COA 4131 1st Edition Lecture 11 Outline of Last Lecture I. OwningII. Steps in Buying Home Outline of Current Lecture III. Steps in Buying Home IV. Property TaxesV. Selling a HomeVI. Consumer Mortgage InformationVII. Transportation and Vehicles Current LectureA. Steps in Buying a Home a. Step 5i. Closing1. There is often wine or soda or something that will put buyer at ease so they don’t get cold feet and back out2. Sometimes seller has second thoughts and cold feet, but more times than not the buyer gets cold feet 3. Some people like character and eerie vibes but should realtor tell this info?a. Probably should but don’t have to ii. Points 1.B. Property Taxes a. Fair market valueb. Assessed valuec. Billed and paid once a year d. Refinancee. Second mortgages/home equity loans i. If you want to add a second story, some bedrooms, or a pool, you can addanother mortgage ii. Borrowing from your own house to do something elseiii. Have to pay off first mortgage first 1. First mortgage is $1,000 and second is $200 so you’d pay $1,200 C. Selling a Homea. Setting the pricei. 10% of homeowners sell their house themselves without a realtorii. Some people try this and end up going to a realtor when it doesn’t sell1. usually after 6 months iii. Home Depot is dabbling in real estateiv. Multiple by .3 to see how much you can afford for a house v. First time buyers make up 40% b. Marketing c. Realtor D. Consumer Mortgage Information a. Florida State University Credit UnionE. Transportation and Vehicles a. Leasing i. Brand new car for 3 yearsii. Monthly payments may be less than leasing than owningiii. Advantages 1. It’s an asset you can’t own2. It’s convenienta. You can have a more expensive car than you could afford if you owned b. Realtors need nice cars 3. Don’t want to get involved with buying and selling car, which is a process4. Your job company might pay for your car iv. Disadvantages1. You do not own it 2. Extra cost3. Should have 36,000 miles on it a. Most Americans drive 45,000 and they know thatb. Have to pay a premium when you go over 4. Repair a. You’re in trouble 5. Where you are in the world, if you transfer, what do you do with the carv. 30% of people lease at some point b. Buyingi. Used/New1. The best used car you can buy is a leased cara. They’ve only driven it for up to 3 yearsb. Has low mileage 2. Want to test run the car 3. Think about gas prices ii. Saturn1. http://abcnews.go.com/Business/wireStory?id=87185332. Set price and would not budgea. Went out of business in Tallahasseec. Fixed/variable costi. Gas- variable 1. SUV: $85-100 ii. Fixed: monthly
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