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50 Facts About Owning a Home |
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Home ownership is one of the most important steps you'll ever take. It often
involves buying, selling, moving and financing. To make the best decision
possible, you need to know the facts and work with a qualified sales
professional.
Your Real Estate sales professional has effective and proven processes in
place to help you find a home or sell your current residence.
The Home Buying System is a step-by-step approach that allows you to examine
your housing and financing needs even before you start looking.
The exclusive Home Marketing System is a well-organized strategy that is
designed specifically for home sellers. This process will help bring the
right buyer to your door-ultimately closing the deal. |
General Facts |
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#1 |
Older homes appeal to many buyers, but newer homes may offer more for the
money |
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Newer homes
are usually more energy efficient, easier to maintain and have better
plumbing, wiring and mechanical systems. They have many features and
accessories that aren't found in older homes-or which could be costly to
install. |
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#2 |
Young people are not priced out of the market |
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Younger
persons to make up the vast majority of home buyers. The National
Association of Realtors found the average age of first time buyers to be
31 years. |
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#3 |
Money isn't the only thing to consider when buying a home |
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A house is
more than just a roof over your head. It creates a sense of stability and
identity for you and your family. It offers privacy, independence and self
sufficiency-needs money alone can't satisfy. |
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#4 |
Home ownership can be a good investment opportunity |
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Home ownership
offers a combination of advantages not found in other investments:
leverage, appreciation in value, financial security and ability to use the
investment (live in the home) while it's working for you. |
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#5 |
Renting does not protect you
against rising occupancy prices |
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Rental units
are just as susceptible as houses to rising taxes and insurance, utility
and maintenance costs-and the landlord will pass the costs on to the
tenant. |
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#6 |
Home ownership enhances your
overall financial credibility |
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As a
homeowner, you prove yourself in a number of ways: you're viewed as
prudent, credit worthy and self-sufficient when you take on the
responsibility of ownership. |
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Facts About Buying |
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#7 |
You probably can get a home
protection plan when you buy a house, whether it's old or new |
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When you buy a
new house, the builder should give you a protection plan to guard against
faulty materials or quality of work. With older homes, buyers in most
states can now obtain such a plan to protect them against major repair
expenses and breakdowns.
Note:
Ask your local Real Estate representative if the Real Estate Home
Protection Plan is available in your area. |
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#8 |
You can typically arrange better
terms if you check out financing before you look for a home |
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Shop around
for financing before you look at houses. Mortgage lenders should be able
to give you an idea of how much money they'll lend you based on your
income and credit rating. Knowing what you can afford helps you bargain
more confidently with sellers. Your Real Estate sales professional should
be able to suggest mortgage lenders in your area. |
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#9 |
Quality of construction is
important when you buy-even if you don't expect to be in the home very
long |
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You can't
afford to overlook quality of construction in a home purchase. Poorly
built homes can require costly repairs and maintenance and can waste
energy, too. Look for a house that works efficiently with a minimum of
cost and aggravation on your part. |
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#10 |
A professional inspection,
before you buy, can be a small price to pay for protecting your big
investment |
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Professional
home inspections cover the house form foundation to roof, including
plumbing, wiring, heating system, and so forth. The whole process takes
only a few hours, and the cost is nominal when you consider what it could
save you in the long run. |
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#11 |
Commuting costs should be
considered when making a purchase decision |
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Take time to
calculate your commuting costs to work, school, shopping areas and
recreational facilities. If your commute is very long, you'll pay more in
gasoline, as well as insurance and parking. |
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#12 |
The waiting game is losing game |
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If you've put
off buying a house waiting for prices to come down, you could end up
losing. While you wait, you live with less house than you probably could
afford, spending money on rental payments that could be going toward your
own home. |
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#13 |
Your equity in a home builds faster
if you assume an existing mortgage |
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When you
assume a mortgage, you'll probably need a larger down payment-but it can
be worth it if you find an assumable mortgage on the right house. |
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#14 |
It pays to look for an "anxious"
seller to get the best buy |
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The more
anxious a seller is, the more likely you are to get a better bargain.
Sellers often anxious when a house has been on the market a long time and
their moving day is drawing near. |
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#15 |
As an apartment renter, you may
face the dilemma of either buying your unit or moving out |
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Owners of
apartment houses sometimes convert their buildings into condominiums.
Consider the option carefully. If the terms are right, you could stay
where you are and start enjoying the tax benefits of home ownership. |
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#16 |
A condominium purchase agreement
has important bearing on your rights-and expenses-as an owner |
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Condominium
owners are buyers purchasing a relationship with their neighbors. Owners
decide how much to spend on repairs, improvements, management,
recreational facilities and more. Know where you stand before you sign any
contracts. Ask your Real Estate sales professional for a copy of
:Condominiums: right for Every Lifestyle." This brochure outlines
important information regarding condominium living. |
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#17 |
As a buyer, the services of a real
estate professional may cost you nothing |
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The real
estate commission fee is paid by the seller. And, since a majority of
homes are sold through real estate representatives, the overall
marketplace has the commission built in. You might save money buying
directly from a seller-at the expense of viewing a choice of homes in the
community. |
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Facts About Financing |
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#18 |
You can save money by shopping
around for your mortgage |
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Rates and
terms often differ from lender to lender, so check them carefully. Visit
local banks, savings and loans, insurance companies and other financial
institutions. Compare interest rates, appraisal fees, legal costs, points
and other fees. |
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#19 |
You can choose from several
different types of mortgages |
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Today, there
are many different kinds of mortgages available to home buyers. Depending
on which type you choose, your interest rate, down payment requirement and
monthly payment can vary greatly. Remember to ask your Real Estate sales
professional or your local lender about the mortgages available to you.
Your sales professional can also provide the brochure "Ways to Finance
Your Next Home" from Real Estate. It contains further details about
mortgages and general financing information. |
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#20 |
Government-insured home mortgages
are options if you don't have a large down payment |
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Government
-insured home mortgages are made by private lenders. This insurance
protects the lender if the borrower defaults and these loans are often
assumable. |
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#21 |
Mortgage terms can be negotiated |
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Once you've
selected a mortgage lender, you may negotiate terms. Lenders may give you
a break on items such as interest cost, down payment size, loan length or
prepayment penalties if you have other accounts with them. You might also
reserve the right to borrow more money at a prearranged interest rate-an
option called an "open end" clause. |
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#22 |
A bigger down- payment isn't always
the best way to go |
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A bigger down
payment means smaller monthly payments and a lower interest expense over
the course of the loan. But a smaller down payment may allow you to invest
leftover funds in accounts that earn substantial interest-and you could be
dollars ahead. Do the arithmetic both ways and seek the advice of your
lender on your options. |
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#23 |
A short-term mortgage will build
more equity for you in a shorter period of time |
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The shorter
the term of your mortgage, the less interest expense you'll have and the
faster your debt will diminish. And, if you owe less on your mortgage,
you'll also receive more cash when you sell. |
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#24 |
Interest rates on mortgages may be
high, but the interest is tax deductible |
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In most cases,
every cent of the interest you pay to the lender is tax deductible. The
benefits are the greatest in the early years of a mortgage when monthly
payments are made up primarily of interest cost. To understand this tax
deduction, always check with your tax advisor. |
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#25 |
It may not be advantageous to pay
off your mortgage early |
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Contrary to
what most people thing, reducing your mortgage debt may not always be in
your best interest. That extra money may be better used in your business,
as an emergency fund or in another investment. And, remember that once the
mortgage is paid off, you cant' get the money back until you refinance or
sell your home. You have to decide what's best for your family and your
budget. |
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#26 |
A prudent refinancing of your
mortgage can give you valuable financial flexibility |
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As the years
go by and your equity in the property increases, you might consider
refinancing to put some cash in your pocket or to lower your monthly
payments. Weigh the costs against the advantages before refinancing. |
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#27 |
A second mortgage on top of a
low-rate first mortgage may be cheaper than refinancing |
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Sometimes a
combination mortgage is a better solution than a complete refinance. Your
monthly payment may be higher due to the shorter term of a second
mortgage, but the interest savings may offset the monthly outlay. |
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#28 |
Be prepared to pay settlement costs
at the closing of your new home |
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Closing costs
can amount to a few thousand dollars and must be paid at the time of
settlement-so know what these costs are before closing. They can include
broker's commissions, lenders charges, prepaid items, taxes and other
charges. |
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#29 |
A lender may require you to buy
mortgage insurance |
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If you make a
down payment of less than 10 percent, you may have to buy mortgage
insurance that covers the lender in case you default. Usually the
first-year premium paid at closing varies according to the mortgage plan. |
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Facts About Ownership |
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#30 |
You can legally seek to have your
property taxes reduced |
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Procedures
vary from city to city, but you can appeal the tax assessment on your
home. If there is evidence that you're being taxed too heavily, you may
get a reduction-but only you or your attorney can take the steps to
correct the situation. |
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#31 |
It's a good idea to keep an
up-to-date record of your household possessions |
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If you ever
lose your possessions due to a fire or burglary, you'll want to have an
accurate list of household items to give your insurance company. Make a
written record of the items and take photographs; keep your records in a
safe-deposit box or other safe places. Ask your sales professional for a
copy of "Homeowners Inventory" to help you accurately record your
possessions. |
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#32 |
You can't afford to overlook the
primary tax breaks for homeowners |
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Currently,
mortgage interest and property taxes are deductible-two items that can
save you hundreds of dollars every year if you itemize the deductions on
your tax return. |
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#33 |
An "escrow" account with your
mortgage lender can help keep your family budget healthy |
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Many lenders
will set up a plan for you to pay an extra amount with your monthly
mortgage payment-money that's applied toward your property insurance and
tax bills. The lender takes care of the bookkeeping and bill paying, your
monthly cash flow remains constant so large, unexpected bills won't
disrupt your budget. |
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#34 |
Utility costs can be controlled
without sacrificing your comfort |
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Simple
energy-saving improvements to your home are inexpensive-yet they can help
you save on your utility bills and increase your comfort. These include
insulation, weather stripping, repacked faucets, low-flow shower heads and
adjustable thermostats. |
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#35 |
Preventive maintenance and a
reserve account for repairs and replacements can be excellent investments |
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Periodic
checks of your home's major systems and appliances can identify problems
before the become costly. Put aside a few dollars each month to help you
budget for inevitable maintenance and repair costs. |
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#36 |
Over-improve your house can be a
costly mistake |
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Improving your
home can increase your living pleasure and comfort-and often help you
recapture your costs later when you sell the home. But if you add too much
to your house, you risk pricing it out of the market. Extreme or highly
personal improvements may also discourage buyers with more conventional
tastes. |
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Facts About Selling |
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#37 |
You can expedite the sale of your
home if you've already investigated financial arrangements |
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Shortcut the
frustration of waiting while your buyer tries to get financing. Check with
your lender to see if your exciting mortgage can be assumed and what
financing might be available to qualified buyers through other lenders.
Consider, too whether you'd be willing to help finance the purchase based
on the buyer's good credit rating and your financial stability. |
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#38 |
A few hundred dollars for minor
improvements could mean thousands more when you sell your home |
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Don't let
minor problems discourage would-be-buyers. With the help of your sales
professional and some honest friends, survey the house to see where
improvements might make more attractive to buyers. Examples includes
improving the landscape; repairing and painting gutters; painting inside
surface; moving furniture to make rooms less cluttered; installing higher
wattage bulbs in the rooms; and cleaning closets. |
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#39 |
Your listing price should be based
on market comparison, not your emotional attachments to the home |
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The more
realistic your asking price, the quicker you'll sell your home. Talk over
the features of your home and your goals with your sales professional to
determine the best asking price. By following the steps in the Real Estate
Home Market Analysis, we'll help you match your goals with the best list
price. |
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#40 |
There's really no "best" time to
sell a house |
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It doesn't pay
to play the waiting game. If the housing market is strong, you'll get a
higher price for you house-but pay more for you new house. If the market
is weak, you might have to take a lower price when you sell-but you should
be able to get into another house afford ably. The time to sell is when
your family and financial circumstances determine it's time. |
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#41 |
Simple, inexpensive selling tools
can help a buyer decide to sign a contract on your house |
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You can help
your home sell faster and easier by giving your sales professional
additional information that will set your home apart in the prospective
buyer's mind. For example, sketch the home's floor plan; take photos of
your home's features and gather information on utility bills. |
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#42 |
If you reap a profit on the sale of
home, you can postpone or be excluded from having to pay income taxes on
the gain |
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Currently, the
taxes on a financial gain - such as selling your home for a profit - can
be postponed if you buy a home of equal or greater value within two years
after you sell.
If you
don't buy another home in this time period, that profit will be added to
your other income, and you'll be taxed at your regular rate. A one-time
exclusion from this taxation up to $125,000 is available if you or your
spouse are 55 years old when you sell. Ask your tax preparer for a current
update on this deferment/exclusion option before you sell. |
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#43 |
A good sales professional earns his
or her fee-and then some |
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You can try to
sell your home on your own, but you may be overlooking the vast resources
available to you when working with a real estate professional.
Through the
Home Marketing System, your Real Estate sales professional offers you a
comprehensive package of home-selling tools and marketing services that
include:
- Home Market Analysis
- Family Relocation Service
- Your Guide to Home (a photo listing of homes)
- Home Protection Plan
- Buyer's Needs Analysis
- Lender Information Worksheet
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Facts About Moving |
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#44 |
Your moving expenses may provide
you with a valuable income tax deduction |
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Currently,
your moving expenses may be deductible on your federal income tax return,
whether you're an employee or self-employed. Deductible expenses include
your pre-move house-hunting costs, transportation of your family and
possessions, and more. Keep proper records of all expenses and check with
your tax advisor to see if you qualify for the deductions. |
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#45 |
You have important legal rights
with moving companies |
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If you're
moving from state to another, the moving company is required by law to
give you the Summary of Information for Shippers of Household Goods
document. This spells out what your rights are and how you can protect
them. If you're moving within your state, check with your attorney
general's office for comparable state rules. |
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#46 |
In addition to the usual written
estimates of the cost of a move, professional movers now give binding
estimates |
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Binding
estimates are guarantees of your final cost, regardless of the weight of
your shipment. The advantage is you know your costs up front; and the
disadvantage is that your costs could be lower by having the shipment
weighed. Items and services added at the last minute can also change the
estimate can cause delays. |
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#47 |
You can save money by doing a
thorough cleaning of your home before the movers come |
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Movers load
everything that isn't nailed down, and you'll pay for it by the pound.
Before they come, get rid of the things you don't want or need-discard
items, donate to charity (and enjoy a tax deduction) or hold a garage
sale. |
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#48 |
A simple purchase can help make
your move a breeze |
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Often a moving
crew will unload items wherever if seems convenient, and you'll have to
move them later on your own. Instead, buy a template at a stationery
store. It's a stencil that shows various pieces of common household
furniture in cutout form. Make a floor plan of your new home and, using
the template, indicate where to put each piece of furniture. |
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#49 |
Moving carpets and draperies may
not be worth the cost |
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The expense of
moving, fitting and cleaning carpets and draperies may end up costing more
than replacing them. The weight of the carpet also will add to the cost of
your move. |
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#50 |
Packing and moving yourself can
save money, but it's a big job requiring planning and effort |
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Do-it-yourself
moving can be real money-saver-if you're willing to spend the time and
energy. It also depends on the distance involved and the size of your
load. Consider combining options: Hire a professional mover for the heavy,
bulky items while you take care of the smaller, easy-to-carry cartons. Ask
the moving company for the pros and cons of each method. |
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About Linda
Linda Sale has several years
experience as a realtor. Linda has the
ability to assist you in the process of
decorating, marketing, and delivering the
fine points of presenting your home to the
public. She is experienced in both listing
homes and finding just the right home for
buyers.
"If you want to sell your home, I will be
happy to present a marketing plan to you.
If you want to buy , we can find the perfect
home for you and your family."
I LIVE UP TO MY MOTTO ...
I FIND GREAT PLACES...
E-Mail Me Today!
CALL ME AT:
903-520-3384 |
