Home Buying

home buying

5 Mistakes Home Buyers Make

Home buying is a complicated process. You must consider your budget, budgeting tips, home buyer requirements, lender requirements, and many other things. There are many ways to approach buying your next home. In fact, there are so many factors that you need to consider in making your decision. Below are some of the main aspects that you need to take into account when buying a home.

home buying

How to Buy a Home: One of the most important parts of any successful home-buying process is planning. Before you even start on the actual home buying process, you need to plan your first steps. This is an essential part of the process. The Plan Before You Buy can determine your success and the outcome of your home-buying experience. When looking at different home plans, be sure to evaluate each plan on the basis of factors such as: home size, location, square footage, neighborhood, budget, and other details that may make a huge difference to your home’s success. Also, if you find out how much the home will cost at closing, it will help you in your decision-making process.

How to Price Your Home: It’s important to know the final price of the house before you make any commitments. If the final price of the house is far higher than what you can afford, then you might end up losing a lot of money in the transaction. Also, the real estate agent will also have an influence in determining the price of the property you’re interested to buy. You must understand that you’re also responsible in determining the price of your home. By doing this, you can avoid paying more than you can afford, thus minimizing the amount you will spend in the transaction.

Where to Buy a Home: Home buyers always need to think where they should buy their next home. The location of the new home will largely depend on your financial capability and your preference. If you are willing to compromise, there are several locations that you can choose from. You can live in a different part of the city or state if you prefer or you could choose from a different neighborhood if you prefer. However, do take into consideration the size of the neighborhood you choose. and the proximity of schools, hospitals, grocery stores, shopping centers, etc.

How to Fix Up your Home After Buying: One of the most important aspects of home buying is the condition of your home after you’ve made a deal. Make sure that your new home is in its best condition and that all parts are working properly. In case there are any problems with your home after purchase, make sure to fix them before you sign the contract. Also, if you would like to have a warranty on your home, it is best to have it included in the contract. In case you don’t have a warranty, consider getting one. This way, if there are problems, you won’t have to pay for repairing it after you sell it. Also, if there is a defect, you will be able to claim it from your insurance company.

Home Inspections: Home Inspections will determine the condition of the house you want to buy before you make any commitments. It’s important to ensure that there are no problems on the exterior and roof. Be sure to get a home inspection every six months. Be sure to bring with you all materials, tools, manuals, and information for your home inspection. Prior to your inspection, make sure you ask the professional for information and help. regarding what they have to check, what they found, and what it is the price range they’re talking about.

Financing a Loan: Loan Refinancing: Home buyers often get loans from banks to purchase their home. Once the deal is completed, the bank has the right to repossess the home. In order to prevent this from happening, home buyers typically refinance their home loans with a private lender who gives you an equity loan (which is equal to the difference between the price of your home now and the price of the home when you bought it). You can also get a home loan with a lower interest rate by having a better credit rating.

What Not To Do Before You Buy Your Next Home: Don’t buy your home without doing research on home buyers and their rates. Check out various lenders in your area and compare the different terms, interest rates, fees, and closing costs. Prior to making any final decisions, try to look at the different lenders in your area to see what they have to offer.

How Home Inspections Work

Home inspections are the objective examination of the condition of the structure and systems of a home from its roof to its foundation. This is usually done in connection with the purchase of real estate. A home inspector, who is trained and qualified to carry out such checkups, does home inspections. After the procedure is done, the home inspector gives the client a detailed report or checklist of the findings. The client then uses the given report to create decisions about his/her potential purchase. People sometimes confuse home inspection with the term real estate appraisal. While a home inspection is a checkup of the condition of a house, a real estate appraisal is an assessment of the value of the house or any property.

Purchasing a house is one of the biggest investments a person can make. To avoid unexpected problems and difficulties, the client has to understand the systems of the newly built or existing house before purchasing it. The home inspector will help in determining the major repairs the client has to make. The inspector can also give some advice on how to maintain the house to keep it in top-notch shape. If the client is already a homeowner, then the inspector can help identify existing problems and suggest methods that might help the owner prevent costly future renovations. If someone wants to sell a house, then a home inspection can offer a person an opportunity to fix damages, which can place the house in a better selling price and condition.

Home inspectors differ in skills, ability, and experience, but a good one should be able to examine some elements of the house and can provide a detailed report showing his or her verdicts. The usual home inspection lasts for around two to three hours. The presence of the client is essential so that they can get a direct explanation of the findings and if needed, ask questions as well. Everything will also make much more sense if the client personally sees the inspector instead of depending on the photos and explanations in the report.

The detailed report given to the client must at least have the following notes:

Problems grouped into different categories ─ major and minor deficiencies, and safety issues
Things that need to be repaired or serviced and those that need replacement
Items that can still be used, but need to be regularly checked
Though it is very difficult for someone to list everything a home inspector can observe, the following are the elements that he usually examines.

Exterior part of the house: foundation, garage, exterior walls, grading and roof
Interior part of the house: bathrooms, laundry room, fire safety, water heater, kitchen appliances, heating, ventilation and air conditioning (HVAC), electrical wiring and outlets and plumbing
The client has to keep in mind that the home inspector can’t examine everything that might cause damage because he only makes an assessment using visual cues. For example, a slanted floor might be a result of a cracked foundation. It is difficult to prove this by just looking at the floor. Unless the inspector can pull up the flooring of the house, and then he or she can’t assure the client if it’s really there. Additionally, home inspectors do not check for problems such as mold contamination, termite damage, engineering issues and other specialized problems.

Once the home inspector finished the report, the client will have different options to make. If the damages are too costly to repair, the client has the liberty to back out from the purchase, as long as the contract contains a home inspection contingency. The client can also ask the seller to repair the problems or lower the price of the purchase. If neither of the options is applicable, then the client can just directly estimate the cost to fix the problems and come up with a strategy for repair once the property is bought.

The cost of a home inspection for a normal one-family house differs geographically. The cost may also vary depending on different factors such as the age and size of the house, and other possible services like radon, septic, and well testing. Furthermore, prices differ depending on the home inspector’s qualifications such as training, accomplishments, and experience. A home inspection can cost a client more time and money, but this will surely benefit him in the long run. The knowledge acquired and assurance of safety from a home inspection that can make a house as safe and sound as possible is worth the cost.

Reasons Behind the San Francisco Bay Area’s High Property Costs

The San Francisco Bay Area (commonly known as the Bay Area), circling the San Francisco Bay in the northern part of California, is a geographically wide and diverse populated region. It is the home to over seven million residents in cities including Oakland, San Jose and San Francisco, alongside minor urban and rural areas such as San Francisco, Santa Clara, San Mateo, Alameda, Contra Costa, Marin, Solano, Napa and Sonoma. The Bay Area is popular for its high-tech industry, liberal politics and lifestyle.

The Bay Area is a good place to live in, but most buyers cannot afford the cost of housing because of its expensive price. Housing costs have relatively decreased in some parts of the United States over the past years, but San Francisco Bay Area real estate properties have been able to maintain their value. The average rent in the Bay Area costs around $1,500 a month. That rate is higher than any major city in the US.

Despite the recession, real estate properties in the Bay Area have retained their value for different reasons. Since San Francisco Bay Area is located on a peninsula, the size of land available for potential inhabitants is limited, thus making every land more expensive and valuable. There is rather only one way for the region to increase the number of housing units: by building more units vertically.

The Bay Area will be able to fit more residents if more houses are added and rents are lowered, but that is impossible to achieve since the state and local government enforce strict land controls and regulations, hence decreasing the housing elasticity in the area. Some of the boundaries imposed by the government are the following:

  • Some mandates made it easier for residential areas in San Francisco to avoid development of tall properties. This effectively puts a stop on major expansion plans outside the downtown area.
  • Majority of the residents in the Bay Area are afraid to lose the iconic views of the region. To preserve them, the residents started passing mandates that created Sunset Zoning. This mandate outlaws any tall building creating shadows on any public square or park for more than an hour before the sunset and an hour after the sunrise.
  • To preserve the history of some structures in the Bay Area, the government prohibited development of historic buildings. One example of this is the situation in the South Market area. Many old buildings there used to be warehouses for San Francisco’s finest industries. While they are good to look at, warehouses demand lots of space, thus making it impossible to build more housing units.

Another reason why rent is so expensive is the Bay Area’s enticing amenities. The San Francisco Bay area is a densely populated region and the competition for real estate properties can increase prices of services even if the values across the US are decreasing.

Lastly, since the residents and families in San Francisco have been able to preserve a good amount of income even when the recession came, there has been no basis for real estate costs to lower. The increase in the average income of the families in the area makes it possible for the Bay Area residents to afford high housing rates.

During the recession, several people hoped for a decrease in San Francisco’s property values to make way for high return investments. Still, property costs remained higher compared to the prices in other parts of the US. Despite the high value, San Francisco Bay Area real estate continues to be appealing to buyers for several reasons. The Bay Area is a very diverse community that is why majority of the buyers will mostly find at least one property that fits their needs. Several buyers are also able to find great investment opportunities that assure a significant amount of yield when the market goes back to its normal state.

Property values in San Francisco may not be affected by the recession, but this does not mean that people cannot find great bargains and deals in the area. Real estates in the Bay Area are famous for their flexibility and long life so it is safer to make an investment there rather than buying real estates in other locations. Buyers can also enjoy an increase in the cost of a certain property if they ever decide to sell it. The cost of San Francisco Bay Area real estate may become increasingly expensive over time so if someone is interested in buying some properties in the Bay Area, then it is better to do it as early as possible.