First-Time Condo Buyer? What to Expect from Your New Homeowners Association

Every owner of condominium property automatically becomes a member of a homeowners association, otherwise referred to a "HOA" throughout the United States or a "Strata" in Canada. With that membership come certain rights and responsibilities. The primary right that the owner has is to vote at HOA meetings and elect board members. Responsibilities include payment of condo fees and assessments, compliance with association by-laws and rules, and maintaining a condo unit in conformity with those by-laws and rules.

Let's take a quick look at various other terms you may hear about from your new HOA.

Declaration of Condominium and By-Laws

The declaration of condominium establishes the existence of a condominium property. It gives the precise location of the property through a legal description and describes each individual unit in the development along with the various common elements.

Individual Units

Ownership of an individual condominium unit is defined by the declaration of condominium and ordinarily consists of the interior walls and everything within the interior walls of a dwelling unit. Anything outside of that unit is usually considered to be a common element, such as the entryway, the swimming pool, the tennis courts, the parking lots and more.

Common Elements

This is property both inside and outside of buildings that the individual condo owner has an undivided interest in. It would include any common hallways, garages, parking lots, recreational facilities and open space on the property described by the declaration of condominium. If for example, there are 100 units in a condominium development, each individual unit has an undivided one percent interest in the common elements.

Running a Homeowners Association

Homeowners associations tend to operate like a small democracy. When matters are brought up at meetings to be voted on, each condo unit has one vote. Each HOA has an elected board of directors. They'll meet once a month to decide on association business and make decisions on behalf of the HOA. The unit owners are permitted to be present at these meetings.

Owners' Responsibilities Inside Their Units

Owners are responsible for any repairs within the walls of their dwelling unit. They might be responsible for damage to other units from leaks or flooding from a burst pipe. Depending on the by-laws, the unit owner might be responsible for maintenance or repairs of any pipes or electrical wires running behind their walls. The association is responsible for anything on the common elements.

Don't let the purchase of your next home get derailed. If you're thinking of getting started on condo shopping, your trusted, reputable and highly experienced real estate professional will guide you through your condominium purchase.

You Ask, We Answer: How to Choose Between Expanding Your Current Home and Buying a New One

Does your home feel like it's starting to burst at the seams? Many homeowners across the country can relate to this feeling having bought a home only to run out of space due to a growing family or for other reasons. Let's take a quick look at a few questions that will help you to determine whether buying a new home or expanding your current home is the best choice when you're in need of some extra space.

Why Are You in Need of More Space?

The first question you'll need to answer is..."why?" Are you running out of space because you've decided to start a family and have another child on the way? Or perhaps you've decided to start a business out of your home and you've outgrown the small room you had set aside as your office? Whatever the case, a major renovation or a move to a new home are both major decisions and ones that shouldn't be made lightly. Sit down with your family and consider why you need more space and what you would do with a larger home if you had one.

How Much Space Do You Need?

"How much space" is another consideration that you'll need to make in order to come to the best decision between expansion and buying a new home. If you find that your needs are perfectly suited except for that missing bedroom you may want to undergo a renovation. Conversely, if you find that you could use at least 2 or 3 new rooms and some extra room in the garage, you may want to start shopping for a new home.

Note that expanding your home to add an extra bedroom or to finish the basement will provide a limited amount of additional space - space which may end up feeling constrained later if your family or needs continue to grow. If you're thinking bigger over the long term, you'll likely be better served in finding a larger home that has extra room that you can grow into.

Other Factors for Consideration

If you're thinking about expanding your current home you'll want to consider how this will impact the other rooms in the house. Are you going to feel the need to renovate every room once that new bedroom is added? If so, is renovating a wise investment or should you simply move on to a newer home?

Living in a more spacious home is a liberating experience that your entire family will enjoy. Contact your local real estate agent today to learn more about buying larger properties and to view available real estate opportunities in your area.

Looking for Luxury? How to Upsize Your Next Home Without Upsizing Your Costs

Size matters when you are buying a new home. Whether you plan to expand your family, need more room for your stuff, or are concerned with resale value, you want to get the most space for your money. Also, if you want to add a feel of luxury to your home, one of the best ways to do it is to create open spaces rather than cramming all your furniture in rooms so tiny you can barely walk around without knocking something over.

Traditionally speaking, the larger a home is, the more it costs. If there are two newly built houses side by side in a subdivision, the bigger one is likely to cost more. However, there are some tricks to finding spacious houses that are affordable.

Choose Emerging Neighborhoods

Houses in this year's trending neighborhood are at their peak prices. Clever buyers look for neighborhoods that are in the process of being gentrified, buying at the bottom rather than the top of the market, to get more house for their money.

Fix It Up

Houses in perfect condition, that show well, sell for a premium. If you want to get more house for your money, choose something that needs a bit of TLC. A house that has pink walls and orange shag carpet might appear just too ugly to consider when you first view it, but it might just need a few coats of paint and some new carpet to become a spacious dream home.

Do Some Finishing

Unfinished areas such as attics and basements can be finished to create additional living spaces. The basement could become a family room and the attic an extra bedroom or study. An unfinished space can become the extra bathroom you need to make morning more manageable.

Consider an Addition

Contractors can add rooms to a house. If you have a large lot, you can build an extra wing. With a one story ranch house, it may be possible to raise the roof and add a second story.

The more stuff you have, the smaller your home appears. Reduce clutter and invest in smaller condo size furniture to give even the smallest home the appearance of spaciousness. Call an experienced real estate professional if you want to find your spacious luxury home at a bargain-basement price.

First Time Buyers: Understanding How Property Taxes Work and What You Can Expect to Pay

Are you about to buy a house or condo for the first time? Congratulations! Owning your own piece of real estate is a liberating experience and one that will provide you with the foundation to build your personal wealth and equity. Once you own your own home you'll be responsible for a variety of new costs, including property taxes which are assessed by your local government to pay for municipal services. In this blog post we'll share how property taxes work and what you can expect to pay when you buy your new home.

It All Begins with a Local Property Tax Assessment

As mentioned above, local governments assess property taxes as a means for paying for police officers, fire fighting services, road maintenance and the other various costs that come with running a town or city. Whether you're buying a house, a townhouse or a condo, the property that your home sits on is inside of an area known as an "assessment area". When the local government determines what your local tax levy or tax rate will be, they will assess your home based on the real estate market value of similar homes in the area. You can multiply your tax rate by the assessed value of your home to determine how much you'll owe in property tax.

Property Taxes as Part of Your Closing Costs

When you close on your new home you'll have to pay property taxes, and your real estate agent will help you to understand how much these taxes will be and how they will be paid. In most cities and counties you'll pay a pro-rated amount of property tax that covers the time span from the date you purchase the home until the end of the year, after which time you'll be paying your full assessed rate.

Don't Forget Your Overall Tax Picture

Finally, don't forget that property taxes can be factored in to the rest of your overall tax picture. Check with your accountant or another financial professional to determine whether or not you can write your property taxes off against your income tax to save some additional money. There are numerous tax benefits to owning a home, so it's best to start using them from day one.

As with all other taxes, property taxes are a fact of life that every homeowner faces. When you're ready to buy a new home and to learn more about how property taxes will affect your purchase, contact your local real estate agent today.

Buying an Investment Property? Here's How You Can Maximize Your Rental Revenue

Whether you're buying a ski-in/ski-out condo at your favorite resort or you're thinking of picking up a small home in a busy tourist area, buying a property for short-term rental purposes can be an excellent investment that quickly begins to provide additional revenue.

Let's take a quick look at a few steps that you can take to maximize the revenue that your investment properties bring in each month.

Upgrade Your Home to Give It a Luxurious Feel

It should go without saying that if you want your home to rent for a high price it has to have a significant amount of value behind it. After you purchase the home, spend some time on upgrades that help to enhance the home's beauty and usability. If possible each sofa should be a sofa-bed so that additional guests can stay the night. Upgrade the televisions, have Wi-Fi internet access available and provide a phone number that guests can call if anything goes awry.

Professional Photos and Copywriting

If you're renting your property out to short-term or vacationing tenants you're most likely going to use online services like VRBO, HomeAway or AirBnB to attract new business. While these sites have a lot of visitor traffic you're also going to face a high level of competition from other property owners in the area. It's worth paying a professional photographer to take pictures of your home as well as having a professional copywriter handle the sales copy for your listing. These are one-time costs that can help you to defeat your competition and close high-ticket clients.

Cater to Large Groups or a Niche Crowd

There are a number of "niche" travelers out there and if you can cater to these groups you'll find that you're able to charge more than the average vacation property. For example, you may be buying a home in a popular wedding destination that can be marketed to couples who are being married. If you're buying a larger 3 or 4 bedroom home, be sure to note that it can house large groups who may be traveling together.

Referrals and Repeat Business

Finally, don't forget to ask your clients to refer you to their friends and family who many want to stay in your unit, and always invite them to return in the future. You may want to consider offering a discount to repeat visitors to encourage them to visit annually.

Renting out your vacation home or investment property can provide a lucrative income stream as long as you have a professional approach and focus on providing a high level of customer service. When you're ready to start shopping for the perfect investment properties, contact your local real estate agent.

You Ask, We Answer: Should I Consider a Warranty when Buying a New Home?

Are you buying a new home? If so, you've likely pondered whether or not you should invest in a warranty to protect your investment. In today's blog post we'll briefly explore home warranties including some of the pros and cons of buying one and how they differ from homeowner's insurance.

The Benefits of Buying a Home Warranty

Home warranties are an excellent solution if you're buying a brand new home which has a lot of new appliances and fixtures inside of it, or if you're not really the "do it yourself" type and would prefer to make a service call if something inside of your home breaks down.

For example, imagine that you have a home warranty that covers your central air conditioning system and one day it stops working. You simply call the warranty provider to book a service call and as long as the problem falls within the scope of your warranty the repairs are completed without any additional cost to you.

How a Home Warranty Differs from Homeowner's Insurance

Home warranties and homeowner's insurance are vastly different but work together to protect your investment. Insurance policies cover your home against unexpected damage - fires, crime, wind storms, water damage and more, depending on your policy. A home warranty tends to cover items inside of the home - the furnace, the plumbing, electrical wiring and appliances - and will provide you with discounts on repairs or replacement should the covered items break down or otherwise stop working.

Cost and Other Home Warranty Downsides

Of course, there are a few downsides to buying a home warranty. You'll need to pay the up-front purchase cost of the warranty unless you're buying a brand new home in which the warranty is included. You'll also find that warranties generally won't cover a lack of maintenance due to the previous homeowner, which can be a bit of an issue if something breaks down and you find out it's not going to be covered. Finally you may find that any necessary repairs are actually less costly than the warranty itself.

As you can see, home warranties aren't the perfect solution for every scenario but if you're buying a new home they are an option worth considering. For more information about home warranties and how they will affect your purchase, ask your real estate professional as they'll be able to share their guidance and expertise.

The 3 Minute Guide to Real Estate "Flipping" and How to Get Moving Today

If you've been thinking about investing in a real estate project you may have considered buying a distressed house or two at a steep discount in order to fix them up and sell them at a higher price. This is known as "flipping", and in today's post we'll share a quick guide to flipping homes and how to get started with this type of real estate investing.

Assessing Your Budget and Tolerance for Risk

We'll start by stating the obvious: when you buy real estate with the intent of flipping it, losing money is a very real possibility. You'll need to assess your own tolerance for risk and decide how much you want to invest in your real estate venture.

If you're new to buying homes it's a great idea to start small – an inexpensive "fixer upper" house or a condo – and work your way up from there. Spend some time crafting a budget to assess how much you'll be spending to acquire the home and in repairs or renovations, and what you expect to receive when you sell.

Shopping for Suitable Houses and Condos

Once you've got your budget prepared and your finances are in order you'll need to start looking for a suitable home. The ideal listing is one that is priced at a discount to all of the other homes in the neighborhood as the home is in some state of disrepair or has certain issues that need to be fixed up. Spend some time browsing through local property listings which are sorted by price and note which options are the least expensive. This is where you'll want to start.

Scale Things Up by Finding a Partner

After you've bought, repaired and sold a home or two you're likely going to want to scale things up. Consider bringing on a partner who can help shoulder some of the workload or one that may want to invest capital so that you can buy homes in a higher quantity. Remember, this is business; if you work with someone else you'll want to formalize your arrangement with a written contract.

As with any business venture, there's a bit of a learning curve that you'll need to overcome when you begin flipping houses. As long as you're patient and ready to move when you find the perfect home, you'll soon find success with your real estate investments. To learn more about flipping houses and to get started with finding properties in your area, contact your local real estate agent today.

Failed Negotiations: What to Do when the Seller is an Immovable Object

Once you've found the perfect new home and delivered your first offer to the seller, you may find that they return with a counteroffer or a flat out refusal. Negotiation is part of the home buying process, but at times you may feel like the seller is the one holding up the deal due to their approach or attitude.

In this blog post we'll share a few ways to manage an unreasonable or stubborn home seller so you can get the deal closed.

Ask Yourself: Are Your Demands Reasonable?

Before trying to figure out how to work the seller from a different angle in order to win the home, you'll need to assess whether or not there's a problem with your offer or your purchasing terms which is causing friction with the seller.

Ask the seller or their agent to identify the exact issue so that you can decide whether or not you are willing to sacrifice that particular term in order to secure the home.

What is Motivating the Seller?

If you're finding that seller is simply being stubborn or is unwilling to budge on their price or the terms of the sale, you'll need to approach them differently. During the home buying process it should be your goal to try to figure out why the seller has placed their home on the market and what their motivation for selling might be.

Are they moving to a new city for work? If so, there is likely some sort of time limit on their sale and you may be able to wait them out. Or, perhaps you've discovered that they are simply downgrading to a smaller home and that they'll only sell their current home for the right price.

Sweeten the Deal and Be Ready to Walk

If the price is what is holding the deal up, you can submit a final offer with your maximum price but be sure to let the seller know that you're walking away from the deal if they aren't ready to sign. At this point you can consider the home a lost cause if they refuse, so table the best offer that you're willing to make and encourage the seller to accept it.

Dealing with a stubborn home seller might seem like a bit of an impossible situation, but try to keep in mind that they are selling their property for a reason. If you have your heart set on the home just keep faith that eventually they'll crack and the home will be yours. If you're just getting started with the home buying process or if you need more information about buying a local property, contact a real estate agent today.

Moving in to a New City or Community? Here's Why You'll Want to Meet the Neighbors

Are you moving to a new community or a new city? When you find a new house that meets your needs and seems like a perfect fit, you'll want to take some time to meet your potential new neighbors before you sign on the dotted line.

In today's blog post we'll share a few reasons why meeting the neighbors can help you feel right at home in your new community.

Your Neighbors Are Experts on Your Local Community

Whether you have questions about the area's safety at night or you simply want to know where the best coffee shops are, you'll find that your neighbors are an excellent source of information about the local area.

Spend some time thinking about questions that you would want answered before committing to buy in a certain area, and ask the locals after you've viewed the home. Yes, you could ask the seller, but remember that it's their goal to get you to buy the home and you're most likely interested in impartial answers.

They Can Help the Kids Get Settled in

If you're moving to a new city with children you'll likely want to get them introduced to other neighborhood kids so they can start making new friends. Meeting your potential neighbors during the home buying process will allow you to determine which have children that are of a similar age as yours. Of course, if you find that there are no other children in the local community that might be a sign that the area isn't very family-friendly, so you'll want to factor this in as well.

You'll Need to Assess Your Future Relations

If you decide to buy this particular new home you're likely going to be living in the local neighborhood for years - perhaps even decades. Meeting the local neighbors before purchasing your home allows you to make an assessment of how well you're going to integrate into the local community and whether or not you'll be able to have warm relations with those that live around you. It takes just a few minutes of asking around friends and family to hear horror stories about bad neighbors; meeting the locals will help ensure that you don't make a mistake that you'll regret later.

When you're ready to start your hunt for the perfect new home - and the perfect new neighbors - contact your local real estate professional. Working with an experienced real estate agent is the best way to get the home you're after in a price range you can afford.

Negotiation Tips: How to Ask the Seller to Pay the Closing Costs

You've found the perfect new house or condo, and you are now preparing an offer that you believe the seller will find tempting enough to accept. However, you know that there are going to be thousands of dollars in closing costs that need to be paid before the sale is completed and you become the home's new owner.

The question is, should you ask the seller to pay some or all of the closing costs? In today's blog post we'll address this question and list a few scenarios in which you may want to consider having the seller pick up the tab.

Ask if You're Offering the Full Listing Price

If you're prepared to offer the full asking price for the home you can certainly include the caveat that the seller assist with some or all of the closing costs. Many sellers will price their home slightly higher than they expect to receive as they believe that buyers will submit low initial offers which need to be negotiated.

For example, if a home is listed at $275,000 a seller might actually be expecting $260,000 or $265,000 for it. You can offer $275,000 but ask that they take care of the closing costs.

Ask if You're Confident the Seller Has Few Other Options

If the home has been on the market for a number of months or if you're fairly confident that the seller isn't going to find much luck elsewhere you can ask them to pick up the closing costs as one of your purchase conditions. You'll obviously want to negotiate in good faith, but if you're coming from a position of strength you can leverage this in to some additional savings.

Ask if You're Ready to Close Immediately

Are you ready to sign on the dotted line today? If you're sure that this is the right home for you, let the seller know that as long as they're willing to assist with the closing costs and accept your bid that you'll start the closing process today. Nearly all sellers will be willing to make a small sacrifice to get the deal done.

As you can see, there are a number of situations in which it makes sense to ask the seller to shoulder some of the closing costs. If you have found a home that you wish to purchase and you'd like advice on how to proceed, contact a real estate agent today. An experience real estate professional can help you craft an offer that the seller won't be able to refuse.

Buying a Vacation Home? A Quick Guide to Renting Out Your Second Home to Generate Income

Are you thinking about buying a second home to spend some time in when you're on vacation? Whether you're picking up a small house near the beach or you're looking at a ski-in/ski-out condo at your favorite ski resort, if you're only going to be in the home for short periods each year you may want to consider renting the property out the rest of the time to generate some additional income.

In this post we'll share a few tips for getting your property ready to rent to short-term visitors and how to get things started.

Preparing Your Home For Use As A Rental

Before you list your vacation property up for rent you'll need to get it ready for your first tenants. Spend some time walking through the home to determine what's missing and what might need to be upgraded.

Do you have a few spare sets of sheets and towels? Are all of the kitchen appliances in top condition? If you're going to be supplying soap, shampoo and other toiletries, are you fully stocked?

Remember – your goal should be to impress each and every client to ensure they leave a positive review and come back again in the future.

Hiring Housekeeping And Property Management Services

Since you likely don't live in the area around your vacation home, you'll want to contract out the cleaning and management to local vendors who specialize in managing vacation properties. It should be relatively easy to find these companies with a quick web search, but be sure to ask for recent references so that you can rest easy knowing your home is in good hands.

Listing Your Rental On Popular Websites

Once your home is prepared and you have your team lined up, it's time to list your property on websites such as VRBO, HomeAway and AirBnB. Browse through other local listings to see how your competition markets themselves and to get an idea of how much you should be charging on a nightly or weekly basis. Also, remember you'll need to set up a PayPal account or figure out another way for your clients to pay for their stay.

Don't forget that your local real estate agent will have some additional strategies on how to turn a second home into one that generates a positive return on your investment. Contact a real estate agent today to discuss investment properties and they'll be happy to help.

Moving to a New City? Tips for Finding a Family-friendly Community to Buy Your New Home In

If you're moving to a new city with children, one of your likely considerations is finding a family-friendly community where you can settle in and call home.

In this post we'll share a handful of tips that you may find helpful if you're searching for a family-friendly neighborhood in a new city.

Check Out The Quality Of Local Schools

Schools are one of the cornerstones of a community and high-quality schools are a sign that a community is suitable for your family. When you've made your short list of communities that you are considering, take some time to research the local elementary or high schools to see how they stack up against other schools in the surrounding area.

You may also want to connect with the school's principal or dean to ask about the environment and whether or not it would be suitable for your children.

Look Around For Local Churches And Other Community Groups

Great communities are those which are filled with engaged citizens who are actively working to better the area for everyone. When you drive through a community that you're considering, look around to see if there are churches and other groups that get local residents together on a regular basis.

You may find that these groups make for an excellent welcoming committee who can introduce you to the area and help to get your family settled.

Parks And Other Gathering Spaces Are A Good Sign

Another excellent way to determine if a community is suitable for raising a family is the number of nearby parks and public gathering spaces. You'll want to ensure that your children have a nice area to run around and play with your family pet, or that you have a nice park in which to have the occasional picnic lunch to spend some quality time together.

When In Doubt: Ask The Locals

If you're visiting a community or touring through homes, spend some time talking to the locals to hear their thoughts and opinions on how family-friendly the local area is. If you haven't yet, you should also connect with a local real estate agent who can share the ups and downs of the community you're thinking about moving to.

Follow these tips and trust your instincts, and you'll be able to find a great new community that makes a perfect home for your family.

Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to Pay

If you're in the process of buying a new home, you've likely heard the term "closing costs" in regards to the many different fees and taxes that you'll be required to pay during the purchase process.

In this post we'll look at a number of these closing costs and what you will be expected to pay when you buy that next dream home.

Taking out a Mortgage? There Will Be Fees Attached

If you're taking out a mortgage to finance the cost of buying your home you'll end up incurring a variety of fees. Nearly all lenders will charge a mortgage application fee, which covers the cost of processing your application and all of the necessary paperwork.

You'll likely have to pay for a professional appraisal of the home as well, as the lender will want to ensure that they aren't lending you more than the house and property are actually worth.

Inspection And Insurance Costs Will Add Up

If you're buying a pre-owned home you'll need to pay for a home inspection to gain an understanding of the home's condition and if you'll need to make any repairs in the near future. You'll also need to purchase homeowner's insurance on the property to protect yourself in the event that something does go wrong with the home.

If you put less than 20 percent down on the cost of the home, your mortgage lender may also require that you purchase private mortgage insurance; this will vary depending on which state or province you are buying in.

Don't Forget About Escrow Fees and Taxes

As with any major financial transaction you'll need to satisfy the tax man by paying various taxes on your purchase. These will vary depending on where you are buying your home, but might include sales taxes, property taxes, transfer taxes, recording fees, title transfer fees and more.

If you used a third-party escrow service to manage these fees or to hold your deposit during the closing process you'll also need to pay escrow fees prior to signing the final paperwork.

If you have other questions about the closing process and fees or costs that you'll need to pay when you purchase a home, contact your local real estate agent. They've assisted many individuals just like you with their home purchase and will be able to provide expert advice.

The Pros and Cons of Buying a New Home Versus Buying Pre-owned

Are you thinking about buying a new home? Congratulations!

Buying a house, condo or townhouse is an exciting and rewarding time which tends to be a lot of fun. However, along the way you'll need to make a number of decisions – including whether you want to buy a pre-owned home or one that has been built recently and is brand new.

Let's take a quick look at some of the pros and cons of buying a new home versus buying pre-owned.

New Homes Tend To Have Fewer Problems

One of the major upsides of buying new is that newly-built homes tend to have very few problems within the first few years of ownership.

While you'll still be required to make regular maintenance on a new home, when you buy pre-owned you're buying a house that has seen years or decades of weather and regular wear-and-tear.

New Construction Allows For Customization

If you want to be able to customize certain aspects of your home, it might be better to buy brand new as the builder will be able to incorporate your requests as they're building the home. Of course, you can always renovate and upgrade a pre-owned home but if you have significant needs you may find it easier to get them built into the home as it's being developed.

The Major Downsides To Buying New: Cost And Location

While there are a number of upsides to buying new, there are some downsides that you'll need to know.

First, new homes almost always cost more than an equivalent pre-owned home. Brand new homes are filled with new appliances, fixtures and modern building materials which add to the overall cost of the home. Unless the pre-owned home is on a larger lot or property, you'll generally be able to save a bit when you buy pre-owned.

Depending on where you're buying, you may also find that the location where brand new homes are being constructed is much further from the downtown or urban area. In many cities, the only available space for new construction is in suburban areas, which means that you may be in for a lengthy commute to and from work each day if you choose to buy new.

These are just a few of the factors that you'll need to consider when buying your next dream home. For more information or to get your house hunt started, contact your local real estate agent and they'll be happy to assist.

House Hunting: Watch for These Five Small Signs That Can Indicate Much Bigger Problems with a Home

It’s not uncommon for homebuyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortounate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home's foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

These small signs are symptoms of large problems, and they should concern you. If you notice any of these problems on a walkthrough, walk away from the home and contact a real estate professional for assistance.

Considering a Vacation Home? Six Tips for Buying a House or Condo for Relaxation and Vacation Use

If you've just returned from the vacation of a lifetime, you probably wish that wonderful time never had to end. When you buy a vacation home or condo, you can guarantee that you have an escape that will provide you with years of enjoyment. Before you take the plunge, though, take advantage of these six helpful tips about buying a vacation home.

Choose Someplace Versatile

When buying a vacation home, it's all about getting the most out of your investment. Consider choosing a place that you can enjoy throughout the year. Your ideal vacation home will be a haven in the summer, a beauty in the fall, a refresher during the spring, and the perfect place to celebrate the winter holidays.

Think About Convenience

When you choose your vacation home, you will want to find a relaxing getaway that fits your lifestyle. If you love to have easy access to the grocery store and other amenities, don't buy in a remote location. If instead you'd prefer something secluded, opt for a home that is hidden far from civilization.

Consider Your Neighbors

Depending on where you choose to buy a vacation home, you're likely to be surrounded by others who love the area as much as you do. You need to decide if you want to have many others who are in close proximity or if you prefer having your space to yourself.

Find Out About Taxes

If you are opting for an extremely popular location, beware of high taxes. You want to go into your purchase with your eyes wide open. If you choose a home that is off the beaten path, you could have a more favorable tax rate.

Learn About Restrictions

You may have restrictions to deal with when you buy a vacation home. From a Home Owner's Association that stipulates regulations about the care of property to restrictions in paint schemes, you may not have complete freedom with your property.

Look For Excellent Deals

Whether it is due to the strained economy or someone who has to make a property move quickly, you could find a phenomenal deal. Don't rush into any sale until you've reviewed all of your options. Buying a home that is in a community neighboring a hot spot (instead of in the hot spot itself) could make for better prices as well.

A vacation home is a great real estate investment that can make vacation planning much easier. With these tips in hand, you'll be well equipped to find the perfect vacation home for your budget. If you're ready to start the search for your dream vacation home, contact a local real estate agent today.

Experiencing 'Purchase Anxiety'? How to Calm Your Nerves Before Committing to Buy a New Home

Whether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs.

It's perfectly normal to feel anxious about whether or not you've found the right property. Here are some things you can do to make yourself feel more secure with your decision.

Do The Math

You've probably already done this, but it's okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add everything up.

It sounds like a stressful activity, but when you look at the numbers and realize that buying a home is actually doable, it can be a liberating feeling.

When you know for sure you can make it as a homeowner without getting underwater, you will feel more confident.

Meet The Neighbors

If you haven't had the chance to knock on a couple of doors yet, you should spend some time saying hello to people in the neighborhood.

The more you can get to talking with families that are just like yours, the more you will be able to picture yourself as a member of the community. If you have kids, find out if there are other kids the same age nearby. That will help to ease their anxiety about moving as well.

Ask Your Agent

Don't feel like you are being overly cautious if you ask your real estate agent your lingering questions. Make sure you're getting a good price for the area, and make sure you know about any issues with the condition of the property. You should be able to trust that they're excited for your decision, not just for making the sale.

Familiarize Yourself With The Neighborhood

Take a drive and figure out which stores you're nearest to, the route you can take to get to work, and which other amenities you might take advantage of. Home buyers often underestimate how important living in a safe neighborhood with plenty of accessible businesses can be. The more you can imagine yourself living at your new address, the better you will feel.

Remember, never sign the papers on a new home unless you feel one hundred percent secure in your buying decision. If you need more answers, pick up the phone and call a real estate agent you can trust and who can walk you through every step of the process.

Real Estate Secrets: Understanding the 'Option Period' and What This Term Means for You as a Buyer

When the sale of real estate takes place, a certain amount of time might be allotted after a contract is created but before the transaction is finalized.  During this time the buyer may decide not to follow through with the deal set forth in the contract. This 'option period' allows buyers to have a property inspected and its value ascertained without the risk of losing the property to another buyer.

What Happens When The Option Period Takes Place

Typically, a buyer must pay an option fee in order to be able to enjoy the luxury of an option period. During the option period, property inspections are typically carried out on the property in question so that the buyer can be sure that the proposed offer is appropriate.

The nonrefundable option fee that the buyer pays the seller (so that the seller agrees not to follow through on a transaction with another prospective buyer) compensates the seller for the time during which the property is off of the market.

Differences Between Various States

It is not always possible for a buyer to have an option period during which he or she can finalize plans to make a purchase on a property. Regulations and procedures between different states vary significantly.

It is worth noting that the state of Texas has a real estate market that is particularly well known for granting option periods. In Texas, the option period usually lasts between seven and 14 days and serves as a period of time during which inspections are carried out; however, other states have different ways of dealing with option periods and scheduling inspections.

Associated Expenses

The particular laws applicable where a sale takes place will often dictate how much a buyer needs to pay to the seller in option fee charges. In the state of Texas, for example, the option fee is usually no greater than 1 percent of the sale price of the home. The option fee is normally applied to the transaction at escrow closing in the event that the buyer decides to proceed with the sale.

Buyers who decide not to purchase a property after the option period has already begun will usually be responsible for paying the option fee to compensate the buyer for lost time. However, the buyer will be under no further contractual obligations.

If you have questions on the processes and regulations involved in a real estate transaction, contact an experienced real estate agent to learn more.

Home Buying Tips: Three Items to Watch out for in a Purchase Agreement Contract

The purchase agreement is a vitally important document that outlines the provisions, terms and conditions for the transfer of property.

It should be read carefully and any ambiguities should be clarified prior to signing. It is a legally binding contract between the buyer and seller.

The purchase agreement may vary depending on the location. Most real estate agents use a form that has been approved by a state Realtors® Association.

The seller may have a different version that was drawn up by an attorney. It should not be assumed that they are all the same.

Typically, the purchase agreement will include an inspection period. This allows the buyer time to verify the conditions stated on the purchase agreement. Three of the most important stipulations in the contract are listed below.

All Owners Must Sign the Purchase Agreement

In most cases, the purchase agreement should be signed by the legal owner of the property.

If there is more than one owner, each owner should sign the agreement. In many states, both parties in a married couple have an interest in a property even if the title is held in one party's name alone. Therefore, the purchase agreement should be signed by both parties of a married couple.

In the event the property is being sold by a corporation, verify that the person signing the agreement is authorized to commit the corporation to the sale.

List All Fixtures to be Transferred with the Sale

The purchase agreement should list all items that are to convey with the property. "Fixtures" are considered items that are attached to the property.

Legally, they should be included with the sale, but more than a few buyers have been dismayed to find the property stripped of countertops, appliances and window coverings. Any fixtures and personal property that are part of the sale should be included in the purchase agreement.

Verify Zoning Ordinances

The purchase agreement may contain various stipulations. One should include the right to cancel the contract if zoning prohibits the use of the property as planned.

Zoning ordinances may restrict the use of buildings or land. This may prove to be an obstacle for someone who intended to include a workshop on the property. The buyer should be able to withdraw from the contract if they discover that zoning prohibits the intended use.

These agreements can be complicated, so be sure to check with a local real estate agent if you're unsure about how to proceed.

Five Absolute Truths About the Home Buying Process That You Will Need to Come to Terms With

Buying a home is one of the most exciting times that an individual will undertake in life. However, a property purchase is not without its challenges, and these can cause frustration. In this article we'll share five potential setbacks that home buyers will need to understand and come to terms with to make a successful purchase.

Homeowner's Insurance is Necessary

Most lenders will require insurance before financing is approved. To fulfill these requirements, the policy should be for at least one year and proof that the policy has been paid for must be presented. Purchasing the policy is something that must be done before closing can take place, so if you're sure that this is the home for you, don't delay.

Some Sellers Are Firm, No Matter What

In an ideal situation, the buyer and the seller come to a mutual agreement very easily. However, in most cases negotiation of some type is likely to be a part of the process. As with most negotiations, to reach success both sides will need to compromise.

Probate Properties Have Special Terms

When the original homeowner has died, there are certain considerations to keep in mind that do not typically apply to other types of property. One is the fact that there is a special process that must be completed before the property can be sold, even though the heirs may advertise the property as being for sale ahead of time. Another factor to keep in mind is that a recently probated property may have been uninhabited for some time and will be sold 'as is'.

Loan Offers May Not Be Set in Stone

A common pitfall for many buyers is the assumption that home financing will be approved without issue. Unexpected circumstances may arise that cause a mortgage loan to be denied, which can cause an unprepared buyer numerous issues. Many sellers, in anticipation of such problems, have a contingency requirement.

Expect Caution from Sellers

If a seller treats your offer with caution or trepidation, don't take it personally. Many homeowners have been burned during previous sales, and you have no idea what the seller has been through with potential buyers this time around. If someone is exercising caution, there's likely a good reason for it.

In closing, remember that the best way to purchase a home is through a real estate agent. When you're ready to jump into the property market, contact a trusted local agent and they'll be ready to assist.