Tag: home buying

Top 7 Questions To Ask When Choosing A Real Estate Agent

Posted on Glenn S. Phillips

Since the market collapse in 2008, home ownership may have seemed like a pipe dream for many Americans in today’s economic climate.

However, the signs indicate that the real estate industry is starting to bounce back following 6 years of depreciation and inability for many to obtain a mortgage. As such, the market is beginning to move from a seller dominated environment towards a more buyer dominated industry.

Buying a first home, or a vacation home, should not be treated lightly. Capital investment aside, it is a trying time viewing different properties and competing against other buyers. This is where choosing a fully qualified, experienced real estate agent can help.

With a wealth of knowledge in helping buyers find the house of their dreams, they are invaluable asset in the hunt for new properties. Note however, that not all real estate agents are equal. Some have their merits in different areas from others.

In order to separate the great from the good, below are a list of questions to consider when choosing a real estate agent:

1) What is Your Experience in the Neighborhood?
choosing a real estate agent for lake neighborhoodFirst and foremost, you want to establish your realtor’s experience within your neighborhood. This is key in order to establish your realtor’s knowledge of fair asking prices and the exclusivity of certain areas. If your agent is not experienced in your area, find out what regions they are experienced in and see how this compares with your own.

2) Full Time or Part Time?
This is an important point to establish. Ideally, you want to choose a real estate agent who has worked in the industry for a significant amount of time. This way you know they have a wealth of experience in buying new properties. There are many part-time realtors who juggle their full-time career with managing real estate. Not to discount there merits; there are like some very qualified part-time real estate agents out there.

However, you want to be sure that your property manager is committing themselves 100%. The last thing you want, whilst going through the stress that buying a property entails, is to call your agent and find out that they are unavailable due to other commitments.

3) Is Your Realtor’s License in Good Standing?
This is critical when hiring not only a real estate agent, but any outside contractor. An agent’s real estate license is the bread and butter of their job. Without it, they cannot present themselves as a fully qualified, professional realtor.

When faced with this question, a good real estate agent will jump at the chance to show you their certifications. If they act slightly skeptically, then you should be concerned.

4) How Many Buyers Do You Currently Represent?
Finding out how many buyers your potential realtor currently represents is a good gauge of their standing in the local area. As a rule of thumb, bigger client bases correlates with a better real estate agent. Word of mouth is a realtor’s best friend, and this is how most buyers discover their agent.

If an agent has a sizable client base then, this is likely through referrals. With this, you can be fairly confident that their promises are delivered.

 This is a double-edged sword however. A sizable client base can significantly reduce the one-to-one time you will have with your agent. New agents managing smaller portfolios will be able to offer far more interaction. If transparency is something you rate highly, then it may be worth considering a new client with a smaller pool of buyers.

5) Do You Offer a Guarantee?
You’ll understandably be wary about signing documents for your real estate agent without knowing the details of their guarantee. Do they offer an opt out period? If so, how do you go about it? Find out if there has been past clients who have chosen this option, and what the process entails.

6) What Is Your Main Selling Point Compared to Other Agents?
Any reputable realtor will jump at the chance to answer this. Typically, they will have a stock answer ready to list the main points which set them apart – and this is not a bad thing! You should be looking for an agent who is honest, has time for their clients and is a great negotiator. Be careful though, a shrewd negotiator may save you some money on the asking price however, they’re unlikely to budge on agent’s fees!

7) Can You Give Me a List of Referrals?
The best real estate agents will have an extensive list of past clients who are ready to vouch for their services. A good degree of transparency shows that their claims are always backed up and their services have been recommended by others. Ask for a list of clients in order to assess the agent’s suitability from a verified third party.

7 Major Waterfront Vacation Home Issues You MUST Consider

Posted on Glenn S. Phillips

Buying any type of property—from a small home to a large commercial development—is a complicated and time-consuming process. Emotions have to be carefully checked and buyers need to be highly focused in order to put a great deal together. If you are considering a waterfront vacation home, your job can be even more difficult. You will be faced with several more layers to navigate such as mortgage loans, potential weather problems, and insurance concerns. Here are seven vacation home issues you need to carefully consider:

Continue reading “7 Major Waterfront Vacation Home Issues You MUST Consider”

Top 10 Tips on Waterfront Home Buying

Posted on Glenn S. Phillips

Waterfront homes are unlike any other type of property. They carry a unique beauty and versatility since you’re getting land and water at the same time. However, they can also be more complicated to buy than land-locked real estate.

Here are the top 10 tips for how you can make your waterfront home buying experience more successful:

1. Inspect carefully and comprehensively.

Water might be easy on the eyes, but it’s hard on a building. Whether you have water intruding into the basement from the high water table, corrosion on your exterior because of salt air, or mildew and mold issues from higher moisture levels in the air, an expert inspection can help you understand what you might be up against. Surveys, elevation certificates, water quality tests, and other land and water-based inspections that you might not have done on a regular home can be very important with waterfront homes.

2. Choose the right water.

Waterfront homes aren’t all the same. If you want the smell of salt air, there’s no substitute for a beachfront home, but if you want to hear crashing surf, a home on a bay might not be the right place for you. Property on a large lake gives you the ability to sport about in a powerboat, but if you want peace and quiet, you might be better served by being on a smaller body of water that’s devoid of noisy powerboats and peering eyes.

3. Walk the property carefully.

Spending some time on the water helps you see if the property is as good as you think. For instance, you could have a beautiful view, but not have good access to the water. On the other hand, the lake that looks fantastic from the window could actually be choked with weeds and debris. When a home has an unattractive backyard, you can change the landscaping. With a waterfront home, you’re also buying the water, so getting it right is crucial.

4. Check insurance requirements.

Waterfront homes frequently have an increased risk of flood damage and some beachfront homes are also at risk of a hurricane or even earthquake damage. If insurance is available, it could be cost-prohibitive, so it’s best to know before you sign a contract.

5. Look for hidden costs.

Waterfront homes can sometimes carry additional expenses that buyers might not be aware of. For starters, water and sewer rates can be more expensive than inland rates. Boat dock and lift fees, as well as septic tank and well upkeep, are additional potentially hidden expenses to inquire about as well.

man holding calculator explaining the top 10 tips on waterfront property buying

6. Research the shoreline’s history (and future).

Water and dirt mix in interesting ways and, sometimes, the shore moves. If the water level goes up, you could end up losing your property. If the water line moves away, your waterfront home could end up being a quarter-mile walk from any water.

7. Look for a deal. 

For many people, owning a waterfront home is a dream come true. For others, not so much, which can create some extremely motivated sellers. If you can find a motivated seller and move quickly, you just might get a great deal in helping that owner get rid of his problem.

8. Consider supply & demand.

On the other hand, if there are too many homes on the market at prices that seem like they’re good deals, it could be a sign of a weak market. Either way, consider what’s most important to you in your buying decision before moving forward.

9. Devise a strategy for the property. 

If you’re going to live full-time in the property, searching for a lakefront primary home is one strategic buying approach that you can take. On the other hand, if your waterfront property is going to be a vacation home, you might want to look into whether or not you can rent it out when you aren’t using it. Doing this can help to lower your cost of ownership while also keeping the house from sitting empty for too long.

10. Work with an expert agent.

Waterfront homes aren’t simple. Between the title issues, the structural issues and the unique way that the market looks at the property, many real estate agents can’t effectively help you through the purchasing process. A real estate agent that specializes in waterfront homes and land will know which questions to ask, who to involve in the transaction, and how to help you achieve your dream of homeownership on the water.

For more tips on buying or selling a waterfront property, read here. 

10 Top Investment Tips for Buying A Vacation Home

Posted on Glenn S. Phillips
Investment Lake Home

If you’ve decided you’d like to buy an investment property and are focusing on vacation homes, take careful consideration before you make the final commitment.  Buying a home, no matter what the circumstances might be, is a significant investment and enormous responsibility.

While real estate has undoubtedly been a safe investment medium in the past, buying a vacation home as an investment is not necessarily a sound option for everyone.

However, if your heart is set on making a vacation home investment, these tips can help you avoid some of the downsides associated with second home ownership.

1. Run the numbers early. Use an online mortgage calculator to learn how much you can qualify for before you get too deep into the search for your vacation home.

Most home sellers are more willing to negotiate with a pre-qualified buyer than a buyer without proof of ability to pay.

Knowing how much money is in your investment property budget will also help narrow your home options, saving everyone time.

2. Use a local Realtor. A local real estate agent who lives, works, and plays in a particular market will know much more about the location than you’ll be able to learn. Even if you spend weeks studying the area.

They may also know about plans for road improvement, new developments, and zoning changes. These could impact the home you’re considering.

3. Don’t view the home as strictly an investment. The last few years have demonstrated that investing in residential real estate doesn’t necessarily provide a guaranteed payoff. Especially if you plan to sell the home after a few years.

Even though most vacation homes are in attractive locations, keep in mind that some vacation hot spots have two distinct populations.

The second home buying market has deeper pockets than many of the full-time residents who work in service or support capacities, limiting potential home buyers.

4. Inflate the cost of ownership. Develop a budget for the home and include all your conceivable expenses. When creating this budget, keep in mind that climate and geography impact the cost of ownership. Homes near the ocean tend to experience more corrosion on metal and wood from the salty air. Unlike mountains, which have higher incidences of roof and deck damage from heavy snow loads or severe thunderstorms. Also consider the likelihood of rising property taxes, utility costs and appliance replacement.

Lastly, don’t forget to account for your travel expenses going to and from the property. Include one or two unscheduled trips in the event of emergencies that can’t be handled remotely.

5. Joint investments. Buying a home with a group of people will split the cost of ownership. Often, this makes the investment property more affordable. Be certain that you hire legal counsel to make sure that each owner’s rights to the property, and the equity in the property, are amenable to everyone and the agreement is documented legally.

6. Use caution with foreign investments. If you want to purchase a home in a foreign country, have a lawyer help you through the process. As a foreigner, you may not enjoy the same property protections that citizens do.

7. Research the weather year-round. If you want to use the vacation home throughout the year, choose one that’s in a climate you can handle. Blistering heat, high humidity, or frigid temperatures may limit your enjoyment to just a few seasons a year.

8. Assess the year-round habitability of the home. What starts out as a vacation home could become a rental down the road.

If the home you’re considering lacks some of the amenities that many consider necessities, like a dishwasher or washer and dryer, you may run into objections from likely renters wanting these, and other, features that make full-time living more enjoyable.

9. Consider properties with homeowners’ associations carefully. While the homeowners association could offer the services you want and need, like landscaping or building maintenance, realize that over time, the HOA fees for doing so are much more likely to rise than fall.

Some associations have strict rules about what you do with the outside of your home and visible window treatments from the street. Make sure that the association’s rules fall in line with what you can live with and expect. If they’re too restrictive or not restrictive enough, you may want to reconsider the vacation home.

10. Avoid land purchases in locations prone to strict zoning and building requirements. Instead of building the home of your dreams, you may end up starting construction on a home that never gets built. Strict zoning and building requirements can result in delays and high architectural and engineering costs if the local planning department’s demands are excessive.