Summary: After a buyer has the home inspection hail damages the home to the tune of $12,000. Months after closing they are trying to get the seller to file an insurance claim. Sam and Ilyce discuss seller disclosure laws.
Q: We recently purchased a home that has severe hail damage although we were unaware of it at the time of the closing. We had the home inspection prior to the closing and everything was fine. Four days after the inspection, a hail storm hit Columbus, Ohio, and at the end of that month we closed on the house.
Shortly after we moved in, signs started appearing on people's lawns for roof and siding repairs due to hail damage. We decided to have a hail inspection and were shocked to learn that our house had over $12,000 dollars in hail damage. We cannot submit a claim to our insurance company because we did not own the house when the storm hit. We contacted the previous owners and asked them to submit a claim. We even offered to pay the deductible, but they refused saying they did not want their insurance rates to go up.
Is there anything we can do? We paid for a house in a certain condition and it did not come in that condition. Are the previous owners responsible or are we? Could the previous owners insurance rates go up or could they be dropped from their insurance company?
A: Your situation is quite unique. In various parts of the Midwest last year, large storms caused severe hail damage to many communities. Most buyers knew that these storms had hit and proceeded to purchase homes only after doing the final inspection of the home.
Did you know that the storm had hit? If you did know of the storm, did you take care to inspect the home for the damage before closing?
The reason your situation is quite unique is that a hail storm causing damage to a roof is not as evident as a fire in the home or a tornado destroying the home. In many states, it is still buyer beware when it comes to buying the home and if the seller did not lie or hide damage to the home, the seller may be off the hook for damage caused to the home.
As for the hail inspection, you should contact at least two other companies to determine if your roof has hail damage. You should make sure that you do in fact have this damage and someone is not trying to take advantage of your situation.
If there is damage, review the contract for the purchase and sale of your home. The contract may provide for certain representations and warranties regarding the condition of the home. If these representations or warranties were breached, you may have the right to pursue an action against the seller.
Moreover, some states have passed seller disclosure laws. While these disclosure laws require the seller to tell you of thing that they know are wrong with the house, many do not require the seller to give you additional disclosures to you after the initial delivery of the disclosure. However, if the state you live in has a seller disclosure law that requires the seller to disclose to you this type of damage, and the seller failed to tell you, you may be able to sue the seller for the damage.
While the seller may not want to make a claim with his insurance company, if you have a right under the contract or a seller disclosure law to sue the seller for the damage, the seller might be inclined to make the claim with his insurance company and resolve your claim. You may not want to sue the seller, but you may have to sue him to get him to pay and force him to file his own claim with his insurance company.
Keep in mind that in some states violations of seller disclosure laws permit a court to grant the winning party attorneys fees in connection with the case.
For further information on your unique situation, please consult with a real estate attorney or an attorney that specializes in real estate litigation.
Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website www.thinkglink.com
http://www.lawproblems.com/Hail_Damage.htm
Friday, August 24, 2007
Sensible Home Buying in Central Texas
The great quality of life in Central Texas is attracting an ever-increasing number of new residents, resulting in a boom in home building. This growing market is attracting new builders as well, so competition for customers is fierce. That means 1996 should be a banner year for you to get what you want in a new home.
But before you buy, the City of Austin's Green Builder wants you to consider how to get the best possible home for your money--one that's better for your f amily, your community and your planet.
Everyone wants a home that's comfortable, healthy and safe, and that's easy to maintain, as well as one with low monthly bills. Many of the best ways to achieve these benefits will not increase the purchase price of a home (or they pay back quickly), but they do require the home buyer to know what to look for and demand.
Buy a home that's energy-efficient. Making a house payment is tough enough without having to pay a sky-high electric and gas bill every month. One of the most important things that makes a home energy-efficient, without increasing initial cost, is having the right design for the lot orientation. The design should take advantage of the sun's path, prevailing breezes and tree shading to provide warmth in winter, avoid overheating in summer and enable good cross-ventilation.
Some examples of other features that will reduce energy use in your new home are: continuous ridge and soffit vents combined with a radiant barrier to cool down the attic; well-installed insulation; high-efficiency heating, cooling and water-heating equipment combined with a properly designed, air-tight duct system; a good lighting design and efficient light fixtures appropriate for their purpose; and light colored finishes inside and outside the home.
Buy a home that is water-efficient. By national standards, new plumbing fixtures are very water-conserving. However, about half of summer water use goes to lawn and garden care, so it's important to pick the best shrubs and turf for conditions on your lot. St. Augustine grass is fine in the shade, for example, but it requires way too much water to stay alive in sunny areas to be practical in Central Texas. Buffalograss or common Bermuda is a far better choice in high sun areas.
Buy a home made of durable, low-maintenance materials. Having to replace rotten siding or do frequent repainting, for example, can add a lot to the cost of owning a home. Local brick and stone are always a good low-maintenance exterior. But for a more modest budget or a different look, consider fiber-cement siding. It won't deteriorate even if you never paint it. Inside, a good example of a durable, low-maintenance feature is a tile floor. It will usually add to the cost of a house, and may never have to be replaced.
Buy a home that's made of healthier materials. Be aware of the chemicals in common building materials, especially in interior finishes. Products such as carpet, paint, glue and cabinet materials emit fumes for many months, even years, after installation. They affect the quality of the air in your home, sometimes causing stuffy noses and headaches. Major manufacturers of building products are rapidly changing the formulations of their materials to address these problems, but it's often up to the consumer to demand the healthier choice. If your builder is unfamiliar with these aspects of building, call the Green Builder Program staff for help.
Buy a home in the right location. Location, location, location! This is a major factor in determining which house you buy, but be sure to consider location in a realistic way. You may get a great deal on a house far from an urban center, but are you going to spend a fortune on gas and car maintenance getting to work, shopping, schools and entertainment? Selecting a home convenient to amenities and to your workplace will save time as well as money and cut down on air pollution from auto exhaust.
Make sure your home choice contributes to the quality of life in Central Texas. We have a legacy of protecting our natural environment...which is just good business, since that's one of our biggest drawing cards for new companies considering relocation. Ask your builder to help preserve this legacy.
If you have questions about building or buying an energy-efficient and environmentally-sound home in Austin, call or email the City of Austin Sustainable Sources has a list of builders, architects, designers and suppliers who are members of the Green Builder Program.
You can also find more information including the Sustainable Building Sourcebook compiled by the City of Austin's Green Builder Program at the Sustainable Sources website.
http://www.greenbuilder.com/general/articles/greenhome.html
But before you buy, the City of Austin's Green Builder wants you to consider how to get the best possible home for your money--one that's better for your f amily, your community and your planet.
Everyone wants a home that's comfortable, healthy and safe, and that's easy to maintain, as well as one with low monthly bills. Many of the best ways to achieve these benefits will not increase the purchase price of a home (or they pay back quickly), but they do require the home buyer to know what to look for and demand.
Buy a home that's energy-efficient. Making a house payment is tough enough without having to pay a sky-high electric and gas bill every month. One of the most important things that makes a home energy-efficient, without increasing initial cost, is having the right design for the lot orientation. The design should take advantage of the sun's path, prevailing breezes and tree shading to provide warmth in winter, avoid overheating in summer and enable good cross-ventilation.
Some examples of other features that will reduce energy use in your new home are: continuous ridge and soffit vents combined with a radiant barrier to cool down the attic; well-installed insulation; high-efficiency heating, cooling and water-heating equipment combined with a properly designed, air-tight duct system; a good lighting design and efficient light fixtures appropriate for their purpose; and light colored finishes inside and outside the home.
Buy a home that is water-efficient. By national standards, new plumbing fixtures are very water-conserving. However, about half of summer water use goes to lawn and garden care, so it's important to pick the best shrubs and turf for conditions on your lot. St. Augustine grass is fine in the shade, for example, but it requires way too much water to stay alive in sunny areas to be practical in Central Texas. Buffalograss or common Bermuda is a far better choice in high sun areas.
Buy a home made of durable, low-maintenance materials. Having to replace rotten siding or do frequent repainting, for example, can add a lot to the cost of owning a home. Local brick and stone are always a good low-maintenance exterior. But for a more modest budget or a different look, consider fiber-cement siding. It won't deteriorate even if you never paint it. Inside, a good example of a durable, low-maintenance feature is a tile floor. It will usually add to the cost of a house, and may never have to be replaced.
Buy a home that's made of healthier materials. Be aware of the chemicals in common building materials, especially in interior finishes. Products such as carpet, paint, glue and cabinet materials emit fumes for many months, even years, after installation. They affect the quality of the air in your home, sometimes causing stuffy noses and headaches. Major manufacturers of building products are rapidly changing the formulations of their materials to address these problems, but it's often up to the consumer to demand the healthier choice. If your builder is unfamiliar with these aspects of building, call the Green Builder Program staff for help.
Buy a home in the right location. Location, location, location! This is a major factor in determining which house you buy, but be sure to consider location in a realistic way. You may get a great deal on a house far from an urban center, but are you going to spend a fortune on gas and car maintenance getting to work, shopping, schools and entertainment? Selecting a home convenient to amenities and to your workplace will save time as well as money and cut down on air pollution from auto exhaust.
Make sure your home choice contributes to the quality of life in Central Texas. We have a legacy of protecting our natural environment...which is just good business, since that's one of our biggest drawing cards for new companies considering relocation. Ask your builder to help preserve this legacy.
If you have questions about building or buying an energy-efficient and environmentally-sound home in Austin, call or email the City of Austin Sustainable Sources has a list of builders, architects, designers and suppliers who are members of the Green Builder Program.
You can also find more information including the Sustainable Building Sourcebook compiled by the City of Austin's Green Builder Program at the Sustainable Sources website.
http://www.greenbuilder.com/general/articles/greenhome.html
Buying a Home During the Storm
Lately, it seems as though every few days brings another mortgage-related market blowup. The latest one -- as I write this, anyway -- concerns Countrywide Financial (NYSE: CFC), whose shares were down hard Thursday morning on news that the company drew down its entire credit line -- and after a Merrill Lynch analyst's report suggested that the company could be headed for bankruptcy.
Countrywide's troubles are the latest in a string of crises for mortgage lenders, and for institutions such as Bear Stearns (NYSE: BSC) and Goldman Sachs (NYSE: GS) that have taken huge losses after buying the lenders' mortgage-backed securities. The problem is fairly straightforward. Many lenders have built their business models on making loans, packaging those loans and turning them into securities, selling those securities to institutional investors like hedge funds and mutual funds, taking the money from the sales and making new loans, and repeating the process.
Now, after stagnating housing prices have led to increased rates of mortgage defaults (especially, but not entirely, among subprime loans) and huge losses for investors, the market for those securities has dried up. This situation has forced lenders to scramble for liquidity -- money to continue operating -- and that scramble has led to some well-publicized bankruptcies.
So what does this all mean for those of us who are looking to buy a house in the near future?
I'm glad you asked.
If you're looking to buy
Let's make something clear up front: Many lenders are definitely still lending. Mortgages are still widely available. Houses are still being bought and sold. If you have decent credit and proof of a steady income, aren't asking for anything wildly beyond your means, and have a 5% down payment saved up, you'll probably be fine.
I say "probably" not because you'll have trouble getting a loan, but because those bankruptcies have left a few buyers in the lurch. In some cases, people who thought they had an approved loan suddenly found out a few days -- or hours -- before their closing that they wouldn't be getting the loan after all. For loans through lenders such as Accredited Home Lenders (Nasdaq: LEND) and Impac Mortgage (NYSE: IMH), which have been feeling the squeeze in the subprime crisis, it's always possible that by the time you close, something will have happened to jeopardize your loan.
But if this happens to you, don't panic: Generally, you'll be able to work with your loan officer to get the loan transferred to another institution, with only a small delay and a bit of added hassle.
When things aren't that simple
If you don't have great credit, proof of a steady income, or a down payment, things get a little more complicated. Generally speaking, standards are tightening all across the board, especially for loans that fall outside the great-credit-30-year-fixed-conforming envelope, and the days where you could get a mortgage with little more than a phone call are gone.
While you can still get a no-down-payment loan, expect to be asked to show hard proof of employment income and of substantial savings or other liquid assets, as well as a strong credit history. Freelancers (like yours truly) and others who don't have W-2s to show will have a tougher time, as will people with a few dings on their credit report.
Credit matters
And, of course, if your credit is checkered -- if your FICO score is below 620 or so -- your options have become much more limited for the moment. But you do still have options. There are still subprime mortgages available, but not as many, and rates have jumped somewhat.
Essentially, what's going on is that the mortgage industry -- along with Wall Street -- is rethinking the appropriate pricing for taking on the risk of a borrower with a less-than-prime credit history. While it's a safe bet that the industry will come to a new consensus before too long, and the range of products offered to subprime borrowers will expand, lenders are being very conservative right now, for obvious reasons.
The best advice I can give in the current mortgage market is pretty simple: Whether you're seeking a basic conforming 30-year fixed mortgage, a subprime loan, or a non-standard loan like a "jumbo" mortgage or a no-down-payment arrangement, research your options carefully and talk to lenders before you go house-shopping. There are still lots of mortgages available, but the ground is constantly shifting, and it's best to have your expectations firmly grounded before you go and search out the home of your dreams.
For more on how to get the best loan you can -- regardless of your financial circumstances -- take a look at our Home Center.
Fool contributor John Rosevear does not own any of the stocks mentioned above. The Motley Fool has a disclosure policy.
http://www.fool.com/personal-finance/home/2007/08/16/buying-a-home-during-the-storm.aspx
Countrywide's troubles are the latest in a string of crises for mortgage lenders, and for institutions such as Bear Stearns (NYSE: BSC) and Goldman Sachs (NYSE: GS) that have taken huge losses after buying the lenders' mortgage-backed securities. The problem is fairly straightforward. Many lenders have built their business models on making loans, packaging those loans and turning them into securities, selling those securities to institutional investors like hedge funds and mutual funds, taking the money from the sales and making new loans, and repeating the process.
Now, after stagnating housing prices have led to increased rates of mortgage defaults (especially, but not entirely, among subprime loans) and huge losses for investors, the market for those securities has dried up. This situation has forced lenders to scramble for liquidity -- money to continue operating -- and that scramble has led to some well-publicized bankruptcies.
So what does this all mean for those of us who are looking to buy a house in the near future?
I'm glad you asked.
If you're looking to buy
Let's make something clear up front: Many lenders are definitely still lending. Mortgages are still widely available. Houses are still being bought and sold. If you have decent credit and proof of a steady income, aren't asking for anything wildly beyond your means, and have a 5% down payment saved up, you'll probably be fine.
I say "probably" not because you'll have trouble getting a loan, but because those bankruptcies have left a few buyers in the lurch. In some cases, people who thought they had an approved loan suddenly found out a few days -- or hours -- before their closing that they wouldn't be getting the loan after all. For loans through lenders such as Accredited Home Lenders (Nasdaq: LEND) and Impac Mortgage (NYSE: IMH), which have been feeling the squeeze in the subprime crisis, it's always possible that by the time you close, something will have happened to jeopardize your loan.
But if this happens to you, don't panic: Generally, you'll be able to work with your loan officer to get the loan transferred to another institution, with only a small delay and a bit of added hassle.
When things aren't that simple
If you don't have great credit, proof of a steady income, or a down payment, things get a little more complicated. Generally speaking, standards are tightening all across the board, especially for loans that fall outside the great-credit-30-year-fixed-conforming envelope, and the days where you could get a mortgage with little more than a phone call are gone.
While you can still get a no-down-payment loan, expect to be asked to show hard proof of employment income and of substantial savings or other liquid assets, as well as a strong credit history. Freelancers (like yours truly) and others who don't have W-2s to show will have a tougher time, as will people with a few dings on their credit report.
Credit matters
And, of course, if your credit is checkered -- if your FICO score is below 620 or so -- your options have become much more limited for the moment. But you do still have options. There are still subprime mortgages available, but not as many, and rates have jumped somewhat.
Essentially, what's going on is that the mortgage industry -- along with Wall Street -- is rethinking the appropriate pricing for taking on the risk of a borrower with a less-than-prime credit history. While it's a safe bet that the industry will come to a new consensus before too long, and the range of products offered to subprime borrowers will expand, lenders are being very conservative right now, for obvious reasons.
The best advice I can give in the current mortgage market is pretty simple: Whether you're seeking a basic conforming 30-year fixed mortgage, a subprime loan, or a non-standard loan like a "jumbo" mortgage or a no-down-payment arrangement, research your options carefully and talk to lenders before you go house-shopping. There are still lots of mortgages available, but the ground is constantly shifting, and it's best to have your expectations firmly grounded before you go and search out the home of your dreams.
For more on how to get the best loan you can -- regardless of your financial circumstances -- take a look at our Home Center.
Fool contributor John Rosevear does not own any of the stocks mentioned above. The Motley Fool has a disclosure policy.
http://www.fool.com/personal-finance/home/2007/08/16/buying-a-home-during-the-storm.aspx
Thursday, August 23, 2007
Location – The Residential Neighborhood
Within your residential neighborhood, you want the nearby properties to be fairly homogeneous – alike in style, size, and structure. This does not mean they should all be exactly the same, either. Owners will put their own unique stamp on their homes.
Your future home should be located as close to the center of this neighborhood as possible. Avoid the edges. In short, you do not want your property to back or side to a busy street. If you are buying a single family home, you do not want your property to border a condominium, apartment complex, business, school, or even a park.
You also want to make sure the street you buy on is not used as a shortcut between two busier streets. Nor do you want to buy a house on a corner lot, as those tend to attract more street traffic and are not as safe for children. Buy in the middle of the block or on a cul de sac.
Like we said before, you want your home to be neatly tucked away in the center of your residential neighborhood.
http://www.realestateabc.com/homebuying/location3.htm
Your future home should be located as close to the center of this neighborhood as possible. Avoid the edges. In short, you do not want your property to back or side to a busy street. If you are buying a single family home, you do not want your property to border a condominium, apartment complex, business, school, or even a park.
You also want to make sure the street you buy on is not used as a shortcut between two busier streets. Nor do you want to buy a house on a corner lot, as those tend to attract more street traffic and are not as safe for children. Buy in the middle of the block or on a cul de sac.
Like we said before, you want your home to be neatly tucked away in the center of your residential neighborhood.
http://www.realestateabc.com/homebuying/location3.htm
Location – The Local Neighborhood
The term "local neighborhood" refers to an area wide enough to cover your residential area plus nearby stores such as the "neighborhood grocery store."
You want to be sure all essential shops and services are located nearby. This would include grocery stores, gas stations, dry cleaners, and convenience stores. There should also be fairly convenient access to local highways, major traffic routes, and mass transit.
One thing you should look out for, though. If your local shopping center is in decline, it could be an indicator that the local neighborhood is in decline, too. Check to see if a lot of storefronts in your local center are vacant or available for lease. If they are, you might want to consider moving your purchase a few blocks.
http://www.realestateabc.com/homebuying/location2.htm
Buying a Home With Resale Value
Location – Local Community, Town or City
Before you can actually pick out a house, you need to choose what cities or communities you would like to live in. There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value.
Economic Stability
When choosing a community for your purchase, it makes the most sense to buy in a city with a viable and stable economy. Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation that your community will still be a desirable place to live.
In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts. These not only provide jobs to the local residents, but also add an income source that the city can use to upgrade and maintain roads and city services.
In fact, you should take a drive and see how well the community is maintained. You have probably heard of "pride of ownership" when referring to an individual home or an automobile. Look to live in a city that demonstrates community pride, as well.
Local Government Services
In addition to community pride, check on the services provided by local government. One example would be the local library system. Are there several library branches? Do they stock a good selection of books, including recent best sellers?
You should also look into local crime statistics and see how the city compares to the national average and other local communities. Is the police force effective and responsive to community needs? Are fire stations located strategically around the community so that they also can respond quickly in an emergency?
Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens?
Your local agent, if they are a good one, will have amassed a wealth of information on these subjects of inquiry. It is also another reason to always use a local agent.
Schools
Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will have concerns of this nature.
You will want to know if the local schools are overcrowded. Take a drive around and see if there are auxiliary trailers outside the local schools. Call up the local school district and see if elementary aged children always attend the school closest to their home. If not, ask why. Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes?
You should also check to see how local students score on the standardized tests. You can ask your agent about these things, but you should also get the local phone numbers so you can ask yourself.
There are also school reports available for free on the Internet.
Property Taxes
Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more modern schools, well-maintained roads, and bountiful community services.
In addition, you will often find that the "cost per square foot" of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Since the mortgage payment may be lower, but the property taxes a bit higher, the monthly housing costs may be approximately the same in each city.
However, many agents and prospective buyers have a bias against a community with higher property taxes. If resale value is important to you, make property taxes a consideration when choosing the location of your new home.
http://www.realestateabc.com/homebuying/location1.htm
Before you can actually pick out a house, you need to choose what cities or communities you would like to live in. There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value.
Economic Stability
When choosing a community for your purchase, it makes the most sense to buy in a city with a viable and stable economy. Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation that your community will still be a desirable place to live.
In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts. These not only provide jobs to the local residents, but also add an income source that the city can use to upgrade and maintain roads and city services.
In fact, you should take a drive and see how well the community is maintained. You have probably heard of "pride of ownership" when referring to an individual home or an automobile. Look to live in a city that demonstrates community pride, as well.
Local Government Services
In addition to community pride, check on the services provided by local government. One example would be the local library system. Are there several library branches? Do they stock a good selection of books, including recent best sellers?
You should also look into local crime statistics and see how the city compares to the national average and other local communities. Is the police force effective and responsive to community needs? Are fire stations located strategically around the community so that they also can respond quickly in an emergency?
Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens?
Your local agent, if they are a good one, will have amassed a wealth of information on these subjects of inquiry. It is also another reason to always use a local agent.
Schools
Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will have concerns of this nature.
You will want to know if the local schools are overcrowded. Take a drive around and see if there are auxiliary trailers outside the local schools. Call up the local school district and see if elementary aged children always attend the school closest to their home. If not, ask why. Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes?
You should also check to see how local students score on the standardized tests. You can ask your agent about these things, but you should also get the local phone numbers so you can ask yourself.
There are also school reports available for free on the Internet.
Property Taxes
Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more modern schools, well-maintained roads, and bountiful community services.
In addition, you will often find that the "cost per square foot" of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Since the mortgage payment may be lower, but the property taxes a bit higher, the monthly housing costs may be approximately the same in each city.
However, many agents and prospective buyers have a bias against a community with higher property taxes. If resale value is important to you, make property taxes a consideration when choosing the location of your new home.
http://www.realestateabc.com/homebuying/location1.htm
Buying a Home With Resale Value - the House
Buying a Home With a View
Homes with a pleasant view of the horizon often sell at a premium above similar homes without the view. However, if a view is important to you, buy it mostly for your own pleasure and not as an investment. Though you may place a considerable dollar value on the view, future buyers may not be so like-minded. It may take you longer to find a buyer when it comes time to resell the house. Or you may end up dropping your price to more nearly match other sales prices in the neighborhood.
In short, if you are buying a house with a view, try to pay as little extra as possible. Otherwise, you might not get your money back.
Lot and Landscaping
Even though most real estate value is usually concentrated in the building, the lot is important, too. Obviously, it should be as level as possible. Assuming the property is in a typical neighborhood, the lot should be rectangular – no odd shaped lots or oddly situated lots.
Yard sizes are smaller in modern homes than in older homes, but there should still be a decently sized front and back yard. Do not buy a house where the entire back yard is taken up by a swimming pool, for example.
Do not purchase an over-landscaped property, either. You would normally pay a premium for that, which you may not be able to recover when you sell. You will get your best value if the house is moderately landscaped or under-landscaped for the area. You can always improve the landscaping during your ownership by improving the grass and adding bushes and trees. Just do not spend too much.
House Size
In each residential neighborhood, houses will vary in size and rooms, but they should not be too different. If resale value is an important consideration, you should not buy the largest model in the neighborhood. When determining market value, the homes nearest to yours are most important. If most of the nearby houses are smaller than your house, they can act as a drag on appreciation.
On the other hand, if you buy a small or medium house for the neighborhood, the larger homes can help pull up your value. This is one of those times where determining your "wants" versus your "needs" can be extremely important. Buying what you need in a more prestigious neighborhood may provide more financial reward than getting what you want in a less desirable neighborhood.
Bedrooms and Bathrooms
Three and four bedroom houses are the most popular among homebuyers, so if you can stick in that range you will have more potential buyers when it comes time to resell. Five is okay, too, as long as you do not have to pay too much extra for the additional bedroom.
There should always be at least two bathrooms in a house, preferably at least two and a half. One bathroom with a place to wash up for day-to-day visitors, one for the master bedroom, and at least one to be shared by the other bedrooms.
Closets, Garages, and Laundry
Walk-in closets are extremely desirable for the master bedroom. For the rest of the house, just be sure there is plenty of closet space. Don’t forget space for linens and towels.
Garages add to the resale value and you should always make sure to get at least a two-car garage. Lately, three-car garages have become desirable in some areas of the country.
The laundry facilities should be located somewhere convenient on the main floor of the house, but not in a place it will create an eyesore. Think about whether you want to walk up and down stairs when carrying loads of laundry.
The Kitchen
Family activity centers around the kitchen, so this is the most important room of the house. Larger kitchens are better, and they should be provided with modern appliances. Obviously, the dining room and breakfast nook should be located adjacent to the kitchen. In newer houses, the family room should also be extremely close to the kitchen.
There should be easy access to the back yard, as there will be occasions for barbecues and outdoor entertaining. In addition, it should be a short trek between the garage to the kitchen so hauling groceries in from the car does not become a horrendous chore.
Fireplaces
The only room where you absolutely have to have a fireplace is the family room. A fireplace in the living room may be nice, but you pay extra for it and will probably rarely use it. At best, it serves as a focal point of the living room, but does not add much in real value.
Swimming Pools
Swimming pools do not provide as much added value as they once did. Safety issues about families with younger children have become more publicized than in the past, so families with small children tend to avoid homes with pools. As a result, having a pool may actually reduce the number of potential homebuyers when you try to resell the home.
Buy a home with a pool for your own enjoyment, not as an investment.
Since we are on the subject of swimming pools, here is a word of advice: If you want a pool, buy a home that already has a pool. Paying a contractor to install one for you is like throwing money away. You will never get a dollar-for-dollar return on your investment.
http://www.realestateabc.com/homebuying/house.htm
Homes with a pleasant view of the horizon often sell at a premium above similar homes without the view. However, if a view is important to you, buy it mostly for your own pleasure and not as an investment. Though you may place a considerable dollar value on the view, future buyers may not be so like-minded. It may take you longer to find a buyer when it comes time to resell the house. Or you may end up dropping your price to more nearly match other sales prices in the neighborhood.
In short, if you are buying a house with a view, try to pay as little extra as possible. Otherwise, you might not get your money back.
Lot and Landscaping
Even though most real estate value is usually concentrated in the building, the lot is important, too. Obviously, it should be as level as possible. Assuming the property is in a typical neighborhood, the lot should be rectangular – no odd shaped lots or oddly situated lots.
Yard sizes are smaller in modern homes than in older homes, but there should still be a decently sized front and back yard. Do not buy a house where the entire back yard is taken up by a swimming pool, for example.
Do not purchase an over-landscaped property, either. You would normally pay a premium for that, which you may not be able to recover when you sell. You will get your best value if the house is moderately landscaped or under-landscaped for the area. You can always improve the landscaping during your ownership by improving the grass and adding bushes and trees. Just do not spend too much.
House Size
In each residential neighborhood, houses will vary in size and rooms, but they should not be too different. If resale value is an important consideration, you should not buy the largest model in the neighborhood. When determining market value, the homes nearest to yours are most important. If most of the nearby houses are smaller than your house, they can act as a drag on appreciation.
On the other hand, if you buy a small or medium house for the neighborhood, the larger homes can help pull up your value. This is one of those times where determining your "wants" versus your "needs" can be extremely important. Buying what you need in a more prestigious neighborhood may provide more financial reward than getting what you want in a less desirable neighborhood.
Bedrooms and Bathrooms
Three and four bedroom houses are the most popular among homebuyers, so if you can stick in that range you will have more potential buyers when it comes time to resell. Five is okay, too, as long as you do not have to pay too much extra for the additional bedroom.
There should always be at least two bathrooms in a house, preferably at least two and a half. One bathroom with a place to wash up for day-to-day visitors, one for the master bedroom, and at least one to be shared by the other bedrooms.
Closets, Garages, and Laundry
Walk-in closets are extremely desirable for the master bedroom. For the rest of the house, just be sure there is plenty of closet space. Don’t forget space for linens and towels.
Garages add to the resale value and you should always make sure to get at least a two-car garage. Lately, three-car garages have become desirable in some areas of the country.
The laundry facilities should be located somewhere convenient on the main floor of the house, but not in a place it will create an eyesore. Think about whether you want to walk up and down stairs when carrying loads of laundry.
The Kitchen
Family activity centers around the kitchen, so this is the most important room of the house. Larger kitchens are better, and they should be provided with modern appliances. Obviously, the dining room and breakfast nook should be located adjacent to the kitchen. In newer houses, the family room should also be extremely close to the kitchen.
There should be easy access to the back yard, as there will be occasions for barbecues and outdoor entertaining. In addition, it should be a short trek between the garage to the kitchen so hauling groceries in from the car does not become a horrendous chore.
Fireplaces
The only room where you absolutely have to have a fireplace is the family room. A fireplace in the living room may be nice, but you pay extra for it and will probably rarely use it. At best, it serves as a focal point of the living room, but does not add much in real value.
Swimming Pools
Swimming pools do not provide as much added value as they once did. Safety issues about families with younger children have become more publicized than in the past, so families with small children tend to avoid homes with pools. As a result, having a pool may actually reduce the number of potential homebuyers when you try to resell the home.
Buy a home with a pool for your own enjoyment, not as an investment.
Since we are on the subject of swimming pools, here is a word of advice: If you want a pool, buy a home that already has a pool. Paying a contractor to install one for you is like throwing money away. You will never get a dollar-for-dollar return on your investment.
http://www.realestateabc.com/homebuying/house.htm
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