|
How
can I be sure there are no problems with the home I am buying?
A common procedure is that your offer is made contingent upon
a written approval of a full home inspection. Hire a professional
home inspector - licensed, bonded, insured and certified. You
may expect to invest $250-$400 for this service. Request tests
for Radon gas and lead-based paint. You'll learn a lot by attending
the inspection.
Should
the inspection reveal material defects, the buyer may negotiate
with the seller to have the problems fixed or the sales price
adjusted. With an inspection clause in the contract, you may back
out if a resolution is not achieved.
RETURN TO QUESTIONS
Who
determines what the price of a home is?
Despite all the experts, the seller sets the asking price, and
the market determines the selling price. If the home does not
sell fast enough, the seller will usually lower the asking price.
So, time is also an important factor. Time may motivate both
seller and buyer.
Best
price references:
-
Comparables. Homes in your area recently sold.
-
Competition.
Homes in your area now for sale.
-
Ratio.
Number of potential buyers and number of homes available.
-
Market direction. Are prices rising or falling?
-
Incentives.
What the seller is willing to offer to sweeten the deal.
How much will it cost to have a real estate consultant
represent me in a home purchase?
The cost of a Buyer's Agent will be FREE to the buyer, since
the seller pays the commission when a home is purchased. A Buyer's
Agent will look out for the buyer's interests. We specialize
in this service. For more info on this topic click
here.
RETURN TO QUESTIONS
What is mortgage insurance, PMI?
Most lenders require private mortgage insurance (PMI) when the
borrower's down payment is less than 20% of the purchase price.
This protects the lender against default on the mortgage. Lender-paid
insurance or increasing the interest rate to cover the insurance
cost are two of several alternative solutions.
RETURN TO QUESTIONS
Are interest rates going to be any lower?
Possibly. Will they increase? Definitely! But home buying should
not be based on one factor only - especially interest rates.
A bad buy at 0% is a bad buy. A good buy at 10% can be a good
buy. With interest rates now at a 40-year low, the time to buy
is now. But what about next year? The time to buy will be then.
RETURN TO QUESTIONS
What is a CMA?
A Comparative Market Analysis (CMA) compares your home with
similar ones on the market in your neighborhood during a specified
time period. This data, combined with the value of upgrades,
will give you an accurate picture of your home’s worth.
RETURN TO QUESTIONS
How
often should I get a CMA?
When
buying, selling or refinancing, a CMA is essential in setting
price and in choosing advantageous timing. Other reasons to run
a CMA include: to obtain a realistic picture of your net worth,
to provide adequate replacement insurance, or to leverage your
equity. Remember, your personalized CMA is a "snapshot" captured
in time, while the real estate market constantly fluctuates; therefore,
it’s a good idea to obtain a new one each year.
RETURN TO QUESTIONS
What
is a Buyer's Agent?
A
real estate professional, as a transaction agent, may represent
the Seller, the Buyer, or neither. Typically the Listing Agent
represents the Seller, and the Buyer's Agent represents the
Buyer.
The
role of a Buyer's Agent
-
Show any available home for sale in the neighborhood of
the Buyer's choice
-
Supply
background information on homes and the neighborhood
-
Assist
with purchase documents, mechanical inspection and walk-through
-- as desired
Professional
Responsibilities
- Total
commitment and effort on behalf of the Buyer
- Confidentiality
and loyalty to the Buyer
- Protect
the Buyer's interests
Benefits
to the Buyer
- No
cost to the Buyer
- Peace
of mind with loyal professionals protecting the Buyer
- Long
term profitability because of wise decisions
- Best
overall picture of available property and financing
RETURN TO QUESTIONS
What
is PITI?
PITI
= Acronym for Principal & Interest + Property
Taxes + Homeowners Insurance, which makes up your
mortgage payment. Sometimes included is PMI (mortgage insurance)
and homeowners association or condo dues.
RETURN TO QUESTIONS
What
is Homestead and do I qualify?
The
homestead exemption for real property tax purposes provides
an owner of property with a $25,000.00 reduction from the assessed
value of the property thereby currently reducing the amount
of real property taxes by approximately $650.00 each year. Since
real property taxes are paid in arrears in Florida (just like
interest on your mortgage), this type of homestead exemption
is only available if the owner is the permanent resident of
residential property as of December 31 of the prior year and
owner makes application for the exemption at the property appraiser's
office on or before March 1 of the following year. If you are
widowed or permanently disabled, you may be entitled to an additional
reduction from the assessed value of the property.
RETURN TO QUESTIONS
|
.gif){kind=tracking}
