Home Ownership

Establishing Value

1. Appraisal 2. Replacement Costs 3. Assessed Valuation 4. Loan Value 5. Pricing levels in the local media 6. Rental multiplier

Factors Affecting Home Value

1. Location, location, location 2. Size (bigger homes worth more usually) 3. General condition and outside appearance 4. Interior condition, appearance and layout 5. Landscaping, extras

Condominiums

apartment you own; services you pay for like a renter would

Disadvantages of Mobile Homes

difficulty in situating in your desired locations, depreciate in value more rapidly; structural integrity/may not be as study

Disadvantages of Condominiums

lack of control and restrictive covenants (pets, smoking, children); rent/transfer of wonership restrictions; re-sale is more difficult; feels like an apartment

Disadvantages of Renting

leases and landlords can be a problem; personal lifestyle may be severely restricted in a rental

Advantages of Mobile Homes

less expensive than "stick-built" structures, homes can be taken with you

Advantages of Buying

quick access and greater certainty of product; access to city infrastructure and established neighborhoods; special features "free" (perks not built into cost); dont have to deal with contractors

Appraisal Criteria

Using comparables: 1. size 2. # of bathrooms 3. # of bedrooms 4. Garage (attached/not attached/stall #) 5. Fireplace 6. Comparable homes in the neighborhood and how much they've sold for 7. Tax assessor's value 8. Newspaper, how much are people asking for their homes

Advantages of Home ownership

can have significant tax advantages; inflationary environment and leverage may greatly increase your home equity

Advantages of Building

can personalize home and enjoy state of the art amenities; can pick location; better financing

Real Estate Services to Buyer

can screen properties and provide germane info. about locale; convey your offer to the seller; help with the details at closing

Home Ownership

you choose your home for shelter, not as an investment; it has been public policy to encourages home ownership in this country

Close End Lease

you lease item for a time and give it back at the end of that time; lease payments cover interest for "owning" the item; strict restrictions/requirements/must be returned in same condition it left or penalties may apply

Open End Lease

you lease item for a time and own the product at the end of the pay period

Real Estate Services to Sellers

facilitate price negotiations; know prospective buyers already, and screen out unqualified shoppers; provide some unemotional objectivity and marketing hints; find sources to finance the mortgage; bear costs of marketing; fee may be negotiable; contractually obligated to represent the interest of the seller

Disadvantages of Home ownership

high closing/transfer costs when it is time to buy/sell a home; a very large financial commitment

Advantages to Renting

more available and easier to gen in and out of without financial tie-up; economies of scale for amenities may make the total cost of renting lower (gym, pool, sauna); apartments are more convenient and physically security is better

Advantages of Condominiums

tax advantages same as single family dwelling; property upkeep is handled and you have access to common facilities