Benefits Stability Freedom / Flexibility Decorate Pets Tax deduction Equity (Profit) Ownership (outright) Drawbacks Down payment (saving) Value may not.

BenefitsStabilityFreedom / Flexibility

DecoratePets

Tax deductionEquity (Profit)Ownership

(outright)

DrawbacksDown payment

(saving)Value may not go upLimited mobilityHigh expenses

RepairsMaintenance

• Single-Family Dwellings• Multiunit Dwellings– Duplex– Townhouse– Condominiums– Cooperative Housing (Coops)

• Shares in a Corporation that Owns the Property– Prefabricated Homes– Mobile Homes

Price and Down PaymentExamine your income, savings, current

expensesDetermine how much you can afford to spendHow much will you qualify for

Size and QualityTrading Up

SizeLocation

NeighborhoodCitySuburbsSmall town / country

Employment OpportunitiesCost of livingClimateLifestyle Schools

Hiring a Real Estate AgentThey arrange the sale/purchase of

buildings/landProvide info:

LocationMarketContacts: attorney, insurance, inspector

Internet / WebsitesNewspapers

Overall SizeLocationSchoolsProperty TaxesLiving Space

BedroomsBathroomsKitchen

Determine your price for the homeLook at the listing priceHow long has the home been on the

market/listedSimilar homes sold in the neighborhoodBuyers/Sellers marketCurrent owners (in a hurry, old, estate,

relocating)Condition of homeHome fits your needs/wants

Offer may be accepted, rejected, or counteredConditions

Closing cost (bank, attorney, inspector, title insur)

On the sale of the home currently living inSign Purchase Agreement / Contract

• Down Payment– Suggested 20% or more– Private Mortgage Insurance (PMI)

• Financial Qualification– Income, debt, savings

• Interest Rate Factors– Market rate & Credit Score

• Repayment Period• Size of Mortgage• Monthly Payments

• Fixed-Rate (aka conventional)– Fixed interest rate and schedule

• Adjustable-Rate (ARM)– Interest increase or decreases during life of

loan• Graduated Payment– Payment increases

• Subprime – Higher Interest Rate for Those with Poor

Credit• Government Programs - (FHA) & (VA)

Home Equity LoansBased on difference between current market

value and the amount owed on mortgageRefinancing

Another mortgage to replace the current one

• Closing Cost– Title Insurance

• Insurance from problems found on title after purchase

– Property Taxes– Home Owner Insurance– Bank Fees– Attorney Fees (may not be required)– Points – may buy points to lower interest rate– Mortgage Lock-in

Preparing Your HomeRepairs / PaintClean / Bright / AiryMaintenance (lawn / pool)

AppraisalReal Estate Agent ComparisonsEvaluate an improvements

Already completedOnes to increase value

KitchenBathroom

Actively workingCommission (5%-7%)MSL (listing it for

the public)Advertising

Save you moneyTime and EnergyHandle your own

Advertising

Sale by Owner