How To Choose the Best Neighborhood
Maybe you’re shopping for your first home in the town or city where you’ve lived for years, or perhaps you’re moving to a new area. Either way, it’s easy to forget that the neighborhood you choose might be even more important than the specific home. You can fix up a home to fit your taste, but you can’t remodel the entire neighborhood. While some of these things you may know to consider, others may have not crossed your mind. We’ve put together a list of things to keep in mind during your search for the best neighborhood for you. 1. Walkability Is it important to be able to walk to your gym, your children’s school, a coffee shop? Is there a park nearby where you can take kids or dogs? Don’t just look at what is provided on the home’s listing … go to the neighborhood and stroll around. Or, if you can’t get to the area, google maps will be your best friend. 2. School district If kids are or will be in the picture, find out everything you can about the school district, from kindergarten through high school. There are multiple sources for this information and they can be conflicting, so be thorough in your research and talk to people (including your agent) rather than relying solely on websites. Even if you don’t have kids, pay attention to school districts when you’re searching for a home. They can impact home value and resell value. 3. Commute time If you commute to and from work, know how much time you’re willing to spend in the car or on public transportation. Is it easy to get to highways? Consider the route you’ll go on, and if rush hour will delay your drive to and from work. 4. Rental ratio Find out how many nearby homes are owner-occupied. It’s not necessarily a deal-breaker if a property is surrounded by rentals, but turnover happens: one renter may be the perfect neighbor, but can quickly be replaced. 5. Vibe When you look around, do homes look like they’re well maintained? Even if some appear careworn, neatly kept lawns are a good sign that attention is being paid. Take a look at the neighborhood after dark, too. Does it feel safe and well-lit? Visiting both day and night, weekday and weekend, will provide a good idea about the noise level as well. 6. Curb appeal Think about the look and condition of the street itself. Is there curb appeal to not just the house you’re interested in, but also to nearby residences? Are there sidewalks and trees? Even if a street isn’t a main thoroughfare, find out if drivers use it as an alternate to avoid traffic – look for traffic circles and speed bumps. This might not be a deal-breaker, but it’s worth considering, especially if you have small children or dogs that get lose time-to-time. 7. Neighborliness Do you see people out and about on the streets, talking to one another? Find out if there’s a neighborhood community group or watch organization, both of which can provide a heightened sense of security and belonging. If you can, drive around the neighborhood at random times of the day and on different days. This can help you get a sense of what the neighborhood is like. 8. Crime data Nobody wants to think about crime statistics, but it’s important to be informed before you choose to buy in a certain neighborhood. This website can help you look at the different types of data for any given neighborhood. As you can tell, you may find the best home on the block, but if the neighborhood isn’t the best, it might be a deal-breaker. Consider these 8 things the next time your shopping around for a house.
Anatomy of a Home Listing
Real estate is one of those industries that many don’t know too much about except for the realtor themselves. You’ve probably gone online once or twice to look at listings and couldn’t make much sense of the terms that are used. Well, we’re here to make sense of those buzzwords and translate each part of the listing description into layman’s terms. Before you know it, you’ll be reading listings like a pro. Active means this home is for sale without an accepted offer. Contingent means the seller is under contract with a sale contingency on the buyer’s side. Other buyers can offer during this period and, if the original buyer can’t remove the sale contingency within 48 hours, another buyer can essentially bump them out and get under contract. Pending means the home is under contract without a sale contingency. Sold means the sale has closed. HOA stands for “homeowners association” and lists the monthly fees to belong to the association. If it’s a single-family home, chances are there won’t be an HOA, unless it’s a gated neighborhood with a community center, pool, garden, etc. If you’re looking at condominiums, there may be a high fee, mostly because you’re paying for building insurance, common areas, security, etc. Property Type will either be Single Family Home (SFH), Condominium, Townhouse, Multi-Family, or Land. Some listings will include stories in the house, basements, etc. MLS stands for Multiple Listing Service. This is the property ID number. It makes it easy to type in the number into any search browser and see the property instantly pop up. These are just a few parts of a listing that many people might not be clear about. Of course, any listing will include how many beds and baths, how much square footage, how much land, etc. The other part of the listing that people often have questions about is the Financing Information, so let’s break this down: Form 17 is the completed Seller’s Disclosure statement. It is the signed statement from the seller stating each of the details and facts about the property. Buyer’s Agent Commission is the amount of money that the buyer’s agent receives from the broker after a real estate deal. Typically, the agent is registered with a specific broker. The buyer works with the agent through a designated broker. APN stands for the Assessor’s Parcel Number, this is the identification number of the property in the legal description. Possession is when you can move into the property. Almost all listings will state “Closing.” Most sellers don’t let buyers move in before the closing happens. With offers, either the seller will review the offers when they’re received (on receipt) or they will select a date to review all the offers at once. In hot markets, when sellers expect many offers on their properties, they will usually have an offer review date a week after listing, so it gives a chance for every serious buyer to tour the property and have their agent write an offer. Preliminary Title Ordered is the preliminary title report is a report documenting the current ownership, so ensuring it’s processed will ensure you can get title insurance. We hope this can help clear up some of the terminologies you’ve either heard thrown around or read on a listing. As always, we’re here to help answer any questions you may have!
Should You Rent or Buy?
There’s no doubt that buying a home is a major life decision, but is it right for you? Of course, there’s no single correct answer as there are pros and cons to both renting and buying. A major factor in anyone’s decision-making process comes down to finances. In most cases, renting seems to be the more affordable option. However, if you’re thinking down the line, then renting won’t be the affordable option in the long run. Your decision can come down to your lifestyle and how you want to live such as whether you want flexibility or stability, what your career goals are, and whether you want a place to truly call your own. If you’re on the fence about whether you should rent or buy, we’ve dove into what you should consider. Renting Pros And Cons: PROS Mobility/freedom to move aroundLandlord pays for maintenanceDoesn’t require expensive closing costsNo fluctuation in monthly housing expensesAllows you to test-drive different living spaces and cities/states CONS You don’t build any equityLimited ability to customize your living spaceRent could go up over timeLandlord might sell or decide to stop rentingLimited sense of home stability/permanence Buying Pros And Cons: PROS You build equity over timeHome value may increase over timeYou may reap tax benefitsUnlimited freedom to customize your living spaceSense of home stability/permanence CONS Closing costs can be prohibitiveResponsibility for maintenance and repairs which requires time and effortLess flexibility to move (at greater difficulty/expense)Home value may decreaseRecent tax laws could hamper tax benefits Rent Vs. Buy: How To Decide In 5 Steps 1. Decide How Long You Plan To Live In The Same Place In other words, are you planning on putting down roots in your community or are you craving more flexibility? Many people who have a civilian job are more likely to stay in one place longer than those who serve in our military. However, because of the VA loan, many service people will purchase a home to live in during their time at a specific duty station and either rent it out when they PCS or simply sell. If you feel certain you’ll stay in a home for at least 5 years, buying a home could make sense. That’s because it could be a good fit both financially and emotionally – you can put personal touches on your home and really make it feel like it’s yours. Something you can only partly do in an apartment building. Plus, you have to share walls with your neighbors. However, renting is the better option if you prefer to be more nomadic. For example, let’s say you’re really hoping to get that job promotion but it’s halfway across the country. You don’t want to have to deal with the hassle of selling a home while transitioning to a new position. Or perhaps you’ve moved to a new area and want some time to get to know different neighborhoods before settling down somewhere. Or you may be trying out new cities/states before you settle down. Sure, you can buy a home and then sell it within a few years or months (not recommended), but the costs are hardly worth it. Aside from initial closing and moving costs, you may be paying more closing costs when selling a home in addition to other costs such as repairs and renovations that would make the house sell for top dollar. However, there is always the option to rent out the house if you plan on moving. This will put more money in your pocket in the moment and down the line. 2. Estimate The Cost Of Renting Vs. Buying In many cases, renting can be cheaper than buying a home because of the upfront costs involved. This includes a down payment, closing costs, moving costs, any renovations and other home maintenance tasks. However, with renting, if you have to break a lease at any given moment, there are additional fees that come into play. That said, just because you can afford a mortgage payment doesn’t mean you can afford a home; expenses add up. In addition to a monthly payment that’s more than the principal and interest on your mortgage, you’ll also have property taxes, homeowners insurance and (in many cases) mortgage insurance as well as homeowners association fees. On the other hand, buying a home can be cheaper in the long run and it offers you an opportunity to build equity. (Hopefully, your home will increase in value when you sell the home.) Not only that, but there are tax savings to being a homeowner. That’s not to say you should dive right into homeownership. It’s perfectly fine to rent for a few years, save up and purchase a home if you’re dead set on having a place of your own. The savings in costs of being a homeowner also assume you’ll stay in a home for the long term and may not factor in maintenance costs. However, if you do pay off your mortgage and continue to live in the home, the savings can be significantly cheaper even with home maintenance costs. Or you can take what would be your mortgage and put it aside to pay for another house to then have an investment property. 3. Mobility Vs. Putting Down Roots: Which Is More Important To You? As cliché as it sounds, life happens. Even with the best of intentions it’s hard to predict what can happen next. If you intend to stay in one place for a long time and have the financial means to do so, buying a home may make the most sense. However, it’s important to take a look at your current life situation and think about whether or not it’ll change within the next few years. Because if it does, your housing needs could also change. You could take up a new job in a completely different city, or you and your SO are interested in living the nomad life and figuring out where it is you want to settle down. In both these cases, it might be a good idea to rent for the time being so you have time to figure out what you want in a home, what your budgeting needs are and what kind of home might be the best fit for the lifestyle you hope to have in the future. 4. Weigh The Risks Of Renting And Buying As mentioned above, there are risks for both renting and buying a home. Although you can build equity when buying a home, there are some financial risks. For one, you could lose money if there’s a downturn in your local real estate market. Or, if you sell your home sooner than you want, you may not be able to make up for what you spent on closing costs or renovations. Let’s not forget maintenance costs. These are expenses you’ll need to pay to keep the home in top condition. Think checking air filters and vents, testing fire alarms, landscaping, fixing plumbing issues, among other things. Unlike renting, these things don’t come “free”. If you’re focused on other things in your life right now, like a career that requires you to travel often or you have multiple young children to attend to, adding home maintenance to your list of responsibilities may not be the best choice. On the flip side, renting means you won’t have the opportunity to build equity like you would with buying. Your rent could go up at any given moment. You’re also at the mercy of your landlord, such as being asked to move out or having to deal with maintenance requests being deferred. 5. Assess Your Financial Situation It’s important to note that you need to be realistic about your financial situation when deciding between renting and buying. Once you estimate the costs of renting versus buying, be honest about whether you can afford other upfront costs like a down payment, repairs, moving costs, and buying new furniture. Consider using a mortgage calculator to estimate your monthly payments as well as how much home you can afford. In either case, do some careful budgeting right now so no matter what you choose you’ll be able to afford a home or rent. There isn’t always a clear answer to the question of whether to rent or buy. Depending on your life situation and finances, the answer might change over time. There are other options such as rent-to-own property where you start out renting then move onto becoming a homeowner. No matter what decision you make, it’s crucial you make an informed decision based on your financial situation and lifestyle.
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