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Home Buying 101 category.

Friday’s Featured Listing - Living Luxuriously at the Jersey Shore

RISMEDIA, May 9, 2008-The Robertson Douglas Group, one of the Jersey Shore’s premier custom home builders, has selected Diane Turton, Realtors as the listing agent for Hoffman’s Marina, an elegant enclave of town homes in Brielle, New Jersey.
Prospective buyers can now tour a furnished model at RiverVue, which is on the Manasquan River, and see […]

Are You Relying on Outdated Listing Information?

Commentary by Errol Samuelson
RISMEDIA, May 8, 2008-When you shop for milk at the grocery store, “best if used by” labels alert you to the age of the product and keep you from buying a quart that’s about to spoil.
Freshness counts in real estate, too. Whether you end up the owner of the home of your […]

10 Red Flags for Home Buyers

RISMEDIA, May 5, 2008-The average home buyer views at least 10 homes over an eight week search so it isn’t practical to get a professional inspection of every house they tour. FrontDoor.com, a new real estate website powered by HGTV, comes to the rescue pointing out things to look for in your own pre-inspection that […]

How to Buy a Home ‘South of the Border’

RISMEDIA, April 10, 2008-Spending time south of the border has always been a favorite vacation option for Americans. But now, an extraordinary number of U.S. citizens are putting down roots in the sandy shores to the south and snapping up second homes in Mexico, Panama and neighboring locales. The numbers are remarkable.
“One and a half […]

How to Make This the ‘Perfect Spring’ to Buy a Home

RISMEDIA, April 4, 2008-For home buyers, this might be called the “perfect spring,” when conditions have come together to create a rare and excellent opportunity to buy a home, says Diane Turton, broker of record at Diane Turton, Realtors. In fact, for the first time in 30 years, home buyers can take advantage of low […]

6 Things to Keep in Mind When Looking for Mortgage Financing

RISMEDIA, March 26, 2008-There are six critical things prospective home buyers need to do in this sometimes confusing market, says Kansas City mortgage expert Bruce Brown, founder of the website http://www.MortgageAnswersFast.com.
“There is an excess of housing inventory right now and that makes it a good time for buyers to get into the market. Lower prices […]

Tougher Home Purchase Standards May Result in Big Down Payment

RISMEDIA, March 25, 2008-(MCT)-Would-be homeowners with middling credit scores are finding mortgages difficult to come by as wary lenders clamp down on credit. Credit score guidelines for conforming loans-loans eligible for purchase by mortgage giants Fannie Mae and Freddie Mac-tightened in late February, said Brian Goode, president of Badgerland Mortgage Group Inc. in Racine, Wis.
Customers […]

C.A.R. and the Los Angeles Times Team up to Sponsor Free Home Buyer’s Fair

RISMEDIA, March 25, 2008-The California Association of Realtors® (C.A.R.) and the Los Angeles Times are sponsoring the Southern California Home Buyer’s Fair at the Los Angeles Convention Center on April 12 and 13 from 9 a.m. to 6 p.m.
The event is free to the public and features more than two dozen educational “how-to” seminars designed […]

7 Tools for Relocation

RISMEDIA, March 11, 2008-If you are considering relocating, or guiding a client through a relocation, there are many factors to take into consideration. The Move Advocate provides a comprehensive menu of Relocation Tools to assist in the relocation process. From calculating potential expenses to choosing the right community, these tools can help with any move, […]

Indoor Parking Sells High-end Projects: Apartments, Condos Offer an Item in Demand

RISMEDIA, Feb. 20, 2008-(MCT)-The hottest commodity in high-end apartments and condominiums in the Capital Region isn’t granite kitchen counter tops or elegant living-room fireplaces. It’s indoor parking.
Some credit The Lofts at Harmony Mills, which opened in 2006, with launching the trend. The Cohoes apartment development stuffed a parking garage into the ground floor of the […]

Beware of Condos’ Potential Pitfalls

RISMEDIA, Feb. 20, 2008-(MCT)-Thinking of buying a condominium? It’s a good idea for all sorts of people, from empty nesters downsizing to young professionals who don’t need a yard and a big house yet.
But purchasing a condo works best when buyers understand all the potential challenges. Robert Meisner, a Bingham Farms, Mich., lawyer nationally recognized […]

Real Estate - All in a Day’s Work

RISMEDIA, Feb. 19, 2008-(MCT)-They shook hands and exchanged smiles. Quick glances darted around the small gathering that had just negotiated the home’s purchase price. Everyone now knew the real work would begin.
Standing in the driveway with only the light from the porch, the buyers and their Realtor stood for a few moments swapping meaningless nervous […]

For Tech-Savvy Consumers, Real Estate Agents are Still the Experts

Commentary by Lloyd Frink
RISMEDIA, Feb. 18, 2008-Despite the number of websites that now offer consumers never-ending information, traditionally only available through agents, most consumers still-and should-prefer to bring in a professional if they’re serious about transacting. Buying and selling real estate are complicated processes, and most consumers prefer to have the wisdom and guidance of […]

Relocation: Moving Day Tips: How to Safely Transport Your Vehicle

RISMEDIA, Feb. 18, 2008-For many families, a car is the second largest investment they have ever made. Getting that investment safely to a new home is an important component of a smooth move.
What are my options for transporting a vehicle?
A vehicle can be moved with your household goods or with a separate auto transport company. […]

Your Rights - Appraising Real Estate Appraisers and Appraisals

By Curtis Seltzer
RISMEDIA, Feb. 18, 2008-Appraisers are being punched up in the courts and the press for not always providing honest real-estate valuations. So what’s going on? What exactly do appraisers do?
An appraiser forms an opinion of a property’s current Fair Market Value (FMV) by judging its attributes in relation to recent selling prices of […]

Increase Productivity at Work by Socializing with Colleagues

RISMEDIA, Feb. 14, 2008-(MCT)-The rules are simple: The first time you ride, you eat breakfast for free. The second time, you buy for everybody. If you don’t ride for 90 days, you buy for everybody when you do.
Who makes the rules? “We make them up as we go along,” laughs Ken Czubay, one of several […]

Success for the Real Estate Auction Avenue

RISMEDIA, Feb. 7, 2008-Recently, one company shared a statistic with the industry that may come as a surprise-claiming 2007 as a record year. Upon hearing the words ‘record year’ and ‘2007′ used in the same sentence, many wonder what the secret was to their success. Here, we introduce Tony Isbell, CEO/President of RealtyBid.com, whose company […]

Borrowers Bugged by ‘Trigger Lead’ Calls

RISMEDIA, Feb. 7, 2008-(MCT)-There is a bee buzzing in the bonnet of many mortgage brokers right now. And some consumers who have encountered the marketing tactic at issue might not be too pleased, either.
It’s called “trigger lead” buying, according to local mortgage brokers. The practice involves mortgage companies purchasing information about potential borrowers from credit […]

The 10 ‘Best Places’ to Live in Rural America

RISMEDIA, Feb. 6, 2008-Kent County, Maryland, was awarded top honors in the fourth annual edition of the “Best Places to Live in Rural America” rankings by The Progressive Farmer magazine, released this week. Each year, the rankings name the top 10 rural counties in the nation, according to several quality-of-life indicators and statistics; all 10 […]

Self-Defense Tactics: 7 Ways to Avoid a Real Estate Con Artist

By Ralph R. Roberts
RISMEDIA, Jan. 28, 2008-The term “con man” is short for “confidence man” - a person who wins or builds a person’s confidence to the point at which the person voluntarily complies with the con man’s wishes. An effective con artist is able to appear so trustworthy that a person relinquishes common sense […]

Tips for a Smooth Move: How to Avoid Real Estate Closing Nightmares

RISMEDIA, Jan. 25, 2008-An unexpected problem on the day of your real estate closing can turn the experience from a dream into a nightmare. With a little research and advanced preparation you can ensure a smooth closing process before you are handed the keys to your new abode. Here are some frequent closing-day mishaps, and […]

National Mailing Scam Threatens Household Records

RISMEDIA, Jan. 25, 2008-The Tucson Association of Realtors® has been informed that a national company has been mailing out letters to homeowners making it seem imperative that they acquire and retain in their household records a certified copy of the deed to their house which the company will happily provide for a total cost of […]

How Stormy Weather Affects Home Buyers

By Curtis Seltzer
RISMEDIA, Jan. 23, 2008-It’s a sleety, slushy, miserable wintry day on my Virginia farm. It’s bone-chilly and depressing. Our two Yellow Labs are asleep on their mats in the living room next to the wood stove. Lucy is chasing the same shifty rabbit that always torments her dreams. Sophie pursues average intelligence, which […]

Regional Spotlight: Florida Is More than Beaches, Says FAR

RISMEDIA, Jan. 23, 2008-With its cosmopolitan cities, world-class beaches, golf, boating and sports, Florida offers an attractive lifestyle to buyers from around the world.
“As a major vacation location, Florida will continue to draw families of all ages, with a particular appeal to the retiring Baby Boomer generation,” said Donna Cloman, broker-associate with ERA Menu Realty […]

Big Apple Gets Bigger as Demand for Larger Apartments Grows

RISMEDIA, Jan. 23, 2008-The city has always been a magnet for singles who could afford the rent. In many cases, they will even double and triple up in one apartment for the privilege of living in town rather than have to commute from the environs east, west, north and south of New York.
Meanwhile, families have […]

The Fight for Good Credit

RISMEDIA, Jan. 17, 2008-(MCT)-Remember trying to refinance during the real estate boom? You were lucky if your broker or lender returned your calls within two weeks.
How has that changed since the bust of the subprime market last year?
Traditional borrowers — meaning those with good credit, not too much debt and enough equity in the home […]

Escaping the City: Seven Reasons to Buy Country Property

By Curtis Seltzer
RISMEDIA, Jan. 16, 2008-January is America’s month of endless football clichés. “Coach, how are you going to win the Super Bowl?”
“Well, first, our front four has to beat theirs in the trenches. Then we have to throw the ball and run it too. Our special teams have to do a few things. And […]

Unraveling the Shades of Green

RISMEDIA, Jan. 16, 2008-(MCT)-Your house may be touted as environmentally friendly — but is it?
Finding a “green” home in Columbia is getting easier as builders branch into the business of being environmentally friendly.
But as the movement catches on here, how do buyers know what’s legitimate?
That depends a lot on the buyer, Columbia builders say.
“Part of […]

10 Reasons the South Florida Condominium Market is Hot

RISMEDIA, Jan. 16, 2008-Sapphire Condominium along Fort Lauderdale Beach released its Top 10 Reasons to Live in a Luxury Beach Condominium in South Florida.
1) It’s freezing everywhere else.
While your friends in New York and Minneapolis put on their massive winter coats to go outside, if you’re living in a South Florida beach condo, you’ll be […]

Regional Spotlight: Property Tax Relief Coming for PA Homeowners in 2008

RISMEDIA, Jan. 16, 2008-Homeowners across Pennsylvania will receive property tax relief in 2008, thanks to gaming revenues, state Budget Secretary Michael Masch said today. He confirmed that December revenue from the state’s five open casinos was transferred today to the Property Tax Relief Fund, pushing it past the $570 million threshold required by the 2006 […]

Give Your Clients the Real Facts

RISMEDIA, Jan. 15, 2008-Beginning this week, the National Association of Realtors is reaching out to consumers with the facts about homeownership and the value of real estate as a long-term investment. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long-term benefits of […]

With Building Costs Down, Now is the Time to Build a Custom Home

RISMEDIA, Jan. 15, 2008-According to one company, one good thing has come out of the current housing slump. Less new construction has created less demand for building materials. As a result, materials prices have fallen sharply across the board. HomeCrafters’ co-owner, Troy Means, has noticed that building costs are down as much as $25 per […]

You Dirty Rat! Preventative Measures for Keeping Rodents Outdoors

 RISMEDIA, Jan. 15, 2008-Across the country, bitter cold temperatures and winter storms are forcing more than just people indoors. Rodents such as mice, rats and squirrels can pose significant risks to people and their properties. The National Pest Management Association (NPMA) offers solutions for homeowners on how to keep rodents from coming indoors this winter.
“Rodents […]

Regional Spotlight: Manhattan Rental Market Resilient, though Not Invincible in ‘07

RISMEDIA, Jan. 10, 2008-The Real Estate Group New York (TREGNY) released their first Year-End Manhattan Rental Market Round-up. The study, which synthesizes data from all of TREGNY’s 2007 monthly Market Reports, evaluates the state of the Manhattan rental market based on its performance throughout the year. Intended as a guide for renters, owners and developers […]

Consumer Advocates Disclose the Yield Spread Premium Kick Back on Mortgages

RISMEDIA, Jan. 8, 2008-For the last four years Americas Watchdog has been vocal about double standards that exist in the U.S. mortgage industry. Because of these double standards, Americas Watchdog estimates that 9 out of 10 current U.S. homeowners pay a higher monthly mortgage payment than what they could have, or should have received when […]

Where Does Your State Rank-the Best and Worst Home Inspection Regulation Laws

RISMEDIA, Jan. 7, 2008-Later this month, when state legislators in Florida, Pennsylvania and California reconvene for the 2008 session, they may want to take a close look at the American Society of Home Inspectors (ASHI) 2007 state ranking of the best and worst home inspection regulation laws in the United States. In the last 10 […]

New Name, Same Mission to Put Consumer First

RISMEDIA, Jan. 7, 2008-To give consumers a better idea of its purpose and mission, the Better Mortgage Bureau has decided to change its name to Consumer Mortgage Bureau. By adding consumer to their name, the organization hopes to eliminate any confusion in the public’s mind that they are anything but consumer driven.
The Consumer Mortgage Bureau […]

American Homeowners Benefiting More from Technology

RISMEDIA, Jan. 3, 2008-Technology helps homeowners more every year. Homeowners are among the biggest beneficiaries of technology innovations. Every year new technologies help homeowners save more money and/or make our lives easier. The growing importance of Internet commerce was underlined by the 2007 holiday season. While retail sales overall remained flat between Thanksgiving and Christmas, […]

Four Common Solutions for Homeowners Looking to Avoid Foreclosure

RISMEDIA, Dec. 19, 2007-The recent agreement by federal regulators and mortgage lenders to freeze interest rates for five years on certain subprime, adjustable rate mortgage loans is intended to help many homeowners avoid foreclosure.
However, for homeowners who have missed mortgage payments and may not qualify for the program, working with a credit counseling agency will […]

Why Buying Now Can Be a Smart Move

RISMEDIA, Dec. 17, 2007-Although much of the housing market is in a slump, this is still a good time for most to buy a home.
Even though many economists are predicting further drops in home values in most areas, today is still an excellent time for most of us to buy a home. The direction of […]

What is a mortgage and how does it work?

A mortgage makes homeownership possible for most people. In the simplest terms, it is a loan that is secured by real property. The lender holds title to the home until the loan is completely repaid. If you fail to pay up, the lender has a right to take the property, sell it, and recover the […]

Why is location so important?

Location remains the single most important factor when choosing a home. It can make or break the value and desirability of a home.
Because everyone’s preferences vary, your lifestyle will determine the best place for you to live. Some people prefer the suburbs while others thrive on downtown living. If you favor city living, find out […]

What about guidelines for VA foreclosures?

As with HUD, anyone can purchase a VA home. Qualified buyers also can receive the benefit of a VA loan - no money down - even if they are not veterans. If you are interested in purchasing a VA foreclosure, visit its web site, www.va.gov.

What are some of the guidelines for purchasing HUD foreclosures?

If you have the cash or can qualify for a mortgage, you can buy a HUD home. Down payments vary depending on whether the property is eligible for FHA insurance. If so, the down payment can be lower than the 5 to 20 percent required on conventional loans. HUD requires that all accepted offers be […]

How do I find government-repossessed properties?

The Department of Housing and Urban Development (HUD) acquires properties from lenders who foreclose on mortgages that it insures. These properties are then available for sale to potential homeowner-occupants and investors only through a licensed real estate broker. HUD will pay the broker’s commission up to 6 percent of the sales price.
The Department of Veterans […]

What are the disadvantages of buying foreclosures?

Buying directly at a legal foreclosure sale is risky. Among the disadvantages:
There is no financing. You need cash and lots of it.
The title needs to be checked before the purchase. If not, you risk assuming a seriously deficient title.
It may not be possible to inspect the property’s interior before the sale. So you have no […]

What happens at a trustee sale?

When a homeowner falls behind on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The lender that initiated the foreclosure proceedings will usually set the bid price at the […]

Where can I find foreclosure properties?

Look in the legal notices section of your local newspaper. A notice is also usually posted on the property itself and somewhere in the city where the sale will take place.
However, real estate agents are the best source for information about foreclosures before they begin. Often a property will be listed and the agent […]

What causes a foreclosure?

A lender decides to foreclosure, or repossess, a property when the owner fails to pay the mortgage. Unfortunately, thousands of homes end up in foreclosure every year. Many people lose their homes due to job loss, credit problems, divorce, unexpected expenses, and during periods of economic instability.
Failure to pay property taxes may also cause a […]

What about a vacation home as an investment?

Like any investment, it can be risky. Location and current market conditions are extremely important when deciding whether to buy.
Other things to consider:
Will you be able to afford repairs, maintenance, insurance, and utilities?
What about fees to pay agents who rent the property for you?
If you live several miles away from your vacation home, who will […]

Should I buy a vacation home?

The second home market has more ebbs and flows than the primary home market. Sales are iffy in a bad economy except, perhaps, on the high-end. That said, there is a growing trend toward the purchase of vacation homes. They are being bought for investment purposes, enjoyment, as well as retirement. In the latter instance, […]

Do builders provide financing?

Many builders offer financing incentives to help move more buyers into a project. In fact, major building companies often have their own mortgage brokerage subsidiaries, while many other builders routinely refer buyers to “preferred” local lenders. If it is a buyer’s market in your area, you can be sure developers will offer incentives such as […]

What else should I take into account when buying a new home?

You can find out more about an existing property and neighborhood before you buy than you can a new home in a newly developed community.
When the home is on the outskirts of town, ask the developer about future access to public transit, entertainment venues, shopping centers, churches, and schools. Also review local zoning ordinances. A […]

Should I hire a home inspector for a new home?

You would think not since it is new and the developer has to adhere to local construction guidelines. However, err on the side of caution—always hire an inspector, whether the home is old or new.
You can ask the builder to provide copies of any inspection reports on the property, architectural plans, surveys and pertinent construction […]

Can you negotiate the price of a new home?

In real estate, almost everything is negotiable, so it is certainly worth a try. Now, this does not mean the builder will fall down and roll over. It is very common for builders to claim that their prices are based on fixed construction costs. Perhaps, but timing is everything.
A builder is more likely to […]

Are special tax breaks available for historic rehabilitation?

Certified historic structures now enjoy a 20 percent investment tax credit for qualified rehabilitation expenses, if they are income producing properties. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district that is certified by the government. The tax code does […]

What about state and local governments?

Just about every state now offers loans for renovation and rehabilitation at below-market interest rates through its Housing Finance Agency or a similar agency. Call your governor’s office to get the name and phone number of the agency in your area.
At the municipal level, many cities also have programs for special improvements to certain blocks […]

Does the federal government offer home improvement programs?

Yes. Among the most popular:Title 1 Home Improvement Loan. HUD insures the loan up to $25,000 for a single-family home and lenders make loans for basic livability improvements - such as additions and new roofs - to eligible borrowers.
Section 203(k) Program. HUD helps finance the major rehabilitation and repair of one- to four-family residential properties, […]

How can I finance work needed on a fixer-upper?

According to the Millennial Housing Commission created by Congress, few lenders are willing to administer home improvement loans. Most prefer to make home equity loans or unsecured consumer loans because they are easier to manage. Home improvement loans usually require inspections and irregular draws on the loan amount as work is completed, which requires […]

What kind of return can I expect from home improvements?

This will vary depending on the type of work that is done. Remodeling magazine publishes an annual “Cost vs. Value Report” that can answer this question in more detail, based on the top 15 home improvements. A recent study it conducted says the highest remodeling paybacks have come from siding and window replacements, major […]

What guidelines should I use to find a contractor?

Chances are you will need plenty of help making those major repairs and additions. But the last thing you will need is someone who fails to complete the job or botches it up. Finding good, responsible help is imperative.
Here’s what you can do:
Avoid the Yellow Pages. Check with family, friends, neighbors and co-workers for […]

How do I determine the value of a distressed property?

One of the best ways is to get your hands on a comparable market analyses. See what price similar properties have sold for in the past and find out the listing price of others currently on the market.
It is important to examine the fixer-upper carefully and figure out how much it will cost to fix […]

Is buying a fixer-upper in a “bad” area a good idea?

It depends. So-called “bad” areas—often described as those that are residentially unstable or poor - have offered an affordable means of homeownership for many—particularly young, first-time buyers and low- to moderate-income families interested in a home they can call their own. Whether it is right for you to buy a fixer-upper will depend on your […]

Where can you find fixer-uppers?

They are literally everywhere, even in wealthy enclaves. What sets them apart is price. They have lower market value than other houses in the immediate area because they have either been poorly maintained or abandoned.
To determine if a property that interests you is a wise investment will require a lot of work. You will […]

What are the benefits of having a co-op?

In addition to being able to take advantage of tax deductions, the National Association of Housing Cooperatives (NAHC) says shareholders will find that co-ops have low turnover rates, lower real estate tax assessments, reduced maintenance costs, resident participation and control, and the ability to prevent absentee and investor ownership.
Also attractive: housing cooperatives come in all […]

What are co-ops?

Cooperative apartments - known as co-ops - are not really owned by people as real property. Instead, people own shares of stock in the company that owns the building in which they live. But for all practical purposes, the experts say owning a co-op is almost like owning real property. Personal loans to “buy” […]

What are the pros and cons of owning a townhouse?

On the plus side, exterior maintenance and repairs are minimal; there are no neighbors above or below the home like in an apartment; and because the homes are attached, they may offer a greater sense of security.
As for the disadvantages, if there is a homeowner’s association, buyers will have to pay a homeowner’s fee. […]

How do townhouses differ from condominiums?

While most condominiums are apartments, a townhouse is attached to one or more houses and can run the gamut from duplexes and triplexes to communities with hundreds of homes. Buyers separately own their homes and the land on which the houses sit. With a condominium, the unit owners jointly own the land and this common […]

Are condos good investments?

They are a good way to enter into homeownership. The high price of single-family homes and the influx into the housing market of more single homebuyers have made condos relatively hot national investments. They have held their value as an investment despite economic downturns and problems with some associations.
Condominium associations have also worked hard in […]

How do you choose a good condo?

Seek ownership in a well-maintained building, and pay special attention to the financial health of the condo association. Lax maintenance may be a sign of financial trouble, which could result in higher maintenance fees and problems trying to resale the property later.
Things to consider:
Get a copy of the latest financial statement from the condo association.
Ask […]

Why buy a condo?

They are an appealing way to enter the housing market if the cost of a single-family home is out of your reach. Condos are especially popular among single homebuyers, empty nesters, and first-time buyers in high-priced housing markets.
Unlike a house, condos offer a lifestyle that is free of yard work and exterior maintenance and repairs. […]

What is a condominium?

Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share—such as the land, lobby, hallways, swimming pool, and parking lot.
In addition to paying a mortgage, each owner is responsible for paying […]

Are property taxes deductible?

Yes. Like the mortgage interest paid on a home loan, property taxes are fully deductible from your income. You may deduct them every year on your primary residence, second home and other investment properties.
However, escrow money held for property taxes cannot be deducted until the money is actually used to pay the property taxes.

Are impound accounts required for all mortgage loans?

They can typically be waived on a conventional loan if the loan amount is 80 percent or less of the purchase price. But the lender might charge you an additional 1/4 point for this option to waive the escrow.
One way to avoid an impound account on an owner-occupied mortgage is to raise your down […]

What is an impound account?

It is a special bank account held by the lender to collect monthly payments from the borrower to pay property taxes, mortgage insurance, and hazard insurance. These accounts also are called escrow or reserve accounts.
Lenders like to set up impound accounts to ensure the property taxes and insurance will be paid on time. They typically […]

Can I contest my property taxes?

Many people do, mainly because determining value can often be tricky. This is especially true in a changing market when local prices either take off dramatically or plunge precipitously, like during the Texas oil bust of the 1980s.
While it is up to a professional assessor to evaluate property value for tax purposes, property owners are […]

How are individual tax bills figured?

Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend. It is based solely on how much the property you own is worth. […]

Why do homeowners have to pay property taxes?

Property taxes are assessed by city and county governments to generate the bulk of their operating revenues. The taxes help pay for such public services as schools, libraries, roads, and police protection.
Re-valuations of the tax are often done periodically, although the time interval varies from state to state or, in some states, from town to […]

Are there tax credits for first-time homebuyers?

Yes, thanks to the many city and county governments that offer Mortgage Credit Certificate (MCC) programs, which allow first-time homebuyers to take advantage of a special federal income tax write-off. The credit reduces the amount of federal taxes paid by the buyer each year, if he keeps the same loan and lives in the same […]

Are fees and assessments owed a homeowner’s association deductible?

Generally not because they are considered personal living expenses. But if an association has a special assessment to make capital improvements, condo owners may be able to add the expense to their cost basis when the property is sold. Another exception may apply if you rent your condo—the monthly condo fee is deductible every year […]

Are up-front fees and closing costs deductible?

Many of the costs paid at closing are not immediately deductible.
The exception is points you pay to purchase your home loan. They are deductible for that year. Points paid when you refinance an existing mortgage must be deducted over the life of the new loan.
Some fees—including loan application, appraisal, document preparation and recording fees—that […]

How can owning a home pay off at tax time?

A home provides many tax benefits, literally from the time you buy to the time you sell. The mortgage interest paid on a home loan up to $1 million for a primary residence or second home is tax deductible every year, as is the local property tax. Other mortgage costs—including late-payment charges and early-payment penalties—are […]

Is there anything I should know about closing day?

Yes. The following to-do list can help save you a few headaches and keep the closing on track:
Keep extra money in your account. Something unexpected can pop up during the closing that will require more money out of your pocket. Take your checkbook. Even better, find out how much you will need to pay and […]

Is it possible to save on closing costs?

Certainly, once you get pass the sticker shock. Closing costs are expensive. They can average between 2 to 3 percent of the total home purchase price. But here are a few ways to save:
Haggle with the seller. He may pay all or part of the closing costs.
Nab a no-point loan. You may have to pay […]

What are closing costs?

Closing, or settlement, costs are expenses over and above the price of the property. Both the buyer and seller incur some of these expenses when transferring ownership of a property. Who actually pays, however, often depends on local custom and what the buyer or seller negotiates. Closing costs normally include title insurance, loan points, escrow […]

Do I need an attorney to buy a home?

A lot depends on the state where the property is located. Some require an attorney; others do not.
Most homebuyers can generally handle routine real estate purchase contracts as long as they read the fine print and understand all the terms. But pay close attention to any clauses, contingencies, and other special considerations that will […]

Does the seller take the furnishings once the home is sold?

Normally. This is because the fixtures—personal property that is permanently attached to a home, such as built-in bookcases or a furnace—automatically stay with the house unless noted otherwise in the sales contract. Anything that is not nailed down is negotiable, including appliances that are not built in, such as washers and dryers.

What contingencies should appear in the offer?

When you look to purchase a home, anticipate potential problems. But protect against them so that if something does go wrong, you can cancel the contract without penalty. This is what contingencies allow you to do. They should be included in any offer you present to buy a home.
Most offers include two standard contingencies: a […]

What are some negotiating tips?

Know the seller’s motivation to sell. This will enhance your negotiating position. Sellers who must move quickly due to a job transfer, divorce, or contract on another home, are more inclined to accept a lower price to speed the process along.
Remember, too, that the listing, or asking, price is what the seller would like to […]

Can you negotiate interest rates?

A few lenders will negotiate the mortgage rate and number of points on a loan. However, this is more the exception than the rule with established lenders. As always, shop around and know the market before you enter a lender’s office. Rates are often published in local newspapers and on Internet Web sites.
You may have […]

Are low-ball offers a good idea?

Any offer can be presented, but a low-ball one that is extremely less than the asking price can dampen a prospective sale and prevent the seller from negotiating at all. Unless the home is overpriced to begin with the offer will probably be rejected.
Do your homework before making an offer. Compare prices of recently sold […]

Is it possible to buy a home below market price?

Certainly, but do not hold your breath. It takes a lot of determination and time to find a real bargain. But if you are adamant, here are some likely targets to pursue:

foreclosed property
a fixer-upper
hard-to-sell new homes in a housing development
tenant-in-common partnerships.

With the latter, you may be able to buy a partial interest in this form […]

Is private mortgage insurance necessary?

Lenders require private mortgage insurance (PMI) on most conventional loans with less than a 20 percent down payment. They believe there is a correlation between borrower equity and default. They have found that the less money borrowers put down, the more likely they are to default on a loan. PMI guarantees the lender will […]

What about title insurance?

Title insurance protects the lender against unclear title to the property you are buying. It is almost always a requirement for closing on a home. If you desire coverage as well, buy an owner’s policy, which will protect you against any title-search errors and losses that arise from disputes over property ownership. The cost of […]

What is condo and co-op insurance?

This insurance protects your investment and personal belongings from most disasters. As an owner, you will need two insurance policies—your own to cover liability, living expenses, your belongings and structural improvements, and a master policy provided by the condo or co-op board. The master policy covers the common areas that you share with others in […]

What kind of home insurance should I get?

A standard policy will do in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war, and nuclear accidents. The policy can be expanded to include these disasters as well as coverage for such things as workers’ compensation. In fact, the lender may require […]

What does homeowners’ insurance cover?

It protects against disasters—whether natural, manmade or mechanical. A standard policy insures the home, as well as your possessions. Because this insurance is packaged, it covers liability for any harm, loss, and property damage that you or your family members cause others. And it includes additional living expenses in case you are temporarily displaced because […]

Do I need to be at the inspection?

No, but it is a very good idea to be there. Following the check-over, the home inspector can answer your questions and discuss problem areas with you. This is also an opportune time to get an objective opinion about the home from someone who does not have emotional or financial ties to the property.

How do I select a home inspector?

Begin by only hiring one who is qualified and experienced, someone who belongs to an industry trade group, such as the American Society of Home Inspectors (ASHI). This organization has developed formal inspection guidelines and a professional code of ethics for its members. Also, membership in ASHI is not automatic; members must have demonstrated field […]

Should I hire a home inspector?

By all means. Buying a home without getting expert advice is risky. Once a home inspector uncovers major plumbing and electrical problems, for example, you may decide you do not want to spend several thousand dollars on repairs.
Always include an inspection clause in your written offer. This clause gives you an “out” from buying […]