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Archive for the ‘First-Time Homebuyers’ Category

10 Tips for Those Who Have Decided to Buy

by PJ Wade

Wanting to buy a home and deciding to buy a home are two different things. The first is a desire or a dream. The second is commitment to achieve the goal. Do you want to buy, or have you decided to buy?

If you are ready to commit to success, you are determined to replace wanting to buy with deciding to buy. Here are 10 tips to help you on the path to real estate ownership.

1. Decide who will facilitate your buy: The professional team you put together can make all the difference.  Concentrate on credentials and experience. The knowledge and ability to strategize on your behalf does matter.

When to Buy Your Home

2. Decide when you will buy: Buying a home or investment property is not something to rush into, but taking a long time does not necessarily make your choice a better one. To facilitate a sound buying decision, project ahead three months at a time to see what external factors in your life and career might disrupt buying momentum, or add additional advantages to the timing

3. Decide where you will buy: Location is still the key factor in sustainable value and rate of appreciation over time. The best returns come from buying the best location you can afford. You can renovate or rebuild the structure or unit, but you cannot move the land or condominium complex. Location matters.

4. Decide which you will buy: It’s not how many properties you view that will ensure success, but whether you see the property that best suits your needs, wants, and decision making.

5. Decide what you will buy: Stay on point and avoid getting carried away. Does proximity to schools or public transportation matter? What will your home-based business require? Will an income-suite enable you to buy an even better location? Write your must-have list down and check it when you view properties and before you make an offer.

6. Decide what value you can add:Concentrate on improvements that increase functionality, affordability, comfort, and resale, not just changes in decor.

What to Pay For Your Home

7. Decide what buying will cost: Set a budget for the entire project, not just the mortgage. Your real estate professional can help prepare a full financial projection of costs.

8. Decide how you measure success: If you don’t track time and the properties you’ve seen, you may become overwhelmed with detail and confused by the continually changing real estate market. Focus is the key. Organization will ensure your success.

9. Decide what’s unique to your situation: What considerations or challenges must you take into account that may not be true for all buyers? Do you have a property to sell before you can buy? Do you have special mobility needs, or design features like higher ceilings or a detached garage that are important to your hobbies or business? Share this information with your real estate professional at the start, so they have the full picture of your needs.

10. Decide- What’s the point of buying?: This decision must come first and stay first as you go. There are many great reasons for buying real estate, but what are yours? When your point or purpose in buying is crystal clear, you can weigh the relative merits of the properties you view, and the many small decisions that must be made on the way to the first big step: Have you decided to make an offer?

Published: August 9, 2011

Then Perform Regular Home Maintenance.

Not performing regular maintenance on your home is like burning money.  So many homeowners neglect basic maintenance like having their A/C and heating units serviced yearly, replacing air filters, and even painting, that instead of having small maintenance costs they end up with huge repair or even replacement costs.

To avoid this cash drain,  keep a monthly home repair and maintenance checklist as a reminder to take care of the little problems before they become big ones. If you have any questions, feel free to ask your Realtor.
Since your home is probably the costliest investment you will ever make, it is crucial to protect it and avoid expensive damage like rotted wood, broken HVAC systems, or the wasteful lack of energy efficiency. Making timely repairs will help both your wallet and the environment.  None of the work is terribly difficult or expensive; the biggest investment is your time.

Here is your month-by-month guide to money saving maintenance:

January Maintenance Checklist

• Check for ice dams or icicles which could cause roof damage.
• Arrange for an energy audit to make sure your home’s energy efficiency (or lack thereof) won’t drain your wallet.
• Replace air filter in HVAC system.

February Maintenance Checklist

• Check for ice dams or icicles which could cause roof damage.
• Tackle indoor painting projects.
• Clean lint from dryer ducts and vents to prevent fires and increase dryer’s efficiency.
• Inspect grout in bathrooms and kitchens, and repair and seal if needed.
• Clean out sump tank and clear screen on sump pump (if you have one).
• Replace air filter in HVAC system.

March Maintenance Checklist

• Fertilize lawn with pre-emergent crabgrass preventer.
• Check your home’s foundation for cracks to prevent damage from mold or mildew.
• Inspect fences, repair if needed.
• Inspect deck, replace protruding nails with galvanized screws, then clean and seal the wood.
• Inspect gutters for sagging or damage and repair if needed.
• Clean and store storm windows, replace with screens.
• Remove insulating covers from outdoor spigots and store for use in the fall.
• Replace air filter in HVAC system.

April Maintenance Checklist

• Clean out gutters.
• Wash roof, siding, and gutters.
• Scrape peeling exterior paint, then prime and repaint.
• Change batteries in smoke detector.
• Wash inside windows.
• Test sprinkler system and arrange for necessary repairs.
• Replace air filter in HVAC system.

May Maintenance Checklist

• Have A/C system cleaned and serviced.
• Check gutter, downspouts and roofs for leaks.
• Clean fireplace, schedule chimney cleaning and have chimney repointed if needed.
• Cut back branches or trees that touch the siding or roof.
• Wash exterior windows.
• Replace air filter in HVAC system.

June Maintenance Checklist

• Check supply hoses to washing machines for leaks or deterioration.
• Remove toe plate from dishwasher and check for leaks.
• Test GFCI circuit in garage or utility room.
• Add root killer to sewer line to prevent blockages.
• Inspect roof and replace any curling or missing shingles.
• Replace air filter in HVAC system.

July Maintenance Checklist

• Check that A/C drip tubes flow freely.
• Have septic system pumped if you have a septic system.
• Repair potholes in driveway.
• Replace air filter in HVAC system.

August Maintenance Checklist

• Have furnace or heating system cleaned and serviced.
• Repair or replace cracked or broken windows.
• Clean and lubricate tracks on sliding doors.
• Lubricate door and window hinges.
• Check for brick and mortar cracks, repair if needed.
• Replace air filter in HVAC system.

September Maintenance Checklist

• Add a programmable thermostat if you don’t already have one.
• Check foundation for cracks or leaks and seal if needed.
• Caulk around windows and doors.
• Drain, flush, and refill water heater, wrap with insulating blanket if not done already.
• Add weather-stripping around attic stairs.
• Add new door sweeps to bottoms of exterior doors if drafty.
• Replace air filter in HVAC system.

October Maintenance Checklist

• Check irrigation system for leaks, drain and winterize.
• Remove garden hoses from spigots and store for winter.
• Cover outdoor spigots with insulating covers.
• Remove window screens, wash and store.
• Wash exterior windows, then re-install storm windows.
• Replace batteries in smoke detector.
• Replace air filter in HVAC system.

November Maintenance Checklist

• Clean out gutters.
• Clean, oil, and store garden tools and lawnmower.
• Check weather-stripping on windows and doors and replace if needed.
• Caulk around pipes and wires where they enter the exterior wall.
• Replace air filter in HVAC system.

December Maintenance Checklist

• Check for ice dams or icicles to prevent roof damage.
• Replace air filter in HVAC system.

To speak with a Prudential Vision Properties’ Realtor today, you can call 573.449.6200 or email us at Info@PrudentialVision.com.  Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company.  Equal Housing Opportunity.

First Time Homebuyers- What You NEED To Know

While going from being a renter to a first-time homebuyer is a transformative experience, it also brings a whole new set of home maintenance responsibilities. With no more 1-800-Landlord number to call when things go wrong or need repair, you’re now fully in charge of maintaining this most important asset.

Just as the joys of home ownership appear in ways large and small, so do home maintenance needs and expenses. Here are tips to help first-time buyers stay on top of home maintenance tasks.

Gear up for every need: Home maintenance is a year-round job, so invest in the tools you’ll need to tackle typical projects.

Avoid problems with snow days and other seasonal challenges by gearing up with a set of basic hand tools and an arsenal of lawn and garden implements. And while you’re at it, invest in a storage system for home maintenance equipment that keeps everything neat and within reach, whether in your garage or a stand-alone tool shed.

Get to know the pros: First-time buyers can also be prepared by assembling your very own “home team” of contractors and service people well before you ever need them. Find local home maintenance specialists through the recommendations of family and friends, and by connecting with referral services.  The REALTOR who helped you find your new home can also put you in touch with pros whose work quality and ethics can be trusted.

Understand your home’s operating systems: Understanding the basics of your home’s mechanical systems is a must for first-time buyers, even if you call a pro for major home maintenance and repair issues. Know where your main water line is and how to shut it off in an emergency. Get acquainted with the fuse or breaker box, and label essential and non-essential systems for quick reference and energy-saving shutdowns when you’re away for extended periods of time. Set a routine for heating and cooling system maintenance, including annual tune-ups by an HVAC contractor, frequent filter changes, and sealing leaky duct work.

Maintain the exterior: Your home’s “envelope” requires care not only for curb appeal but also to protect its structural elements and energy efficiency. Immediately address such regular home maintenance issues as damaged siding, clogged gutters and insufficient grading that keeps water near the structure. Also do a regular, thorough check of your roof’s condition so that you can address trouble spots and stay ahead of repair needs.

Make utility bills manageable: Unlike most rental situations, home ownership puts you in charge of covering all utilities. If you’re a first-time buyer with sticker shock when you get your power and water bills, take steps to manage your energy dollars as well as home comfort. Budget for foreseeable seasonal fluctuations in energy needs (like summer cooling and winter heating), and check into plans offered by local utility providers that allow you to distribute costs evenly over a 12-month period rather than paying right-now prices. Also look for ways to trim costs with minor energy-saving improvements, like installing a programmable thermostat or fitting the bath with WaterSense-approved fixtures.

Establish a contingency fund: Even if you’re in a brand-new home that’s under warranty, it’s wise to have a contingency fund for the unexpected home maintenance expenses that invariably crop up.  You never know what may happen a blizzard, major hail storm, flooding, tree falls onto your home, etc.  Insurance will help you deal with issues such as these.  Make sure though that you have contingency funds to cover your deductible in case you have to make an insurance claim.

Maintaining such a financial safety net will come in handy when you least expect it, and also provide backup as you approach longer-term home improvement needs and decisions. Add this critical element to your home maintenance strategy, and you’ll be able to relax and enjoy the privileges of home ownership all the more.

To speak with a Prudential Vision Properties‘ REALTOR today, please call 573.449.6200 or email us at Info@PrudentialVision.com.  Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company.  Equal Housing Opportunity.

By: Jim Jones

Good things come in smaller packages. At least that’s the feeling today among many homebuyers, who are increasingly interested in smaller spaces instead of the gaudy, sprawling homes that were popular in the ’80s and ’90s.

Many agents believe that smaller homes are more in demand because the Baby Boomer generation is starting to downsize. Boomers no longer need four or five bedrooms and are looking for spaces that are more in tune to their lifestyles as empty nesters. In fact, the latest U.S. Census Bureau reported that a little over 60% of all U.S. households are comprised of just two people or less.

While affordability is the No. 1 driver for this trend, other factors do play a role, as buyers are more concerned with how much they will be paying each month on their energy, water and heating bills.

“You can add better insulation, new windows and insulated doors, but nothing saves energy like a slightly smaller home,” said Danny Gough, an energy auditor for the consultant firm, Energy Solutions, based in N.C. “We have seen an interest in smaller homes because of this.”

Conservation is the new watchword in new-home building and existing home sales, as buyers want to conserve their larger down payments and their future dollars by buying homes they need, not homes that impress the neighbors.

According to a recent study by the National Association of Home Builders, by 2015, new homes will not only be greener and packed with more technological features than today’s homes, but they will be 10% smaller. In its report, “The New Home in 2015,” the NAHB points to the economic downturn for a “less is more” mentality.

“People are looking beyond what they pay in principal, interest and taxes and look closer at what they will be paying each month,” said Stephen Melman, director, Economic Services, Economics and Housing Policy for the NAHB. “Buyers, despite excellent prices and low interest rates, are cautious and are going to purchase the home that they need and not necessarily even the home they can afford. They are very careful.”

This trend has developed quickly. At the beginning of 2007, the median floor area of new homes started was just over 2,300 square feet. The median floor area of new homes dropped to nearly 2,100 square feet by the end of 2010.

“That’s close to a 9% decline in floor area over a very short period,” Melman said. “Total floor area isn’t what’s important there, but the amenities inside the home itself.”

Rooms that are falling out of favor in new homes include media rooms, sunrooms, mudrooms and libraries. Echoing entryways, vaulted ceilings and giant pantries are also less popular.

The report even said that the living room is dying out and will either vanish, merge with another room or become a smaller parlor.

“People are asking what they can truly do without,” Melman said. “Almost 50% of buyers surveyed said they would be willing to give up the living room if affordability is an issue.”

Jim Jones can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

By: Jody Calvin

Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.

In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS),  a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home, with only 24% saying agents are helpful but not imperative.

“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”

First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.

Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.

Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.

While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.

Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.

As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.

To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.

Jody Calvin can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.