When you set out to buy a house, there is an important rule to keep in mind: everything is negotiable. At least that is the case with most sellers. Not only can you negotiate on price, but you can also ask for things like new paint, flooring, appliances, and more. If a seller seems completely unwilling to cooperate, you should consider them the exception, and think about finding another home. When you enter into negotiations to buy a home, it is important to think about negotiating in the following areas to make sure you get the best deal.

Home/Yard Decor: When you look at a house, pay attention to items in the house and out in the yard. Items such as potted plants, curtains, blinds, and yard equipment are all fair game. Buyers often even ask sellers to throw in a piano, a home theater, or a boat — anything they may see in or around the house. You may not get everything you ask for, but if you make a play for it, the seller might agree.

Closing Time-frame: In general, sellers prefer buyers who will want to close quickly. However, if you need a little wiggle room until your mortgage broker approves your financing, extra time is something for which you could negotiate. 

Post-close Occupancy: When a home sells, sellers sometimes work a post-close occupancy agreement into the deal. It allows them to stay on for a short amount of time after the deal closes. It is possible to use the occupancy period as a bargaining chip. Many sellers need a longer post-close occupancy allowance because they are having trouble getting their new home ready to move into. If you are willing to give the seller as much time as they want in the house after the sale, this could give you leverage in lowering the sale price of the home.

Home Warranty: Home inspections and appraisals are intended to protect both the buyer and the seller. However, problems might still slip through, and you may not discover them until you are living in the home. Consider asking the seller to provide a one-year home warranty. A home warranty is one of the most negotiated items in any home deal.

Security System: When people sell their homes, they’ve usually had them for a few years. While they are likely to put in new appliances to make a better impression on potential buyers, older security systems are often overlooked. Outdated security systems could prove to be a future liability. It’s a good idea to request an upgrade to the security system as part of the deal. If the house already has a modern security system in place, negotiate to make sure it stays in place.

Deep Cleaning Services: Don’t assume that the seller will provide a thorough cleaning before they hand it over. At best, you might expect a surface cleaning if you’re lucky. It is important to negotiate a deep cleaning agreement before you agree to buy.

You may not win on every item that you ask for, but most sellers will give serious consideration to reasonable requests. Once you secure a seller’s promise on an item, make sure it is added to the contract. A good real estate agent will help you with these negotiations and ensure follow through prior to close.

Going house hunting for the first time can be exciting. You are leaving the money-wasting world of renting behind and embarking on owning – and creating – a home you can call your own. It is also an eye-opening experience, one for which a lot of new homeowners aren’t prepared. It can be frustrating, exhausting, and sometimes even heartbreaking. Putting your fantasies aside and facing reality will go a long way to helping you remain resilient while looking for a home you can love. Here are five common first-time homebuyer hopes and expectations that don’t match up with reality. 

1. You’re Going to Find the Home of Your Dreams 

Thinking you’re going to find the home you have always dreamed of as a first-time home buyer will likely end in disappointment. Many first-time buyers have ideas of perfection that don’t correlate with their budgets such as searching for large (i.e., expensive) homes instead of starter homes. It is a good idea to determine your priorities. Do you really need three bathrooms? Will a one-car garage work instead of a two-car garage? You might want to consider concentrating on your ideal neighborhood rather than your ideal home. You are much more likely to be happy with your purchase if you are living in an area you love as opposed to loving your home and hating your neighborhood.

2. You’re Going to Get a Deal 

Getting a great deal on a house depends on a number of factors. Is it a buyer’s market or a seller’s market? Is the house move-in ready or does it need work? Are the sellers getting other offers, or has the house been on the market for an extended period of time? Put simply, a house typically sells for less than asking only if other buyers are passing it by, and there is always a reason for that. And if it is a seller’s market, meaning there are more buyers than properties for sale, expect homes to go for asking and even more. 

3. Fixer-Uppers are Fun

In 2019, 60 percent of house hunters polled said they were open to buying a house that needed work, according to Realtor.com. But the plethora of reality shows centered around house flipping gloss over how time-consuming, stressful, and expensive home renovations can be. If you are looking at a house that needs work, hire a professional contractor to give you an estimate of the labor and money involved before making an offer. Underestimating this will be the beginning of a nightmare. 1Additionally, explore the different mortgage options available for fixer-uppers, says Nerdwallet. Going the route of a traditional mortgage can mean paying for repairs out of pocket.

4. You’ve Got Time 

Making rash decisions is always a poor idea, especially when it comes to making one of the biggest purchases of your life. However, it does pay to be decisive. When you find a house you like and that works for your needs, moving quickly could mean the difference between putting in a winning bid and losing out. This goes triple if you are buying during a seller’s market, where houses sometimes sell the same day they are listed. Your buyer’s agent (you have an agent, right?) has the inside scoop and will tell you if the house you are looking at already has potential buyers interested in it.

5. Building Is a Simple Alternative

Is building a home your backup plan if you can’t find what you’re looking for? That’s definitely an option, provided you are being practical about how much money and time that involves. 2According to Bob Vila, building a home from scratch takes an average of seven months. It can take less time if you go with a spec or tract home, or it can take longer if you are building a custom home. Plan on living somewhere else while construction takes place, and anticipate delays. Building a house can be significantly affected by weather, supply-chain issues, and labor issues. You can pull it off, though, if you have patience, resilience, and a different roof over your head during the build.  

It’s easy to look at the home-buying process through rose-colored glasses when you are buying for the first time. But, as with anything, experience and knowledge dispel the fantasies and prepare you for reality. In the end, you will likely find a home you love by setting priorities and having realistic expectations.

1. https://www.nerdwallet.com/article/mortgages/buying-a-fixer-upper
2. https://www.bobvila.com/articles/how-long-does-it-take-to-build-a-house/ 

Many a fortune has been made in real estate, and there is something deeply satisfying about owning property and collecting rent from your tenants. If you are itching to get started in the lucrative field of real estate, you might want to start with raw land instead of those costly developed properties.

Many factors make raw land the perfect entry point into the world of real estate and a great building block for your future real estate empire. Here are five reasons why buying raw land is the perfect first step into the wild world of real estate.

1. You’ll Get to Know the Local Market

It has often been said but definitely bears repeating – at the end of the day, all real estate is local, and every would-be investor needs to know their local market. Buying raw land is a great way to get to know the local real estate market, and with a much lower level of risk.

Whether you are buying rural land in the middle of nowhere or a corner lot in the middle of the city, you will get to know the nature of the area, and all the information you gather could prove valuable in the future. Even if your ultimate goal is to purchase single-family houses or apartment buildings, starting with a raw land investment could be a solid first step.

2. The Upfront Costs Are Far Lower

Investing in real estate can be a great way to make money and earn a solid income, but getting started is often quite costly. If you plan to start your real estate empire with homes, apartment buildings, or commercial properties, you likely will need a cash infusion. Yet, getting a loan is not easy when you lack experience in the field of real estate.

Compared to those other forms of real estate, vacant land can be a huge bargain. You may be able to buy an acre of rural land or an undeveloped lot from your own savings, giving you a chance to learn about real estate without putting up collateral or paying interest to a lender.

3. You Can Earn Income in the Meantime

Many would-be real estate investors believe that raw land is not a good earning opportunity, but that is not necessarily the case. While the vacant lot you buy may not earn you an income right away, a potential earning opportunity is just waiting to be tapped.

That vacant lot in the middle of the city could earn you a serious income when you paint some lines and turn it into a parking lot. If you own a plot of rural acreage, you could earn rent from local farmers anxious to plant their crops or graze their cattle and reap a profitable harvest. There are plenty of ways to earn money with vacant land, all while you wait for that undeveloped property to go up in value.

4. Carrying Costs Are Generally Quite Low

Owning an apartment building or single-family home might earn income when you have tenants, but you are left with the carrying costs even when the units are sitting vacant. Property taxes, upkeep, and other costs can add up, making real estate ownership more costly than you realized.

It generally costs much less to own vacant land, making raw land investment an even better bargain and an even smarter way to get started. Taxes are generally quite low on undeveloped land, and other than the occasional mowing, that land should not cost you much more.

5. Appreciation Potential Is Often Very High

Last but not least, the appreciation potential for vacant land can be extremely high, certainly higher than many homes and commercial buildings. If a developer comes along and wants to build on your land, you could see your initial investment double or even triple, and that is just one example.

When you invest in vacant land, you are by definition purchasing a product that gets scarcer and scarcer with each new development. Builders can always erect new houses, but no one can make additional land.

If you are anxious to get started as a real estate investor, you might think that buying a home or apartment building is the best way to go about it. After all, those are the types of properties most people think of when it comes to real estate. But there is much more to the process. Starting your real estate empire with vacant lots and undeveloped rural land has its advantages, beginning with the five benefits listed above.

Whether you are moving into your first home or moving on to your dream home, shopping during the cold winter months can be a daunting experience. From traversing snow-clogged roads to checking out the landscaping in subzero temperatures, there are lots of things to dread about buying a home in the winter.

And while that may be true, there are plenty of reasons to love the season as well. If you are ready to buy a home, you just might find winter to be the perfect time. Here are eight great reasons to buy your next home in the winter. 

1. Less competition – The fact that winter is an unpopular time to buy a home can work in your favor. With less competition, you can drive a harder bargain, making your first-time buyer dollars stretch farther. 
2. More time with your real estate agent – Real estate agents tend to be less busy in the cold winter months, and that could mean more time with your agent. You can use that time to lay out your requirements, making finding the perfect home easier. 
3. Cheaper moves – Moving companies also tend to be less in demand during the winter, and that could mean a less expensive move when the time comes. 
4. Holiday sales on home décor – The holiday season is a great time to buy home décor and furniture, especially if you are shopping for your first home. Reducing the cost of home furnishings will be even more important now that you have a monthly mortgage payment to make. 
5. Motivated sellers – Homeowners with properties to sell may be more motivated as the cold weather months drag on, and that could be good news for you as a first-time buyer. 
6. Vital information on road maintenance – Some neighborhoods are better at clearing ice and snow than others, and shopping in the winter can be a very enlightening experience. When you need to get to work, you want to know local road crews are up to the task. 
7. Faster closing times – Time-to-closing tends to be faster in the winter, simply because there are fewer buyers competing for those limited resources. If you need to move fast, winter could be the perfect time to shop. 
8. An inside look at hidden damage – Some problems, like clogged gutters or leaking roofs, may be easier to spot when there is ice and snow on the ground. The ability to uncover that hidden damage could net you a lower price – or stop you from making a costly mistake. 

Buying a home during the winter months can be challenging, but there is a lot to love about this time of year. From enhanced bargaining power to more motivated sellers, buying a home in the cold winter months has its perks, including the eight big benefits outlined above.

Teachers looking to purchase their first home often find themselves wondering where to turn first. There are numerous federal, state, and locally-based programs designed to make the process of putting together a down payment and getting approved for a home easier for teachers. Check out these resources and tips for consideration before you start the home buying process.

Down Payment Assistance and Other Financial Programs

Good Neighbors Next Door¹ – The U.S. Department of Housing and Urban Development (HUD) offers this program to help make the home buying process easier for pre-kindergarten through 12th-grade teachers. Homes listed by HUD can be snatched up for a 50% discount provided teachers are willing to commit to living on the property for at least 36 months.

Teacher Next Door² – Also offered by HUD, this program helps pair educators with federal, state, and local loan programs. Teachers can receive up to $6,000 in assistance depending on the area and cost of living. Some even qualify for up to $10,681 in additional down payment assistance. There are no upfront, broker, or application fees, and teachers can take advantage of other perks like a free appraisal and home buyer representation.

Landed Down Payment Support³ – While not a government-funded effort, Landed is a company that seeks to help teachers and other educational staff purchase homes in expensive cities – think Los Angeles, Denver, or San Francisco. The company will provide half of the down payment, provided they’re willing to share 25% of their investment when it comes time to sell.

Local Programs – Teachers always have the option to leverage more localized programs, too. Many states offer home loan programs designed for teachers who aren’t available on the federal level. Teachers in California, for example, can qualify for the Extra Credit Teacher Home Purchase Program. This program offers teachers deferred junior loans up to $15,000 depending on the location of the home. 

Three Practical Home Buying Tips for Teachers

Commute time – Buying a home near the school where you work can save you considerable time, money, and instances of migraines. Long commutes are tough, but long commutes after eight hours of dealing with a classroom full of children are their own special brand of fun. You’re the glue that holds students’ academic efforts together, and you deserve to be able to get home easily after a long day at work.

Social considerations – While living near school is great, you’ll need to take your comfort level running into students and parents while you’re out and about into account. If you’re a little more socially awkward than you’d like your kiddos at school to believe, it might be best to leave a little buffer room between you and wherever a majority of your students live.

Consider Relocation – Anyone who teaches knows that certain states stand out when it comes to job prospects. Some are known to treat teachers like royalty, others are known to treat them like peasants, and most fall somewhere in between. If you’re stuck in an area that’s less-than-favorable, don’t be afraid to consider packing up and starting someplace new.

This also opens up a variety of housing options that you wouldn’t have had otherwise. You can look at the home of your dreams half a country away and take comfort in the fact that you know you’ll be moving someplace where your time at work is better-valued. That’s a win/win by all accounts.

At the end of the day, your career as a teacher can have a huge impact on your home-buying experience. Job opportunities within the industry are constantly changing and may send you looking for a home far from where you’re living now. Unique opportunities for monetary assistance also position you better than most, to take risks and aim to purchase the home of your dreams. If you utilize your resources correctly, you might find that your career actually makes purchasing a home easier than it might be otherwise. 

References

1 hud.gov/program_offices/housing/sfh/reo/goodn/gnndabot
2 teachernextdoor.us
3 landed.com

Plumbing issues that are overlooked can be costly in the long run. When considering your next home purchase, here is a list of things to check to ensure that your potential new home has an effective plumbing system before you close the deal.

Inspect water heater – Water heaters usually last about 10 years. Check the age of the heater, and if it’s around 10 years old or older, request to have it replaced. Ensure the heater is big enough to suit your family’s needs. Otherwise, you will find yourself running out of hot water frequently. Depending on how hard the water is at the house, mineral deposits can cause corrosion and build up in the bottom of the tank. This leaves less space for water to enter and will affect how much water gets heated for use.

Inspect toilets for possible leaks – Inspecting all toilets in the home can tell you a lot about the condition of the plumbing system. Flush each toilet and make sure they fill back up again. Check around the base of each toilet, and if the floor moves or feels spongy, this may indicate a leak that is going into the sub-floor that may one day cause damage.

Check water supply valve – The water supply valve is in a different location in each home. Locating it during your home inspection would be beneficial in case you ever have a water leak and need to shut off all water immediately. To determine if the valve is in good working order, turn it off and then check all taps in the home. If water still pours from the taps even when the valve is shut, attempt to locate a secondary water supply valve. If none is found, request an additional inspection to determine if the valve is faulty.

Determine the type of sewage system – If the home is in an urban area, chances are sewage will drain to a municipal sewage system. If it is in a rural area, sewage likely will drain to an on-site septic tank. In this case, determine the location of the tank and size, which should be available from the current owner. Ask the owner when the tank was last pumped and request that it be pumped before the closing date. If the tank uses an aerator, check that it is in good working order. At the house inspection, look for seeping around the general area of the septic tank, and be aware of any odors. These are signs of problems with the septic system which will cost you thousands of dollars to repair.

Check for leaking pipes – Some people may think that an occasional leaking pipe is minor, but consistent leaking over a long period of time can lead to structural damage, including leaks through the floor down to lower level rooms. Check underneath all kitchen and bathroom sinks for leaking pipes. Ensure any pipes that are leaking get repaired immediately. While insurance companies cover damages caused by flooding and burst pipes, slow leaks such as ones from leaking pipes generally are not covered. 

Check water temperature and pressure – Turn on the showers in the house and make sure the water gets hot and the pressure is at an acceptable level. If the water does not get hot, there may be an issue with the water heater that you need to address. If the water pressure is weak, this may point to a mineral build-up around the showerhead or problems with the water pipes drawing water into the home such as inadequate size or a clog preventing water from getting through.

The plumbing in a house can create many issues that are costly and inconvenient, from leaks to water shortages. Following these tips will ensure that the plumbing system in the home you are considering will meet your needs for years to come.