page115 2007-11-09T12:17:37.313-07:00 Where_do_I_get_information_on_h 2007-11-09T12:17:37.313-07:00 A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved When_is_the_best_time_to_buy 2007-11-09T12:17:19.048-07:00 Here are some frequently cited reasons for buying a house:<br /><br />* You need a tax break. The mortgage interest deduction can make home ownership very appealing.<br /><br />* You are not counting on price appreciation in the short term.<br /><br />* You can afford the monthly payments.<br /><br />* You plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home include real estate commissions, lender fees and closing costs that can amount to more than 10 percent of the sales price.<br /><br />* You prefer to be an owner rather than a renter.<br /><br />* You can handle the maintenance expenses and headaches.<br /><br />* You are not greatly concerned by dips in home values.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_is_the_standard_debt-to-in 2007-11-09T12:17:04.016-07:00 A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage payment, combined with all other debts, to 36 percent of the total.<br /><br />The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income.<br /><br />Other real estate experts tell borrowers facing rejection to compensate for negative factors by saving up a larger down payment. Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent or more of the purchase price.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved _What_is_Fannie_Maes_low-down_p 2007-11-09T12:16:44.784-07:00 Fannie Mae is expanding the availability of low-down-payment loans in an effort to help more people nationwide qualify for a mortgage.<br /><br />Two new programs will help potential buyers overcome two of the most common obstacles to home ownership, low savings and a modest income.<br /><br />To address many first-time buyers' struggles to save the down payment, Fannie Mae developed Fannie 97. The program provides 97 percent financing on a fixed-rate mortgage with either a 25- or 30-year loan term through Fannie Mae's Community Home Buyers Program.<br /><br />Fannie Mae's new Start-Up Mortgage will assist buyers with a 5 percent down payment who are at any income level. Yet applicants do not need as much income to qualify and less cash for closing than with traditional mortgages. Borrowers will receive a 30-year, fixed-rate mortgage with a first-year monthly payment that is lower than the standard fixed-rate loan.<br /><br />Freddie Mac, Fannie Mae's counterpart, also offers low-down-payment loan programs.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_can_I_afford 2007-11-09T12:16:27.783-07:00 Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. In general, lenders don't want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts.<br /><br />It pays to check with several lenders before you start searching for a home. Most will be happy to roughly calculate what you can afford and prequalify you for a loan.<br /><br />The price you can afford to pay for a home will depend on six factors:<br /><br />1. gross income<br /><br />2. the amount of cash you have available for the down payment, closing costs and cash reserves required by the lender<br /><br />3. your outstanding debts<br /><br />4. your credit history<br /><br />5. the type of mortgage you select<br /><br />6. current interest rates<br /><br />Another number lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance (or PITI as it is known). If you have to pay monthly homeowners association dues and/or private mortgage insurance, this also will be added to your PITI.<br /><br />This ratio should fall between 28 to 33 percent, although some lenders will go higher under certain circumstances. Your total debt-to-income ratio should be in the 34 to 38 percent range.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_long_do_bankruptcies_and_fo 2007-11-09T12:15:46.336-07:00 Bankruptcies and foreclosures can remain on a credit report for seven to 10 years.<br /><br />Some lenders will consider an borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender's decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_much_will_I_spend_on_mainte 2007-11-09T12:15:46.079-07:00 Experts generally agree that you can plan on annually spend 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved WHAT_YOU_CAN_AFFORD 2007-11-09T12:15:31.448-07:00 answer Where_do_I_get_information_on_c 2007-11-09T12:14:38.594-07:00 For information on co-operative housing, contact the National Association of Housing Cooperatives, 1707 H Street, N.W., Suite 201, Washington, D.C., 20006; (202) 737-0797; <a href="http://www.coophousing.org/" rel="external" title="Co-Op Housing">coophousing.org</a>.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Can_a_co-owner_force_someone_of 2007-11-09T12:14:06.722-07:00 In some states, a co-owner often can force the sale of a shared property by filing a so-called partition action. In such a situation, if the severance is granted, the property would be sold and the owners would split the proceeds proportionate to their interest in the property.<br /><br />You should check your title for any references to such a severance action. You may need to consult a real estate attorney.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved TENANTS-IN-COMMON_AND_CO-OPS 2007-11-09T12:13:42.906-07:00 answer Where_can_I_get_a_list_of_home_ 2007-11-09T12:12:36.801-07:00 For a list of home builders, contact the National Association of Home Builders at 1201 15th St., N.W., Washington, DC 20005; (800) 368-5242, <a href="http://www.nahb.org/" rel="external" title="National Association of Home Builders">nahb.org</a>; or your local Building Industry Association office.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_are_some_new-home_cautions 2007-11-09T12:12:04.052-07:00 When you buy a resale home, you can find out a lot more about the property and the neighborhood before you buy than when you buy a new home.<br /><br /><br /><br />Land to support new-home developments usually is located on the outskirts of town. Potential buyers should ask the developer about future access to public transit, entertainment activities, shopping centers, churches and schools. Find out how far it is to the nearest library, for example.<br /><br />Local zoning ordinances also should be reviewed. A rather remote area can turn into a fast-food-chain haven within a couple of years. Try to ensure that the neighborhood, if not strictly residential, will not begin sprawling out of control.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_are_considerations_to_buyi 2007-11-09T12:11:42.868-07:00 Builders may have a target market in mind for their new-home projects. Some may tout communities as glamorous to upscale urban professionals seeking amenities such as a golf course, hot tubs and tennis courts. Yet a playground and swimming pool might be central to a project geared toward families while the next one offers seniors a walking trail and an easy-to-care-for yard.<br /><br />Do not be tempted to move into a "glamorous" community where you might be able to afford the house but not the lifestyle. In addition, similar-looking new houses often come complete with restrictions imposed by the developer on house color, landscaping, renovations and anything else a homeowner possibly could do to make their house deviate from the preferred look.<br /><br />Marketing experts try to appeal to buyer's tastes by their promoting images for their developments. Don't buy into it. Form your own opinions and only buy a home where you feel comfortable. After all, you're going to have to live there.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_about_new_versus_previousl 2007-11-09T12:11:20.698-07:00 Although new homes typically have a higher sales price than comparable existing homes, buyers are willing to spend more upfront with an understanding that part of what they are paying for is assured low maintenance costs. A builder's warranty, along with brand-new roof, appliances, furnace and other operating systems that make major repairs unnecessary, work together to counteract possible slower appreciation initially.<br /><br />Data from the U.S. Census Bureau's American Housing Survey suggest that operating costs per house are lowest for brand-new homes, slightly higher for relatively new existing homes but lower on average for older existing homes. Measured per square foot of living space, however, operating costs are consistently higher for progressively older existing homes.<br /><br />Utility costs are the largest component of operating costs. Energy consumption per square foot depends on size of the home, insulation, window quality, air leakage and efficiency of the furnace. Operating costs also include expenditures for both routine maintenance and major repairs.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Should_I_hire_a_home_inspector_ 2007-11-09T12:10:54.801-07:00 Most experts recommend having a home inspected, new or old. For new home, ask the builder to provide copies of any inspection reports on the property, architectural plans, surveys and pertinent construction documents for your inspector to review. Your inspector should either be a professional home inspector, an engineer, an architect or a contractor.<br /><br />If you hire a professional inspector, look for one who belongs to one of the home inspection trade organizations. The American Society of Home Inspectors (ASHI) has developed formal inspection guidelines and a professional code of ethics for its members. Membership to ASHI is not automatic; proven field experience and technical knowledge about structures and their various systems and appliances are a prerequisite.<br /><br />Rates for the service vary greatly. Many inspectors charge about $400, but costs go up with the scope of the inspection.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Do_builders_give_financing 2007-11-09T12:10:26.999-07:00 Builders often include financing programs to help move more buyers into a project early on. If it's a buyer's market in your area, you can be sure that developers will offer incentives such as low-down-payment financing.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved NEW_HOMES__VACATION_HOMES 2007-11-09T12:09:42.286-07:00 answer Where_do_I_learn_about_HUD_fore 2007-11-09T11:30:36.381-07:00 One good source is their Web page <a href="http://www.hud.gov/" rel="external" title="HUD.com Homepage">hud.gov</a>.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Where_can_you_find_foreclosures 2007-11-09T11:29:52.067-07:00 In most states, a foreclosure notice must be published in the legal notices section of a local newspaper where the property is located or in the nearest city. Also, foreclosure notices are usually posted on the property itself and somewhere in the city where the sale is to take place.<br /><br />When a homeowner is late on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The financial institution that has initiated foreclosure proceedings usually will set the bid price at the loan amount.<br /><br />Despite these seemingly straightforward rules, buying foreclosures is not easy as it may sound. Sophisticated investors use the technique so novices may find themselves among stiff competition.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Where_can_you_find_foreclosed_H 2007-11-09T11:29:19.369-07:00 The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors.<br /><br />You can only buy HUD-owned properties through a licensed real estate broker, whose commission will be paid by HUD.<br /><br />Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range 5 to 20 percent. When the property is FHA-insured, the down payment can go much lower. Each accepted offer must be accompanied by an "earnest money" deposit equal to 5 percent of the bid price not to exceed $2,000, but not less than $500.<br /><br />You should be aware that HUD homes are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_types_of_foreclosure_are_t 2007-11-09T11:28:58.479-07:00 Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lienholder on property requests a court-supervised sale of the property to cover the unpaid balance of a delinquent debt.<br /><br />Nonjudicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_happens_at_a_trustee_sale 2007-11-09T11:28:36.759-07:00 Trustee sales are advertised in advance and require an all-cash bid. The sale is usually conducted by a sheriff, a constable or lawyer acting as trustee. This kind of sale, which usually attracts savvy investors, is not for the novice.<br /><br />In a trustee sale, the lender who holds the first loan on the property starts the bidding at the amount of the loan being foreclosed. Successful bidders receive a trustee's deed.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_about_buying_a_foreclosure 2007-11-09T11:28:16.934-07:00 Buying a foreclosure property can be risky, especially for the novice. Usually, you buy a foreclosure property as is, which means there is no warranty implied for the condition of the property (in other words, you can't go back to the seller for repairs). The condition of foreclosure properties is usually not known because an inspection of the interior of the house is not possible before the sale.<br /><br />In addition, there may be problems with the title, though that is something you can check out before the purchase.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_you_get_financing_for_a_ 2007-11-09T11:27:57.828-07:00 One reason there are few bidders at foreclosure sales is that it is next to impossible to get financing for such a property. You generally need to show up with cash and lots of it, or a line of credit with your bank upon which you can draw cashier's checks.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_you_find_government-repo 2007-11-09T11:27:38.763-07:00 The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors.<br /><br />You can only purchase HUD-owned properties through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.<br /><br />Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from the conventional market's 5 to 20 percent.<br /><br />One caution. HUD homes are sold "as is," meaning limited repairs have been made made but no structural or mechanical warranties are implied.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Do_you_have_to_buy_HUD_homes_th 2007-11-09T11:27:14.283-07:00 You can only purchase a U.S. Department of Housing and Urban Development property through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Can_I_get_a_HUD_home_for_as_lit 2007-11-09T11:26:07.312-07:00 If you are strapped for cash and looking for a bargain, you may be able to buy a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down.<br /><br />With HUD foreclosures, down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from 5 to 20 percent. But when the property is FHA-insured, the down payment can go much lower.<br /><br />Each offer must be accompanied by an "earnest money" deposit equal to 5 percent of the bid price, not to exceed $2,000 but not less than $500.<br /><br />The U.S. Department of Veterans Affairs also offers foreclosure properties which can be purchased directly from the VA often well below market value and with a down payment amount as low as 2 percent for owner-occupants. Investors may be required to pay up to 10 percent of the purchase price as a down payment. This is because the VA guarantees home loans and often ends up owning the property if the veteran defaults.<br /><br />If you are interested in purchasing a VA foreclosure, call (800) 827-1000 About 100 new properties are listed every two weeks.<br /><br />You should be aware that foreclosure properties are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_foreclosures_an_option 2007-11-09T11:25:42.303-07:00 A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems or unexpected expenses.<br /><br />It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgements are cleared or at least disclosed.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved FORECLOSURES 2007-11-09T11:25:32.272-07:00 answer Where_are_fixer-uppers_found 2007-11-09T11:25:10.468-07:00 You can find distressed properties or fixer-uppers in most communities, even wealthier neighborhoods. A distressed property is one that has been poorly maintained and has a lower market value than other houses in the immediate area.<br /><br />Ascertaining whether the property you're interested in is a wise investment takes some work. You need to figure what the average house in a given area sells for, as well as what the most desirable houses in that area are like and what they cost.<br /><br />Some experts suggest that buyers who take this route try to find a "cosmetic fixer" that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping and new appliances. You should avoid run-down houses that need major structural repairs. A house price that looks too good to be true probably is. A smart buyer will find out why before buying it.<br /><br />The basic strategy for a fixer is to find the least desirable house in the most desirable neighborhood, and then decide if the expenses needed to bring the value of that property up to its full potential market value are within one's rehab budget.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_kind_of_return_is_there_on 2007-11-09T11:24:47.283-07:00 Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.<br /><br />Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_are_some_resources_for_inf 2007-11-09T11:23:55.059-07:00 If you're getting ready to embark on a home improvement project involving contracting help, "Ready, Set, Build: A Consumer's Guide to Home Improvement Planning Contracts" lays out a road map for selecting the right contractor, obtaining competitive bids up to what to include in a contract. There also is information on consumer rights, liens and financing.<br /><br />The book is available for $9.95 through Consumer Press and Women's Publications, Inc., 13326 Southwest 28th St., Fort Lauderdale, FL 33330-1102; (954) 370-9153, bookguest@aol.com.<br /><br />* Remodeling magazine's annual "Cost vs. Value Report", available for a nominal fee from the magazine; call (717) 399-1900, ext<br /><br /> Copyright &copy; 2007 Inman News<br />All Rights Reserved What_are_some_guidelines_to_fol 2007-11-09T11:23:35.090-07:00 While hiring contractors recommended by friends is usually a safe route, never hire a construction professional without first checking him or her out. If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call your local Better Business Bureau to see if there are any complaints on file.<br /><br />If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone numbers so you can verify the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.<br /><br />If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.<br /><br />Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contractor at the first meeting. You may end up losing your money.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_there_programs_for_fixer-up 2007-11-09T11:23:14.248-07:00 If you need home loan to buy a "fixer-upper" and remodel it, look at the U.S. Department of Housing and Urban Development's Section 203(K) loan program. The program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.<br /><br />A 203(K) loan is usually done as a combination loan to purchase a "fixer-upper" property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.<br /><br />Investors no longer may participate - only owner-occupants. Owner-occupants are required to come up with only 3 to 5 percent. HUD requires that a minimum of $5,000 be spent on improvements.<br /><br />Two appraisals are required. Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_there_govt_programs_for_reh 2007-11-09T11:22:02.116-07:00 The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.<br /><br />The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.<br /><br />Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.<br /><br />For a list of participating lenders, call HUD at (202) 708-1112.<br /><br />If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.<br /><br />Another program is the Fedeal Housing Administration's Title 1 FHA loan program.<br /><br />Resources:<br /><br />* "Rehab a Home With HUD's 203(K)" brochure, U.S. Department of Housing and Urban Development, Washington, D.C.;<a href="http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm" rel="external" title="Rehab a home withs HUD&apos;s 203 K"> brochure online</a>.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_there_any_special_tax_break 2007-11-09T11:20:54.186-07:00 Qualified rehabilitated buildings and certified historic structures currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government.<br /><br />The tax code does not allow deductions for the demolition or significant alternation of a historic structure.<br /><br />Resources:<br /><br />* National Trust for Historic Preservation, 1785 Massachusetts Ave, NW, Washington, DC 20036-2117; (202) 588-6000, <a href="http://www.nationaltrust.org/" rel="external" title="National Trust for Historic Preservation">nationaltrust.org</a>.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_fixers_a_good_idea_in_bad_a 2007-11-09T11:20:28.663-07:00 It depends. Distressed properties or fixer-uppers can be found anywhere, even in wealthier neighborhoods. Such properties are poorly maintained and have a lower market value than other houses in the neighborhood.<br /><br />Many experts recommend that before you make such an investment, first find the least desirable house in the best neighborhood. Then do the math to see if what it would cost to bring up the value of that property to its full potential market value is within your budget. If you are a novice buyer, it may be wiser to look for properties that only need cosmetic fixes rather than run-down houses that need major structural repairs.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved FIXER-UPPERS 2007-11-09T11:20:12.720-07:00 answer How_do_you_choose_between_condo 2007-11-09T11:19:34.664-07:00 Using appreciation as a measure, condominiums in some areas have been as profitable an investment as single-family homes in the past five years. And in some markets, condos appreciated even more, according to some experts.<br /><br />While single-family homes have been the preferred investment by home buyers, changing demographics are helping make condos more popular, especially among single home buyers, empty nesters and first-time buyers in high-priced markets.<br /><br />Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_I_figure_out_the_homeown 2007-11-09T11:19:10.516-07:00 Learn everything you can about the homeowners association before you buy into a development governed by one. The association's financial, political and legal conditions are very important to your investment and quality of life.<br /><br />When run properly, homeowners associations maintain the common grounds and keep civility in the complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues.<br /><br />Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association’s covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your CDs late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board.<br /><br />Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on.<br /><br />Call and meet with the association president. If you are the type of person who despises intrusions into your private life and the president seems more interested in gossip about the residents than maintaining the property, this may not be the right condo complex for you.<br /><br />Speak with residents to get their views on the association's finances, its property manager, how it operates and any politics. Associations are volunteer organizations with elected boards, like a mini-government, so politics can enter the picture and spoil a good thing.<br /><br />Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Do_condos_have_to_be_made_acces 2007-11-09T11:18:37.729-07:00 The 1990 Americans with Disabilities Act does not require strictly residential apartments and single-family homes to be made accessible. But all new construction of public accommodations or commercial projects (such as a government building or a shopping mall) must be accessible. New multi-family construction also falls into this category.<br /><br />In all states, the Federal Fair Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren't accessible to the disabled.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Can_condos_ban_smoking 2007-11-09T11:17:05.833-07:00 A homeowners association's board of directors can restrict smoking if it applies to indoor common spaces such as hallways or recreation rooms. Outdoor spaces are a different story, say legal experts. Any restriction would probably hinge on local laws (i.e. if a city banned smoking outdoors, a homeowners association probably could restrict smoking in its outdoor spaces).<br /><br />Typical covenants, codes and restrictions (CC&Rs), which govern condo associations, give the board authority to make and enforce reasonable rules for the use of common property. But that would not apply to interior spaces owned by smokers themselves. Resources: Can_a_condo_association_ban_nud 2007-11-09T11:16:46.772-07:00 Could you sunbathe in the nude on your own balcony? Not necessarily. In a condominium development, a balcony is not considered private property but common property assigned to your exclusive use - but a common area nonetheless.<br /><br />Covenants, codes and restrictions (CC&Rs) usually spell out what activities can and cannot be conducted on common property. Some associations prevent people from barbecuing on their balconies or hanging large plants from the railings. However, the larger issue of regulating personal conduct is not so clear-cut. It literally depends on what side of the fence you're on.<br /><br />If the sunbather can be seen from a public vantage point -- not by someone who must climb a tree or peer through binoculars -- then the rule probably would be considered reasonable, say legal experts.<br /><br />Incidentally, there are places where nudity is tolerated but again, only out of public view.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_one-bedroom_condominiums_a_ 2007-11-09T11:16:24.156-07:00 One-bedroom condominiums historically have not been considered as good an investment as condos with two bedrooms or more. But in high-cost markets, such as Manhattan or the San Francisco Bay Area, one-bedroom condos have proven to be equally good investments. Helping that along are changing demographic trends. With more single home buyers in the market today than at any time in history, there is more demand for one-bedroom condos.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_condos_a_good_investment 2007-11-09T11:16:02.803-07:00 Condominiums have held their value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in the past few years than when they first came on the scene in the late 1970s and early 1980s, experts say.<br /><br />While there are lots of reports about homeowners association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past.<br /><br />Meanwhile, changing demographics are making condominiums more attractive investments for single home buyers, empty nesters and first-time buyers in expensive markets.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Are_condominiums_risky_to_buy 2007-11-09T11:15:29.337-07:00 While condos never had the kind of appreciation experienced by single-family homes in the go-go 1980s, most ultimately have not lost value, say some experts. And with high prices in many urban markets and more single home buyers in the market than ever before, the market for condos is strong.<br /><br />As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer).<br /><br />The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes. CONDOMINIUMS__TOWNHOMES 2007-11-09T11:14:30.111-07:00 answer What_about_a_buyers_agent 2007-11-09T11:08:15.012-07:00 In many states, it's now common for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. More and more buyers are going a step further, hiring and paying for their own agent, referred to as buyers brokers.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_you_find_a_good_agent 2007-11-09T11:07:36.825-07:00 Getting a recommendation from a friend or work colleague is an excellent way to find a good agent, whether you are a buyer or a seller. Be sure to ask if they would use the agent again.<br /><br />You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood.<br /><br />A good agent typically works full-time and has several years of experience at minimum.<br /><br />If you are a buyer, you don't usually pay for your agent's services (in the form of a commission, or percentage of the sales price of the home). All agents in a transaction usually are paid by the seller from the sales proceeds. In many states, this means that your agent legally is acting as a subagent of the seller. But in some states, it's legal for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. You also can hire and pay for your own agent, known as buyer's brokers, whose legal obligation is exclusively to you.<br /><br />If you are a seller, you should interview at least three agents, all of whom should make a sales presentation including a comparative market analysis of local home prices in your area. The best choice isn't always the agent with the highest asking price for your home. Be sure to evaluate all aspects of the agent's marketing plan and how well you think you can work with the individual.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_I_find_a_real_estate_age 2007-11-09T11:07:05.153-07:00 Getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood. In any case, whether you are a buyer or a seller, you should interview at least three agents to give yourself a choice.<br /><br />A good agent typically works full-time and has several years of experience. If you are a seller, you should expect to review a comparative market analysis, which includes recent home sale prices in your area, when you talk to a prospective agent.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Can_I_use_an_agent_for_a_new_ho 2007-11-09T11:06:23.950-07:00 Yes, however buyers should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents.<br /><br />Builders commonly require that an outside agent be present, and sign in, the first time a prospective purchaser visits a site before payment of commission even is discussed. At times when buyers use an advertisement to find the development themselves first, builders can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are using one.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved WORKING_WITH_A_REAL_ESTATE_AGEN 2007-11-09T11:06:09.241-07:00 answer Where_do_I_get_information_on_I 2007-11-09T10:57:54.880-07:00 The Internal Revenue Service publishes a number of real estate publications. They are listed by number:<br /><br />* 521 "<a href="http://www.irs.gov/pub/irs-pdf/p521.pdf" rel="external" title="IRS Moving Expenses">Moving Expenses</a>"<br /><br />* 523 "<a href="http://www.irs.gov/pub/irs-pdf/p523.pdf" rel="external" title="IRS Selling your home">Selling Your Home</a>"<br /><br />* 527 "<a href="http://www.irs.gov/pub/irs-pdf/p527.pdf" rel="external" title="Residential rental property and the IRS">Residential Rental Property</a>"<br /><br />* 534 "<a href="http://www.irs.gov/pub/irs-pdf/p534.pdf" rel="external" title="IRS Housing depeeciation">Depreciation</a>"<br /><br />* 541 "<a href="http://www.irs.gov/pub/irs-pdf/p541.pdf" rel="external" title="IRS Tax Partner Information">Tax Information on Partnerships</a>"<br /><br />* 551 "<a href="http://www.irs.gov/pub/irs-pdf/p551.pdf" rel="external" title="IRS Basis of assets">Basis of Assets</a>"<br /><br />* 555 "<a href="http://www.irs.gov/pub/irs-pdf/p555.pdf" rel="external" title="IRS information on community property">Federal Tax Information on Community Property</a>"<br /><br />* 561 "<a href="http://www.irs.gov/pub/irs-pdf/p561.pdf" rel="external" title="Value of donated property">Determining the Value of Donated Property</a>"<br /><br />* 590 "<a href="http://www.irs.gov/pub/irs-pdf/p590.pdf" rel="external" title="Induvidual retirment arrangments">Individual Retirement Arrangements</a>"<br /><br />* 908 "<a href="http://www.irs.gov/pub/irs-pdf/p908.pdf" rel="external" title="Bankruptcy and debt cancellation">Bankruptcy and Other Debt Cancellation</a>"<br /><br />* 936 "<a href="http://www.irs.gov/pub/irs-pdf/p936.pdf" rel="external" title="Home mortgage interest deductions">Home Mortgage Interest Deduction</a>"<br /><br />These publications are available for free online or by calling (800) TAX-FORM.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_is_the_Mortgage_Credit_Cer 2007-11-09T10:57:21.987-07:00 The Mortgage Credit Certificate program allows first-time home buyers to take advantage of a special federal income tax credit. This program allows buyers credit in qualifying for the tax advantage they'll receive after they purchase the home.<br /><br />The amount of the credit is tied to a local formula that every city with an MCC program must follow. A MCC credit, which can total $2,000 or more, reduces the borrower's federal tax liability by an amount tied to how much one pays in annual mortgage interest. Both the borrower's income and the purchase price of the home must fall within established guidelines.<br /><br />To see if your community has an MCC program, call your local housing or redevelopment agency. You also may inquire with your real estate broker or the local association of Realtors.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_home-buying_costs_are_dedu 2007-11-09T10:57:01.180-07:00 Any points you or the seller pay to purchase your home loan are deductible for that year. Property taxes and interest are deductible every year.<br /><br />But while other home-buying costs (closing costs in particular) are not immediately tax-deductible, they can be figured into the adjusted cost basis of your home when you go to sell (any significant home improvements also can be calculated into your basis). These fees would include title insurance, loan-application fee, credit report, appraisal fee, service fee, settlement or closing fees, bank attorney's fee, attorney's fee, document preparation fee and recording fees. Points paid when you refinance an existing mortgage must be deducted ratably over the life of the new loan.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved What_are_the_rules_for_mortgage 2007-11-09T10:56:33.956-07:00 To qualify for a mortgage credit certificate, both your income and the purchase price of the home must fall within established city guidelines. These guidelines vary by city but generally only permit people who earn an average income or slightly higher than average income.<br /><br />A limited number of cities have authorized the MCC program. Contact your municipal housing department for more information.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved Should_I_buy_a_vacation_home 2007-11-09T10:56:02.593-07:00 Today a vacation home can be purchased for investment purposes as well as enjoyment. And yes, there are tax benefits.<br /><br />Some people buy a vacation home with the idea of turning it into a permanent retirement home down the road, which puts them ahead on their payments. Another benefit is that the interest and property taxes are tax deductible, which helps to offset the cost of paying for a second home. A vacation home also can be depreciated if you live in it fewer than 14 days a year, or 10 percent of the rented days - whichever is greater. How_do_you_choose_between_bu101 2007-11-09T10:55:36.402-07:00 Home ownership offers tax benefits as well as the freedom to make decisions about your home. An advantage of renting is not worrying about maintenance and other financial obligations associated with owning property.<br /><br />There also are a number of economic considerations. Unlike renters, home owners who secure a fixed-rate loan can lock in their monthly housing costs and make prudent investment plans knowing these expenses will not increase substantially.<br /><br />Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. However, such returns depend on home-price appreciation.<br /><br />Copyright &copy; 2007 Inman News<br />All Rights Reserved How_do_I_save_on_taxes