I
am ready to buy a home, what should I do first?
The
first thing you should do is determine a price range.
This can be done by contacting a mortgage company
such as Seattle
Mortgage, Residential
Mortgage or Premier
Mortgage . They can determine the amount and pre-qualify
you for a home loan.
Is
buying a home a good investment?
Yes,
not only does it provide an opportunity to accumulate
equity but historically property values have always
risen over the long term. A real estate investment
is nearly always a long term investment.
back
to top
Is
there any tax advantage to buying a home?
Absolutely,
almost without exception the interest payment on a
first home mortgage is tax deductible as well as the
interest in most second home mortgages. This means
that you would get a dollar for dollar reduction in
your taxes according to the bracket you are in.
Should
I sell my property for what the Municipality of Anchorage
says it is worth?
No,
while the Municipality of Anchorage charter mandates
that all real property be assessed at true market
value, as a practical matter this is unworkable because
value is a judgment call and is always open to question.
Typically the Municipality in order to save administrative
costs and appeals reduces the assessed evaluation
by approximately ten percent. Historically this cost
reduction is less than the ten percent undervaluatioin
so everybody wins.
Back
to top
Why
would I contract with an agent to sell my home rather
than try to sell it myself?
A
good Real Estate Agent with their experience and knowledge
in many different fields such as market value, construction,
financing, negotiating, marketing, and legal pitfalls
can generally save you much more than the commission
they charge for their professional services.
How
much should we plan to have for the down payment and
closing costs?
The
amount of cash needed for the down payment and closing
costs is directly related to the type of financing
available. This depends on the eligibility of both
the buyer and the property as well as various subsidy
programs. The normal requirements can range from 0
to 25% or more of the purchase price. This should
be discussed in detail with your real estate agent
and mortgage lender prior to looking for a home.
Back
to top
How
much home can I afford?
The
various sources of financing have different qualifying
rules and requirements for real estate lending. Again
your best source of information is a good real estate
agent and a good mortgage lender prior to looking
for a home.
Can
we borrow the down payment?
Generally
speaking, the answer is no for most types of financing.
The most reliable source of information regarding
borrowing or gifts of down payment money is your real
estate agent or mortgage lender.
I
found a house I want to buy but I need to sell the
one I own first. What do I do?
This
is a very common situation in the real estate industry
and one that can be easily handled by the appropriate
language in the contractual agreement to purchase.
Back
to top
Do
I have to hire an attorney to buy or sell property?
There
is a historical matter of competition between participants
in the real estate industry and the legal profession.
The answer to this question will typically depend
on who you ask. In all fairness, the answer should
depend on the complexity of the transaction. Legal
advice should be sought in the more intricate or complex
transactions that are outside the realm of experience
of a competent real estate agent.
If
we list our home and change our mind, can we cancel
the listing?
Yes,
the listing contract is an employment contract to
find a buyer that is ready, willing, and able to buy.
It is not a contract to sell. However, in some cases
you may have to pay the real estate broker his/her
fee to cancel. This should be negotiated prior to
signing the listing contract.
Am
I liable for taxes on my gain if I sell my home for
a profit?
That
depends, generally speaking, there is a qualifying
exclusion of $500,000 in gain if married and filing
jointly or $250,000 if your single.
The
qualifying tests are:
You
must have owned and lived in the home as a principle
residence for two out of the last five years.
You
have not excluded gain on sale of another home within
the last two years.
Back
to top
C.
E. Tanner & Associates
