Navy Fellas Realty Group

Real Estate, Residential sales and purchase

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

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

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

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

Looking For A Major Lifestyle Change? Consider Buying A ‘Micro’ Home

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Looking For A Major Lifestyle Change Consider Buying A 'Micro' HomeWith the sometimes high cost of buying and maintaining a home and the concept of being sustainable becoming more popular, many people are considering moving to a smaller home to minimize their impact. It’s important, however, to consider what living small is really like before deciding that it’s the right move for you.

If you’re curious about life on a smaller scale, here are some things to contemplate beforehand.

Getting Rid Of The Excess

It’s just a fact that a smaller amount of space means a smaller amount of stuff, but many people don’t realize this works two ways. While you won’t be able to accumulate the same amount of stuff in a smaller home, you also won’t have the luxury of being able to take everything from a larger house with you. It may not be a big deal for you to pack things away or discard the old, but if you’re the type of person who likes stuff, you may want to re-consider micro.

Will You Miss The Space?

Many homeowners spend a lot of time outdoors or even traveling for work, so the size of their home may not matter that much. However, if you’re the kind of homeowner who loves to nest and have their space, the idea of lounging around a small home may not be for you. A micro-sized space can minimize costs and be easier to decorate, but if you like being able to spread out and luxuriate in a variety of surroundings, something undersized can be quite limiting.

Forget The Home Maintenance

Whether you live on a massive estate or in a studio apartment, there are minor things that need to be done to keep your space clean and clutter free. When it comes to smaller living though, there will be a lot less to do, and this can greatly impact your free time. It’s great if you’re the kind of person who has plenty of hobbies to keep them busy, but if you like taking care of the yard and doing an assortment of home maintenance duties, it may be a struggle to own a property that needs less tending.

It’s never been more popular to go ‘micro’ when it comes to home ownership, but it’s important to make sure small living is right for you before taking the leap. If you are currently in the market for a ‘micro’ home or any other type of property, be sure to contact your trusted real estate professional. 

New Home Buyer? Don’t Make These 3 Common Mistakes!

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New Home Buyer? Don't Make These 3 Common Mistakes!Looking for your new home can feel like a daunting task, especially if it’s your first time going through the home buying process.  Sometimes, all of the choices may feel overwhelming. You want to make the best decision for yourself and your family. 

Here’s a quick list of three common pitfalls that some home buyers experience:

Choosing to Skip the Inspection

A home inspection is a necessity. This is your opportunity for a professional to uncover any potential problems in a property that you cannot see. Or even something that you might not have known to check. Your new home is likely the largest financial investment in your life, so think about your home inspection as a type of safety net to prevent you from getting repair surprises right after you move into your dream home.

Not Planning Ahead For Life Changes

Life happens in ways that cannot always be planned ahead. Sometimes home buyers get excited about looking for a perfect home that will fit their immediate needs. Alternatively, if you take the approach of looking ahead and seeing how your new home might also meet future potential changes, you can save the time, trouble and expense of moving again. 

For instance, if you are a young couple buying your first home, you might not think you want more space than you can use right away.  In the event that you are thinking about starting a family in the next few years, it can be a cost effective decision to purchase a home with extra space to accomodate your future growing family now.

Trying To Avoid Using A Real Estate Professional

A common misconception among home buyers is the idea that they can save money on the purchase of a home if they can skip utilizing a buyer’s agent in the purchase of their property.  While that may seem like it makes sense, the reality is that the buyer’s representative in a real estate transaction is paid by the person selling the home. 

Not only that, but if you were trying to negotiate a transaction directly with a seller, you might overlook very important opportunities to create a stronger offer. Your seasoned real estate agent can point that out and help you maximize your purchase power.

A buyer’s agent also has access to real-time market information through their local Multiple Listing Service (MLS) which can uncover homes that may fit your needs better than anything you can find on your own. Even with all of the property search services that have been developed over the last few years, the active, professional real estate agent still has their thumb on the pulse of your local market.

Buying a home is a big decision and finding your dream home might take some time. If you avoid these common pitfalls and utilize a trusted real estate professional to help you find the perfect property, moving into your dream home could happen sooner – and easier – than you think!

 

 

Questions to Ask When Buying New Construction

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Questions to Ask When Buying New ConstructionBuying a new home is exciting. Buying a brand new home can be even more so with the realization of being the first owner and possibly being able to choose your own layout and finishes. The prospect of owning new construction is definitely exciting, but it doesn’t come without its own set of questions.

If you’re in the market for a new home, and considering new construction, make note of the questions below when you begin your property search.

What Are The Long Term Plans For The Community?

Unless you’re looking at custom homes on acreage, it’s likely new construction in your area will be located in a new development or in a master planned community. With this in mind, feel free to ask about the plans for the community.

If it’s a large area, find out if any subdivisions are planned. If there are only a few houses built so far, it’s likely to mean lots of construction in the months to come – which means a lot of noise and construction traffic.

Also ask about the builder – if they’re well known and respected, it’s unlikely they’ll lose funding and the community will likely continue on as planned.

What Are The Homeowners Association’s Rules And Regulations?

Many new developments and master planned communities come with a set of rules and regulations set by a homeowners association. If you’ve never lived in a community with an HOA, it’s important to find out the rules before investing in it.

The bylaws and the CC&Rs will let you know what is and isn’t allowed in the community (especially when it comes to the exterior of your home). You’ll also want to find out when the HOA fee begins – in some communities, it can start before the home is even finished.

Are There Any Buyer Or Financial Incentives?

If the community or development is still in the early stages, there might be incentives (like a buyer discount, builder upgrades or other financial incentives or freebies) for buyers.

Sometimes these offers come with a catch – where something is expected from the buyer in return for the incentive – but it’s important to ask about any offers that may be available, especially if the community is still up and coming.

Are Warranties Provided?

New homes often come with different warranties. Ask if a workmanship and structural warranty come with the home.

A workmanship warranty (or builder’s warranty) is a warranty for newly constructed homes that offer limited coverage on workmanship and components of the home like windows, siding, roofs, doors, plumbing, electrical and HVAC. Traditionally, a workmanship warranty will cover a one or two year period; another likely warranty is a structural warranty, which covers the structure of a home.

If a warranty is provided, make sure you know exactly what is and isn’t covered and how much you’re responsible for in case of any issues.

Can you connect me with some current homeowners?

Just as you would check reviews before buying an item online or booking a service, the same can be said for a home builder. Just because the product is a shiny new home doesn’t mean you shouldn’t do your due diligence and check references before making a large investment.

While it’s likely that the builder will provide glowing reviews, checking reference and review websites and even knocking on the doors of current homeowners will provide additional information and give you a wider understanding of the builder and its practices. Talking to current homeowners will provide information about the actual community.

New construction is exciting, but you want to make sure you have all pertinent information before you go through with a home purchase. Your real estate agent will be able to help navigate the waters of new construction. Reach out to your agent with any questions you may have about buying new construction in your area.

What To Know When Looking At Active Adult Communities

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What To Know When Looking At Active Adult CommunitiesFor many Americans, retirement age is fast approaching or already here: Baby Boomers account for nearly 75 million individuals in the United States.

Retirement can present a lot of opportunities, especially when it comes to relaxation, activities, and the enjoyment of life with those of a similar age. More and more Americans are looking to 55+ communities to fulfill those wants and needs.

Active Adult Communities

55+ communities, also known as an active adult or age-restricted communities, are becoming increasingly popular throughout the U.S. because of what they offer and can provide. Traditionally thought to be only in warmer climates, active adult communities can be found in almost every state, and with more people retiring, new communities are being added every year.

Just like buying in a regular neighborhood or a master-planned community, there are a number of things to know or understand when it comes to investing in an active adult community and lifestyle. If you’re considering selling your current home and relocating to a 55+ community, here are some important things to consider before the big move.

Location

Location is an important consideration. Active adult communities can be found all throughout the U.S. While Florida and Arizona are known for their 55+ communities, it’s very likely there’s a community close to where you currently live.

Location is more than just where the community is located – location includes the proximity to towns or cities. Some may want a community that is cut off from large cities; others may want to be close to large metropolitan areas for what they can offer.

Location also includes things like local taxes – some states are much friendlier to retirees than others when it comes to taxes.

It’s also important to note the community’s location relative to an international airport if you plan on traveling a lot, medical centers, and other amenities that may be frequented daily or weekly.

Size

The size of the community is an important part of the community experience for residents. Communities will range in size, from just a couple hundred residents to thousands. The larger the community, the more residents.

Larger communities may offer more activities and amenities while smaller ones may be able to offer more comfort and relaxation with the reduced number of residents. If you’re interested in maintaining an active lifestyle and making friends, a larger community may be a better choice than a smaller one.

It’s also important to note that a larger community may offer more deals or incentives to those looking to buy within the community.

Amenities

Amenities are incredibly important when considering buying a home in an active adult community. A larger community will likely have a number of amenities and events while a smaller community may be limited in terms of what it can provide to homeowners. 

When looking at communities, ask about the amenities provided within the community: is there a golf course, tennis courts, clubhouse, rec center, or arts and crafts studio?

Are there any clubs, group activities, or social events?

Does the community provide ample amenities to maintain an active lifestyle?

It is important to ask whether a membership is required to partake in any activities (especially with things like golf, tennis or the use of a clubhouse or rec center). If so, a membership structure within the community may add extra costs to the community.

HOA

Homeowners Associations have become increasingly popular within planned communities, and 55+ communities are no different. An HOA may have additional say on things within the community than in a regular neighborhood.

While maintaining the general areas, an HOA in an active adult community may also dictate whether a homeowner can grill outside, park a car on the street rather than in a garage, and some may go as far as to dictate the time of day a homeowner can have a conversation on a patio or deck.

While an HOA helps maintain the look and feel of a community as a whole, an overbearing HOA or homeowners board can possibly make living in a retirement community not very enjoyable for some individuals.

Living In Place

Another option to consider is whether the community offers a “living in place” option. This is still a relatively new concept but it is becoming more and more popular.

Living in place options offer homeowners the ability to buy a home in a community when they’re still active and able to live without accommodations. Then, should one’s health change or it becomes more difficult to live independently, the homeowners are able to move to a fully furnished apartment or condo within the community where cleaning, cooking and other services are provided.

These options allow homeowners to stay in one community through each phase of their retirement. More expensive than traditional active adult communities, they are a viable option for those planning for the long run.

Retirement is an exciting time. Finding a community that supports retirees and provides a place for relaxation is important for many people. If you’re looking at active adult communities, reach out to your trusted real estate agent to get more information about local communities in your area.

A 55+ community can be a great choice for those looking to enjoy retirement with other retirees. Happy hunting!

When Is the Right Time to Buy Your First Home? Use This Easy 4 Point Checklist

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When Is the Right Time to Buy Your First Home? Use This Easy 4 Point ChecklistAre you growing tired of renting? Or perhaps you’ve recently graduated from college and are looking to set down some roots?

Whatever the case, buying your first home is an exciting prospect. Let’s take a look at a quick and easy four-point checklist that you can use to determine if you are ready to buy your first home.

#1: Is Your Credit In Good Shape?

How is your overall financial health? Once you have your down payment saved up, you should turn your attention to your credit rating.

If you are going to borrow a mortgage to help cover the cost of your home, your lender will be doing some digging into your credit history. It is best to ensure that you aren’t late with any payments and have cleared off any black marks from past credit problems.

#2: Can You See Yourself Living In This Community?

Do you love the area you live in? Or are you thinking about moving to a community that you like a bit more than your current one?

Perhaps it’s the local shops, the amenities, the walking trails or just being closer to work. It is always best to ‘love where you live,’ so ensure that you are buying your first home in a community that you can call home.

#3: Is Your Job Situation Stable?

Another factor to consider is your job or career situation. Are you likely to switch companies or be transferred to another division within the next few years? Be sure to give some thought to this as it will be inconvenient to have to move shortly after buying and furnishing a home.

#4: Are You Planning To Have Children?

Finally, have you considered what your family might look like in the future? Are you planning to get married, or if you are already married are you planning to have a family? If you have children now, do you expect to have any more of them?

Keep in mind that as your children grow older, they will need a bit more space. If you have a couple of young kids sharing bunk beds, each will need their own bedroom soon enough.

When you’re ready to buy your first home, our friendly real estate team is here to help you find the perfect home. Give our offices a call and we will be happy to meet with you to discuss your needs.

When Is the Right Time to Buy Your First Home? Use This Easy 4 Point Checklist

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When Is the Right Time to Buy Your First Home? Use This Easy 4 Point ChecklistAre you growing tired of renting? Or perhaps you’ve recently graduated from college and are looking to set down some roots? Whatever the case, buying your first home is an exciting prospect. Let’s take a look at a quick and easy four-point checklist that you can use to determine if you are ready to buy your first home.

#1: Is Your Credit In Good Shape?

How is your overall financial health? Once you have your down payment saved up, you should turn your attention to your credit rating. If you are going to borrow a mortgage to help cover the cost of your home, your lender will be doing some digging into your credit history. It is best to ensure that you aren’t late with any payments and have cleared off any black marks from past credit problems.

#2: Can You See Yourself Living In This Community?

Do you love the area you live in? Or are you thinking about moving to a community that you like a bit more than your current one? Perhaps it’s the local shops, the amenities, the walking trails or just being closer to work. It is always best to ‘love where you live,’ so ensure that you are buying your first home in a community that you can call home.

#3: Is Your Job Situation Stable?

Another factor to consider is your job or career situation. Are you likely to switch companies or be transferred to another division within the next few years? Be sure to give some thought to this as it will be inconvenient to have to move shortly after buying and furnishing a home.

#4: Are You Planning To Have Children?

Finally, have you considered what your family might look like in the future? Are you planning to get married, or if you are already married are you planning to have a family? If you have children now, do you expect to have any more of them? Keep in mind that as your children grow older, they will need a bit more space. If you have a couple of young kids sharing bunk beds, each will need their own bedroom soon enough.

When you’re ready to buy your first home, our friendly real estate team is here to help. Give our offices a call and we will be happy to meet with you to discuss your needs and share a variety of beautiful homes that are available today.

Down Payments 101: Is It Worth It to Put More Than 20 Percent Down?

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Down Payments 101: Is It Worth It to Put More Than 20 Percent Down?Are you thinking of buying a new home this spring or summer? If so, you’re not alone. Many thousands of individuals and families alike will become homeowners this year. Whether you’re a first-time buyer or a seasoned veteran of the housing market, you probably know there are significant choices to make. One of the big decisions you will have to ponder is how much you want to invest in your down payment.

With that in mind, let’s try to answer the question of whether or not it is worth it to put more than 20 percent of the home’s price in your down payment.

Ask Yourself: How Liquid Are You?

Before you can decide how much to put down, you first need to determine how liquid your finances are. That is, how much cash do you have access to? For example, if you are considering a $300,000 home, a 20 percent down payment is $60,000. If you have more than $60,000, fantastic. However, if you have less than that, you might have to do a bit of work to save up the remainder.

Even if you do have enough available cash now, you won’t have access to it once you take possession of the home. It is important to leave yourself with some cash in case of emergencies or for other uses.

Higher Down Payment, Lower Interest Rate

If you do choose to invest more than 20 percent in your down payment, it’s possible that you will gain access to a lower interest rate for your mortgage. Many lenders look favorably on homebuyers that are investing more of their own money and borrowing less. Be sure to check with your mortgage advisor to find out if you qualify for lower rates.

Lower Monthly Payments Await

Finally, choosing a down payment higher than 20 percent means that you will have lower monthly mortgage payments in the future. You are borrowing less so you will owe less. This can provide a nice boost to your monthly budget moving forward as you will have more free cash flow each month.

Try to keep in mind that there is no perfect answer to the question of how big your down payment should be. Choosing the best course of action means taking a good, long look at your current financial situation and deciding what your goals are. When you’re ready to discuss buying a new home contact us. Our professional real estate team is happy to share our experience!

Curious About Homeowners’ Association (HOA) Fees? Here’s What You Need to Know

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Curious About Homeowners' Association (HOA) Fees? Here's What You Need to KnowIf you are thinking of buying a condominium or a home that is part of a planned community, you have likely come across the term “homeowners’ association” or HOA. In short, the HOA is a coalition of local homeowners who have banded together to manage the needs of the local community. Let’s explore the concept of the homeowners’ association, why they charge fees and what you can expect from your HOA if you buy a home that is part of one.

HOA Fees Are Meant To Make Things Easier

HOA fees are meant to make your life easier. Common sense dictates that all homeowners won’t be able to commit to investing some of their time in community upkeep. So the HOA charges a monthly fee to everyone to cover the costs of keeping everything in order. Of course, some HOAs can make mistakes or foolish investments that don’t benefit all equally. But most are well-intended and do positive work.

What Do HOA Fees Cover?

Your HOA fees will be used to pay for needs that benefit all homeowners’ in the community. If you live in a building, this will be everything from elevator maintenance to keeping the doors in good order. If you live in a townhouse complex or planned community, this includes landscaping, gardening, road maintenance and more. As long as your HOA leaders are doing their job, they will use fees to maintain and improve the community for everyone.

Some Pros And Cons Of HOA Fees

The main benefit of paying HOA fees is that you are offloading your share of the responsibility for building or community upkeep. In essence, you are trading a monthly payment so that you don’t have to vacuum the common areas, change the light bulbs or worry about repairing the gate when it breaks. The main downside to paying HOA fees is that you only have a single vote as to how they are spent and you may disagree with other homeowners about the HOA’s priorities.

All things considered, whether or not you have a favorable view of your HOA generally comes down to you. If you are the type that likes to share their opinion and is willing to commit the time to improve your local community, you may want to join your HOA. However, if you are less interested in having someone spend your money, you might disagree with their approach. Whatever the case, when you are ready to buy or sell your next home, contact our professional real estate team. We’re happy to help you find the right home – HOA or not.