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Tools For Buying
Relocating Tips
According to the U.S. Census Bureau, 40 million Americans moved between 2002 and 2003, and 19 percent of all those moves were to a different state. Moving can be a complicated process, let alone picking up and moving to another state or cross country. One must find a home, schools, perhaps even a job for a spouse, not to mention get a feel for the community before settling in on a new location.
First, Get Organized. When moving many miles away it makes sense to organize a list of the key information required before deciding where to live. Important questions that will need to be answered include:
· What is the cost of living? How far will the new money go?
· What is the price of a similar sized house in the new location?
· What is the community like? What are the crime rates?
· How is the school system?
· What is the noise factor?
· Will this be a good area for my spouse to find work?
· What is the public transportation system like?
· How long will my commute be?
Research. To learn more about the typical lifestyle of the new town, as well as community events and crime rates, get a few back copies of the local newspaper, or log on to the local paper’s Web site. This third party information, together with what you learn from the local Chamber of Commerce, will give you a sense of the personality of the area.
Use the Internet. For perhaps the biggest decision in the entire process, finding a home, the World Wide Web is an invaluable tool. Website visitors can find a variety of community and neighborhood information including median age and income, percentages of married couples and children, recent home sales, and a listing of elementary and high schools with demographic information on the schools.
Local Feel. When you have a chance to physically visit the new city and have begun working with a real estate sales associate look to see how much new construction and remodeling work is taking place. This will tell you whether the neighborhood is popular, and whether current residents plan to stay. Also, have the sales associate take you through the neighborhood “after hours.” See what the neighborhood looks like when all have returned from work and school. If possible, try to have a few conversations with the “locals” near a prospective home. More than anyone, they have their fingers on the pulse of the neighborhood and the community at large. Work With Your Employer. Make it clear to your new employer that your spouse now will be in need of a job. The company likely will have relationships with relocation experts and executive recruitment firms to help in the spousal job search process.
Home Maintenance
You don't think about future maintenance costs when buying a home, but you should. Whether buying an older home or a newly constructed home, equipment can be faulty and costly to repair.
Usually a home's purchase price can be used to project maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home's original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars, it is a good rule of thumb for the average home buyer.
Since most home buyers are focusing on making the down payment and not saving for future repairs, a home warranty provides a good back-up plan.
Most home warranties cost from $300-$400 and will cover many major home systems and built-in appliances for one full year after close. A home warranty will either pay to repair or replace a covered item and the homeowner pays a minimal deductible rather than the full cost of repairs. It's an easy way to manage your home's finances and plan for those unexpected repairs.
Making an Offer They Can't Refuse
When the demand for houses in a sizzling marketplace outweighs the supply of houses available, many consumers think the highest offer is a sure-fire way to claim ownership of their dream home. In today's fast-paced market know that bidding for a house doesn't always require upping the stakes.
Accommodate the seller. As a buyer, you have to be flexible and willing to sacrifice a bit. Whether it's being willing to close one month earlier or later, do your best to meet the seller's desired closing time. Additionally, be willing to overlook the more minor and but less-than-perfect characteristics of a given home because other prospective buyers may not be able or willing to do so. If the seller is under pressure and wants the house sold quickly, they'll prefer to work with the buyer that can accommodate them the most.
Prepare. If you are willing to make the investment, then you must be a qualified, solid, desirable buyer. Get a copy of your credit report and settle any debts that may be outstanding. You'd be surprised how many people get turned down for a loan because of an old debt they had forgotten all about. Get pre-approved for loans and mortgages. The seller wants and needs an ideal buyer, someone who is stable and ready to make a commitment to the property. Going into the negotiation process as a pre-approved buyer puts you at a major advantage.
Connect with the seller. Create a rapport with the seller and let them know why you prefer their house to others. Homeowners are emotionally connected to their home. Even when selling their home, they often feel tied to the integrity of the house. Because the seller loves the house, they are usually inclined to sell it to someone who will love it too.
Clean up your act. Eliminating as many contingencies as possible will give you an advantage when involved in a bidding war. If you have a home to sell before purchasing, sell it first. Reducing uncertainty makes the buyer more appealing to the seller and will create leverage for the buyer.
Show them the money. Be willing to increase the size of your down payment or make an all cash offer. Sometimes the best way to win a bidding war and avoid paying a higher price is to increase your down payment. Sellers favor strong buyers. If you can afford to make an all cash offer, do so. That's almost always a definite way to slam-dunk a sale. |
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