AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/A Roaming Vet Plants Rootshttp://realestate.aol.com/blog/2011/06/28/a-roaming-vet-plants-roots/http://realestate.aol.com/blog/2011/06/28/a-roaming-vet-plants-roots/http://realestate.aol.com/blog/2011/06/28/a-roaming-vet-plants-roots/#commentsFiled under:


In 2004, Scott was living in Charleston, S.C., and getting tired of the renter's grind. So after looking into his homebuying options, he decided to apply for a mortgage through the U.S. Department of Veterans Affairs.

For a roving Coast Guardsman like Scott Dow, renting was a way of life. But after 21 years of service, Scott knew it was time for a change.

And thanks to the unique perks afforded to veterans through the VA loan program, he was able to not only buy his first home, but also trade up for an even better property.

VA loans are guaranteed by the Veterans Affairs office and provide qualified servicemembers with several perks that civilian buyers don't have. For instance, buyers who qualify for VA loans are not required to pay a down payment at closing, nor do they have to pay private mortgage insurance for falling short of 20 percent equity in the house. (Learn more about VA loans here.)

"You can go 'no money down,' which is something that's pretty rare today," says Scott, "especially with the housing situation the way that it is."

Armed with his VA home loan pre-approval, Scott found a two-bedroom townhouse unit that seemed like the perfect starter home. But if Scott did his homework on loan products, then he may have skimped on researching the ins-and-outs of townhome living.

"There are some pitfalls about townhomes I didn't really think too much about -- noise factors, bumping on the walls, those types of things," he said. All the types of nuisances that you're likely to encounter while living under one roof with four families.

Not quite satisfied with his first purchase, Scott decided that he could do better. So with the momentum of the 2004 housing market at his back, he decided to make a gutsy move, and trade up to a better home.

In the summer of 2005, Scott had only been living in the townhome for six months when he put it on the market. To his delight, the home not only sold, but the buyer paid substantially more than what he had bought it for.

"I purchased for $145,000 and sold for $185,000," Scott says. "And I was content with just taking the $40,000 and putting it in the bank, and just take a little bit of time, rent a place around the corner, and then be a little bit more selective on another trade-up home."

But once he got a taste for homeownership, the prospect of returning to a life of renting suddenly seemed less than appealing. Upon arriving at the temporary rental, he knew it wouldn't work out.

"It was just filthy and there was just no way that I would be happy living there -- nor would my fiancée Jackie," he says. With little time to find a suitable rental, Scott and his fiancée were forced to live in hotels while they searched for a new home. Then, just as suddenly as he sold his townhouse, Scott found what he was looking for.

"I just came upon this cute little house -- two stories, wrap-around porch," he says. At around 1,600 square feet, it was just what Scott needed for his growing family. But this time around, there was a slight hitch in the buying process.

After talking the seller down by several thousand dollars off the list price, Scott informed him that he'd be using a VA loan for the purchase. But the seller remained unconvinced of one of the loan's more popular features.

"I was not obligated to put a down payment down, and I tried to explain that to the seller of the home -- and he wasn't buying it." So in the interest of closing the deal fast, Scott relented, and agreed to pay a $10,000 down payment.

Of course, had he known what he'd find in the home, Scott might have thought twice before obliging.

"About a year later we discovered why the owner did not want us to live in the house prior to the sale of it ... there was no cold water supply to the guest bathroom," he said.

In hindsight, Scott says, he would have paid for a home inspection before closing on the deal.

But barring these minor missteps, he and Jackie say that they're thrilled to have their own home, and are most certainly glad for the options offered by the VA loan program.

"I just can't overemphasize what a tremendous value it is to the veteran and his family," he says.

 

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]]>MyNextMoveAol Real Estate Staff2011-06-28T18:06:00+00:00From the Big Apple to a Georgia Peachhttp://realestate.aol.com/blog/2011/06/20/from-the-big-apple-to-a-georgia-peach/http://realestate.aol.com/blog/2011/06/20/from-the-big-apple-to-a-georgia-peach/http://realestate.aol.com/blog/2011/06/20/from-the-big-apple-to-a-georgia-peach/#commentsFiled under:



Every year, the post-college exodus sends young revelers in search of the hippest cities in America but perhaps none more coveted than New York. So when Georgia native Meredith Garcia landed an apartment in the Big Apple, she thought she'd found a peach of a deal.

"Back then, I was just looking to have fun with my friends, and space didn't really mean a lot to me," she says of her New York apartment.

But as rent began to soar and her priorities started to shift, Meredith found herself in a less-than-glamorous arrangement -- as one of three roommates living in a one-bedroom, one-bath apartment struggling to make ends meet.

On top of her housing woes, Meredith was becoming more serious with her longtime boyfriend, Zach, and the couple was looking to take the next step in their relationship.

"We got to the point in the relationship where somebody had to make a change, and I made the decision that it was time to come home to Atlanta," she says.

In November 2010, Zach and Meredith began searching for their first home together in earnest. "The prices were good, the interest rates were good, and we were ready," she says.

But what Meredith may not have realized at the time is that moving away from New York didn't have to mean giving up the ultra-hip neighborhood. Back in Atlanta, there were plenty of areas to rival the lure of the East Coast hotspot -- and for a fraction of the price.

What's more, she discovered that Southern living doesn't have to mean antebellum architecture; there are plenty of contemporary options for a young and dynamic couple to choose from.

Meredith said that while weighing their options, "we thought: 'Do we go for the single-family home, or do we go for the townhouse that has everything we want?' And the choice kind of became clear that we were going to go for that modern, younger, cool house."

There was still one hurdle. Zach and Meredith were not yet married, and so the buying process required slightly more finesse.

"We had to sign all this paperwork saying that I am 'gifting' him this money," she says of the mortgage, with a chuckle. "Which is my gift too, because it's our house.... We made sure that both of our names are on the deed."

After all was said and done, the young couple had found a centrally-located home that even the most jaded New Yorkers could admire.

"We have a movie theater, a wine cellar, an amazing master bathroom and, even more importantly, we have an amazing neighborhood."

With their house hunt finally coming to a close, the couple can now spend their time worrying about more important matters, Meredith says -- like their wedding day.

"Even though it was a longer process than we'd actually envisioned, it was completely worth it," she says. "We did it together, and we made the right choice, and we're very excited."

 

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]]>MyNextMoveStefanos Chen2011-06-20T15:17:00+00:00A Road Less Traveledhttp://realestate.aol.com/blog/2011/06/14/a-road-less-travelled/http://realestate.aol.com/blog/2011/06/14/a-road-less-travelled/http://realestate.aol.com/blog/2011/06/14/a-road-less-travelled/#commentsFiled under:


"Recession" was a seldom-heard word when Jonathan Orpin began his home search three years ago. Home prices seemed to be on a never-ending climb and sellers had all the leverage in the world.

But rather than moving lockstep with the rest of the market, Jonathan blazed a different trail. He decided to build his own home.

"It was a hard decision for us to move at all," says Jonathan, who prior to making his decision, had lived with his family in a scenic enclave of Rochester, N.Y., for several years. "But it seemed like it was time, as I like to say, to get a view from a different mountain."

So with his wife, son, and family pets in tow, Jonathan set out to travel the country in search of a new place to call home - and they did it without driving on any major highways.

"We could feel our old life kinda melt away a little bit," says Jonathan, reflecting on the transformative journey.

The family finally made their way to Portland, Ore., and fell in love with the area. But when they began their home search in earnest, they ran into an impasse.

"Our first thought was just to buy an existing home," he says. "It was, however, the height of the market and the homes we were interested in were, frankly, overpriced."

But Jonathan, a homebuilder by trade, wasn't ready to give up on his West Coast dreams so easily. In their search for an existing home, they stumbled upon an idyllic hidden lot with a creek running nearby.

Thus began a grueling 18-month process of designing, permitting and building the home from the ground up. Even with Jonathan's experience in home construction, the stakes were higher than usual. This would be his first home project in the West, and he had a lot to prove -- both professionally and to his family.

"Every single decision had to go through a huge number of filters and a lot of talking and debating and research," he says. "That was a much longer row to hoe than we had thought."

Luckily for Jonathan, home design is a family affair in the Orpin residence. His wife, Maxine, did the interior design for the home. There were several features that the Orpins wanted to include in their new home, and key among them was eco-friendly design.

The home was built with sustainable wood sources, fitted with solar photovoltaic panels to supplement their energy usage, and it even included a unique plumbing system that heats their water with the warmth of the sun.

"Most days we're able to shower or wash our clothes with sun-heated water," he says.

Despite all the hard work that went into building their 2,000-square-foot home, within two years of starting construction, the home was ready to move into. At a time when many homebuyers looked at their homes as an investment, Jonathan and his family had built their home from the ground up, with only their futures in mind.

"The last few years have been an interesting, certainly challenging, and sometimes difficult journey of moving.... [especially] in the middle of a recession," he says. "Honestly, it was probably harder than we thought it was going to be, but frankly, we'd do it again."

 

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]]>MyNextMoveStefanos Chen2011-06-14T14:41:00+00:00Going Green to Save Greenhttp://realestate.aol.com/blog/2011/06/07/going-green-to-save-green/http://realestate.aol.com/blog/2011/06/07/going-green-to-save-green/http://realestate.aol.com/blog/2011/06/07/going-green-to-save-green/#commentsFiled under:


With retirement around the corner, homeowners Marilou Cook and her husband Al knew they needed to consider downsizing. What they didn't know, however, was just how drastically their next move would change their lives for the better.

Marilou and her husband were living on a sprawling 23-acre property in Colchester, Conn., and loving it. Their four-bedroom, 5,000-square-foot, Colonial-style home was the picture of pastoral bliss.

"It was very country, very relaxed, very pretty, and there was lots of wildlife," Marilou Cook says.

Best of all, the home provided plenty of space for her passion of breeding golden retrievers. But there was also a downside to owning such a wide-open estate.

"We were very happy living in that house," she says. "However, it did require an awful lot emotionally, physically and economically to maintain."

The home was oil-fired, and required a massive amount of fuel to heat. Cook estimates that they burned through 1,300 gallons of oil a year -- a figure that would make most homeowners wince, let alone a couple on a post-retirement fixed-income.

With their savings in mind, Cook and her husband began searching for a new home -- something reminiscent of the country living they'd grown to love, but without the burdensome ownership costs.

Within five months of listing their property, they had found a buyer. All that was left for the couple was to find their future home. And so, to the future they looked.

Intrigued by the prospect of cutting down their energy bills, Cook began researching homes with eco-conscious features, like geothermal heating and solar paneling. That's when she discovered the green-homes community in her area.

"The opportunity to not have to rely on fossil fuel at all" was very appealing to her, and the community they had found relied on geothermal and other eco-friendly energy sources. The couple was sold.

"This house has a lot of the features we were looking for," she says. "It was smaller in size than the house we previously had, the master-bedroom was on the first floor, [and] it was on a much smaller piece of property, but it still had a very country feel to it."

Best of all, the home's energy savings made a real difference in the couple's monthly upkeep. "We now have only one bill -- a power bill. We don't have a bill for gas or oil. And that power bill has averaged ... a little under $200 a month -- so that's a significant savings over the expenses we used to have," she says.

Add to those savings a $5,000 tax rebate that the couple received in 2009 for meeting state energy-saving requirements, and the home already has proven to be a very sensible investment.

Overall, the move has inspired more than a change of address for the retired couple.

"We are now interested in pursuing as many things as we can to see how we can reduce our costs in an eco-friendly way," Cook says. She plans on adding more solar panels to the home in the years to come.

In time, the couple hopes to possibly get off the power grid entirely.

"It's important to the world," she says, "but it's also important to your pocketbook."

 

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]]>MyNextMoveAOL Real Estate Editors2011-06-07T03:55:00+00:00Sweat Equity Saves the Dayhttp://realestate.aol.com/blog/2011/05/31/sweat-equity-saves-the-day/http://realestate.aol.com/blog/2011/05/31/sweat-equity-saves-the-day/http://realestate.aol.com/blog/2011/05/31/sweat-equity-saves-the-day/#commentsFiled under:


In today's housing market, buying a foreclosure can mean big savings at closing -- or a massive headache waiting to happen. But for avid DIYers Valerie Stow and her husband, Jason, meeting the challenge was half the fun.

They proved that, with a little elbow grease and creativity, even the tightest housing jams can be fixed.



The Stows bought their first home in 2001, a three-bedroom, one-bath ranch-style house in Grand Junction, Colo. It was exactly what the couple needed at the time, but at just over 1,000 square feet, they knew they'd eventually have to make room for their growing family.

So in late 2010, with both home prices and mortgage rates sinking to record lows, the couple decided to try their luck in the foreclosure market.

Generally speaking, foreclosures are approximately 20 percent cheaper than conventionally listed homes, according to the National Association of Realtors. But the risks involved with buying an uninhabited home, as well as the complexities of the buying process, can make most homebuyers think twice. Valerie, though, was game.

"With foreclosures, you never know what you're going to get," she says. "But, overall, the house wasn't trashed, and, being the DIYers that my husband and I are, we knew that we could fix it...."

The couple found a three-bedroom, two-bath home with vaulted ceilings and plenty of space to start a family. And with a little sweat equity, they were ready and willing to transform the house to fit their vision.

There was just one problem -- their real equity was tied up in their still-unsold first home. After an unproductive winter on the market, the house had only attracted one low-ball offer that Valerie and her husband were unwilling to accept. If they couldn't sell before moving into their new home, they'd be forced to pay on two separate mortgages. It left them with a difficult decision to make: Accept the low-ball offer or rent out the home until another buyer could be found. So they made what they saw as the best of a bad situation.

"Being landlords was something that we didn't want to get into, but we had no choice," she says. "Sometimes you have a plan and life has a different idea for you. You just have to adapt...."

With a tenant in their old house, the couple could at least stop worrying about their double-mortgage dilemma. It was an imperfect solution, but becoming landlords allowed them to focus once again on their new home. And while most of their equity was still tied up in their first home, the industrious duo found ways to fix up their home on a budget.

"Bringing out our DIY hats, we just got right on small little projects that we could either do for free or for little money," like painting and landscaping, she says. But even after the setbacks, Valerie and Jason are still optimistic about the future.

"Even though things don't go as planned, Jason and I are still really happy we made the move," she says. And best of all, the couple is about to undertake their biggest project to date -- parenthood.

"All and all, things are working out like they should, and we couldn't be happier."

 

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]]>MyNextMoveAol Real Estate Staff2011-05-31T17:00:00+00:00A Race Against Timehttp://realestate.aol.com/blog/2011/05/24/a-race-against-time/http://realestate.aol.com/blog/2011/05/24/a-race-against-time/http://realestate.aol.com/blog/2011/05/24/a-race-against-time/#commentsFiled under:


Some families take months, even years, to find the perfect home. But with the homebuyer tax credit deadline looming, Robin Taney had to make the biggest financial decision of her life in just a matter of days.


In 2003, Robin and her soon-to-be husband, David, bought their first home together -- a two-bedroom, one-bath Colonial in Rochester, N.Y. It was everything that the young couple could have wanted. Or at least they thought it was. In 2008, they took custody of their 18-month-old foster son, and everything changed.

"Bringing him home was the greatest thing we'd ever done," Robin says. "But it also made us realize how much we needed a bigger house."

The prospect of buying a new home was anything but certain. The couple was paying down a significant amount of debt at the time, and David worried that larger mortgage payments could sink them. Worse still, if the couple couldn't sell their current home before closing on the new one, they risked having to pay two mortgages.

There was, however, an added incentive for buying a new home -- the 2010 homebuyer tax credit. The federally funded program provided a tax credit of $6,500 to repeat buyers and $8,000 to first-timers. The only catch? Buyers had to have their signed purchase offer in by April 30. The couple had just over a month to not only sell their home, but also find a new house and finalize an offer.

Undeterred, Robin convinced her husband that they should at least list their current home on the market. As luck would have it, her determination paid off in spades.

"We put the house on the market on March 15 and had an offer 8 days later," she says. "The buyer had no contingencies and didn't ask for any closing costs, so we had a clear shot to get out of the house without any problems."

The couple had cleared the biggest hurdle that repeat buyers face, but with just two weeks left before the cutoff date, they hadn't even begun to consider new homes.

"We just knew we had to keep our momentum going in order to meet our deadline," Robin says, so she enlisted the help of a real estate agent and scheduled home viewings for every night of the week. And after several nerve-racking days of last-minute searching, she found a three-bedroom in the scenic village of Hilton, just 20 minutes from Rochester.

"We took a drive out here and it was rolling green farmlands and little villages dotting the landscape," she says. "We just loved the picture that it painted and thought it would be a great place to raise a family."

They placed an offer on the home and hoped for the best.

Just seven days before the deadline, the seller's broker called to tell them that their offer was accepted. In just a month's time, Robin and her family had blown through the entire homebuying process.

"The biggest lesson we learned in all of this is being open to opportunity, being willing to take a risk, and being a little bit of a pit bull in terms of getting what you want," she says. "We did our research, we made sure the time was right, and we found the house of our dreams."

Watch more My Next Move videos.

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]]>MyNextMoveStefanos Chen2011-05-24T23:00:00+00:00A Home They Both Could Lovehttp://realestate.aol.com/blog/2011/05/17/a-home-they-both-could-love/http://realestate.aol.com/blog/2011/05/17/a-home-they-both-could-love/http://realestate.aol.com/blog/2011/05/17/a-home-they-both-could-love/#commentsFiled under:


When motivational speaker Barry Maher moved with his wife from Santa Barbara to a golfing community in Victorville, Calif., he thought he was set for life.

After years of motivating clients to go the distance, it seemed that he had finally found his own finish line. The Victorville development had everything -- 27 holes of golf, two lakes, horse stables, a recreation center and giant pools.


"It was great for me. When I came home, it was like going on vacation and playing golf," Barry recalls.

But his wife didn't feel quite the same way. She soon learned that paradise isn't always what it's cracked up to be.

"My wife really needed a whole lot more to do. She was used to restaurants in Santa Barbara, going to plays and movies," he says. "Victorville didn't have the kind of stimulation she enjoyed."

On top of that, her commute to work every morning involved a 75-mile ride through a mountain pass which, depending on the weather, could turn a scenic drive into a nightmare.

Barry, too, was having second thoughts.

"Eventually it got old for me, too. I was getting tired of getting home from a 5- or 6-hour flight, sometimes late at night, and some of the drive would be on some pretty rural back roads."

So the couple decided to move out and find a new slice of heaven -- one they would enjoy equally. They scoured Southern California until settling on Corona, a bustling town in Riverside County, Calif. that spoke to both Barry's and his wife's interests. They set to work immediately.

"As soon as we settled on Corona, we put up seven offers, some of them on places we hadn't even seen -- contingent, of course, on us liking the place," Barry says.

When they saw their current house, they knew immediately that it was the one. Unfortunately, the sellers thought their offer was too low. But because the couple knew that market conditions were softening in the area, they stuck to their guns and waited.

"We couldn't afford to come up a whole lot more, but we stayed patient, and eventually they came back to us," he says. "They lowered their price considerably, and we were able to move in."

Today, the couple is still living the good life, but in a much more convenient location. Their new development has its own golf course, a fitness center, a recreation center and all the other luxuries that the couple first fell in love with in Victorville.

At the end of the day, Barry says, there's one comfort that dwarfs all the others.

"Most of all," he says, "My wife's a whole lot happier here."

For Barry's full story, watch the video.

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]]>MyNextMoveStefanos Chen2011-05-17T16:30:00+00:00A Short Sale Worth the Long Waithttp://realestate.aol.com/blog/2011/05/10/a-short-sale-worth-the-long-wait/http://realestate.aol.com/blog/2011/05/10/a-short-sale-worth-the-long-wait/http://realestate.aol.com/blog/2011/05/10/a-short-sale-worth-the-long-wait/#commentsFiled under:


The term "short sale" is enough to make many homebuyers bolt out the door in a panic. But when Jennifer Craft and her husband discovered that the house of their dreams was listed with the often-misunderstood sales tag, they didn't balk.

With a little luck and a lot of perseverance, the Crafts successfully navigated the short sale process and came out the other end with a fabulous new home.

In 2003, Jennifer and her husband purchased a starter home in Knoxville, Tenn. At the time, it was the perfect size for a new family.

But after a few years in the house, the couple was ready for something larger with a bit more character. So on the advice of a friend, they spoke to a Realtor about a spacious listing in a great neighborhood.

"From the quality of the granite countertops to the hardwood flooring, it was exactly what we were looking for," Jennifer says. And for the price, the couple would gain about 1,000 square feet for nearly $40,000 less than similar homes in the area. There was just one catch: The house was listed as a short sale.

A short sale is a home purchase in which the price falls short of what the original owner owes on the mortgage. The lender who issued the mortgage agrees to cut its losses and accept the proceeds from the sale, while the seller avoids the risk of foreclosure and, in some cases, has the outstanding debt forgiven. In an ideal scenario, the lender avoids a lengthy foreclosure process, the seller suffers less damage to his or her credit, and the buyer gets a home at a steep discount.

(Learn more about short sales here.)

The problem with short sales, though, is the uncertainty of the process. It could take several months before the offer goes through, and even after months of waiting, the home could still potentially be foreclosed on, or the owner could come to terms on a mortgage modification. And for repeat homebuyers like the Crafts, there's also an added risk in timing the transaction.

"We actually sold our first home in just 48 hours," says Jennifer. "We were amazed." With only a month until the new owners moved in, Jennifer and her family would have to move out regardless of whether their short sale offer was accepted.

Unwilling to rent for an indefinite amount of time, the family decided to move in with Jennifer's parents.

"You really have to be prepared to wait for an uncertain amount of time, which can be a strain on the family," she says about the temporary arrangement.

Jennifer lived with her husband and toddler son in her parents' house for four long months before getting confirmation that their offer was accepted.

When all was said and done, the Crafts purchased the four-bedroom, 2.5-bath home for $225,000 -- almost $40,000 less than what other homes in the neighborhood sold for.

And while Jennifer is the first to admit that the process is not for everyone, she says she's glad they went through with it.

"Because we were able to wait, now we have a great house in a great neighborhood," she says. "It was really worth all the struggle. We couldn't be happier."

To hear the whole story, watch the video above.

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]]>MyNextMoveAol Real Estate Staff2011-05-10T23:01:00+00:00Personal Letter Lands a Home Salehttp://realestate.aol.com/blog/2011/05/04/personal-letter-lands-a-home-sale/http://realestate.aol.com/blog/2011/05/04/personal-letter-lands-a-home-sale/http://realestate.aol.com/blog/2011/05/04/personal-letter-lands-a-home-sale/#commentsFiled under:


When Lorena Larez and her family needed to move out of their home in San Luis Obispo, Calif., to be closer to her husband's new job, selling was the least of their worries. It's what the move might mean to their children that worried her most.

"We have two young daughters, so we were leery about what that would entail," she says.

But as Lorena quickly learned, even in today's bewildering market, a little kindness goes a long way in buying the perfect house.

"After the process started, our home sold within the first week on the market. In a depressed market, that was great," she says. The real challenge, however, was finding a new home--and fast.

The family started looking at foreclosures for sale in the city of Clovis, Calif. The neighborhood had everything they wanted: great schools, close proximity to work and gorgeous homes. But try as they might, they couldn't close a deal.

"We bid on several foreclosures...and we were outbid every time, by $5,000 or $10,000," Lorena says.

After three unsuccessful tries, she gave up on foreclosures altogether and started searching for conventional listings. And when it came time to place an offer on the next property--a bright and sunny family home on a cul de sac--Lorena approached the purchase not just as a prospective buyer but also as the mother of young children.

Along with the offer, Lorena submitted a personal letter and a family photograph to the seller. In it, she described how one of her daughters had helped find the house and "was looking forward to having pool parties." The very next day, the sellers accepted the offer, telling Lorena that they really appreciated the sentiment. It turns out that the sellers had children too and liked the idea of the home going to another family. And that's not even the best part.

"The other person who was bidding, their offer was $10,000 over ours. But because of our letter and the photo, they chose us," Lorena says.

After the sale, the sellers remained in the community and even attend the same church as Lorena and her family. They still keep in touch.

In the end, the most important lesson Lorena took away from the experience is that personal touches make all the difference. And, when it comes to buying a home, sometimes selling yourself doesn't hurt either.

Watch more My Next Move videos.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
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]]>MyNextMoveAol Real Estate Staff2011-05-04T16:30:00+00:00Guts and Vision Transform a Homehttp://realestate.aol.com/blog/2011/04/25/guts-and-vision-transform-a-home/http://realestate.aol.com/blog/2011/04/25/guts-and-vision-transform-a-home/http://realestate.aol.com/blog/2011/04/25/guts-and-vision-transform-a-home/#commentsFiled under:


It takes a lot of vision--and more than a little chutzpah--to do what New Jersey homeowners Jeremy and Christina Gulish did. Where other house hunters saw only drab décor and outdated plumbing in their four-bedroom fixer-upper, this recently married couple saw opportunity.

"The house was pretty bland," says Jeremy about the Morristown, N.J., home. "It needed some upgrades, but we saw a lot of potential in it." Thanks to their keen instincts, that underwhelming house today is a bright and loving home for the couple and their newborn daughter.

When it comes to savvy real estate decisions, this wasn't the first time the Gulishes went against the grain.

After marrying in 2007, they were in the market for their first home when they found a charming two-bedroom "workman's cottage." There was just one catch: It was part of a two-unit, multifamily property, which meant that with their first home purchase, they would also become landlords.

"Right off the bat, I think both of us had a lot of trepidation about buying and being first-time homeowners and first-time landlords, because it meant the day we bought the house we also had to rent the back house," Jeremy says.

Despite the responsibilities that go along with being a homeowner/landlord, they took the plunge and actually came out ahead.

"From a financial standpoint, the tenants shared the mortgage payments with us, " Jeremy says. "It allowed us to buy more home than we would have been able to on our own."

Eventually, though, they needed more space for their growing family. The expectant parents would find their solution in a 4 bedroom, 2.5-bath house just a half-mile from their first home.

"The house was very functional, but it had no personality," Jeremy says. But that would work in the couple's favor, as it meant they'd face less competition on the offer. The only real obstacle awaited them on the day of the closing.

"When we showed up for the walk-through, the house was a nightmare," he says. "There were boxes everywhere, stuff throughout the house, movers... It was in nowhere near condition to be closed that day."

By holding out on the final paperwork until the house was brought up to snuff, Jeremy was able to close the following day. After that, it was only a matter of realizing their vision.

They upgraded the kitchen, painted all the walls, redid all the plumbing and added some cosmetic fixes throughout the house. After all was said and done, they spent around $25,000 on upgrades, but Jeremy says the renovations were well worth the price tag.

"While the real estate market isn't great right now, we know down the road it's going to pay off, because we're not looking to sell anytime soon," he says.

The greatest addition to the home by far, though, says the happy couple, is their new baby girl Eliana.

To see their full story (and adorable photos of Eliana), watch the video.

And for advice on the best home improvements to consider in your new home, check out our expert Q&A with renovation consultant and former executive producer for "This Old House," Bruce Irving.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
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]]>first time home buyersfixer-upperhome improvementlandlordmorristown njmulti-family homesMyNextMoverenting a homeAol Real Estate Staff2011-04-25T16:00:00+00:00A Home Grows in Brooklynhttp://realestate.aol.com/blog/2011/04/18/a-home-grows-in-brooklyn/http://realestate.aol.com/blog/2011/04/18/a-home-grows-in-brooklyn/http://realestate.aol.com/blog/2011/04/18/a-home-grows-in-brooklyn/#commentsFiled under:


When Mark and his wife married in 2007, their one-bedroom Brooklyn apartment was just what the newlyweds needed. But when home prices took a dip in their hip Brooklyn enclave, they knew it was time to make a move.

"It was great at the time," Mark says, "but we knew that it was small and we definitely wanted more space."

The couple knew exactly what they wanted - two bedrooms, two baths, and that ever-coveted New York dream, a private parking spot. Finding all three in Brooklyn's competitive market was going to be a challenge, but a break in home prices gave the couple renewed hope.

"Some of the things that were just outside of our range were now in our ballpark," Mark recalls. "So we started looking in areas that had all the amenities we wanted."

After several fruitless meetings with realtors, the couple still hadn't found a home that met their expectations. That is, until the couple happened to drive past an open house sign for a brand new building.

"We were so surprised when we came inside - two bedrooms, two baths, gorgeous floors...and on top of everything else, it had a parking spot," Mark says. "We fell in love with it."

Enamored with their find, Mark and his wife decided to go above and beyond the average 10 to 15 percent down payment-- they offered a full 20 percent. (Find out more about down payments here.) Since it was a brand new construction, "we figured we could be a little more aggressive in the beginning," he says. And it paid off.

The hard part, however, was still to come.

"Negotiating with the management company, I thought, was going to be the hard part - that was actually easy," he says. "Going to the bank and applying for the loan was the hard part."

Mark was surprised by the sheer volume of paperwork that went into securing the mortgage. "They really want to make sure you have no outstanding debt," he says. At one point, the lender dug up an $80 debt from a local gym from 8 years ago.

But after mounds of paperwork and back-and-forth with the bank, Mark and his wife finally had their dream home. Dealing with the bank took about 4 months, Mark says, and new buyers should take that into account when planning their purchase.

"I'm a little tired from lifting boxes and my fingers are numb from signing my name a thousand times," Mark says, "but it's just nice that all the work that me and wife put into finding a new home came to fruition - this is now a reality for us."

Watch the video for Mark's full story.

To learn more about the home buying process, visit our first-time home buyer guide.

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]]>brooklyn real estateclosing costsdown paymentfirst time home buyershow to buy a homeMyNextMoveAol Real Estate Staff2011-04-18T13:50:00+00:00A Once and Future Homehttp://realestate.aol.com/blog/2011/04/11/a-once-and-future-home/http://realestate.aol.com/blog/2011/04/11/a-once-and-future-home/http://realestate.aol.com/blog/2011/04/11/a-once-and-future-home/#commentsFiled under:


After her divorce in 2002, Carol had to sell the only house her three children had ever called home. She would soon join the 3.6 million unmarried women--two-thirds of whom were previously married--who've recently become homeowners. As of the latest American Housing Survey, divorced women account for 20 percent of the total home buying population.

But even after buying and renovating the two-bedroom house on Long Island that she would move into with her daughters, Carol couldn't help but feel a sense of loss for the family home she had to sell. "The day we moved out was a very painful process," she says. Until a chance encounter with her old neighbors offered her a once-in-a-life-time opportunity to rewrite history--to buy back the house her children had grown up in.

"I always told my mom, since the day we left, we're going to get the house back, we're going home," says her daughter Natasha. "I always just had a feeling that it wasn't over for us here."

As it turns out, Natasha was right. Carol and her daughters have been back living in their once-and-future house for three years. "I pinch myself every day," Carol says. "I moved up from a two-bedroom apartment to a five-bedroom home. And more importantly, that's the key word--it's home."

Watch the video for Carol's full story.

Want more information about divorce and real estate? See Five Real Estate Questions for Divorcing Couples.

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Find out how to calculate mortgage payments.
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]]>divorceMyNextMovereal estateAol Real Estate Staff2011-04-11T12:00:00+00:00Home Inspection Red Flags for Buyershttp://realestate.aol.com/blog/2010/11/22/home-inspection-red-flags-for-buyers/http://realestate.aol.com/blog/2010/11/22/home-inspection-red-flags-for-buyers/http://realestate.aol.com/blog/2010/11/22/home-inspection-red-flags-for-buyers/#commentsFiled under:

home inspection After months of hunting, touring and haggling, you've finally found your perfect house. Like most buyers, you'll have it inspected. The home inspection is your chance to find out what's really going on under the hood before you commit to the purchase. Over the course of a few hours, the home inspector will probe every nook and cranny of the property's exterior and interior, as well as review critical home systems.

"The intention during that inspection is to educate the buyer on the condition of the home that they're about to purchase," says Charles Furlough, vice president of Pillar to Post, a professional home inspection company serving the U.S. and Canada. "The bottom line is that you need to know what you're buying."

Most home purchase contracts include an inspection contingency, which gives the buyer the right to back out of the deal if the inspection uncovers major flaws. Alternatively, the buyer can ask the seller to take care of necessary repairs. If your inspection turns up any of the following conditions, it's time to return to the negotiating table.
Termites and other live-in pests: The home you've fallen in love with may also be a favorite for the local termite population. The sooner termites are detected, the better. The same goes for other wood-devouring pests like powder-post beetles. Keep in mind that getting rid of the intruders is just the first step. Once the problem has been addressed, make sure a pest control expert advises you on what needs to be done in order to prevent their return.

Drainage issues: Poor drainage can lead to a host of pricey problems, including wood rot, damp or wet basements, perennially wet crawlspaces and major mold growth. It all starts on the roof of a home, where rainwater is directed─or not─into a system of gutters and downspouts that should carry water well away from the structure. Proper grading at the property's ground level completes the drainage scheme. Correcting grading and replacing gutters is a lot less costly than undoing damage caused by the accumulation of moisture.

Pervasive mold: Where moisture collects, so grows mold, a threat to human health as well as to a home's structure. Improper ventilation can be the culprit in smaller, more contained spaces, such as bathrooms. But think twice about buying a property where mold is pervasive -- that's a sign of long-term moisture issues. Says Furlough, "When mold is in a specific location, it's relatively easy to clean and get rid of. But when it's just all over, that can be very difficult to deal with."

Faulty foundation: A cracked or crumbling foundation will call for attention and repair, with costs ranging from moderate to astronomically expensive. The topper of foundation expenses is the foundation that needs to be replaced altogether--a possibility if you insist on shopping "historic" properties. Be aware that their beautiful details and old-fashioned charms may come with epic underlying expenses.

Worn-out roofing: The roof soon to be over your head likely will have its own set of care requirements, so enter any sale agreement with an awareness of your own cost tolerance for roof repair versus replacement. The age and type of roofing material will figure into your home inspector's findings, as well as the price tag of repair or replacement. An older home still sheltered by asbestos roofing material, for example, requires costly disposal processes to prevent release of and exposure to its dangerous contents.

Toxic finishes: Asbestos may be elsewhere in a home's finishes, calling for your consideration of containment and replacement costs. Other expensive finish issues include lead paint and, more recently, Chinese drywall, which found its way into homes built during the boom years of 2004 and 2005. This product's sulfur off-gassing leads to illness as well as damage to home systems, so you'll need to have it completely removed and replaced if it's found in the home that you're hoping to buy.

Your home inspection results will also cover everything that's right with a property, so be ready to weigh the pros and cons and negotiate for correction of larger issues if it makes sense for the sale price and overall investment.

"Generally speaking, I think the thing for homebuyers to keep in mind ─ and even sellers, for that matter ─ is that issues that are found in a home inspection really should all be converted to dollars," advises Furlough. "Because there are very few, if any, problems with a home that cannot be repaired."

Tom Kraeutler is a home improvement expert for AOL Real Estate and host of "The Money Pit," a nationally syndicated home improvement radio program offering tips for homebuyers and sellers.

Interested in learning more about inspections and getting the biggest bang for your buck? Here are some AOL Real Estate guides that might help:

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Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
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]]>asbestosdamp basementDampBasementfoundation crackFoundationCrackhome inspectionHomeInspectionmoldMyNextMoverooftermitesthe money pitTheMoneyPittom kraeutlerTomKraeutlerwet basementWetBasementTom Kraeutler2010-11-22T16:35:00+00:00HOAs: What Homebuyers Need to Knowhttp://realestate.aol.com/blog/2010/11/16/hoas-what-homebuyers-need-to-know/http://realestate.aol.com/blog/2010/11/16/hoas-what-homebuyers-need-to-know/http://realestate.aol.com/blog/2010/11/16/hoas-what-homebuyers-need-to-know/#commentsFiled under:

You may recall the story of Captain Michael Clauer and his wife, May. The couple, who live in Frisco, Texas, owned their $300,000 home free and clear. But when Michael, an Army reservist, was deployed to Iraq, his wife got into a funk and failed to pay their $800 homeowner association dues. Next thing you know, the Heritage Lakes Homeowners Association foreclosed on the house, then sold it for just $3,500.

The Clauers' case demonstrates the power that homeowner associations (HOAs) can wield. In Texas, for example, HOAs can foreclose on a home without a court order. "That's more power than our local government has," May Clauer told HousingWatch. "We did not know HOAs could do that."

Understand HOA Rules Before You Buy

Like a lot of homeowners, the Clauers didn't pay much attention to the HOA's rules until they had a problem. That's why it's important for homebuyers who are thinking about purchasing a house in a community covered by an HOA to carefully review:
  • its regulations -- commonly called "covenants, conditions and restrictions" (or "CCRs");
  • its dues structure.

"You need to know what the HOA assessments are, what you are buying into and what it will cost you, " says Sandy Denton, chairman of Texas Community Association Advocates, a trade group that watches legislative action for community associations and individual homeowners.

Typically, homebuyers are given this information, but if you're not, be sure to ask for it. For good general background information, download Community Matters -- What You Should Know Before You Buy from the Community Associations Institute.


Find Out What the HOA Can Do If You Don't Comply

Texas is only one of many states in which HOAs have the right to foreclose on properties if owners don't meet their association obligations. In some states, HOAs even have the power to garnish wages and withhold services.

In addition to finding out the HOA's legal rights related to foreclosure, also ask about policies related to fines for running afoul of HOA rules. In some states nonpayment of fines, unlike dues, cannot form the basis for a foreclosure proceeding.


A Growing Backlash Against HOAs

The Texas legislature is currently considering a bill that, if passed, could place some limits on homeowner associations' power to foreclose on properties. Supporters of the restrictions point to Captain Clauer's story, as well as that of a San Antonio homeowner whose home was foreclosed on for owing less than $800 in assessments.

"The horror stories you hear about are pretty minimal relative to the number of associations in the state," Denton says.
"Only .12 percent of 1.9 million homes were actually foreclosed on in Texas in 2009."

Supporters of current HOA practices say that abuses have been exaggerated and don't represent the majority of homeowners' experiences with HOAs, in Texas or nationwide. In a national survey of community association residents conducted last year by independent research firm Zogby International, more than 70 percent of community residents said that they were satisfied with their association experience, and 87% opposed additional government regulation of their community associations.

Impairing the ability of HOAs to take action against a few bad apples would be a disservice to the vast majority of homeowners who enjoy amicable relationships with their associations, Denton says. Plus, it would likely raise HOA dues, causing more expense for homeowners.

"If my neighbor doesn't pay an assessment," Denton says, "I have to pay more to cover it."

After all, people buy into a community because they want to live in the vision that the developer created. You need a mechanism -- the HOA -- to make sure these funds are paid to keep that vision alive. If the development is not cared for and allowed to deteriorate, that ultimately affects your home value.

Luckily, the Clauers' story had a happy ending. They settled the case in July and got back title to their house, free and clear.

For more on home buying and related topics see these AOL Real Estate guides:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.


 

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]]>hoaHOAsHomeowners associationknow everything about HOAsMyNextMoveCandy Evans2010-11-16T15:00:00+00:00Vacation Homes: Is Now the Time to Buy?http://realestate.aol.com/blog/2010/09/15/vacation-homes-is-now-the-time-to-buy/http://realestate.aol.com/blog/2010/09/15/vacation-homes-is-now-the-time-to-buy/http://realestate.aol.com/blog/2010/09/15/vacation-homes-is-now-the-time-to-buy/#commentsFiled under:

Deborah Rehyer of Vienna, Va. had just one requirement for buying a vacation home: It had to be waterfront.

Her search began in a region 90 minutes from her home, in Virginia's Shenandoah Valley. And her search ended on the opposite side of the state with a six-acre parcel on a tidal pond just off the Chesapeake Bay.

"Waking up in the morning is the best. I take my coffee out to the floating dock and watch the world wake up," Rehyer says of her vacation property.

Many of us visit vacation spots and wonder what life would be like to live there. Often, we pick up the real estate brochures searching for a cheap vacation home or the luxury house of our dreams.

Even as the national real estate market remains stagnant, professionals and experts say that the market for vacation homes may be the most attractive it's been in years, with prices down and interest rates low.


"If you're looking at getting a recreational home or a home where you think you want to spend most of your time in -- maybe the next portion of your life -- it's doable now. You can get in the door," says Tom Kelly, syndicated real estate newspaper columnist and co-author of "How a Second Home Can Be Your Best Investment."

The number of vacation-house purchases rose slightly in 2009, up 1 percent from 2008, according to the National Association of Realtors' 2010 Investment and Vacation Home Buyers' Survey. Although the number is still down from the vacation-home-sales heyday of 2005 and 2006, buyers are returning to the vacation-home market, the NAR says.

The typical vacation homebuyer has a median age of 46 and a median household income of $87,200. Half of all vacation home buyers in 2009 purchased their second home in the South; the typical property was a median distance of 348 miles from their primary residence, according to the NAR.

If you are among those considering buying a vacation home, think about the following before starting to expand your real estate portfolio.

Preliminary Analysis/Affordability

If you dream of owning a home away from home, start your search by determining how much home you can afford. If you haven't saved enough for a cash transaction, you'll need a mortgage, and the bank can help you determine what you can pay. Loan officers determine the amount of mortgage and type of mortgage for which you qualify based on several factors, including the amount of cash you have for a down payment, your debt-to-income ratio and your credit score. (Also see our guide: "How Much Home Can I Afford?")

Regarding the down payment, banks have gotten tight on requirements, often asking for between 20 percent and 40 percent for a down payment on a second home. Make sure you have money set aside for the down payment and closing costs.

To calculate your debt-to-income ratio, add your current monthly home payment, the projected payment of your second home and any other debt (car payments, student loans, credit cards, etc.) and compare it with your monthly gross income. Know that lenders will not give loans to those who have a debt-to-income ratio of more than 36 percent, so consider this in addressing your price range.

Also, make sure your credit score is in its best form. (Still wondering how much home you can afford? Check out AOL Real Estate's Mortgage Affordability Calculator.)

Then ask yourself the following question: Do you plan to rent out your vacation property? NAR says only one in four vacation homebuyers plan to rent out their properties to others. But one in five investment homebuyers plan to use their purchases for personal vacation use and/or as a family retreat. (Also see our guide: "Rent Out Your Home as a Vacation Property and Make Money.")

The difference between a vacation home and an investment property, according to the Internal Revenue Service, is 14 days: If you rent a house out up to 14 days a year (which you can do tax-free and still qualify for mortgage deductions on your taxes), it's a vacation home; if you rent it out and spend less than 14 days per year in it for personal use, it's an investment property. Make sure you calculate the tax ramifications when considering what you want out of a property.

Still worried about affordability? Consider shopping to buy a vacation home and asking the owners whether they are interested in owner-financing, Kelly says. "Ask what's possible. If an owner sees a terrific family that's willing to put 10 to 15 percent down and will cash them out in five years, they may be amenable."

The Fun Stuff

Beach, mountains, island getaway, rural retreat? When looking at homes, make sure it has something special - a view, proximity to main attractions, a three- or four-season resort with vacation appeal to all or waterfront. Finding a place that has one quality with universal appeal boosts one's enjoyment of a space and is good for resale. "Chances are if you like something about a place, others will too," Kelly says.

A rule of thumb for buying a vacation home is to find one within a three-hour drive of your primary residence so it's accessible on weekends. Kelly says people tend to stick with this rule, mainly because they enjoy a close corps of friends and family at their primary residence and want to stay close. Still, the NAR reports that 50 percent of vacation homebuyers in 2009 purchased a home 500 or more miles from their primary house, so don't restrict your search if you, say, live in Ohio and really want a home on North Carolina's Outer Banks.

Taxes and Oversight

A quarter of buyers who purchased a vacation home in 2009 intend to use it as a principal residence in the future, the NAR says. Many vacation homebuyers look for potential retirement homes. Owners avoid paying capital gains taxes when they sell their principal residences, so if they move into their second residences for at least two years, they can sell that house without paying capital gains.

Joy and Cliff Williams of Williamsburg, Va. took the opposite tack. They left their primary residence, an 18th-century historic home in the country that Cliff restored in the 1970s, to move into town. But they didn't want to give up their rural retreat, so they decided to rent it out as a vacation destination. Using VRBO.com by HomeAway and other websites, Cliff Williams now manages the house, Lightwood, as a side business and the Williamses have been able to keep a precious asset. "It was a leap of faith as to whether it would work, but it did, " Joy says. "We get people from as far away as Australia and Britain renting out our property."

Kelly says that Internet sites like VRBO.com and craigslist.com have eased the challenges of renting out vacation homes, so he encourages buyers sitting on the fence to keep an open mind regarding renting out their dream homes.

"I think people underestimate the number of people who are interested in renting vacation homes rather than staying in hotels," Kelly says.

They also overestimate the amount of time they'll spend at their own vacation home, he adds. But don't let that scare you. Vacation homes, he says, are a lure for family and friends. As a vacation homeowner himself, he's hosted many family gatherings in the mountains near Seattle. "You can't put a dollar sign on that stuff. Those are family memories we got," Kelly says.

Looking to buy a second home, or your first? Here are more AOL Real Estate guides to help:


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>buying a cheap vacation homebuying a vacation homefinding a cheap vacation homeMyNextMovevacation propertyPatricia Kime2010-09-15T12:43:00+00:00Home Appraisals for Sellershttp://realestate.aol.com/blog/2010/08/17/home-appraisals-for-sellers/http://realestate.aol.com/blog/2010/08/17/home-appraisals-for-sellers/http://realestate.aol.com/blog/2010/08/17/home-appraisals-for-sellers/#commentsFiled under:

When Chris M. decided to list his home in upstate New York and move closer to Manhattan to ease his wife's commute to her new job, he ran into a major hurdle: "There was no consensus among the agents we spoke with about what our house was worth," he said. The solution? Hire a local appraiser to handle the job of evaluating the home's worth to help arrive at a listing price.

While appraisals are associated with the buyer's side of a home-buying transaction, they offer a useful and potentially headache-saving tool for sellers. However, there are important things you need to know when considering an appraisal before you list your property. Here are a few pointers when it comes to home appraisals for sellers.

First, understand what an appraisal is (and isn't)

Basically, an appraisal is an "opinion of value," according to Kevin Donegan, an appraiser with Appraisal Source in Floral Park, N.Y. Don't let the word "opinion" scare you. "An appraiser's job is to remain independent and develop on opinion based solely on factual market data," Donegan says.

Getting an appraisal isn't free--expect to pay between $300 to $500. So what's the point of doling out that kind of cash for an appraisal if it isn't even a necessary part of the home selling process? For one thing, it helps the seller determine a reasonable asking price that isn't too high or too low. Trying to set a listing price is often an anxiety-ridden part of the home selling process, so getting some neutral, well-informed help with this task will lift a lot of weight from a seller's shoulders.

An appraisal also helps sellers steer clear from accepting a low-ball offer on their home, especially during cooler markets. The appraisal sends the message to buyers and their agents that you've done your homework and can give you more leverage in negotiating a final price with a potential buyer.

Lastly, having an appraisal done before you list your home for sale gives you a chance to find out about any unnoticed problems with your home. It's better to know about these potential hitches before going into the negotiating process with a prospective buyer, only to have the deal fall through later because of them. (Similarly, a pre-listing inspection can also help uncover problems with the home.)


Find a qualified appraiser

If you've weighed the costs and benefits of a home appraisal and decided to go ahead with the process, the next step is to find a qualified, independent appraiser. This is where the seller needs to let go a bit, since buyers, sellers and lenders are currently prevented from handpicking an appraiser of their choice. New appraisal-related legislation set to kick in before the year is up could change this, but at present, appraisal management companies (AMCs) act as middlemen who have stables of appraisers to choose from for any given job.

Though sellers can't directly choose an appraiser, they can request that the appraiser be familiar with the home's local market. "If the appraiser is coming from an area, say, 50 miles away, in an urban or suburban area, and doesn't have much experience in your market area, there can be trouble," says Stan Thoren of S.A. Thoren, Inc. Getting an appraiser with some sort of professional designation, such as the Appraisal Institute's MAI, SRA and SRPA, also helps.


Prepare for the appraisal

Once you've scheduled an appraisal, it's time to get your home in order for the process. It's tempting for a seller to fret and frantically make sure the home is spotless in order to win the favor and high appraisal value of an appraiser, but that's not really the right way to approach this. While it can't hurt for a home to be in tip-top shape when the appraiser comes, the main concern should just be to ensure that the appraiser has access to every part of the house. "This may seem like common sense, but every appraiser has had many, many experiences of arriving at a property only to find that some portion of it was inaccessible at the time of inspection," says Donegan.

The appraiser's opinion of value technically won't depend on the quality of furnishings in the home or how much dust is visible, but Donegan notes that appraisers are humans, too, and are affected by many factors. "Bottom line, you don't have to go on a cleaning spree to get ready for an appraiser's visit, but there's also no reason for you to make it more difficult for them to see your home's physical attributes. Practically speaking, if your house is what you might consider 'a bit of a mess,' at least make sure there is room for the appraiser to move through the dwelling -- from room to room and floor to floor."

Tending to your lawn might also be a good idea, according to Chris Tesch, an agent serving College Station and Bryan, Texas. "Anything that would make a buyer or an appraiser feel like your home is well cared for will translate into more generous offers or appraisals." The only "special" thing to do might be having a list of recent improvements on hand for the appraiser.

It's also important to highlight the unseen, according to Thoren. For example, if an appraiser visits a seller's home in midwinter, it couldn't hurt to mention the beautiful landscaping visible during the warmer months of the year. "The seller's Realtor should try to be present for the appraisal and should give the appraiser a list of comparable sales, and should also tell the appraiser of sale conditions for the subject property," Thoren adds.


What to do if you're unhappy with the appraised value

Once you have had the appraisal and listed the property for sale, it's time to wait for an interested buyer to get an appraisal of their own. This is where things could get messy, especially if the potential buyer's appraisal yields a different, lower value -- the situation that happened to Chris M. and his wife.

In that case, though the seller's appraisal won't be accepted by the potential buyer's lender, it could serve as a convincing piece of support should the seller contact the lender's appraiser to ask for a review of its findings. The seller's appraisal can also act as backup for the asking price for the home and could be a form of leverage during negotiations. In fact, giving a copy of the pre-sale appraisal to the lender's appraiser can be a smart move.

Chris tried to contact the lender's appraiser and even submitted documentation comparing the two appraisals and pointing out where the errors were. "If we hadn't had the market value analysis done before we listed the property, we would have had no documentation and no basis on which to dispute the lender's appraisal," he said.

Nevertheless, the lender declined to pursue a change in its appraisal and the buyer decided to move on. But Chris is still glad that he had his own independent appraisal up front. "A market value analysis by a qualified local appraiser before listing is worth every penny," he said.


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]]>AolOriginalappraisalappraisershomehome appraisalhome appraisalshome appraiserhome appraisershome buyinghome sellersHomeAppraisalHomeAppraisalsHomeAppraiserHomeAppraisershomebuyersHomeBuyingHomeSellershouselist priceListPriceMyNextMovereal estateRealEstatesalesellsellersJason Hahn2010-08-17T19:38:00+00:00Should You Use a Buyer's Agent?http://realestate.aol.com/blog/2010/08/09/should-you-use-a-buyers-agent/http://realestate.aol.com/blog/2010/08/09/should-you-use-a-buyers-agent/http://realestate.aol.com/blog/2010/08/09/should-you-use-a-buyers-agent/#commentsFiled under:

To put it bluntly, Carrie and Ryan Fitzgerald of Washington, D.C. were "clueless" about home buying when they decided to purchase a condominium.

"We weren't sure where to start. A friend in Boston suggested getting a buyer's agent instead of a real estate agent, so we thought we'd give it a try," says Carrie.

She went online, and using the search words "buyer's agent" for the Washington area, came up with Steve Israel, a broker for Buyer's Edge of Bethesda, Md. Two months later, the Fitzgeralds signed a contract for a two-story loft condo.

"Steve totally exceeded our expectations," Carrie says.

An exclusive buyer's agent differs from other real estate agents or brokers in that they don't represent sellers. Some, like Israel, never list properties for sale and only work with buyers.

Nowadays, with many homebuyers starting their search on the Internet, it's common for buyers to pick up the phone and call the agent who is listing the home that they want to see. But is this a good idea? Buyers' agents argue that it's not and say this method could end up costing buyers money.

Is a buyer's agent right for you? Understanding how real estate transactions work can help you decide -- before you shop for a home.
Understanding Relationships: Where Is Your Broker's Loyalty?

The real estate agent listed as a point of contact for a house on the multiple listing service (or MLS) is called the listing agent. This person has entered into a contract with the seller to market the house and serve as the seller's consultant throughout the sales process.

A listing agent has an established relationship with the seller, which is why buyers' agents encourage buyers to find someone to represent them in a home purchase. A listing agent is interested in getting the best offer for his or her client -- an offer on which a listing agent's commission is based. Obviously, it's in the listing agent's best interest to sell the house and in their financial interest to sell it at the best price.

Oddly, real estate contracts are written so the buyers' agent fee is usually also dependent on the final sales price. But more on that later.


Dual Agency: Playing for Both Sides

When a buyer contacts the listing agent asking to see the house and having the agent help draw up a contract offer on it, the buyer is, in effect, asking that agent to represent both parties of the contract. This sets up what's called "dual-agency," in which the agent's broker handles both sides of the negotiations.

Some states ban dual agency. And all states have made non-disclosed dual agency illegal (when a broker doesn't explain to both parties that he is representing both the buyer and seller).

But laws on disclosed dual agency vary in those states where it is allowed. In these states, there is a document in the contract called an "agency disclosure" form that spells out the relationship between buyers, sellers and agents.

In a dual-agent agreement, an ethical agent is supposed to become more of a transaction facilitator. In effect, they would not be an actual advocate of either party but mostly an information provider and communication conduit. The agent would be able to convey offers and counteroffers but can't provide opinions or advice to one party or the other. They can answer questions and explain the transaction but aren't supposed to advocate for the buyer or the seller.

This setup is usually not in either party's best interest. (It does, however, give the entire commission to the listing agent, which is a win for that broker).

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Going Solo: Working Without an Agent

Sometimes, experienced buyers will act without an agent, coming up with their own offer and hiring a lawyer to draft a contract. This is best for buyers who understand the market like a professional and know the ins-and-outs of negotiating a sales price and contract details.

But new buyers like the Fitzgeralds, or those who don't have the time to study market trends, should consider finding their own expert, someone who will act in their best interest, says Steve Israel, the Fitzgeralds' broker.

"They really should ask for references and interview agents, looking for someone who they find trustworthy and they want to work with," Israel says.


The Deal: Signing a Contract

Once a homebuyer has found an agent, they'll sign an agreement with them, called a buyer-broker contract. The details of a buyer-broker agreement stipulate the agent's fee and when he or she should be paid in a transaction.

Real estate agents make their money when a sales transaction is complete (when the home goes to "closing"). In most real estate transactions the seller includes, in their listing contract, a line stating the percentage of the final sale price that will be paid to the listing broker. The contract also mentions what portion of that percentage will go to the agent who brought in the buyer.

That's right. A listing contract states how much the buyers' agent receives, usually a percentage based on the final sales price. In a nutshell, in a traditional real estate transaction, even though the buyer's agent works for the buyer, his or her commission is based on final price.

So how do buyers ensure that their agents are really acting in their best interest? They should carefully read any agreements that their representatives want them to sign and be prepared to negotiate the terms of their buyer-broker agreement. Some buyer's agent companies, like Israel's, offer different payment options, including fixed-price, hourly fees or the traditional percentage based on the final sales price.

"There is an obvious conflict of interest with the structure in how any real estate agent gets paid," Israel says. "But in the end, most customers opt for the percentage route and are reassured by the amount of work we put in."


Buyer-Broker Agreements

The three different types of buyer-broker agreements offer varying degrees of representation for the buyer. The most restrictive is the exclusive buyer-broker contract, which commits the buyer to using one agent exclusively, guaranteeing that the agent will get paid for any real estate transaction conducted within the covered time period.

The three types are:

  • Non-Exclusive/Not for Compensation: This contract defines the terms for the relationship between buyer and broker but does not bind the buyer to work only with the agent. (If, say, a buyer finds a home on his own and decides not to use an agent for help drafting a contract, he or she is not obligated to pay a commission to the broker.) The buyer also can use another broker if he or she wants.
  • Non-Exclusive/Right to Represent. With this type of contract, a buyer can use other brokers if he or she desires. But this contract obligates the buyer to ensure that the broker receives his or her commission if he or she introduces the specific property to the buyer or acts at all on the buyer's behalf.
  • Exclusive Right to Represent. This type of contract obligates the buyer to pay a commission even if the buyer finds the property him or herself or uses another broker. Sometimes these contracts stipulate that the buyer will ensure that the broker receives a certain percentage of the commission. The obligation for a buyer to pay his or her agent's fee is usually waived if the seller's contract says that the seller will pay the fee of the buyer's agent.

Another of Israel's clients, Julia Spicer, signed an exclusive contract with Buyer's Edge after finding a house that she wanted to buy. She needed assistance in drafting an offer and contract, and Buyer's Edge gave her a discount for doing her own legwork, she said.

Spicer recommends buyer's agents for those who prefer to do their own searching.

"When I saw the house, I called a traditional agent in the neighborhood asking them to help me with a contract. They told me I didn't want the house and tried to steer me to one of their own listings," Spicer said.

Referred to Buyer's Edge, Spicer and Israel drafted a proposal and she bought the house.

"He has enormous experience working on real estate deals. If I were in the market, I'd definitely use a buyer's broker," Spicer says.


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]]>buyers agentBuyersAgentbuying a homeBuyingAHomefinding an agentFindingAnAgenthome buyingHomeBuyingMyNextMoveRealEstateAgentrealtorsPatricia Kime2010-08-09T15:08:00+00:00Last-Minute Tips for a Successful Open Househttp://realestate.aol.com/blog/2010/08/03/last-minute-tips-for-a-successful-open-house/http://realestate.aol.com/blog/2010/08/03/last-minute-tips-for-a-successful-open-house/http://realestate.aol.com/blog/2010/08/03/last-minute-tips-for-a-successful-open-house/#commentsFiled under:

Realtor Deb Staley has seen it a million times. She pulls up to an open house at a fabulous property, in a great neighborhood, at the right price, only to find an overgrown lawn, a leaf-strewn front porch and a front door covered in spiderwebs. In fact, it's not uncommon for potential buyers to be so turned off by an initial view that they refuse to even exit the car. "I have been a real estate broker for 22 years, and I am still amazed every time I show a house that is not ready for the market," says Staley, who's based in Searcy, Ark.
We never get a second chance to make a first impression, and for motivated sellers a first impression of their home can often make or break a deal. Realtors know that a potential sale starts in the moment that a buyer pulls into the driveway. That's why they take extra care to prep and ready the homes they represent just prior to an open house -- and we mean minutes before.

Whether you're helping out your Realtor or handling the sale yourself, here's how to make the most of an open house.

1. Lighten up

Nothing helps a house like natural light, so in the moments before an open house pull back the drapes, open the blinds and let the sunlight in, says Sean Shallis, senior real estate strategist for The Shallis Group. As you're completing your walk-through, turn on the lights in every room (including bathrooms and closets). That will allow potential buyers to see clearly and it creates a welcoming, open feel to the home.


2. Clean up

Spotless is the word to remember. It sounds simple, but many people forget that even the smallest mess can throw off a potential buyer. Do a quick walk-through before the open house and make sure that kitchen and bathroom counters are cleared and wiped. Toss any extra clutter lying around. Dirty laundry? Purses? Books? Toys? Throw them under the bed or in a dedicated space in the garage. Just keep clutter away from buyers' eyes.


3. Enhance curb appeal

Never underestimate the power of curb appeal. That means making sure that the front of the house is bright and welcoming. For Staley, it's as simple as a last-minute sweep of the front porch and driveway, and a quick look for spiderwebs or dirt at any windows that flank the entrance. "As a Realtor, it is such a pleasure to walk in the front door of a home that says, 'Welcome! Come on in!' as soon as you walk up the sidewalk," she adds.


4. Set the scene

Even an immaculate home can up its "wow" factor with small touches in the minutes before an open house. Soft music and a well-set dining room table can warm up the house and help buyers picture themselves living there. Something that won't? Pets. Staley, a self-proclaimed animal-lover, is quick to remind her clients that not everyone feels the same way. Make sure pets are securely locked away or, even better, out for a long walk.


5. Get out of the house

If you're working with a Realtor, almost every agent will tell you the same thing: It's never a good idea for the seller to be home during an open house. So find a way to leave the house before buyers arrive. If you're selling your home yourself, be aware of what you say to potential buyers during a showing. There's no need to spew every detail about the house unless the buyers ask. In fact, Shallis suggests, have a friend or family member show the home. "As the owner, it's almost impossible not to oversell your home," he says.
Though they may seem basic, it's little details in the eleventh hour that can make a difference in the speed of the sale and, ultimately, the final selling price. "Dirty, dark, cluttered homes can sell," says Staley. "But if they are brightened, lightened, cleaned, and decluttered with some sense of pride of ownership displayed, they will sell for so much more."


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Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
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]]>for saleForSaleMyNextMovePreppingForAShowingSellingYourHomeShowingYourHomestagingAndrea Carniero2010-08-03T11:37:00+00:00Selling Your Home: Quick Fixes for Big Returnshttp://realestate.aol.com/blog/2010/07/20/selling-your-home-quick-fixes-for-big-returns/http://realestate.aol.com/blog/2010/07/20/selling-your-home-quick-fixes-for-big-returns/http://realestate.aol.com/blog/2010/07/20/selling-your-home-quick-fixes-for-big-returns/#commentsFiled under:

quick fixes for home resaleSelling your home is stressful even during the best of times, but when the market is slow it sometimes seems like "Mission: Impossible." In order to sell your home for top dollar in a down market, you need to be proactive in making your home stand out from the huge inventory of listings that buyers have to choose from.

Thankfully, there are many small improvements that you can make to get a big return on your investment and help your home sell faster:

1. Make a grand entrance. Front doors need to be welcoming and in good repair or potential buyers will go back to the car without walking inside. If your door doesn't make a good first impression, replacing it is one of the best investments you can make. Not only will the new door attract buyers, it can add a 128 percent return on the investment when the house sells.

2. Wash the exterior. Exterior siding and shutters must be clean and mold free. But don't worry about the expense of renting a power washer or hiring someone to do it. Simply spray on liquid house wash (Mold Armor House Wash is under $10 and works great): Let it sit for 10 minutes, rinse with a garden hose and your siding is as good as new.

3. Dump the popcorn. Popcorn ceilings are not popular with buyers. Luckily, they are inexpensive to fix. First, empty the room or cover everything with plastic. Next, gather a ladder, a garden sprayer filled with water, a 4-inch scraper, a face mask, and goggles. Using the garden sprayer, wet an area as big as your arm's reach while standing on the ladder. Once the popcorn is wet, it comes off easily using the scraper. Be sure to wear the mask and goggles to protect yourself. Keep moving your ladder around the room, scraping the ceiling off in sections. After all the popcorn is gone, you may need to go back up and re-spackle or sand where the builder taped the ceiling. Finish with a fresh coat of flat paint. A word of caution: If your home was built between 1930 and 1985 there is a strong possibility that it may contain asbestos. Before proceeding, you should scrape 3 to 4 samples from around the room into separate resealable bags and send to a certified asbestos testing agency. If the results are negative, you can proceed without worry. If they are positive you will need an alternate method, such as covering it with something like Armstrong's ceiling systems or an extra layer of sheetrock.

4. Do easy upgrades in kitchens and bathrooms. Kitchens and bathrooms are known as the rooms that sell the house. Don't make the mistake of taking on an expensive remodeling project in order to sell your home. In the kitchen you will get a better return on your investment if you simply upgrade the appliances and replace the countertops. Another easy fix is updating the hardware on the cabinets and drawers. In the bathroom, replace the large, landscape mirror with a smaller, framed mirror. Replace dated light fixtures, and re-grout the existing tile. The idea here it to refresh, rather than remodel these valuable rooms.

5. Paint in welcoming tones. Paint is an inexpensive fix for rooms that might be too bold for the average buyer. However, don't turn to white paint when trying to neutralize offensive colors. You want to have rich, beautiful color on your walls so that your home stands out from the rest. White walls just leave your home looking cold, bland and uninviting. Instead, neutralize with warm tan or taupe to broaden your home's appeal. Other good choices for paint are muted greens, soft golds or pale yellows. Use an eggshell or satin finish to make the walls easy to clean.

6. Look at your home through a camera lens. Photograph your home before putting it on the market. It is easier to see your home's flaws in the photos than in person. Today's buyers search the internet before ever calling a realty agent, and studies show that they only spend three seconds on a listing before they click to the next one. If there is more than one home for sale in a neighborhood, the one that photographs best will likely sell fastest.

Your home is probably the biggest investment you will ever make. Remember, once you put your home on the market it is no longer your home. It is a product that needs to be sold in the shortest time possible. By making these small improvements you are eliminating potential obstacles to selling your home, in addition to creating a property that is appealing to the broadest cross-section of buyers. Your efforts are sure to be rewarded with a quicker sale at a higher price.

Barbara Green is The Design Diva and owner of Sensibly Chic Interior Design. She creates one-of-a-kind interiors that reflect your taste, lifestyle and budget. Follow on Twitter @thedesigndiva.


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Want to learn more about home buying and home finance? If so, you won't want to miss
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]]>appliancesbathroomcountertopsfront doorFrontDoorhome buyershome repairshome stagingHomeBuyersHomeRepairsHomeStagingkitchensmynextmovepaintpopcorn ceilingsPopcornCeilingsreal estateRealEstaterealtorssidingBarbara Green2010-07-20T03:05:00+00:00Guide to New Home Warrantieshttp://realestate.aol.com/blog/2010/07/08/new-home-warranties/http://realestate.aol.com/blog/2010/07/08/new-home-warranties/http://realestate.aol.com/blog/2010/07/08/new-home-warranties/#commentsFiled under:

new homes covered by home warrantiesBob Bostock's home warranty saved him tens of thousands of dollars.

Three years after moving in to his Wildwood, N.J. condominium, Bostock noticed problems with the condo's deck, including mold and mushrooms growing from the boards. Before calling the home warranty company, he called the builder, who came over to inspect. "He said he pulled everything and there was nothing wrong with it," Bostock remembers.

Two years later, problems snowballed with Bostock's deck, as well as three others in the neighborhood. The condominium's association board banded together to insist that they be fixed. Under Bostock's original new-home warranty, workmanship on the condo was covered completely for the first two years and structural or engineering problems were covered for up to 10 years. The builder argued that the deck issues no longer were covered, but the original architect examined the problem and determined the problem was structural.

Bostock and his neighbors pursued a claim with their warranty company; the decks eventually were repaired at a cost of $25,000 each.

A new-home warranty can offer peace of mind for homeowners, guaranteeing that if something goes wrong in the early stages of a home's life, it will be covered. Most builders include a home warranty as a benefit for buying their product, and in many states, builders and developers are required by law to provide home warranties.


But requirements and stipulations for new-home warranties vary from state to state, and home warranties themselves vary widely in terms of coverage. If you are the owner of a new home, even if you're not directly shelling out cash for your new home's warranty, it pays to pay close attention to the fine print. With a new home warranty, the devil is in the details.

Buyers of new homes should always insist that they receive a copy of their home warranty well before taking possession of their property. Then they should read it. Carefully. They should first learn which company holds the warranty: While warranties often are called "builder's" warranties, the builder usually contracts with a third-party provider to solve claims.

A good home warranty will spell out exactly what's covered. New-home warranties cover, to different degrees, workmanship and materials related to a home's systems and components, including the heating and air conditioning system, the electrical system, plumbing, windows and structural concerns. Usually they don't cover items like appliances or anything that comes with a manufacturer's warranty, or cosmetic issues such as cracks in drywall, cement or brick -- unless the cracks are determined to be of a sign of a structural problem.

A home warranty also will delineate how the company plans to handle claims, either repairing or replacing the items covered. Often, this is where homeowners and home warranty companies don't see eye to eye. For example, a homeowner believes that certain items should be totally replaced or rebuilt if there are problems with them, while the company insists on repairs instead. Under the home warranty, the company usually has the right to decide how to fix the problem.

Many home warranties say that the warranty company can choose the subcontractor who will make repairs on any filed claims. Some homeowners appreciate this because they are new to the area and don't know any local repairmen. Critics often charge that this allows home warranty companies to use the cheapest, sometimes less effective or less diligent workers.

If you have a new-home warranty, consider calling the company that holds it and find out who would be doing the repairs should a problem come up.

Owners of new homes shouldn't expect repairs to be completely free. Most home warranties insist that the homeowner pay a deductible, usually a service charge, for a repairman to visit the home. Also, few home warranties cover expenses incurred while having the work done, such as alternative accommodations if the repairs make it necessary to vacate.

Homebuyers also should be careful to read the fine print. Many home warranties include a clause that requires homeowners to deal with any significant problems through arbitration. This is to keep costs down, but often the clause requires homeowners to waive their legal rights if a problem grows. Again, these regulations vary from state to state, but read carefully and ask questions before you sign and accept the warranty.

A new-home warranty can last for as long as 10 years but include shorter coverage terms for certain systems and materials. For example, the drywall, doors and trim may be covered for only the first few years of the warranty term, while major structural defects are covered for longer. Again, be sure to read the fine print.

A new-home warranty is more akin to a service agreement than to an insurance policy. In many cases, filing a claim will involve diligence and follow-up on the part of the homeowner. In Bostock's case, he first called the builder's warranty agent, who determined the deck problem was not covered. As the issue grew worse, the association called in the original architect, who noticed that the deck's header beams (which support its front end) were the wrong size, and the method for supporting critical beams didn't match the architect's original drawings. Because the problem was structural it was covered under the warranty.


Filing a Claim

If something goes wrong in a new home, experts recommend that its owners pursue the issue with both the original builder and the home warranty company. The builder likely will defer to the warranty company, but at least they've been alerted.

Homeowners should make a list of the problems that they want resolved, and they should make sure that they're covered under the home warranty. Pay attention to the "performance standard" section of the document, which lists common problems and describes to what extent the builder is responsible for fixing them.

When filing a claim, homeowners should put repair requests in writing and ask for a return receipt for their records. Copies of all correspondence should be kept and additional copies should be sent to the builder.

In a best-case scenario, the builder or the home warranty company will fix the problem. If issues persist, however, the problem could go to arbitration (remember, many new-home warranties require this less-expensive option as a way to avoid the court system).

One way to guard against future problems is to hire a home inspector to examine the house before taking possession. Many new homeowners believe that that they don't need a home inspection since municipal building inspectors have signed off on the work done in the home; the house is brand-new; and it is covered by a home warranty.

The U.S. Department for Housing and Urban Development recommends that all homebuyers get a home inspection, though.

"A qualified inspector takes an in-depth and impartial look at the property you plan to buy," writes HUD's Office of Single Family Housing.

New homeowners also should remember to keep a maintenance file containing documentation of everything done on the home, including routine and special maintenance. The paperwork will come in handy if a claim is needed.

In filing a claim, homeowners should remember to be persistent. It may take a while. In Bostock's case, it took four years and $1,600 out of pocket for additional inspections, as well as a temporary shoring wall that he built to ensure that the deck didn't collapse and hurt someone.

In the end, he said, diligence paid off.

"We were fortunate in that we didn't have to hire a lawyer. In New Jersey, if you buy a new home, a home warranty is a requirement. I know if I bought a house elsewhere, I'd make sure the builder bought a private homeowner's warranty," Bostock says.


Want to learn more about buying a home? Here are some AOL Real Estate guides that might help:


Or find an home for sale at AOL Real Estate.


******************

Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
Watch it now on AOL Real Estate.

 

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]]>builders warrantybuying a new homehome warrantiesMyNextMovenew home tipsnew home warrantyPatricia Kime2010-07-08T11:51:00+00:00