Issues Related to Home Buying - Essay Example

?Home Buying Essay Table of Contents Introduction 3 A) The Area 3 Online Statistics 3 2) Neighborhood Information 4 B) The House/Condo 5 Selling Price of Neighborhood Houses 5 2) The Open House Evaluation 6 3) The Selling Price 7 4. Student Evaluation 9 References 10 The Listing of the House 13 Introduction The open house/condo chosen in this paper is the 19551 which is located in the Rinaldi Street in Northridge, California. It possesses a momentous inheritance being built in the 1976 but comprise almost every benefit of a modern house. It has been built on a lot of acres as a 1,520 square foot condo with 3 bedrooms and 3 full baths (Weichert, “Condo for Sale in Northridge, CA”). A) The Area 1) Online Statistics a) Crime: According to the recent crime statistics presented by the Los Angeles Police Department the frequency of crimes have reduced significantly. However, in the current situation the property crimes such as, theft have increased to a certain extent (Lapdonline, “West Los Angeles Area Profile”; Los Angeles Times, “Northridge”). b) Sexual Offenders: There were ten sexual offences recorded in recent days in various parts of Northridge which can also be recognized as the neighborhood area of Rinaldi Street (Office of the Attorney General, “In Violation”). c) Density: According to the Census 2000, the neighborhood area of the selected house/condo is populated with a total number of 28,049 people (U.S. Census Bureau, “Fact Sheet”). Thus, the area is not densely populated. d) Local School Ratings: The selected area of Northridge encompasses with 14 preschools, 10 public elementary, 3 public middle, 1 district, 1 public high, 1 public charter and 17 private schools (Great Schools Inc, “Districts or Schools in Northridge”). Few of the schools have been ranked as the top schools in the county while most of them are ranked as fairly good between 1 to 6 out of 10 (Los Angeles Times, “Northridge”). e) Earthquake Fault Location: The area of Northridge in Los Angeles region possesses a high risk of earthquake from faults such as, blind thrust fault and others. The selected area includes itself in the Alquist-Priolo Earthquake Fault Zones (State of California, “Alquist-Priolo Earthquake Fault Zone Maps”). 2) Neighborhood Information a) Zoning Regulations: The selected area includes in the Restricted Density Multiple Dwelling Zone. According to the regulations prescribed the area is prohibited to be used for commercial purpose. The residents are also not allowed to have equine(s) in a lot area which is less than 20,000 square feet. Moreover, increasing the building over two storeys is also prohibited. However, the selected condo includes itself in the RD2 zone (American Legal Publishing Corporation, “Municipal Code, Chapter I (Planning And Zoning Code)”.). b) Walkability Ratings: On an average the area ranks 65 out of 100 in terms of Walkability. This depicts that the area is to certain extent walkable (Walk Score, “19551 Rinaldi Street Northridge CA 91326”). c) Rapid Transportation: The residents in the selected area enjoy rapid transport facilities with the transportation options available in terms of owned cars, rail roads, buses, taxis and others. The residents in the lot area also gain the benefit of various recreation centers in the walkable area (City Data, “91326 Zip Code Detailed Profile”). B) The House/Condo 1) Selling Price of Neighborhood Houses The houses/condos located in the lot area, i.e. Northridge, 91326 and possessing almost similar characteristics to that of 19551 has been recorded to have an average selling price of $300,000 (Home Insight, “Historical Sales Results”). The chart represented below shall unambiguously depict the sale prices of the neighborhood condos possessing similar features. Map Address Sale Price Close Date Bed Bath Sq. Ft.   Yr. Built 1 19547 Rinaldi St $360,000 04/07/2010 3 3 1520 1976 2 19561 Rinaldi St $320,000  03/02/2010 3 2 1404 1976 3 19569 Rinaldi St $445,770  02/04/2010 4 3 1637 1976 4 19527 Rinaldi St $290,000 07/06/2010 3 2 1036 1976 Source: (Home Insight, “Historical Sales Results”). 2) The Open House Evaluation a) The house is likely to be favored by the families who prefer low dense areas but simultaneously demand all the amenities of the urban county. Moreover, as the house provides a comfortable area both inward and outward, it will be preferred by the almost any and every family. b) The house is ready to be moved in. c) No rooms can be added to the present structure of the condo. d) The condo serves with various amenities such as 3 full baths, fireplace, wide balconies, relaxing and airy bathrooms and bedrooms with walk-in closets, oak cabinetry in kitchen, quality construction, solid paneled doors and windows among others (Weichert, “Condo for Sale in Northridge, CA”). e) Structural Issues: The roof of the house is designed with Clay Tile Shingles in order to maintain the temperature in house. The exterior of the house comprises of a lawn and a community pool with easy access to the roadways as well (Weichert, “Condo for Sale in Northridge, CA”). f) Cosmetic Issues Inside: Although the house is quite old, it had only few cosmetic issues which were repaired by the owner. g) Exterior Landscape: The landscape in the front provides a view of the lawn and the county roadway. The backyard of the house comprises of a small garden. 3) The Selling Price The selling price of the house has been recorded to be around $399,000 (Weichert, “Condo for Sale in Northridge, CA”). The buyers in this circumstance can make a down payment amounted to 20% of the total amount, i.e. $79,800 and opt for a loan with a mortgage period of 30 years. Currently, the mortgage rate for 30 years loan is recorded as 4.59% (Bankrate, Inc., “Mortgage Rates: Los Angeles, CA”). a) The buyer shall have to pay $1220.94 per month as interest. While the principal amount figures to approx $887. Thus, the buyer will have to pay $2107.94 (approx) per month for 30 years. b) Final Purchase Price has been calculated as follows. Therefore, the buyer will have to pay $78,264 to purchase the house selected. c) According to the front end ration theory, it can be stated that the potential buyer should have a monthly income with a 25% to 40% which amounts to $2,108 and can be used to pay the mortgage. Thereby, the monthly salary will amount to around $52,700 on monthly and above. 4. Student Evaluation The paper was quite beneficial in understanding the various issues related to the buying and selling processes of real estate in the modern day context. It assisted in relating the various aspects, such as geographical factors, legislative factors and environmental factors with the buying and selling process. Identification of various risks associated with real estate purchase was also facilitated through the project. For instance, the identification of environmental risks, such as earthquake fault zone identification, risk of tornado and other various issues were recognized through the advantageous assistance of the research. Moreover, there are also many demographic issues related to the purchase of a real estate. To be mentioned, the frequency or occurrences of criminal activities also have a great significance in defining the price as well as the demand for a real estate property. It also reveals the security aspect of the households in the community area which is termed as quite crucial in a residential area such as Northridge. Regulatory and legislative interventions also play a significant role in the buying and selling process of the real estate. For instance, the legislative measures prescribed for the zone, depicts the extent of liberty enjoyed by the households to use their residential properties in a healthy and social manner considering the interests of the neighborhood with greater significance. Apart from these, the project was also quite beneficial to recognize the pricing policies to purchase a house/condo. It has also been recognized that earning holds a significant position in securing budget and supporting the purchase by facilitating the repayment of mortgages. However, it would have been quite beneficial if the research was emphasized on the recognition of various ethical standards from the end of both buyer and seller. It would not only assist to secure the interests of the community but also develop ideas to regulate the operations involved in the process in an ethical manner. References American Legal Publishing Corporation. “Municipal Code, Chapter I (Planning And Zoning Code)”. May 11, 2011. Los Angeles Planning and Zoning, 2011. Bankrate, Inc. “Mortgage Rates: Los Angeles, CA”. May 11, 2011. Mortgages, 2011. City Data. “91326 Zip Code Detailed Profile”. May 11, 2011. Los Angeles County, CA, 2011. Great Schools Inc. “Districts or Schools in Northridge”. May 11, 2011. Home, 2011. Home Insight. “Historical Sales Results”. May 11, 2011. Top Producer Systems, 2011. Lapdonline. “West Los Angeles Area Profile”. May 11, 2011. Compstat, 2011. Los Angeles Times. “Northridge”. May 11, 2011. Crime, 2011. Los Angeles Times. “Northridge”. May 11, 2011. Schools, 2011. Office of the Attorney General, “In Violation”, May 11, 2011. Megan's Law, 2011. State of California. “Alquist-Priolo Earthquake Fault Zone Maps”. California Geological Survey, 2011. U.S. Census Bureau. “Fact Sheet”. May 11, 2011. Census 2000 Demographic Profile Highlights, 2000. Walk Score. “19551 Rinaldi Street Northridge CA 91326”. May 11, 2011. Overview, 2011. Weichert. “Condo for Sale in Northridge, CA”. May 11, 2011. Weichert Realtors, 2011. Weichert. “Condo for Sale in Northridge, CA”. May 11, 2011. Weichert Realtors, 2011. The Listing of the House Address Sq. Ft. Bedrooms Bathrooms Year Built 19551 Rinaldi Street Northridge, CA 1,520 3 3 1976 19561 Rinaldi Northridge, CA 1,430 3 2 1976 20426 Paseo Cresta Northridge, CA 1,434 3 2 (1 Half bath) 2010 19761 Santa Rosa Drive Northridge, CA 1490 2 2 (1 Half bath) 2003 20003 Livorno Way Northridge, CA 1,335 3 3 2004 17731 Halsted Street Northridge, CA 1,651 3 3 2006 20090 Pienza Lane Northridge, CA 1,122 2 2 (1 Half bath) 2005 9610 Zelzah Avenue Northridge, CA 1,516 3 3 2004 9950 Reseda Northridge, CA 1,829 3 na 1973 10006 Reseda Boulevard Northridge, CA 1,914 3 2 (1 Half bath) 1991 10006 Reseda Boulevard Northridge, CA 1,894 3 3 1991 17735 Kinzie Street Northridge, CA 1,362 2 na 1995 17735 Kinzie Street Northridge, CA 1,589 3 2 1995 17735 Kinzie Street Northridge, CA 1,365 2 2 1995 11311 Tampa Avenue Northridge, CA 1,413 4 3 1974 9301 Shirley Avenue Northridge, CA 1,280 3 3 2006 17735 Kinzie Street Northridge, CA 1,365 3 2 1995 19620 Roscoe Boulevard Northridge, CA 1,644 3 2 1982 18531 Mayall Street Northridge, CA 1,376 3 2 1971 18504 Mayall Street Northridge, CA 1,305 3 2 (1 Half bath) 1972 Source: (Weichert, “Condo for Sale in Northridge, CA”). 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