A Step-By-Step Guide to Buying a Home on the Web
When Steven Payne, a software engineer in Atlanta, GA, got a job offer in Destin, Florida, he and his wife Laura didn't call a real estate agent to help them find a new home. They went online.
With two young daughters, they made their first priority, finding a safe community that had good schools. They also wanted an affordable place in a small-town setting that was reasonably close to Steve's new job--and of course, not far from the beach. The couple wound their way through the virtual world of property listings, mortgage calculators, and loan agencies. And amid the flood of information traveling at 56 kbps into their home, they found details about a community that their own parents would have searched for in a much less modern time.
"At sites like destinrealestate.com, eimers.com and destin.com we found all the specific regional information we were looking for," says Laura. "At one point, we came across the mission statement for the Destin School District and thought, 'That's someplace we could live.'" After several fact-finding trips to the Florida Panhandle, the Paynes settled in Destin, and they've never looked back.
The Paynes approach to home buying is becoming more and more common. Nearly 6 million visits are made to the National Association of Realtors' Web site, Realtor.com, each month, and an estimated 30 percent of all home buyers use the site at some point during their home search, says Stuart Wolff, chair and CEO of RealSelect, the company that runs Realtor.com.
The online approach makes sense. In the early stages of home buying, using resources on the Web can save you time, money, and even your sanity. You can pore over home listings at your own pace, and then tell your agent which properties you want to see. You can search for your loan online and, if you decide to buy it there, pick up a new DVD-ROM player with the money you'll save in broker's fees. Furthermore, you can examine crime statistics, school rankings, and other community information that will help you narrow your search.
But Beware: Hundreds of real estate sites are out there, many of which are poorly designed or have such limited information that they aren't worth the download time. We went online in search of the best sites to help you find your bearings in what can be an overwhelming process. I'll step you through the various stages of home shopping on the Web--from learning what to expect and prequalifying for a loan to casing neighborhoods, finding an agent, and homing in on the right house for you.
Get up to Speed
Buying a house is notoriously complicated. If you're thinking of taking the plunge, you should start by finding out as much as you possibly can about the process. And even if you've bought a house before, you could probably stand a refresher course on the basics.
To learn the difference between an APR (annual percentage rate) and an ARM (adjustable rate mortgage), to get tips on how to find a reliable inspector, or to compile questions for your real estate agent, head over to Microsoft's HomeAdvisor. At the Getting Started section of this site, you'll find a clear overview of everything from the buying decision to closing, with advice, lists of relevant questions, and even a glossary of real estate terms.
The guided checklist for first-time buyers is particularly helpful. It asks such questions as, "Do you feel pressure to buy a home now?" and "How do you think owning a home will change the quality of your life?" The site then offers canned advice based on your answers. Some of this material may seem a bit, obvious: If you don't drive, the site recommends you look for a home within walking distance of shops and public transportation. But you also get plenty of useful tools, like a financial worksheet that tells you whether you should rent or buy. Go through the checklist first: You may be surprised to learn that now is not the best time to buy.
If you do decide to take the plunge, you'll need to figure out whether you really have the where withal to go after that four-bedroom contemporary overlooking the beach. Almost every real estate site on the Web includes a calculator to help you determine how much house you can afford. Simply enter your gross income, your expected monthly debt payments, as well as your cash reserves for a down payment and loan fees, and--ka-ching!--the ideal price range for you appears.
Most of these calculators assume you'll dedicate about a third of your monthly income to your mortgage payment--a good rule of thumb, no matter how you plan to search for your dream home.
HomeAdvisor's calculator also provides low- and high-end ranges for conservative and aggressive buyers, respectively. Getting this information is quick and painless: HomeAdvisor defines terms, explains the differences between various types of loans, offers online access to your credit report, and tells you how you can improve your credit rating if some of the checks in your past were made of low-grade rubber.
Prequalify for a Loan
While you're thinking about dough, you should go ahead and get prequalified for a loan. What? Before you've started looking at properties? Yes, prequalifying for a loan before you hunt down a house will save you time when you're ready to place a bid--a valuable advantage in a competitive market. Some sellers won't even let you in the door unless you have a prequalification letter in hand.
Because such letters are based on financial information that has not as yet been verified by any lender, you can get prequalified--for free and usually within a few minutes--by any of a number of real estate Web sites, including HomeAdvisor.com.
Your best bet, though, is to get prequalified at a dedicated financial site such as E-Loan.com, HomeShark.com, or QuickenMortgage.com. Aside from offering a range of loans and lenders, each of these sites is easy to use and provide extensive financial data, such as payment strategies and the tax implications of home buying. All three are secure sites, too, and prequalifying doesn't obligate you to apply for a loan or even communicate further with a particular lender.
The process is simple: Answer a series of questions, inputting your monthly income and debt payments, an estimated loan amount, and the state in which you plan to buy property. If the numbers add up, your prequalification letter is just a few clicks away. HomeShark.com generates its own generic letter, while QuickenMortgage.com and E-Loan assess the information you've provided and scan national and regional lending companies to find actual available loans for which you might qualify. Select a loan from the resulting list, and print the form letter.
QuickenMortgage.com is an excellent site for first-time buyers because it offers both clear explanations of each step of the loan application process and recommendations that are tailored to your personal financial situation. HomeShark.com provides somewhat less guidance, but if you're familiar with the process of acquiring a loan (or if you don't mind spending a few minutes hunting down answers to your questions), you can obtain a prequalification letter there in as little as 15 minutes.
E-Loan's set of procedures is quick and straightforward, too, but the company assumes that you already know such things as the terms of your loan and how many points--each point equal to 1 percent of the entire loan amount--you are willing to pay the lender. E-Loan does, however, have a helpful tracking feature, which lets you log on and check the status of your loan any time you want.
Whichever site you use, you can save hundreds of dollars in broker's fees if you complete the application process and get your loan online. The more direct online approach can also save you a substantial chunk of time. But compare as many loans as possible before you apply for one, to ensure that you get the best rate.
Find the Ideal Location
Every real estate agent will tell you: The location of your home is its most important asset, so you should carefully research the communities you're interested in. If you're lucky, you've already found one you like. But if you're moving across country or have to relocate in a hurry, you may have to depend on third-party data to find a suitable neighborhood.
Fortunately, any real estate site worth its server space provides basic information on a locality's demographics, schools, churches, and cultural centers. No sites are stellar in this realm, but a few stand out: HomeAdvisor, Homefair.com, and Realtor.com.
Realtor.com finds neighborhoods that match your preferences, which makes it a good place to start. After selecting a state, you rate the importance of school performance, area homeowners' education and income levels, crime rate, and type of locale. The site lists suggested communities (grouped by zip code), with the closest matches first. Click on a zip code for more detailed information about a particular area, including a demographic snapshot and school and crime statistics. You can store the names of neighborhoods that interest you in a Personal Planner.
Unfortunately, complete data isn't available for every area (information on rural locales seems especially sketchy), and some of the "facts" I found were inaccurate. Several times, for example, Realtor.com provided statistics for the wrong school district (in one case, the reported district wasn't even in the state I requested). Like most sites, Realtor.com posts a disclaimer warning that it does not guarantee the accuracy of the information it reports and recommending that users independently verify all data.
Once you've compiled a list of neighborhoods, go to HomeAdvisor.com for a little more detail. Using data gleaned by a market research firm, the site identifies areas by zip code, city, or neighborhood and categorizes regional populations into tidy groups, using reductionist titles that--accurate or not--may raise a few hackles.
For example, the site calls the people in zip code 72210 (Little Rock, Arkansas) citizens of "River City, USA": middle-class families who like instant mashed potatoes, fresh-water fishing, and banking by mail. Woodside, California (zip code 94062), is home to the "Winners' Circle," where your neighbors might borrow a wheel of Brie over the back fence before hopping into the Infiniti for a jaunt to the country club.
HomeAdvisor.com also offers timely, free information on schools and crime. Crime statistics come from local police departments, and the site uses an overall rating of A through D (A is best). It also includes the number and types of crime reported in the past year. School ratings are based on national test scores, amount spent per student, and student-to-teacher ratios.
Like Realtor.com, HomeAdvisor.com recommends communities based on your criteria. Enter state and region, and assign values to three categories: crime, schools, and neighborhood type. You can view the resulting list of neighborhoods as a map or graph, and you can see home listings in some areas. At press time, the site ad 500,000-plus listings, but not all geographic regions were represented. So, depending on where you want to live, you might not find any listings here.
Digging Deeper
For great relocation tools and links to local businesses, take a trip to Homefair.com. Though the site won't find specific neighborhoods for you, it will track down local weather reports, compare the cost of living in various cities, and tell you when to line up a mover, fill out your change-of-address forms, and give away your plants. The site also volunteers to identify the best city for you based on your entries for ideal climate, economy, and demographic makeup. And it offers basic information on schools.
More detailed coverage, though, comes at a price: your privacy. To get extensive cost-of-living and community reports on up to two cities, or a detailed comparison of up to three school districts, you must submit your name, street address, e-mail address, and phone number. Naturally, the site promises to share your personal information only with sponsors that can provide you with valuable services. But if you choose not to reveal this data anyway, well, that'll be $40, please, for the school report you requested (and $25 for each city report).
Once you've gotten your feet wet with the three big sites, you may want to drill down a little deeper for information on a specific topic such as schools. For $34, SchoolMatch.com will send information on test scores, district expenditures, and special programs, as well as statistical comparisons of any school in the United States, based on district and national averages. Reports tailored to your family's needs cost about $70.
Before you send off your credit card number, though, remember that school statistics change often--and just because you're paying for them doesn't mean they're current. SchoolMatch.com , for instance, claims that it constantly updates its information, but some of the data I found was about two years old. Finally, when searching for the right community, check out town and school home pages. These sites may offer more insight into the character of a community than all the demographic facts in a database. And keep in mind that regardless of how many online resources you find, there's only so much the Web can tell you. The best way to evaluate a neighborhood is to visit it yourself and talk to the people who live there.
Find Your Dream Home
Now that a few mouse clicks are all that stand between you and years of staggering debt, you're ready for the fun part: finding that beach house! For sheer quantity of listings, the hands-down winner on the Web is Realtor.com. The site, designed for real estate professionals and consumers, carried more than 1.3 million listings at press time--that's about 95 percent of all homes for sale in the United States. It draws listings directly from the Multiple Listing Service, a national database to which most real estate agents subscribe.
To start shopping, select a state and town and answer a few questions to narrow down the results. General search criteria include type of home, price range, number of bedrooms and bathrooms, and minimum square footage. If you know exactly what you want and don't want to browse through multiple listings, complete the optional search criteria. Here you can request specific features like central air, a two-car garage, and a water view.
The resulting list gives each home's location and price. Many entries also include a photograph and more details about the property. Click the photo or the More Information button for room dimensions, appliances, tax rates, community amenities, and unique features. Each entry also lists an estimated monthly payment amount (based on current interest rates and a 20 percent down payment), a link to neighborhood information, and contact information for the listing office.
If your search turns up properties you'd like to revisit later, save them to your Personal Planner. Once you register a profile, you'll get an e-mail message whenever a house that matches your criteria hits the market. At press time, the site updated daily the listings for 30 metropolitan areas.
Supplement your search on Realtor.com with a side trip to HomeScout.com . With over 750,000 listings from across the United States, HomeScout.com is less comprehensive than Realtor.com. But it includes some non-MLS properties, and its straightforward design makes it very easy to use. The home page is split into two sections: Shop loans (which takes you directly to the HomeShark.com home page) and Shop homes.
To browse the listings, choose a state, a city, a property type, and a maximum price; then hit Search. HomeScout.com will gather all suitable listings and display each match, citing the price, the location, the number of bedrooms and bathrooms, the online listing source, and real estate agent contact information.
You can sort the results in ascending or descending order by price, or by most recent listing date. Click the appropriate link to find out more information and to view a photo of a property--or to get a list of available loans, including interest rates, closing costs, and monthly payments. Here, too, you can save your searches in a personal profile and register for weekly e-mail updates. One caveat: Because HomeScout's listings come from individual source sites, the site is updated sporadically, which means that your search may dig up properties that are no longer available.
If you already know precisely where you want to live, visit CyberHomes, which features unique map interfaces with its listings. Let's say that you want to be able to walk to work. Choose the Radius Search feature; then enter the address of your office, the number of miles you are willing to walk, your price range, and the type of house you're looking for. CyberHomes will call up a list of available properties, with details such as price, number of bedrooms and baths, year built, agent contact information, and tax rate. Most of the listings also include photographs, as well as links to mortgage calculators and to school and community information (although the data I found was sparse for many areas, and often out of date).
If you want to search the traditional way, CyberHomes also locates properties by feature, address, or MLS number. You can view results as a list or a map of icons. Click an icon for details. CyberHomes allows you to save searches and to sign up for e-mail notification of new listings. The site is updated daily.
Unfortunately, CyberHomes does not include listings for every part of the country. At press time it had 600,000 listings ranging across much of the United States but failed to cover a number of states and metropolitan areas.
Still haven't seen enough yet? HomeSeekers.com maintains over 650,000 listings, updated daily, covering much of the United States and Mexico. Not all of these listings include photographs, but you can map their locations and get basic information. The site also has an accessible mortgage calculator and links to basic community and financial information. You can search HomeSeekers.com for new homes, resorts, and foreclosed properties, too.
Find an Agent
House shopping in your pajamas may be the ultimate in convenience, but let's face it: The virtual world has its limits. Once you've scoured the real estate sites and followed every e-mail lead beamed your way, you'll want to close the windows on your browser and open a few real ones. Maybe you'd like to discuss the neighborhood with someone who lives there or chat with one of the teachers at the local elementary school. It may be time to find a good local real estate agent.
This is where the real estate sites' seemingly free information starts to pay off for them. They've lured you toward those dream houses; now it's time for them to reel you in and sell you one. Realtor.com's Find a Realtor link, for instance, provides one of the most comprehensive lists of real estate offices on the Web.
Often you'll find links to individuals' résumés and home pages. Gather as much information as you can from these sites, and make a list of agents to interview. When you're ready to pick up the phone, Microsoft HomeAdvisor.com can help you compile a batch of interview questions designed to find the right real estate agent for you. Fire off some questions via e-mail to make sure they're responsive. Many agents have e-mail accounts and don't even know it, so make sure you hook up with one who's prepared to use the PC to your advantage.
Using your computer and the Web, you have found a neighborhood, a loan, some houses to check out, and an agent. Now you must leave the relative safety of your study and bag that dream home on the beach. One more thing: If you ever decide to sell it, send me an e-mail.
HomeAdvisor.com
Want to know what the folks in Emerson, Georgia, are watching on TV? (Married with Children.) Or what the population of Powder River, Wyoming, is? (84.) If you're looking for demographic information, HomeAdvisor has the scoop, though its tendency to stereotype soon grows tiresome. You'll find school reports (updated quarterly) and crime statistics here, too.
Homefair.com
From weather reports to cost-of-living comparisons to SAT scores, this site posts a range of helpful information, relocation tools, and links to local services. The catch? To obtain more detailed reports, you have to reveal your address and phone number, which means you may become prey to telemarketers.
HomeScout.com
This site, with over 750,000 listings, is easy to use and links seamlessly with HomeShark. But it's less customizable than other sites; and since it draws its material from various sources, property listings are presented inconsistently and updates can be sporadic.
Realtor.com
This real estate powerhouse lists 1.3 million properties, plus maps, photos, and community facts.
E-Loan.com
The most comprehensive lending site, E-Loan had over 65 participating lenders at press time. It also has an online loan-tracking tool and doesn't use cookies.
HomeShark.com
HomeShark features a simple, easy-to-use interface. Furthermore, in our testing, the site consistently hunted down the lowest interest rates among the financial sites here.
QuickenMortgage.com
First-time buyers will find this site easy to use. It also offers clear explanations of each step of the loan application process.
Hints for Happy House Hunting
SPEED UP YOUR SEARCH
Real estate sites use lots of photos, graphics, and other resource-hungry extras. Without a 56-kbps modem or faster Internet access, you may end up spending more time reaching for the coffeepot than looking at houses. For serious shopping, conserve your nerves by investing in a fast modem. If you're really strapped for time, view listings as text only, and turn on the photos option only when you find a listing that interests you.
BEWARE THE COOKIE MONSTER
Real estate sites deliver more cookies than a Girl Scout in the springtime. If you're using a cookie notification feature, turn it off--or prepare for repetitive strain injuries to set in as you nuke all those cookies.
GET PREQUALIFIED
It's fast, easy, and free--and it could save precious time and serious disappointment later, especially in a competitive housing market. So get a prequalification letter before you embark on a house hunt in earnest.
PROTECT YOUR PRIVACY
Though experts say getting a loan online is no riskier than getting one in a banker's office, be sure the loan site is secure by looking for the closed-lock icon. And use common sense: Don't leave your browser unattended, clear your cache often, and relaunch your browser when you are done with a transaction.
GO LOCAL
Large listing sites such as Realtor.com are great for getting the big picture, but as you pinpoint your search, visit regional real estate sites as well. You can often link directly to their home pages from the individual listings on Realtor.com. Some of the smaller companies have beautifully designed sites that offer more photos and information than you'll find on the national sites. You might also get the edge on new listings, since these are usually posted on the companies' own sites first.
BE YOUR OWN AGENT
No doubt about it: Whether the task is finding a house or getting a loan, the Web gives you the tools to do it yourself. But are you brave enough to buy or sell a house without involving an agent? If so, check out Owners.com, a one-stop home-shopping site that lists 35,000 properties in all 50 states.
FREEDOM FORUM
"Historically, home sellers who didn't want to use a Realtor had one option: a classified ad in the newspaper," says Hans Koch, CEO of Owners.com. "We wanted to provide an online forum for sellers to market their property. Our vision is to meld technology and consumer acceptance and enable the entire home buying process to occur online."
To add a listing, sellers fill out an online form providing their name, phone number, and information about the property being sold. Sellers can post an unlimited amount of text and one photograph for free; additional pictures or enhancements cost extra. The listing stays online until the seller deletes it, and it can be updated or edited at any time. "People like the option of selling their homes themselves," Koch explains, "because they can save the broker's fee and apply that toward things like home improvements to help leverage the sale."
HAVE IT YOUR WAY
For buyers, Owners.com is a fresh source of listings and relocation information. The site's advisers will help guide buyers and sellers through the transaction, but this option is probably not for everyone.
"Consumers still turn to brokers because real estate is not a commodity. All pieces of real estate and all transactions are unique," explains Peter Miller, an author who developed Ourbroker.com , an online source of real estate information for consumers. "Every form or piece of information you get on the Internet should be checked by a broker or an attorney."
The bottom line? Buying a house is an extremely complex--and potentially risky--business. If you want to go it alone, be prepared to do lots of homework.
Education is the key to buying real estate. That is what I will do--give you the details of the market and its properties. When you buy, you will be making an educated decision. I would welcome the opportunity represent you in your real estate needs. I can do the job for you.
There is much more to my business than just being a middleman in a sales transaction. I welcome the opportunity to explain my personal service policy and illustrate a model marketing plan which I have developed for our area.
Please examine my professional profile and my overall presentation. Mine are the services of a professional real estate agent. I would like to work for you.
RICHARD'S EXPERIENCE
- Over 22 years of Marketing/Sales
- Over 13 years of Marketing Selling in Destin
EDUCATION
- Primary Concentration: Sales/Marketing
- Ohio University, Athens, Ohio,
- New York University, New York City, N. Y.
- Dale Carnegie, New York City, N.Y.
- Bert Rogers Real Estate Institute,Fort Walton Beach, FL
- Center Moriches H.S., Center Moriches, N.Y.
PERSONAL BACKGROUND
- Wife, Melanie
- Children, Shannyn 19, Richie 11, Patrick 10
- Living in Destin 13 years
INTERESTS
Photography, Sailing, Camping, Tennis, Bicycle & Horseback Riding, Gardening & Coaching Soccer.
ASSOCIATIONS
- Member of the Church of the Resurrection, Destin FL.
- Member of Emerald Coast Board of Realtors, Fort Walton Beach FL.
- Member of National & Florida Association of REALTORS
- Multi Million Dollar Producer
- Recipient of Executive Club Award
- Recipient of President's Club Award
- Recipient of 100% Club Award
- Top Listing Associate
I sincerely hope these tips and ideas are of value to you. If there is any way I can be of service, please contact my office... I would consider it a privilege to be of service to you! If you would like a FREE consultation, call my office at 850-837-8880 or Toll Free at 800-775-5914.
LET ME PUT MY EXPERIENCE TO WORK FOR YOU.
Sincerely,
Richard Eimers
The Eimers Group LLC
REALTOR
The Destin Commons
4300 Legendary Drive
Suite 270
Destin, Florida 32541
