Buying & what you need to know

Please call 320-266-4776 for any additional information on the topics below!!! I am happy to help– Patrick 

What You Need To Know

New Homes
• Usually more maintenance free
• In Newer neighborhoods.
• Generally have smaller lots and immature trees
• Often have more modern floor plans.
 
Older Homes
• Larger Lots
• Unique rooms and room sizes
• May have more maintenance depending on how the home has been kept up over the years.
 
Honesty, Integrity, Honesty- Remember your hiring them for their expertise and should want them to tell you what they think.
Accessibility- Can you reach them when you need them?
Real Estate is more complex than most people realize- Is your Realtor able to explain you options to you and are they willing to take the time to help you understand all the details?
• Talk to a Lender- Primary Lending (local bank) and Secondary Lending (Secondary party who is a loan broker and will shop all available options from multiple lenders).
• Loans have a huge impact on your ability to purchase the home you desire. What interest rate will you be paying?  
• How many years will you be financing? 15 years? 20 years? 30 years?  
• What is the amount of money I will pay back depending on all of these variables?  
• What are the fees from my lender?
 
We often explore and evaluate everything we buy, a loan or a bank should be no different.
I have never found a perfect starter home,  but there are some important details to look for :
• Location, Location, Location- Make sure the home you are looking at is in an area that gives you the best opportunity to resell later.  
• Considerations- School, Presentation of area- What do you see when you drive by? Is it close to the conveniences people use, parks, stores etc.?
• Does it have an association with it that takes care of lawn and snow removal? If it has an association, what exactly do they take care of?
• What is the size? Is it practical?
• Is it move in ready? 
• Count the Cost- Not all fixer uppers are equal
• If fixing is what you want to do and you have 20% down this can be an excellent way to improve equity in your home quickly.
• Capital gains taxes- If you live in your home for less than 2 years and resell at a higher price you may have to pay additional taxes(check with your tax attorney/accountant).
• Talk with your Lender and determine if a fixer upper will work with the type of loan you are eligible for. 
• Some loans require a move in ready home as a qualification.
Now you are ready, the offer is currently being discussed by you and your realtor. Do your homework about the area,  Appraisal, Inspection, Crime rates etc.
 
What amount of Earnest money will you be putting down? This money is put in the trust account of the selling real estate company and held until closing and then applied to your purchase balance. The money is meant to assure that the buyer will not just back out of the deal. If the buyer backs out of the deal they could lose this money permanently depending on the Purchase Agreement.
 
Contingencies- There are multiple contingencies that impact the PA and facilitate a transaction that everyone understands. Some examples: Inspection contingency, Well and Septic Contingency, Finance Contingency and many more. Each contingency should be reviewed thoroughly by the buyer and the realtor to assure it is what the buyer wants. 
 
Final Walk through- On the day of closing you will walk through the home and look for anything that has changed since the showing and inspection time frame, the home should be in the same condition as shown originally.
 
Closing day-  Bring your checkbook and ID and sign, sign, sign. This really is a very fun day and if you have done your homework, No worries at all, Move in day!!!

Ready to buy a home?

Contact me today to buy your next home

Patrick Collins

Real Estate Broker​