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WHAT ARE THE MOST COSTLY MISTAKES MADE WHEN BUYING OR SELLING YOUR HOME? It is commonly known that home ownership is one of the largest investments a person makes in their lifetime. So, don’t make it unnecessarily larger than it need be. If you know a few tips to use when buying or selling your home , you will save yourself unneeded stress and put money in your pocket as well. 1.What criteria do I use for choosing the right home? 1. WHAT CRITERIA
DO I USE FOR CHOOSING THE RIGHT HOME? Thought needs to be put into what you desire in a home, where you want it be located, how much your budget will allow for a mortgage payment, how much of your available time can devoted to maintenance or remodeling, how your present needs correlate to future requirements and what it will cost to choose the wrong house. 2. WHAT DO I DO TO GAIN KNOWLEDGE OF THE MARKET? Before you make an unrealistic offer on a home, get to know the values in a given community. Now you are in position to make an offer that is neither too high nor too low. Your knowledge should emphasize price per square foot and you will compare and contrast your home's price to other sales. Don’t be reluctant to make an offer when an exceptional value becomes available. Ask help from a professional who can give you a market analysis of the values in that neighborhood so that you can buy at a fair and market price. 3. HOW DO I FIND THE RIGHT FINANCING? Most people require some kind of long term financing when purchasing a home. Your real estate professional will be able to refer you to several lenders who will review your financial status and be able to issue a pre-qualification letter to accompany your offer to the seller. This is helpful to the seller in his consideration of your offer. Choosing the loan for your particular circumstances is critical also. There is much to consider in addition to the interest rate or the term of the loan. The various kinds of loans available will be explained to you by your lender. In today’s market, the interest rate is determined by your creditworthiness and the loan to value ratio of the property being used as collateral, in addition to the fluctuation of the market. The term of the loan can vary from a short term of 5-15 years (which can be fully amortized and can save thousand of dollars over the term of the loan) to 30 years , which is most common. 4. WHY DO I NEED
TITLE INSURANCE? The purchase of title insurance is not only a lenders requirement, it is a valuable tool to determine tax liens, easements, leases, unknown co-owners or other encumbrances on the property. Have the property searched early in your negotiations as it may affect the price you may be willing to pay in addition to protecting your investment in the future. You will want to have a survey done on your prospective purchase and your lender will require it. Ask to see the last survey made by the seller to compare any additions or changes that show up on your new one that is different from County plats, i.e, a neighbors fence or pool constructed on the property line, structures or buildings built over the line or possible zoning violations. 6. DO I NEED A
HOME INSPECTION? WHY? Option periods are designed for the discovery of serious defects, not noticed in the initial viewing. Independent Home Inspectors check the home inside and out and report to you any items needing attention and the cost involved in the repair. The final sale should be contingent on your approval of that report and any other inspections which may arise out of his report. 7. WHAT ADDITIONAL
FEES MUST I PAY? The Escrow Company provides the client with settlement charges including pro-rations of interest, taxes, Homeowners Association fees and hazard insurance recordings and courier fees. These figures are a fair distribution of costs to buyer and seller for existing and projected fees due on the property. Often, these figures include some prepaid fees for future payment of property taxes or fire insurance, when an Escrow Account is required by a lender. Always ask for these figures a few days prior to closing so that you will have sufficient funds. Remember, that as closing dates change, so do the pro-rations. 8. WHAT IF REPAIRS
ARE NOT COMPLETED AT CLOSING? To avoid closing delays, do your walk through several days before closing. If repairs are not complete, either refuse to close until repairs are completed or negotiate a monetary settlement so that you can make the repairs after closing. 9. WHAT FEES DOES
A LENDER CHARGE FOR MAKING ME A LOAN? Ask the lender at loan application time for a list of their fees charged at closing in addition to the loan discount fees. These may include "underwriters fees", loan disbursement fees, photo fees, tax service fees, courier fees, mark-up on court documentation fees or other miscellaneous fees. Sometimes, some of these can be negotiated or waived to the customer who objects. 10. WHAT ABOUT CLOSING AND POSSESSION? Settlement figures should be available from the title company at least a day before scheduled closing. Insist on viewing these statements to avoid last minute problems such as incorrect loan amounts, interest rates or other agreed upon terms. Sometimes, missing a closing date can cause last minute snags in lock-in interest rates or other terms of the sale. On your initial offer, always provide for possession arrangements and stick to them. Coordinating the move is sometimes the most difficult part of the buying process. Your real estate professional can aid in this area. 11. AS A SELLER, WHAT IMPROVEMENTS SHOULD I MAKE? Some improvements made by homeowners are wasted because of the buyer who wants to do his/her own decorating touches. Repair any damaged walls and paint with fresh moderate colors. This is very important. Don't spend money on wallpapers or expensive window treatments unless they are damaged. Front and back yards should be mowed, edged, weeded and seasonal color planted to create the best possible curb appeal. Consider a garage sale prior to marketing your home. It's a good way to haul off any unnecessary items from your yard, garage or closets and present an attractive, uncluttered appearance. Clean the carpets and wax the floors. You CAN win when either buying or selling your home! |