how to buy a home for sale in philadelphia
Post on 07-Aug-2015
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how to buy a home
So the saying goes that buying a home is the most expensive purchase that most people make in
their lifetime yet at times the process seems muddled with confusion and anxiety. This homebuyer
guide is intended to offer prospective homebuyers a clear synopsis of the home buying process in
Philadelphia.
Condo or Townhome?
Deciding what type of property you'd like to purchase is the very first step. The type of property
may very well dictate the location, especially in major cities like Philadelphia where single family
home prices can jump up quickly and the costs associated with ownership and maintenance also
increase. The major differences between condos and townhomes in Philadelphia is control, as in
who has the final say with respect to decision making. With condos, an elected board of
neighboring owners makes decisions while with townhomes the individual owner has final say.
Another dramatic difference is maintenance. Condos are typically low maintenance as the unit
owner is only responsible for repairs in his or her unit and the condo association is responsible for
repairs to the exterior and common elements. Townhome owners are responsible for all of their
own maintenance and the costs associated with it. Balancing location, control and maintenance
responsibilities is the first step in deciding which home is the perfect one for you.
Offers
Once you have found the perfect property the next step is to submit an offer. The buyer's real
estate agent will draw up the offer and every offer will contain contingencies or "outs" for things
like inspections, financing, appraisals, condo documents, and home sales to protect the buyer in
case the buyer changes his or her mind. Purchase contracts and the associated documents are
quite lengthy so the buyer should be prepared to review and sign/initial approximately 50 pages
worth of documents. Once the buyer signs the offer it is submitted with documents evidencing the
buyer's financial ability to consummate the purchase. If the offer is accepted and signed by the
Sellers, the wheels are officially in motion and the contingency time clocks are ticking.
Contingencies
It's important to note that once there is a fully signed contract, there are certain conditions under
which you may call off the deal and get your deposit back but simply changing your mind is not
one of them. The most common of which are 1) home inspection contingencies – including
property inspections, radon, termite, mold/mildew, and lead based paint 2) financing contingency
3) appraisal contingency 4)home sale or settlement contingency and 5) tenant occupied
contingencies.
Termination and Refund
If the buyer in within his or her contingency period and decides to terminate they are usually
entitled to do so and will be refunded all of the good faith deposit money paid to date. To
terminate the buyer must complete a termination document and sign a request to release the
good faith deposit. In order to get the money released the seller must agree and sign the same
termination and release documents. If there is a dispute the good faith deposit money could be
tied up until 1) both parties agree 2) a court issues a final order or 3) 365 days passes and then
the money is released to the buyer.
Mortgages
The best way to go about obtaining a mortgage is to contact a mortgage broker. They will be able
to give you the best options available from several lenders, not just one. Next the broker will help
you choose which loan suits you best from the almost countless options available: conventional
loans, FHA loans, commercial loans, VA loans, adjustable rate mortgages, home equity loans,
home equity lines of credit, bridge loans and lot loans. How much you have to put down and what
you plan to do with the property ultimately will dictate which loan makes the most sense.
Title Insurance
Title insurance is in an insurance policy just like any other insurance policy only this one protects
the buyer, and lender, against claims in the title to real estate. Title insurance is not required but if
you purchase a home with a loan your lender will require you obtain title insurance to protect the
lender's interest in the property. In PA title fees are set by the state and based on the purchase
price of the home so there should be no variation between companies.
Do I Need A Lawyer?
In Pennsylvania using an attorney to purchase real estate is not required and it's also not very
common. I always advise clients that they are free to pay an attorney if they so choose but that
they should be clear with both the attorney and the real estate agent as to who is performing
which tasks. Being clear about task assignment up front prevent both parties from stepping on the
other parties' toes and makes the transaction go as smoothly as possible.
In Conclusion
I've wanted to write the CenterCityTeam's Philadelphia Condo , Townhome, Rowhome, and Co-
op Buyer Guide for quite some time and I finally found some free time to put my thoughts on
paper. What preceded this conclusion is my advice on the home buying process and the issues
that surround it. The purchase of a condo, townhome, row home, or co-op in Philadelphia can be
confusing, scary, time consuming and exhilarating all at once but getting informed and finding
reputable professionals to help along the way will protect your interests and ensure the process is
as stress free as possible.
Top insights on the best way to buy a home in Philadelphia. Top Philadelphia real estate
company breaks down the differences and what you need to know before making the buying
decision.
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