The argument over renting versus buying includes advantages and disadvantages, when you think about job security and the ability to commit to anything, for a long-term. When you decide to rent, you aren’t locked into a large financial commitment, such as a mortgage loan you can’t afford. Those that are presently working may not be confident their present position will provide stable income, in the months to come. Lay-offs and cut-backs can wreck havoc on a family’s budget.

Here are some of the pros to renting that many people consider. One is that when you rent, there are many things you don’t have to deal with as opposed to buying. One of them is that any property maintenance is done by the landlord. This means you don’t have to worry about mowing the lawn, making sure the sidewalks and drives are clear of snow and debris. In addition, because your maintenance is taken care of, there is no buying expensive equipment.

If your furnace breaks down or your pipes start leaking, a home rental allows you to make a phone call and the problem becomes the responsibility of the landlord-owner. As a homeowner, you will be faced with urgent and unexpected expenditures and you may not have them in your budget. If your rental house becomes too intolerable or your lease renewal includes a rent increase, you can choose to live someplace else, with little notice or inconvenience. Maintaining your home rental will allow you to get any damage escrow money returned.

One the other hand, renting does have its disadvantages. You are not building equity, and don’t have any money to show for the years you have rented. You have to get permission from your landlord in order to make any changes, like painting or rearranging the landscape. You are also dependent on your landlord fixing things in a timely manner. They can also raise the rent, and even evict you if they want.

Buying a house also has its pros and cons. Buying a house costs more initially, but every payment you make, part of it goes to principle so you are building equity in your home. You can do whatever you want to your home, within reason, so you can repaint the walls, make additions, and change the landscape. If something breaks down, you can replace it with higher energy efficient appliances. Your home is more secure, because you are in charge.

On the other hand, buying a home can be expensive, and not just to move in. If there is a problem of some kind, you are responsible for fixing it. You have to keep you lawn maintained, as well as keep the drive and sidewalks clear in the Winter. If you are part of some kind of HOA, then you have to get permission to do anything on your property. If something happens financially, and you end up going into foreclosure, you run the risk of losing everything, including any equity, as well as your good credit rating.

One of the other things you have to consider when buying a home is that you have to buy extra things for the home. You may have to buy a lawn mower and other yard equipment. Any major problems you have to deal with and pay out of pocket expenses. This can include things like problems with plumbing and electrical.

If you are faced with the argument of whether to rent instead of buy, you just have to consider the advantages and disadvantages of each option. In addition, your personal financial situation and your occupational future should be analyzed. It’s better to purchase a home if your job is secure and you plan to stay in your home for a few years. For those with a less-assured future in their occupation, it may be better to wait out the current economic conditions and rent a home, just in case you need to alter your lifestyle because of lay-off, demotion or relocation.

About the author: Lance Mohr is an authority on the Tampa real estate market with more than 18 years of experience as a Realtor and mortgage banker. If you have any questions or are looking for a professional Realtor give me a call. For more information on Odessa homes for sale or Northdale homes for sale go to at www.Tampa2Enjoy.com.

If you’re planning to purchase a brand new home, the builder will expect you to follow certain procedures in order to buy the home. It doesn’t matter if you’ve got an Realtor to act on your behalf you, the builder will you to utilize their personal standard purchase proposal and perhaps a another form for the contract. At initial glance, these documents might appear as if they’re the identical ones your local real estate Realtor would hand you, a closer inspection will uncover this contract can be really dissimilar. Plus a lot of of these differences won’t be composed with your best concerns in mind.

Many of those passages won’t be written with your best interests. As an example, lets say the flooring you want isn’t available, the builder’s contract will permit the builder to substitute similar grade products like the ones you’ve selected.

To complicate things further, you may not have the benefit of an independent real estate agent to assist you in negotiating, understanding, and interpreting the contract. To protect your interests, seek the advice of a good attorney before signing or request the inclusion of a contingency allowing you to have your attorney review the contract before the deal is final.

If you sense the terms aren’t reasonable, you have the option to modify or supplement extra conditions - the developer can determine if it chooses to approve your conditions. For example, you could:

1) Put a Restriction On Your Money Deposit - If you can put less money down, you may have less risk if the developer doesn’t perform like they should.

2) Add A Completion Date - Insist on including a date by which the home must be completed, or you have the option to cancel the contract.

3) Negotiate A Holdback Clause: Try to include a clause stipulating a portion of the sales price will be set aside if the home if finished at the time of closing, which you can apply towards having the home completed.

4) Negotiate For Several Home Inspections And Walk-Throughs - If the builder is to construct the home to your specifications, negotiate to have the right for independent inspections and you to inspect the property several times - not only just prior to closing. This will insure the work is being done properly and on time.

5) Expect Equal Quality - Whenever you’re buying a house that reduplicates the model, insert a clause saying you’ll be receiving equivalent or better grade construction than the model, not merely marginal grade acceptable for the local construction codes.

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If you’ve been looking at homes with a realtor, most likely he or she has mentioned a certain property as being a short sale. A home being sold as a short sale depicts a situation where a seller facing money problems is trying to avoid foreclosure by selling the property for below the outstanding mortgage balance. It’s not uncommon to find a seller in this situation with a defaulted home loan.

Don’t be fooled by the low market price of a home in this situation since they aren’t always the best financial deal. The seller could have bought the home at the high point of the cycle and paid more than they should have, or the current real estate market may have forced property values to take a nose dive. As a homebuyer, you also need to be aware of extra costs not included in the properties selling price.

One major disadvantage to buying a short sale is you must wait for bank approval of your offer. This is due to the fact the bank will be losing money in the process. The bank must weigh the pros and cons of a short sale versus the extra costs and time involved with a foreclosure.

Unfortunately, waiting to hear from a bank can take several months, regardless if the seller accepts your offer immediately. Expect the entire process to take a while with no guarantee the bank will accept the deal, especially if the seller has been frantically advertising the home for significantly less than what’s owed on the loan.

If after weighing all the pros and cons of buying this type of property you still decide to pursue one, it’s best to select a Realtor who’s experienced in dealing with these type of properties. Your agent should do some research before you make an offer. It’s imperative you know what the seller owes on the home; if it’s a lot higher than what you’re willing to pay, most likely the bank will deny your offer.

Your agent also needs to investigate if there are multiple loans against the property. If additional ones exist, your agent will need the cooperation of all lenders to approve the deal. The more lenders involved, the less likely your deal will be approved since most lenders won’t forfeit their interest in the property without some compensation to make up for their losses. To find out if multiple lenders exist, just have your agent pull the deed to the property.

Before pursuing a short sale, make it a point to ask your agent to contact the seller’s agent and find out what preliminary short sale steps have already been taken. A bank will only consider accepting a short sale if the seller can document they are in financial straits. The fact of the matter is a short sale can’t be finalized without the approval of the bank. Unless you’re not in a hurry to buy a house, you want to be sure the seller has confirmed with the bank a short sale is a viable option. There’s no point in wasting time pursuing a property if you’re convinced the odds of having the bank accept a short sale are nearly impossible.

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If you thought buying a short sale home was difficult, you may be surprised that buying a foreclosure can be more difficult. A foreclosure process occurs when a homeowner can no longer afford to make monthly payments on his or her home loan and the lender exercises it’s option to force the sale of the property. In today’s volatile bank and mortgage industry, you’ll find an increase in the number of foreclosures which attracts homebuyers shopping for the best bargain. As you search the home market, you’ll find foreclosure in every market, from the high end luxury homes down to the basic tract home.

When a homeowner defaults on their mortgage, the lender will offer a grace period before they begin foreclosure proceedings. If a homeowner can’t cure the default within the grace period, the bank will take steps to foreclose on the home - which creates great opportunities for new homebuyers during the pre-foreclosure, public sale or auction, and when the property reverts back to the bank (called real-estate-owned, or REO).

The main attraction of a foreclosure is the affordable price - whichever stage of the process you decide to purchase one, you’ll most likely find a low price. However there are some disadvantages to buying a foreclosure - let’s check them out:

1) Minimum Buyer Protection - Unlike a normal homebuying transaction, a foreclosure process will force you to sacrifice some homebuying protection. For example, you may not get the opportunity to inspect a home before you buy it and have to forgo any protection from title insurance.

2) Waiting For The Owner To Cure The Default - Many states have laws designed to insure lenders can’t swindle a home away from late-paying homeowners on short notice. If you’re a buyer, that mans you’ll have to deal with tons of deadlines, unexpected delays, court rules, and uncertainty - especially if your state gives a former homeowner the right to “redeem” or buy the property back within a specified time after it was sold in foreclosure (can range from ten days up to a year). If this should happen, you’ll receive a refund of all your money. The question you need to answer is do you really want to wait in limbo, not knowing if you’ll get the home?

3) More Competition - In the real estate market, if there’s a potential for a great deal, you’ll find plenty of real estate investors who’ve already lined up ahead of you.

4) Hidden Risks or Issues With The Property - Unfortunately, owners in foreclosure tend to cut out spending on property maintenance, property taxes, or liened up any remaining equity to secure other debts.

If you still decide to purchase a home in foreclosure, it’s important to have an experienced Realtor assist you through the process. Make sure the agent specializes in them. Only certain Realtors will specifically handle a foreclosure. If you decide to have a regular agent working for you, make sure to delineate each agent’s role, so there’s no confusion. You may also consider hiring a real estate attorney to help you steer through the maze of steps.

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Tougher loan requirements have made it difficult for first time home buyers to buy their first property. With the right circumstances, both parties can benefit from this arrangement. Loans from family or friends can help you fund your down payment, first mortgage, or a second mortgage. Some of the reasons you might want to use family and friends for financing include:

1) Enjoy Lower Interest and Tax Deductions - Private funds from family and friends would usually be one to two percent interest points lower than a regular lender, thus saving you thousands of dollars over the duration of the loan. If you put together the right documentation, you can even enjoy the same mortgage interest tax deductions as a regular loan.

2) Adjustable Payment Arrangements - With a private loan, you can negotiate a flexible payment schedule compared to a traditional lender. You can arrange quarterly payments and even work in a grace period with no payments due until years later. You can also renegotiate your payment schedule should you become unemployed and lose your job. A traditional bank won’t be so understanding.

3) Eliminate Points Or Loan Fees - Banks typically charge you thousands of dollars for their application fees and other points, your family and friends won’t bleed you with these exorbitant fees.

4) It Doesn’t Matter What Your Credit Score Is - While a traditional lender won’t consider you for a loan unless you have an impeccable credit score, a family member won’t be as concerned about your creditworthiness if they believe you’ll be responsible enough to pay back the loan.

5) Waive Private Mortgage Insurance - If you had to borrow more than 80% of the sales price from a lender, you’ll be forced to obtain Private Mortgage Insurance (PMI). With private funding you won’t be forced to pay this fee.

6) Less Paperwork - With a traditional bank, you’ll have to complete a lengthy application form and present documentation to prove the validity of your income, assets, and monthly expenses before they even take a look at your mortgage application. If you get a loan from your family and close friends, you won’t be subjected to this amount of harassment.

7) Take Advantage Of Great Deals - With private financing, you can fund and close a deal fast-enticing a time pressure seller into accepting a lower offer.
The Physical Condition Of Your House Won’t Be A Priority - When you use a traditional lender to finance your house, there’s a high probability you’ll be forced to fix all major flaws before your transaction concludes. Family and friends can be more understanding and help you take advantage of a great deal on a fixer upper.

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Don’t Neglect To research the title on a property to be sure it isn’t clouded. A title insurance company’s goal is delivering a home with clear title so they will not need to disburse future claims to you. With that in mind, running a title search will be your title insurance company’s first priority ( or your lawyers depending on the prerequisites of your particular state ).

The title search includes searching through the prior fifty years of official records for information relating to the house, including all prior deeds, last will and testaments, divorce decrees, trusts, bankruptcy cases, court judgments, and tax records. Statistics indicate as much as 35 percent of houses can have a fault with their title.

When a title company issues a preliminary title report (also called a title insurance commitment or encumbrance report), you have the opportunity to rectify problems before going ahead with the sale - or to cancel the deal if something serious shows up. You’ll also learn the conditions under which title will be insured. In instances where unknown or unresolved issues can’t be eliminated, your title company will exclude these from coverage.

The preliminary report should be sent to you, your real estate agent, and attorney by your closing agent. Take the time to carefully inspect it and consult with your attorney or closing agent about items you don’t understand. If your report references recorded documents like easements or building-and-use-restriction, request copies so you can review them.

A preliminary title report should also include a plat map which outlines the houses boundaries when the land was first subdivided. Inspect the map for inconsistencies between what was originally divided to what you see today. However use this map only as a general guide because only a professional surveyor can tell you the exact boundary of the property. If your report makes mention of an easement, be sure to ask your title company or attorney to show you where they are on the plat map.

If you have future plans for the prospective house such as building a backyard swimming pool, be sure to examine the preliminary title report for any restrictions or easements that may prevent you from building a pool. It’s important to share all your future plans for the property with your closing agent, attorney, or real estate agent.

Luckily you won’t have to deal with correcting any defects with title. Your closing agent will notify the seller’s agent of the defect and require any liens or defects be cleared and paid off from the purchase money at closing.

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Today, buying a home has drastically changed from seeing a seller’s unorganized home, to homes that are perfectly staged. Showing a home with a dirty kitchen, old furniture, and junk all over the house has now become a thing of the past.

Fixing up a home to draw a homebuyer wasn’t practiced much in the old days. Today’s cutthroat real estate market has forced the industry to think of creative ways to get a homebuyer to offer more on a property. If you’re trying to purchase a home, make sure you aren’t distracted with the dazzling presentation of the home. Let’s discuss the 7 tips to help you choose the best home:

1) Can All Your Furniture Fit? - When a house is staged, most of the seller’s furniture is replaced with a select few pieces designed to make the room look more spacious. Don’t be fooled by the visual size of a room. If you’re checking out a master bedroom, imagine how your king sized bed, nightstand, and dressers will fit, not their twin sized bed with a small side table.

2) Where Are The Everyday Products? - A properly designed laundry or utility room will have adequate storage space for detergent, softener, laundry baskets, and a place to iron clothes. Instead, a staged home may only display a wicker basket full of towels. Check to be sure their laundry room can fit all your products and accessories.

3) What Catches Your Eye? - As you enter a room, observe how you’re drawn to the focal point of a room. Could there be a reason your eyes are diverted away from a defect in the house such as a dreary hallway?

4) Is There Adequate Storage Closets? - When a home has been staged to be perfectly clean and tidy, you may not pay attention to a missing hallway closet, large linen closet, convenient storage space, attic, or basement. Always check to see if there’s enough storage capacity for your belongings.

5) Does The Decor Match The Home Style? - If you’re desiring a particular style of home, be sure the decor matches the exterior styling. Homes can be staged to imitate a certain style, yet the true style of the home will be something different. Stagers can even dress up a plain 1960’s tract home to appear like an Arts and Crafts bungalow.

6) How Convenient Are The Electrical Outlets? - Older homes tend to feature inconvenient and insufficient outlets. When you view a home, be sure to check that all lamps and non-stationary lighting works. Also observe if all kitchen and important large appliances have a nearby outlet.

7) Feel Like Your Floating On A Cloud? - Don’t be distracted by the wonderful scents or beautiful music playing in a house. It’s part of the ambiance designed to make you feel comfortable with a house.

Staging a house isn’t necessarily deception, you may even pick up some great ideas on how you could decorate the place if you bought it. You just don’t want to be distracted into paying more than a house is worth just because it looks great.

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Buying a home can involve lots of steps and you would benefit from the help of a knowledgeable Realtor who can explain what you need to do, as well as help represent your homebuying interests in matters regarding negotiating with the seller, locating the best mortgage loan, completing any paperwork, and making sure the property inspection rules out any major defects.

An effective agent acts as your squad leader, first and foremost, he or she takes care of your best matters to while aligning other players and jobs. Your Realtor should:

1) Suggest A Neighborhood - Your Realtor should be knowledgeable enough to suggest possible locations that suit your needs. Ideally he or she should live in or around the area you’re interested in and be able to give you an insider’s viewpoint of the community.

2) Helps You Gauge Market Value - A good Realtor will put together a competitive market analysis (CMA) to estimate the value of the house you’re interested in. The CMA consists of data from comparable properties that sold in the last six months.

3) Lines Up A Property To Fit Your Lifestyle - A good Realtor will discover homes that accommodate your standards and presents them to you as quickly as they hit the market. Any respectable real estate agent recognizes this chore can occupy to a twelvemonth and won’t force you into purchasing a home that doesn’t accommodate your lifestyle.

4) Walks Through Properties With You - Your agent should take you around personally to look at homes. Their experienced eyes can possibly help you determine if a house suits your needs and if there are potential problems such as a leaky roof or old plumbing.

5) Composes The Offer And Works Out The Sale - Your real estate agent will aid you writing an offer that incorporates your offer price and terms. He or she will also go over all legally necessary disclosures about your future home.

6) Prepares You For The Complete Transaction - When you’ve resolved which Realtor to employ, he or she should follow up by spelling out the procedures needed to discover your house, including drafting the offer, satisfying loan requirements, opening up escrow with a respectable business, insuring title, acquiring insurance, taking out contingencies, and nailing down the deal.

7) Pulls Together The Whole Transaction - Once the seller consents to your offer, your real estate agent will maneuver you through the sequence of events necessary to close the transaction. He or she will line up home property inspections, line up mortgage and apply for insurance. Nearly all of these undertakings will be managed by your real estate agent or designated to the qualified professional person. A dependable real estate agent will be in attendance for leading events like the appraisal, property inspections, the final walk-through, and the close of escrow.

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If you’re in the market to buy your first home, you may not have thought about looking at condos. However, your budget may dictate a less expensive option such as a condo. A condo allows you to own the internal space which is bordered by the walls, ceilings, and floors. The remaining brick walls, sidewalks, external stairwells, swimming pools and garden areas make up the common areas managed by the community of homeowners. Some positive features of condo life include:

1) Reasonable Costs - Condos tend to cost less than buying a house, although the opposite can be true in major metropolitan or resort areas. Maintenance costs are also less since the community shares the upkeep costs such as landscaping, roofing, and some insurance.

2) Get To Know Your Neighbors Better - A community of condo’s with common recreation areas and planned activities gives you greater opportunity to get acquainted with your neighbors.

3) Less Upkeep - One advantage of belonging to an association is you won’t need to devote a lot of time maintaining the common areas of your property. You also get to use a community pool or gym without having to pay a separate service to maintain it.

Now, let’s go over the cons of living in a condo:

4) Rules Galore - As a condo owner, you’ll be bound to follow a master deed or Declaration of Covenants, Conditions, and Restrictions (CC&R’s). This document governs the community association and all condo owners. Basically your rights to common space and how you can use your condo are limited by this document.

5) Lower Resale Price - Unfortunately, a condo yields a lower return on investment compared to a house. Expect your condo to fetch a lower resale value when it comes time to sell.

6) Less Privacy - Living in a condo requires you to relinquish your privacy as your walls, ceilings, and common areas are shared jointly with other condo owners. If you’re accustomed to living with a large dog or a big backyard, you may have a difficult time adjusting to the smaller space set aside for your unit.

7) Mandatory Expenses - As a condo owner, you’ll be required to pay your share of association dues on a schedule dictated by the association. If you don’t use the amenities such as the community pool, you may feel frustrated paying for something you don’t enjoy.

Depending on the community association, you may be required to pay special assessments to cover major repairs it’s budget can’t cover. If the occupancy level is low in your building, these special assessments can be expensive.

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If you’re thinking about entering the home market when the real estate market is bustling, or if you’re up against lots of other competitors who are trying to offer on the same house, you’ve got to go that extra mile to beat out your competition. Here are some tips to make your offer jump ahead of the rest:

1) Act Fast - If you’ve found the home of your dreams, the odds are great there are other hungry homebuyers who feel the same way. If you want to beat the odds and have your offer stand out, you need to move fast and be one of the first homebuyers to make an offer.

2) Let Your Real Estate Agent Personally Present Your Offer - If the seller doesn’t object to this technique, this will give your agent a chance to show why your offer is the best.

3) Make The Highest Offer - By making your offer higher than the rest, you’ll stand out ahead of the crowd. Your offer can jump out ahead of the competition even by just being a few thousand dollars higher.

4) Share Your Dreams About The House - When your Realtor meets with the seller, have him or her include a letter explaining why you want to purchase the property and the features that make it so attractive. Include positive comments the seller will appreciate such as how you’ll continue to care for the property just as the seller has. Your agent may dismiss this strategy, but in some instances, it could mean the difference between having your offer accepted or rejected.

5) Keep Your Contingencies To A Minimum - Dealing with loan contingencies and home inspections are standard protocol in a sale, but is you make too many contingencies in your offer, a seller may pass up your offer for another one. Be careful to not go overboard with your contingencies. You’ll even find buyers who are willing to skip the inspection process just to make their offer stand out. Bypassing standard home inspections aren’t recommended due to the risk of buying a home with flaws. The important point to remember- in order for your offer to appeal to a seller, you have to keep the number of contingencies to a minimum.

6) Get Your Pre-Approval Early - Sellers prefer to deal with homebuyers who are serious and are already pre-approved. Your offer will leap to the front of the pack because the seller knows you won’t have problems satisfying the loan contingency.

7) Offer The Best Terms - In a hot market, you can make your offer stand out by offering all cash and removing the loan contingency. Consider the option of funding your purchase with your down payment and money borrowed from family or friends. After purchasing the house, you can qualify for financing and repay the money you borrowed.

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