As we show you in this video, start several months before the property is made available. Look through the eyes of a buyer What needs to be cleaned? Repainted? Repaired? Or tossed? Ask yourself - or a friend If you were buying this house what would you want to see? The goal is to show a home that looks good makes the most of it is assets like space and location and attracts as many buyers and as much demand as possible. Allow yourself enough lead time - not just a day or two - to make the most of the sale. And get help from a real estate agent - early.
Books and songs have titles; so do homes! The word "title" has a specific meaning in relation to property; it essentially means valid, provable ownership. If you "hold title" on a home, you own it. Its not as automatic and clear-cut as you might expect, so its worth watching this short video to get the basic idea. If youve ever played a board game where you own properties, houses and hotels...thats a great way to get keep "title" in mind. Imagine what would happen if the game table fell over, and all the pieces and cards were scrambled. Being absolutely sure who owns what, and where the pieces should go, suddenly gets complicated. Fortunately, in the world of real property, government entities act like a neutral party keeping records. In the long run, your home may become one of your biggest assets. You can insure your ownership of the asset with title insurance. Meet Stickman; hell explain title insurance with that board game.
Beautiful, modern model homes and neighborhoods can make the job of comparing different builders and projects a challenge. Here are a few questions to help you. Ask everyone the same questions, like: How is the final price of a home in your project set, and when? Do you offer a warranty option? Can we have a copy of the warranty terms? How many different models are available? Can we see plans or brochures? Can I make changes and upgrades during construction? Until what stage? When do inspections take place in your construction schedule? Who would be supervising construction of our particular home? When is completion scheduled? What happens if there are delays? Also ask about other projects, and their history in this business: Are you insured? Licensed? How many other homes have you built? Where? Do you provide references, such as from prior buyers? Ask for written confirmation of things you consider to be key. Compare the answers from different projects, sales teams and builders. And consider involving a real estate buyers agent, or new-home cobroker, for professional advice.
A builder can help make the home-purchase process easier and faster by making arrangements to have a lender on-hand who is already familiar with the project and/or models. The question the home buyer must answer for themselves is, is this "preferred lender" the best choice for them. The most effective way to do this is probably to obtain loan terms from other lenders. With multiple Loan Estimate forms in hand, you can easily compare apples-to-apples and see what advantages the preferred lender has to offer. In addition, you should be aware of current market conditions for transactions like yours. Compare all terms carefully; if in doubt, or if some aspect of a builders offer are only available with the preferred lender, ask for clarification in writing. Should you feel pressured toward one particular lender, ask for written confirmation that no parties are receiving monetary benefits from any other parties. That is illegal under RESPA (Real Estate Settlement Procedures Act) regulations! The desire to close quickly is natural, but make sure your long-term financial interest and home choices are not compromised for short-term speed. .
New-home builders frequently offer additional terms to help close sales quickly; these are usually called "incentives." Incentives are frequently used at critical times, like the end of a financial period, or for particular models or lots. Here are some of the most common: Cost-reduction incentives reduct short-term or up-front costs. For example, a builder might use a cash contribution to closing, or waiver of premiums on the lot, as cost-reduction incentives. Value-add incentives provide upgrades to the home being purchased. A decorating allowance to upgrade appliances, floors or fixtures is a common value-add. Value-to-buyer incentives are not necessarily connected to the house, but they are of value to the buyer. A trip to Hawaii, a car lease, or a big-screen television are all examples of this. Time-to-close incentives speed up the process. For example, if the builder has arrangements with a lender, with details of their project and models already in place, the buying process could be accelerated. While incentives can be emotionally tempting, try to evaluate them neutrally. Would you BUY the item or addition? What will it actually cost over time as part of the mortgage? Is the price fair or inflated? With lender arrangements, ensure that the terms are still fair compared to market terms. As a final check, get advice from your real estate agent or certified new-home cobroker.
A "home warranty" is frequently available at the time of purchase, and may even be a tool in negotiating terms. These warranties provide protection for a short period of time — like 1 year — against unexpected costs in home systems and appliances. A failed heater or oven, for example, might be covered by a home warranty. This financial protection in the period immediately after home purchase can be helpful, especially if down payment and closing have drained cash reserves. Home warranty may not be an option after purchase, so consider the benefits and costs prior to finalizing your deal.
Homeowners insurance is required to close the transaction. Start early to give yourself the best shot at saving costs here. Get quotes from several insurance providers. Compare insurance costs as part of comparing properties. For example, a newer brick home may have lower premiums than an older wood home. Location may affect insurance costs. Check on the proximity of fire hydrants and fire departments; closer may equal savings. Look for group protection through service organizations or alumni associations. Home purchase may be an excellent time to consolidate insurance and pocket savings. Covering home, auto and other insurance with the same company is frequently less expensive. Consider and shop deductible options in the process. Raising deductible may lower premiums, if you can handle the increased out-of-pocket consequences.