Scamnation! Be Informed Buying Your Next Home...

By Tony Perrette

SCAMNATION was written to empower buyers of real property, like you, with the NECESSARY information to AVOID BEING SCAMMED!!! Some sales people make mistakes and others will just outright rape you. If you have ever been told one thing and sold another then you know what I am talking about. This eBook covers the purchase process from start to finish and REVEALS many HIDDEN FEES and HIDDEN TERMS OR EXPRESSIONS which can cost you dearly. If you are a SERIOUS BUYER who does not want to be taken advantage of, then this book is a MUST READ. Put these concepts into ACTION and you will in fact SAVE THOUSANDS OF DOLLARS & MANY, MANY HOURS.

• Language: English
• Publisher: Tony Perrette
• Release date: Aug 11, 2011
• ISBN: 9780615523101

Tony Perrette

My name is Tony Perrette. I was born and raised in a beautiful town in California called San Luis Obispo. Here I grew up and graduated. I met my beautiful wife in a neighboring town and started our family. My working career was always in sales or retail. I guess I like the “People Business”. I started out in a convenience store, then grocery, and then real estate. I first received my real estate license in 1991 and worked almost exclusively with “for sale by owners” for that year before stepping out of the market. I returned to the grocery industry for 10 more years. During this time I was inspired to write a booklet called “For Sale By Owner, A Guide To Selling Your Own Home”. Unsatisfied with my J.O.B. I retested and received my real estate license again in 2001. The market was different. I began selling immediately finding myself working with investors. Quickly I was learning my new industry: what worked for sellers, what worked for buyers, what worked for investors. The nuances between the three were slight, but very REAL. I found that if I could orchestrate between them and create Win Win, we had a sale; sounds basic right? While developing my own business, I was recruited (thankfully) by a nationwide company called Keller Williams Realty(third largest real estate company by agent count (April 6, 2009 http://www.ourtribune.com/article.php?id=7133)) . This company was a major turning point in both my knowledge of the industry and career. The company is knowledge based and heavy on educating its agents in every aspect. As my knowledge grew so did my business. Eventually I became a team leader (management) for our local office in Pismo Beach, California. I was now teaching and instructing over 100 agents on how to grow their business. Today I fix and flip investment homes back out to the market. Real estate is an incredible business whether you are buying selling or investing. I would highly recommend it both for investment and career.

Book preview

Scamnation!

Be Informed Buying Your Next Home!!

What EVERY Buyer Needs To Know About Buying a Home. Not Knowing Could Cost You Dearly!

By

Tony Perrette

Published By Tony Perrette At Smashwords

Copyright 2011 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, or by license from any collective or licensing body, without permission in writing from the author.

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.

TABLE OF CONTENTS

Introduction

Buying vs. Renting

Cost

Tax Advantage

Long Term vs. Short Term

Other Benefits

How’s Your Credit?

The value of good credit

What is good credit?

Who Ranks Our Credit?

What is a FICO Score?

Credit Repair

Money in the Bank

Do You Have It?

20% Down; Do You Need It?

Seasoned Money

Gifting Your Down Payment

Finding a Lender

Online vs. Local

Mortgage Banker vs. Mortgage Broker

Questions to Ask

Fees and Costs you should know about

Primary Resident vs. Investment

Interest Rates (I thought Par was a Golf Term?)

Appraisals

Credit Reports

Escrow Fees

Taxes

Points

Processor

Rebates

Buy Downs

Garbage Fees

Setting you up for refinance

Getting You Qualified to Buy

Good Faith Estimate

Pre-Qualified vs. Pre-Approved

Debt to Income

Loan to Value

Loan Locks

Getting the Loan that is right for you

Buyer Beware!!!

Find a Good Real Estate Agent

Why do I need one?

Knows their local market

In touch with state and national market

Able to answer most any real estate question

Listens

Active with internet and web use

Uses auto feeds to clients

Uses 800# for properties and reports

Uses easy out contracts

Does Real Estate as a business

Define your needs & wants

Be Clear

Accept the difference

Learn the cost difference

Adjust to absolutes

Communicate, communicate, communicate

Researching properties

Real Estate Agents Role

Buyers Role

Online, Print, and other forms of media

Location, Location, Location

FSBO’s

New Construction

Communicating with other agents and sellers

The Dream Home

Making a Bid on the Home

What can you ask for?

How low is an insult?

Seller Carry Backs

Seller Concessions

How Much Down?

How long to close and get the keys?

Who pays the fees?

Title and Escrow

Termite Clearance

Natural Hazard Reports

The Value of a Home Warranty

Tenants in a Residential Home

Time to Inspect

Liquidated Damages

Counter Offers, Addendums, & Acceptance

Buyers Remorse

Opening escrow & title

What is Escrow?

What is title insurance?

Who opens escrow?

Who pays for escrow?

Time to Inspect the Home

Buyers Advisory

Sellers Disclosures

Home Inspection

Other Inspections

Insurability

HOA’s

CC&R’s

Natural Hazard Reports

Requesting Repairs

As Is

Consider the age of the home

It’s Not Christmas

Repairs vs. Concessions

Removing contingencies

What is a contingency?

What happens when they are removed?

Sellers Recourse for non removal

Final Walk Through

Why do a final walk through?

When is it usually done?

Signing Loan Docs

What are loan docs?

Writers cramp

How long do they last?

Buyer Beware!!!

Funding & Closing

Consider the date and day of the week

Closing costs

HUD – 1 Statement

Getting the Key

About the author

Additional Websites

Definition of Terms

INTRODUCTION

Thank you for requesting this eBook. SCAMNATION was written to empower buyers of real property, like you, with the NECESSARY information to AVOID BEING SCAMMED!!! Some sales people make mistakes and others will just outright rape you. If you have ever been told one thing and sold another then you know what I am talking about. This eBook covers the purchase process from start to finish and REVEALS many HIDDEN FEES and HIDDEN TERMS OR EXPRESSIONS which can cost you dearly. If you are a SERIOUS BUYER who does not want to be taken advantage of, then this book is a MUST READ. Put these concepts into ACTION and you will in fact

SAVE THOUSANDS OF DOLLARS & MANY, MANY HOURS.

In this eBook, the information you will receive, although very informative and specific, is NOT exhaustive. On the topic of buying a home there are hundreds of sources and resources on hundreds of topics within this topic of buying a home.

This eBook was designed to walk you, the buyer, through some of the main discussion items and to bring to your attention, what I feel, are the standards in the industry for the everyday home buyer. This eBook was developed and assembled to start you at the beginning; should I buy or should I rent? and take you through the entire process down to the funding & the close of escrow. I will point out throughout this entire book places where consumers get misinformed, which could cost you thousands. I will also empower you with an alternate of choice to save you BIG Dollars and Many Hours.

Also included in this eBook I have attempted to ask many of the same questions I hear on a daily basis from buyers and answer those questions. With the advent of the internet, I have discovered some pretty cool websites for information and research, which I have included for your benefit. All this information is for your use.

Let me caution you at this point. The links I put into this eBook are for RESEARCH. I may or may not have an affiliation to one or all of these sites. My intent is not to promote any particular company (other than my own of course). I want to supply you with a content rich resource for your research. I feel any web addresses I give you will accommodate this process. Remember it is not exhaustive, although I have made every attempt to load this eBook with everything you will need to successfully plan and achieve the purchase of a new home…WITHOUT BEING SCAMMED!!! KNOWLEDGE IS POWER!

Congratulations on the purchase of this eBook!! And best of success in your pursuit of a new home.

Tony Perrette

BUYING VS. RENTING

Okay, so the first question to conquer is should you buy or should you rent? In order for you to answer this question you will have to break it down into bite size pieces. I will have to compare and contrast the benefits of both, weigh them out and finalize a conclusion. Use this link for the comparison:

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy.asp?subtitle=ypth

Cost- While looking at cost you need to factor cost for both a home and a rental. I would sit down with a sheet of paper and draw a line down the middle. Write Home on the top of one side and Rental on the top of the other. On the rental side of the paper you are going to have to do a little homework and find out what your areas rental market is like on a cost per square foot. In other words does a 3 bedroom 2 bathroom rental rent for $1500 or more or less. Rental