• Buyer's Resources:
• Seller's Resources:
- Overview of the Buying & Selling Process
- Preparing Your Home Through The Eyes Of A Buyer
- Repair & Cleaning Checklist
- Possible Work Orders
- What To Do While Your House Is Being Shown
• Market Analysis:
- It is definitely a buyers market now. Interest rates are at an all-time-low, and the market is flooded is with homes. Now is the perfect time to find your dream home at a price worth smiling at.
• School Report:
• Academy Elementary: Recently remodeled, has a 12:1 student to teacher ratio, and is a recognized blue ribbon school of excellence
• Midtown Middle School : New desks, science lab, gym, and computers 20:1 student to teach ratio. Over-all a good environment.
• Moving Tips:
- Decide whether you want to use a professional mover or go with a rental
service and move yourself.
- Make sure all your furniture will fit in your new home
- You may want to rent a disposal unit to discard clutter and make the
move easier
- Develop a list of all those who need to know your new address and phone
number
- DMV
- Bank
- Credit Cards
- Friends
- Family
Resources
Serving Ocean & Monmouth Counties
Michael G Haley
Realtor Associate
Cell: 609 290-8532
506 Grand Central Ave
Lavallette, NJ 08735.
732 830-4122 x324
Michael G Haley
Realtor Assocaite
Cell (609)290-8532
Email michaelghaley@optonline.nett.
- Overview of the Buying & Selling Process
Buying a home can be one of the most important decisions a person will make in his or her lifetime. A buyer is required to make several legal and financial commitments. For the first-time buyer, and even some veteran homeowners, this process can be confusing. Therefore, it is vital that the prospective buyer understand the process that must take place between the initial decision to move and the eventual possession of the new home.
A first step in making an intelligent choice is to decide exactly what you want in the new home. It might be helpful to detail the features of the "ideal" home, then decide what you would forego if you have to scale back. Establishing your priorities will help you to evaluate homes and to describe agents what you are looking for.
Setting a Price Range for a New Home
Before going out and seriously looking at homes, you might call some lenders to get an idea of current mortgage rates. Loan terms will help determine how much you will be able to afford.
When you apply for a mortgage loan, the lender will apply certain criteria to determine how large a loan to make. The amount depends mainly on your income and how much debt you currently have. You can run through a similar analysis to provide an estimate of your loan limit.
Home Selection in the Right Neighborhood
You will need to do some information gathering. First try to get an idea of the prices being asked for homes on the market. You should begin to select neighborhoods that appear desirable. A neighborhood can be favored because of the style of homes there, convenience to work or other points, or its reputation for retaining property values. If you know where you would like to live, you can save much time when you begin to look at houses.
Homes are being sold is through the Internet. However, a visit to the brokerage office allows you to find out about a large number of homes on the market by looking through exclusive and multiple listings with an agent. (Exclusives are homes that are offered through a single broker; multiple listings are offered in cooperation with all brokers who are members of the service. The agent can also help you narrow down the list to the location, features, and price you desire. In addition, the agent can provide an inspection tour of available homes.
Entering Negotiations on the Home You Have Selected
After finding the home you wish to buy, you can make an offer by submitting a sales contract. The contract states what you are willing to pay (usually it is not necessary to offer the full asking price), when you would like to take possession, and under what conditions the sale will be completed. These conditions generally include a provision that you are able to obtain financing at certain specified terms. This frees you of the obligation to go through with the purchase if you are turned down for a loan. Another common provision is that the house is free of defects over a specified amount of repairs that the seller agrees to make before closing. Other contingencies can be included, such as a provision that you must first sell your current home.
Your offer will be accompanied by a check to signify serious intent. This earnest money is typically less than five percent of the price . The contract is not binding until the seller signs it. The seller may accept your offer by signing the contract, reject the offer by sending it back, or propose a counteroffer by modifying the contract and signing it. Since a counteroffer is a substitute offer, it constitutes rejection of the contract. If the counteroffer is acceptable, you may initial the contract to validate it. Alternatively, you may make another counteroffer; or you may reject the counteroffer, refuse to negotiate further, and take back your earnest money. This negotiation can go back and forth until an agreement (or an impasse) is reached. Also, until a contract is signed by both parties, the seller may entertain offers from other buyers.
The sales contract designates the date at which property ownership will change. This is called a closing. In the meantime financing will have to be arranged. Since this generally takes from three to eight weeks, a loan application should be filed soon after signing the sales contract.
Obtaining Financing for a New Home
Preparing for the Closing of Your New Home
In the time before the closing, there are several things that must be done. Ways in which this transpires can vary. In many areas it is customary for the seller to arrange for a title search and, at closing, purchase a title insurance policy in the name of the lender and/or buyer. This policy assures good title and protects against claims of ownership or partial interests. The buyer must arrange for a hazard and liability insurance policy to be written for the new house. Such a policy is required for the mortgage loan. A new survey will be made of the property to make sure no building is encroaching on surrounding property. A termite inspection is typically required. The buyer may exercise the right under the contract to hire a housing inspector to report any non-functioning equipment or unsafe building condition. Recall that the sales contract may require the seller to repair any broken component up to a certain dollar limit. Such repairs should be completed before closing.
In some cases it may be necessary for the buyer to move into the house before the closing. Possibly a lease has expired or a previous house has closed before the buyer takes possession. If the new house is vacant, the buyer may arrange with the seller to rent the house in the interim. This is usually done at a nominal rental rate or may even be rent-free, particularly if the buyer is merely storing possessions but not actually living in the home.
In any event, the buyer must obtain the seller's agreement to the arrangement, preferably in writing. The buyer should also check with his or her insurance carrier to see if the policy covers the possessions while in the new house.
Closing on the New Home
On closing day, all parties will meet and execute the necessary paperwork to pass title of the property. Closing generally takes place at the offices of the title insurance company. The buyer and seller are present or represented, along with legal counsel, if required. Also present will be the real estate broke, if one has been involved, and a representative of the mortgage lender. Closing day is considered the first day of ownership for the buyer, and all benefits and responsibilities are conferred at this time.
At the closing, the seller delivers a deed to the home, signifying passage of legal title to the buyer. The deed is a document that describes the title conveyed and acknowledges the identity of the new owner. The buyer provides any down payment required and signs the mortgage documents releasing the borrowed funds to the seller. These documents include a note acknowledging the debt and promising to repay the loan in a specific manner and a mortgage pledging the home to back up the borrower's promise. The seller then uses a portion of the money to retire any existing loans on the property (except for those that are assumed by the buyer), pays the expenses of sale, and receives a check for the balance.
Most of the costs associated with the sale are paid at closing. The agents receive their commissions and the attorneys their fees. There also may be costs involved in inspections, surveys and various legal requirements. The one-time premiums for title insurance are paid. The lender may require payments toward setting up an escrow for the payment of future property taxes, insurance premiums and interest to cover the time from closing until the end of the month. From that point on, mortgage interest is paid at the end of the month as part of the regular monthly payment. In most cases, property taxes are due toward the end of the year. To adjust for this, the seller pays the buyer a prorated share of the tax.
- Benefits of Home Ownership
Buying a home is a major life decision, and owning a home a dream for many families. Owning a home brings many benefits along with some new responsibilities. The following list mentions just some of each that are commonly mentioned by participants in our homebuyer training.
No rent. When you pay rent, you never see the money again. Paying on your mortgage is different. You are building equity in your home. Part of the money you pay each month pays the principal and interest on the loan, but part is going toward your ownership of the house. So at the end of your loan term, you'll have money invested in the home that someone would pay directly to you if you decided to sell the house to him or her.
Freedom from noisy neighbors. In many cases, your own home provides you with more privacy than rental living. For some people this translates into a more quiet living environment, for others it's the ability to have a garden or a garage for the car.
The ability change your home as you like. Always wanted a yellow kitchen or a back porch? In your own home, you make whatever changes or improvements you like. This benefit gives you more control over your living environment, allowing you to make adjustments as your family changes or just as your personal taste dictates.
Some of the new responsibilities you'll see as a homeowner include being responsible for maintenance and repairs on the house as well as being involved in your neighborhood and carrying homeowners insurance.
- Finding the Right Home "What suits you best?"
Do you prefer a downtown high-rise condo, or a secluded abode near the woods? Are you looking for that quaint Victorian with the picket fence or the midcentury ranch that perfectly showcases your 1950s retro furniture? Do you want a bungalow, so your elderly father can move in with you? Or do you need a two-story family home with a two-car garage and multiple bedrooms to accommodate the different schedules and lifestyles of all your family members? If possible, choose a home that reflects your needs and personality.
Is your new home your first? There's nothing wrong with settling for a more modest dwelling that satisfies your immediate needs, before taking the plunge and spending more for your permanent dream home. The average home buyer stays in his or her home for a little more than six years, so allow yourself a chance for transition when the time is right.
Location, location, location
If the thought of sitting in traffic or switching buses and trains to complete a daily, two-hour commute to and from work makes you nauseous, you had better follow the paradigm of 'location is everything.' If you love walking to coffee shops and boutiques, don't move into a new suburb construction just because you'll be able to afford a two story mansion. Your lifestyle and how your prospective home fits into it, should be the main consideration in your decision to buy a home. Many couples with young children now choose their home according to which school district it's located in to ensure a good education for their kids.
What about Fido?
It's heartbreaking to learn that you have to give up your dog or cat, because the homeowner association rules don't allow pets in your new building. Some condominium buildings have restrictions on pets, or place limits on the size and number of pets you can have, so make sure you find out before you sign the contract. If you're looking for a single-family home, check to see if the backyard is fenced to safely allow your dog to go outside. Will it be easy to walk your dog through your urban neighborhood streets on sidewalks and away from busy roadways?
Consider resale value
Stay grounded in reality. Your wish list should always include the potential resale value of your new home. Buying the only ranch home in a neighborhood of two-story houses, or the only 1-bedroom condo in a building full of three-bedroom units, might hamper your chances to sell your home one day. Also, find out if any major construction or infrastructure projects are planned in your area. No one wants to buy a house facing a brand new
- Home Inspections
Why should you use a home inspector? What you may not Know!
Consider a home inspection prior to purchasing a home, condominium or commercial property. This can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the building and the future upkeep.
An home inspection accomplishes two important goals. First, it gives you a chance to determine the condition of the house, its structural soundness, and the condition of its mechanical systems. Second, it brings any problems to the seller's attention at a time when they can be resolved before closing a sale.
Even the most experienced homeowners lack the knowledge and expertise of a professional inspection firm. For example, watermarks in the basement may indicate a chronic seepage problem, toxic mold or simply may be a result of a single incident. Consider using an inspector that a certified with mold testing/indoor air quality.
- Evaluating Property
Is as simple as Do you like the property? Does it meet your needs? Is it the right neighborhood? On the other hand you may want to do more research to find out know how much have other houses in the neighborhood sold for? What is the resale value?
