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