Downsizing can save you money.

Let's face it, we all want to save money.  With the increased cost of utility bills, operating a large home has become a large expenditure these days.  Sometimes it is almost ridiculous the amount of money we pay every month just to heat our homes.  If you stop and think about it, downsizing can save you money.
There are four things a house costs.  The mortgage, the insurance, the taxes, and the utilities.  By starting with the mortgage, you can save money just by moving to a smaller home with less of a payment.  The larger home usually costs more so the mortgage will be larger.  By opting to sell and buy a smaller home, you can save some money on the monthly mortgage payment. Not to mention if you have equity built up in the larger home, you can really have a great down payment on the new place.  This would allow you to pay it off earlier than the larger home, saving you even more money in interest charges.
With the smaller home, the insurance premiums would be less.  Again a savings you would be able to recognize.  This can really add up over the years.  The reason the premiums are lower is because it would take less money to rebuild or repair if something were to go wrong.
Usually the taxes are based on the appraised value of a home.  They can also take into consideration the square footage and the road frontage of the yard.  The taxes in some areas is astronomical.  By downsizing you can save money because the taxes on the new property will be considerably less.  The square footage will be lower.  The appraised value will be less.  Generally in a smaller home the yard is smaller too.  This is not always the case, but it can be true in some areas.  Either way the lower taxes will definitely be a plus for downsizing to a smaller home.
Downsizing can save you money with the utilities just because the home is smaller.  You do need to make sure the property is weather tight.  This means you will want to insulate where you need to, caulk any leaky windows, or even replace them, and make sure weather stripping is in place.  The furnace or heat pump should also be checked to make sure it is operating at full efficiency.  This will ensure you will save money on the fuel bills in the winter.  The electrical system should be up to code and as efficient as possible.  If you have fuses instead of breakers you may want to change over.  When you have completely weather proofed your home you will see a marked difference in the utility bills.
Many people have started to downsize due to a loss of income or illness in the family.  This is becoming more and more common with the economy the way it is right now.  If downsizing can save you money it may be worth looking into.  Sit down and calculate how much you could save over the next five years if you lived in a smaller home.  The figures may surprise you.
Contact or  refer to Sarah Miller’s page for more details.

Downsizing does not have to be painful.

Years ago, it was nothing to have four or five children in a family.  Some families had even more.  This meant finding the biggest house for the least amount of money.  The more square footage and the more bedrooms the better.  As the children grew up and moved away, the house became even larger.  The only time it seemed crowded was during the holidays and even then there was plenty of room for everyone.
Now the house just is too big and there is so much that must be done to maintain it, the holidays are no reason to keep the lumbering giant.  It is time to downsize.  This can actually be a fun time in someone's life. It gives them a time to reflect on the many memories they have from the old house.  Packing can be a fun way to share some of those memories. One way to do this is to have a packing party.
Before you even begin, make sure you know what you are taking with you and what you are not going to need.  You can do this by packing some of the things away on your own.  Then you can call in the family to help.  Make sure the grandchildren are included in the invitation.  Let the family know this is going to be a whole day affair.
Start out by asking everyone to bring a box.  This is where the fun can begin and a trip down memory lane can cause some great laughter.  As your family arrives, explain you are going to be selling the house and you are packing up what you are not going to need.  As the kids wander from room to room it is their job to explain about the stain on the living room carpet that just mysteriously appeared.  They can also talk about how the unwanted house guest “No Body” kept doing things behind everyone's back.
As the items are packed up and placed away, each one of the children will have their own memories as well.  These can be shared with other members of the family and the new generation too.  The trophies which have gathered dust can be bragged about once again.  The favorite toys in the attic can be brought back to life with the grand kids in the house. 
Downsizing does not have to be a sad time.  It can be a time when the entire family remembers what it was like growing up with each other.  The dishes used at holiday dinners, or why there are only three legs on the table that are straight can really make the experience a great way to say goodbye to a family home with lots of history.
As each family member packs up a box, make sure there is one they are going to take home filled with the wonderful treasures they had when they were growing up.  This way a part of the old house will remain with each one of them for years to come.
Contact or  refer to Sarah Miller’s page for more details.

What are closing costs?

When you make an offer to purchase real estate, you will hear the terms closing and closing costs.  This can be a little confusing if this is your first real estate deal.  The closing is almost a ritualistic formality where everyone associated with the real estate transaction is represented.  A meeting it set up to go over the entire contract one last time and explain who is getting what and who is paying for what.  The lender, the buyer, and the seller will all be there.  The title company and the real estate agent who handled the deal may also be present.  The closing costs are the fees associated with the real estate transaction.
The fees can be anything from the title search to ensure a clear title to the inspection fee.  It actually can depend on where you are located as to who pays for what.  This can also be determined by the sales contract signed between you and the seller.  Many times the seller can be asked to pay all the closing costs.  This would mean you do not have to pay any of the fees being charged.  There are some you just will not get out of no matter how much you debate or negotiate.  The appraisal is usually one of them.  However most of the others can be negotiated effectively.
The seller will usually pay for things like the real estate commission and the loan payoff of his old mortgage.  He can also pay for title insurance and, of course, any repairs needed on the property before possession.  Any and all of these fees, except the mortgage can be a point of negotiation.  This would have been done prior to closing so everyone knows what is expected of them.
The buyer will be asked to pay for the loan origination fee, property insurance, and inspections if there were any done.  Depending on the area you live in the buyer may also be expected to pay the title insurance or even 50% of the transfer fees. Again, this is all something which was most likely worked out in the signing of the purchase agreement.
The typical closing costs and fees associated with buying a home are:
è  Loan origination fee.  This is the fee charged by the lender to make sure the loan process takes place.  The typical charge is 1% of the loan.  On $100,000 the loan origination fee would be $1,000.
è  Discount points.  This is money paid to buy down the interest rate.  Each point is valued at a percentage of the interest rate.  In many areas 1 to 2 points can buy down the interest rate by as much as ½ %.  This can save the buyer money over the course of the loan.
è  Credit report.  This can range anywhere from $25 to $50 depending on your lender.
è  Title search.  This can range any where from $400 to $600 depending on the title company.  If the buyer and seller are both getting title insurance, you can split the cost because the title company can do one search for both customers.
è  Appraisal.  The fee for an appraisal can be negotiated with your lender.  If you know a good appraiser, you can see if he or she is acceptable to your lender.  You can save money this way. Typically the fee for the appraisal is anywhere from $150 to $450.
è  Premium Mortgage Insurance (PMI).  The PMI can be negotiated.  This is the insurance which states that a high risk loan is guaranteed against default.  In other words, a lender who is giving a loan for 80% or more of the property value can charge the borrower a fee until the mortgage is paid down to under the 80% ratio.  There are many changes occurring with the PMI. Most loans under $250,000 do not require it any longer.
è  Recording fee.  The fee to record the real estate transaction.  Usually only $40 or so.

There may be other fees in your area.  These are the basics.  You can speak with your real estate agent and lender to get a copy of what you will be paying at your closing.
Contact or refer to Sarah Miller’s  page for more details.

What is a closing?

This is one of the most frequently asked questions when it comes to real estate.  It is basically the final step to taking ownership of your new property.  It is a process which enables a third party to sit down with all the parties involved with the sale and go over all the details.  There are many questions people ask about closings.
Who will be at the closing?
The closing agent will be there to preside over the closing.  He may work for the lender or the title office and is usually an attorney.  The other people present will be the buyer and seller, who may bring their attorneys, and the real estate agent handling the sale.  The title company will also send a representative who can provide the evidence of a clear title.  The lender will also be present.
How long is the closing process?
The closing process is actually the shortest meeting during the entire buying process.  It normally only takes about an hour from start to finish.
Do I get the keys to the house at the closing?
Under normal circumstances, the keys will be presented to you by the seller at the end of the closing. There may be stipulations which allow the sellers to stay in the home for a set period of time.  This will have been determined when the purchase agreement was signed.
What happens at the closing?
This is where you will be signing the final documents pertaining to the purchase of your new home.  This will include the Truth in Lending Statement.  This is also referred to as a Regulation Z.  The lender must present this so you know exactly what the interest rate is and what the entire amount of the loan is going to be.  This paperwork will allow you to see the total cost of  the loan, the interest rate, the amount borrowed,  and the annual percentage rate.
You will also sign the note and the mortgage.  The note is the actual paperwork that states you are borrowing X amount of money and plan on paying it back in the terms written therein.  The mortgage is the lien on the property you are buying.
The warranty deed will be presented to the buyer and the seller to sign.  The signing is the transfer of ownership.
You will also be asked to sign, along with the seller, a proration agreement which states how the money owed for taxes and such is going to be paid the month of the closing.
The abstract will also be a part of the closing paperwork. This is the history of the property, on paper.  This will include prior sales and any other important information about your new home.
There will be an affidavit which states you are who you say you are and you can prove it.  This will need to be signed as well.
Of course, one of the last papers you will sign is the one stating you have seen all these other papers and have a copy of them.
The closing may seem tedious.  It is worth the effort when you are able to walk into your new home and know it is yours.
Contact or  refer to Sarah Miller’s page for more details.

What is an addendum to a contract?

Do not confuse an addendum with an amendment.  In real estate they are two specifically different things.  This can be confusing and it can also lead to problems if you word either one wrong.  So what is an addendum to a contract?
 Let me first explain amendments.  An amendment is an alteration of the original agreement.  This can be any thing from price to when the seller vacates.  For instance, an amendment can be used to during negotiations to counter an offer already made.  An example would be the buyer has offered to pay X amount of money for the property with the following conditions.  Things like the kitchen appliances stay and so do the laundry room ones.  The seller can add an amendment which states the washer is going but every thing else stays.
An addendum is part of the original contract.  It is another section or part which is very specific in what it says.  For instance if the buyer is making an offer on a farm, he or she may want to clarify the terms in more detail.  Terms like what is to happen to the crops already planted, or if any of the farm equipment stays can be clearly marked out in an addendum.
The addendum becomes part of a legal and binding contract.  The amendments are parts of a contract still in negotiations.  The addendum will stand up in court.  The amendments will just show what everyone was thinking.  If you ever did have to go to court over the contract, it is a good idea to have both the final copy, with the addendum, and the rough draft with the amendments.  It can give the judge a better idea of what was trying to be represented during the formulation of the contract.
A contract can have many addendums.  Each one can be specific about certain aspects of the sale.  Think of them as if then clauses.  For instance, if the water supply in the well is not potable but safe for other uses, the buyer can specify the seller must drill a new well.  The addendum can specify where the well is to go and who will drill it.  Amendments can be made to an addendum which states, in this case, the well driller will decide where the well is to be placed.

Because an addendum is a legal and binding part of a contract, you must choose your wording carefully when adding it to the original contract.  The addendum to a contract can include just about anything either party wants to clarify.  It is important to realize the original contract should also include wording such as “see attached addendum” or “addendum attached” so that there is no dispute later on should a question come up.  There have been times the wording was not in the original contract and the addendums not attached to the documentation when a case was presented in court.  This caused the courts some concern as to what was valid and what was not allowed.  In the end, the addendum did help to win the case.  However, if the single phrase “addendum attached” had been in the original contract there would have been no questions.
Contact or  refer to Sarah Miller’s page for more details.

Home Buying Basics

 If you are interested in home buying there are some basics that will help your situation in more ways than one. The fact of the matter is that although some people see home buying as a long hard process, you can actually have fun with this if you know what you are doing. The key to having a good time when buying a home is to know what you are doing. This is why you should become familiar with all of the basics before you ever get started. The more information that you know up front the easier things will be on you as you move forward in the buying process.
 One of the most important home buying basics is to know where to look for your new home. If you do not have a clue on where to do this, you will never be able to find a home that is perfect for you. Luckily, you can search for new homes in the newspaper, online, or by simply driving around looking for sale signs. If you put time into all three of these ideas you will surely find a home that suits your needs.
 Another important home buying basic is how you are going to pay for your purchase. After all, if you do not have the money to buy a new home you are not going to get very far. There are many financing options that you should consider so make sure that you look into each one as closely as you can. Not only should you look into how you can finance your purchase with the different types of mortgages, but you should also consider you down payment. Remember, the more money that you put down on your home the lower your monthly payment is going to be. And of course this is a good thing.
 Finally, if you need any help sorting out the home buying basics you will want to get in touch with a professional such as a real estate agent. They will be able to help you find a home, get a mortgage, and answer any questions that you may have. Although you may want to do everything on your own, having a real estate agent on your side comes along with a lot of benefits.
 Gain as much knowledge as you can about home buying basics so that you can make this process as easy as possible.
Contact or  refer to Sarah Miller’s page.

Hire your own Agent to Buy a Home

 Are you interested in buying a home? Is it about time that you move on from your current living situation? If so, you will be up against a tough market. Many buyers find it very difficult to find and buy a home for one reason or the next. If this happens to you, there is one thing that you should look into doing. Do you know what it is? Simply put, you should look into hiring a real estate agent to work on your behalf. Many people think that agents are only for sellers, but this is far from the truth. You can do yourself a lot of good buy hiring a real estate agent to work on your side.
 The biggest benefit of working with a real estate agent when you are buying a home is that they are familiar with the market in a particular area. This means that they will be able to tell you when new homes open up, and also what you need to do in order to get the best deal. Generally speaking, a real estate agent can give you all of the help that you need. For many people who are not familiar with the real estate market this is a great idea.
 Another benefit of hiring a real estate agent is that they can help you to negotiate the deal. Not only will you be able to ask them any questions that you have, but when you are ready to make an offer they can get in touch with the other agent in order to iron out the details. This sure beats having to do this on your own. When you leave things up to your real estate agent you can be rest assured that they know what they are doing, and are working on your behalf to get you a great deal.
 As you can see, buyers can use real estate agents as well. You do not have to be selling your home in order to take advantage of what a real estate agent has to offer. So before you take on this process alone, look into what hiring a real estate agent can do for you. You may be surprised at all of the help you can get along the way.
Contact or  refer to Sarah Miller’s page.