Should You Buy a New or Old House?

 Should You Buy a New or Old House?

One of the biggest decisions that a prospective home buyer must make is the decision of whether to buy a new home or an old home. Both approaches have their advantages and disadvantages, and the decision will be affected by the buyer's personal circumstances.

Buy an old home

On the one hand, an older house is likely to need at least some repairs. Things like the roof, septic system, carpet, woodwork and other items may need to be replaced now or soon in the future. On the other hand, construction quality on a well built older home is often better than it is on a comparable new home.

Of course, it pays to have any home thoroughly examined by a certified home inspector prior to purchase. Even a new home can have problems, and a good, thorough inspection is definitely a must whether you are buying a new or old house. Be sure to get any problems found put in writing immediately and presented to the seller of the home. The problems uncovered by a home inspection can be used as negotiating points when settling on the purchase price of the home. If the seller agrees to repair the items uncovered by the home inspection prior to purchase, be sure to get those promises in writing and to follow up with the seller prior to the closing date.

Buying an old house can allow the home buyer, especially a first time home buyer, to purchase a larger or more luxurious home than he or she may be able to purchase new. In addition, many buyers prefer the distinct character and storied history of an old house to the cookie cutter approach of many new homes.

If you decide to purchase an old house in a historic district, however, there may be local ordinances which limit what you can do to the home. Owners of historic homes are often restricted from changing the outside appearance of the home, including such things as painting, window styles and certain landscaping. A good real estate agent will be able to apprise you of any restrictions that come with your old house.

Buy a new house

If you decide that a new home is the right move, it is imperative to examine the history and reputation of builder and the developer. If you are buying a new home in an existing development, talk to the homeowners who already live their and get their feedback. Honest feedback is your best tool when searching for a new home. If the home you are considering is in a brand new development, seek out other developments that the builder has done. Talk to those homeowners and get their views on the quality of the construction and the nature of the neighborhood. This type of information can be of great assistance when seeking your new home.

Whether you decide to buy a new home or an old house, the decision to purchase a home in the first place is the most important decision of all. A home is a great investment as well as a roof over your head. Finding the best home at the best price will ensure that your investment continues to appreciate year after year.

How to Buy a Foreclosed Home | eHow.com

1. See How to Buy a House and How to Buy and Sell a Fixer-Upper.
    
2. Understand that foreclosure means that because a home owner has become unable to pay the mortgage, the lender takes back the property. The legal steps involved differ from state to state.
   
3. Investigate the advantages. Since a bank or other lender wants to recover as much of its investment as quickly as possible, foreclosed homes are often unloaded at significant discounts-- upwards of 30 percent or more.
   
4. Find an agent experienced in foreclosures. Some sellers won't accept offers from unrepresented buyers.
   
5. Search for foreclosure listings in real estate magazines, newsletters, newspapers and Internet search engines. Call lenders for real estate owned (REO) properties lists of foreclosures. Government agencies such as Fannie Mae (fanniemae.com) and the Department of Housing and Urban Development (hud.gov) also advertise foreclosed homes for sale. Check public records for other leads. A lender deciding to foreclose must file a notice of default in the local county clerk's office.
   
6. Tour the property and inspect it as closely as possible. Some foreclosures--unlike fixer-uppers--are in fairly good shape. Others may be behind in maintenance.
   
7. Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is, in fact, a bargain.
   
8. Check your credit report and correct any defaults or outdated information. Get prequalified for a mortgage (see How to Shop for a Mortgage). Depending on the agency handling the sale, it may be required.
   
9. Find out if there is a listing broker and make an offer.
   
10. Check to see if a foreclosed home has any liens on it, such as unpaid property taxes. Find out who is liable for those costs.
    
11. Have the home inspected if the seller allows. Some sellers include this as part of the sales agreement, but the buyer still pays for it.
    
12. Be prepared to deal with more paperwork with a foreclosure than you would with a conventional purchase, particularly when a government agency is involved.

Tips & Warnings

• Find out how foreclosure works in your state. Procedures and legal requirements differ, so get a sense of how soon you can go after a home that appeals to you.
• Be particularly aggressive in negotiating with a bank. They're very keen to sell a foreclosed home fast, as it's just sitting on their books doing nothing.
• HUD and other agencies often auction foreclosed homes. However, buyers are frequently unable to inspect any property before making an offer. With so little information, the higher the bid for the property, the higher the risk that you may end up with a money pit. See How to Buy a House at Auction.
• Beware that buying foreclosed property has a very low probability of success for all of the above conditions and because many people try to do it.

Read more: How to Buy a Foreclosed Home | eHow.com http://www.ehow.com/how_111013_buy-foreclosed-home.html#ixzz16jPaLoAm

Why Should I buy a house?

Why should I buy a house?
So often I hear people ask this question. The answer to this question is so personal that one answer won't fit all. The normal thinking is multiplier of monthly rent and total sales price. Usually 12 months rent divided by the total price of the home and a smaller percentage around 6 or so better too buy and higher percentage like 9% not as good an idea to purchase. Well this is true in most cases it doesn't take in consideration things like being stable, pride of ownership planning for the long term and just wanting to raise your children in a certain school district or close to family, etc. I think that even though purchasing a home is certainlly a business decision, it is much more of a lifestyle choice.
Your Landlord will and should raise the rent as soon as the market will allow but, once you have a fixed mortgage you have a steady payment. You can also pay additional on your home and increase your equity with the plan of someday not having a house payment. In my mind we need to go back to the idea of actually owning home to raise your family not as a get rich quick scheme. I think it is time for a fundamental shift back to the way we used to look at a home purchase. The great news is prices are lower, interests are historically low, and choices are up. At this time a family can make a good long term choice and that may or may not be available in the future.

Market is showing signs of New Life

 The Market is showing signs of New Life. The traffic in our open houses has increased. We haven't seen the same number of interested buyers that we had last fall and spring since the tax credit ended in April. The record low interest rates and above average inventories has combined to make this a perfect time to shop for a new  home.

Spending Thanksgiving with family is the Most Important issue

Getting ready to go to Les and Diane's and kids house. This time of of year it is inportant to remember what is important. The last few year have been a challenge in the Real Estate industry. But family and friends and our relationships are what really counts. I believe America is a nation of incredible people who will over come. The economy is starting to turn around. I know we all personal have choices to make but if we support and serve each other and keep our faith we will become even stronger. Go Cowboys and Lions!

Pensacola State College South Santa Rosa Center up date 11-23-10

Greenhut construction is making allot of progress on the new Pensacola State College's South Santa Rosa center being built on Nandahala rd in Gulf Breeze. This college will bring allot of business to the Midway area, such as resturants, stores and businesses. It will also create a larger demand in the area and likely an increase in values.

http://www.youtube.com/watch?v=EYr9yhlcDfM&feature=player_embedded

Posted by Mystic Keith Furrow, near the water in Florida at 6:17 PM