AmeriTeam Realty Inc.
Residential Luxury Real Estate

(Danny) Dhannu,GRI
Broker - Associate
Call 407-557-7113

Information For Buyers...

As a buyer what are you really looking for?

Today's buyers are becoming more technology savvy and are more involved in the search for their dream home. No matter how high tech they are, they all have some basics in common, to find a home that offers shelter, privacy, location, amenities and as a future investment.

For every home buyer whether it's their first home or second home, it's a huge financial decision that involves allot of research, time and a great agent to find the home "you were meant to have" that my mission.

Feel free to ask me any questions you are not sure of, I would be glad to answer them, I want to make your home buying experience a pleasant one.

This Information Is Deemed Reliable But Not Guaranteed

About Us
TESTIMONIAL!!!

Frequently Asked Questions

Getting Started
Are My Finances In Order
My Budget WorkSheet
My Property Wish List

The Market
How To Find The Perfect Neighborhood
How To Buy In A Tight Market
What I Need To Know About Condos

Your Realtor
Benefits Of Using A Real Estate Agent
Questions To Ask When Choosing A Real Estate Agent

Home Ownership
10 Things I Need To Know Before Purchasing A Home
Preparing For Home Ownership
How Much Can I Afford
Reasons To Own My Own Home

First Time Home Buyers
Common Mistakes For First Time Buyers
Tips For First Time Home Buyers
Tips To Take The Trauma Out Of Home Buying
Tax Questions To Ask
How High Tech Is My Home

Home Inspection & Warranty
Questions To Ask Your Home Inspector
Home Defects To Watch For
What Should A Home Inspector Cover
How Comprehensive Is My Home Warranty?

Home Owners Association, Condo Board & Taxes
What I Need To Know From The Condo Board
Understanding Home Owners Insurance
Lowering My Homeowner Insurance Costs

Purchase & Possession
What I Need To Understand About Title Insurance
What To Look For On A Final Walk Through
Closing Costs For Buyers
What Do I Keep From The Closing
Tips On Packing Like A Pro

Back To Home Page




Testimonials

Name: Antoinette St. M
Purchase: Condo
Location: Lake Worth Florida


"Danny answered all our questions. Was Very Attentive and Worked With The Previous Owners To Solve They Few Problems We Had."

Antoinette ST M , FL


Name: Heman F N
Purchase: Land
Location: Ocala

"Danny Is An Excellent Associate. We Purchased Land From Him And We Will Recommend Him To Any Other Buyer. He Kept Us Updated On All Proceedings And Was Always There When I Have Called Him. Keep Up The Good Work."

Heman F N , NY


Name: Ray R
Purchase: Land
Location: Port St. lucie

"Highly Recommended , Trustworthy, Honest, Courteous, Sense Of Caring And A Hard Worker. Danny Placed Himself In My Shoe And Saw Things That Would Be Beneficial To Me"

Ray R, NY


Name: Elite Investors
Purchase: Land
Location: Ocala. Port St. Lucie


"What Makes Danny Different Is His Perseverance And To Always Do The Best For Us And All His Clients. He Made Sure We Understood Everything, There Was No Pressure, He Even Advise Up On What We Should Offer The Seller, And In The End We Felt Like We Purchase The Perfect Piece Of Property At The Lowest Price. I Would Recommend Him To Everyone, He Is Honest From The Start, That's Hard To Find Anywhere, He Not In It Just For The Money, It's His Destiny"

Elite Investors, FL




Frequently Asked Questions


Q. As a buyer do you have to pay for our services?


A. Our services are provided free to the buyer and we are paid by the seller, once the sale transaction is completed. The fees are set when the listing agent takes the listing with the seller. As a buyer we have a fiduciary responsibility to provide you with the following duties which are dealing honestly and fairly, loyalty, with confidentiality just to name a few.

Q. If I contact the Selling Agent directly can I save any money or get a lower price?

A. No. The Selling Agent has the listing contract with the seller who will charge the same fee no matter who sells the property. Since the selling agent has the listing contract with the seller they will represent both the seller and you the buyer, which means he cannot provide you with full disclosure. Their objective would be to get the highest selling price for his Seller and negotiate the lowest Selling Price for the Buyer at the same time, which will cost you more money in the end.

Q. Will you point out the negative, as well as the positive aspects of each home?

A. Yes. I will work for you and not the seller, and would not try to "sell" you on any particular homes. In fact, I would point out the negatives so you can make an informed decision, and there are no surprises after you move in. I have no vested interest in selling one particular home that have been contracted by a seller to market. Our only interest is finding you a property that meets the exact requirements so the making the transaction flow as smoothly and as profitably as possible for you.

Q. Will my personal information be kept confidential including all my financial information and motives for buyers plus any strategies I have for negotiating.

A. Legally we are bound and ethically we keep all of your personal information confidential, I also try to gather as much information about the seller’s which will be to your advantage in negotiating for a more reasonable price.

Q. Why don't all Real Estate Brokers act in a "Buyer's Broker" capacity, why do some act in a “Transaction Brokerage"

A. The reason most real estate brokers act in a "Transaction Broker" capacity is that they want to be able to show and sell their own listings, which is not a bad thing, sometimes it happens that you the buyer is looking for exactly what the selling agent has to offer. If they were to act in Buyer's Agency" capacity they would not be able to show you any of their own listings for which they have a contract with the sellers to market.

Q. Which type of Brokerage does each Realtor operates and how will I know?

A. A realtor must by law disclose to you as the Buyer what type of brokerage and representation he will provide you. A single agent is where he fully represents you the Buyer with full disclosure and a Transaction Brokerage he represents both the Buyer and the Seller with limited disclosure.

Q. What will a exclusive buyer agent do for me?

A. As a exclusive buyer agent, your interests would be represented as a home buyer, which means the seller would not be represented, you would be provided with information on obtaining financing. Letting you know what the sellers motivations known if any. Disclosing all known information about the property, whether it is good or bad. Working with you to ensure your financial affordability perfectly matches the home you choose. Providing you with Comparable Market Analysis to give you and idea of what the surrounding properties are currently priced. Develop a negotiating strategy, explaining the whole contract to ensure you what your rights are. And managing the whole transaction to ensure everything goes smoothly as possible.




Are My Finances In Order


Budget: Create a budget for at least six months, which will show unexpected cost such as car repairs, illnesses, keep track of your receipts which will indicate how much you are spending

Debt: Your lenders will generally look for a total debt ratio of 36 percent of your income. Since it will include your mortgage it will typically range from 25 and 28 percent of your income.

Track Expenses: Little expenses add up in addition to your rent and utilities, keep track of all the little expense and you will identify on where your finances are going.

Need More Income: If your income it too low you may need to take on a second part-time job to ensure you can qualify for the mortgage.

Down Payment: Some lenders will allow you to put 5 percent down or less for a down payment, but it's beneficial if you put more down which can help you get a better rate, try working towards a 20% down payment.

Open A House Fund Account NOW!!: Instead of paying all your bills and contributing what's left towards a down payment, determine now on a certain amount start contributing towards it as bill on a consistent basis.

Stay Employed: Most lenders need to see burrowers with a employment history of more than two years at the same place of employment in order for them to qualify, otherwise they will pay a higher interest rate.

Credit History: Keep your credit history in good standing, ensure all credit card are paid by the due date, a good payment history will show stability and you ability to pay on time.




My Budget Work Sheet


Determine your income and your expenses, which will show what financial shape you are in.

Income

Take Home Pay/All family members
Child Support/Alimony
Pension/Social Security
Disability/Other Insurance
Interest/Dividends
Other

Total Income

Expenses

Rent/Mortgage
Life Insurance
Health/Disability Insurance
Vehicle Insurance
Homeowners or Other Insurance
Car Payments
Other Loan Payments
Savings/Pension Contribution
Utilities
Credit Card Payments
Car Upkeep
Clothing
Personal Care Products
Groceries
Food prepared outside the home
Medical/Dental/Prescriptions
Household Goods
Recreation/Entertainment
Child Care
Education
Charitable Donations
Miscellaneous

Total Expenses


Total Income - Total Expenses = Remaining Income After Expenses



My Property Wish List


Once you decide on the style and price, start with a checklist which will keep you in tune of exactly what you are looking for.

How close do you need to be to?

(a) Access to public transportation
(b) Access schools
(c) Access to the airport
(d) Access to the Highway
(e) Access to Shopping


• Which city would I prefer to locate to?

• Are there schools nearby?
• Is the style of home suitable?
• How many floors do I want?
• Do I want a new home or a resale?
• How much repairs will the house need?
• Are there restrictions on my home?
• Are pets allowed?

Must have / Prefer

• Yard (at least_________)
• Garage (size________)
• Patio/Deck Pool
• Bedrooms (number_________)
• Bathrooms (number_________
• Family room
• Formal living room
• Formal dining room
• Eat-in kitchen
• Laundry room
• Attic
• Fireplace
• Spa in bath
• Air conditioning
• Wall-to-wall carpet
• Hardwood floors
• View
• Light (windows)
• Shade





How To Find The Perfect Neighborhood


The place you choose to live can have a great impact on your lifestyle, available amenities and convenience all play their part.

List Of The Activities: Movies, health club, church you engage in regularly and stores you visit frequently. Determine how far you would have to travel from each neighborhood.

Analyze The School District. The Department of Education can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. Consider visiting the schools, if you have children if you don't a home in a good school district will be easier to sell. Orange County School Board. http://www.ocps.k12.fl.us

Safety: Check to see if the neighborhood is safe. Ask the local police department for neighborhood crime statistics.

Stability: Determine if the neighborhood is economically stable, see if income and property values in the neighborhood are stable or rising?

Rentals or Homes: What percentage of homes to apartments exist? Apartments don’t necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

Appreciation: Call the REALTOR? Association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be.

You Have Decided: Once you’ve decided on two or three neighborhoods, go there and look around. Are homes tidy and well maintained? Are the streets quiet? Pick a warm day and chat with people working or playing outside. Are they friendly? Are their children to play with your family?





How To Buy In A Tight Market


Get Pre Qualified For A Mortgage: His way, you’ll be able to make a firm commitment to buy and make your offer more desirable to the seller.

Stay In Close Touch With Your Real Estate Sales Associate: To find out first about new listings that come on the market. Be ready to go see a house as soon as it goes on the market.

Scout Out New Listings Yourself: Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you’ll see a brand-new “for sale” sign before anyone else.

Be Ready To Make A Decision: Spend lots of time in advance deciding what you must have so you won’t be unsure when you have the chance to make an offer.

Bid Competitively: You may not want to start out offering the absolutely highest price you can afford, but don’t try to go to low and get a deal. In a tight market, you’ll lose out.

Keep Contingencies To As Minimum: Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell you house rapidly.

Don’t Get Caught In A Buying Frenzy: Just because there’s competition doesn’t mean you should just buy anything. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.





What I Need To Know About Condos


Storage: Some condos have storage lockers, but usually there are no attics to hold extra belongs.

Outdoor Space: Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you hate yard work, this may be perfect option for you.

Amenities: Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

Maintenance: Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home.

Security: Many condos have keyed entries and or even doormen. Plus, you’ll be closer to other people in case of an emergency.

Reserve Funds And Association Fees: Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.

Resale: The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar. Single-family homes are usually more individual, so ever if there are others for sale in your area, they probably won’t be exactly like yours.

Freedom: Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

Proximity: You’re much closer to your neighbors in a condo or town home. Look at profile of other owners be sure you’ll be comfortable. If possible, try to meet your closest prospective neighbors.





Benefits of Using A Real Estate Agent

A Real Estate Transaction Is Complicated: In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

Selling Or Buying A Home Is Time Consuming: Even in a strong market, homes in our area stay on the market for an average of 90 days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.

Real Estate Has Its Own Language: If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.

Real Estate Agents Have Done It Before: Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.

Real Estate Agents Provides Objectivity: Since a home often symbolizes family, rest, and security, not just four walls and roof, home selling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.





Questions to Ask When Choosing a Real Estate Agent

Time In The Business:. How long have you been in residential real estate sales? Is it your full-time job? (While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.)

Are you a REALTOR? Members of the National Association of REALTORS?subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

Homes Sold: How many homes did you and your company sell last year?

Average Days to Sell: How many days did it take you to sell the average home? How did that compare to the overall market?

Negotiation: How close to the initial asking prices of the homes you sold were the final sale prices?

Marketing: What types of specific marketing systems and approaches will you use to sell my home? (Look for someone who has aggressive, innovative approaches, not just someone who’s going to put a sign in the yard and hope for the best.)

Representation: Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? (While it’s usually legal to represent both parties in a transaction, it’s important to understand where the agent’s obligations lie. A good agent will explain the agency relationship to you and describe the rights of each party. It’s also possible to insist that the agent represent you exclusively.)

Service Providers: Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done?

Philosophy: What’s your business philosophy? What’s important to the agent—fast sales, service, etc.— and determine how closely the agent’s goals and business emphasis mesh with your own.)

Follow Up: How will you keep me informed about the progress of my transaction? How frequently?





10 Things I Need To Know Before Buying A Home

Mortgage: Should you decide to obtain a Mortgage when Purchasing a Home, you need to speak with a Lender first and get yourself “Pre-qualified”. This will create Leverage for Negotiating on the Sales Price and provide Ease of Comfort knowing you have already been Approved for a Mortgage by a Lender.

Lender: When looking for a Lender Ascertain all the Costs Involved such as Bank Costs, Services Fees, Prepaid Items, Bank Origination Fees, Interest Rates, Cost of Credit Reports, and Survey Appraisals etc. You can ask for a Copy of a “Good Faith Estimate” which lists all Your Costs involved in Purchasing a Home. As your Sales Associate, I would be very happy to suggest Lenders that can assist you in getting the best rates and service.

Realtor: Should you Choose to work with a Realtor, you need to know who they Represent. Realtors should represent your Best Interests, and that is to Obtain You the Best Possible Price and Terms as well as Disclosing Everything about the Seller’s property, which may of Benefit to You.

List Of Homes: Your Realtor can provide you with a List of Homes Currently on the Market, and that Meets Your Requirements from the Multiple Listing Service. The list provide listings from their office but those of other offices as well.

Comparative Market Analysis: A “CMA” Comparative Market Analysis Provides You with Homes that Match Your Criteria, Currently Available on the market plus ones that have Recently Sold. This will Allow You To Determine their Fair Market Value, and can let you You Know which Sellers are “Motivated To Sell” and which ones are “Overpriced.”

Seller’s Disclosure: A Seller can Provide You with a Seller’s Disclosure Prior to Negotiating, which Shows any or Past Problems with the Property.

Negotiating: When Negotiating on a Property, Your Realtor can Find Out if the Seller Will Pay some of your Closing Costs, which is More Beneficial To You than Negotiating on the Sales Price.

Offer Agreement: The Contract Must Allow for a Full Property Inspection by a Licensed Florida Inspector of Your Choice, and Should Repairs Be Needed the Seller, they Will Make Those Repairs Based on the Inspection Report.

HOA – Home Owner’s Association: Most Homes in Palm Beach County is Connected with a “Home Owners Association”, Find out whether the Property you are seeking is Connected to the HOA and What the Restrictions Are, Fees if Any, What They Include, and Special Assessments for the Future.

Closing: At Closing You Should Receive a Title Insurance Policy From the Seller which will Protect Your Rights to the Property UPTO the Face Value of the Policy Against the following Possibilities from the Previous Owners: Marital Status, Fraud, Duress, Judgments, Prior Mortgages, Insanity, False Representations, etc. Title Insurance assures You the Home buyer the Best Possible Legal Defense if Your Title is Attacked and Reimburses You UPTO the Face Amount of the Policy if the Title or Any Part of it Should Fail.

Affordability: Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.

Wish List: Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

Selection:: Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

Down Payment: Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 and 7 percent of the home price.

Credit Score: Get your credit in order. Obtain a copy of your credit report.

Qualify For Mortgage: Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.

Documentation: Organize all the documentation a lender will need to pre approve you for a loan.

Research: Do research to determine if you qualify for any special mortgage or down payment assistance programs.

Assess Costs: Calculate the costs of home ownership, including property taxes, insurance, maintenance, and association fees, if applicable.

Realtor: Find an experienced REALTOR? who can help you through the process.





How Much Can I Afford?


This calculation assumes a 28-percent income tax bracket. If your bracket is higher, your savings will be too.

Rent: _________________________
Multiplier: X 1.32
Mortgage payment:__________________

Because of tax deductions, you can make a mortgage payment—including taxes and insurance— that is approximately one-third larger than your current rent payment and end up with the same amount of income.





Reasons to Own Your Own Home


Tax Breaks: The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you, pay, as well as some of the costs involved in buying your home.

Equity: Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

Savings: Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

Predictability: Mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer but keep in mind that property taxes and insurance costs will rise.

Freedom: The home is yours to decorate any way you want and benefit from your investment for as long as you own the home.

Stability: Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.





Common First-Time Home buyer Mistakes


1. Don’t ask enough questions of their lender and miss out on the best deal.

2. Don’t act quickly enough to make a decision and someone else buys the house.

3. Don’t find the right agent whose willing to help them through the home buying process.

4. Don’t do enough to make their offer look good to a seller.

5. Don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.





Tips for First-Time Home Buyers

1. There is no perfect home, Be picky, but don’t be unrealistic

2. Do your research and decide what features are most important to you.

3. Check your credit report and ensure you have enough money for your down payment and your closing costs.

4. Get pre qualified from a lender for a mortgage before you start looking.

5. Use your own judgment and ask one or two people for advice and not opinions, will drive you crazy.

6. Know ahead of time when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Decide if you stay in the home long term or short term this will help you decide to move into a starter home or something more permanent, and will help you choose the type of mortgage that is right for you.

8. Keep some money when you move in, If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Protect yourself and insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

10. Need help looking, hire a Realtor, whose will be working for you best interest, unlike the listing agent whose responsibility is to the seller.





Things to Take the Trauma Out of Home Buying

1. Find a real estate agent that’s both skilled and a good fit with you personality. Home buying is not only a big financial commitment, but also an emotional one.

2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. A good home will not stay on the market long.

3. Don’t ask people for too many opinions, it nice to have their approval for such a big decision, but too many ideas will make it much harder to make that decision.

4. There are no perfect house, try and focus on what features are most important to you and let the minor ones go.

5. Don’t try to be a killer negotiator, by trying to “win” by getting an extra-low price may lose you the home you love.

6. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Consider maintenance and repair costs in your post-home buying budget, a new home will still have some costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying your first home, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation, a home’s most important role is as a comfortable, safe place to live.





How High Tech is Your Home?

For the tech savvy buyers who want the latest technology or entertainment options then you need to check the home for these options

1. Are there cable TV and high-speed Internet hookups jacks in every room?

2. Are there telephone extensions or jacks in every room?

3. Is the home pre wired for home theater or multi-room audio and video?

4. Does the home have a local area network for linking computers?

5. Is the home already wired for DSL or other high-speed Internet connection?

6. Does the home have multi zoning heating and cooling controls with programmable thermostats?

7. Is the homes equipped for multi room lighting controls and window-covering controls?

8. Is the home wired with multipurpose in-wall wiring that allows to update services as technology changes?





Home Defects to Watch For


Water Leaks: Look for stains on ceilings and near the baseboards, especially in the attics.

Shifting Foundations: Check for large cracks along the home’s foundation.

Drainage: Look for standing water, either around the foundation of the home of in the yard.

Termites: Check for weakened or grooved wood, especially near ground level.

Roofs: Look for broken or missing couplings and buckled shingles as well as water spots on ceilings.

Inadequate wiring: Check for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.

Plumbing: Look for very low water pressure, banging in pipes





Questions to Ask A Home Inspector

1. Are you a member of the American Association of Home Inspectors and what are your qualifications?

2. Are currently licensed? Inspectors are not required to be licensed in every state.

3. On average, how many inspections of properties such as this do you do each year?

4. Can I contact past clients whom you did inspections fort?

5. Do you have professional errors and omission insurance? May I have a copy of the policy?

6. Is your work guaranteed, and for how long?

7. What will the inspection cover?

8. Will I get a copy of the report after the inspection?

9. How long will the it inspection take?

10. How much will the home inspection cost?





What Should Your Home Inspection Cover

Siding: Look for dents or buckling
Foundations: Look for cracks or water seepage
Exterior Brick: Look for cracked bricks or mortar pulling away from bricks
Insulation: Look for, adequate rating for climate (the higher the R value, the more effective the insulation is)
Doors and Windows: Look for loose or tight fits, condition of locks, condition of weather stripping
Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts
Ceilings, Walls, and Moldings. Look for loose pieces, dry wall that is pulling away.
Porch/Deck: Loose railings or step, rot
Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room.
Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks
Water Heater: Look for age, size adequate for house, speed of recovery, energy rating.
Furnace/Air Conditioning: Look for age, energy rating. Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs.
Garage: Look for exterior in good repair; condition of floor—cracks, stains, etc.; condition of door mechanism.
Attic: Look for adequate ventilation, water leaks from roof.
Septic Tanks (if applicable): Adequate absorption field capacity for the percolation rate in your area and the size of your family.
Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling near edges, stains





How Comprehensive is My Home Warranty?

Review your home warranty policy to see which of the following items are covered, and if the policy covers the full replacement cost of an item.

Plumbing
Electrical Systems
Water Heater
Furnace
Heating Ducts
Water Pump
Dishwasher
• Stove/Cook top/Ovens
Microwave
Refrigerator
Washer/Dryer
Swimming Pool (may be optional)






Property Tax Questions To Ask

The assessed value of the property is generally less than market value. Request a recent copy of the seller’s tax bill to help you determine this information.

How frequently are properties reassessed and when was the last assessment done? Taxes jump most significantly when a property is reassessed.

Will the sale of the homey trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property.

How comparable are the taxes to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?

Check the current tax bill to see if it reflects any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.





What I Need To Know From The Condo Board

1. What percentage of units is owner-occupied versus tenant-occupied? The higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property and what grandfather clauses are in place? Ask for a copy of the bylaws to determine if you can live within them.

3. How much does the association keep in reserve and how much of that money is being invested?

4. Are association assessments keeping pace with the annual rate of inflation? To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover—common area maintenance, recreational facilities, trash collection, snow removal?

6. In the past five years what special assessments have been mandated? How much was each owner responsible for, is some special assessments are unavoidable.

7. How much turnover occurs in the building?

8. Is the project in litigation or the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.

9. How reputable is the developer? Find other projects the developer has built and visit one if you can. Ask residents about their perceptions. If the roof, windows, and bricks aren’t in good repair, they become your
problem once you buy.

10. How many associations are involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.






Understanding Homeowners Insurance


1. Look for exclusions to coverage,most insurance policies do not cover flood or earthquake damage as a standard item. These coverage's must be bought separately.

2. Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. many policies limit the amount paid for stolen jewelry unless items are insured separately.

3. Understand replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

4. Understand actual cash value. If you chose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.

5. Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.





Lowering Your Home Owners Insurance

1. Raise your deductible, If you can afford to pay more toward a loss that occurs, your premiums will be lower.

2. Buy your homeowners from the same company you have your auto insurance and you’ll usually qualify for a discount.

3. Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

4. Keep your home safe by installing smoke detectors, burglar alarms, and dead-bolt locks which will usually qualify for a discount.

5. Insure your house for the correct amount, remember, you’re covering replacement cost, not market value.

6. Ask about other discounts, individuals who are home more than working people may qualify for a discount on theft insurance.

7. Keep the same insurer, your current vendor is more likely to give you a good price.

8. Network with groups—associations, alumni groups—that offer lower insurance rates.

9. Assess your policy limits and the value of your home and possessions annually, items may depreciate and may not need as much coverage.

10. Is there’s a government-backed insurance plan, whether in high-risk areas, such as coasts, federal or state government may back plans to lower rates.





What I Need To Understand About Title Insurance

1. Title Insurance protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such a mistake in the spelling of a person’s name or an inaccurate description of the property.

2. This is a one-time cost usually based on the price of the property.

3. Title Insurance is usually paid for by the sellers.

4. There are two types of policies a lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Depending on the age of the property, discounts on premiums are sometimes available , newer properties may not required as much work to check the title.





What To Look For On A Final Walk-through

This occurs a day or two prior to the close to ensures all requests by the buyer are completed.

• The repairs requested by the buyer have been made, request copies of paid bills and any related warranties
• Check that all items that were included in the sale price—draperies, lighting fixtures—are still there.
• Ensure the screens and storm windows are in place or stored.
• Check that all appliances are operating.
• The intercom, doorbell, and alarm are operational
• Check the hot water heater is working
• The HVAC is working
• Check that no plants or shrubs have been removed from the yard
• The garage door opener and other remotes are handed over to new buyers at closing
• All instruction books and warranties on appliances and fixtures are there
• All personal items of the sellers and all debris have been removed.





Closing Costs for Buyers

All lenders must disclose a good faith estimate of all settlement costs. Check with the title company conducting the closing for the amount of the check and the type of check which should be a cashier's check.

• Private mortgage insurance premium
• Loan origination fees
• Down payment
• Points, or loan discount fees you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees—building inspection, termites, etc.
• Notary fees
• Pro rations for your share of costs such as utility bills and property taxes





What Do I Keep From Your Closing

• The HUD 1 statement, itemizes all the costs associated with the closing. You’ll need for income tax purposes and when you sell the home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party.
• Riders are amendments to the sales contract that affect your rights.
• Insurance policies provide a record and proof of your coverage.





Tips for Packing Like a Pro

• Create a master “to do” list so you won’t forget something critical.
• Get rid of things you no longer want or need. Hold a garage sale or donate to a charity, or recycle.
• Don’t throw out everything. ask yourself how frequently you use an item.
• Pack like items together, put toys with toys, kitchen utensils with kitchen utensils.
• Do you plan to move yourself. Items such as family photos, valuable breakables, should probably stay with you.
• Use the right box for the item, loose items could break if not packed properly.
• Use small boxes to put heavy items so they’re easier to lift. Keep weight under 50 lbs.
• Wrap all fragile items separately and pad bottom and sides of boxes.
• Label all box on all sides, this will make it easier to find something no matter how they are stacked
• Color-coded the labels to indicate which room each item should go in, color-code a floor plan for your new house to help movers.
• Put all your moving documents together, including address book, phone numbers, driver’s name and van number.
• Keep a back up your computer files before moving your computer.
• Inspect each box and all the furniture for damage as soon as it arrives to your new home.
• Remember, most movers won’t take plants.

Information Deemed Reliable But Not Guaranteed
©2003 CopyRight FloridaLovesYou.com Home BuyersSellersListingsSearch MLS