CH 6 Housing and Transportation What is part of a good house Kitchen is the most expensive and the main room in the house The cabinets are the most expensive part Another thing to look for is 10 linear counter space counter plus Granite is very popular right now and cost quite a bit depending on thickness and type The best shape of a kitchen is a U shape The first thing you put in is the sink L shape is second to a U shape Turn ons The word granite will help to sell the house The world maple will also help referring to the wood in the cabinets The word cherry also helps sell Gourmet Garage single double triple Fireplace depending on where you are Lake waterfront river etc Pool Beautiful Landscapingd They check this by time and final selling price Starter home the idea is small but inexpensive sells faster Move in condition Turn offs Fresh paint Handy man special Must sell divorce related Ads are expensive but use the correct words to describe the place How many houses does the average person look at before they buy The answer used to be 17 Newer studies say 50 100 houses They tend to be drawn to one o the earlier houses In 1950 the average house had 963 sq feet In 2012 the average is 2 300 sq feet Steps in Buying a Home How do you know when you are ready Stable job Stable income The bank can confirm whether or not you can afford a house in a certain price range Most people in America want a single family home When the economy went down the single family house held its value Multi unit homes can be duplexes or a triplex Townhouse is the next option A condo varies so much in price you have to think about the extras that you would have to pay for pool lobby parking spaces etc YOU PAY FOR COMMON AREAS TEST QUESTION What is the difference between a Co op and a condo With a Co op you own a share in the whole building versus owning the unit outright The larger the apartment in the Co op you own a bigger share than the person who owns a one bedroom on the bottom floor The other owners will help determine by voting how much you pay sell it for etc They can have rules about pets kids and who can live there Frasier is an example Will and Grace The problems with condos is that you bought a place and you share heating and air smoke can come through from other places into yours Manufactured Housing Units assembled somewhere else and brought to the site They say we are going to have more of these in the future Mobile Homes cost depends on commuting distance Zoning Laws determine what can be built on property and what are the rules Fencing Garage Pig farms Pay attention more so in a country Business in home personal trainer Know what the school zoning laws are Say you have a beach house and the hotel next store was 2 stories and now they decided to make it 10 stories The beach house doesn t feel as much privacy and the squeeze is that one of those hotels are going to want to buy their properties property taxes go up Decide whether or not you want a Realtor 6 avg of the sale 6 000 100 000 If you are a realtor do you want to sell a lot of condos or sell one or two big ones for high amounts Real estate business the 6 is negotiable and the higher the price of the home the lower the Most people start out trying to sell it themselves but then later on hire a realtor During a recession is when you most likely need one A good realtor pre screens the people that can see your house versus open house Review and Notes Average price of homes UCLA LA 463 257 FSU TALLAHASSEE 196 291 UF GAINSEVILLE 149 320 Mortgage rates over the last few years its been between 3 5 4 5 this is the loan to buy a house and this is the average interest rate First time homebuyers make up 40 of the market so they are very important They look at liquid assets income and some states make you show pay stubs FICO score before you buy a home PITI principal the house itself interest taxes and insurance total cost of your house Housing takes about 32 of family budget and transportation is about 18 Depreciation cars and homes The cost of owning a vehicle variable and fixed insurance and gas Renting VS Owning Rent Rent Lease Security deposit Tenant rights Sublease Budget Items Housing most expensive thing Transportation What do you like What can you afford Formulas 25 to 40 of your take home pay Typical is 32 Depends on circumstances career other expenses Owning Appreciation Reasons for buying Steps in Buying a Home Step 1 Determining Financial Readiness PITI Median price of a house Renting is fine for 2 5 years Security cash cd s savings bonds enough insurance Real estate involves more risk but maybe a greater return over time Building a down payment normally 10 of the price of the house Extra People who make money in real estate take time Step 2 Determining Preferences What type of house you want to live in Condos Co ops Manufatured housing Single family homes Step 3 Making an offer Real estate agents Binder Extra Real estate agents charge about 6 Buyer s Agent let s say where you are going to a place where it is really hard to find houses for sale You would pay them 1 to 3 of your own money in order to get something To make the offer firm you give a binder earnest money Lets say there are three houses and you like one the most You put a binder that goes to the Mortgage Company or lender to hold the house The binder could be a check for 1 000 to 10 000 dollars They essentially take the house off the market while they process everything You get the money back if the owner decides not to take the offer The mortgage company holds this money in escrow Home Warranty this is normally a new sub division and the builder supplies you with the home warranty This just means that the house is in good shape You want to find out what this warranty covers It is an additional protection to the buyer Certified Home Inspector you want one of these to go over the house Usually the buyer pays for it The seller can do this ahead of time Some states make this mandatory Step 4 Getting Financing Mortgage loan Down Payment Sources of loans Types of loans Extra Certain things are going to be done about the house Title Search find out the legal right of ownership Abstract a written history of the property This is a very big deal when you buy foreign property Deed document …
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