Boca Raton, FL Real Estate Agent

Q. WHAT IS A "HOME INSPECTION"?
A home inspection is an objective visual examination of the physical structure and systems of a home. Having a home inspected is like giving it a physical check-up. If problems or symptoms are found, the inspector may recommend further action.

Q. WHAT DOES IT INCLUDE?
A property inspection report will review the condition of the home's heating system, central air conditioning system, interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

Q. WHY DO I NEED A HOME INSPECTION?
The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. Of course, a home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase. If you are already a home owner, a home inspection may be used to identify problems in the making and to learn preventive measures which might avoid costly future repairs. If you are planning to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition.

Q. WHAT WILL IT COST?
The inspection fee for a typical one-family house varies geographically, as does the cost of housing. Similarly, within a given area, the inspection fee may vary depending upon the size of the house, particular features of the house, its age, and possible additional services, such as septic, well, or radon testing. It is a good idea to check local prices on your own. However, do not let cost be a factor in deciding whether or not to have a home inspection, or in the selection of your home inspector. The knowledge gained from an inspection is well worth the cost, and the lowest-priced inspector is not necessarily a bargain. The inspector's qualifications, including his experience, training, and professional affiliations, should be the most important consideration.

Q. CAN'T I DO IT MYSELF?
Even the most experienced home owner lacks the knowledge and expertise of a professional home inspector who has inspected hundreds, perhaps thousands, of homes in his or her career. An inspector is familiar with the many elements of home construction, their proper installation, and maintenance. He or she understands how the home's systems and components are intended to function together, as well as how and why they fail. It is best to obtain an impartial third-party opinion by an expert in the field of home inspection.

Q. CAN A HOUSE FAIL INSPECTION?
No. A professional home inspection is an examination of the current condition of your prospective home. It is not an appraisal, which determines market value, or a municipal inspection, which verifies local code compliance. A home inspector, therefore, will not pass or fail a house, but rather describe its physical condition and indicate what may need repair or replacement.

Q. WHEN DO I CALL IN THE HOME INSPECTOR?
A home inspector is typically contacted right after the contract or purchase agreement has been signed, and is often available within a few days. However, before you sign, be sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection. This clause should specify the terms to which both the buyer and seller are obligated.

Q. DO I HAVE TO BE THERE?
It is not necessary for you to be present for the inspection, but it is recommended. You will be able to observe the inspector and ask questions directly, as you learn about the condition of the home, how its systems work, and how to maintain it. You will also find the written report easier to understand if you've seen the property first-hand through the inspector's eyes.

Q. WHAT IF THE REPORT REVEALS PROBLEMS?
No house is perfect. If the inspector identifies problems, it doesn't necessarily mean you shouldn't buy the house, only that you will know in advance what to expect. A seller may adjust the purchase price or contract terms if major problems are found. If your budget is tight, or if you don't wish to become involved in future repair work, this information will be extremely important to you.

Q. IF THE HOUSE PROVES TO BE IN GOOD CONDITION, DID I REALLY NEED AN INSPECTION?
Definitely. Now you can complete your home purchase with your eyes open as to the condition of the property and all its equipment and systems. You will also have learned many things about your new home from the inspector's written report, and will want to keep that information for future reference.

Once you have competively bid moving companies and have made your selection you need to understand your rights as it relates to the service this company should provide.  The U. S. Department of Transportation has provided the following guidelines.

Bill of Lading
The Bill of Lading is the contract between you and the mover. The mover is required by law to prepare a bill of lading for every shipment it transports. The information on the Bill of Lading is required to be the same information shown on the order for service. The driver who loads your shipment must give you a copy of the Bill of Lading before loading your furniture..It is your responsibility to read the Bill of Lading before you accept it... The Bill of Lading requires the mover to provide the service you have requested, and you must pay the charges for the service. THE BILL OF LADING IS AN IMPORTANT DOCUMENT. DO NOT LOSE OR MISPLACE YOUR COPY. Have it available until your shipment is delivered, all charges are paid and all claims, if any, are settled.

Inventory
At the time the mover's driver loads your shipment, he or she, although not required to do so, usually inventories your shipment listing any damage or unusual wear. The purpose is to make a record of the condition of each item. If the driver does not make an inventory, you should make one yourself.

After completing the inventory, the driver will usually sign each page and ask you to sign each page. It is important before signing that you make sure that the inventory lists every item in your shipment and that the entries regarding the condition of each item are correct. You have the right to note any disagreement. When your shipment is delivered, if an item is missing or damaged, your ability to recover from the mover for any loss or damage may depend on the notations made.

The driver will give you a copy of each page of the inventory. Attach the complete inventory to your copy of the Bill of Lading. It is your receipt for the goods.

At the time your shipment is delivered, it is your responsibility to check the items delivered against the items listed on your inventory. If new damage is discovered, make a record of it on the inventory form. Call the damage to the attention of the driver and request that a record of the damage be made on the driver's copy of the inventory. After the complete shipment is unloaded, the driver will request that you sign the driver's copy of the inventory to show that you received the items listed. Do not sign until you have assured yourself that it is accurate and that proper notations have been entered regarding any missing or damaged items. When you sign the inventory, you are giving the driver a receipt for your goods.

Picking up and delivering shipments on the agreed dates
You and your mover must reach agreement as to when your shipment is to be picked up and delivered. It is your responsibility to determine on what date, or between what dates, you need to have the shipment picked up and on what date or between what dates, you require delivery. It is the mover's responsibility to tell you if the service can be provided on or between those dates or, if not, on what other dates the service can be provided.

In the process of reaching an agreement with a mover, it may be necessary for you to alter your moving and travel plans if no mover can provide service on the specific dates you desire. Do not agree to have your shipment picked up or delivered as soon as possible. The dates or periods of time you and the mover agree on should be definite.

Once an agreement is reached, the mover is required to enter those dates on the order for service and the Bill of Lading. Once your goods are loaded, the mover is contractually bound to provide the service described in the Bill of Lading. The only defense for not providing the service on the dates called for is the "defense of force majeure." This is a legal term which means that if circumstances which could not have been foreseen, and which are beyond the control of the mover prevent the performance of the service as agreed to in the Bill of Lading, the mover is not responsible for damages resulting from the non-performance.

If, after an Order for Service is prepared, the mover is unable to make pickup or delivery on the agreed dates, the mover is required to notify you by telephone, telegram or in person. The mover must at that time tell you when your shipment can be picked up or delivered. If for any reason you are unable or unwilling to accept pickup or delivery on the dates named by the mover, you should attempt to reach agreement on an alternate date.

The establishment of a delayed pickup or delivery date does not relieve the mover from liability for damages resulting from the failure to provide service as agreed. However, when you are notified of alternate delivery dates it is your responsibility to be available to accept delivery on the dates specified. If you are not available and willing to accept delivery, the mover has the right to place your shipment in storage at your expense or hold the shipment on its truck and assess additional charges.

If after the pickup of your shipment, you request the mover to change the delivery date, most movers will agree to do so providing your request will not result in unreasonable delay to their equipment or interfere with another customer's move. However, the mover is not required to consent to amended delivery dates and has the right to place your shipment in storage at your expense if you are unwilling or unable to accept delivery on the date agreed to in the Bill of Lading.

If the mover fails to pick up and deliver your shipment on the dates entered on the Bill of Lading and you have expenses you otherwise would not have had, you may be able to recover those expenses from the mover. This is what is called an inconvenience or delay claim. Should a mover refuse to honor such a claim and you continue to believe that you are entitled to be paid damages, you may sue the mover. The FHWA has no authority to order the mover to pay such claims.

While it is hoped that your shipment will not be delayed, you should consider this possibility and find out before you agree for a mover to transport your shipment what payment you can expect if the service is delayed through the fault of the mover.

Notification of charges
You must advise the mover at the time you make the arrangements for the move if you wish to be notified of the weight and charges. You are required to give the mover a telephone number or address at which the notification will be received. The mover must notify you of the charges at least one 24-hour weekday prior to the delivery, unless the shipment is to be delivered the day after pickup. The 24-hour requirement does not apply when you obtain an estimate of the costs prior to the move or when the shipment is to be weighed at the destination.

Receipt for delivery of the shipment
At the time of delivery, the mover expects you to sign a receipt for your shipment. This is usually accomplished by having you sign each page of the mover's copy of the inventory.

Movers are prohibited from having you sign a receipt which relieves the mover from all liability for loss or damage to the shipment. Do not sign any receipt which does not provide that you are signing for your shipment in apparent good condition except as noted on the shipping documents.

Payment of the transportation charges
At the time for payment of transportation charges, the mover is required to give you a freight bill identifying the service provided and the charge for each service. It is customary for most movers to use a copy of the Bill of Lading as a freight bill.

Except in those instances where a shipment is moving on a binding estimate, the freight bill must specifically identify each service performed, the rate per unit for each service, and the total charges for each service. Do not accept or pay a freight bill which does not contain this information.

If your shipment was transported on a collect on delivery (COD) basis, you will be expected to pay the total charges appearing on the freight bill at the time of delivery.

It is customary for movers to provide in their tariffs that freight charges must be paid in cash, by certified check, travelers check, or bank check (one drawn by a bank on itself and signed by an officer of the bank). When this requirement exists, the mover will not accept personal checks. At the time you make arrangements for your move, you should ask the mover about the form of payment that is acceptable.

Some movers permit payment of freight charges by use of a charge card. However, do not assume that because you have a nationally recognized charge or credit card that it will be acceptable for payment. Ask the mover at the time the arrangements are made.

Payment of transportation charges on shipments lost or destroyed in transit
Movers customarily make every effort to assure that while your shipment is in their possession for transportation, no items are lost, damaged or destroyed. However, despite the precautions taken, articles are sometimes lost or destroyed during the move.

In addition to any money you may recover from the mover to compensate for lost or destroyed articles, you are also entitled to recover the transportation charges represented by the portion of the shipment lost or destroyed.

On shipments with partial loss or destruction of goods, the transportation charges must be paid. The mover will then return proportional freight charges at the time loss and damage claims are processed. Should your entire shipment be lost or destroyed while in the mover's possession, the mover cannot require you to pay any of the charges except the amount you have paid or agreed to pay for added liability protection. The fact that you do not pay any transportation charges does not affect any right you may have to recover reimbursement for the lost or destroyed articles providing you pay the charges for added liability protection.

Filing of claims for loss and damage or delay and dispute resolution programs
Should your move result in loss or damage to any of your property, you have the right to file a claim with the mover to recover money for such loss or damage.

You have 9 months following either the date of delivery, or the date on which the shipment should have been delivered, to file a claim. However, you should file a claim as soon as possible. If you fail to file a claim within 120 days following delivery and later bring a legal action against the mover to recover the damages, you may not be able to recover your attorney fees even though you win the court action.

While the Federal Government maintains regulations governing the processing of loss and damage claims, it cannot resolve those claims. If you cannot settle a claim with the mover, you may file a civil action to recover in court. In this connection, you may obtain the name and address of the mover's agent for service of legal process in your state by contacting the FHWA. In addition, interstate movers are required to participate in a Dispute Resolution Program which provides that certain types of unresolved loss or damage claims must be submitted to a neutral arbitrator for resolution.

Source: U.S. Department of Transportation, Federal Motor Carrier Safety Administration

RISMEDIA, June 16, 2010-The size of new single-family homes completed declined last year, dropping to a nationwide average of 2,438 square feet, according to detailed information about the characteristics of new homes completed in 2009 that was released recently by the Census Bureau.

After increasing continually for nearly three decades, the average size of single-family homes completed in the United States peaked at 2,521 square feet in 2007. It was essentially flat in 2008, then dropped in 2009, so that new single-family homes were almost 100 square feet smaller in 2009 than in 2007.

"We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980s," said NAHB Chief Economist David Crowe. "The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home. Many of these tendencies are likely to persist and continue affecting the new home market for an extended period."

Crowe also pointed out that the average square footage of new single-family homes completed is only one measure of new home size. "The Census Bureau also reports average square footage in a quarterly release based on starts rather than completions, which is sometimes useful when market conditions are changing rapidly," he said.

In keeping with their slightly smaller size, new single-family homes completed in 2009 had fewer bedrooms than previously. After increasing for almost 20 years, the proportion of single-family homes with four bedrooms or more topped out at 39% in 2005; it was 34% last year. The proportion of single-family homes with three bedrooms increased from 49% to 53% between 2005 and 2009.

New single-family homes completed last year also had fewer bathrooms than previously. The proportion of homes with three or more bathrooms was 24% last year, a decline from the peak of 28% in both 2007 and 2008. The percentage of single-family homes with two bathrooms increased from 35 to 37 last year, and the percentage with 2½ bathrooms was at 31% for the third consecutive year. The proportion of single-family homes with 1 or 1½ bathrooms has been below 10% for more than a decade.

In 1973, the first year for which the Census Bureau reports characteristics of single-family homes completed, most new single-family homes-67%-had only one story. Twenty-three percent had two or more stories, and 10% were split levels.

The proportion of one-story homes declined steadily for more than three decades, dropping to a low of 43% in 2006 and 2007. At the same time, the proportion of single-family homes with two or more stories increased, rising from 23% in 1973 to a high of 57% in 2006 (split level homes currently account for less than one percent of all single-family homes). Since 2006 the trends have been reversed, as the share of single-family homes with one-story increased to 47% last year, while the share with two or more stories dropped to 53%.

Regional Differences in Completed Single-Family Homes
The Census Bureau's data on characteristics of completed single-family homes also showed regional differences.

In 1973, less than half of all new single-family homes completed had air conditioning; in 2009, 88% were air conditioned nationwide. Regionally, the proportion ranged from a low of 69% in the West to a high of 99% in the South. The Northeast and Midwest were at 75% and 90%, respectively.

Nationwide, 62% of new single-family homes completed in 2009 had two-car garages, and 17% had garages for three or more cars. However, there were clear regional differences. Three-car garages were found in only about 11% of homes in the Northeast and the South. In the Midwest, 30% of all homes had three-car garages, and in the West, 26%.

Regional differences were especially pronounced in the selection of exterior wall material. Nationwide, 34% of all single-family homes completed in 2009 had vinyl siding, 23% were brick, 19% were stucco and 13% had fiber cement siding.

Vinyl siding predominates in the Northeast, where it accounted for 74% of the market; wood was a distant second with a 12% market share. In the Midwest, vinyl siding accounted for 62% of the market, while wood and brick were at 15% and 11%, respectively.

Brick was the leader in the South, where it was found in 40% of new single-family homes. Twenty-eight percent of new homes in the South had vinyl siding and 13% had stucco.

The Census Bureau began reporting statistics on fiber cement siding, which is relatively new to the market, in 2005. It already accounts for 24% of the market in the West. Stucco and wood account for 52% and 15% of the market, respectively, in that region.

Most people will make one of the largest purchases they will make in their lifetimes when they buy a home. New homes fall into a special category and this article will focus on new home buying tips in this article, although many of these tips can equally be applied to any home purchase.

 Newly built homes, often in recently-developed communities, are regaining popularity and are more affordable than in years past. New homebuilders are using desirable, open floor plans and are helping buyers get into new homes despite the nationwide credit crunch. As with any major transaction, it’s critical that the buyer enter the home purchase fully informed and educated.

Follow these important tips in a new home transaction to ensure that the outcome is a success.

1. Choose a Realtor Who Has New Home Sales Experience

 Hire a buyer’s agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, which would be worthwhile since a strong Realtor negotiating on your behalf can save you thousands more than the commission.

The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.

Your own agent will represent you, act as your fiduciary and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks. If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest as hard bargaining goes out the window once you’ve emotionally already left your home.

 2. Carefully Evaluate the Seller’s Lender before Committing

Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. However, a builder’s lender might not offer you the best deal. This is particularly true if the builder actually owns the lending company. Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. You should comparison shop lenders and compare the total cost of the home and the fees associated with a loan. A builder's lender often charges higher rates and higher closing costs than you will get from a lender that has an arms length relationship with the builder.

Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.

 Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.

3. Check out the Builder’s Reputation

If a buyer has a bad experience with a builder, word spreads rapidly throughout a community. However, accurately and fairly assessing a builder’s history is the appropriate path- check public records for lawsuits or complaints and evaluate their resolutions. Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value? Learn if the builder limits investor purchases – this ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.

4. Hire a Home Inspector

Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired. If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue. An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.

5. Obtain Legal Advice before Buying a Brand New Home

Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer. Ask questions about removal of contingencies and your cancellation rights.

Make sure you understand your liability and commitments.

Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.

6. Location, Location, Location

The most important thing to decide when building a new home is where to build. What makes,the community that you are interested in stand out? Often, new building developments are located on the outskirts of a city or suburban area. It’s therefore important to check if the area you are considering is close enough to transportation routes, shopping and schools. Also, find out if the developer is planning to add amenities that will enhance your lifestyle such as walking trails and ponds.

Another variable to consider when purchasing your new home is future plans for your area. What is going to be built beside you, behind you or across the street. Horror stories abound. Imagine just moving into your new home when construction starts on the lot across the street, which was previously zoned as unplanned, for a local convenience store with the associated traffic and kids hanging around. Always make sure you know what is being built around you and do not make any assumptions.

 7. Embrace Quality Landscaping

Trees and shrubs can make a huge difference in your energy bills, so make sure a qualified landscape contractor is helping you with decisions. You don’t want tree roots to eventually impede your water lines, nor do you want their limbs to eventually grow into electrical or cable lines. And you don’t want to plant sun-loving flowering shrubs in the shade of a big tree. Will the plants you’ve chosen provide the appropriate screening from neighbors or noisy highways? Don’t just think about how the plants look now. Picture them 20 years down the road. Consider maintenance, too. Will you benefit from an underground sprinkler system? Will a hose and sprinkler reach to that bed of flowers you want to plant near the sidewalk? Do you have hose bibs where you need them — one close enough to wash your car in the driveway, others well placed on the front and back of the house?

8. Watch Your Budget

New home communities list a base price for the homes that they offer. However, this is rarely the actual final cost when building a new home. Be aware that you can add thousands of dollars to the base price of a home very quickly if you get carried away upgrading the standard flooring, cabinetry or lighting. It’s important to know exactly how much you can afford and to budget accordingly.

9. Build with Resale in Mind

No matter how much you love the house that you are building, it’s unlikely that it will be the last home you will ever own. Knowing that, you should be mindful of its potential resale value. Don’t add so many upgrades that you overprice your home for the neighborhood. And don’t choose anything too out of the ordinary. Ask yourself if the features you’re considering installing are likely going to appeal to others.

 10. Know Your Timeline

Building a new home usually takes many months and lots must be coordinated during this time frame. If you are already a homeowner, your current home must be sold, you must make decisions regarding your new home and you must arrange a new mortgage. Get an estimate of when the building of your new home will be completed and plan accordingly.

11. Be Prepared For Delays

No matter what time frame a builder gives you, there is always the possibility of delays. Inclement weather, shortages of supplies and labor problems can all factor into delaying the completion of your home. Be aware of this going into the building process and be prepared to be somewhat flexible.

12. Keep a Close Watch on Progress

One way to help prevent delays and mix-ups is to stay involved in the building process. If possible, drive by the construction site to keep track of the progress that is being made. And keep in touch with your builder on a regular basis.

13. Avoid Making Changes

Try to avoid making changes to your designs once all of the plans have been completed. It will delay the completion of your new home and may add considerably to the final cost.

14. Arrange Temporary Housing

Chances are there may be a delay between the time you sell your existing home (or the lease expires on your current rental unit) and the time you move into your new home. If this is the case, you will need to arrange some temporary housing. Realize that you may be living there for several months so make sure it will be both affordable and able to meet your needs.

15. Read Those Manuals

Sure, you’d rather rearrange your furniture than read owner’s manuals, but if you don’t learn precisely how your new appliances and other home gadgets work, you may inadvertently break them. Ideally, your builder will walk you through the operation of every appliance — but read the manuals to be safe.

Below are tips for home buyers considering an investment in Florida real estate.

1. Consider the Cost of Hurricane Shutters

Hurricane Shutters are not a small investment but will provide you with a discount on your homeowners insurance.  When comparing properties remember to note which ones have full wind protection and the quality and ease of use of the shutters.

2. Remember Sprinkler Systems

I am sure you are aware that it can get very hot in Florida. Homes need built in sprinkler systems to maintain the beauty of the landscaping. In ground sprinkler systems are almost standard on most South Florida homes, less so as you head north.  Factor the cost of adding and repairing these systems into your cost analysis.

3. Barrier Island vs. Intracoastal vs. the Mainland

There are many buyers that believe they want to live in a barrier island because they have heard about the beauty and the instant water access.  If you are a boater, direct ocean access and no fixed bridges are important.  Insurance costs are higher and you will always need to contend with bridges when you want to cross over to the mainland.  Many people do not realize that the ocean views are beautiful during the day...but pure blackness at night.  Many people find this very disconcerting and will often prefer Intraocoastal or a city view in addition to the direct ocean view.

4. Maintenance Fees

Every condo and development will have maintenance fees and/or Homeowners association fees.  They can vary significantly and need to be considered as part of your budgeting process.  In a condo the building insurance costs are factored into the fees where as a single family residence it is additive.  Make sure you understand all the costs that are inclusive in these fees and how and if they are capped. Taxes and insurance are also fees that you need to consider when considering the full cost of owning a home in Florida.

6. Homeowners Insurance

Ask your Realtor of a local insurance agent about flood zones and if you need flood insurance, what items in the home are eligible for insurance deductions or will increase the cost of your insurance ( wind storm protection, security systems, style of roof, Miami- Dade approved roofing and garage doors, skylights, location)

7. Owning a Home with a Pool and/or Jacuzzi

The Florida Department of Health reports, "Deaths from drowning for children less than age five in Florida are more than double the national average and are higher than any other state in the nation. More than two-thirds of these deaths occurred in swimming pools."
Most people dream of having a home in Florida with a pool and it is a great dream, but everyone needs to consider pool safety.   If you have small children or grandchildren consider the cost of child-proofing the pool and patio area.

8.  Home Energy Efficiency

The cost of cooling is an expense that you may not be families with.  Understand the age and tonage of the air-conditioning units that are installed with the home.  Anything nearing 15 years of age will need to be replaced soon and are not efficient compared with newer units.  Zones air air conditioners ( more than one unit) allow you to regulate the cooling and heating in the areas of the home that may not be used often ( guest room and guest homes).

If you are used to gas cooking and heating you may be surprised to find the number of homes and neighborhoods that do not offer this as an option.  Propane can be installed for gas cooktops, water heaters, fireplaces and gas grillls.

9.  Year Round Yard Maintenance

These is no dormant season for lawns in Florida.  Be prepared for year round yard maintenance.  Grass needs to be cut about 3 times a month in the summer rainy season and twice a month in the winter.

The term "Chinese Drywall" refers to drywall imported from China from 2001 to 2007 which emits sulfur gasses which usually (but not always) create a noxious odor and corrode copper and other metal surfaces, thereby damaging your air conditioner, electrical wiring, copper plumbing, appliances and electronics.  Corrosion of electrical wiring can hamper the effectiveness of your smoke detection and can create a risk of fire. 

Chinese drywall is also very friable, which means it is in a state where small particles can easily become dislodged with little friction, thus enabling them to easily enter your lungs.  For this reason, even after Chinese drywall is removed, the toxic drywall particulate may remain unless property removed.

Hundreds of millions of sheets of Chinese drywall were imported from 2004 to 2006, but Chinese
drywall has recently been found in homes built or remodeled as early as 2001. Accordingly, this
phenomenon cannot be explained solely by the shortage of American-manufactured drywall.  The presence of Chinese drywall has been reported in 37 states, the District of Columbia and Puerto Rico is estimated to have been installed in over 100,000 homes in the United States.  Unfortunately, this does not paint an accurate picture as most affected homes have a mixture of safe and tainted drywall.

Chinese drywall is 1/2" in width, although Lori A. Streit, Ph.D., from Unified Engineering, the same compounds found in problematic Chinese drywall and the same gases released therefrom have also been found in drywall measuring 5/8" (which is typically used in ceilings).  Chinese drywall is typically mixed in with untainted drywall, which is why people should not assume that their home is fine if they find U.S. drywall.   Moreover, U.S. drywall may have been manufactured in China and rebranded.

Does your home smell like rotten eggs or ammonia (sometimes a sweetish smell)? Is it more
noticeable when entering your home and then seems to dissipate? The level of odor varies greatly in each home as does each person's ability to detect the odor. Of course, the strength of the odor also depends on how much drywall was used in the home. Significantly, some homeowners report no smell, but their home clearly has Chinese drywall. In short, do not rely on your nose alone, particularly since many develop olfactory fatigue after being exposed to Chinese drywall.

One of the telltale signs is corrosion/pitting of the air conditioner evaporator coils (which are located inside the air handler).  Many owners are first advised of a freon leak, and as the corrosion progresses, evaporator coils eventually need replacement.   An examination of the coils typically reveal a black sooty deposit, which may also appear on the freon line.  

Chinese drywall also corrodes electrical wiring.   Signs of an electrical problem include a circuit breaker which frequently needs resetting without an apparent cause (particularly a GFCI or AFCI); lights that flicker without any apparent cause; bright flashes or sparks anywhere in your electrical system (this may indicate arcing conditions in the wiring);  buzzing from electrical systems, switch plates, dimmers and outlet covers that are discolored from overheating; and a smell from overheating plastic.Personal property such as precious metals and mirrors also were affected. 

Many of the occupants of these homes complained of respiratory problems including sore throats, coughs, nose bleeds, and sinus headaches. 

The Consumer Product Safety Commission serves as the lead agency within the interagency task force that also includes the U.S. Environmental Protection Agency, the Centers for Disease Control and Prevention/Agency for Toxic Substances and Disease Registry, and the U.S. Department of Housing and Urban Development as well as the Florida Department of Health, the Louisiana Department of Health and Hospitals and the Virginia Department of Health, among others.

On April 2, 2010, The U.S. Department of Housing and Urban Development (HUD) and the Consumer Product Safety commission (CPSC) issued interim remediation guidance to help homeowners.  The guidance issued does outline a very common sense approach that simply entails removing the source of the problem (the defective drywall) and replacing the components that are affected.  Consumers are cautioned to be wary of companies and contractors offering these services.  Not only should consumers verify that the contractor is licensed and insured, consumers are encourage to hire a non affiliated third party inspector to oversee and document the remediation process.

Due to the dangers involved, consumers should exercise caution when inspecting components for symptoms of defective drywall.  Always consult a qualified technician or experienced Inspector to inspect air conditioning and electrical components. Equally important is that consumers should recognize that many homes do display symptoms similar to defective drywall.  Only a trained and experienced Inspector can recognize the distinct differences between components affected by gases produced by defective drywall and components affected by natural volatile gases that already exist in many homes.  

These are the following steps that a qualified Inspector should be doing when inspecting a property for Chinese Drywall.

Step 1:   Threshold Inspection

This is a basic visual inspection of the home's copper g round wiring and the air conditioning system's copper evaporator coils.  The Inspector must be experienced enough to determine if any corrosion of these components is caused by gases from Chinese Drywall or if the problem is caused by natural volatile gases that exist in the home.  If the Inspector does not have extensive experience and exposure to both types of situations, there is a much greater risk of the home being misdiagnosed. 

The second part of the threshold inspection (visual) is to confirm that the home had drywall installed between the years of 2001 and 2008.

If the threshold inspection determines the potential presence of Chinese Drywall your Selling Agent should ammend the contract and extend the inspection period required to determine any deficiencies with the property to at least a 60 day period.

Step 2:  Corroborating Evidence

It should be noted at this time that the steps described within step 2 are recommended by the CPSC and HUD ONLY if both parts of the Threshold Inspection are confirmed to be positive. 

Collecting corroborating evidence combines a visual inspection along with invasive examination of the home's installed drywall.  There are (6) items of corroborating evidence that are recommended to confirm homes that are considered positive through the threshold inspection.

If the home's drywall was installed between 2005 and 2008, only (2) items are required.  For installations between 2001 and 2004, at least (4) if the items must be met.  Consumers should note that these items may often require specialized instruments, laboratory testing, or completion by a trained professional. 
   
    (a) Testing by placing copper coupons in the home for a period of 2 weeks to 30 days or confirmation of the presence of sulfur in the blackening of the ground wires and/or air conditioner evaporator coils.  The risk of placing copper coupons in the home is that the copper coupons must be placed within the walls that contain defective drywall.  Most homes built during the time period were built with at least two and sometimes three different brands of drywall.  Positive identification of the wall must be confirmed for accuracy. 

    (b)  Confirmed markings of "Chinese" origin.  Please use caution.  Most markings found in homes that are positive for Chinese Drywall do have markings visible with specialized cameras, however an experienced Inspector must be consulted to determine accuracy when matching these markings with the brands of drywall suspected of being defective. 

    (c)  Strontium levels in samples of drywall core found in the home.  This may require laboratory testing for accuracy.  There are portable machines available to utilize, however consumers are cautioned to ensure that the person using these portable machine is properly licensed and that the machine is registered.  Care should be taken to examine every wall of the home in order to ensure accuracy (for the same reason noted above where multiple brands of drywall may be installed in the home). 

    (d)  Elemental sulfur levels in samples of drywall core found in the home exceeding 10ppm.  Again, this method is only accurate if the correct sample of drywall is taken.  Due to the high probability of multiple brands of drywall being installed in the home, multiple core samples may need to be tested.  This method is costly at a testing price range of $200-$500 per sample. 

    (e)  Elevated levels of hydrogen sulfide, carbonyl sulfide, and/or carbon disulfide emitted from samples of drywall from the home when placed in test chambers.  This method is much like item (d) explained above and also has the same risks of false reporting if the incorrect piece of drywall is chosen to sample. 

    (f)  Corrosion of copper metal to form copper sulfide when copper is placed in test chambers with drywall samples taken from the home.  This method is a duplicate of method (a), however is performed in a laboratory.  Again care is required to remove the correct sample of drywall in order to prevent false reporting.

Users should also be aware that the corroborating evidence items (c), (d), (e), and (f) often take weeks to obtain results.  For homeowners living in these conditions and buyers under contractual obligations for inspections may not be able to tolerate the turnaround time. 

In conclusion, a comprehensive visual inspection with the invasive, yet non destructive corroborating evidence is sufficient to identify homes that contain defective drywall (Chinese Drywall).

ORLANDO, Fla. - May 11, 2010 - Salesof existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.

"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."

The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital - both foreign and domestic - continues to enter the state in search of quality investment deals, he added.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.

© 2010 Florida Realtors®

History teaches that a lack of hurricane awareness and  preparation are common threads among all major hurricane disasters. By knowing your vulnerability and what actions you should take, you can reduce the effects of a hurricane disaster.  Hurricane hazards come in many forms: storm surge, high winds, tornadoes, and flooding. This means it is important for your family to have a plan that includes all of these hazards. Look carefully at the safety actions associated with each type of hurricane hazard and prepare your family disaster plan accordingly. But remember this is only a guide. The first and most important thing anyone should do when facing a hurricane threat is to use common sense.

Know Hurricane Terms:  

Hurricane Watch - A hurricane is possible within thirty-six hours. Stay tuned for additional information.

Hurricane Warning - A hurricane is expected within twenty-four hours. You may be advised to evacuate. If so, evacuate immediately.

Storm Surge - Storm surge is simply water that is pushed toward the shore by the force of the winds swirling around the storm. This advancing surge combines with the normal tides to create the hurricane storm tide, which can increase the mean water level 15 feet or more.

Ask your local emergency preparedness office about evacuation plans. Learn evacuation routes. 

• Plan a place to meet your family in case you are separated from one another in the hurricane.
• Assemble a disaster supplies kit ( See information below) 
• Board up windows. Permanent storm shutters offer the best protection. Also, you can use 5/8" marine plywood. Tape does not prevent windows from breaking.
• Know how to shut off utilities.
• Make a record of your personal property( take digital photos or video tape the contents of your home and/or business and keep in a waterproof with you along with your homeowners insurance policy) 
• Be sure trees and shrubs around your home are well trimmed.
• Clear loose and clogged rain gutters and downspouts.
• Determine how and where to secure your boat.
• Consider flood insurance and purchase it well in advance.  
  

30 Days To Hurricane Season: Time For Flood Insurance

The Atlantic hurricane season starts June 1 - 30 days from now. Since flood insurance takes 30 days to become effective after a homeowner applies, today marks your last chance to get flood insurance by the June 1 debut.

"Past hurricane seasons have shown that storms can form as early as the beginning of June, so property owners can't afford to wait to buy flood insurance," says Ed Connor, acting federal insurance administrator and acting assistant administrator, FEMA Mitigation Directorate.

Many homeowners still wrongly believe that their property insurance policy will cover all damage from a hurricane.

"Homeowners insurance doesn't cover flood damage and, without flood insurance, property owners may have to absorb the financial losses on their own," says Connor. "Just a few inches of water can cost thousands of dollars in repairs and, in this economy, few can afford that potential drain on their savings."

Flood insurance is available through about 85 insurance companies in approximately 20,600 participating communities nationwide. National flood insurance is available to renters, business owners and homeowners, even if it is not required by the terms of a mortgage. While the average flood insurance policy costs about $540 a year, homeowners can protect their properties in moderate-to low-risk areas with lower cost Preferred Risk Policies (PRPs) that start at just $119 a year.

Individuals can learn how to prepare for floods, how to purchase a flood insurance policy and the benefits of protecting their properties against flooding by visiting Floodsmart.gov (http://www.floodsmart.gov) or calling (800) 427-2419.

Preparing Your Pets for Emergencies Makes Sense.
Get Ready Now.
 If you are like millions of animal owners nationwide, your pet is an important member of your household. The likelihood that you and your animals will survive an emergency such as a fire or flood, tornado or hurricane depends largely on emergency planning done today. Some of the things you can do to prepare for the unexpected, such as assembling an animal emergency supply kit and developing a pet care buddy system, are the same for any emergency. Whether you decide to stay put in an emergency or evacuate to a safer location, you will need to make plans in advance for your pets. Keep in mind that what's best for you is typically what's best for your animals.
If you must evacuate, take your pets with you if possible. However, if you are going to a public shelter, it is important to understand that animals may not be allowed inside. Plan in advance for shelter alternatives that will work for both you and your pets.
Make a back-up emergency plan in case you can't care for your animals yourself. Develop a buddy system with neighbors, friends and relatives to make sure that someone is available to care for or evacuate your pets if you are unable to do so. Be prepared to improvise and use what you have on hand to make it on your own for at least three days, maybe longer.



Disaster Supply Kit:    I personally prepare a hurricane closet in May with all the needed supplies and materials so that there is never a last minute rush to the store when the shelves have been cleaned out. 

   Water :

• Plan on one gallon of water per person per day for at least 3 days, for drinking, washing, cooking, and sanitation. Extra water for pets
• Store as much as possible in plastic containers such as soft drink bottles.
• Avoid using breakable containers, such as glass bottles or mason jars.
• Fill bathtubs with water for bathing and washing dishes

Food :

• Store at least a three day supply of non perishable food.
• Choose foods that do not require refrigeration or cooking.
• Choose foods that are healthy and high nutrition type.                                                 (Canned meats fruits and vegetables,protein or fruit bars, dry cereal or granola, peanut butter, dried fruit, nuts, crackers, canned juices, non-perishable pasteurized milk, high enery foods, vitamins, food for infants and pets, comfort/stress foods)

Supplies and Equipment:

• A battery operated radio with extra batteries
• NOAA Weather Radio with tone alert and extra batteries
• A flashlight with extra batteries
• Blankets or sleeping bags ( store in trash bags to keep dry)
• Paper plates and utensils, including a non electric can opener
• Candles and matches in a waterproof container
• Plastic sheeting and duct tape to shelter-in-place
• Toothbrushes, toothpaste, soap, moist towelettes, and other personal grooming items
• Paper towels and toilet paper
• First aid kit and medicines ( ask your pharmasist or drug supply company for a one month hurricane supply and store in water proof container)
• Fire extinguisher
• Wrench or pliers to turn off utilities
• Cell phone and plug in battery operated charger
• Infant formula and diapers
• books, games and toys to keep kids occupied ( remember those batteries)
• Important family documents such as copies of insurance policies, identification and bank account records in a waterproof, portable container
• Complete change of clothing including long sleeved shirt, long pants and sturdy shoes
• Insect repellent and sun-screen
• Paper and pencil
• Local Maps

Useful Links:  

General Hurricane Information:  
National Hurricane Center

 NWS Hurricane Awareness site

NOAA Hurricanes site Frequently Asked Questions

FEMA Hurricane Info

FEMA for kids NCDC: Hurricanes

Hurricane Safety Information:

American Red Cross

FEMA EPA - Drinking Water, Waste Water, and other Hurricane Hazards

RISMEDIA, May 5, 2010-The three most important things to remember when moving and buying a new home are: location, location, location. As potential home buyers start looking for new homes, RelocateAmerica.com, a leading website in providing relocating consumers access to resources for their upcoming relocation, has released its 13th annual list of "America's Top Places to Live for 2010."

The "Top Places to Live" list features several breakout categories such as the Top 10 Recovery Cities, Retirement Cities, ‘Earth Friendly' Cities, Recreation Cities and Small Towns.

New for this year, the Top 10 Recovery Cities focused on areas poised for swift economic recovery. Many of these communities did not see the massive real estate bubble that formed in other areas and have a more diverse economy.

To be considered for the list, a community is nominated at RelocateAmerica.com. From the thousands of submissions, RelocateAmerica.com's editorial team reviews the nominations and selects the top places to live, as well as the Top 10 for each smaller category, based on interviews with local leaders; feedback from residents; and economic, environmental, education, crime, employment and housing data for the past year.

"Given the tough economic times our nation is facing, home buyers have re-evaluated their priorities and are looking to relocate to communities that offer plenty of perks, but minimal hassle and cost," said Peter Meyers, Vice President, Research and Content Development, at RelocateAmerica.com. "While some cities are facing a road to recovery that could take years, others are poised for a quick rebound - and already have seen growth. We wanted to highlight those cities that are on the road back to economic health."

Top 10 Overall Cities:

1. Huntsville, AL
2. Washington, DC
3. Austin, TX
4. San Diego, CA
5. San Antonio, TX
6. Tulsa, OK
7. Charlotte, NC
8. Raleigh, NC
9. Boulder, CO
10. Minneapolis, MN

Top 10 Recovery Cities:

1.  Huntsville, AL
2. Austin, TX
3. Las Cruces, NM
4. Washington, DC
5. San Antonio, TX
6. McAllen, TX
7. Billings, MT
8. Albuquerque, NM
9. Everett, WA
10. Boulder, CO

Top 10 Retirement Cities:

1. Ashville, NC
2. Bella Vista, AR
3. Green Valley, AZ
4. Sarasota, FL
5. Prescott, AZ
6. Tampa, FL
7. Greenville, SC
8. San Antonio, TX
9. Hot Springs Village, AR
10. Colorado Springs, CO

Top 10 ‘Earth Friendly' Cities:

1. Portland, OR
2. Boston, MA
3. Madison, WI
4. Boulder, CO
5. Austin, TX
6. Chicago, IL
7. Minneapolis, MN
8. Fort Worth, TX
9. Ann Arbor, MI
10. Huntsville, AL

Top 10 Recreation Cities:

1. Boulder, CO
2. Santa Cruz, CA
3. Flagstaff, AZ
4. St. George, UT
5. Ithaca, NY
6. Corvallis, OR
7. Salt Lake City, UT
8. Stevens Point, WI
9. Wilmington, NC
10. Portland, OR

Top 10 Small Towns (<40K pop.):

1. Grinnell, IA
2. St. Augustine, FL
3. Fairhope, AL
4. Stillwater, MN
5. Summit, NJ
6. Ashland, OR
7. Batavia, IL
8. Ithaca, NY
9. Peachtree City, GA
10. Trumbull, CT

For more information, visit www.RelocateAmerica.com.

The current market conditions make it a perfect time for an investor to purchase one or more foreclosure properties for their private residence, rental or resale.  First, you have to decide at what stage of foreclosure you want to buy; pre-foreclosure , also known as a short sale, sheriff's auction, or repossession, called REO (for real estate owned by the bank).

For most consumers, however, the foreclosure process can prove daunting, Reed says. Good buys are available, but they require research, preparation, patience and persistence.

Pre-foreclosure(Short Sales): These homes are in the foreclosure process, but they have yet to be sent to auction. Owners are typically trying to unload them because they are "underwater," owing more on the homes than they are worth.

As a result, potential buyers must negotiate a deal with the lender as well as the owner. That makes buying at this stage of foreclosure complicated and slow. But, you have the advantage of being able to inspect the home before purchase -- which isn't the case in other types of foreclosure sales. More often than not, these properties sell for a higher price than if the bank were to take it through the foreclosure process and sell it as an REO.

Sheriff's auction: These sales yield the lowest prices, but they are the riskiest investments. The foreclosure process starts when a property owner falls behind on mortgage payments. Many owners of homes that go into foreclosure have been struggling financially for almost a year before they give up, which usually means that the house has not received needed repairs or general maintenance for a while. Often the house is unavailable for inspection, leaving buyers with a long list of expensive repairs -- and much larger bill than they intended. The buyer gets the property "as is", caveat emptor (let the buyer beware) and that may include any liens or taxes due on the property. 

There is no guarantee of clear title when you purchase a home through a Sheriff's auction and you may need to clear the liens on the property to sell if in the future.  Make sure you have a thorough understanding of the condition of the property, the liens, and the cost for repairs.  These are all out-of-pocket expenses and will need to be added to the purchase price of the property to get a true assessment of what you are paying for the property.

Repossession ( REO): This occurs after the home has gone through a sheriff's auction but does not sell and the bank gains possession of the property. Homebuyers may not get the best bargains during this stage, but they can nearly always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property comes with a clear title.

An REO is the least risky way to buy a foreclosed home. Before a bank hangs a "For Sale" sign, it pays off all the existing debts and taxes, and in many cases, repairs the home to bring it up to the standards of the neighborhood. Best of all, you should be able to buy a bank-owned property with a traditional mortgage. In addition, the banks selling these places may extend preferential financing terms to the buyers. 

"You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market," said John T. Reed, editor of Real Estate Investor's Monthly, a newsletter based in Alamo, Calif.  Banks order appraisals on the properties once they agree to a short sale or take the property back as an REO.  The banks are fully aware of the market value of the property and tend not to discount too far off the appraised value. 

Even in this safer stage, though, homes are still usually sold in "as is" condition. "That means the bank won't pay for cosmetic issues," said Adam Wiener, a spokesman for the Redfin, the online real estate marketer. "Although, they will often pay for some or all of repairs that are health and safety issues. That makes the home inspection even more critical."

Making an Offer.......
Usually the offer amount is somewhere below the market value but above the total outstanding liens and estimated repair costs. If the property is a pre-foreclosure or bank-owned, you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search ( paid for by the buyer).

If the property is selling at auction, you will need to make your offer, or bid, at the auction. In many states, bidders are required to pay in cash in the form of a cashier's check at the auction. You probably won't be able to conduct a full inspection and title search when you buy at an auction, so it's important to do careful research beforehand.

Once you've decided which type of home to buy, there are several common mistakes foreclosure buyers should take care to avoid. These include:

Getting caught up in a bidding frenzy: The banks often under-price repossessions, hoping to generate excitement, attract multiple bids and sell them quickly. The problem is, as in any auction-type sale, bidders get excited and pay too much.

Underestimating repair costs: Take full advantage of the home inspection and don't delude yourself about much the repairs will cost.

Not knowing what comparable properties cost: This is important in any market but especially in this endeavor. In high foreclosure areas, prices can be eroding very quickly. You want to have the latest homes sale prices on repossessed properties and try to keep your bid comparable or lower.

Buying in a neighborhood flooded with foreclosures: This is most important for people buying for the short-term. Any neighborhood saturated with REOs and foreclosures may be headed for further price falls. If you're planning to relocate within a few years or buying a bigger house, that could mean selling at a loss. A better bet, if you can find it, is to buy the only foreclosed home in an otherwise stable community. That's more likely to hold its value.

Banks want to know that you have already secured the financing to purchase the home or that you are paying cash.  Offers contingent on financing or selling your existing home are often summarily rejected by the bank.  Individuals with a large amount of equity in another home may get a line of credit from their bank to purchase a foreclosure. When they  convert the line of credit to a mortgage, no down payment may be required.

Whether you use cash, a home equity line of credit, resources from other investors or mortgage products, secure the money for your purchase in advance. Sellers only want to work with serious buyers who are ready to buy quickly. You could miss an opportunity if you don't have your financing in place.

Foreclosure homes bought in good areas at below market values that appreciate annually can be a sound investment strategy for many investors. The appreciation of the homes is tax-exempt until the home is sold. If the home is a primary residence, the appreciation may be tax-free.

Homes used as rental properties give most investors valuable tax deductions while the house increases in value and builds equity. Real Estate investment is a good way to diversify your portfolio.