HOW TO SPOT A GOOD BUY

By

Jason David Maddox

Century 21 Fine Homes & Estates

www.MaddoxHomes.com

          Beauty is in the eye of the beholder, particularly when it comes to buying a home.  Features that attract one home-buyer may repel another.

          However, the one feature of interest to every home-buyer is price.  Getting the most home for your money is paramount.  The real problem is figuring out whether that fixer-upper on one street is a better buy than the home in next-to-new condition two blocks away.  That's why knowing what to look for before you buy can save you time, energy and money down the line.

          The first step is figuring out what kind of house you need.  A good buy is only a good buy if it meets your current and future living requirements.  Before shopping for a home, decide how much space you and your family require.  How many bedrooms, bathrooms?  Is a family room necessary?  Do you need a layout that will accommodate a lot of entertaining?  Do you prefer a spacious or compact work space in the kitchen?  If you have small children, can the house easily be childproofed?

          Evaluate the front and back yards.  Is there enough space to accommodate your children?  Do you want a park-like or garden setting?  Do you enjoy yard work and gardening, or do you want a low-maintenance yard?  Take into consideration the cost of extensive landscaping and upkeep.

          Next, determine how much work is required to make the house you are considering livable.  Make an honest assessment of your fix-it abilities.  How much work are you willing to do or pay someone else to do?  Do you have basic decorating, carpentry and plumbing skills?  If you plan to learn as you go, make sure you have accurately determined what you are getting into.  Ask an experienced friend, family member or your real estate agent for their opinion, and be sure to consider how much remodeling inconvenience the rest of the family can handle.

          Unless you are ready and able to tackle a major remodel, look for a house or condominium that needs only cosmetic improvements.  These include painting, wallpapering and replacing items like flooring, window treatments, bathroom and kitchen fixtures, light fixtures, cabinet and interior door hardware and appliances.  Remember that even these simple changes can be costly if you have to make many of them.

          Beware of improvements that seem easy enough at first glance buy may turn into major headaches and require a lot of money once you've moved in.  Remodeled kitchens and bathrooms, changes to the floor plan, room additions and redesigned landscaping are examples of seemingly minor changes that can easily eat away the money you thought you saved by selecting a so-called "bargain priced" home.  Of course, you may be perfectly willing to spend whatever money is needed to customize the house to match your tastes and needs.

Make sure major systems in the house are in good working condition.  The furnace, air-conditioning and plumbing should be up to date, since repairs can be costly.  Your agent can arrange to have a professional inspector determine whether the electrical wiring and any room additions are to code.  Local utilities often offer free or low-cost inspections to tell you if the house is energy-efficient.

          Look for a house with universally popular selling points.  If you're impressed, the next buyer down the line is bound to be, too.  For example, a roomy, modern east-to-clean kitchen is the best selling point a home can have.  A house with only one bathroom is less desirable than a house with two or more.  Many buyers expect at least three bedrooms, with a master bedroom that offers a feeling of privacy.  Lots of storage space and closets, especially walk-in closets, will be a real selling point.  Family rooms or "great rooms" also are desirable.  On closer examination, a house that looks like a bargain may lack some of these key features.

          Don't forget the old adage:  location, location, location.  Unless you're looking for a fixer-upper, the house should be in a condition that is comparable to other homes in the neighborhood.  Avoid buying the biggest or fanciest home on the block.  Consider the amount of traffic or noise.  Homes located in a quiet area away from a busy street will command a higher price.  Make sure the schools in your district have a reputation for quality education and safety.  Nearby supermarkets, gas stations, restaurants and theaters also will make a location more desirable.

          Good community facilities also add appeal; pools, athletic fields, community centers, libraries and hospitals all add to a neighborhood's value and desirability.  Transportation needs also should be considered.  Is local public transit available?  How long are typical commutes to places of current and potential employment?  Are there several alternate route?  How close is a major airport?  All of these can affect a home's pricing.

          Consider the cost of living in a home.  It's important to consider not only purchase price but the monthly cost of living in a home.  Estimate your utility and maintenance costs.  For example, will the house need to be painted on a regular basis and will you need to spend money maintaining a swimming pool? Ask your agent about the property tax rate and whether increases are anticipated.  Will you have to pay special assessments for a homeowners association?  Consider the point in the life cycle of major household systems, such as the furnace, air conditioning, roof and kitchen appliances.

          You can find a bargain!  Your first step should be to seek out a knowledgeable real estate agent with experience in the market areas where you wish to purchase a home.  Your agent can help you locate those properties that truly are "bargains" and help find the home that most closely matches your desires and needs.

if you know of someone who would appreciate the level of service I provide, please call me with their name and number, and I'll be happy to follow up and take great care of them. 

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Top 10 Reasons to Hire a Real Estate Agent

By:  Elizabeth Weintraub

1. Education & Experience

You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers

Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will whip out her sword and keep the builder's agents at bay, preventing them from biting or nipping at your heels. If you're a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good agents are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an agent's success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

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 Get the Word Out: It’s a ‘Good Time to Buy’

                                                               By Beth McGuire

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