The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date.

Overall Dollar Budget

To establish a budget for purchasing a home, you should speak with a mortgage professional prior to looking for property. In terms of your budget, keep in mind that parking is usually not included in the purchase price that is quoted by the developer. In addition, in today’s market the list price of the unit is typically not negotiable.

The best way to establish a budget is to determine how much money you will need as a down payment and how much money you will need as a down payment and how much you feel comfortable spending, based on your gross income, for monthly payments. Remember that the real estate taxes are generally included in your monthly mortgage payment and should be calculated at a minimum of 2% of the purchase price.

If your down payment is less than 20% of the purchase price, your lender will require that you purchase private mortgage insurance (PMI) – this charge will also be included in your monthly payment. Also factored into your monthly expenses are your assessments, both for the unit itself and a separate assessment for parking. And finally, add your monthly mortgage payment.

Location

Generally speaking, the higher the density of the area, the more costly the condominium or townhouse will be. Then checking out locations, you may want to consider less developed areas of the city. Such areas are typically less expensive than those in more developed areas. Note, that as density increases with new development, it is highly likely that your property will gain in value, resulting in a higher return on your investment.

Cost Per Square Foot

When purchasing new construction, the favored method of comparing value is cost per square foot. This is the method used by developers to initially price their developments. With the cost per square foot in mind, you will be able to compare different properties on an equal basis and determine whether you are purchasing at a favorable price.

Also to be considered when looking at the cost per square foot price is whether the developer has included such items as granite counter tops, marble bathrooms, and black or stainless appliances as standard features. In Chicago, prices per square foot range from $225 to as much as $1000 per square foot in the Gold Coast.

Finishes

You will need to carefully examine which finishes and appliances the developer has included in the base price versus which are considered upgrades. Note that the more expensive finishes such as granite and marble are not usually included in the base price of a one-bedroom unit.

Be sure to get a detailed list of specifications in writing from the developer, indicating the brand and model number of each appliance. Don’t be confused by the finishes and appliances that are shown in the models you see- they may not be the same as those included in the quoted price. Models are typically finished with granite and marble, undermount sinks and hardwood floor laid diagonally but such features may not be considered standard, particularly in smaller or less expensive units.

Upgrades

As you can imagine, the cost of upgrades can vary considerably. Developers commonly charge their cost plus a 20% mark-up for upgrades; others may charge even more. Try to determine the costs when you and your realtor are writing up the initial offer. By determining all costs during the contract period you reduce the chance that upgrade costs will exceed your budget.

If you keep in mind that many new construction units are not ready for occupancy for a year or two, you will understand the importance of having all upgrade costs in writing as part of the initial contract – at today’s prices rather than at costs calculated at inflated prices one or two years later.

Parking

One of the essential elements of resale value is parking. In a loft conversion or a high-rise building, parking can vary from approximately $25,000 to as much as $60,000 depending upon the level of luxury of the building and the availability of parking in the area.

Since parking spaces have dramatically increased in value, you should seriously consider purchasing a space whether or not you currently own a car. Without parking, the later sale of a unit may be more difficult than that of a comparable unit for which parking is included in the price.

Delivery Date

Although your contract will specify a delivery date, provisions in the contract will often allow the developer to deliver your unit much later than the specified date without penalty. If this is an important issue to you, you should keep in constant contact with your Realtor during the construction process as delivery dates can be delayed for as long as a year and, in rare occasions, even beyond that. You should also speak with your attorney and incorporate terms into the contract so that your interests are protected in the event this should occur.

Working With A Realtor

Purchasing a new construction residence can be a rewarding experience and a wise investment. But there are definitely nuances involved in purchasing new construction, including the track record of the developer, the number of “flippers” purchasing in the project, and the percentage of sold units.

You will be best served by using a Realtor who is familiar with new construction market, the various developers and their product. With your Realtor at hand to answer all your questions, your interests will be represented and protected in all communication with the developer.

If you rely on a real estate professional, you will spare yourself a great deal of the aggrevation associated with purchasing a new construction home and, best of all, this representation will be at no cost to you – the developer pays your Realtor’s commission.

About The Author

Sheldon Salnick is a Realtor with Rubloff Residential Properties. He has worked with new construction buyers for the last 13 years and has represented over $200 million in new construction. For more information or guidance in the purchase of a new construction home, townhome or condominium, he can be reached him at SSalnick @ Rubloff .com or http://www.SheldonChicago.com” target=”_new.

Buying New Construction…How Do I Begin?

Building your dream home is a process that takes some individuals a lifetime. Hardly anyone knows early in life what exactly constitutes “dream home” in her eyes. Pinning down the details that you want may take years of “starter” homes and building mistakes to learn what truly works for you. It is helpful to keep a list of likes and dislikes about each house that you live in. Consider everything from major aspects like size and layout to minor details like cabinet space and tile coloring. It is hard to remember everything that you have learned from previous living situations when faced with the stress and endless choices involved with building a new home. Keeping detailed records is a good way to stay level headed under pressure.

One good way to get good ideas for your dream home is to do active research. Any time you see a house for sale, stop and take a walk through to add to your likes and dislikes list. Steal ideas- it is allowed! Model homes are another great way to check out floor plans and housing designers. Home shows are one of the best ways to get ideas. These homes are fully decorated, and decorating the house well is almost more important in creating a dream home that the actual layout. Often these homes provide great inspiration for wall coloring, wood color, counter tops and furniture ideas. Be open minded, and home shows may provide a whole new perspective.

The next step is choosing a location for the building of the dream home to take place. The whole atmosphere of the house depends on whether you are located in the woods or a subdivision, on lots of acres or in a city. Work with your atmosphere instead of against it. Once your have ideas for what type of home you want, consider what type of backdrop makes the most sense for your tastes.

Choosing a builder is one of the hardest steps in choosing a dream home. Get recommendations from friends whose homes you admire and visit several projects completed by the builder.

Before any contracting takes place, you and the builder should have extensive conversation to be sure your ideas and his skills will coincide. Take your time with decisions. Make initial choices, but allow two weeks to think about your choice before it is finalized. It is important to visit your work-in-progress dream home frequently in order to be sure you and the builder are on the same page. Sometimes mistakes get made in the funneling of messages from builder to crew heads to crewmembers. Staying in close contact with the builder and crews helps ensure that your home is erected according to plan.

Keith Kingston is a professional web publisher offering advice and tips on http://house-plans.allspecialoffers.com/, and choosing http://1st-4-real-estate.com/

How to Build Your Dream Home

The old adage that "timing is everything" especially applies to buying a new home. And trying to be at the right house at the right time and get it for the right price can be tricky. Here are some guidelines to assist you:

• Turn to the real estate section of your Sunday newspaper. Monitor the market and tract home prices. Expect to spend 90 days watching the real estate market through advertisements. Question and investigate homes that are advertised month after month. Hard-to-sell properties could either be a warning sign or simply overpriced for the value.

• When a real estate agent provides you with descriptions of homes currently on the market from the Multiple Listing Service (MLS), ask for a list of homes that were on the market within the last six months or year in the same neighborhood. Compare asking prices to actual sales prices for the same type homes.

• In addition to monitoring housing prices, learn to identify hot, up-and-coming neighborhoods by tracking selling prices from week to week. If one neighborhood experiences price booms while other house prices are sluggish, its’ clear which community to invest in. If you’re passionate about an upscale area – and on a budget – prepare to buy a fixer-upper and invest some money in renovation. Conversely, beware of buying a beautiful home in a marginal area. You may not get your money back when you sell.

• Keep close watch on the fluctuating mortgage interest rates. Low interest rates are the most inspiring reason to buy property. Watch the rate of United States Treasury Bills. According to Sonny Block, well-known talk show hose and real estate author. T-bills are a sure way of predicting the rise and fall of mortgage rates.

• Also watch the national Discount Rate, the rate at which banks can borrow money from the government. When the Discount Rate drops, banks pay less for borrowing the money and in turn reduce mortgage rates to the borrower.

Predicting when a market is ripe for home buying is not an exact science – even for real estate experts. However, by following these simple tips – and staying on top of real estate trends, sales patterns and interest fluctuations, you are sure to get the best house for your buck.

About The Author

W. Troy Swezey is the author of "TIMING IS EVERYTHING WHEN IT COMES TO BUYING HOMES.” As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com” target=”_new or mail to: TroyC21 @ usa .net

Timing Is Everything When It Comes To Buying Homes

Perhaps you’d like to take advantage of today’s great buyer’s market in housing but feel a little intimidated by everything that’s involved.

You know the routine: finding the right locale and the right house; negotiating an agreement; putting together a down payment; and selecting the best mortgage available.

There are two things you can do to make every step run smoothly. The first is to select a really professional agent who knows the real estate business, knows your local market, has both a solid reputation for integrity and a solid record of success, and clearly is eager to respond to your needs.

The second is to make you agent your teammate in the literal sense of the word, using teamwork to be sure that the house you ultimately buy is the house you’ve always wanted.

Making your agent your teammate requires choosing an agent you feel able to trust both as a person and as a professional. And that’s no small matter. In real estate as in all areas of business – as in all aspects of life, actually – trust can make all the difference in the world.

True teamwork is nearly impossible to achieve unless you stick with one agent throughout the buying process. Buy all means you should shop around – and shop around carefully – when you’re still deciding which agent to work with. Once you’ve made that decision, however, don’t reverse it unless (and this rarely happens to people who are careful in the first place) something specific happens to make it clear that your choice was unwise.

Teammate status is all the motivation a first-rate agent needs to go all-out in finding houses that suit your needs. And if you’re concerned about what it is you’re looking for and how much house you think you can afford, your agent can save you huge amounts to time and effort.

If you’re not sure how much you can afford, be candid with your agent about that, too. He or she can provide you with some helpful preliminary guidelines and can put you in touch with mortgage lenders who know how to get you focused on an appropriate price range.

It’s always a good idea, as you look at listed homes, to give your agent a lot of feedback on what you’ve seen. Good feedback will refine and sharpen the agent’s understanding of your likes and dislikes, which in turn will make it easier to find the house of your dreams.

The ultimate payoff, once again, is that you get to your goal more quickly, expending less time and less effort along the way.

Anyone who have ever done it this way will assure you of one thing: it pays off.

About The Author

W. Troy Swezey is the author of "HASSLE-FREE HOMEBUYING.” As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com” target=”_new or mail to: TroyC21 @ usa .net

Hassle-Free Homebuying

Cheap Homes For Sale In Great Towns

From the book No Smooshing!

For years, I’ve carried on a not-so-friendly debate with some of my artist friends from the West Coast about their ideas of what constitutes a good subject. We seem to be able to agree on certain things, like apples and oranges-and even certain landscapes. But when it comes to their paintings of dilapidated old farm buildings, we part company.

Some folks see rundown farmhouses and caved-in barns as romantic. Artists paint pictures of buildings with weathered boards, leaning at impossible angles-and people take those paintings home and hang them on their walls.

But for me, I see those same abandoned farmsteads as unspeakably sad. After all, each one of those boarded up farmhouses represents the death of someone’s hopes and dreams for the future of their children and themselves.

I get the same sad feeling whenever I pass through a small town that was once a thriving place, full of life and activity, but now sits empty and lifeless, slowly crumbling back into the black earth from which it sprang. Last week, I was lost on some back road (not an unusual situation for me) when I came across just such a ghost town.

There was no name that I could see, but there were three buildings, huddled next to each other against the prairie wind, and I could still make out some faded letters above their doors. The first one had been a general store, the second a garage, but it was the third building that captured my imagination. On its side was printed the word "Hotel."

Hotel? The word seemed so incongruous. After all, what could have been the attraction in this little town that would have warranted a hotel? There didn’t seem to be anything of interest in the area, and if any place in the world could have been said to be in the middle of nowhere, this little town was it!

And how did people get to this village in order to stay in this mysterious hotel? I saw no railroad tracks, and there’s only one road running through town.

The garage implied the town was still alive when cars came into general use, but cars have been around a long time, and that still didn’t explain the need for a hotel in a town with only two other buildings.

Perhaps that’s why my artist friends find old buildings and farmsteads so intriguing. There’s definitely a sense of mystery about them-stories that will never be known. On that much, we can agree. But no one can convince me those lonely scenes are picturesque.

I can hardly look at old towns like that without being overcome with a sadness that’s difficult to explain. What are the stories of those forlorn storefronts? Why did people come to that little town and stay in their little hotel? What about the rusty skeleton of a combine on the edge of town, its bones bleaching in the sun?

I don’t know, and I never will-and ghosts don’t talk. Just don’t try to tell me that such a scene is something I’d want to hang on my wall and look at every day.

So, it’s home hunting time. Where do you start? Who do you contact? Well, home hunting has been made much easier with the advent of the Internet. There are plenty of websites these days with huge numbers of real estate listings, which make the task of finding a home so much easier. You can now browse through home listings, compare prices, compare the specifics of each home before deciding on which home you wish to see. Not only do you save on a lot of time but you get to choose from among a variety of homes hence not missing out on any home you may regret not having seen earlier. In addition, you also stand to benefit when it comes to negotiating for your new home as you have access to details of other homes and their prices and these comparisons can be put forward to the home owner.

So where do you begin searching for a home? Which are the websites you should start with? Realtor.com is popular for its huge database of real estate listings by agents all over the country. However, you may want to check out a few “for sale by owner” websites first as homes being sold by owners may fetch you a better bargain, a much better bargain if you consider that owners have to shell out up to 6% of the final sale price in commissions. To name a few such websites, ChoiceOfHomes.com and ForSaleByOwner.com have a number of real estate listings of homes for sale by owner all over the country. So browse through these sites and hopefully you’ll find the home of your choice!

Happy Home Hunting!

Sameer S Panjwani is the CEO and Founder of http://www.choiceofhomes.com.

Home Hunting and the Internet

Buying a house can be a daunting task, even for someone who has owned several homes. My husband and I recently purchased our first home together, and it was hard to find good advice that we truly found useful. We had to learn a lot on our own, but at least now we feel comfortable and knowledgeable about the whole process. Here are some helpful hints we picked up along the way:

1. Use your online resources.

Almost every state and local government has a website where you can research real estate information. The data on home sales, taxes, and neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn’t have to rely on a real estate agent to get the data for us. Doing the research yourself will make you more knowledgeable about the market, which is key to making a good purchase.

2. Be realistic about how much you can spend.

Try to buy a home in a price range that allows you to put down 20%. If you put down less than this, you will have to pay PMI (private mortgage insurance) to protect the lender in case you default on the loan. I know that 20% is a lot, but it’s not unrealistic. You may not be able to do it on your first home, but hopefully you can on your second home. The profits from the sale of my condo enabled my husband and me to have more than enough for the 20% down payment on our home. But we didn’t put it all down on the home – we saved some of the profits for the unexpected expenses that come with buying a home. We suggest that you do the same.

3. Shop for a home in the winter, preferably around the holidays.

Since most people just aren’t interested in buying a home whenthey are trying to deal with the holidays, you can pretty much be one of the few buyers out there. We bought our home right before Christmas, and it was definitely a buyers market. We had our pick of homes and were able to underbid on the asking price, even though we live in one of the hottest real estate markets in the country.

4. Use a smaller mortgage company that can offer personal service.

People tend to go with large, well-known mortgage companies, since that’s all they know. But the smaller, regional companies provide excellent customer service, and can often give you better rates than the big companies. Since they don’t advertise and instead rely on word-of-mouth, they have to be good in order to get your service. We started off with a big-name company, but in the end, we went with a regional company because they had better rates and better customer service.

5. Always have a home inspection.

I think most people know this fact already, but it is really important in areas with a hot real estate market. It can be easy to get caught up in bidding wars, and to want to get a house at all costs. Some friends of ours wanted a house so badly that not only did they overbid, but they also waived the home inspection. They got the house – and right along with it they got several thousand dollars worth of damage that would have been found in an inspection.

As a final note, try to remember that buying a home doesn’t haveto be scary. It’s very exciting to own your own home, so think ofall the good things that will come once you have made it through the home-buying process. If you follow the advice above, then you should be well-equipped to make it through unscathed.

Rachel Greenberg has a background in business and finance, and she received her MBA from Duke University. She writes fun and informative pieces for her website http://www.bargainfamily.com – which she created with her husband Lee. The website provides advice and recommendations for families on various products and services for their homes, lives, and businesses.

Helpful Hints for First-Time Home Buyers

Buyers, borrower, closing costs can be divided into two categories. Nonrecurring closing cost and recurring closing cost.

Nonrecurring closing costs on a one-time charge paid upon the close of escrow. Recruiting closing costs are peeping items that the buyer pays advance to help offset expenses that will continue as long as the but it only to property.

Nonrecurring closing cost usually paid by the buyer.

1. Loan ordination fee. A fee charged by a lender to cover the expenses of processing a loan. The fee is usually coded as a percentage of the loan amount

2. Appraisal fee. A fee charged by an appraiser for giving an estimate for property value. The fee for simple appraisal will vary throughout the state, with $350 or more being a typical charge for a single-family residence. Appraisal fees for income properties such as apartments or off his buildings are higher.

3. Credit report fee. Before a lender grants a loan to borrowers credits is checked. Each lender, broker charges different amounts for a credit report.

4. Pest control inspection fee. A fee charged by a licensed inspector who checks for termites, fungus, pests, and other items that might cost structural damage.

5. Tax service fee. A fee paid to a tax service company that, for the life of the loan, each you can review the tax collectors records. If a borrower fails to pay the property taxes, the tax service company reported this to the lender, who can take steps to protect the loan against a tax foreclosure sale.

6. Recording fees. This covers the cost of recording the deep, deep of trust, and other buyer related documents.

7. Notary fees. Signatures on documents to be recorded must be notarized.

8. Assumption fee. A fee paid to a lender if the buyer assumes the loan, that is, buyer agrees to take over and continue to pay the seller’s existing loan.

9.Title and escrow fees.

Recurring closing cost usually paid by the buyer.

1. Hazard insurance. A1-year premium for insurance against fire, storm, and other risks. The minimum coverage is the amount of the real estate loan, but buyers are advised to purchase a great amounts if they make large down payment toward the purchase price.

2. The proration. If the seller has prepaid the taxes, the buyer reimburses the seller for the prepaid portion.

3. Tax and insurance reserves. This is also known as an impound account or trust account. If a borrower’s monthly loan payment is to include taxes and insurance, as well as principal and interest, the lender that sets up a reserve account. Depending upon the time of the year a lender or the one the borrower to prepay 1-6 months of taxes and insurance premiums in today’s reserve account. Once an reserve account is established, tax and insurance bills are forwarded to the lender for payment.

4. Interest due before the first loan payment.

Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more: info @ 1LoansUSA .com

Buyers Closing Cost

A big debate these days is whether or not to buy a house, or buy a condo. Most of this debate comes from a lack of understanding about condos, and what they are. Hopefully, the following information will prove to be helpful.

When Buying a condo, are you a tenant?

No. That simply isn’t true. When you buy a condo, you are buying a part of the corporation, and are thus an equal owner. It is true that you can be forced to move, if you are really disturbing the other owners, or causing problems. But this is true of residential homes as well. If your neighbors complain repeatedly about smell, health concerns, or criminal behavior, then you may be forced to move. The same holds true in condos and houses alike.

The board can force you to pay thousands of dollars arbitrarily, and without notice.

At first glance, this may appear to be true. But keep in mind that the condo association is made up of owners who have the same goal as you? Having a comfortable place to live that is building equity. The members of the condo association do not make any money from their positions. They are owners like yourself, who are volunteering their time. There can, however, be “special levy’s” brought about by unexpected maintenance in the building. The same holds true of a house as well; the expenses just come from a different place. Ask anyone who owns a house how much it cost them for their last furnace. Or how much they spent repairing the water leak, and replacing the shingles. The advantage in a condo association is that you share these costs with the other owners, and are forced to save money in advance for these repairs, through the reserve fund.

Condo fees cost too much each month!

Again, not necessarily true. If you were to add up the amount of money that a family spends over 5 years on the maintenance of their house, you’ll usually notice that it equals more than 5 years worth of condo fees. Also, many condo associations pay for their monthly expenses as a group. Heat, water, insurance, and maintenance are examples of such expenses. By purchasing as a group, they can often get these services at a lower rate than a single home owner can.

I could never live in such close quarters

That’s probably true. Condos aren’t for everyone. Every person has to make their own decision, based upon their own lifestyle; now and in the future. If you have 3 large dogs, 3.5 children, and 4 cars? a condo probably isn’t for you. But, if you’re a single young executive who works 80 hours a week, or you’re retired and travel most of the year, then perhaps a condo is the right choice for you. Only you can make that decision, as it is a lifestyle choice. Here are some factors to consider in your decision.