Home Buying-Sb

Overview

To buy or not to buy? General Tips.Where and What to buy?Home buying Team.What is the worth of the house?Home Inspection.Legalities and Setting up Escrow

Account.

To buy or not to buy? General Tips

Renting or Owning?Job securityPlan for next 5 yrsPanic/Instinctive buying.Not just buying a house. Buying the

whole packageMuch more….

Where and What to buy?(Location/Housing Package)

Economic HealthAmenitiesQuality of SchoolingCrime RateStability – housing valuePride of Ownership

- Weighted avg. of the above.

Where and What to buy?(Location/Housing Package)

Three Common PrinciplesPrinciple of ProgressionPrinciple of RegressionPrinciple of conformity

Where and What to buy?(Location/Housing Package)

New Homes Build to standard

expectations Cheaper Operating

cost You can build it to

your spec. What you see may

not be what you get

Old Homes Prices negotiable Proven

neighborhood Less expensive Rough edges of a

new home would have smoothened

Your Team

Real estate AgentReal Estate BrokerMoney Lender/Mortgage BrokerProperty InspectorEscrow OfficerFinancial and Tax AdvisorLawyer

Your Team

Real Estate AgentBuyer’sSeller’sRepresenting Both

A good Real Estate Agent – Time, Contacts, Patients, Geographic spl., Should educate you.

Your Team

Activity List (last 12 months) Property Address Property Type Sales price Dates of Sales Whom they represent (buyer, Seller) Total dollar value of sales Name and phone number of sellers/buyers

Your Team

Agent Interview (At least 3 agents) Full time/Part Time? Whom do you represent? How long in business? Salesperson/Broker Licensing? Understand my needs (from previous

conversation What do you think of other 2? How many are you currently representing?

Your Team

Real Estate Broker. These are the same as Agents, except that they have a different type of licensing to operate. They can operate independently of a Broker, when Agents/Sales persons cannot.

These are fall backs when the Agents did not perform well, in your team.

What is the home worth?

Value is a moving TargetFair Market ValueMedian Home ValueComparable Market ValueAppraisals

Negotiations

Negotiate with factsTime is an Important FactorLearn the Sellers MotiveWatch-out for any “higher authority”Do not be EMOTIONALAvoid Low-BallingAvoid Auction Situation

Offers->Counter Offer -> …

Good PriceGood FinancingCause and ContingencyNo Phone OffersNO Verbal agreements

Home Inspection

Patent - SelfLatent - Home Inspector

Patent

CracksMoistureStickinessLoosenessInsectsSlides

Latent

Pre-purchase Interior and ExteriorPest ControlArchitectural

Pre-purchase Interior and Exterior

Full Time Carry Errors and Omission Insurance Company Info Licenses and Certification (ASHI) Scope Time of Inspection Type of reporting Check references Cost Be present for Inspection Do not be shy to ask questions

Ownerships

Joint TenancyCommunity PropertyTenants-in-common or partnership

Escrow

Seller – BuyerBuyer - Money Lender (RESPA)

Insurance

Home Owner’sPMITitle InsuranceFlood Earthquake