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Finding a Neighborhood That Supports Your Ideal Lifestyle

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | July 24th, 2019

With their second daughter packing off for college this fall, a couple in their early 50s hankered for a whole new lifestyle. Rather than downsize, they recently bought a 3,000-square-foot wood-and-brick house in a newly developing urban community that adjoins downtown Spokane, Washington.

What most motivated the couple to move from the traditional suburb where they'd lived for a couple of decades wasn't the glitzy features of their new house. Rather, it was all the amenities available in the new neighborhood.

"They wanted a whole new lifestyle. That meant a very walkable setting with hiker-biker trails, locally owned restaurants, coffee shops, a golf course and even a winery," explains Michael Crowley, who's affiliated with the National Association of Exclusive Buyer Agents (naeba.org).

Of course, what constitutes an appealing neighborhood varies widely among buyers. Besides top-rated schools, young families might wish for easy access to a neighborhood day care center. Foodies might want a gourmet grocery store or a farmer's market. Bibliophiles might want a nearby public library. And pet lovers might wish for a dog park.

"Nowadays, the common denominator for nearly all buyers is walkability. People don't want to be stuck in their cars all the time like they were in the old suburbs," Crowley says.

In an acknowledgment of the importance of neighborhood choice to buyers, Trulia (trulia.com), which tracks real estate markets all over the U.S., each year makes what it calls its "Neighborly Awards" to communities it rates as "the friendliest, most spirited and most dog- and kid-friendly."

"People take great pride in where they live. In fact, many buyers and renters say the neighborhood mattered just as much as the house when they were searching for a home," says Tim Correia, Trulia's senior vice president and general manager.

Here are a few pointers for buyers in search of an ideal neighborhood:

-- Screen for shopping convenience, among other factors.

An annual study published by the U.S. Bureau of Labor Statistics called the American Time Use Survey finds that adults are spending an increasing amount of time inside rather than outside their homes. One reason could be more home-based work schedules that allow telecommuting. But as the survey also shows, most families still purchase their groceries at stores rather than having them delivered.

"Obviously, food shopping remains a key activity for most people. Because of that, it's wonderful to have a supermarket in your immediate neighborhood," Crowley says.

Although buyers appreciate having a grocery store within walking distance, most continue to drive there anyway, given that groceries are heavy to carry. Yet proximity to a grocery store is still considered a key factor.

-- Search for a neighborhood with plenty of greenery.

Timothy Saeland, an Oregon-based real estate broker, says about a third of his home-buying clients are "outdoorsy people who want that country feeling in their surroundings." For them, trees and green space are more important than a lavish kitchen or opulent bathrooms.

If you relish outdoor activities -- or, at least, the tranquility of gazing out your window at a pristine landscape -- you'll want firm assurances that the green areas around the home you buy will stay that way.

Saeland recommends that buyers stop by the local Chamber of Commerce office to learn more about long-term plans for open areas near any residence they may purchase. "Obviously, you'd rather know before you buy a house that the rural land across the street will be packed with new houses in the not-too-distant future," he says.

-- Don't ignore statistics on crime in the area.

It's increasingly common for prospective buyers to contact local police before deciding whether to settle in to a particular neighborhood.

Saeland says police in smaller communities are especially helpful in pulling out maps to show the areas with the most reported crime. Moreover, police can tell you what types of crime are most common in a neighborhood -- data that many buyers find more clarifying than straight statistics taken off the internet without any context.

-- Keep in mind your personal interests, needs and aversions.

For most buyers, high-quality schools and a short commuting time to work top the list of community attributes that are particularly critical.

But beyond these positives, purchasers vary widely in the importance they attach to neighborhood features.

"With a tremendous number of two-income families now in the home-buying population, having a nearby elementary school with a high-quality after-school program is extremely important to the lifestyle of both working moms and dads," Saeland says.

Retirees often wish to position themselves close to a hospital or doctors' offices. And those with severe health issues may want special assurances that emergency medical services could reach them quickly.

Buyers also vary in terms of their displeasure with certain neighborhood attributes. For instance, some find it objectionable to live close to a church that draws many cars on Sunday mornings. Yet that doesn't bother others.

Purchasers differ in their tolerance for traffic. Though many would reject a home located on a main roadway, others are adamant that they must live on a dead-end street or on a cul-de-sac with scarcely any traffic at all.

"Remember that neighborhood factors that might drive some buyers wild with displeasure could make other people very, very happy," Crowley says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Tips for Bargain-Hunting Buyers

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | July 17th, 2019

The United States was supposed to be heading toward a buyer’s market for real estate in 2019. But many would-be homeowners are still confronting sticker shock, especially in popular metro areas.

“Only in deep suburban and rural areas are prices starting to drop, particularly in towns where factories are closing,” says Fred Meyer, a longtime Massachusetts-based real estate appraiser and broker.

Given the overall strength of the American economy and the continuing shortage of residential construction, home price gains continue to outpace wage increases in a number of coveted communities, according to Todd Teta, a senior official at Attom Data Solutions, a California-based firm that tracks housing markets throughout the country.

“Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation’s average wage earners,” according to Teta.

An analysis of housing affordability by Attom (attomdata.com) found that median home prices are not affordable for average wage earners in 353 of the 480 counties analyzed in its report. Even so, a minority of counties posted better affordability than a year ago.

Meyer urges wannabe purchasers to avoid despair about their odds of attaining homeownership, even if their target area is a pricey one. Rather than backing away, he recommends they take a strategic approach to finding a fair deal.

“Consider lowering your expectations in terms of home size and features,” Meyer says.

For example, you might consider a property with smaller bathrooms and a more diminutive kitchen than your ideal vision. Or you might accept a home without a garage.

Here are a few other pointers for income-tight buyers:

-- Focus on overpriced houses.

Merrill Ottwein, an Illinois-based broker with a long track record working with novice buyers, says some first-timers overlook an important reality in real estate. This is that buyers sometimes get the best deals on property that was priced too high in the beginning.

The trick is to be sure you’re among the first to know when the owners of a favorite property in your neighborhood of choice decide to take a significant price cut. Ottwein says buyers should tell their real estate agent to alert them immediately when this happens.

“That way you can swoop in before others do to try to negotiate a favorable deal, when the sellers are most willing to bargain,” Ottwein says.

-- Consider a dated-looking place.

The cash-flow-conscious buyer may want to consider a category of properties a notch above the fixer-upper. These are essentially well-kept houses; the electricity, plumbing and other systems work. But their owners, though conscientious in some respects, have neglected the interior decor. Hence, they may be forced to sell at a price that’s well below market value.

But Ottwein cautions against mistaking an out-of-fashion house for one with serious underlying issues -- what might better be termed a true fixer-upper.

He recommends a thorough inspection to determine whether a home has fundamental flaws, such as a failing air conditioning system or a bad roof. These are far more costly to fix than is an uninspiring decor.

-- Search for sellers who are highly motivated to deal with you.

In real estate, as in many transactions, time is money. Sellers who must move quickly, perhaps due to a marital breakup, job relocation or financial reversal, are obviously more likely to let their property go for a bargain price.

You needn’t pry or do anything sneaky to find out more about the motivations of owners of homes you are interested in. Often, sellers telegraph their intentions through online or print ads placed by their listing agent. Perhaps their ads will read: “Seller Motivated” or “Must Move Quickly.”

If the ads don’t reveal the sellers’ motivation, a few casual inquiries placed by your real estate agent to the listing agent could do so.

“It’s amazing how often listing agents will reveal the real motivations of their clients, even when it’s against their clients’ interest to do so,” Ottwein says.

Once you grasp the sellers’ motivation and their timing, you can customize your contract offer in keeping with their specific needs. As Ottwein notes, flexible buyers -- who’ve also been fully preapproved for a mortgage and have the necessary documentation in order -- are the most likely to command the sellers’ attention.

“The obvious truth is that highly motivated sellers are much more open to both offers and counteroffers. Often, it’s just a simple matter of timing,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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The First-Time Buying Jitters

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | July 10th, 2019

She was a medical researcher for a Maryland hospital who hankered to finally leave the noisy apartment building where she and her husband had lived for more than five years. Once they hit their early 30s, she figured it was time for them to buy their first home.

Ashley Richardson, the real estate agent the couple had engaged to help them find their first home, showed the pair 15 townhouses that met their search criteria. The last one they toured -- a fully renovated property in a historic city neighborhood -- was a thrilling find for the researcher.

But in the end, the researcher’s husband refused to go forward with any home purchase, and the couple decided to stay in their rental unit indefinitely.

“He was afraid of the commitment involved in buying a home,” says Richardson, who’s sold property since 1993 and works for the Long & Foster realty firm.

Nowadays, she says it’s surprisingly common for would-be first-time buyers to back away from a purchase, though in many cases their withdrawal occurs at a later stage than it did for the researcher and her husband. Often, people back out after a home inspector checks out a house they plan to buy and finds faults.

There are, of course, many reasons why those who intend to buy their first home exit the process prematurely. In some cases, they fear the financial commitment, recalling how many Americans lost their homes to foreclosure during the Great Recession.

Here are a few common fears that afflict buyers and how to overcome them:

-- Fear of exposing a blemished credit history to a mortgage lender.

Sid Davis, a real estate broker and author of “A Survival Guide to Buying a Home,” says many wannabe homeowners worry how their credit histories will be viewed by mortgage lenders. But he says most such anxieties are usually baseless.

Mortgage pre-approval, which lets buyers assess their borrowing capability before they head out to shop for a property -- is now easily obtained over the phone. Even so, Davis says some first-timers prefer to go to the lender’s office for pre-approval.

“If it makes you more comfortable, go see the lender in person, and ask your agent to go with you,” he says.

Also, to ensure they’re being quoted a competitive rate for their mortgage, he encourages all buyers to shop lenders before submitting a formal loan application.

-- Fear that family members will judge your buying choices negatively.

Most first-time buyers are in their 20s or 30s. On financial matters, many still look to parents for guidance. But sometimes, the intervention of elders can backfire.

“You don’t necessarily want to get your parents involved in your transaction. In many instances, in the name of protecting you from overpaying, they can blow up an otherwise good deal,” Davis says.

There’s nothing inherently wrong with seeking help from your parents. But Davis says it’s wise to involve them early on -- not after you’ve picked out the property and are about to seal the purchase.

If you’re afraid to go forward without your parents’ help, Davis suggests you bring them along on your house-hunting trips. That way they can compare various alternatives and will likely give you more objective advice.

-- Fear of making a mistaken property selection.

Because they realize that the home-buying decision is a major one, Davis says many wannabe homebuyers become risk averse, worrying they’ll select the wrong property.

He says it’s not uncommon for young buyers seeking emotional safety to keep researching the market rather than making a decision. But even in neighborhoods where buyers now have the upper hand, purchasers can forfeit the chance to buy a home they love simply because they obsessed too long over the details.

“There’s often a downside to delaying. It’s not impossible that someone else will come in and snap up that home you adore,” Davis says.

Also, he says some sellers become so put off by indecisive purchasers that they refuse to deal with them.

Davis says the best remedy for home-selection anxiety is solid information. Work with a real estate agent who can accurately advise on the true market value of any property you’re considering, thereby reducing your chances of overpaying.

“It’s a good thing for young buyers to get a lot of hand-holding from a reputable agent, ideally one who enjoys helping first-timers,” Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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