Special offer

Steps in the buying process

By
Real Estate Sales Representative with RE/MAX Fine Properties
Should I have a home inspection? This is an easy one. YES! A home inspection should be performed on any home you are buying, both brand new homes and on a resale. Depending on the area you are in, type of construction used and other factors you may also want to have a Moisture Intrusion Test and a Radon Test. You Realtor can tell you what inspections to have as well as suggest LICENSED Professionals to perfrom the inspection. Not only will a home inspection give you piece of mind, but should you have to sell in the near future it will limit the number of suprises should the new buyer have an inspection.

How much negotiation should I expect from the seller? Depending on what part of the country you are in, this can range from $0, especially on new contruction, to an unlimited amount.  Talk this over with your Realtor, he or she should have a good idea of what to expect depending on current market conditions.  If the home is priced correctly then don't expect a large amout off the purchase price.  You and your agent should go over comparable sales in the area and determine a fair offer. 

What is a home warranty and should I buy one for my new home? A home warranty is purchased either by the seller or buyer and covers many aspects of the home. Typically all applicanes, heating and cooling systems, plumbing, and electrical systems are covered. Make sure to read the warranty with your agent and decide if it is the right one for you. There are many different warranty programs available. As far as buying one for you home, the typical cost is $400 for the protection, whereas a heating and cooling unit could run several thousand. It definetly would pay for itself even if you only use it once within the coverage period. Many sellers offer this as an incentive and you could always ask for it as part of your offer.

What is the first step in the home buying process? Find a Realtor in the area you want to buy in.  A Realtor can lead you down the road to buying a home. From getting pre-qualified for a mortgage to obtaining home owners insurance, you will be guided through the entire process.

Who pays the Realtors commission fee? Typically this is paid for by the seller.  The listing agent charges the seller a fee for selling the home, it most cases, the listing agent shares the commission with the buyers agent.  Make sure to review all documents signed with your agent.  Find out in advance what you are responsible for paying for.  This applies whether you are selling or buying. 

Which day of the month is the best day to close on my new home? Typically, if you are looking to reduce closing costs, the best day to close on your new home is as close to first day of the month as possible.  For example if you close on the first day of the month you would have $0 interim interest, if you close on the 15th day of the month you would have 15 days of interest.  On a $100,000 home this would add around $350 to what you would have to bring to closing,depending on your interest rate.

Sale of Personal Residence Acquired in a Like-kind Exchange - Taxpayers who convert rental property to a principal residence should know that a tax law change may limit their ability to exclude gain on the sale of that residence if they obtained the property through a like-kind exchange. Generally, a taxpayer can exclude up to $250,000 of gain on the sale of a home, provided the individual has owned and used it as a principal residence for two out of the five years before the sale. The exclusion is $500,000 for a married couple if both meet the use test. The American Jobs Creation Act of 2004 does not allow any exclusion if the taxpayer sells the home within five years of acquiring the property through a like-kind exchange. The new law applies to sales after October 22, 2004

Posted by

Let's create a great community together!

Building Dreams one Home at a time....

Comments (0)