Oct

29

How to Use Real Estate Websites to Hone Your Research

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If you search for real estate or homes for sale, you’ll find dozens of websites vying for your attention. In my research, I’ve found that I consistently visit just a few of these sites. Here are my favorite research sites, each with a different purpose.

Preliminary Real Estate Research
I like to use Cyberhomes to do my preliminary real estate research. Although I sort of know the neighborhoods I want to live in, they make it easy to check out nearby schools and see what sorts of people live there. I also like that I can use the side nav to change my options without rerunning the whole search.

Home Price Research
Two sites are the best when it comes to determining a home’s true price. I use both Redfin and PropertyShark to check out past sales prices, property tax rates, and other key details that are important if you’re planning to make an offer. It can also be a good way to be nosy. Just what did that Short Sale originally pay?

I don’t use Zillow because they create their own estimates and the prices don’t seem to be completely accurate in a falling market. I’m seeing a lot that are way over-valued.

Find Local Open Houses
Trulia now has an open house search. You can enter multiple zipcodes and the kinds of properties you want to see. Click the “listing preview” button to see the date and time for upcoming showings. You can also try OpenHouse.com.

Receive MLS Listings by Email
I discovered, quite by accident, that Just Listed can help you get MLS emails. I filled out a few details (I didn’t even go as far as address and phone number), and now a receive MLS emails whenever new listings in my original price range and zip code are posted. It’s a great way to get a feel for the local real estate market. I’ve watched prices decline and discovered details like HOA dues that aren’t included on other sites.

The Big Daddy of Real Estate Websites
Realtor is the site owned by the National Association of Realtors. They have the most real estate listings and you can fine-tune the search for must-have features. I wish their listings were more detailed - they don’t all include square footage - but they do make it easy to add additional zip codes to your search or change the prices.

Of course, none of these sites are a substitute for a professional real estate agent. Redfin will act as your intermediary, but I wouldn’t do that as a first time home buyer. Maybe I’d consider it if I was moving up, but I want professional guidance on my first time out there in the market. Use these sites to start your research, get a feel for what’s on the market, and figure out what you can realistically expect to find in your price range and prospective neighborhoods. Then call in a professional to help you work out the touring and bidding.

Oct

28

Six Tips for Setting Your Home Buying Criteria

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As a first-time home buyer, I want to make sure I find the right home. I’ve realized that determining my criteria is an important first step. If you plan to buy soon, follow these home buying tips to set your criteria and steer your search to the right homes for you. There’s no sense wasting time on the wrong houses once you start to look in earnest.

Visit Open Houses
Start going to open houses in your area. Condos, townhomes, houses, it doesn’t really matter. You also shouldn’t worry about price. The most important thing is to look. See what trends are appearing. How big or small are the rooms? How are the kitchens? What’s the storage like? Do you see any deal-breakers? Are there any must-haves? Make a note of them for the future. You should also try different neighborhoods to see which feels most like home to you.

Don’t Worry about Cosmetics
Don’t worry about carpeting, wall colors, or cabinetry during the home buying process. All of that can be replaced. Look at things that are harder to change like room size, kitchen layout, number of closets and bathrooms, number of rooms, and floorplan.

Determine the Number of Bedrooms and Bathrooms
Start by figuring out how many rooms you need now. For example, my husband and I need at least two bedrooms and one and a half bathrooms. We’re looking at three bedrooms because we plan to stay in our first home at least 5-7 years. If a baby arrives, we don’t want to try to squeeze all of us and an office and a guest bed into two rooms.

Set a Price Range
Now that you have a sense of the possibilities, it’s time to start using home affordability calculators or talking to a mortgage broker to figure out what you can really afford. Knowing your number will help you determine how demanding you can be in the next stages of the home buying process.

Determine the Neighborhoods You Like
The neighborhood really does have an effect on how much you enjoy your home. So figure out what you need in a neighborhood. Are schools important? Do you like to be able to walk places or are you fine driving fifteen minutes to the grocery store? My current neighborhood is very walkable. Even when I lived in the suburbs, I didn’t live more than a five-minute drive from a grocery store. I know that I would hate living anywhere with a long drive to the conveniences. Fortunately, I live in Los Angeles, where most neighborhoods are pretty walkable (or bikable) as long as you just want to buy a couple items at the store, drop off dry-cleaning, or find a neighborhood restaurant.

Find the walk score for a prospective neighborhood if that’s important to you. Find school scores if that’s important to you. Use Google to search the zip code for other elements that matter to you.

Commuting is a whole story. The home buying rule used to be that you drove until you could afford it. Now that’s just crazy. Since home prices are re-entering the stratosphere, take your commute into account. A neighborhood may be lovely, but the two hours it takes you to get there every night will make your miserable.

List Your Deal Breakers and Nice-to-Haves
So now you have this long list of things that are important to you. Figure out which are deal-breakers and which are just nice-to-haves. Early in the open house process, my husband and I realized that two things are deal-breakers for us: kitchen size and laundry hook-ups. We haven’t decided between a condo and a house yet, but I will not buy a home that doesn’t have an in-unit laundry hook-up. I also won’t buy a home with a poorly laid out kitchen and no kitchen storage. Now I can walk into a place and know within three minutes whether or not it meets the two basic criteria. In fact, I will tell the real estate agent not to bother showing us places without laundry hook-ups.

If you think this will take too much time, don’t worry. There’s no need to rush the home buying process these days. Unless you spend the next four years looking, you won’t miss the market bottom. Markets don’t rebound like a basketball. Instead they hit the ground and roll for a while like a semi-inflated basketball. The most important part is that you find the right home for you, in the right neighborhood, and at the right price. Otherwise, you’ll just have to start the process over again in a few years.

Oct

8

10 Steps to Move out of Your Apartment

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Yesterday, I discussed situations that might require you to move out of your apartment.  Follow these tips for a successful move. I’ve also included advice for breaking a lease early.

How to Break a Lease
If you break the lease early, you may be liable for the rent until your landlord finds a new tenant. However, there may be cases when you can break the lease early without penalty. Don’t sneak out if you need to move early. Instead be direct with the landlord, explain all the variables, and be flexible. Hopefully you’re landlord will find a new tenant quickly so you can get most of your money back.

If You Have a Roommate Staying On
If you’re leaving, but your roommate is staying, inform him that he has 30 days to find a new roommate. The new roommate will have to undergo a credit check, so inform that landlord of your intent as well. Then make sure a new rental agreement is signed before moving out. The new tenant will probably be the one to reimburse you for the security deposit, but some landlords will send you the check instead.

If You’re Moving for Cause
If you want to move due to maintenance issues, then contact your local housing office to determine which items are cause to break a lease. In most cases, the maintenance issue has to be related to habitability, such as a broken furnace. If you have case, you’ll first need to send your landlord a certified letter requesting the repair. If it’s not fixed in 30 days, you may have cause to break the lease. Your housing office can advise you about the correct procedure.

A decline in the neighborhood may not be cause enough because it’s not something your landlord can control, but you may have cause if you’ve been a victim of a crime in the building and your landlord did nothing to address the situation.

10 Steps for a Successful Move
Whether you’re moving in the middle of the lease or at the end of the lease, follow these steps to ensure the move is as straightforward as possible. No move is simple, but the less snags you hit the better.

1. Give written notice. Check your rental agreement to see how much notice you need to give. In most states, it’s 30 days. You should plan to be out at the end of the month, unless your rental agreement runs from a different date. You’ll most likely be responsible for the full month’s rent if you have to move out mid-month.

Include the following in the notice:

  • Name
  • Address and apartment number
  • Date apartment will be completely empty and clean
  • Future address (if available)
  • Phone number for questions

Most landlords want tenants out on the last day of the month, but that could be a challenge if your new place isn’t available until the 1st. Try to find a new apartment that is currently vacant so you have a little overlap between the leases, even if you have to pay pro-rated rent on the new place for 2-3 days.

2. Acquire boxes. Last time I moved, I needed 40 boxes of varying sizes for a one-bedroom apartment. More than half of them were books. Look on Craigslist, eBay, or call a local box store to find what you need. Buy less than you’ll think you need if you’re going to a box store because you can always buy more later. You should also take advantage of all of your suitcases, duffel bags, and other various sacks.

3. Start packing early. I started packing as soon as I knew I was moving. That gave me time to organize my packing and get rid of stuff I no longer wanted. I spent the better part of a month doing a little bit each day.

4. Book your truck. It’s best to make the reservation early so you have time to shop around for the best deal. Get a larger truck than you think you’ll need, especially if you have a lot of books or furniture. I had a 14-foot truck (the recommended size for a one-bedroom) and it barely fit everything – and I’d already moved half the boxes to my new place.

If you don’t have a dolly already, rent one of those, too. U-Haul trucks come with furniture pads, although there is an extra charge. Factor that into your budget because you’ll have to untie them to use that space in the truck anyway.

5. Corral your friends. Call in favors from everyone you’ve helped move. If they can’t help on that day, that might be able to help in other ways. My best friend couldn’t help on moving day, but she did come over to help pack a couple times. Because I was moving into my boyfriend’s apartment (now husband), I was able to move a little at a time, so she also helped ferry stuff over before the official day.

6. Consider hiring movers. Movers are expensive, but it may be worthwhile if you’re moving from a rental to a home you own, or if you have an injury that makes moving difficult. My best friend once moved out of a fifth-floor walk-up. She hired two movers for two hours to lug her stuff down the stairs to the truck and it was well worth the money.

7. Clean the apartment and patch holes. As you take stuff off the walls and break down furniture, you’ll discover the original color of the carpet and walls. The first step is to give everything a good cleaning. Vacuum, sweep, or mop the floors, wash scuffs off the walls, and clean the bathroom and kitchen. Once all the pictures are removed, pull out any wall anchors and then patch the nail holes. Larger holes will probably be noticed during the inspection, so talk to your landlord if you have major damage to the walls, carpet, or tile.

8. File change of address notices. About ten days before you move, file a change of address with the post office. You should also call your cable company, telephone company, and utility companies to notify them of the change and arrange for installation in your new place. If you have online access to your bank accounts and credit cards, change those addresses online a few days before you move. Finally, call the subscription service or go online to update your address for any magazines or memberships.

9. Schedule a move-out inspection. Make an appointment to walk through the apartment with your landlord before you hand over the keys. Ask for a copy of the inspection report and a rough idea of what you’ll be charged for so you can compare it to the final tally your landlord deducts from the security deposit.

In most cases, you can’t be charged for normal wear-and-tear. In some states, you can’t be held liable for paint or carpet if you’ve lived in the unit for more than seven years, or if the paint or carpet is older than seven years. This varies, so check with a local housing office.

10. Provide a forwarding address for the security deposit. When you return the keys, give your landlord a written letter stating your new address. Request that the security deposit be returned to that address. In California, the security deposit less reasonable expenses must be refunded within 21 days. If you don’t receive it shortly after the deadline, send a certified letter requesting payment.

No one likes moving, but these 10 steps will make it easier. Just remember, be as good a tenant moving out as you would be moving in. The more careful you are, the easier it is to get your full deposit back.

Oct

7

When Should You Move Out of Your Apartment?

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As I mentioned yesterday, you might have to move out of an apartment because of a check-bouncing roommate.  But that’s not the only reason you might have to move. Here are a few scenarios that are just cause to move. Tomorrow I’ll tell you how to do it right.

How You Know It’s Time to Move Out of an Apartment
People move in and out of apartments all the time. During my many years in one complex, I saw neighbors come and go. I was also on a revolving door for a brief period myself. Here are just a few possible scenarios that might necessitate a move.

You and Your Roommate Don’t Get Along
If would rather hide out in your room than deal with your roommate, that’s not the right situation for you. It’s one thing to not hang out, but it’s quite another to actively avoid each other. You should at least have a decent rapport with your roomie if you’re going to spend a lot of money on rent.

Your Roommate Is In an Abusive Relationship
This is one I experienced. My roommate was in an abusive relationship when we met. He was incarcerated when we moved into the apartment and she promised me it was over. Well, it wasn’t and he eventually started living in our apartment. The first time he hit her, I was out of there. I couldn’t rescue her, but I could rescue myself from that situation.

Your Roommate Moves in a Boyfriend/Girlfriend
This happened to my husband. His roommate did ask permission to move her in, but the love of his roommate’s life turned out to be a mean, hateful woman who made everyone else in the apartment miserable. Not only did my husband move out, but so did his third roommate. They simply couldn’t stand living in that atmosphere.

Your Roommate Becomes Dangerous or Unstable
If your roommate becomes abusive towards you or develops a drug habit, then it’s time to move. You may not need to move if your roommate develops a mental illness, although it may be necessary in some cases. If it does, contact your roommate’s family or a mental health agency first to ensure that your roommate receives the support she needs.

Your Neighborhood or Building Becomes Unsafe
Some neighborhoods decline over time. What was once a decent yet affordable area can become unsafe. If the crime rate in your area is increasing, it may be time to move to a safer area even if it means paying more for rent. It’s better than being mugged or worse.

Your Building Declines
A neighborhood can be perfectly safe, but sometimes buildings go downhill, too. The landlord may not be maintaining it as well or a different kind of people may be moving in. That’s my current situation. Many of my neighbors are now young graduates and are still living the dorm life. If we weren’t planning to buy property in the next 6-9 months, we would be moving. Since we do plan to buy soon, moving now would be too costly to make it worthwhile. Instead we’ll grimace and bear it for now.

You Just Hate the Place
If you hate your apartment or neighborhood, then it’s time to move. You’ll need to wait until the end of the lease, or give 30 days notice on a month-to-month lease, but tenants can and do move at the end of leases all the time. You don’t have to give a reason. Just make sure you have a new place to live before your current agreement is up.

You’re Moving Out of the Region
Moving out of the region is not usually cause for breaking a lease without penalty, however you may be able to come to an agreement with your landlord if you don’t have a choice about the move. Explain the situation to your landlord as soon as you know you have to move and be accommodating when he needs to show the unit to prospective tenants. If you’re in the military and are being transferred or deployed, you’re probably exempt for lease penalties, but you do have to give notice.

No one likes moving, but sometimes it’s necessary. Sometimes you just want to move. Whatever the situation, don’t stay in a bad apartment for too long just because moving is a hassle. Tomorrow I’ll tell you the steps you need to take to move out properly and get most of your security deposit back.

Oct

6

How to Deal with a Check-Bouncing Roommate

Filed Under Housing, Money Management | 1 Comment

There are lots of good reasons to have roommates, like the ability to afford an apartment in a better area, reduced utility and housing costs, and simple companionship. However, having roommates can also be risky, especially if they’re not good with money. After experiencing more than my share of bad roommates, I lived alone for several years. My husband also had his share of bad roommates. Here are a few of the ways we both dealt with check-bouncing roommates.

Require Your Roommate to Cover Bounced Check Fees
The first time a roommate bounced a check to me, I made her pay the bounced check fees I had been charged. She whined that it wasn’t fair of the banks to charge me, and I agreed, but the fact is they did and I shouldn’t have to pay for her poor money management.

Require Payments in Cash
The second time that roommate bounced a check to me, I asked her to pay her bills in cash. In this case, I had several roommates (college-owned apartment, I had to take the roommates I got), and each person had one bill in her name. We wrote each other checks to cover our share. This check-bouncing roommate was soon required to pay all of us in cash because she bounced checks left and right. Cash doesn’t bounce.

Split Payments
I later moved in with a new roommate who’d also been burned by check-bouncing roommates. Since there were only two us, we simply divided each bill between us and we each wrote a check to the company to cover our portion. Although you’re still be held liable for the full bill if your roommate bounces her portion, you won’t be stuck with check-bouncing fees and can ask your roommate to rectify the situation before you pony up more dough.

Cut a Deal
If your roommate has bounced a portion of the rent, but there are other unpaid bills he could put on a credit card, agree that you will cover the rent if covers an equivalent amount of other bills. Although you are contributing to your roommate getting credit card debt, you don’t deserve to be penalized for his financial woes.

Move Out or Get Rid of the Roommate
If the situation continues, you’ll either have to move out or kick out your roommate. Either way, give him 30 days notice of your intent so he can find a new situation. I opted to live alone because I couldn’t stomach another roommate and rent was reasonable where I wanted to live. My husband kicked his roommate out and found a new one who paid her bills. I also know someone whose bad roommate nearly got her evicted. She made a deal with the landlord that she could stay if she found a new roommate, but her check-bouncing roommates still had to go. She was totally okay with that solution because it solved several problems at once.

File a Police Report
If the check-bouncing gets really out of control, you may have to file a police report. When I worked in retail, a mother called and told us to file charges against her daughter because she was a serial check-bouncer. That’s what the police call check fraud, and it is a crime.

It can be difficult dealing with a check-bouncing roommate. Often these people are our friends. At the very least, we have to see them every day. Some of these solutions won’t go over will with your roommate, but you have to protect your own finances first. It’s harsh, but it’s true.


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