Cheap Homes and Tips For Buying a House in Sale

A home is a financial asset and more: it’s a place to live and raise children; it’s a plan for the future; it’s an investment in your community. That’s why all Americans should have an opportunity to enjoy the benefits of owning a home. And here are some tips for first-time home buyers.

Knowledge is said to open doors. This is literally true when it comes to buying a home. To become a first-time home buyer, you need to know where and how to begin the home buying process. The following questions and answers have been carefully selected to give you a foundation of basic knowledge of home purchasing. In addition to helping you begin, these steps will give you the tools necessary to navigate the entire home buying process – from deciding whether you’re ready to buy house, all the way to that final proud step of owning a home, getting the keys to your new home.

1. HOW DO I KNOW IF I’M READY TO BUY A HOME?

You can find out by asking yourself some questions:

Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
Do I have a good record of paying my bills?
Do I have few outstanding long-term debts, like car payments?
Do I have money saved for a down payment?
Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer “yes” to these questions, you are probably ready to buy your own home.

2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME?

Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? After you answer these questions, make a “To Do” list and start doing casual research about property. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper, Foreclosure Listings, and internet search.

3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING?

The two don’t really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

4. HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD?

The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. Monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.

5. HOW DO I SELECT THE RIGHT REAL ESTATE AGENT?

Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and real estate services you need.
But make sure you check the prices for homes in the area on internet before you visit any real estate agent.

6. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH?

Your home should fit way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities – things like location and size. Should the house be close to certain schools? your job? to public transportation? How large should the house be? What type of lot do you prefer? What kinds of amenities are you looking for? Establish a set of minimum requirements and a ‘wish list.” Minimum requirements are things that a house must have for you to consider it, while a “wish list” covers things that you’d like to have but aren’t essential.

7. WHAT SHOULD I LOOK FOR WHEN DECIDING ON A COMMUNITY?

Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in.

8. HOW CAN I FIND OUT ABOUT LOCAL SCHOOLS?

You can get information about school systems by contacting the city or county school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area.

9. HOW CAN I FIND OUT HOW MUCH HOMES ARE SELLING FOR IN CERTAIN COMMUNITIES AND NEIGHBORHOODS?

Your real estate agent can give you a ballpark figure by showing you comparable listings. If you are working with a real estate professional, they may have access to comparable sales.

10. HOW CAN I FIND INFORMATION ON THE PROPERTY TAX LIABILITY?

The total amount of the previous year’s property taxes is usually included in the listing information. If it’s not, ask the seller for a tax receipt or contact the local assessor’s off ice. Tax rates can change from year to year, so these figures may be approximate.

11. WHAT OTHER TAX ISSUES SHOULD I TAKE INTO CONSIDERATION?

Keep in mind that your mortgage interest and real estate taxes will be deductible. A qualified real estate professional can give you more details on other tax benefits and liabilities,

12. IS AN OLDER HOME A BETTER VALUE THAN A NEW ONE?

There isn’t a definitive answer to this question. You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn’t mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don’t want to worry initially about upkeep and repairs.

13. WHAT SHOULD I LOOK FOR WHEN WALKING THROUGH A HOME?

In addition to comparing the home to your minimum requirement and wish lists, use the Home Scorecard and consider the following:

Is there enough room for both the present and the future?
Are there enough bedrooms and bathrooms?
Is the house structurally sound?
Do the mechanical systems and appliances work?
Is the yard big enough?
Do you like the floor plan?
Will your furniture fit in the space? Is there enough storage space? (Bring a tape measure to better answer these questions.)
Does anything need to repaired or replaced? Will the seller repair or replace the items?

Imagine the house in good weather and bad, and in each season. Will you be happy with it year-round?

Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint.

14. WHAT QUESTIONS SHOULD I ASK WHEN LOOKING AT HOMES?

Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller’s or real estate agent’s answers are clear and complete. Ask questions until you understand all of the information they’ve given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive. Prepare your own Home question list before you visit property. Find out about monthly utility bills for entire home.

15. HOW CAN I KEEP TRACK OF ALL THE HOMES I SEE?

If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don’t hesitate to return for a second look. Organize your photos and notes for each house.

16. HOW MANY HOMES SHOULD I CONSIDER BEFORE CHOOSING ONE?

There isn’t a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. On average, home buyers see 15 houses before choosing one. Just be sure to communicate often with your real estate agent about everything you’re looking for. It will help avoid wasting your time.

YOU’VE FOUND THE DREAM HOME

17. WHAT DOES A HOME INSPECTOR DO, AND HOW DOES AN INSPECTION FIGURE IN THE PURCHASE OF A HOME?

An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house and will make you aware of only repairs,that are needed.

The Inspector does not evaluate whether or not you’re getting good value for your money. Generally, an inspector checks (and gives prices for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced.

It’s a good idea to have an inspection before you sign a written offer since, once the deal is closed, you’ve bought the house as is.” Or, you may want to include an inspection clause in the offer when negotiating for a home. An inspection t clause gives you an ‘out” on buying the house if serious problems are found,or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house.

18. DO I NEED TO BE THERE FOR THE INSPECTION?

It’s not required, but it’s a good idea. Following the inspection, the home inspector will be able to answer questions about the report and any problem areas. This is also an opportunity to hear an objective opinion on the home you’d I like to purchase and it is a good time to ask general, maintenance questions.

19. ARE OTHER TYPES OF INSPECTIONS REQUIRED?

If your home inspector discovers a serious problem a more specific Inspection may be recommended. It’s a good idea to consider having your home inspected for the presence of a variety of health-related risks like radon gas asbestos, or possible problems with the water or waste disposal system.

20. HOW CAN I PROTECT MY FAMILY FROM LEAD IN THE HOME?

If the house you’re considering was built before 1978 and you have children under the age of seven, you will want to have an inspection for lead-based point. It’s important to know that lead flakes from paint can be present in both the home and in the soil surrounding the house. The problem can be fixed by repairing damaged paint surfaces or planting grass over effected soil. Hiring a lead abatement contractor to remove paint chips.

21. DO I NEED A LAWYER TO BUY A HOME?

Laws vary by state. Some states require a lawyer to assist in several aspects of the home buying process while other states do not, as long as a qualified real estate professional is involved. Even if your state doesn’t require one, you may want to hire a lawyer to help with the complex paperwork and legal contracts. A lawyer can review contracts, make you aware of special considerations, and assist you with the closing process. Your real estate agent may be able to recommend a lawyer. If not, shop around. Find out what services are provided for what fee, and whether the attorney is experienced at representing home buyers.

22. DO I REALLY NEED HOME OWNER’S INSURANCE?

Yes. A paid home owner’s insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low.

23. WHAT STEPS COULD I TAKE TO LOWER MY HOME OWNER’S INSURANCE COSTS?

Be sure to shop around among several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters, like flooding. Choose a home with a fire hydrant or a fire department nearby.

24. IS THE HOME LOCATED IN A FLOOD PLAIN?

Your real estate agent or lender can help you answer this question. If you live in a flood plain, the lender will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs.

25. WHAT OTHER ISSUES SHOULD I CONSIDER BEFORE I BUY MY HOME?

Always check to see if the house is in a low-lying area, in a high-risk area for natural disasters (like earthquakes, hurricanes, tornadoes, etc.), or in a hazardous materials area. Be sure the house meets building codes. Also consider local zoning laws, which could affect remodeling or making an addition in the future. Your real estate agent should be able to help you with these questions.

26. HOW DO I MAKE AN OFFER?

Your real estate agent will assist you in making an offer, which will include the following information:

Complete legal description of the property
Amount of earnest money
own payment and financing details
Proposed move-in date
Price you are offering
Proposed closing date
Length of time the offer is valid
Details of the deal

Remember that a sale commitment depends on negotiating a satisfactory contract with the seller, not just Making an offer.

Other ways to lower ins-insurance costs include insuring your home and car(s) with the same company, increasing home security, and seeking group coverage through alumni or business associations. Insurance costs are always lowered by raising your deductibles, but this exposes you to a higher out-of-pocket cost if you have to file a claim.

27. HOW DO I DETERMINE THE INITIAL OFFER?

Unless you have a buyer’s agent, remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential. Listen to your real estate agent’s advice, but follow your own instincts on deciding a fair price. Calculating your offer should involve several factors: what homes sell for in the area, the home’s condition, how long it’s been on the market, financing terms, and the seller’s situation. By the time you’re ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a price. Check Home price in that area on websites.

28. WHAT IS EARNEST MONEY? HOW MUCH SHOULD I SET ASIDE?

Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.

29. WHAT ARE “HOME WARRANTIES”, AND SHOULD I CONSIDER THEM?

Home warranties offer you protection for a specific period of time (e.g., one year) against potentially costly problems, like unexpected repairs on appliances or home systems, which are not covered by home owner’s insurance. Warranties are becoming more popular because they offer protection during the time immediately following the purchase of a home, a time when many people find themselves cash-strapped.

GENERAL FINANCING QUESTIONS:THE BASICS

30. WHAT IS A MORTGAGE?

Generally speaking, a mortgage is a loan obtained to purchase real estate. The “mortgage” itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

31. WHAT IS A LOAN TO VALUE (LTV) HOW DOES IT DETERMINE THE SIZE OF MY LOAN?

The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay,$2,500 as a down payment.

The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash home buyers are required to pay out of their own funds. So, to protect lenders against potential loss in case of default, higher LTV loans (80% or more) usually require mortgage insurance policy.

32. WHAT TYPES OF LOANS ARE AVAILABLE AND WHAT ARE THE ADVANTAGES OF EACH?

Fixed Rate Mortgages: Payments remain the same for the the life of the loan

Types

15-year
30-year

Advantages

Predictable
Housing cost remains unaffected by interest rate changes and inflation.

Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits

Types

Balloon Mortgage- Offers very low rates for an Initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is clue or refinanced (though not automatically)
Two-Step Mortgage- Interest rate adjusts only once and remains the same for the life of the loan
ARMS linked to a specific index or margin

Advantages

Generally offer lower initial interest rates
Monthly payments can be lower
May allow borrower to qualify for a larger loan amount

33. WHEN DO ARMS MAKE SENSE?

An ARM may make sense If you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren’t concerned about potential increases in interest rates.

34. WHAT ARE THE ADVANTAGES OF 15- AND 30-YEAR LOAN TERMS?

30-Year:

In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions.
As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

15-year:

Loan is usually made at a lower interest rate.
Equity is built faster because early payments pay more principal.

35. CAN I PAY OFF MY LOAN AHEAD OF SCHEDULE?

Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details.

36. ARE THERE SPECIAL MORTGAGES FOR FIRST-TIME HOME BUYERS?

Yes. Lenders now offer several affordable mortgage options which can help first-time home buyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

37. HOW LARGE OF A DOWN PAYMENT DO I NEED?

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you’ll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you’ll also need money for closing costs, moving expenses, and – possibly -repairs and decorating.

38. WHAT IS INCLUDED IN A MONTHLY MORTGAGE PAYMENT?

The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, home owner’s insurance, and mortgage insurance (if applicable).

39. WHAT FACTORS AFFECT MORTGAGE PAYMENTS?

The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

40. HOW DOES THE INTEREST RATE FACTOR IN SECURING A MORTGAGE LOAN?

A lower interest rate allows you to borrow more money than a high rate with the some monthly payment. Interest rates can fluctuate as you shop for a loan, so ask-lenders if they offer a rate “lock-in”which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan.

41. WHAT HAPPENS IF INTEREST RATES DECREASE AND I HAVE A FIXED RATE LOAN?

If interest rates drop significantly, you may want to investigate refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees.

42. WHAT ARE DISCOUNT POINTS?

Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.

43. WHAT IS AN ESCROW ACCOUNT? DO I NEED ONE?

Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for home owner’s insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments. If you use an escrow account to pay property tax or home owner’s insurance, make sure you are not penalized for late payments since it is the lender’s responsibility to make those payments.

44. WHAT STEPS NEED TO BE TAKEN TO SECURE A LOAN?

The first step in securing a loan is to complete a loan application. To do so, you’ll need the following information.

Pay stubs for the past 2-3 months
W-2 forms for the past 2 years
Information on long-term debts
Recent bank statements
tax returns for the past 2 years
Proof of any other income
Address and description of the property you wish to buy
Sales contract

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.

45. HOW DO I CHOOSE THE RIGHT LENDER FOR ME?

Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations. Once again internet research can help you in home financing too.

46. HOW ARE PRE-QUALIFYING AND PRE-APPROVAL DIFFERENT?

Pre-qualification is an informal way to see how much you maybe able to borrow. You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

47. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM?

A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details.

CLOSING

48. WHAT HAPPENS AFTER I’VE APPLIED FOR MY LOAN?

It usually takes a lender between 1-6 weeks to complete the evaluation of your application. Its not unusual for the lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified the lender will call you to let you know the outcome of your application. If the loan is approved, a closing date is set up and the lender will review the closing with you. And after closing, you’ll be able to move into your new home.

49. WHAT SHOULD I LOOK OUT FOR DURING THE FINAL WALK-THROUGH?

This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller’s responsibility to fix them.

50. WHAT MAKES UP CLOSING COST OF HOME?

There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following:

Attorney’s or escrow fees (Yours and your lender’s if applicable)
Property taxes (to cover tax period to date)
Interest (paid from date of closing to 30 days before first monthly payment)
Loan Origination fee (covers lenders administrative cost)
Recording fees
Survey fee
First premium of mortgage Insurance (if applicable)
Title Insurance (yours and lender’s)
Loan discount points
First payment to escrow account for future real estate taxes and insurance
Paid receipt for home owner’s insurance policy (and fire and flood insurance if applicable).
Any documentation preparation fees

51. WHAT CAN I EXPECT TO HAPPEN ON CLOSING DAY?

You’ll present your paid home owner’s insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc.

Once you’re sure you understand all the documentation, you’ll sign the mortgage, agreeing that if you don’t make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You’ll also sign a mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed.

You’ll pay the lender’s agent all closing costs and, in turn,he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the state Registry of Deeds, and you will be a homeowner.

52. WHAT DO I GET AT CLOSING?

Settlement Statement (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing)

Truth-in-Lending Statement

Mortgage Note

Mortgage or Deed of Trust

Binding Sales Contract (prepared by the seller; your lawyer should review it)

Keys to your new home

WHERE CAN I FIND CHEAP HOMES FOR SALE?

Visit the link below and Find Cheap Homes for Sale near you.

The 7 Home Building Mistakes

1. Finding a Home Builder with … Passion!

Do not make the largest purchase of your life, without doing your homework. If you are ready to build your dream home, you must invest the time, to learn more about the Home Builders in your area.

Before you make a final decision on who will be building your dream home, do your research. As in any industry, not all professionals are the same. Not all home builders will have the same passion for the project as you do.

“Home Builders with Passion” – In every town, there are always a few Home Builders that are so passionate about their craft, that every home they build is a “Work of Art”.

Their attention to detail, and continuous learning of new real estate construction ideas, ensure that they will always be at the top of their industry. Every home of theirs is a “Signature Piece”, reflecting the values of their company.

When you first meet a “Home Builder with Passion”, you will notice their charm, and keen listening skills. They are very similar to a great doctor. Their focus will be entirely on listening to the patient, or you the home buyer. They will have many questions, which will help them diagnose or determine your needs.

Once they understand your needs and desires… Hang On. They will begin a presentation of ideas and possibilities that will astound you. You will tour some of their previous projects, to see first hand their quality and dramatic ideas.

Their passion for their craft, and desire to build the best home each time will take you back. You will sense that they are more, than just a Home Builder. Their love of the Home Building Profession, and the pride they have in their homes will be evident. Now, the hard part, finding a “Home Builder with Passion”.

To find your “Home Builder with Passion”, you will have to do your homework. Begin by asking for referrals from friends, subcontractors in the housing industry, Interior Designers, Architects and anyone who has recently built.

Look in the Yellow Pages under Home Builders. Also, look in the real estate ads under New Real Estate Developments and New Home Construction. Next, get in the car and take a trip. Drive to some of these new subdivisions and developments.

Think of yourself as a Judge in a Parade of Homes. What is unique about each home, that is visually appealing. You are looking for clues in Unique Design and Architecture. One of the “Secrets to Great Curb Appeal” in a new home, is the importance of “Staggered Visual Lines”. Square boxes are not visually interesting, without another visual dimension added to it. Our eyes and our emotion, love to focus on… curves, angles, depth, texture, and color tones.

Take detailed notes on which style is appealing and why? Note the names of each builder. If there are workers on the job site, get out and talk to them. Who do they think is a Home Builder with Passion in your area? They love to share their thoughts. The best “Out of the Box” idea would be to bring along some donuts or snacks. A couple dozen donuts is pretty cheap, and can earn you a lot of goodwill, opening up conversations on Home Builders in your area. Note – Be sure to pick a time when they are on break or eating.

Next, pick up the phone, call to set up an appointment to meet with a number of Home Builders. Remember, great Home Builders are waiting for your call. They love to talk about what they do.

When you meet with the Home Builder, listen to their story. How are they different from the other Home Builders in the area? What is unique about their company? Ask about the materials they use. What are some of their favorite floor plans, and why? Ask to view some of their previous homes. How do they capture trends from around the world and New Home Building Construction Ideas? Do they travel to other cities? Do they attend “National Home Builders Conventions”, where many new products and new construction ideas are introduced to Home Builders, Architects and Interior Designers? Also, what were some of their biggest Home Building mistakes? This is an important question, to get a sense of their humility. What are they doing different now and why?

Again, you are looking for someone who can listen and incorporate … your needs. They must have Unique Home Design Ideas, and have a reputation in the community for building quality homes. The interview process will be a large investment of your time. Do not rush this step! You want to meet a number of Home Builders in your area. Sometimes, after a few meetings, you will begin to sense, who should build your dream home. Your homework is beginning to payoff!

Important – do not make your decision on the lowest bid. Almost anyone can make various cuts to lower their final estimate. Pricing is important, but do not be fooled by the lowest bid. You are looking for Quality Construction, Dramatic Ideas, and… Value.

Rapport is so important in the building process. You will be working together for the next 4 to 18 months, so it is important to partner with someone that can address your needs and concerns. You will soon begin to notice that, “Home Builders with Passion”, are usually the most charming too. There ability to balance your enthusiasm for the perfect home and the realities of building are what make them so unusual.

Finally, coordinating the details of a real estate construction project is not an easy task. New design changes and problems can arise everyday. How these issues are handled, can determine the final effect of the project.

Remember, when you are choosing the builder for your Dream Home, always work with a “Home Builder with Passion”.

2. Saving Money On Your Lot? … Maybe Not

If you are saving money on your lot today, you will have to pass this savings on tomorrow. The Number One Rule is … go heavy on you lot purchase. This is Critical!

Rarely, will you find a good deal on a lot. Great location comes at a price. If you are talking to a Home Builder who is promoting one of their lots, make sure you have done your homework and thoroughly analyzed the other available building lots in the area.

Do not make you decision based on price alone. Look at the other homes that are in or will be built near your location. Are they in the same price range? Are there water issues in the area? What are the current and future traffic patterns? What is the surrounding zoning? What direction does the lot face? What are the current and future schools?

Note – Location truly is everything. This is one of those decisions in life, when you cannot make a mistake. Always, go heavy on your lot investment; you will never regret this decision.

3. Common Floor Plan? … Lost Opportunities

Creating drama is much easier when building a home from the ground up. Within your building plan, you must design and designate some areas of unique opportunities. This is where you will be able to create the drama in you home. You do not necessarily have to spend a lot of money here, but you must think this process through.

The additional investment for a Tray Ceiling, Niche, Barrel Ceiling, Dome Ceiling, Unique Drywall Spaces, Dramatic Dining Room, or Grand Columned Entry Way, are minimal for what they can add to the total market value of your home.

Bring your Interior Design team together when you are drafting your floor plan. Their experience from previous projects and gift for great design can offer you a collection of ideas to introduce in your home. This additional step can ensure that you do not miss out on the many creative opportunities in the designing stage.

4. Is Your Custom Floor Plan Marketable? … Review Your Plan With An Architect

Custom floor plans are the Pinnacle of Home Building, but make sure that your dream home is marketable in the future. We have all seen floor plans that were not as well thought out, as they should have been.

If the floor plan for your dream home is truly unique, I would strongly encourage that you discuss your project with an Architect. They have the vision, to view a project from a perspective that is beyond what we can see.

Your project is too important not to go the extra mile, to get a second opinion from an Architect. Your floor plan must flow naturally, create opportunities for drama, and be marketable.

An Architect can see where there are potential problem areas, discover additional areas of opportunity, and suggest options that you may not have considered. Take advantage of their valuable insight and ideas, when you are drawing up your dream home.

Finally, someday, maybe sooner than you think, you will be selling your home. Could you sell your home tomorrow? Are there sufficient bedrooms for a variety of family sizes? What is it about your home that will generate Home Buyer’s knocking at your door?

Take the additional step to discuss your Home Plans and Home Design with an Architect. The added assurance they can bring to your Home Building Project will be well worth the time and any additional cost.

5. Lost In My Design Layers … Share A Coffee, With An Interior Designer

Once you have agreed on your floor plan, and have drafted your unique spaces or opportunities for drama, the next step is … Interior Design.

Here you will coordinate all of the layers of your Interior Design Project. This can be overwhelming at times. They will include wall colors and blends, style of carpet, unique wall finishes, Italian Venetian Plaster, Faux Finishes, or Wall Paper.

Your choices will include, type of ceiling and drywall finish, knock down style, crows feet, orange peel or a Level 5 smooth finish. Your ceiling options can range from texture to an Italian Venetian Plaster, Tin Ceiling or a unique Italian Finish, layering a patina metallo effect.

Your selection of flooring, tile, marble or wood floor, choice of wood, style of doors, wood trim, lighting decisions, style of fixtures, kitchen cabinets, bathroom cabinets, counter top styles, granite or marble. All of these decisions are difficult. But more importantly, all of these design elements must flow congruently, to create a dramatic effect throughout your home.

Sometimes this can become overwhelming. Your Home Builder can help you with many of these decisions, but keep in mind, most Home Builders do not have a background in Interior Design. I would strongly encourage you to discuss your project with an Interior Designer. Ask around for names and referrals. Everybody loves to share a name, when they have had a great experience working with a designer.

Interview a few Interior Designers. Share your project with them, ask them about some of their previous work and discuss their fees. Most people do not think they can afford an Interior Designer, this is not true. Fees can vary from nothing, to an hourly fee or a percentage.

One final thought; make sure that the final effect is a collaborative decision, and one that you truly love. If you are not comfortable with an idea, then keep looking for other options. This is not the time to hold your opinion. Share your thoughts about the direction of the Interior Design Project. The best results are when all members of your design team, Home Owner, Home Builder, Interior Designer, Architect and Professional Decorative Artist are involved in this fun, yet challenging Interior Design process.

6. Electrical Decisions … I Wish I Would Have

This has to be high on the list of regrets for many homeowners. It is so hard to visualize all of the areas where you will have future electrical needs. During the holidays it may be a receptacle on the stair landing, front porch, or separate breakers for outside lighting.

Important – go through the seasons, reviewing how all areas of your home will be used. Will a bedroom someday become a future office? Garage receptacle locations, separate light switch for outside holiday lights, entry way outlets, deck or outside activities, TV/Internet locations, Plasma TV wall outlets, ceiling speakers, (note – the speaker you don’t put in will be the one you regret) outside deck speakers, correct location for main audio equipment, present and future wiring for speakers in your current and future media rooms.

Like many of us, who are serous about their media room, I would strongly encourage you to discuss your project with a Home Theater Specialist. Their expertise will ensure that your media room is ready for the present and future systems that are not on the market yet.

Another thing to keep in mind, is the importance of lighting. When you are staging a room to create a functional and dramatic effect, this must be well thought out. There are so many lighting options available today, whether it is a wall sconce, rope lighting in a tray ceiling, unique puck lighting or shadow lighting an area, which is being staged, before a room of opportunity.

These are not quick decisions to make, you must do your homework. Discuss the various lighting options available with your supplier of lighting fixtures. Also meet with your Home Builder, Interior Design, Architect, Electrical Contractor and if, you are fortunate, a talented lighting specialist in your area.

Important – Unfortunately, many times during the home building process, you will feel like you are being rushed through the various stages. Lighting decisions are one of those steps where you need to do your homework. If you invest the time, you will be well prepared when you get the phone call to meet with your Electrical Contractor.

7. Budget Blues, Not Designating Funds For … “The Wow Effect”

Everything in the Home Building Construction process will revolve around the target budget you have in place for your new home. But almost everyday, you will be confronted with new cost overrun decisions. Some of these can be challenging to make. Determine which items are high priority and which are low on your wish list. Everything is more expensive in the future, after you have built.

Keep in mind these words … Drama, Effect, and Staging. If you truly wish for your home, not to be like every other home in your area, then you must designate some of your budget for “The Wow Effect”.

The opportunities that you have drafted and designed into your floor plan will not create the dramatic effect, if you have not provided a budget to fund them.

We have all gone through the annual Home Builders Parade of Homes, and waited in line for the 1 or 2 homes, that truly understand “The Wow Factor”.

It is hard to describe its effect. It will stop you in your tracks. You will stop and stare, trying to absorb what you are seeing. All senses are kicking in. Conversations can be heard around you.

“Wow, look at this room, what is it?”

“I love the colors. What is the finish on the walls? It is almost translucent.”

“Wallpaper is coming back?… I loved it in the Powder Room.”

“The Shadow Lighting is perfect … Wow! What a great idea.”

“What is on the Ceiling. That is really something. Who did this?”

“Did you see the Barrel Ceiling finish, is that Italian Venetian Plaster?”

“Did you feel the Dining Room Walls? Cold like stone, but felt just like marble or granite… Wow!”

“I never thought of a having a Tin Ceiling in our office, that is so … Cool.”

“You have to see the Wine Cellar, what was that on the walls? Something you would see in ancient Rome”

“Did you notice the movement of the Bedroom Ceiling? What was that?”

The very best Home Builders and Interior Designers will try to include a room that will take your breath away. It is bold, but not brash. It can change your taste in an instant. You may be standing in front of something new that was not on your color palette before. Many of your likes and dislikes are falling by the wayside. The “Wow Factor” has now pushed you out of your comfort zone.

Where do you go from here? Many times when we find something new that we love, we are hesitant to ask questions. Unfortunately, most of us will not risk, or invest the time to learn more about it.

But some… will not hesitate. Some will take the first step to learn more. Grab a cup of coffee and invest some time contacting the Home Builders, Interior Designers, and Decorative Finish Artists on these “Wow Projects”. Meet with them and share your ideas about your Home Building Project.

This will be an important investment of your time. The best in their professionals are sometimes challenging to meet with. Their schedules are always busy, but stay with it. Your passion for your Home Building project will come through in your conversation, which will impress upon them your desire to create a dramatic project.

Building “Your Dream Home” is an important goal for most families. They will save for many years before they can finally achieve this dream. But a word of caution, the Home Building process can also be very stressful. Ask anyone who has every built before, they will echo this sentiment.

Almost everyday, you will be asked to make long term and sometimes critical, home design decisions. Your emotions can run the gambit, from highs to lows, as couples try to negotiate the many Home Building options.

So before, you begin the Home Building process, if you are married, I would strongly suggest that you discuss the following rule … “Preferably, over a Glass of Wine and some Great Italian Food.”

“The Marriage Saving, Home Building Rule”

“As a couple, if you cannot agree on a Home Building Decision, then wait on the decision. Sleep on it that night. The next day, begin to look for a better idea. You will not be as emotionally charged, and together, you will come up with a much better solution.

“When emotions are high and each side has dug in, you will be glad you have discussed this rule. This will give you a reason, to set aside a difficult Home Building decision, preventing it from becoming a much bigger issue than it really is. Trust me … It Works!

Finally, study your floor plan all the time. Carry it with you and try to visualize all of the activities in your new home. There are so many opportunities that you will miss, if you do not … “Live In Your Floor Plan”. Your new house is in constant motion. Your opportunities for any change in design are… very brief.

One last thing, always keep your eyes open for new Interior Design ideas and possibilities. Talk with your Home Builder, Interior Designers, Professional Faux Finishers or Decorative Artists and Friends, discussing your project. Always listen to the ideas and experiences other people have had building. You may not use all of them, but the few ideas you do use, may help to ensure that your dream home is well on the way to creating … “The Wow Effect”.

The “New Home Building Process” is a great experience. You will never forget the memories, the lessons, the laughs, and the new friendships you have made in this exciting chapter of your life. Enjoy this … Fun Walk!

Mark Nordgren – http://www.bellafauxfinishes.com

Mark Nordgren specializes in the application of imported “Italian Venetian Plaster” and the dramatic “Italian Finishes”. As the of the few in the United States to be trained in the ancient techniques. His company “Bella Faux Finishes” has grown to be one of the leaders in the Midwest in Italian Venetian Plaster.

Although not an Interior Designer, just a passionate student of great Interior Design. He is a believer in the importance of using an Interior Designer on each project. Mark, with sons David and Michael, get the opportunity to work on some incredible projects in the Midwest.

How To Run Your Home Business Like A Real Business

Many people dream of being able to work from home. This article has all the information you need to get started with your home business.

Make sure you keep accurate records of all your home business activity. It’s easy to put off pesky record-keeping tasks till you feel like doing them, but strive to keep everything pertaining to your business up-to-date so that you won’t be confused and stressed out later on.

Develop the discipline to set aside a certain amount of your earnings to pay income taxes. Even though home business owners get a decent number of tax write-offs, there is a very good chance that you will still need to pay something to the tax man. Make sure to set aside a portion each month to avoid taking a huge cash-flow hit all in one month.

Make sure you create a mailing list as your home based business grows. Be sure to have communication below spam levels. Mailing lists are perfect for announcing sales and special events within your company. Some businesses use the mailing list to circulate miscellaneous articles that contain relevant information. Add a signup area on your website for people to join your list.

Attend seminars that discuss how to start a home business. The Small Business Adminstration is one organization that offers such seminars free of charge. Look online for other organizations offering seminars or classes in your area. Be wary of anyone offering a seminar that promises dramatic results in a very short time frame. Starting and running any business takes time, effort and dedication.

Determine how much it costs to make your product if you run a home business. You should charge others twice this amount for wholesale and twice the amount of wholesale for retail. If you do not have an accurate estimate of how much it costs for your product, you will not be able to charge others the correct amount.

Starting a home business can often seem to be a daunting task, but by organizing yourself beforehand you will have more chance for success. The very first thing you should do is to sit down, and write out a step by step plan for how you can implement your business. This will help you to know what to do next.

When you are ready to write a business plan for your new business, get some help from experts. This does not mean that you have to spend hundreds of dollars to hire a business consultant. You can find many books in the library, containing sample business plans for every type of business imaginable. You can also find samples from online resources.

When starting your home business you will want to go the post office and get a PO Box for mail that is sent to the business. There are a lot of crazy people in the world and you do not want to invite them to your front door by having your home address as the mailing address for your business. A PO Box is a safe and affordable way to avoid hassles.

As this article has shown you, there are quite a few things that you’re able to do to make working at home successful for you. Keep what you’ve just learned in mind as you go about your business. Best wishes for your home business!