Buying a home is a big move. It leads to a series of things to think about. 

One of them is whether you want to live in a condo or a single unit family house? Each choice comes with their own set of advantages and disadvantages. Only you can determine what’s best for you.

Michelle and Kevin Millsom, 31 and 36, is a newlywed couple living in Boston. Choosing to live in a penthouse apartment was the best thing for them. They don’t have any children, both have high-powered financial careers, and they love the excitement that the city had to offer.

“We enjoy everything the city has to offer—the restaurants, theatre, outdoor concerts. We walk everywhere and find the easy access to the airport to be a plus since we travel frequently for work,” said Kevin. “When we have children, we may think about a house in the suburbs, but for now this is where we want to be.”

They wanted to be at the heart of the city. So they bought a penthouse apartment overlooking Boston’s famous esplanade and Charles River.

Sounds to good to be true? As with all things, it also comes with its own share of disadvantages. They live in a two-bedroom/two-bath condo that costs way more than a home three times the size of their condo. And it’s just 20 minutes away. They share the building with fourteen other tenants which means that decision-making  with regards to the building need to be consulted with them. They also need to pay $300 per month for a parking spot for a car which they seldom use because of the convenience of their location. To most people the cost may sound unreasonable. But to Kevin and Michelle, who appreciate the convenience and the good location, the cost is all worth it.

Condo living is not for everyone. Adriana Forte, 62, chose to live in a “condex,” (a two-family home with a shared wall) in the Boston suburb of Arlington. After her divorce she chose to live in a condex thinking that taking care of a home will be too much to handle. However it turned out to be a wrong decision. “It’s difficult to live with neighbors so close,” Forte said. “First there was the noise. My neighbors are night people, and every night they are just getting geared up when I’m trying to sleep. Then I found myself handling 100 percent of the finances and maintenance of the duplex—without compensation. I may as well be living in my own house!”

She missed out on a lot of things that a single-family house can offer – fresh air and private outdoor space. Forte loves maintaining a home and a garden.

Consider these things to help you decide what is most important to you.

• Location – Where do you want to live? Are both the condo and house in the same area?
• Privacy – Are you comfortable about living closely with neighbors? How much do you value your privacy?
• Responsibility – Do you want to have full control over decision-makings for your home? Or do you want to share that responsibility with other neighbors?
• Maintenance – Do you enjoy taking of your home and garden? Or are you the type who is just not into plants?
• Budget – How much can you afford? A condo might be more reachable right now.

Life is dynamic. People change and situations change. Whatever you decide now, can still be changed to suit your current lifestyle and preferences.  

When you think about buying a home, one of the first questions that come to mind is whether you buy an old house or a new one. A new house may be attractive because everything is new. Nothing has been used yet. The walls are clean, the closets have never been used before, they come with energy-efficient appliances and you won’t have to spend on repairs because of wear and tear. On the other hand, you may fall in love with traditional look and feel of an old house.

When you’re at a crossroad, these points can help you decide:

Old homes

• Neighborhood.
  Some people prefer a home in an established neighborhood. Another plus factor are the full-grown trees and mature landscaping you can’t get from brand new houses.
• Maintenance and repair.
  Existing homes need to be inspected by a proffesional home inspector. There might be existing damage or potential problems that will costly to repair or maintain. Old appliances may need to be replaced. All this needs to be considered in the purchase price.
• Home improvement.
  If you’re into home improvement projects, an older house present opportunities to put your DIY (do-ityourself) skills to action.
• Freebies.
  Existing houses come with features, furnitures and appliances that are already there. You can consider them freebies.
• Land.
• Location.
  Older homes are situated in or near business centers. But newer houses are usually in far suburbs.
• Opportunity to remodel.
  There are some homebuyers who are excited at the opportunity to customize an old home according to their liking.
• Price.
  In general, existing homes cost less than brand new ones.  Buyers can even get more for their money because of existing features that count as freebies – drapes, carpet, landscape.
• Track record.
  With an existing home, you’ll already have an idea of the property’s value based on how much it has appreciated or depreciated over the years.
• Tax savings.
  Existing houses have lower property tax rates (depending on your state). Plus you could save on local bonds associated with new development, such as schools, parks, or road or transportation improvements.
• Traditional layout.
  People who love classic, formal dining and living areas will love older homes.

Your success in the realty market lies in how well you negotiate. But negotiation is a complicated matter. All the parties involved want things to go their way. Given these conditions, how can you make things work for your favor? How does one become a succesful negotiator?

Based on experience, these five aspects determine a successful negotiation:

• What the market says

  Study the market. There will be times when it’s more favorable for buyers and there will be other times when it will lean towards sellers. The key is to strike when the time is favorable for your side. For example, as a buyer you are in a position to offer the seller a quick deal and you know that the seller is in a hurry to sell the property. Take it as an opportunity to make things work in your favor.

• Determine who has leverage

  If word has gotten out that the seller has gone bankrupt, you are in a position to make reasonable demands. On the other hand, if you know that the house is a hot item, expect many competition. Therefore, you are in no position to dictate the terms or ask for “extras”. The owner has the liberty to choose the buyer they want; usually to the highest bidder with the best terms.

• What are the details?

  What are the other costs (or savings) involved? Most people think that the price of the house is all there is to it. But in fact, there are other things to consider. For instance, Both house A and house B cost $275,000. However, house A is an older house that needs costly repairs. Plus the seller of house A agreed to pay  a portion of the closing costs. On the other hand, house B also costs the same. But cost of  necessary repairs will not be covered by the seller.

  Think about all the costs and savings involved and determine where you can get better value for your money.

• Financing

  All transactions involve money. Money affects negotiations in so many ways.

  Is the buyer pre-qualified or pre-approved by a lender? Finding your ideal house does not guarantee that financing will also be available. Your loan application can be denied because of several reasons; among them: appraisal problems, title issues, survey findings.

  One of the advantages of being pre-approved is that buyers already know how much they could afford. Sellers like buyers who are pre-qualified. They pose less risk to the seller. They won’t have to worry about waiting for the buyer to find a loan to seal the deal. Being pre-qualified means that you have the financial capacity to pay for the loan.

  Lower interest rates mean a broad market – a lot of potential buyers.

  Nowadays, downpayments are made easier. Now you can find loans with as low as 5% downpayment or even less. 100 percent financing or no downpayment plans is even an available option. 

• Broker expertise

  Brokers are now representing not only sellers but buyers as well. If you have competition, being represented by a reputable broker gives you an edge.

Looking for a new home is exciting and overwhelming. There are so many things and details to pay attention to. Focus on these five most important areas: electrical, foundation, plumbing, the attic, and landscaping. According to Don Walker, inspector and owner of Ace Home Inspections, these are the five areas in homes that he frequently reports problems with.

• Electrical

  Most people assume that if they buy a newer house, they won’t have electrical problems anytime soon. “I inspected a brand new house — four years old but the electrical was all done incorrectly,” says Walker. Through a complete home inspection, potential problems are detected early on.

• Foundation

  Walker said he inspected a four-year-old home that was already showing signs of major damage that is expected to cost you a lot of money in repairs. “It was a model home. What [the homeowners] did was plant trees for shade to make it look really nice, but they planted the wrong trees and they’re going to crack the foundation and it’s going to cut the property value down by $50,000,” says Walker.

  Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. “As you walk through the house, 21 feet in and 30 feet deep, there’s just too much root invasion and it’s going to ruin their tile,” explains Walker.

  He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, “which means the foundation is moving.”

  But not all cracks is an indication of a foundation problem. Walker said, “Most people don’t understand that there are natural cracks in a house. That’s why when we do an inspection report we have to look at it and say ‘Okay, this is a typical crack and this one is an untypical crack.”

• Plumbing

  According to Walker, is another area that poses a big concern yet often goes undetected. “Mold forms underneath sinks when people have a leak and they fix the pipe but they don’t take care of the mold,” says Walker. He said caulking the sink can help prevent mold. “That’s my number one thing I always find — bad sinks.”

  He says, “When you look at the sink, look behind it and most of the time you will discover a little crack. What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it’s in a perfect position to create mold.” When it’s dark and damp, it becomes a perfect breeding ground for molds.

• Attic

  Walker says, “You can tell everything about the house by the attic.” When you fix other parts of the house, you can already mask the problem. Take for example a wall damaged by leaks. You can have it fixed and repaint it to make it look new. But Walker says the attic is sort of the eyes to the soul of the home. “In the attic you can tell where all the damage has been.”

  “If you’re in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced,” says Walker. He adds, “You can tell if the roof is good because you can look right at the wood.”

• Landscaping

  “There should not be moisture or plants next to your house,” says Walker. He says there should be a 12 inch barrier between the landscape and the house. If not, the foundation might crack. If the landscape is too close to the home, when the plants are watered, the foundation and soil expand. And when the they’re not, the foundation dries up and shrinks which causes it to crack.

  Acquiring the money to pay for a house is not the only preparation you need to buy a house. Learn what you can about the house and how to take care of them. It will save you a alot of money in the near  future.

Finding your perfect home starts with searching for your kind of neighborhood.

What is so important with a good neighborhood? The environment you live in affects your lifestyle and quality of life for you and your family. You may want to live near a park so you and your kids can often walk there and they could play with other kids. Others want to live in a quiet suburb so after a hard day’s work they could retire to a relaxing home. For some a perfect neighborhood should be close to busy commercial districts where shopping and dining is convenient.

The search for a perfect neighborhood starts with driving around, especially in areas you’re not familiar with. Take note of neighborhoods that interest to you. Walk around to get a better feel. See if the houses are well-maintained.

If you have children, you might be looking for a safe, kid-friendly neighborhood. You’ll also want to think about these things:

• Are there good schools in the area?
• How is the crime rate?
• Are there grocery stores nearby?
• Is theproperty value likely to increase?

If you work with a realtor they should be able to tell youthings you want to know about the neighborhood you’re interested in.

• School

  Even if you don’t have children, there’s a good reason for living near a good school. Properties near a reputable school is more likely to appreciate in value. Years from now if you sell your house, you will be able to sell it at a high price in no time. Properties like this are attractive to buyers. If you want to know more information about the schools in the area you’re eyeing, you can conveniently do this online. You can just search for the zip code or geographical area and you’ll be able to find ratings for the school system as well as standardized test scores. You can also ask your realtor about the school/s. Or try talking to neighbors with children who go to the school. If you have kids the best thing to do to validate your research is to visit the school yourself or with the kids. And get the feel of the school.

• Crime Record

  This is a very important aspect you should look at. The good news is, you can easily find information online. There are websites where you can see statistics on crime and other relevant information. Homestore allows you to search for crime data and school information in the area you are searching for. Just enter the zip code or city you choose. The site can also give a comparison of crime rates between another area.

  You can also do these as you research:

  • Observe if the windows and doors of the houses in the neighborhood have bars.
  • Look out for graffiti and vandalism on walls and walkways.
  • Talk to neighbors.
  • Ask the police or sheriff’s office.
  • If you’re looking in town or in busy areas, nooise and traffic is expected.

Go beyond facts and figures. Don’t focus too much on the value of your investment. There other important factors to consider aside from this. Like the convenience it offers to work and school; its proximity to restaurants and shopping centers; or even just the relaxing feel it can give you and your family. But usually property value is a reflection of the area’s overall health. When you do your research find out as well how much property taxes have gone up over the past few years.

When you enter into the buying process, you will be commited despite all the uncertainties involved. By adding contingencies clauses in the contract, the buyer feels a sense of protection from the unknowns. Contingencies clauses state things that need to be met before closing the sale. 

• The protection buyers get from mortgage contingenciesThis is one of the most common contingency. It provides additional security for the buyer. This contingency states that the buyer will acquire a certain kind of mortgage at or below a certain interest rate for a particular amount of the purchase price (usually 80 percent) on or before a specific date before closing. If the buyer is unable to get a loan according to the terms stated on the contingency, he can withdraw from the contract and the earnest money will be given back to him.
• Protection for sellersThe security that comes with contingencies protects not only the buyer but the seller as well. If the buyer is unable to secure a loan but fails to inform the seller by the date agreed, the buyer is still obliged to buy the house with or without a loan. Depending on the contingency, the seller can also find a mortgage for the buyer. To provide more protection for the seller, they could do the following: set an earlier date for the deadline so the buyer can’t back out at the last minute; negotiate that a significant part of the earnest money will be forfeited if the buyer can’t get a loan by the deadline.
• Appraisal contingencyAppraisal contingencies work with mortgage contingencies. It can work in two ways: (1) If a buyer cannot get an appraisal that can cover the asking price, the buyer can back out of the sale; (2) If the buyer cannot acquire enough appraisal, the buyer can negotiate for a lower price. If the seller does not agree with it, the buyer can walk out of the sale.
• Inspection contingencyThis contingency allows the buyer time to inspect the house. Typically the time frame is 3-14 days. If the inspection reveal major problems with the house, the buyer can opt to back out.There are many other contingencies available like insurance contingencies or mold inspection contingencies. Common contingencies vary among states.Never disregard fine prints. Read them carefully and make sure you understand what you’re about to sign. The contract is legally binding. You can’t just change your mind once you sign it.