Uncategorized

When a prospective buyer has found the right house and agreed to a price with the seller, the buyer can make a contingent offer. That means that the transaction will proceed, as long as specific contingencies, or conditions, are met. Those contingencies are essential to ensure that each party is aware of all relevant facts and able to make an informed decision. If the contingencies are not met, the would-be buyer can decide not to purchase the house and keep the earnest money provided.

Inspection
The most important contingency from the buyers perspective is the home inspection. A professional inspector will thoroughly check the house for any problems that may not be readily apparent. An inspection should cover everything from the roof to the electrical wiring, plumbing, foundation and possible mold.

If an inspection discovers any cause for concern, the problem will need to be addressed. The buyer can ask the seller to fix the issue as a condition of sale, or the seller can decline to make repairs but agree to lower the sale price. If the parties are unable to reach an agreement, the buyer can decide not to purchase the house and walk away.

Appraisal
An appraisal is another contingency thats designed to protect the buyer. An independent third party will calculate the current fair market value of the house. If the appraised value is less than the asking price, the buyer can renegotiate with the seller or walk away.

If the buyer loves the house and is willing to pay more than the appraised value, obtaining a mortgage may be problematic. A lender will approve a loan up to a percentage of the appraised value. If that number is less than the sale price, the buyer will have to make up the difference with a larger down payment.

Mortgage
If the buyer isnt paying cash, an offer will be contingent on mortgage approval. A buyer may think he or she will qualify, but a lender can reject an application for a variety of reasons. A buyer whos pre-approved for a mortgage may be unable to complete a purchase if the appraised value turns out to be lower than the sale price and the buyer is unable to come up with enough money for a bigger down payment.

A buyer whos unable to obtain a mortgage can walk away. This contingency also helps the seller avoid waiting months for a buyer to get approved for a mortgage and having to turn down other offers in the meantime.

Discuss Contingencies with Your Agent
After a buyer and seller have agreed on a sale price, its natural to want to move quickly, but contingencies are designed to protect both parties. Whether youre buying or selling a house, discuss the importance of a home inspection, appraisal and mortgage approval, as well as the potential ramifications of unforeseen problems in any of those areas, with your real estate agent.

Published with permission from RISMedia.

Once a buyer and seller have agreed on the price for a house, they sign a purchase contract that outlines the terms of the deal and includes a closing date. Setting a specific date is intended to motivate all parties involved in the transaction to work expeditiously to fulfill their duties. Sometimes, however, things dont go according to plan and the closing is delayed.

Reasons Why the Closing May Be Delayed
A real estate deal may not be able to close on the anticipated date for a variety of reasons. Sometimes the buyer is unable to get approved for a mortgage. Even if the buyer was pre-approved, a recent increase in debt couldve made the persons debt-to-income ratio too high and caused the lender to rescind the mortgage offer or change the terms. The buyer may also be unable to get a mortgage because the house was appraised for less than the sale price. The home inspection also couldve uncovered serious problems that need to be fixed prior to closing, such as roof leaks or mold.

What Happens If You Cant Close on Time
The purchase agreement should specify whatll happen if the closing is delayed. If one party is clearly responsible for failing to meet the target date, that party will have to pay financial penalties. The contract may specify a variety of penalties for different scenarios. The penalties may be flat fees or may be calculated in other ways.

If the buyer is unable to close on time, he or she may be required to pay the sellers mortgage on a prorated basis until closing. If the seller is responsible for the delay, he or she may have to pay for the buyers unanticipated living costs until closing.

A lender may refuse to approve a mortgage for more than the appraised value of a house. If the house was appraised for less than the agreed-upon sale price, the parties may have to renegotiate the price.

If the closing is delayed because the inspector found serious problems, the parties will have to decide how to proceed. The seller may be willing to make repairs before closing. If the buyer cant wait to move in, the seller may be willing to lower the purchase price to account for the cost of repairs. If the problems are major, the buyer may decide to cancel the deal.

Discuss Potential Delays With Your Real Estate Agent
If you have any reason to think that you might miss your closing date, talk to your real estate agent. He or she might be able to help you find a solution or work with the other party to make modifications or concessions so you can proceed as close to schedule as possible.

Published with permission from RISMedia.

Local governments and school districts raise a large portion of the money that goes toward paying for education, emergency services, transportation and other public goods through property taxes. The amount that individual homeowners pay is determined by the assessed property value and the mill rate. Each of these is calculated through a complex process.

How Property Values Are Assessed
An assessor will determine the value of your home, which can change over time due to depreciation, improvements you make, the local economy and housing market. Assessors may use any of three methods to calculate the value of a home. In some cases, they use a combination of two or more methods.

One way to determine the value of your home is by looking at the sales of comparable properties in the area. Those figures are used as a baseline and can be adjusted to account for the location of your property, the amount of land it sits on and any upgrades you have made.

Another way to assess the value of your house is to figure out how much it would cost to replace it if it were destroyed, a calculation that will include local material and construction costs.

A third method of assessing your propertys value is to calculate how much income you could generate by renting it. The assessor will consider market value and will deduct costs to manage and maintain the property, as well as insurance premiums and taxes.

You should receive a statement showing the assessed value of your property. If you disagree, you can submit relevant information and ask the assessor to review the calculation taking the additional facts into account. If you accept the assessment, you will receive a separate property tax bill.

How Tax Bills Are Calculated
A mill levy is a tax rate used to determine how much property owners must pay. One mill is equal to one-tenth of one cent. County and local governments and school districts set their own mill levies based on the amount of money they need to raise and total property values in the area under their jurisdiction. Property owners then pay a mill rate that can include a total of county, state or town and school district mill levies.

The mill rate will be multiplied by the assessed value of your property to determine your property tax liability. You may receive a tax bill once a year or once every several years, depending on the governments policy. If you have any questions about how much you will owe and when, you can visit the assessors office or look up the information on its website.

The Benefits of Understanding How Property Taxes Work
Property taxes can vary widely based on where you live, the value of your home, and how much money the local government and school district need to raise. Knowing how your homes value is assessed and how property taxes are calculated can help you avoid being shocked by the size or timing of the bill.

Published with permission from RISMedia.

Contemporary homes can be a challenge to furnish. While their clean lines and sleek materials are often visually striking, its all too easy to lose the inviting feel of a cozy living space. If youre looking for contemporary furniture to fill out your new home without sacrificing comfort, these luxurious collections cannot be missed!

Roche Bobois Nativ Collection

The work of Paris-based designer Raphael Navot, Roche Bobois Nativ Collection is defined by gentle lines and whimsical geometric shapes. Plush sofas, armchairs, and daybeds are underlined by soft down material and come in earth tones that lend warmth to any room. As far as furniture goes, you wont find a better combination of contemporary form and artisanal craftsmanship.

Fendi Casa

Cozy yet sophisticated, Fendi Casa has become an iconic collection found in the most exclusive settings around the world, including the Monaco Yacht Club. Encompassing every area of the home, from living and dining rooms to kitchen and bedrooms, the furnishings exude clean lines with plush materials, like velvet and nubuck leather.

B&B Italia Outdoor Collection

For a touch of visual flair on your terrace, the Outdoor Collection from B&B Italia effortlessly blends style, comfort, and weather resistant materials. From loungers to canopy sofas that provide shade, its the perfect way to decorate a chic seating area around your pool or fire pit.

Vitra Home

Vitra Home exhibits contemporary cool without feeling cold. They like to get creative with surprising and funky shapes that are sure to stand out, while providing exceptional comfort. The lounge chairs in particular exemplify bold design that can elevate the aesthetic of any room in the house.

Bottega Veneta Home

Bottega Venetas Home Collection is like a masterclass in making modern design feel understated and inviting. Originally launched by the Italian design houses longtime creative director, Tomas Maier, the collection has grown into a full range of offerings, including beds, lighting, and cashmere blankets, all of which are stunning. The innovative textures and colors bridge the gap between design and high-fashion for a collection that is certain to enrich contemporary and traditional homes alike.

Published with permission from RISMedia.

One of the most important steps in buying a house is saving enough money for a down payment. Depending on the type of mortgage you obtain, you could have to put down as much as 20 percent, or significantly less. Even if your lender only requires you to put a small percentage of the purchase price down, that will still total thousands of dollars. There are many ways to come up with the money.

Seek Government Help
The federal government and many states offer down payment assistance programs. Rules and amounts available depend on location, the size of the loan and the buyers financial circumstances.

Beef up Your Savings Account
A small amount of money, if set aside consistently each time you get paid, can add up over time. The key is to transfer money to a savings account no matter what. If you dont have the discipline to do that yourself, set up automatic transfers.

If you expect to get a tax refund or year-end bonus, resolve to use it for a down payment. You can use part of it to reward yourself, but focus on your long-term goal of owning a home.

Pay off Debt
If you have credit card balances with high interest rates, you are probably paying thousands of dollars per year in interest. That is money that could be used to fund a down payment on a home. Create a plan to pay off your credit card bills as soon as possible. That could mean cutting expenses, working overtime, getting a second job, paying a little more toward your credit card bills each month, consolidating your balances, or taking out a loan with a lower interest rate.

Once you have eliminated your debt and interest payments, the money you had been putting toward those bills each month can be devoted to saving for a down payment. Paying off credit card debt can also improve your credit score and help you get a lower interest rate when you apply for a mortgage.

Tap Into Retirement Funds
In some cases, you might be able to withdraw money from an IRA to fund a down payment on a house. Depending on the type of account you have, you might have to pay taxes and penalties. If you have a 401(k), you can borrow money to buy a house, but you will have to pay it back with interest. Any money that you withdraw from your retirement savings wont be able to accrue interest, so think carefully before choosing one of these options, especially if youre getting close to retirement age.

Figure out a Strategy
Saving money for a down payment can feel overwhelming. It may take several years, depending on your price range and financial circumstances. Explore your options and come up with a plan, preferably one that combines a variety of approaches.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.