Buying a home is the largest investment that the average person makes in their lifetime. It's also one of the wisest investments. The following are necessary steps in the home buying process.

• Get prequalified for a mortgage. By getting approved for financing before contracting on a home you will have greater leverage in negotiating.
• Know what you want. Have a clear and realistic idea of your wants and needs. JEM Realty is the only agency in International Falls representing buyers at this time. A minimal commission is charged for this service. This fee will be waivered if other agencies agree to co-broker (split commission).
• Select an agent. Make sure it is someone familiar with the community you have chosen. And then...
• Have the agent represent you. The services provided by a good buyer's agent, through the use of a Buyer Representation Agreement.

  We will:
  Negotiate on behalf of you
  Provide an analysis of property taxes
  Recommend and assist in securing financing
  Research selected property to identify any problems
  Advise on structuring an appropriate offer
  Provide access to the entire market of available homes
  Assist in finding needed third-party services

Make a written offer with a deposit. Your buyer agent will help you in determining what the offer should be, but always make it contingent of a satisfactory home inspection. When a contingencies have been satisfied you can then.....

Go to closing. Your agent will give you a walk-through prior to closing noting any problems that were not corrected, and attend closing with you.

Selling Your Home

When selling your home there are no guarantees that a buyer will simply walk through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, will and able buyer.

The appearance of your home, a buyer's first impressions, and other considerations can also affect the sale of your home. Be sure to explore tips for increasing your home's value. Have you considered the home prices in your neighborhood? This is a major factor in pricing your home.

Then you choose the most qualified professional. Be sure to assess his or her in-depth knowledge of current market conditions, and access extensive resources that can expedite the sale of your home.

Increasing the Value of Your Home

When your preparing your house for sale, remember the importance of first impressions. The market isn't the only factor that influences whether you get your asking price. Appearance and overall condition play a major role. Here are some easy things you can do to make your home more appealing to buyers.

It is estimated that more than half of all houses that sold before the buyers even get out of their cars. So stand across the street from your house and review its curb appeal.

• Outside:
• Sweep front walkway
• Remove newspapers, bikes and toys
• Park extra cars away from the property
• Trim back the shrubs
• Apply clean, fresh paint throughout
• Clean windows and window coverings throughout
• Keep plumbing and all appliances in working order
• Maintain all sealants (window, tub, shower, sink, etc.) in good condition
• Make sure your roof and gutters are in good condition; no repairs needed
• Mow the lawn more frequently and plant flowers
• Keep pet areas clean
  
• Inside:
• Kitchen and bathroom should shine
• Quick once-over with vacuum; carpets should be clean
• Put dishes away, unless setting a formal display for decoration
• Make beds and put all clothes away
• Open drapes and turn on all lights for a brighter feel
• Straighten closets
• Put toys away
• Turn off television
• Play soft music on the radio/stereo
• Keep pets out of the way and pet area clean and odor-free
• Secure jewelry, cash, prescription medication and other valuables
• Enhance the spaciousness of each room. Pack away collectibles to allow buyer to envision their own furnishings in the home

Q: How do I prepare the house for sale?
A: Short of spending a lot of money, there are several steps people can take to make their home show better:

• Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
• Clean the windows and make sure the paint is not chipped or flaking.
• Be sure that the doorbell works
• It's especially important that the bathroom and kitchen are spotless.
• Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
• Ensure that the house smells good. Hide the kitty litter.

Q: What do all of those real estate acronyms in the ads mean?
A: If you find yourself stumbling over weird acronyms in a real estate listing, don't be alarmed. There is method to the madness of this shorthand (which is mostly adopted by sellers to save money in advertising charges). Here are some abbreviations and the meaning of each, taken from a recent newspaper classified section:

• assum. fin. -- assumable financing
• dk -- deck
• gar -- garage (garden is usually abbreviated "gard")
• expansion pot'l -- may be extra space on the lot, or possibly vertical potential for a top floor or room addition. Verify actual potential by checking local zoning restrictions prior to purchase.
• fab pentrm -- fabulous pentroom, a room on top, underneath the roof, that sometimes has views
• FDR -- formal dining room (not the former president)
• frplc, fplc, FP -- fireplace
• grmet kit -- gourmet kitchen
• HDW, HWF, Hdwd -- hardwood floors
• hi ceils -- high ceilings
• In-law potential -- potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units so be sure the conversion is legal first.
• large E-2 plan -- this is one of several floor plans available in a specific building
• lsd pkg. -- leased parking area, may come with an additional cost
• lo dues -- find out just how low these homeowner's dues are, and in comparison to what?
• nr bst schls -- near the best schools
• pvt -- private
• pwdr rm -- powder room, or half-bath
• upr- upper floor
• vw, vu, vws, vus -- view(s)
• Wow! -- better check this one out.

Q:How do property taxes work?
A: Property taxes are what most homeowners in the United States pay for the privilege of owning a piece of real estate, on average 1.5 percent of the property's current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.

Q: Are property taxes deductible on my income tax return?
A: Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.

Q: Can I appeal my property taxes?
A: Yes. Contact your local tax assessor's office to see what procedures to follow to appeal your property tax assessment. You may be able to appeal your assessment informally. Mostly likely, however, you will have to go through a formal tax-appeal processes, which begin with an appeal filed with the appropriate assessment appeals board.

Q: How is a home's value determined?
You have several ways to determine the value of a home.

• An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300. Check with your local appraiser.
• A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business.
• You also can get a comparable sales report for a fee from private companies that specialize in real estate data or find comparable sales information available on various real estate Internet sites.

Q: Are property taxes on second homes deductible?
A: Interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.

Q: What is an impound account?
A: An impound account is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.

Q: Is a low offer a good idea?
A: While a low offer can be presented, most agents will recommend it is not a good idea as they can sour a seller into not countering. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:

• Is the offer contingent upon anything, such as the sale of the buyer's current house? If so, even a full price offer, may not be as attractive as an offer without that condition.
• Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
• Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Q: What's the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300 or more, check with your local appraiser. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.

Q: How is the price set?
A: It's very important to price your home according to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood. A so-called comparative market analysis provides the background data upon which to base your list-price decision. Watch out for an agent whose opinion of value is considerably higher than the others.

Q: What is the best time to buy?
A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are eager to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.

Q: What are the most important factors when selling a home?
A: There are many things to consider, but the most important things are price; condition; terms; location, access to the home for showing, exposure to the market and legal liability.

Q: Does a seller have to disclose the terms of other offers?
A: Sellers are not legally obligated to disclose the terms of other offers to prospective buyers.

Q: Will a neighborhood problem reduce the value of my property?
A: While it may not reduce the actual value, a cluttered landscape can detract from the positive aspects of your home. Review your local laws, which should be on file at the public library, county law library or City Hall. A typical "junk vehicle" ordinance, for example, requires any disabled car to either be enclosed or placed behind a fence. And most cities prohibit parking any vehicle on a city street too long. It also may be worthwhile to check into local zoning ordinances. An operator of a home-based business usually is required to obtain a variance or permanent zoning change in residential areas. In addition, if a neighbor's repair work produces loud noises, he may be breaking local noise-control ordinances, which are enforced by the police department. Before bringing in the authorities, you may want to make a copy of the pertinent ordinance and give it to your neighbor to give them a chance to correct the problem.

Q: What are the standard contingencies?
A: Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers' ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. As a buyer, you could forfeit your deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract. The purchase contract must include the seller's responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

Q: What repairs should a seller make?
A: If you want to get top dollar for your property, you probably need to make all minor repairs and selected major repairs before going on the market. Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair. The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market. On the other hand, making such repairs may be the only way to sell your house in a down market.