|
|
.
. . ask ellen! FAQs
- how
do i find out about local foreclosures?
www.hooksvanholm.com
- an agent with a registered broker for HUD foreclosures (we are
registered) can show you the property and put a bid on it for
you.
- how
much do closing costs run?
In PA these are typically
approx. 5-6% of the sale price, when
there is a mortgage. In cash deals it is less since there are
no tax escrows or loan charges.
In PA there is a 2% transfer tax on property sales which is typically
split (1% buyer and 1% seller)
- how
can i get around paying all the closing costs, if i only have
enough for the downpayment i want to make?
you could ask for 'seller assist' on closing
costs (depending on bank's rules, up to 6% of price)... when you
ask the seller to help pay this, the price (net) will usually
go up -- this is oftentimes why some properties sell 5-6% higher
than asking price.
- some
land is under 'act 319' - what does this mean?
Act 319 or the "Clean and Green"
law, was first used during the 1976 tax year. The landowner of
the acreage promises to keep the land natural, in exchange for
a major taxbreak. If someone should purchase the land, that new
owner would need to apply for 319 within a month of settlement,
or lose this tax status and pay the last 7 years of back-taxes
on the property (sometimes to then sub-divide/build)... your county
tax office should have a pamphlet with specific rules.
- if
i buy an investment property, do i have to get a commercial loan?
if you live in the investment property and
the
property has 4 or less units, you
can probably get a conventional residential loan.
if it is NOT owner-occupied, the lender will want to do a commercial
loan -- typically with at least 10 - 20 % down... see 'commercial
101' section of my site for more info.
- what
exactly is a 'buyers' agent', compared to a 'listing agent'?
in PA, agents must explain the roles of
a realtor to clients once a substantive conversation (talk of
$$ financing and moving forward on a transaction) takes place...
this is covered in the consumer notice. a realtor's roles
can be the listing agent, a buyer's agent, a dual agent, or a
designated agent... when you employ an agent as your buyer's agent
they are looking out for YOUR interests - not the seller's. As
a listing agent, the realtor's loyalty is to the seller - whoever
the agent is employed by - that is the side that agent has a fiduciary
responsibility for. Let's say that you are employing the agent
as your buyer's agent -- This means that agent cannot reveal anything
that you have told them in confidence to a seller or their agent.
Maybe you told them that you are willing to go $10,000 higher
on an offer you just made (but obviously don't want that revealed
to the other party). Your buyer's agent has an allegiance to you
and should keep any sensitive info. like this in confidence.
- what
is P.M.I.?
private mortgage insurance is essentially
a 'tax' the lender charges you, when you put less than 20% down
on a property. It is purely extra interest; you get no equity
for paying PMI.
- how
do i get out of paying PMI?
some lenders will 'split' mortgages between
2 loans, so that one loan will account for 80% of the price and
the other 20% is cash & a higher-interest 2nd loan... it's
sort of a work-around for the 20% cash down -- sometimes this
is worth doing to avoid paying PMI.
Once you've lived in a home and made substantial improvements
(added a bath, new kitchen, add another bedroom, finished basment)
- or if the local real estate market has been very strong and
prices have gone up, it might be a good idea to get a re-appraisal...
if the value of your home equity has gone up (i.e. 20% 'down')
then your bank may wave the PMI - speak to your lender about when
to do this... and keep all those home-improvement receipts!
- do
i need an attorney to do a real estate transaction in PA?
no, it is optional and completely up to you -- it is always prudent
to have an attorney at your side. For more complicated transactions
or commercial ones, it is a good idea to have an attorney review
of contracts, etc. The attorney review addendum is an extra form
signed with the offer ...you then have 3-5 business days to have
a real estate atty review what you've signed (and make any legal
changes).
just
send
me an email with your question and i'll get back to you asap.
Thanks!
back
to top
|
ellen@realsellen.com
610.360.3394
610.253.6123 office
back
to top.
real
estate license #732006998
|
