Buyers

Moving in the summer when a lot of people do can be such a challenge. But if you prepare well, moving will be definitely easier for you.

Here are ten tips you can follow for an easier move:

• Think about this: Can I handle the move alone? or do I need to hire a licensed moving company for a full-service or partial-service move? The answer to this depends on your family’s budget, available time and lifestyle. Before you choose a moving company to help you, get quotes from atleast three companies so you can compare and get the best deal. Packing calculators can help you gauge the number of boxes and packing materials you will need.
• Plan where each box or furniture will be placed in your new home before you pack them. Taking pictures of each room in the new house can make this task easier. Write down where each item should go and what needs to be assemled first. Make sure to bring this list with you on moving day. Cross out from the list each item as it is placed in its new room. This will making moving orderly and smooth.
• Create a system when packing and start early. This will enable you to move within your time frame in an organized manner. Go to Moving.com to complete a free change of address and to schedule utilities. Go through your things one at a time – one cabinet, one storage box, one room at a time. Divide your things among these categories: for charity, give to a friend, recycle, trash, pack now, or keep handy until moving day. With each room or bin you clear out, the task of packing becomes less overwhelming. 
• Plan on what to do with the kids on moving day. Think if you’ll leave them in daycare or if you’ll have a friend or family member take care of them. Dont forget to thank them or give them a thank you gift. Another option would be to set up a corner where they could play or entertain themselves on your new home on moving day.
• If you have a pet, make plans for them too. All the hustle and bustle can be stressful for man’s bestfriend. Bring them to a pet daycare or leave them with a willing friend on moving day.
• Secure small items. Some big things (furniture, appliance) need to be disassembled. You’ll need to have a container for small parts like screws. Make sure they’re sealed and marked so nothing gets lost.
• Packing cleaning products and toxins (such as pesticides or bleach) can be quite hard to manage. Get rid of as much as you can But be careful in doing this. Dispose of them in an eco-friendly way.  If you don’t know how, get information from your city’s waste disposal department. For those that need to go with you, pack them securely. Put them in a sealed container and make sure they’re marked clearly. Keep them away from other stuff especially like your children or pet’s stuff.
• Think about getting full value insurance. This insures the protection of your belongings. In the event that something will be lost or damaged, that item will be replaced or there will be cash settlement based on the current market value regardless of the age of the item. It may cost more with a professional mover but the peace of mind that it can give you will be worth it. Do not settle for the required minimum coverage of 60 cents per pound. If something bad happens, it won’t be able to cover what was damaged or lost.
• Know your rights as a consumer. For interstate moves, do you research in the Federal Motor Carrier Safety Administration (FMCSA) or contact the state agency in your state. FMCSA requires interstate movers to offer arbitration to settle disputed claims. If you’re having a hard time with the moving company or they threaten to hold your belongings for an illegal reason, report them to the Better Business Bureau (BBB).

According to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada, atleast fourty percent of homes in the market have at least one major flaw. Kathleen Kuhn, CEO and president of HouseMaster says, “Virtually every ‘used’ home needs some repair or improvement,” “That’s to be expected. But with today’s high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation.”

Based on HomeMaster’s findings from more than one million home inspections, here’s a list of the most serious home defects to look out for:

• Aluminum wiring
• Cracked heater exchange
• Chimney settling or separation
• Defective roofing and/or flashings
• Environmental hazards including radon, water contamination, asbestos, lead paint, and underground storage tanks
• Horizontal foundation cracks
• Insect infestation — termites or carpenter ants
• Major house settlement
• Mixed plumbing
• Moisture in the basement
• Undersized electrical system

Most of these defects can be repaired, says Kuhn. But it might you cost you a lot depending on the gravity of the damage, especially if it involves major systems. This is one of the factors you housld consider in buying a house. For example, buying a new air conditioning compressor will cost you about $1,200. A basement with damaged plumbing can cost you about $5,000 to fix. If you decide to start negotiations with a house you want to buy, there should be a provision for backing out in case the home inspector finds too many or too much problem.

Eric Tyson and Ray Brown, authors of Homebuying for Dummies says, “If the property inspectors find that little or no corrective work is required, you have little or nothing to negotiate.” “Suppose, however, that your inspectors discover the $200,000 house you want to buy needs $20,000 of corrective work for termite and dry-rot damage, foundation repairs, and a new roof. Big corrective work bills can be deal killers.”

If however you really want to buy the house despite the needed repairs, there are several ways to proceed:

• Ask the seller to allot enough money in the escrow to cover for the expense for repairs nad instruct the payroll officers to pay the contractors when the work is done.
• The lender can withhold or part or all of the loan amount in a passbook savings account until the work is completed.
• The sellers may give a credit for the work. Lenders may disapprove of this last alternative because there aren’t assurances that the repairs will be made.

Hire a qualified home inspector. Their fee usually ranges from $250 and $400. Look for home inspectors who are affiliated with organizations like the American Society of Home Inspectors or the American Association of Home Inspectors. These groups require their members to meet professional qualifications, and adhere to specific business ethics. You can also ask referrals from friends.

When you make an appointment with the home inspector, make sure you’re home. The money and time you spend on this is a wise investment for the future. As he goes throught the inspection, ask him about potential problems to expect and what warning signs to lookout for. Learn how they work and how to properly maintain them. “A pre-purchase inspection is your best protection against buying a home based more on emotions, rather than as a sound investment,” says Kuhn of HouseMasters.

When you see a house that seems exactly what you’re looking for, you’ll feel the impulse to make an offer right away. A beautiful, airy and relaxing house can make buyers easily fall in love with it. But don’t allow your emotions to make you forget about what’s real.  Leslie Levine, author of “Will This Place Ever Feel Like Home?”  says, “Sometimes we want something so badly, we’re not willing to ask all the questions we should.”

A beautiful house may only mean a beautiful facade. A closer inspection is necessary to ensure that this is really the house you want. You may see a basketball hoop over the garage and assume the neighborhood is great for kids. But a closer inspection may show that it’s rusted and hasn’t seen a ball in a decade, and that other yards in the neighborhood have no jungle gyms or tire swings out back, Levine says.

• Visit the house at different times of day
  One of the features you may love about the house is its large windows. But it can be a big problem at night when you have a peeping neighbor. If the house is beside or across a school, you may think of it  as an advantage. Visit the house during school hours so you can find out if you can handle the hustle and bustle that the school brings. You could visit a house in the middle of the day and think it’s a quiet neighborhood but it could be noisy and busy during morning or evening rush hour.
• Go through recent newspaper archives
  You might find out that the neighborhood’s water supply has a high level of contaminant; or they’re thinking of putting a high voltage line through the house  you’re eyeing. Levine suggests,  “Make sure you’re getting information on what you can’t see.” It’s also a good idea to check with the county or city for proposed projects in the area.
• Talk to neighbors
  How many of the people around you are actually homeowners? It will be hard to tell at first if most are rental houses.
• Ask the neighbors if they have an association
  “Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” According to Levine, “Even if you don’t plan to attend, the fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house. It’s a nice, safe way to celebrate something.”
• Ask the sellers
  The house may have had past problems that you need to know of. Even if they’ve been fixed, it’s still worth knowing so you won’t do anything that could damage it again. The house may have had water damage years ago because of an ice dam. Knowing this will allow you to prepare and take preventive measures. You might find a landscaping which might seem to be unlikely to you. But you might find out it was actually made to prevent basement flooding.
• Get a home inspection
  According to National Association of Exclusive Buyers Agents, all houses have defects. Some may be obvious and most of it can be fixed. Being aware of the damage or potential problems of the house allows you to prepare for future expense or help you negotiate for a lower price. You should also consider having your house inspected for lead, radon and wood-eating pests.
• Ask for records of past improvements
  If the house went through renovations or repainting. Ask if they could show you the receipts. If the whole project cost just $1,000, it means cheaper paint was used. Be prepared to repaint it soon. Getting these records isn’t always porrible but it’s worth the try.
• Don’t assume remodelling will be easy
  If you talk to the seller about your ideas for future improvements, they might tell you more details you need to know. For example, you might notice a shower in an unexpected place. You’ll probably discover that there’s a structural problem that would’ve cost the previous owners a lot if they put a shower where it’s supposed to be.
• Consider the view
  Levine says, “So many neighborhoods now have teardowns. So look at the two houses on either side of you. If this neighborhood has had some teardowns, one of those houses might be a candidate. And they may build some behemoth structure that affects your light or the way your house looks or your view.”
• Check the utility bills
  You may love the house for its high ceilings, walls of glass or perfectly beautiful green lawn. But it might cost a lot to maintain them. The previous owner may have paid a so much for heating or cooling.
• Consider the taxes
  It’s not enought that you look at the latest tax bill. Ask what the previous years tax bills were. In some areas, houses are re-appraised and taxed higher frequently. The house may seem like a good deal but with taxes that keep going up, you might want to reconsider. If you can’t get the information from the seller, you can also look for it in newspaper archives or ask your real estate agent about this. In some areas, the school’s funding come from property taxes. If this is the case, taxes will increase faster than in other areas.
• Check with city hall
  NAEBA suggests checking the zoning of the neighborhood. You might also want to check any potential easements, liens or other restrictions that has something to do with your property. The seller should be able to tell you this but it’s better to do your own research. You can also ask your real estate agent about this.
• Reconsider the bells and whistles
  Are you okay with a one-car garage? Are you comfortable with on-street parking?  You may consider a house with a pool as a perk but can you really afford one?
• Explore the surrounding area
  This is especially important if you’re new to the city or state. Make sure you’re not moving into an ugly part of town. I’m also certain you don’t want to move in a noisy area. Find out if the property is near an airport, fire station, police station, hospital or railroad track. You might also want to live away from agricultural or industrial areas as they are prone to air pollution.

Most first-time home buyers are eager to have their very own home but it has to be at a price they can afford. Smaller homes, fixer-uppers and cheaper commutes to work are the best options to look into.

The problem is, most firt-time home buyers expect more than what they can actually afford in a home. Coldwell Banker conducted an online survey with 150 of its brokers. The result of the survey yielded a strange trend among first-time home buyers.

Almost of the survey respondents said affordability was their top concern first time buyers. Yet, 81 percent are looking for move-in conditions. Only 7 percent are considering fixer-upper homes. The real estate company suggests looking into fixer-upper homes if you want affordability.

“In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and bhttp://www.doctilo.com/article_writing/index.php?e=33reak into homeownership,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate, LLC. He adds, “It is important for first-time homebuyers to remember that by considering a fixer-upper for their first home purchase, they can build equity over time and later move up and into their second-stage home that better reflects their expectations.”

Buyers who choose to go with fixer-ups homes should have the house inspected by a professional home inspector. Buyers need to find out how much it will cost you on repairs. You might end up spending more than what you saved. Homes that need basic fixing or improvement can give already give you a lot of savings but you can even save more on houses that need major work. Again, buyers need professional help so you can determine if your savings on the house is more than the cost of repairs.

Another surprising discovery was that most first-time buyers wanted affordability yet they looked for bigger houses within the metro. The survey shows that 71 percent of first-time buyers wanted bigger houses than they were 10 years ago. A smaller home is less expensive because of smaller footprint and square footage. 41 percent were considering proximity. They were looking for a house near their workplace so they could save on gas. However, houses around economic centers are expensive. These properties bank on the value of convenience. Those who live in areas like this can save on travel time and gas money.

A good alternative to this is finding an affordable place far from economic centers but near a transit oriented development (TOD) or low-cost public transit. There is also the option for carpooling or car-sharing communities.

The survey also showed that most of these first-time buyers looked at five to ten homes before they decided on a house. But if you want to get the most for your money, invest more time in looking at houses. More houses, more opportunities for savings. Look at at least 10 houses. You can usually find big discounts from these: houses that had been on the market for at least 90 days; houses being sold by long-time homeowners; houses for sale from flipping investors who got unlucky; and houses from we-want-to-sell-real-estate banks.

Usually, spring and summer is the busiest time in residential real estate. Most families want to take advantage of the good weather and the children’s summer break. However in most regions, spring is also when houses are most expensive. During this time, there are a lot of buyers and competition is tough.

Here are some measures you can take that can give you an advantage over other buyers:

• If you plan to work with a real estate agent, start early. Interview three to four agents and talk to their references as well. Once you have chosen, let the agent know exactly what you’re looking for. Be specific and detailed. 
• Get your loan pre-approved. By doing this early, you have one less task to think about. You’ll also know how much you can borrow. This will save you from looking at houses you can’t afford. And when you make an offer with a pre-approved loan, the sellers know that you’re serious.
• Determine how much you can afford for downpayment. According to NAR, first-time buyers usually make a down payment of 6 percent on a home purchase, and 24 percent of down payment funds were gifts from relatives or friends. If you don’t have this option, you can turn to loan programs that accept 5-3 percent downpayment. Closing costs typically range from 2-7 percent of the property cost. 
• Always be ready for your agent’s call. If the competition is tight, as soon as your realtor finds a good deal that is up to your criteria, they’ll notify you. Be ready to visit the house and once you determine that it’s going to be a good buy, make an offer. 
• When you look at houses, consider the potential. There are some things you cannot change like the neighborhood, proximity to job centers and schools, the basic floorplan of the house, and size of the back yard. But don’t turn your back on a house because you don’t like the color of the paint, the design of the carpet or wallpaper. These are things you can change according to your taste. Try to imagine the house with the furniture and carpet which you think goes best with the house.  Do you ike it now?
• If you’re in a seller’s market consut your real estate agent on how much you should offer. If there’s competition, consider offering more than the listing price. Avoid asking for a long closing date or extras like carpet allowances. 
• Start thinking about home insurance now. Start by checking that your credit report is accurate. The accuracy of your credit repor is very important. It will determine if a company will cover you and for how much. According to the Insurance Information Institute, you should get a copy of your loss history report like a CLUE report from ChoicePoint or an A-PLUS report from Insurance Services Office. They record home insurance claims. If you weren’t able to file a claim in the past five years, you won’t have a loss history report. This gives you a better report and a lower premium. If you previously rented, you should have renter’s insurance. Your insurance history will be helpful when you apply for insurance for your new home.