What to Look For in a Home!
The Hieroglyphics of Real Estate
Now that you know your DTI and the LTV for which
you qualify, how do you translate the information sheets which
come your way on properties for sale? You'll find them on the
internet, in realtor brochure placement boxes, periodicals…and
they are all written in the same foreign language. Here's an alphabetical
of some of them with translations!
A most important designation appears as X /
X / X . Here's an example: 3/2/2 translates as THREE BEDROOMS,
TWO BATHS, 2 CAR GARAGE. Bedrooms are listed first; bathrooms
secondly; and the garage's capacity for vehicles as the third
item. You'll save yourself a lot of time and energy in checking
this out first!
- AC or A/C = Air Conditioning
- BR = BedRoom
- CH/A = Central Heat and Air Conditioning
- FHA = Federal Housing Authority
- FP = FirePlace
- FSBO = For Sale By Owner
- Full Bath = A bathroom with a bathtub,
commode, and sink
- 3/4 Bath = A bathroom with a shower,
commode, and sink
- 1/2 Bath = A bathroom with a commode
and sink
- LA = Living Area (Not the Home of
the Dodgers!)
- SF = Square Feet
- VA = Veterans' Administration
- WBFP = Wood-Burning
FirePlace
"Location, Location,
Location"
The home of your dreams situated in a high-crime
rate area will soon turn into the home of your nightmares. How
close is the nearest market? If you have small children and there
is a busy, traffic-congested street nearby, get ready for constant
monitoring. How far do you have to drive to your workplace? These
are just a few of the considerations which should receive priority
evaluation over an ideal floor plan with just the right kitchen!
One way to overcome these frustrations is to
"Think Neighborhood." Here's some questions to ask yourself:
- How long does the drive take to the
prospective property from work during rush hour? Can you live
with the distance you have to travel?
- What if one child would attend a nearby
school and another's is further away?
- Do you have a morning drop-off at
day care?
- Is the area quiet at night? Check
it out!
- What about your Place of Worship?
If you are active in church functions, calculate how much driving
time you would have.
- What's the pride of ownership throughout
the neighborhood which you are looking? Drive around and "feel"
it out. Does it feel like a neighborhood you could easily consider
home?
- How close is the fire department?
This will have an effect on your Homeowners' Insurance rates.
- Have you talked with prospective neighbors?
What are their impressions of the neighborhood? Have they found
any nearby public transportation timely and accessible? What
about public facilities in the area? Have taxes been consistent
or have there been recent increases?
- Is there a medical facility and police
station relatively close?
- Any active neighborhood groups? Crime
watch?
See you and your family in a particular neighborhood…trust
yourself…and when it feels right and the instinct is good…make
your home there.
Your IDEAL Home
Checklist these property characteristics:
- Accessibility
in and out of your property.
- Energy-efficient Central Heat &
Air Conditioning with adequate insulation throughout.
- Cul-de-sac properties have minimal
traffic.
- Roomy kitchens, walk-in closets,
and cathedral ceilings are quality pluses.
- A must is a 2 car garage.
- Schools you would love your children
to attend…nearby.
- Upgraded appliances means you don't
have to upgrade!
- Accessibility to municipal services,
medical services, work, and church.
- A 3 bedroom,
2 bath home resells more readily than a 2 bedroom, 2 bath.
New Home vs. Resale Home
There exists a definite bias for the plus factors
in both of these choices, depending on the buyer and their requirements.
Here's some reasons to buy a Resale (or, used
home):
- You most likely will be acquiring more square
footage in the purchase of a Resale as they are not marketed
"per square foot" as new construction homes are.
- Greenery has had time to grow. Further,
the property has grown in personality over the years. You'll
spend less time nurturing the property than you would cultivating
a newly-seeded construction site.
- Your money may go further in a Resale; flexibility
in new construction pricing is rare.
- Home Improvement made to a Resale over time
is usually of higher grade materials than in new construction.
- Flexible financing exists in Resale properties.
Builders set a price with little deviation in the pricing.
- The neighborhood is in place in a Resale
neighborhood, whereas the neighborhood is not yet established
in a new development.
Here's some reasons to buy a New Home:
- Certain buyers are convinced that the greatest
amount of value is experienced in appreciation with new construction.
- The history of the home begins with
them, not as in a Resale.
- Choices of interior can not be underestimated
as an overwhelming requirement of some buyers; they sense they
are creating a custom home.
- Amenities are considered to be much
more than in a Resale home.
- Up-to-the-minute energy-efficiency
is priority with some buyers, especially buyers busy with their
careers. They want assurance that the they have both low cost
maintenance and delight in a "repair-free" home.
- Some buyers believe that the warranties
granted on a new home far outweigh the worry of possible Resale
defects.
Whatever camp you're in, Pro-Resale or Pro-New
Construction, it is your property…your home.
Fixer-Upper?
Some buyers get "fixer-upper" mania,
thinking that if they do the work themselves on a property which
needs lots of work, that somehow their labor will pay off handsomely.
Maybe. Maybe not.
Most fixer-uppers are older home homes with
features that are antedated. Many lack proper ventilation; insulation;
and have water damage. Old-fashioned single-glaze windows work
against the concept of energy-efficiency; there may be lead-based
paint; and mildew may have lived there for years.
We all look for high value at a low price; however,
before you commit to what may be years of restoration, have a
serious discussion with yourself if this is the way you wish to
spend most of your free time. Some take delight in the entire
process. That's great! Before moving forward with this option,
do get detailed estimates on all the work to be done, and value
your time in calculating how many months or years
the project will take.
While you're doing this, look carefully at your
finances, as many older homes have "deferred maintenance,"
which means that structural and/or functional problems exist which
must be corrected prior to securing a loan on the property. We
have said for years that "Your Appraisal is the heart of
your Mortgage," as it establishes the amount of mortgage
for which you qualify. The best mortgages are not made on
defective properties.
Get a reputable Home Inspector to complete an
extensive general analysis of the structure, including crawl space
inspection and roofing. As a result of these findings, you may
wish to enlist specialty inspectors in the areas of soil, pest
infestation, and safety.
Whatever your decision, do your homework before
you start work on your home!
HELPFUL HOME IMPROVEMENT
RESOURCES
- www.improvement.com
has products, materials, architectural design, and a special
general contractor search option.
- www.hometime.com
is the P.B.S. site with online articles and home improvement,
remodeling, and construction information.
- www.housenet.com
is the site of the home improvement gurus, the Hamiltons, authors
of "Home Improvement for Dummies."
What's a Co-op?
It has been estimated that approximately 45
million Americans live in cooperative housing developments as
opposed to single-family dwellings. Elected volunteer association
board of directors oversee resident services, amenities, and areas
common to all.
The Board directs the Association, collects
assessments, has budgetary control, secures contract bids for
community maintenance, and is responsible for enforcement of the
By-Laws of the Association.
Cooperative involvement is critical to a smoothly-run
Association. Know what the rules are before you buy. Follow those
rules. Attend Association meetings. Offer to serve on a committee
or the board.
Communication is mandatory within this living
style.
Check out www.caionline.org
for just about everything about Associations…Online news
service, educational materials and multiple links. Don't miss
their special section, "Pearls of Wisdom" to acquaint
you with Co-op life.
- Click the Lighthouse at top left to
return HOME at any time
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