There’s no need to downsize your ego when you downsize your house. A more petite palace can offer many advantages and be a place of comfort and joy for you and your family. If you are considering the purchase of a smaller home, rest assured that this decision can have many benefits that go beyond a lower mortgage payment.
Environmentally Friendly
Reducing our consumption of the earth’s resources is a responsible decision. Smaller homes require less energy to heat and cool and less materials to build and maintain. There will be more room on your lot for plants and trees to grow with a smaller home.
Less Work to Maintain
Whether you do the work yourself, or hire someone to do routine maintenance chores for your home, you will save time and money with a smaller house. Think how much quicker and easier it will be to paint or install carpet when there are less walls and floors to be covered. Since the job will less intimidating, you may be inspired to do some projects yourself that you would normally pay someone else to do.
Saves You Money
A smaller home will result in more money in your pocket. Property tax, insurance payments, and utility bills will all be less in a smaller home. This can leave you more money to pay towards the principal, thus increasing your equity more quickly.
Easier to Decorate
It can be fun to decorate a smaller home. When space is at a premium, furnishings and accessories can have more impact, instead of getting lost in all the space of a larger home. You will need less furniture, window coverings, and pictures.
Saves Time Cleaning
Who wants to spend all weekend cleaning bathrooms, dusting, vacuuming, and mopping? More square footage means more time spent performing these chores that can seem like drudgery to the most committed housekeeper. Wouldn’t you rather have a little less housework and a little more free time?
Forces You to Be Organized
Living in a smaller home often means less room for storage; this is not necessarily a bad thing. Almost everyone owns too much stuff and could stand to purge their belongings of unnecessary junk. It is very liberating to be free of deep dark closets full of unknown items you may not have touched in years. We could all use some discipline when it comes to purchasing unneeded goods, and a smaller space will force you to think twice before bringing these things into your home.
A Cozier Space
Small homes can be incredibly cozy. Families that live in close spaces must learn to cooperate and be considerate of others. Children often prefer to share a bedroom with a sibling, and sharing a room will encourage closer relationships as well as time spent playing together.
You Can Afford Better Quality
Perhaps quality is more important than quantity to you. A smaller, more affordable home can leave room in your housing budget for those granite countertops, Berber carpets, premium hardwood flooring, or whatever suits your fancy.
So, can your family live happily in a smaller home? The answer is a resounding yes! Purchasing a smaller home can save you money and lead to a better quality of life as well.
© Allison Van Wig
Showing posts with label Buyer Information. Show all posts
Showing posts with label Buyer Information. Show all posts
Friday, June 26, 2009
Thursday, June 25, 2009
Why Should I Consider Getting a Home Inspection?
This article offers three reasons to pay for the cost of a home inspection prior to buying any home. The home inspection is an upfront cost that you may be tempted to skip because you are tight on money during the home-buying process. You may have determined that you are going to save all your money for the down payment and the closing costs. Shelling out $300-400 for the home inspection can save you a lot of money in the long run.
The first reason to pay for a home inspection is the risk of hidden costs. If you don’t know what repairs and upgrades that your prospective home really needs, you can get stuck with a lot of costs after the seller has sold you the home. Here are some examples of hidden costs that the home might need: a new roof, a new water heater, termite mitigation, or a new air conditioner. Each of these upgrades or repairs could cost you thousands. For example, a new roof typically costs upwards of $7,000 and a new water heater can cost more than $500. If you are prepared to make these expensive improvements and repairs, then you might forego the home inspection. However, if you can afford expensive repairs, then you can afford the home inspection. Most homeowners are not likely to have sufficient cash to make repairs and replacements on their home, especially right after paying the down payment and closing costs.
The second reason to invest in a home inspection comes from the National Association of Certified Home Inspectors. You need to find a good inspector with the proper credentials. NACHI recommends not to purchase a cheap home inspection because the cost “is very small relative to the home being inspected.” NACHI points out that you will pay only a little bit more to hire a certified home inspector. You can expect that a certified inspector adheres to the standards of the profession, providing you with the best objective evaluation of the home you want to purchase.
HUD provides the third reason it is imperative to get a home inspection. You should “make your offer contingent upon a home inspection.” What this means is that you are going to use your realtor or buyer’s agent to make an offer for a home. When you make the offer, the written language of the document should include that your offer is contingent upon the successful completion of an independent home inspection. The laws vary in each state, but generally once your offer is accepted by the seller, you become obligated to buy the home. If you want to get out of the contract later, it can cost you money, including in some cases the forfeiture of your initial deposit.
Think seriously about all the benefits of getting a home inspection. The drawbacks of not getting one are so expensive. The initial investment of $400 is worthwhile. A home inspection by a certified inspector comprises one of the best ways you will ever spend your money when buying a home. If you have any questions give Realtor Allison Van Wig at Keller Williams Realty a call (562) 882-1581.
© Allison Van Wig
The first reason to pay for a home inspection is the risk of hidden costs. If you don’t know what repairs and upgrades that your prospective home really needs, you can get stuck with a lot of costs after the seller has sold you the home. Here are some examples of hidden costs that the home might need: a new roof, a new water heater, termite mitigation, or a new air conditioner. Each of these upgrades or repairs could cost you thousands. For example, a new roof typically costs upwards of $7,000 and a new water heater can cost more than $500. If you are prepared to make these expensive improvements and repairs, then you might forego the home inspection. However, if you can afford expensive repairs, then you can afford the home inspection. Most homeowners are not likely to have sufficient cash to make repairs and replacements on their home, especially right after paying the down payment and closing costs.
The second reason to invest in a home inspection comes from the National Association of Certified Home Inspectors. You need to find a good inspector with the proper credentials. NACHI recommends not to purchase a cheap home inspection because the cost “is very small relative to the home being inspected.” NACHI points out that you will pay only a little bit more to hire a certified home inspector. You can expect that a certified inspector adheres to the standards of the profession, providing you with the best objective evaluation of the home you want to purchase.
HUD provides the third reason it is imperative to get a home inspection. You should “make your offer contingent upon a home inspection.” What this means is that you are going to use your realtor or buyer’s agent to make an offer for a home. When you make the offer, the written language of the document should include that your offer is contingent upon the successful completion of an independent home inspection. The laws vary in each state, but generally once your offer is accepted by the seller, you become obligated to buy the home. If you want to get out of the contract later, it can cost you money, including in some cases the forfeiture of your initial deposit.
Think seriously about all the benefits of getting a home inspection. The drawbacks of not getting one are so expensive. The initial investment of $400 is worthwhile. A home inspection by a certified inspector comprises one of the best ways you will ever spend your money when buying a home. If you have any questions give Realtor Allison Van Wig at Keller Williams Realty a call (562) 882-1581.
© Allison Van Wig
Why Buy during a Recession?
There are many reasons that you may want to consider buying your home during a recession. Of course, this is not something that you want to wait around for. If you are lucky enough to be purchasing during a recession then you are going to be able to get a good deal. But since there is no way of knowing when this will happen, you should simply go about your business. If you wait around because you think a recession is on the way you may never buy a new home. You would be much better off taking this into consideration, but not hinging your decision on what the market is offering.
The number one reason to buy a home during a recession is that you can save money. In many cases a situation like this will drive down home prices five percent or so. This is not to say that you will see this decrease across the board, but it is surely something to keep in mind. After all, five percent is $5,000 on every $100k worth of asking price. This can really add up; especially if you are spending several hundred thousand dollars on your new home.
Another good reason to sell during a recession is that sellers may begin to get anxious. They know that they are not going to get a great deal, but at the same time they are afraid that things could get worse in the near future. For this reason, they may be more so inclined to work with you on finding a mutually agreed upon price.
Keep in mind that a recession works in your favor as a buyer. You should know this when searching for a home so that you get the best of the deal, not the seller. This does not mean that you should be insistent on an absurdly low price, but you should know that a recession works in your favor.
It can be nice to buy a home when the real estate market is in a recession. This will allow you to save money, and hopefully get into a nice home. But remember, you should buy when you are ready to do so. If you put the time into finding a nice home, you will be happy with the end result no matter the market standing.
© Allison Van Wig
The number one reason to buy a home during a recession is that you can save money. In many cases a situation like this will drive down home prices five percent or so. This is not to say that you will see this decrease across the board, but it is surely something to keep in mind. After all, five percent is $5,000 on every $100k worth of asking price. This can really add up; especially if you are spending several hundred thousand dollars on your new home.
Another good reason to sell during a recession is that sellers may begin to get anxious. They know that they are not going to get a great deal, but at the same time they are afraid that things could get worse in the near future. For this reason, they may be more so inclined to work with you on finding a mutually agreed upon price.
Keep in mind that a recession works in your favor as a buyer. You should know this when searching for a home so that you get the best of the deal, not the seller. This does not mean that you should be insistent on an absurdly low price, but you should know that a recession works in your favor.
It can be nice to buy a home when the real estate market is in a recession. This will allow you to save money, and hopefully get into a nice home. But remember, you should buy when you are ready to do so. If you put the time into finding a nice home, you will be happy with the end result no matter the market standing.
© Allison Van Wig
Wednesday, June 24, 2009
When is the Best Time to Buy a Home?
It would be easy for someone to put out all kinds of special time frame analysis, stock market information and real estate market trends to try and explain when it's best to purchase a home. Or one could listen to those who are always saying that it's the perfect time to buy, for whatever reason they can use to justify it.
The fact is that the best time to purchase a home for your full time residence is when you need or want one. When not talking about investing for profit, but for the purpose of housing your family, your needs come first. It doesn't matter what the housing price indexes say, what the stock market's doing or where interest rates are.....to a point. Of course, all this is considered in moderation. If any of these factors are VERY out of the norm to the negative, then you should probably put off your purchase if your needs will allow it.
There are many personal and lifestyle factors that can balance out reasonable negative housing market factors. If your job location changes in town, and you're driving an extra 20 miles a day to work and back, a small increase in interest percentage can be offset in whole or part by savings in vehicle wear and gasoline. Besides, you can refinance if rates come down, while you'll never get back the gas expense and lost time away from your family.
When all the current owners and investors are crying over falling housing prices, you're in the driver's seat when it comes to being a buyer. You are shopping during a really big sale. And when there's a slow-down in housing sales, it just means that supply is increasing, while demand is stable or falling. That's the perfect time to buy. As a buyer, you're in demand. Sellers will compete for your business.
Okay, so we know that it's in our favor as buyers when prices are falling or demand is down due to bad news or other economic factors. But what do we do if times are good and housing prices are rising? If your plans are to purchase a home for your primary residence, and you plan on staying in it for several years, you're usually on safe ground purchasing even in a rising market. Historically, home prices have dipped at times, but they've always rebounded over time. Of course, we're not talking about a market where you're bidding against several others at prices greater than listed price. Even in markets where buyers are in bid wars, there are usually less popular local areas where prices are more stable and demand isn't as strong. Look in those areas, even if they're not your first choice. Sometimes a bargain can be had, making the area decision a good one.
It may seem like any time is the best time to buy. That's not true, but any time can be a good time to buy if that's when you need a home and you are careful in your search and selection.
© Allison Van Wig
The fact is that the best time to purchase a home for your full time residence is when you need or want one. When not talking about investing for profit, but for the purpose of housing your family, your needs come first. It doesn't matter what the housing price indexes say, what the stock market's doing or where interest rates are.....to a point. Of course, all this is considered in moderation. If any of these factors are VERY out of the norm to the negative, then you should probably put off your purchase if your needs will allow it.
There are many personal and lifestyle factors that can balance out reasonable negative housing market factors. If your job location changes in town, and you're driving an extra 20 miles a day to work and back, a small increase in interest percentage can be offset in whole or part by savings in vehicle wear and gasoline. Besides, you can refinance if rates come down, while you'll never get back the gas expense and lost time away from your family.
When all the current owners and investors are crying over falling housing prices, you're in the driver's seat when it comes to being a buyer. You are shopping during a really big sale. And when there's a slow-down in housing sales, it just means that supply is increasing, while demand is stable or falling. That's the perfect time to buy. As a buyer, you're in demand. Sellers will compete for your business.
Okay, so we know that it's in our favor as buyers when prices are falling or demand is down due to bad news or other economic factors. But what do we do if times are good and housing prices are rising? If your plans are to purchase a home for your primary residence, and you plan on staying in it for several years, you're usually on safe ground purchasing even in a rising market. Historically, home prices have dipped at times, but they've always rebounded over time. Of course, we're not talking about a market where you're bidding against several others at prices greater than listed price. Even in markets where buyers are in bid wars, there are usually less popular local areas where prices are more stable and demand isn't as strong. Look in those areas, even if they're not your first choice. Sometimes a bargain can be had, making the area decision a good one.
It may seem like any time is the best time to buy. That's not true, but any time can be a good time to buy if that's when you need a home and you are careful in your search and selection.
© Allison Van Wig
What Does Selling a Property As-Is Mean
If a homeowner is selling his house as-is, more likely than not, the condition of the property is less than stellar. Although some defects might be obvious, others might not be readily visible. The defects in the home can range anywhere from expensive, major repairs to small, minor repairs. In fact, more than one problem can exist with the home.
Allowing the current homeowner the opportunity to sell the home without completing any repairs or renovations is one of the main purposes of selling a home as-is. One of the advantages of this scenario for the seller is that he can put the house up for immediate sale rather than delaying the sale while necessary repairs are completed.
Furthermore, selling a house as-is protects the seller as long as the seller has been honest in his disclosure about the property. If the seller lies about any defects or inadequacies of the house to the buyer, he is not protected from any claim that the buyer might pose against the seller.
Basically, a buyer purchases the house in its current condition and may not request the seller to do anything to the property. When a property is being sold as-is, the seller may not hide any defect related to the condition of the property. Therefore, the buyer has no recourse should he decide he doesn’t like the condition of the house. This is because he has already agreed to purchase the house as-is.
The only time that a buyer would be able to take action against the seller is if the seller intentionally misled the buyers about the property. If the seller was aware of a particular defect with the property and intentionally hid this from the buyer, then the buyer would be able to take action.
Typically, the seller must include any problems or defects with the house on any disclosure forms. However, it is still important to have an inspection of the property in order to see exactly what is wrong.
Buyers who purchase property as-is realize what repairs are necessary and have taken this into consideration when determining their asking price. However, even though they have agreed to purchase a property with certain defects or flaws does not mean that they have agreed to any undisclosed problems that the property has. On the other hand, the buyers have essentially indicated that they will be responsible for all repairs, even cosmetic repairs.
© Allison Van Wig
Allowing the current homeowner the opportunity to sell the home without completing any repairs or renovations is one of the main purposes of selling a home as-is. One of the advantages of this scenario for the seller is that he can put the house up for immediate sale rather than delaying the sale while necessary repairs are completed.
Furthermore, selling a house as-is protects the seller as long as the seller has been honest in his disclosure about the property. If the seller lies about any defects or inadequacies of the house to the buyer, he is not protected from any claim that the buyer might pose against the seller.
Basically, a buyer purchases the house in its current condition and may not request the seller to do anything to the property. When a property is being sold as-is, the seller may not hide any defect related to the condition of the property. Therefore, the buyer has no recourse should he decide he doesn’t like the condition of the house. This is because he has already agreed to purchase the house as-is.
The only time that a buyer would be able to take action against the seller is if the seller intentionally misled the buyers about the property. If the seller was aware of a particular defect with the property and intentionally hid this from the buyer, then the buyer would be able to take action.
Typically, the seller must include any problems or defects with the house on any disclosure forms. However, it is still important to have an inspection of the property in order to see exactly what is wrong.
Buyers who purchase property as-is realize what repairs are necessary and have taken this into consideration when determining their asking price. However, even though they have agreed to purchase a property with certain defects or flaws does not mean that they have agreed to any undisclosed problems that the property has. On the other hand, the buyers have essentially indicated that they will be responsible for all repairs, even cosmetic repairs.
© Allison Van Wig
Tuesday, June 23, 2009
Title Insurance Facts
When you purchase a home, your mortgage company will require you to purchase both title insurance and homeowners insurance. Homeowners insurance protects the physical structure once title transfers into the name of the new owner. Title insurance provides protection from disputes regarding ownership that might have taken place before the title is transferred. Many home buyers balk at paying for title insurance, because they don’t realize what it covers and how important it really is.
What is Title Insurance?
Title insurance, in the most simple terms possible, is an insurance policy that covers the title of your home. The title is very important, as it represents ownership interest in the property. When your home is going through the escrow process, the title company will conduct research to make sure that there are no outstanding liens on the property and to verify that the person selling the property to you does in fact have the legal right to transfer ownership to you. The title company will attest that there are no known liens at the time of closing. Title insurance will protect you from liens or other title problems that might become known at some point in the future.
Why is Title Insurance Important?
No homeowner should be without title insurance, particularly when purchasing a home or property that has changed hands at any point in the past. Even though the title company is required to conduct thorough title research prior to the time of closing, it’s always possible that some pre-existing problems might not be discovered at this time. Title insurance keeps you from having to worry about issues related to the title of your home that took place before you became the owner.
It is not uncommon for problems related to real estate titles to crop up even years after a sales transaction has taken place. Title disputes can arise over property taxes, contractor liens, validity of signatures on past sales transactions, and other such issues. Sometimes heirs of past owners will come forward, claiming that the individual who sold the home did not have legal right to do so. Without title insurance, these types of problems can become legal and financial nightmares for homeowners. Title insurance protects homeowners from loss and litigation fees arising from such situations.
Is Title Insurance Mandatory?
If you are financing your home, your lender is very likely to require you to purchase a title insurance policy. If you are paying cash for your home, there is no legal requirement to purchase title insurance. However, it is not wise to risk having to deal with title problems just to avoid having to purchase a title insurance policy. Dealing with such problems is very costly and time-consuming, and can result in disastrous consequences for uninsured homeowners.
Purchasing a title insurance policy is very affordable. You do not have to make periodic payments on title insurance. It is sold as a single policy that you pay for at the time of closing, and protects your ownership rights in your home the entire time you hold title to your property. It is certainly worth a small, one-time fee to know that you will never have to worry about dealing with any type of dispute that may arise regarding the previous ownership of your home.
Title Insurance Limitations
It is important to realize that title insurance does not protect homeowners from liens filed against their property once they take ownership. Once you own your property, if your actions lead to contractor or tax liens being filed against your home, title insurance does not keep you from having to fulfill those obligations. The protections of title insurance only protect homeowners from financial obligations and ownership disputes related to the actions of previous owners.
Making a Decision About Title Insurance
Purchasing a home is one of the biggest investments most people will ever make. It only makes sense to take every possible step to protect your ownership interest in such a large purchase. While it is possible that there will never be a problem with your home’s title, it is also possible that serious problems might arise.
Since title disputes are related to the actions of previous owners, you have no way of mitigating the risk other than to protect yourself by purchasing title insurance at the time of closing. When purchasing property, it is always advisable to purchase a title insurance policy. The small cost of title insurance is definitely worth the peace of mind that comes with knowing that you will never have to deal with ownership disputes regarding your home.
© Allison Van Wig
What is Title Insurance?
Title insurance, in the most simple terms possible, is an insurance policy that covers the title of your home. The title is very important, as it represents ownership interest in the property. When your home is going through the escrow process, the title company will conduct research to make sure that there are no outstanding liens on the property and to verify that the person selling the property to you does in fact have the legal right to transfer ownership to you. The title company will attest that there are no known liens at the time of closing. Title insurance will protect you from liens or other title problems that might become known at some point in the future.
Why is Title Insurance Important?
No homeowner should be without title insurance, particularly when purchasing a home or property that has changed hands at any point in the past. Even though the title company is required to conduct thorough title research prior to the time of closing, it’s always possible that some pre-existing problems might not be discovered at this time. Title insurance keeps you from having to worry about issues related to the title of your home that took place before you became the owner.
It is not uncommon for problems related to real estate titles to crop up even years after a sales transaction has taken place. Title disputes can arise over property taxes, contractor liens, validity of signatures on past sales transactions, and other such issues. Sometimes heirs of past owners will come forward, claiming that the individual who sold the home did not have legal right to do so. Without title insurance, these types of problems can become legal and financial nightmares for homeowners. Title insurance protects homeowners from loss and litigation fees arising from such situations.
Is Title Insurance Mandatory?
If you are financing your home, your lender is very likely to require you to purchase a title insurance policy. If you are paying cash for your home, there is no legal requirement to purchase title insurance. However, it is not wise to risk having to deal with title problems just to avoid having to purchase a title insurance policy. Dealing with such problems is very costly and time-consuming, and can result in disastrous consequences for uninsured homeowners.
Purchasing a title insurance policy is very affordable. You do not have to make periodic payments on title insurance. It is sold as a single policy that you pay for at the time of closing, and protects your ownership rights in your home the entire time you hold title to your property. It is certainly worth a small, one-time fee to know that you will never have to worry about dealing with any type of dispute that may arise regarding the previous ownership of your home.
Title Insurance Limitations
It is important to realize that title insurance does not protect homeowners from liens filed against their property once they take ownership. Once you own your property, if your actions lead to contractor or tax liens being filed against your home, title insurance does not keep you from having to fulfill those obligations. The protections of title insurance only protect homeowners from financial obligations and ownership disputes related to the actions of previous owners.
Making a Decision About Title Insurance
Purchasing a home is one of the biggest investments most people will ever make. It only makes sense to take every possible step to protect your ownership interest in such a large purchase. While it is possible that there will never be a problem with your home’s title, it is also possible that serious problems might arise.
Since title disputes are related to the actions of previous owners, you have no way of mitigating the risk other than to protect yourself by purchasing title insurance at the time of closing. When purchasing property, it is always advisable to purchase a title insurance policy. The small cost of title insurance is definitely worth the peace of mind that comes with knowing that you will never have to deal with ownership disputes regarding your home.
© Allison Van Wig
Friday, June 19, 2009
The Benefits of Townhome Living
Would you like to own your own home, but think you can only afford a fixer-upper far from work and shopping? Are you tired of spending weekends taking care of yard work? Or are you an empty-nester with downsized housing needs? If any of these describe you, then you need to consider the benefits of purchasing a townhome.
A Townhome is Cheaper
Perhaps the greatest benefit to buying a townhouse is the savings in cost, which can be considerable. You can then put that savings toward more square footage, a fancier décor, more amenities, or just more cash in your pocket.
Perhaps you would like to buy a house closer to town or in that highly rated school district, but as desirability goes up, so does price. A lower cost townhome might be the answer you need to get into your dream location.
Townhome Living Can be More Fun
It’s easier to get to know your neighbors when you are not separated by a half acre of land. The closeness of townhouses fosters coziness and a greater feeling of community. With the isolation that exists in many communities, wouldn’t it be nice to have an excuse to get to know your neighbors?
Most townhome communities offer amenities that you may not find in traditional neighborhoods. Swimming pools, clubhouses, walking trails, and planned neighborhood activities are often available and add to the fun of living in a townhome community.
A Townhome Can Save You Time
Living in a townhome can save you time is by reducing or eliminating yard work. Townhomes usually have small yards or no yard at all. Often the neighborhood association fees cover the cost of what little yard maintenance there is. If mowing grass and trimming bushes is not your thing, then this may be an attractive benefit for you.
Also, townhome living may save you time in a shorter commute. With today’s gas prices, everyone wants to be closer to town, but prices go up as you get closer in. If you would like to have more time for family or relaxation, then a more reasonably priced townhouse may be just what you are looking for.
But What About…?
There are some common concerns about living in a townhouse, but most of these concerns can be addressed by careful choice of your home, and many potential disadvantages can actually be seen as advantages.
The first concern that you may have is security. We all want to know that our home is protected, and with all those neighbors, might there be more chance of trouble? Well, a townhome is actually a less attractive target to a criminal. With all those people around, there is a much higher likelihood that someone will witness a potential crime.
Another concern may be the amount of stairs in a townhome, especially if the townhome has three stories, as is common. This may be a legitimate concern for the elderly or disabled. However, most of us could use a little more exercise on a daily basis, and should not be overly concerned. The two and three story floor plans can afford greater privacy and space to members of a household. If your teenagers want to have friends over to play a noisy videogame on the ground floor, you will be glad to have a separate floor on which to concentrate on finishing up that report for work.
A final concern that may cross your mind is noise from neighboring homes. You may have bad memories of that cheap apartment you had in college and the neighbors’ reveling that kept you up all night. If this is a concern for you, then be aware that modern methods of construction can virtually eliminate this problem. Most townhomes are very well soundproofed, and you will not hear your neighbors at all. If you have concerns about this, visit the community in which you are considering purchasing a home, and ask some of the residents there if it is a problem.
Buying a townhouse is a smart option, which offers many unique benefits. Visit a local townhome community and find out how you can save money and enjoy the benefits of a close community, greater security, and a fun lifestyle. You just might find yourself the proud owner of a townhouse.
Allison Van Wig©.
Subscribe to:
Posts (Atom)
