Buying in the Village...
The American Homesteading Foundation, Inc. (“AHF”) is a not-for-profit corporation governed by a nine-member Board of Trustees. They own all of the parkland and trails, ball fields, community garden, Village Hall, swimming pool, and sponsor all of the social activities that create the special sense of community we have in Melbourne Village. Membership is entirely voluntary and costs a one-time membership fee of $2000 then just $125/year. The AHF grants membership to new buyers who subscribe to its bylaws.
THE INDENTURE: Most properties in Melbourne Village are indentured. The Indenture requires a 10% down payment of the purchase price and gives the AHF the right-of-first-refusal when an indentured property is sold. The AHF Board of Trustees will provide your Realtor with a document waiving their right to purchase which must be filed along with the deed of transfer.
The AHF office hours are 9 a.m. to 12:30 p.m. Monday through Friday. You can call (321) 723-6042 or email AHFMV@cfl.rr.com.
A Word About Foreclosures and Bank Owned Property (REO)
First Time Homebuyer Assistance
These two programs operate for the sole purpose of providing affordable housing to low income households and to provide assistance with down payment, closing costs, and repairs. The application process involves taking a 5 hour Saturday morning class.
Use this worksheet to calculate your monthly budget:
FORECLOSURE AUCTION: If you are interested in buying a property on the courthouse steps, please see these instructions from the Brevard County Clerk of Court: http://brevardclerk.us/foreclosures. Unfortunately, I do not assist buyers with this type of transaction.
REO or BANK OWNED REAL ESTATE: This describes property that has gone back to the bank or private note holder after an unsuccessful foreclosure auction. The bank/owner will list the property for sale with a Realtor. There will be specific instructions for making an offer. Multiple offers and bidding wars are not uncommon. I am happy to assist you with this type of transaction. Just like any transaction, your loan pre-approval letter or proof of funds is essential.
Disclaimer: Your use of the information above is at your risk. No warranties or representations are made to the competency of the individual companies Debbie Seiler and ITG Realty specifically disclaim any liability or responsibility for your usage of these companies.
General Buyer Step by Step
GET FINANCES IN ORDER. Clean up your credit report if neccesary and don't make any large purchases. Establish how much house you can afford and get a pre-approval letter. Most sellers require it to be submitted along with your offer.
WHAT ARE YOU LOOKING FOR? Make a list that includes "must-haves", "would like but flexible", and "deal breakers".
START THE SEARCH. I will program the MLS to email us both new listings within your search parameters as they hit the market. Meanwhile you should preview neighborhoods, drive around in the evening and on the weekend. I will share my knowledge of the area, schools, parks, shopping, drive times, etc.
MAKE AN OFFER. I will run comparables for you so you have a good idea of the home's market value. Too low and sellers might be insulted and not too anxious to deal with you on your next offer. Too high and you'll never know the seller's low point. Other factors that affect price are 1.) How long has the house been on the market? If only a short time the sellers might not be too motivated. 2.) How does the house compare with others for sale in the same neighborhood? 3.) Is the house in need of repairs or massive updates? Updating items such as insulated windows, plumbing and electrical systems, kitchens, and baths can be costly. 4.) How much time is left in the roof? 5.) What about the neighborhood, do you foresee home values climbing, staying the same, or possibly taking a downturn? Analyze each home's condition and compare it to others on the market, but your final offer will likely involve a good deal of gut instinct. Is it the house for you? If you've been searching for a home for a while, you will probably know the answer to that question the minute you walk in the door.
INSPECTION PERIOD. The contract will provide for 7-14 days for inspections. I always recommend a 4 point home inspection, wood destroying organism inspection, and septic inspection if no recent permits on record.
FUNDS TO CLOSE. As your closing date nears, everyone involved in your real estate transaction is checking progress on a daily basis to make sure that any problems that arise are dealt with in a timely manner to avoide delaying closing. You should have access to your final closing statement 3 days before closing so you will know how much to wire on the day of closing. Funds must always be in the form of a wire transfer.
SETTLEMENT. The closing or settlement is the event that transfers ownership of the property to you. Your lender and I will be there along with the closing agent (title agent or lawyer). There are lots of papers to sign and I am prepared to explain any of the documents that you might have questions about. You receive keys after you sign and copies of all documents. Originals are sent to the Clerk of Court to be recorded and may take several weeks to be mailed to you.
Look for two types of homes...
1.) one like the one you'd want to buy and
2.) the other similar to your current home.
Tax valuations are not a good measure of a property's market value. They are are usually only about 75% of the market value.