{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chap 10 Valuation of a Home

chap 10 Valuation of a Home - Serves as collateral Lower...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Valuation of a Home Effects on business activity and zoning laws Business activity nearby increases demand for housing in an area Zoning laws may affect desirability Obtaining a second opinion on your valuation Remember that brokers represent sellers! Valuation of a Home (cont’d) Valuation of a Home (cont’d) Negotiating a price Most sellers will accept less than their asking price Seller may accept your offer, reject it, or suggest a revision A contract will stipulate the agreed upon price and any other conditions Transaction Costs of Purchasing a Home Down payment Usually 10 to 20 percent
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Serves as collateral Lower down payment may be required for government backed loans Federal Housing Administration (FHA) Veterans’ Administration (VA) Maintenance of an escrow account required Transaction Costs of Purchasing a Home (cont’d) • Closing costs Loan application fee—from $100–$500 Points: a fee charged by the lender when a mortgage loan is provided; stated as a percentage of the mortgage loan amount Loan origination fee—about 1% of the mortgage amount Appraisal fee—from $200–$500 Title search and insurance...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online