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Remember when you purchase property in New York, Caveat Emptor (buyer beware) is the common law.  The buyer must practice what is commonly referred to as “Due Diligence” in their actions and decisions.  What this means, is if you do not discover problems, issues or have the right people represent you, you may have problems that only you will have to deal with.  It is very important that you know who is on your side.  Read this article in its entirety. Knowledge really is power when you buy or sell property. 

The mission of Reliance Funding Group and its sister company, BryCon Realty is to help you get through this process.  

Look Before You Leap
Whether you are looking for an old or new house, townhouse or condo, the more information you have the better equipped you will be to make a good decision. The following are some ideas that you may use in your quest for information regarding real estate. Look closely at the area where you are considering to buy. Investigate the community and the surrounding area and learn about the services available. These would include not only job availability, but also closeness to recreation sites, libraries, police and fire services, as well as hospitals and schools. If you need to know about schools, find out where they are located, transportation and the schools ratings. Check out the zoning in the area to make sure that you will not be located near a future commercial area. If the country is where you would like to be, understand that rural means rural, and that farmer spread unpleasant smelling materials on their fields at times, and that you will be sharing you property with the animal residents that were there before you.

If you are considering an older house or a new one, you may want a report or inspection by an engineer or a home inspector. A full report on the property could be helpful in getting the information to make a better-informed decision. Some important items to look for are the age of construction, type of wiring, plumbing, heating, and air conditioning and water sources. Check the condition of major appliances, windows and doors. Look at the overall condition and cleanliness of the property, open closets and cabinets. These are just some of the areas to think about, with the main emphasis to set the light bulb off in your head as to the overall quality of the property.

If the house is older, find out about any renovations and changes that have been made since the current owners have had possession. Look at the natural terrain of the surrounding area, does all the land slope towards the house? Look in the cellar to see if there are any water marks on the block / foundation stones. Do a "rain test", inspect the house you are interested in after a heavy rain, look for wet areas in the attic and basement. Some of these points along with an inspector's report will help you to ascertain problem areas and possible repairs. You need to weigh all these factors to determine the financial planning involved with the purchase. Check with your Realtor in regards to points of concern in the area, such as asbestos, radon gas, termites etc.

In planning your purchase, you need to determine your overall monthly costs for the house. This should include not only the cost of the loan (Principle and Interest) but also taxes, insurance and utility costs. Electric and oil / gas can vary from home to home and region to region. Taxes can be a major factor in budgeting your home payment; the tax information should be readily available.

LEGAL CONCERNS
Several legal considerations will demand your attention when purchasing a house. Without appropriate legal advice, you may put your investment at risk. In New York State, it is required to have an attorney in connection with the closing. One excellent piece of advice is to have the following clause on all purchase contracts; "This purchase contract / offer subject to respective attorney's approval". If there is a problem with the form and content to the contract, your attorney can have the contract nullified or amended.

You should have confidence in the advisor that you are using, from the Real Estate agent to the attorney. When choosing an advisor, you should consider the advisor's

(1) Familiarity with the area,

2) Their real estate experience,

(3) Prior work with you or a member of your family,

(4) Recommendation from others,

(5) Fees. Legal issues may arise in connection with deposits, engineering reports, negotiations of price and terms, clear and marketable title, and closing.

The closing may be viewed as a "mop up operation". Nevertheless, several important items need to be addressed at closing. All parties to the contracts need to be present at closing. Clear title or title insurance will be required. Generally property is sold in "as is" condition, any and all warranties should be in writing in regards to appliances and mechanical items. It is generally recommended to personally inspect the property a day or two prior to closing. During your inspection, you should make sure that the seller looks ready to move, and that all items included with the sale are present and accounted for. All items should be listed in the contract of sale. If any have been removed from the property, your attorney should be notified. All items to be left should be in working order and the house should not have any damage other than normal "wear and tear". Lastly, be prepared to write a few checks that could add up to a sizeable amount. Some of these items include attorney's fees, pro-ration of taxes, and fuel, title and mortgage transfer fees. Ask your attorney for a closing cost statement prior to closing so that there are no surprises the day of closing.

POINTS TO PONDER
Remember, purchasing a home is a long-term investment, do not buy on emotion. You need to be comfortable with your real estate agent. Remember that the agent is working for the seller, but owes you full disclosure and honesty. You may want to consider having an agent become a "buyers broker" and work for you. This may have additional costs associated, so discuss all options with the agent you want to work with. Any agency in the area can show you any property in the area no matter who has the listing.

Read all disclosures and addendum's carefully. Research the house and the area and schools, you can never have enough information. Make the people you have hired work for you, pick their brains. If there are problems that arise from inspections or reports, make sure that they are corrected to your satisfaction.

Consideration should also be taken to secure the best mortgage for you. Mortgage brokers (Reliance Funding) can be utilized to assist you to obtain the best rates and terms from a wide variety of Lenders. Your individual circumstances will dictate the type of mortgage that suits you. Look at all types of financing from adjustable rate to fixed, to BI-monthly or short term notes. Ask for comparisons and review all the options based on your expected time in the property and the economic future of the area you are located in. Ask questions and demand answers, and review all the information available.

We hope that these basic guidelines will help you in the purchase of your new home, and that you will be better informed before you start your search. Contact Reliance Funding before you start to look. It does not matter what region you are in of New York, or what Real Estate company you work with.  We are here to help you.  You have our pledge and promise.  Call us.

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