Home Buying Tips

Home buying guide for the first time home buyer


CUSTOMER LOG-IN CHECKLIST FOR BUYING A HOME FORMS & CONTRACTS TO BUY A HOUSE AGENTS & BROKERS: LIST HOMES FOR SALE


DOWN PAYMENT OR NO MONEY DOWN MORTGAGE LOAN TO BUY A HOME PRICE RANGE


NEIGHBORHOOD CHECKLIST CRIME RATES SCHOOL COMPARISONS PRICE TRENDS


MORTGAGE BASICS CREDIT RECORD & BUYING A HOME MORTGAGE LENDERS MORTGAGE BROKERS MORTGAGE SIZE


BUYING A NEW HOMES PRE-OWNED HOMES RELATIVE HOME PRICES BUY HOME TO SELL AT A PROFIT SELECTING A REAL ESTATE AGENT HOME BUYING INSPECTIONS VIEWING HOMES WORKING WITH AGENTS


EVALUATING ASKING PRICE NEIGHBORHOOD SELLING PRICES NEGOTIATNG POSITION SAMPLE OFFER COUNTER OFFER NEGOTIATING TIPS


COMPLETING THE HOME BUYING PROCESS CLOSING DETAILS THE SETTELEMENT STATEMENT


CLOSING COST MONTHLY MORTGAGE PAYMENTS MONTHLY COST OF INCREASING LOAN AMOUNTS PRE-QUALIFICATION OF LOAN AMOUNTS AFTER TAX COST OF OWNING A HOME LENDER'S VIEW OF MONTHLY MORTGAGE PAYMENTS




MANAGING THE MOVE HIRING A MOVER THE MOVING CONTRACT INSURING YOUR STUFF LOADING AND UNLOADING

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Okay, you know what price you're willing to offer. What about the other costs?

Closing costs
Repair costs

Most Sellers are emotionally committed to their asking price, but give less thought to Closing costs and Repair costs.

Getting the Seller to pay Closing costs and Repair costs can be worth more money than any reasonable reduction on the price of the home.
This is especially true if the Seller's asking price is within the range of selling prices for comparable homes in the neighborhood.

Problem
	We know the asking price...
	but we don't know the closing costs...
	and we have no idea about repair costs at the time when we have to make an Offer

Not to worry !

We don't need the numbers to assign cost categories to the Seller.

We can estimate closing costs

Closing Costs associated with a mortgage loan

By tradition in most states, the Seller pays the Buyer's costs in obtaining a mortgage loan. These range between 2% and 3% of the purchase price.

Typical mortgage costs for a $155,000 house
	Appraisal Fee	$310
	Credit reports	240
	Loan points	2,450
	Underwriting Fee	300
	Total:	$3,300

Make sure your Offer charges mortgage loan costs to the Seller.

Other Closing Costs

"Other" closing costs range between .5% and 1% of the purchase price. Your initial Offer should assign these costs to the Seller.

Other closing costs for a $155,000 house
	Attorney Fees	$450
	Property inspections	220
	Title Search	155
	Title Insurance	75
	Document Preparation	45
	Total:	$945

Repair costs are harder to handle...

	Actual repair costs depend on property inspection reports & building contractor bids that are not available when the Buyer makes his first Offer.
	Not to worry:
	If the Buyer noticed a rotting fence when he toured the house, he can insert a statement in his Offer requiring the Seller to repair the fence.
	If the Buyer's real estate agent has seen the gutters leaking, a statement can be inserted in the Offer requiring the Seller to repair the gutters.

	Rotting fences and leaking gutters can be handled as part of the Buyer's formal inspection of the property;
	But by that time the Agreement has been signed and the purchase price fixed.
	It's too late for the Buyer to offer to fix the fence himself in exchange for a $2,000 reduction in price.

Note: Real estate agents prefer to deal with unaltered, plain Offers. Some might:

Advise against making changes or additions to the standard Offer to Purchase form.
Suggest that changes or additions will invalidate the Offer form.

Additions and changes are made to Offer forms every day. Stand your ground and remind the agent that you're intent on getting the best deal possible.

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Home Buying Tips

Negotiating position: Buying a home at the best price