Tips & Tools : Location

House Flipping

RE.com Tips & Tools — Sat, 04 Aug 2007 17:29:00 GMT

With a little hard work and some DIY expertise, house flipping can be a good way to invest in real estate.

House flipping – it’s the big trend in real estate. For those who are not risk-adverse and have a good eye for a home’s potential, house flipping can be a lucrative money-making venture. However, it isn’t for everyone, nor is it for every market.

What is house flipping?
House flipping involves buying a home, improving it, and then quickly selling it again, presumably for a profit. For example, say a house goes on the market that is a real eyesore. A house flipper buys it and makes some cosmetic changes before putting it back on the market at a much higher price.

How do you make it work?
Any old house won’t do for house flipping. Just because a house is in dilapidated condition and priced low does not necessarily mean that it is prime for flipping. There are certain factors that increase the potential for a successful “flip.”

• Location, location, location. The old adage of real estate holds true in house flipping, too. You can buy a house with the greatest potential at the cheapest price, but if its location is bad, it could be a recipe for disaster. For example, a house with train tracks running through the backyard is not going to sell no matter how nice you make it.

• Stick with cosmetic changes. If you have to gut a house, add rooms, blow out the kitchen, etc., it may be hard to get your money back, much less make a profit. Instead, focus on homes that require more cosmetic changes. Paint, flooring, updated appliances or fixtures – these are improvements that are relatively easy and don’t cost a fortune.

• Be a DIY expert. The more improvements that you do yourself, the more you stand to make. If you have to hire professionals, obviously that cuts into your profits. If you are experienced doing home remodeling projects yourself, you can save some money on repair costs. You can also improve your skills by studying DIY books and enrolling in classes at the local home improvement store – whatever it takes to become an expert at DIY projects.

• Get educated. Not only do you want to learn all that you can about home improvements, but you also need to become an expert on the neighborhoods in your community. That way when a house goes on the market that looks like a good candidate to be flipped, you know if it is a bargain in an up and coming neighborhood or one that you should avoid.

• Be wary. In a slow real estate market, house flipping can be extremely risky. If housing prices are dropping in your area, be sure to do a careful assessment of how much the house you are thinking of buying could depreciate. Also consider what you’ll do if the house ends up sitting on the market for longer than anticipated.

There’s a lot of money to be made in house flipping. But, don’t make the mistake of thinking it is an easy gig to get-rich-quick. House flipping requires good instincts, lots of hard work, and a significant degree of risk. But, for the DIY junkie, it can also be an attractive way to make some money.

How to Get Your Home in the Movies

RE.com Tips & Tools — Sat, 16 Jun 2007 20:34:00 GMT

Would your house look great in a close up? Find out if your home is silver screen material.

Los Angeles is a city full of famous landmarks: Mann’s Chinese Theater, the Capitol Records building, Randy’s Donuts with its enormous plaster pastry, the famed ‘Hollywood’ sign. But some of LA’s most treasured landmarks lie off the beaten path on the city’s sleepy residential streets, far away from the hustle and bustle of the Strip.

That place looks familiar!
Near the intersection of Melrose and Vine, just behind the Wilshire Country Club, sits 565 N. Cahuenga Blvd. At first glance, this well-maintained six-bedroom pre-war home (estimated value: $1.6 million) looks rather unassuming. But in fact, it’s one of the most famous houses in television history, seen by millions of viewers every Tuesday night in the ‘70s and early ‘80s.

565 N. Cahuenga is better known as the Cunningham residence from the beloved sitcom Happy Days. Chosen for its wholesome, all-American look and proximity to the Paramount studio lot, the house was used for exterior shots of the Cunninghams’ Milwaukee home for ten seasons. Remarkably, the house looks almost the same today as it did in its ’70s heyday. All that’s missing is Fonzie’s motorbike in the driveway.

Location, location, location
Getting a home or business in the movies or on TV doesn’t happen randomly. Film studios employ people called “location scouts” who seek out locations that suit a scene’s needs, like the spacious 4-bedroom family home at 671 Lincoln Ave in Winnetka, IL (the house from Home Alone) or the secluded ultra-modern ravine bungalow at 370 Beech in Highland Park, IL (the one used in Ferris Bueller’s Day Off). Beyond fitting the scene, a location must:

Be within reasonable distance to the studio or other shooting locations.
Offer enough practical working space for cameras, lighting rigs, actors and crew.
Provide parking for trucks, trailers and catering vehicles.
Be equipped to handle the electrical load of film equipment (or have space for portable generators).

“If a script calls for a small house, you actually aren’t going to go out looking for a small house,” says Kayla Thames-Berge, president of the Location Managers Guild of America. “You won’t be able to get the film crew, the director, the equipment or the trucks into a small space. You need a physical space that will accommodate the practical work that needs to be done at the location.”

Make nice with the neighbors
Residential film locations present other unique challenges. As a gesture of goodwill, before allowing permission to shoot, you should notify your neighbors. “[Filming] can be a very disruptive process,” Thames-Berge says. “It’s not uncommon for a film crew to consist of 100 people, all of whom need to be on your property -- inside, outside, or both -- for extended periods of time.” Municipal governments and law enforcement may also need to grant permission if the shoot is going to disrupt traffic.

Get on the list
However, if you think your home has star quality and feel you can handle the distractions, the first step is to contact your municipal or state film office by email and send them a few photos of your property. Do not contact individual location management agencies, production companies, film studios or directors yourself; when locations are needed, filmmakers and location scouts always contact the regional film commissions first, as the local boards have a more specific understanding of what their jurisdictions can offer.

Be patient
While it’s good to be optimistic, don’t expect your home to immediately be chosen as the setting for the next Hollywood blockbuster. The amount of film production in the US is actually quite small, and location scouts maintain extensive databases of homes and businesses they’re already familiar with. An untested property will likely start out at the bottom of their list.

“There are only about 450 feature films shot in the US [each year],” says Bill Lindstrom, the chief executive officer of the Association of Film Commissioners International (AFCI), “and not every house has the potential or the ability to be used in production.”

“But that’s not to say it can’t happen,” he adds, “especially if you have a very unique property that has features that aren’t available anywhere else. Those are the types of properties that are useful for the local film commission to hear about.”

You can find a list of all of the local film offices nationwide through the Location Inquiry Service of the AFCI at www.afci.org.

Location, Location, Location

RE.com Tips & Tools — Thu, 07 Jun 2007 15:02:00 GMT

Location and subtle characteristics may explain why one home is worth more than another.

Location is arguably the most important quality that determines the relative value of individual homes. That’s because each location is unique and can never be altered even by the owner.

How location affects house prices
The impact of location begins with the desirability of the city and locale where the home is located. For instance, places that have a mild climate or lucrative employment opportunities tend to have higher home prices than places where the weather is harsh or high-paying jobs are scarce. Geographical factors such as a beachfront or mountain views naturally affect home values too. And of course, being located in a good-quality school district can be a positive factor for any home.

All else being equal, a larger home, a larger lot or more acreage typically would be more valuable than a smaller home, a smaller lot or less acreage in the same neighborhood area. But location also involves more subtle aspects such as the position of a home within a neighborhood or subdivision. Where the home is along the block can affect home values as can street conditions or traffic patterns. For example, a home on a corner lot may be larger, but also may be subject to more traffic or less privacy. A home at the end of a street junction may be exposed to oncoming headlights after dark, or a home next to an apartment building may be along the sightlines of upper-level windows or balconies.

Even more specifically, your home’s position on its lot and the lot’s elevation are significant as well. A higher elevation may offer better drainage of rainwater away from the home and could expose the home to welcome breezes (or, on the other hand, unpleasantly strong winds). A home on a terraced lot may offer a pleasing view and more sunlight which could improve the home’s value. But keep in mind that if a flight of stairs is the only means of access to such a home, than the positive impact may be negated.

Location affects individual units too
The location of a condominium or other attached unit within a complex or building also can affect the value of that home. Upper-level units tend to offer more sunlight and privacy, better security and less noise while lower-level units may have a larger patio and be easier to access, especially if the property lacks an elevator. The location of a secured, attached or private parking garage can also affect the value of attached housing units.

How development can help or hurt home values
A location near major highways, vacant lots, railroad tracks, construction sites or other potential hazards to the safety of young children can impair a home’s value.

Home prices can also be affected by the proximity to parks, shopping centers, highways, public transportation and other amenities. And future development of new roads, public transit, commercial districts or more residences may be significant as well. New development may be desirable to some, but also could impair views or open space or bring more traffic and noise to the neighborhood.

Find out how much your home is worth at http://www.realestate.com/homepricecheck.

Buying a Home? Look Carefully at What You Can, and Can't, Change

RE.com Tips & Tools — Mon, 12 Mar 2007 21:35:00 GMT

Paint and carpeting are just temporary, but a busy airport near the neighborhood is forever.

In many ways a home is like a blank canvas waiting for you to fill it with color, beauty and life. That’s part of the reason it can be so exciting to buy a home. You + empty house = magic.

To really see the magic of a home you’re considering buying, you’ll have to be able to distinguish between what you can change and what you can’t. Unfortunately, many buyers get turned off by things that can be easily changed, like carpeting, wallpaper, paint color or old, scuffed floors. Don’t forget that you can always refinish or replace the floors, or take down the blinds you hate.

But it’s also important to be realistic about what you can’t change -- before you start shelling out monthly mortgage payments.

When buying a home, consider things like:

Location
That railroad track or interstate highway isn’t going anywhere. Neither is the airport flight path. Is the commute something you can live with? Have houses in the neighborhood been losing value while others in the city have increased in value? Do you feel safe and secure in the neighborhood?

Lot size
There’s not much you can change about the size of the lot, short of buying the lot next store (which isn’t practical for most home buyers). If the lot is small, will your children be content to stay there when they play? On the other hand, a large lot can be nice, but are you prepared for all the maintenance?

Proximity of neighbors
It can be annoying and even disconcerting to hear what’s going on in the house next door. A neighbor’s view into your bedroom isn’t too great, either. Can privacy ever be yours in that location?

Street traffic
Buying a house on a busy street can be more than annoying. It can be dangerous, especially if you have young children. Consider if you will have to back out of your driveway into traffic or keep your windows closed on nice days to block out the traffic noises and exhaust fumes?

Square footage
Keep in mind that the square footage of a house can be changed but building an addition can be complicated and expensive (and may not be in your budget). If a house feels too small before you buy it, imagine what it will feel like once it is full of your things.

Number and size of bedrooms
If remodeling is not an option, you’ll have to learn to live with the bedrooms as they are.

Closet space
Storage is a huge issue, and not just in the bedrooms. (Although all you clothes horses know who you are.) It is very difficult to create storage in a home that doesn’t have much storage space already built in.

If you do find a home you love but think you might want to renovate, it would be smart to have a trusted contractor and/or architect tour the home with you before you buy. They can tell you whether a “can’t change” can be turned into a “can change” for a price you can afford.

Choose a Home That Will Hold Its Value

RE.com Tips & Tools — Thu, 15 Feb 2007 22:43:00 GMT

Before you buy, think about how appealing your new home will be when it's time for you to sell.

The most important features that help sell a home are the three you hear about all the time: location, location, location. But beyond neighborhood, there are a number of factors that influence resale value.

This is an important consideration. Even if you believe you’ve found your dream home and will never move, chances are you will sell it one day.

Here are some of the home features that help sell a home:

Outside
REALTORS® cite curb appeal as key to selling a house. In fact, it can add five to 10 percent to a home’s value. But if a home doesn’t make a good first impression, a stunning interior seldom compensates. So, if a house has curb appeal when you buy it, maintain it, because it will work for prospective buyers, too, when you want to sell.

Ironically, the elaborate garden or pool that attracts you to a house is a deterrent for many prospective buyers because it looks like too much work to maintain. Unfortunately, it’s difficult to add what many REALTORS® consider the best landscaping feature for resale: very large, healthy, mature trees. A garage is a definite plus for resale, especially if most houses on the street have one, and the rule is the bigger, the better.

Inside
On the inside, the ambiance of the house matters almost as much as how new it is or how well finished individual rooms are. A light, bright feeling appeals to buyers. Look for a home with large windows, good sun exposure, walkouts to the garden and perhaps even a vaulted ceiling in the main room.

The floor plan is a vital consideration for resale. If it is cut up into small spaces with rooms that relate to each other awkwardly, the house will always make a poor impression on prospective buyers, even with superb decorating. Layout preferences vary from region to region and are often related to climate. But some features are universally popular: a large separation between the master bedroom and secondary bedrooms; a central area where living, family dining and kitchen areas flow together; and a main or second-floor family room.

Not surprisingly, experts say kitchens and bathrooms are the areas that affect resale value most. The only debate is over which room has the most impact. A contemporary kitchen with new appliances is a big draw. Updated bathrooms, especially a luxurious master suite bath, are also popular.

Most REALTORS® say that a three-bedroom house has a much wider market than one with fewer bedrooms. Four or more bedrooms don’t necessarily help sell a house, but shifts its market to larger families. A spacious master bedroom is an expected feature in newer homes, at least, rather than a selling point -- if you don’t have one, it can be a problem. Ample storage and closet space are also compelling resale features.

Services and structure
Modern services, especially those that are difficult to add, such as built-in air conditioning and central vacuum, are important features for many buyers. Up-to-date wiring and plumbing are not so much selling features as significant deterrents to potential buyers if they are not present. Even in older homes, these must be up to current standards or the house languishes on the market.

Just as sparkling new kitchens and baths help sell a home, certain flaws have the opposite effect. For instance, damp basements, signs of water damage (especially from leaky roofs), or permanent damage from poor maintenance, are major sales detriments. Avoid a home with these obvious problems unless you know you can afford to fix them and make your money back when it’s time to sell.

Top 10 Tips for Building a Home

RE.com Tips & Tools — Thu, 15 Feb 2007 18:57:00 GMT

Planning to build the home of your dreams? Here's expert advice for every step of the process.

Building your own home can be exciting, but it can also be challenging. The following ten tips can help make sure it goes smoothly:

1. Get pre-qualified for a mortgage
Whether building a new home or buying an existing home, this first step is the same. By contacting a lender and providing them with some basic information regarding your debt, income and assets, you can find out the size of mortgage for which you are likely to qualify. Then, before that first shovel of earth is turned, you should make sure you get final mortgage pre-approval. This involves filling out a mortgage application and supplying a lender with the necessary documentation to check your financial background and credit rating so you will know exactly how much you can afford to spend.

2. Check the reputation of your builder

Many builders are out there, but not all are created equal. Do a little research to find out which builders have the best reputation. Whether you search for information online or get recommendations from your friends, find out whether a builder is respected for doing quality work as well as being punctual.

3. Be selective about location
The most important thing to decide when building a new home is where to build. What makes the community that you are interested in stand out? Often, new building developments are located on the outskirts of a city or suburban area. It’s therefore important to check if the area you are considering is close enough to transportation routes, shopping and schools. Also, find out if the developer is planning to add amenities that will enhance your lifestyle such as walking trails and ponds.

4. Watch your budget
New home communities list a base price for the homes that they offer. However, this is rarely the actual final cost when building a new home. Be aware that you can add thousands of dollars to the base price of a home very quickly if you get carried away upgrading the standard flooring, cabinetry or lighting. It’s important to know exactly how much you can afford and to budget accordingly.

5. Build with resale in mind
No matter how much you love the house that you are building, it’s unlikely that it will be the last home you will ever own. Knowing that, you should be mindful of its potential resale value. Don’t add so many upgrades that you overprice your home for the neighborhood. And don’t choose anything too out of the ordinary. Ask yourself if the features you’re considering installing are likely going to appeal to others.

6. Know your timeline
Building a new home usually takes many months and lots must be coordinated during this timeframe. If you are already a homeowner, your current home must be sold, you must make decisions regarding your new home and you must arrange a new mortgage. Get an estimate of when the building of your new home will be completed and plan accordingly.

7. Be prepared for delays
No matter what timeframe a builder gives you, there is always the possibility of delays. Inclement weather, shortages of supplies and labor problems can all factor into delaying the completion of your home. Be aware of this going into the building process and be prepared to be somewhat flexible.

8. Keep a close watch on progress
One way to help prevent delays and mix-ups is to stay involved in the building process. If possible, drive by the construction site to keep track of the progress that is being made. And keep in touch with your builder on a regular basis.

9. Avoid making changes
Try to avoid making changes to your designs once all of the plans have been completed. It will delay the completion of your new home and may add considerably to the final cost.

10. Arrange temporary housing
Chances are there may be a delay between the time you sell your existing home (or the lease expires on your current rental unit) and the time you move into your new home. If this is the case, you will need to arrange some temporary housing. Realize that you may be living there for several months so make sure it will be both affordable and able to meet your needs.

How to Find the Right New Home Community

RE.com Tips & Tools — Thu, 15 Feb 2007 18:36:00 GMT

You need to look at a variety of factors when shopping for a home in a new home community.

Buying a new home is an important decision. And with so many new home communities being built today, it can be a confusing one. Consider the following to be sure you choose the one that’s right for you:

1. Location

Location is always the most important factor when shopping for a home. And it can be more important than ever when shopping for a new home community. Many new home communities are located outside a town’s central urban or suburban areas. There may not be much around them. Check to see if there are future shopping centers planned, if there is good road access for you to get to work and, if you have children, find out how far away it is to the nearest school.

2. Price

Before you fall in love with a beautiful model home, better make sure it’s in your price range. And remember, the base price you see listed won’t include the cost of all those tempting upgrades the developer is likely to offer. So before you go house hunting, it’s always wise to get pre-approved for a mortgage. That way you will know exactly how much you can afford to spend and you will be in a position to make an offer as soon as you find the perfect home.

3. Special features

With so many new home communities going up close to one another, it’s important to carefully compare the features of each before deciding on the one that’s right for you. With resale in mind, you also want to choose a new home community that stands out from the rest. Does the community that you are interested in have a pool or walking trails? Are the homeowner’s dues more reasonable compared with other nearby communities? Those same features that appeal to you now are likely going to appeal to another buyer down the road

Is the House Worth the Price?

RE.com Tips & Tools — Thu, 15 Feb 2007 16:16:00 GMT

You're about to put in an offer on a home you love. Here's how to determine if it's worth the money.

Before you plunk down your hard-earned cash for what seems to be the perfect home, step back and take time to consider the following:

A Comparative Market Analysis

Ask your REALTOR^® to provide you with a Comparative Market Analysis (CMA). A CMA compares similar homes in the same neighborhood that have sold in the past six months to a year or are still on the market. The house you want should compare favorably in price, with the price properties sold for being more indicative of real estate value than the listing price. The more similar the features (square footage, number of rooms, number of bathrooms, age, lot size, etc.) and the more recent the data, the more accurately the CMA reflects the current market.

It’s also useful to look at how quickly homes are selling in the neighborhood. If similar houses are selling rapidly (within a month or so) at close to their listing price, it’s a sign the home you are interested in is probably priced fairly and will be more likely to appreciate in value over time than a home that has sat on the market for a year or more.

Location, Location, Location

It’s an old real estate saying that the three most important factors to consider when buying a home are all location. It’s certainly true when determining price. The least fancy home in a good neighborhood is worth more, in the long run, than the fanciest house in a bad neighborhood.

To evaluate the house you want, research the local housing market. Browse the Internet, local newspaper ads and real estate publications. Visit nearby open houses, talk to the neighbors and keep your eyes open. The best neighborhoods have:

Good schools
Proximity to public transportation
Convenient amenities like grocery stores, parks, a post office and a doctor’s office
No environmental hazards -- clean air, water and soil, and minimal noise pollution (visit at night and listen for traffic, trains, planes, barking dogs and loud neighbors)
Low crime

Also, find out how much it will cost to live there. The house itself may be a great value, but the cost of taxes, water, electricity, natural gas, oil, television and telephone could be inordinately high.

The Condition of the Home

Look past cosmetic repairs such as a fresh coat of paint and new carpeting. These could disguise defects such as peeling walls or cracked flooring. And try to ignore decor. Those beautiful paintings, vases overflowing with flowers and freshly baked cookies won’t be there when you move in. Focus instead on basics that add value:

A solid structure -- well-constructed walls, floors, ceilings, doors and windows
A roof and basement that don’t leak
Heating, electrical, plumbing and other systems that work
Kitchens, bathrooms and bedrooms with the space and amenities to meet your needs
No signs of termites or other vermin
No signs of mold, rot or water damage

Your Current and Future Needs

Ask yourself how many bedrooms and bathrooms you need for the next few years. And whether you need, and are willing to pay for, space for a home office, a garage, air conditioning, a swimming pool, etc. It’s not worth paying for amenities you may want but don’t really need.

A well-designed, renovated kitchen or basement, or extra rooms are usually worth paying more for. But only pay more for extras such as fancy tiles if you want them to improve the quality of your life. Unique extras that may have cost the owners $20,000 are unlikely to add $20,000 in value to the home when you decide to sell.

A Home Inspection and Appraisal

It’s always wise to make your offer conditional upon a home inspection. A reputable home inspection company will provide you with a report that identifies existing and potential problem areas, suggestions on how to solve these problems and a cost estimate for any work you’ll eventually require.

It’s also a good idea to have the home’s market value professionally appraised. Your lender may require a home appraisal in any case before providing you with financing. Home inspections and appraisals usually each cost around $200 to $500.

Get a LendingTree Guide to Mortgages when you request a mortgage loan through LendingTree.

Find a pre-screened REALTOR^® in your area.

How Do I Price My Home?

RE.com Tips & Tools — Tue, 06 Feb 2007 16:03:00 GMT

About to put your home on the market? Here are the factors you should consider when determining how much to list it for.

The ten main factors that influence the value of your home are:

1. Interest rates: The lower the interest rates, the more buyers can afford to pay.

2. Supply and demand: Are ’for sale’ signs springing up all around the neighborhood? If there are a number of homes similar to yours on the market, consider them your competition. What can you do to set your home apart and make it desirable for a majority of potential buyers? On the other hand, a small number for sale can result in competing bids that send prices up.

3. Economy: Is the economy improving or sliding? This will affect buyers’ confidence in their ability to manage debt.

4. Location: Are you in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems?

5. Condition: Have you updated features and kept up with repairs? Is the house clean? Does your house make a good first impression? (This is called "curb appeal.") How much can you reasonably do to fix it up for sale?

6. Timing: Do you need to sell quickly or can you choose your time?

7. Size: Will your home appeal to a growing family or to those who are downsizing?

8. Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?

9. Terms: How flexible are you with respect to the sale? What’s excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing and help you sell for the maximum price.

10. Attitude: How committed are you to selling now?

To determine your home’s value:

Research the housing market in your area. Browse the Internet, local newspaper ads and free ’For Sale’ publications. Visit open houses in your neighborhood to get a general idea of the current market.
Get a comparative market analysis (CMA) from a REALTOR®. A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features -- square footage, number of rooms, lot size, etc. -- and the more recent the data, the more accurately it reflects the current market. Don’t confuse listing price with sold price -- the most important factor in the CMA. REALTORs® usually do CMAs for home sellers at no charge.
Have your home appraised. An appraisal estimates your home’s market value. A lender will require an appraisal to finance a prospective buyer. For residential properties, a professional appraiser will either compare your home to similar properties that have sold in the area or, for new properties, estimate how much it would cost to replace the existing structure if it were destroyed.

To maximize your home’s value:

Eliminate clutter and clean. The more you can clean your home and keep it tidy, the easier it will be to show, and the more buyers who will see it at its best.
Paint and repair. First impressions count. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked widow panes.
Consider hiring a home stager. A professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Whether it’s rearranging furniture, minimizing belongings, lending you accessories or renting furniture, they work with you to show off your home’s best features. Many will also coordinate hiring professionals to do cleaning, painting and minor repairs.

What’s the right price?

Generally, aim for your list price to be within 2.5 to 5 percent of what you expect the selling price to be. Pricing strategies vary with the market. If it’s sluggish, price lower. If it’s active, price close to your expected selling price to stimulate competing offers.

Remember, your home is easiest to sell when it’s first listed. During the first couple of weeks, you’ll get a flurry of interest on the part of agents eager to preview it for their clients. If you price it too high and they can’t sell it, your home may linger on the market and become old news. Prospective buyers may think you’re becoming desperate and lower their offers. As a result, you could end up having to accept less than you normally would have received.

Bill Yeager
Regional Vice President, Realty Services

Needs vs. Wants

RE.com Tips & Tools — Fri, 26 Jan 2007 00:19:00 GMT

Most of us cherish the notion of a dream home. In our mind's eye it may have big windows, fireplaces and airy open spaces

But in reality, an ideal home is one that allows us to comfortably express our lifestyle. That’s why it’s so important to make a list of your needs before you go house hunting.

Family needs

Do you have a family or are you planning to start one? Both will affect the number of bedrooms you need. You may need a backyard for small children or dogs. If you have teenagers, maybe you could benefit from a basement rec room and an extra bathroom. If you have more than one car, you may need plenty of parking and/or a garage.

Location

Do you need to be close to certain schools for your children or near transit to get to your workplace? A downtown loft-condominium or trendy Victorian row house might be the answer if you are a single professional who wants to be close to your work and to nightlife -- just be sure to check that it’s in a neighborhood where you feel secure.

Work space

If you work from home, you may want an extra bedroom for a home office and wiring for the Internet and a second phone line. If you have hobbies, such as gardening or woodworking, you may require a utility room or a work area in the basement.

Timeline

Research shows that people tend to be in starter homes for an average of five years. Look down that five-year timeline. Will you be starting a family or having another child? Be sure to take such plans into consideration.

Maintenance

You’ll want to consider ease of maintenance. That huge lot may be gorgeous, but do you want all the mowing and weeding that goes with it? A beautiful, old home may require substantial upgrades and more costly repairs than a newly built home. Can you afford the extra expense?

Budget

Be realistic when making a list of your wants. Many people put fireplaces, a master suite with a large bath and open-plan main floor spaces on their list of wants. Wood floors, bay windows and renovated kitchens are also popular. If you can get a house that meets both your needs and wants, and fits your budget, that’s great. If not, be willing to compromise on the non-essentials.

What’s important

Look behind those cozy shutters. Are the window frames solid? You may love a home’s color scheme, but make sure the masonry and roof are in good repair. They are much more expensive to replace than the cost of repainting. Similarly, brass lighting may be appealing, but if the house doesn’t include that, it’s easy to install new fixtures. However, new wiring and a breaker box will mean fewer worries. Is the kitchen you’re viewing somewhat dated but has the space you need and pleasant natural light? You can always paint the walls and cabinets for a quick lift and schedule a renovation down the road.

It’s easy to fall under the spell of a charming house. Just remember to go over your list of needs. After all, you’re looking for more than just a pretty face.

Examples of needs	Examples of wants
Enough square footage for comfortable living	Specific color of carpeting, paint or exterior
Enough bedrooms to accommodate your family	Pool or hot tub
Space for a home office	Wood floors
Adequate number of bathrooms	Bay Windows
Eat-in kitchen	Built-in entertainment center
Garage or basement for storage needs	Decorative fixtures
Lot size to accommodate children’s play area	Skylights
Adaptation for disabled	An attractive view
Proximity to a specific school	Newly renovated kitchen
Close to transportation, office, shops	Fireplace
Adequate plumbing, wiring, insulation	Open floor plan
Good windows	Big master bedroom with adjoining bath

Step 5: Finding Your Home

RE.com Tips & Tools — Sun, 21 Jan 2007 19:41:00 GMT

To avoid wasting time looking at homes that aren't right for your family, first set aside time to determine what you need in a home.

Searching for the perfect home can be overwhelming. To avoid wasting time looking at homes that aren’t right for your family, first set aside time to determine what you need in a home. If you and your real estate agent have a clear idea of what you’re looking for, you’ll spend a lot less time visiting houses that don’t appeal to you.

Location

When dealing with real estate, location is almost everything. Along with size, location is one of the biggest determinants of price, so don’t be surprised if your desire for a certain part of town comes at a higher price. Once you know your price range, you should be able to narrow your options down to a few areas. Don’t just consider your commute to work, but also think about schools, proximity to grocery stores, theaters, restaurants and parks. If you find a deal that seems too good to be true, research the property thoroughly to see if the house is in a flood plain, near a sewage plant or has other environmental problems.

Size & Features

Do you need more bedrooms? A home office or game room for teenagers? Do you have large dogs that need a large yard? Make a list of everything you want in your new home, from number of bedrooms and bathrooms to details like crown molding and stainless steel appliances. It can help to consider what you don’t like about your current home, condo or apartment. For example, do you enjoy cooking but have little counter work space in your kitchen?

Prioritizing Needs & Wants

Once your have your list, rank each feature. This will help you determine what you must have in a home, and what would be nice to have. Give this list to your agent, clearly stating what are must-haves and deal breakers, then let your agent find homes that match your criteria. The list will help your agent understand what’s important to you, so they can screen listings for you. And remember that while your list helps you prioritize what’s important, don’t get stuck on features you can change if the rest of the house is perfect. It’s easy to paint cabinets, replace faucets and add a fence to the yard.

As your home search progresses, give your agent feedback on the homes you’re viewing. Make sure he or she understands what each home is missing. And if you find that your needs change, make sure you communicate that to your agent.

Home shopping made easy

RE.com Tips & Tools — Fri, 12 Jan 2007 16:54:00 GMT

There are five key factors to consider if you want to get the most out of shopping for a home.

Home shopping can be fun, but it’s important to know what to look for. The top five points you should keep in mind when shopping for a home are:

1. Location, location, location. There’s good reasoning behind this popular phrase. You could find the best house in the world at the greatest price, but if it’s in the wrong location, it could turn out to be a bad purchase. The house needs to be near what’s important to you and your lifestyle. A bad location can also affect your home’s resale value.

2. The house itself. Just because the location is right does not necessarily mean that the house is right. When home shopping, you need to consider: Does the floor plan meet your needs? Is the building large enough? Does it have the yard you want? Most importantly, does it feel like home? If it doesn’t, then you should probably continue looking.

3. Affordability. Know what you can afford before you start home shopping. The easiest way to do this is by getting pre-qualified for a mortgage. By providing a lender with some basic financial information, you can find out how much of a loan you’re likely to be approved for. Home shopping is a lot easier and less stressful when you’re aware of your financial boundaries.

4. Future potential. You may find the perfect house for your current situation, but if you are planning any big changes in the near future, the house you choose needs to be able to accommodate them. You don’t want to invest time, effort and money in a house and then require a larger one nine months later. It’s important to keep your future plans in mind when shopping for a home.

5. Resale. Most likely, you will not live in the house you buy forever. Most people do not live in their house even for the full term of their mortgage. When home shopping, you need to keep in mind that at some point you will probably want to put your home on the market so don’t compromise. If you decide a house has some aspect that you can overlook, you need to be aware that someone else may not feel the same way. When home shopping, choose a house that is not only appealing to you, but is also likely going to appeal to others.

How to pick the right house

RE.com Tips & Tools — Fri, 12 Jan 2007 16:48:00 GMT

Is the house you have fallen in love with really the right house for your needs and lifestyle? Here are 10 criteria to consider.

Shopping for a home can be a lot of fun, especially when many attractive homes are on the market. But before you make an offer on the one that’s captured your affections, consider these criteria:

1. Price. Just because you can buy a more expensive house doesn’t mean you necessarily should do so. The more money you spend on mortgage payments, property taxes, homeowner’s insurance, and repair and maintenance costs, the less you’ll have to spend on your other wants and needs.

2. Character. Some neighborhoods are citified while others are suburban or rural. Some have matured with the passage of time while others are brand new. Some are staid while others are funky. Choose a place to live that suits your personality and lifestyle.

3. Location. The age-old joke that the three most important factors in buying real estate are location, location and location may be too tired for laughs, but it’s nonetheless true: A poor location is the one characteristic of your home that no amount of money or effort can ever alter.

4. Zoning. Local laws set limits on the number and size of housing units that can be built on residential lots. That means some areas may be open to mansion-sized homes or higher-density housing (e.g., duplexes or apartment buildings) while other may have restrictions that prohibit such uses.

5. Lot. A house that’s next to a shopping mall, school, park, transit stop or other non-residential use may or may not be desirable, depending on your preferences. A home on a corner lot might be larger and more private than neighboring homes, but could also be subject to more traffic noise.

6. Incurable Defects. Any problem that would be outrageously expensive or impossible to fix is called an "incurable defect." Examples include an airplane flight path, bizarre floor plan, inadequate parking or inordinately loud traffic noise. Don’t buy a home with an incurable defect unless you’re willing to live with that condition as long as you occupy that home.

7. Environmental Hazards. Some houses are plagued by wood-eating pests, high levels of radon, molds, lead-based paint or other potential hazards. If you’re concerned about any of these conditions, hire a qualified expert to inspect the house. Find out whether the house is located in a flood plain or a high fire-risk area.

8. Size. Square footage is important, but so are the relative sizes of the various rooms and the use of space throughout the house. A staircase, multiple hallways or odd alcoves could make a large house seem smaller than its square footage. Check out the closets, too.

9. Floor Plan. Some houses have an efficient and pleasing arrangement of rooms while others have odd configurations that may seem maze-like or dictate inconvenient traffic patterns. A two-story house can offer more living space for those who don’t mind the extra exertion every day.

10. Condition. An attractive, well-maintained house will cost more than a similar house that’s not in great shape. If you don’t mind hiring contractors or making repairs yourself, you might be able to buy that less-attractive house at a discount. Otherwise, you might prefer to purchase a house that’s in good condition.

Ask an Expert: How to Price Your Home

RE.com Tips & Tools — Thu, 11 Jan 2007 15:46:00 GMT

When preparing to put your home on the market, take time to consider the factors that influence the value of your home

The ten main factors that influence the value of your home are:

1. Interest rates: The lower the interest rates, the more buyers can afford to pay.

2. Supply and demand: Are ’for sale’ signs springing up all around the neighborhood? If there are a number of homes similar to yours on the market, consider them your competition. What can you do to set your home apart and make it desirable for a majority of potential buyers? On the other hand, a small number for sale can result in competing bids that send prices up.

3. Economy: Is the economy improving or sliding? This will affect buyers’ confidence in their ability to manage debt.

4. Location: Are you in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems?

5. Condition: Have you updated features and kept up with repairs? Is the house clean? Does your house make a good first impression? (This is called "curb appeal.") How much can you reasonably do to fix it up for sale?

6. Timing: Do you need to sell quickly or can you choose your time?

7. Size: Will your home appeal to a growing family or to those who are downsizing?

8. Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?

9. Terms: How flexible are you with respect to the sale? What’s excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing and help you sell for the maximum price.

10. Attitude: How committed are you to selling now?

To determine your home’s value:

Research the housing market in your area. Browse the Internet, local newspaper ads and free ’For Sale’ publications. Visit open houses in your neighborhood to get a general idea of the current market.
Get a comparative market analysis (CMA) from a REALTOR®. A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features -- square footage, number of rooms, lot size, etc. -- and the more recent the data, the more accurately it reflects the current market. Don’t confuse listing price with sold price -- the most important factor in the CMA. REALTORs® usually do CMAs for home sellers at no charge.
Have your home appraised. An appraisal estimates your home’s market value. A lender will require an appraisal to finance a prospective buyer. For residential properties, a professional appraiser will either compare your home to similar properties that have sold in the area or, for new properties, estimate how much it would cost to replace the existing structure if it were destroyed.

To maximize your home’s value:

Eliminate clutter and clean. The more you can clean your home and keep it tidy, the easier it will be to show, and the more buyers who will see it at its best.
Paint and repair. First impressions count. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked widow panes.
Consider hiring a home stager. A professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Whether it’s rearranging furniture, minimizing belongings, lending you accessories or renting furniture, they work with you to show off your home’s best features. Many will also coordinate hiring professionals to do cleaning, painting and minor repairs.

What’s the right price?

Remember, your home is easiest to sell when it’s first listed. During the first couple of weeks, you’ll get a flurry of interest on the part of agents eager to preview it for their clients. If you price it too high and they can’t sell it, your home may linger on the market and become old news. Prospective buyers may think you’re becoming desperate and lower their offers. As a result, you could end up having to accept less than you normally would have received.