Homefinding Book

Buying a home can be one of the most exhilarating and challenging experiences of a lifetime. Most people do not buy homes often so it is a good idea to seek the help of a few experts along the way before buying a home. In fact, failing to do some things before you buy can cost you a great deal of money and save quite a few headache remedies along the way. Make sure you do the following things in order to avoid big trouble down the road.

1. Establish a budget that is achievable. If you’ve never owned a home before you may not realize some of the expenses that go along with home ownership. You need to budget money each month for your house note, private mortgage insurance, home owner’s insurance, property taxes, and potential repairs and improvements that will need to be made quickly after moving in. You also may be responsible for some utilities that are generally included in the cost of rent when you buy such as water, garbage collection, and sewage services. Many banks will approve buyers for more money than you can realistically afford to repay. You need to be aware of the state of your finances and make sure that you don’t over borrow simply because you can.

2. Inspections. You absolutely need to have a full home inspection before you buy and any offers you make need to be contingent upon the results of the inspection. An inspection is not an absolute guarantee that there will be no problems with the home you are considering but can identify of many potential problems so that you know to adjust your bid on the home accordingly.

3. Appraisal. Most banks won’t lend money on a home until you have a proper appraisal. This generally works in your favor though because an appraisal is designed to insure that you do not pay more than the value of the home. If the home does not appraise at the asking price or the price of your offer you will need to adjust your offer or rethink the offer all together.

4. Estimate for repairs. One other thing you will need before you buy a home is an estimate for the cost of repairs. You can use these estimates to lower the buying price of your home or to secure credit from the seller for the cost of those repairs. Needless to say they can be excellent bargaining tools or they may tip the scales in a manner that makes the house an unfavorable investment. Remember that you need to be able to afford to stay in the house you buy not just get in it.

There are other things you will want to do before you buy but if you take care of these things you are much more likely to have a better overall buying experience and be able to manage to keep your home in a market where so many others are losing the homes in which they have placed many of their dreams.

When your goal is the sale of your home, there are many things you can do that will make your home more appealing to potential buyers. Right now, we are in what is called a buyers’ market. This means that sellers need to be putting a little more effort into selling your home. The good news is that you can make a few changes that are not terribly expensive that will greatly improve the value of your home to buyers.

Kitchen

An updated kitchen can make your house infinitely more attractive to potential buyers. If you are going to invest serious money into your home before selling, this would be the room to make that investment work for you. The return on your investment in kitchen work is going to be greater than any other room in your house provided that you avoid going overboard. You do not have to install top of the line appliances, granite counter tops, or brand new cabinets to improve the value of the kitchen. Sometimes a fresh coat of paint, new hardware, and updated flooring will be more than enough to make an impact.

Bathroom

Another room where you will want to invest a little money and a lot of time is the bathroom. Gone are the days when the bathroom was merely a functional room. Today you need to have a plan for your bathroom. Use light colors and mirrors to make the room appear larger. Install new floorings, and consider resurfacing tubs if they look worn and re grouting tile so that everything looks bright and clean. The important thing about the bathroom is that you want it to look roomy and clean.

Curb Appeal

It really doesn’t matter how gorgeous your kitchen and bathroom is if you can’t get people to pull over and come inside. You absolutely cannot afford to ignore curb appeal in today’s floundering real estate market. People are no longer content to live inside their homes. They want the full benefit of their property and this means the ability to enjoy spending time outdoors. An ugly lawn, cracked sidewalk, overgrown paths, and rain gutters or soffits that are falling apart are not attractive to potential buyers. Even little changes to the general shape of your lawn can have a huge impact on the curb appeal of your home. If you have vinyl siding it is a good idea to consider pressure washing it so that it will look more attractive as well.

There are other changes you can make that will improve the value of your home. A new roof, new furnace or central air unit are good choices but none will impact the resale value or provide the same return on investment that updating kitchens, bathrooms, and curb appeal will have.

Another great way to increase the value of your home is to add a room or bathroom to your home. These types of changes can be quite costly though and may or may not be worth the expense. It’s a gamble if you are interested in selling quickly. If you plan to live in your home for quite a while then the additional bedroom or bathroom might prove to be an outstanding investment in quality of life alone. The most important way to improve the value of a home though is to make improvements that will increase your appreciation and enjoyment of your home.

When it comes to raising families these days it may not take a literal village but there are many communities that offer a little more to attract the average family than others. Below you will read about some of these communities and what they have to offer. You may even find one that is ideally suited for your needs and those of your family.

Nashville, TN

Far more than Music City, Nashville has much to offer families looking for a great place to call home. Not only is there plenty to offer music lovers with free concerts offered regularly there are also plenty of cultural offerings such as museums and festivals to keep the family busy with some wholesome fun and entertainment year round. Education in and around Nashville is top-notch and housing costs are quite reasonable. One thing that Nashville has to offer that seems to be missing in other similarly sized cities is a strong sense of community. If you are looking for a place where your family will feel at home you might want to give Nashville more than a passing glance.

Farmington, MI

Located in closes proximity to the cultural offerings of Detroit and Ann Arbor you will find that Farmington, MI has much to offer the average family. From small town values to a serious community commitment to art, music, and theater, Farmington offers a wholesome and well-rounded upbringing for your children. Perhaps more importantly is that fact that Farmington offers very reasonable property values so that you can afford to live in this fascinating city and still manage to enjoy some of the great entertainment that is at your disposal. It doesn’t hurt that there are often free concerts in the city for families.

Mooresville, NC

Dubbed as “Race City USA,” Mooresville, NC is another great city to raise families. In addition to affordable housing and taxes, there are plenty of modern conveniences that bring in businesses and a prevailing ’small town’ atmosphere that makes this city appealing to families. Don’t think for one second that this means the schools in Mooresville get left behind. There is a major commitment to education in Mooresville. The “Race City USA” nickname came about because so many racing teams are headquartered in Moorseville.

Kansas City, MO

In addition to great schools and community pools Kansas City, MO has a lot to offer the average family. Affordable prices cannot be overlooked in a real estate marketing that seems to be skyrocketing out of control. When you couple that with walking trails, museums, and Midwestern values this is one great city you and your family can call home.

There are many great cities throughout the United States large and small that are great locations for raising a family. Those cities that top the list are generally the very cities that offer affordable housing options, commitment to education, a focus on culture and the arts, as well as plenty of activities to get kids away from their televisions and computers and moving around. Ultimately it is up to you to make the final choice as to which city is best for you and your family. Finances should be a prime consideration, especially the cost of housing. It makes no sense to move somewhere for a better life if you can’t afford to live that life because you are too busy trying to pay your house notes each month.

The Zip Code Guy has a zip code database that gives you a list of US states, counties, zip codes, abbreviations, etc.  It pretty useful for real estate research or marketing.  You can get it for free by posting about it (like what we are doing) or paying $25 for it.

Inman.com has an interesting article on preparing for an adjusting mortgage rate. For some homeowners, their rate might increase up to 40%, making payments very difficult and foreclosure unavoidable.

Tara Nelson offers these 4 tips:

1. Refinance: Only if it the house is a perfect fit for you, and you can handle it for the long-haul.

2. Loan Modification: Ask you lender for creative ways to address your loan. Remember, they will have headaches too if you lose your house.

3. Increase Your Income: Rent rooms, get a second job, etc.

4. Short Sale: This is when your lender agrees to discount a loan balance due to your economic hardship.

The big takeaway is to understand your mortgage and to prepare for any surprises/big changes. Don’t just file your contract somewhere and forget about it.

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When you start looking for your home, you look in the paper or search the internet and see a home you want. Then you go to the office it is listed with, or call the listing agent directly. After all who would know the most about the home and get you a better deal than the one closest to the seller? So you are taken to see the home and make an offer, and get the home.

But was that agent working for you? NO, THE AGENT HAS ONLY ONE CLIENT, THE SELLER. Every word you said was related directly to the seller in order to get the HIGHEST price possible for the seller. You mentioned it was nice and if pushed, you would go to an xxx limit. The agent knows the seller’s bottom line and know knows you can be pushed higher than that. So who made out on that deal? Not you! Since you disclosed all of your personal information, it was relayed directly to the seller. And this is not only true of the listing agent, but all the other agents who show you a home, because they are all obligated to the seller of any house they show you. Unless you have your own Buyer’s agent you are at the mercy of the other agents. You need someone YOU can trust.

When you first go into a real estate office they make you sign a form that states this, but do you really understand? It is like going into court and both attorneys are on the side opposite you.

Now if you were truly represented in this deal, the agent would have worked hard for you to get the best price. But only an agent who is a Buyer’s Agent can do that, one you have signed an exclusive contract with, and not only can they negotiate better for you, but when they find our pertinent information about the seller or the house, that may help you bargain, they are OBLIGATED TO YOU. Only a buyer’s agent can protect your information.

The buyer’s representative also brings to the table market conditions, neighborhood conditions, schools, attractions and other local matters as well as a general overall knowledge about the transaction, all from the buyer’s perspective.

And finally, all agents have access to the same housing database. Only office exclusives are unavailable from that list. But as a buyer agent, that agent is also allowed to bring you to these exclusives, while a regular agent can not other than agents from that particular office. So by running around with different agents, you are really wasting your time. A buyer agent can and will set you up on an email notification list and everyday a list of homes that fit your particular criteria will be sent for you to view. You can choose which homes you want to see ahead of time. So next time you are tempted to run back and forth between agents, think of the advantage of knowing one that will work only in YOUR BEST INTEREST!

Introducing the new Homefinding Book! Since real estate is a exciting yet complex subject with many local variations, we’ve decided to direct this website towards helping you understand and learn real estate. We believe in experts but we believe more in community: that each person has useful information and experience.

So we’ve built new features to allow people - real estate agents, mortgage lenders, homeowners and even hobbyists - to interact with one another and share their knowledge.

1. Community Blog: Read fresh real estate articles from the Homefinding Book community. Find a variety of articles from buying a home, mortgage rates, improving your house, etc. here. Do you want to share? Log into your account, write an article and submit!

2. Directory: Get listed in the directory and allow members to learn more about you. Your profile page and directory listing comes with a 100% free account. Don’t forget to add a picture, a brief description and your contact details (phone, email and website). Using your page, others can find you, your articles and make recommendations on your services. So spend time on your listing.

3. Reputation: We want to foster a community of trust. To enable this, we’ve built reputation into the Homefinding Book. Get reputation points by contributing articles to the community and interacting with the members. This will help everyone find the trusted sources of information within the membership base.

We hope you like the new features and innovation we have added to this website. We know you’re excited and ready to sign-up for an account. But before that, please read the new Community Guidelines we developed.

We always appreciate comment and feedback - you can send those to web@homefindingbook.com.

- David, Homefinding Book