Each Agreement of Purchase and Sale presents special challenges. The financing condition that accompanies the agreement is of special importance. This article discusses the elements of the financing clause.
Contract Conditions: Financing
When writing up an Agreement of Purchase and Sale, you need to be aware of the elements of the conditions used in the contract. The financing clause is frequently placed at the top of the page for good reason. Without adequate financing most people do not have the funds available to purchase a home.
This is an example of the wording of a financing condition; This Offer is conditional upon the Buyer arranging satisfactory financing, at the Buyer's expense, within 5 Banking days of acceptance of this Offer, failing which this agreement shall become null and void and the Buyer's deposit shall be returned in full, without interest or deduction. Buyer reserves the right to waive this condition.
It is important to notice that it's common for financing to be paid for by the buyer. Remember that financing is for the Buyer's benefit. It is the ability to acquire the funds necessary to purchase a home that the Buyer requires in order to make their dream of home ownership come true. Depending on your financial standing you may have to pay fees to your lender for lenders fees, appraisal services, and credit reports.
Second it is imperative that you leave yourself adequate time to secure financing. Prior to even writing an offer you should have been to your lender and gotten a pre-approval. This will give you an idea what you can afford when looking at property. It is also important for the seller to not have the home tied up with an offer any longer than necessary. Usually most people can secure financing in 3 or 4 days.
The final portion of the condition allows the Buyer to get his deposit on the home returned if they fail to secure financing. This is the most important part of the wording of the condition, were the buyer is concerned. It protects the Buyer from failure to secure financing and allows the Buyer to walk away from a Real Estate transaction without penalty to themselves.
Whether you're a Buyer or a Seller it is important to understand the financing condition on the Agreement you are about to sign. Is it adequate or does it tie the home up to long? Can the Buyer escape the contract without penalty? These are just two questions that the Buyer and Seller must satisfy prior to agreeing to accept a condition.
http://buyingsellingahome.suite101.com/article.cfm/contractconditionsfinancing
Tuesday, September 11, 2007
Mold
With every real estate transaction there are perils that must be considered. Mold is becoming a growing concern. Learn about potential problem areas, health concerns, and problems associated with the sale of a home with a mold issue.
Perils in Real Estate: Mold
A growing concern for potential homebuyers is the presence of mold in the home they are pondering the purchase of. Arming yourself with information is the only way to limit the pitfalls associated with particular molds.
Mold is a fungus that is associated with decaying vegetable or animal matter. It often appears as a black film, found in dark moist regions of the home. Areas that should be checked for mold are around sinks, tubs, basements, bathrooms and any other area where there has been moisture.
Fortunately most household molds are mild, but research has linked some molds to chronic sinus infections, asthma and other ailments. Stachybotrys atra is particularly dangerous; it has been associated with breathing difficulties, dizziness, memory loss and bleeding in the lungs. This mold produces micro-toxins and prolonged exposure to these toxins proves harmful.
Unfortunately modern construction techniques may be a significant contributing factor. Homes are being made increasingly airtight. Furnaces and air conditioning units compound the problem by re-circulating contaminated air. This means that moisture is trapped within the shell of the home re-circulating and providing an ample breading ground for mold spores.
The simplest way to deal with a suspicion of mold contamination is, if you see or smell mold then there is likely a mold problem. Mold growth is likely to recur unless the source of the moisture that has allowed the mold to grow is eliminated and the area is cleaned.
Cleaning mold contamination can be hazardous to your health, so if you are considering a property that you believe has an issue with mold contamination, then you should realize that you may be exposed to mold, strong detergents and disinfectants. During the cleaning process mold levels can be significantly higher than base levels, because you are disturbing the mold spores.
I would recommend that if there were a suspected mold problem in the home that you continue your home search. However if you were determined to make an offer I would first attempt to encourage the current homeowner to rectify the issue. If this is not possible then look at getting the mold professionally removed. If you have experience or expertise in mold removal attempt to remove it yourself, making sure that you research and use all proper safety precautions.
http://buyingsellingahome.suite101.com/article.cfm/perilsinrealestate
Perils in Real Estate: Mold
A growing concern for potential homebuyers is the presence of mold in the home they are pondering the purchase of. Arming yourself with information is the only way to limit the pitfalls associated with particular molds.
Mold is a fungus that is associated with decaying vegetable or animal matter. It often appears as a black film, found in dark moist regions of the home. Areas that should be checked for mold are around sinks, tubs, basements, bathrooms and any other area where there has been moisture.
Fortunately most household molds are mild, but research has linked some molds to chronic sinus infections, asthma and other ailments. Stachybotrys atra is particularly dangerous; it has been associated with breathing difficulties, dizziness, memory loss and bleeding in the lungs. This mold produces micro-toxins and prolonged exposure to these toxins proves harmful.
Unfortunately modern construction techniques may be a significant contributing factor. Homes are being made increasingly airtight. Furnaces and air conditioning units compound the problem by re-circulating contaminated air. This means that moisture is trapped within the shell of the home re-circulating and providing an ample breading ground for mold spores.
The simplest way to deal with a suspicion of mold contamination is, if you see or smell mold then there is likely a mold problem. Mold growth is likely to recur unless the source of the moisture that has allowed the mold to grow is eliminated and the area is cleaned.
Cleaning mold contamination can be hazardous to your health, so if you are considering a property that you believe has an issue with mold contamination, then you should realize that you may be exposed to mold, strong detergents and disinfectants. During the cleaning process mold levels can be significantly higher than base levels, because you are disturbing the mold spores.
I would recommend that if there were a suspected mold problem in the home that you continue your home search. However if you were determined to make an offer I would first attempt to encourage the current homeowner to rectify the issue. If this is not possible then look at getting the mold professionally removed. If you have experience or expertise in mold removal attempt to remove it yourself, making sure that you research and use all proper safety precautions.
http://buyingsellingahome.suite101.com/article.cfm/perilsinrealestate
Sales Contracts
You've listed your home and now you have an initial offer. How do you interpret it? Is price the only factor that needs to be considered and should it be the first priority? This article aims to answer some of the questions surrounding the Agreement of Purchase and Sale with a focus on the Ontario market place.
Understanding the Agreement of Purchase and Sale
The ability to interpret an offer and respond to it is imperative to the sale process. In some instances you may have a trained professional to assist in interpreting an offer and assisting you with any counter offers. This discussion focuses on common practices in the Ontario market place however the tips will assist in the interpretation of any offer regardless of geographic location. When you are considering that initial offer to purchase your property I would recommend that you get independent professional advice.
For an agreement to be legally binding it is important to verify that the full legal names of all parties are correct, as well as the legal description, address and lot size. If all this information is accurate and does not need to be altered then you may actually interpret the offer. If this information is in anyway inaccurate then it needs to be corrected and initialed by both the buyer and the seller.
Next I usually recommend looking at the schedule at the back of the offer prior to examining the price and deposit. The conditions in a schedule override any preprinted material in the Agreement and these usually itemize any potential problem areas that may cause the offer to be terminated by the buyer. The conditions in the schedule will give you insight into how serious your potential Buyer is and how you will proceed with negotiations.
There are several conditions that are commonly used in an Agreement of Purchase and Sale and they have several common elements that need to be considered. For starters there is the duration of the clause. The longer the conditional period is the longer it prevents you from accepting other offers. The condition also allows the Buyer a way to escape from an Agreement of Purchase and Sale without penalty to themselves. Each condition should be carefully worded and read because subtle changes to wording in a clause can drastically change the implications of that clause.
Some common conditions in residential resale are financing, insurance, and home inspection. With rural properties there should be a condition concerning potability of the water supply and possibly a warranty concerning the septic system. A sample of water should be taken at closing and so potability can be confirmed usually within a couple of days. These are just some of the more common conditions that are found in Agreements of Purchase and Sale there are various conditions that will sometimes appear and they need to be examined and considered individually.
Now you are able to look at the price being offered. Is it a number that you can accept? Is there a deposit? If not the offer should be signed back and include a deposit. Depending on your geographic location and the activity in your area will depend on the type of deposit you are able to demand. Does the closing date give you an acceptable amount of time to find new accommodations? Does the offer have any inclusions or exclusions that you were not planning on?
If at this point you have reviewed the Agreement and find it acceptable you have what is known as a conditionally accepted offer. If you find the offer unsatisfactory you need to alter the offer initialing any changes that you make and sign it back to the buyer or you can refuse the offer altogether. Any of these options have their own risks associated with them and you as a seller need to seriously consider the risks and benefits prior to making a final decision.
http://buyingsellingahome.suite101.com/article.cfm/salescontracts
Understanding the Agreement of Purchase and Sale
The ability to interpret an offer and respond to it is imperative to the sale process. In some instances you may have a trained professional to assist in interpreting an offer and assisting you with any counter offers. This discussion focuses on common practices in the Ontario market place however the tips will assist in the interpretation of any offer regardless of geographic location. When you are considering that initial offer to purchase your property I would recommend that you get independent professional advice.
For an agreement to be legally binding it is important to verify that the full legal names of all parties are correct, as well as the legal description, address and lot size. If all this information is accurate and does not need to be altered then you may actually interpret the offer. If this information is in anyway inaccurate then it needs to be corrected and initialed by both the buyer and the seller.
Next I usually recommend looking at the schedule at the back of the offer prior to examining the price and deposit. The conditions in a schedule override any preprinted material in the Agreement and these usually itemize any potential problem areas that may cause the offer to be terminated by the buyer. The conditions in the schedule will give you insight into how serious your potential Buyer is and how you will proceed with negotiations.
There are several conditions that are commonly used in an Agreement of Purchase and Sale and they have several common elements that need to be considered. For starters there is the duration of the clause. The longer the conditional period is the longer it prevents you from accepting other offers. The condition also allows the Buyer a way to escape from an Agreement of Purchase and Sale without penalty to themselves. Each condition should be carefully worded and read because subtle changes to wording in a clause can drastically change the implications of that clause.
Some common conditions in residential resale are financing, insurance, and home inspection. With rural properties there should be a condition concerning potability of the water supply and possibly a warranty concerning the septic system. A sample of water should be taken at closing and so potability can be confirmed usually within a couple of days. These are just some of the more common conditions that are found in Agreements of Purchase and Sale there are various conditions that will sometimes appear and they need to be examined and considered individually.
Now you are able to look at the price being offered. Is it a number that you can accept? Is there a deposit? If not the offer should be signed back and include a deposit. Depending on your geographic location and the activity in your area will depend on the type of deposit you are able to demand. Does the closing date give you an acceptable amount of time to find new accommodations? Does the offer have any inclusions or exclusions that you were not planning on?
If at this point you have reviewed the Agreement and find it acceptable you have what is known as a conditionally accepted offer. If you find the offer unsatisfactory you need to alter the offer initialing any changes that you make and sign it back to the buyer or you can refuse the offer altogether. Any of these options have their own risks associated with them and you as a seller need to seriously consider the risks and benefits prior to making a final decision.
http://buyingsellingahome.suite101.com/article.cfm/salescontracts
Questions To Consider
Here is a list of questions to consider when you're thinking of purchasing a house.
Some Questions To Consider When Buying A Home
Buying a home is likely the largest financial and lifestyle commitment you are likely to make during the course of your life. It pays to make an informed decision by looking at the advantages and disadvantages of homeownership. These questions should be addressed prior to making the decision to buy a home.
Are you financially ready?
Visit your local financial institution or mortgage broker so you can explore what you are financially capable of affording. Your financial institution will examine your credit history and they'll review your available down payment. They will look at your income and expenses and input all that information into a formula to determine what the maximum they will allow you to borrow.
How much will it really cost?
After you have calculated what is the maximum you can afford then you need to calculate the up-front costs and expenses associated with buying a home. I usually recommend three to four percent of the purchase price should be budgeted for closing expenses. Expenses such as land transfer tax, lawyer's fees, real estate fees, moving expenses as well as a portion of heating fuel, property taxes and possibly some other expenses can add up.
What should I buy?
Before you decide to search for a home you need to decide what type of home you are looking for. Is a basement or garage important? Does the style and aesthetics meet your tastes? Do you just want to move in or do you mind fixing it up? Take some time to decide what you need and want from your home, because it will likely be something you live with for a long time to come.
What professionals should you call on?
You'll need to use several professionals to help in your real estate transaction.
Select a lawyer. They are responsible for searching the property title and ensuring that there are no liens against the property. Your lawyer also will mediate the closing of the home. That means that they mediate between the bank and the seller's lawyer.
Select a financial institution or mortgage broker to assist in pre-approving a mortgage application and setting up financing conditions.
It's a good idea to use a Real Estate agent to assist in the home buying process. Agents tend to be familiar with the local market place and will be able to guide and advise you on the available properties and their history. Agents also have the education and expertise to assist with all of your buying and selling questions.
Select an insurance broker. Most financial institution requires proof of insurance to close a sale. I also recommend a couple of other professionals to my clients as well, such as a home inspector, or a builder and a surveyor.
If you have followed these steps and done your homework, you are now ready to go out and find the right house. You have selected the features that you need and want, the location you would like to be in. You have consulted the professionals you're going to deal with and are now ready to go out and actively start looking to enter the world of home ownership.
http://buyingsellingahome.suite101.com/article.cfm/questions
Some Questions To Consider When Buying A Home
Buying a home is likely the largest financial and lifestyle commitment you are likely to make during the course of your life. It pays to make an informed decision by looking at the advantages and disadvantages of homeownership. These questions should be addressed prior to making the decision to buy a home.
Are you financially ready?
Visit your local financial institution or mortgage broker so you can explore what you are financially capable of affording. Your financial institution will examine your credit history and they'll review your available down payment. They will look at your income and expenses and input all that information into a formula to determine what the maximum they will allow you to borrow.
How much will it really cost?
After you have calculated what is the maximum you can afford then you need to calculate the up-front costs and expenses associated with buying a home. I usually recommend three to four percent of the purchase price should be budgeted for closing expenses. Expenses such as land transfer tax, lawyer's fees, real estate fees, moving expenses as well as a portion of heating fuel, property taxes and possibly some other expenses can add up.
What should I buy?
Before you decide to search for a home you need to decide what type of home you are looking for. Is a basement or garage important? Does the style and aesthetics meet your tastes? Do you just want to move in or do you mind fixing it up? Take some time to decide what you need and want from your home, because it will likely be something you live with for a long time to come.
What professionals should you call on?
You'll need to use several professionals to help in your real estate transaction.
Select a lawyer. They are responsible for searching the property title and ensuring that there are no liens against the property. Your lawyer also will mediate the closing of the home. That means that they mediate between the bank and the seller's lawyer.
Select a financial institution or mortgage broker to assist in pre-approving a mortgage application and setting up financing conditions.
It's a good idea to use a Real Estate agent to assist in the home buying process. Agents tend to be familiar with the local market place and will be able to guide and advise you on the available properties and their history. Agents also have the education and expertise to assist with all of your buying and selling questions.
Select an insurance broker. Most financial institution requires proof of insurance to close a sale. I also recommend a couple of other professionals to my clients as well, such as a home inspector, or a builder and a surveyor.
If you have followed these steps and done your homework, you are now ready to go out and find the right house. You have selected the features that you need and want, the location you would like to be in. You have consulted the professionals you're going to deal with and are now ready to go out and actively start looking to enter the world of home ownership.
http://buyingsellingahome.suite101.com/article.cfm/questions
The Right Time For Buying A Home
The American dream of buying a home is a multi-step process. But the first, and most pivotal decision involved, is when to buy your first home. For first time buyers hearing about the ups and downs of the housing market can put them into a state of fear and inaction. The often ask- is this a bad time to buy? Can I qualify? Will my interest rates soar? But realtors and mortgage brokers will all tell you that the right time to buy is contingent on more factors than the national, or even local housing economy.
A Solid Investment
One of the reasons that realtors tout home ownership as the investment of a lifetime is because your home will appreciate over the time you live there. While an investment property seeks a different type of return, the outcome is the same. Most people will eventually sell their home for far more than they paid for it. Keep in mind personal factors like the livelihood of future moves, income, and growing families. A good realtor will take all these factors into account when helping scope out your ideal home.
I you are already paying rent, it generally makes sense to turn that outgoing cash each month into an investment that will accrue equity immediately. Use the knowledge of local realtors and mortgage lenders to get a feel for the local market. This will be more pertinent than national trends for your immediate needs.
High Interest vs. Interest Deductions
Realtors and mortgage lenders report that high interest rates are one of the biggest areas of concern for people buying a home for the first time. As national sales have dropped in the first half of 2007, lending standards have tightened, and obtaining low interest rates has gotten more difficult- especially for lenders with poor credit or little money for a down payment. According to the National Association of Realtors, high priced homes are selling strong, and the overall real estate sales are expected to increase gradually in the second half of the year.
How does this affect the right time to buy? Obviously, if your credit is poor and you have little cash, this could make obtaining a loan challenging. But realtors report that many first time home buyers find themselves needing to buy a home due to a relocations, or new baby in the family. Does this mean the times just not right, and they should rent another year or two to get cash save up? Maybe.
A good guideline realtors give is that no more than 33% of your income should go towards housing. So if getting into a home right now would really stretch those numbers, responsible realtors and mortgages lenders advise taking some time to get your credit in shape and save up some cash.
On the other hand, if you can swing a reasonable down payment a slightly higher interest rate than was offered a year or two ago isn’t really a reason to put off buying. Realtors say this is a great time for buying since the market is flooded with reduced priced homes. And you actually can benefit from mortgage interest deductions. Ask your realtor, lender or other real estate professional to explain the how mortgage interest is completely deducted from your taxes.
Still Unsure?
Just remember- look at the numbers. The best realtors will lead you towards homes that are in your price range- but you need to know what that really is. Realtors and mortgage lenders can only give feedback on the information you give them. By considering your lifestyle, income and desires, only you can really determine now is the right time for buying a home.
http://www.articlesuniverse.com/Article/The-Right-Time-For-Buying-A-Home/50571
A Solid Investment
One of the reasons that realtors tout home ownership as the investment of a lifetime is because your home will appreciate over the time you live there. While an investment property seeks a different type of return, the outcome is the same. Most people will eventually sell their home for far more than they paid for it. Keep in mind personal factors like the livelihood of future moves, income, and growing families. A good realtor will take all these factors into account when helping scope out your ideal home.
I you are already paying rent, it generally makes sense to turn that outgoing cash each month into an investment that will accrue equity immediately. Use the knowledge of local realtors and mortgage lenders to get a feel for the local market. This will be more pertinent than national trends for your immediate needs.
High Interest vs. Interest Deductions
Realtors and mortgage lenders report that high interest rates are one of the biggest areas of concern for people buying a home for the first time. As national sales have dropped in the first half of 2007, lending standards have tightened, and obtaining low interest rates has gotten more difficult- especially for lenders with poor credit or little money for a down payment. According to the National Association of Realtors, high priced homes are selling strong, and the overall real estate sales are expected to increase gradually in the second half of the year.
How does this affect the right time to buy? Obviously, if your credit is poor and you have little cash, this could make obtaining a loan challenging. But realtors report that many first time home buyers find themselves needing to buy a home due to a relocations, or new baby in the family. Does this mean the times just not right, and they should rent another year or two to get cash save up? Maybe.
A good guideline realtors give is that no more than 33% of your income should go towards housing. So if getting into a home right now would really stretch those numbers, responsible realtors and mortgages lenders advise taking some time to get your credit in shape and save up some cash.
On the other hand, if you can swing a reasonable down payment a slightly higher interest rate than was offered a year or two ago isn’t really a reason to put off buying. Realtors say this is a great time for buying since the market is flooded with reduced priced homes. And you actually can benefit from mortgage interest deductions. Ask your realtor, lender or other real estate professional to explain the how mortgage interest is completely deducted from your taxes.
Still Unsure?
Just remember- look at the numbers. The best realtors will lead you towards homes that are in your price range- but you need to know what that really is. Realtors and mortgage lenders can only give feedback on the information you give them. By considering your lifestyle, income and desires, only you can really determine now is the right time for buying a home.
http://www.articlesuniverse.com/Article/The-Right-Time-For-Buying-A-Home/50571
Buying a Home in an Historic District
There are many advantages to buying a home in a designated historic district, including stability and resale values. Still, there’s much to learn before taking the plunge.
Perhaps you have been searching for several months or even years, and now you have found the perfect home. Your dream comes with elaborately detailed scrollwork, a hand-carved newel post, or stately white columns. It is also listed as a contributing resource to an historic district on the National Register of Historic Places. What does that mean? What things should you consider before determining that this house is for you?
Part of Something Larger
Pacific Union Senior Sales Agent Tom Zannelli of San Francisco indicates that a listing on the National Register is a particular, upscale amenity that attracts a specific group of homebuyers. Others may fall into this possibility during a house hunt. Tom and Lynn Wood, architects and principals of Timeline Architecture, consciously chose to live in their neighborhood of redeveloped military housing at Fort Ethan Allen in Essex, Vermont. Both the surroundings and the house encouraged residential reuse, while the space offered uncommon design, craftsmanship, and materials. “It was a chance to be part of something larger and unique,” said Lynn.
Return on the Investment
A National Register citation confirms a home's historic significance, but the real worth may be realized in the stability and strength of the property's value. A 2000 study of South Carolina home sales shows that homes in Columbia's historic districts sold 26 percent faster than the overall market; while historic Beauport owners saw a whopping 21 percent greater sale price. In Rome, Georgia, properties in designated historic neighborhoods increased in value 10 percent more than similar properties without historic designation between 1980 and 1996. Studies in Texas, New York, and Pennsylvania corroborate the positive effect an historic district designation has on property values, with overall increases between 5 percent and 20 percent. The stability of property value appears to extend to owner tenure as well: There is a reportedly lower owner turnover within historic districts than in neighborhoods lacking that distinction.
Playing By the Code
National Register inclusion is an acknowledgment of a property's importance to its community, state, or the nation. Some homebuyers may be anxious about this designation from the National Park Service, fearing infringement of their property rights. These concerns are unfounded, as long as the work receives no federal money, and requires no federal license or permit. Owners are under no obligation to restore their property, or to open their doors to the public.
Many municipalities, however, have designated design control districts in areas that have been identified as having particular historic, architectural, scenic, cultural, or visual significance. Buildings in these areas may be subject to review for any proposed alteration, addition, or demolition. A prospective homebuyer of a property within an established historic district would be well advised to visit the local planning and zoning office to determine what guidelines may apply to them. Preservation ordinance helps homeowners protect their investment by preserving the historic character of their neighborhoods. Review of any project may run the gamut from a cursory evaluation by a zoning administrator to review by a secondary commission that advises specifically on questions of historic sensitivity and architectural compatibility.
For certain types of work, homeowners may need to secure a permit called a Certificate of Appropriateness (C.O.A.), or Permit for Minor Work from their planning office or historic review board. Communities that rely on heritage tourism frequently have more stringent review procedures: Historic Savannah requires review for alterations as minor as changing awnings. In New York City's Row House District, a C.O.A. is necessary before changing exterior shutters. Review only applies to the exterior of any structure in an historic district, and does not affect any interior changes.
Some historic district commissions may require replacement of damaged materials in kind, that is, with material or design features original to the building. While the alteration of an historic home may require specific or expensive materials or craftsmanship, it will be balanced with the likelihood that the investment will hold. Additionally, your neighbor's protected property is also less likely to be altered in a manner that might reduce your property value.
Preservation Resources
In some instances buildings listed as contributing resources on the National Register may be eligible for limited financial aid through grants, loans, or tax incentives. Georgia has provided an eight-year freeze on property-tax assessments designated historic properties. The Federal Government currently limits tax credit opportunities to structures that are income producing (rather than strictly residential). Preservation organizations are another resource for modest financial assistance. Preservation easements may also be arranged through local governments or private organizations like Historic New England (formerly the Society for the Preservation of New England Antiquities.) These arrangements can lessen property-tax burden while providing for the preservation, protection, and maintenance for your historic property.
Programs differ from one state to another, so check with your State Historic Preservation Office (SHPO), local planning agency, or community historical society.
Thousands of historic districts have been listed by the Federal government on the National Register, ranging from the landmark homes of Newport to modest mill housing of New England. Owning property within an historic district offers you the unique opportunity to interpret and share the history of your home, as steward of a recognized contributor to our nation's past.
For further information, contact www.cr.nps.gov/nr, or your local State Historic Preservation Office.
http://www.bobvila.com/HowTo_Library/Buying_a_Home_in_an_Historic_District-Home_Buying-A1541.html
Perhaps you have been searching for several months or even years, and now you have found the perfect home. Your dream comes with elaborately detailed scrollwork, a hand-carved newel post, or stately white columns. It is also listed as a contributing resource to an historic district on the National Register of Historic Places. What does that mean? What things should you consider before determining that this house is for you?
Part of Something Larger
Pacific Union Senior Sales Agent Tom Zannelli of San Francisco indicates that a listing on the National Register is a particular, upscale amenity that attracts a specific group of homebuyers. Others may fall into this possibility during a house hunt. Tom and Lynn Wood, architects and principals of Timeline Architecture, consciously chose to live in their neighborhood of redeveloped military housing at Fort Ethan Allen in Essex, Vermont. Both the surroundings and the house encouraged residential reuse, while the space offered uncommon design, craftsmanship, and materials. “It was a chance to be part of something larger and unique,” said Lynn.
Return on the Investment
A National Register citation confirms a home's historic significance, but the real worth may be realized in the stability and strength of the property's value. A 2000 study of South Carolina home sales shows that homes in Columbia's historic districts sold 26 percent faster than the overall market; while historic Beauport owners saw a whopping 21 percent greater sale price. In Rome, Georgia, properties in designated historic neighborhoods increased in value 10 percent more than similar properties without historic designation between 1980 and 1996. Studies in Texas, New York, and Pennsylvania corroborate the positive effect an historic district designation has on property values, with overall increases between 5 percent and 20 percent. The stability of property value appears to extend to owner tenure as well: There is a reportedly lower owner turnover within historic districts than in neighborhoods lacking that distinction.
Playing By the Code
National Register inclusion is an acknowledgment of a property's importance to its community, state, or the nation. Some homebuyers may be anxious about this designation from the National Park Service, fearing infringement of their property rights. These concerns are unfounded, as long as the work receives no federal money, and requires no federal license or permit. Owners are under no obligation to restore their property, or to open their doors to the public.
Many municipalities, however, have designated design control districts in areas that have been identified as having particular historic, architectural, scenic, cultural, or visual significance. Buildings in these areas may be subject to review for any proposed alteration, addition, or demolition. A prospective homebuyer of a property within an established historic district would be well advised to visit the local planning and zoning office to determine what guidelines may apply to them. Preservation ordinance helps homeowners protect their investment by preserving the historic character of their neighborhoods. Review of any project may run the gamut from a cursory evaluation by a zoning administrator to review by a secondary commission that advises specifically on questions of historic sensitivity and architectural compatibility.
For certain types of work, homeowners may need to secure a permit called a Certificate of Appropriateness (C.O.A.), or Permit for Minor Work from their planning office or historic review board. Communities that rely on heritage tourism frequently have more stringent review procedures: Historic Savannah requires review for alterations as minor as changing awnings. In New York City's Row House District, a C.O.A. is necessary before changing exterior shutters. Review only applies to the exterior of any structure in an historic district, and does not affect any interior changes.
Some historic district commissions may require replacement of damaged materials in kind, that is, with material or design features original to the building. While the alteration of an historic home may require specific or expensive materials or craftsmanship, it will be balanced with the likelihood that the investment will hold. Additionally, your neighbor's protected property is also less likely to be altered in a manner that might reduce your property value.
Preservation Resources
In some instances buildings listed as contributing resources on the National Register may be eligible for limited financial aid through grants, loans, or tax incentives. Georgia has provided an eight-year freeze on property-tax assessments designated historic properties. The Federal Government currently limits tax credit opportunities to structures that are income producing (rather than strictly residential). Preservation organizations are another resource for modest financial assistance. Preservation easements may also be arranged through local governments or private organizations like Historic New England (formerly the Society for the Preservation of New England Antiquities.) These arrangements can lessen property-tax burden while providing for the preservation, protection, and maintenance for your historic property.
Programs differ from one state to another, so check with your State Historic Preservation Office (SHPO), local planning agency, or community historical society.
Thousands of historic districts have been listed by the Federal government on the National Register, ranging from the landmark homes of Newport to modest mill housing of New England. Owning property within an historic district offers you the unique opportunity to interpret and share the history of your home, as steward of a recognized contributor to our nation's past.
For further information, contact www.cr.nps.gov/nr, or your local State Historic Preservation Office.
http://www.bobvila.com/HowTo_Library/Buying_a_Home_in_an_Historic_District-Home_Buying-A1541.html
The Greatest Home Buying Tip
Everywhere you look online there is a home buying tip that is supposed to be the best home buying tip available. Most of the time the tip is to use this or that mortgage company for your loan. The truth of the matter is that tips for buying homes are a dime a dozen and often worth little more than a dime. Buying a new home can be a frightening prospect, especially if you are going it alone so to speak. For this reason, the best tip I have to offer is to find a great realtor and learn from their experience and guidance.
It cost you nothing as a buyer to go with a realtor, they make their money in a commission from the sale of the home and are often smart enough to realize that a percentage of a bargain basement price on a home is better than a percentage of a lost sell. They are generally going to be your greatest ally in the home buying process. If you are still nervous about using the services of a realtor because of divided loyalties, then perhaps you'd be interested in hiring a 'buyers agent'. This is essentially a realtor that will work for you, the buyer.
A buyer's agent can negotiate his or her fee to be paid as part of the closing costs from the seller, but this will have to be negotiated and can be refused. That means that you could end up paying the fees for your buyer's agent. That is often not the case and the realtor's manage to work things out between themselves in order to split a commission and keep the sell. This is one home buying tip that I would seriously recommend you take as it can save you time and money and help introduce you to homes in areas for
You do not want to make a HUGE mistake that may take your years to correct!
There is something really special about owning a home. Being a homeowner can make a person feel a little more like a giving member in a community, and less like a nomad.
If you've ever wondered what you need to know and do before investing in a house or you want the cut through the gray matter and get down to the real bare bones information you need without the candy coating that some in the housing market may try to lambaste you with!
Great ebook you simply cannot afford to miss.
prices that you might find astonishing.
A great realtor or buyer's agent will help you find homes that meet your criteria and your budget. He or she can often be credited with achieving the impossible and are well worth every penny they earn in commission and then some. Not only do they help guide you through the process of finding your dream home, they also help you during the bidding, negotiating, inspecting, and appraising process all the way through the closing process. I assure you, the closing can be by far the most intimidating and the most exciting (until you're on your second hour of signing you name to the bottom of countless pages).
The bottom line is that it's a toss up between the realtor and the mortgage broker who is your best friend in the home buying process but my vote goes to the realtor. The right realtor can make or break the experience for you. He or she can show you the road to your dream home in the perfect neighborhood for the perfect price and if you feel at any time during the process that your realtor is not listening to your needs, then it might be time to have a serious heart to heart, redefine your needs and offer to find another realtor. That is generally a great motivator if it comes down to it. Most of the time it will not and your realtor will work relentlessly to insure that your deal goes through and your home closes according to your wishes and satisfaction. As I've said before I could offer a home buying tip for almost every occasion, the best tip by far is to find a great realtor to work with from the very beginning of the process.
http://www.advancingwomen.com/easyhome/index.php
It cost you nothing as a buyer to go with a realtor, they make their money in a commission from the sale of the home and are often smart enough to realize that a percentage of a bargain basement price on a home is better than a percentage of a lost sell. They are generally going to be your greatest ally in the home buying process. If you are still nervous about using the services of a realtor because of divided loyalties, then perhaps you'd be interested in hiring a 'buyers agent'. This is essentially a realtor that will work for you, the buyer.
A buyer's agent can negotiate his or her fee to be paid as part of the closing costs from the seller, but this will have to be negotiated and can be refused. That means that you could end up paying the fees for your buyer's agent. That is often not the case and the realtor's manage to work things out between themselves in order to split a commission and keep the sell. This is one home buying tip that I would seriously recommend you take as it can save you time and money and help introduce you to homes in areas for
You do not want to make a HUGE mistake that may take your years to correct!
There is something really special about owning a home. Being a homeowner can make a person feel a little more like a giving member in a community, and less like a nomad.
If you've ever wondered what you need to know and do before investing in a house or you want the cut through the gray matter and get down to the real bare bones information you need without the candy coating that some in the housing market may try to lambaste you with!
Great ebook you simply cannot afford to miss.
prices that you might find astonishing.
A great realtor or buyer's agent will help you find homes that meet your criteria and your budget. He or she can often be credited with achieving the impossible and are well worth every penny they earn in commission and then some. Not only do they help guide you through the process of finding your dream home, they also help you during the bidding, negotiating, inspecting, and appraising process all the way through the closing process. I assure you, the closing can be by far the most intimidating and the most exciting (until you're on your second hour of signing you name to the bottom of countless pages).
The bottom line is that it's a toss up between the realtor and the mortgage broker who is your best friend in the home buying process but my vote goes to the realtor. The right realtor can make or break the experience for you. He or she can show you the road to your dream home in the perfect neighborhood for the perfect price and if you feel at any time during the process that your realtor is not listening to your needs, then it might be time to have a serious heart to heart, redefine your needs and offer to find another realtor. That is generally a great motivator if it comes down to it. Most of the time it will not and your realtor will work relentlessly to insure that your deal goes through and your home closes according to your wishes and satisfaction. As I've said before I could offer a home buying tip for almost every occasion, the best tip by far is to find a great realtor to work with from the very beginning of the process.
http://www.advancingwomen.com/easyhome/index.php
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