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Chapter 6. BUYING A HOME

Finding the right dwelling at the right price… Protecting your legal and financial rights as a buyer

A. The Home-Hunting Dilemma - How much? Where? Appearance? Personal needs and desires?

B. Types of Housing1. Houses2. Condominiums and Cooperatives3. Mobile Home4. Multiple Units (duplexes, etc.)

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1. Know Your Price Range2. Using a Real Estate Agent3. Timing4. Looking for the Anxious Seller5. Driving a Hard Bargain6. Knowing Your Needs7. Finding Comparable Value

C. How to Buy a Dwelling at the Right Price (See Personal Action Worksheet, Text page 181)

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8. Evaluating the Age of the Dwelling 9. Understanding Warranties 10. Determining Financing Costs 11. Estimating Utility Costs 12. Estimating Furnishing Costs 13. Determining Property Taxes 14. Evaluating Resale Potential

C. How to Buy a Dwelling at the Right Price, continued

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D. Making the Purchase

E. The Contract1. Description of the Property2. Title and Title Insurance3. The Deed4. Manner of Payment5. Closing Date6. Seller’s Obligations7. Default and Recourse

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F. The Closing

1. Adjustments and Closing Costs

2. Recording the Transaction

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TALKING POINTS…Chapter Six, Number One

You are negotiating to buy a home. How would you react to:

1. You and the seller have been haggling over the price. At first there was a $40,000 difference. Now the difference is down to $25,000, and the seller’s agent tells you, “The seller will knock another $5,000 off the price, final answer… take it or leave it!”

2. You’ve agreed on a price, and the seller then tells you that her job transfer has been delayed by two months. She wants to stay in the house and put off the closing by two months.

3. Your firm written offer to buy the home has been based on the assumption that you would be selling your existing home. You thought you had a deal in hand, but your buyer has just bailed out on you.

4. Your real estate agent tells you that you are offering too much for the property, and that if you have to sell it within a few years, you could lose a bundle.

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TALKING POINTS…Chapter Six, Number Two

You are about to sign a contract to purchase a home - the biggest contract you have ever signed. How would you react, in word and deed, to the following:

1. A neighbor-to-be tells you that there’s a zoning change pending that would allow a shopping mall to be built two blocks away. It’ll be a nice mall, but the noise and dirt from construction might be awful.

2. Another neighbor-to-be tells you that the first neighbor (in #1 above) is a pesty gossip who drives everyone in the neighborhood batty.

3. The guy who did your house inspection calls you to tell you he made a mistake in his report - that there are some serious cracks in the foundation he forgot to mention.

4. You realize for the first time that the home is in the flight path of the local airport, and it can get rather noisy during busy times.