Homebuyer Tips

Buying a home will be one of the most significant investments you ever make. This is where you’ll live, raise a family, and build equity towards a better future. Studies typically list buying or selling a home as one of the 10 most stressful things a person can do. First-time home buyers oftentimes find it intimidating to deal with the lawyers, mortgage brokers, inspectors, sellers, and government agencies that veteran buyers and sellers take for granted. That’s where the CHW Real Estate team comes in! We’ll help you find the right place to live – a home that feels right and suits your family’s needs. We’ll help you prepare for and minimize the chaos of the buying process. Moving up in the world means you’ll need access to people, knowledge, money and other resources that CHW Realty is already plugged into. All the answers you need are only a call or a click away. Let’s start with a list of available homes that meet your family’s needs »   Why Own a Home to Begin With? There are many reasons for owning your own home, including:

  1. It’s a good investment. Your long-term rate of return from buying a home will usually be better than most other investments you could make.
  2. Building equity. Homes typically appreciate in value by three to five percent annually.
  3. Tax deductions. Mortgage interest and property taxes are both deductible, meaning the government basically subsidizes your home purchase.
  4. Personalize your home. Many landlords prohibit painting or doing structural work on their property. Owning a home means setting things up the way you want them to be without asking for permission.
  5. More room. First-time home buyers typically find they have more living space than they know what to do with.
  6. Stable expenses. Getting a fixed-rate mortgage ensures 30 years with the same monthly payment amount. An adjustable-rate mortgage (ARM) can still give you stable payment amounts for the life of the loan.
  7. Forced savings. Many people see a house as an automatic savings account, since:
  • Part of each month’s payment pays off the principal loan
  • The home should appreciate in value over the long term

What NOT To Do While Shopping for a Home Lenders are concerned about the source of funds being used for down payments and closing costs. To make the process easier:

  • Don’t move money around from one account to another.
  • Don’t throw out old tax records, bank statements or canceled checks.
  • Don’t change banks.
  • Don’t change jobs.
  • Don’t make any major purchases.

  How Much Should You Offer? The seller’s asking price is where negotiations start. If times are good and the real estate market is tight, the asking price may invite multiple offers and your offer may be higher than the asking price. If the real estate market is not tight, your price may be lower. In some cases, MUCH lower. CHW Realtors will help you determine your offer price using a three-step process:

  • We’ll look at recent sales of similar properties to find a sensible price range for the home you’re looking to buy.
  • We’ll work with you to examine the home’s condition, improvements that have been made, and why the home is being sold. This should help establish a fair price for the house you’re looking at.
  • Finally, we’ll help you adjust your fair price by negotiating what your actual offer should be.

Writing Your Offer Your offer is the first step in negotiating a sales contract with the seller. Because of the large sums of money involved, you and the seller will both build in protections for your investment and look for ways to limit your risks. Your offer will include the price you’re willing to pay and details including:

  • Your source of financing
  • The amount of your down payment
  • Who pays closing costs
  • What inspections will be needed
  • Timetables
  • What personal property (if any) is included in the purchase
  • Terms of cancellation
  • Repairs to be performed
  • Which professional services will be used
  • When you get possession of the property
  • How disputes will be settled should they arise
  • When is the closing date for the sale

Surviving the Process Contingencies: Most home purchases go smoothly, but sometimes there’s a hiccup. In case your transaction hits a bump in the road and you’re unable to complete the transaction through no fault of your own, we’ll build a contingency into the contract allowing you to cancel without penalty. Earnest Money: Even with an offer on the table, a home may remain on the market until you’ve made a deposit, known as Earnest Money. It should be large enough – about three percent of the purchase price – to show the seller you’re serious. Inspections and Walk-through: In addition to the appraisal and termite inspection, we’ll insist you have a professional home inspection done before closing. Though you’ll inspect the home yourself, there are certain things a professional inspector looks for.  The inspector will then provide you with a report listing any concerns, giving you a chance to either cancel the deal without penalty or re-negotiate the price. Closing Date: An essential part of the offer is the closing date. It allows both buyer and seller to plan their finances, moving and other details. We’ll recommend a closing date that gives you time to alert your landlord and stays within lender rules of how long you have a lock on your rate for borrowing funds for purchasing the property. Be sure to speak with the CHW Realty team about how to handle possible delays in closing or moving. Final Walk-Through: Within the last five days before closing, we’ll remind you to walk through the house one last time to check if the property is in the same condition as when you made your offer. Transferring the Property Your transaction is deemed “closed” after the deeds have been recorded with various government offices. While you now own the home, you may not yet be able to take possession if the seller hasn’t yet closed on his new home. To avoid confusion, we like to include an exact timeline for transferring possession in your original offer.   Still have questions? Speak with a CHW Realtor and let us walk you through the entire process. DRE License 01791343

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