What To Know Before You Sell Or Buy A Property
Before you sell a property, you’re going to want to do a little research on similar properties in the area. Using search engines like Google, Zillow, or other realtor sites makes this process extraordinarily easy. You can usually get a pretty good snapshot of the property in this way, but if you still feel uncertain about the value of the property, you might consider getting an appraisal done. Having a good grasp on the value of your property is going to give you a good place to start, especially if you’re not working with a realtor.
If you’re going to try to buy a home, your first step is going to be determining your realistic budget. You’ll want to look at what financial resources you have and what your price range should be. You need to factor in the initial cost of the transaction as well as the ongoing cost of insurance and taxes. Typically, you don’t want to buy at the top-end of your budget because home insurance rates are increasing due to the costs of materials needed to rebuild properties in the event of damage.
If you’re buying at the top of your budget and you don’t have emergency funds sitting aside, you could be headed for financial difficulties as soon as you move in or relatively soon down the road. If your air conditioning dies and it’s going to cost you $10,000-$12,000 to get a new unit, but you haven’t set aside any funds for this type of expense, you’re going to be looking at a very hot summer. That might be uncomfortable, but it could also be your hot water heater or your stove that needs to be replaced, which are far greater than a minor inconvenience.
These things can be catastrophic to someone who hasn’t planned or prepared with the understanding of what the true costs of home ownership can be before they make their purchase. Furthermore, if you’re going to finance the deal, you need to open a conversation with a lender to see if you can get prequalified. This can be a good guide to see what you can actually afford.
When To Seek Financing When Purchasing A Residential Property
Realistically, you want to get financing prepared when you’re seriously looking at homes. You’re pre-approved for a certain amount or range, it gives you a better idea of what properties you can actually afford. Being pre-approved for financing also helps prevent you from over-buying, because your lender has set a limit for you.
Your Real Estate Attorney’s Role In The Financing Of Your Home In Pennsylvania
A real estate attorney can play a role if you’re getting private financing. A mortgage and a note is something that an attorney could prepare for you, as well as for an offer. If you know you need financing, a real estate attorney would help make sure that you had the right terms on the financing contingency so that you aren’t obligated to take a loan that you can’t really afford. Your attorney’s role is to help prevent any potential harm to you down the road if the property ends up being beyond your means.
The Necessity Of A Title Search In Pennsylvania
A title search is a research project for a title agent. They will look at the chain of ownership of the property back through the years to a certain degree. It doesn’t typically go all the way back to the beginning of the property unless it was just recently sub-divided or similar. A title search will usually be short-term, going back 40 years or less.
The purpose of a title search is to identify if the property was clearly and properly conveyed each time it was bought and sold. This is to ensure that there are no questions hanging in the balance, such as adverse possession.
Adverse possession is when someone has openly and, notoriously without permission, continuously used somebody else’s property for a period of 21 years or greater and now they believe that the property is theirs. A title search is going to expose any adverse possession of the property which might cause issues for a buyer in the future.
A title search is also going to generate concerns and questions from a title insurance perspective. Title insurance is typically required by a lender. It’s what secures, guarantees, or helps the lender become comfortable financing a property that has a free and clear title. The title insurance company wants to be sure that the property they’re going to ensure is free and clear of any liens or other encumbrances that might create a value problem for the property.
Having a clear title is also critical even if you pay cash and are able to purchase the property without financing. Having a clear title protects you and any subsequent buyers who may also need a loan and identify the same concerns or existing problems. It ensures that you’re able to resell your property if and when that time comes.
With the guidance of a skilled attorney for Real Estate Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy.
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