Finding the Right Home~an Accredited Buyer's Rep Can Help 

With all the choices in today's market, how do you go about finding the right home? It seems the more research you do, the more alternatives you discover.

It's important to visualize your needs and plan ahead. "Know what you want in a home, what's important to you, and what you can live without," Randy Lyon, Broker Associate of the firm Kettley and Company Realtors says. "Many of us start out with a champagne taste and a beer pocketbook, so it's important to be realistic," he adds.

Where and what you buy will affect you for as long as you live in the house. "Get your priorities in order before you start looking or even talk to a real estate broker or sales associate," Lyon says.

For first-time home buyers this is a new experience, so it's especially important to do your homework. If you currently own a home, you know exactly what's lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. "Regardless, you should practice the commute in rush hour before you make a commitment. A seemingly quiet road can transform into gridlock during peak hours," Lyon cautions.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. On the other hand, a lavish public school system may indicate high local real estate taxes. Check them out.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb. "In other words, make sure you're in close proximity to the things that matter most," Lyon says.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op. 

In planned unit developments (PUDs), you can find almost any combination. In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you'll pay fees for these services. "In addition to checking the documents and financial soundness of the homeowner's association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room," Lyon explains.

Affordability can be a factor not only in the type of housing, but whether it's new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. "Make sure you're dealing with a reputable builder, and have an attorney review all documents, Lyon says.

Selecting a real estate professional is an important first step in beginning your search. "Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service," Lyon says. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

Randy Lyon is one of more than 40,000 members of the Real Estate BUYER'S AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited Buyer Representative, designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 44,000 active real estate professional members of the organization throughout the world. 
 

Historic Opportunities in Real Estate

Learning The Lessons Of The Past

It 's often said, "What's Past is Prologue." In real estate, the past can indeed determine the future, when buyers choose to restore or preserve a historic property. "Opportunities abound for those wanting to purchase a historic home, but so do questions about the soundness of the investment," says Randy Lyon, Broker Associate of Kettley and Company Realtors. 

Before making an investment in history, Lyon recommends that potential home buyers consider these questions:

What regulations govern local historic buildings and districts?
Does the house need extensive restoration?
Are original or substitute materials available for repairs?
Are craftsmen who are knowledgeable about historical materials and building systems available?
How will the house be appraised?
Knowing what to look for is an important first step. "Potential buyers should understand that there are significant differences between a historic house and a new one," Lyon says. "Before purchasing a historic home, consumers will want to research just how much restoration is needed and how much the restoration will cost. That includes, of course, uncovering any possible environmental problems not typically found in new construction such as the presence of asbestos or lead paint." 
Knowledge of any structural problem and the time and money needed to fix it should not only influence the decision of whether to buy, but also how much to offer. In some cases, the seller may be required to undertake some of the work as part of the purchase agreement.

Yet the advantages of owning a historic house often outweigh the work that goes into finding and securing one. There is a rewarding sense of history in the unique detailing and meticulous craftsmanship found in historic homes as well as the satisfaction of restoration. 

"There may also be financial benefits for a historic home owner," explains Randy Lyon. "Those benefits range from reductions in property taxes and adjustments to assessed value, to state income tax credits and property tax freezes for qualified rehabilitation and restorations."

The National Trust for Historic Preservation reports that 37 states and the District of Columbia have laws that provide individuals with incentives for owning historic properties. 

Not every old home is historic. "A historic house is an example of the cultural or physical development of a community, state, or the nation due to its architecture or association with an important historical figure or event," Lyon says.

If a home does qualify as a historic property, then it may be listed individually or as part of a historic district. The listing of a building or district in the National Park Service's "National Register of Historic Places" provides public recognition of its importance, but will not interfere with an owner's right to alter, sell, or determine how an individual property may be used. 

"A local or state government housing preservation organization usually will assist owners who want to pursue a historic designation," Lyon says. However, even if the historic building meets the designation criteria, it will not be listed if the majority of property owners in a district object for whatever reason. In this case, the building is put on an "eligible" list should the objections be overcome in the future.

For more information on historical properties, contact the National Conference of State Historic Preservation Officers at 444 North Capitol Street, NW, Suite 342, Washington, DC 20001-1512. For a list of historic real estate specialists, contact the National Trust for Historic Preservation at 1785 Massachusetts Avenue, NW, Washington, DC. 20038. For a list of professional real estate buyer representatives, please contact the Real Estate BUYER'S AGENT Council, 430 N. Michigan Avenue, Chicago, Illinois 60611; phone (toll-free) 800-648-6224 or direct 312-329-8656. 

Randy Lyon is one of more than 40,000 members of the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited Buyer Representative, designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 44,000 active real estate professional members of the organization throughout the world. 

www.rebac.net

Prequalifying Helps Determine How Much House You Can Afford

Before you start your house hunting in earnest, the real estate professional with whom you are working likely will "prequalify" you to determine a price range you can afford. According to Randy Lyon, ABR®, prequalification is a necessary part of the home buying process that helps save you time and money.

"Don't be shy or withhold information about your income or credit status. Your real estate professional isn't trying to pry. Rather, he or she must know all details related to your ability to obtain a mortgage," Randy Lyon, Broker Associate, ABR, GRI, e-Pro of Kettley and Company Realtors says.

By candidly discussing your financial situation, you'll give the agent the information necessary to show you homes you can afford, Lyon notes. "If you don't open up, you are placing the real estate professional in the role of a tour guide, not someone who can help you find a home within your budget. You'll wind up wasting your time and that of the seller," Lyon says.

Once you have signed a contract to purchase a home, you must choose a lending institution or mortgage company from which to obtain your home loan. Your loan application will request financial data including your place of employment, assets, and liabilities (including recurring debts such as credit card bills and car payments).

Here are two important tips on loan qualification from the Kettley and Company Realtors 1) Do not borrow the down payment without disclosing the loan, submit fake letters-of-credit or gift letters, or make secret financial arrangements. 2) Accurately list your income and assets, all debts and the approximate amounts you owe.

You'll most likely be charged a credit report fee by the lender, which will cover the cost of having your credit history examined. Credit reporting agencies compile credit reports on consumers, including bill payment history, as well as whether you have been sued or filed for bankruptcy among other information.

Federal credit reporting laws do not give you the right to inspect the actual credit report at the reporting agency or to receive an exact duplicate of the report. But, you are entitled to a summary containing the sources of the report's information. 

If your ability to obtain a mortgage is adversely affected by the credit report, you have the right to challenge its accuracy and seek corrections.

"The credit report is part of the information the lender uses to determine if you qualify for a loan. It is not a mechanism to prevent you from buying. Remember, lenders want to make loans, not turn them down," Lyon says.

Randy Lyon is one of more than 40,000 members of the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited Buyer Representative, designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 44,000 active real estate professional members of the organization throughout the world.