Boca Raton, FL Real Estate Agent: Kim Bregman (Optima Properties)

Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal home buyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.

Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the distressed market and the record low mortgage rates.

Here are common missteps that home buyers make:

Going it Alone

With so many web sites offering a mass of data on listings, who needs a real estate agent?  Most people, actually. Finding a house and figuring out comps (the price of comparable homes on the market) is the easy part. Managing the nuances of contracts, addendums, offers,  counter-offers, inspections, financing, estoppel letters,  and all the other pivotal steps to buying a home is where many buyers tend to make costly mistakes.

When you hire an agent make sure you are working with an Exclusive Buyer's Agent; they are obligated to put your interests first, even if their commission is paid by the seller and based on the sale price.

Buyer's Agents are skilled real estate professionals who choose to work for buyers. A top Buyer's Agent is your full-time advocate, researcher, advisor, negotiator and local community expert. The job of a Buyer Agent is to acquaint you with the community, answer your questions, help you decide on your home selection criteria, and locate the home that best suits your needs at a fair market value.

Unlike most real estate professionals, Buyer's Agents have no loyalty or fiduciary responsibility to any home seller; they do not accept listings. Buyer's agents exclusively represent the homebuyer and their best interests. Hiring an Exclusive Buyer's Agent eliminates any conflicts between the seller's and buyer's representation.

But don't let the agent find you; do your research.  Ask friends and neighbors about good experiences they have had.  Relocating to a new area?  Do use the Internet to search for your initial list of agents to speak with.  Make sure you ensure that the agent you select is an EXCLUSIVE buyers agent and does not also take listings.  They have a conflict of interest when representing both Sellers and Buyers.

Know How Much You Can Afford

Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt, and then get a dose of cold water when lenders refuse to qualify them for that amount.

Ask you real estate agent for some recommendations for mortgage brokers and get pre-qualified.  A good mortgage broker will explain the process to you, give you a list of documentation you will need to prepare for mortgage qualification, and will assist you through the loan process.  Remember, too, that the costs of buying and owning a home go well beyond the sticker price. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.

Falling in Love with the Home

No one will fault you for falling hard for a home; but understanding the neighborhood, age of home, commute times, schools, neighbors, covenants and restrictions, and local amenities is all part of the homeowner experience.   In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can

always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules, and aggravating commutes.

If you are purchasing an older home you must factor in renovation and repair costs as well. Of course, new homes aren't without their drawbacks.  Recently, many newly built homes experienced serious problems with Chinese-made drywall and radon, for example. Proceed with care whatever the home's age.

Spend as much time as you can in your future neighborhood, ideally on different days and times.

Making Arbitrary Offers

With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them-all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.

If the house has been on the market for months and has not reduced their listing price recently, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity, and market trends, and don't be afraid to start the bidding low.  If you are serious about purchasing the home however, making an unreasonably low offer may have the unintended result of putting a bad taste in the Seller's mouth and not getting a counteroffer.  I have had more than a few deals go south because of the impression the Seller gets of the Buyer "bottom-feeding" and not being reasonable and well-intended buyers.

 If the house is fresh on the market, has taken a recent price reduction, or recently foreclosed, and other buyers are circling the block, put your best foot forward with the guidance of your real estate professional, but don't get suckered into a bidding war.

WEST PALM BEACH, Fla. - Aug. 17, 2010 - The number of homes and condominiums for sale across South Florida has steadily declined over the past two years, an encouraging sign for the region's battered housing market.

Still, industry observers worry about a sizable "shadow inventory" of foreclosed homes that could complicate any real estate recovery.

Broward County had 19,869 properties on the market in July, down 35 percent from July 2008, according to a multiple listing service report compiled by the Keyes Co.

Palm Beach County's inventory of homes and condos slid 31 percent to 23,947 during the same period.

The supply of new homes being built in the two counties also has decreased sharply in the past two years, said Brad Hunter of the Metrostudy research firm in Palm Beach Gardens.

In 2005, sellers rushed to list their homes, hoping to fetch record prices during the housing boom. But the frenzy led to a collapse and prices plummeted.

Thousands of foreclosures and short sales have clogged the market ever since, giving buyers plenty of choices and little reason to pay top dollar.

"You won't get price appreciation until you get the inventory in balance," said Mike Pappas, president of Keyes. "We're making great strides."

Declines in homes for sale already have helped stabilize prices recently.

The median price in Broward rose 7 percent during April, May and June to $209,800 from a year ago, the Florida Realtors said Wednesday. Palm Beach County's median increased at the beginning of the year but dipped 2 percent in the second quarter to $235,500.

Pappas said his firm is handling fewer transactions involving foreclosed homes, and he thinks that's an indication the foreclosure market has peaked.

But some analysts disagree, pointing to a recent surge in homes repossessed by lenders that is pushing inventory levels higher in recent months.

Banks are on pace to take back nearly 50,000 properties in Palm Beach, Broward and Miami-Dade counties this year, according to CondoVultures.com, a real estate consulting firm. Many lenders are careful to hold off listing those properties for sale all at once to prevent widespread price declines.

Sean Snaith, an economist at the University of Central Florida, expects more foreclosures to result from homeowners losing their jobs. And he said the sagging labor market likely will discourage potential homebuyers.

"You have to have a healthy labor market as a foundation for a healthy housing market," Snaith said.

Another concern is the expiration of the federal homebuyer tax credits.

Buyers who signed contracts by April 30 and close by the end of September are eligible for the $8,000 and $6,500 tax rebates. But people who put homes under contract after April 30 don't qualify.

While pending sales still are robust, demand for homes is expected to wane in the second half of the year. Fewer sales would keep the supply of homes elevated and ultimately hurt pricing, said Chris Lafakis, an economist covering Florida for Moody's Economy.com in West Chester, Pa.

"Our forecast is that ... demand won't be strong enough to work off the excess inventory fast enough to stave off future price declines," Lafakis said. "But by this time next year, the worst of the declines will be over."

North Carolina boasts the second-lowest mortgage closing costs in the country, says a survey released Monday by Bankrate.com

The study found that on a $200,000 loan, N.C. home buyers pay an average of $3,255 in closing costs - $1,476 in origination fees charged by the lender and $1,779 in average title and third-party fees.

Only Arkansas, with average closing costs of $3,007, fared better than North Carolina in the study.

North Carolina, Arkansas and Iowa are the only three states with average closing costs at least 25 percent below the national average of $3,741.

Closing costs in New York easily are the country's highest, at $5,623. Texas is second, at $4,708, followed by Utah.

The Bankrate.com findings come just days after a Freddie Mac report showing long-term mortgage rates hit record lows last week.

Freddie Mac (NYSE:FRE) said 30-year fixed-rate mortgages averaged 4.44 percent in the week ending Aug. 12, down from 4.49 percent the previous week. And 15-year fixed-rate mortgages fell to 3.92 percent on average, also the lowest on Freddie Mac's record book.

Home owners are more active in their communities, benefit from improved education opportunities, and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the NATIONAL ASSOCIATION OF REALTORS®, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.

"Homeownership is in investment in your future - home is where we make memories, build our lives and feel comfortable and secure," said Vicki Cox Golder. "Owning a home has long-standing government support in this country because homeownership benefits individuals and families, strengthens our communities, and is integral to our nation's economy."

NAR's study identifies research from government, industry, and academia that identified the relationship between homeownership and stable communities. Home owners move far less frequently than renters, and therefore are embedded into the same neighborhood and community for a longer amount of time. This allows for social cohesion, ultimately resulting in social benefits and stronger communities.

"REALTORS® care as much about keeping families in their homes as they do about helping them find the home of their dreams," said Golder. "Social benefits do not arise solely from ownership, but also from greater housing stability and social ties associated with less frequent moves among home owners."

Several research studies cited in the NAR report have found that homeownership has a significant impact on educational achievement. For instance, the decision by teenage students to stay in school is higher for those raised by parents who are homeowners compared to those whose parents are renters. Access to economic and educational opportunities are also more prevalent in neighborhoods with high rates of homeownership. Furthermore, studies have shown that changing schools frequently due to moving impacts negatively a child's educational outcome.

Civic participation is another social benefit resulting from homeownership and stable housing. Home owners are proven to be more politically active and are more likely to vote in local elections compared to renters. In addition, homeowners have a higher membership in voluntary organizations.

Studies have shown that home owners are more likely to believe that they can do things as well as anyone else, and they self-report higher ratings on their physical health. "The research shows that home owners report higher self-esteem and happiness than renters, resulting in better overall health, both physically and psychologically," said Golder.

When it comes to property, home owners have more invested both financially and emotionally. Property crimes affect home owners directly, but nonviolent property crimes can impact the property values of the entire neighborhood. Therefore, home owners are more motivated to deter crime by forming and implementing voluntary crime-prevention programs. In addition, it is easier for home owners to recognize perpetrators in stable neighborhoods because of extensive social ties. Unstable neighborhoods often display social disorganization which can lead to higher levels of crime.

Along with protecting their home and neighborhood from crime, home owners spend more time and money maintaining their home than renters. Neighbors also influence other home owners to improve their property, resulting in a better overall quality of the community.

"Homeownership certainly contributes to positive social outcomes, but those outcomes are truly a result of stable housing communities," said Golder. "With strong social ties and a cohesive community, home owners can enjoy not only the long-term financial benefit of owning a home, but also a more satisfying life - which is what's really at the heart of the American Dream."

Source: NAR

Florida's law specifies certain provisions governing real estate deposits.

A deposit is any money you put forward to affirm your will to pay for something in full. The amount and any restrictions on it are usually determined by the seller of the property in question. In real estate, deposits are generally required--and often non-refundable. Florida's state law sets forth a number of regulations governing real estate deposits.

Earnest Money:
When you make an offer to purchase Florida real estate, you, as the buyer, will include an "earnest money" deposit. This deposit shows the seller that you're serious about the offer to purchase their Florida property.

The amount of earnest money varies based on the type of property being purchased and local market conditions. A typical deposit might be 5-10% of the amount you offer in the purchase contract. The final amount is negotiable and will depend on such things as how long it will take you to close and the number and types of contingencies included in the contract.

The sales contract will dictate who holds the earnest money. Usually the seller's agent will deposit the earnest money in a trust or escrow account until closing. At closing, the earnest money is applied to the total purchase price including closing costs. The trust or escrow account will be managed by an independent third party in most cases, e.g., a title company or real estate attorney who conducts closings. Earnest money deposits cannot be released if a transaction does not reach closing without the express consent of both the Buyer and the Seller.

In the event the sale does not close, the sales contract generally spells out the conditions under which you would forfeit the earnest money. Generally, if the seller meets all the terms of the contract, the seller will keep the earnest money. If the seller does not meet the terms of the contract, then you, as the buyer, receive a total refund of the earnest money. The best advice is to read your sales contract thoroughly and get your questions answered before you complete the offer. If you're not satisfied with the explanation, seek professional legal counsel. A real estate purchase offer is a legally binding contract and you and the seller are bound by its terms and conditions.

Forfeited Deposits:
Section 715.02 places an important regulation on real estate deposits--earnest money and otherwise. Specifically, it states that "no check, draft or other obligation of such prospective purchaser shall be construed to be a deposit if payment of said check, draft or obligation is refused through no fault of the seller." In other words, if you write the seller a bad check, he tries to cash it and it bounces, you haven't technically given him a deposit at all.

Construction:
The state's law also lays down specific rules regarding deposits placed on homes that are being built. Section 715.12 states that you may "withdraw all or any portion of the amount retained from progress payments' made toward the build or, if someone else had previously commissioned the home's construction, the owner."   As your home is still being built, you can think of "progress payments" as a deposit toward its completion.

The law goes on to provide that the seller must pay you any interest earnings earned on your progress payments, if they've been placed in an interest-bearing account, within the first 30 days he receives them.

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.