Credit:
Owning a home helps you establish financial credibility.
Independence:
Owning your own home provides you with independence
and more privacy than renting. You are free to paint
walls, plant flowers, keep pets and anything else within
legal bounds.
Investment:
As you make more payments and own more of your home,
you add to its investment value. Most improvements you
make will also add to its value.
Pride:
A home reflects its owner's values and lifestyle. Owning
a home can provide you with a source of pride, enjoyment
and satisfaction.
Security:
A home can provide security against inflation because
the value of your home increases as prices go up.
Stability:
Being established in a community provides a sense of
belonging, stability and security.
Tax Advantages:
Interest on your mortgage loan is deductible on your
yearly personal income tax return. Many of the closing
costs associated with purchasing your home are deductible,
as are your property taxes.
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Real Estate Agents
You can sit down with a real estate agent and discuss
your needs, type of area, style of home, amenities and
everything you really want in your next home. Real estate
agents can help you by accessing a Listing Service which
covers all properties listed for sale within a specific
area. Together, you can select the homes you would like
to see, set appointments and preview homes in a short
period of time. An agent can guide you through the entire
process.
Newspaper Ads/Internet
Many people go through the real estate classified section
or browse the Internet to find a home that appeals to
them. However, your real estate agent will have many
listings available that may not appear in the newspaper
or Internet on a continuous basis. New listings come
on the market daily.
Multiple Listing Service
Your real estate agent should have access to the multiple
listing service if it is available in your area. It
usually includes the following details about homes and
properties for sale:
- Location
- Price
- Photograph
- Utilities
- Amenities
- Annual property tax
- Current financing (when assumable)
- Listing company
When Previewing A Home...
- Write notes when previewing a home so you will be
able to discuss the details later with your real estate
agent.
- Ask questions about the home and discuss any objections
or concerns you may have.
- Ask about the community - schools, shopping and
transportation.
- Ask specific questions about the construction of
the home; electrical, plumbing, heating, cooling systems,
etc.
Have Fun
Relax. Finding your new home can be a rewarding experience.
Have a good time and enjoy the process.
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of Contents
What is an inspection?
There are numerous types of inspections. An inspection
is meant to evaluate, at minimum, the structural and mechanical
condition of a property. It is not the same as an appraisal
which evaluates the market value of a property. Persons
involved in real estate transactions need unbiased information
about the physical condition of property they plan to
buy or sell and your contract should include a contingency
that you obtain a satisfactory inspection report. Talk
with your agent about the types of inspections available.
Home Inspectors vs. Engineers
Home Inspector: A person who examines any component of
a building, through visual means and through normal user
controls, without the use of mathematical sciences.
Engineering: Analysis or design work requiring extensive
preparation and experience in the use of mathematics,
physics, chemistry and the engineering sciences.
Finding a qualified Inspector
- Referrals from satisfied customers
- Referral from a local real estate agent or mortgage
company
- Local consumer affairs office
- Yellow Pages under "Building Inspection Services"
Ask if she/he is a member of the American Society of
Home Inspectors (ASHI). The ASHI has established standards
of practice which include the specific services, limitations
and exclusions that can be expected from private home
inspectors.
What the inspection, at minimum, includes
Every inspection should include, but not be limited to,
an evaluation of at least the following:
- Foundations
- Plumbing and electrical systems
- Doors
- Ceiling, walls and floors
- Roof
- Hazardous materials concerns
- Heating and air conditioning systems
- Common areas (in condominiums)
- Insulation
- Ventilation
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What is title insurance?
Title insurance protects the named insured against loss
because of defects, liens, encumbrances, adverse claims
or other matters not shown or disclosed to the new owner
that attach before date of policy.
What is a wood-destroying organism
inspection report?
A wood-destroying organism inspection
report is a written opinion by a qualified state licensed
structural pest control inspector based upon what was
visible and evident at the time of inspection. The inspection
report does not in any way represent or guarantee the
structure to be free from wood-destroying organisms or
their damage, nor does it represent or guarantee that
the total damage or infestation is limited to that disclosed
in the report. Wood-destroying organisms include subterranean
termites, dampwood termites, carpenter ants, wood boring
beetles and wood decay fungus.
What are the hazards of lead-based
paint?
All buyers and sellers are required
by law to receive and read a pamphlet outlining the hazards
of lead-based paint for homes built before 1978. Be sure
to ask your real estate agent for a copy.
What are closing costs?
Closing costs are an accumulation
of charges paid to different entities associated with
the buying and selling of real estate. For sellers, they
are usually about 9.5-10% of the total sales price of
a property. Some of the closing costs you might encounter
are: discount points, escrow fee, documentation fee, homeowners'
association fees, pest/rot inspection, real estate commission
and title insurance premium.
What is the difference between
"pre-qualified" and "pre-approved"?
If a buyer is "pre-qualified"
it has been determined, with a loan officer, what price
the buyer can afford based on the down payment, debts
and the amount the mortgage company will approve for the
mortgage. Being "pre-qualified" is only a determination
of probable credit. If "pre-approved", credit,
employment and funds have been approved by the lender.
What should a home inspection
include?
Every inspection should include,
but not be limited to, an evaluation of the following:
- 1. Foundations
- 2. Roof
- 3. Heating and air conditioning
systems
- 4. Ventilation
- 5. Common areas (for condominiums)
- 6. Septic tanks, wells or sewer
lines*
- 7. Insulation
- 8. Plumbing and electrical systems
- 9. Ceiling, walls and floors
- 10. Doors
- 11. Hazardous materials concerns*
* There may be an additional fee
for this.
What property details are usually
included by Listing Services?
Usually, properties listed will
include the following details:
- Location
- Photograph
- Price
- Utilities
- Amenities
- Annual property tax
- Current financing (when assumable)
- Listing company
What pages are generally included
in the Purchase and Sales Agreement?
- Agency Disclosure
- Financing Addendum/Clause
- Earnest Money Receipt
- Inspection/Clause
- Conditions/Disclosures Addendum
- Contingency
- Addendum Outlining Special Conditions
- Lead-Base Paint Notification
- Property Disclosure Form (completed
by Sellers)
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