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SET IN STONE?
When purchasing a residential property, neer take it for granted that fences, stone walls, and other border indicators necessarily mark the boundaries of the property accurately. Only a property survey conducted by a professional surveyor should be relied upon to locate property lines. Without a survey, prospective buyers may be relying on the wrong information. If so, any assumptions that they may be making with regard to futre expansion possibilities may be called into question. While the cost of a professional survey is not inconsequential, it can certainly pay for itself many times over if it serves to uphold the buyer's assumptions about adding on to the house at a later date.
"Lawn for Sale Too"
New York Newsday (03/17/06) ; Merritt, Jim
A growing number of homeowners are spending more on landscaping in an
effort to enhance curb appeal and boost their property's resale value.
According to a survey commissioned by The Professional Landcare Network,
spending on professional lawn, landscape, and tree services surged 31
percent to $37.9 billion in 2003 from $28.9 billion in 2002. Network
spokeswoman Vicki Bendure adds that homes that have been professionally
landscaped can fetch 15 percent to 20 percent more at the time of resale
than homes that lack landscaping. Huntington, N.Y.-based broker Bonnie
Williamson of Daniel Gale Sotheby's International Realty says, "I
don't care how beautiful the kitchen is, if the garden and lawn aren't
pristine and beautifully presented, then we're not even getting the
buyer through the front door." Sellers still have time to jazz
up their lawns before the spring home buying season begins, as moving
from dirt to grass takes only a few weeks. However, National Association
of Realtors spokesman Walter Molony cautions sellers to spend only 1
percent to 2 percent of their home's value on boosting curb appeal.
As for buyers, experts urge them to pull up a 3-inch-wide plug of grass
to gauge the health of the lawn. Cornell Cooperative Extension turf
and land management specialist Tamson Yeh says brown, tan, brittle,
or slimy roots and soil that smells like sulphur should raise red flags.
Glossary of Real Estate Terms
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan by which the loan is reduced through monthly payments of principal and interest.
Appraisal - An evaluation to determine what a piece of property would sell for in the current market place.
Assessment - A tax levied on a property or a value placed on the worth of a property by a taxing authority.
Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller
Closing - A meeting to sign documents that transfer property from a seller to a buyer (allso referred to as settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring areal estate title. Conditions, Covenants and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer makes for the benefit of all owners in a subdivision.
Default - A breach of a contract (i.e., not making required payments on a mortgage; not following through with clauses)
Down Payment - The difference between the sales price and the ortgage amount. A down payment is usually paid at closing.
Earnest Money - A sum paid, usually held in an escrow account, to show the seller that a potential purchaser is serious about buying.
Escrow - The handling of funds or documents by a third party.
Hazard Insurance - Protection against damage caused by fire, windstorm or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Mortgage Broker - A broker - who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company - Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower's property is pledged as collateral. It is repaid in installments. The mortgagor (buyer) promises to repay principal and interest, keep the home insured, pay all taxes and keep the property in good condition
Mortgage Origination Fee - A charge for the work involved in preparing and servicing a mortgage application (usually one percent of the loan amount)
PITI - Principal, Interest, Taxes and Insurance (the four major components of monthly housing payments).
Point - A one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan. Generally, it is one percent of the mortgage amount.
Prepayment - Payment of a debt prior to maturity.
Principal - The amount borrowed, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. The cost depends on the complexity of the survey.
Recording Fee - A charge for recording the transfer of a property, paid to a city, county or other appropriate branch of the government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement.
Sales Contract - A contract - between buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, hwen the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed upon terms.
Title - Evidence (usually in the form of a certificate or deed) of a person's legal wright to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdicitons.
Veteran's Administration (VA) - A federal agency that insures mortgage loans with very liberal downpayments required for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local government regarding the location, height and use for any given peice of property within a specific area.
