HOME BUYING/SELLING Hill AFB Housing Office - PowerPoint PPT Presentation

HOME BUYING/SELLING Hill AFB Housing Office

777-1840

• The Housing Management Office, Hill AFB, the United States Air Force, nor the Department of Defense endorses any commercial agencies
• The information provided by the Housing Management Office is general in nature

• Advantages of a Realtor
• Knowledgeable about the area
• Access to the Multiple Listing Service
• A good realtor is at your service… 24/7
• Can contact ahead of schedule before arriving in town
• Have a listing of homes ready to view when you arrive
• No Cost to the Buyer as far as Commissioning Fees
• Can Qualify you prior to looking at homes to see what you can afford
• Does the majority of paperwork with the Mortgage Company, you just show up at closing.

• Not Utilizing a Realtor
• If a home is For Sale by Owner one can often negotiate the price lower due to no commissioning costs.
• Average commissioning fee is 6% of the sales price of the house
• Example: 6% of $175,000 = $10,500.00
• 3% to buying agency
• 3% to selling agency

• Ask around for a good Realtor - Everyone has a story about the purchase of their home!
• Speak to the neighbors in the area you are interested in

• LOCATION, LOCATION, LOCATION
• School Districts
• Hospitals
• Shopping Areas
• Close to Work
• Buy a house that you think will “re-sale” itself
• 3 or 4 bedrooms/2 or more baths, 2 car garage are good “resales”

• Pre-qualify for free by a Realtor or Mortgage Company. Know what you can afford before looking
• Try to stay below your high end of qualifying
• Example: Qualify for $200,000, stay within range of $150,000-$180,000. You’ll have many things to buy for the house and yard and have the money to do so without squeezing yourself.
• Nothing like having a new home and no money for anything else = STRESS!

RULE OF THUMB

Generally, your total mortgage

payment should not exceed 29% of your monthly gross income

Home Inspection

• Conducted by a Private Home Inspector.. different from a VA or FHA inspection
• Protect yourself, it will be your cost but worth the money- Average $300-$400
• If items need to be fixed sometimes it can be negotiated with the Seller/Buyer

Home Owners Warranty

• Different from Home Owners Insurance
• Average $400 per year – covers many home repairs.
• Example: Pay $45 for the repair man to come out and fix items on the warranty and that is it!
• Maybe worth the money to invest in each year
• Example: Replace toilet, $50 service call, $200 labor, $75 parts. That is just one repair in a year and you’ll probably have more!

One will almost never find a home that

has 100% of what you’re looking for.

Be flexible, try and sacrifice one or two things and then you’ll find that home that is best suited for you and your family!

• Comparative Market Analysis
• Comparing other homes that have sold in the area and the average cost
• Realtor will do this for you
• Will help you decide on a price to offer
• Remember, you can negotiate!

Financing

• FHA
• VA
• Conventional
• Other ways to finance
• Contact your Realtor/Mortgage Company

for more details

• Advantages of a Realtor
• Can advertise it more widely/Multiple Listing Service
• Can connect with other Realtors who have buyers
• Can show the home when you are not present (have a lockbox on the home)

• Not Utilizing a Realtor
• Save commission, can pocket it
• Have to advertise yourself
• Rearrange your schedule if someone wants to see your home
• Have to have someone show it for you if you PCS.

• Post your home with:
• Housing Management Office
• Local Newspaper
• On the Internet
• Find a mortgage company/real estate attorney to do your closing once you find a buyer

ALWAYS GET A RELEASE OF LIABILITY

If the buyer defaults you will not be responsible for the loan but you can ask that you be called if you want to make up the payments and take back the home

• Good investment
• Good tax break
• Home ownership/good feeling
• Possibly make a profit when you move versus renting and not getting any money back
• If interests start to drop think about refinancing; can save about an estimated $130 per month on a 1.25% interest rate reduction
• Sometimes closing costs are added to the mortgage loan
• If interest rates drop, think about Streamlining your Loan. Most times closing costs are minimal if any on FHA/VA loans

• Plant a few flowers/bushes outside
• Do a little touch up painting
• Shampoo the carpet
• Keep the home in good shape inside and out
• Give a key to the neighbor to show the house in case you cannot be there

You can do it yourself to save the commission but be prepared for the work and effort!

Further information can be obtained in the Housing Management Office