|
Coffee Break |
|
WHEN YOU BUY A HOME... If you decided to buy a home, here are some things you might consider-steps to take before you start looking, items to think about in finding a mortgage, and answers to questions that usually come up during the buying process. Buying a home is a big decision. You want to be fully informed before you take the plunge! BEFORE YOU DO ANYTHING, DECIDE... The general area where you want to live. You might choose a few neighborhoods. Cathy Smith can give you market information on prices and information on neighborhood turnover.
After you have clarified your priorities, you are ready to consult with Cathy Smith to decide on agency representation and to view inventory of available homes which meet your requirements. Cathy Smith will go over with you your needs. Since your agent is a real estate consultant, be sure to ask all the questions you have regarding neighborhood market values, schools, transportation, how real estate taxes are assessed after the sale. In some areas, a sale means higher taxes next year due to the revaluation of a property! Cathy Smith will have the information you need or will gladly get it for you. A VALUABLE TIP: It is always a good idea to take advantage of the property inspection option that most purchase agreements call for. This is an independent inspection of the condition and structure of the home your are about to purchase. The inspection is done at your expense, generally at a cost of $100-$300. WHEN CONSIDERING A MORTGAGE, YOU SHOULD KNOW... Down Payment- The greater the down payment, the less your interest charges on the amount of the mortgage loan will be. The down payment amount can depend on several local factors. Monthly Payment- Some financial experts suggest that monthly payments (including repayment of loan, interest, taxes and insurance) shouldn't exceed 25% of your monthly income. Appraisal- It's entirely possible that the lender will require that an appraisal of the property be made. An appraisal is an estimate or opinion of its value as of a specified date. Made by a qualified appraiser, the appraisal is based on relevant physical and economic data. Points- What are they and should you have to pay them? Points are a percentage of the mortgage charges by the lender over and above the total amount of the loan to be repaid. Two points are equal to two percent of the mortgage amount. Point s often guarantee your loan or reduce the interest rate. Closing Cost- Paid to the lender at closing, these cost can cover title search, title insurance, fire insurance, survey, taxes, appraisal, credit report, legal fees, and charges for preparing the documents. Not all of these items are included in all loans and other items may be added. Cathy Smith can explain closing costs to you. SELLING? BUYING?? LET'S TALK ABOUT EXCLUSIONS... Are you a buyer confused about what is personal property and what is real property included in the sale? Are you a seller and you can't bear to part with that heirloom fixture? Always consider that provisions of a contract should be "in writing". The concept is particularly important when you are selling a home and not intending to leave an item that normally would be expected to remain with the property. In general, real property stays and personal property belongs to and moves with the sale. Unless a seller specifies otherwise in writing, purchasers assume that all items permanently attached to real property are included in the sale. This most often includes such items as:
Other items may be customarily included in a home sale depending on local real estate practices and state laws. These items vary from area to area across the country and could include freestanding stoves, refrigerators, all draperies and curtains, fireplace screens. As a seller, you should always consult with Cathy Smith before you sign the listing agreement and contract for sale to be sure everything is specified in writing the way you wish it to be. Read the small print. What is an attachment? The method of attachment is critical when determining if the item in question is real or personal property. For instance, a bathroom cabinet attached by nails or screw to the wall would be considered a permanent fixture and should remain with the property. A mirror hanging on a hook or nail above the sink would be considered personal property and can be moved with the rest of the seller's furniture. When in doubt, replace, prior to your first showing, any items you want to exclude from the sale. It can be much more difficult to negotiate with a buyer once the buyer has seen the fabulous chandelier you have no intention of leaving with the house. When you are purchasing a property and wish to expedite the process, determine exclusions before you write the contract to purchase. Haggling over personal property can lead to days and hard feeling. Ask that the seller repair and paint any holes by removing fixtures. Have Cathy Smith check to see if there is a monetary credit at closing so you can purchase replacements for any items that will be removed.
|