A Guide To Smart Home Buying: Part 2

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home buying

In previous blog post, we discussed some tips for smart home buying. But that was only the beginning. If you’ve already gotten your cash together and searched for a home, it is now time to purchase the home of your dreams. This may seem simple, but there are quite a few steps left in the process. Here is a continuation, starting at step 6, of the step-by-step guide to buying a home:

6) Make an offer on the home
After you find the house you want, you’ll want to make your bid quickly. You’ll want to get advice from your buyer’s broker, if you are working with one, to figure out the initial offer. If you’re working with a seller’s agent, you will need to figure out your offer strategy on your own. Find the data on at least three houses that have recently sold in the surrounding neighborhood. Generally speaking, do not make a bid that snubs the seller. This may lead the seller to give up due to sheer annoyance. The amount of leverage a buyer has depends on the market’s pace. You have a lot of control in a slow market, but in a hot market, you have almost none at all. It will probably take some creativity to satisfy the needs of the seller. For example, you can ask the seller to throw in some of the appliances if you meet his or her price.

7) Enter a contract
After reaching a price that both the buyer and seller can agree on, the seller’s agent will draw up an offer to purchase. Run this document by your lawyer and buyer’s agent in order to make sure that:

  1. You will obtain a mortgage.
  2. The home was inspected and has no significant defects.
  3. It has been guaranteed that you can conduct a walk-through inspection 24 hours before closing.

You are required to make a good-faith deposit which will typically go into an escrow account. This is typically 1% to 10% of the purchase price. After the deal has closed, the seller will receive this money.

8) Secure a loan
You will now have to call your mortgage broker or lender in order to agree on terms. You will decide whether to choose a fixed rate or adjustable rate mortgage. You will also have to decide whether to pay point. At this point, you should expect to pay $50 to $75 for a credit check, as well as an extra $150 on average for an appraisal of the home. The appraisal price could, however, be anywhere up to $300. The majority of other fees will be due at the time of the closing of the house.

9) Get an inspection
The mortgage lender will make an appraisal of our home, but it is also a good idea to hire your own home inspector. On average, an inspection costs around $300, but big jobs can cost up to $1,000. An inspection takes two hours or more. You should ask to be present during your inspection. This way, you can learn a lot about your house, such as its overall condition, wiring, construction material, and heating. If the inspector finds significant problems, such as a roof that needs replacement, you should ask your agent or lawyer to discuss this with the seller. The seller should either repair the problem before you move in, or deduct the cost of the repair from the home’s final price. If the seller does not agree to do either of these things, you may walk away from the deal without penalty as long as you have a properly written contract.

10) Close the deal
Approximately two days before the closing of the house, you will receive a final HUD Settlement Statement from your lender. This will list every charge you will have to pay at closing. It is important to review this document carefully. It will include important information such as the cost of the title insurance. This is the insurance that protects you and the lender from any claims people may make regarding who owns the property. The cost of this insurance is typically less than 1% of the home’s price, through it varies a good deal from state to state. You may also need to establish an escrow account. The lender can tap this account if you fall behind on your property tax payments, or on your mortgage. The closing itself will not have any surprises, but you should ask your real estate agent or your lawyer to brief you on the specifics.

Buying a home doesn’t have to be overwhelming and confusing. If you follow this step-by-step guide, you will be on your way to buying the home of your dreams in the smartest way possible. Happy home buying!

A Guide To Smart Home Buying: Part 1

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home buying

Buying a home can feel overwhelming. You know you want to purchase a home but there are so many steps to the process that you may not know where to start. How will you decide on a good budget? How will you find the right realtor? And most importantly, how will you find the perfect home for you? Buying a home takes a lot of preparation and careful thought. Here is a step-by-step guide to buying a home:

1)Look into your credit
There are three major credit agencies: Equifax, Experian, and TransUnion. These agencies keep credit reports, which indicate whether you have ever run into any serious issues with credit and whether you tend to be late with payments. Credit scores are calculated from a formula based on the information found in your credit report. Each person has three different credit scores, one to correspond with each of the person’s credit reports. If you have a low credit score, you may struggle to get a good interest rate, or to get any financing at all. If you find any errors in your credit report, make sure you contact the agencies directly and correct the mistakes. This can take two or three months to resolve.

2) Set your budget
Once you’ve got your credit score figured out, it’s time to figure out how much you can spend on a house. A good starting point is using an online calculator. While these calculators are helpful, you will get a more accurate figure by asking to be pre-approved by a lender. This lender will assess was kind of loan is right for you by looking at your debt, income, and credit. If you are looking for a rule of thumb, you can multiply your gross annual salary by 2.5 and use that number as a guideline for the cost of your home. In addition, all of your monthly home payment should be no more than 36% of your gross monthly income. You will also need to take into account the size of your down payment.

3) Get some cash ready
For your down payment and your closing costs, you’ll need to come up with some cash. Lenders typically see a down payment as 20% of a home’s price. If you are able to put down more than 20%, your lender may approve a larger loan. If you don’t have 20%, you will need to search for loans that will help you. Low down payment mortgages can be provided through a number of private and public agencies, such as Freddie Mac, Fannie Mae, the Department of Veterans Affairs, and the Federal Housing Administration. If you qualify for these mortgages, it is possible that you will only have to pay 3% up front.

However, if you have a down payment lower than 20% you will probably need to pay for private mortgage insurance, which is essentially a safety net that protects the bank in case you do not make your payments. With private mortgage insurance, about 0.5% of the total loan amount will be added to your mortgage payments for the year.

So you’ve considered the down payment. But you still need to make sure you have enough cash to cover fees and closing costs. This includes loan fees, inspection fees, the appraisals fee, attorney’s fees, and the cost of a title search. This may add up to a sum of more than $10,000, and it will often make up 5% of the mortgage amount.

If you don’t have enough cash available to cover these needs, there are many options available to you. If you have a first time homebuyer, you can withdraw up to $10,000 from an Individual Retirement Account if you have one. There is no penalty, but you need to pay taxes on the amount. Another option is receiving a cash gift of up to $14,000 per year from each of your parents. There is no gift tax.

You could also figure out whether your employer can help, especially if you work at a big company. Many big companies will help contribute to a down payment or help an employee get a low-interest loan from certain lenders. Another option is tapping a 401(k) or similar retirement plan so you can get a loan from yourself.

4. Get an agent

The majority of home sellers list their homes via an agent. Those agents, however, work for the seller rather than the buyer. They are paid according to a percentage of the purchase price, typically 5 to 7%, so usually they will try to get you to pay more. When you need in an “exclusive buyer agent.” These agents are either paid directly by you, on an hourly or contracted fee, and other times the commission that the seller’s agent gets upon sale is split. A buyer’s agent will have allegiance only to you.

5. Look for a home.

The first part of looking for a home is figuring out what city or neighborhood you would like to live in. When searching neighborhoods, you should look for indications of economic vitality. This includes low unemployment, good incomes, and a mixture of young families and older couples. Whether you have children or not, you will want to pay attention to districts that have good schools. When the time comes that you will want to resell the property, living in an area with a good school system will allow your home to keep its good value.

It’s also a good idea to figure out the real estate market in the area. If homes in the area are selling near or even higher than the asking price, this means that the area is desirable. Doing your house hunt in the colder months of the year is a smart plan if it is possible. This is the “off season” for housing hunting, and you will have less competition, meaning that sellers are more likely to negotiate with you.

Just make sure your search criteria aren’t too restrictive. Make sure your price range is 10% above and 10% below your true range. In terms of location, search in a 10-mile radius of the location you specify.

These tips will help you to buy a the right home for you. Stay tuned for part 2 of the guide to smart home buying.

 

Three Tips For Buying and Developing Raw Land

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raw land

Buying raw land can be a very fulfilling experience. Seeing that a piece of nature is now yours not only fills you with pride, but provides with you a number of other benefits. Buying raw land is a very smart move financially. All across the country, especially in rural areas with small populations, reasonably priced raw land parcels are available for purchase. And it’s a pretty good investment! If you buy the right parcel of raw land, it will continue to appreciate. You won’t have the stress of a fluctuating investment that you experience when purchasing stocks.

There is also a lot of earning potential that comes with developing your land. It can be a house, a hotel, farmland or a recreational facility. By developing your raw land, you can increase the value of your land by three to five times its original price. But this can only happen if you buy the right parcel and develop it properly. Here are a few tips for buying and developing raw land.

1) Be aware of the drawbacks

Investing in raw land can be of enormous benefit, but it also has its drawbacks. It is not possible to depreciate raw land, and while there are some tax advantages associated with raw land, these advantages are few and far between. Another important thing to remember is that any purchaser of raw land needs to be in it for the long haul. Even if you start developing it once you buy it, it may take a long time for you to gain any profits. You aren’t likely to be able to sell it quickly. And if you do eventually sell it, there is a risk of losing money, which increases if you do not fully evaluate the parcel before purchasing it.

2) Thoroughly investigate the land parcel.

Before you purchase raw land, make sure you get all of the information you can about the land parcel. Walk through your potential land purchase in order to locate ponds, trails, fence lines, and streams. It is also a great idea to take photos of the property to refresh your memory later. Make sure to find the boundaries of your property and to look for any signs of hazardous waste. It’s also crucial that you research the area that the land parcel is located in. Speak with regional development agencies to get any information you can about planned roads, building costs, utility extensions, or development forecasts. Research whether the population is growing or shrinking. The more information you gather about the land, the more likely you are to make the right decision. And you’ll be spared a number of negative surprises in the future.

3) Consider the factors that affect value

When you buy a parcel of raw land, you hope that this will ultimately bring you profits. One way to gain a profit from your land is to sell it after developing it. While the value of your land may partially depend on the way you develop it, it also has to do with other factors. One of these factors is the shape of the parcel. Make sure to view the dimensions of the property that you are considering. Another aspect that affects value is of course the location. The best parcels for development are corner lots with easy access to roads and parking. Also to be considered is the level of access to sewers, natural gas, telephone service, drinking water and electricity. Trees and streams can add a good deal of value to land as well. Making sure that your land has good value is extremely important.

Buying raw land is a big decision that involves a certain level of risk. It could either be very lucrative or it could flop. Make sure you take all aspects of a land parcel into account before purchasing. If you do your research, your raw land development endeavors will be a huge success!

3 Reasons To Consider Selling Land At An Auction

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land development

 

Many of us tend to shy away from property auctions. Our fear that these properties need repair or will be unkempt is not always the case.  Auctions can also be a great way to sell well keptproperties and lots. Below are a few things we should contemplate when it comes to selling land at an auction:

Cost

Land auctions make an opposition among purchasers and wipe out the issue of valuing too high or too low. A base offer can be set to begin the procedure, however the high offer might very much surpass the value set for a customary deal contingent upon the quantity of bidders and their eagerness. In a general auction process, estimating too high can bring about the listing of a property to mull; offering your property at a low price will not allow you to achieve maximum price potential.

Target Date

Land auctions cement the time span for the business process. You determine the date for the auction and terms for the deal (frequently 30 days). Whether you’ve been attempting to offer your property for quite a while or are burnt out on conveying the expenses, an auction might give the specific timing that you need. Instability is a standout amongst the most disappointing parts of selling land and auctions eradicate a bit of that vagueness.

The art of negotiation

Land auctions permit the seller to set the terms of offer from the beginning and dispose of the bother of negotiations. You’ve effectively secured the of date of the deal, now you likewise can set the time span for the closing. Buyers go to the deal the with intent of purchasing on your terms and hence straying from the bother of negotiations, which at times gets to be passionate and disappoints both buyers and sellers.

Thanks for reading!

Carter Boehm

 

Best Apps for Project Management

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apps blog

In this age of modern technology there is an app for almost everything. I stumbled upon a few apps in recent weeks that will make life easier for any project manager. Whether your goal is to boost your client submissions to a new heights, obtain more information regarding construction, or simply assist you with the management of your projects, these inexpensive apps will help your day run a little smoother.

Apps for impending projects

iTopoMaps

Price: $7.99
This apps enables developers to use topographic mapping capabilities to evaluate possible properties while choosing a new development

Geo Elevation
Price: $1.99
In conjunction with the topographic perspective of property, Geo Elevation will help you to to see an over area height diagram to truly figure out the adjustment in rise on a homesite. This app produces your present elevation readings, or gives you a chance to enter indicated figures, so you can print cross-segment diagrams utilizing either focuses from the field or particular shape lines from a topographic guide. With this device you can assess whether you can simply do secondary sitework, or possibly have to take a gander at the walkout storm cellar alternatives.

Planimeter
Price: 4.99
This App measures space and land regions on maps in light of satellite representation, so you can design plot lot lines on your phone or Tablet. You additionally can utilize this device to evaluate the measure of material that is required for work.

Easy Measure
Free
Presently homebuilders can utilize their Smartphone camera to take a wide range of estimations in the field. With Easy Measure you can decide estimated plot lines by measuring from your area to a tree or other point of interest. You can use this App to quantify measurements of rooms or assembling foot shaped impressions for existing homes.

North Carolina’s Airport Development Study

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North Carolina’s Airport Development Study

 CharlotteDouglasParkingDeck_4_300

 

Charlotte Douglas International Airport received its present name in 1982 and is the second biggest center point for American Airlines after Dallas/Fort Worth International Airport, with administration to 175 residential and universal destinations. This airport is continuing to develop and needs to make another all-inclusive strategy to guide future advancement on the area encompassing the air terminal.

Charlotte Douglas is encompassed by extensive tracts of undeveloped area, particularly toward the west and north, and the city would like to support more improvement in those tracts. In an effort to assist with development, Charlotte City Council voted in favor of spending $900,000 worth of air terminal assets for an expert to concentrate on the range and suggest best uses for the area.

The airports lead development director, Stuart Hair, will lead the study along with MXD Development. The MXD Firm has previously made ground-breaking strategies for other air terminals and its experts will concentrate on recognizing perfect utilizations for the 20 square miles of area surrounding the freely subsidized Charlotte Douglas.The area between the airport and Catawba River has been surveyed by engineers and although it is for the most part lush and undeveloped, it offers a percentage of the biggest tracts of empty area in Mecklenburg County.

The hefty price tag came as a shock to many. Questions of whether or not nearly a million dollars was absolutely necessary to investigate how to develop the airport have been raised. Those in opposition of the study believe engineers only need proper market conditions instead of creating a master approach. However, those in favor of the development plan argue that because of the extent of the study range, broad effort and gatherings that are arranged by the specialists make the study a worthy investment.

 

The Micro Apartment Phenomena

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The Micro Apartment Phenomena

 micro apts 2

 

A micro-apartment, otherwise called a microflat, is a one-room, independent living space and is intended to suit a sitting space, washroom, resting space, and kitchenette with a size of 4-10 square meters. Now and again, inhabitants might likewise have admittance to a public restroom/shower, shared kitchen, porches and rooftop gardens.

The micro-apartments are frequently intended for draw down beds or futons, collapsing tables and work areas, and additional small apparatuses. An expansive 344-square-foot micro-apartment with sliding dividers joined to the tracks by the roof has been outlined by an engineer in Hong Kong, Gary Chang. By moving the dividers around, utilizing assembled as a part of collapsing furniture and workshops, he can change the space into 24 distinct rooms, including a pantry, kitchen, library, bar, computer game room, and lounge area. 

These apartments are popping up everywhere. Micro-housing is sensible in areas with high property values, supportive infrastructure for development, accessible public transportation, stable economies, walkable neighborhoods, and cities that are have fair to high density. The ever growing community of micro-housing is a new phenomenon in development. Below are few of the reasons why:  

 

The American Dream Deferred

Owning a home with a white picket fence is slowly falling off the list of goals for many people. There is no longer a desire to have a big space in the suburbs. Instead, many are holding off on getting married and having kids to remain in a smaller residence with easy access to city life.

Less Driving, More Walking

Living near city life means driving is not a necessity. Unlike many suburban areas, city life does not require a vehicle, which ultimately eliminate the task of looking for a parking spot after a long day of work.

Same City, Cheaper Apartment
Micro-apartments offer residence in cities that would almost be unaffordable for most. Many one-bedroom city apartments can be very expensive and for budget conscious renters, this makes living in the location of their dreams nearly impossible. Nearly. Micro-apartments cost hundreds of dollars less than average sized apartments to rent monthly.

Oakland : The Rise of America’s Most Underrated City

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Carter Boehm discusses Oakland's resurging development

 

 

When people think of the Bay Area, the automatically think San Francisco, the Bay Bridge and Oakland. Things are rapidly changing in this regard. With increasing job growth leading up to 25 percent from 1990 to 2014, according to the California Center for Jobs and the Economy, due to boom in the technology sector, and a rising number of startup ecosystems in the area, Oakland is benefiting from San Francisco’s prosperity. And with 50 percent lower rates, the city has become a hotbed for San Francisco workers who can no longer afford to live in the city. Oakland, has become an alternative location for small business and startups in the area.

This development does not come without its challenges. With a soaring crime rate, and a listing as one of America’s most dangerous cities, there is still a reluctance in the development of housing. Critics believe that the growing demand for housing can trump this. Oakland’s building costs are 30 percent lower than San Francisco, and with a tremendous amount of construction in the area, more than 1,000 residences with affordable housing will increase in the area. One company named Lane Partners is an example of the development parties looking to develop housing properties in Oakland. The project – “ A great hope for Oakland” , offers edgy architecture that is attractive to technology and solar energy companies. This developer hopes to attract high rent in the area could boost overall office space sale. Lane partners has been on the forefront of developing tech space throughout the bay area and Silicon Valley for many years, so it is no surprise that Oakland was in the direction of its expansion.

Oakland’s beauty lies in its positioning as the city as a great regional hub, reachable by air, BART or train, and with less expensive accommodation than San Francisco people can explore the joys of the Bay Area without the security of affordable housing.

As more conversions take place other development companies based in the area also look to Oakland and East Oakland’s waterfront on both sides of the Jack London Square, as a new development prospect. Oakland based Signature Development recently completed an infrastructure known as “The Hive”. The Hive is a mixed use project that transformed a city block of historic structures near the 19th Street Bart Station and retail uses, plus 105 residential units.

Another renaissance it seems, is coming to Oakland. As resident weigh in on the boom in Oakland, it seems that tensions are rising with Oakland natives hoping that the city would not be be exploited commercially like her neighbor next door.

To learn more about the development boom in Oakland, visit this article by the Urban Land Institute

Urban Design: The Importance of Vibrancy in Downtown Centers

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Downtown centers of your favorite cities are not arbitrary placements on the map.   Aside from the obvious tangible aspects of your favorite downtown locations which offer: places to live, shopping, dining and other forms of entertainment, downtowns are created for one very important reason- vibrancy.

Before we explore vibrancy, these questions may come to mind- what is involved in the makings of a downtown center? What makes a downtown area more livable? These are the questions urban planners and designers attempt to answer. Some of the best downtown locations in the United States are vibrant not only because of their strategic planning, but also the mingling and engagement this planning introduces into a city.

What is vibrancy and why does it matter?

A Vibrant downtown center is one that offers social interaction and engagement to its residents. Most city planners describe a vibrant center as an environment which is walkable, liveable and offers the residents an opportunity to play.

View of downtown Denver, Colorado

To put this in further perspective, a well designed downtown center offers what Emily Talen in her 2012 book City Rules: How regulations Affect Urban Form describes as: “Good urbanism that covers generic features of vibrant places quite well”.  Talen further explains a well designed downtown center as a, “compact urban form that encourages pedestrian activity and minimizes environmental degradation; encourages social, economic, and land use diversity; . . . connects uses and functions; has a quality public realm that provides opportunities for interaction and exchange; offers equitable access to goods, services, and facilities; and protects environmental and human health.

One important feature of a vibrant downtown center is walkability.  Another important feature of a vibrant center is the installation and development of parks, waterfronts and places for play. These places have an impact on the vibrancy of a downtown area because they increase the opportunities for interaction between residents. Planners and designers also see an increase in vibrancy when an area features historical or cultural landmarks.

If vibrancy is so important to the growth and sustainability of our downtown regions, how can the state and planning bodies promote vibrancy to add to make the lives of residents sustainable?

Here are some examples of the ways we can promote vibrancy:

Encouraging the development of higher-density housing in urban and suburban neighborhoods.

Most people adhere to the increase in higher-density option due to the consequential increase in property value, higher rent, and an increase in tax base.

Gentrification of lower income neighborhoods is also common fear when considering this option. To create a positive living environment for residents, it is also important to provide sustainable housing for low income residents who work in customer service or labor jobs, because their proximity to the city job market is important in driving revenue and developing the workforce. This can be enforced through inclusionary zoning laws and density bonuses .

Staying away from suburban development prototypes.

Suburban prototypes imposed on urban centers have been linked to a decrease in urban density, which as mentioned above is a possible key to vibrancy. Placing more importance on walkability, planners need to veer away from designing adjacent surface parking, drive-through lanes, lack of sidewalks in downtown areas,  if they aim to build a city which is walkable and subsequently vibrant.

To learn more about Vibrancy in downtown areas, visit the this article on Urban land Magzine

Utah Residents Vote On State Land Preservation

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The use of public land and how it can be preserved is often up for debate in the public in states like Utah and Montana where much of the land is still relatively en masse and unused by the public or private ventures.

Recently, in Utah, many Utahans are seeking a different approach to how land in the state is being used. In a survey taken by 53,000,  Utahans were prompted on what they envisioned for Utah’s future on topics ranging from education, agriculture to housing and the use of public lands.

The survey aimed to understand Utahans needs and hopes for the future. As a state housing 3 million residents, Utah’s numbers are set to increase to a 5.4 million residents by the year 2050. The state is now taking measures to ensure that Utah is a place people will envision for possible residency in the future. The question remains, how will land be used in the future? And will this land be developed sustainably?

Aerial of Salt Lake City, Utah

In describing the aptly named survey “Your Utah, Your Future”, Director Kathleen Clarke, director of Utah’s Public Land’s policy Coordinating Office, commented on the results, saying “Utahans recognize a need for energy. But I think they are saying we need to be thoughtful about development and about uses. We need to pay particular attention to watersheds.”

As Utahans voice their concerns on land development and preservation, the state government is following up with results on the survey, which indicated that 54 percent of Utahans want public lands managed to maintain and improve ecosystems and watersheds. Utahans also want their state government to focus on providing recreational access and foster jobs and economic development.

Landscape view of Moab, Utah

The preservation of public land for conservation reasons is also a primary finding in the survey. 29 percent of survey takers would like more Utah land to be set aside for preservation, with envisioned focus on energy development and the grazing of livestock.

Differing opinions also persist in the use of Utah’s land. 11 percent of the survey takers insisted on the use of more land for energy development and livestock grazing.

Land preservation continues to play an important role in public discourse as water shortages and inefficient conservation methods plague land development initiatives in the United States. It is important to note that preserving contiguous natural lands is important to sustain the environment.

To learn more about the Utahn Survey on land preservation, click here