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| Buying Your New Home |
What you need to do: One of the best parts of settlement is that buyers and sellers need to do very little. Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
ALTERNATIVE BUYING OPPORTUNITIES
While alternative real estate buying options are limited to a small percentage of transactions, they can arise. Foreclosures, short sales, and auctions sales are some of the types of listings you may encounter in the marketplace so be sure you understand the nature of these sales when deciding how to proceed. Always consult with your Realtor or an advisor if you’re in need of more information.
— Foreclosure Properties
While foreclosures may initially appear to be an appealing homeownership option, it’s also essential to recognize that investing in foreclosure properties is not a simple process. This is a niche market with many subtle but important nuances, requiring considerable specialized knowledge, experience and contacts.
If you decide to pursue a foreclosure purchase, you’ll want to work with an experienced Realtor who can educate you on the process. He or she can help you crunch the numbers, determine a logical purchase plan, avoid potential set-backs, and assist you with all the unique processes and paperwork involved with foreclosures.
— Short Sales
The short sale buying option is becoming more common in places where homeowners paid higher prices for their homes a few years ago than the homes are currently worth now. Short sales are an alternative to a foreclosure. When the borrower can no longer make the mortgage payments as agreed, he is faced with many decisions. One is to allow the lender to foreclose. Another is to get the lender to agree to accept a payoff of less than the balance owing on the loan.
— Auction Sales
Auctions have become more popular, in part, because property owners recognize that taxes, maintenance, financing and other costs can significantly erode their equity, especially if the property sits idle for many months. Auction sellers can effectively pick their sale date. They also may be sending a strong signal that they’re motivated to sell, depending on the type of auction method chosen.
As a homebuyer in the auction process, you are able to determine the price you will pay. The seller may set a minimum price, and you will still have to compete with other buyers, but the actual selling price is ultimately set by you, which differs from houses listed for sale through brokerage firms, where the seller sets the price, and the rest of the purchase process is about negotiating a sale.
Even though auctions are managed differently than traditional brokerage sales, it’s still a good idea to engage the help of a qualified Accredited Buyer’s Representative or Realtor. Your agent can assist you by providing a competitive market analysis and other information that will be helpful in developing your pricing strategy. He or she can also help you review the disclosure package, accompany you to any presale inspections, explain the sales terms and auction procedures, coordinate attorney reviews, assist in prearranging financing and act as your representative in managing transaction paperwork with the auction company.
BUYING REAL ESTATE IN TEXAS
Real estate taxes and laws vary greatly from state to state. If this is will be your first property purchase in Texas, it is best to get acquainted with a few of these common regulations and factor them into your home buying decisions.
— PROPERTY TAXES
In Texas, property taxes are a local tax – assessed locally, collected locally and used locally. More than 3,700 local governments in Texas, including school districts, cities, counties and various special districts, collect and spend these taxes.
You may learn that several types of local governments can tax your property. Texas counties and local school districts tax all nonexempt property within their jurisdictions. You also may pay property taxes to a city and to special districts such as hospital, junior college or water districts, also called municipal utility districts or MUDs. MUD is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other services within the MUD boundaries.
The governing body of each of these local governments determines the amount of property taxes it wants to raise and sets its own tax rate. Most, but not all, local governments other than counties contract with their county’s tax assessor-collector to collect the tax on their behalf.
— HOMESTEAD EXEMPTION
In Texas, homestead exemptions remove part of your home’s value from taxation, so they lower your taxes. A homestead can be a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. Here’s how the exemption works. If your home is appraised at $100,000, and you qualify for a $15,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $85,000. Taxing units have the option to offer a separate exemption of up to 20 percent of the total value.
ALTERNATIVE BUYING OPPORTUNITIES
While alternative real estate buying options are limited to a small percentage of transactions, they can arise. Foreclosures, short sales, and auctions sales are some of the types of listings you may encounter in the marketplace so be sure you understand the nature of these sales when deciding how to proceed. Always consult with your Realtor or an advisor if you’re in need of more information.
— Foreclosure Properties
While foreclosures may initially appear to be an appealing homeownership option, it’s also essential to recognize that investing in foreclosure properties is not a simple process. This is a niche market with many subtle but important nuances, requiring considerable specialized knowledge, experience and contacts.
If you decide to pursue a foreclosure purchase, you’ll want to work with an experienced Realtor who can educate you on the process. He or she can help you crunch the numbers, determine a logical purchase plan, avoid potential set-backs, and assist you with all the unique processes and paperwork involved with foreclosures.
— Short Sales
The short sale buying option is becoming more common in places where homeowners paid higher prices for their homes a few years ago than the homes are currently worth now. Short sales are an alternative to a foreclosure. When the borrower can no longer make the mortgage payments as agreed, he is faced with many decisions. One is to allow the lender to foreclose. Another is to get the lender to agree to accept a payoff of less than the balance owing on the loan.
— Auction Sales
Auctions have become more popular, in part, because property owners recognize that taxes, maintenance, financing and other costs can significantly erode their equity, especially if the property sits idle for many months. Auction sellers can effectively pick their sale date. They also may be sending a strong signal that they’re motivated to sell, depending on the type of auction method chosen.
As a homebuyer in the auction process, you are able to determine the price you will pay. The seller may set a minimum price, and you will still have to compete with other buyers, but the actual selling price is ultimately set by you, which differs from houses listed for sale through brokerage firms, where the seller sets the price, and the rest of the purchase process is about negotiating a sale.
Even though auctions are managed differently than traditional brokerage sales, it’s still a good idea to engage the help of a qualified Accredited Buyer’s Representative or Realtor. Your agent can assist you by providing a competitive market analysis and other information that will be helpful in developing your pricing strategy. He or she can also help you review the disclosure package, accompany you to any presale inspections, explain the sales terms and auction procedures, coordinate attorney reviews, assist in prearranging financing and act as your representative in managing transaction paperwork with the auction company.
BUYING REAL ESTATE IN TEXAS
Real estate taxes and laws vary greatly from state to state. If this is will be your first property purchase in Texas, it is best to get acquainted with a few of these common regulations and factor them into your home buying decisions.
— PROPERTY TAXES
In Texas, property taxes are a local tax – assessed locally, collected locally and used locally. More than 3,700 local governments in Texas, including school districts, cities, counties and various special districts, collect and spend these taxes.
You may learn that several types of local governments can tax your property. Texas counties and local school districts tax all nonexempt property within their jurisdictions. You also may pay property taxes to a city and to special districts such as hospital, junior college or water districts, also called municipal utility districts or MUDs. MUD is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other services within the MUD boundaries.
The governing body of each of these local governments determines the amount of property taxes it wants to raise and sets its own tax rate. Most, but not all, local governments other than counties contract with their county’s tax assessor-collector to collect the tax on their behalf.
— HOMESTEAD EXEMPTION
In Texas, homestead exemptions remove part of your home’s value from taxation, so they lower your taxes. A homestead can be a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. Here’s how the exemption works. If your home is appraised at $100,000, and you qualify for a $15,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $85,000. Taxing units have the option to offer a separate exemption of up to 20 percent of the total value.
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