You Know You Have Found the Right House If:

Buying a house is one of the biggest decisions you will make in your lifetime.  Therefore, it is no surprise that some people spend months and for some people years, searching for the “right” home.   So exactly how do you know if you have found the “right” home for you and your family?  Let’s look at some of the things you will be doing that will be a pretty good indication that you have found the right home.

1.  You will stop looking at other homes and want to see the “right” home over and over again.

2.  You actually like the kitchen and bathroom.  Most people who are looking for a new home don’t like the kitchen and the bathroom.  These areas are very personal and the first thing buyers do is talk about what they don’t like about the kitchen and bathroom.

3.  You start to picture you and your family living in the home.  You think about it all the time and you can’t think about anything else.  You start placing your furniture, you picture yourself entertaining or relaxing in the back yard.

4.  You find yourself making multiple trips to the home improvement stores to pick out carpet, tile, paint samples etc.

5.  You start thinking about getting estimates for remodeling and how you can personalize the house

6.  You begin to get possessive about the house.  You find that you want it immediately and want to know how soon you can move in.  You find yourself getting a bit angry if someone else is looking at the house because you are already viewing it as yours.

7.  You start justifying anything that is wrong with the house.  If you find yourself justifying the flaws that would normally be unacceptable to you or would be deal breakers such as the noise from the nearby airport or the hoarder neighbor next door or when the pros replace the cons, then you have probably found the “right” home.

8.  You start looking for all of your favorite hot spots, grocery stores and restaurants nearby and don’t care if you have to drive a little further to get to them.

9.  You can’t wait to show all of your friends and family.

10. You don’t care about trying to get a lower price for the house.  You want this house now and you want it no matter what!

If you are exhibiting any of the above behaviors, then you have probably found the right house for you and your family.  Tell your realtor exactly what you are looking for in your new home and they will supply you with a list of potential homes to consider.  Your realtor knows the market and knows it well and will be more than happy to help you find your perfect home!

Thinking of buying a home-Start saving now!

By Kira BrechtMarch 24, 2015 | 9:29 a.m. EDT+ More

They say your home is your castle. If you've been renting your castle and dreaming of owning a home, you aren't alone. Homeownership rates have tumbled to a 20-year low – 63.9 percent in the wake of the Great Recession – as financial issues including unemployment, underemployment, student loan debt and tight credit conditions have weighed on potential homebuyers.

There are signs that may be changing, however. People 34 and younger are the largest group of homebuyers, according to a recent National Association of Realtors study that looked at 6,572 responses from a survey of homebuyers in 2014. Millennials represented 32 percent of all recent buyers, while Generation X, including those ages 35 to 49, accounted for 27 percent. The median age of millennial homebuyers was 29, their median income was $76,900 and they typically bought a 1,720-square foot home costing $189,900, according to the NAR.

"The No. 1 reason they want to buy is just to own a home of their own," says Jessica Lautz, director of survey research and communications at the National Association of Realtors.

If you'd like to trade in your rental for a place to call your own, here are the steps you need to take.

Start saving now. It takes time to build up enough savings for a down payment. "Among first-time buyers, 28 percent save for six months or less, while 13 percent save for more than five years," Lautz says

The typical down payment for a home is generally 20 percent, but there are a variety of programs that can open the door to homeownership with as little as 3 percent or even no money down.

First-time homebuyers with low to moderate income levels may be able to qualify for a MyCommunity mortgage product through Fannie Mae with a 3 percent down payment. "Community mortgage products are better than [Federal Housing Administration] loans because the mortgage insurance is much less expensive and the down payment requirement is lower," explains Gina Pogol, consumer finance editor at Charlotte, North Carolina-based LendingTree.

The FHA backs several kinds of mortgage programs. "The 203(b) is the most commonly used. It’s used to purchase or refinance homes with 3.5 percent down, as long as they have a credit score of 580 or higher and qualify for financing," Pogol says. However, she adds, "The average score of borrowers who actually get approved is closer to 700. Another FHA program is the 203(k), which can be used to buy or refinance property that needs to be built or rehabbed."

Start saving by setting up a special savings account and automatically transferring a set amount into it each month. Deposit any bonuses or gifts into this account as well. How long it will take to reach your down payment goal depends on the amount you need and how much you are able to sock away each month. "For someone buying a $200,000 property with 3 percent down, saving $500 a month, it will take a year. And there are still closing costs to deal with," Pogol says.

Consider alternative down payment sources. There are other options in addition to your personal savings, which include gifts from relatives or friends or a withdrawal from your individual retirement account for a first home purchase. If you are lucky enough to have a generous relative or friend willing to gift funds for your down payment, you are required to furnish an official letter documenting that for your lender.

Zev Fried, a senior financial planner at Los Angeles-based JSF Financial LLC, warns against tapping your retirement funds for a down payment, however. "From a planning perspective, pulling from a retirement account for a down payment is often the worst option. A retirement account is for retirement, and should only be tapped for dire emergencies, as there are usually penalties and taxes when one withdraws money from these accounts," Fried says.

Minimize payment shock. Consider how much you can actually afford, starting by looking at what you are paying in rent. If you are looking to buy more house than your current rent payment, Pogol recommends potential homebuyers "test drive" the higher monthly payment.

"If their current rent is $1,000 a month and they want to buy a home with monthly principal, interest, taxes and insurance – called a 'PITI' payment – for $1,400 a month, I’d recommend that they put $400 a month into savings and see how hard or easy that is," Pogol says.

Understand inventory conditions. Once you start shopping for a home, understand that current tight levels of inventory, or the number of houses on the market, could require patience and compromise.

"We are now seeing inventory is the top reason slowing down and stopping potential buyers. Among recent homebuyers, from the 2014 Profile of Homebuyers and Sellers, the hardest task in the homebuying process is just finding the right home," Lautz says. "Most first-time buyers have to compromise on some aspect of their wish list. Seventy-five percent of recent first-time buyers had to compromise on at least one wish-list item, most commonly the size and price of the home."

Although the path to homeownership can take some time, there are financial benefits, including the mortgage-interest deduction on your income taxes. However, the intangible benefits often outweigh economic factors. Soon you may be spending weekends fixing up your castle and turning it into your dream home.  

Who Pays The Realtor?

Most home buyers and sellers work with a real estate agent, and the agent charges a commission. How much is the commission, and who pays it? The answer in both cases is: It’s negotiable. You’ll set the terms in the sale contract.

Often the buyer and the seller each have their own agent, and the commission is split down the middle between the two agents. (Read more about the types of real estate representation.)

Two important points about commissions:

1. Commissions come out of the sale proceeds. The fees aren’t added to the home’s purchase price. So, if a house sells for $200,000 and the commission is 5 percent ($10,000), the net proceeds (barring other closing costs) are $190,000.

Usually the seller pays the commission, unless buyer and seller negotiate a split or agree to the buyer assuming the full amount. The seller should factor the commission into the asking price.

2. Commissions are paid to brokers, not directly to agents. Every agent must work for a broker; they can’t act independently and are not paid directly. If the transaction includes both a buyer’s agent and a seller’s agent, each will be paid by their respective brokerage.

Brokers set the commission they charge for houses sold through their brokerage. Traditionally, the commission is 5-8 percent of the sales price, but again, that amount is negotiable.

Brokers keep a portion of that fee. The agent’s share, called the commission split, could be as low as 30 percent of the commission for new agents or as much as 75 percent (or more) for veteran or highly successful agents.

The Seller’s Agent’s Commission
Generally, brokerages demand the exclusive right to sell a house for a certain number of months. During that period, the contract usually states that the seller’s broker (also known as the listing broker) will receive the full commission if a contract for the sale of the house is signed, regardless of the circumstances of the sale. The justification for this is that the listing agent’s brokerage spends time and money advertising, listing the property, preparing the house for showing and otherwise promoting the sale.

The Buyer’s Agent’s Commission
The buyer’s agent (also known as the selling agent) works with home seekers. Common practice is that the seller’s broker shares the commission with the buyer’s broker, but it’s not always an equal split. For example, a seller might agree to pay 7 percent total commission, to be divided as 4 percent to the listing broker and 3 percent to the selling broker. There are no rules on the split. If the same brokerage represents both buyer and seller, that brokerage receives the full commission, and the buyer’s and seller’s agents will get a cut according to their agreement with the broker.

An Example of Real Estate Agent Commissions
Home owners ask agent Rick of Superlist Brokerage to sell their house for $200,000. They agree on a 7 percent commission.

Shelly, a buyer’s agent at Bigbuy Brokerage, brings his clients to see the house. They purchase it for the asking price.

The total commission will be $14,000, taken out of the sales price at the closing. So, the net proceeds from the sale are $186,000. The brokerages have agreed to divide the commission, $7,000 each.

Rick, a highly successful agent for Superlist, receives 75 percent of the brokerage’s $7,000 commission, or $5,250. Shelly, a beginning agent, receives 30 percent of Bigbuy’s $7,000 commission, or $2,100.

Moshe Pollock wrote this article.