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Grist Mill Real Estate
265 Main Street
Saugerties, NY 12477

Elda Zulick, GRI, CRS, CRB.

Phone: (845) 246-3200 
Toll Free: (800) 664-5503
Fax: (845) 246-3901

Buyer Information

Investing In Real Estate

Investing In Real Estate Can be a rewarding experience which is realized when you make that final mortgage payment and calculate the return on your investment due to equity and appreciation. Buying a home has become a national pastime - it is, after all, the American dream!

Nearly five million homes are bought and sold every year and there are approximately 60 million home owners in this country. Traditionally, purchasing a home is one of the best financial investments you will ever make, and if you are fortunate it will be a financially and personally rewarding experience.

A home is your largest investment. Let a professional go to work to keep that investment safe for you. For more information about what a Realtor can do for you // email us') ; // ]]>email us for a copy of "Take Advantage of a Realtor Today."

Benefits of Home Ownership

Price Appreciation
The increase in home value varies from year to year based upon economic conditions, but over the past 40 years home prices have steadily increased.

Equity Appreciation
Equity is the difference between the value of your home and the balance of your mortgage. You build up equity by paying off your mortgage. Equity also increases as the value of the house appreciates. When you sell your home, you collect your equity in cash. Home equity is a valuable family asset like money in the bank.

Hedge Against Inflation
A house is valuable to own especially during inflationary times. Inflation is the continual rise in prices. The dollar purchases less and less during an inflationary period. The barometer of inflationary increases is the Federal Consumer Price Index (CPI) which is based on some 400 goods and services gathered in over 50 cities. It is a barometer of inflation because if your income does not keep up with the rise in the index, than you fall behind in relation to what your money will buy. In other words, your real purchasing power has decreased. Why is this important for real estate investments? Because all goods do not inflate at the same rate. Home costs in general have been rising at a rate faster than the CPI and homeowners have gained.

Tax Benefits
Real estate ownership gives many tax advantages. You may deduct some, if not all of the interest paid toward your mortgage payment. Also certain closing costs are tax deductible. Consult your accountant regarding these matters. To take full advantage of the financial benefits of home ownership consider purchasing property when the interest rate is low and housing prices are down. Talk to your local lending institution for guidance in choosing a mortgage program suited to your particular financial needs. Consult your local real estate agent for current housing prices and ask for a market analysis to determine the amount of equity you have in your current home.

Buyer Mistakes to Avoid

Going It Alone
A real estate agent has the time, energy, resources and contacts to get the job done. A Realtor has the inventory to match buyers with houses in their price range, budget and specifications.

Failure To Pre Qualify For A Loan
This simple step saves everyone time and aggravation. It can be heartbreaking to fall in love with a property only to find it is beyond your budget. Ask your real estate agent or mortgage lender to determine your correct price range.

When you find the right home, be prepared to make an offer on the property. If it is a "hot" listing chances are other buyers will want to buy it too and you may find yourself in the unpleasant position of having to bid against another purchaser for the same property.

Making An Unrealistically Low Offer
The key word here is "unrealistically". Sellers sometimes refuse to make counter offers on bids they deem unrealistically low. The last thing a buyer should do intentionally is insult the seller. Putting the home seller on the defensive is not a good way to start negotiations. By looking at other properties, most buyers have a good idea of what constitutes a reasonable first offer. Although buying and selling real estate has its ups and downs, avoiding the mistakes mentioned above can make the road to a successful closing a lot less bumpy.

Why People Buy Homes

  • It's part of the American Dream
  • Their parents told them it's the best investment they can make
  • They have saved up enough money for a down payment
  • They've decided where they want to live and want to settle down
  • They see it as an enforced savings plan
  • They're tired of "throwing money away" on a rented apartment
  • They don't want to deal with landlords
  • They want a place of their own
  • They need the tax advantage of home ownership

Do You Need a Realtor?
The answer is YES!!!

The Buying Process
The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your borrowing capacity. If you give a real estate agent some basic information about your available savings, income and current debt, they can refer you to lenders best qualified to help you. Most lenders?banks and mortgages companies?offer limited choices.

Once you know how much you can and want to invest, the next step is to find the properties that most nearly fits your needs. This is the time to choose a real estate agent. Choose one who is also a Realtor, a member of the National Association of Realtors, a real estate trade association where all members agree to abide by a Code of Ethics. A Realtor has many resources to assist you in that search. Sometimes the property you are seeking is available but not actively advertised in the market and it will take some investigation by your agent to find all available properties.

Your job is to make the final selections of the right property. This is when excitement and emotion run high. Your real estate agent can assist you in the selection process by providing objective information about each property. Agents who are Realtors have access to a variety of informational resources. Realtors can provide local community information on utilities, zoning, schools, etc. There are two things you'll want o know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

There are a myriad of negotiating factors, including, but not limited to price, financing, terms, date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

Due Diligence
With a negotiated agreement in hand, it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your agent can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.

As soon as you are reasonable sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualified lenders.

Closing Or Settlement
Finally, there is the closing, or settlement, as it is known in different parts of the country. Every area has its own unique customs. In some areas, the title or escrow company will handle this process. In other parts of the country, an attorney does it all. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly.

Grist Mill Real Estate   •   265 Main Street   •   Saugerties, NY 12477
Phone: (845) 246-3200
   •   Toll Free: (800) 664-5503