in the Realtor-Buzz Network

The rule that ranks the highest when buying a home is “location”. There is a lot of data available on the Internet. One can simply search PlotOrNot or Trulia and investigate the property in question in the comfort of your living room. The data available is a good guideline, but can not tell you everything you need to know about a neighborhood.

Neighborhoods can experience rapid change for reasons such as distressed properties. There are neighborhoods that have weakened and you will not pick it up on the data. The new information takes time before it reflects on the data systems. There is a good chance that you can miss the newly updated data. The data sources do not inform you about everything concerning the area where you plan on buying a home. Even though the neighborhood seems well established, there is information not displayed on the Internet.

A local resident from the area in question is the best source of information. A person who can tell you about:  the drug dealing that increased in the specific area; if the wind blows in a certain direction the bad smell that comes along with it from the dumping site; the sewerage nearby and regular events in the area that attract thousands of people that causes bumper to bumper traffic at awkward times.

Another good source of information is your Real Estate Agent who is knowledgeable about the neighborhood and who specializes in the specific area. Make an appointment with your agent and ask him/her everything you need to know. Your agent can provide you with market trends and all crime related information.

You can not replace a good Real Estate Agent and a local resident with data obtainable from the Internet. These two resources can allow you to make an educated decision.

With the current economy a lot of potential home buyers are looking at the prospects of finding the cheapest place to live. The east and west coast areas are more expensive considering living costs and home prices. The most affordable and even cheap areas to live in can be found in the mid-western states. The mid-west areas are beautiful and rich in culture. The cheapest cities in the United States can be places like Nebraska, Michigan, Detroit, Houston, Indianapolis, Cincinnati, Ohio, Minnesota, Cleveland, Oklahoma and St. Paul. These are just some of the cheapest places to live.

In most of these cities an average mortgage can vary from $150,000 and more. The rental properties range from $400 and up for a standard apartment of two bedrooms. It is true that the average salaries here are not as high as in other parts of the country, but living costs in the mid-west are far lower.  As Forbes writer Francesca Levy points out: “Just because you can get by on the cheap doesn’t mean these places are backwaters.” One can add that some of the most expensive cities in the world are not necessarily the best places to live in.

“Cheapest Places to Live “top ten list offers some great places to live in. Nashville, Tennessee is listed in the 5^th place. Most Americans consider Nashville as a great place to live in and even to stay there for a holiday. This music city is certainly a top spot for American culture and entertainment. Austin, Texas in 10th place is a popular place to live in. Austin has become one of the nations leading hot spots for the high-tech industry so not only is the cost of living low – the job prospects are great and getting better every day.

To find a “cheaper” place is ideal for retirement, first time homebuyers, anyone who has a tight budget or who wants to live financially more comfortable on an average income.

To all my clients, friends and family: I wish you a happy and prosperous 2012!

Understanding the basics of Real Estate:

To buy your first home can be difficult. The decisions that need to be taken regarding the financing of the property are hard to understand at first. Most people gain their knowledge and experience about real estate when they buy their first home. Once you get to understand the basics of real estate you will be comfortable in making decisions.

• For the seller to see that you are a serious buyer, you must first get pre approved. This will give you an advantage over other interested buyers who did not bother to get pre approved. To start negotiating with the sellers is pointless if you cannot get pre approved in the first place. You will earn much more trust from the seller if you paperwork is in order.
• Know your financial limits before you buy a home. You should have a clear understanding of your budget and what you can afford to pay towards your mortgage.
• Avoid paying pre payment penalties. This occurs when you sell your home after you purchased it, but before the due date of the mortgage balance. There are loans which have pre payment penalties. Turn it down and start looking for another loan.

Shop around for private mortgage insurance, fixed interest rate and special loan programs. Gather as much information as possible. Spend time to understand how much you can spend on your mortgage on a monthly basis. If you take good care of your money you will be able to figure this out. Most importantly, do not hesitate to get information from trained Real Estate Agents and who can explain this process to you. Once you understand the basics of real estate you will enjoy the process of buying your first home a lot more.