Red Flags To Look Out For When Buying A Home

Buying a house is supposed to be a fun and exciting time. The problem, however, is that because we want to buy a home so badly, we sometimes don’t see the flaws the property has. Although we do sometimes fall in love with a property, we should never purchase it without running a few necessary checks. Let’s take a look at a few of these red flags.

First and foremost, check the neighborhood. It cannot be underestimated how important it is to check on this. The community is either growing and decline and you need to find out which one it is. Signs of decline include numerous boarded up businesses and foreclosed homes. Make sure you visit the area on two different occasions. This is also a great way to find out what traffic is like. Make sure you come during an evening once as well, so you can find out whether there is any noise pollution or traffic problems when it is supposed to be quiet. Speak to the police and ask for statistics on local crimes.

Now, you need to see how the property was looked after. You should be able to tell whether it was maintained regularly. A home that is run down on the outside will probably be in a similar state on the inside. Make sure to inspect the wiring. Real issues can only be identified by a qualified professional, but you can get a good idea yourself. Flickering lights and hot outlets are major red flags. Similarly, if you notice that there is a single wall, or just a few walls that have been painted very recently, where others haven’t, the owners may be hiding something. Also look at the windows. If there are signs of condensation or windows don’t open properly, it could be a sign of serious damage that will cost you a lot to repair.Naturally, never view a property that you are not allowed to see in full. If there have been any structural changes to the original property, you need to check whether these were done in accordance with various building regulations.

When push comes to shove, you are the only one who can work out whether or not you want to purchase a property. Plus, it is certainly true that a home with problems is often a home that can be sold at an even greater discount. On the other hand, if you then have to pay even more money to fix it up, or if you can never sell it again, then it was a waste of money. A home is a place where someone, either you or a tenant, will have to live and this means it does have to be an enjoyable property to seem extent. Although it is certainly true that you should look into the condition of the actual property, focusing on the neighborhood is equally important. A property inspector is all you really need in order to look into the condition of the actual property after all. When it comes to checking out the neighborhood, however, it isn’t so much about cold, hard data, but rather about personal feelings and emotions and whether or not you like it.

Why You Should Be Considering Real Estate Investment

Why You Should Be Considering Real Estate Investment

Rental properties can make for a very lucrative investment. However, there are quite a few things you should know about if you want to be successful. Rental properties in particular are still overlooked by many investors, even though they can bring in an excellent return.

Try to see rental properties like a stock market. Although most of us aren’t stock brokers, we do tend to have an understanding of the system, and we know that we have to spend money to make money. However, whether or not stocks will perform well simply cannot be determined properly. The same is true for retirement calculators, who simply “guess” when we will die. As a result, we may end up broke if we live slightly longer than expected.

Investing in real estate, therefore, shouldn’t be about the appreciation, but rather about the cash flow. Calculating your cash flow means you need to work out how much money from your rental is left after you have paid for all the necessary expenses. If you can, try to leave your cash flow alone in a bank account to create significant savings. Additionally, as your rent goes up over time, so will your cash flow. If your mortgage payments stay the same, then your cash flow will be even better. The best cash flow is at least 20% of your overall income from the property. There are some great online resources in terms of calculating your cash flow.

If you don’t have a lot of money to put down, you will find that it is easier to invest in rental properties if you are younger. Banks will generally want at least a 20% deposit before giving you a mortgage. 20% can equate to a lot of money, particularly if you will also need to do repairs. However, those who are younger can often get better deals on mortgages, as they have longer to pay them back. There is a lot more to real estate investing than this. Finding the property is an entire enterprise on its own. Finding a property involves a whole lot of research and analysis as well. You also need to spend some time looking for a realtor that can represent your interest. They will help you to find the best properties for your needs. You will then need to look into what it means to be a good landlord, something that will take a considerable amount of time to learn. Don’t let this put you off, however.

Inside Main Requirements When Looking At Selling a House

A Peek At Crucial Aspects When Looking At Selling a House

A lot of people are beginning to invest in real estate so if you have any plans of selling your property, you must do it now. The only problem is that it’s very tough to sell a house.

You might have seen a lot of articles saying that selling a property is simple or you have seen some ads informing you that they can sell your property within a specific amount of time. If you’ll opt to reduce the asking price of your house, it will be more desirable to the customers, but it’s not an advisable thing to do.

In the real estate market, the supply outstrips the demand, but there are many methods on the best way to effectively sell your home. We’ll give some ideas on how you can do this efficiently.

Check The Curb Appeal of the house

First impression lasts so your property should give an excellent impression to the buyers once they pull up in front of the property. You could place yourself in the shoes of the customer and see if the curb appeal of your house is good enough to draw in buyers. You have to figure out if the house can offer a great impression to possible buyers or it needs maintenance.

The possible customer will first see the outside of your home and you have to know that they always pay attention on how the house looks outside. You should get everything ready in the house and fix everything.

Do Some Renovations In Your house

You need to make the essential upgrades inside and outside of your house to make sure that you may attract the customers. They always want a total package when buying a house so you should make certain repairs. If you’re the seller, you should make certain that everything is fixed. Nevertheless, you must not over improve your home because some upgrades won’t really make a big difference to the asking value of the house. Improvements will absolutely enhance the value of the house together with its chances to be sold, but you can’t make any renovations that could not provide any benefits to you. You must do your research and put money in the things that can offer the best ROI.

Remove The Clutter

Some individuals will claim that adding some design to your property will make it appealing, but personal items, collectibles and other art works should be eliminated because they will not help you sell your property.

The best thing to do is to get rid of them all and leave out the required furniture to make the rooms larger. The goal here is to enable the buyers to picture themselves living in the house that you’re selling.

They will begin pointing at every part of the house while visualizing what they need to put there if they will buy the house so you should make sure that unneeded and personal items will probably be eliminated.

Sell For a Competitive Value

If you’re likely to sell a home, you need to be sure that you’ll put a competitive value for the house. If you’ll place a lower value, this will probably be the same as leaving money on the table and if you place a high value, the customers will ignore it. When you talk about home buying, the customers will take a look at similar houses and compare the prices. If it is too costly, they will not buy it.

You must keep in mind that most of the customers are counting on home financing so they will not really consider a house that is too costly. If the value is low, you may sell your house faster, but your investments will not be returned to you.

Find a Real Estate Agent

You’re making a major mistake if you believe that you may sell your house by yourself. If you are not a professional real estate agent, it’ll be challenging because you don’t have the knowledge and experience to do it. In case you’re likely to do this on your own, there is a chance that you will not be able to sell your house or you will not obtain a great deal. You may get fortunate and obtain an excellent deal for the house, but you cannot rely on luck when you are selling a property because we’re referring to a huge amount of money. You must employ an agent and permit them to do everything for you. You’ll need to pay them, but this is a lot better than getting a bad deal since you don’t have any idea what you must do.

In case you’re likely to sell your house, it’s best to follow these simple suggestions so you won’t make any mistakes. They might be very basic, but you may assume that all these will help you sell your house quickly.

Decisions, Decisions. With So Many Property Types Available, Here’s How To Decide If a Townhouse Is The Right Choice For You

When one starts looking for a home, usually the first question they ask themselves is what type of home to buy; should it be a single family home, an apartment rental, a condo? The options can be difficult as there are pros and cons to each. New homeowners may find that townhomes offer a middle ground between expensive single-family homes and less-private condominium units. Here are some pros and cons to help you decide.

What is a townhouse?

A townhouse is part of a planned development; generally there is one common wall with your neighbor and own property from the ground to the ceiling. Townhomes usually include individually owned front and back lawn, but also common areas like pools, parks or gym.

Pros to owning a townhouse

The homeowners association will take care of some maintenance. This makes it good for those who want more free time or don’t enjoy maintenance tasks. The developments also usually include certain amenities, like a pool, park, playground, clubhouse, community library, gym or recreation area. Townhomes usually do not cost as much as single-family structures because of the shared foundation and walls. You hold legal title to the property and land where you reside. In addition, property taxes and mortgage interest payments on a townhome are tax-deductible.

Cons to owning a townhouse

A homeowners association usually governs townhomes, so you have less independence in making certain decisions about your property and even specific unit. This can limit your ability to paint your home a certain color, add sheds or even park certain vehicles in your driveway. The homeowners association will also require fees for upkeep of the common areas and property.

You are also responsible for the property’s real estate taxes in full. Furthermore, most townhomes offer less privacy and more limited yard space than single-family homes. Your living space is also more vertical than horizontal in most developments, so you will have to walk up stairs to get between different living spaces. Resale of townhouses is also usually more difficult than for a single-family home.

Despite the complications and potentially high costs, townhomes often offer the most attractive option in urban or near-urban areas. If you are considering buying a townhome, weigh the benefits and limitations carefully, and talk to your realtor and mortgage professional to be sure that you know all the details and obligations involved in ownership of a town home. For further reading, see: Single-Family Homes vs. Attached-Unit Homes, and, What is the Difference Between a Townhome and a Condo?

What If Issues Arise Post-Sale? Who Is Responsible For The Damages Financially? Do You Have a Recourse? Maybe So

Unfortunately, sometimes after a buyer purchases a home, problems begin to arise shortly thereafter. This is always an unexpected, and frustrating event. It can seem incredibly unfair. After all, you feel like you had no idea about that problem when you purchased the house. There are some situations in which you will be able to settle the issue without involving attorneys and judges. In other cases, you may have to go that route. It will always depend on a case by case basis, as every issue will be different.

Keep in mind, that you probably knew the house was far from perfect when you purchased it. Most houses aren’t, and just about all homes on the market are going to need a little TLC put into them. Either way, you’re probably wondering who should have to pay financially. Is it the buyers fault? Is it your fault? A lot of questions arise when the new homeowner finds himself in this situation. There are some issues that are not a big enough deal for the seller to be responsible. See: Home Selling: Are the Sellers Responsible for Any Repairs After the Closing?

For example, if you notice one of the paves on the hardscape is cracked. This is not something you should even think twice about making a fuss over. Normal aging to a house is not something you can blame the previous owner for. These are just the responsibilities that come with owning a home. So, who is responsible in the event that the issue is a major one? Well, you can’t sue the whole world. The persons responsible may be:

The seller. They aren’t typically obligated to delve deeper into problems. However, if there is an issue that the seller flat out denied a specific issue, then you need to be able to prove that the seller did in fact know, but withheld the information or the severity.

The seller’s agent. Some areas actually have laws that make the sellers agent liable if any issues were not disclosed. This seems like an unfair rule, but it is a harsh reality. Agents can sometimes get the short end of the stick here, as the seller could have also omitted the truth from the agent as well as the buyer.

The inspector. They should have noticed any and all problems. After all, that is the point of an inspection. If they missed an issue that any other inspector would have and should have caught, then the inspector would most likely be held accountable. Read over the inspection report for details on the issue. You may have a case, if the following situations are present:

•The defect was there before you bought the home. 
•It’s not an obvious defect that you could have seen yourself before buying.
•No one told you about the defect before the sale, or someone actually lied to you about it.
•You relied on the lies or nondisclosures.
•You’ve incurred monetary damage as a result. Your costs of repairs or related damages.

Wondering What Type Of House To Buy? Here Are All The Options, So You Can Have All The Information You Need To Make The Right Choice For Your Needs

A single-family home is just what it sounds like. It’s a separate home meant for only one family. Specifically, it means the house isn’t attached to any others. Certain neighborhoods may have homeowners associations, but in most instances, the owner is responsible for upkeep costs of the home and the yard. p199crv1rmdrh10g01thg1d1n6spa

A townhome is similar to a single family home but generally you share a common wall with a neighbor. Townhouses may or may not include attached garages. There also may be shared common areas like pools, parks or playgrounds. You, of course, pay a fee to the association to cover the upkeep.

A condo, or condominium, is a group of homes where the homeowner owns the air between, but not the actual, walls, ceiling or floors of the unit. So this means that usually the homeowners association will be in charge of things like cleaning the windows, repairing pipes and maintaining common areas like fitness rooms. Condo owners share ownership of those common areas. ud3

A co-op is perhaps the most confusing of the options. That’s because co-ops aren’t considered real property. When you buy into a co-op, you actually become a shareholder in a corporation that owns the property. The property is usually a multi-family building and as shareholder, you are entitled to exclusive use of a unit in the property. The board of the co-op has a lot of control over decisions relating to the building, including often approving potential new owners before allowing them to buy in.

How much space do you need?
You may need to look for a big place if you have a lot of pets or children. In most places around the country, this means a single-family home. If you don’t need a lot of space, or you’re willing to trade some square footage for the perks of city living, consider a condo, co-op or town home.

Are you DIY-obsessed?
With a co-op, condo or townhome in an association, you’ll be limited in the changes you can make to your place. You’ll need to get approval for any construction you do, which can be a hassle. If you’re dying to unleash your inner home improvement guru, a single-family home is your best bet. Gorgeous_Home_of_Painter_Iceland_interiors_afflante_com_0

Can you handle co-op board drama?
When you interview to join a co-op building, they will ask you many questions such as whether or not you have a pet, if you stay up late, whether you have any children, and if you make lots of noise. The approval process for these buildings is notoriously tough. It isn’t unheard of for sellers to sue their building’s co-op board for rejecting too many applicants and holding up the sale of a unit that’s on the market.

Even people with plenty of money get rejected. When a co-op board rejects your application they don’t have to tell you why, and unless they’re careless enough to give you a reason that’s outright discriminatory, you won’t have legal recourse. For further reading, see the 4 Types of Houses You Can Buy, and read about 8 Questions That Predict What Types of Houses You’ll Buy.

Is Dealing With a Short-Sale House Worth Your Time? Could Be. Read On To Find Out Whether Or Not You Should Fool With a Short-Sale Property

Bank lenders only will let a homeowner do a short sale if it is going to cost them less than it would to foreclose on the house. Also, if a finance company has a lien on the house, that company has to accept the terms or they can demand payment from the borrower. Basically, it is up to the financial institutions and the primary lender as to how much the owner will be let off the hook, if at all. Here are some ways to navigate through the process of buying a short-sale house

Know that what you’ll have to do is bring an offer to the bank that makes it hard for them to turn down. Usually, the buyers they’ll take are the ones who put down a big down payment, have gotten approved already for a loan, and place little to no contingencies on the offer. Banks have separate companies that deal with the short sales for them.

You’ve got to have someone on your side that also is familiar with short sales, and knows how much you should offer, and if you should deal with that specific house at all. Don’t just hire any realtor. It must be one that has experience in this area of real estate. You might have trouble finding a real estate agent who knows how to go through these sales, but it will be worth it. Also have a real estate attorney on hand for any questions that confuse you within the contract. 

You’ll also have to know when exactly to walk away. If the lender seems very hard to work with, or is being very unfair regarding the terms, it might not be worth the sale. Only buy a short sale property if you can get an excellent deal, with contingencies that (for the most part) work to your benefit. For further reading, see this article on Buying a Short Sale Property, and, Buying a Home in a Short Sale Can Be Profitable.