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HOME SELLING & BUYING TIPS
Tips for selling a home...
There are many important decisions to make
when selling a home. A Real Estate agent has
the knowledge and experience to sell your
home in a timely fashion and at a fair
market price. Here are some tips and things
to consider when selling your home.
Your home represents one of the most
valuable assets you have, therefore getting
a good price for your home is very
important.
Tips for buying a home...
Buying a home is one of the largest
purchases a person will make in their
lifetime. Therefore being properly educated
is key when making your decision. Here are
some tips to help you make and informed
decision.
Using a Real Estate Agent or going it alone?
The main reason that home owners decide to
sell their homes themselves is to save the
commission charged by a real estate agent.
The commission rate may vary, depending on
where you live or what agency you choose,
but it is generally upwards of 5%. Weighing
against that commission rate are the
advantages that having an agent offers.
Advantages of using a real estate agent:
-
Handling your own sale means you will be
responsible for placing ads, answering
phones and showing your home to
strangers, a real estate agent has
marketing systems in place for listing
and selling homes.
-
An agent will take the potential buyer
through the home at scheduled times, an
agent can sell the house, not just show
the house.
-
The Agent is experienced in the local
market and will help you determine a
proper selling price.
-
The agent will negotiate with the buyer
for you.
-
The agent can find qualified buyers.
-
An agent can offer advice on preparing
the house for a faster sale, and closer
to the asking price.
-
When your selling on your own buyers who
know you are saving on an agent’s
commission may offer less for your home,
wiping out the financial incentive to do
it all yourself.
Remember: a real estate agent probably knows
a lot more about the business of selling a
home than you do.
In the end the decision is yours. If you
have lots of spare time, and some experience
that will allow you to research the market,
establish a competitive price and then show
and sell your home, you may feel going it
alone is the answer. If your time is
valuable, the commission a real estate agent
takes will more than pay for itself.
Are you ready to move?
The home-selling process typically starts
several months before a property is made
available for sale. It's necessary to look
at a home through the eyes of a prospective
buyer and determine what needs to be
cleaned, painted, repaired and tossed out.
Ask yourself: If you were buying this home
what would you want to see? The goal is to
show a home which looks good, maximizes
space and attracts as many buyers - and as
much demand - as possible.
While part of the "getting ready" phase
relates to repairs, painting and other home
improvements, this is also a good time to
ask why you really want to sell.
Selling a home is an important matter and
there should be a good reason to sell -
perhaps a job change to a new community or
the need for more space. Your reason for
selling can impact the negotiating process
so it's important to discuss your needs and
wants in private with the REALTOR(R) who
lists your home.
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Finding a Good Real Estate Agent
The size and nature of a real estate
transaction requires an agent you can trust
to act in your best interest. Finding the
right agent can be a chore in itself.
Consider asking friends and neighbors for
recommendations, or use a service such as
Most Referred® Real Estate Agents, to find
agents that other agents would use. Before
settling on an agent:
Talk to several agents before picking the
one you want to work with.
Walk through your home with an agent to get
a feel for how that person will handle
prospective buyers.
Ask prospective agents how they plan to
market your home.
Don’t sign with an agent just because he or
she suggests the highest asking price.
Negotiate the broker’s commission prior to
listing your home, and sign for a limited
period of time—usually three to six months.
Remember: you're agent has a fiducairy
obligation to act in your best interest.
They are there to represent you in the real
estate transaction, and the value of their
skills and experience should not be
underestimated.
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Pricing Your Home for Sale
Today's consumers are comparison shoppers.
Although eager to achieve the best possible
return on their hard earned investment
dollars, they will shy away from properties
that are listed too high or too low.
Listing above market value, you will more
than likely sell your neighbor's house
instead of yours, or at the very least, risk
a lack of potential purchasers visiting your
home. By listing too low, you create the
impression that you are desperate for the
sale, or that something is seriously wrong
with the structure.
Your Real Estate Agent will provide a
Comparative Market Analysis (CMA) that
includes information on competitor listings,
properties that have recently sold, and
those that are currently pending. Factors
affecting the price of a home:
-
The property's location and lot size.
-
The home's condition, size and age, and
any improvements you have made.
-
Review the assessed value of your home,
taxes, and utility costs.
-
Repairs required.
-
Economic conditions
-
Supply and demand in the local housing
market
-
Seasonal influences
-
Local schools
-
Average home prices in the neighborhood
-
Your home's extras -- pool, fireplace,
central air, etc.
Buying or selling property in today's
fluctuating and competitive marketplace
takes industry knowledge, a proven track
record, and expert opinion. It also takes
dedication, commitment and the ability to
achieve the goals set before you. When
discussing the critical factors in the sale
of any property, your Real Estate Agent's
expert opinion will guarantee that your home
is accurately positioned for market
dominance.
In the end, it's still your choice as to
pricing. However, by taking into account
years of professional experience and real
estate wisdom, you increase the possibility
of selling your home within the critical
first 30 days for the highest possible sale
price, or achieving a fair market price for
the home you are purchasing.
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Disclosing the Facts about your home
No home is perfect! In one way or another,
they all have defects to some extent.
However, concealing problem areas can result
in costly lawsuits....at your expense! The
horror stories come in many forms. During
the height of purchasing excitement, not
everyone will notice the cracked foundation
or faulty roof that leak only when it rains,
turn on the hallway light to experience
electrical gymnastics, or even flush the
toilet to watch it overflow because the
septic lines are blocked.
Undisclosed defects can come back to haunt,
destroying what you originally considered
protected....your pocketbook and peace of
mind! It is in both your best interest and
that of your purchaser to obtain a
structural inspection during contract
negotiation. Settlement and legal fees cost
far more than if you had agreed to a price
concession or repaired it yourself!
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Home Repair Priorities - for selling your
home
You consider your home one of your most
prized possessions. You have lavishly
decorated to individual taste, using paint
and wallpaper as expression of your
personality. Eyes glued to yet another
magazine, you finally found the perfect
window treatment. Your furniture reflects
the colors and textures that have become
important over the years. And don't forget,
you DID spend hour after weekend hour bent
over that magnificent garden. However, it
will cease to matter once you sign the "For
Sale" agreement. The paint, the drapes and
the carpeting mean nothing to those outside
the family. And that lovely bathroom tile
you imported from some exotic land isn't
even mentioned. How could they NOT notice
that you spent a great deal of money and
months waiting patiently for it to arrive at
the shipyards?
The answer is simple... your potential
purchasers are not emotionally involved in
your investment. Unlike you, they see the
flaws you have come to ignore over the
years. They will notice the carpet your cat
has used as a scratching post, the tap that
drips incessantly, and the ugly stain in the
kitchen caused by the leaky roof. To them,
it's nothing but added expense, and probably
not worth the effort. After all, there are
many, many more properties on the market
other than just yours. However, the
marketability of your home WILL increase if
you take the time and effort to view it
through their eyes, and take extra care in
ensuring that minor things are attended to.
One sure way of guaranteeing that your
potential purchasers can see themselves
enjoying life in your home, is to make it as
presentable and uncluttered as possible.
What is known in the industry as "curb
appeal" may become the difference between
"Sold" and "continued showings". The tiny
handprint that adorns the front door is cute
only to you. To the other side, it's a
combination of filth and downright laziness.
Despite the cost of a can of paint, your
family room should NOT resemble a mud-room.
And remember the sun shining through the
windows? A little bit of elbow grease goes a
long way!
When the time comes to list your home for
sale, take into account that your potential
purchasers are searching for new roots. They
need to be enticed, enthralled and enchanted
at first glance. It needs to feel like THEIR
castle, THEIR history, THEIR love story the
moment your home comes into view. If expense
is a concern, do it yourself. If there's
litter in the front yard or the grass needs
cutting, hire the teenager next door. Five
dollars a time REALLY CAN make the
difference! If not, there are numerous
contractors, painters, decorators, cleaning
services, and landscaping firms that your
Real Estate Agent can recommend. For the
more major repairs including replacement
roof, flooring or structural defects,
etcetera, you can opt to invest in the
repair, or you can choose to disclose this
information in the Listing Contract.
Also pay attention to the "finishing
touches" - the serene background music, the
tidy bathroom , the made beds, and the
bouquet of flowers. Open a few windows, the
air will be fresher. A welcome mat at the
front door is inviting, and please, no
laundry running in the machines while you
attempt to catch a few more minutes of lost
time! By being ruthlessly honest in your
evaluation of your home prior to listing,
you will:
Position your home at the top of the "Too
See" list
Guarantee that your own roots will be
transplanted sooner rather than later
Protect your hard earned investment dollars.
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Curb Appeal - Appearance is everything.
When potential buyers drive by your home
what do they see? A good first impression is
key bringing in potential buyers.Take this
list into consideration when looking at the
outside of your home:
-
Is the yard well maintained? Lawns
mowed, hedges trimmed?
-
Are garbage and debris stored out of
sight?
-
Are lawn mowers and hoses properly
stored?
-
Is the garage door closed?
-
Does the house need painting- the window
casings, shutters, siding or doors?
-
Are there cracks in the foundation or
walkways?
-
Does the driveway need resurfacing?
-
Are the gutters, chimney and walls in
good condition?
By taking care of the little and often
inexpensive details you can sell your home
faster and at the price you are looking for.
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Preparing Your Home for sale
A real estate agent can be a helpful guide
for setting up a home to be sold. Their
experience allows them to prepare a home for
an easier sale. If the potential buyer makes
it past the outside, it’s the interior of
the home that makes the sale. Remember,
there are plenty of easy and inexpensive
improvement that you can make to improve
your home’s interior.
A clean home is your
number one priority.
Your windows, floors and bathroom tiles
should sparkle. Make sure you have clean
heating and air conditioning filters.
Shampoo dirty carpets, clean tubs and
showers, repair dripping faucets and oil
squeaky doors. Keep your home neat, clean
and picked-up at all times. It may not seem
fair, but a peek in the oven may be the
hallmark by which a buyer judges how well
you have kept up your home. Consider how
your home smells. You may be used to the
smell of a pet or cigarettes, but such odors
can be a strong turn-off to potential
buyers. Insure that your storage areas are
tidy, and remove materials that may be to
others who may not share your same views,
beliefs or sense of humor.
Creating a vision
The buyers need to be able to visualize
themselves living in your space, too much
clutter can be a distraction that makes it
harder for them to achieve that vision. If
you have too much furniture consider putting
some in storage. Not enough furniture try
renting some. If you need some ideas visit a
show home to see the levels of furnishings
and decoration that is not too distracting.
Define living spaces
Having a living room/office/dining room/
storage locker can be a negative to buyers,
not having an obvious purpose for a room
makes it look less useful. Rearrange
furniture to create focus areas inside of a
larger room, define the spaces through a
good layout.
Power of Paint
Painting is an inexpensive and easy way to
give a room a makeover. You can paint a room
in less than a day. If a room needs a fresh
coat of paint, use a neutral off-white.
Provide a blank canvas for them to create
their vision. Light colors make the rooms
seem larger, and airier. A fresh coat of
paint also looks cleaner.
Security
Be certain to remove valuables such as
jewelry and other items from view. It might
be wise to put these items in a safe deposit
box before showing your home.
Setting the Mood
On the day of a showing give you house a
homey feeling, put out some live flowers and
fresh guest towels in the bathroom. Place
scented potpourri around the house or, pop a
batch of frozen cinnamon rolls into the oven
for a welcoming aroma. Remember, cosmetic
changes do not have to be expensive, and
giving the impression that your home is well
maintained will help you get the price you
want.
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Changing Homes – time becomes money
If your are buying a new home and selling
your current one, place your home on the
market as far in advance as possible of
purchasing a new one. Selling your home
prior to purchasing a new on allows you
greater flexibility in financing as well as
the piece of mind of not having to worry
about selling that home after you’ve moved
into your new one. Depending on market
conditions you may be better off selling
your current home and renting until you find
the right home for you. If you find a new
home first and then try to sell your present
home, you may wind up with two mortgages,
and in a financial position that threatens
both properties. A real estate agent may be
able to provide you with advice on current
market conditions, and the potential
challenges you may face.
Also keep in mind that many events need to
be coordinated when you sell and buy for
example closing and moving dates have to be
arranged. Put all agreements about dates in
writing, and protect yourself by negotiating
financial penalties for failure to comply.
The firmer everyone commits to a window of
dates and sticks to them, the better for all
involved.
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Qualifying
a Buyer
At some point either your or the agent will
need to determine the viability of a
potential buyer. Identifying whether a
potential buyer will be purchasing your home
or not, depends on several factors:
-
The buyer's debt and credit history
-
The buyer's current income and
employment
-
The buyer's cash position and
availability of a down payment
-
The length of time the buyer needs
before closing on your home
-
How interested the buyer appears to be
in your home versus other homes
Don't underestimate the time that it takes
to deal with each potential buyer. Having
the skill to determine if a person is
serious and able to purchase your home can
save you a lot of time and headaches.
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Real Estate Sales and Taxes
Selling a home can have a major impact on
your tax returns. A tax consultant can help
you determine the effects that selling your
home would have on you. Here are some
factors that could effect your taxes:
-
Whether you purchased the home or
acquired it by gift or inheritance
-
Whether you used your home partly for
business or rental
-
Costs associated with selling your home
Home improvements or additions, which may
help to offset capital gains
The sale of your home. In certain cases you
can exclude up to $250,000 in gain ($500,000
for married couples filing a joint return)
on the sale of property that was your
principle residence for at least two years.
Generally, you can use this exclusion every
two years.(USA)
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Seek
Legal Representation
When selling your home it’s a good idea to
be represented by an attorney especially an
attorney with expertise in real estate
transactions. When a potential buyer puts an
offer in writing and you accept it, the
signed acceptance becomes the sales
contract. Your attorney can help you protect
your interests with the sales contract at
the closing .
Elements of a sales contract:
-
The Sale price
-
Items included in the purchase.
-
The amount of the down payment
-
The date of settlement and possession
date
-
Contingencies to the sale--inspections
(e.g. structural, lead-based paint,
radon), required improvements, legal
review of the contract by the buyer's or
seller's attorney, etc.
-
The amount and length of the mortgage
loan, interest rate and time limits to
secure the loan.
-
Determining which closing costs are to
be paid by the buyer and which by the
seller
-
The fee you pay the lawyer can easily be
offset in the long run.
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Paying too much for a home
Without the aid and assistance of a
professional Real Estate Agent, purchasers
often pay far more than fair market value.
It is not uncommon to hear horror stories
where thousands of dollars were wasted
because the market was unknown.
Market areas differ - what you sold your
last home for does not necessarily equate to
equal pricing structures in your new
neighborhood. Your Real Estate Agent will
know what is locally considered good value
for investment dollar. If you are relocating
to a new city, engage the services of a
local Real Estate Agent who intimately
understands the fluctuating market trends
and will provide a comparative market
analysis on the home you wish to purchase.
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Finding and Purchasing the Right Home
Once you've decided to make a move, how do
you go about it?
When it comes to the largest purchase in
one's life, the key phrase is "you'd better
shop around". Don't settle on the first home
you see. Most Referred® Real Estate Agents
have been pre-screened by a national survey
of their peers and were chosen for honesty,
integrity, market knowledge and experience.
Their expertise will be a tremendous help as
you consider your home purchase.
Some of the things you need to consider when
buying a home. The neighborhood and the
market values. The schools, transportation
and shopping available. Specific home
features you may require. Local traffic and
commuter patterns for work.
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Making House Hunting Fun
There's no shortage of information available
to help you make an informed purchase
decision. Take the guesswork out of shopping
for a home by taking advantage of all the
professional resources available to guide
you through the many choices available when
purchasing your first home. Your real estate
agent will be able to find listings for you,
based on your wish list. But don't stop
there! You can do your own looking, and then
ask your agent to show you the house. Start
with the Internet. Pick up real estate
flyers at local grocery stores and
convenience stores. Read the real estate
sections of your local newspaper. Drive
around neighborhoods that interest you and
write down addresses where there are "for
sale" signs. Go to open houses. Try
everything!
If you don't enjoy the house hunting process
have an agent narrow down the search for you
and view the homes they have pre-screened
for you.
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Buying a home? look at the neighborhood
Once you locate a home that appears to fit
everyone's needs, take a second look! If you
originally viewed the property on a weekend,
drive by during weekday rush hour. Check
with the local municipal authorities to see
if a major highway plan is in the works -
one that will produce a backyard oasis of
incessant noise. Investigate airport
extensions and shopping center improvements.
Heavy traffic blaring into your quiet
serenity can destroy your solitude.
Consider your outdoor lifestyle. Do you hold
family barbecues, enjoy sitting outside, or
invite family and friends to vacation with
their recreational vehicles in your
backyard? In many cases, excessive traffic
noise can hamper a quiet conversation by the
creek. You many also find out for the first
time just how lightly you sleep. There are
also the potential toxic fumes leaking from
vehicle exhaust. Do you want your children
and yourselves breathing this in? It may
take only a month or two to realize the
grave mistakes you've made.
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The
"Fixer-Upper" home
Buying a home that is too much of a
fixer-upper is a common mistake. You've
heard the stories or maybe even made the
comments yourself, "It's only superficial,
and It won't take too much money to fix
that, we can renovate on the weekends, or I
didn't realize it would consist of hiring a
structural repair artist." Nightmares happen
when you take on more than you can handle.
Purchasing a fixer-upper can equate to
replacing everything and still ending up
with a very expensive brand new old car!
Understanding what types of repairs a home
needs and the potential cost and time
required for each of these repairs is
essential for making an educated purchase.
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Buying outside of your Budget
We are all familiar with more funds going
out than what is coming in. Kids these days
always want the best regardless of whether
they can really afford it or not. It is easy
for a Real Estate Agent to nod their head
and make the quick commission, fully
realizing that one-year later when the
marriage is on the rocks that they will be
earning another commission as the property
is on the market again.
Careful budgeting is the order of the day!
First time purchasers be warned that it is
very easy to buy beyond your means, as you
count on dual incomes until the new baby
arrives. It is better to buy the home you
need and con comfortably afford than
experience being forced to sell and buy
down. House rich and cash poor is not the
way to experience life!
On the opposite end of the scale is
purchasing a home that offers less function
and feature than what you really need.
Inevitably, you will end up purchasing the
right home and have to bear the cost of
reselling and moving again.
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Over or Underestimating Your Housing Needs
A $10,000+ mistake can occur when you
purchase with only the immediate timeframe
in mind. You opted for no family room, and
three months later are delighted to learn
your first child is on its way. Or your
children all leave home in the same year and
now you find yourself rambling around in
empty rooms! On the other hand, when parents
downsize too early, they find their adult
children have rebounded with a few extra
additions! Consider all your options
carefully. Saving your hard earned money is
a definite plan!
Try using our wish list to help you identify
the features you need.
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Overlooking Schools and Children
A critical error you can make it to forget
about the needs of your children. Is your
new home close enough for the children to
walk to their new school, is there bus
service just down the street, does the
school offer academics suitable to your
children's needs, or is it right next door
and you've reached a point in your life
where you would prefer quiet solitude?
Caught up in the passion of your new home,
it is easy to overlook and undermine these
questions. After six months of taxiing your
children to and from school, you may find
yourself experiencing the need for more
freedom. By graduation, your children may
find that had they attended another
secondary school, the university
prerequisites would have been fulfilled. You
may thoroughly enjoy sitting alone in your
private backyard only to find recess noise
and the school's outdoor gym activities
hamper your need for solitude. Determine the
answers with your Real Estate Agent before
signing on the dotted line!
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Yard
Maintenance
The thought of your own swimming pool, the
manicured lawns, or the beautiful English
garden in full bloom. It's lovely to look
at, but do you want to spend the time
required to keep everything in top working
order? Do you have the funds required to
hire a full-time landscape architect? In
some cases, you may be better suited for
townhouse living where yard maintenance is
part of the contract, and the local
recreation center offers swimming and
exercise programs tailored to your lifestyle
needs.
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Municipal By-Law Restrictions
Educate yourself! Consult with your Real
Estate Agent and local municipal authorities
to learn of any abnormalities and
restrictions that apply to the property. Do
you intend on converting the basement into
an in-law suite? Can you run your commercial
business from home? Is there a senior's
residence next door that prohibits noise
after 9:00 p.m.? Can you park your
recreational vehicle in that three-car
driveway?
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Looking for Structural Defects
Consider an independent home inspection.
Careful examination by a professional will
remove all doubt! Is that tiny crack in the
foundation a repair nightmare or merely
settlement? Are the walls infested with
termites? Does your budget have room for
thousands of dollars in reconstruction
costs? For a few hundred dollars you can
obtain an extensive inspection report that
will point you to any structural defects in
the building. Ascertain the cost of repairs
prior to entering into a binding contract.
Write your purchase contract subject to a
satisfactory home inspection so you can
renegotiate if the repairs are beyond your
current budget. Or opt for another home more
suitable to your needs.
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Closing Your Real Estate Transaction
Occasionally the closing date will be
jeopardized just days prior to settlement.
Arrange a 60-day locked-in interest rate at
application time. Homeownership is the
largest single investment you will most
likely make during your life. It's in your
best interest to be educated. Pay close
attention to every detail and you will win
at the real estate game. Your Real Estate
Agent's responsibility is to make sure you
succeed by avoiding the top sixteen errors
purchasers most commonly fall prey to. After
all, your Real Estate Agent's reputation
depends on referrals generated from 100%
client satisfaction!
Here's a list of the costs you can expect
when closing your loan:
-
Mortgage fees
-
Administrative fees
-
Application fees
-
Appraisal fees
-
Survey fees
-
Loan origination fees
-
PMI
-
Points
-
Title Insurance
-
Credit report cost
-
Future interest payments, depending on
the loan terms
-
Title fees
-
Title transfer fees
-
Recording fees
-
Additional state or local taxes (could
include property taxes)
-
Insurance
-
Homeowner's insurance
-
Flood insurance, if required by law
-
Other professional fees
-
Attorney fees
-
Escrow company fees
-
Closing company fees
-
Key Closing Documents You'll Receive
HUD-1 Settlement Sheet
This itemizes the services provided and the
charges to the buyer and the seller. You
should be allowed to review this form
shortly before your closing meeting so you
know your closing costs in advance.
Truth-in-Lending (TIL)
Disclosure
You should be mailed your initial TIL
disclosure within three business days of
applying for a home loan. It outlines the
costs of your loan and discloses the annual
percentage rate (APR) and other terms of the
loan, including the finance charge, the
amount financed, the payment amount and the
total payments required. Since it's possible
that the APR calculated at the time of your
loan application will change a little before
closing, your lender is required to give you
the final version of your TIL disclosure at
or prior to the closing meeting.
Deed of Trust or Mortgage (also known
as the Security Instrument)
These documents convey a lien in your
property as security for repayment of your
home loan. (This means that if you default
on your loan, your lender has the right to
foreclose your ownership interest and take
possession of the property.)
The Note
The mortgage (or promissory) note represents
your promise to pay the lender according to
the agreed terms. It includes the dates on
which your home loan payments must be made
and the location to which payments must be
sent.
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Home
Buyer's Wish List
Location:
What part of town (or country) do you want
to live in?
Do you want to live in an area with a
Community Association?
Community Amenities:
Shopping near by
Fitness Center / Gym
Community swimming pool
Golf course
Basketball court
Tennis courts
Clubhouse/activities
Gated community
Do you need access to schools?
Do you have to be close to public
transportation?
General Home Features
What price range: Min:_________ Max:________
Type of House?
One story
2 story
Townhouse
condo
mobile home
What age range are you looking for ?
What style house appeals to you most?
Contemporary
traditional
southwestern
colonial
no preference
How much renovation would you be willing to
do?
Do you have any animals that will require
special facilities?
If so, what?
The Lot
Large yard (1 acre or more)
Small yard (less than 1 acre)
Fenced yard
Garage Carport
Patio/deck
Pool
Outdoor spa
Extra parking
Other buildings (barn, shed, etc.)
Special view of what?
The Interior
How many bedrooms: must have?____ like to
have? ____
How many bathrooms?
How many square feet? Min:_______ Max:______
Features of the House?
Eat-in kitchen
Separate dining room
Formal living room
Family room
Separate den or library
Full Basement
Laundry room
Workshop
“In-law” apartment
Spa in bathroom
Air conditioning
Fireplace
Floors:
Wall-to-wall carpet
Ceramic tile
Hardwood floors
No interior steps _____
Lots of windows (light) _________
Special Features? ___________
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