In the Boston area there are significant numbers of both new and traditional housing. There is also a hybrid of the two – old houses that have been gut-rehabbed. Understanding the key differences is helpful to buyers, sellers, and owners alike. Buyers can use the understanding to evaluate the trade-offs between the different types of housing. Sellers gain insight into the competition. And owners can use the information to make informed decisions about when, if, and how to invest in upgrades and renovations to their home with an eye towards the ultimate resale value.
Buying a home is an exciting experience, but it can feel a bit overwhelming if you don’t have the right information. Check out these helpful resources about the home buying process. When you’re ready, give Chris Kostopoulos Group a call at 617-751-4111 or email at Chris@Isellmass.com at to tour available homes in the Suffolk County and Boston areas.
When you apply for a mortgage, the bank has a professional appraiser perform an appraisal of the property. The question today is: what if the appraisal comes in lower than the price you have agreed to pay? And the answer, like the answer to many questions, is: “It depends”. Mostly, it depends on what it says in the mortgage contingency that was part of your offer.
For the purposes of this discussion we will use – as an example – that:
– you have agreed to pay $600k for the property.
– the bank will lend you up to 80% of the appraised value – which is standard.
If you apply for a mortgage for your home purchase, the bank or lender will require an appraisal of the property. Here is a list of some basic questions and answers about appraisals. For the sake of simplicity, we will assume the most typical scenario: the appraisal is for a mortgage for 80% of the purchase price, and you will be covering 20% of the purchase price from your own money. If you need to borrow more than 80%, or have enough of your own money to borrow less, the basic concepts are the same but. there are some significant differences. We will cover the less typical situations in future posts.
1. Do I need to have a home inspection? No, it’s up to you whether to have an inspection. But a good agent will never tell you don’t need an inspection. You can actually sue an agent if you take their advice to forego an inspection and then have an expensive problem that an inspector would … Continued
There is nothing like a brand-new home. A home never lived in by another human being. Shiny. Up to date. Fully equipped and gadgetized. Charm and history are fine for other people, but they are not for you! You would sooner buy a used car than a used home. So, let’s look at all the benefits of new construction, as well as the pitfalls and how you can try to deal with them.
When you look at mortgage rates – whether on line, a sign in the bank window, or in a newspaper – you’ll see a simple interest rate as well as something called APR. Yet it seems that neither is the rate that you get at the end of the day. Why is that? Does it go up depending on how gullible you look to the lender? No, there are good reasons for the final rate you get quoted. First, let’s first look at the two types of rates just mentioned, then we can look at how the rate that you get in the end will be determined.
What do you know about internet fraud? If a Nigerian prince wants to “get to know you” on-line would you correspond with him? If a foreigner sends you an email saying he would like to make an offer, sight unseen, on your property which is not even on the market, would you pursue it? If you get an email from a financial institution with their logo asking you to send them your account number and social security number for confirmation purposes, would you email those things to them? By now we’ve all seen – and heard about – enough of these types of scams to laugh at them…or at least to just delete the emails.
Why is there so much paperwork involved in buying a property? Sometimes, it seems that buyers look at more documents than homes. There are things you need to sign before you even see a single property. And that’s just the beginning of a steady stream of documents that need your signature before the closing is over. It’s no coincidence that people fondly refer to the closing as “passing papers”. But we’re getting ahead of ourselves. At the very beginning of the process you have to decide how to work with the Great Buyer Agent you’ve found and whether to formalize that decision in writing…in a Buyer Agency Agreement.