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How Do I Determine The Initial Offer?

How Do I Make An Offer?

What Is Earnest Money, And How Much Should I Set Aside?

What Is An Inspection Clause?

What Does A Home Inspector Do, And How Does An Inspection Figure In The Purchase Of A Home?

Do I Need To Be There For The Inspection?

Do I Really Need Homeowner's Insurance?

What Steps Could I Take To Lower My Homeowner's Insurance Costs?

Are Power Lines A Health Hazard?

How Can I Protect My Family From Lead In The Home?

What About A Home Located In A Flood Plain?

What Are "Home Warranties", And Should I Consider Them?

What Should I Look Out For During The Final Walk-Through?

 

How Do I Determine The Initial Offer?

As you'll see in this video, unless you have a buyer's agent remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential. Listen to your real estate agent's advice but follow your own reason on deciding a fair price. Calculating your offer should involve several factors: what homes sell for in the area, the home's condition, how long it's been on the market, financing terms and the seller's situation. By the time you're ready to make an offer you should have a good idea of what the home is worth and what you can afford. Be prepared for give-and-take negotiation which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a final price.

How Do I Make An Offer?

Watch this video and it?ll make sense. Your real estate agent will assist you in making an offer which will include the following information: The Complete legal description of the property The Amount of earnest money The Down payment and financing details The Proposed move-in date The Price you are offering The Proposed closing date The Length of time the offer is valid The Details of the deal Remember that a sale commitment depends on negotiating a satisfactory contract with the seller not just making an offer.

What Is Earnest Money, And How Much Should I Set Aside?

Like the video shows, ?earnest money? is money you put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price though the amount can vary with local customs and conditions. If your offer is accepted the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your earnest money is returned to you. If you back out of a deal, you may forfeit the entire amount.

What Is An Inspection Clause?

Remember these pointers from the video: you may want to include an inspection clause in the offer when negotiating for a home. An inspection clause gives you an ?out" on buying the house if serious problems are found or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house.

What Does A Home Inspector Do, And How Does An Inspection Figure In The Purchase Of A Home?

As we show you in this video, an inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction and mechanical systems of the house and will make you aware of only repairs that are needed. The Inspector does not evaluate whether or not you're getting good value for your money. Generally, an inspector checks (and gives estimates for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation the heating and AC system, water source and quality the potential presence of pests the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced. It's a good idea to have an inspection before you sign a written offer since once the deal is closed you've bought the house as-is.

Do I Need To Be There For The Inspection?

It's not required, but it's a good idea. Well, as this story shows, let the inspector do their job while you take notes and pictures. Following the inspection the home inspector will be able to answer questions about the report and any problem areas. This is also an opportunity to hear an objective opinion on the home you'd like to purchase and it is a good time to ask general maintenance questions.

Do I Really Need Homeowner's Insurance?

The video puts this in more visual terms, but Yes! A paid homeowner's insurance policy (or a paid receipt for one) is required at closing so arrangements will have to be made prior to that day. Involving the insurance agent early in the home buying process may save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low.

What Steps Could I Take To Lower My Homeowner's Insurance Costs?

You?ll see some pictures in this video to help you remember later, but basically, be sure to get quotes from several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters Choose a home with a fire hydrant or a fire department nearby. Other ways to lower insurance costs include insuring your home and cars with the same company, increasing home security, and seeking group coverage through alumni or business associations. Insurance costs are always lowered by raising your deductibles but this exposes you to a higher out-of-pocket cost if you have to file a claim.

Are Power Lines A Health Hazard?

While everyone uses electricity concerns about possible effects from high-tension power lines nearby are a common question. As this video shows, according to the US Department of Housing & Urban Development as of 2013, there are no definitive research findings that indicate exposure to power lines results in greater instances of disease or illness.

How Can I Protect My Family From Lead In The Home?

What you'll see in this video is, if the house you're considering was built before 1978 and you have children under the age of seven you will want to have an inspection for lead-based paint. It's important to know that lead flakes from paint can be present in both the home and in the soil surrounding the house. The problem can be fixed temporarily by repairing damaged paint surfaces or planting grass over affected soil. A lead abatement contractor can be hired to remove paint chips and seal damaged areas to fix the problem permanently. Watch this video and it'l make sense.

What About A Home Located In A Flood Plain?

A flood plain is an area of land adjacent to a stream or river that experiences flooding during periods of high discharge. Watch this video and it?ll make sense. If you live in a flood plain lenders will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Check the National Flood Insurance Program site - the URL is in the video - for more information. And work with an insurance agent to construct a policy that fits your needs.

What Are "Home Warranties", And Should I Consider Them?

You'll see some pictures in this video to help you remember later, but essentially, home warranties offer you protection for a specific period of time, such as one year against potentially costly problems like unexpected repairs on appliances or home systems which are not covered by homeowner's insurance. Warranties are becoming more popular because they offer protection during the time immediately following the purchase of a home a time when many people find themselves cash-strapped.

What Should I Look Out For During The Final Walk-Through?

Well, as this story shows, this will likely be the first opportunity to examine the house without furniture giving you a clear view of everything. Check the walls and ceilings carefully as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller's responsibility to fix them.

 

These videos are for informational purposes only when thinking about buying or selling a house. These are not intended to supersede any information or transaction that you may be involved in with a Broker, Lender or other Real Estate Professional.