Abcs of Buying and Selling Your Home
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Transcript of Abcs of Buying and Selling Your Home
The ABc’s OF BUYING And sellIng YOUr home
THe ABC’S Of BUYInG AND SeLlINg YOUr HoMe
BeWARe
CLoSInG COsTs
DOWnPAYmEnT
Lenders need to see a 2 year job history in the
same line of work. Gaps in employment over the past 24 months will need to be explained, and those who
are self-employed may have to provide additional
documentation.
You should have 5-20% of the sale price of your home in cash in order to
qualify for a conventional loan. Expect
to secure mortgage
insurance for any down
payment less than 20%.Getting a mortgage
requires paying closing costs or fees charged by lenders and third parties. Typically, home buyers will pay between about 2-5% of the purchase price of their home in
closing costs.
Buying or selling a home is a major
financial (and emotion-al) undertaking. You
need an expert at your side helping to
negotiate a complex deal and lending knowledge and
expertise throughout the process.
EmPlOYmEnT HIStOrY
Some agents will offer to list your
home well above the selling price of comparables in the
neighborhood. BEWARE! False hope won’t get your home sold
faster. It may even drag out the
process months longer than necessary.
C
GeT YOUr HOmE ReADY
HOmE APpRAIsAL
INsPeCTIoNRealize that
you probably won’t get
everything you want when purchasing a
home. If a house meets most of your needs, look beyond cosmetic flaws. They can be remedied.
A home inspection assesses the safety and structural integrity of a
house, ensuring it meets safety and city codes. ome appraisals
provide an estimate of how much your home is worth on the current market. State licensed experts evaluate the home’s size, type,
condition and the overall real estate market in the
area.
Clean it up! No one wants to buy a dirty
house, so make your
home sparkle with a good, deep cleaning.
h
i
LoCATIoN
The homebuyer can secure an Option
Period for a non-refund-able fee. During this time, the homebuyer may end the contract
for any reason, without penalty.
Different neighborhoods will have different
characteristics. You'll want to pick the one that is the closest fit to your
lifestyle and personality - a place where you'll feel
comfortable. Kid friendly? Lots of green
spaces?
Worried about purchasing your dream home before you’ve sold your current
home? Request a Kickout Option, which allows the
seller to continue marketing the home
while remaining under a contingent contract based on the sale of
the prospective buyer’s current house.
Find a home close to the places you visit frequently,
like your job, shops, grocery stores and
preferred schools. When considering resale value,
ask yourself—is this a place where a wide
variety of people want to live? As the saying
goes, “Location! Location!
Location!”
MoRtGAgE
A mortgage is a loan that a bank or lender gives you to help finance the
purchase of a house. To get the best rates, aim to borrow 80% or less than the value of the house.
MK
oL
G
KICKOUt nNeIGHbOrHoOD
JJUGgLIng EXpeCTAtIOnS
OpTIoN PeRIoD
FInD THe FACtS
Don’t buy a home blindly; have your real estate agent provide
market research so you can have all the facts before purchasing a
home. Seller’s market? Go in STRONG on your offer, or you might lose
the home.
AAGeNt
!
F
PAInT
QUALIfY FoRA LoAN
RePAIrS
SCHoOl DIStRICts
Even if you don’t have kids at home, a great
school district has huge benefits to home buyers.
Not only does a desirable school district
boost your home’s resale value, it also
provides some protec-tion against price fluctuations in the
market.
Making minor repairs before listing your home
can make a major impact. Fix dripping
faucets, replace broken tiles, and patch cracks
and holes in the walls so that your home is ready
to shine.
When trying to sell your home, remember that
color is very taste specific. Avoid alienat-ing potential buyers by choosing neutral hues such as off-white, gray
or light brown.
qApply for your mortgage loan before you begin
your search, so that you know how much you can afford to spend and your paperwork will ready to present with your offer.
VISIoN
WALK-THrOUgH INsPeCTIoN
ZoNInG
There are A LOT of documents required in buying a home. Get all paperwork organized in a folder before meeting
with your real estate agent or lender. For
instance, on closing day you’ll need:
- Proof of home insurance
- Your driver’s license or photo ID
- A certified or cashier’s check
Zoning can be an unexpected headache when neighbors run a
disruptive home business or block your lake view with a second story addition. Find out
about zoning laws before you close and avoid nasty zoning
surprises.
Before closing, you’ll want to take one last
walk-through of the home and make certain that it’s
in the agreed-upon condition. Make sure that
required repairs were made and that nothing
has gone wrong with the home since signing the
contract.
Don’t let horrible paint and bad art distract you from seeing a house with good
bones. Instead, use future vision—seeing the home for what it
could be after you’ve made all of those
cosmetic changes.
Don’t wait to find out if your home is subject to
multiple property tax authorities. States, counties, cities and
special districts—such as water, sewer or schools
organizations—may have taxes of their own.
YEArLY TAX RAtEs
X ALl THe BoXEs
UPDAtEs
Y
TImINg
Work with your agent to understand the timing of paperwork, inspections, approvals, moving dates
and more. Your agent should keep you apprised of progress—every step of
the way.
A few updates can go a long way when selling
your home. Investing in fresh paint or new countertops in the
kitchen may make all of the difference in winning
over hesitant buyers.
S
X
P
Visit briggsfreeman.com and �nd your luxury home today.