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
