Will's Blog

Condo and Townhouse are architectural terms. Condos are like apartment buildings--they can have attached neighbors above, below, and at either side. Townhomes are like row houses. They ONLY have attached neighbors on the sides.
Condos and PUD (planned unit development) are both ownership terms. With condos, you own %100 from the unpainted walls of your unit in. You own in common the walls of the building, the land, and any other improvements like pools, laundry rooms, parking areas, etc. If there are 100 units in the building then you own 1/100 of the entire common area of the complex. 
A PUD is a development in which you own your home and the land it is on. You own in common with the other owners any common space, such as the roads, common landscaping, pools, and so forth that may be part of the development. A PUD can be a single family home OR a townhome. 

It works for yachts, why not houses? My husband sold yachts in Marina Del Ray in the 80s and they had a saying, "If you can find 80% of what you want in a yacht, you'd better buy it, or else you'll be building it from the hull up."

When Buyers have seen some homes and are considering which ones to see again or make an offer on, we remind them of this rule. It really helps put things in perspective and takes the pressure off the buyer's minds when they realize that 100% of everything they want just isn't out there, and it's no reflection on them or their Realtor. It helps them from being fixated on certain 'wants 'that may not be available. If you wanted a ranch but you found a home in the perfect community that is a two-story with the master down, you're on your way to making an 80/20 decision. If you wanted a large lanai but the best home at the best price has a small one with the ability to enlarge the screened area, let's write an offer.

 

Even when you build from the ground up (unless money is no object) you will still be compromising. You may want a custom home but opt for a high end production builder instead. Choosing a smaller lot rather than your dream lot will let you build a larger floor plan. Or, you may decide that you can live in a smaller home with more amenities. If you can enlarge your search area, then you can get that great house in a lovely community for the price you can afford.

So if your favorite house has 8 of the 10 things you want most, don't let it pass you by - unless you just won the lottery and want to build on that great riverfront lot you've seen.

 

 

Original Photography, All Rights Reserved *Buyer Tip - the 80/20 Rule When Buying A Home*

 

 

 

 

 

Buying or selling a home is a euphoric experience for both of the parties involved. This euphoria can cool when you learn which party is responsible for the closing costs.

Who Is Responsible For Closing Costs

When looking to buy or sell a home, every person eventually arrives at the question of funding closing costs on the transaction. To put it simply, both buyers and sellers typically are responsible for some of the closing costs. However, the exact amounts paid can vary significantly from area to area and depending on what agreements the buyers and sellers come to in the offer-counteroffer process.

It is important to research the area you are looking to buy or sell in and be knowledgeable regarding any laws and standards of practice for the area. Yes, the requirements are different in each state and often each city. Know what you will have to pay ahead of time so you can be prepared to cover these costs. Here are some examples of what buyers and sellers generally have to cover.

Buyers typically pay the following: fees charged for obtaining a mortgage; inspection fees; homeowner's insurance (must be prepaid for one year at closing); transfer taxes if there are any (although the seller may pay these or they may be shared 50-50 between buyer and seller); title insurance and escrow fees (varies depending on the location); and attorney's fees (if and where attorneys are involved in the transaction). If you are confused, a mortgage broker can tell you which fees are customarily paid for by the buyer in your area and how much they will cost. When buying a home, the use of mortgage brokers is highly recommended to both get a great deal on a mortgage and help with the transaction itself. The broker only gets paid if the deal goes through, so you know they will make every effort.

Sellers' closing expense responsibilities typically include: loan payoff fees; the real estate commission (in some cases, a portion of this may be paid by the buyer); title insurance (depending on the location); termite repairs (this is negotiable in some areas); cash payments in lieu of repairs to the property; all or part of transfer taxes and escrow fees, if there are any; attorney's fees where applicable; and other fees set by local custom or negotiated during the transaction.

Knowing and researching the area you are buying or selling in is critical to understanding who is responsible for closing costs. Educate yourself and you will avoid overpaying.

Interested in buying, selling or renting a home, condo, or townhouse, visit me at: http://www.OnePlaceOpenHouse.com  

Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Only you can truly answer that question.  As you look at the prospect of a home payment it may seem quite daunting but here are a few things to consider.

Home prices historically have risen about 6% a year.  Meaning the home you are purchasing may be one of the best investments you make and as your investment grows you are able to enjoy the comforts of your home as well.

 The primary vehicle to retirement security for many has been their home.  The US savings rate has steadily declined from almost 10% in the 1960s to zero in this decade.  The counter force to this for many has been the appreciation of their home.  Home equity has been the saving grace for many a retiree.

One of the final things to consider is this.  Your house payment will be fixed.  Your rent is not.  Each year your payment will seem smaller and smaller.  As time goes by your salary will go up.  Prices of most things you buy will go up but if you have a fixed rate loan your payment will be the same.  So in a way you are locking in the price you pay for a place to live for 30 years.  After that of course you will be paying nothing.  Imagine now two peope who had a choice to buy a house or rent 30 years ago.  The price to rent or the payment to buy would be about the same.  It would have been about $200.00 for the average house.  Flash forward 30 years to 2008.  The guy who chose to rent would now be paying about $800.00 with an infinite number of ever increasing rent payments to go. The guy who bought a house would now be making his last payment of $200.00.  Which guy do you want to be?

Buying a home can be a long, complicated and frightening process, and it is important to be prepared. Knowledge is power when it comes to negotiating the difficult world of home prices, interest rates and mortgage loans. For a first time home buyer, there are many factors to consider before you buy. The more information you can gather before you start shopping, the better off you will be.

Look Beyond the Price

 

When it comes to securing a quality mortgage loan, it is important to look beyond the interest rate to the true cost of the loan, both now and in the future. Read the paperwork, including the fine print, carefully, especially if the interest rate is below market rates. Upon closer inspection you may find that the interest rate is guaranteed for only a short period of time, or that it is subject to rise sharply in the future. Your mortgage loan may be the most important contract you will ever sign, and it is essential that you understand your rights and your responsibilities before signing on the dotted line.

In many cases it will make sense to hire a lawyer to review the mortgage paperwork for you. Many communities provide some sort of first time homebuyer program designed to help renters become homeowners, and these organizations may be able to provide the legal advice you need at a price you can afford.

Every Situation is Unique

 

Every homebuyer will have a different set of circumstances, and it is important for the lender to consider those factors. Some homeowners may plan to move in a year or two, and they may be able to benefit from a variable rate mortgage. Others will plan to remain in their home for decades, and those home buyers may benefit from the stability of a fixed rate mortgage and its predictable and stable monthly payment.

It is also important for those buying a first home to factor in the additional costs of the mortgage when deciding how much they can afford to pay. Things like closing costs and the high price of private mortgage insurance can drive up costs and eat into funds that would otherwise be available for home improvements, furnishings and other essentials. In some cases sellers may be willing to pay some of the closing costs, and some lenders will be able to negotiate those closing costs downward. The key is to ask those questions before the closing date arrives, and to be prepared to search for a better deal if necessary.

First time buyers should also be on the lookout for any hidden fees. These small nuisance fees can add up to hundreds of dollars on closing day, so be sure to scour your paperwork for any such fees. If you are unsure about the legitimacy of any charge be sure to ask for a valid explanation. Again, an experienced real estate attorney can provide valuable insight into which fees are reasonable and which are out of bounds.

And of course first time home buyers should not lose sight of the home itself in the quest for the perfect mortgage. Any defects should be pointed out to the seller well before the closing is to take place. The costs of every needed repair should be carefully negotiated prior to the purchase, and buyers should always follow up to make sure that all requested repairs have been made. A home is a major purchase, and it is important to make sure that everything has been taken care of before moving in.

New Orleans Condos, The mortgage interest deduction on your taxes is a very big deal!

    The interest rate deduction on your taxes is a big deal when considering your total cost of ownership.  The interest you paid as well as property taxes are deductible on your federal and state income taxes.  Let's look at an example of someone in the 25% bracket for federal taxes and 3% for state taxes.  Most people hate giving the government more of your hard earned money.  Renters miss out on this gift and its a very big gift.  The gift gets larger as your tax rates gets steeper.

      With a $200,000 mortgage your interest and principal is $1076.  The interest for the year one in your loan is $9921.  If your combined tax rate is 28% you will realize a tax benefit of $2778.  If you break this savings down on a per month basis or $232 per month which is savings to you.  Your out of pocket cost is lowered by this amount.  This is something that a renter does not get.  The taxes are also deductible.  If you are a renter the landlord works this into your rent so you are paying for his taxes but get no tax benefit.  The higher the rate the more you will save.

   The other benefit that often forgotten is that during the first year you have increased your equity by $2963 and paid down the principal by that amount.  When you sell you will realize your equity tax free plus any gain if you live in your condo for two years. 

     You can also look for a $7500 tax break as well if you are a buyer for the first time in the last 3 years.  All this is great but people do enjoy having their own place with a chance to improve your property with sweat equity.  Think what your out of pocket expenses are when thinking about purchasing your place.

       Other recent articles Rent versus Buy,  New Orleans Interest Rates fall off Cliff, Its a New Orleans Buyer's Market.