Resources Before You Purchase

GETTING READY TO BUY

General Resources

Real Estate Discussion Forum:  Ask your real estate related questions, and have experts answer.  Real Estate Forum

Workshops and classes: In addition to local, state-funded workshops on the strategies of home buying, there are Department of Housing and Urban Development (HUD) counseling classes that must be attended by anyone applying for a federal loan program. Check your local newspaper or its Web site for class schedules.

Zillow Resources

Zillow glossary: So you'll know the difference between the Macs and the Maes (Freddie Mac, Ginnie Mae, Fannie Mae, and FHA).
Zestimate city heat maps: Before you start shopping, find out what homes are worth in your favorite neighborhoods; it will save you time.
Quarterly Home Value Reports: Learn about home value trends in top cities.

Places to Find Homes for Sale Online: Save time by starting your search for a home online.
 

Other Online Resources

Free online credit report: Obtain your free credit report annually.
Obtain your FICO score: This site charges a fee, but it might be worth it to have all your ducks in a row.  
HUD Web site: This site provides information on housing basics, first-time buyer grants, and links to state and local offices near you.

Mortgage Guidance Offer Angel: This site makes lenders answer questions regarding your mortgage terms and then puts your terms in a free Side-by-Side Mortgage Report. For a fee you can have a mortgage analyst warn you to mortgage terms that maybe dangerous to your financial situation.

Professional Resources

Buying From a Professional Real Estate Investor

Buyers looking to walk in to an equity situation should ask friends, family and their realtor; if they know of a reputable, professional real estate investor.  Often times Profesional Investment Firms like Denver Equity Group Inc. can be a great resource for buyers.  Since most Investment Firms buy homes in "lots" have extreme buying power, they are able to buy homes for pennies on the dollar.  Many Firms will remodel the property and then make it available to other investors, or home buyers, and are still able to leave plenty of equity in the property for the next buyer.  If you are lucky enough to find a Firm with in-house financing like Denver Equity Group Inc. you can usually count on coming to the table with little to nothing out of your pocket, as the Firm with use their large equity position to help get an investor or individual home buyer in to the property with seller concessions or often seller carry-back mortgages.

Home Inspection Services

Pillar To Post (www.pillartopost.com), North America's largest home inspection service and #1 ranked company in the home inspection category by Entrepreneur Magazine for the 5th subsequent year, knows that every person involved in a residential real estate transaction can benefit from a professional home inspection. An inspection conducted by a buyer may present an opportunity to take the cost of repairs into account in the offer to purchase.

Real estate agents: Agents are happy to sit down for an information session and share their knowledge of:

• The market and current trends
• New development plans in the area
• School and services information
• Traffic patterns - particularly helpful for commuters in busy urban areas looking for alternate routes

Real Estate Attorneys:  Although often overlooked, a good real estate attorney can be a valuable resource. In addition to providing many of the same contract-related services as a real estate agent, an attorney is the proper professional if your transaction involves more complex issues such as creating or terminating easements or owner financing.

Mortgage Options: Most people use a recommended lender or mortgage broker when purchasing a home. However, many borrowers are confused by the many loan options and terms they are offered. Web sites like Offer Angel help borrowers by sending the lender a questionaire asking many questions the borrower would not know to ask about the loan. Once the lender fills out the form, the borrower can view their loan options from a private account online. The service is free and gives the borrower more information about the loan than the mortgage disclosures they would receive in the mail.

For purchase and sale transactions, many attorneys will work with a buyer or seller on a flat fee or consultation basis which is usually considerably less costly than a traditional 6% commission. Plus, a real estate attorney has no financial incentive in the advice they provide beyond the fee charged, unlike real estate agents or brokers. Thus, a good real estate attorney can provide valuable, unbiased, and completely independant advice to a prospective buyer or seller.
 

Directory of Real Estate Professionals

Environmental Resources

Environmental Data Resources (www.edrnet.com):  Provides real estate agents, home inspectors and buyers with reports showing nearby contaminated properties and businesses with the potential to cause future contamination for a nominal fee.

FIGURING OUT WHERE TO BUY

Zillow Resources

For information on market trends in an area, be sure to look at Zillow's city heat maps and also local Zindex(tm) market trends. The maps show how valuations fluctuate in an area, and the Zindexes show you whether market trends are on the way up or down.

Local Zindexes: Enter your ZIP code or area to see market trends.  
Zillow Heat Maps: Enter the area you are interested in, and then click on the "heat map" tab.

Neighborhood Information

Many local realtor and chamber of commerce sites include neighborhood information and demographics. Here are a few others:

Sperling's Best Places: Oft-quoted in newspapers, the site compares things like demographics, climate, cost of living, and various other city facts - even gas prices!  

Freddie Mac: Web site of the government-chartered corporation that provides funding to lenders in the housing market. Click on Worksheets (Under Calculators and Tools) to view forms about neighborhoods and budgets.  

Neighborhood Scout : Neighborhood data and matching engine; some services are free and others are fee-based.

School Statistics

Local school districts usually have Web sites, though most often they do not include individual school boundaries because they change so often. But you can find out lots of things from them anyway. And here are a couple others:

Great Schools: Provides comparisons between schools on a variety of parameters, including test scores, teacher-student ratios, and student ethnicity. Also includes parental reviews.  

School Match: Click on the School Ratings button to research school sizes, test scores, and expenditures per student (fee-based service).
 

Crime Statistics

Bureau of Justice Statistics: Web site of the U.S. Department of Justice's Office of Justice Programs. Click on the Bureau of Justice Statistics link or go to http://bjsdata.ojp.usd .. ... aonline/ for statistics on crimes reported by state and local agencies.

Commute Times

U.S. Census: Provides a variety of data on commuting. Go to www.census.gov/acs/www/Products/Ranking/2003/pdf/R04T160.pdf for average commute times for most major metropolitan areas in the U.S. (More detailed data can often be found on the Web sites for specific cities and metropolitan areas.)  

Home Amenities

Freddie Mac: Web site of the government-chartered corporation that provides funding to lenders in the housing market. Click on Worksheets (Under Calculators and Tools) to view forms about needs vs. wants, appliance life spans, and other home-buying issues.  

Remodeling Magazine: Click on the link labeled Resale Value of Your Project to see a comparison between the cost and value provided for most major home-improvement projects.

Zillow.com: See the value of various improvements and then play around with My Estimator to find out how improvements affect a home's valuation.

Foreclosures and Fixer-Uppers

U.S. Department of Housing and Urban Development: Primary government source on the ins and outs of foreclosure sales. Click on http://www.hud.gov/hom .. ... sale.cfm for detailed information and links to specific properties for sale.  

National Association of the Remodeling Industry: Click on the Home Owners button to access articles on everything from improving natural light to surviving a remodel.

Sheriff Sales Online: A local foreclosure information service that covers the entire process from Lis Pendens to Forecosure Auction in New Jersey and New York.

     
Your two key sources of help in putting together your purchase offer are your real estate agent and/or a good real estate attorney. If you've picked a good agent, he or she will serve as a master coordinator, keeping all the pieces moving in the right direction and dealing resourcefully with the inevitable complications.

Directory of Real Estate Professionals

Probably the best way to find a good real estate attorney is to ask for personal referrals from friends and colleagues who have used one recently.

• Get several names and interview at least three, if possible. Most attorneys will oblige you with a free half-hour meeting for this purpose. For such an emotionally fraught transaction, you'll want to be sure that you and the lawyer are personally compatible. You'll also want to be sure that he or she will be readily available to review contracts and other paperwork on short notice. It will do you no good to have an attorney who is unreachable by phone or doesn't return calls for several days.
• If you strike out with personal referrals, you might try a lawyer referral service. However, you should ask the service what qualifications it uses for including an attorney and how carefully attorneys are screened. Again, you'll need to interview candidates to find one you can work with.

Certified Public Accountant

Another professional who can be helpful in reviewing some of the terms of your offer is a certified public accountant. Again, personal referrals from friends and colleagues are the best way to find one.

HELP WITH NEGOTIATING

T here are multiple sources of help and advice on negotiating a home purchase starting with asking questions of your real estate agent, an attorney, friends, family, and co-workers who have experience.

Libraries and book stores have volumes on the subject. And there are many Web sites with information from simplistic to complex.

General Resources

Department of Housing and Urban Development: A Web site maintained with the help of your tax dollars that has solid consumer-oriented information. 

Motley Fool: This Web site has some good negotiating advice as well.

Zillow Resources

Comparables: Use comparables for the house you are buying to justify your offer.

My Estimator: Save and print out your own estimate of the home's value using things you noticed when you went through the house.

HELP WITH CLOSING

No matter what, don't go to your closing alone. Have someone there to help you and be your advocate through these last details. The closing paperwork can be confusing and the closing agent wants to keep things moving along. But this is your last chance to ask questions and clarify what you don't understand.

Take your real estate agent or attorney, especially if you live in an area where buyer and seller closings happen in separate meetings.

The way you take title also dictates who else will be there - your spouse or partner, perhaps fellow investors.

General Resources

Department of  Housing and Urban Development: HUD has a complete guide to buying a home, including a 24-page booklet titled, "Buying Your Home, Settlement Costs and Useful Information." You can also download a set of HUD-1 forms to study.

Federal Consumer Information Center: This site has links to HUD information, but click on "housing" and "insurance" under Consumer Topics for additional sources.

Consumer Action Website: This site offers help on numerous subjects including housing and insurance.

Related Links

• Shall I Buy or Rent?
• Home Buyers' Fearbusters
• First Time Home Buyer, Part I
• First Time Home Buyer, Part II
• Understanding Your Mortgage Options
• "The Honest to Goodness Truth About Your Mortgage Offers"

Free Resources

Save Money on Title Insurance