Real Estate, Finance and Home Articles of Interest

Has the time come to "take the plunge" and buy a home? So that you can get the most enjoyment and investment value from your purchase, there are some practical considerations to take a look at.

In the excitement of buying property, it is easy to get caught up in appearances. The problem is that when you're getting wooed and awed by what the house looks like, your family's future needs are not considered and you're miserable a few years into the future.

Okay, maybe they're not as exciting as what the house looks like, but here are some practical guidelines that can pay off down the road.

FACTOR 1 -- YUP, SIZE MATTERS.

If your kids are about to leave the nest, you might be better off buying a smaller home. Once the kids are gone, there will be less maintenance. On the other hand, if your family is growing, you need to think about a home that has enough bedrooms and room to afford you and your children their privacy and "special space." Alternatively, you might consider a home where add-ons can be made relatively easily and do not require approval of a homeowners association. Generally, zoning regulations will come into play when you decide to build additions to your home, so check them out. If you have resolved to remain single, you certainly have a lot more leeway when considering your future needs. But remember this: Never say never! Someone may come along who knocks you off your socks and you end up having a family after all!

FACTOR 2 -- THE NEIGHBORHOOD.

It does not matter whether you're single, about to retire or have a growing family -- the neighborhood is a critical consideration. No one wants to move into a place with a high ratio of robberies or crime. You want to know that you, your loved ones and possessions are safe and secure. Look for graffiti, garbage in the lawns or streets, and whether or not pleasant, family-types of people are strolling along the streets in the morning or afternoon. A neighborhood that is going downhill is also undesirable. Without being scientific about it, you can generally tell where the neighborhood is headed by the condition and upkeep of the homes and the models of cars that are parked in the driveways of those homes. Watch the crime reports in your local paper.

Here's another tip that I discovered by chance. When I bought my first home, I had checked out the neighborhood during business hours, with my Realtor and it was in great condition -- booming, as a matter of fact. There were historic brick houses that younger people were buying and renovating. The homes in the neighborhood shimmered with pride of ownership. During the daytime, people were at work and the neighborhood was quiet. I bought the house and started my own renovations only to discover that I could not sleep because one of the neighbors had dogs that barked and howled the minute the sun set until daybreak, making it impossible to get any rest! I ended up selling that home simply because of the misery those dogs created. No matter what I did -- calling the City, using earplugs, taking sleeping pills, you name it -- the incessant howling of the dogs kept me awake night after night. From that point forward, for all my other real estate purchases, I have driven to the neighborhood at night and parked to observe the sounds and activities around the house. It only takes about 15 minutes per trip. On a mix of week nights and weekends, visit the house you're thinking about buying after sunset and park and observe for awhile. You might be shocked at what you discover. This is an invaluable tip.

Unless you are buying and selling real estate for a living, your real estate purchase is generally a 30-year financial commitment. Make the most of it!

FACTOR 3 -- PROPERTY VALUES.

What transforms your purchase from "somewhere to live" into an investment is the property value. You want something that will gradually increase in value over time, not lose its value becasue of a declining neighborhood or other factors. You can find out what is happening to property values by checking out the public assessor records. This information is generally free and is available online through your county assessor's office. Type in your street address and surrounding street addresses and the assessment records that come up should have a sales history. There are also many other online services that report property values. The point is that if the area you are considering has experienced a couple of years of declining property values, you may want to find out the reason for the decline before making your real estate investment and relocating your family in that area. The decline could be a short-lived glitch in the real estate market, or it could be something serious that affects the value of your home such as increased crime, a plunge in the job market, or environmental conditions or polution that is causing cancers and other illnesses.

FACTOR 4 -- THE SCHOOL DISTRICT.

If you have children or are planning on having them, check out the schools in the area and their reputation. Most school districts around the country are determined by the neighborhood in which you live. Get a first hand impression of the schools by personally visiting them and meeting the principal.

FACTOR 5 -- ZONING REGULATIONS; HOMEOWNERS ASSOCIATIONS.

If you plan on operating your business from home, you might want to check the zoning regulations before buying. Let's say, for example, that you are a trucker and plan on parking your rig at the house when you're not working. There may be restrictions that prohibit you from parking your truck on the street or in your driveway. If the home you are considering is part of a homeowners association and there are restrictive covenants, be sure to read those restrictive covenants (commonly called CC&Ns). Some restrictive covenants prohibit parking recreational vehicles and boats at the home. Others require special garages. Because of zoning or other covenants, there might also be easements around the property that you may not be aware of at first glance. Take a look at the title work and property survey to find out if there are easements that may prohibit your being able to use the property in the way that you envision.

FACTOR 6 -- THE COST.

Cost is going to be the first and most obvious consideration for any home buyer. Cost should be more important than whether the house is so fancy that it will impress your friends and family. You do not want to be in a situation where your mortgage payment is so high that you are barely making it each month and cannot save any money. Sometimes unexpected illnesses or economic conditions affect your level of income, and if you are barely making it at 100% of your income, chances are that you will not be able to afford the house if your income is reduced by as little as 10%. Also, there may be repairs that need to be made. If every dime you have is going toward the mortgage, you will need to borrow even more money to make repairs if you do not have a nest egg set aside.

CONCLUSION

There are other factors to think about before buying a home. Among them are the condition of the home, whether or not it's in a flood plain, the number of similar families in the area, and the closeness of the area to other conveniences such as stores, work, and entertainment. A bit of practicality, mixed with dreaming, can reward you with a home that you truly enjoy for its comforts and investment value.

As a paralegal, Deborah has enjoyed over 25 years experience in real estate and commercial lending. One thing she has observed is that buyers have a rough time understanding title and survey documents that are provided before closing. You can find out how to read a survey in the next half hour by taking her simple, online course that is recommended by real estate brokers and agents. Visit http://www.surveyrecordings.com to learn more.