Buying a home is much more than your investment in real estate. It is a part of your family’s estate plan. Younger homebuyers are taking the step to set down roots, raise their family and build equity in one of the most important life purchases they will make. Mature homebuyers likewise focus on community, but with a focus on securing value and preserving assets and equity for the benefit of loved ones who later inherit that value.
Don’t wait until you and your realtor have found your dream Home. Whether this is your first home or not, make the call to your Real Estate Attorney early. Marc D. Sherman & Colleagues P.C. is ready to help.
Helping You Understand Home Purchase Costs.
Your Real Estate Attorney helps you to understand the costs of purchasing your Home. Know and consider the out-of-pocket costs to be paid at the time that your contract offer is accepted. Also, be prepared and understand the costs you will pay at the purchase closing. Typically these costs of purchasing a home or condo are not in the hundreds but may be in the thousands of dollars.
The Real Estate Attorney explains how the real estate agent’s commission works. And there other costs and fees you need to be aware of, too. Your Real Estate Attorney helps you understand the usual costs, like pre-purchase inspections of the condition of the Home, and helps you know if there are taxes to be paid as a buyer at the time of your purchase (yes, Chicago has a VERY significant ‘welcome tax’ for home and condo purchasers). You should also understand and plan for how title charges and other fees will have to be paid at the time of the purchase.
Do you understand how real estate taxes are paid in your community? Are there other taxes to consider, such as special assessment taxes? Will those taxes go up?
At the same time, you will be reaching out and identifying a mortgage broker. They need to be on the top of your list. Understanding the cost and availability of mortgage financing is perhaps the most important element in the home purchase process. The Real Estate Attorney can stay on top of your mortgage professional’s efforts.
Selecting Your Broker and Understanding The Purchase Contract Process.
Your Real Estate Attorney will help you to understand what is involved in selecting a real estate broker and many important aspects of your real estate purchase contract as it is prepared when you find your new Home.
Your Attorney can explain special contingencies in your Contract offer to the Seller, such as the home inspection and mortgage financing contingencies, and the Attorney Review period that is a part of each standard purchase contract.
Your Attorney can explain the importance of closing and possession dates, including the importance of planning for the end of your current lease or selling your current residence, and particularly with new construction.
And, if you are looking to purchase in a community with a homeowner’s association or in a condominium property, your Real Estate Attorney can help you understand the many considerations that accompany such a purchase. How do you learn if there are special assessments being paid or that are being considered by the homeowner association? Will you be responsible for the assessments? Is there an opportunity to negotiate payment with the Seller? These are among the several considerations that your Real Estate Attorney can discuss with you.
Estate and Asset Protection Planning is an important part of the discussion.
Too often, first time homebuyers do not consider or understand how their new purchase fits into a discussion of their Estate planning. Sure, there is alot going on. It is a busy and exciting time. But the discussion need not be overly time-consuming.
Are you in a business? Are there potential liabilities that could affect you or your partner (like a personal guaranty of a business lease or contract) that should be discussed? Have you considered what happens to the ownership of the Home if you or your partner, or both, are sued? Not a fun topic, but a timely one.
Seasoned Homeowners trading up or downsizing should be particularly thoughtful about ownership of the new Home in their Living Trusts and other title ownership and succession planning vehicles that are useful and available There is no ‘one-size-fits-all’ approach.
What will this cost?
The answer often depends upon the nature of your Home purchase and your personal circumstances. Your Real Estate Attorney will charge a fee for their representation. If there are Estate or other personal matters to work on separately, the Attorney will discuss with you the difference between hourly and flat fee billing for those projects.
The bottom line: Your thoughtful and experienced Real Estate Attorney should be prepared to spend time to discuss these issues with you. The Attorney is one of your trusted resources while you are moving ahead with your purchase.
The Attorneys at Marc D. Sherman & Colleagues, P.C. would like to discuss your plans. Please reach out for a free consultation.
