equifax, Trans Union and Experian—to provide you with an annual report, free of charge. For more information, click here.

6. Dispute errors. One of the reasons it’s such a good idea to check your credit is that there may be errors affecting your score. When you check your annual reports, be prepared to dispute any incorrect items.

Posted in Buying Tips, Tips and Ideas - Tagged , ,

Homes Now Cheaper Than Ever

Jun02
2009 Leave a Comment Written by Shanna

moneyprice

The most recent S&P Case-Shiller home-price index showed a continued decline in home prices. Prices dropped 7.5 percent in the last quarter alone, and they dropped a whopping 19.1 percent from a year ago. This is the biggest drop the report has seen since its first report 21 years ago. For home sellers, this information seems very unfortunate. For home buyers, this may just be what you were waiting for.

With houses being sold 9 percent below their normal market value, home buyers are purchasing great homes for a fraction of what they’re worth. With so many foreclosures and short sales, home sales have recently seen an increase due to this affordability.

With such affordable homes, is now the time for home buyers or renters to purchase a new home? Some buyers are choosing to wait and see how low the prices can plummet.

According to a CNNMoney.com article, economist Mark Zandi, the founder of Moody’s Economy.com, said he’s optimistic that prices will stop falling this summer or fall. Yet according to a Wall Street Journal blog, Paul Dales, a U.S. economist for Capital Economics, said he expects prices to decline another 5 to 10 percent.

The truth is, no one knows what will happen in the future. Home prices may continue to fall, or they may increase in the near future. What we do know is that houses are below market value right now, and you can score an exceptional house for quite a bargain. Check out www.BuyOwner.com and see if the home of your dreams is within reach.

Posted in Buying Tips, Tips and Ideas - Tagged , , ,

Buying a Manufactured Home

Nov11
2008 Leave a Comment Written by Carrie

With today’s struggling economy, buyers are currently looking for the best low-cost options when purchasing a home. Therefore, the market for manufactured homes is very popular. Yet, when people hear the term “manufactured home,” they might be picturing a poorly constructed mobile home that is run-down and out-of-date. On the contrary, there are tons of prefab homes on the market that meet building codes and boast a stunning appearance! You might not even be able to tell the difference between a manufactured home and a traditional ranch house built “on site”. Today, factory-built homes often boast a similar design, structure and overall appearance. Buy Owner is here to give you the low-down on manufactured homes and to offer tips for buying them.

What is a manufactured home?

A manufactured home, formerly known as a mobile home, is built in a factory (according to a Federal code set by the U.S. Department of Housing and Urban Development) and transported to building sites in sections. Once it arrives at the site, the multi-part home is put together and building inspectors check local work, such as electricity.

What are the HUD building codes?

About 30 years ago, the market for manufactured homes increased rapidly. Because they were less expensive to make than “on site” homes, building codes were lax, often resulting in poorly structured manufactured houses. In 1994, the U.S. department of Housing and Urban Development (HUD) created a new set of building codes for manufactured homes. They were updated to include higher standards for construction, durability, energy efficiency, transportability, thermal insulation and fire resistance.

Where can I put my manufactured home?

Buying a new home: Because some communities do not allow manufactured housing, you must research local zoning ordinances, deed restrictions and other legal documents before purchasing a prefab home.

Buying a used home: If you are purchasing a manufactured home that has already been lived in, it is likely that the house already adheres to the existing zoning requirements. If you would like to move the home, you will then have to look into zoning ordinances for the new location.

Does my manufactured home come with a warranty?

Yes! Like any consumer product, a manufactured come does come with a warranty. Some are sold with an “implied warranty” meaning that the current homeowner is selling the home “as is” and the expectation is that the home is suitable to live in, not needing improvements or repairs. Some things you should consider when comparing warranties on home include the length of the warranty, the items covered on the warranty and the process for getting a warrantee repair.

Will the price of my manufactured home include everything?

When buying a manufactured home, there could be hidden fees. You could need to pay separately for inspections. And if you are moving the home to a new location, you could also be forced to pay for transportation and installation. It is important to read all legal documents and consult the seller with questions about inspection, warranties and relocation. An advertisement may read that the house is “sold as is” or “in turnkey condition,” leaving you to pay for extras

Posted in Buying Tips, Tips and Ideas - Tagged , , , ,

A Dozen Ideas for Your Spare Room

Sep19
2008 1 Comment Written by Alicia

When looking for a new home, do you cross off houses because it’s hard to imagine what to do with extra space? Perhaps it’s time to lose that viewpoint and realize that a blessing has been bestowed upon you! Don’t leave the spare space empty and definitely don’t fall into the common rut of using it as a catch-all for junk and clutter. There are plenty of ways to turn a spare room into something you can use. To prove it, here are a dozen ideas for making the most of your extra room:

1. An Office is a popular option. Whether you work from home or just spend a lot of time online, a private office space offers you a quiet area designated for that use. To create an office, add a spacious desk to become the room’s centerpiece. The most efficient desk will include abundant shelving space for a printer, files, books and office supplies. Add a couch or table area to the room for a relaxing break from work or for an open writing space.

2. A Guest Bedroom is another practical idea. Fill this room with the same type of furniture found in other bedrooms, all in neutral colors and designs to fit any age or personality. To offer the most comfortable stay possible, opt to provide a bowl of mints, a pile of fresh towels or a stack of magazines. Right before guests arrive, clean the room from top to bottom for a fresh appearance each time.

3. A Library is the perfect option for a quiet escape into a peaceful atmosphere. If reading is one of your favorite activities, why let your beloved manuscripts collect dust in boxes? Add wall-to-wall bookshelves filled with your favorite novels, poetry or short stories. Include the most comfortable chairs or couches for the coziest read you’ll ever experience. If writing is your thing, provide a table with paper, a typewriter or a computer. With your favorite books surrounding you, finding motivation will never be a problem.

4. A Game Room offers optimal entertaining space. Did you always want an old-fashioned Pac Man machine but could never figure out where to put it? Placing these gaudy items in a spare room will keep them away from everyday view and create the perfect atmosphere for fun time! Hang up pictures of your favorite athletes or the logos of your favorite teams. Add shelves for board games or supplies for pool/ping pong tables. The fun space you always dreamed for is now possible.

5. A Media Room is ideal for those who continually keep up with the latest technologies that become available. Turn this space into an electronic lover’s dream with an enormous flat-screen TV, a surround sound system, a high-impact stereo or a massive videogame arena. Don’t worry about chords visibly extending through other rooms or loud sounds inconveniencing others. Load it all into one room for the best movie or videogame experience of your life.

6. A Social Room is an option for those of you who love to hang out with friends and catch up on each other’s lives. For a mature atmosphere, create a wine cellar. Wine cellars no longer need to be hidden away in basements. Design with French décor, add wine shelves along the walls and place chic furniture to relax in. If wine isn’t your thing, build a bar inside the room with electric hookups and bar stools. Add a TV to watch sports games or include a refrigerator for snacks and drink options that everyone will enjoy.

7. A Fitness Room is a modern approach now that most weight-lifting equipment and workout machines are available to purchase. Why waste time joining a gym when you can create one in your own home? Set up your favorite machines, such as a treadmill or an elliptical, and maintain an open area. Add a stereo system, a TV or a stack of magazines to keep you entertained while you burn calories. Decorate with photos of your favorite athletes or with pictures of summer beaches. These will motivate you to keep at it!

8. A Pet Room is ideal for someone trying to sell a home or for someone who wants to keep a new home in top-notch shape. A pet room keeps your furry friends away from expensive furniture, but it also offers them room to roam! Allow caged animals to wander freely in an enclosed area or just place your dog or cat in the room when guests with allergies come over. Fill the room with pet toys, pet beds and pet litter. By keeping this clutter refined to one area, you won’t feel guilty for letting your pet take over a room.

9. A Toy Room creates a separate space for kids who come over. Instead of constantly tripping over toys around the house, enclose these youngster adventures to one room. A child will love to have his or her own space to scatter toys around freely. Decorate in bold colors or with a theme, such as clowns, dolls or ninjas!

10. If you enjoy scrapbooking on a regular basis, fill a Hobby Room with ribbons, glitter, poster board, cutouts, photos, you name it! Don’t worry about making a mess when you put aside a space just for that. Is keeping up with old acquaintances your favorite pastime? Scatter photos around the room and create a comfortable setting for writing letters or talking on the phone. Do you enjoy constructing ships in a bottle, architectural ideas or interior design projects? Fill the room with the supplies and space you need.

11. A Meditation Room is a supreme idea for someone who carries an abundance of stress with him or her on a daily basis. Sometimes you just need to let loose and forget about everything, but perhaps you don’t know how. Create a serene, peaceful atmosphere filled with soft aromas, candles, fruit, wine, chocolate or anything that helps you relax. Whether it’s playing a CD with ocean sounds or just lounging on a pile of plush pillows, create the perfect atmosphere to become stress-free.

12. A You Room is for those who can’t decide which idea suits them most. Perhaps you enjoy socializing, reading and working out. You can create a combo room with a roll-up yoga mat, a stereo for fitness and pleasure, a sitting area and a shelf of books! You can also use this room to display your proudest accomplishments. Decorate shelves with bowling trophies, hang published paintings or display jewelry that you made from scratch. If you just want a “feel good” room to relax in whenever your spirits need a rising, fill the space with photo albums, objects collected from nature or photographs of your favorite city.

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“Oops:” How Mortgage Lending became a Crisis

Dec10
2007 Leave a Comment Written by Sarah

housemoneyChances are, you have heard the phrase “mortgage crisis” more than a handful of times in the past few months.

If you are dipping your toes in the first-time mortgage pool, it is important to assess your own finances before relying on lending companies to guide you.

As this crisis has shown, you have to take responsibility for your own actions, as a homeowner and an investor, so that others will not take advantage of your foray into home ownership.

How it Happened

Like any good, old-fashioned financial crisis, the mortgage lending crunch began with speculation and risk–in this case, lenders issued high-interest loans to high-risk borrowers, or people who would normally be unable to afford to own a home. In the past, high-risk borrowers were far less likely to receive a loan than the financially stable. The high interest rates associated with this high-risk lending motivated some lenders to seek out high-risk borrowers, with the expectation of a high-interest return. While the housing market was strong, lenders saw no reason why they could lose money on what they thought was a foolproof asset. This risk-based pricing is common with major investments, but only gets complicated when the “risk” is not only based on the economy, but on the responsibility of the individual homeowner.

Enter: Middleman

Between 1997 and 2006, American home prices increased by 124%, and many people purchased homes they could not afford. Interest rates rose steadily with real estate prices, and new homeowners could not afford their monthly payments when their once-low interest rates rose astronomically. Once the real estate bubble burst, some homeowners were left with a depreciating investment and an increasing monthly payment. Foreclosures ensued.

Bank lenders then used their mortgage-based equity to attract bigger investors interested in mortgage-backed securities. The risk was passed onto these investors, who, essentially, had invested in an investment of an investment. These investors could fire-sale of homes for well below market value if they ever needed to recoup money lost on failed mortgage payments. While the investors lost money, homeowners lost both the financial and personal investments tied to their home mortgage. Since this risk has been passed onto bigger investors, a chain of careless lending left the homeowner homeless, and the lender with a pile of foreclosed properties.

Cleaning Up the Mess

Counselors are dealing with victims of foreclosure in order to educate them about risky, misleading, and predatory lending. Some banks are reevaluating their current mortgages, switching many adjustable-rate mortgages to a manageable fixed-rate mortgage. While many homeowners bought into a home that they couldn’t afford, there are countless others who are getting a second chance for financial stability. While risk-based lending is common on a market scale, it is much harder to judge who can and cannot pay a mortgage. The error was unmistakably human, and it is the people—not the investment companies—who have paid the price. Oops.

Know How it Works

As a rule of thumb, you can usually afford a home that costs two-and-a-half times your yearly salary. This does not account for maintenance or property tax associated with the home, nor does it factor in any of your own recurring debt.

Taking these factors into account, you need to find out how much banks are willing to lend to you. For this, you should seek prequalification for a loan from a few different lenders. Your best bet is working with Buy Owner’s mortgage partner, Guaranteed Rate, which will work hard to get you the best rate possible.

Prequalification is not an official loan approval, but it will give you a better idea of what the lender will grant you, and what the best interest rate you can get is. The preapproval, then, will tell you exactly how much you can mortgage, based on an assessment of your credit and finances. It is important to remember that the maximum that the lender will offer you is not necessarily the maximum that you can afford. While the lender may calculate that you can afford $3,000 a month, that may not include the cost of your lifestyle, other needs or special debt. The most important factor in finding a mortgage is to take responsibility for what you can afford, and not just the maximum of what a lender will provide.

Posted in General Information, Market News - Tagged , ,

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Welcome to the BuyOwner.com Blog, your source for regularly updated market information!

Founded in 1984, BuyOwner.com® is the leading provider of real estate marketing services. We pioneered the "For Sale by Owner" (FSBO) market, which today represents over 20 percent of all residential real estate transactions.

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