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Buying A Home        Selling Your Home

 

1. Why should I buy, instead of rent?

Yes!!!  The feeling of ownership, the cost savings and the equity build-up that can only be realized by a home owner will validate your decision to but rather than rent.

OWNERSHIP

You’ll love the feeling of having something that’s all yours - a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen...when you own, you can do it all your way! But there’s more to owning a home than personal satisfaction.

SAVINGS

You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from you state taxes, too. And interest will compose nearly all of your monthly payment , for over half the number of years you’ll be paying your mortgage. This adds up to hefty savings at the end of each year. And you’re also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly check and it’s gone forever. Another financial plus in owning a home is the possibility its value will go up through the years.

EQUITY BUILD-UP

By making the monthly payments on your mortgage, you are building up your equity portion in your property.  Like a "forced" savings account, the equity build-up can help you save for your future, whether it be early retirement, your kids college tuition or maybe another home.  In addition, over time the value of your home may rise adding unforeseen equity to your home. 

2. I’ve had bad credit, and I don’t have much for a down-payment. Can I become a homebuyer?

Yes!!!   We can put you in touch with a mortgage lender no matter what your financial background may be.  Homeownership is at an all time high, and our mortgage experts can help you join the thousands of people becoming home owners every day.

3. Should I use a real estate broker? How do I find one?

Using a real estate broker is a personal decision.  All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money.  


4. How do I find a lender?

Look no further!  The New York Appraisal Mgmt. Co. will provide you with a list of lenders with whom we work with on a daily basis.  .

 

5. In addition to the mortgage payment, what other costs do I need to consider?

Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you.  Ask the seller for an estimation of his/her monthly utility bills.   In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment.

6. So what will my mortgage cover?

Most loans have 4 parts:

Principal: the repayment of the amount you actually borrowed;

Interest: payment to the lender for the money you’ve borrowed;

Homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders;

Property taxes: the annual state/city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.

 

7. When I find the home I want, how much should I offer?

You real estate broker or agent will be able to offer you insight in this area.  However, if you are going at it alone, consider hiring a professional real estate appraiser to assist you in estimating the properties current market value.

 

8. What if my offer is rejected?

They often are! But don’t let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don’t get so caught up in negotiations that you lose sight of what you really want and can afford!

Don’t hesitate to ask questions. If your questions has not been answered above, please send us your questions at customerservice@nyamc.com and we will do our best to help.

 

 

Selling Your Home

If you've decided to sell your home, you probably are caught up in a host of emotions.

You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures.

Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly.


Time Becomes Money

It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new
home first and then try to sell your present home, you may wind up with two mortgages.

If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you choose to accept a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. 

Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be
coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all
agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.

If you are going to sell your home yourself, consider hiring a professional real estate appraiser to provide you with an estimation of your homes present market value.  Doing so will assist you in setting a fair and reasonable asking price; you don't want to have your home listed for sale longer than is necessary.  We recommend The New York Appraisal Mgmt Co

Check Your Curb Appeal

A home that's visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to
view your property through an outsider's eyes.

    1. Are the lawn and shrubs well maintained?       
    2. Does the driveway need resurfacing?
    3. Are the gutters, chimney and walls in good condition?
    4. Do the window casings, shutters, siding or doors need painting?
    5. Are garbage and debris stored out of sight?

The industry term for this is "curb appeal".  You want potential purchasers to drive up to your home and be attracted by its outside appearance so that they are anxious to view your entire property.



On the Inside

Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home's interior without spending a lot of money.

Cleaning is the #1 priority.  Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets, repair dripping faucets and oil squeaky doors. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home.

Remove unnecessary clutter from the garage, basement, attic and closets. If your home is crowded with too much furniture,  consider putting some things into storage.  This will make your home appear more spacious and makes for a better appearance.

Painting:  If a room needs a fresh coat of paint, use a neutral off-white.  Lighter colors give the impression of a larger size room.

Odors?  Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others.

Mood:  Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Place scented potpourri around the house or, on the day you're expecting a potential buyer, pop a batch of frozen cinnamon rolls into the oven for a welcoming aroma.

Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It's attention to the basics -- anything that says "this home has been carefully maintained" -- that will help you get the price you want.



Go It Alone--or Choose an Agent?

Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate will vary, depending on where you live or what agency you choose, but it is generally upwards of 5%.  However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What's more, buyers who know you are saving on an agent's commission may offer less for your home, wiping out the financial incentive to do it all yourself.

You may decide an agent's commission is a bargain the first time that a would-be buyer shows up unannounced at dinnertime.  Also, be aware that a real estate agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:

They will help you negotiate with the buyer.

If you decide to sell through an agent, ask friends and neighbors for recommendations. Talk to several agents before picking the one you want to work with. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don't sign with an agent just because he or she suggests the highest asking price. Negotiate the broker's commission prior to listing your home, and sign for a limited
period of time -- usually three to six months.



Setting a Fair Price

Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months.

Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.

    Your location
    Economic conditions
    Supply and demand in the local housing market
    Seasonal influences
    Local schools
    Average home prices in the neighborhood
    Your home's extras -- pool, fireplace, central air, etc.

To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own.


The agent can help you adjust for the unique features of your own property. 

Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.

    The buyer's debt and credit history
    The buyer's current income and employment
    The buyer's cash position and availability of a down payment
    The length of time the buyer needs before closing on your home
    How interested the buyer appears to be in your home versus others

Seek Legal Representation

When selling your home -- particularly if you are selling on your own -- it's a good idea to be represented by an attorney.  Look for an attorney with expertise in real estate transactions. When a potential buyer puts an offer in writing and you accept it, the signed acceptance becomes the sales contract. Your attorney will be present at the actual closing to protect your interests and can assist you with the following elements of a sales contract:

The sale price
What is included in the sale price - draperies, carpeting, light fixtures, heating oil, etc.
The amount of the down payment
The date of settlement and possession date
Contingencies to the sale--inspections, required improvements, legal review of the contract by the buyer's or seller's attorney, etc.
The amount and length of the mortgage loan, interest rate and time limits to secure the loan
Determining which closing costs are to be paid by the buyer and which by the seller



Tax Implications

Selling a home can have a major impact on your federal and state tax returns. Check with your tax consultant on the factors that may affect taxes resulting from the sale of your home. For example:

Gain from the sale of a prior home on which tax was postponed
Whether you purchased the home or acquired it by gift or inheritance
Whether you used your home partly for business or rental
Costs associated with selling your home
Home improvements or additions, which may help to offset capital gains
Your age (If you are 55 years of age or older, you may be eligible for a one-time-only capital gains exclusion of up to
$125,000 on the sale of your home.)
Purchase of another home of equal or greater value within two years prior or subsequent to the sale of your current home
The sale of your home. In certain cases you can exclude up to $250,000 in gain ($500,000 for married couples filing a
joint return) on the sale of property that was your principle residence for at least two years. Generally, you can use this
exclusion every two years.

Congratulations!

You've successfully weathered the logistics of selling your current home, and you're ready to move on to a new and exciting chapter in your life.  Good Luck !!!

Don’t hesitate to ask questions. If your questions has not been answered above, please send us your questions at customerservice@nyamc.com and we will do our best to help.