If your goal is to buy a home for it's resale value and the one you are thinking of buying in the older neighborhood is at the upper end of values for that neighborhood, then it may not be the wisest choice.  If it is similar or lower in price to the others, then there should be no problem, because pricing should be considered in relation to the local neighborhood and not compared to homes in other neighborhoods (for the most part)
Plus, is it a neighborhood on the decline, or are others going to be fixing things up, too, so that it is a neighborhood that is improving?  It could turn out to be a very good deal as long as you don't "overpay" because of the recent improvements.

Remember that you also buy a home for it's value to you as a "home," and that is something else you should consider.  Which neighborhood would you AND your family feel most comfortable in?

Dublin For Sale By Owner, Homes For Sale
 

It's like buying stocks.  How do you really know which ones will increase most in value over the next five years?  As with any investment, there are risks.  
The most often quoted rule is that location is the most important factor. You want to make sure that the house does not back to busy streets and is as close to the interior of the tract as possible.  Avoid corners and intersections.  Choose the middle of the block or a cul de sac. You'll want to be sure it has at least two bathrooms (if you are buying in an older area).

Sometimes it is just timing that works out best for you.  For example, if you buy a home before a major surge in local prices.

Homes For Sale Westerville, Central Ohio For Sale By Owner, Real Estate 
 

Do not buy the car.  Buy the house first.

Debt-to-Income Ratios and Car Payments

You see, when determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and….

…car payments.

How a New Car Payment Reduces Your Purchase Price

For example, suppose you earn $5000 a month and you have a car payment of $400. Using an interest rate of 8.0%, you would qualify for approximately $55,000 less than if you did not have the car payment.

Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender.

However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.

Know Your Credit Worthness
Look at your credit report before you go to a lender. It is not uncommon to find problems with reports, especially if you have a common last name.
To get copies of your credit report, start at My FICO Score.

Get Pre-Approved
After you see your credit report and any problems are cleared up, get pre-approved with a lender. Take the steps necessary to get a letter from the lender stating you are "pre-approved" for a loan in a specific price range. It's important to have this letter before you make a contract offer to buy real estate. Once your pre-approved, you know what price range of homes you should be looking at.

What Kind of House is Right?
Determine the specifics you want or need in a home.
- What are your day to day and future needs?
- Do you enjoy swinging a hammer?
- Older houses have great charm, but may need updating.
- New homes offer the latest energy efficiency and design features.
- Larger lots can give room for additions and swimming pools.
- A fixer upper can dramatically increase in worth.
- A PUD may have private recreational facilities such as a pool and play parks.
- A condo or town-house will relieve you of yard work and exterior maintenance.
Sit down with your real estate agent and make up a wants and needs list. Knowing your price range, your agent can determine in what neighborhoods or towns to start looking. You may find that you are limited to where you look based on your situation.
There is no sense in wasting your or your agent's time in areas out of your price range.

With a list of houses that you can afford to buy, drive-by them and check out the surrounding neighborhood. Next make an appointment with your real estate agent to view the interior of the ones you are interested in.
After you have narrowed your selection to few houses it is important to visit them at different times of the day. Visit them during the morning commute time. If you visit only during the middle of the day, you might not notice if the street in front of the home is used as a minor thoroughfare or a shortcut. This is also a good time to find out how you emerge from you residential area into traffic on a thoroughfare or how long it takes for freeway access. Go back after dark and walk around the block. You might notice that headlights from approaching traffic shine into the home or hear sounds from a nearby night club or park that you were not aware of.

After previewing a number of homes, you will want to preview some a second time.
This is the time to make measurements, ask questions and make a closer self-inspection.
When you want to make an offer, ask your agent for sales comps to arrive at an offering price.
A "seller's market" or "buyer's market" can have big effect on how much to offer. There is no sense in making a low offer on a well priced home in a seller's market.

A properly written contract will allow a buyer a number of outs if certain items are not met or approved. Get a copy of a typical real estate contract prior to making an offer and have your agent go over it with you.

Nothing is certain until the keys are in your hand and the deed is recorded. There are still hurdles to get past before it's yours, and your actions between now and closing can create headaches, slowdowns and even stop the transaction.

1. Don't Make a Major Purchase
You've just found out your credit is A+. That's great news, because a new car would look fantastic in the driveway of your new home. But hang on--if you are depending on a mortgage to move in, you'd best wait until after closing to buy that car.
An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.

If you tack on a higher car payment, the bank might decide you can't afford the home.
Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you must make a major purchase before closing, talk to your loan officer before you do it.

2. Don't Change Jobs Unless It's Necessary
Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the house is yours.

3. Don't Give an Earnest Money Deposit Directly to a For Sale By Owner Seller
Your good faith deposit should go into a trust account. Some for sale by owner sellers don't understand that funds are not their to spend until closing.
I've heard many stories about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund. Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.

4. Don't Let Your Emotions Take Over
Keep a cool head during the entire home buying process, especially during and after a home inspection. Be realistic. No home is perfect, especially older homes. It's not unusual for new owners to take care of some repairs themselves. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love.
On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done--unless you're sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision.

5. Don't Forget to Line Up Your Hazard Insurance
A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Before closing, your lender will want to see an insurance binder showing you have coverage for the new home. Get it as early as possible so that closing isn't delayed.
In some locations, additional types of insurance coverage might be necessary. Talk to your lender about insurance requirements well before the closing date.

6. Don't Become Best Friends with the Seller
I'll get some flack on this one. It's great to be friendly, but don't get into too many long discussions with the sellers, because personality conflicts often cloud judgments.
Remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes--everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you about repairs or other issues that crop up.

7. Don't Ignore Lender Requirements
Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible--moving into your new home depends on it.

Searching for a home on the internet is not only time efficient, but enjoyable--and literally everyone is doing it!  Because the Internet has changed the way people shop for homes, the MLS (Multiple Listing Service utilized by realtors) is no longer the only source to find a home for sale.  You CAN sell your home yourself successfully advertising through Ohio's Fro Sale By Owner  and pay 0% commission!   

Although some companies offer an MLS listing for people selling by owner, you will pay a fee ranging from $399 to $599 to be listed on the MLS -- AND you will be required to pay a 3% commission if a realtor brings you a buyer!  At Ohio's For Sale By Owner, we know that a listing on the MLS is not necessary for a successful sale by owner.  We want to save you money!  Buyers find homes for sale by owner attractive as they know they are getting more home for their money as the price for the home will not be increased to include a commission.  When your selling by owner, you have the power to price competitively and make your home more attractive on the market.  Increasing the sale price of your home to include a commission, whether a 3% MLS listing or a traditional 7% realtor commission, can affect how your home is received on the market, and will put less money in your pocket if sold.

Realtors are welcome to browse our site and will contact you if they have an interested buyer.  When you are selling by owner and not listed on the MLS, you are NOT locked in to paying a 3% commission and have the power to negotiate.  Many realtors are buyers agents working for a buyer who has already agreed to pay them a commission.  If a realtor brings you a buyer and requests a commission because a buyers agent agreement is not in place, when you are selling by owner you can negotiate a lower commission, offer to split commission with the buyer, pay the realtor a finders fee, or request the commision be added to the final price you want for your home to be paid by the buyer who engaged their services.  The bottom line is if a realtor has worked hard with a buyer to find them a home and they have chosen your by-owner home, it is only fair the realtor be paid, but selling by owner gives you choices.

If you need assistance when negotiating a purchase agreement we recommend enlisting the services of an attorney.  The fee you pay an attorney will be very small compared to the money you can ultimately save in negotiating the right price and terms of sale for your home. 

The successful formula for selling by owner is
Price + Advertising = Sold! 

The following formula will tell you how your home is doing on the market, and indicate what if any changes you need to make:

The number of visitors to your website... 
+ the number of flyers moving from your brochure box
+ the number of calls you receive
+ the number of showings you book
+ buyer comments you hear 
= how your home is being received on the market!

Remember:  Price + Advertising = Sold!
Listen to what the market is telling you and adjust your strategy as necessary for success

Kitchen Clutter

The kitchen is a good place to start removing clutter, because it is an easy place to start.

First, get everything off the counters. Everything. Even the toaster. Put the toaster in a cabinet and take it out when you use it. Find a place where you can store everything in cabinets and drawers. Of course, you may notice that you do not have cabinet space to put everything. Clean them out. The dishes, pots and pans that rarely get used? Put them in a box and put that box in storage.

You see, homebuyers will open all your cabinets and drawers, especially in the kitchen. They want to be sure there is enough room for their "stuff." If your kitchen cabinets, pantries, and drawers look jammed full, it sends a negative message to the buyer and does not promote an image of plentiful storage space. The best way to do that is to have as much "empty space" as possible.

For that reason, if you have a "junk drawer," get rid of the junk. If you have a rarely used crock pot, put it in storage. Do this with every cabinet and drawer. Create open space.

If you have a large amount of foodstuffs crammed into the shelves or pantry, begin using them – especially canned goods. Canned goods are heavy and you don’t want to be lugging them to a new house, anyway – or paying a mover to do so. Let what you have on the shelves determine your menus and use up as much as you can.

Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible, removing all extra cleaning supplies. You should scrub the area down as well, and determine if there are any tell-tale signs of water leaks that may cause a homebuyer to hesitate in buying your home.
 
 Closet Clutter

Closets are great for accumulating clutter, though you may not think of it as clutter. We are talking about extra clothes and shoes – things you rarely wear but cannot bear to be without. Do without these items for a couple of months by putting them in a box, because these items can make your closets look "crammed full." Sometimes there are shoeboxes full of "stuff" or other accumulated personal items, too.

Furniture Clutter

Many people have too much furniture in certain rooms – not too much for your own personal living needs – but too much to give the illusion of space that a homebuyer would like to see. You may want to tour some builders’ models to see how they place furniture in the model homes. Observe how they place furniture in the models so you get some ideas on what to remove and what to leave in your house.

Storage Area Clutter

Basements, garages, attics, and sheds accumulate not only clutter, but junk. These areas should be as empty as possible so that buyers can imagine what they would do with the space. Remove anything that is not essential and take it to the storage area.

Or have a garage sale!

 AVOID THE OVERPRICE MISTAKE! For sale by owner sellers often price their homes too high to start with, thinking "I will price it high and I can always lower the price later if necessary." This is a drastic mistake! Always try to price your property competitively in the beginning. If you overprice initially you will probably lose out more in the long run. Many who overprice their home for the start might be offered thousands of dollars less when it is finally sold. You have a better chance to earn more on your home if you price it competitive from the beginning. The reasons are simple.

1. A property will not sell QUICKLY if it is not offered at a competitive price.

2. Buyers will usually walk away from an overpriced home without making an offer.

3. After being on the market for a prolonged period of time due to overpricing, the overpriced property becomes “too long on the market” to home shoppers.

4. New prospects know how long a property has been offered for sale and, if more than a month or so, they may assume something is wrong with the property.

5. Finally, buyers at this late date, knowing how long a property has been for sale, assume the seller must be desperate and will almost always make very low offers.

Remember that most buyers are usually "market smart." They have already shopped around and THEY KNOW if your property is priced fairly and competitively. Don’t kid yourself, by "knowing how much your home is worth". Buyers WILL bypass your home and go on to find more fairly priced home. Buyers are more likely to make a reasonable offer on a fairly priced home and are likely to make NO offer on an overpriced home. Did you see that last point? Don't make the mistake of overpricing with the thinking that it will land you the best offer. More often than not, NO offer is given when a home is overpriced.

Carpet and Flooring

Unless your carpet appears old and worn, or it is definitely an outdated style or color, you probably should do nothing more than hire a good carpet cleaner. If you do choose to replace it, do so with something inexpensive in a fairly neutral color.

Repair or replace broken floor tiles, but do not spend a lot of money on anything. Remember, you are not fixing up the place for yourself. You want to move. Your goal is simply to have few negative impressions upon those who may want to purchase your property.

Windows and Doors

Check all of your windows to make sure they open and close easily. If not, a spray of WD40 often helps. Make sure there are no cracked or broken windowpanes. If there are, replace them before you begin showing your home.

Do the same things with the doors – make sure they open and close properly, without creaking. If they do, a shot of WD40 on the hinges usually makes the creak go away. Be sure the doorknobs turn easily, and that they are cleaned and polished to look sharp. As buyers go from room to room, someone opens each door and you want to do everything necessary to create a positive impression.

Odor Control

For those who smoke, you might want to minimize smoking indoors while trying to sell your home. Actually, it is best to move smoking outside.  You could also purchase an ozone spray that helps to remove odors without creating a masking odor.

Apologies to pet owners, but pets come with odors.  You may have become used to them, but they are immediately noticeable to those with more finely tuned olfactory senses.

For those with cats, be sure to empty kitty litter boxes daily and use plenty of baking soda.  For dog owners, keep the dog outdoors as much as possible, even those adorable lovable little dogs. You might also try sprinkling carpet freshener on the carpet on a periodic basis.

Costs of Repairs

Do not do anything expensive, such as remodeling. If possible, use savings to pay for any repairs and improvements – do not go charging up credit cards or obtaining new loans. Remember that part of selling a house is also preparing to buy your next home. You do not want to do anything that will affect your credit scores or hurt your ability to qualify for your next mortgage.

Plumbing and Fixtures

When looking at a house, prospective home buyers often do not really know what to do.  So they play with things.  They flick light switches.  They open everything with a handle.  They turn on all the faucets and flush all the toilets.  Having nice shiny fixtures makes an impression.

All your sink fixtures should look shiny and new. If this cannot be accomplished by cleaning, buy new ones.  If you don’t buy something fancy, this can be accomplished inexpensively.  Make sure all the hot and cold water knobs are easy to turn and that the faucets do not leak. If they do, replace the washers.

It sounds like hard work, but it's pretty easy -- even for the inexperienced.

Check to make sure you have good water pressure and that there are no stains on any of the porcelain. If you have a difficult stain to remove, one trick is to hire a cleaning crew to go through and clean your home on a one-time basis. They seem to be wonderful at making stains go away.
 

Ceilings, Walls and Painting

Check all the ceilings for water stains, whether the leak is caused by plumbing or a faulty roof.  Find the leak and repair it and make sure a proper job is done.  Nothing irritates a buyer more than finding out - after the fact - about plumbing or roofing leaks.  They will be talking about calling a lawyer faster than your car engine starts when you turn the ignition key.

If a water stain is left after something you have already repaired, do the cosmetic work necessary to improve the desirability of your home.  That means painting.

You may have to paint anyway, especially if dirt has accumulated in spots or you have an outdated color scheme.  Painting makes a home look fresh and new on the inside and never fails to impress.

Painting can be your best investment when selling your home. It is not a very expensive operation and often you can do it yourself. Do not choose colors based on your own preferences, but based on what would appeal to the widest possible number of buyers. You should almost always choose an off-white color because white helps your rooms appear bright and spacious.