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Seattle Real Estate
Agent | Buying RealEstate | Reals Estate | REALSTATE
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If you're
buying residential real estate a
little homework makes all the difference.
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Points to
remember before buying Residential Real Estate
by
Subhash Kumar
If you're buying the residential real estate a little homework makes all
the difference. That's because the property-buying process is different
in every state in the union, from California to New York, Colorado to
North Carolina. You can count on a few steps being the same along the
way. Purchase real estate according to your needs.
There are several types of residential income-producing real estate,
each offering different levels of revenue potential and carrying varying
degrees of risk.
The most basic of these types of real estate include:
* Duplex (two units)
* Triplex (three units)
* Fourplex (four units)
* Rooming house (many rooms with shared kitchens and bathrooms)
* Low-rise apartment building
* Mixed-use commercial and residential
* Properties that need to be fixed up for resale
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Private
Mortgage Insurance (PMI)
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Information about the Real Estate You're
Buying - For most people, a house is a significant purchase. You want to
purchase residential real estate you'll enjoy living in, and that
will also sustain and hopefully grow in value. Look for things that can
add to, or take away, value in your property. |
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* Location of
residential real estate: Find out about the neighborhood. Is
it in demand? Are there grocery stores, shopping, and good schools
nearby? The "Neighborhood Profile" feature is a great place to start. It
gives you important details such as population in the area, average
incomes, crime rates, and types of housing nearby.
* Features should be right: You want
features that you like, but it's good to buy with your property's resale
potential in mind. To find out which features are in demand, browse the
local residential real estate ads and see which ones are mentioned
frequently.
* Current condition of the home or real estate:
Is the roof leak-free? Are there termites? Is the electrical work up to
code? Issues like these can add costs after the purchase, so make sure
to know about them ahead of time. Consider using a professional
inspector who is trained to see things you may not.
Residential Real Estate must be in your Budget
While there are many different types of residential real estate
mortgages, fixed rate mortgages and adjustable rate mortgages (ARMs) are
the most common.
* Fixed rate residential real estate mortgages:
Fixed-rate mortgages set your interest rate prior to closing on your
home and the rate does not change for the term of the loan. Many banks
allow you to lock in a favorable interest rate several months prior to
closing. If you expect rates to rise, you may want to lock in a rate
even earlier -- usually for a fee based on a percentage of a point (1
point typically equals 1% of your loan).
* Adjustable rate residential real estate
mortgages: An adjustable rate mortgage (ARM) has a lower
initial interest rate than fixed-rate mortgages, but the rate will vary
throughout the term of the loan. The bank can raise your rate in
accordance with a rise in interest rates with an adjustment period
determining the frequency of your rate change. ARMs generally have an
interest rate cap, with yearly and/or lifetime maximums.
Due diligence
As with all major decisions, in buying real estate, you will want to
make sure you get full information and the best advice possible. You may
want to consider using an experienced real estate broker who can help
you with your due diligence, negotiations, and closing. Consider real
estate purchase specifics before moving forward with any real estate
purchase.
* Price: Am I bidding on the full
price of the parcel, or am I bidding on a down payment?
* Title: Is the title clear; that
is, free of liens, easements, and other encumbrances? If the title isn't
clear, what are the easements on the property?
* Insurance: Can I get title
insurance at my own expense?
* CCRs: Are there any covenants,
codes, and restrictions on the property?
* Deed: What type of deed will I be
getting? |
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Seattle Real Estate
Agent | Buying RealEstate | Reals Estate | REALSTATE
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Brokers | Seattle Real Estate Agents
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