Buy Your Dream Home!!!
When Planning to Purchase Your Next Home, Let Us HelpERA Resource CenterFirst Time Home Buyers At ERA we believe that Real Estate is not about property, it's about People.
And to that point we have worked with ERA experts to create information that
can help you. Regardless of being a buyer or seller, ERA tips will help you. ERA Answers At ERA Real Estate, we don't think of a house as just a piece of property.
We see it as your home, the center of your family's life, the very special
place where your children grow up, where you welcome your neighbors and
friends, where your dreams come to life. We understand what a sensitive, emotionally charged process the buying or
selling of a home can be. We know that it involves one of the biggest
commitments a family can make. That is why ERA® professionals are totally
committed to providing whatever it takes to help you through the process, to
keep you well informed, and to make sure you have the right answers to the many
questions that inevitably arise during any real
estate transaction. ERA Answers is part of that ERA® commitment to you. Here we share many of the most important things we've learned over the years
while helping hundreds of thousands of families like yours. ERA Answers is
based on 90 of the questions we hear most frequently — questions that come from
people just like you, with concerns and needs much like yours. It offers you
straight answers with inside tips and explanations to help you feel more
comfortable and confident about your home buying and selling decisions. If you're ready to buy or sell, you will, of course, want professional help
— and we hope you will think of ERA Real Estate. You will find that our
specialists are totally committed to your needs. If you need a quick answer to
a specific question, or more general advice about buying or selling or contact
us on ERA.com. We'll put you in touch with the ERA real estate
professional nearest you, who in turn will make sure you receive the
information you need, without any obligation. Writing the Next Chapter: Tips for Buyers and Sellers Are you contemplating a move to your next home, the place where you'll write
the next chapter in the story of you life? Whether you're headed to the first
home of your own, new construction or historic fixer-upper, a detached home or
a town home, condo or coop, a farm house in the country, a loft in the heart of
a city or any one of dozens of other options, it can be an exciting and
emotional time. Here are a few tips to help make the transition a bit less stressful. Tips for Everyone: Establish Good Rapport with a Real Estate Professional –
Buying or selling your home can be a stressful time; establishing a comfort
level with a real estate professional you trust will go a long way toward
making the transition to the next chapter in your life a smoother and even
pleasant one. Make sure you choose a Realtor® who takes the time to listen to your needs
and answer your questions. Don't agree to be represented by a Realtor® unless
you're comfortable that they'll work hard for you and be there when you need
them. Don't Hesitate to Talk Technology – While you're speaking with
a prospective agent, be sure to ask where the use of technology figures in to
the marketing and sale of your home. Even though a solid majority of homebuyers
use the services of a licensed real estate professional, about 80 percent begin
their search on the Internet. Today's real estate market is truly global. Choose a Realtor® and a real
estate brand backed by a strong Web presence and a global reach; you simply
can't predict whether your buyer will come from around the corner or a far
corner of the globe. Tips for Sellers: Price your Home to the Market – If you insist that you must
list your home at a predetermined price regardless of current conditions in
your local market, you're setting the stage for a major disappointment. Real
estate values are determined by the marketplace. Work with a real estate
professional who serves your area, knows the current state of your market, and
will research comparable sales to help you arrive at a realistic listing price.
Curb Appeal is Crucial – It's true that first impressions are
lasting ones, and creating a great first impression is probably the single most
cost effective technique for showing your home to best advantage. Your Realtor®
will advise you; a thorough cleaning and a fresh coat of paint may be all you
need. Here are a few more no or low cost techniques that help boost curb appeal:
Keep it Clean – You never know when your buyer is going to
walk through your front door; keeping your home clean, clutter free and odor
free are the easiest, cheapest and most effective things you can do to help
sell your home in the shortest possible time at an attractive price. Consider Staging – Actually, improving the curb appeal of your
home is perhaps the first known example of what has come to be known as home
"staging;" a powerful approach to removing the visual clutter from
your home and making it visually appealing to the greatest number of potential
buyers, using techniques that builders have applied to model homes for years. Staging your home doesn't have to be expensive to be effective; some basic
knowledge of simple staging techniques and the ability to look at your home
from a fresh perspective are usually what is needed. ERA Gold Star Property is
a preferred property program designed to help you meet the fundamental
challenge of standing out from the competition. The Internet, your local
library or book store, and your Realtor® are also great home staging resources.
Tips for Buyers: Put Your Finances in Order – It's always good advice, but
making sure your finances are in order before you begin looking for a home is
crucial. Here are three ways to help make it happen:
Get pre-approval for your mortgage loan; It's easy to get pre-approval from
your lender, and it costs you nothing but a little of your time. Don't
underestimate the importance of this tip. Sure, you think it's a "buyers
market" – at least until a seller is considering multiple offers on your
dream home. Choose an Attorney – If you're moving out of your area and
don't have an attorney to represent you, it makes sense to secure the services
of an attorney before you've found your next home; your Realtor can refer you
to experienced attorneys in the area. List Your "Must Haves" and "Have Nots" –
List the features you must have in your next home and the "must have"
amenities in the surrounding area, as well as the things you'd like to avoid (a
multi-story home, or a home of a particular architectural style, for example). Put the Internet to Work for You – About 80 percent of home
searches begin on the Internet. The Web sites of leading real estate brands
(ERA.com, for example!) are a great place to begin your search. Look for:
Go Out There and Kick the Tires – Once you've settled on your
next neighborhood, contact a real estate professional and look at properties
that meet all or most of your "must haves". In addition, take as much time as you can to explore the neighborhood on
your own. Dine at an area restaurant, pick up a copy of the local paper and
talk to the locals. Before you've even had your offer accepted on your next
home, the next chapter of your life will already be well under way. First Time Home Buyers Tips for First-time Homebuyers In any case, you've got a lot of company. According to the National
Association of Realtors, about 40 percent of existing homes are purchased by
first-time buyers every year, with sales of new homes to first-timers adding to
the total. That's nearly three million sales to first-time homebuyers annually.
Overall, the desire for homeownership continues to appeal to a big majority
of us. Statistics compiled by the U.S. Census Bureau show that home sales rose
to record levels five years in a row. In the fourth quarter of 2006, the
national homeownership rate was 68.9 percent, a near record high. In addition, home ownership knows no boundaries when it comes to sales to
newcomers to our shores. U.S. Census Bureau data indicates that foreign-born
Americans are as likely to buy homes as native-born Americans, and it may
surprise you to learn that the home ownership rate for immigrants who have
lived here for 30-plus years exceeds the national average. Buy? Why? That said, the appeal of homeownership can be as much about the intangible
benefits as about the cold hard facts of investment potential and tax savings.
Your home is, well, yours, a means of expressing your personal taste and
satisfying a fundamental need for shelter and security for yourself and your
family. It also represents a solid connection to community, and instills a
sense of place and participation in community life. *Individual tax savings vary. Consult your tax advisor for details about
potential tax consequences. The Hardest Part: Getting Started The best way that we know to keep you on the path that leads to the door of
your first home is information, a lot of which you'll find right here on
ERA.com, some from research elsewhere on the Internet, talking to friends and
co-workers, and – perhaps when you've narrowed down your choices to a specific
area, town or neighborhood – from working with a local ERA Real Estate
professional. You've already made one smart step toward home ownership by putting the
power of the Internet to work for you. Used wisely, the Internet can help you
do an amazing amount of research on all the things it takes to find the home
that's right for you in an amazingly short time. That's why nearly 80% of
searches for a home begin on the Internet; and that percentage continues to
grow. Tips to Help Keep You on Track Know What you Need – It's easy to get distracted and lose sight
of your basic needs once you're in the middle of searching for your first home.
Early in the process, it's helpful to list your basic needs; minimum square
footage and number of bedrooms and bathrooms, as well as proximity to schools,
shopping – whatever you think you must have in your new home. List Your 'Nice to Haves' – Now that you've got a firm handle
on the 'must haves,' make a second list of the 'nice to haves;' things like a
bigger garage, extra bedroom, in-ground pool, etc. Between these two lists,
you're already off to a great start on zeroing in on the home that's right for
you. How Much Can You Afford? – In general, the answer to this
question is a function of how big a down payment you can put down and how much
you are able to borrow, based on your credit score and other factors as
determined by a lender. There are many loan calculators on the Internet to help
you determine what you can afford; none of these is a substitute for discussing
your needs with a reputable lender. A common rule of thumb is that your annual
mortgage payments, taxes and homeowner's insurance should not exceed 28% of
your gross annual income. Note: In addition to a down payment, you should keep up to 5% of your
home's purchase price in reserve to cover closing costs and contingencies. Check Your Credit – ... and your debt. This would be a great
time to obtain a copy of your credit report from a credit service bureau and
make sure that your credit history is in order. Most lenders breathe easier
when your total monthly debt service from all sources – including homeowner's
insurance, property taxes and your mortgage payment – will be below 40% of your
gross income. Note: Cancel credit cards you never use; the credit line, even if
unused, can raise a flag with lenders. Research Your Favorite Neighborhoods – The Internet makes it a
snap to research economic, demographic and a whole host of other data about
specific communities and neighborhoods with a few mouse clicks. Real estate
sites of global real estate brands (such as ERA.com) and the sites of area
Chambers of Commerce are excellent sources. Find out What's Available – Searching online for homes in the
area of your choice will return online listings, virtual tours, and an endless
array of photographs, aerial views and maps of homes and the surrounding area.
Check the listings against your list of 'must haves' and 'nice to haves' and
decide whether prices are in your ballpark. Start Kicking the Tires – Once you've settled on the type of
home and neighborhood you're looking for, it's time to make the move from
'clicks to bricks' and start looking at properties. We believe that the using
services of a real estate professional is the best way to successfully get you
through the emotional and often complex process of choosing and purchasing your
home. A real estate professional will listen to your needs, and show you homes
that fit your particular desires; homes that may even be new to the market and
whose listings are not yet generally available online. In addition, a real
estate professional is dedicated to taking care of the seemingly endless
details that buying a home entails and keeping the process on track to a
successful conclusion at the closing table. Note: Bring a camera and a copy of the listing when you view a
property, and take notes on your likes and dislikes. Shop for Financing – With the availability of fixed rate,
adjustable rate, hybrid, interest-only, etc., etc. programs for financing your
first home, entire books can (and are) written on the subject of financing your
home. In short, research financing options while you're researching potential
neighborhoods, and shop for financing as soon as you're ready to begin viewing
properties. Note: Competition for choice properties occurs regardless of market
conditions, and the potential buyer whose mortgage line of credit is
pre-approved often walks away with a signed contract for their dream home. A Final Tip – When you find the first home that's perfect for
you, buy it! Does Renting Make Sense for You? Right about now, you may be saying to yourself 'ERA is a global network of
real estate offices. Of course they're going to tell me that owning a home is
better than renting.' Well, almost always. ERA has been successful at helping to bring home buyers
and sellers together precisely because most people find the notion of owning
their own home compelling for a wide range of reasons, both financial and
emotional. That's why home ownership rates in Renting can make sense for lots of folks, particular those who plan to stay
in an area for a short time. You're the ultimate authority when it comes to
knowing whether home ownership is right for you; the following is some food for
thought that we believe can help you make an informed decision. It's a Home. It's an Investment. It's... A Mighty Big Lever – Owning a home affords a powerful way for
you to leverage your capital. The purchase requires a relatively small down
payment, yet your return is based on any increase in the total value of your
home, amplifying even a seemingly modest rate of appreciation. Opportunities to Add Value – Thanks to differences in the
efficiency of the financial markets versus the real estate market, the purchase
of a home offers you opportunities to add value that are not available to you
when you purchase stocks or bonds. While you're competing against thousands of
savvy investors in the financial markets, you may be competing against a
relative handful of potential buyers for a given property. Combine the use of the Internet-based research tools and the services of an
ERA real estate professional, and you have the power to be the buyer who finds
the motivated seller with the attractively priced property, increasing the
likelihood of equity appreciation from the day you move in. If you're an enterprising, creative buyer, put online information resources
and the experience of an ERA real estate professional to work for you to find
the 'diamond in the rough' that's waiting for your special touches to improve
the property, increase your enjoyment while you live there, and add to resale
value. Equity Loans for the Short Term – With credit card interest
often exceeding 20%, a home equity loan can offer a lower cost, flexible tax
deductible alternative. Note that, as with the assumption of any debt, home
equity loans call for financial discipline on your part. Liquid(ity) Refreshment for the Long Term – Financial markets
are highly liquid; your investments in stocks or bonds can be sold in seconds.
Selling a home takes a bit longer; that's not a good or bad thing, just
something you need to be aware of when you find yourself thinking of your home
in the same investment terms as a stock or bond. The difference in market liquidity also helps explain why trends in real
estate values tend not to exhibit the (sometimes extreme) spikes of the
financial markets; and why you shouldn't stay awake at night trying to 'time the
market' when it comes to real estate. Take a (Tax) Break – Home ownership can offer significant tax
advantages over renting:
*Consult with your tax or financial advisor for details. Intangibles Can be Nice Too If it's important to feel a deeper connection to community, in a space
that's yours to do with as you will, without the hassle of landlords, and the
hassle of new people moving in and friends moving out on the first of every
month, you've already made your decision. Our Advice in a Nutshell... When you decide to buy, buy a home that meets your needs at a price you can
afford; not just because you believe it's a good "investment," but
because the tangible and intangible advantages of home ownership (some of which
we've outlined here) make sense to you. And when you need the advice of a real estate professional, we hope you'll
speak to an ERA representative in your neighborhood – we really are
"Always there for you."™ Financing Relocation
A Closer Look at For You've seen the signs displayed in front of homes of every description, and
whether you're a potential homebuyer or seller you've probably wondered whether
going the "For Sale By Owner" (FSBO) route is right for you. The fact is that there have always some sellers who've chosen to attempt to
sell their home without the services of a real estate professional, although
their numbers have been decreasing substantially. The National Association of
Realtors reports that 12 percent of sellers took the plunge in 2006, down from
13 percent in 2005 and way down from 20 percent two decades ago. But that doesn't tell the whole story. Of that 12 percent, fully 40 percent
were private sales to buyers who were known to the seller prior to the
transaction; bringing actual FSBO sales on the open market down to 7 percent. How Do FSBOs Do what they Do? In the complicated and sometimes lengthy process of selling their property,
FSBO sellers have voiced their share of woes, including the difficulties of
setting and getting the right price, readying the property for sale, dealing
with the paperwork, attracting buyers, completing the sale within a reasonable
time – and simply finding enough time to do it all. But all that Work is Worth It, Isn't It? Buyer? Seller? A Real Estate Professional Gives You the Edge Buyers don't necessarily fare better by dealing on their own with a FSBO
seller; given that many FSBO sales are off-market, the lower average selling
price does not present an accurate picture of FSBO sales on the open market. In addition, both sellers and buyers are typically subject to time
constraints when it comes to completing their transaction; hitting a dead end
with an unqualified buyer or a seller unfamiliar with the process is a recipe
for frustration, delay and dispute. And with a large inventory on hand and broad knowledge of the area they
serve, a real estate professional is positioned to show buyers only properties
within their price range that meet their specific needs. Realtors and the Internet: Transforming Buyers' & Sellers' Experience The use of the Internet in real estate searches has grown to the point where
over 80 percent of buyers use the Internet to search for a home, yet 90 percent
use a real estate professional to help with the process, and almost 85 percent
of all FSBO sellers eventually list with a Realtor®, underscoring the complexity
of the process of buying a home. FSBOs Falter in Today's Market Homes that remain on the market week after week are perceived as distressed
properties by potential buyers, who may become wary of making even a
below-market offer. The increased costs to carry a property over time further
reduce any profit eventually realized by the FSBO seller. In short, the longer
a property is exposed to the market, the lower the marketplace perceives its
value, and the lower the price and net profit received by the seller. Questions for Sellers and Buyers of FSBOs As a potential buyer of a FSBO, why would you choose to invest your
time and resources working with a seller with an inventory of just a single
property, hoping that it is the perfect home for you, that the property is
exactly as represented by the seller, and that the seller has the skill,
knowledge and emotional detachment to see the transaction through to a
successful conclusion? We believe that it makes sense for sellers and buyers to work with a
knowledgeable real estate professional. If you're a seller, you benefit by
working with someone who can expertly market your home to a large pool of
interested, qualified buyers, and can successfully guide you through what can
at times be a complex and emotional process. If you're a potential buyer, you're working with a trained professional with
access to the tools and inventory to help you find just the home you're looking
for and help ease the process for you, all the way through to closing. Helping buyers and sellers realize their goals is what we do, and it's why "Always
there for you" isn't a slogan – it's our job description. Second Homes: A Flavor for Every Taste As you scour the Internet and the travel publications year after year in
search of a vacation rental, do you ever wish you owned a getaway of your own?
Thousands of people do, and whether you're looking for a place that's
exclusively your own, or contemplating renting your second home to help make
ownership more affordable, you can choose from a world of properties of every
type, size and location. Second Home Market offers Buying Opportunities Sales of vacation homes actually rose last year, while sales of properties
purchased purely for investment fell, primarily due to the exit of speculators
from the real estate market. That's good news if you're looking for a property
at a fair price, seeking a respectable return on your investment over time, and
plan to make it available for your own use, either full or part-time, now or in
the future. The Who, Why and Where of Vacation Home Purchases The 2006 National Association of Realtors® Profile of Second-Home Owners
survey asked current owners what they desired most in a vacation home. Not
surprisingly, a connection to nature and the pursuit of an active lifestyle
were typical responses; 66 percent wish to be near water, nearly 40 percent
with access to recreational activities, 38 percent in proximity to vacation or
resort areas and over 30 percent near mountains and other natural attractions. When giving their reasons for the purchase of a vacation home, a large
majority (nearly 80 percent) planned to use the home for vacation or as a
family retreat, followed by the desire to diversify their investment portfolio;
for use as their primary residence in the future; for the tax benefits; use by
a family member, friend or relative; simply because they had extra funds
available. Renting to others trailed the respondents list of reasons, at 18
percent. When describing the location of their vacation home, 29 percent were
situated in rural areas, 24 percent in resorts, 22 percent in a suburb and 10
percent in a city or urban area. Detached single-family homes accounted for 67
percent of the total, 21 percent condos, 8 percent town homes, and 4 percent
"other". Buyers of vacation homes tend to be in it for the long term, planning to
keep their homes a median 10 years; the largest number of owners responding to
the survey, 38 percent, expect to own their vacation home for 11 years or more.
How does your mental picture of the perfect vacation home fit these survey
results? Investment Home Buyers Paint a Different Picture The reported reasons for purchasing a home for investment purposes differed
somewhat as well; 46 percent sought rental income; 43 percent wished to
diversify their investment portfolio; 23 percent primarily for the tax
benefits; followed by use for vacations or a family retreat; as a place to put
extra cash to work, for use by a family member, friend or relative. Eventually
using the property as a primary residence trailed the list, at 12 percent. Buyers responding to the NAR survey reported that over 37 percent of
investment homes are in a suburb, 22 percent a rural area, 18 percent urban or
central city, and 7 percent in a resort area. Detached single-family homes made
up 63 percent of the total, 26 percent condos, 6 percent townhouses, and 5
percent "other". According to the survey, buyers of homes for investment purposes plan to
keep them for a median period of five years; 33 percent plan to hold them for
six years or more, and 12 percent plan to sell within a year of purchase. Let the Search Begin! Before you make an offer on a property, it's also a great idea to visit the
destination and return on the typical day and time you expect to visit. You'll
get a much more realistic idea about travel time, and potentially save yourself
a lot of frustration. If you're thinking about making your getaway your primary
residence in the future, now's the time to take a realistic look at how access
and mobility issues in the future could affect your enjoyment of a particular
property. Financing Considerations Should you Rent Your Second Home? Estimate Rental Income – Include a realistic estimate of the
number of weeks the property will be likely to be rented. Calculate monthly
costs such as mortgage, insurance, taxes, advertising, maintenance and
projected repairs. A real estate professional can help you estimate the income
potential of your property. Look at Tax Consequences – Ask a tax professional about what
how projected rental income will affect your net financial picture. Research the Rules & Regs – Consult your legal advisor to
determine whether local laws, deed covenants, homeowner association regulations
or other restrictions affect your ability to rent the property. Consider Hiring a Property Manager – If you are unwilling or
unable to take a hands-on approach to the considerable effort involved in
renting and maintaining your getaway, consider using the services of a property
manager, especially if you're purchasing a vacation property that isn't near
your primary home. Your real estate professional can be helpful in identifying
a reputable property manager. A Final Word about Renting Is Owning a Rental Property Right for You? Picture yourself as the owner of a choice property. Now imagine owning that
property while someone else makes the mortgage payment for you, while you reap
tax benefits – all the while building equity from any appreciation in the value
of the property. That's the picture that most potential owners of rental properties paint for
themselves. The real picture, while fraught with its share of hard work and
potential pitfalls, can still be a rosy one if you're willing to take a hard
look at the reasons for purchasing a rental property, choose carefully and take
the time and effort to manage your investment. A Few Things to Consider Before You Get Started Are You in it for the Long Term? – Are you considering the
purchase of a property with the intent of renting it for the period of time and
eventually taking full-time possession as your personal vacation or retirement
residence? While you may find the property that offers excellent rental income in the
present with good potential for appreciation and appeals to you as a future
retirement or vacation home, some of the best opportunities for a return on
your rental property investment lie outside choice vacation or retirement
areas; near hospitals, universities, public transportation and shopping for
example. Successful ownership of a rental property typically requires a medium to
long-term commitment, often five years or more. In the short-term, initial
expenses and market fluctuations may make other investment options a more
attractive alternative for attaining your financial and life goals and
objectives. Discuss your goals and crunch the numbers with your financial advisor before
you go ahead. A Solid Rental Market – Despite a near record rate of home
ownership in the A 24-7 Investment – Owning a rental property will require more
of your time and attention than investing stocks or bonds, and on a schedule
that is not always under your control; that dreaded 2:00 am phone call
informing you of a burst water pipe, for example. How Hands-On are You? – Of course, you can hire a property
manager, plumber, painter, carpenter, etc. to keep an eye on your rental
property and perform maintenance and repairs when necessary, but all add to
your costs and reduce potential profits. Start your Search There are a number of ways to find rental properties; Web searches,
classified ads and foreclosure notices in local newspapers, referrals from friends.
One of the best ways we know is by working with a real estate professional who
knows the area and is aware of what you're looking for in a rental property; a
savvy Realtor may be aware of an available property before it becomes well
known to the general pool of potential buyers. Buy at the Right Price The simple fact is that every dollar you save when you purchase your rental
property is a dollar you won't have to finance, and a dollar you won't have to
recoup when you sell. The same is true of every dollar of value you add through
cost-effective renovations and repairs. Your research and the trusted advice of
a real estate professional will go a long way toward ensuring that you find a
property that's attractively priced for your local market. While formulas for determining the "right" price abound, usually
based on some multiple of expected gross annual rental income, there's wide
variation in local markets, and a rule that works in one may not work in
another. At a minimum, you'll probably want to ensure that annual rental income
covers all your out-of-pocket costs, including those resulting from a typical
vacancy rate of 5 to 10 per cent. Consider the Tax Advantages
* For illustration purposes only; consult your tax advisor for specific tax
advantages. Shop for Financing Some alternatives to traditional lenders include lenders who specialize in
financing rental properties and owner financing from the seller of the
property. If you plan to purchase a multi-unit dwelling and plan to occupy one
of the units, you may qualify for more favorable terms on your financing. Regardless of the financing you choose, be sure to retain sufficient cash
reserves or available line of credit to cover contingencies such as repairs and
vacancies. Shop for Tenants Too When considering prospective tenants, ask questions, verify all references, and
run a credit check and a search for previous evictions and other evidence of
legal troubles. Follow up with the current and previous landlords, but do not
take glowing recommendations from a current landlord (particularly within the
immediate area) at face value. As an additional check, put the Internet to work for you and ensure that all
phone numbers listed by prospective tenants match the directory listings. To succeed as a landlord, you must also educate yourself when it comes to
applicable landlord-tenant laws and regulations. Seek the advice of a
professional when it comes to drawing up rental agreements and at the first
sign of a dispute with a tenant; it's excellent insurance for avoiding a
lengthy and much more expensive headache in the future. In Summary: The Keys to Rental Success Considerations When Buying Land To paraphrase Will Rogers, put your money in land, because they're not
making any more of it. But did Will give sound advice? If you're considering
the purchase of a piece of property as the site for a vacation getaway,
retirement cottage or simply as the next chapter in your personal history as a
homeowner, there are a few things you should consider before making an offer on
a yet undeveloped piece of America.* At first blush, the notion of buying a raw land for the construction of your
home – either now or in the future – sounds like a reasonable idea. Reserving
the location of your choice, hedging against future increases in the price of
land, and the appeal of starting with a clean slate and truly getting a home of
one's own are just three reasons why many people choose this option. What's the Down Side? First and foremost is the issue of financing. Many lenders are reluctant to
offer financing for raw land. If available, financing programs tend to be at
significantly higher rates and for shorter terms than for mortgage financing
for an existing home. This is particularly true of first-time purchasers of raw
land who do not have a track record of successful development of such a
property. Limited financing options for raw land leave you with the option of paying
cash; an expensive route in terms of opportunity costs for alternative
investments, since your cash is now effectively generating a rate of return of
zero. In addition to the opportunity cost, your land purchase will also incur some
additional expenses from day one that must be factored into your investment
calculation, including property taxes and the potential need to protect the
property (by erecting a fence and posting signs, for example) and for
additional protection from personal liability through the purchase of liability
insurance. Make a Wish (List)
Dig Deeper There are plenty of ways to find land for sale. The Internet should be your
first stop to get a general sense of the market, but there's no better way to
get a feel for an area you're considering than to drive around. You may even
find a sign posted offering a lot for sale that appeals to you. Talk to local
builders, and be sure to check the classifieds in the local paper - preferably
when you're sipping coffee at a local eatery and asking the locals for leads. Once you've zeroed in on a specific area, we can't think of a better way of
locating just the right parcel of land than working with a real estate
professional who understands the local market. With superior knowledge and
access to listing information, networking among agents, negotiating skills and
experience with local authorities and area contractors, an agent can be an
invaluable resource in your search for the "perfect" property. Even if you are interested in a FSBO (For Sale By Owner) property, putting
the skills and experience of a real estate professional to work for you can
bring your transaction to a successful conclusion smoother, faster and on terms
that are favorable to you. A Few Details to Consider Is the Utility Easements – Review the survey of the property to
determine what utility easements exist, their location and the potential impact
on construction, and on aesthetic issues that could affect your enjoyment
and/or resale of the property. Homeowners' Association – Purchasers of property sometimes
learn of the existence of a Homeowners' Association after the deal is closed.
Homeowners' Associations can impose deed restrictions and other regulations
that may prevent the eventual construction of your home from going forward as
planned. Proposed Public Works Projects – Proposals for public works
projects such as overhead utilities and highway construction are usually filed
years in advance. Utilities – Make sure you are clear on what utilities are
available on your lot and what the approximate costs will be to supply them.
Often, in more rural settings, you will need to bring power from a somewhat
distant pole to your lot, dig a well, and install a septic system. If you are a
high speed internet user, check to see if service is available. Change in Tax Status – The owner of land that is currently
zoned for other than single-family residential construction (farmland, for
example) may incur unfavorable property tax consequences upon approval for a
change in use. A Final Consideration * Presented for informational purposes only.
Consult your tax and/or legal advisor for guidance regarding any and all tax
and/or legal issues. Mature Market...ERA New Thresholds ERA Real Estate continues to be committed to provide consumers over 50 years
young with personalized and targeted service that only a "relationship
brand" like ERA can provide. We understand many different types of people
make up the "Mature Market" and their housing needs are not the same
for a person who is 55 yrs. of age as they are for a person who is 65. Your ERA real estate professional now has the benefit of a distinctive and
targeted program for the 50+ customer called ERA New Thresholds. These
and other marketing materials were developed to speak to you and the many
interests and needs that are unique to your real estate needs. At this point in your life, many exciting opportunities await you. You could
be downsizing to a smaller home, or purchasing a vacation or second home.
Perhaps, you're interested in an investment property, or maybe more specific
types of real estate such as an active adult community or assisted living.
Whatever your needs, ERA Real Estate is truly dedicated to providing you with
the support, direction and unique attention that you have earned. We Understand Your Needs ERA understands that the 50+ customer's real estate transactions can be
especially challenging. Whether you're selling a beloved, family home,
purchasing a new home for the first time in decades, or just want to learn more
about different types of accommodations such as active adult communities,
assisted living, etc. ERA Real Estate is always there for you. Our Guarantee: ERA Sellers Security Plan Financing and Mortgage Options Global Exposure To learn more about the ERA New Thresholds program for the 50+
consumer, please contact your local ERA
office for more information. We're always happy to share the many ways ERA
Real Estate is "always there for you." Moving Tips To make a move successful a little planning is needed. Our moving and packing
tips can help you with that planning. However, a move does not need to be
all work. You need to have a little fun and say thanks to all your friends and
family. So here are some
ideas to make this a lot of fun. Upromise
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