Everett • Uncategorized • June 28, 2013

15 Great Local Family-Friendly Field Trip Ideas

by Debi Bloomquist

Summer is a great time to get out and explore our great community with your kids! Click here for some great ideas on where to go to make the most out of your summer free time!

– Debi

News For Seniors • June 25, 2013

Real Estate Retirement Plan

by Debi Bloomquist

Getting ready to retire? Prepare your property and investments to make a smooth transition to your sunset years

By Alexandra Gallucci
CTW Features

If you feel unprepared for retirement, chances are you’re not alone.

According to a 2013 survey by the Employee Benefit Research Institute, more than one third of workers lack confidence in their financial preparations for retirement.

For many people, real estate is their biggest asset, and planning ahead in property matters can help eliminate your worries – and your debt – before you sail away from the workforce.

We talked with certified financial planners across the country for tips on managing real estate for retirement years.

Investment Property

“With good tenants, a low [tax] basis in the property and a satisfactory location, a property owner can do well to keep the property,” says David Diesslin, chairman and CEO of Diesslin and Associates Inc. in Forth Worth, Texas.

But maintaining properties as you age can be difficult and is a real concern for owners. Deferred maintenance can lower your return on investment, as can failure to raise rent prices, says Lauren Klein, a certified financial planner in Newport Beach, Calif.

To avoid this, Klein says rents should be raised every single year.

Property Taxes

“If a client is struggling to financially pay their taxes, chances are they have too big of a home,” says Rob O’Dell of Wheaton Wealth Partners, Wheaton, Ill. In this case, downsizing your home may be advisable.

Also, homeowners in Florida may now qualify for a homestead exemption by making a home their permanent residence. Owners can deduct up to $50,000 from their property taxes under this new rule.

In California, Proposition 13 limits property tax increases each year. Homeowners over the age of 55 may transfer – once in a lifetime – the old property tax basis to a new home of equal or lesser value.

In addition, there are exemptions for veterans, those with disabilities and people over 65 in many states that can help to reduce housing taxes.

Educating yourself on your state’s tax laws will allow you to capitalize on all your qualified exemptions. Look to your local tax office for help in learning your state’s requirements to get correct valuations and exemptions, Diesslin says.

Paying Your Mortgage

When it comes to financing your home, cash flow should be the goal, Klein says. For many people, that means not paying off the entire mortgage.

Don Grant, senior investment management specialist at Morgan Stanley Wealth Management says 85 percent of his clients in Wichita, Kan., prefer to be mortgage-free because they fail to see the bottom line: They may be better off financially if they don’t pay off the loan.

Klein often recommends that clients downsize their residence if paying off their home is a major concern.

Homeowners can benefit from refinancing at historically low rates instead of using assets to pay off their home. Plus, this often frees up cash flow that can be applied to other areas, such as retirement savings, O’Dell says.

Getting a Head Start

It’s tougher to finance property once you’ve retired, Grant says. If loan rates have improved, consider refinancing your house before you retire. Someone who is still in the workforce will show income that has the potential to increase, which will encourage lenders to give you the loan you need, Grant says.

Experts agree that it’s best to begin planning your real estate management before you buy. “With income real estate, rentals, et cetera, a disposition and debt plan should be established well before the closing on the property,” Grant says. “Go into the purchase with a good idea of what conditions need to be met to sell the property.”

Economics • Homeowner News • Real Estate • June 25, 2013

Buying a House? 3 Reasons to Do it Now!

by Debi Bloomquist

by The KCM Crew on June 24, 2013 ·

384
inShare

Address Here are three great reasons to consider buying a home today instead of waiting.

1.) Prices Will Continue to Rise

Standard & Poors recently upgraded their 2013 forecast for the S&P/Case-Shiller Home Price Index to an 11% year-over-year increase from their original 8% projection.

The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, projects a 22.3% appreciation in home values over the next five years. The bottom in home prices has passed. Waiting no longer makes sense.

2.) Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about 1/2 percentage point over the past several weeks.

The National Association of Realtors, the Mortgage Bankers Association and Fannie Mae are calling for interest rates to rise by approximately an additional ½ percentage point by this time next year. Some are trying to minimize the impact of higher rates. For example, Freddie Mac in their June U.S. Economic and Housing Market Outlook stated:

“At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”

However, an increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3.) It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Economics • Real Estate • Uncategorized • June 21, 2013

Real Estate ‘A Tremendous Buy’: CEO

by Debi Bloomquist

Published: Tuesday, 18 Jun 2013 | 1:15 PM ET

By: Bruno J. Navarro | Online Producer CNBC.com

Supply shortages and interest rates will continue to be positive for the real estate market, Colony Capital CEO Tom Barrack said Tuesday.

"Look, it's a tremendous 'buy,' he said. "The good news for the home builders is they start planning profitability five years ago."

On CNBC's "Fast Money," Barrack said that the market was still hot.

"Demand is exponential," he said. "Affordability at the entry level may get hit a little bit, but traditional rates on 30-year fixed-rate mortgage, which has been the best investment for Americans, has always been in the 6s for the last 10 or 15 years."

Interest rates on a 30-year fixed-rate mortgage were below 4 percent this week.

Barrack sounded bullish across the real estate spectrum.

"The supply is so dismal in every category, in every category of home building, in every category of rental," he said. "We bought 13,000 houses. We're renting them in 21 days."

Multifamily units were seeing rents higher by 15 percent over the last 12 months, he added.

As the rate of foreclosures on approximately 6 million homes in the United States speeds up, the demand for rentals for 6 million families would also rise, Barrack said.

"Housing today is not a bubble," he added. "There may be a bubble in the Fed, which is necessary to make what's happening happening, a slow, soft increase in jobs and predictability. Housing is the best buy for the average American because they can vote with their feet. You can get a Fannie or Freddie loan, even on a second house, and if you have a FICO score and a $20,000 down payment, you can be in business."

Economics • Homeowner News • Real Estate • June 19, 2013

Until Mortgage Rates Hit 10.5%, Buying A Home Will Still Be Cheaper Than Renting

by Debi Bloomquist

By Jed Kolko, Trulia Chief Economist on Forbes.com
6/14/2013

The recent rise in mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting. That means that the recent jump in rates doesn’t change the rent-versus-buy math much.

Rates are likely to keep rising, but how far must rates rise before buying a home starts to look expensive relative to renting? To answer this, we updated our Rent vs. Buy analysis with the latest asking prices and rents from March, April, and May 2013. Following our standard approach, we calculated the cost of buying and renting for identical sets of properties, including maintenance, insurance, taxes, closing costs, down payment, sales proceeds, and, of course, the monthly mortgage payment on a 30-year fixed-rate loan with 20% down and monthly rent. We assume people will stay in their homes for 7 years, deduct their mortgage interest and property tax payments at the 25% tax bracket, and get modest home price appreciation (see the detailed methodology and example here). Here’s what we found:

Buying remains cheaper than renting so long as mortgage rates are below 10.5%. At 3.9%, the current 30-year fixed rate according to Freddie Mac, buying is 41% cheaper than renting nationally. With a 5% mortgage rate, buying is still 34% cheaper than renting nationally. Mortgage rates would have to rise a huge amount – to 10.5% – to tip the math in favor of renting, which isn’t impossible. Rates were that high throughout the 1980s, but have been consistently below 10.5% since May 1990.

Each local market, of course, has its own mortgage rate “tipping point” when renting becomes cheaper than buying a home. At 3.9%, buying is cheaper than renting in all of the 100 largest metros, which means the tipping point is above 3.9% everywhere. The tipping point is lowest in San Jose, which would tip in favor of renting if rates reach 5.2%. It’s between 5% and 6% in San Francisco and Honolulu, and between 6% and 7% in New York and Orange County, CA.

10 Metros with the Lowest Mortgage-Rate Tipping Point
#	U.S. Metro	Mortgage rate below which buying is cheaper than renting
1	San Jose, CA	5.2%
2	San Francisco, CA	5.4%
3	Honolulu, HI	5.8%
4	New York, NY-NJ	6.8%
5	Orange County, CA	6.8%
6	Los Angeles, CA	7.5%
7	San Diego, CA	7.5%
8	Ventura County, CA	8.0%
9	Sacramento, CA	8.0%
10	Oakland, CA	8.2%

But for 78 of the 100 largest metros, the tipping point is 10% or higher. In fact the tipping point is above 20% in Cleveland, Memphis, Detroit, and several other metros in the Midwest and South.

10 Metros with the Highest Mortgage-Rate Tipping Point
#	U.S. Metro	Mortgage rate below which buying is cheaper than renting
1	Detroit, MI	35.8%
2	Memphis, TN-MS-AR	21.0%
3	Gary, IN	20.8%
4	Warren–Troy–Farmington Hills, MI	20.2%
5	Toledo, OH	20.1%
6	Cleveland, OH	20.0%
7	Dayton, OH	19.2%
8	Grand Rapids, MI	18.4%
9	Akron, OH	17.4%
10	Kansas City, MO-KS	16.9%

Of course, the tipping point also depends on how long you plan to stay in your next home (we assume 7 years) and whether you itemize your deductions (we assume you do). For instance, if you don’t itemize, or if the mortgage interest and property tax deductions were eliminated entirely, buying would still be 29% cheaper than renting at a mortgage rate of 3.9%, and the tipping point when renting becomes cheaper than buying would be 7.5%.

But just because buying is cheaper than renting, it doesn’t mean you can buy. Lots of people who want to buy don’t have the downpayment or can’t get a mortgage. Even people who can swing it financially might not be able to buy right away, before rates rise further, because they might not find the home they want quickly with inventory still so tight.

So if the recent increase in mortgage rates doesn’t change the rent-versus-buy equation substantially, why does it matter? The main effect is to reduce the demand for refinancing. Unlike homebuying, refinancing is a relatively straightforward financial decision: although refinancing has upfront costs, refinancing doesn’t require finding a home, thinking hard about your lifestyle, or moving. Since rates have been low for so long, many people who were able to refinance, already have. As a result, the demand for refinancing is now dropping.

For people who haven’t yet refinanced – and for people looking to buy – rising rates do make housing more expensive. Rates are now on the rise and are likely to keep rising, thanks to the strengthening economy and the Fed eventually trying less hard to keep rates low. But it will take big rate increases to turn off prospective homebuyers. At today’s prices and rents, rates would have to rise to levels we haven’t seen in 20 years before renting is cheaper than buying a home on average across the country.

Home Improvement • Homeowner News • Uncategorized • June 12, 2013

Cheap bathroom renovations that help sell a home

by Debi Bloomquist

By Tom Kraeutler | The Money Pit – Wed, Jun 5, 2013 7:03 PM EDT

A few cheap bathroom renovations can actually help you sell your home. When potential buyers stroll through a home, they're looking for the features and amenities that best match their lifestyle. Every choice you've made impacts a buyer's interest, and you can get closer to the reality of a sale with a simple, one-step bath renovation.

"Bathrooms are one area where home buyers make decisions because it will be one of the most used rooms in the house," says industry expert Nora DePalma of O'Reilly/DePalma. "Make them look bright, absolutely spotless, and loaded with storage options. Your home will sell faster and at a better price."

These bathroom renovations are low-cost, where a little DIY savvy can go a long way toward making your home appeal to a wide range of shoppers. Here are five cheap ways to transform a bath without breaking your pre-sale budget.

1. Introduce a neutral palette: When you're showing a home for sale, one of the main priorities is to present a neutral but appealing space in which potential buyers can envision their own day-to-day lives. So even if you love bold color or a wallpaper print in your bathroom, tone it down for the sake of the sale. Painting walls with a neutral shade or even a pale, soothing blue or green will contribute to the perceived scale and serenity of the space. Freshen the entry door, cabinetry and trim with a crisp white for a clean look and renewed focus on the room's built-in details.

2. Use your WaterSense: If your toilet is more than 15 years old, upgrade in both performance and water efficiency by installing WaterSense-labeled fixtures. Switching in a new water-saving faucet allows you to re-accessorize the room, and reduce water flow by at least 30 percent without a downgrade in performance. Smarter showerheads provide spa-style amenities while using under 2.0 gallons of water per minute. And high-efficiency toilets (HETs) are now the norm in up-to-date, resource-conscious homes, saving the owner over 4,000 gallons of water per year. "Save money in many areas that provide rebates for high-efficiency plumbing products," says Jeannette Long of American Standard, which hosts a rebate locator.

If you make any or all of these green upgrades to your bath, highlight them in home listings and open house collateral so that shoppers know they're looking at lower utility bills as well as new fixtures.

3. Let there be (better) light: Illuminate the best features of a bathroom and add convenience by amping up the lighting scheme. Just replacing a few fixtures with energy efficient, eye-catching styles, you'll transform the space and reduce energy bills. When choosing bathroom lighting, focus on fixtures that provide task lighting at the vanity and over the shower or tub, overhead lighting for general illumination, and accent lighting to define architectural features. Also make the most of any opportunities for natural lighting: Skylights and glass-block windows will let the sunshine in but still provide privacy.

4. Improve ventilation: Prevent moisture buildup and the mold, mildew and finish damage that tend to follow by upgrading your bathroom's ventilation. Depending on the current state of the ventilation system, this project can range from the DIY ease of installing a few components to all-new venting and electrical connections. Whatever the case, adequate ventilation is critical to air quality, structural integrity and overall comfort of a bathroom, and buyers will appreciate this important update.

The ventilation specialists at Broan-NuTone have solutions for any system redo, all with sleek looks, quiet fan operation and optimum efficiency. "We make an upgrade kit for builder-grade-model fans, which will actually quiet the fan down by about 50 percent and increase the performance of it by 20 percent," says Karen Collins of Broan-NuTone. "The kit also includes a new grille, and you can make these changes in under five minutes."

If you're in the market for a complete unit replacement, check out Broan-NuTone's selection of super-quiet, Energy Star-qualified ventilation fans. They cost less than a dollar a year in energy to run, and are available with integrated lighting as well as humidity sensors that save you the trouble of switching the fan on when it's needed and off when it's not.

5. Replace flooring: Transform a bath from the ground up by installing a new floor. The small footprint of most bathrooms makes this an affordable improvement, and new flooring options combine moisture resistance with the look of favorite finishes. Lumber Liquidators' line of Tranquility resilient flooring offers a great range of natural wood looks and textures made from a water-resistant, easy-to-clean vinyl material. In a peel-and-stick plank format, it's simple to install over existing flooring and backed by a 25-year warranty. Tranquility flooring is also a sustainable choice for your bathroom upgrade, as it's produced with recycled raw material.

If you're updating a powder room, other flooring options like natural hardwood are possibilities. But for a full bath, stick with materials that will stand up to everyday use and humidity. "Anywhere you have a full shower or tub, you want to avoid a wood, a bamboo or even a laminate, simply because of the moisture," advises Lumber Liquidators' John Jakob.

You don't have to spend a fortune. Take on a few cheap bathroom renovations that will deliver the greatest return on your investment, and sell your home faster.

Economics • Everett • Real Estate • Uncategorized • June 10, 2013

More homes listed anew; prices up 16 percent

by Debi Bloomquist

Published: Friday, June 7, 2013

By Kurt Batdorf

HBJ Editor

EVERETT — Median sales prices on homes and condominiums in Snohomish County jumped by $40,000 in May from a year ago, due in no small part to the continuing decline in active listings.

New listings rose from 1,258 in May 2012 to 1,564 this May, an increase of 24 percent, but total active listing volume of 1,777 single-family homes and condos was still down by more than 25 percent year over year, Northwest Multiple Listing Service data released June 5 showed.

“There are still homeowners who want or need a higher equity position in order to sell their home, so they may continue to wait and watch,” said Dan Gunderson, broker with Windermere Everett.

That reluctance helped drive up median prices for homes and condos across the county by more than 16 percent, from $245,000 to $285,000. Median prices in the Bothell-Clearview-Maltby area were the highest in the county at $400,000, up 23 percent from $325,000 last May.

Closed sales rose from 1,000 to 1,310 units, an increase of 13.1 percent.

“We currently have significantly less inventory of bank-owned and short-sale properties,” Gunderson said. “New construction is currently about 15 percent of the inventory and we would like to see it at 20 percent. Supply is certainly a driver of the increased property values. Affordability, low interest rates and the job market in this region are contributing to the increased value as well.”

Ed Wendling, with Wendling Real Estate Services at Windermere Real Estate GH LLC in Edmonds, noted a number of drivers in the continuing price run-up.
Distressed properties, defined as short sales or lender-owned, accounted for 39 percent of closed sales at the end of the first quarter of 2013, down from 48 percent of the total market in 2011, Wendling said.

“Nondistressed sellers have the choice to sell, but many fear with the low inventory they will be unable to find a good replacement home and could be caught in the cold if their home were to sell quickly,” he said.

There is another segment of sellers who are on the cusp of being solvent with their home’s value.

“They are not delinquent and have strong desire to move but would have to bring money to closing in order not to be short,” Wendling said. “This would not allow them the necessary down payment for their next home so they need to sit on the sidelines waiting for home prices to rise.”

Across the rest of the 21-county Northwest MLS service area, inventory showed signs of improving with the addition of 11,445 new listings during May, the highest number since April 2010. May’s total outgained the year-ago figure of 9,861 new listings for a 16 percent improvement.

The increased inventory is “cooling some buyers,” said George Moorhead, managing broker at Bentley Properties in Mill Creek and a member of the MLS board of directors.

“We also have buyers who are stepping back as they are frustrated with current inventory and multiple offers going well above asking price,” he said.

That shows in the county’s MLS numbers of pending sales for May. They fell from 1,579 homes and condos to 1,487, a decrease of 5.8 percent.

“It has been refreshing to see more listings coming on the market, but with overall inventory remaining low, the competition among buyers is still fierce for homes that are priced properly,” said Northwest MLS director Kathy Estey, the managing broker at John L. Scott in downtown Bellevue.

Well-priced homes continue to draw multiple offers and sell at a brisk pace around Western Washington as buyers react to recent upticks in interest rates and asking prices, MLS brokers said.

“The economy has picked up to a level allowing home owners to feel financially secure,” Wendling said. “Together with the lack of inventory, pent-up demand and interest rates at historic lows, still below 4 percent, there are simply more buyers than sellers.”

Moorhead said increased activity is noticeable, with mixed outcomes.

“We are seeing multiple offers at 5 to 12 percent over list price in highly sought after areas,” he said. “But there are other homes on the market that are not selling, with no real reason why.”

Estey said recent interest rate increases are “adding fury to the already frenzied buyers who must finance their purchase.”

Federal officials have downplayed rising interest rates. In a recent interview, Frank Nothaft, Freddie Mac’s chief economist, addressed the issue.

“While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks,” he said in a published report. “The rates are also lower today than they were a year ago at this time.”

Kurt Batdorf: 425-339-3102; kbatdorf@heraldnet.com.

Economics • Homeowner News • Real Estate • Uncategorized • June 4, 2013

A Real Estate Conversation

by Debi Bloomquist

by THE KCM CREW on MAY 24, 2013

News For Seniors • May 31, 2013

Mortgage giants make it easier for retirees to secure loans

by Debi Bloomquist

By Kenneth R. Harney May 24, 2013 01:55 PM EDT The Washington Post Published: May 23

Here’s a heads-up for the growing ranks of seniors whose post-retirement monthly incomes aren’t sufficient to qualify for a mortgage under today’s tough underwriting standards: Thanks to a rule change by the largest players in the home loan business, you may be able to use imputed income from your 401(k), IRA and other retirement assets to qualify for the loan you want.

That, in turn, might open the door to a money-saving refinancing to a lower-rate loan or a downsizing purchase of a new house or condo.

Top credit officials at Freddie Mac, the giant federally controlled mortgage investment company, said last week that a “little known” policy revision now allows seniors and others to use certain retirement account balances to supplement their incomes for underwriting purposes — without actually tapping those balances or drawing down cash.

Freddie’s revised rule is aimed at the tidal waves of baby boomers heading into retirement status — 8,000 a day for the next 18 years, according to one industry estimate.

Many of these seniors have seen their monthly incomes, heavily dependent on Social Security and limited pension plan payouts, plummet following retirement. Yet on paper, they look relatively comfortable financially. They’ve got growing IRA and 401(k) retirement account balances, swelled by recent stock market gains. They often have solid equity in their homes, good credit scores and at least modest savings.

But if these same people apply for a refinancing or a new mortgage to buy a home, suddenly they’re told they don’t look so great. They often can’t qualify under the “debt-to-income” standards required for today’s post-recession underwriting. Those rules sometimes set the bar for total household debt-to-income too low for retirees who are still making payments on auto loans, credit cards, home equity lines of credit and other debts.

Freddie Mac’s plan — Fannie Mae, the other big mortgage investor. has a similar option for seniors — offers them a little extra boost on qualifying income if their financial assets permit.

Take this hypothetical example provided by Freddie Mac credit officials: Say you’d like a new, low-interest-rate mortgage but your debt-to-income ratio doesn’t make the grade. You do have $800,000 sitting in a retirement account that you haven’t touched yet and that could be accessed by you with no IRS penalty.

The good news: Under the federal mortgage investors’ policy change on qualifying income standards, your monthly income could actually be higher for underwriting purposes than it appears to be at first glance.

Under Freddie’s guidelines, the loan officer could use your $800,000 in untapped retirement assets as follows: First, the lender essentially discounts the $800,000 to take into account possible market swings that could reduce what you actually have available. Freddie Mac requires them to multiply your retirement fund assets by 70 percent to arrive at a conservative number. This brings your retirement funds — for underwriting purposes, of course — down to $560,000 ($800,000 times 70 percent).

Next, the underwriter divides the discounted fund balance by 360 to arrive at what is in effect 30 years’ worth of monthly drawdowns from the fund — in this case, $1,556 ($560,000/360 equals $1,556). The lender then can add the $1,556 to your current Social Security, pension and other verified qualifying income for the purpose of computing your debt ratio.

You may never have to draw down even a dollar from your retirement funds to pay the mortgage, but the fact that you have easily accessible financial assets available to do so allows the change to the underwriting equation.

The computations can get a little complex, and there are some technical rules and definitions that lenders are required to follow.

For example, if you are already pulling down dollars from a retirement account, procedures are a little different.

Another example: Retirement-related financial assets can include lump-sum distributions you’ve received or even the proceeds of the sale of a business. Loan officers and underwriters unfamiliar with the program can consult Freddie’s (or Fannie’s) online technical guidance for more detail.

But the bottom line is this: If a debt-ratio problem is preventing you from getting a new, low-interest-rate mortgage and you’ve got substantial untapped retirement funds that might help qualify you on income, don’t settle for a rejection. You may have more income — at least for underwriting purposes — than you thought.

Ken Harney’s e-mail address is kenharney@earthlink.net.

Real Estate • Uncategorized • May 30, 2013

How to Choose the Right Neighborhood for You and Your Family

by Debi Bloomquist

posted on Freshome Design & Architecture

Where we choose to settle down and plant our roots is just as important as the home in which we cultivate our lives. A happy home is often so because of where the home is physically located. As homebuyers it is therefore equally as important to note that not only are you buying a home, but in essence you are buying a part of your neighborhood.

Where your home is located is equally as important as your home itself.

Whether you are a first time homebuyer or are relocating to another part of the country, it is essential not only to look at the homes for sale but to take a close look at your potential future town and neighborhood. We tend to have these romanticized, pre-conceived notions of just how our perfect home will be and it is therefore imperative to pay attention to everything that surrounds your dream home.

Buy with your head as well as your heart.

I recently spoke with Betty Shepard, a Realtor with Prudential Fox and Roach in Mount Laurel, New Jersey who told me that “buyers tend to be too emotional when they are shopping for their home. It’s important to look at the purchase of a new home from an investment standpoint.” She states the importance of researching various neighborhoods of interest. “Find out what the housing market is like in your particular area or areas of interest,” Shepard suggests. Take note to see whether a particular area is on a financial incline or decline. With the information gathered a home buyer will be able to assess whether their purchase will turn out to be a good financial investment.

Take advantage of the internet.

Put aside some time to do some research online. Your realtor’s website could be a valuable source of information about your town and all that it has to offer, as well as information on the schools and their performance and ranking in the state. Also be sure to visit your town’s website if there is one.

Visit your new neighborhood or town.

Take the time to spend some time in the towns of particular interest. Get to know the feel and the lay of the land. This may be harder to do if you are in the midst of a work-related relocation, but if you can, do try to at least walk around the downtown area and drive through the neighborhoods. If you have children with busy weekend schedules, this may be particularly hard to do, but it can also be crucial to finding the areas that offer the best for you and your family. If you can, try out a local restaurant, do some window shopping and talk to the locals to get a sense of what they think makes their town so special.

Drive through during different times of the day.

Shepard thinks it is particularly important to drive through neighborhoods of interest at various times of the day. The neighborhood is lovely during the quiet afternoon, but is it still quiet and serene during rush hour or at night? “I was researching potential neighborhoods for a client of mine and I decided to drive back to this one particular neighborhood at night and I was surprised at how many trucks were parked on the streets. I knew at that point that my clients and I would have to re-direct our focus,” she told me.

Make a list.

Make a list of what’s important to you. Just as you make a list of what you would like to have in your home, make a list as to what you would like to have in your neighborhood – be sure to note what’s crucial and what you can sacrifice. Do you have a family or do you plan on starting one? Is the school system important to you? If you are a parent you may want to arrange for you child or children to visit the school and to meet with the principal.

Just as neighborhoods differ in personality, no two schools are exactly alike. Will you or your spouse be commuting to work? Do you need to live within a certain proximity to a highway or near a train station? Do you commute to a major city? If you do is there a limit to your travel time? For those of you who will be commuting, whether by car or train, to work, Shepard advises a trial run. Take the time to test out the commute. Will it be doable or will it simply take too long?

Consider your lifestyle.

Another important thing to take into factor is lifestyle. Are you and your family active? Is it important that you are in a neighborhood that is good for walking, running or bike riding? Do you need to be near areas of cultural interest such as museums, universities, restaurants and shopping? How important is it to you that you are near a grocery store, bank and gas station. These might seem like small issues, but to a busy mother of a large family, proximity can be everything.

Look all around the outside of your home.

Pay attention to your surroundings. “I tell my clients to pay as much attention to the outside of their home as they do to the inside,” says Shepard. “Be sure to ask yourself questions like what is the outside like? What are the neighbor’s properties like? Are the neighbors too close for comfort, or would you like your neighbors to be closer? Pay attention to everything – all the small details.” Often when you are buying a home you are buying into a neighborhood.

If you can, take the time to talk to neighbors. Do they have children? Do you have children? Are these people you can see yourselves getting along with or even becoming friends with? Hopefully, after all the long hours of research and leg-work you will not only find your dream home, but the perfect neighborhood to best suit your interests and your lifestyle.