First time homebuyers need to know what type of properties might speak to them but not to the majority of homebuyers when they need to sell. According to industry sources the average homebuyer stays in their first home just shy of six years. Buying a white elephant can be a costly mistake, both in selling price and long market times to find the buyer willing to take a chance on a home that doesn't fit the market.
Features, location and style can create a white elephant property. Mark Nash author of 1001 Tips for Buying and Selling a Home updates homebuyers on what to stay away from when looking for a home. Understanding that all homes are not created equal, Nash outlines what the top elephants are in today's market.
-Homes that back up or look onto cemeteries. Many homebuyers are very cautious about purchasing a home that features a view of a cemetery. Cultural customs and plain old creepiness keep buyers away from homes that overlook headstones and spooky mausoleums.
-Off-beat locations such as busy streets, corner lots, noisy trains and jets will be more difficult to sell to choosy buyers. Buyers want quiet, middle of the block locations away from busy intersections and train tracks, both commuter and freight lines. You might get a discount when you buy for a second rate location, but it's one thing you'll never be able to improve.
-Buy properties that stay in demand. Many smaller homes will fit your budget, but determine if they are in demand by buyers. One bedrooms have a limited audience. Buying a contemporary ( even if it's a steal) in a neighborhood of colonials will be a tough sell.
-Basement bathrooms and bedrooms don't have the same appeal as if they are above grade. Some buyers have security issues as well for garden level condos.
-Tuck under garages. Even though news reports on fires originating in automobiles are low, many homebuyers don't like the idea of sleeping over garages filled with gasoline.
-Mansard roofs. Popular in the the 1970's this roof style is a hard sell with buyers today. Often seen on a second floor of a two story home, the dormer windows protruding from a sloped roof say ugly to homebuyers.
-In-ground swimming pools in northern climates. With the limited season, the amount of space a pool requires in a back yard and the built in maintenance, many buyers won't even look at a home with pool.
-Homes on a crawl space when full basements are the norm. Each area of the country has foundation styles that are the custom. Steer clear of crawl spaces when full stand-up height basements are in over two-thirds of homes. In areas where crawl spaces are the norm, steer clear of slab foundations, many buyers find rooms on slabs are cold in winter months.
-Homes that lack central heating systems. Mortgage lenders and buyers appreciate the utility of central heating. If a home you are interested has a wood or other alternative heat source, factor in adding a central system before you resell.
-Earth-sheltered homes. Popular in the 1980's and very energy efficient, earth homes are not the rage with most home buyers and can be difficult to finance. If you plan to stay a long time, potential resale issues might not be your main concern.
-Homes with knob and tube wiring. Very old homes from the early 1900's had knob and tube electrical wiring. If a home you are interested is entirely or partially wired with knob and tube, check with your homeowners insurance company before you sign on the line.
Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity InvestorÂ’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.
Filed under Home Insurance by on May 26th, 2010. Comment. 
I'm looking for the cost of rebuilding a 3600 sq. foot house?
For insurance purposes, I need to insure my home for the "cost of rebuilding" the house as compared to the "market value". How much would it cost to build a 3600 sq ft house in zip code 11787?
Check what new houses in your area are selling for. Deduct the cost of the lot. That should put you in the ball park.
Call a couple of builders and just ask. You may be surprised how willing they are to share "ball park" costs with you. I did that before we set the budget for our new house and it was very helpful.
Our insurance company (State Farm) keeps track of that info and the agent is usually willing to share such info.
Filed under Home Insurance by on May 26th, 2010. Comment.
A mortgage is such a common term in our society that many people never stop to consider precisely what it means. For most - even people with a mortgage themselves - the term simply means a loan taken out in order to buy a property.
However, a mortgage differs from other kinds of loan - specifically because it has one major use and because under a mortgage contract the interest in a property is transferred to the lender as security for the cash sum being advanced. Therefore the mortgage contract itself is not the actual debt but rather the reassurance that the debt will be repaid. The contract also stipulates that once the terms of the debt have been repaid, then the interest in the property will revert to the borrower.
The word "mortgage" itself derives from Old French, literally meaning a "dead pledge". This is taken to mean that the end of the pledge comes - or dies - when either the loan is repaid in full or the property undergoes foreclosure and reverts to the ownership of the lender.
Mortgage lenders are usually specialist investors who make available cash for purchasing property. Their primary profit stems from the interest rates attached to the home loan, but also in some cases from the ultimate sale of the property if the mortgage-holder defaults on the loan.
A borrower is legally required to meet the terms and conditions of the loan or risk foreclosure - the takeover and sale of their property. Such high stakes usually require one or both parties to carry out the deal via legal representation, known in the UK as "conveyancing". Furthermore, there are so many mortgages available that the services of an advisor are usually sought before a loan is applied for.
As few individuals have the amount of ready cash necessary to buy a property outright, a mortgage has become the ubiquitous form of loan underpinning most of the world's property markets. It is the only way that most people can realistically hope to eventually own their own house or commercial premises.
This has also made the mortgage sector so massive that many economies are underpinned by borrowing to pay for properties. Many analysts believe that the credit crunch which led to the current global economic downturn began in the US when lenders gave mortgages to borrowers who were not actually in the position to repay the loans, with serious knock-on effects on the wider world economy that we are still feeling today.
Kim enjoys writing articles on various finacial related topics, including Mortgages and Different kinds of Insurance.
Filed under Home Insurance by on May 24th, 2010. Comment.