ConnectLA

After dealing with many of the financial issues, housing hunting is the fun part. Looking for a house is exciting, but it can also be a bit overwhelming. Buying a home is one of the biggest investments you will make in your life—so you want to make the best decision possible. So, ConnectLA will provide you with what we hope will be enough information to make an informed decision.

What you Want versus what you Need

Before you begin house hunting, you should be very clear about what you need vs. what you want. Many people focus more on wants than needs. As a result, they sometimes reject homes that perfectly meet their needs in search of homes that meet their wants. That’s not to say that you shouldn’t try to get what you want—you should just be able to tell the difference between what you really need and what you would like to have.

For example, you may need a fenced in yard for the children, but you want a fruit trees. You need three bedrooms, but you want the master bedroom to have walk-in closets. Take the time to decide on your wants and needs. Once you know what you need in a house, finding that house will be much easies.

Click on this wants vs. needs worksheet to help you with your list. You should share this worksheet with your real estate professional.

Hello Neighbor!
Now that you know what you want in a house, now you should decide what is important to you in a neighborhood. Where you live is as important as the house you live in. These are a few things to consider when choosing a neighborhood:

1. Commute: Do you need a quick commute to work? Or are you willing to endure the freeways and a long commute in exchange for more house in a community further out?
2. All that LA offers: Do you want to live near the beach or the inner city? Do you like the suburbs or the hillside communities? There are many choices in Los Angeles!
3. Family: Is a certain school district important to you? Do you need to live near your elderly parents or grandparents?
4. What about the weekends: Do you want to live close to your church or place of worship? Will you be close to shopping and entertainment venues?
5. Future development: Are there plans for large-scale development in this quiet community? Are there plans to develop a park or other recreational facilities in this neighborhood?
6. Time of day: Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?
7. Community dynamics: Is there a neighborhood council or block club? Are there opportunities to voice your opinion about what goes on in the neighborhood?
8. Homeowners’ Associations: Can I afford the homeowners’ association fees? What are the homeowners’ association rules and are they too restrictive to fully enjoy your property? Are they good for protecting home values?
9. Neighborhood investment: Have the homes in the neighborhood held or increased in value?

When you find neighborhoods you like, talk to the people who live there. They’ll be the most knowledgeable about the area and may be your future neighbors. Above all, you’ll want a neighborhood where you feel comfortable and at home.

Click on this Freddie Mac neighborhood needs worksheet to help you select the best neighborhood for you. You should share this worksheet with your real estate professional.

What are the different types of homes?

The world of residential real estate is huge—if you are in the market to buy a home, it could get a bit confusing. Let’s take a look at the five main forms that a non-rental home may take and try to sort out the differences:

House

When most of us talk about a house, we’re referring to a freestanding, single-family residence. There is also such thing as a duplex house—a freestanding structure divided into two, connected, single-family units.

The main defining characteristic of a house, besides its freestanding nature, is the extent of ownership responsibility taken on by the buyer. The owner of a house owns the building itself, as well as the land, and is responsible for all upkeep associated with those areas, including lawn and landscape maintenance, painting, repairs and real estate taxes.

Sometimes houses may be grouped together in a definite community that has shared spaces, such as a pool or playground. These homeowners pay a fee to a home owners’ association, which maintains the shared spaces and may provide such services as lawn care, landscaping and security. The homeowners’ association sets rules and regulations for the community, some ever pertaining to how your home can look.

Townhouse

A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not freestanding, so “the land on which it sits” is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two to three stories tall. They share many of the characteristics of condominiums.

Condominiums

Like townhouses, condominiums are attached to one another. If you own a condo, you do not own the land surrounding your living space. A condo owner owns only the unit itself, which is taxed as an individual entity, and sometimes a percentage of the common areas of the community. Condo communities may provide such shared facilities as a pool, gym, tennis courts and clubhouse/community room, all maintained by the condo association, which takes care of all day-to-day management tasks. This is one of the key advantages of condo living—all of the joy of using the amenities, none of the hassles of maintaining them. Condominium owners pay a monthly fee to the condo association, which also sets the rules for the community.

Cooperatives

The main difference between condominiums and cooperatives lies in the specifics of ownership: if you own a co-op, you do not own the unit itself. Instead, you own a share in the cooperative corporation. This share gives you sole right o your living space, but it does not give you ownership of it. For this reason, your real estate taxes may be covered by your co-op membership, because the building is taxed as a whole. Co-op members pay a monthly fee to the corporation, which, like the condo association, maintains the building and all shared spaces and handles daily management tasks. A co-op is generally stricter about screening prospective buyers and has more say in the handling of your own unit. Also, a co-op may be more difficult to finance than a condominium, because co-op corporations may only deal with certain banks.

Mobile Home

The clear distinguishing characteristic of a mobile home is that it is, obviously, mobile. Mobile homes are sometimes called manufactured homes. Buying a mobile home is similar to buying a car—sales tax applies, and you receive a title of ownership. Mobile homes, unlike other forms of housing, depreciate in value, as cars do. If you are using your mobile home on the road, it is, in the eyes of the law, a car. But if you settle in a mobile home park, your mobile home turns into a house. Land ownership is handled differently in different parks: In some you must buy the lot for your home; in others you can lease instead of buy it; and in others you don’t buy the land at all, but instead purchase a share of a corporation, much like buying a co-op. Property taxes are handled in various ways based on these distinctions. Like condo communities, co-op buildings and townhomes, mobile home parks have rules that must be followed by the residents.

How to find the Homes--Open Houses can be Fun and Informative

Open houses are a time-honored tradition in real estate because they give agents a prime opportunity to showcase a for-sale home, meet prospective buyers and schmooze with neighbors who always drop by. Many agents are eager to quiz open house attendees about their home-buying plans. “How long have you been looking for a home? Are you working with an agent? Are your pre-qualified for a mortgage?” they ask. Why not turn the tables? An open house can be an opportunity for you to pump a local agent for some information about for-sale homes and the housing market.
Here are seven questions you might want to ask:

1. Are you the listing agent for this house? Busy agents sometimes arrange for a partner, colleague or assistant to do the honors at an open house. Don’t assume the person on-duty is knowledgeable about the house or has met the sellers.
2. How long has this home been on the market? Well-priced homes in good condition generally don’t last long. Unless the local market is unusually weak, you’ll want to know why a particular home has become a “stale listing.” Is it overpriced? Are there hidden defects? Was the home involved in an escrow that didn’t close?
3. Have the owners received any offers and if so, why weren’t those offers accepted? If the sellers rejected offers that were too low or had hard to meet conditions and contingencies, you may as well find out before you make the same mistake.
4. Why are the owners selling this house? Understanding their motivations and needs will help you put together a strong offer that takes their priorities and timetable for moving into consideration. Are the owners relocating out of state? Buying a newly built home that’s under construction? In escrow to purchase a larger or smaller residence?
5. What furniture and fixtures are being sold with the house? If you’re thinking of buying the home, there’s no time like the present to ask whether the dining room chandelier, fancy window coverings and appliances are included. Questionable fixtures and furniture should be itemized in the purchase contract, regardless of any prior conversation.
6. Are any special costs of ownership attached to the property? Is there a homeowner’s association that levies dues and assessments? If so, who belongs to the association and who manages its affairs? Is the home located in a special property tax assessment district? If so, how much is the annual tax assessment and how is that money used? Is the home in a flood hazard zone? If so, how much are the annual flood insurance premiums? Are there any other hidden costs of ownership?
7. Are you familiar with other homes on this street and, if so, how does this one compare to the others? A sharp agent might be able to tell you about very recent sales in the neighborhood or other homes that might be coming on the market. If the residence is a tract house, the agent might be able to suggest remodeling ideas he or she has seen in neighboring homes.

How to find the Homes—Your Real Estate Professional is the Key

Your real estate agent has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties. A good agent is in tune with the housing market and searches the multiple listing service frequently. Furthermore, a knowledgeable agent will be familiar with many of the special home buying programs.

Click here to see a Sample Multiple Listing description of a property.

Sources:
http://www.realtor.com/
http://www.fanniemae.com/
http://www.freddiemac.com/