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Tips on Buying a Home

February 2, 2009

Buying a home is rarely a simple and stress-free process. It's hard to remember every detail to look for when you visit one property after another. Below you'll find a handy home inspection checklist that can assist you while you're house hunting. This list is not a substitute for an inspection conducted by a licensed home inspection professional. It can be used to bring areas of concern to his or her attention.

When choosing a real estate agent, ask a prospective broker the following questions:

How long have you been licensed?
How long have you actively worked in the area?
How many home sales have you closed in the last three months?
Will you act as a seller's or buyer's agent?
Are you a member of the National Association of Realtors?
Have you earned any specialty professional real estate designations?

As you begin your search for the perfect home, keep in mind these tips for getting started.

Pre-qualify with a bank or mortgage lender to find out how much of a house you can afford.
Develop a checklist of characteristics you want in a home.
Determine what type of neighborhood you want to live in.
Determine what facilities and amenities you want in your community.
Let your broker know your likes and dislikes, and prioritize them for yourself and your broker.
Eliminate houses as you search, keeping no more than three to five possibilities at one time.
Be prepared to make an offer and leave a deposit when you find the house you want.

When you find the home you are interested in, keep in mind certain questions to ask your agent or broker. Your agent's ability to answer these questions may depend on their relationship with you (for example, are they acting as a buyer's agent, seller's agent, or dual agency).

How long has this home been on the market?
Is this the first time the home has been listed by this seller?
Does the home and property have any easements attached (public or private)?
What items in the home are included or excluded from the sale (washer/dryer, refrigerator, window treatments, and so on)?
Have there been any price reductions on the home during its listing period?
What is the price range of other homes that have sold in the neighborhood
What are the demographics of the neighborhood?
What is the average time homes have been on the market in this neighborhood or area?

If you are considering the purchase of a condominium, you should be aware of some special considerations. In recent years, condominiums have become an excellent alternative for many homeowners. They are generally less expensive than conventional single family houses, yet they offer all the features and benefits of home ownership. The term "condominium" describes a type of joint ownership. Each unit is individually owned while the facilities and common space are owned collectively by all the unit owners and/or association. A condominium unit's owners usually pay a monthly maintenance fee, which covers the management of the complex and upkeep of the common property areas. Selecting a condominium is more complex than buying a single-family house because it also involves joining an association consisting of other owners and managers. As a result, you and your mortgage lender will need to investigate not only the specific unit in which you are interested, but also the entire complex from a physical and financial standpoint.

If you own a condominium, your condo association probably has a master policy that insures all of the property and common areas that are collectively owned by the unit owners. These policies usually cover the physical structure of your home and therefore you do not need to purchase this coverage separately. At the same time, the association's policy does not cover your personal property or your legal responsibility, and may not cover improvements or custom work to your unit.

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