17. How are package deliveries handled in the building if there's no doorman?

18. Do you have a right to sublet your unit?

19. Are there many vacancies in the building or development? How long does it take for the average unit to sell-are they in demand, or does it take a while?

20. When are workpeople allowed to enter and work on your unit? Saturdays, Sundays, evenings? Must they be licensed?

21. What kind of repair or construction work can be done without the approval of the association or board? What's the procedure for approval? How long does approval usually take?

CHECK IT OUT.

For more about meetings and other features of community living: See the resources offered by the Community Associations Institute (CAI, See the resources offered by the Community Associations Institute (CAI, www.caionline.org). Your state's website should also link you to your community association law.

What's Next?

Still having a hard time finding the right house at the right price? Look to Chapter 9 for alternatives.

CHAPTER 9.

Plan B: Fixer-Uppers, FSBOs, Foreclosures, and More

Meet Your Adviser Steve Elias, an attorney who consults with homeowners and others dealing with foreclosure and bankruptcy, author of numerous Nolo books including The Foreclosure Survival Guide The Foreclosure Survival Guide and and Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time, and a programmer and volunteer at KPFZ 88.1 FM radio, in Lakeport, California.

What he doesMy work as a lawyer is somewhat revolutionary, actually-Im the only one I know of helping people who cant afford lawyers but want to do their own bankruptcy. For a flat rate, Ill interview the person and be available for questions afterward. Ive worked with over 1,000 people so far. Because a number of the people I consult with were also homeowners, Ive gotten into foreclosure advising as well. We discuss priorities-whether theyre hoping to keep the kids at the same school, sell the property when it makes sense financially, or what?Ive worked with Nolo for years on its bankruptcy and foreclosure books-and because the law keeps changing, so do the books. In fact, because the recent bankruptcy laws made the process so difficult and expensive, its become more important than ever for readers to have access to useful, plain-English information.As for my radio work, I do three live programs every week, which include news and commentary.

First houseIt was a brown-shingled place, with redwoods in the front and back yard, that we bought in Berkeley, in 1969. Both my wife and I were being paid as law students in legal assistance offices, but at $21,000, it didnt feel like too much of a stretch. Unlike many California houses, it had a basement, where friends would come and stay.We moved to Vermont a year later, and sold the house for a small profit. Now its probably worth over a million.

Likes best about his workWhether its working on my books or talking to people about their economic troubles, I like providing people with the information and perspectives they need to make their own decisions and handle their own legal affairs in the areas I cover.

Top tip for first-time homebuyersThink about the reason youre buying. People who choose a home because of the local schools, public transport, and liking the feel of the neighborhood-theyre going to live there forever. But when its your first home, theres a good probability youll move on to other homes, so you also have to think about affordability and investment.In fact, you might want to buy in a place that isnt vulnerable to a lot of foreclosures-though there are good deals to be had in vulnerable areas, so its hard to give general advice here.Another important tip Id give is, dont overstate your income just to get into a house. Itll only lead to trouble later. People who didnt overstate their income are in most cases doing fine even in the midst of this foreclosure crisis.One last point: If youre happy where you are, your houses value shouldnt be a concern-youve got shelter, and would otherwise be paying rent.

You're already frequenting the open-house circuit, and you've got a good agent. But maybe the perfect house hasn't yet appeared, or at least not at a price you can afford. It's not hopeless! Check out some creative alternatives, including: * houses that have stalled on the market* starter houses* potential remodels and fixer-uppers* space that can be shared with a co-owner or renter* FSBOs (houses "For Sale by Owner," without a seller's agent), and* foreclosures and probate sales.

As Ira Serkes, a Berkeley RE/MAX Realtor counsels, "The house you want, at the price you want to pay, may not actually exist. But it's important not to compromise on essential features such as neighborhood safety and number of bedrooms. Once you've gotten to know current market realities, and adjusted your expectations accordingly, finding a house you're happy with will happen much faster."

Castoffs: Searching for Overlooked Houses

In every market, some houses have been on sale for so long that buyers have moved on and lost interest-which gives you a chance to step in and offer a lower price. Houses get overlooked for a broad variety of reasons: Maybe they're priced too high, have cosmetic problems, or are unattractive to most buyers (because of a bad layout or a location on a busy street).They may even be "stigmatized properties," meaning they were the site of a crime, suicide or other death, rumored environmental dangers, haunting, or some other occurrence that gives buyers the creeps (and lowers the house's market value).

We haven't exactly made such houses sound appealing-but whether you should be interested at all comes down to two questions: * If the house was simply overpriced, is the seller ready to sell it for what it's really worth?* If the house has other problems, do they happen to be ones you can live with or feasibly change?

For example, when retired Realtor Carol Neil was helping her daughter househunt in the always-competitive San Francisco market, she found they were getting outbid, and couldn't locate anything suitable for an acceptable price. So Carol went into the MLS and searched for listings tagged "expired" or "price reduction." Carol says, "It's wise to watch price reductions and visit the properties to see what the original 'flaw' was: cosmetics, price, or the property itself."

Carol's search led to a house with a view of the ocean and within walking distance of the elementary school that her grandsons attended. The problem? It was overpriced, because it smelled of cigarette smoke and was badly decorated, with tacky pink curtains and carpets-totally fixable, but hard for buyers to look beyond. The seller had rejected the only bid, expecting multiple, higher offers. When Carol's daughter came in four months later offering a price that accounted for the house's problems, the seller at last became realistic and accepted.

How'd They Sell That House?

After a famous murder in a house, it doesn't fare well on the real estate market:* Nicole Brown Simpson's 3,400-square-foot condo languished on the market for two years before selling for $200,000 below the asking price. The buyers changed the address and remodeled.* Jeffrey Dahmer's Milwaukee apartment building was so stigmatized by his series of gruesome murders that the entire neighborhood's occupancy rates went from 80% to 20%. The building itself was demolished by developers.* In 2006, almost ten years after JonBenet Ramsey's body was found in the basement of her family's Boulder, Colorado mansion, it was put on the market for $1.7 million-about $300,000 less than its estimated value. It brought in only $650,000, and has passed through several owners' hands since.

Your agent can help you with searches like Carol's and offer insights as to why a house hasn't yet sold. If the problem is serious, or the seller appears extremely ,unrealistic, cross it off your list. But some houses may still remain prospects to pick up at an affordable price. You may be a unique match for a particular property-for example, if you're unfazed by a house's criminal history. Also, some stigmas are more rumor than fact-maybe the former occupant actually died in the hospital, or an inspection turns up a logical reason for the spooky clanking noises.

TIP.

Newly constructed home seekers: You too can find castoffs. New-home discounts usually happen when a developer finishes an entire community, but some houses remain unsold or deals have fallen through. Meanwhile, the developer is eager to move on to the next project. You might see these advertised as "builder closeouts." New-home discounts usually happen when a developer finishes an entire community, but some houses remain unsold or deals have fallen through. Meanwhile, the developer is eager to move on to the next project. You might see these advertised as "builder closeouts."

A Foot in the Door: Buying a Starter House

Every buyer's Dream List starts out ambitious-that's what dreams are for. Now that you've explored the market, you can decide whether to scale down your dreams concerning size, location, amenities, or something else. Perhaps you can get by without an office, or the kids can share for now (hey, the Cosby kids did it!). Or you might be able to identify a neighborhood that's up and coming. Watch where the artists go! As with New York's SoHo in the 1970s, artists are often the brave souls who turn a dicey neighborhood into a desirable one.

With a starter house you get your foot in the door of the real estate market, start building equity, and save enough to buy a bigger or better place in the not-too-distant future. It's a particularly solid strategy if you can expect increases in your income-for example, you or your partner will be graduating from school and getting a job soon. But even without saving, increases in the house's value and your equity can help launch you into the next house.

Smallest House in the World According to Guinness World Records, this title is held by a fisherman's house in Conwy, a village in North Wales. Looking not unlike a British telephone booth (complete with red paint), the house contains just two tiny rooms atop one another, connected by a staircase. The house was built in the 19th century, which may explain why it has no toilet.

A few cautions apply to buying a starter house, however: * Buying ain't cheap. Buying ain't cheap. You're going to have significant transaction costs each time: closing costs, agent commissions, and moving expenses. You're going to have significant transaction costs each time: closing costs, agent commissions, and moving expenses.* Don't expect house price to drop proportionally to size. Don't expect house price to drop proportionally to size. Even if the house is matchbox-sized, you have to pay a reasonable amount for the land it sits on, particularly in a nice neighborhood. Even if the house is matchbox-sized, you have to pay a reasonable amount for the land it sits on, particularly in a nice neighborhood.* Select the right mortgage. Select the right mortgage. Make sure your mortgage doesn't have prepayment penalties. Also avoid loans with points, because you might not recoup their cost. Make sure your mortgage doesn't have prepayment penalties. Also avoid loans with points, because you might not recoup their cost.* Plan for any drop in value in the next few years. Plan for any drop in value in the next few years. If the value of your home drops, you won't be building much equity and might have to sell at a loss. That could make it tough for you to afford a bigger or better home. If the value of your home drops, you won't be building much equity and might have to sell at a loss. That could make it tough for you to afford a bigger or better home.

Don't be scared by the number of cautions. Many homebuyers adopt this starter-home strategy. It allows you to start enjoying the benefits of homeownership right away, learn the ropes of being a homeowner, and develop a realistic sense of when and how you can move to your next place.

Have It Your Way: Buying a Fixer-Upper or House You Can Add on To

Buying a house that needs a major overhaul, or will support an addition, is a great strategy for some buyers. The advantages are obvious: Pay less, and exercise your own excellent taste to produce a house you'll love living in and may sell at a profit. Plus, if the place is livable now, you can make these changes later, when you have more cash or equity (which you can borrow against).

How to Get on Extreme Makeover Here's your backup plan for that fixer-upper: ABC's Extreme Makeover Home Edition Extreme Makeover Home Edition is always looking for new contestants. Go to is always looking for new contestants. Go to http://abc.go.com. Click "Shows," then "Extreme Makeover: Home Edition"; then scroll to the bottom and click "Casting" for application details. Also, HGTV's various series and specials are always looking for recruits (see www.HGTV.com).

Buy a house we could add on to. Erica and Carl had recently married and planned to have kids. But, says Erica, "All the houses in our price range were too small, too far from our offices, or had no usable back yard space-and we had an image of hanging out with family and friends on a back deck. After a year's searching, we decided to buy small and add on. We found a well-priced two-bedroom, to which we added a second bathroom and a deck soon after buying. That depleted our savings, but five years later, right before our second child, the house had gone up in value enough for us to qualify for a home equity loan and add another bedroom." Erica and Carl had recently married and planned to have kids. But, says Erica, "All the houses in our price range were too small, too far from our offices, or had no usable back yard space-and we had an image of hanging out with family and friends on a back deck. After a year's searching, we decided to buy small and add on. We found a well-priced two-bedroom, to which we added a second bathroom and a deck soon after buying. That depleted our savings, but five years later, right before our second child, the house had gone up in value enough for us to qualify for a home equity loan and add another bedroom."

How Much Fixing-Up You Can Handle

Ideally, you'd like a house where the fix-ups are minor-like getting rid of the paisley wallpaper and mustard linoleum. Unfortunately, other homebuyers and investors are also looking for easy fixers, so huge bargains are sometimes hard to find. Nevertheless, a certain number of cosmetic fixers will remain overlooked, particularly if they look unappealing from the street (some potential buyers won't even get out of their car).

Sisters Are Fixing It forThemselves Who says home repairs are "man's work"? Anyone who's repair-challenged can take advantage of fix-it resources such as www.bejane.com, with tutorials, message boards, and a list of "Cool Tools." And Tupperware-partyesque Tomboy Tools workshops include hammers and demos (see www.tomboytools.com). Or try these books:* Dare to Repair: A Do-It-Herself Guide to Fixing (Almost) Anything in the Home, Dare to Repair: A Do-It-Herself Guide to Fixing (Almost) Anything in the Home, by Julie Sussman and Stephanie Glakas-Tenet (Storey Publishing). With its Rosie the Riveter cover, it's easy to spot and teaches tasks from unclogging sinks to patching drywall. by Julie Sussman and Stephanie Glakas-Tenet (Storey Publishing). With its Rosie the Riveter cover, it's easy to spot and teaches tasks from unclogging sinks to patching drywall.* Chix Can Fix: 100 Home-Improvement Projects and True Tales From the Diva of Do-It-Yourself, Chix Can Fix: 100 Home-Improvement Projects and True Tales From the Diva of Do-It-Yourself, by Norma Vally (Studio). Seen her on the Discovery Channel? Now you can read her lively instructions and stories on dealing with plumbing, electricity, walls, floors, doors, and windows. by Norma Vally (Studio). Seen her on the Discovery Channel? Now you can read her lively instructions and stories on dealing with plumbing, electricity, walls, floors, doors, and windows.* The Tuff Chix Guide to Easy Home Improvement The Tuff Chix Guide to Easy Home Improvement, by Paige Hemmis (Plume). Another star author, from Extreme Makeover. This book focuses on home repair advice for novices.

At the other end of the spectrum are major remodels, requiring structural upgrades, adding or removing walls or rooms, and more. Unless you've got a contractor in the family, we suggest avoiding these-especially if they contain health hazards (such as mold) or are virtually unlivable (perhaps with big holes in the floor or roof). Here's why: * The bank may refuse to approve your loan until a certain amount of repairs are done, and neither the seller nor you may be ready to pay for or complete these repairs.* Major repairs can drain your bank account. You're looking for a fixer-upper because the perfect house doesn't seem to be in your price range, right? And don't forget that construction surprises are inevitable, and usually expensive.* Dealing with large-scale improvements can disrupt your life and strain your personal relationships. If this is your first home, you might not be ready to hire contractors; take time off work to supervise the maelstrom of activity; and deal with delays, no-shows, or cost overruns-especially if you're living in the house.

The best bargain is usually a fixer-upper somewhere in the middle: one that can be made livable with a manageable amount of your own work or professional help. Think new paint, new flooring, and new windows rather than a new foundation and roof. When you find one that looks promising, be sure to: * Make sure your plans are actually feasible. This almost certainly means checking with your city building department regarding height limits, requirements to bring old wiring and other systems up to code, setback rules, view ordinances, or parking restrictions.* Ask architects, contractors, and engineers about the costs and feasibility of any major structural changes like adding a second story or a room.* Have a serious conversation with anyone buying with you about the stress this project might cause. Discuss how you'll cope without a functional kitchen or bathroom, or who would deal with the many different contractors and workers.

Expect the unexpected. Noemi and Hugo bought a rundown house on a street where many young couples were buying and remodeling. Hugo explains, "Our plan was to live there through the remodel, stick around a few years, and then move into a bigger place. But almost immediately, we ran into complications. First, after the roof was torn off, we were told we'd need a special beam to get the raised ceiling we wanted. Meanwhile, rain poured in on our hardwood floors, which had to be replaced. This resulted in a trickle down effect (literally), with one delay after another. We ended up staying in our old apartment through the ten months of remodeling, paying both rent and a mortgage. We love our house, but we're no longer planning on moving soon!" Noemi and Hugo bought a rundown house on a street where many young couples were buying and remodeling. Hugo explains, "Our plan was to live there through the remodel, stick around a few years, and then move into a bigger place. But almost immediately, we ran into complications. First, after the roof was torn off, we were told we'd need a special beam to get the raised ceiling we wanted. Meanwhile, rain poured in on our hardwood floors, which had to be replaced. This resulted in a trickle down effect (literally), with one delay after another. We ended up staying in our old apartment through the ten months of remodeling, paying both rent and a mortgage. We love our house, but we're no longer planning on moving soon!"

CHECK IT OUT.

If tearing it down and starting over might be easier: Check out Check out www.building-cost.net, which has a calculator to help you estimate the cost of replacing an entire house.

Will You Make Money When You Sell?

Although profiting on the sale of your remodeled or fixed-up house may not be your first priority, it's worth keeping an eye on. Not all upgrades excite buyers enough to pay more for-a new furnace, for example, rarely raises eyebrows. To check whether your planned changes will lead to profits, use the websites below.

CHECK IT OUT.

Estimate your remodeling costs, see cost-to-value ratios, or get general remodeling advice at: * * www.contractors.com (under "Helpful Resources," look for the "Cost Estimator") (under "Helpful Resources," look for the "Cost Estimator")* www.nari.org (includes tips on how to select a good contractor) (includes tips on how to select a good contractor)* www.remodeling.hw.net (under "Facts & Figures," click "Cost vs. Value Report") (under "Facts & Figures," click "Cost vs. Value Report")* www.hgtv.com/hgtv/calculators, containing HGTV's calculators and interactive designs for common remodeling projects. For example, you can enter a room's dimensions and find out how much drywall to buy.

Share Your Space: Buying Jointly

Ask around: You're probably not the only person in your circle of friends or family who'd like to buy a house but can't quite make the finances work. You may find an interested, compatible cobuyer (or two). If you're living with roommates now, it won't be a big change.

You might want to look for a structure containing separate units, such as a duplex. You'd potentially each have your own entrance, kitchen, and more. But your lives wouldn't be completely separate-you'd still need to agree on major issues concerning your shared ownership, such as maintaining the roof and land.

Buy a home with my sister. Meggan and her sister had both finished college and were looking to rent apartments in Worcester, Massachusetts. "But," says Meggan, "the two of us got to talking. For the amount we'd each pay to rent separate apartments, why not just join forces and buy a multiunit house? Eventually we found a three-family home, built in the 1920s, with beautiful woodwork and built-ins. We split all the costs 50/50 (the mortgage, the expenses, right down to the lawnmower), and each took one floor. Some tenants were already living on the third floor-a dependable family-and they stayed on. Everything worked out great, and three years later, after my sister and I had both married, we sold the place for double what we'd paid for it." Meggan and her sister had both finished college and were looking to rent apartments in Worcester, Massachusetts. "But," says Meggan, "the two of us got to talking. For the amount we'd each pay to rent separate apartments, why not just join forces and buy a multiunit house? Eventually we found a three-family home, built in the 1920s, with beautiful woodwork and built-ins. We split all the costs 50/50 (the mortgage, the expenses, right down to the lawnmower), and each took one floor. Some tenants were already living on the third floor-a dependable family-and they stayed on. Everything worked out great, and three years later, after my sister and I had both married, we sold the place for double what we'd paid for it."

The cheaper alternative is usually to buy a single dwelling and share the entire space jointly, meaning you'd have less autonomy. With some looking around, you may be able to find a place with a layout conducive to independent lives, such as bedrooms in opposite wings.

You'll have to make some major decisions in advance about the financial and other aspects of your shared ownership. The biggest financial question will be how you split the down payment and monthly expenses-an even split, or a percentage split based on the amount of money you each put in, the size of your bedrooms, or some other combination of factors? And remember that how you split ownership also dictates how you can claim the related tax benefits.

Another major question involves who gets the property if one of you dies: the other person, or someone named in the deceased owner's will? And in a less dire scenario, what if one of you wants to move out-can that person rent his or her portion of the place, sell to any buyer, force the whole property to be sold, or need to offer the remaining owner a chance to buy the "property interest" (that's legalese for an ownership share), either at its original or current value?

Think about these issues before buying, because the manner in which you describe your ownership on the property deed (in legalese, "take title")-for example, as tenants in common or as joint tenants with right of survivorship-will legally determine the answer to some of them. For example, joint tenancy almost always involves a 50/50 split (depending on state law; see Chapter 11).

Cobuying is a huge commitment, and it's crucial you choose the right person to share the responsibilities of homeownership and discuss issues like how often to mow the lawn or (unless you're in a duplex) do the dishes, clean the bathtub, and vacuum the living room. Sit down with your potential co-owner to discuss such issues, Then, no matter how compatible you two seem to be, put your agreement in writing, most likely with an attorney's help.

CD-ROM.

Make sure your discussion covers all the bases: Use the "Cobuyer Discussion Worksheet" included in the Homebuyer's Toolkit on the CD-ROM. A sample is shown below. Use the "Cobuyer Discussion Worksheet" included in the Homebuyer's Toolkit on the CD-ROM. A sample is shown below.

CHECK IT OUT.