Everything happens online now, whether it’s business conferencing, entertainment, social networking, finances, or shopping. According to the National Association of REALTORS^®, about 95 percent of home buyers look for their next property online. There are numerous sites that take you to a multiple listing service (MLS), where you will find data, descriptions, and very often photos of homes for sale. The status of listings can shift quickly, so it’s important to work with a real estate agent from the beginning of your search.

Even though you have the internet at your fingertips, working with an experienced real estate agent is critical. The internet gives you a broad look at what’s currently for sale, while your agent will give you all the nuances of the property, the neighborhood, and the community. She or he can answer all of your questions about the homes you are considering, including many details that are not found on an MLS. For example, if the house has been inspected recently, the results will likely not be shown on the MLS listing. If the zoning for the neighborhood is going to be changed soon or if the streets need drastic repair, that kind of information will only come from your agent. You can browse the internet all day and night, but rely on an agent when you are ready to get serious about the house you hope will be your new home.

Keep in mind that a real estate agent is usually paid through the sale of the property, which means you are not responsible for that fee. You have nothing to lose and much to gain when you hire an agent. They can guide you through the entire home-buying process. This is one of the biggest purchases you will ever make so make sure you have a skillful agent advocating and negotiating for you until the sale is complete.

When you first begin your search, however, the internet is invaluable for getting acquainted with the market and narrowing down to your favorites. There are several things to consider when you start looking for your perfect match. First, home descriptions are written in the most glowing terms that can be applied to the property. Likewise, smart sellers make sure the accompanying photos make the place look warm, roomy and as enticing as possible. Many houses have been staged to make the rooms look their best. You may be disappointed when you walk in the door and see it for yourself instead of through the camera’s flattering lens. Videos and 3D tours are being used more and more so be sure to study them. Frequently, the home’s condition is easier to see through a video than it is in still photographs.

Check out the home’s history. How long has it been on the market and has the price changed during that time? What are the property taxes? What information about the neighborhood is pertinent to your sale? For example, have there been many foreclosures of nearby houses? Are the homes on the street well cared for? Your agent will provide you with comps for the neighborhood so you can study the prices of similar houses that have sold in recent months. You will want to know about local schools, even if you don’t have children. This information will be important if you choose to sell sometime in the future. Check on crime rates for the area. Also, learn about how long you can expect the commute to work to be, whether you drive yourself or use public transportation.

You can find plenty of information and leads online, but rely on the expertise of your real estate agent to save you time and money. Your agent has access to multiple outside search engines giving them access to literally thousands of real estate websites. When you partner with someone who understands what you want in your next home, you are well on the way to finding your dream house.

Homeowners associations, or HOAs, are governing bodies that set and enforce the rules of a neighborhood or condominium development. They maintain common areas and oversee the amenities, covenants and restrictions of the neighborhood. There are many ways a HOA can be beneficial to you, but there are also aspects that you might find restrictive. If your new home falls under the jurisdiction of a HOA, learn all you can about it so you don’t have any unpleasant surprises.

Rules of the HOA

Your real estate agent should be able to get a copy of the HOA rules for you. Review them together so you have a good understanding of what is expected since you can count on them being enforced. Some items that may be regulated by the rules include satellite dishes, pets, exterior paint colors, plant and tree choices and fences. Parking campers, boats or commercial vehicles in front of your house may be covered. Yard decorations or hanging laundry on a clothesline may be addressed. Each HOA has its own set of rules and restrictions. You need to know what you are buying into and if it suits your personal preferences.

Learn about the annual fees

What is the cost and how will it impact your budget? Find out how much the fee costs and when it is due. Check to see when the fees were last raised and what is the process for increasing them. Know what the dues cover and if there are any additional fees collected regularly. Find out the size of the reserve fund. Ask if there are any special assessments pending? Special assessments might be for unforeseen expenses, such as storm damage to a clubhouse roof. Some also may be for periodical projects, such as resurfacing a parking lot or a big landscaping plan for a common area.

Talk to the neighbors

Chatting with a few people who live in the neighborhood can give you a good idea of what the HOA is like. Ask if it is overmanaged or if they find it difficult to deal with board members. Is the money well managed so that bills are paid efficiently? Are conflicts settled reasonably? You want to live with a HOA that does a good job taking care of the neighborhood regulations, but is not overbearing and intrusive. If you have concerns, attend a meeting before you close on your new home. You can depend on your real estate agent to provide specifics about the HOA as well.

Outstanding violations can delay a home sale

If the seller of your new home owes money for HOA violations, they need to take care of the issue and the accompanying fee before you take possession. Common violations often concern exterior maintenance, such as painting or landscaping issues. To guarantee that problems have been corrected, the title company will request an estoppel certificate from the HOA indicating the status of the violation. If the issue has not been addressed prior to closing, the closing date could be delayed. Another option is for the sellers to put money into an escrow account to cover the problem. They will get the money back once the fix is completed within an agreed time period.

There are benefits to a HOA

HOAs promote financial stability of the neighborhood and protect property values. They help residents get to know each other through community work days, social events and activities. This helps the neighborhood feel more secure and comfortable. Common areas are kept neat and amenities, such as pools, walking trails and tennis courts, are funded through fees collected from all the residents. Architectural rules keep home painting or remodeling within the original design of the neighborhood. Many HOAs pay for trash collection, pest control and snow removal.

There can be disadvantages to a HOA

You need to know the details of your neighborhood’s HOA rules to determine if they are too restrictive for you and your family. Many HOAs limit the number of vehicles allowed at each residence; if children’s backyard playset may be installed; and how mailboxes must be placed. They may dictate what exterior colors you can paint your house, whether banners or flags may be displayed, or even if holiday decorations are allowed. They may require pre-approval of exterior building plans such as storage sheds or new decks.

Be aware before you buy

Living with a HOA is usually not a problem and will enhance your neighborhood and home value. However, they are not for everybody. Educate yourself well before buying within a HOA community and decide if it’s right for you.

The old adage “cash is king” can certainly hold true when it comes to home buying. However, your investment might be safer and more productive if you take out a mortgage instead. You need to decide which way will give you the biggest bang for your buck.

Paying Cash for Your Home

• Paying with cash can put you in a better negotiating position, especially in a seller’s market. If you are up against competing buyers for the same property, your cash offer could be very appealing to the seller. Risks to the seller are far lower in accepting your offer and closing is much quicker when you don’t have to wait for a lender to approve a loan.
• Your cash purchase will eliminate some requirements that come with a mortgage, such as title insurance, appraisal fees, and closing costs.  It alleviates the seller’s concern that a buyer’s loan application could be denied. In that case, the buyer is forced to start all over with the sale — every seller’s nightmare.
• In addition to benefits for the seller, a cash purchase may also create a discount for you. The seller may be open to reducing the price a bit in exchange for the speed of a cash sale. They understand that the quicker the sale, the faster they can invest or use their money elsewhere.
• If you have a low credit score, that won’t stop you from buying a home with cash. You can avoid the hassle of providing the multiple documents required by a lender, which can slow down the process.
• You can avoid sleepless nights worrying about a big monthly mortgage payment hanging over you for years to come. Your monthly household expenses will reduce dramatically when your housing budget only needs to cover insurance, taxes, and maintenance.
• Achieving financial peace of mind is especially true if you are nearing retirement age. Although many Americans retire with years left on their mortgage, it is a bonus if you can stop working without that debt.

What Are the Drawbacks to a Cash Sale

• Tying up all your money in your home reduces your liquidity. You need to have cash available for unexpected expenses, whether it’s a cracked foundation or a medical emergency. If you should lose your income, you need enough cash to keep you afloat for a few months while looking for a new job.
• Mortgage rates are very low currently, making a mortgage loan a cheap investment. If you can put 20 percent down, you will have more room to maneuver financially and pay less than four percent in interest.
• Your money will likely perform better for you if you choose to help it grow by diversifying. Putting all your funds in one place, including your home, is a big risk. The stock market, mutual funds, or other investments are ways to grow your wealth beyond just building equity in your home. Although you may think you will save if you eliminate mortgage interest, the money might actually earn more if you put the cash to work elsewhere.
• Mortgage interest is one of the few remaining tax breaks. The higher your tax bracket, the more valuable this deduction will be for you.

As you probably expect, only a minority of housing purchases in the U.S. are made with cash. Yes, there are advantages, but do you want to have so much of your liquid assets tied up in your home? Your real estate agent and your financial advisors are excellent counselors to help you make your decision.

When you are considering a specific house, one of the most important questions you will ask is if it’s in a safe neighborhood. This is especially crucial if you are moving from out-of-town or into an unfamiliar area of your city. Do the research to learn if the location is safe for kids to play outside or for overnight guests to leave their cars parked in-front without problems. There are several ways to determine if you are looking at a danger zone, whether the threat is weather, crime or other risky possibilities.

Do some detective work

While your real estate agent can help you with practically every other aspect of home buying, there are some questions they legally can’t answer due to the Fair Housing Act. This means you will have to do some research yourself.  Fortunately, there are many online resources to address your concerns. Here are a few:

• AreaVibes helps you find appealing neighborhoods by rating subjects you find important. It ranks seven livability factors such as crime, schools, education and housing.
• NeighborhoodScout provides crime statistics and other information. You can measure your neighborhood against others in the area. Most of their information is free, but there is a fee for detailed data and reports.
• City-Data gives statistics on schools, neighborhoods, crime, sex offenders, and even nearby restaurant health violations.
• CrimeReports collects police and crime reports. Type in an address and the site will display a list of crimes committed in the area, broken down by types and dates.

Scout out the neighborhood. Drive through the streets surrounding your potential new home at different times of the day. Check out how well the homeowners keep up their lawns and homes. Well-kept properties tend to indicate a safer community. If you see many overgrown yards, sagging fences or broken windows, it may signal an unsafe neighborhood.

Introduce yourself to the neighbors and get their opinions. Ask if they feel safe and comfortable in their homes. You can learn a lot about mild irritations, such as a grouchy neighbor who doesn’t want kids and pets on his lawn, as well as significant problems.

Are there many homes on the market in the area? This could be an indicator of residents wanting to get out and find a safer place to live. Even if this is not the case, homes that stand vacant too long can attract trouble.

Finally, trust your gut feeling. If you have any concerns, don’t choose to move there. Find a place where you are confident that you and your family will be secure,

Note other safety issues beyond crime

Have your agent provide a flood zone map. Check how level the property is surrounding your potential home. If the yard is angled downhill, it may be at greater risk for flooded basements or worse.

Look up at the trees around the house. Towering trees are gorgeous, but could cause trouble in a windstorm or heavy rain. Roots from willow trees and other varieties can split a foundation, a driveway or sidewalks. An arborist or tree specialist can help you determine if you have any potential problems.

Carefully review the sellers’ disclosure. They have a legal obligation to disclose any likely problems or hazards. Does the basement leak? Is there damage from wood rot? If any red flags pop up, go back and ask questions. Use your agent; this is one of their specialties.

Check in with city hall. The city planning and code enforcement office should be able to let you know of any projects or construction coming up that could cause a problem for your neighborhood of interest.

Your home is likely your largest investment and the safety of your family is one of your greatest concerns. There is nothing that affects the value and enjoyment of your own home as much as the surrounding area. It’s crucial to know everything you can about your future neighborhood before signing any contracts.

Condominiums can provide an affordable living experience with pleasant amenities and benefits. However, some people will tell you they love condo life and others wish they had chosen a house instead. If you are thinking about purchasing a condo, carefully evaluate what goes into owning one.

By definition, a condominium is a shared property with individual owners of the units or condos. There are benefits and drawbacks that you will want to consider. Keep in mind that every condominium has its own set of rules and requirements, so be prepared to research your complex before making a decision.

Pros

A condo generally costs less than a house. That means you have a lower down payment as well as a lower monthly mortgage payment.

You are not responsible for exterior maintenance or upkeep. This is a big plus for many condo dwellers who don’t want to take care of a yard, garden or exterior paint and repairs.

Condominiums usually have amenities for you to enjoy. They can include pools, exercise rooms, tennis courts, jogging trails, pet areas or a golf course. Homeowners usually have to drive to find similar facilities, while condo owners have them immediately at hand.

There is often a strong feeling of community within a condominium neighborhood. Living in close proximity to many other people makes it easier to get acquainted and make friends. Condos frequently tend to attract people of specific age groups with similar interests making a social life easier.

Cons

In addition to your mortgage, you’ll be responsible for your association dues. Depending on the condominium’s size and amenities, dues can be a small fee or several hundred dollars each month. Know what the fees are before you decide to buy and know what they cover. Maintenance and insurance are commonly covered, but other expenses can include lawn maintenance and landscaping, snow removal, trash pickup, water, sewer and road repairs. Ask if any extra assessments for big maintenance projects are planned. If the roof needs to be replaced, for example, there could be a boost to the regular monthly fee for a year or more.

Review the condo association rules. This could be a lengthy list of requirements, such as where you or your guests can park, whether you can have a pet or what kind of pets are allowed or if there are enforced “quiet hours” during the nighttime. If you have a difficult neighbor, these rules will be a help. Just make sure they are rules you can live with all the time.

Living in close proximity to other people belongs on the plus side, but it can also present problems, especially if you prefer not to be among a crowd. Hopefully, you can find a condo community where privacy and rules are respected.

Condos usually do not appreciate as quickly as a single family residence would. You want to know if the condominium in question is well funded and well managed. If a large number of residents struggle with their monthly payment, money may be tight for regular maintenance and if the place has a run-down appearance, resale will be more difficult.

Buying Tips

Make sure you look for a real estate agent who is experienced in buying and selling condos. There are differences in purchasing a condo versus a house – different contingencies, possible additional contracts – and you’ll want to be guided by an agent with the right expertise.

Condo living may be perfect for you depending on your time of life. Perhaps you are a first-time buyer, or an empty-nester, or you’re downsizing for retirement. Begin by deciding whether the condo’s style and requirements are right for you.

As the owner of a new home, you should be pleased that you have successfully negotiated all the financial requirements to close the deal and take possession of your new place. However, the down payment and mortgage are just the beginning of new financial demands. Owning a home has plenty of expenses that need careful consideration as you plan your new budget.

Making the House a Home

You will likely have a few updates in mind to shape your new home to your tastes. Many of these tasks can be spread out over the upcoming months, but there are some you may want to complete immediately. For example, painting the rooms in colors you like or replacing worn floor treatments might be on your list right away. If the windows facing the street or looking into your neighbor’s house are bare, you may want window blinds, draperies, or sheers sooner rather than later. These updates can be expensive, even if you provide the manpower.

If you’ve purchased a fixer-upper, you probably have plans for what needs to change first. Remodeling a kitchen or bathroom is costly. Knocking down a wall between two small rooms to create a larger space is pricey, too. Figure out your priorities, make a list, and create a reasonable project plan that fits your budget.

Utilities

If you are a first-time homeowner, you are probably used to having some or all of your utility bills covered with your rent payment. More will be required of you now. The list generally includes: electricity, gas, water, sewer, trash and recycling. You may choose to add others, such as internet access and cable. Some of these may be much larger than you paid as a renter. Before you move in, you can ask your real estate agent to contact the seller’s agent to see if you can get a look at the current owner’s utility bills. This will give you a head start in mapping out your monthly expenses.

Maintenance and Repairs

If you were a renter, you reported maintenance issues and expected that the landlord would take care of the repairs. Disasters like a broken hot water heater, a backed up sewer, or issues with the heating and air conditioning system can be very pricey. Termites, a cracked foundation, and dry rot can be calamities.

Even smaller problems like a broken dishwasher or a jammed garbage disposal are the kinds of expenses that must be included in your budget. Maybe you’ll get lucky and avoid some of these surprises, but eventual maintenance costs are inevitable. Lawn maintenance and exterior painting are two such examples.

Stay ahead of the game by getting important things like the HVAC system, roof, and water heater inspected annually. Build an emergency fund to cover possible maintenance issues – both the unexpected and the routine. You are likely to spend a few thousand dollars every year on home repairs and improvements.

Plan Wisely

In addition to your home projects, you want to be able to easily pay bills, buy gas and groceries, and enjoy an occasional evening out. Other life expenses, such as saving for retirement, college or travel cannot be overlooked. Plan ahead to stay in good shape.