As it is favourable to buy the real estate in the USA.

We continue a series of articles about market RE of the USA. Today it will be a question of nuances of purchase and sale and a real estate estimation. By tradition Jury Zajchenko tells about it.

Let's admit, within a week the agent and the client managed to pick up the suitable house. How their relations will develop? Now they have approached to very important point is a drawing up and contract signing. If the client is ready to it the agent warns that the client should pay deposit. The sum deposit equals usually from $500 to $2000. Each broker company establishes the minimum deposit. This money serves as a guarantee of that the client will not refuse house purchase. If he refuses, loses money if is not present they can become a part or the full sum closing cost. The full contract consists approximately of ten pages. It contains detailed characteristics of object up to, whether there is a house in flood zone, in a zone of possible flooding. If yes, necessity of the insurance makes a reservation and the insurance sum is underlined. Further the house insurance on a case of a fire or other situations which can become the reason partial or a house final fracture is necessary. The insurance sum, the name, the address, phone and a fax of the company which will insure the house are necessarily specified. In the contract the sum of the credit and duration of its payment (25-30 years) are specified, the bank percent makes a reservation, the sum of the deposit and the first payment, the sum closing cost is underlined and during what period official registration of papers on possession of the house (usually 30-45 days), exact date and time of installation with place instructions where it is possible to receive keys from the house will end.

The signed contract is an official proposal of the buyer to the seller. The contract copy should be immediately sent the seller or its agent. Sometimes people independently sell the houses. But as we speak about Real Estate as about business, we will leave it this right and we will return to our agent which client has signed the contract. So, the agent immediately sends (usually a fax) the contract to the agent of the selling party. Обычо Selling Agent (the agent of the seller) and Buyer Agent (the agent of the buyer) work in close contact. The contract received by the agent of the seller, in professional language is called Offer (offer). Such offers can be a little. All from them should be immediately sent the seller and it should consider them and to make the choice. We will admit, it has stopped on the offer of our agent, but something would like to change and then through the agent sends Contra offer (the counter or corrected offer). The agent acquaints the client with this offer and if the client agrees new conditions and signs the corrected contract this document is transferred in Escrow Company (company). Professionally it name "to open Escrow". To understand that such Escrow, let's think that occurs to the house or the earth in the course of purchase and sale. Невижимость at this time is in сосотоянии alienations from one owner and transition in the property to other owner, i.e. the former owner loses the property rights, and new yet has no high-grade rights. What occurs?

In such situation each of the parties can declare on it those rights as which will count for itself favourable and fair. Not to admit chaos in possession and the introduction into seizing, there is an Escrow-company. From the moment of the mutual consent of the seller and the buyer to make the certificate of purchase and sale and for this purpose to open Escrow. Company Escrow becomes a regulator of relations to the real estate for the buyer and the seller. Escrow bears full legal and legal responsibility for legality of process of transition of the property in new possession. For the services Escrow takes money, usually no more than 3 % from house cost are and there is what we mentioned earlier (closing cost). She prepares all documents and for the term designated in the contract when all documents are ready, invites the seller and the buyer in the office. Here both parties sign these documents. The seller receives money for sale of the house in the form of a banker's check, and the buyer - documents on possession of the house. More often closing cost the buyer pays. But in certain cases under the arrangement which is reflected in the contract, this money can be divided between both parties on various conditions or that is very rare, the seller himself pays closing cost. In this sum if it is paid by the seller, enters deposit which was it is taken by the agent from the client.

We have passed with you a way from the decision to become the owner of the house before its realisation. It would Seem, all. It would be desirable to tell about some details which should meet agent RE only. We said that the bank allotting the credit, wishes to insure itself from possible troubles. Therefore for bank it is important to think what to do with the house if the credit is not paid. Often, especially if it loan FHA, the financing organisation resorts to help Appraiser (oценщик). We will admit, the seller wishes to sell the house for two hundred thousand. The appraiser finds that this house costs not more expensively hundred eight-ten thousand. In this case the bank never will give the credit for two hundred thousand to client who is going to buy this house. A maximum, on what that can count, is on hundred eighty thousand. Besides, the bank or any of the parties as can order Termite Report - the official conclusion about the general condition of the house. Termite Report the financing organisation or any of the parties can order. It is the unessential document until someone from participating in process of its purchase and sale will not demand. More often it becomes, if the buyer receives FHA-crediting. At FHA high enough standards concerning the real estate. We will admit, it is difficult to receive crediting, if to the house болше thirty five years, if a ceiling below certain standards if in the house there is no conditioner, if a roof in bad condition и.т.д. In connection with this theme it would be desirable to tell about the principles operating at an estimation of houses. What thus the most important thing defining correct cost of the house? Perhaps, its age, either the size, or design of internal premises with what the house estimation begins. Location - area where the real estate is. It is the general and most basic base principle of an estimation of the real estate and any business. The real estate price depends on the location first of all.

In summary I wish to notice that in RE-business there are concepts Regressive and Progressive which are important for owners of the real estate and working professionally in this business. Regressive, improvement of the house which are in bad or poor area, its expensive reconstruction or its condition considerably exceeding a condition of other houses in this area means. If the marked house taking into account expenses costs not less than $200000 while the most expensive house in this area costs $100000, this house Regressive, and you, probably, already guess why. This house very difficultly or cannot be sold even for two hundred thousand to return spent for repair and reconstruction money because in this area there will never live people who wish to buy the house for two hundred thousand. They will buy the house in the friend, more convenient for a life and prestigious area.

With Progressive a situation return. Progressive the house is a house in good area, but started. Such houses to buy favourably. Even if its condition not so good, the price for it will grow together with the prices for other houses in this area. If you put up money in repair or reconstruction you not only will return them at sale, but also can earn. In the first case, having put up money in improvement, you can lose, in the second - to win. Though it is not necessary to forget and about the nominal, real price for houses in each area. Concerning Regressive it is possible to tell roughly, but it is figurative and clear: do not build locks on dustbins.

OUR INQUIRY

In the USA there is such kind of business which is called Land Development is a building on the got earth. All constructed on the earth in the USA for ninety percent is made by these companies. Right at the beginning we spoke about Commercial Property (the real estate for commercial objectives) and Residential Property (for personal residing). Land Developer buys the land and builds that and another. As we speak now about private houses, we will look, as it occurs. Usually on one ground it is realised five-six architectural projects. We will admit, twenty one-storeyed houses of one size and the type, forty - another, fifty - the third. Thirty two-storeyed houses of one type, forty - another and sixty - the third. Houses are under construction taking into account the general condition экомики the countries, staff, a city and the population living in this area. It it is necessary to think of all, that the constructed houses have been bought. Let's admit, the house for three hundred thousand will be never constructed in area, where a ceiling price - hundred fifty thousand and on the contrary, the house for hundred thousand there, where a floor price of three hundred thousand never is under construction.