How Long Should It Take You To Find What You Want?

Often, I show only one home, after all, how many homes does one family need? A few buyers will look for years, but buyers who do that are not motivated. A motivated buyer will find a home within two weeks. Most of my buyers, here in Elkhart County, Indiana, find a home within two days.

Good real estate agents will listen to your wants and needs and arrange to show you only those homes that fit your particular parameters.

How Many Homes Will You See?

Studies show that your memory dramatically improves after eating carbs and slows upon eating sugar. So, layoff the soft drinks and have a hearty meal of carbs before venturing out to tour homes. The average number of homes I show to a buyer in one day is seven. Any more than that, and the brain is overloaded. Therefore, don't expect to see 20 or 30 homes, although it is physically possible to do, you probably will not remember specific details about any of them.

The Red shoes Experience

Women will relate to this. say you need anew pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous, priced right too. Do you buy them? Of Course Not! You go to every other shoe store in the mall trying on red shoes until you are ready to drop from exhaustion! Then you return to the first store and buy those red shoes. Do not shop for a house this way. When you find the perfect home, buy it!

How To Rate Inventory

• Bring a digital camera and begin each series of photographs with a close up of the house number to identify where each group of home shots started and ended.
• Take copious notes of unusual features, colors and design elements.
• Pay attention to the homes surroundings. What is next door? Do 2 story homes tower over your single story?
• Immediately after leaving rate each home on a scale of 1 to 10, with 10 being the highest.

View top choices a second time. After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go around.

At this point, your agent should call the listing agents to find out more about the sellers motivation and to double check than an offer hasn't come in, making sure these homes are still available to purchase.

Making the Selection

I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. Its our intuition, but I make a practice not to steer buyers, and I insist buyers choose the home without interference from me. Its not my choice to make.

Real Estate Agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyers search parameters.

Talk to you again soon!

Evelyn Johnston

Prudential One Realty

574-304-7148

evelyn@evelynjohnston.com

How To Find The Right Home

Just because you may feel restricted by price ranges-especially if this is your first or second home purchase-don't let anyone tell you that you can't afford to be choosey when looking for a home to buy! You are unique. You have desires and needs, hopes and dreams for your new home that are different from your parents, friends or coworkers, okay? Your local Real Estate Agent will be a good source to help you find homes for you to look into. So lets get busy defining these homebuying parameters and writing them down.

Location and Neighborhood

Suburbs or Country

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  Pros: Generally less expensive. Often newer. Tract homes and conforming. More home for the money.


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  Cons: More time in traffic if driving to town for work. Further away from entertainment options cities have to offer.

Urban

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  Pros: Closer to many employers, walking distance to theatres, restautants, schools. Many period homes offer more distinctiveness in styles.


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  Cons: Often nosier, higher crime rates, more expensive.

Busy Streets

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  Pros: Often homes on streets with more traffic are thousands of dollars cheaper. If noise doesn't bother you, don't pass up homes on busy streets. Drive by at different times of the day/week to ascertain noise levels.


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  Cons: These types of homes will always sell for less than others in the same area. If bedrooms are located near the front of the home, sleep may be disturbed.

Cul de Sac

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  Pros: Number One choice of buyers with children.


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  Cons: Less privacy, neighbors know more about you.

Corner Lots

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  Pros: Often larger lots, fewer neighbors, more visability.


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  Cons: More traffic noise. More vulnerable to vehicles jumping the curb. Kids might tresspass at the corner. More sidewalk to shovel in Winter.

Single Family

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  Pros: Good appreciation. Opportunity for gardens. More privacy. Quieter.


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  Cons: More expensive than our next catagory. More maintenance.

Condos, Townhouses, Cooperatives

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  Pros: Less expensive than comparable single family homes. Generally newer so fewer repairs. Lock-n-Go lifestyle. No yard or exterior maintenance.


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  Cons: Less privacy. Noiser, Common walks and/or floors and ceilings. Sometimes no private yard or balcony.

Number of Stories

Single Story

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  Pros: Easy wheelchair access. Some medical conditions such as bad knees make it hard for certain individuals to climb stairs. Easier to clean.


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  Cons: Can be noiser if stereos or TV's are located on same floor as bedrooms. Some people feel safety is compromised if bedrooms are at ground level. More of the lot is absorbed by living quarters.

More Than One Story

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  Pros: More living space on same foundation than a ranch home. Less noise if entertaining on a lower level while other family members sleep upstairs.


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  Cons: More trips up and down the stairs to carry stuff to bedrooms. If laundry rooms are on the second floor, washer leaks are major. Might need dual vaccuum cleaners. It is difficult to maintain consistant temperatures on each level without dual heating and cooling units.

Split Levels

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  Pros: Often less expensive if purchased with lower level unfinished. Higher ceilings are appealing. Downstairs family room seperates noise levels from upstairs. More square footage on same size lots as ranch homes.


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  Cons: Less storage space. Hassle to take trash downstairs and carry groceries upstairs or vice versa. Kitchens tend to be smaller.

Interior Specifications

Number of Bedrooms

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  Pros: Common minimum requested configurations are 3 bedrooms. Newer parents prefer bedrooms on one level.


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  Cons: 2 bedrooms appeal primarily to first time home buyers, singles or seniors. However, don't discount a two bedroom if an extra den will satisfy your space requirements.

Number of Bathrooms

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  Pros: More than one bathroom is preferred by most people. One bathroom homes are generally less expensive.


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  Cons: Don't pass up a one bath home if there is room to add a second bath. Sometimes it costs less to put in an extra bath than it doess to buy a two bath house.

Square Footage

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  Pros: Larger spaces offer more room and cost less per square foot than smaller spaces.


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  Cons: Don't be mis-lead as lay-out is more important than actual square footage. Sometimes well designed smaller spaces appear larger.

Bonus Room

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  Pros: Extra space for media rooms, art studios, children's playrooms, gyms, den/study.


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  Cons: More expensive.

Garages

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  Pros: Cheaper to build. Convenient if raining or snowing.


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  Cons: Higher noise levels inside the home from cars. Some people feel they are an eye sore. If the garage door to the house self-locks, you could get locked out at an inopportune time.

Detached

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  Pros: Can be tucked away from sight lines. Quieter.


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  Cons: More expensive to build. Farther to walk or carry things in god or bad weather.

Additional Considerations

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  School Districts


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  Special Amenities i.e. fireplaces, pools, spas


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  Condition of Plumbing or electrical


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  Condition of heating and cooling units


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  Available Utilities i.e. cable, DSL or satellite


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  Sewer, cesspool or septic connections


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  Fixers-If you're handy with tools, you might save a lot of money if you consider homes that need minor improvements, fresh paint or new carpeting.

Nest posting will be about how long it should take for you to find the home that is right for you!

Talk to you again soon!

Evelyn Johnston

Prudential One Realty

Real Estate Agent

evelyn@evelynjohnston.com

574-304-7148

You Should Buy A Home, Right?

Just Married and everyone is saying you should own your home! That's what you've been hearing from family and friends, right? You should own your own home...or should you? Let's weigh the benefits and see if buying is for you...

1) Pride of ownership is the #1 reason why people yearn to own their own home. It means you can paint the walls any color you want, turn up the CD volume, attach permanent fixtures and decorate your home according you your own taste. Home ownership gives you and your family a sense of stability and security. It is making an investment for your future.

2) Appreciation. Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The office of Federal Housing Enterprise Oversight tracts the movements of single family home values across the country. It's House Price Index breaks down the changes by region and metropolitan area. Many people view their home as a hedge against inflation.

3) Mortgage Interest Deductions. Home ownership is a superb shelter and our tax rates favor home ownership. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your monthly mortgage payment.

4) Property Tax Deduction. IRS publication 530 contains tax information for first time home buyers. Real Estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes.

5) Capital Gain Exclusion. As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple, of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over 55" rule does not apply. You can exclude the above thresholds from taxes every 24months, which means you could sell every two years and pocket your profit subject to limitation-free from taxation.

6) Preferential Tax Treatment. If you receive more profit than the allowable exclusion upon a sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

7. Mortgage Reduction Builds Equity. Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500.00 in principal, bringing that balance at the end of your first 12 months to $99,500.

8. Equity Loans. consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many homeowners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as, home improvement, college, medical or starting a new business. Some states restrict home equity loans.

So now you know, home ownership is the best decision for you. You are focused and certain. Good. Next time we will define search parameters!

Talk to you soon,

Evelyn Johnston
Prudential One Realty
Real Estate Agent
evelyn@evelynjohnston.com
574-304-7148

Congratulations on Your Marriage!

This is the beginning of a very special time in your life, just married! The Wedding is over and now it is time to get on with the Happily Ever After! Where do you begin? Most Newlyweds spend more money in the first year of marriage than settled marrieds spend in five years, according to a recent survey. There is furniture to buy, kitchen staples, automobiles, sheets and towels and a home to put it all in. That home is my specialty! I am a Real Estate Agent and I help take the stress out of the process! Call me at 574-304-7148 to talk about your options as a first time home buyer and the types of mortgages available just for you!