Established versus Transitional

Before you buy a home, it helps to understand what type of neighborhood (established or transitional) matches your lifestyle. The differences between the two neighborhoods are often found in the age of the homes, income levels, and lifestyles.

In established neighborhoods, you typically find older couples who are established in their employment, have lived in their homes for over fifteen years, and have already exchanged swing sets for college tuition. Generally, but not always, there is a strong sense of community in these neighborhoods.

On the other hand, 90% of the homes in transitional neighborhoods will change ownership within a five-year period as the family's economics improve. Families living in transitional neighborhoods are generally, though not always, less established couples with young children and living on a tight budget. In transitional neighborhoods, a sense of community may or may not exist among the residents.

Whichever neighborhood you choose, your agent can help you by providing information on the number of recently sold homes, number of homes currently on the market, age of the homes, and when the community was established.

No Man is an Island—Covenants

Many communities have rules governing what people can do on private property. These rules can dictate everything from the storage of inoperable vehicles outside residential dwellings to not allowing residents to park vehicles outside their home (e.g., no parking in the driveway).

Rules governing the conduct of residents within a community constitute a covenant. A covenant is a legal agreement that spells out how residents within a community will conduct themselves. Covenants are designed to protect the property value, historical significance, or lifestyle of residents within a community. Residents are within their legal rights to enforce the rules dictated in their community covenant. As a result, violators may find themselves hauled unceremoniously into court for infractions.

Covenants can have a tremendous impact on your lifestyle. Before you buy a home, have your agent obtain the community's covenant. Review this information before you make the seller an offer.

Traffic Patterns

To avoid the shock of finding out that your new home sits next to a major thoroughfare, check the neighborhood's traffic patterns by driving around the area at various times of the day. Then, talk to the local residents because traffic patterns can often change. While this may seem like a minor point during the house hunting process, it can become a major inconvenience after you have moved into your new home.