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Buyer Frequently Ask Questions

Sales Package

 

Is now the time to buy a home?

  • Before WWII it was almost impossible to get a loan without paying half down
            And, then paying the balance off with a 5 year balloon note
    • A good job paid about $4,000 a year.
    • A new 3 bedroom, 1 bath home cost $10,000.in 1950
    • There were about half as many people living in America  (150 million)

Then, as now, people were afraid to invest in their future

  • Now a good job pays $40,000 a year
  • That same home today would be old and worn out, but worth probably $100,000
  • And, someone has lived there 60 years.
    • Would that be rent free for 30 years?

  • The 2010 census shows we have over well 300 million people living here now
    • Net increase is 1 person every 11 seconds
    • Even with 5 people in a house, that's a new home needed every minute of every day

Fear is blinding us from seeing the future

  • Prices needed to adjust to reality
    • The rule of thumb for financing 30 years ago was the home price should be a little over 2 times your yearly income
    • Now it is more like 4 times annual income
  • Prices may fall some more, but really, just how much do you think they will drop?

More people will need more homes

The future is that the population will over double again before you can pay off a 30 year mortgage

  • Do you think those 600 million people will want a home of their own?
  • What do you think will happen to the value of a home priced at $100,000 today?
    • Even that old house built in 1950 will have someone living in it, and they will be happy to have a home
      • Bet they will wish grandpa had bought a few as investments

Interest is the same

  • Now, 60 years later we can buy a home with little down and at incredible interest rates, financed for 30 years
  • Interest rates then were about 5% then and now in 2012 they are only 4%

It's your decision, just like the buyers of 1950

  • Do you need somewhere to live for the next few decades?
  • Do you want your own home and all the benefits?
  • Do you want to be debt free when you retire?
    • Or
  • Are you willing to rent and hope the rent will stay the same for 30 years?
    • And, then hope the landlord will say he has made enough money?
      • Good luck with that strategy

Once you decide it is the right time to buy a home

Consider the next question

What does it cost to have your own New Location Realty agent?

The better question is what does it cost to not have an agent?

  • This is one of those situations of what you don't know can hurt you
  • Agents are normally paid by the seller,
    • Use a free tool that can help make your home shopping easier

New Location Realty can help in many ways,
One way we can help is to set up automatic emails from the Birmingham Multiple Listing Service
This lets you know of homes that come on the market that match what you are looking for and you know the day they are available
For Free
 

                *Important Notice*

            Alabama is the last buyer beware state

  • The seller does not have to tell the buyer anything unless they know it is a health or safety issue
  • Or if ask a direct, specific question

This means you need to ask the right questions before you buy


The following are all different services you may need

An Appraisal  ----  Does not look for things a Home Inspector will

Is not a Home Inspection   ----  May suggest you need specialized inspections

Is not a Termite & Pest Inspection or Air conditioner inspection

Is not a Home Warranty

Is not Home insurance

Is not Title Insurance

The following links have more information for these services

Appraiser   They are chosen from a pool of appraisers, and lenders have no control over the choice

Home Inspection Information 

The home inspection is not an excuse to  re-negotiate the contract unless there are major problems uncovered

Inspectors will always find a long list of minor problems. You knew it was a used house, expect little issues

Home inspection is one of the critical "time is of the essence" points, that if missed, your rights are lost

   You may choose from any of a long list, this is just two of many

AmeriSpec Home Inspection

Griffin Home Inspection

If you need a specialized inspection such as roofing or heating & air, or any other get a professional

Stewart Roofing Residential and Commercial roofing contractor

Arctic Breeze  Heating & Air Contractor  (My son's company)

Mold & Mildew Information

Termite Information   You may choose any, this is just two of many

          Vulcan Termite 

Alabama Professional Services Termite and Pest Inspection

Home Warranty      You may choose any, this is just two of many

AHI Home Warranty Information

Home Warranty of America

Old Republic Warranty Information

Home Insurance  You may choose any, this is just two of many

Farmers Insurance

ALFA Homeowners Insurance

Title Insurance You may choose any, this is just two of many

Jefferson Title rate charts

Gulf States Title

Flood Insurance

Taxes

Jefferson County Tax Collector

Jefferson County Tax Parcel Information

Shelby County Tax Assessor

Shelby County Tax Parcel Information

RESPA  (federal law)  gives you the right to choose closing service providers

Real Estate Settlement Procedure Act  RESPA


Alabama law requires all parties to be informed of all closing cost

Closing Cost of a home purchase

Sample "net sheet" of closing cost

HUD Booklet on closing cost


Alabama law requires all agents to give you, the consumer, this RECAD form

Real Estate Consumer Agency Disclosure (RECAD)

The link below is a booklet with the different brokerage  relationships available

Alabama Real Estate Commission Consumer Booklet

 

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© February 2017

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