What is the future of the real estate industry? What new trends are taking place in the real estate industry? Many people are speculating on the changes taking place in the real estate market in Colorado and other areas around the country. The idea of “One Stop Shop” real estate services is gaining interest among real estate professionals in Colorado and other states in the country, however, many real estate professionals are unaware how to implement the business model.
For as many real estate professionals that are unaware how to implement the “One Stop Shop” real estate business model, there are just as many who are unwilling to accept that this business model will be a reality. For those people, I want to ask them if they have ever heard of the mega-retailer Wal-Mart and if they understand their business model? The one stop shop business model is commonplace in our society and becoming commonplace around the world.
The term “One Stop Shop” originated in the United States in the early 1920’s and 1930’s. According to Gary Martin, author of the Meanings and Origins section of Phrasefinder website, the earliest tracing of “One Stop Shop” was found in an advertisement for a car repairer in The Lincoln Star, Lincoln Nebraska, July 1930. They summed it all up in their tagline – “Have it all done in one place. Save your time. Save your money”.
Like many of us who have come to expect value from the mega retailers, many consumers are asking for more value from their Real Estate professionals. Some people might expect this value to come in the form of price discounts, however, I’m referring to packaged real estate services and the ability to deliver value in pricing real estate, contract negotiations and marketing by leveraging individuals skilled in the functional disciplines of Real Estate, Lending and Appraising.
Damon Chavez is the co-founder of Colorado House Finders, a full-service online resource for buying and selling real estate in Colorado. Damon's dedication to customer service and knowledge of the Colorado real estate market make him the smart choice when thinking about a move to Colorado. Contact Damon today to start your search for real estate in Colorado or visit online at http://www.coloradohousefinders.com
http://ezinearticles.com/?One-Stop-Shop-Real-Estate-Colorado&id=690743
Wednesday, August 22, 2007
3 Whopping Assumptions Industry "Experts" Make about Baby Boomer Home Buyers
Anyone over the age of 40 is by now hyper-alert to the entire marketing stratosphere’s buzz intended to attract the Baby Boomer consumer. Most of those folks are starting to feel like their being treated like big dollar signs, without anyone listening for what they’re really interested in. The Real Estate industry’s efforts to corral this demographic are not exempt from this behavior, so I’ve identified three wholly obsolete or incorrect assumptions that builders and Realtors alike have fallen into. Let me know if any of this sounds familiar-
1. Boomers want new lifestyles to come along with their new addresses!
2. Boomers are getting older, but still think they’re in their 20’s!
3. Health issues affect older people; so Baby Boomers need Universal Design building principles to remain independent.
Yikes – Those are pretty bad. Let’s take a closer look at what these assumptions mean, and what a more accurate picture might look like.
Quite often we see advertisements for a new retirement community designed not for baby boomers, but for their parents – G.I. Generation or Silent Generation members. Marketing materials from these types of developments typically extol the ability of seniors to take up fresh pursuits, and begin to enjoy a new lifestyle in their planned communities. In addition to providing a “new way of life,” sales materials are often gluttonously weighted with helpful features that seniors will benefit from.
To bolster sales, age restrictions have been lowered on most of these communities – some as low as 50 or even 45+ years for the youngest residents. A question would obviously be why more baby boomers have not been sold on these communities? Is it too much of a stretch of the imagination to suggest that baby boomers do not need “new lives?” Perhaps they’re fairly happy with life now, and want to merely move their life to a new address, not a new reality. When a baby boomer takes a trip through a new construction model, they are far more likely to be reconciling the new residence with their existing lifestyle.
By now, we’re well accustomed to the stereotype that baby boomers are obsessed with youth. This very important aspect of many baby boomers’ personalities has been terribly misconstrued by kind folks responsible for marketing baby boomer oriented products and services, and particularly in real estate. They are advertising with a presumption that, for baby boomers being young means being 21! Overall, baby boomers have played by their own rules, and often see old age or youth to be a conscious choice, a mindset. However, the overall consensus of people I talk to is that few intend to go back into their twenty’s, they just want to retain their youthful spirit and keep their good looks! The problem with most of the marketing efforts is in many of the marketers. If a marketing team is made up of 20 and 30somes, especially if they’ve been inundated with the notion of baby boomers being vain or age defiant, they have a tendency to advertise to THEMSELVES. They are doing what is most natural, which is why we see so many baby-boomer-oriented advertisements with individuals acting peculiarly for their age bracket. Advertisers, and those designing homes and providing services, need to be able to walk a fine line between observing this natural desire for baby boomers to retain and regain youthful vigor, and patronizing it with the vague notion that fresh faced young adults are an IDEAL which all others envy.
As I have noted in past articles, the rate for disabilities of the 65 and older crowd has actually dropped from 26.2 percent in 1982 to 19.7 percent in 1999 (Census Bureau Statistic). The devotion to physical fitness by many in the baby boomer generation will decrease those percentages even further, and we all expect boomers to outlive their predecessors significantly. However, those who decide to plan ahead, taking a proactive course in their home search, are expected to be looking for homes that utilize “Universal Design” in their new home’s floor plan and amenities. “Universal Design” is a home designed to accommodate those with disabilities in a floor plan that is friendly even to those who are not disabled. It emerged after World War Two, with the hundreds of thousands of Veterans returning home effected by the ravages of war. Understandably, connotations of Universal Design are not readily welcomed by baby boomers, as opposed to home buyers of the 1950’s, and much to the chagrin of industry analysts and experts.
While universal design may be helpful to those with physical challenges, those without them, i.e. – “proactive” boomers- are not excited by the prospect of hand-rails in the bathroom, or extra-low countertop heights. The features they may enjoy, however, are those which provide added luxury in addition to ease of access. Things like wider doorways, an ergonomically designed kitchen, wider doorways, more open floor-plans, and a bathroom that is larger and more conveniently laid-out. This concept of universal design, developed over the past 60 years, needs to evolve to suit the healthiest generation in history. Boomers are not being forced into new homes; they just want a blueprint that can easily adapt to their needs as they age.
It is no doubt that the housing industry will need to adapt over the coming years as more and more Baby Boomers reach age 60 and beyond. How that change manifests itself is going to change many of the preconceived notions that the “experts” have been duped with. Hopefully, for the sake of those who are looking to make a move for the sake of their future, those preconceived notions will be shed in favor of reality. Baby boomers are not looking to start over with a new life, metamorphous into 20 or 30somethings, nor move into a home expressly designed for elderly needs. Here’s a novel idea – how about selling baby boomers based on what each individuals’ wants and needs? Maybe that’s over-thinking it.
W. Alex Goldie is a Realtor & Broker Associate with Baird & Warner Residential Sales, Inc. He is a Senior Real Estate Specialist (SRES), a member of Baird & Warner's Vice-President's Club, and an Accredited Buyer Representative (ABR). Based out of Saint Charles, Illinois, he works primarily in the western suburbs of Chicagoland.
Correspond with him via email at info@alexgoldie.com or phone at 630.803.1725. Or check out his blog, "RealTopics," at http://alexgoldie.thewrittenblog.com
http://ezinearticles.com/?3-Whopping-Assumptions-Industry-Experts-Make-about-Baby-Boomer-Home-Buyers&id=690839
1. Boomers want new lifestyles to come along with their new addresses!
2. Boomers are getting older, but still think they’re in their 20’s!
3. Health issues affect older people; so Baby Boomers need Universal Design building principles to remain independent.
Yikes – Those are pretty bad. Let’s take a closer look at what these assumptions mean, and what a more accurate picture might look like.
Quite often we see advertisements for a new retirement community designed not for baby boomers, but for their parents – G.I. Generation or Silent Generation members. Marketing materials from these types of developments typically extol the ability of seniors to take up fresh pursuits, and begin to enjoy a new lifestyle in their planned communities. In addition to providing a “new way of life,” sales materials are often gluttonously weighted with helpful features that seniors will benefit from.
To bolster sales, age restrictions have been lowered on most of these communities – some as low as 50 or even 45+ years for the youngest residents. A question would obviously be why more baby boomers have not been sold on these communities? Is it too much of a stretch of the imagination to suggest that baby boomers do not need “new lives?” Perhaps they’re fairly happy with life now, and want to merely move their life to a new address, not a new reality. When a baby boomer takes a trip through a new construction model, they are far more likely to be reconciling the new residence with their existing lifestyle.
By now, we’re well accustomed to the stereotype that baby boomers are obsessed with youth. This very important aspect of many baby boomers’ personalities has been terribly misconstrued by kind folks responsible for marketing baby boomer oriented products and services, and particularly in real estate. They are advertising with a presumption that, for baby boomers being young means being 21! Overall, baby boomers have played by their own rules, and often see old age or youth to be a conscious choice, a mindset. However, the overall consensus of people I talk to is that few intend to go back into their twenty’s, they just want to retain their youthful spirit and keep their good looks! The problem with most of the marketing efforts is in many of the marketers. If a marketing team is made up of 20 and 30somes, especially if they’ve been inundated with the notion of baby boomers being vain or age defiant, they have a tendency to advertise to THEMSELVES. They are doing what is most natural, which is why we see so many baby-boomer-oriented advertisements with individuals acting peculiarly for their age bracket. Advertisers, and those designing homes and providing services, need to be able to walk a fine line between observing this natural desire for baby boomers to retain and regain youthful vigor, and patronizing it with the vague notion that fresh faced young adults are an IDEAL which all others envy.
As I have noted in past articles, the rate for disabilities of the 65 and older crowd has actually dropped from 26.2 percent in 1982 to 19.7 percent in 1999 (Census Bureau Statistic). The devotion to physical fitness by many in the baby boomer generation will decrease those percentages even further, and we all expect boomers to outlive their predecessors significantly. However, those who decide to plan ahead, taking a proactive course in their home search, are expected to be looking for homes that utilize “Universal Design” in their new home’s floor plan and amenities. “Universal Design” is a home designed to accommodate those with disabilities in a floor plan that is friendly even to those who are not disabled. It emerged after World War Two, with the hundreds of thousands of Veterans returning home effected by the ravages of war. Understandably, connotations of Universal Design are not readily welcomed by baby boomers, as opposed to home buyers of the 1950’s, and much to the chagrin of industry analysts and experts.
While universal design may be helpful to those with physical challenges, those without them, i.e. – “proactive” boomers- are not excited by the prospect of hand-rails in the bathroom, or extra-low countertop heights. The features they may enjoy, however, are those which provide added luxury in addition to ease of access. Things like wider doorways, an ergonomically designed kitchen, wider doorways, more open floor-plans, and a bathroom that is larger and more conveniently laid-out. This concept of universal design, developed over the past 60 years, needs to evolve to suit the healthiest generation in history. Boomers are not being forced into new homes; they just want a blueprint that can easily adapt to their needs as they age.
It is no doubt that the housing industry will need to adapt over the coming years as more and more Baby Boomers reach age 60 and beyond. How that change manifests itself is going to change many of the preconceived notions that the “experts” have been duped with. Hopefully, for the sake of those who are looking to make a move for the sake of their future, those preconceived notions will be shed in favor of reality. Baby boomers are not looking to start over with a new life, metamorphous into 20 or 30somethings, nor move into a home expressly designed for elderly needs. Here’s a novel idea – how about selling baby boomers based on what each individuals’ wants and needs? Maybe that’s over-thinking it.
W. Alex Goldie is a Realtor & Broker Associate with Baird & Warner Residential Sales, Inc. He is a Senior Real Estate Specialist (SRES), a member of Baird & Warner's Vice-President's Club, and an Accredited Buyer Representative (ABR). Based out of Saint Charles, Illinois, he works primarily in the western suburbs of Chicagoland.
Correspond with him via email at info@alexgoldie.com or phone at 630.803.1725. Or check out his blog, "RealTopics," at http://alexgoldie.thewrittenblog.com
http://ezinearticles.com/?3-Whopping-Assumptions-Industry-Experts-Make-about-Baby-Boomer-Home-Buyers&id=690839
Home Buying Reminders
Ok, buying a home is an exciting time. There is typically so much going on so quickly that overlooking minor things is pretty easy. Unfortunately some of those minor things can have major repercussions if they are not noticed quickly and dealt with. Things have a tendency to snowball rapidly when dealing with large amounts of money so it pays to be on the ball and recognize potential pitfalls when they arise.
One old adage that still applies to purchasing homes is "get everything in writing." This can really be said about most purchases and especially about those dealing with let's say, more than a year's salary? With this kind of a purchase you will want to make absolutely sure that every last detail of the sale is in writing so that there are no disagreements about what is and what is not part of the deal. Not having things is writing has likely caused more headaches in real estate than just about any other aspect of the purchase.
If you are thinking that the home appears to be in good repair and that a skipped inspection might be a few dollars saved then think again. The whole principle of inspections are to ensure that the home is safe and livable. Imagine the nightmare if you bought a home, skipped the inspection and 4 months later are looking at a $10,000 bill for corrections to the plumbing or electrical systems. Say you bought the home during the summer months and the first time it rains the roof leaks. Think about what that could mean in terms of structural damage. When buying a home, you need an inspection. Period. Your safety and well being is no place to cut corners.
Finally, be realistic about what you can afford and what you can hope to maintain. Buying a home is a life changing and financially demanding undertaking. It is not something that you can "keep the receipt" for and exchange if it does not fit. When buying a home most people are locking themselves into a 30 year+ commitment that will dictate their financial reality for that period of time. Buying too much house has been the downfall of many home owners. Don't make this mistake yourself. buy a home that suits your needs and your budget.
Ed Kirkland is a realtor specializing in the Destin, Florida real estate market. For years Ed has made it his life's work to bring buyers and sellers together. Contact Ed today for more information or visit the team at http://www.edkirkland.com
http://ezinearticles.com/?Home-Buying-Reminders&id=642841
One old adage that still applies to purchasing homes is "get everything in writing." This can really be said about most purchases and especially about those dealing with let's say, more than a year's salary? With this kind of a purchase you will want to make absolutely sure that every last detail of the sale is in writing so that there are no disagreements about what is and what is not part of the deal. Not having things is writing has likely caused more headaches in real estate than just about any other aspect of the purchase.
If you are thinking that the home appears to be in good repair and that a skipped inspection might be a few dollars saved then think again. The whole principle of inspections are to ensure that the home is safe and livable. Imagine the nightmare if you bought a home, skipped the inspection and 4 months later are looking at a $10,000 bill for corrections to the plumbing or electrical systems. Say you bought the home during the summer months and the first time it rains the roof leaks. Think about what that could mean in terms of structural damage. When buying a home, you need an inspection. Period. Your safety and well being is no place to cut corners.
Finally, be realistic about what you can afford and what you can hope to maintain. Buying a home is a life changing and financially demanding undertaking. It is not something that you can "keep the receipt" for and exchange if it does not fit. When buying a home most people are locking themselves into a 30 year+ commitment that will dictate their financial reality for that period of time. Buying too much house has been the downfall of many home owners. Don't make this mistake yourself. buy a home that suits your needs and your budget.
Ed Kirkland is a realtor specializing in the Destin, Florida real estate market. For years Ed has made it his life's work to bring buyers and sellers together. Contact Ed today for more information or visit the team at http://www.edkirkland.com
http://ezinearticles.com/?Home-Buying-Reminders&id=642841
Your Home Buying Plan - Part 1
How can you start an agressive home buying plan? This is reality and cannot be overlooked. The following information is no fairy tale. If you are serious about buying a home, just understand the situation you are currently in and ask yourself the following questions:
Do homes appreciate in value?
Can I persuade a bank or lending institution to provide a mortgage given my present credit situation?
Will the US Government give us the money to buy a home with our credit the it is?
How serious am I about buing a home?
Studies conducted by HUD and the FHA concluded that most Americans are deprived of home ownership because of credit issues and not due to not having enough money for a down payment. With that in mind, compare these two scenarios:
A. Why would I give an apartment house a couple thousand dollars for the privilage of moving into a building I do not own? I might have to pay a higher rent after one year; I don't have any place to plant my tomatoes;I don't have any place for my buddies to park for the Sunday football games. And what are my chances of getting the security deposit back?
B. Would I be interested in having control of a $200,000 investment where I would only have to put the closing costs down (which is less than the amount required to move into an apartment in most cases)? How about the fact that the US Government will provide me/us an opportunity to resolve our credit isues,and if we prove we're serious we can get a Federal Housing Administration guarantee that will provide for the lender the assurance that the loan will be paid back? It has never been easier to purchase a home than now.
In my next article I'll continue with your home buying plan and how you can take further advantage of the FHA's generosity.
Chuck Lunsford is the owner and developer of EasyFloridaHomeLoans.com. He offers advice on how to get your credit in order and working for you. Visit his website and learn more about how to obtain a florida mortgage home loan.
http://ezinearticles.com/?Your-Home-Buying-Plan---Part-1&id=336448
Do homes appreciate in value?
Can I persuade a bank or lending institution to provide a mortgage given my present credit situation?
Will the US Government give us the money to buy a home with our credit the it is?
How serious am I about buing a home?
Studies conducted by HUD and the FHA concluded that most Americans are deprived of home ownership because of credit issues and not due to not having enough money for a down payment. With that in mind, compare these two scenarios:
A. Why would I give an apartment house a couple thousand dollars for the privilage of moving into a building I do not own? I might have to pay a higher rent after one year; I don't have any place to plant my tomatoes;I don't have any place for my buddies to park for the Sunday football games. And what are my chances of getting the security deposit back?
B. Would I be interested in having control of a $200,000 investment where I would only have to put the closing costs down (which is less than the amount required to move into an apartment in most cases)? How about the fact that the US Government will provide me/us an opportunity to resolve our credit isues,and if we prove we're serious we can get a Federal Housing Administration guarantee that will provide for the lender the assurance that the loan will be paid back? It has never been easier to purchase a home than now.
In my next article I'll continue with your home buying plan and how you can take further advantage of the FHA's generosity.
Chuck Lunsford is the owner and developer of EasyFloridaHomeLoans.com. He offers advice on how to get your credit in order and working for you. Visit his website and learn more about how to obtain a florida mortgage home loan.
http://ezinearticles.com/?Your-Home-Buying-Plan---Part-1&id=336448
Buyers Tips - Intelligent Home Buying
As the U.S. real estate markets shift in favor of the buyer, it is becoming ever more necessary to know your game before purchasing a home. In years past the sellers really controlled the market and we saw rapid jumps in price, bidding wars and some buyers on their heels trying to find a home that was appropriate and affordable. As the market has become more favorable to buyers we are seeing the result of that turn, buyers who could once command almost any asking price are stumped as to why their home is not selling within a week or two. This has naturally caused sellers and many industry insiders to proclaim that the "bottom has fallen out of the real estate market!" This is not really the case as what we are seeing is more of an adjustment to reflect the current state of affairs.
One thing that is a direct result of this migration of the industry is the fact that buyers now have many more options available to them and as such, have to be a bit more intelligent and educated so they can spot the real deals when they come up. This should be a refreshing change to those who have been in the home market for some time and have yet to find that perfect home. Basically this has become the perfect time to buy a home. So how can you be ready to grab that ideal home when it comes up? Well, the first step in any home purchase is to make sure that your financial picture is in focus. find out your credit score, repair it if necessary and get pre-approved for a mortgage. Then you can work with your realtor and the amount of the mortgage approval to find the homes that suits all your needs both domestically and financially.
When you find an area that seems to suit you, try looking through all the information available on the homes there. Whether they are in your price range or not, knowing what they are offering for what price can help you to better gauge prices of homes that you can afford. Remember that homes are usually priced according to comparable homes for sale in the area so if you can evaluate the other homes that are for sale you should be better equipped to recognize the deals when they come.
Reed Brinton is a experienced and professional realtor who is part of a five-generation tradition of service in Kansas City real estate. To view available homes in Kansas City, check out our Kansas City MLS. If you have any questions please give us a call or visit us online at http://www.brintonrealty.com
http://ezinearticles.com/?Buyers-Tips---Intelligent-Home-Buying&id=668458
One thing that is a direct result of this migration of the industry is the fact that buyers now have many more options available to them and as such, have to be a bit more intelligent and educated so they can spot the real deals when they come up. This should be a refreshing change to those who have been in the home market for some time and have yet to find that perfect home. Basically this has become the perfect time to buy a home. So how can you be ready to grab that ideal home when it comes up? Well, the first step in any home purchase is to make sure that your financial picture is in focus. find out your credit score, repair it if necessary and get pre-approved for a mortgage. Then you can work with your realtor and the amount of the mortgage approval to find the homes that suits all your needs both domestically and financially.
When you find an area that seems to suit you, try looking through all the information available on the homes there. Whether they are in your price range or not, knowing what they are offering for what price can help you to better gauge prices of homes that you can afford. Remember that homes are usually priced according to comparable homes for sale in the area so if you can evaluate the other homes that are for sale you should be better equipped to recognize the deals when they come.
Reed Brinton is a experienced and professional realtor who is part of a five-generation tradition of service in Kansas City real estate. To view available homes in Kansas City, check out our Kansas City MLS. If you have any questions please give us a call or visit us online at http://www.brintonrealty.com
http://ezinearticles.com/?Buyers-Tips---Intelligent-Home-Buying&id=668458
Home Buying Tip: 5 Advantages of Buying New Versus Resale
The purpose of this home buying tip is to explain some of the advantages new homes have over existing homes.
Before you begin your home buying process, it helps to identify the type of home you want. In fact, it's a necessary step if you want things to go smooth later on.
Why is this important? By having a clear picture of your ideal home, you'll be able to narrow down your search, which will save you time and energy.
One of the first questions that will come up is new home or resale home? Both have their pros and cons, but new homes have the following distinct advantages.
Advantages of a New Home
1. It's New!
A major advantage of buying a new home is that everything is ... well, new. In other words, the kinds of things that can cost a lot to repair -- like the roof, the major appliances, the heating and cooling -- shouldn't need any repairs for a long while. If they do need repairs, see the next item.
2. Warranties
Most new homes come with substantial warranties on critical areas like the roof, the foundation, etc. If you buy a resale home, you'll most likely have to purchase a warranty yourself (if you want one).
3. Design Input
If you have a home built to your specification, you'll be able to make a lot of choices. Depending on the builder, you'll have some say in the floor plan, the features, the design elements and more. You can truly put your personal touch on the home.
4. Negotiable Features
This benefit will largely depend on the kind of real estate market you're in. But in many cases, you'll be able to negotiate the price, the options and the closing costs. When you buy from a builder, you'll probably deal with a sales associate who represents the building company. The salesperson wants commissions, and the only way they get commissions is by selling homes. Typically, you'll find that a salesperson will "bend" as much as possible (within the limitations imposed on them) in order to make a sale.
Some builders will offer incentive packages as part of negotiations. For example, maybe they won't lower the price, but they'll be willing to upgrade the kitchen features or the flooring.
5. Thorough Inspection
Usually, a neutral third-party will inspect a new home before the buyers close on it. This could include a member of the city / county zoning and construction board, or a licensed inspector hired by you.
The builder will also walk through it with you, at various stages of construction. The point is, there are usually more people reviewing and inspecting a new home than a resale home.
* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author's note, and active hyperlinks.
Learn more:
For more home buying tips, visit HomeBuyingInstitute.com -- the Internet's largest library of home buying articles and advice. Online at http://www.HomeBuyingInstitute.com.
http://ezinearticles.com/?Home-Buying-Tip:-5-Advantages-of-Buying-New-Versus-Resale&id=203971
Before you begin your home buying process, it helps to identify the type of home you want. In fact, it's a necessary step if you want things to go smooth later on.
Why is this important? By having a clear picture of your ideal home, you'll be able to narrow down your search, which will save you time and energy.
One of the first questions that will come up is new home or resale home? Both have their pros and cons, but new homes have the following distinct advantages.
Advantages of a New Home
1. It's New!
A major advantage of buying a new home is that everything is ... well, new. In other words, the kinds of things that can cost a lot to repair -- like the roof, the major appliances, the heating and cooling -- shouldn't need any repairs for a long while. If they do need repairs, see the next item.
2. Warranties
Most new homes come with substantial warranties on critical areas like the roof, the foundation, etc. If you buy a resale home, you'll most likely have to purchase a warranty yourself (if you want one).
3. Design Input
If you have a home built to your specification, you'll be able to make a lot of choices. Depending on the builder, you'll have some say in the floor plan, the features, the design elements and more. You can truly put your personal touch on the home.
4. Negotiable Features
This benefit will largely depend on the kind of real estate market you're in. But in many cases, you'll be able to negotiate the price, the options and the closing costs. When you buy from a builder, you'll probably deal with a sales associate who represents the building company. The salesperson wants commissions, and the only way they get commissions is by selling homes. Typically, you'll find that a salesperson will "bend" as much as possible (within the limitations imposed on them) in order to make a sale.
Some builders will offer incentive packages as part of negotiations. For example, maybe they won't lower the price, but they'll be willing to upgrade the kitchen features or the flooring.
5. Thorough Inspection
Usually, a neutral third-party will inspect a new home before the buyers close on it. This could include a member of the city / county zoning and construction board, or a licensed inspector hired by you.
The builder will also walk through it with you, at various stages of construction. The point is, there are usually more people reviewing and inspecting a new home than a resale home.
* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author's note, and active hyperlinks.
Learn more:
For more home buying tips, visit HomeBuyingInstitute.com -- the Internet's largest library of home buying articles and advice. Online at http://www.HomeBuyingInstitute.com.
http://ezinearticles.com/?Home-Buying-Tip:-5-Advantages-of-Buying-New-Versus-Resale&id=203971
Tuesday, August 21, 2007
Low Interest Rates Spur Record Refinancing
Mortgage rates continue to drop, and it’s prompting homeowners to refinance their current mortgages. It’s believed that the decline in mortgage rates has been prompted by the belief that the chairman of the Federal Reserve is not biting at the bit to raise short-term interest rates this year. Loan officers and brokers are overwhelmed by the massive number of refinance applications that have been flowing in.
With so many people refinancing, one must wonder exactly how much these homeowners are saving and what’s so appealing about refinancing at this point in time. Most homeowners are changing from a thirty-year mortgage to a fifteen-year mortgage, saving them tens of thousands of dollars over the term of their loan. Applicants are surprised when they find out that their payment does not increase drastically, yet their payoff time is cut in half and they’re saving thousands of dollars by taking these steps. Applicants who don’t qualify for a fifteen-year mortgage are still refinancing at a lower interest rate, but are opting to utilize the bi-weekly payment method to pay their loans off early and still save thousands of dollars in interest.
As for how much homeowners are actually saving by refinancing at a lower rate and changing to a fifteen-year plan, it depends on the amount of the mortgage and the exact interest rates involved. If a homeowner has a 30 year mortgage for $150,000 with an 8 percent interest rate, their monthly payments are going to be about $1100 per month and over the life of the loan they will have paid close to $250,000 in interest. If that same homeowner takes that same mortgage amount over a 15 year mortgage period and refinances it at 5.5 percent interest rate, their monthly payment is going to be about $1225, only $125 more per month than the thirty year mortgage, and they are going to pay their mortgage of in half the time while saving about $175,000 in interest. So it’s starting to make sense why so many people are flocking to lenders to refinance their homes, isn’t it? The larger the mortgage amount and the higher the original interest rate, the higher the amount saved.
Rates are expected to stay low in the near future, signifying that we are likely to see the number of homeowners that are refinancing continue to increase. Good news for lending institutions and homeowners alike.
http://www.architect-listings.com/articles/article14.htm
With so many people refinancing, one must wonder exactly how much these homeowners are saving and what’s so appealing about refinancing at this point in time. Most homeowners are changing from a thirty-year mortgage to a fifteen-year mortgage, saving them tens of thousands of dollars over the term of their loan. Applicants are surprised when they find out that their payment does not increase drastically, yet their payoff time is cut in half and they’re saving thousands of dollars by taking these steps. Applicants who don’t qualify for a fifteen-year mortgage are still refinancing at a lower interest rate, but are opting to utilize the bi-weekly payment method to pay their loans off early and still save thousands of dollars in interest.
As for how much homeowners are actually saving by refinancing at a lower rate and changing to a fifteen-year plan, it depends on the amount of the mortgage and the exact interest rates involved. If a homeowner has a 30 year mortgage for $150,000 with an 8 percent interest rate, their monthly payments are going to be about $1100 per month and over the life of the loan they will have paid close to $250,000 in interest. If that same homeowner takes that same mortgage amount over a 15 year mortgage period and refinances it at 5.5 percent interest rate, their monthly payment is going to be about $1225, only $125 more per month than the thirty year mortgage, and they are going to pay their mortgage of in half the time while saving about $175,000 in interest. So it’s starting to make sense why so many people are flocking to lenders to refinance their homes, isn’t it? The larger the mortgage amount and the higher the original interest rate, the higher the amount saved.
Rates are expected to stay low in the near future, signifying that we are likely to see the number of homeowners that are refinancing continue to increase. Good news for lending institutions and homeowners alike.
http://www.architect-listings.com/articles/article14.htm
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