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It used to be that everyone had to have a traditional house in a community with a yard and perhaps a fence. It was the norm. Though many Americans still tend to think this way today, there are more and more people who are looking into alternative housing. The credit crunch and the real estate problems that have been bugging Americans in the past year is largely to blame for this. Yet if you think about it, these alternative housing solutions could be much better than what we are used to.

One perfectly suitable housing solution is to go RVing. Take the example of Howard and Linda Payne. MSN writes about them:

In May 2005, Howard and Linda Payne turned 39, sold their four-bedroom colonial, quit their jobs and moved into a fifth wheel. If you’re not familiar with this style of RV housing, it’s like a trailer with a big hitch that rides in a full-size truck bed. Linda Payne preferred it over other recreational vehicles because she says its design is more homelike and spacious. The nicest ones come with a bedroom big enough for a king-size bed, a living room, a generous-size bath, a kitchen with a dishwasher, and a washer and dryer.

The Paynes used the money they got from selling their house to buy a brand-new rig with these amenities. A lot of people might not want to take that route, Howard Payne says. “It’s a choker for some people to sell a home and buy a depreciating asset.”

Fifth wheels don’t have motors to go bad and, therefore, don’t depreciate as quickly as other RVs. Howard Payne says that factored into his thinking when they selected their RV.

Imagine the financial convenience – no mortgages, no rent, etc. How much do the Paynes need to live in a year? Around $36,000. Not bad, eh?

Photo courtesy of escalade328s

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We took a look at some important questions that you need to ask a home inspector before taking him on. They were from the web site of the U.S. Department of Housing and Urban Development. Here are several more that can be of help.

1. Do you offer to do repairs or improvements based on the inspection?
Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

2. How long will the inspection take?
The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

3. How much will it cost?
Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.

4. What type of inspection report do you provide and how long will it take to receive the report?
Ask to see samples and determine whether or not you can understand the inspector’s reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.

5. Will I be able to attend the inspection?
This is a valuable educational opportunity, and an inspector’s refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

I hope that asking these questions can help you in case you need to interview prospective home inspectors. Good luck!

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We have been talking about hiring home inspectors and how to find a good one in the past couple of posts. Let us get down to the nitty gritty this time and look at some questions that are vital to hiring a home inspector. This list actually comes from the U.S. Department of Housing and Urban Development.

1. What does your inspection cover?
The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?
The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?
Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.

More to come in the next post.

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Finding a reputable and trustworthy home inspector can prove to be quite a task for the uninitiated. Though there are a lot of home inspectors to choose from in most any area, the trick is in finding someone who can get the job done without ripping you off. In the previous post, we took a look at two important qualifications of a home inspector – his certification and his professional affiliation. Let us look at a few more.

Think about going polygamous.
Now I am not talking about marrying another person here. What I mean is that you should consider looking for a home inspector that is NOT associated with your real estate agent. That is, unless you can entrust your life to your real estate agent. Sometimes, human nature just can’t help it. Your real estate agent just MIGHT have a conflict of interest so to be on the safe side, look for recommendations from other people.

Don’t be afraid to ask questions.
My suggestion is that you list down pertinent questions before you go shopping around for a home inspector. This way, you will be sure of what you want to know and what you want to ask during the interview. You should be the one looking for hesitation and uncertainty on the part of the home inspector. You should give off the aura that you know what you are talking about and that you will not stand wool being pulled over your eyes.

Photo courtesy of patty_mitchell

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A home inspector plays a crucial role when it comes to buying your dream home. Though some of us might not want to admit it, we might not be the best judges when it comes to how solid a house is. That is why need professionals like home inspectors to check these things for us.

Then again, how would you know if a home inspector is to be trusted? Or even if a home inspector is really qualified? Here are some good tips that can help you choose the right home inspector.

Don’t settle for a mere state license or certification.
It is true that good home inspectors need a state license or a certification. However, in many cases, these licenses and certifications may only require the bare minimum when it comes to training. Therefore, you cannot really assume that the inspector is qualified enough, which brings us to the second tip.

Ask for the inspector’s professional inspection organization.
This next tip can help you find a worthy inspector BUT it does not guarantee anything, really. There are still organizations out there that would accept members without really looking into their background and qualifications. As such, your best bet would be to look into the organizations first. There are plenty of professional organizations in existence today. That is why it would be a good idea to look at some of the more reputable ones and then look at their list of home inspectors that offer their services in your area.

(to be continued)

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Which cities are the best when it comes to buying homes? I am sure that every American would have his own answer to this question. Yet do we have information as to which cities really are ideal for housing? More so, in this day of mortgage problems and increasing prices, is there still such a thing?

The people over at Forbes.com think so. In fact, they have come up with the list of 10 cities which are the best places to buy a home right now. And they are:

10. Atlanta, Georgia
Reason: Available jobs and a reasonable cost of living. As such, it is safe to take out a mortgage in the long run.

9. Jacksonville, Florida
Reason: Increasing population, abundant sunshine, fresh air, and clean water.

8. San Francisco, California
Reason: Despite the fact that it could be quite pricey to live here, the culture and way of life could be quite attractive to some people. This place is perfect for urban young professionals.

7. Charlotte, North Carolina
Reason: This is the second largest banking city in the country. It also offers a lot of cultural attractions and has a relatively high vacancy rate. This means houses are waiting to be snatched up.

6. Dallas, Texas
Reason: Urban setting or the suburbs – you can take your pick. The median price for houses is relatively low at $150,000, which means that more people can afford to buy houses. More so, their vacancy rate at present is 2.5%, giving people more choices.

(to be continued)

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For those homeowners who are feeling the crunch of the economic times, the government has done something to help alleviate the pressure. Early this morning, it was reported that President Bush signed a bill that is aimed to provide relief for homeowners and the biggest mortgage groups in the country, Fannie Mae and Freddie Mac.

ABC News reports:

The Housing and Economic Recovery Act of 2008 will allow a limited number of homeowners who can’t afford their mortgage payments to refinance with government-backed loans. As many as 400-thousand families become eligible for help refinancing expensive mortgages. This will not help homeowners who have already been hit with foreclosure. The measure will also give the Bush administration new authority to control Fannie Mae and Freddie Mac.

“We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac,” White House spokesman Tony Fratto said. “The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes.”

The whole idea is quite attractive, especially for those homeowners who are saddled with hefty mortgage payments. However, as the excerpt above states, those who have already had their homes foreclosed will not be affected by the bill. More so, the bill cannot encompass every single American family who has a mortgage. The figure that has been thrown around is 400,000. I am quite sure that the figure of families struggling with mortgage could easily be double this number. What about them?

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The credit crunch and the general state of the economy are making things hard for many people these days. Homeowners may not have to pay their rent but they do have mortgages to worry about – among other expenses. Perhaps that is one of the reasons why the queen of talk shows has created a challenge for families all over the United States. Called Your Family’s “Live with Less” Challenge, it is aimed to help wasteful families to re-evaluate their lifestyle and, hopefully, make some changes for the better.

Here is an excerpt of Oprah’s letter, which she presents to the participating families at the beginning of the challenge.

For one week, you’re going to give up the bottled water habit. Get a water filter—time to get to know your tap.

No more disposable plates, cups, napkins or paper towels. Try cloth—you might like it!

For entertainment, you’ll have to rely on each other. For one week, I’m asking you to give up your iPods and video games, and your computers only get turned on for homework. TV is limited to one hour per night—one TV only.

That thermostat is going way down…to 69 degrees. If you get cold, put on a sweater.

Give your washing machine a break—try to wash only clothes that are TRULY dirty.

When you leave a room, lights out. Ditto for fans. When you’re done using an appliance, unplug it. Don’t forget your computer and cell phone chargers too.

I think that though we may not all be able to participate “officially” in the challenge, we may very well learn lessons from it. Why not take a step back and re-evaluate your own lifestyle?

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Every year, I see these articles about the most expensive places to live in. I do not know why I feel the need to read more about this topic. Do I want to know if I live in one of the most expensive places? Do I want to know which places are expensive so I wouldn’t even consider buying a house there? I don’t really know but these articles sure make for an interesting read.

This week, I read an article at Yahoo, detailing some of the most expensive cities in the country today. Unsurprisingly, New York City is at the top of the list. How much do you pay for rent in The Big Apple? A whopping $4,500 a month for a 2-bedroom luxury apartment. Oh, and that does not come with any furniture, mind you.

Next on the list is another “unsurprise” – Los Angeles. Though rent and other costs are to blame for the label, one other reason for the high cost of living in this city is the commute that many residents have to go through. Add to this the ever increasing price of gas and you will understand why it is number 2.

So how did they determine which cities got into the list? The Yahoo article states:

To determine the U.S. cities where the cost of living is highest, the London office of Mercer, an American human resources consulting company, measured the prices of the same basket of goods in 253 of the world’s cities. The basket is composed of over 200 products, representative of executive spending patterns and including everything from rent for a luxury apartment to the cost of a fast-food hamburger.

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In the previous post, we looked at how bank web sites and government agency web sites can be your main sources of information on foreclosed homes that are for sale. Are there any other options open to you if you are in the market for a new home? The answer is a resounding YES. Aside from these web sites, you can also do the following.

Real estate signs
This option requires more physical activity on your part. As opposed to the options presented in the previous post (where you just have to turn your PC on and browse), you have to drive around the neighborhood wherein you want to buy your home. When you drive around, look for FOR SALE signs and pay particular attention to the information on them. Look for signs that say FORECLOSURE and then contact the real estate agent on the sign.

Real estate agents
If you do not have time to go running around neighborhoods, then you might as well get in touch with a real estate agent. After all, this is their business and they will have top information on property for sale. You just have to indicate that what you are looking for are foreclosed homes which present a good deal.

Asset management companies
You can also contact asset management companies in your area to inquire about foreclosed homes. Oftentimes, banks or lenders hire these companies to handle foreclosures. As such, they will have information of foreclosed homes that you can buy. You can do this by looking at their web sites or even calling them on the phone.

Photo courtesy of sfadden

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