Buying a Home
Buying a Home
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Yes, you can convert a two-family home into a single-family dwelling. Many two-family buildings were once one-family houses, and it is possible to convert them back. You will need to be prepared to spend money on renovations that may include hiring structural engineers if you are moving walls or stairs. Turning a two-family home into a one-family home could be expensive to renovate depending on the size and scale of the renovations needed to convert it.
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Buying a bigger home will usually cost you more in mortgage payments and property taxes than a smaller, fixer-upper home. The question of return on investment depends on several factors, such as real estate trends at the time you want to sell, where your home is located, and how much equity you can accrue while you live in it. Smaller can still be expensive if you buy a modern home with a variety of fancy upgrades on a large piece of property.
Learn More Moving Up: Dream House or Money Pit? -
Both companies claim they are highly accurate, with a median error rate of 2.28% for on-market homes for Redfin and a 1.9% error rate for Zillow as of 2021. That said, errors do happen, with outdated information a common reason for inaccurate estimates. If you have made major additions or renovations that don’t show up in the data collected on your home, then the estimates may be too low.
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One of the biggest contentions about real estate fees is that they are too high, or that the service real estate agents deliver isn't worth the cost. If a home sells on the first day it's listed, the seller's agent could make a tidy sum for relatively little work. On the flip side, a home can also take weeks, months, or in the case of very unique or expensive houses, years to sell.
Learn More Who Pays Real Estate Fees? -
The improper maintenance clause common to warranties can mean a new homeowner isn’t really protected if something goes wrong and the previous owner hadn’t maintained the system properly. Rather than get a home warranty, it may make more sense to put premium payments into an emergency fund to use for any expenses that crop up.
Learn More Do You Need a Home Warranty? -
Before applying for a mortgage, review your credit report and avoid any credit-busting major purchases. Consider a government-insured loan rather than a conventional mortgage if you have trouble making the down payment. Having a co-borrower on the loan can sometimes help you clear the underwriting hurdle.
Learn More Buying a House on a Single Income
Key Terms
- Conditional Offer
Real estate transactions often use conditional offers in transactions, meaning that if a specific condition or conditions are met, the offer will stand. For a conditional offer could be a buyer agreeing to purchase a property only if it passes a home inspection.
- Home Inspection
A home inspection examines a property's safety and current condition. It’s not the same as an appraisal. A buyer arranges and pays for a home inspection and—depending on the findings—may choose to move on to closing, renegotiate the sale price, request repairs, or cancel the sales contract.
- Fannie Mae
Fannie Mae (the Federal National Mortgage Association or FNMA) is a government-sponsored enterprise (GSE) established in 1938. Fannie Mae exists to expand the liquidity of home mortgages by creating a secondary mortgage market.
- Open House
An open house is a scheduled period of time in which a home is available for viewing by potential buyers. Although they can mean a considerable amount of effort to organize, open houses can attract interested buyers and lead to an offer or alert the realtor to issues with the space that might be pointed out.
- Bidding War
A bidding war occurs when two or more entities vie for ownership of a property or business. As with an auction, a bidding war often happens at a rapid pace, leaving the participants vulnerable to making ill-advised investment choices.
- Contingency Clause
A contingency clause is a contract provision requiring a specific event or action to occur in order for the contract to be considered valid. If the party required to satisfy the contingency clause is unable to do so, the other party is released from its obligations. In real estate, contingency clauses might require the buyer to obtain financing, the home to pass inspection, or an appraisal be done.
- First-Time Homebuyer
A first-time homebuyer is someone who buys a principal residence for the first time. Many first-time homebuyers qualify for financial help when making a first-time home purchase through various government-sponsored programs. Certain lenders also provide first-time homebuyers with certain benefits and special loans.
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