Home Buying Tips you Haven’t Heard

The following are not your usual home buying tips. For example, almost everyone will tell you that you should buy a home, but the first tip below suggests an alternative.Consider Renting

This is all about time and place and your own situation. Are you going to be in one place for long? If you are likely to move within a few years, you may be better off renting. Transaction costs of buying and selling will likely eat up any equity gains you get. It may seem profitable to buy at $200,000 and sell at $220,000 two years later, but commissions, closing costs and loan costs can easily add up to $20,000, so where is the gain? Also, there is no guarantee that prices will rise, and if they don’t you suffer a real loss.

Also, it is a matter of the ratio between rental rates and the costs of buying, and what is likely to happen in the market. For example, suppose you are in a slow-growing stable area, and your total monthly cost to buy a home is going to be around $1,200. If rent is anywhere near that for the same size home, you should probably be buying a house.

On the other hand, let’s look at the example of Tucson, Arizona in late 2005. You could buy a small home for about $190,000, with mortgage, taxes and insurance running about $1,325 per month. But you could rent the same home for just $675 per month. Now add to this the fact that home prices had been rising at 20% or more per year for years, and 12% of all recent sales were to speculators, not owner-occupants (a sure sign of a market top).

In this case, it would have made more sense to rent. Had you bought there two years ago, you would have paid $650 per month extra to be a home owner, or $15,600 over these last two years. In addition, the house would probably be worth a little less now than when you bought it. Better to have banked that $15,600 and bought the home today.Other Home Buying Tips

Compare ALL costs when you look at various homes. It is easy to consider just the price of a home, or what that means in terms of a mortgage payment. However, there are other costs. If the home is in a flood zone, for example, insurance could be $200 per month higher than for other homes. Look at taxes, insurance, utility costs (big homes cost more to heat) and any other regular costs, so you can honestly compare houses according to what they will cost you monthly.

Go to online forums to learn about a new town. Many people like to talk about where they live. They get to do this in various online forums, which you can search for by entering the name of the town and “forum” into any search engine. Be aware that these are often places where locals complain about their town, but you can also find interesting and useful information, and ask questions.

If your real estate agent doesn’t represent you, don’t be loyal. If she is really a seller’s agent, she is obligated to pass on comment you make to the seller, like “I think we can go higher if they reject our first offer.” Even if she represents you, be sure she does it well. If you are shown three houses that have nothing to do with the criteria you laid out, show the agent the door. By all means stick with a good agent who really helps you, but otherwise you can also call the listing agent for each house you want to see.

Inspect the home yourself. You probably plan to have a home inspection done by a professional before you buy. But you should also visit the home a second time yourself, and do your own inspection. Bring a checklist and look over everything, even if this takes an hour or more. In this way you can tell the professional inspector what your concerns are, and be ready with questions for him.

There is another reason to do this inspection. It has to do with a concept called “time investment.” Sellers are more likely to accept an offer if they have invested more time and hope into a buyer. Negotiation secrets like this are a whole other area of home buying tips – one that you may want to learn about.

Montgomery County Md, Real Estate

Tucked away in central Maryland lies Montgomery County and this area is fact becoming one of the most ideal living areas in the country. For many years Montgomery County has been associated with affluence but it has also been known as an area that is highly diverse. This is partially due to the MPDU zoning plan that has been in effect since the 1970′s The Moderately Priced Dwelling Unit zoning plan was put into effect in order to create socioeconomically diverse communities where new housing developments are required to include moderately priced options. When this plan was initially launched Montgomery was one of the first counties to do so in the nation, however this is now a trend that is seeing widespread use throughout the country.

This is an area that is well situated to see continued prosperity for years to come. Montgomery County enjoys quick access to the nation’s Capitol with is only about 30 minutes away. This has made this county a favorite of commuters who seek the more relaxed atmosphere of suburban Maryland as opposed to the hustle and bustle of urban Washington D.C. Commuters are presented with a few options in getting around this stunning area with the I270 & I70 linking the county to the Capitol region. There are also a few rail options with Amtrak and the MARC commuter rail system.

Montgomery County is also home to a thriving business sector that includes such notable companies as Lockheed Martin, Mariott International, GEICO and other public sector agencies like the FDA and The Nuclear Regulatory Commission. The success of the business sector in Montgomery County is largely due to the fantastic education system that has distinguished this county and set it apart as one of the best educated counties in the country. As one may imagine with such a successful business core and a highly educated population, there is an excellent range of homes and properties that range from quaint cottage style homes to rambling colonial estates and luxurious condos and lofts. A little something for everyone!

Home Buying Preference Of Echo Boomers/Generation Y

Home buying preferences of large demographic groups have a lasting influence on the housing market. The impact of Generation Y or echo boomers – the people born in the United Stats between 1981 and 1999, on the housing market is undeniable. With the echo boomers now coming of age and buying homes, their home buying preferences have assumed greater importance. This article is a brief summary of the home buying preferences of people born between 1981 and 1999.
According to industry experts in the recently held Urban Land Institute (ULI) annual fall meeting in Denver, Gen-Y homebuyers do not prefer a home in the suburbs like their baby boomer parents did. Echo boomers do not want to limit themselves to major metros. Instead, Gen Y buyers are more likely to be drawn to urban infill locations. Moreover, Gen Y homebuyers want to live in culturally and ethnically diverse neighborhoods.
According to Gadi Kaufmann, Managing Director and CEO of Robert Charles Lesser & Co., a Maryland firm that focuses on real estate trends, echo boomers increasingly gravitate to more affordable second tier and third tier cities if they are well-provided with enough entertainment and recreational amenities.
The coming decades are likely to witness more high-rise housing in an increasing number of small cities to accommodate the housing needs of the echo boomers. People born between 1981 and 1999 are more likely to be attracted toward home designs that emphasize bright, open spaces, with plenty of windows and those that offer flexible use of rooms and spaces.
Wireless Internet access is indispensable for this “most connected generation”. Since the echo boomers are an environmentally conscious lot, this generation prefers homes that have incorporated green building features. This could have a positive influence on the green home market and is indicative of future trends that have considerable growth potential for green housing.
Unlike baby boomers who were home owners at a much earlier age, home ownership could be possibly delayed among people born between 1981 and 1999, just as they are putting off until a later age other commitments such as marriage and childbirth.

Home Buying Tips you Haven’t Heard

The following are not your usual home buying tips. For example, almost everyone will tell you that you should buy a home, but the first tip below suggests an alternative.Consider Renting

This is all about time and place and your own situation. Are you going to be in one place for long? If you are likely to move within a few years, you may be better off renting. Transaction costs of buying and selling will likely eat up any equity gains you get. It may seem profitable to buy at $200,000 and sell at $220,000 two years later, but commissions, closing costs and loan costs can easily add up to $20,000, so where is the gain? Also, there is no guarantee that prices will rise, and if they don’t you suffer a real loss.

Also, it is a matter of the ratio between rental rates and the costs of buying, and what is likely to happen in the market. For example, suppose you are in a slow-growing stable area, and your total monthly cost to buy a home is going to be around $1,200. If rent is anywhere near that for the same size home, you should probably be buying a house.

On the other hand, let’s look at the example of Tucson, Arizona in late 2005. You could buy a small home for about $190,000, with mortgage, taxes and insurance running about $1,325 per month. But you could rent the same home for just $675 per month. Now add to this the fact that home prices had been rising at 20% or more per year for years, and 12% of all recent sales were to speculators, not owner-occupants (a sure sign of a market top).

In this case, it would have made more sense to rent. Had you bought there two years ago, you would have paid $650 per month extra to be a home owner, or $15,600 over these last two years. In addition, the house would probably be worth a little less now than when you bought it. Better to have banked that $15,600 and bought the home today.Other Home Buying Tips

Compare ALL costs when you look at various homes. It is easy to consider just the price of a home, or what that means in terms of a mortgage payment. However, there are other costs. If the home is in a flood zone, for example, insurance could be $200 per month higher than for other homes. Look at taxes, insurance, utility costs (big homes cost more to heat) and any other regular costs, so you can honestly compare houses according to what they will cost you monthly.

Go to online forums to learn about a new town. Many people like to talk about where they live. They get to do this in various online forums, which you can search for by entering the name of the town and “forum” into any search engine. Be aware that these are often places where locals complain about their town, but you can also find interesting and useful information, and ask questions.

If your real estate agent doesn’t represent you, don’t be loyal. If she is really a seller’s agent, she is obligated to pass on comment you make to the seller, like “I think we can go higher if they reject our first offer.” Even if she represents you, be sure she does it well. If you are shown three houses that have nothing to do with the criteria you laid out, show the agent the door. By all means stick with a good agent who really helps you, but otherwise you can also call the listing agent for each house you want to see.

Inspect the home yourself. You probably plan to have a home inspection done by a professional before you buy. But you should also visit the home a second time yourself, and do your own inspection. Bring a checklist and look over everything, even if this takes an hour or more. In this way you can tell the professional inspector what your concerns are, and be ready with questions for him.

There is another reason to do this inspection. It has to do with a concept called “time investment.” Sellers are more likely to accept an offer if they have invested more time and hope into a buyer. Negotiation secrets like this are a whole other area of home buying tips – one that you may want to learn about.

Boom In The U.S. Vacation And Second Home Markets

The U.S. homeownership rate has been accelerating for quite some time. According to the U.S. Census Bureau, about 70% of the U.S. population were homeowners as of 2006. This is not surprising given that the housing market has experienced remarkable sales over the last 5 years. The growing homeownership rate is not just seen in the sale of primary residence homes, but also in America’s second-home market.
Factors such as all-time low mortgage rates, increased choices in mortgage products, and appreciating home prices have all contributed to the boom in the primary residence home market and as well as the second-home market.
Buying a second home, be it as an investment or vacation property, had increased significantly among homeowners after the tax law reforms of 1997, which provided favorable tax treatment of capital gains if certain criteria were met. Another contributing factor to the second home boom is that investing in real estate was viewed as a better choice than investing in stock market, since the real estate market outperformed the stock market.
The following is a brief analysis of the U.S. second home market based on a study conducted by National Association of Realtors (NAR) using data gathered in compliance with the Home Mortgage Disclosure Act (HMDA). The data includes information of loan applicants such as demographics, geographic location of property, loan details, etc.
According to the NAR study based on the HMDA data, the purchase loans for second homes has increased markedly from 8.6 % in 2000 to 14.2 % in 2004, at an annual rate of 16 %. Second-home buyers were found to have a higher median income than primary home buyers. Although the median price of second homes ($172,000) was much more than that of primary homes ($170,000), the median loan amount for primary homes was higher than for second homes. The difference in the median home prices can also be attributed to baby boomers who are in their top earning years and are buying homes in expensive locations. With baby boomers looking towards retirement, the second-home and the primary home market will continue to be influenced by them for a few more years to come.
The NAR report reveals that second-home buyers prefer their homes to be close to their primary residences, work places or educational institutions. Some of the fastest growing second-home markets in the U.S are Nevada, Arizona, Utah, Virginia and Idaho, besides the all-time favorites – Florida and Hawaii. The District of Columbia, Maryland, New Mexico, Washington, and California are the other states that are experiencing a second-home boom now.
If you are considering buying a second home or a vacation property, be sure to seek out the services of a qualified real estate agent to guide you through this transaction.

Baltimore Real Estate | Judging the Market with an Investor’s Approach

Home Buying Tips you Haven’t Heard

The following are not your usual home buying tips. For example, almost everyone will tell you that you should buy a home, but the first tip below suggests an alternative.Consider Renting

This is all about time and place and your own situation. Are you going to be in one place for long? If you are likely to move within a few years, you may be better off renting. Transaction costs of buying and selling will likely eat up any equity gains you get. It may seem profitable to buy at $200,000 and sell at $220,000 two years later, but commissions, closing costs and loan costs can easily add up to $20,000, so where is the gain? Also, there is no guarantee that prices will rise, and if they don’t you suffer a real loss.

Also, it is a matter of the ratio between rental rates and the costs of buying, and what is likely to happen in the market. For example, suppose you are in a slow-growing stable area, and your total monthly cost to buy a home is going to be around $1,200. If rent is anywhere near that for the same size home, you should probably be buying a house.

On the other hand, let’s look at the example of Tucson, Arizona in late 2005. You could buy a small home for about $190,000, with mortgage, taxes and insurance running about $1,325 per month. But you could rent the same home for just $675 per month. Now add to this the fact that home prices had been rising at 20% or more per year for years, and 12% of all recent sales were to speculators, not owner-occupants (a sure sign of a market top).

In this case, it would have made more sense to rent. Had you bought there two years ago, you would have paid $650 per month extra to be a home owner, or $15,600 over these last two years. In addition, the house would probably be worth a little less now than when you bought it. Better to have banked that $15,600 and bought the home today.Other Home Buying Tips

Compare ALL costs when you look at various homes. It is easy to consider just the price of a home, or what that means in terms of a mortgage payment. However, there are other costs. If the home is in a flood zone, for example, insurance could be $200 per month higher than for other homes. Look at taxes, insurance, utility costs (big homes cost more to heat) and any other regular costs, so you can honestly compare houses according to what they will cost you monthly.

Go to online forums to learn about a new town. Many people like to talk about where they live. They get to do this in various online forums, which you can search for by entering the name of the town and “forum” into any search engine. Be aware that these are often places where locals complain about their town, but you can also find interesting and useful information, and ask questions.

If your real estate agent doesn’t represent you, don’t be loyal. If she is really a seller’s agent, she is obligated to pass on comment you make to the seller, like “I think we can go higher if they reject our first offer.” Even if she represents you, be sure she does it well. If you are shown three houses that have nothing to do with the criteria you laid out, show the agent the door. By all means stick with a good agent who really helps you, but otherwise you can also call the listing agent for each house you want to see.

Inspect the home yourself. You probably plan to have a home inspection done by a professional before you buy. But you should also visit the home a second time yourself, and do your own inspection. Bring a checklist and look over everything, even if this takes an hour or more. In this way you can tell the professional inspector what your concerns are, and be ready with questions for him.

There is another reason to do this inspection. It has to do with a concept called “time investment.” Sellers are more likely to accept an offer if they have invested more time and hope into a buyer. Negotiation secrets like this are a whole other area of home buying tips – one that you may want to learn about.

Learn about Anne Arundel County Real Estate

Anne Arundel is a beautiful county based in Maryland, USA. The name actually derives from the UK, from the Anne Arundell, a member of the Arundells family. The capital of the state is actually Annapolis, which is one of the most popular places in the area to visit. It is a quiet and peaceful place with some wonderful views making it a real hotspot for real estate purchases. A lot of the homes that are purchased or rented are for vacation and get-away purchases, as the area is a great country retreat.

Anne Arundel County is home to over 500,000 residents, a population that has increased at a rapid rate over the last decade or so. Both Baltimore and Washington, D.C are easily accessibly, which means that it is not only a good place to live, but the potential for a professional career is just a short trip away.

What gets most people that visit the area is the vast coastline. The country actually boasts over 500 miles of beautiful coastlines, which is adequately premium waterfront real estate, which is in extremely high demand. If that’s not enough, then there are plenty of activities available within the local community for all ages. The most popular include the likes of sports and extreme water sports, all kinds of fishing, crabbing and swimming.

For the younger people in the area there are two major skate parks which offer both fun and excitement. For the older people in the area there are over 70 country parks which work well with the nature reserves that are also open to the public on a daily basis. Anne Arundel caters for almost all ages and interests, so it is understandable why it is so popular for both residency and vacation related visits.

The only problem with the area is that if you visit, it is likely that you won’t want to return home. Don’t think this is a place for a ‘party’ retreat, but instead look at it as a place that embraces the good aspects of life. For instance, most mornings the 13-mile Baltimore and Annapolis Trail is a great place to visit. Here you’ll meet a range of hikers, joggers, bicycle riders and of course horse riders. Bird watchers are also a regular occurrence here. This is mainly due to the fact that there are a huge range of rare birds spotted on a regular basis such as heron, egrets and eagles.

If you are looking at purchasing real estate in the Anne Arundel County, then all of the above will aid the decision. If you are looking to move based on jobs and family based activities, then the following will definitely interest you. The local area is jam packed of action filled days and weekends for children and adults alike. There are camping weekends for youths as well as football and baseball home teams, that have had some decent success over the last couple of years. Of course, every year there is an annual Bay Bridge Walk, which is an experience not to be missed.

On the employment side of things, it is just as positive. Over the last few years the growth of employment in the area as been huge and has been recognised as one of the strongest in the state. On the flip side, the unemployment rate is also one of the lowest compared with surrounding areas. This makes it both a great place to purchase real estate and an extremely stable place to be employed.

Because of the desire to live and visit the area, residential and commercial investors are jumping on the real estate ladder. You’ll see a range of properties that have been developed to an extremely high standard. A lot of the properties that have been redeveloped by real estate professionals are available to rent for vacation rentals or even long term rentals. Quick research on local property sites will see the high demand that the area gets. Property prices are steadily rising and as the local residents develop the area to become even more active, it is likely that property prices will see a sharp rise over the next few years, regardless of the economic downturn.

What to Look For When Investing In Potomac Real Estate

Investing in real estate in Potomac, Maryland can be a very lucrative proposition. The area is generally known to be quite affluent and well educated, and the homes here are among the best that can be found in the greater Washington DC metropolitan area. Like investment properties anywhere, though, it is important to keep certain factors in mind in order to maximize the likelihood of turning a good profit on your investment. Going about real estate investment in Potomac the right way can be an excellent way to make a good deal of money. If you are considering investing in real estate with the intention of renting it out to tenants, it is important to select property in a Potomac neighborhood where people would pay a premium to live. Good choices are areas that are close to good schools and parks; families obviously flock to these areas, so a real estate investment in such a locale is bound to attract a great deal of interested parties. Real estate that is near prime business areas is another good choice, since young business professionals are often willing to pay higher rents for the convenience of a shorter commute. Indeed, with real estate investment, location is key. And this is as true in Potomac as it is anywhere else. The reasoning behind this logic is that even if the actual house is not in the greatest condition, it can always be renovated; however, the location is permanent. Sinking your money into an excellent home in an undesirable location is a sure way to lose a great deal of money. Bearing all of this in mind, focus your search on areas in Potomac that are known to be prime real estate. Even if you end up having to do renovations, it will be worth the extra money to have a property in a great location. Also, when looking for a real estate investment in Potomac, do the research necessary to find out what the prevailing trends are in the area. Determine what the average monthly rent for a house is, and whether it will generate the income needed to not only pay for the property and maintain it, but to earn you a decent profit. If possible, talk to others who have investment properties in the Potomac area in order to get their input and perspective about how best to go about breaking into such a situation. Before purchasing an investment property, try to look at it as a prospective renter would. Does it have minimal upkeep, for instance? Renters do not usually want to have the hassle of a lot of yard work or similar troubles for a property that they do not have a true financial investment in. Find properties that have easy to maintain yards and plumbing that is in excellent repair. This will help minimize the potential for any issues down the road that you will be responsible for as the property owner. By doing just a bit of research and taking your time, real estate investment in Potomac can be a sure winner. The area lends itself well to such ventures. You are quite likely to find yourself with a very lucrative moneymaker in no time at all.

Home Buying Tips you Haven’t Heard

The following are not your usual home buying tips. For example, almost everyone will tell you that you should buy a home, but the first tip below suggests an alternative.Consider Renting

This is all about time and place and your own situation. Are you going to be in one place for long? If you are likely to move within a few years, you may be better off renting. Transaction costs of buying and selling will likely eat up any equity gains you get. It may seem profitable to buy at $200,000 and sell at $220,000 two years later, but commissions, closing costs and loan costs can easily add up to $20,000, so where is the gain? Also, there is no guarantee that prices will rise, and if they don’t you suffer a real loss.

Also, it is a matter of the ratio between rental rates and the costs of buying, and what is likely to happen in the market. For example, suppose you are in a slow-growing stable area, and your total monthly cost to buy a home is going to be around $1,200. If rent is anywhere near that for the same size home, you should probably be buying a house.

On the other hand, let’s look at the example of Tucson, Arizona in late 2005. You could buy a small home for about $190,000, with mortgage, taxes and insurance running about $1,325 per month. But you could rent the same home for just $675 per month. Now add to this the fact that home prices had been rising at 20% or more per year for years, and 12% of all recent sales were to speculators, not owner-occupants (a sure sign of a market top).

In this case, it would have made more sense to rent. Had you bought there two years ago, you would have paid $650 per month extra to be a home owner, or $15,600 over these last two years. In addition, the house would probably be worth a little less now than when you bought it. Better to have banked that $15,600 and bought the home today.Other Home Buying Tips

Compare ALL costs when you look at various homes. It is easy to consider just the price of a home, or what that means in terms of a mortgage payment. However, there are other costs. If the home is in a flood zone, for example, insurance could be $200 per month higher than for other homes. Look at taxes, insurance, utility costs (big homes cost more to heat) and any other regular costs, so you can honestly compare houses according to what they will cost you monthly.

Go to online forums to learn about a new town. Many people like to talk about where they live. They get to do this in various online forums, which you can search for by entering the name of the town and “forum” into any search engine. Be aware that these are often places where locals complain about their town, but you can also find interesting and useful information, and ask questions.

If your real estate agent doesn’t represent you, don’t be loyal. If she is really a seller’s agent, she is obligated to pass on comment you make to the seller, like “I think we can go higher if they reject our first offer.” Even if she represents you, be sure she does it well. If you are shown three houses that have nothing to do with the criteria you laid out, show the agent the door. By all means stick with a good agent who really helps you, but otherwise you can also call the listing agent for each house you want to see.

Inspect the home yourself. You probably plan to have a home inspection done by a professional before you buy. But you should also visit the home a second time yourself, and do your own inspection. Bring a checklist and look over everything, even if this takes an hour or more. In this way you can tell the professional inspector what your concerns are, and be ready with questions for him.

There is another reason to do this inspection. It has to do with a concept called “time investment.” Sellers are more likely to accept an offer if they have invested more time and hope into a buyer. Negotiation secrets like this are a whole other area of home buying tips – one that you may want to learn about.