Home Buying Hints
Purchase and Sale Contract
- Terms are negotiable.
- Retain attorney if terms are not clear.
- As buyer, include escape clauses for inspection, failure to obtain financing, and other contingencies.
- Failure to disclose known defects will result in liability against seller.
- Limit earnest money to minimal amount ($1,000.00 - $2,000.00).
- Credit Union does not provide contract or read contracts.
- Tenants should vacate prior to closing.
- Extended occupancy should be governed by lease.
Building Inspectors
- Inspector does not offer guarantee.
- Most people should obtain an inspection.
- Inspector makes only visual inspection and attempts to disclose hidden defects.
- Inspectors are not licensed.
- Contract will govern who will make repairs found by inspectors.
Mortgage Process
- First determine what you can afford, then shop.
- Variable rate offers reduced rate but may adjust upward. Member must decide what is best.
- Ask for help or clarification with anything you don’t understand.
Who Pays Fee and Homestead Exemption?
- Seller normally pays added stamps and title insurance.
- Buyer pays various fees associated with loan.
- Apply for homestead by March 1.
- If existing use is non-homestead, first year of ownership will continue as non-homestead.
- Fees are negotiable.
Homeowner’s Insurance
- Coverage less than 80% of replacement exposes member to liability. 100% replacement cost is normal.
- Special endorsements may be needed for coverage on personal items.
- Flood insurance may be wise even for homes in non-flood areas.
- Liability limits may need to be increased or umbrella coverage purchased.
- Coverage is broad for HO-5.
- Check Best rating of company.
Role of Real Estate Agent/Broker
- Agent for buyer can be used to represent buyer.
- Agent for seller legal interest is to protect seller only.
- Buyer should not divulge to agent for seller his/her top price.
Environmental Concerns
- Lead based paints can be harmful to children.
- Asbestos siding can be harmful if not properly handled.
- Radon is naturally occurring gas whose effects can be mitigated.
Note: If you have further interest in any of the aforementioned areas, please contact your agent. He/she may be able to provide you with additional information.
