Posts from November, 2009
Location – Community is ImportantBefore you can start your house hunting you need to choose what cities or communities you want to live in. There are several factors that you should pay attention to, not only for yourself, but because you will eventually need to sell the home to someone else. Choosing your community is the first step and most important step in "location, location, location" and can help maximize your future potential resale value.Local ServicesCheck on the services provided by local government. Also look into local crime statistics and see how that city compares to the national averages and other nearby communities. Are fire stations located strategically around the community so that they also can respond quickly in an emergency? Go a step further and inquiry about community services. Does the community sponsor sports and have athletic facilities and parks? Are community events sponsored? Are there activities available for children, teenagers as well as for senior citizens? Your DFW Realtor will have amassed a wealth of information on these subjects and will be happy to talk about them. Economic StabilityWhen searching for a community make sure you check to see that the city has a viable and stable economy. Ten, or fifteen years from now when you want to sell your home you can have a reasonable expectation that your community will still be a desirable place to live and give additional value to your home. In addition to residential areas there should be a mixture of commercial businesses and stores. These not only provide jobs to local residents, but also add an income source that the city can use to maintain roads and community services. You should go for a drive and see how well the community is maintained. Look to live in a city that demonstrates community pride.SchoolsEven if you do not have children pay attention to the local school system. When you sell the property, many potential buyers desire to live in areas with great school systems. Find out if the local schools are overcrowded. Drive around and see if there are auxiliary trailers outside of the local schools. Call the local school district and see if elementary aged children always attend the school closest to their home? Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes? There are also school reports available for free on the Internet.Property TaxesWhen searching DFW Homes For Sale note that property taxes may be higher in one city than in another nearby city. This could affect whether potential homebuyers view a community as a desirable place to live or not. Interestingly enough, they may choose to purchase in a community with higher taxes, because of the perceived value. Higher property taxes often mean newer and more modern schools, well-maintained roads, and many community services. Also, you will often find that the cost per square foot of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Many DFW Realtors and prospective buyers have a bias against communities with higher property taxes. Regardless if you are going to sell your home as a DFW FSBO or have your Realtor put your home in the DFW MLS and resale value is important to you, make property taxes a consideration when choosing the location of your next home.
Property DisclosuresYou have already toured the home, looked at the ceiling, walls and floors, turned on the faucets and flipped the light switches but you have never lived there. The seller may have lived there for many years and have a ton of knowledge about the home. For this reason, in most areas, the law requires the seller to provide potential buyers certain disclosures about the home and sometimes even the area around the home. Since you don’t want to be blindsided down the road with a big expensive repair you want the seller to disclose any adverse conditions in the home. This would also include any problems with the foundation of the house, whether the property is in a flood zone, a noise zone, near a landfill or any other kind of hazardous area. If you have a professional DFW Realtor representing you, in the course of their daily business they will get the necessary forms for you. Take note that banks selling DFW foreclosures are exempt from the disclosures. It is true “Buyers Beware”.Property ConditionThe last thing you want when you move into your new home is to find it a total mess. Make it clear in your offer that you require certain minimum standards. Some of the requirements you should include in your offer are that the appliances work, the roof does not leak, the plumbing does not leak, there are no broken or cracked windows, the yard has been kept up, and any trash has been cleared away. There are many DFW homes for sale so find one that is in good condition and meets all your needs.Home InspectionsAlong with the required appraisal and the pest inspection always get a professional home inspector to go through the house to find any potential problems. Even if they are not things the seller is usually expected to repair, at least you will have knowledge of any potential problems. The seller will want this inspection performed quickly, so that you can move forward with the purchase. Once you receive the home inspection report, you will want to allow yourself a few days to review the report. If you are concerned about any items on the report you can negotiate with the sellers on which repairs will be performed and who will pay for those repairs. If no agreement is made, you can cancel the purchase without penalty, assuming you have included a home inspection contingency in your offer. Always get a Home Inspection!Walk-Through InspectionRight before closing on your DFW Real Estate, you should revisit the property to make sure it is in the condition you have set in your offer. Be sure to inspect that any required seller repairs have been performed made and are made in a professional manner. If you were smart enough to use a DFW Realtor in your transaction make sure they accompany you on this final walk through inspection.
When buying a Plano home there are all kinds of people and services that are involved to make it all come together for closing. Because many of these services affect both the buyer and the seller, there needs to be agreement about which vendors the parties will use for these servicers. When the buyer is putting an offer together their Plano Realtor should request the buyers choices for these necessary services. If they are unfamiliar with these service providers, they can get recommendations from their agent and sometimes even the seller.Escrow and ClosingA settlement company is necessary to act as an independent third party between the buyer and the seller. Example, how would one know when they fork over their money that they are going to get the deed? This is the type of service provided by the settlement company. They will hold the earnest money deposit and coordinate much of the activity that goes on during the escrow period. Since the settlement company is so important to both parties and both parties will pay fees to this company, it is important to agree on which services to use. The choices should be part of the written offer. Since the buyer is probably unfamiliar with companies that provide these services. Your Plano Realtor can make these recommendations. The seller will also have a preference in these service companies and this may be a point of negotiation in a counter-offer. It has become customary that one side will choose the settlement company and one side chooses the title insurance company.Title InsuranceTitle insurance is very important when you buy Plano Real Estate, by providing an Owner’s Policy, they insure that the buyers have clear title to the property. If there are any problems later, they can go to the title insurance company and have them take care of it. Since it is customary for the seller to pay for the owner’s policy, they have an interest in which company is selected. Title insurance is a good idea anytime a home is purchased and it is particularly important when you buy a Plano Foreclosure because one can never be certain that all the appropriate actions have been taken to clear title to the home.
Since most buyers do not have enough cash available to buy a home they need to finance their purchase. Take a look at the things can affect your offer. The Down PaymentYou will need to disclose the amount of your down payment. This allows the seller to evaluate the likely hood of you being able to obtaining financing. It is easier to obtain financing when you make a larger down payment as the underwriting guidelines are less strict.The Interest RateA good reason to include your financing information in your offer is to help protect yourself. If interest rates suddenly rise you may looking at a much higher mortgage payment than you expected. By putting a maximum interest rate in the offer, you are protecting yourself from such a situation. On the other side of things, the seller will want to see that you have flexibility in the financing terms that you are willing to accept so that there is a better chance you will make it to closing.The Closing Costs IncentivesAs part of your offer you can request that the seller pay all or a portion of your closing costs. A common request, especially with first time buyers, is asking the seller to provide funds to buy down your interest rate for the first year or two. Whenever you ask the seller for incentives such as these, you will probably find the seller less willing to negotiate on price because they are looking at what they will net on the sale.The Seller FinancingAnother possible request is to have the seller hold a second mortgage to help facilitate your purchase of their home. Seller financing is prevalent in cases where the seller does not need all the proceeds from their sale in order to purchase their next home. If seller financing is part of your offer, you should include the terms you wish to pay on said financing. Your first mortgage lender needs to know this information so they can underwrite your loan meeting certain minimum requirements. The Cash OffersIf you are making a cash offer to buy a home, it makes sense to need to provide documentation “proof of funds” with your offer that shows you have the necessary funds available.If you are looking at Plano Homes For Sale seek out a professional Realtor that has access to the powerful Plano MLS so that they can provide you with information on all available listed homes for sale. Many times seller financing is listed on the MLS printout making it easier to find these types of homes. If you are looking for a great deal in the DFW Metroplex look for Dallas Foreclosures as a great source for fining a great home at a great value.
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