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Do we dig deep and buy a dream
home or settle for a starter home?
ANSWER:
Choosing between a smaller house in an affluent
neighborhood, an older, bigger house in a more
working-class community or a brand-new home is not easy.
If you're in this situation, start by examining your
priorities and asking the following questions:
● Is the surrounding neighborhood
or the home itself the most important consideration?
● Is each of the neighborhoods
safe?
● Is quality of the schools an
issue?
● Do any of the areas seem to
attract more families with children or adult residents?
And where do you fit in?
As for the return on your investment, home-price
appreciation is hard to predict. In the late 1980s, and
again 10 years later, the more expensive move-up housing
appreciated wildly. But during the recession that
followed, smaller homes tended to hold their value
better than more expensive ones.
How do I get the real scoop on homes I am looking at?
ANSWER:
Home inspections, seller disclosure requirements and the
agent's experience will help. Disclosure laws vary by
state, but in some states, the law requires the seller
to complete a real estate transfer disclosure statement.
Here is a summary of the things you could expect to see
in a disclosure form:
● In the kitchen -- a range, oven,
microwave, dishwasher, garbage disposal, trash
compactor.
● Safety features such as burglar
and fire alarms, smoke detectors, sprinklers, security
gate, window screens and intercom.
● The presence of a TV antenna or
satellite dish, carport or garage, automatic garage door
opener, rain gutters, sump pump.
● Amenities such as a pool or spa,
patio or deck, built-in barbeque and fireplaces.
● Type of heating, condition of
electrical wiring, gas supply and presence of any
external power source, such as solar panels.
● The type of water heater, water
supply, sewer system or septic tank also should be
disclosed. Sellers also are required to indicate any
significant defects or malfunctions existing in the
home's major systems. A checklist specifies interior and
exterior walls, ceilings, roof, insulation, windows,
fences, driveway, sidewalks, floors, doors, foundation,
as well as the electrical and plumbing systems.
The form also asks sellers to note
the presence of environmental hazards, walls or fences
shared with adjoining landowners, any encroachments or
easements, room additions or repairs made without the
necessary permits or not in compliance with building
codes, zoning violations, citations against the property
and lawsuits against the seller affecting the property.
Also look for, or ask about, settling, sliding or soil
problems, flooding or drainage problems and any major
damage resulting from earthquakes, floods or landslides.
People buying a condominium must be told about
covenants, codes and restrictions or other deed
restrictions. It's important to note that the simple
idea of disclosing defects has broadened significantly
in recent years. Many jurisdictions have their own
mandated disclosure forms as do many brokers and agents.
Also, the home inspection and home warranty industries
have grown significantly to accommodate increased demand
from cautious buyers. Be sure to ask questions about
anything that remains unclear or does not seem to be
properly addressed by the forms provided to you.
How do you choose between buying and renting?
ANSWER:
Home ownership offers tax benefits as well as the
freedom to make decisions about your home. An advantage
of renting is not worrying about maintenance and other
financial obligations associated with owning property.
There also are a number of economic considerations.
Unlike renters, home owners who secure a fixed-rate loan
can lock in their monthly housing costs and make prudent
investment plans knowing these expenses will not
increase substantially. Home ownership is a highly
leveraged investment that can yield substantial profit
on a nominal front-end investment. However, such returns
depend on home-price appreciation
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What are the pros and cons of adding on or buying new?
ANSWER:
Before making a choice between adding on to an existing
home or buying a larger one, consider these questions:
● How much money is available,
either from cash reserves or through a home improvement
loan, to remodel your current house?
● How much additional space is
required? Would the foundation support a second floor or
does the lot have room to expand on the ground level?
● What do local zoning and
building ordinances permit?
● How much equity already exists
in the property?
● Are there affordable properties
for sale that would satisfy your changing housing needs?
Ultimately, the decision should be
based on individual needs, the extent of work involved
and what will add the most value. For more information,
check out "The Do-able Renewable Home," a booklet
published by the American Association of Retired
Persons, available online at www.homemods.org.
What do all of those real estate acronyms in the ads
mean?
ANSWER:
If you find yourself stumbling over weird acronyms in a
real estate listing, don't be alarmed. There is method
to the madness of this shorthand (which is mostly
adopted by sellers to save money in advertising
charges). Here are some abbreviations and the meaning of
each, taken from a recent newspaper classified section:
● assum. fin. -- assumable
financing
● dk -- deck
● gar -- garage (garden is usually abbreviated "gard")
● expansion pot'l -- may be extra space on the lot, or
possibly vertical potential for a top floor or room
addition. Verify actual potential by checking local
zoning restrictions prior to purchase.
● fab pentrm -- fabulous pentroom, a room on top,
underneath the roof,
that sometimes has views
● FDR -- formal dining room (not the former president)
● frplc, fplc, FP -- fireplace
● grmet kit -- gourmet kitchen
● HDW, HWF, Hdwd -- hardwood floors
● hi ceils -- high ceilings
● In-law potential -- potential for a separate
apartment. Sometimes, local zoning codes restrict
rentals of such units so be sure the conversion is legal
first.
● large E-2 plan -- this is one of several floor plans
available in a specific building
● lsd pkg. -- leased parking area, may come with an
additional cost
● lo dues -- find out just how low these homeowner's
dues are,
and in comparison to what?
● nr bst schls -- near the best schools
● pvt -- private
● pwdr rm -- powder room, or half-bath
● upr- upper floor
● vw, vu, vws, vus -- view(s)
● Wow! -- better check this one out.
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