With the decline in new home building green remodeling has taken off creating an expected increase from 2011's 17% residential market share to 29-38% by 2016! I think this green predication by McGraw-Hill shows that green building/remodeling, residential and commercial is not a fad but the new direction of construction, something I heard frequently over the past couple years. So here's the whole article (be sure to read which regions of the US are the leaders in green construction).
Photo: HGTV's FrontDoor News
Mistake #3: Not getting a home inspection
No matter how perfect a house looks inside and out, it is very important to have a home inspection performed. Every home has flaws and it’s own “personality”, no matter what the age and you are better off knowing about these things before you purchase the house instead of after.
The red flags in a home inspection would be structural, related to the HVAC (heating and cooling system) or roof related and may be covered under a repair clause in the contract which means the Seller will have to repair the item. Many items which show up on a home inspection may just be minor or cosmetic.
If you use your home inspection as a maintenance guide you can be prepared for major repairs down the road by budgeting for them in advance. Your home inspection report should provide you with a “map” of your home’s systems with years of life expectancy remaining.
The Urban Land Institute recently released their forecast and statistics for the housing industry in 2013. A turnaround beginning this year, albeit a slow beginning with 2013 showing more positive increases in value.
WASHINGTON (March 28, 2012) -- A new Urban Land Institute survey of 38 leading real estate economists and analysts from across the United States projects broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014.
Photo: HGTV's FrontDoor News
Mistake #4: Not reading the fine print
If you did your homework, you had your trustworthy real estate attorney review all your paperwork and discuss it with you so you don’t get a nasty surprise at closing. Let’s face it — you won’t have time to read that six-inch stack of legal documents at the closing table. Fortunately, there are a select few documents and items that are truly critical, and you can request a copy of these in advance. This gives you time to review them and ask questions before closing.
Photo: HGTV's FrontDoor News
Mistake #5: Impulse Home Buying
Frequently first-time home buyers tell me “We’ll know the ‘house’ when we walk in” as we begin our house-hunting journey and, when we walk into the first one, they exclaim “This is the one!”. While this may be the house they do decide to buy, I still encourage them to look at all the properties I selected based on the parameters they shared with me.
It just makes sense to look at several properties. Many first-time home buyers may have one of the two just in love with the idea of owning a home with a loved one and the other partner gets swept up in that feeling of elation. Looking at all the homes your real estate professional has selected solidifies your decision as truly the best house for your needs. “Buyers remorse”, as the professionals call it, usually occurs when first-time home buyers don’t follow the advice of their real estate agent. So, to find the best house for you and avoid that feeling of “what did we do?”, follow your professional’s lead by looking at all the homes scheduled for your viewing so you can compare.
Photo: HGTV's FrontDoor News
Mistake #6: Buying a house you can’t afford
Just because a lender is willing to loan you more money than you thought you wanted to borrow, that doesn’t mean you should change your home buying plans. Buying more home, or anything else you really can’t afford can quickly lead to headaches, stress and money worries. Keep in mind you are buying a shelter for yourself which will probably appreciate in time but don’t forget you will still need money for other things.
As a rule of thumb, I would recommend your mortgage payment be less than 25% of your gross monthly income unless you buy an energy-efficient home or one with a HERS index rating of less than 60. Obviously, the higher your utility bills the higher that percentage gets to where it can become 40-50% of your gross monthly income. Besides your mortgage payment and utilities, you need to be prepared for additional costs of homeownership, such as homeowners insurance, property taxes and maintenance which could be more on a wood structure vs. concrete block depending on the area you buy.
Consider scaling back on the size of the home you’re looking for in order to make the whole investment fit into your budget. Keep in mind you want to own the house and not have the house own you so you can’t afford to do anything else or you take on credit card debt for vacations or emergencies.
Photo: HGTV's FrontDoor News
Mistake #7: Buying a foreclosure or fixer-upper without doing your research
Some homebuyers are so set on finding a bargain, they overlook the fact that buying a home that needs repairs can be a stressful and expensive project. Before buying a fixer-upper, get estimates on any necessary repairs and renovations and make sure they will pay for themselves in increased property value.
The foreclosure market is also full of opportunities, but it’s important to be aware of the potential pitfalls before buying a foreclosed property. Be certain to check tax records, deeds and Homeowner Associations (if applicable) for delinquent property taxes, encumbrances or overdue HOA fees.
Photo: HGTV's FrontDoor
Mistake #8: Not researching the neighborhood
What good is having your dream home, if you don’t like the community where it’s located? Before shopping for a home, shop for a neighborhood. Make sure it’s a good fit for your lifestyle — figure out how long you want your work commute to be, how close you want to be to amenities like shopping and nightlife, and which school districts are the best. Even if you don’t have children, living near good schools raises your property value. Visit the neighborhood several times and at different times of the day. The biggest incentive for finding a quality community: a great neighborhood will increase your home’s value, while a bad one will drag it down.
Mistake #9: Thinking short-term
The house you plan to buy should be a place that feels like home to your family and it’s important to remember that it’s also a huge investment. When looking for that perfect home, you should also think about reselling your home down sometime in the future. Chances are good you will move again due to a new job, retirement, moving closer to family, etc. so you want to increase your chances of a quicker sale.
Look for homes in desirable locations and consider buying a smaller home in a more expensive, sought-after neighborhood. Be certain to look for features that future buyers will want, such as energy-efficient upgrades, upgraded communication capabilities (“smart” house or CAT 5 wiring,etc), drought tolerant landscaping and extra storage space. If you are a DIYer look for a home with good structural details and site location and plan to do the cosmetic upgrades yourself, but be certain to include those remodeling estimates in your mind when determining what you can afford.
Remember the adage “don’t buy the largest/most expensive home on the block”. Owning the “baby” on the block provides more opportunity for upgrades and appreciation.
This is a pictoral journal of construction of The S.E.E.D. Home® from site prep to present. The interior framing is in process and we’ll be adding more as we have the time. We’ve come a long way.
Posted in Real Estate News
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208 North Matanzas Blvd.
St. Augustine, FL 32080
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