Helping you find the Perfect Spot.

Tips for Buyers

 

7 Reasons to Own Your Own Home       Back to TopBack to Top
1.
 Tax breaks. The U.S.  Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.
2.
 Gains. Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually.  And while there's no guarantee of appreciation, a 2001 study by the National Association of REALTORS® found that the typical homeowner has approximately $50,000 of unrealized gain in a home. 
3.
 Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4.
 Savings. Building equity in your home is a ready-made savings plan.  And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. 
5.
 Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer.  However, keep in mind that property taxes and insurance costs will rise.
6.
 Freedom. The home is yours.  You can decorate any way you want and be able to benefit from your investment for as long as you own the home. 
7.
 Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
To calculate whether renting or buying is the best financial option for you,
use this calculator courtesy of Ginnie Mae.

 

10 Things to Take the Trauma Out of Home Buying       Back to TopBack to Top
1.
 Find a real estate agent that's simpatico. Buying a home is not only a big financial commitment, but also an emotional one. It's critical that the agent you chose is both skilled and a good fit with your personality.
2.
 Remember, there's no "right" time to buy, any more than there's a right time to sell.  If you find a home now, don't try to second-guess the interest rates or the housing market by waiting. Changes don't usually occur fast enough to make that much difference in price, and a good home won't stay on the market long.
3.
 Don't ask for too many opinions.  It's natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
4.
 Accept that no house is ever perfect.  Focus in on the things that are most important to you and let the minor ones go.
5.
 Don't try to be a killer negotiator.  Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price may lose you the home you love.
6.
 Remember your home doesn't exist in a vacuum.  Don't get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it's like to live in your new home. 
7.
 Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving.  Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. 
8.
 Factor in maintenance and repair costs in your post-home buying budget.  Even if you buy a new home, there will be some costs.  Don't leave yourself short and let your home deteriorate.
9.
 Accept that a little buyer's remorse is inevitable and will probably pass.  Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.
10.
 Choose a home first because you love it; then think about appreciation.  While U.S.  homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is as a comfortable, safe place to live.

 

5 Reasons You Need a REALTOR®       Back to TopBack to Top
1.
 A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
2.
 Selling or buying a home is time consuming.  Even in a strong market, homes in our area stay on the market for an average of ____ days.  And it usually takes another 60 days or so for the transaction to close after an offer is accepted. Having a REALTOR® can help to avoid additional delays.
3.
 Real estate has its own language.  If you don't know a CMA from a PUD, you can understand why it's important to work with someone who speaks that language.
4.
 REALTORS® have done it before.  Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase.  And even if you've done it before, laws and regulations change.  That's why having an expert on your side is critical.
5.
 REALTORS® provide objectivity.  Since a home often symbolizes family, rest, and security, not just four walls and roof, home selling or buying is often a very emotional undertaking.  And for most people, a home is the biggest purchase they'll every make.  Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

 

Questions to Ask When Choosing a REALTOR®       Back to TopBack to Top
1.
 How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.
2.
 What designations do you hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.
3.
 How many homes did you and your company sell last year?
4.
 How many days did it take you to sell the average home? How did that compare to the overall market?
5.
 How close to the initial asking prices of the homes you sold were the final sale prices?
6.
 What types of specific marketing systems and approaches will you use to sell my home? Look for someone who has aggressive, innovative approaches, not just someone who's going to put a sign in the yard and hope for the best.
7.
 Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it's usually legal to represent both parties in a transaction, it's important to understand where the agent's obligations lie. A good agent will explain the agency relationship to you and describe the rights of each party.  It's also possible to insist that the agent represent you exclusively.
8.
 Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done? Keep in mind that agents should generally recommend more than one provider and should tell you if they receive any compensation from any provider.
9.
 What type of support and supervision does your brokerage office provide to you?  Having resources such as in-house support staff, access to a real estate attorney, or assistance with technology can help an agent sell your home.
10.
 What's your business philosophy?  While there's no right answer to this question, the response will help you assess what's important to the agent—fast sales, service, etc.—and determine how closely the agent's goals and business emphasis mesh with your own.
11.
 How will you keep me informed about the progress of my transaction? How frequently? Using what media? Again, this is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don't want to be bothered unless there's a hot prospect? Do you prefer phone, email, or a personal visit?
12.
 Could you please give the names and phone numbers of your three most recent clients?

 

6 Creative Ways to Afford a Home       Back to TopBack to Top
1.
 Investigate local, state, and national down-payment assistance programs.  These programs give loans or grants to cover all or part of your required down-payment.  National programs include the Nehemiah program (http://www.getdownpayment.com) and the American Dream Down-payment Fund from the U.S.  Department of Housing and Urban Development (http://www.hooksvanholm.com/).
2.
 Get the seller to provide financing.  In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do a mortgage. 
3.
 Consider a shared-appreciation, or shared equity, arrangement.  Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold.  The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors’ names are usually on the mortgage.  There are companies that can help you find such an investor if your family can’t participate. 
4.
 Get help from your family.  Perhaps a family member will loan you money for the down-payment and/or act as a cosigner for the mortgage.  Lenders often like to have a cosigner if you have little credit history
5.
 Lease with the option to buy.  Renting the home for a year or more will give you the chance to save more toward your down-payment.  And in many cases, owners will apply some of the rental amount toward the purchase price.  You usually have to pay a small, nonrefundable option fee to the owner. 
6.
 See if you can qualify for a short-term second mortgage to give you the money to make a higher down-payment.  This may be possible if you have a good income and little other debt.

 

8 Ways to Improve Your Credit       Back to TopBack to Top

Credit scores, along with your overall income and debt, are a big factor in determining what loan terms you'll be able to qualify for.

1.
 Check for and correct errors in your credit report.  Mistakes happen, and you could be paying for someone else's poor financial management.
2.
 Pay down credit card bills.  If possible, pay off the entire balance every month.  However, transferring credit card debt from one card to another could lower your score. 
3.
 Don't charge your credit cards to the maximum limit.
4.
 Wait 12 months after credit difficulties to apply for a mortgage.  You're penalized less for problems after a year.
5.
 Don't order items for your new home you'll buy on credit such as appliances until after the loan is approved.  The amounts will add to your debt.
6.
 Don't open new credit card accounts before applying for a mortgage.  Having too much available credit can lower your score.
7.
 Shop for mortgage rates all at once.  Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time. 
8.
 Avoid finance companies.  Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation.

 

Tips for Packing Like a Pro       Back to TopBack to Top
1.
 Develop a master "to do" list so you won't forget something critical.
2.
 Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.
3.
 Don't throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you'd feel if you no longer had it.
4.
 Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.
5.
 Decide what if anything you plan to move yourself. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you.
6.
 Use the right box for the item. Loose items encourage breakage.
7.
 Put heavy items in small boxes so they're easier to lift. Keep weight under 50 lbs. if possible.
8.
 Don't over-pack boxes and increase the chances they will break.
9.
 Wrap every fragile item separately and pad bottom and sides of boxes.
10.
 Label every box on all sides. You never know how they'll be stacked and you don't want to have to move other boxes aside to find out what's there.
11.
 Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.
12.
 Keep your moving documents together, including phone numbers, driver's name and van number. Also keep your address book handy.
13.
 Back up your computer files before moving your computer.
14.
 Inspect each box and all furniture for damage as soon as it arrives.
15.
 Remember, most movers won't take plants.

 


Information for Buyers