Townhouses: Pro's and Con's
reprinted courtesy of Our Family Place
Townhouses often make an excellent "middle ground" between a detached single family home and a full fledged condominium because, to some degree, they offer attributes of both.
For our definition, we will describe a townhouse as a home that is attached to one or more other houses, but which sits directly on a parcel of land that you also own (if you don't own the land, it is a condominium). For this discussion, townhouses can range from duplexes and triplexes all the way through huge townhouse communities consisting of hundreds of similar homes.
There is a good degree of variance in the way townhouse communities are structured. It may be a simple agreement (as is often the case of duplexes and triplexes) that each parcel of land and the home that sits on it is separately owned. In the case of larger townhouse communities, you will generally have an additional shared ownership in the common areas of the complex as well as any amenities such as swimming pools, park areas, etc. This ownership you will share jointly with all other townhouse owners in the complex.
In any townhouse purchase that involves a Homeowners' Association, it is vitally important to get as much information as you can, since the association can have a considerable impact on your ownership experience!
Advantages of Townhouses
* May have less exterior maintenance and repairs to be responsible for.
* Having a neighbor's home attached to yours may bring a higher level of security.
* There may be amenities in the community (for example, pools, tennis courts, playgrounds and the like).
Disadvantages of Townhouses
* You will be responsible for payment of Home Owner's Association fees.
* You give up privacy when compared to single family homes.
* Your options for changing the exterior look of your house will be limited.
Is a Townhouse for You? It is if...
* You like the idea of your "space" but not having to deal with most exterior maintenance has even more appeal.
* A small backyard "retreat" or deck is just about all the yard you need.
* The idea of having neighbors close doesn't really bother you - you just don't want them above and below as well as next to you!
http://real-estate-agents.com/tips/buying-house/townhouses.shtml
Friday, May 18, 2007
Buying a House: Mistakes to Avoid
Avoid Common House Buying Mistakes!
reprinted courtesy of Our Family Place
Buying a house covers a lot of ground - including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent - and potentially dangerous and expensive - mistakes made by first-time home buyers.
Running before walking
This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, though, can be a disaster. We get a number of emails from buyers who have contracted to purchase a home and want to know the easiest way of getting out of the purchase. Let it be known loud and clear: If you contract to purchase a home and "change your mind," the chances of getting released from the contract are almost non-existent. Still we hear "We found another home!" Sorry, too late. Maybe next time. "We are buying too much house!" Okay, maybe you will be able to rent out a room or two. " It's not what we want!" Maybe you can paint the house, or add on to it or replace the carpeting, but you will almost certainly will be living in it!
Over-buying the first time
Being "house poor" is an uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to support your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to - or beyond - your limits leaves you highly exposed when the inevitable changes to the national or your personal economy occur. Leave yourself some breathing room!
Finding out too late that you have no representation
This can be a nasty surprise when you assume that the Agent with whom you are working represents you when they actually represent - and owe complete allegiance to - the seller. How does this happen? By not taking the time to investigate and familiarize yourself with the laws regarding Agency. Or, by rushing out to look at homes, whether in person or on the Internet, and contacting the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Another pitfall occurs when you try to represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as - or more - likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you. In addition, without representation and the use of a Comparative Market Analysis, how do you determine a realistic selling price for a property?
Not comparing mortgages
There are far too many variables - type of mortgage, term, lender and amount of points to mention a few - not to investigate your options carefully. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.
Not getting mortgage preapproval
In the past it may have been different, but today prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength to your offer.
Waiting for the "perfect" home
Many first time buyers make the mistake of thinking that they will, if they look around long enough, find a home that meets 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy: First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes that meet fewer of their requirements because they are worn out!). Second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants, then select a home that meets the majority of them.
Shortcutting the house inspection process
This can involve skipping a whole house inspection completely in order to save the relatively small cost involved or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of overlooking potentially expensive - or even hazardous - defects in the property. Protect yourself and invest the $200 to $500 for a professional inspection.
http://real-estate-agents.com/tips/buying-house/mistakes.shtml
reprinted courtesy of Our Family Place
Buying a house covers a lot of ground - including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent - and potentially dangerous and expensive - mistakes made by first-time home buyers.
Running before walking
This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, though, can be a disaster. We get a number of emails from buyers who have contracted to purchase a home and want to know the easiest way of getting out of the purchase. Let it be known loud and clear: If you contract to purchase a home and "change your mind," the chances of getting released from the contract are almost non-existent. Still we hear "We found another home!" Sorry, too late. Maybe next time. "We are buying too much house!" Okay, maybe you will be able to rent out a room or two. " It's not what we want!" Maybe you can paint the house, or add on to it or replace the carpeting, but you will almost certainly will be living in it!
Over-buying the first time
Being "house poor" is an uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to support your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to - or beyond - your limits leaves you highly exposed when the inevitable changes to the national or your personal economy occur. Leave yourself some breathing room!
Finding out too late that you have no representation
This can be a nasty surprise when you assume that the Agent with whom you are working represents you when they actually represent - and owe complete allegiance to - the seller. How does this happen? By not taking the time to investigate and familiarize yourself with the laws regarding Agency. Or, by rushing out to look at homes, whether in person or on the Internet, and contacting the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Another pitfall occurs when you try to represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as - or more - likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you. In addition, without representation and the use of a Comparative Market Analysis, how do you determine a realistic selling price for a property?
Not comparing mortgages
There are far too many variables - type of mortgage, term, lender and amount of points to mention a few - not to investigate your options carefully. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.
Not getting mortgage preapproval
In the past it may have been different, but today prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength to your offer.
Waiting for the "perfect" home
Many first time buyers make the mistake of thinking that they will, if they look around long enough, find a home that meets 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy: First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes that meet fewer of their requirements because they are worn out!). Second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants, then select a home that meets the majority of them.
Shortcutting the house inspection process
This can involve skipping a whole house inspection completely in order to save the relatively small cost involved or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of overlooking potentially expensive - or even hazardous - defects in the property. Protect yourself and invest the $200 to $500 for a professional inspection.
http://real-estate-agents.com/tips/buying-house/mistakes.shtml
Buying a House: Renting vs. Buying
Pro's and Con's of Buying vs. Renting
reprinted courtesy of Our Family Place
If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.
Renting
* More fixed costs for the term of the lease
* Not gaining equity, but not losing it either
* When the lease is up, you can just move
* There is generally less work in maintaining a home or apartment
* Smaller amount of "up-front" cash
* No matter what happens with the value of the home, you will never gain equity
* Limited - or no - ability to personalize your living quarters
* No tax advantage to renting. Your landlord gets any and all tax breaks that are available
Buying
* Variable costs
* Equity may go up, down, or stay stagnant
* If you want to move, home generally must be sold
* Work needs to be done by you - or paid for by you
* Generally a larger initial investment - the downpayment
* Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
* The ability to remodel and redecorate the home to match your needs and desires
* There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
http://real-estate-agents.com/tips/buying-house/rent-buy.shtml
reprinted courtesy of Our Family Place
If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.
Renting
* More fixed costs for the term of the lease
* Not gaining equity, but not losing it either
* When the lease is up, you can just move
* There is generally less work in maintaining a home or apartment
* Smaller amount of "up-front" cash
* No matter what happens with the value of the home, you will never gain equity
* Limited - or no - ability to personalize your living quarters
* No tax advantage to renting. Your landlord gets any and all tax breaks that are available
Buying
* Variable costs
* Equity may go up, down, or stay stagnant
* If you want to move, home generally must be sold
* Work needs to be done by you - or paid for by you
* Generally a larger initial investment - the downpayment
* Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
* The ability to remodel and redecorate the home to match your needs and desires
* There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
http://real-estate-agents.com/tips/buying-house/rent-buy.shtml
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