For many people the chance to own a custom-built home is a dream come true. The opportunity to hand-pick everything from the layout to the faucets ensures that the home will reflect your personal style and the personality of your family.

But there is another option. Some first-time buyers are borrowing from their parents. Of course this option is not feasible for everyone, but for those in a position to do so, it can be the key to making home ownership a reality.

However, such an undertaking does require some special attention. Here are four things you need to consider.

1. Choose a neighborhood and community that will support your investment. In other words, you do not want to build in an area where your home will seem out of place. Such homes are very difficult to sell.

2. Thoroughly research the builder or contractor you hire. This person will be one of the most important people in your life once the project is underway. Take the time to research any complaints against the company. Only hire a company or professional that is highly recommended and is known for superior work.

3. Complete a full financial analysis well before you sign a contract of any sort. You want to be 100 percent sure you have the funds to finance such an undertaking. Not only do you need to plan for expected expenses, but make sure you have money for surprise costs that almost always accompany such projects.

4. Be prepared for delays. Even the most reliable contractor cannot guarantee that a project will be completed on schedule. The weather, permits and sub-contractors are just a few factors that can influence the timetable.

Once the boxes are unloaded and the dust has settled virtually all buyers want to get to the business of making this new house their home. In other words, they want to make changes that will improve the home and make it a reflection of their family, their personality.

Sometimes these changes are as simple as a new color palette in the home. Sometimes they are more involved and include moving walls, wiring or duct work. If you don’t have experience in construction yourself, you will need to enlist the help of a contractor or other professionals to get the job done. However, finding the right person for the job can be difficult, especially if you are new to the area.

Start by asking your new neighbors and other contacts if they have recommendations. A personal endorsement is a great place to start. Another good idea is to look for home improvement projects already underway in your area. Here you can see a contractor’s work first hand. Finally, the phone book is always a good resource.

Once you have a few names and numbers, set up consultations with each company. Explain the scope of the project and ask for their input and a quote for the job. Be sure to talk about things like time frame for completion, sub contractors and insurance. You want to be sure each person who is working on the job is licensed and insured. Also, ask for a list of references and examples of projects they have completed. It is a good idea to get at least three different estimates and to check each name with the Better Business Bureau.

A final word of advice is to choose a contractor who specializes in the type of job you are undertaking. For instance, if you live in an historical home, choose a contractor who does mostly renovations. If you are updating a kitchen, choose a contractor who focuses on this type of improvement. Not only will you benefit from their experience, they may be able to offer ideas that had not occurred

Each year thousands of Americans are asked by their employers to relocate. And more times than not, the move isn't a simple one. In fact it may mean starting over in an entirely new area, new state or even new part of the country.

Here are five tips to help you make the transition.

1. Rely on the professionals. Your employer probably uses a relocation firm to coordinate the moves of its employees. Work with your designated relocation specialist to identify neighborhoods where you might want to live. Talk about things like school systems, taxes, public transportation and aesthetics. Discuss the types of houses you like best and the amenities that are important to you.

2. Do some leg work on your own. Use the local library and the Internet to research the location where you will be moving. The more familiar you are with the area, the more comfortable you will be when the time comes to make the move. It will also help you ask your Realtor ® more informed questions.

3. Make the most of your time. If your time table allows, make a visit to your new location before the move. Use this opportunity to look at different neighborhoods, visit schools, check out area highlights and get your bearings. During this visit ask your relocation specialist to set up as many “go-sees” as possible. The more homes you look at the better. Ultimately, it will help you know a good buy when you see one.

4. Make a plan of action. You can fend off initial feelings of loneliness after the move if you know about what’s going on in the area. Make time to research local community groups, newcomer organizations, houses of worship, fitness centers or other outlets that will help you get involved in the community.

5. Approach the move with a sense of adventure. Although starting over is always a challenge, it is also an opportunity to explore new surroundings and meet new people.

 

When buyers embark on a house hunt, it's often the aesthetics of a house that capture their attention. But it is important to remember that in addition to “easy to see” qualities like fireplaces and room dimensions, home buyers should pay equal attention to the systems behind the scenes .

Once a buyer makes an offer on a home it is the responsibility of the home inspector to review all of a home's operating systems. However, it is helpful for buyers to have some knowledge in this area when they first preview a home.

Heating – Ask how the home is heated. The type of system, for instance gas versus electric, can make a difference in home heating costs. Also find out the age of the furnace. A quality gas furnace that has been well maintained can last 20 to 25 years.

Roof – Inquire about what material the roof is made of and its age. Different roof materials have different life expectancies. For instance, a roof made of asphalt shingles can last anywhere from 15 to 30 years.

Electric – Take a look at the light box. See if there is room for additional circuit breakers to be added, or is the electrical system at its capacity?

Water – Test the water pressure by turning on the upstairs shower. Also, ask about the age and capacity of the hot water heater or water heating system.

Be sure to take notes on these items when you walk through a home. Then you have these statistics for research and reference.

The definition of an empty nester is a person whose children are grown and have left home. An alternate definition might be: a person who is ready to start the next chapter in their life, a chapter that often begins with a move.

Empty nest buyers have a definite set of home buying criteria. And while it is true that every buyer has their own unique wants and needs, there are certain amenities almost all empty nesters should add to their home search check list.

1. A Good Layout: A floor plan that is easy to navigate is a must. Many empty nesters look for a home with just one floor in case there are mobility issues as they age. However, if a single floor is not your style; an extra first floor room that could be converted to a bedroom is a nice option, as is a first floor bathroom.

2. Good Shape: If buying new construction is not an option, search for a home that is in very good to excellent condition. Almost all empty nesters do not want the expense and time commitment of renovating a home.

3. A Look Outside: Similarly, most empty nesters want to scale back to a smaller yard and property. In fact, many retirement communities or condominium associations include property upkeep as part of the services.

4. Store the Stuff: While many empty nesters use this move to reduce their belongings, you will still need ample storage space. A dry basement, easy-to-reach attic or attached garage are all good options.

5. Stay Connected: Consider how far you want to move from friends and family. Many empty nesters choose to move to warmer climates for all or part of the year. If this is your plan, be sure to add the expense of return trips or visits to loved ones to your budget.

In Case of Emergency: No matter where you move, find out how far the nearest hospital, first aid squad and doctors offices are from your potential home. In the event of an emergency, you will want nearby medical assistance.

When most people look at houses, it is with the hope of finding that perfect new place to call home. But for others the motives are entirely different. They are looking for a property they can purchase, make a few improvements to and then sell again for an even greater price. This practice is called “flipping” and it can be a very profitable, especially for those who are well prepared and sell during favorable market conditions.

Here are four things you should do before you consider flipping a property.

1. Learn everything you can about the subject. Look in your local libraries, bookstores and online. A depth of knowledge about the topic will be invaluable. If possible, network or consult with others who have already turned over properties for profit. Their real world experience is also a great resource.

2. Identify the community or communities where you want to focus your efforts. Look for up and coming towns or ones where the demand for homes is increasing. Consider things like taxes, the school system and location. Research what homes are selling for and what are the most popular home styles. For instance, if Colonials are selling within days of listing for asking price, you will want to look for an undervalued Colonial instead of a Ranch or Split-Level.

3. Even with all this research, you will need the help of professionals. Build a team of experienced people you can rely upon. Some suggestions include a real estate professional, real estate attorney, mortgage broker and home inspector. If the property you purchase needs work, it is also a good idea to have a reputable contractor, electrician and plumber on your side.

4. Approach this transaction as a business opportunity. Have goals and contingency plans. When crafting your asking price factor in your time, expenses and the current market conditions. And if the property does not sell quickly, have a plan for that as well.

No home is perfect. But even with that understanding, all buyers would prefer to know up front if a property has areas of real concern. That is why sellers are required by law to disclose defects in their home.*

Disclosures are made after a seller accepts an offer. Things that are often included on a disclosure document include:

- Condition of the legal title. If there are liens against the property or disputes over ownership, these must be revealed.

- Condition of services and necessities including sewer, electric and water. Buyers need to know that the home will meet their basic needs.

- Water damage. If the property is prone to flooding, is in a flood zone, or if the home has water damage, that information should be disclosed.

- Harmful materials. If the home has lead paint, asbestos or radon, list those on the disclosure sheet. If the materials have been remediated, include related work orders or proof of payment.

- Insect damage. Defects caused by termites, ants or other pests should be disclosed along with pertinent documentation.

- Home appliances and systems. Broken or malfunctioning items should be listed.

- Structural problems. Compromised foundations and roofs should be revealed.

- Additions and improvements. Sellers should itemize recent home improvements, renovations or changes.

The buyer then has the opportunity to evaluate the list. If the buyer finds the disclosures unacceptable, usually due to safety concerns or financial reasons, they may elect to cancel the transaction. Or, they may choose to proceed with a home inspection and see what that report reveals.

In either event, the disclosure form is designed to protect both the buyer and the seller and ultimately prevent a possible legal action.

* Disclosure laws vary from state to state. Please consult your real estate professional for more information.

For most people, a house serves two purposes. It is the physical center of your personal life, the place where you spend time with family and friends. In addition, it is typically the single largest investment a person or couple makes and is their most expensive asset.

To protect that investment it is important to conduct routine preventative maintenance. This will help the home retain its value and is often less expensive and troublesome than emergency repairs.

Here are four areas to monitor:

The Roof – Identify what type of roof is on the house and follow the recommended care plan. Check for damage to shingles, eaves and gutters twice a year. Gutters should be cleaned in the spring and the fall. Also inspect all downspouts.

The Yard – In addition to regular upkeep, such as raking and mowing, conduct a full yard clean up in the spring and the fall. Clean out brush, trim back bushes, cut back overgrowth and remove overhanging limbs.

Home Heating – The type of heating system will dictate care, but an annual inspection by a heating professional is a good idea for any system. For forced air heating, be sure to change filters and check humidifiers. For oil and gas furnaces, check to make sure all exhaust pipe connections are tight.

Safety Systems – Check fire, smoke and carbon monoxide detectors regularly. Fire officials recommend changing the batteries in these twice each year.

After you have found a house you want to buy, made an offer and had it accepted, one of your greatest resources and allies will be your real estate attorney. He or she will work closely with you and your agent to make sure your interests are protected and that the transaction follows the letter of the law. For these reasons, selecting a qualified lawyer is very important.

Perhaps the best person to ask is your broker and/or agent. They have been through dozens, if not hundreds of home deals and know the reputation and skills of the real estate attorneys in the area. Many times, they have established professional relationships with one or two attorneys. As their client, you can capitalize on that relationship.

In addition, you can ask family and friends for their recommendations. Just be sure to choose an attorney who specializes in your type of transaction. For instance, if you are buying a piece of commercial real estate, choose an attorney with a background in that arena. If you are a landlord, select a lawyer with landlord-tenant experience.

Besides personal endorsements, you should do some research into the lawyer and his or her firm. Call your state bar association and make sure the individual is in good standing. You might also want to do some research online or at the library. This can help you determine if this person is the right fit for your home purchase.

Buyers often wonder how they will know when they've found the house. Knowing when to pull the trigger and make an offer can be a challenging decision. Some want to bid on the first home they see. Others want to wait and wait, believing a better property will pop onto the MLS at any moment.

Here are some tips for knowing when it's the right time:

Know the Landscape – In the weeks and months leading up to your home search, review the weekly real estate section. Pay attention to the asking prices and do a few “drive bys” to see what different homes are going for. In addition, look at the public notices to see actual selling prices. This will help you know when you see a good value.

Know What You Want – Identify the four to five “wants” that are driving your desire to move. Maybe you need more space, a bigger yard and a shorter commute. Use these as key criteria for deciding if a home is the one for you.

Know the Rates – Pay special attention to mortgage rates and trends. Many lenders don't allow you to “lock in” a mortgage rate until your closing date is only a few weeks away. If rates begin to rise, you may want to be a little less picky in order to capitalize on lower mortgages.

Know when to Listen – The input and advice of your Realtor ® will be very important during the home search. He or she should be able to tell you key information, like if the home has been over or under priced, if the property is likely to garner a lot of attention from other buyers and what a fair offer might be. Equally as important is the input of your spouse or partner. A successful purchase is always based on a solid joint decision.

Know Yourself – When you see the house, your instincts or “gut” will be the first clue. This feeling lets you know you have an intangible connection to this house. If the other factors are in place – location, amenities, price, rates – this house may be the next place you call home.

The vast majority of home buyers need the support of a bank or other lending institution to make their home purchase a reality. In other words, they need someone with deeper pockets to lend them the money to buy the home. That mortgage is then paid back over time, with interest.

When you shop for a home loan, you may choose to work directly with the lender or use the services of a mortgage broker. Here is a closer look at the two options.

Lender– Banks, credit unions and other lending companies have employees whose job it is to review, process and approve home loans. A good loan officer will review your financial background and work with you to find a loan that meets your needs. It is important to remember there are many different kinds of mortgages, including variations on the number of years, the interest rate, and whether it is a fixed or adjustable rate loan. But no matter which loan you select, all mortgages offered by a bank loan officer originate from his or her employer.

Mortgage Broker- A mortgage broker does not represent one lender. Instead his or her job is to review your finances and then find the mortgage that best meets your needs. In this role the broker is your advocate, searching for the best rates, terms and conditions for you, his client. In turn for brining them businesses, the lender you choose will ultimately pay the broker a fee for connecting the two parties.

House hunting is one thing when you are moving within the same community. It’s a totally different experience when you are looking at a home in another part of the state, country or even world. You can’t simply jump in the car and stop by the open house or drive by to judge the home’s curb appeal.

When you move long distance it requires a totally different approach. Begin by choosing a real estate or relocation professional that has a proven track record and a solid reputation. He or she will be your eyes and ears in the marketplace so it is imperative that you trust his or her opinions.

Next, make sure your representative is very clear on what you want and don’t want in a home. If a big backyard is your number one priority, tell her that. If you don’t even want to consider ranch style homes, tell her that too. Be specific about your likes and dislikes. It will help her focus on the right properties for you.

Use the Internet to your advantage. Ask your Realtor® to email you pictures and virtual tours of the homes she thinks meet your criteria. In fact, if it is a strong seller’s market, these might be the only images you see before you decide to make an offer. Of course, if it is at all possible, visit the home in person before the deal becomes final.

House hunting long distance certainly presents some obstacles, but it does not mean you can’t find the perfect home for you and your family.

Most sellers hire a real estate professional to help sell their home. The hope is the agent can sell the home quickly for as much money as possible to a qualified buyer. In return, the agent is paid a commission, typically a percentage of the purchase price.

All of these details and more are covered in the listing agreement. This contract between the seller and the agent outlines all the parameters of their relationship. The document is signed when you officially hire the agent.

There are many types of listing agreements, but the most common by far in the residential real estate arena is called the Exclusive Right to Sell Listing. In this arrangement, the listing agent has full control over the sale including things like marketing, showing the home and negotiations. In fact, whether you (the seller), the listing agent or a third party finds the buyer, the listing agent earns the sales commission. However, the commission will be split with the buyer’s agent if he or she is the one responsible for bringing the buyer to the table.

To protect the seller’s interest, the Exclusive Right to Sell Listing is usually capped at 90 or 120 days. This allows the seller to terminate or renew the listing based on how pleased you are with the sale to date.

To learn more about listing agreements and the different types available, visit the Learning section on www.Century21.com.

First time home buyers are often encouraged to save for more than the cost of a home’s down payment. That’s because buyers are also responsible for various “closing costs.” Here’s an idea of what those expenses may include.*

- Loan fees. The lender will charge for originating and processing the loan. This includes things like credit reports and appraisals. Also, if you are paying down your mortgage rate with “points,” that money is due at the closing.

- Homeowner’s insurance. All lenders require an insurance policy to protect their investment. Buyers must arrange for the policy, which usually must be paid in full for one year prior to the closing date.

- Property tax. This amount is typically calculated at 1.5 percent of the current market value of the home.

- Title Insurance. Customarily, the buyer pays for two policies. The first protects the buyer if the ownership of the property is ever contested. A second policy protects the lender against a lien on the property.

- Private Mortgage Insurance (PMI). A lender may require you to pay for this additional insurance if you elect to lay out a down payment of less than a 20 percent.

- Legal fees. This covers work done by your attorney.

* Please note that closing costs are negotiable with both the seller and the lending institution.

For more information consult your real estate professional, lender or real estate attorney.

One of the first obstacles for many first-time home buyers is the down payment. A down payment is the money a buyer pays up front and it serves two general purposes. First it shows the seller and the mortgage lender that you are serious about buying this property. The fact that you are willing to part with a large part of your savings indicates you are a committed buyer. Second, the down payment can help reduce the amount of money you will need to borrow. Typically, the larger your down payment, the less you will have to pay on your monthly mortgage. And if you borrow less, you will also have to pay less in interest costs.
 
When you’ve decided it is time to start saving for a home, it is wise to do some research first. To see what homes are selling for, look online and in the newspaper. You can also use the Internet to investigate different lenders and interest rates.

Once you are familiar with the general conditions, contact two professionals: a Realtor® and a mortgage lender. A real estate professional can further educate you about market conditions and help narrow your search field. Be up front and let her know that you are just beginning this process, but are trying to determine how much you will need to save for a down payment.
  
A mortgage professional can tell you even more about the types of loans available. While a down payment of 20 percent of the purchase price is still common, there are many other mortgage products that allow buyers to make a smaller down payment of 10 or even five percent. Again, when you speak with the lending associate explain that you are just beginning to save, but want to learn about your options. 
  
Armed with some information about market conditions and the different types of mortgages available you can craft a plan that will help you save for that all important down payment.

If you scan the real estate section every weekend, sometimes you might see a listing begin or end with the description, “motivated seller.” This means the seller really needs to find a buyer. And that can be good news for you.

The seller’s motivation can be one of a hundred different things. Perhaps it is a couple that is divorcing and the sale is part of the settlement. Maybe it is a grown child trying to sell the home of a parent who has passed away. Often a job reassignment is the reason for the move. Maybe there has been a change in finances for the family and now the mortgage payments are too high.

Whatever the incentive, a motivated seller is more likely to negotiate on price and terms. This type of seller might take far less than the asking price or be willing to make major repairs in order to seal the deal. And if you are looking to move quickly this can also be an ideal fit.

The bad news is that few sellers like to advertise the fact that they need to sell a home so badly. So, it is up to you and your real estate agent to do a little research. Find out how long the home has been on the market. See if the price has been reduced. And do the obvious – ask the seller or his agent why the home is up for sale. The answer may help you judge how far you can undercut the asking price or what kind of terms you can request.

A little knowledge can go a long way to helping you, and the seller, come to an agreement.

The key to a successful move is organization. Completing the right task at the right time is so important. Ultimately it can mean a smoother, less stressful and more enjoyable moving experience.

If a friend asks you to borrow money, you will want to know a few things first. Have they borrowed money from other friends? Did they pay those debts back? Is it likely they will pay you back?

It is a very similar situation when a buyer asks a bank or other lender to approve a mortgage. The bank wants to know how risky or safe it is to lend you money. It is also the reason they will request a credit report. This document details your past and current debt and how and when you paid those balances. The better your credit or bill-paying history, the better your credit or FICO score. (FICO stands for Fair, Isaac and Company, the organization that created this rating system.) The higher your FICO score, the more confidence a lender will have in giving you a home loan. The score can also affect your interest rate.

Here is a closer look at the information used to determine your score.

Public Records: The bank will look closely at any settlements or financial judgments made against you. Things like divorce settlements, support payments, bankruptcy and foreclosures will be listed.

Red Flags: The report will only include problems with your bill-paying finances. In other words, if you regularly pay your bills, rent, utilities, and medical expenses on time, that will not be recorded. Only red flags or problems will be delineated. This includes bounced checks, late payments and overdrawn accounts.

The Good and the Bad: When it comes to more expensive debts, the report includes both the positive and negative. This includes car loans, current mortgages, personal loans and credit cards. Whether you pay on time or are late, that information is recorded here.

Other Inquiries: This section lists any other firms that have asked for your credit history during the past two years. Lenders will be wary if you have asked multiple institutions for loans because it may mean you are accumulating too much debt.

Lenders are unveiling different mortgage products all the time in an effort to meet the needs of different clients. But the majority of home buyers still select from three types of mortgages – the Fixed Rate, the ARM and Balloon. Here is a closer look at these three options.

Fixed Rate Mortgage– Here the interest rate remains the same for the life of the loan. Typically, borrowers assume a 30-year fixed mortgage where the interest rate never varies. This makes for predictable payments and easier financial planning. The drawbacks are that if rates drop and you want to re-finance, you will need to pay closing costs. Also, rates tend to be higher on a fixed rate mortgage than on other loans.

Adjustable Rate Mortgage– Often called an ARM, this loan offers a fixed initial interest rate for a shorter period of time, perhaps one, three, five or even 10 years. After that initial period the rate can be adjusted, often every year until the loan is paid off. The benefit here is that rates are often lower during the first few years. It also allows you to capitalize if rates should drop. However, the risks are greater than a fixed rate mortgage as rates may increase significantly down the road. This option can also make for more difficult financial planning.

Balloon Mortgage– This mortgage has a fixed rate and a predictable payment schedule, but after a pre-determined time, say seven years, the entire balance of the loan is due. Borrowers are attracted to this option because the rates tend to be low, but that final balance can be an overwhelming. Many opt to convert the loan to a fixed rate or ARM before the balance is due. This type of loan carries the most risk, since foreclosure is often the penalty for a balloon loan that cannot be paid off.

Ask your Realtor® or mortgage professional for more information about these options and other mortgage products available today

When you decide to buy a home you will rely on the expertise of people who specialize in this field. Four professionals you are likely to work with include the following:

Real Estate Agent or Broker: This person is your advocate during the entire transaction and will help with home selection, making an offer for purchase, and ultimately negotiating the deal. He or she will also be your main source for real estate information and a link to other professionals.

Lender: Most people need to borrow money to fund the purchase of their home. Some use a bank or other lending institution. Others choose to go through a mortgage broker. The job of this professional is to find you the lender that best meets your needs, including interest rates, mortgage terms and down payment. A referral from your real estate agent is a great way to locate a mortgage professional you can trust.

Real Estate Attorney: This lawyer will prepare and review all binding contracts and documentation and, along with your agent, should be a strong advocate for your interests.

Home Inspector: This person conducts a review the home and all its systems. His or her report can help you decide if the home is really right for you. It can also be used as a negotiating tool. The report will include a look at the home structure, heating and cooling systems, roof, electric, general condition of the property and more.