Frist-Time Homebuyers: Are you Ready?

Choosing to purchase your first home is a big decision, and it should be well-infomed. Before you decide to commit, ask yourself the following questions, as posed by an article in The Columbus Dispatch:

1) Are you aware of home ownership expenses? Qualifying for a mortgage and having enough money for a downpayment are huge considerations--but they aren't the only ones. Homeowners also pay property taxes, mortgage insurance, utilities costs, and routine maintenance expenses. And what if you have to buy a new roof or A.C. unit? Certified financial planner Paul Dolce urges buyers to wait until they can put 20% down on a home to avoid mortgage insurance and to "establish a a pattern of financial discipline."

2) Are you willing to sacrifice your weekends? Maintaining a home requires several factors--such as lawn care, garden care, DIY projects such as painting, and home repair. On average, adults spend 3-4.3 hours on lawn/garden work each week, according to a 2009 Bureau of Labor Statistics survey. In other words, owning a home does not only require money--it also requires time.

3) Are you sure you'll want to live in this house for at least five years? You build equity while you live in your home. Thus, the longer you live there, the more financially practical it becomes to buy the home rather than rent it. Roughly, if you plan to live in your home for less than five years, home expenses and buying/selling costs may put you at a  loss. It would be more economical for you to rent.

4) Are you confident your relationships will remain the same? Is there a possibility of divorce in your future? What about marriage? Children? If these scenarios are a part if your relatively near future, you may want to delay buying a home. What home and neighborhood is right for a single person may not be so great for a family with two kids. Often, married couples like to buy homes together, so if you're in a serious long-term relationship, it may be smart to wait a bit longer before you take the plunge into homeownership.

5) What is your backup plan? If something happens to your job, or if you need to finance a new hot water heater or car, it's good to have at least six months of housing expenses saved up. This will act as a cushion and ensure that unforeseen expenses won't threaten your new home and lifestyle.

6) Have you researched the neighborhood? Neighborhoods come with different lifestyles. Is the neighborhood you're considering consistent with your way of life? For example, if you're a family with small children, you'll want to ensure that the neighborhood is family friendly. If you live near many retirees or empty nesters, they may be less forgiving when your kids run through their yards. If you like to entertain, you'll want to know that you can play louder music without bothering other people. Ideally, your neighbors will join in, and the area you live in will have lots of kids who can befriend your own.

If you feel confident with way you answered these questions, then congratulations! You're most likely ready to buy your first home. I specialize in first-time home buyers. Please contact me to discuss your home-buying wants and needs, and to see what I can do for you.

Empty Nesters: Living the Good Life

Has your family surpassed its need for a spacious, family home? Many empty nesters turn to townhouses, patio homes, and condos once their kids move out. For some, this is an easy decision. Condos are very low-maintenance—both inside and out. Homeowner's Associations handle yard work and snow removal (for a fee). Often, empty nesters sacrifice square footage for a newer home of a higher caliber. They note upgraded plumbing and electric and cheaper utility bills. Additional benefits include the open floor plan of newer homes, the close community created by condo-living, and the opportunity to redecorate your home after you move. 

Not sure whether a condo is the right type of home for you? Click here for a list of advantages and disadvantages of condo ownership vs. single family home ownership. If and when you decide to move, consider letting me help. I'd love to earn your business. 

Six Essentials to Consider When Buying a Home

With millions of new builds and many more resales each year, buyers have a huge array of options when looking for a home. There are many differences between buying a new home versus a "used" one. And it's not a decision to take lightly--for most of us, real estate is our biggest asset. So how do you decide which home is right for you? Consider these key features:

1. Location. Location, including the lot, neighborhood, and proximity to desired places, is traditionally the most important factor of home-buying. Do you want to be more towards the suburbs or city center? Older neighborhoods are more likely to be close to the center core and, with their mature landscaping, can create a stronger sense of community. You also want to make sure that an area is safe--drive through the neighborhood at night to see how well lit it is, and whether people are out jogging, walking their dogs, etc. The police station can give you information regarding crime rates. 

2. Price & Taxes. You want to feel good about buying your home, which can be accomplished by spending less than your maximum budget. Spending all your money on a home can make you "house poor," meaning you have insufficient savings to maintain your lifestyle (for example, travel and take vacations). Used homes tend to be less expensive than new builds. Remember that the asking price is always negotiable, and also that there are many additional expenses that accompany home ownership.  Taxes vary based on municipality and school district. Many older households aren't required to pay for local bonds associated with new development (for example, schools and parks). It's best to research taxes before you decide to put an offer on a home. 

3. Maintenance & Repair. Get a home inspection when buying a lived-in home, as the home likely will show signs of use. Check the status of all major working systems, such as electrical and plumbing systems. If something needs to be repaired or replaced, this should be considered when pricing the home. You can also use repairs as a negotiating tool ("contingent upon the fixing of..."). You may face some small, DYI projects. If you're up for this, a used home may be right up your alley. If you want a home that's 100% turn key, a new build may be the way to go. It's virtually the only way to eliminate the natural wear and tear an older home undergoes. 

4. Layout. Older homes have a more traditional floor plan, often with formal living and dining rooms. They also may be more closed off. The 5-level split is a popular floor plan for new construction, and oversized family rooms that open to the kitchen are also modern and common. Layout is important because it's hard to change--you may be able to knock down a wall or two, but it's a major renovation that's much more complicated than switching gold cabinet pulls with bronze ones. Function runs right alongside layout. Older homes can be functionally obsolete--they have minimal closet and garage space, for example. When searching for a new home, ask yourself how well the space is used to suit your needs. 

5. Features. Older homes, especially former model homes and custom built homes, tend to have more special features, or character, than new builds. This could be in the form of built-ins, security systems, landscape, etc. Again, ask yourself how important these features are, and if you are willing to compensate for missing essentials. If you love gardening and spending time outdoors, it may be no big deal that your home comes with little to no landscaping. 

6. Resale Value. In terms of resale value, older homes are safest because you can track how much they have appreciated or depreciated over the years. Even though this is a rough measurement, it gives you some idea of resale value. Whether or not you have kids, homes in good school districts often have good resale value. It's good to keep resale value in mind even after you buy a home, especially if you customize or renovate  the home in some major way. Try to put money into the home that you can reasonably expect to get out of it.  Kitchens and bathrooms have good returns on investment, while adding a pool can actually hurt sellers. 

Still not sure whether you'd prefer a new build or resale? Click here for a more thorough explanation of key differences between the two, or contact me for help.

4 Stats Homebuyers Should Know

To have the most positive and successful homebuying experience, homebuyers should be as educated as possible about the market they are navigating. Knowing what you're getting into in advance will keep you from feeling too frustrated or overwhelmed. Trulia discusses four points that are good to know when searching for your new home:

1) The number of homes you'll lose before you win.
It's completely normal for buyers to lose out on a few homes before they are the prevailing bidder. When you lose a bid, move forward quickly in search of your next opportunity to make an offer. 

2) Average number of offers per listing.
Ask your agent about what is standard, in terms of competition levels, in the neighborhoods, price ranges, and property types you're looking for. In today's hot market, some people experience multiple offers, same-day sales, and above asking price offers. If this is the case where you are looking--you should know about it. 

3) Neighborhood "run rate."
A run rate mathematically tells you what home prices in an area would be in the future if the continued rate of rise continued for a year. While home price increases can be seasonal (with greater increases occuring in the spring and summer months), our market is still recovering from the recession, so it's quite possible that home price increases will continue to rise throughout the year.

4) Inventory rate and direction
How many houses are listed for sale, and is this number increasing or decreasing? If you're a more selective buyer with a long wish list, it may be hard to find your new home in a lower-than-average-inventory market such as the one we're experiencing today. Knowing this, you may have to sacrifice some of your "must haves" or up your budget. It's best to be realistic about what you can and cannot get in a certain area for a specified price. This will help you make well-timed, well-informed, competitive offers.

If you're not currently working with an agent, and would like to know more about these statistics pertaining to where you'd like to live, contact me. It would be my pleasure to help make your home buying experience easier and more enjoyable. 

Beautiful Meets Comfortable: Memmer Homes Conquers Both

Have you had the chance to attend the Parade of Homes? If so, you may have noted house 4’s custom built kitchen, modern floor plan, spa-like master bath, and outdoor deck. Memmer Homes can be credited with this luxurious yet practical home design and construction.

Memmer Homes is managed primarily by two individuals: Mark Memmer (CEO) and Jeff Memmer (president). For more than 30 years, this family company has prided itself on its exceptional craftsmanship and ability to customize homes that are “as beautiful to look at as they are comfortable to live in.” Additionally, the company seeks not to merely meet client expectations, but to far exceed them. This is a value that I have in common with the company. That’s why I’m happy that Memmer Homes is building a home for some of my own clients—I know they are in good hands.

For more information on the Memmer Home in the Parade of Homes, click here.

If you are considering building a home, or are having a hard time deciding between buying or building, please let me know how I can help. Take advantage of my resources and background in home building to best navigate today’s unique market.