How To Chose A Neighborhood

Location is everything when you’re searching for a home. Finding your dream neighborhood may seem like the easiest part, but once you factor in budget, non-negotiable home features, and proximity to the things you can’t live without, it may be less obvious where you should live. When it comes to searching for a new neighborhood, here’s what you need to know. 

Property Taxes
Property taxes can play a huge role in your overall cost of living. To get a sense of what your property taxes might look like in a particular county, check out this simple property tax map. Also, property taxes for specific homes are typically included in online property listings. 

What to consider: How much will my property taxes be? 

Safety and Crime
Before you sign on the dotted line, search sites like City-Data.com and CrimeReports to get a sense of the safety level of a particular neighborhood. As with all homebuying decisions, determining what level of crime you feel safe with is all part of the process of choosing a neighborhood.

Your real estate agent can guide you to various resources to help you answer questions about the neighborhood, but can’t voice an opinion about it per the Fair Housing Act. The act aims to provide equal access to housing for all groups of people and to protect against discrimination.

What to consider:
• What is the crime rate in this particular neighborhood? How about the neighborhood next door?
• What level of crime do I feel comfortable with? 

Topography and Geography
Land geography can play a role in costs — especially if you’re overlooking a scenic vista or you’re right by the water. On the flipside, look out for flood zones or other danger-prone areas when making a decision.

What to consider: 
• Do I need special insurance in addition to homeowners insurance? 
• Is this property in a flood zone?

Property Value
If there have been some sales recently, then you can get a better idea of the potential value of the homes in the neighborhood. Typically, homes of the same type in the same location will sell within a few thousand dollars of each other. When looking at homes, your agent will pull listings of comparable properties, or comps, to see what other similar homes sold for so you can see if the home you’re interested in is priced correctly. 

Question(s) to ask:
• What are the comps in this area? 
• What’s the projected growth rate for this area? 

School Zones
School zones come to mind when thinking of location, especially if you have children (or plan to have them soon), as they tend to affect home values. If schools are important to you, evaluate the schools in your neighborhood and which homes fall into which district. Additionally, there may be community centers or parks that increase the value of the neighborhood.

What to consider:
• What school would my child attend if we moved here?
• Are there parks or community centers in this area?

Using these factors as a guide for finding the right neighborhood can help you evaluate what you care about and make the decision that’s right for you

5 Steps You Can't Skip During Escrow

The escrow process, which is also known as closing or settlement, is the endgame of the home-buying process. It is when the buyer, seller and other necessary parties get together to seal the deal.While your real estate agent and lender may assist you during the process, you should prepare yourself by knowing what to expect once you are in the thick of it.

To do so, brush up on these five prominent hurdles you’ll face during the escrow process.

Escrow Steps for Success

1. Have a Solid Contract

The sales contract or purchase agreement is the blueprint for the escrow process. The real estate agent or attorney typically writes the contract. It should clearly state the terms of the deal and what must occur before escrow closes and the property changes hands. It should not contain blank spaces.

The contract will include details about these specifics:

*What happens if the agreement fails

*What personal property is included in the deal

*The closing date

*What happens if escrow is delayed

*Who pays what cost

*Financing arrangements

*Occupancy date

2. Clear Contingencies

Contingencies are contractual conditions that must be met before the contract becomes official. Inspection, appraisal, and financing are common examples, although contingencies can be written for any event or issue. Contingencies come with a time limit to complete the task.

Once each contingency is completed, the buyer and seller should sign a document removing the contingency from the contract.

3. Review Title Reports

Typically, there are two title reports: a preliminary report and a final report with title insurance. Review the preliminary report to verify the legal description of the property and to learn about any liens, encumbrances or other items affecting the property’s title.Later, with the final title report, make sure the title is clear and the title or escrow agent knows how you want to take title to the property.

Common titles are as follows:

*Joint tenancy

*Tenancy in common

*Tenants by entirety

*Community property

*Sole property

4. Track Transaction Costs

In the end, title and escrow costs are combined with mortgage and other transaction costs on federally mandated closing documents. Obtain a Good Faith Estimate to gauge what these costs may be. Then compare them to the HUD-1 Settlement Statement, which is the final line-by-line list of all mortgage and closing costs.

If there are significant discrepancies between the GFE and the HUD-1 Settlement Statement, ask about them, as they may be open for dispute.

5. Be Prepared on Closing Day

On closing day, come to the table only after reading and fully understanding your HUD-1. Bring a pen and paper for taking notes, an attitude of good faith, plenty of time and the willingness to back out if the deal doesn’t follow contractual guidelines. Parties present at closing include these particulars:

*Lender

*Seller

*Seller’s real estate agent

*Closing agent

*Attorneys for you, the lender or both

The buyer will deposit any escrow payments and sign necessary documents. The seller signs over the deed and closing statements and receives any money due.

After signing, the deed and mortgage documents are delivered to the county courthouse or other government repository for recording as public records.

The 5 Most Popular LA Neighborhoods

From celebrity sightings to basking on beaches in November, Los Angeles living provides year-round outdoor fun. However, Los Angeles residents enjoy more than just warm weather – their city is home to some of the most upscale neighborhoods in the country.

While it may sound like a great idea, moving to LA can be an intimidating, expensive transition for non-natives. The LA metro area encompasses multiple districts, each with individual benefits and drawbacks. Interested in becoming a SoCal transplant? Consider these five top neighborhoods.

 

Beverly Hills

It’s no surprise Beverly Hills real estate is consistently among the best in the United States. The median home value is a steep $2.58 million, which stretches far beyond most house hunters’ budgets. Correspondingly, the median household income is $70,945, which is a far cry from the $44,512 national median. Aside from the rich and famous, most residents here fall into one of three categories: urban dwellers from foreign countries, educated professionals with high incomes and college graduates with high expenses. The cost of living in Beverly Hills is extremely high, making it an impractical choice for many – except those who are heir to a corporate fortune or relatives of entertainment industry royalty.

Highland Park

Often referred to as the West coast’s Brooklyn, Highland Park is home to a diverse mix of urban families and wealthy singles. Highland Park dwellers make about $34,791 per year. Highland Park homes have consistent increasing values, rendering it a smart neighborhood for home purchases. The median home value in Highland Park is $518,900, which is a 19.2 percent increase from 2013. Highland Park features upscale shopping and dining, as well as access to the Gold Line for a no-hassle commute to downtown.

 

 

Los Feliz

A bit more on the expensive side than some other LA districts, Los Feliz’s median home value is $1.09 million. Los Feliz home values have increased 8.8 percent over the last year, and Zillow projects a 4.1 percent increase by March of 2015. Compared to Los Angeles homes for sale, which have a median list price of $540,000, Los Feliz homes for sale are listed for about $1.33 million. The majority of residents are in their 30s without children. In fact, 82.9 percent of the homeowners in the region do not have children, so consider other neighborhoods when searching for family-oriented atmospheres. The median household income in Los Feliz surpasses the national median at $46,113. Most residents here enjoy post-graduate educations, mid-management professions and higher incomes.

 

Silver Lake

Silver Lake is most well-known for its eclectic culture and unique residents, thanks to Forbes’ “Best Hipster Neighborhood” designation two years ago. In addition to an abundance of coffee shops and artsy occupations, Silver Lake has some of the best food carts and locally-owned bars in the city. Silver Lake’s median home value is $800,600. The 15 percent increase in home values since last year indicates a strong, ascending housing market and great investing opportunities. The typical income in Silver Lake falls around $44,949, which is slightly higher than the national median. Most residents here are urban, young professional singles with mid-range incomes. Silver Lake’s living expenses are less than other areas, yet the neighborhood is still considered upscale.

 

West Hollywood

Also known as WeHo, this neighborhood is Beverly Hills’ more frugal and trendy younger sister. West Hollywood real estate features a median home value of $640,700, which is an 18.3 percent increase year-over-year. Most WeHo residents are big-spending young professionals and urban singles with a median income of $38,914. The majority (52.9 percent) of residents here are not married, so families might consider more kid-friendly locales. Like all city neighborhoods, there are good and bad areas, so make sure to research specific apartment buildings and sub-neighborhoods before blindly relocating.

Although these neighborhoods differ in their economic makeup, they are all fantastic options for future LA residents. The most important aspect of searching for homes in any city is ensuring that surrounding areas fit individual needs. Investigate parks, schools, nightlife and commute times to determine the best neighborhoods.

In a sellers' market: 3 ways for buyers to win a bidding war

Barely 12 months ago, buyers could confidently peruse piles of listing sheets before making a lowball offer and getting a nice discount off the list price.
Not anymore. Last month, there were about 44% fewer homes on the market in Chicago than in February of last year, according to Midwest Real Estate Data. The city had only a 3.8-month supply of housing units, compared to an 8.9-month supply a year ago.
Surprise: it's a seller's market. And that means many homebuyers are likely to find themselves in a bidding war.
I've seen it more than a few times over the last year. You hunt and you search and you think you've found a winner. You and your agent pour over comps and market stats. You figure out what the seller paid for the home and what they owe on it. Your agent grills the listing agent to find seller hot buttons. You construct the perfect negotiation strategy, and submit your offer, ready to get the deal of a lifetime.
Then you get the call, and hear the crushing news that more buyers are hearing these days: "We have received multiple offers. Please submit your highest and best offer by tomorrow at 5 p.m."
So now what? A good listing agent won't tell you much about the other offer. It could be $20,000 less than yours or $20,000 higher. There could be one other offer or four. You're going to have to put your best foot forward. Here are three tips to help you fight for your new home and win:

#1 Remember: It's not all about money
Sometimes it is about timing. Pick a closing date advantageous to the sellers. Can you close quickly, saving the sellers money? Or can you close later, giving them time to find a new home? Find out what matters to them.
Have your agent select a brief (five days or less) attorney review and inspection period. This will minimize the amount of market time a seller could potentially lose if you were to back out of the contract as a result of something found during the inspection. It will also give the seller more time to confidently search for a new home.
Important: This requires you to have your act together. Who's your inspector? Who's your attorney? Call both of them before you put the contract in so you still have time to do your due diligence. Finally, make a large earnest money deposit - say 5 to 10 percent of price - to show the sellers you're serious. They know a buyer with some skin in the game is less likely to jerk them around and then bail on a contract.

#2 Make the seller like you
An offer with a well-written cover letter stands out, and it never hurts to try to relate to a seller. Are you newlyweds buying your first condo? Are the sellers moving out because they just had their first child and need more space?
Great. Play up the nostalgia. Have your agent tell the sellers a bit about yourself and why you like their property. When evaluating multiple offers as a listing agent, I find this is a nice touch. Agents often fire off contracts with no cover letter and little presentation. This gives the impression that their clients aren't as committed to buying the property, and I'm likely to convey that to a seller.
Then, go back to #1 and make sure your agent emphasizes those points in the cover letter. Tell them what you do for a living and how thoroughly your lender has pre-qualified you (Tip: get thoroughly pre-qualified). Sellers should get the impression that you are a buyer with no potential financing issues who is committed to buying their property.

#3 Pay what the property is worth to you
This one should go without saying, but sometimes buyers get caught up in the emotions of the process. Overpaying for a property isn't winning, and neither is stubbornly sticking to a lowball offer.
Have your agent put together a detailed comparative market analysis to determine the fair market value of the property. From there, as I always say: "add love, subtract fear." It's okay to pay a touch more if you really love the place, especially if you've been looking for awhile. But keep in mind, the property will need to appraise for this price if you're getting financing. And it's okay to bid a bit less if you feel you have other strong options.
I took a buyer to see three condos that each had been on the market for three months. That was a Thursday. My buyer left for the weekend to go skiing. When he came home, all three had offers in on them, and two of them had multiple offers. That's the residential housing market in Chicago right now.
My final word of advice: "buyer be ready." Get all your homework done before you make that offer. If you want to survive in this sellers' market, you have to be ready.

Ten Steps to Home Ownership

#1 Getting Ready To Buy

Preparing to buy a home can be exciting and terrifying at the same time. Luckily, Bray Real Estate is ready to lead you in the right direction toward the home of your dreams. You first may want to ask yourself:

1. What are you looking for in a new home?
2. How much cash do you want to invest in your purchase?
3. Have you talked with a lender regarding qualifying and obtaining a mortgage?

You may want to make a list or brainstorm about the features and amenities that you find most appealing in a new home.

#2 Finding a Realtor

When choosing a Realtor, do not be afraid to meet with many different agents. They are, after all, competing for your business. This competition is what makes the real estate industry successful.Feel free to ask them the following questions:

1. How many years of experience do you have in this industry?
2. What is your selling experience in my community?
3. What professional certifications do you hold (Accredited Buyer Representative (ABR), Certified Residential Specialist – CRS, Graduate REALTOR® Institute (GRI))?
4. What services will you provide for me as my agent?
5. How will you represent me as a buyer?
6. Can you provide as much information as I need about homes in the area that fit into my price range?
7. What is the fee for your services?
8. Explain the paperwork that I need to sign
9. What is my contracted timeframe for using you as my agent?

Once you have chosen an agent, it is important to establish specific goals that you would like to meet. Communication with your agent is key!

#3 Starting the Loan Process

It is important as a buyer that you establish some kind of financing before you make any serious home offer. The "pre-approval" process allows lenders to take a look at your finances and credit history in order to make a general assumption about your loan amount.
The pre-approval process is when a lender looks at all of your finances and determines the amount of money you could afford for a mortgage.
In order to get pre-approved for a loan, you need to contact a lender. Your agent can help you help you find a lender that you feel comfortable with, and that offers programs best-suited to your needs.

#4 Starting Your Search

Now it is time to start the exciting search for homes!
You may want to narrow down your search by asking yourself the following questions:

1. Where do I want to live?
2. What is the neighborhood like?
3. What is the crime rate?
4. Would I be moving into a good school district?
5. Are there any zoning restrictions?
6. How far is this home from my job?
7. What is my price range?
8. How many bedrooms and bathrooms do I want?
9. What style of house am I attracted to?
10. What amenities do I desire (ex. pool, fenced-in yard, etc.)?
11. Does this home have potential to increase in value?
12. Is there room to expand if we need to in the future?

Searching for a home is becoming easier than years ago. We now have the Internet as a powerful "home finding tool," as well as the MLS (Multiple Listing Service) and print advertising.

#5 Finding Your New Home

Beginning the search for your new home can be a great feeling. It is important that you directly communicate with your real estate agent about the desires you have for your new home.
You may want to first begin by making a list of the features and benefits that are most important in your pursuit of finding a home.
These could be:

1. Location
2. Affordability
3. Size
4. Style
5. Design
6. Amenities

Looking for a home in an area where you feel comfortable is key. If appropriate, instruct your real estate agent to look for homes in the specific areas you have designated.

#6 Making an Offer on a Home

Selecting a home should be relatively easy once a home falls somewhere in your criteria and the property is desirable for purchase.
You will want to inform your real estate agent what you like about the house and make a list of your likes and dislikes with the property. Though you will most likely have done this already in a general sense, it is important to do it again for specific homes you have in interest in.
In the negotiation process you may accept the seller's asking price and have your agent write up the contract or reject the seller's asking price and have your agent make a different offer.

#7 Financing

Doing your homework about loans will save you time and money. There are thousands of loans out there to choose from, but it is important to keep in mind several key factors that will help you along the way:

1. How much money should you put down?
2. How is your credit?
3. Is this your first home?

Receiving a loan requires completion of a loan application and specific financial documents including pay stubs, rental checks and/or tax returns. You can receive a loan from a number of different financial institutions, namely: commercial banks, credit unions, mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks and insurance companies.

#8 Insurance

Insuring your home is like making an investment in your future. You work hard to have a home; homeowners insurance protects you and your family from someone or something taking it all away.
There are many different forms of insurance:
Title Insurance - Protects you in the event that the title on your property has a lien, unpaid taxes, or other legalities that would make it invalid.
Homeowners' Insurance - Protects your home from fire, theft and other liable coverage.
Flood Insurance - Protects your home from flood damage.
Home Warranty - Offers buyers and sellers the peace of mind that should anything unexpected happen (due to normal, every day wear and tear) of the home's appliances, heating, air conditioning, plumbing, and electrical systems, it will be repaired (or replaced in some cases) for you without costly fees.

#9 Closing Procedures

The closing process is always changing. It is even referred to as "settlement" or "escrow" in different parts of the country. With increased technology, most closings are completely automated and both parties do not have to be present at the same time to sign.
Closings usually occurs about 30 days after a contract is signed by both parties. This mainly depends on the buyer's financing availability, successful home inspection completion, and various lender conditions (ex. title search, title insurance, termite inspections, surveys and appraisals).
The closing process is the transfer of the title of the property from the buyer to the seller. The buyer will receive the keys to the home or the deed to the land, while the seller receives payment for the property. The amount the seller receives is based upon the amount that is still owed on the mortgage, any outstanding fees or taxes, and any additional closing costs.
All legal papers are filed with the local record office.
Prior to closing, it is important as the seller to take a final walk through the property to make sure the property's condition as not changed. It is equally important for both the buyer and seller to make sure the paperwork they are signing reflects the agreement of the original sale.

#10 Settling In

You have unpacked your boxes, arranged your furniture, and feel complete with your moving task.
What's next?  Enjoy your new home!