Condo vs. PUD

A condominium is a type of ownership, usually in a multi-unit structure whereby the purchaser receives all of the following:

• Ownership title to a unit
• A proportionate interest in the common area (may have exclusive use of certain limited common areas)
• A condominium is considered a:
  • Low-rise if the project has a maximum of four stories
  • High-rise if the project has five for more stories.
• HOA – Insurance Policy covers the exterior of the building
  • Clients need to purchase a H-06 Policy (condo/contents only)

A Planned Unit Development is a comprehensive development plan for a large land area.  The dwelling may be attached or detached.  The purchaser receives all of the following:

• Ownership title to a unit and a parcel of land immediately located beneath the dwelling
• A proportionate interest in the common area (may have exclusive use of certain limited common areas)
• Buyers need to purchase a full Home Owners/Hazard insurance Policy to cover exterior and interior of the property
• Most common example is a Fee Simple Town Home

The Low-down on Zillow (and other public search sites)

A recurring discussion in my line of work - with both clients, friends, and other agents - is Zillow and the infamous "Zestimate" that they have marketed so brilliantly to the public.  There was a great article written recently about just this, which delves into what this and other public real estate sites can offer you.  I can't begin to tell you how many times a client has emailed me about a home they saw for sale on one of the public sites, only to find out when I look in our MLS that it sold weeks ago.  Or even more common - the Zestimate they see online is a widely inaccurate estimate of their home's value.

Don't get me wrong - the public sites are a good tool for many things. They are a quick way for a consumer to find out what a home last sold for as well as community information regarding demographics, schools, and crime rates. However, they are not particularly great at doing what they claim they are made for, namely helping the public to search for a new home. That's what a Realtor is for!

A good Realtor can quickly set you up with a custom search site that pulls directly from the MLS and therefore is both accurate and up-to-date. Likwise, the only way to get an accurate idea of the value of your home is to have an experienced and knowledgeable agent create a Comparative Market Analysis for you, which is specific to your unique property. Plus we can also provide everything the public sites are decent at with regards to community info, sales history, and market trends.

So all of this is to say: if you would like information about your home's value or you are just interested in what your neighbor's home sold for, contact a Realtor! We are more than happy to help - it's our job, after all!

Preventing Wire Fraud

Thanks to our friends at McManamy, McLeod, and Heller for the following information regarding wire fraud and how to spot/prevent it in real estate transactions!

In the last year since the real estate market has taking a turn for the better, real estate professionals have been targeted in wire scams that typically involve hacking an e-mail address. Hackers will access an e-mail account associated with a real estate agent, the buyer, the seller, and even the closing attorney in order to obtain information about an upcoming real estate transaction. After monitoring the account to determine the timing of the closing, hackers will often impersonate the e-mail account holder and send fraudulent wire instructions to the closing attorney or other parties to the real estate transaction. Sellers are targeted when proceeds from the sale are redirected to the hacker's bank account; buyers are targeted by sending the buyer fraudulent instructions regarding the wire of transaction-related funds to the closing attorney. 

Once the hacker starts monitoring the exchange of e-mails in the hacked account, the fraudulent communication usually includes detailed and accurate information pertaining to the transaction, such as file numbers, key dates, names, and addresses. It is important to note that the e-mails may come from a legitimate e-mail address because the thief is actually sending the e-mail from a truly legitimate, although hacked, account. In other instances, the e-mail is sent from a similar looking e-mail address, but not the actual same address as a party to the transaction. Pay special attention to e-mail addresses when you see changes such as these! 

Real estate agents can take precautions to prevent wire fraud from affecting their clients and their transactions. Educate your clients on wire fraud and make sure that prior to wiring any funds, the wirer contacts the intended recipient via a verified telephone number or in person to confirm the wiring instructions. In that telephone or in-person conversation, the correct account number information should be repeated verbally before taking any steps to have the funds transferred.

6 Things You Need to Know When Buying Home Insurance

Whether you’ve just begun searching for a new place or you’re waiting to close on your dream home, one important aspect of moving you can’t ignore is insuring your investment.

Enter the homeowner’s best friend: the homeowners insurance policy.

Just like any other kind of insurance, there’s no such thing as a one-size-fits-all policy. Home insurance policy costs typically depend on the home’s location and age, the size of the deductible, and the coverage level. You’ll have to look at these and other variables to figure out what kind of home insurance is right for you—and how much you’ll shell out for it.

To make sure you purchase the perfect policy that fits your budget and coverage needs— and to avoid potential pitfalls—we’ve pulled together a list of the most important things you should consider. Let’s take a look.

1. It’s all about location, location, location

Along with size, construction type, and overall condition of the house, location plays a big role in the cost of insurance and types of policies available. But unlike home buyers, insurance companies aren’t checking out school districts, awesome nearby restaurants, or your commute time.

But others factors do come into play. Homes located near highly rated, permanently staffed fire departments (and even fire hydrants), for example, may cost less to insure, says Loretta Worters, vice president of communications for the Insurance Information Institute.

And of course, proximity to the coastline is also weighed heavily. You’re likely going to pay a pretty penny for that idyllic spot near the coast.

“Because of the increased risk of catastrophic weather events resulting in claims, it will generally cost more to insure,” Worters says.

On top of a higher policy cost, coastal home insurance policies could include a separate hurricane or windstorm deductible based on the fees to rebuild a home.

2. You might want flood insurance—even if you think you don’t need it

Damage from flooding isn’t covered by typical home insurance policies. Any home located in an area prone to flooding requires separate flood insurance to cover these kinds of claims. (Flood insurance is available from the federal government’s National Flood Insurance Program as well as a handful of specialty insurers.)

Don’t live in a flood zone? Don’t assume you’re off the hook. Flood insurance may be a smart option for any homeowner, regardless of zoning—and if you’re not in a high-risk zone, you can probably snag some lower premiums.

“Ninety percent of all natural disasters in the U.S. involve flooding,” Worters says. “However, 25% to 30% of all paid losses for flooding are in areas not officially designated as special flood hazard zones.”

3. That goes for earthquake insurance, too

Californians aren’t the only ones who have to worry about earthquakes—in fact as many as 39 states have experienced tremors, according to data from the Insurance Information Institute. And the resulting damage usually isn’t covered by traditional home insurance policies.

Homeowners need to purchase an addition to their home insurance policy to cover

any earthquake-related claims. The cost varies by location, insurer, and the type of structure being covered as well as age of the building, Worters says.

4. Have a pool? Dive into extra protection

Ahh, your new home has a fabulous swimming pool and hot tub. Yay for you! We’d love to come over—but before we do, you should look into bumping up your liability insurance.

Liability coverage is the part of a home insurance policy that may pay court costs or other expenses if you’re found responsible for an accident, such as someone drowning or suffering a serious injury after doing a cannonball into the shallow end of your pool.

Another option: You can purchase an umbrella liability policy to provide a level of protection not typically available with standard home insurance policies.

5. Your home’s claim history matters—even from when you didn’t live there

Whether you’ve just begun your home search or lived in your home for years, it’s never too late to get familiar with your home’s claim history—and how it might be affecting your homeowners insurance rates.

It’s all summed up in a nifty database called the Comprehensive Loss Underwriting Exchange, or CLUE. Essentially the equivalent of a credit report for your home, the CLUE contains all kinds of records of insurance claims on the house.

That’s important to know because a claim filed for the property in the past five years could cause your rates to inch upward, even if you didn’t own the home at the time of the claim.

But take heart, dear home buyer—not all prior claims have a negative effect.

“Some recent claims can have a positive impact, because replacing a roof damaged by a windstorm could make the house more desirable to an insurance company,” Worters says.

If you’re looking to buy a home and want a copy of the CLUE report, check with the sellers (only the owner of a property may access its CLUE report). There’s no guarantee they’ll fork it over, but there’s no harm in asking. If you already own the home, you can get a free report from database giant LexisNexis.

6. A high deductible can really pay off

It should come as no surprise that you’ll want to shop around before committing to a policy. Compare the rates, deductibles, and coverage options of at least two to three companies to make sure you have adequate coverage for your situation.

Pro tip: Pay close attention to the size of your deductible.

“It’s recommended to opt for the highest deductible you can afford because most people only file a claim every eight to 10 years,” Worters says. “A higher deductible saves money year after year and encourages only using insurance in catastrophic situations when it’s truly necessary. And that also helps keep your costs affordable.”

(reprinted from Realtor.com)

6 Steps to Finding Your Dream Home

Some of us have had it and some of us haven’t. We’re talking about that moment when you walk into a house and know right away, “This is the one”; “This is the house that will become my home.” For those of you that haven’t located your dream home, we came up six important factors to consider while you are searching.

1. Think of your house as an investment
   Of course we aren’t saying sell your house as soon as you close, but it’s important to think about the future. Imagine living in your new home for 5 or 10 years. Now imagine all the blood, sweat, and tears you will put into your home during that time. Before purchasing, make sure the house has value, even if it means putting your handy-man hat on and making a few key changes to make it re-sellable. If you feel unsure about the house re-sale value, even with a few modifications, you might want to skip to the next house.

2. Determine your NEEDS first, then your WANTSDo you need a house, townhouse or condo? Are you looking for a large yard or no yard? Do you need to be close to work or school? First, make a list of needs and choose one that you are flexible on. Second, write a list of wants such as garage, old or new, established landscaping, style – traditional, craftsman, modern, contemporary, and so on. Then choose two wants that you are flexible on. If you are unsure about what style you prefer, you can check out this gallery for more ideas. It will be easier to find the right place if you have a direct vision of what you’re looking for.

3. Don’t Break the BankWe all do it. You browse houses for sale and dream about living in that million dollar home, and then say to yourself, “If only I won the Powerball last week.” You have to be realistic though. Go ahead and get pre-approved, set a true budget, and try to stay within $25K.

4. Is Green Important?From energy efficient appliances to local transportation programs, you should think about how important ‘being green’ is for you and your family. If you are a green advocate, then look for these key items: multi-pane windows, plenty of natural light, the EnergyStar logo on water or HVAC systems, solar lights/panels, or non-toxic building materials.

5. Location and CommunityLocation does matter, plain and simple. Think about what city you prefer and pick a few nearby cities or set a certain radius that you could live with. Not only does location fill personal needs, but it can help (or hurt) you when it comes time to sell. So opt out of the noisy intersection with high traffic. You are also buying into the community in which you live, so do some digging on which communities have the most appealing features.

6. Be Flexible and Have FunThe best way to find your dream home is to have an open mind and be a bit flexible. Choose a place that has an open floor plan so you have an option to remodel if you want, or make sure you have an extra room or two that serve many purposes. You might also want to make sure you have enough room to grow or build on at a later time should your family expand. With time, this house will become your home. It will have your décor and reflect who you are as a person, so take your time searching and enjoy the process.

Following these six tips on how to find your dream home are great ways to narrow the search, but it's just the beginning. For more information on homes in Georgia, contact me today so you can start your journey to locating your dream home!

5 Housing Trends That Will Dominate 2016

This year may have marked the best for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one. Realtor.com® highlights the following housing predictions for 2016: 

1. ‘Normal’ is coming. Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com®’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”  

2. Generational buying trends shape up. Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year. But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”  

3. New-home construction focuses more on affordability. Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers. “We are already seeing a decline in new-home prices for new contracts signed this fall,” notes Smoke. “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”  

4. Higher mortgage rates. Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the new year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.  

5. Rents to go up even higher. Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.”

Lending regulations for condos

Thinking about buying (or selling) a condo in 2016? Here are some guidelines to determine if you will be able to secure financing (Fannie/Freddie only, for FHA the entire complex must be FHA approved) compliments of one my favorite lenders, The Moore Team.

1.  We will need a completed condo questionnaire from the HOA or management company VERY soon after going under contract. Please be sure we have a contact for that. This usually takes 2-3 weeks to get back from when we order!

2.  The project must be Established. This means 90% of the units are sold to individual purchasers, the project is 100% completed and is not subject to additional expansion or phases & control of the HOA has been turned over to unit owners.

3.  There is no current litigation in which the HOA or developer is named as a party to the litigation. (This would not include instances where the HOA or developer is solely the plaintiff in a foreclosure or for delinquent HOA dues)

4.  The project is not an “ineligible” type for conventional financing. (I.E. condo hotels, 

timeshares, houseboat, multi-family dwelling unit, legal (but non-conforming) use of land, common interest apartment or community apartment project)

5.  Commercial (non-residential) space cannot be greater than 25% of the project.

6.  At least 51% of the total units must be already sold and closed as primary residences or second homes. Foreclosure units that are currently for sale can be counted as owner occupied primary residences.

7.  No more than 15% of the unit owners are currently more than 30 days delinquent on their HOA dues.

8.  No single entity owns more than 10% of the total units in the project.

9.  HOA budget must have a line item for “replacement reserves” that equals no less than 10% of the total budget. (It is nearly impossible to approve a complex that does not have this!)

10. There are no restrictions which would limit the free transferability of title such as right of first refusal, other deed/income restrictions.

11. Having proper insurance coverage to meet Fannie/Freddie Guidelines

Fed Authorizes First Rate Hike in 9 Years

Earlier this month, the Federal Reserve raised interest rates for the first time in nine years, ending a historic era of nearly 0% interest rates that began seven years ago today. As expected, the outcome of the Federal Open Market Committee's two-day meeting was an increase in the target range of the federal-funds rate by 25 basis points, to 0.25% to 0.50%. So what does this mean?

• The Fed’s recent .25% rate increase directly affects the Prime Rate, which is now up to 3.5%. Virtually all Home Equity Lines of Credit are tied to Prime, meaning HELOC payments will be higher in January.
• On a positive note, the Fed’s rate increase is pushing savings rates up. However, expect credit card rates to push up, too.

This change comes in the wake of months of rising house prices, an unemployment rate that has now fallen to pre-recession levels, and the strongest housing market we have seen in years. Even with the rate hike, interest rates are still historically low.

• According to Zillow Real Estate research, the breakeven point when buying a home becomes financially better than renting a home after only 1.9 years.
• Also, according to Zillow, the average income needed to support a rent payment is at the highest level ever, whereas the income needed to purchase a home is near an all-time low.

The FOMC forecast that the appropriate rate at the end of 2016 would be 1.375%, implying at least four rate hikes next year.

It anticipates that the economy would evolve in a way that warrants gradual rate hikes. Now that the Fed has made the first move, the pace of future rate hikes would become the focus of markets going forward.

TRID changes

All of my new buyers will receive a copy of this flyer in their Buyer packet (compliments of the wonderful Moore Team at Shelter Lending), but I thought it was worth sharing this very helpful information about the upcoming TRID changes and how it will impact the purchasing process.  

Perhaps the piece we are all the most worried about are the new timing requirements, which have the potential to delay closings (a major problem if there are back-to-back closings involved!). The biggest change is that the loan can’t close until the Lender has sent the Borrower the final Closing Disclosure (CD), confirmed the Borrower has received the CD, AND then waited for the 3-day waiting period to pass.

Example: If closing is on a Friday, the Buyer’s “confirmation of receipt” must be received by 11:59pm on the prior Tuesday. If the CD changes, the 3-day clock may have to be restarted. This will cause many closings to be delayed.

Due to these increased timelines, my lenders are recommending an appraisal contingency of 25 days, financing contingency of 35 days, and closing at least 45 days out.

Key action items for the Buyer are:

• Submit a pre-approval application before making an offer to minimize mortgage processing delays
• Give the Sales Contract to the lender as soon as it is available
• Use e-mail to electronically sign the loan disclosures, including the LE, to expedite the process
• Give the Lender your “Intent to Proceed” as soon as possible after receiving the LE
• Pull together and deliver your requested loan docs to the lender during the first week of the process
• Confirm receipt of the CD immediately after receiving it to start the clock ticking on the 3-day waiting period

For more information about how these changes might affect your home purchase, please call or email me today!

Big lending changes coming

The new TRID changes are set to go live October 3rd and we are anticipating potential issues industry-wide due to the new requirements and 3-day waiting period if there are any changes to the settlement statement prior to closing. It is even more important to make sure you are working with an experienced lender who understands these new changes and how to work within the parameter.  Below is an excerpt from Realtor.com regarding the upcoming changes. You can read the full article here. 

Mortgage lenders and real-estate agents are bracing for the Oct. 3 implementation of a five-year-old law that has forced them to overhaul the way they process sales.

The changes, prompted by the 2010 Dodd-Frank financial law, are meant to help consumers better understand the terms of their mortgages before they sign the dotted line.

But some in the real-estate industry worry that the rest of the year could be marked by delayed closings, frustrated borrowers and confused real-estate professionals as they adjust to the new rules.

At heart, the changes simplify forms long required by the federal government that disclose loan terms, such as a mortgage’s interest rate and prepayment penalties. The rules also require that consumers see the final terms at least three business days before closing, a change meant to ensure they have time to understand what they’re agreeing to.

The reform is meant to prevent what occurred during the housing boom, when some borrowers agreed to loan terms they later found they didn’t understand, such as low initial interest rates known as teasers, loan balances that could increase over time and balloon payments due after a certain number of years.

It's been a busy year!

2015 has been a banner year! 

Here is just a quick glimpse of what I have been up to!

Roswell Country Club

Roswell

Marietta

Smyrna

West Midtown

Old Fourth Ward

downtown Decatur

Smyrna

Sandy Springs

Woodstock

Roswell

Indian Hills Country Club (East Cobb)

West Midtown

Berkeley Hills Country Club (Duluth)

East Atlanta

Norcross

Woodstock

Burckhead

Indian Hills Country Club (East Cobb)

Marietta

Horseshoe Bend Country Club (Roswell)

Brookhaven

My listings have been selling for over 99% of list price and in less than 20 days. 

Thinking of selling? I would love to help!  

Good Fences Make Good Neighbors

I recently had an issue arise when a buyer had a survey done and a fence that was thought to have belonged to one property owner actually sat partially on the property of their neighbor. This caused the sale of the home to be postponed while they tried to sort out the issue, which was stressful for all parties involved.  In light of that, I thought I would share some pertinent info on the subject.  This is also the part where I say GET THE ENHANCED TITLE POLICY when you purchase a home! It helps protect you in situations like this!

1. A neighbor builds a fence and a portion of the fence is on the owner's property.  What should the owner do?

• Request that fence owner move the fence onto their property, or

• Enter into an Easement Agreement allowing the fence to remain, but the owner retaining the right to request the fence be removed at any time the owner requests.

• Nothing.  This may result in the loss of property over time.

2. An owner wants to build a privacy fence.  How high can the fence be?

• Most all jurisdictions have limitations on the height of fences, usually six feet for back and side yards and four feet for front yards.

• In order to build higher, a "variance" would have to be applied for and approved.

 3. A neighbor has built a fence higher than allowed by the local ordinance.  What can an owner do?  

• Inform the neighbor of the fence ordinance.  The neighbor may not otherwise know the law exists.

• If the neighbor still does not conform the fence to the local ordinance, call the local zoning or planning office and they will take action to seek conformance.

 4. A neighbor's fence is unsightly. What can an owner do?

• Check the local ordinance to see if the fence is in conformity.  If not, see (3) above.  

• If in conformity, but ugly to you, there is nothing that can be done unless:

• There are restrictive covenants in the subdivision restricting fence designs, or

• The fence poses a danger because of its design or condition, or

• The fence is dilapidated.

In these cases you may have the ability to have the fence removed or redesigned. 5. An old fence used by both owners sits directly on the Property line?  Who owns the fence?  

• The fence belongs to both parties, neither can remove it without the others permission and both are responsible for maintenance.

If a conflict arises over any fence issue, the first step is to try to understand the law and then to contact the neighbor to discuss remedying any situation.  In any of these cases, a lawsuit should be your last resort.  

8 Avoidable Mistakes 1st Time Buyers Make

Some good tips in this HousingWire article! In particular, I see first time buyers make mistake #5 quite a bit, which is why I always stress Location, Location, Location! It is a cliche for a reason: location is the ONLY thing you cannot change about a home after your purchase it, and it has the longest and most significant impact on both value AND consumer happiness down the road.

The last thing a first-time homebuyer wants to do is mess up the entire homebuying process by doing one of these common mistakes. 

Yet, they continue to make them.   

Listen, buying a home is one of the biggest financial decisions a person will make,  and all it takes is one bad or misinformed decision to mess up the entire process. 

So, stop. 

Movoto complied a list of 10 common mistakes first-time homebuyers make.
After perusing the list, HousingWire condensed the mistakes into 8 things that could ruin the homebuying process: 

1. They don’t watch their finances before buying a home
This would include watching your credit, taking on too much debt right beforehand or making a big purchase right before closing. 

Debt-to-income ratio is a huge deciding factor on credit scores and it’s one of the first things that lenders look at when putting your mortgage together. Lenders want to know how much debt borrowers have already accumulated against their income. The more debt the borrower has, the less of a loan they will be able to get. 

Many people don’t realize that lenders look at all financial information again before closing occurs to make sure that nothing has changed. And that debt-to-income ratio that they used to create your mortgage in the first place is one of the first things they’re going back to check. So, hold off on any plans to buy a new car to park in that new driveway or furniture to fill the house. 

2. They don’t take the time to get pre-approved before house hunting
It’s easy for homebuyers to assume what they can afford and to just start looking without taking the steps through the lender first, but it’s not the smart move. Most real estate agents won’t show potential homes without a prequalification letter to in hand. And some won’t do anything without the pre-approval. 

3. They take on more than they can handle financially
Many first-time homebuyers make the mistake of assuming that just because they can afford the house that means that they can afford to live there. That’s not always the case. There are many extra costs associated with homeownership that often get overlooked by someone who is new to the game. 

4. They get into a fixer upper they don’t have time or money to fix
Fixer uppers can often seem like a great savings. Home renovation shows can do that to anyone. The problem is, though, that most people don’t have a production company budget and a huge crew behind them working around the clock to get the jobs done. Without money and time, fixer uppers stay fixer uppers. Not only can the novelty wear off fast, but what seemed like a huge savings quickly starts to look like a giant money pit. 

5. They prioritize the home over the neighborhood
When people start looking for that dream home in their dream neighborhood, many realize just how far outside their budgets dream homes can be, especially in big cities and affluent suburbs. It’s tempting to continue to look for that same dream home, just in a neighborhood that might not be as good. 

6. They put all their eggs in the online basket
The Internet has become an invaluable tool for home buyers. Searching through homes, researching neighborhoods, getting your credit score, and finding out what lenders are prepared to give has never been so easy. However, it’s still not as good as getting a reputable team of professionals who can physically meet with or at least speak with you in your corner. 

7. They spend all their money on the down payment
Putting down a 20% down payment on a home is often mandatory these days unless you’re interested in paying mortgage insurance. Many people save and scrape every last dollar they can get together for years in order to meet that 20 percent down payment figure and then as soon as they reach it, they go through the home buying process. Many people empty out their savings in order to meet the down payment, leaving themselves with nothing left over. 

8. They skip the home inspection
Skipping the home inspection might seem like a quick and easy way to save money for some people. The novelty and excitement of a new home make some people feel like there’s nothing that would possibly change their minds about wanting to buy it. That is until you’re moved in and realize that there are major and very costly maintenance issues such as mold, termites, a leaking roof, electrical issues or foundation problems

5 Tips for finding your new home online

The statistics show that 90% of buyers start their home search on-line. I'd argue that statistic and say that the only person NOT looking online is probably my mother. But with all the World Wide Web at your fingertips, how do you sort through all the information to narrow down your choices?  Here are 5 tips for using Remax.com's excellent search site to help you find your dream home:

When you’re ready to start your home search online, don’t let the sheer volume of listings overwhelm you. Below are some tips to help you narrow down your search results on remax.com and make it much easier to streamline the list of homes you want to visit. 

1. Be smart about pricing.

By now you’ve probably already contacted a lender to figure out exactly how much you’re preapproved to borrow for your new place – and then from there determined how much you’re actually willing to spend on a home. (What you can borrow oftentimes is higher than what you might be comfortable spending.) When you begin your search online, the absolute high-end of your budget isn’t the figure you should enter into your search criteria. 

In today’s competitive market, many buyers find themselves in the middle of a bidding war to secure their dream home. Houses can sell for several thousand dollars more than the original asking price. It might be a good idea to go into your online search knowing you could end up paying more for a home than it’s listed for online. With this in mind, set the price search filter lower than your true maximum price. This way you have some flexibility to compete and increase your offer if other buyers submit offers on your top pick. Another way remax.com helps in your search is to automatically show the newest listings at the top of your results, giving you the opportunity to get your bid in as soon as possible. 

2. Consult the map.

You’re looking at pictures of the perfect house. There’s a fenced-in yard for your dog. The garage has plenty of space to store your camping gear. Your kids will love the Jack-and-Jill style bathroom. But just as you’re about to contact the agent, you notice a deal-breaker – your commute to your new job would take twice as long as you wanted. 

Avoid the heartbreak of discovering the perfect home is in a less-than-perfect location by using the remax.com mapping functions. After you filter properties based on pricing, number of bedrooms, and other criteria you set, this function shows homes as pins on a map. You can zoom in to focus on homes within walking distance to your kids’ new school, for instance, and you’ll also get an idea of what restaurants and other amenities are nearby. Plus, you can create a My RE/MAX account to access additional features like INRIX Drive Time, which shows commute times to and from a property at various times throughout the day. 

3. Remember, photos and videos are only 2D.

Although it’s true that agents can do a great job of capturing a home’s character in photos and videos, there’s still only so much these images can convey. Maybe the neighborhood is described as “secluded,” but it’s still close enough to hear the train come through town. Or when you look closer, you’re unsure if the cabinets are maple or oak. 

These types of uncertainties are why it’s important to see a home in person before you make a decision to buy. Your real estate agent will happily schedule showings for you. But if choosing an agent isn’t something you’re ready to do right now, there is a way to see properties and start narrowing down your wants, needs and options: open houses. On remax.com, you can filter search results to see homes with an upcoming open house. The feature also posts the dates and times you can stop by to see the properties in person. 

To get an even better feel for the area, you also can view demographic data and browse a neighborhood overview. 

4. Search your top neighborhood choices.

Make a trip across almost any city and you’ll encounter several different pockets of culture and attitude. One part of town might pride itself on being the historic city center while another is all about modernism. Perhaps the reason you’re in the market for a new home is that you want to shift to the lifestyle a specific neighborhood offers. To search for a specific area on remax.com, type the name of the area you want to live in, followed by “Neighborhood” and the state you’re looking in. If the neighborhood you’re looking for is listed (many, but not all, neighborhoods will appear), you’ll see search results showing all available properties in that area. Now that’s convenience! 

5. Balance character with upkeep.

Another important search feature is the age of the property. Deciding whether or not you’re interested in purchasing an older home is a perfect example of how the wants and needs in a home differ for each buyer. You may have always wanted a home with exposed brick inside, but are you willing to pay to update the older plumbing that might come with it? Whether you’re open to taking on maintenance that may come with an older home or you’d rather avoid projects altogether and stick to brand-new homes, the “Age of Home” filter on remax.com can help you narrow down your search results. 

Just because you’re starting your search online doesn’t mean you have to go it alone! Contact me today to help me guide you in your home search – both online and off.