| What to Offer? Buyers |
| Written by Veronica Carrillo |
| Wednesday, 23 December 2009 10:34 |
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Many potential home buyers are questioning if this is the right time to step back into the housing market. Real estate has been one of the hardest hit sectors of the economy. Pundits are divided as to whether or not this is a good time to buy a home. It may be years before the economy and the housing market fully recovers. In fact, the housing bottom cannot be called until values have stabilized and are on the way back up across the nation. In the midst of all this uncertainty, could now be the right time to invest in a home?
Many potential home buyers are questioning if this is the right time to step back into the housing market. Real estate has been one of the hardest hit sectors of the economy. Pundits are divided as to whether or not this is a good time to buy a home. It may be years before the economy and the housing market fully recovers. In fact, the housing bottom cannot be called until values have stabilized and are on the way back up across the nation. In the midst of all this uncertainty, could now be the right time to invest in a home? Which Way Do You Face? Here in the Northern Hemisphere, we get more sunlight from the south than from the north. Because of this, a home with south facing windows will warm up faster than one with north facing windows. This means lower heating costs in the winter, but higher costs in the summer. Here in Florida, where we have to crank the A/C almost year-round, a home with windows facing away from the sun or with heavy shade on the south and west sides will be a little more energy efficient. How Is the Insulation? Having the proper amount of insulation and making sure that your windows and doors are properly sealed will prevent air leaks, keeping the cool/warm air inside and keeping your heating and cooling system more efficient. Yet amidst all the uncertainty about when the housing market will fully recover, and whether or not real estate values and prices will fall further, there are facts out there that support buying a home now. Mortgage rates are at almost historical low levels, and house prices are back at values not seen since 2003. This could be an excellent time to buy if you believe you will keep the property for several years and can wait for the housing market to stabilize. It has been forecast that the low mortgage rates are not likely to last beyond the first quarter of 2010. The Feds have been subsidizing the low mortgage rates by purchasing mortgage backed securities, but that subsidy will end March 31, 2010. At that point, most analysts believe rates will rise. The real estate agent has the obligation to present all offers to the seller. The seller will respond by either accepting the offer, reject it, or make a counter-offer. Usually if he does not respond within a specific date, the offer is considered cancelled. A counter offer will modify the amount, or any other condition presented in the initial offer. The negotiations conducted in this manner will possibly end in a contract, signed by both parties. We name this an "executed"contract. Usually these contracts will require the buyer to complete his deposit with a specific date and it is common to deposit 10 % of the sale price but it could be more or less. This deposit will be kept in an"Escrow Account" which is a "Trust Account" used by the Attorney or the Title company chosen by the buyer. It is common to have the inspection (if agreed upon) performed within 5 to 10 days. When it is a sale of a NEW condominium the buyer has the option of canceling the contract within 15 days after he has received all the required documentation from the Condominium Association, as well as their Financial Statements and Budgets. If it is the RESALE of a condominium property (NOT NEW) the term will be 3 days instead of 15 days. Commissions are generally 6 % (although that could vary) and are usually paid by the seller and will be shared between the seller and the buyer agents. When the sale has been made through the listing agent, without the cooperation of another broker, then the listing agent will be entitled to the full commission. There is no advantage for the buyer to try to deal directly with the listing broker since it will not reduce the commission paid by the seller who is already obligated by his agreement when putting his property for sale. The buyer will have - in my opinion - a much better leverage when he uses his own agent who will choose between thousands of options instead of trying to steer a client to a specific property where he is the listing agent. The closing and recording of the sale are usually done at the office of an attorney or the office of a title company, and both of them will work with the mortgage bank (if there is one involved) and will further coordinate all documents, recordings, payments to third parties and handling of the funds. Residential real estate taxes paid annually are presently about 1.75% per year of the market value or a 2% of the assessed value (which is the value that the county appraisal has given to the property - and is usually lower than the market value). These percentages could eventually change when cities and counties increase their millage (percentage by which the assessed value is multiplied in order to obtain the tax amount). Foreign buyers cannot take advantage of the Homestead Exemption, which reduces the assessed value by $50,000 for calculation of taxes, and is reserved to homeowners who have made the property their permanent residence. Buyers' expenses are variable - in case of a CASH purchase including the title insurance, recording fees, and all other expenses, they fluctuate between a total of 0.80 % and 1.0% of the purchase price. In case of financing the purchase through a mortgage all the expenses of the loan must be added. There will be taxes of 0.55 % (from the loan value) on the mortgage, appraisal fees, and additional expenses that banks and mortgage companies will charge. Apart from "Points" charged by the bank to reduce interest rates, the total mortgage expenses in this case could be between 2.0 % and 3.0 %. Historically, the United States has experienced many recessions. In fact, boom and bust cycles are an economic norm. While this recession has been the most severe since the Great Depression, no one doubts that it will end and housing values will rise again. Historically, property has been a great investment. It is very likely that those who purchase now will reap the financial benefits in a few years. About the Author: Todo sobre Juegos Mario para gente que le gusta jugar Encontrar un Trabajo Empleo es fcil si sabe dnde buscar |