Ceola's Blog

Home Purchase Negotiation

2008-05-02T09:20:11Z

Here are ten important questions you should ask a Sales Associate and why you should ask them.*

Property Specific

How long has the property been on the market? Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.
Have there been any price reductions during the listing period? Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.
Have there been any offers on the property? Why: It will be helpful to know what offers may have been turned down and for what reasons.
What is the motivation of the seller? Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiations.
What personal items are included in the sale? Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.

Neighborhood Specific

What is the price range of sold properties in the area? Why: This information is important since it will indicate the top and bottom of that specific market.
What is the average time on market for properties in this area? Why: This information will indicate sellers' past willingness to negotiate and by how much.
What is the list to sale price ratio in this area? Why: This information will indicate sellers' past willingness to negotiate and by how much.
What is the average sale price per square foot of recently sold properties? Why: This approach to establish value works best in a P.U.D. and/or where there are similar homes, lot sizes and improvements.
What other known factors about the property or neighborhood could affect value? Why: Review any seller's disclosure settlement very carefully with your sales associate to determine any factors that could affect value.

*Depending on the type of agency relaionship you have with your Sales Associate, he or she may not be able to assist you with these specifics.

Coldwell Banker Home Buyer Guidebook.

TEN REASONS TO BUY A NEW HOME

2008-04-29T22:29:08Z

1. Improved quality of life. People spend more than half of their time at home. It makes good sense to seek a well-designed, cost-efficient residence.

2. Energy efficiency. New homes are more energy-efficient than homes built even 20 years ago. Additional insulation, dual pane windows, and advanced heating and cooling systems are just some of the features that can save hundreds of dollars each year.

3. Annual tax deductions. A home is one of the best tax shelters available since you can deduct mortgage interest and property tax from federal and state income tax returns.

4. Tax treatment of appreciation. As a home owner, you don't have to pay taxes on appreciation unless you sell the home and later buy a lower-priced one or rent.

5. Increasing your personal wealth. With most home purchases, you gradually increase the amount of house you own while decreasing the amount you owe.

6. Less upkeep and repair. With a new home, you have less out-of-pocket expense in the first 5 to 10 years.

7. Warranty protection. Many new homes come with warranties on workmanship and materials, so you can rest a little easier when making your purchase.

8. The options and amenities you want. New homes feature modern appliances and fixtures designed to add value and ease of living.

9. Delay can cost you. Once you find a home and a financing package that fits your needs, you shouldn't delay your purchase in hopes of a better deal.

10. Mortgage rates are low. Current mortgage rates are historically low, so take advantage.

Loan Officer's Guide 4.16

Professional Home Inspection

2008-04-24T06:35:01Z

Most lenders require that you have the home inspected by a professional before closing. You can avoid - or at least anticipate - costly repairs to structural or mechanical systems by having an inspection. The sales contract usually specifies that the inspection will take place soon after the offer is accepted and that settlement is contingent upon a satisfactory inspection. The inspection requires specific technical skills. You can become familiar with common problems, but a professional home inspector can give you a better overview of the entire structure of a house and its potential problems. If possible, accompany the inspector who examines your house. He or she can point out potential problems and help you locate special devices like the items listed below.

• On/off switch on furnaces, air conditioners, etc.
• Pilot light on hot water heaters, ovens, etc
• Fuse boxes.
• Main water shut-off controls.
• Foundation.
• Floors.
• Walls and partitions.
• Roof.
• Windows and doors.
• Plumbing system.
• Electrical system.
• Heating, ventilating, and air conditioning systems.
• Septic tanks, wells, or sewer lines.
• Common areas (at condominiums or cooperatives.)
Loan Officer Guide 4.2

Ceola's Blog

Home Purchase Negotiation

TEN REASONS TO BUY A NEW HOME

Professional Home Inspection

Recommended Reading for First Time Home Buyers