"TEST DRIVE" A NEIGHBORHOOD BEFORE YOU BUY.

Here is a novel suggestion worth considering.  Just like before you purchase a new car you take it out for a "test drive"; try the same with a neighborhood you would like to live in.

Tim Mullen, a sales associate with Kinoko in San Francisco's luxury market, recently offered some suggestion in a recent realtor.com article.

1. Book an Airbnb or other short-term rental.  Mullen suggest you aim for at least a three-day trip over a Thursday - Sunday.  This will give you a chance to take in the neighborhood on both a weekday and weekend.

2.Check real-time crime updates in the area.  There are several apps you can use which check crowd sources crime reports.

3. Do a run-through of the commute.  Mullen recommends you become familiar with the routes you would use to travel to and from work and home.  Also become aware of the most convenient roads to accommodate routine shopping or other regular errands.

4. Visit local event and weekend festivities.  Your goal is to get a feel for the neighborhood; get a sense of the ambiance and demographics of the local cultural and social scene.

Powerful suggestions for those who are looking to relocate to a new neighborhood that is across town or across country.  Remember your home is a significant investment and you are investing in the "new neighborhood" you will call home.

ARE YOU WORKING WITH YOUR REAL ESTATE AGENT?

You have engaged a super real estate agent.  You know the characteristics you want and need; but have you thought about what your agent wants and need from you?

To help you be the best here are some rules for how to work with your real estate agent.

1. Pick your battles. Price should never be one of them.  Obviously, as a seller, you want to place a high price tag on your abode.  Your price is driven by the emotional attachment you have to the house.  Your agent's responsibility is to guide you to a price closely in line with the house's current market value. The goal is for the price to be compelling; one that is not too high or too low.  According to the National Association of Realtors, pricing a home 10 percent under market value attracts 75 percent of available buyers.

2. See your agent as an expert.  The listing agent's job is to help buyers emotionally connect with your home.  To create that emotional connection, remember, it is all about the first impression.  You may have the right price, the right school district, the right square footage to get potential buyers through the door; yet, it is the visual appeal of your home that will subconsciously motivate them to buy.  Your agent's job is to help you see your home through the eyes of potential buyers and create the home that sells. It is your job to spend the time and money on projects that will cause buyers to buy your home.

3. Be careful what you search for.  According to the National Association of Realtor's profile of home buyers and sellers, approximately 90% of home buyers search on line during the home buying process.  And so are home sellers.  Your listing agent will most certainly discourage you from obsessing over real estate sites and sites that estimate the value of your home.  Why?  Because those sites' estimates are often wrong.

4. Express your expectations.  Remember, first and foremost, your real estate agent is not a mind reader.  There is no such thing as a dumb question.  If you don't understand or finding it difficult to follow the jargon or having difficulty filling out documents - ask for assistance.  Your agent will outline their communication plan with you and will do what they need to do to make you happy, informed and satisfied during the process. 

5. Have a reasonable timeline.  Dare I say, "Rome was not built in a day". Even if your home is priced to sell, it can take some time to find the right buyer, negotiate the sale price, and complete closing documents and inspections.  There may also be attorneys to deal with and documents to sign.  It is a process and the process works when all the pieces are in their proper place.  This may bum you out, but be patient and learn from the experience.

HOME APPRAISAL: WHAT DOES IT MEAN?

Congratulations! You want to sell your house and want to obtain top dollar for it.  Or, you are a buyer and want to be sure you are paying a fair market value for a home.  The common answer to ensure that both parties are getting what they want for a particular property you will need a Home Appraisal.

By definition an appraisal is "an opinion of value".  A professionally licensed or certified appraiser will make calculations to determine a value for a home.  The appraiser will look at comparable properties that have sold in your area and use a formula to arrive at a property value.

The most common reason for an appraisal is when someone buys or refinances a home.  Lenders use an appraisal to make sure they are not over lending on a property and helps protect buyers from over paying for a home.

Counties also perform house appraisals in an effort to calculate property taxes.  These appraisals are usually done with less attention to detail than a lender would require.  The appraisal amount is used to determine property taxes.

A licensed or certified appraiser is specially trained to conduct this valuation.  They will examine houses that have sold and use statistical data such as square footage of home, lot size, condition of home and amenities, among other considerations.  Appraisers are taught mathematical formulas that are used to come up with a house value.

"Market value" or "Comparative market analysis" are two ways to estimate home value using the prices of what similar homes actually sold for, but remember only a licensed appraiser can give an actual appraisal.

HOW DO I KNOW IF I NEED FLOOD INSURANCE?

How do I know if I need flood insurance?  Not one of the things you normally put on your checklist for a property you are interested in buying, but one that should be prowling around in the back of your mind.  

The National Flood Insurance Program indicates that more than 20% of claims made on flood insurance are from properties classified as "low risk". 

Here are a few things to know that could save you thousands of dollars in unanticipated flood insurance premiums.

1. The Federal Emergency Management Agency (FEMA) has created a flood plain map of all the properties in the United States.  When looking to purchase a property you will want to ask what "zone" your potential purchase has been designated.  "Zone A" or "Zone B" means that the property lies in an area prone to flooding.

2. Check with your local county property assessor's office and request to view the official list of parcels that fall in the "Zone A" or "Zone B" flood risk category.  Any property listed as a high-flood risk requires the owner to purchase flood insurance. 

3. Walk your potential property to determine if water run off could flow onto the property during a storm.  Homes located on hillsides could also be prone to landslides or mudslides in the event of a severe storm as water cascades downhill.

4. Ask for an "elevation certificate" for the property.  Is the property situated above a predetermined grade that will provide you protection from flood waters?  

5. Check with neighbors to the property you are interested in for information pertaining to flood history.  

6.  Check with your insurance provider who issues your basic homeowner policy.  Ask the agent to visit the home in person to help you assess the need for coverage and the amount of coverage and type you will need, i.e., flood insurance.

Asking a few questions in the beginning may save you thousands of dollars and untold heartache.  Being proactive is your first line in protecting your family from the destruction associated with flooding.