How to Investigate the Neighborhood Where You Want to Live

You’ve gone to the open house. You’ve had a private showing. You’ve read the disclosures. You’ve decided this is the house for you, and you’re ready to make an offer.
Before you take that step, though, you should fully check out the neighborhood. After all, this is where you’re going to live for years. Is there something you don’t know about that could negatively affect the resale value later? Is there a neighbor who comes roaring home late at night on a muffler-free motorcycle? Is the next-door neighbor operating a day care for pre-schoolers?
Given the high stakes of homeownership, it pays to do your homework before making an offer. For example, a potential buyer was ready to sign on the dotted line for a home in San Francisco, a city famous for its microclimates. The buyer had only been to the home during the day, when it was sunny and warm. On his real estate agent’s advice, the buyer returned at night — to find the house blanketed by cold, windy fog. He continued his home search elsewhere, relieved he hadn’t unknowingly bought into the city’s “fog and wind belt.”
Here are five ways to investigate a neighborhood before you buy.
1. Talk to the neighbors
Without being intrusive, look for an opportunity to chat with your potential neighbors. What’s their opinion of the block and the neighborhood? Do they know of any problem neighbors? Are they aware of any recent car or home break-ins? Is anyone planning a big remodel that could impact other homes or their values? Do they know of someone on the block who might be getting ready to sell? An even more desirable home could be coming on the market.
2. Visit day and night, weekday and weekend
As the San Francisco example shows, don’t just visit the house during the day. Check it out at night to get a sense of what’s going on in the neighborhood after hours. Is it noisy or calm? Visit on the weekend and early morning, too. The more times of day you go, the more chances you’ll have to get the feel for the neighborhood.
3. Check out the local newspaper and the neighborhood blog
Some neighborhoods still have their own newspapers. If there’s one published for the neighborhood you’re considering, check it out for local stories. Pay particular attention to the “police blotter,” which typically lists crimes reported in the area. Also, some neighborhoods have blogs where locals ask for tips and advice, or post issues or concerns affecting the neighborhood. A Google search should help you find out whether there’s a blog for the neighborhood you’re considering.
4. Get an app
Some smartphone apps, such as CrimeReports for iPhone, provide information about crime based on your location or address. Among the problems you may see displayed on a map are noise nuisances, sex offenders and vehicle break-ins. The CrimeReports app gives you some specifics, such as when and where each incident occurred.
Zillow’s real estate apps allow you to see estimates of properties on the block. They also allow you to search recent sales or see rentals, a good indication of whether your neighbors are renters or homeowners.
5. Google the street address
If you Google the home’s street address, you might be amazed at what you find. You might, for instance, discover a nearby home-based business with employees (which could reduce street parking spaces). Using Google’s Street View, where photos can be months if not years old, you might discover that the ground-floor bedroom window once had bars on it.
Be a sleuth before the sale
The Internet is an amazing resource of information. Too often, though, potential home buyers don’t fully use it to find out everything they can before entering into a contract on a home. As soon as you’ve identified a home you want to buy, get online and do your homework. You might be pleasantly — or unpleasantly — surprised by what you learn.

Written by Brendon DeSimone

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Your Property Wish List

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

• Public transportation
• Airport
• Expressway
• Neighborhood shopping
• Schools
• Other

Home Style

• What architectural style(s) of homes do you prefer?
• Do you want to buy a home, condominium, or townhome?
• Would you like a one-story or two-story home?
• How many bedrooms must your new home have?
• How many bathrooms must your new home have?

Home Condition

• Do you prefer a new home or an existing home?
• If you’re looking for an existing home, how old of a home would you consider?
• How much repair or renovation would you be willing to do?
• Do you have special needs that your home must meet?

Home Features

Front Yard	Must Have	Would Like	Willing to Compromise	Not Important
Back yard	Must Have	Would Like	Willing to Compromise	Not Important
Garage ( __ cars)	Must Have	Would Like	Willing to Compromise	Not Important
Patio/Deck	Must Have	Would Like	Willing to Compromise	Not Important
Pool	Must Have	Would Like	Willing to Compromise	Not Important
Family room	Must Have	Would Like	Willing to Compromise	Not Important
Formal living room	Must Have	Would Like	Willing to Compromise	Not Important
Formal dining room	Must Have	Would Like	Willing to Compromise	Not Important
Eat-in kitchen	Must Have	Would Like	Willing to Compromise	Not Important
Laundry room	Must Have	Would Like	Willing to Compromise	Not Important
Finished basement	Must Have	Would Like	Willing to Compromise	Not Important
Attic	Must Have	Would Like	Willing to Compromise	Not Important
Fireplace	Must Have	Would Like	Willing to Compromise	Not Important
Spa in bath	Must Have	Would Like	Willing to Compromise	Not Important
Air conditioning	Must Have	Would Like	Willing to Compromise	Not Important
Wall-to-wall carpet	Must Have	Would Like	Willing to Compromise	Not Important
Wood floors	Must Have	Would Like	Willing to Compromise	Not Important
Great view	Must Have	Would Like	Willing to Compromise	Not Important

Written by Realtor Mag

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Why You Should Work With a REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.
2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.
4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.
7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.
8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.
9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Written by Unknown

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Housing Recovery Nears Equilibrium

Good news for homebuyers. On average, the home prices in 38 cities were unchanged in July, compared to June this year and that's a first for the year. If the trend continues, it could provide a cushion against the double whammy of rising home prices and rising interest rates. For sellers? Get moving. There's still the advantage of year over year price increases, but month-to-month, there might not be much more price gain to cash in on. What increases are expected month-to-month could be too small to squeeze any more profit out of the market, according to online real estate brokerage Movoto.com. In June, the average list price per square foot for homes was $181 in the 38 cities Movoto tracks - the same as June. Previously this year, the median list price per square foot increased for six consecutive months, giving buyers the jitters and sellers the jollies. Just how good this news is for buyers remains to be seen. For the past two years the June to July price spread also has been relatively unchanged. More sellers always come to market during the busy summer seasonal period because that's when buyers are more likely to buy a home and get moved in before kids return to school in the fall. Year-over-year price, inventory change Meanwhile, the median list price per square foot increased in 36 of the 38 cites, rising 14.9 percent since last July. Sacramento remains Movoto's price gain winner with a 64.5 percent increase in the prices per square foot, followed by Phoenix at 39.6; Mesa, 32.6; Oakland, 31.2 percent; Long Beach, 30.3 percent; Boston, 24.2 percent; Las Vegas 24.1 percent; Los Angeles, 21.2 percent and Miami, 20 percent, to round out the list of towns with price per square foot gains of 20 percent or more. Inventories dropped on the year in 32 of 38 cities tracked, by an average of 16.2 percent. The supply of homes shrank most in Detroit where the supply fell by 45 percent, followed by Sacramento, 44 percent; Boston, 43.5 percent; Houston, 32.3 percent; Dallas, 29.6 percent; Austin; 26.2 percent; Chicago, 26.2 percent; Nashville 25.2 percent; Washington, D.C., 23.1 percent; Atlanta 22.9 percent; Phoenix, 22 percent and Memphis, 21.7 percent to round out the cities with a decline in inventories of 20 percent or more. But it's the month-to-month inventory of homes for sale that's the stat to watch. Inventories were up more than 4 percent on average from June to July, the third straight month of rising inventories. While seasonal factors impact growing inventories of homes for sale, this year's growth is one to watch. Recent summers haven't seen an upward trend in inventories. "To place this in perspective, during the same time in 2012 and 2011, inventory declined across the cities we track, which is a good sign for perspective buyers going into the second half of this year," Movoto.com reported.

Written by Broderick Perkins

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Mortgages Rates Rise, How Will That Impact Home Sales?

The mortgage rates have been rising and that has some homeowners wondering if they missed the best time to buy. Not at all, say experts. That's because the rates are still considered very low and the increase isn't sharp. The rate for a 30-year fixed mortgage on June 25, 2013 was approximately 4.5 percent, climbing from its June 1, 2013 rate of approximately 3.9 percent. Based on the higher interest rate, monthly payments on loans ranging from $100,000 to $300,000 don't go up significantly. Rick Allen, the chief operating officer at Mortgage Marvel breaks it down by showing that a home that cost $100,000 at 3.9 percent would have a monthly payment of $471.67. That same home price at 4.5 percent increases the monthly payment by only $35.02. For a $200,000 home at 3.9 percent the monthly payment is $943.34. If that same home's rate were 4.5 percent, then the monthly payment would increase by $70.03. On a $300,000 home at 3.9 percent the increase in a monthly payment, if the rate were 4.5 percent, is $105.06. While the increases are, of course, monthly - it will add up over 12 months - it's still quite possible for many buyers to manage. Allen suggests that if the payment isn't manageable, the consumer could buy a less expensive home. There would need to be only about a 7 percent reduction in the amount borrowed at 4.5 percent to return the payment to the same monthly payment as it would be at 3.9 percent. Rising interest rates often cause people to act quickly and jump into the housing market - which can start to increase home prices in tight inventory markets as these potential buyers get more serious about homeownership. If you're considering homeownership and wondering how the rise in interest rates will impact you, consult with a mortgage broker. An expert in the field can help you determine exactly how much home you can afford, at which rate, and for how long you'll have to pay. If homeownership is high on your list, start your due diligence now. Meet with experienced real estate agents to decide who can help you the most. Buying a home is a lengthy process and there is a lot to understand so you'll want to make sure you're compatible with the agent. You'll also want to make sure you have a clear picture of what you can afford, what you want in a home, and for how long you want to own it. Next, since you know that rates are rising, start preparing. If you know that the home you wanted to buy was, for instance, in the $300,000 range but, due to rising interest rates, your monthly payments would be higher, then look at your finances and see where you can cut back now to save a little more. Saving now will allow you to put more down on the home and reduce the amount of money you need to borrow which, therefore, lowers your monthly payments. I write this often but it is most important - do your research. Don't give up on homeownership just because rates are rising. Instead, take a good look at your finances with experts and understand what you can afford now and/or how much you need to bring in to make your monthly payments manageable so you can afford a home in the near future. Education and understanding will lead to a more successful home-buying experience.

Written by Phoebe Chongchua

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Homeownership Still a Good Decision Even as Mortgage Rates Change

While homeownership numbers may be down, Americans continue to believe that owning a home is still a good decision even as mortgage rates have changed. According to the National Association of Realtors 2013 National Housing Pulse Survey, eight in 10 people believe that purchasing a home is a good choice and 68% believe that now is a good time to make a purchase. Since the last survey in 2011, renters who are contemplating a home purchase rose from 25% to 36% while those who stated they prefer to rent fell from 31% to 25%. More than half of the renters surveyed stated that one of their highest priorities is owning a home, up to 51% from 42%. According to the most recent survey of wholesale and direct lenders performed by FreeRateUpdate.com, current conforming 30 year fixed mortgage rates are as low as 3.875% (APR 4.052%), 15 year fixed mortgage interest rates are as low as 2.750% (APR 3.168%) and 5/1 adjustable mortgage rates are as low as 2.375% (APR 2.628%). Low rates are available to borrowers who have maintained a history of good credit. Borrowers must also meet the qualification guidelines that are required for approval. Mortgage purchase applications fell 3% for the week ending July 26th, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. However, purchase volume is approximately 5% higher than the same time last year. Refinances have been hit hard by the recent news concerning rising rates. The report also showed that the Refinance Index dropped 4% for the week and has reached the lowest level in more than two years. Total mortgage refinance activity is unchanged at 63%. HARP loan business continues to be healthy and rose to 37% of all refinance applications. There are still many underwater homeowners who are eligible for a HARP refinances which will be available until the end of 2015. Current FHA 30 year fixed mortgage rates are as low as 3.750% (APR 4.000%), FHA 15 year fixed rates are as low as 3.250% (APR 3.514%) and FHA 5/1 adjustable mortgage rates are as low as 2.500% (APR 2.925%). First time home buyers continue to use FHA loans because of the many benefits, including the low down payment of 3.5% with a credit score as low as 620. Becoming very popular is the FHA 203k loan which is for homes that need repairs or rehabilitation. One of the drawbacks to FHA mortgages is the higher FHA closing costs (APR) which is due to the upfront mortgage insurance premium and other FHA fees. However, borrowers often use seller concessions up to 6% for this purpose. The FHA streamline refinance is offered as an quick and easy way to move to a better mortgage without the need of any documentation or an appraisal as long as there is no cash taken out. Some borrowers, those who have loans that were endorsed prior to June 1, 2009, can use the streamline to refinance and will receive reduced upfront and annual mortgage insurance fees. This offer is available until the end of 2013. Jumbo 30 year fixed mortgage rates are as low as 4.000% (APR 4.209%), jumbo 15 year fixed rates are as low as 3.125% (APR 3.501%) and jumbo 5/1 adjustable mortgage rates are as low as 2.750% (APR 2.908%). Borrowers must have excellent credit and strong qualifications in order to receive low jumbo rates. Qualifying includes proof of substantial assets that are needed for the larger down payment and months of reserves that are necessary for approval of the loan. Jumbo loans have been an incredible bargain for home buyers since jumbo rates have not be much higher than conventional loan rates. Lenders tend to be very competitive when it comes to jumbo rates and flexibility with guidelines. MBS prices (mortgage backed securities) continue to be volatile which has caused a slight increase in mortgage rates over the past month. Mortgage rates move in the opposite direction of MBS prices. Last week, the GDP for the second quarter was reported at 1.7%, according to the Bureau of Economic Analysis. The Bureau of Labor Statistics reported that the economy added 162,000 jobs during the month of July. In addition, the unemployment rate dropped to 7.4%.

Written by Ed Ferrara

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Top Tips For Making A Successful Real Estate Purchase

There probably is not any way to have all the information you need before purchasing a property. So many details about real estate exist that even the buyers with great experience keep reading about new trends and developments in the market. This article can help you when you decide to purchase real estate.
When you are negotiating the price of real estate, it is best to have a moderate approach. The worst thing to do is be aggressive with the price. Firmly establish the basic deal you will accept, but let professionals take care of the details. Your lawyer and the Realtor or experienced in these things, and will probably negotiate a better deal than you could.

TIP! Every real estate agent should contact former clients at holidays and at anniversaries of their purchase date. When you keep in touch with them, they will remember their experience with you and how you made their experience an enjoyable one.

If you are with kids or are planning on having kids, you need a home that has a lot of space. Keep safety in mind, as well, particularly if a home has a swimming pool or stairs. You will be sure that your house is safe if there were children brought up in it.
If you are thinking of relocating, do your research online about the area and neighborhood you are looking at. Almost every town has plenty of information online. Look into the unemployment rates, population and salaries in the town to be sure that there is a future there.
Ask your Realtor for a checklist. Several Realtors have checklists that cover the purchase of a home, including budget. This checklist will help make sure that everything that needs to be taken care of is accomplished in time for settlement.

TIP! Make sure you have an emergency fund set aside for extra costs that arise while purchasing property. Closing costs will include down payments and taxes.

If you’ve made an offer for a house that seller didn’t take, don’t be discouraged, since you might find a better home. The seller might take care of a portion of your closing costs, or make some other improvements to the house for you.
Be flexible about the choices you have to make. While you might not get the perfect house in the community of your choice, you may be able to find something that works for you. You may not be able to find your dream home in your dream neighborhood. However, you may be able to find your dream home elsewhere, or another home in your dream community.
You should consider investing in the real estate market at this time. Property values are now at a low since the market has crashed. This presents a unique and ideal window of opportunity to move out of an apartment and into a place of your own. If you keep your property long enough, you are sure to gain a profit.

TIP! When you’re ready to buy a home, you’re aware of the asking price. However, figuring out your offer is most important.

Ask your Realtor if they can give you a checklist. Realtors often have a home-buyer’s checklist that includes everything you need to do or consider when buying home, from figuring out what you want in a house to finalizing a mortgage. A checklist will keep you organized and allow you to measure your progress.
When you want to make a good investment with real estate, consider repairing and remodeling. You will have the benefit of having an immediate return on your investment as your property value will go up. Your value might well rise more than your initial investment.
Try asking the seller to aid you in closing costs or giving financial incentives. Have your agent request that the seller buy down your interest rate for the first two years of your loan. By asking for financial incentives, you are possibly keeping the seller from negotiating the selling price.

TIP! Before purchasing a home in an unfamiliar neighborhood, check out that neighborhood using your state’s sex offender database. You can do this quickly and easily, and it could keep your whole family safer in your new home.

Educate yourself on mortgage loan terms before you look into purchasing real estate. A failure to understand how your monthly payments are structured, especially interest over the life of the loan, may place your home in jeopardy. So take all the time necessary to understand a mortgage and avoid any confusion.
Write down all the important questions that you need to ask potential real estate agents. You should ask them specific questions about their track record. A good agent will have this information readily available.
Always have a home inspection prior to signing a mortgage. Without a proper inspection, you could get stuck with a piece of property in need of major repairs. Not hiring an inspector can ultimately be very expensive, because if the repairs are too extensive, you will need alternate living arrangements while your house is getting repaired.

Written by Harry Blogger

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Call Alvin's Team Today! 877-651-7810
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