| Introduction |
|
1 | (4) |
|
About This Book: The Eric Tyson/Ray Brown Difference |
|
|
2 | (1) |
|
|
|
2 | (1) |
|
|
|
3 | (1) |
|
|
|
4 | (1) |
| Part 1: Getting Started With Buying A Home |
|
5 | (76) |
|
Chapter 1 Deciding Whether to Buy |
|
|
7 | (14) |
|
Weighing the Advantages of Owning versus Renting |
|
|
8 | (8) |
|
|
|
9 | (5) |
|
|
|
14 | (2) |
|
The Pitfalls of the Rent-versus-Buy Decision |
|
|
16 | (5) |
|
Renting because it seems cheaper |
|
|
16 | (1) |
|
Fretting too much over job security |
|
|
16 | (1) |
|
Buying when you expect to move soon |
|
|
17 | (1) |
|
Succumbing to pushy salespeople |
|
|
17 | (1) |
|
|
|
17 | (1) |
|
|
|
18 | (1) |
|
|
|
18 | (1) |
|
Buying because it's a grown-up thing to do |
|
|
19 | (1) |
|
Buying because you're afraid that escalating prices will lock you out |
|
|
19 | (1) |
|
Misunderstanding what you can afford |
|
|
20 | (1) |
|
Chapter 2 Getting Your Financial House in Order |
|
|
21 | (16) |
|
|
|
22 | (6) |
|
|
|
22 | (5) |
|
Analyzing your spending numbers |
|
|
27 | (1) |
|
Reckoning Your Savings Requirements |
|
|
28 | (4) |
|
|
|
28 | (1) |
|
Retirement-savings accounts and a dilemma |
|
|
29 | (2) |
|
|
|
31 | (1) |
|
Protecting Yourself, Your Dependents, and Your Assets |
|
|
32 | (4) |
|
|
|
33 | (1) |
|
|
|
34 | (2) |
|
|
|
36 | (1) |
|
Chapter 3 What Can You Afford to Buy? |
|
|
37 | (30) |
|
Lenders Can't Tell You What You Can Afford |
|
|
38 | (1) |
|
The Cost of Buying and Owning a Home |
|
|
39 | (15) |
|
|
|
39 | (9) |
|
|
|
48 | (1) |
|
|
|
49 | (1) |
|
Maintenance and other costs |
|
|
50 | (1) |
|
The tax benefits of homeownership |
|
|
51 | (3) |
|
|
|
54 | (3) |
|
Accumulating the Down Payment |
|
|
57 | (10) |
|
|
|
57 | (1) |
|
Ways to buy with less money down |
|
|
58 | (2) |
|
Where to invest the down payment |
|
|
60 | (7) |
|
Chapter 4 Why Home Prices Rise and Fall |
|
|
67 | (14) |
|
What Drives Real Estate Markets and Prices? |
|
|
68 | (8) |
|
|
|
70 | (1) |
|
|
|
71 | (1) |
|
Inventory of homes for sale and actual sales |
|
|
72 | (2) |
|
|
|
74 | (1) |
|
|
|
75 | (1) |
|
How to Get a Good Buy in Any Market |
|
|
76 | (7) |
|
Seek hidden opportunities to add value |
|
|
77 | (1) |
|
Buy when others are scared to buy |
|
|
78 | (1) |
|
|
|
78 | (1) |
|
|
|
79 | (1) |
|
Become a great negotiator |
|
|
80 | (1) |
|
Buy in a good neighborhood |
|
|
80 | (1) |
| Part 2: Financing 101 |
|
81 | (74) |
|
Chapter 5 Understanding and Improving Your Credit Score |
|
|
83 | (16) |
|
The Record You Can't Ignore: Your Credit Report |
|
|
84 | (2) |
|
What your credit history comprises |
|
|
84 | (1) |
|
What goes into your credit report |
|
|
85 | (1) |
|
Why you should check your credit report |
|
|
85 | (1) |
|
The Most Popular Kid on the Block: FICO Scores |
|
|
86 | (10) |
|
How scores work - the short version |
|
|
87 | (1) |
|
How a FICO score assesses your credit history - the long version |
|
|
88 | (7) |
|
|
|
95 | (1) |
|
Why your score is what it is |
|
|
96 | (1) |
|
Getting Hold of Your Report and Score |
|
|
96 | (3) |
|
Chapter 6 Selecting a Mortgage |
|
|
99 | (30) |
|
Getting a Grasp on Mortgage Basics |
|
|
99 | (1) |
|
Fixed or Adjustable? That Is the Interesting) Question |
|
|
100 | (11) |
|
Distinguishing fixed-rate mortgages from adjustables |
|
|
100 | (2) |
|
|
|
102 | (1) |
|
Starting out risky: Interest-only mortgages |
|
|
102 | (2) |
|
Making the fixed/adjustable decision |
|
|
104 | (5) |
|
Deciding on your loan's life: 15 years or 30? |
|
|
109 | (2) |
|
Finding a Fixed-Rate Mortgage |
|
|
111 | (4) |
|
The all-important interest rate |
|
|
111 | (1) |
|
The finer points of points |
|
|
112 | (2) |
|
|
|
114 | (1) |
|
Arriving at the Absolute Best Adjustable |
|
|
115 | (5) |
|
Where an ARM's interest rate comes from |
|
|
116 | (2) |
|
How often does the interest rate adjust? |
|
|
118 | (1) |
|
Limits on interest-rate adjustments |
|
|
118 | (2) |
|
Locating the Best, Lowest-Cost Lenders |
|
|
120 | (9) |
|
|
|
120 | (3) |
|
Working with a mortgage broker |
|
|
123 | (6) |
|
Chapter 7 Mortgage Quandaries, Conundrums, and Forms |
|
|
129 | (26) |
|
Overcoming Common Mortgage Problems |
|
|
129 | (4) |
|
|
|
130 | (1) |
|
|
|
130 | (3) |
|
Dealing with Appraisal Problems |
|
|
133 | (2) |
|
|
|
134 | (1) |
|
The appraiser doesn't know your area |
|
|
134 | (1) |
|
The appraiser/lender is sandbagging you |
|
|
135 | (1) |
|
Those Darn Mortgage Forms |
|
|
135 | (22) |
|
The laundry list of required documents |
|
|
136 | (3) |
|
Permissions to inspect your finances |
|
|
139 | (1) |
|
The Uniform Residential Loan Application |
|
|
140 | (2) |
|
|
|
142 | (3) |
|
II. Financial information - Assets and liabilities |
|
|
145 | (2) |
|
III. Financial information - Real estate |
|
|
147 | (1) |
|
IV. Loan and property information |
|
|
148 | (1) |
|
|
|
149 | (1) |
|
VI. Acknowledgments and agreements |
|
|
150 | (2) |
|
VII. Demographic information |
|
|
152 | (1) |
|
|
|
152 | (3) |
| Part 3: Property, Players, And Prices |
|
155 | (102) |
|
Chapter 8 Where and What to Buy |
|
|
157 | (40) |
|
Location, Location, Value |
|
|
159 | (4) |
|
Characteristics of good neighborhoods |
|
|
160 | (1) |
|
Selecting your best neighborhood |
|
|
161 | (2) |
|
Fundamental Principles for Selecting Your Home |
|
|
163 | (4) |
|
The principle of progression: Why to buy one of the cheaper homes on the block |
|
|
163 | (2) |
|
The principle of regression: Why not to buy the most expensive house on the block |
|
|
165 | (1) |
|
The principle of conformity: Why unusual is usually costly |
|
|
166 | (1) |
|
|
|
167 | (16) |
|
|
|
167 | (6) |
|
|
|
173 | (10) |
|
|
|
183 | (10) |
|
|
|
183 | (4) |
|
Taking over a foreclosure |
|
|
187 | (3) |
|
|
|
190 | (3) |
|
Pooling Your Resources: Ad Hoc Partnerships |
|
|
193 | (4) |
|
Types of residential co-ownership |
|
|
193 | (2) |
|
Structuring a successful co-ownership |
|
|
195 | (2) |
|
Chapter 9 Assembling an All-Star Real Estate Team |
|
|
197 | (30) |
|
|
|
198 | (2) |
|
|
|
198 | (1) |
|
Avoiding gratuitous advice |
|
|
199 | (1) |
|
Reeling in a Real Estate Agent |
|
|
200 | (17) |
|
Types of agent relationships |
|
|
201 | (3) |
|
|
|
204 | (1) |
|
Characteristics of good agents |
|
|
205 | (2) |
|
|
|
207 | (8) |
|
Getting the most from your agent |
|
|
215 | (2) |
|
|
|
217 | (2) |
|
|
|
219 | (1) |
|
Procuring Property Inspectors |
|
|
219 | (1) |
|
Electing an Escrow Officer |
|
|
220 | (1) |
|
Finding (or Forgoing) Financial and Tax Advisors |
|
|
221 | (2) |
|
|
|
223 | (4) |
|
|
|
224 | (1) |
|
Getting the most out of a lawyer |
|
|
225 | (2) |
|
Chapter 10 What's It Worth? |
|
|
227 | (20) |
|
Preparing to Tour an Endless Parade of Homes |
|
|
227 | (1) |
|
The Three Elusive Components of Worth |
|
|
228 | (4) |
|
|
|
229 | (1) |
|
|
|
229 | (2) |
|
Price is what it's worth today |
|
|
231 | (1) |
|
|
|
232 | (3) |
|
When fair market value isn't fair - need-based pricing |
|
|
232 | (2) |
|
Median home prices versus fair market value |
|
|
234 | (1) |
|
Determining Fair Market Value: Comparable Market Analysis |
|
|
235 | (7) |
|
The basics of a helpful CMA |
|
|
236 | (4) |
|
|
|
240 | (2) |
|
Getting a Second Opinion: Appraisals versus CMAs |
|
|
242 | (1) |
|
Why Buyers and Sellers Often Start Far Apart |
|
|
243 | (4) |
|
|
|
245 | (1) |
|
|
|
246 | (1) |
|
Chapter 11 Tapping the Internet's Best Resources |
|
|
247 | (10) |
|
Finding Useful Information |
|
|
248 | (1) |
|
Get your feet wet at Realtor.com |
|
|
248 | (1) |
|
Discover more at these sites |
|
|
248 | (1) |
|
Doing Some Preliminary Shopping |
|
|
249 | (5) |
|
|
|
250 | (1) |
|
Watching out for sites promoting foreclosures |
|
|
250 | (2) |
|
Sifting through school information |
|
|
252 | (1) |
|
Perusing "best places" to live |
|
|
252 | (1) |
|
Familiarizing yourself with financing options |
|
|
253 | (1) |
|
The Drawbacks of Searching for Houses in Cyberspace |
|
|
254 | (5) |
|
|
|
254 | (1) |
|
|
|
254 | (1) |
|
Misleading home-valuation tools |
|
|
255 | (1) |
|
Untrustworthy mortgage calculators |
|
|
255 | (2) |
| Part 4: Making The Deal |
|
257 | (68) |
|
Chapter 12 Negotiating Your Best Deal |
|
|
259 | (28) |
|
Understanding and Coping with Your Emotions |
|
|
260 | (3) |
|
Examining the violent forces at work |
|
|
260 | (1) |
|
|
|
261 | (2) |
|
|
|
263 | (6) |
|
|
|
264 | (1) |
|
Examining your negotiating style |
|
|
265 | (2) |
|
|
|
267 | (2) |
|
|
|
269 | (6) |
|
Making an offer to purchase |
|
|
269 | (2) |
|
Leaving an escape hatch: Contingencies |
|
|
271 | (1) |
|
|
|
272 | (3) |
|
The Finer Points of Negotiating |
|
|
275 | (12) |
|
Negotiating when the playing field isn't level |
|
|
275 | (2) |
|
|
|
277 | (3) |
|
|
|
280 | (3) |
|
Negotiating credits in escrow |
|
|
283 | (4) |
|
Chapter 13 Inspecting and Protecting Your Home |
|
|
287 | (22) |
|
Conducting Thorough Inspections |
|
|
288 | (11) |
|
All properties should be inspected |
|
|
288 | (2) |
|
The two types of defects: Patent and latent |
|
|
290 | (1) |
|
|
|
290 | (1) |
|
Types of property inspections |
|
|
291 | (2) |
|
|
|
293 | (6) |
|
|
|
299 | (10) |
|
|
|
300 | (2) |
|
|
|
302 | (7) |
|
Chapter 14 It Ain't Over till the Weight-Challenged Escrow Officer Sings |
|
|
309 | (16) |
|
An Escrow Is a Good Thing |
|
|
310 | (8) |
|
|
|
310 | (1) |
|
|
|
311 | (4) |
|
Tis the season: December escrows |
|
|
315 | (2) |
|
|
|
317 | (1) |
|
How You Take Title Is Vital |
|
|
318 | (2) |
|
|
|
318 | (1) |
|
|
|
319 | (1) |
|
|
|
319 | (1) |
|
Getting help drafting an agreement |
|
|
319 | (1) |
|
|
|
320 | (2) |
|
|
|
320 | (2) |
|
Final verification of condition |
|
|
322 | (1) |
|
Coping with Buyer's Remorse |
|
|
322 | (3) |
| Part 5: The Part Of Tens |
|
325 | (26) |
|
Chapter 15 Ten Financial "To Do's" After You Buy |
|
|
327 | (8) |
|
Stay on Top of Your Spending and Saving |
|
|
328 | (1) |
|
Consider Electronic Mortgage Payments |
|
|
328 | (1) |
|
Rebuild Your Emergency Reserve |
|
|
329 | (1) |
|
Ignore Solicitations for Mortgage Insurance |
|
|
329 | (1) |
|
Ignore Solicitations for Faster Payoff |
|
|
330 | (1) |
|
Consider Protesting Your Tax Assessment |
|
|
331 | (1) |
|
Refinance if Interest Rates Fall |
|
|
331 | (1) |
|
Keep Receipts for All Improvements |
|
|
332 | (1) |
|
Ignore Solicitations to Homestead |
|
|
333 | (1) |
|
Take Time to Smell the Roses |
|
|
333 | (2) |
|
Chapter 16 Ten Things to Know When Investing in Real Estate |
|
|
335 | (8) |
|
Real Estate Is a Solid Long-Term Investment |
|
|
336 | (1) |
|
Real Estate Investing Isn't for Everyone |
|
|
336 | (1) |
|
REITs Are Good if You Loathe Being a Landlord |
|
|
337 | (1) |
|
Don't Invest in Limited Partnerships |
|
|
337 | (1) |
|
Avoid Timeshare Condos and Vacation Homes |
|
|
338 | (1) |
|
Residential Properties Are Your Best Investment Option |
|
|
339 | (1) |
|
Consider Fixer-Upper Income Property |
|
|
339 | (1) |
|
Consider Converting Small Apartment Buildings to Condos |
|
|
340 | (1) |
|
Consider the Property's Cash Flow |
|
|
340 | (1) |
|
Your Rental Losses Are Limited for Tax Purposes |
|
|
341 | (2) |
|
Chapter 17 Ten Things to Consider When Selling Your House |
|
|
343 | (8) |
|
|
|
344 | (1) |
|
Can You Afford to Buy the Next Home? |
|
|
344 | (1) |
|
|
|
345 | (1) |
|
Have You Done Your Homework to Find a Good Real Estate Agent? |
|
|
345 | (1) |
|
Do You Have the Skills to Sell the House Yourself? |
|
|
346 | (1) |
|
Have You Properly Prepared the House for Sale? |
|
|
347 | (1) |
|
Do You Understand the House's Hot Buttons? |
|
|
348 | (1) |
|
What Are the Financial Ramifications of Selling? |
|
|
348 | (1) |
|
Do You Know the Rules for Capital-Gains Taxes on the Sale of a House? |
|
|
348 | (3) |
| Part 6: Appendixes |
|
351 | |
|
Appendix A: Sample Real Estate Purchase Contract |
|
|
353 | (12) |
|
Appendix B: Sample Short-Sale Addendum Plus Short-Sale Information And Advisory |
|
|
365 | (8) |
|
Appendix C: Example Of A Good Inspection Report |
|
|
373 | (20) |
|
|
|
393 | |
| Index |
|
41 | |
