Finding the Uncommon Deal A Top New York Lawyer Explains How to Buy a Home For the Lowest Possible Price

by Leitman Bailey, Adam

• ISBN13: 9780470943663
• ISBN10: 0470943661
• Edition: 1st
• Format: Paperback
• Copyright: 2011-04-19
• Publisher: Wiley

Summary

Great real estate d eals are like worms.? To find the really prize ones, you should be prepared to get your hands dirty. You usually cannot see them until you do some digging, but often, once you start, several will appear.? On most uncommon deals, the seller found out about them through local information and chatting up the right people?not from sitting home surfing listings on the Internet.? This book explains how to find uncommon deals in today?s market, which is full of them.? The good news is that most of the skills that have allowed you to become successful enough to afford a home will also allow you to find the best home at the cheapest price.? Your negotiation and persuasion abilities, tenacity, ability to handle rejection and to overcome it, and a willingness to dig for deals and to read and understand the motives of others are your best assets.? ?The real estate nightmare that recently hit our country transformed sound real estate practice from prudent investment into both a casino and an automated teller machine.? Borrowers purchased homes with mortgages that they simply could never afford.? The good news is, great deals are now out there for the finding.

Author Biography

Adam Leitman Bailey, ESQ., has assisted thousands of property owners in buying homes. He owns one of the nation's most prominent real estate law firms as well as a real estate brokerage company and investment properties. The esteemed Chambers Partners publication has selected him as one of New York's Leading Real Estate Lawyers, and he was named a Super Lawyer by Law Politics magazine.

Table of Contents

Foreword	p. xiii
Preface: Greed, Fear, and Opportunity in the New Real Estate Environment	p. xvii
Introduction: Should You Buy or Rent?	p. 1
The Greatest Producer of Wealth for American Families	p. 1
The United States Government Encourages Homeownership	p. 3
The Pride of Having a Place to Call Your Own	p. 3
The Time to Buy	p. 4
The Cost of Buying and Maintaining a Home	p. 5
Building Equity	p. 6
The Case for Renting	p. 6
Finance: Do Not Go Shopping Until You Know How Much Money You Have to Spend	p. 13
Get Ready to Buy: Tools and Suggestions to Maximize Buying and Borrowing Power	p. 15
Make a List of Your Assets and Liabilities	p. 15
Creating a Budget and Living within Your Means	p. 17
The Down Payment and Private Mortgage Insurance	p. 21
Obtaining a Credit Report	p. 23
FICO Score	p. 24
How to Get the Cheapest Loan at the Best Rate	p. 27
How Banks Make Money by Giving You a Loan	p. 27
What Is a Mortgage?	p. 28
Obtaining the Loan: Learning the Bank's Requirements	p. 29
The Mortgage Broker	p. 30
Getting the Best Loan: Fitting the Loan into Your Plans and Financial Means	p. 30
The New Good Faith Estimate: Keeping the Lender Honest	p. 30
Choosing the Most Appropriate Inexpensive Loan	p. 31
Annual Percentage Rate (APR)	p. 32
Tax Deductions and the Interest Rate on Your Mortgage	p. 32
Paying Points	p. 33
The Amount of the Loan	p. 35
Documents Required to Obtain a Loan	p. 35
The Different Types of Loans	p. 35
The Loan Process	p. 41
The Financing Process	p. 42
Buying a Home with Little or No Money Down and Obtaining Seller Financing	p. 49
Putting Little or No Money Down	p. 50
Finding the Uncommon Deal on a Home	p. 57
Becoming an Expert on Finding the Dream Home	p. 59
The Real Estate Broker	p. 60
Finding a Property to Purchase: Various Choices and Forms of Shelter	p. 60
Making the Decision	p. 68
Conducting the Search: Finding Your Allies in the Real Estate Hunt	p. 71
Insider Trading-The Legal Way	p. 71
Making Friends in Strange Places	p. 72
Location, Location, Location	p. 72
Determining Fixed Monthly and Yearly Housing Costs	p. 73
Making a Wish List	p. 74
Real Estate Brokers: The Guardians of Real Estate	p. 75
Maximizing the Success of the Search	p. 79
The Secret to Buying a Distressed Property	p. 83
The DNA of a Deal Finder	p. 83
Distressed Homes: The Most Common Uncommon Deals	p. 84
Finding the Uncommon Deals Using the Most Common Means	p. 84
Becoming a Proactive Deal Hunter	p. 85
Pre-Foreclosures and Short Sales	p. 89
Finding a Pre-Foreclosure	p. 89
The Foreclosure Filing	p. 90
Buying a Short Sale	p. 92
Learning More About the Distressed Property	p. 94
Making Contact with a Distressed Owner	p. 95
Foreclosures and Bank-Owned Properties	p. 103
Finding a Foreclosure Sale	p. 103
Buying a Foreclosed Property	p. 104
Attending the Foreclosure Auction	p. 104
Determining How Much Money to Bring to the Auction	p. 105
Foreclosure Pitfalls: Taking the Property As Is and Evicting the Occupants	p. 105
Losing the Property to Redemption Laws	p. 105
Financing the Purchase	p. 105
REO/Bank-Owned Properties	p. 106
Hidden Land Mines to Look Out for	p. 111
Determine Whether the Home Is Legally Habitable	p. 111
Be Aware of the Number of Units Sold and Occupied in Newly Constructed Apartment Developments	p. 112
Clear All Liens and Obtain Signoffs for Extensions and Alterations before Closing on a Home	p. 113
Inspecting for and Understanding the Underground Oil Tank	p. 113
Buying a Home with Occupants or Tenants in Possession	p. 114
Purchasing a Land Lease in a Cooperative Apartment: Determine Whether You Are Buying or Renting the Land	p. 115
Property Taxes Can Change	p. 116
Different Ways to Take Title to the Home	p. 116
Creative Ways to Get the Seller to Accept Your Below-Market Offer	p. 121
Offer All Cash or Do Not Make the Deal Contingent on Obtaining a Loan	p. 121
Know How to Play the Negotiation Game: Making and Responding to the Counter Offer	p. 122
Get the First Call When the Price Drops: Give Sellers Your Price and Ask Them to Call You When the Asking Price Falls	p. 123
Become the Real Estate Broker's Best Friend	p. 123
Bring Your Financial Resume to Demonstrate Your Ability to Close on the Home	p. 124
The Right of First Refusal	p. 124
Buyer Flexibility: Learn the Seller's Moving Preferences	p. 125
Endear the Seller through Thoughtful Gestures and Remembering Names and Life Events	p. 125
Place an Ad or Create a Web Site or Commercial	p. 126
Negotiating a Great Deal on a Newly Constructed Property: What You Must Know Before Signing the Contract to Purchase	p. 129
Conduct an Extensive Inspection of the Premises Using a Qualified Inspector/Engineer	p. 130
Know the Builder's Past Performances	p. 131
Obtain Warranties from the Builder	p. 131
The Brand Names and the Appliances and Fixtures Installed Should Be Itemized in the Contract of Sale	p. 132
The Most Common Problem When Purchasing a New Construction: The Move-In Date	p. 132
Locking In an Interest Rate	p. 133
Getting Uncommon Deals on Closing Costs	p. 139
The Closing Map: A Guide to Finding and Buying a Home	p. 141
Obtaining Financing	p. 141
Making the Offer	p. 142
Hiring an Attorney	p. 143
The Acceptance of the Offer and Drafting of the Contract of Sale	p. 143
Signing the Contract of Sale and Making the Contract Deposit	p. 144
Insurance and Tax Escrow	p. 145
The Mortgage Contingency Clause and Other Contingencies	p. 145
The Closing Date	p. 146
The Engineer	p. 147
Due Diligence for Cooperative and Condominium Purchases	p. 147
Reviewing the Building's Financials	p. 147
Termite Inspection	p. 148
Board Applications	p. 149
Title Insurance and Lien Search	p. 149
The Board Interview	p. 150
Obtaining the Right of Possession of the Home	p. 150
The Closing	p. 151
Using the Home Inspection to Lower the Price	p. 155
The Inspection	p. 156
Finding the Right Home Inspector	p. 158
Protecting Yourself When Signing the Contract of Sale	p. 160
Finding, Hiring, and Utilizing an Aggressive Attorney	p. 163
Whether to Hire an Attorney	p. 164
Finding an Attorney	p. 164
The Mini-Interview	p. 165
Questions for the Attorney Candidate(s)	p. 165
When to Consult an Attorney	p. 166
The Functions of the Purchaser's Attorney	p. 167
The Makings of a Good Real Estate Attorney	p. 170
The Walk Through: The Final Inspection	p. 173
The Walk Through as an Inspection	p. 173
The Punch List	p. 174
Let the Buyer Beware	p. 174
The Importance of Homeowner's Insurance: Acquiring the Knowledge to Purchase and Maintain a Sufficient Policy for Your Home or Investment Property	p. 179
The Homeowner's Insurance Policy	p. 180
The Function of the Homeowner's Insurance Policy	p. 180
Ways to Reduce the Cost of Homeowner's Insurance	p. 181
Maintaining a Homeowner's Insurance Policy	p. 182
Insurance through the Federal Government	p. 183
Homeowner's Insurance in Cooperatives and Condominiums	p. 183
Obtain References	p. 184
What You Should Know Before Making a Claim	p. 184
The Purchase of Title Insurance	p. 189
What Is Title Insurance?	p. 189
Who Pays for Title Insurance?	p. 190
Why an Owner's Policy Should Always Be Purchased	p. 191
The Function of a Title Insurance Company	p. 191
The Cost of Title Insurance	p. 192
Examples of When Title Insurance Becomes Important	p. 192
Title Insurance and Purchasing a Cooperative Apartment	p. 194
The Abstract	p. 194
Closing Cost Guide: Determining the Complete Cost of Selling or Purchasing a Property	p. 199
Customary Purchaser Closing Costs	p. 200
Purchaser Closing Costs Unique to Cooperatives and Condominiums	p. 205
Closing Cost Example: New York Customary Purchaser Closing Costs	p. 206
Customary Seller Closing Costs	p. 208
Conclusion	p. 221
Acknowledgments	p. 223
Index	p. 225
Table of Contents provided by Ingram. All Rights Reserved.